10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________

FORM 10-Q

_______________

(Mark One)

 Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2022

OR

 Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ____________ to____________

Commission File Number: 000-55871  

_________________

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

(Exact name of registrant as specified in its charter)

_________________

Indiana	35-0472300
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1301 South Harrison Street, Fort Wayne, Indiana	46802
(Address of principal executive offices)	(Zip Code)

(260) 455-2000

(Registrant’s telephone number, including area code)

_________________

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer		Accelerated Filer	
Non-accelerated Filer		Smaller Reporting Company	
		Emerging Growth Company	

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No  

As of May 9, 2022, 10,000,000 shares of common stock of the registrant ($2.50 par value) were outstanding, all of which were directly owned by Lincoln National Corporation.

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1)(a) AND (b) OF

FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE FORMAT.

The Lincoln National Life Insurance Company

Table of Contents

		Page
PART I
Item 1.	Financial Statements:
	Consolidated Balance Sheets as of March 31, 2022 (Unaudited) and December 31, 2021	1
	Unaudited Consolidated Statements of Comprehensive Income (Loss) for the three months ended
	March 31, 2022 and 2021	2
	Unaudited Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2022
	and 2021	3
	Notes to Unaudited Consolidated Financial Statements:
	Nature of Operations and Basis of Presentation	5
	New Accounting Standards	6
	Variable Interest Entities	8
	Investments	9
	Derivatives	18
	Federal Income Taxes	26
	Guaranteed Benefit Features	27
	Liability for Unpaid Claims	28
	Contingencies and Commitments	28
	Shares and Stockholder’s Equity	31
	Realized Gain (Loss)	33
	Fair Value of Financial Instruments	34
	Segment Information	44
Item 2.	Management’s Narrative Analysis of the Results of Operations	46
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	59
PART II
Item 1.	Legal Proceedings	60
Item 1A.	Risk Factors	60
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 6.	Exhibits	60
	Exhibit Index for the Report on Form 10-Q	61
	Signatures	62

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

		As of			As of
	March 31,			December 31,
		2022			2021
	(Unaudited)
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: 2022 - $106,974; 2021 - $104,526; allowance for credit losses: 2022 - $20; 2021 - $19)		$	109,921		$	117,511
Trading securities			4,334			4,427
Equity securities			340			314
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: 2022 - $537; 2021 - $739)			17,795			17,893
Policy loans			2,325			2,349
Derivative investments			4,840			5,437
Other investments			3,527			3,449
Total investments			143,082			151,380
Cash and invested cash			1,722			2,331
Deferred acquisition costs and value of business acquired			8,688			5,985
Premiums and fees receivable			671			580
Accrued investment income			1,209			1,157
Reinsurance recoverables, net of allowance for credit losses			22,870			22,755
Funds withheld reinsurance assets			510			517
Goodwill			1,778			1,778
Other assets			21,309			22,949
Separate account assets			168,879			182,583
Total assets		$	370,718		$	392,015
LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities
Future contract benefits		$	39,186		$	40,416
Other contract holder funds			112,387			111,174
Short-term debt			737			1,084
Long-term debt			2,311			2,334
Reinsurance-related embedded derivatives			31			578
Funds withheld reinsurance liabilities			6,155			7,089
Payables for collateral on investments			8,905			8,936
Other liabilities			14,298			15,441
Separate account liabilities			168,879			182,583
Total liabilities			352,889			369,635
Contingencies and Commitments (See Note 9)
Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding			11,948			11,950
Retained earnings			4,330			3,886
Accumulated other comprehensive income (loss)			1,551			6,544
Total stockholder’s equity			17,829			22,380
Total liabilities and stockholder’s equity		$	370,718		$	392,015

‎

See accompanying Notes to Consolidated Financial Statements

1

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	For the Three
	Months Ended
	March 31,
	2022			2021
Revenues
Insurance premiums	$	1,406		$	1,330
Fee income		1,502			1,524
Net investment income		1,353			1,447
Realized gain (loss)		266			211
Amortization of deferred gain (loss) on business sold through reinsurance		18			7
Other revenues		151			170
Total revenues		4,696			4,689
Expenses
Interest credited		691			731
Benefits		2,199			2,182
Commissions and other expenses		1,192			1,171
Interest and debt expense		29			29
Spark program expense		31			13
Total expenses		4,142			4,126
Income (loss) before taxes		554			563
Federal income tax expense (benefit)		85			99
Net income (loss)		469			464
Other comprehensive income (loss), net of tax		(4,993	)		(3,181	)
Comprehensive income (loss)	$	(4,524	)	$	(2,717	)

‎

See accompanying Notes to Consolidated Financial Statements

2

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

(Unaudited, in millions)

	For the Three
	Months Ended
	March 31,
	2022			2021
Common Stock
Balance as of beginning-of-year	$	11,950		$	11,853
Capital contribution from Lincoln National Corporation		-			65
Stock compensation/issued for benefit plans		(2	)		1
Balance as of end-of-period		11,948			11,919
Retained Earnings
Balance as of beginning-of-year		3,886			4,167
Net income (loss)		469			464
Dividends paid to Lincoln National Corporation		(25	)		(180	)
Balance as of end-of-period		4,330			4,451
Accumulated Other Comprehensive Income (Loss)
Balance as of beginning-of-year		6,544			9,021
Other comprehensive income (loss), net of tax		(4,993	)		(3,181	)
Balance as of end-of-period		1,551			5,840
Total stockholder’s equity as of end-of-period	$	17,829		$	22,210

‎

See accompanying Notes to Consolidated Financial Statements

3

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	For the Three
	Months Ended
	March 31,
	2022			2021
Cash Flows from Operating Activities
Net income (loss)	$	469		$	464
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Realized (gain) loss		(266	)		(211	)
Trading securities purchases, sales and maturities, net		(189	)		98
Amortization of deferred gain (loss) on business sold through reinsurance		(18	)		(7	)
Change in:
Deferred acquisition costs, value of business acquired, deferred sales inducements
and deferred front-end loads deferrals and interest, net of amortization		24			50
Premiums and fees receivable		(91	)		(169	)
Accrued investment income		(44	)		(51	)
Insurance liabilities and reinsurance-related balances		303			(265	)
Accrued expenses		(229	)		(35	)
Federal income tax accruals		85			99
Cash management agreement		872			(182	)
Other		-			(204	)
Net cash provided by (used in) operating activities		916			(413	)
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities		(3,910	)		(3,783	)
Sales of available-for-sale securities and equity securities		105			592
Maturities of available-for-sale securities		1,566			1,862
Purchases of alternative investments		(141	)		(163	)
Sales and repayments of alternative investments		130			54
Issuance of mortgage loans on real estate		(540	)		(869	)
Repayment and maturities of mortgage loans on real estate		716			398
Repayment (issuance) of policy loans, net		25			(76	)
Net change in collateral on investments, derivatives and related settlements		(242	)		987
Other		(79	)		(30	)
Net cash provided by (used in) investing activities		(2,370	)		(1,028	)
Cash Flows from Financing Activities
Capital contribution from Lincoln National Corporation		-			65
Payment of long-term debt, including current maturities		-			(60	)
Issuance (payment) of short-term debt		(347	)		71
Payment related to sale-leaseback transactions		(4	)		-
Deposits of fixed account values, including the fixed portion of variable		3,043			3,132
Withdrawals of fixed account values, including the fixed portion of variable		(1,819	)		(1,768	)
Transfers to and from separate accounts, net		14			(122	)
Common stock issued for benefit plans		(17	)		(10	)
Dividends paid to Lincoln National Corporation		(25	)		(180	)
Other		-			(63	)
Net cash provided by (used in) financing activities		845			1,065
Net increase (decrease) in cash, invested cash and restricted cash		(609	)		(376	)
Cash, invested cash and restricted cash as of beginning-of-year		2,331			1,462
Cash, invested cash and restricted cash as of end-of-period	$	1,722		$	1,086

See accompanying Notes to Consolidated Financial Statements

4

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Nature of Operations and Basis of Presentation

Nature of Operations

The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100% of the outstanding common stock of Lincoln Life & Annuity Company of New York (“LLANY”). We also own several non-insurance companies, including Lincoln Financial Distributors, our wholesale distributor, and Lincoln Financial Advisors Corporation, part of LNC’s retail distributor, Lincoln Financial Network. Through our business segments, we sell a wide range of wealth protection, accumulation, retirement income and group protection products and solutions. These products primarily include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL and VUL, indexed universal life insurance (“IUL”), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 13 for additional information.

Basis of Presentation

The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”), should be read in connection with the reading of these interim unaudited consolidated financial statements.

Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2021 Form 10-K.

In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022, especially when considering the risks and uncertainties associated with the COVID-19 pandemic and the future impacts of the pandemic on our business, results of operations and financial condition. All material inter-company accounts and transactions have been eliminated in consolidation.

‎

5

2.  New Accounting Standards

The following table provides a description of our adoption of new Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) and the impact of the adoption on our consolidated financial statements. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount.

Standard	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
ASU 2020-04, Reference Rate Reform (Topic 848) and related amendments	The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions impacted by reference rate reform. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. Additionally, changes to the critical terms of a hedging relationship affected by reference rate reform will not require entities to de-designate the relationship if certain requirements are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, with certain exceptions. The amendments are effective for contract modifications made between March 12, 2020, and December 31, 2022.	March 12, 2020 through December 31, 2022	This standard may be elected and applied prospectively as reference rate reform unfolds. We have elected practical expedients to maintain hedge accounting for certain derivatives. We will continue to evaluate our options under this guidance as our reference rate reform adoption process continues. This ASU has not had a material impact to our consolidated financial condition and results of operations, but we will continue to evaluate those impacts as our transition progresses.

‎

6

Standard	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments	These amendments make changes to the accounting and reporting for long-duration contracts issued by an insurance entity that will significantly change how insurers account for long-duration contracts, including how they measure, recognize and make disclosures about insurance liabilities and deferred acquisition costs. Under this ASU, insurers will be required to review cash flow assumptions at least annually and update them if necessary. They also will have to make quarterly updates to the discount rate assumptions they use to measure the liability for future policyholder benefits. The ASU creates a new category of market risk benefits (i.e., features that protect the contract holder from capital market risk and expose the insurer to that risk) that insurers will have to measure at fair value. The ASU provides various transition methods by topic that entities may elect upon adoption. The ASU is effective January 1, 2023, and early adoption is permitted.	January 1, 2023	We will adopt this ASU effective January 1, 2023, with a transition date of January 1, 2021, using a modified retrospective approach, except for market risk benefits in which we will apply a full retrospective transition approach. ‎ ‎We continue to make progress in our implementation process that includes, but is not limited to, making significant accounting policy decisions, employing appropriate internal controls, building and updating actuarial models and systems, revising reporting processes and developing informative qualitative and quantitative disclosures. In the first quarter of 2022, we continued the process of calculating our transition adjustments and applicable prior period restatements. ‎ ‎We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations and will be able to better assess the effects as we progress with our implementation efforts. For example, upon adoption, there will be adjustments to retained earnings resulting from the remeasurement of certain current benefits (e.g., guaranteed minimum death benefits on variable annuities) to fair valued market risk benefits, excluding the portion attributable to non-performance risk, which will result in an impact to AOCI. There will be additional impacts to AOCI resulting from the remeasurement of in-force future contract benefits using current upper-medium grade fixed income instrument yields as well as the elimination of shadow accounting for DAC and DAC-like intangibles. While the impact may be material, the magnitude is currently being assessed.

‎

7

3. Variable Interest Entities

Unconsolidated Variable Interest Entities

Structured Securities

Through our investment activities, we make passive investments in structured securities issued by variable interest entities (“VIEs”) for which we are not the manager. These structured securities include our asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”). We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on our Consolidated Balance Sheets. For information about these structured securities, see Note 4.

Limited Partnerships and Limited Liability Companies

We invest in certain limited partnerships (“LPs”) and limited liability companies (“LLCs”) that we have concluded are VIEs. Our exposure to loss is limited to the capital we invest in the LPs and LLCs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on our Consolidated Balance Sheets and were $2.9 billion and $2.8 billion as of March 31, 2022, and December 31, 2021, respectively.

8

4. Investments

Fixed Maturity AFS Securities

The amortized cost, gross unrealized gains, losses, allowance for credit losses and fair value of fixed maturity available-for-sale (“AFS”) securities (in millions) were as follows:

	As of March 31, 2022
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	87,914	$	4,778	$	2,400	$	16	$	90,276
U.S. government bonds		364		29		5		-		388
State and municipal bonds		5,171		758		145		-		5,784
Foreign government bonds		349		42		17		-		374
RMBS		2,092		85		40		2		2,135
CMBS		1,647		8		71		-		1,584
ABS		9,040		73		189		1		8,923
Hybrid and redeemable preferred securities		397		82		21		1		457
Total fixed maturity AFS securities	$	106,974	$	5,855	$	2,888	$	20	$	109,921

	As of December 31, 2021
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	86,197	$	11,569	$	326	$	17	$	97,423
U.S. government bonds		348		54		2		-		400
State and municipal bonds		5,113		1,275		11		-		6,377
Foreign government bonds		365		63		5		-		423
RMBS		2,132		178		4		1		2,305
CMBS		1,542		62		14		-		1,590
ABS		8,433		127		54		-		8,506
Hybrid and redeemable preferred securities		396		103		11		1		487
Total fixed maturity AFS securities	$	104,526	$	13,431	$	427	$	19	$	117,511

The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of March 31, 2022, were as follows:

	Amortized		Fair
	Cost		Value
Due in one year or less	$	2,877	$	2,877
Due after one year through five years		16,206		16,183
Due after five years through ten years		19,655		19,532
Due after ten years		55,457		58,687
Subtotal		94,195		97,279
Structured securities (RMBS, CMBS, ABS)		12,779		12,642
Total fixed maturity AFS securities	$	106,974	$	109,921

Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations.

9

The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

	As of March 31, 2022
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	29,692		$	1,890	$	3,208		$	510	$	32,900		$	2,400
U.S. government bonds		36			1		24			4		60			5
State and municipal bonds		1,231			134		64			11		1,295			145
Foreign government bonds		69			7		82			10		151			17
RMBS		881			37		31			3		912			40
CMBS		999			44		215			27		1,214			71
ABS		6,935			169		475			20		7,410			189
Hybrid and redeemable
preferred securities		95			5		70			16		165			21
Total fixed maturity AFS securities	$	39,938		$	2,287	$	4,169		$	601	$	44,107		$	2,888
Total number of fixed maturity AFS securities in an unrealized loss position															5,054

	As of December 31, 2021
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
				Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	10,611		$	230	$	1,386		$	96	$	11,997		$	326
U.S. government bonds		6			-		26			2		32			2
State and municipal bonds		498			10		19			1		517			11
Foreign government bonds		61			3		56			2		117			5
RMBS		261			3		20			1		281			4
CMBS		440			12		33			2		473			14
ABS		4,646			49		165			5		4,811			54
Hybrid and redeemable
preferred securities		47			1		76			10		123			11
Total fixed maturity AFS securities	$	16,570		$	308	$	1,781		$	119	$	18,351		$	427
Total number of fixed maturity AFS securities in an unrealized loss position															2,577

⁽¹⁾As of March 31, 2022, and December 31, 2021, we recognized $7 million and $8 million of gross unrealized losses, respectively, in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded.

10

The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:

	As of March 31, 2022
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities (1)
Less than six months	$	529	$	146			82
Twelve months or greater		38		6			21
Total	$	567	$	152			103

	As of December 31, 2021
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities (1)
Less than six months	$	12	$	3			6
Twelve months or greater		58		8			24
Total	$	70	$	11			30

⁽¹⁾We may reflect a security in more than one aging category based on various purchase dates.

Our gross unrealized losses on fixed maturity AFS securities increased by $2.5 billion for the three months ended March 31, 2022. As discussed further below, we believe the unrealized loss position as of March 31, 2022, did not require an impairment recognized in earnings as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of March 31, 2022, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities.

As of March 31, 2022, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government bond securities were attributable primarily to widening credit spreads and rising interest rates since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost of each impaired security.

Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by S&P Global Ratings (“S&P”) or Baa3 or higher by Moody’s Investors Service (“Moody’s”)) are generally considered by the rating agencies and market participants to be low credit risk. As of March 31, 2022, and December 31, 2021, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of March 31, 2022, and December 31, 2021, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $3.5 billion and a fair value of $3.5 billion and $3.7 billion, respectively. Based upon the analysis discussed above, we believe that as of March 31, 2022, and December 31, 2021, we would have recovered the amortized cost of each corporate bond.

As of March 31, 2022, the unrealized losses associated with our mortgage-backed securities and ABS were attributable primarily to widening credit spreads and rising interest rates since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security.

As of March 31, 2022, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security.

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Credit Loss Impairment on Fixed Maturity AFS Securities

We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows:

	For the Three
	Months Ended
	March 31, 2022
	Corporate
	Bonds			RMBS		Other		Total
Balance as of beginning-of-year	$	17		$	1	$	1	$	19
Additions for securities for which credit losses were not
previously recognized		-			1		1		2
Additions from purchases of PCD debt securities (1)		-			-		-		-
Reductions for securities disposed		(1	)		-		-		(1	)
Balance as of end-of-period (2)	$	16		$	2	$	2	$	20

	For the Three
	Months Ended
	March 31, 2021
	Corporate
	Bonds		RMBS		Other		Total
Balance as of beginning-of-year	$	12	$	1	$	-	$	13
Additions from purchases of PCD debt securities (1)		-		-		-		-
Additions (reductions) for securities for which credit losses
were previously recognized		1		-		-		1
Balance as of end-of-period (2)	$	13	$	1	$	-	$	14

⁽¹⁾Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities.

⁽²⁾As of March 31, 2022 and 2021, accrued investment income on fixed maturity AFS securities totaled $1.0 billion, and was excluded from the estimate of credit losses.

Mortgage Loans on Real Estate

The following provides the current and past due composition of our mortgage loans on real estate (in millions):

	As of March 31, 2022									As of December 31, 2021
	Commercial			Residential			Total			Commercial			Residential			Total
Current	$	16,677		$	1,015		$	17,692		$	17,068		$	837		$	17,905
30 to 59 days past due		90			23			113			15			21			36
60 to 89 days past due		16			9			25			-			5			5
90 or more days past due		-			26			26			-			29			29
Allowance for credit losses		(59	)		(18	)		(77	)		(78	)		(17	)		(95	)
Unamortized premium (discount)		(10	)		32			22			(11	)		27			16
Mark-to-market gains (losses) (1)		(6	)		-			(6	)		(3	)		-			(3	)
Total carrying value	$	16,708		$	1,087		$	17,795		$	16,991		$	902		$	17,893

⁽¹⁾Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 12 for additional information.

Our commercial mortgage loan portfolio has the largest concentrations in California, which accounted for 26% of commercial mortgage loans on real estate as of March 31, 2022, and December 31, 2021, and Texas, which accounted for 9% of commercial mortgage loans on real estate as of March 31, 2022, and December 31, 2021.

Our residential mortgage loan portfolio has the largest concentrations in California, which accounted for 21% and 22% of residential mortgage loans on real estate as of March 31, 2022, and December 31, 2021, respectively, and Florida, which accounted for 12% and 14% of residential mortgage loans on real estate as of March 31, 2022, and December 31, 2021, respectively.

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As of March 31, 2022, and December 31, 2021, we had 63 and 65 residential mortgage loans, respectively, that were either delinquent or in foreclosure. As of March 31, 2022, and December 31, 2021, we had 38 and 34 residential mortgage loans in foreclosure, respectively, with an aggregate carrying value of $17 million and $15 million, respectively.

As of March 31, 2022, and December 31, 2021, there were four specifically identified impaired commercial mortgage loans with an aggregate carrying value of $1 million.

As of March 31, 2022, and December 31, 2021, there were 46 and 50 specifically identified impaired residential mortgage loans, respectively, with an aggregate carrying value of $18 million and $22 million, respectively.

Additional information related to impaired mortgage loans on real estate (in millions) was as follows:

	For the Three
	Months Ended
	March 31,
	2022		2021
Average aggregate carrying value for impaired mortgage loans on real estate	$	21	$	36
Interest income recognized on impaired mortgage loans on real estate		-		-
Interest income collected on impaired mortgage loans on real estate		-		-

The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows:

	As of March 31, 2022				As of December 31, 2021
	Nonaccrual				Nonaccrual
	with no				with no
	Allowance				Allowance
	for Credit				for Credit
	Losses		Nonaccrual		Losses		Nonaccrual
Commercial mortgage loans on real estate	$	-	$	-	$	-	$	-
Residential mortgage loans on real estate		-		26		-		30
Total	$	-	$	26	$	-	$	30

We use loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows:

	As of March 31, 2022
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	Greater		Coverage
	than 65%		Ratio	to 75%		Ratio	than 75%		Ratio	Total
Origination Year
2022	$	329	2.67	$	25	1.57	$	-	-	$	354
2021		2,356	3.05		87	1.50		-	-		2,443
2020		1,346	2.97		20	1.55		-	-		1,366
2019		2,657	2.14		178	1.56		-	-		2,835
2018		2,235	2.14		151	1.56		15	1.02		2,401
2017 and prior		7,024	2.38		302	1.77		48	0.99		7,374
Total	$	15,947		$	763		$	63		$	16,773

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	As of December 31, 2021
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	Greater		Coverage
	than 65%		Ratio	to 75%		Ratio	than 75%		Ratio	Total
Origination Year
2021	$	2,361	3.05	$	136	1.74	$	-	-	$	2,497
2020		1,349	3.02		144	2.06		-	-		1,493
2019		2,875	2.14		187	1.42		-	-		3,062
2018		2,272	2.13		168	1.59		15	1.02		2,455
2017		1,648	2.33		149	1.74		27	0.83		1,824
2016 and prior		5,543	2.41		171	1.76		27	1.08		5,741
Total	$	16,048		$	955		$	69		$	17,072

We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate. The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows:

	As of March 31, 2022
	Performing		Nonperforming			Total
Origination Year
2022	$	134		$	-	$	134
2021		574			3		577
2020		113			3		116
2019		170			17		187
2018		88			3		91
2017 and prior		-			-		-
Total	$	1,079		$	26	$	1,105

	As of December 31, 2021
	Performing		Nonperforming			Total
Origination Year
2021	$	467		$	2	$	469
2020		129			2		131
2019		189			21		210
2018		104			5		109
2017		-			-		-
2016 and prior		-			-		-
Total	$	889		$	30	$	919

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Credit Losses on Mortgage Loans on Real Estate

In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value.

Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows:

	For the Three
	Months Ended
	March 31, 2022
	Commercial			Residential		Total
Balance as of beginning-of-year	$	78		$	17	$	95
Additions (reductions) from provision for credit loss expense (1)		(19	)		1		(18	)
Additions from purchases of PCD mortgage loans on real estate		-			-		-
Balance as of end-of-period (2)	$	59		$	18	$	77

	For the Three
	Months Ended
	March 31, 2021
	Commercial			Residential			Total
Balance as of beginning-of-year	$	186		$	17		$	203
Additions (reductions) from provision for credit loss expense (1)		(15	)		(5	)		(20	)
Additions from purchases of PCD mortgage loans on real estate		-			-			-
Balance as of end-of-period (2)	$	171		$	12		$	183

⁽¹⁾Due to improving economic projections, the provision for credit loss expense decreased by $18 million and $20 million for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022, we recognized no credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate. For the three months ended March 31, 2021, we recognized $4 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate.

⁽²⁾Accrued investment income on mortgage loans on real estate totaled $49 million and $50 million as of March 31, 2022 and 2021, respectively, and was excluded from the estimate of credit losses.

Alternative Investments 

As of March 31, 2022, and December 31, 2021, alternative investments included investments in 309 and 305 different partnerships, respectively, and represented approximately 2% of total investments.

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Impairments on Fixed Maturity AFS Securities

Details underlying credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	1		$	(2	)
RMBS		(1	)		-
ABS		(1	)		-
Gross credit loss benefit (expense)		(1	)		(2	)
Associated amortization of DAC, VOBA, DSI and DFEL (1)		-			-
Net credit loss benefit (expense)	$	(1	)	$	(2	)

⁽¹⁾Deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end loads (“DFEL”).

Payables for Collateral on Investments

The carrying value of the payables for collateral on investments included on our Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:

	As of March 31, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable for derivative investments (1)	$	4,767	$	4,767	$	5,565	$	5,565
Securities pledged under securities lending agreements (2)		258		250		241		235
Investments pledged for Federal Home Loan Bank of
Indianapolis (3)		3,880		5,924		3,130		4,876
Total payables for collateral on investments	$	8,905	$	10,941	$	8,936	$	10,676

⁽¹⁾We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. This also includes interest payable on collateral. See Note 5 for additional information.

⁽²⁾Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

⁽³⁾Our pledged investments for Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

We have repurchase agreements through which we can obtain liquidity by pledging securities. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. As of March 31, 2022, and December 31, 2021, we were not participating in any open repurchase agreements.

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Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:

	For the Three
	Months Ended
	March 31,
	2022			2021
Collateral payable for derivative investments	$	(798	)	$	248
Securities pledged under securities lending agreements		17			30
Investments pledged for FHLBI		750			1,100
Total increase (decrease) in payables for collateral on investments	$	(31	)	$	1,378

We have elected not to offset our securities lending transactions in our consolidated financial statements. The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows:

	As of March 31, 2022
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	245	$	-	$	-	$	-	$	245
Foreign government bonds		11		-		-		-		11
Equity securities		2		-		-		-		2
Total gross secured borrowings	$	258	$	-	$	-	$	-	$	258

	As of December 31, 2021
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	239	$	-	$	-	$	-	$	239
Foreign government bonds		1		-		-		-		1
Equity securities		1		-		-		-		1
Total gross secured borrowings	$	241	$	-	$	-	$	-	$	241

We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the consolidated financial statements. In addition, we receive securities in connection with securities borrowing agreements that we are permitted to sell or re-pledge. As of March 31, 2022, the fair value of all collateral received that we are permitted to sell or re-pledge was $22 million, and we had re-pledged all of this collateral to cover initial margin and over-the-counter collateral requirements on certain derivative investments.

Investment Commitments

As of March 31, 2022, our investment commitments were $3.1 billion, which included $1.5 billion of LPs, $842 million of private placement securities and $740 million of mortgage loans on real estate.

Concentrations of Financial Instruments

As of March 31, 2022, and December 31, 2021, our most significant investments in one issuer were our investments in securities issued by White Chapel LLC with a fair value of $1.0 billion and $995 million, respectively, or 1% of total investments, and our investments in securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $817 million and $910 million, respectively, or 1% of total investments. These concentrations include fixed maturity AFS, trading and equity securities.

As of March 31, 2022, and December 31, 2021, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $20.8 billion and $21.7 billion, respectively, or 15% and 14%, respectively, of total investments, and our investments in securities in the consumer non-cyclical industry with a fair value of $16.8 billion and $18.6 billion, respectively, or 12% of total investments. These concentrations include fixed maturity AFS, trading and equity securities.

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5. Derivative Instruments

We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities.

Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies.

See Note 12 for additional disclosures related to the fair value of our derivative instruments.

Interest Rate Contracts

We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include:

Forward-Starting Interest Rate Swaps

We use forward-starting interest rate swaps designated and qualifying as cash flow hedges to hedge our exposure to interest rate fluctuations related to the forecasted purchases of certain assets.

We also use forward-starting interest rate swaps to hedge the interest rate exposure within our life products related to the forecasted purchases of certain assets.

Interest Rate Cap Corridors

We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain life insurance products and annuity contracts. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor.

Interest Rate Futures

We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price.

Interest Rate Swap Agreements

We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products.

We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond.

Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed maturity securities due to interest rate risks.

Reverse Treasury Locks

We use reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities.

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Foreign Currency Contracts

We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include:

Currency Futures

We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate.

Foreign Currency Swaps

We use foreign currency swaps to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange one currency for another at specified dates in the future at a specified exchange rate.

We also use foreign currency swaps designated and qualifying as cash flow hedges to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies.

Foreign Currency Forwards

We use foreign currency forwards to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency forward is a contractual agreement to exchange one currency for another at specified dates in the future at a specified current exchange rate.

Equity Market Contracts

We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include:

Call Options Based on the S&P 500^® Index and Other Indices

We use call options to hedge the liability exposure on certain options in variable annuity products, indexed variable annuity products, and fixed indexed annuity products.

Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500 Index or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period.

Consumer Price Index Swaps

We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception.

Equity Futures

We use equity futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price.

Put Options

We use put options to hedge the liability exposure on certain options in variable annuity products. Put options are contracts that require counterparties to pay us at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount.

Total Return Swaps

We use total return swaps to hedge the liability exposure on certain options in variable annuity products and indexed variable annuity products.

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In addition, we use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest.

Credit Contracts

We use derivative instruments as part of our credit risk management strategy that are economic hedges and include:

Credit Default Swaps – Buying Protection

We use credit default swaps (“CDSs”) to hedge the liability exposure on certain options in variable annuity products.

We buy CDSs to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring.

CDSs – Selling Protection

We use CDSs to hedge the liability exposure on certain options in variable annuity products.

We sell CDSs to offer credit protection to contract holders and investors. The CDSs hedge the contract holders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring.

Other Derivatives

Lapse Protection Rider Ceded Derivative

We also have an inter-company agreement through which Lincoln National Reinsurance Company (Barbados) Limited (“LNBAR”), an affiliated insurer, assumes the risk under certain UL contracts for lapse protection riders (“LPR”). If the contract holder’s account value is insufficient to pay the cost of insurance charges required to keep the policy in force, and the contract holder has made the required deposits, we will be reimbursed for those charges.

Embedded Derivatives

We have embedded derivatives that include:

GLB Reserves Embedded Derivatives

Certain features of these guarantees have elements of both insurance benefits accounted for under the Financial Services – Insurance – Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB Accounting Standards Codification (“ASC”) (“benefit reserves”) and embedded derivatives accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative reserves”). We calculate the value of the benefit reserves and the embedded derivative reserves based on the specific characteristics of each guaranteed living benefit (“GLB”) feature.

We use a hedging strategy designed to mitigate the risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with GLBs offered in our variable annuity products, including products with guaranteed withdrawal benefit and guaranteed income benefit features. These GLB features are reinsured among various reinsurance counterparties on a coinsurance basis. We cede a portion of the GLB features to LNBAR, a wholly-owned subsidiary of LNC, on a funds withheld coinsurance basis. The funds withheld arrangement includes a dynamic hedging strategy designed to mitigate selected risks. Changes in the value of the hedge contracts due to changes in equity markets, interest rates and implied volatilities hedge the income statement effect of changes in embedded derivative GLB reserves assumed by LNBAR caused by those same factors. We rebalance our hedge positions based upon changes in these factors as needed. While we actively manage our hedge positions, these hedge positions may not be totally effective in offsetting changes in the embedded derivative reserve assumed by LNBAR due to, among other things, differences in timing between when a market exposure changes and corresponding changes to the hedge positions, extreme swings in the equity markets and interest rates, market volatility, contract holder behavior, divergence between the performance of the underlying funds and the hedging indices, divergence between the actual and expected performance of the hedge instruments and our ability to purchase hedging instruments at prices consistent with our desired risk and return trade-off. However, the hedging results do not impact LNL due to a funds withheld agreement with LNBAR, which causes the financial impact of the derivatives, as well as the cash flow activity, to be reflected on LNBAR.

Indexed Annuity and IUL Contracts Embedded Derivatives

Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500^® Index or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the

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indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period.

Reinsurance-Related Embedded Derivatives

We have certain modified coinsurance and coinsurance with funds withheld reinsurance agreements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements.

We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows:

	As of March 31, 2022						As of December 31, 2021
	Notional		Fair Value				Notional		Fair Value
	Amounts		Asset		Liability		Amounts		Asset		Liability
Qualifying Hedges
Cash flow hedges:
Interest rate contracts (1)	$	1,924	$	15	$	68	$	2,009	$	98	$	11
Foreign currency contracts (1)		4,180		313		40		3,979		283		51
Total cash flow hedges		6,104		328		108		5,988		381		62
Fair value hedges:
Interest rate contracts (1)		526		-		148		526		-		210
Non-Qualifying Hedges
Interest rate contracts (1)		88,588		631		281		82,786		897		176
Foreign currency contracts (1)		383		9		1		487		7		2
Equity market contracts (1)		90,198		5,530		1,301		92,278		6,461		2,108
Credit contracts (1)		56		-		-		49		-		-
LPR ceded derivative (2)		-		266		-		-		318		-
Embedded derivatives:
GLB direct (3)		-		1,880		-		-		1,963		-
GLB ceded (3)		-		42		1,917		-		56		2,015
Reinsurance-related (4)		-		-		31		-		-		578
Indexed annuity and IUL contracts (3) (5)		-		493		5,574		-		528		6,131
Total derivative instruments	$	185,855	$	9,179	$	9,361	$	182,114	$	10,611	$	11,282

⁽¹⁾Reported in derivative investments and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Reported in other assets on our Consolidated Balance Sheets.

⁽³⁾Reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽⁴⁾Reported in reinsurance-related embedded derivatives on our Consolidated Balance Sheets.

⁽⁵⁾Reported in future contract benefits on our Consolidated Balance Sheets.

The maturity of the notional amounts of derivative instruments (in millions) was as follows:

	Remaining Life as of March 31, 2022
	Less Than		1 – 5		6 – 10		11 – 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts (1)	$	25,425	$	29,454	$	19,844	$	16,315	$	-	$	91,038
Foreign currency contracts (2)		294		556		1,627		1,992		94		4,563
Equity market contracts		53,523		19,963		7,778		11		8,923		90,198
Credit contracts		-		25		31		-		-		56
Total derivative instruments
with notional amounts	$	79,242	$	49,998	$	29,280	$	18,318	$	9,017	$	185,855

⁽¹⁾As of March 31, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 18, 2024.

⁽²⁾As of March 31, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061.

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The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair

value hedges:

					Cumulative Fair Value
					Hedging Adjustment
					Included in the
	Amortized Cost of the				Amortized Cost of the
	Hedged				Hedged
	Assets / (Liabilities)				Assets / (Liabilities)
	As of		As of		As of		As of
	March 31,		December 31,		March 31,		December 31,
	2022		2021		2022		2021
Line Item in the Consolidated Balance Sheets in
which the Hedged Item is Included
Fixed maturity AFS securities, at fair value	$	701	$	764	$	148	$	211

The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	240		$	42
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		(142	)		(203	)
Foreign currency contracts		(17	)		(63	)
Change in foreign currency exchange rate adjustment		75			47
Change in DAC, VOBA, DSI and DFEL		14			14
Income tax benefit (expense)		15			43
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts (1)		1			1
Foreign currency contracts (1)		13			10
Foreign currency contracts (2)		3			(2	)
Associated amortization of DAC, VOBA, DSI and DFEL		(3	)		(1	)
Income tax benefit (expense)		(3	)		(2	)
Balance as of end-of-period	$	174		$	(126	)

⁽¹⁾The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss).

⁽²⁾The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

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The effects of qualifying and non-qualifying hedges (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows:

	Gain (Loss) Recognized in Income
	For the Three Months Ended March 31,
	2022								2021
	Realized			Net					Realized			Net
	Gain			Investment					Gain			Investment
	(Loss)			Income			Benefits		(Loss)			Income			Benefits
Total Line Items in which the
Effects of Fair Value or Cash
Flow Hedges are Recorded	$	266		$	1,353		$	2,199	$	211		$	1,447		$	2,182
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(63	)		-		-			(84	)		-
Derivatives designated as																-
hedging instruments		-			63			-		-			84
Gain or (loss) on cash flow
hedging relationships:
Interest rate contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		-			1			-		-			1			-
Foreign currency contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		3			13			-		(2	)		10			-
Non-Qualifying Hedges
Interest rate contracts		(821	)		-			-		(1,159	)		-			-
Equity market contracts		(324	)		-			-		1,242			-			-
LPR ceded derivative		-			-			52		-			-			50
Embedded derivatives:
GLB		1			-			-		3			-			-
Reinsurance-related		546			-			-		342			-			-
Indexed annuity and IUL
contracts		506			-			-		(594	)		-			-

As of March 31, 2022, $81 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements.

For the three months ended March 31, 2022 and 2021, there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period.

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Information related to our CDSs for which we are the seller (dollars in millions) was as follows:

As of March 31, 2022
					Credit
		Reason	Nature		Rating of	Number			Maximum
		for	of	Underlying		of	Fair		Potential
Credit Contract Type	Maturity	Entering	Recourse	Obligation (1)		Instruments	Value (2)		Payout
Basket CDSs	12/20/2026	(3)	(4)		BBB+	1	$	-	$	25
Basket CDSs	6/20/2027	(3)	(4)		BBB+	1		1		31
						2	$	1	$	56

⁽¹⁾Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings.

⁽²⁾Broker quotes are used to determine the market value of our CDSs.

⁽³⁾CDSs were entered into in order to hedge the liability exposure on certain variable annuity products.

⁽⁴⁾Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract.

As of December 31, 2021, we did not have any exposure related to CDSs for which we are the seller.

Details underlying the associated collateral of our CDSs for which we are the seller if credit risk-related contingent features were triggered (in millions) were as follows:

		As of			As of
	March 31,			December 31,
		2022			2021
Maximum potential payout		$	56		$	-
Less: Counterparty thresholds			-			-
Maximum collateral potentially required to post		$	56		$	-

Certain of our CDS agreements contain contractual provisions that allow for the netting of collateral with our counterparties related to all of our collateralized financing transactions that we have outstanding. If these netting agreements were not in place, our counterparties would have been required to post $1 million of collateral as of March 31, 2022.

Credit Risk

We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or non-performance risk (“NPR”). The NPR is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure, less collateral held. As of March 31, 2022, the NPR adjustment was zero. The credit risk associated with such agreements is minimized by entering into agreements with financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under some ISDA agreements, we and LLANY have agreed to maintain certain financial strength or claims-paying ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. We did not have any exposure as of March 31, 2022, or December 31, 2021.

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The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows:

	As of March 31, 2022					As of December 31, 2021
	Collateral		Collateral			Collateral		Collateral
	Posted by		Posted by			Posted by		Posted by
S&P	Counter-		LNL			Counter-		LNL
Credit	Party		(Held by			Party		(Held by
Rating of	(Held by		Counter-			(Held by		Counter-
Counterparty	LNL)		Party)			LNL)		Party)
AA-	$	2,126	$	(1	)	$	2,346	$	-
A+		2,362		(78	)		2,762		(44	)
A		279		-			456		-
	$	4,767	$	(79	)	$	5,564	$	(44	)

Balance Sheet Offsetting

Information related to the effects of offsetting on our Consolidated Balance Sheets (in millions) was as follows:

		As of March 31, 2022
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total
Financial Assets
Gross amount of recognized assets		$	6,199			$	2,415	$	8,614
Gross amounts offset			(1,625	)			-		(1,625	)
Net amount of assets (1)			4,574				2,415		6,989
Gross amounts not offset:
Cash collateral (2)			(4,574	)			-		(4,574	)
Non-cash collateral			-				-		-
Net amount		$	-			$	2,415	$	2,415
Financial Liabilities
Gross amount of recognized liabilities		$	246			$	7,522	$	7,768
Gross amounts offset			(33	)			-		(33	)
Net amount of liabilities			213				7,522		7,735
Gross amounts not offset:
Cash collateral (2)			(79	)			-		(79	)
Non-cash collateral			-				-		-
Net amount		$	134			$	7,522	$	7,656

⁽¹⁾Includes deferred premiums receivable (payable) of $(266) million reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Excludes excess cash collateral received of $193 million, as the cash collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

‎

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		As of December 31, 2021
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total
Financial Assets
Gross amount of recognized assets		$	7,938			$	2,547	$	10,485
Gross amounts offset			(2,241	)			-		(2,241	)
Net amount of assets (1)			5,697				2,547		8,244
Gross amounts not offset:
Cash collateral			(5,564	)			-		(5,564	)
Non-cash collateral			(133	)			-		(133	)
Net amount		$	-			$	2,547	$	2,547
Financial Liabilities
Gross amount of recognized liabilities		$	349			$	8,724	$	9,073
Gross amounts offset			(68	)			-		(68	)
Net amount of liabilities			281				8,724		9,005
Gross amounts not offset:
Cash collateral			(44	)			-		(44	)
Non-cash collateral			-				-		-
Net amount		$	237			$	8,724	$	8,961

⁽¹⁾Includes deferred premiums receivable (payable) of $260 million reported in other assets on our Consolidated Balance Sheets.

6. Federal Income Taxes

The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The effective tax rate was 15% and 18% for the three months ended March 31, 2022 and 2021, respectively. The effective tax rate on pre-tax income is typically lower than the prevailing corporate federal income tax rate of 21% due to benefits from preferential tax items including the separate accounts dividends-received deduction and tax credits.

For the three months ended March 31, 2022 and 2021, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to the effects of the preferential tax items.

‎

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7. Guaranteed Benefit Features

Information on the guaranteed death benefit (“GDB”) features outstanding (dollars in millions) was as follows:

	As of		As of
	March 31,		December 31,
	2022 (1)			2021 (1)
Return of Net Deposits
Total account value	$	109,059		$	117,503
Net amount at risk (2)		232			84
Average attained age of contract holders		67 years			67 years
Minimum Return
Total account value	$	91		$	102
Net amount at risk (2)		12			11
Average attained age of contract holders		79 years			79 years
Guaranteed minimum return		5%			5%
Anniversary Contract Value
Total account value	$	26,308		$	28,788
Net amount at risk (2)		1,211			400
Average attained age of contract holders		73 years			73 years

⁽¹⁾Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive.

⁽²⁾Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations.

The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDBs (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets:

	For the Three
	Months Ended
	March 31,
	2022			2021
Balance as of beginning-of-year	$	132		$	121
Changes in reserves		38			8
Benefits paid		(7	)		(5	)
Balance as of end-of-period	$	163		$	124

Variable Annuity Contracts

Account balances of variable annuity contracts, including those with guarantees, (in millions) were invested in separate account investment options as follows:

	As of			As of
	March 31,		December 31,
	2022			2021
Asset Type
Domestic equity	$	70,938		$	77,290
International equity		19,271			21,223
Fixed income		41,808			45,231
Total	$	132,017		$	143,744

Secondary Guarantee Products

Future contract benefits and other contract holder funds include reserves for our secondary guarantee products sold through our Life Insurance segment. Reserves on UL and VUL products with secondary guarantees represented 37% of total life insurance in-force reserves as of March 31, 2022, and December 31, 2021.

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8. Liability for Unpaid Claims

The liability for unpaid claims consists primarily of long-term disability claims and is reported in future contract benefits on our Consolidated Balance Sheets. Changes in the liability for unpaid claims (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Balance as of beginning-of-year	$	6,280		$	5,934
Reinsurance recoverable		147			151
Net balance as of beginning-of-year		6,133			5,783
Incurred related to:
Current year		1,060			1,025
Prior years:
Interest		39			42
All other incurred (1)		(75	)		(101	)
Total incurred		1,024			966
Paid related to:
Current year		(297	)		(302	)
Prior years		(663	)		(601	)
Total paid		(960	)		(903	)
Net balance as of end-of-period		6,197			5,846
Reinsurance recoverable		145			151
Balance as of end-of-period	$	6,342		$	5,997

⁽¹⁾All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably.

The interest rate assumption used for discounting long-term claim reserves is an important part of the reserving process due to the long benefit period for these claims. Interest accrued on prior years’ reserves has been calculated on the opening reserve balance less one-half of the prior years’ incurred claim payments at our average reserve discount rate.

Long-term disability benefits may extend for many years, and claim development schedules do not reflect these longer benefit periods. As a result, we use longer term retrospective runoff studies, experience studies and prospective studies to develop our liability estimates. Long-term disability reserves are discounted using rates ranging from 2.5% to 5.0% that vary by year of claim incurral.

9.  Contingencies and Commitments

Contingencies

Regulatory and Litigation Matters

Regulatory bodies, such as state insurance departments, the SEC, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisers and unclaimed property laws.

LNL and its affiliates are involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding verdicts obtained in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNL in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the

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credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of March 31, 2022.

For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss. As of March 31, 2022, we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $120 million, after-tax. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure on such matters.

For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Among other matters, we are presently engaged in litigation, including relating to cost of insurance rates (“Cost of Insurance and Other Litigation”), as described below. No accrual has been made for several of these matters. Although a loss is believed to be reasonably possible for these matters, we are not able to estimate a reasonably possible amount or range of potential liability. An adverse outcome in one or more of these matters may have a material impact on our consolidated financial statements, but, based on information currently known, management does not believe those cases are likely to have such an impact.

Reinsurance Disputes

Certain reinsurers have sought rate increases on certain yearly renewable term agreements. We are disputing the requested rate increases under these agreements. We may initiate legal proceedings, as necessary, under these agreements in order to protect our contractual rights. Additionally, reinsurers have initiated, and may in the future initiate, legal proceedings against us. We believe it is unlikely the outcome of these disputes would have a material impact on our consolidated financial statements.

Cost of Insurance and Other Litigation

Cost of Insurance Litigation

Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company, filed in the U.S. District Court for the District of Connecticut, No. 3:16-cv-00827, is a putative class action that was served on LNL on June 8, 2016. Plaintiff is the owner of a universal life insurance policy who alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who owned policies containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. On January 11, 2019, the court dismissed Plaintiff’s complaint in its entirety. In response, Plaintiff filed a motion for leave to amend the complaint, which we have opposed.

Hanks v. Lincoln Life & Annuity Company of New York (“LLANY”) and Voya Retirement Insurance and Annuity Company (“Voya”), filed in the U.S. District Court for the Southern District of New York, No. 1:16-cv-6399, is a putative class action that was served on LLANY on August 12, 2016. Plaintiff owns a universal life policy originally issued by Aetna (now Voya) and alleges that (i) Voya breached the terms of the policy when it increased non-guaranteed cost of insurance rates on Plaintiff’s policy; and (ii) LLANY, as reinsurer and administrator of Plaintiff’s policy, engaged in wrongful conduct related to the cost of insurance increase and was unjustly enriched as a result. Plaintiff seeks to represent all owners of Aetna life insurance policies that were subject to non-guaranteed cost of insurance rate increases in 2016 and seeks damages on their behalf. On March 13, 2019, the court issued an order granting plaintiff’s motion for class certification for the breach of contract claim and denying such motion with respect to the unjust enrichment claim against LLANY, and, on September 12, 2019, the court issued an order approving the parties’ joint stipulation of dismissal with respect to the unjust enrichment claim and dismissed LLANY as a defendant in the case. In light of LLANY’s role as reinsurer and administrator under the 1998 coinsurance agreement with Aetna (now Voya), and of the parties’ rights and obligations thereunder, LLANY continues to be actively engaged in the defense of this case. On September 30, 2020, the court denied plaintiff’s motion for summary judgment and granted in part Voya’s motion for summary judgment. On October 22, 2021, the parties informed the presiding judge that they have

29

reached a settlement of the action, subject to court approval. On January 19, 2022, plaintiffs filed a renewed motion for preliminary approval of the class action settlement. The settlement, subject to final approval by the court, consists of $92.5 million in pre-tax cash and a five-year cost of insurance rate freeze, among other terms. On February 3, 2022, the court preliminarily approved the class action settlement, and on February 16, 2022, the court set a final fairness hearing for June 29, 2022.

EFG Bank AG, Cayman Branch, et al. v. The Lincoln National Life Insurance Company, pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:17-cv-02592, is a civil action filed on February 1, 2017. Plaintiffs own Legend Series universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates beginning in 2016. We are vigorously defending this matter.

In re: Lincoln National COI Litigation, pending in the U.S. District Court for the Eastern District of Pennsylvania, Master File No. 2:16-cv-06605-GJP, is a consolidated litigation matter related to multiple putative class action filings that were consolidated by an order dated March 20, 2017. In addition to consolidating a number of existing matters, the order also covers any future cases filed in the same district related to the same subject matter. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2016. Plaintiffs seek to represent classes of policyowners and seek damages on their behalf. We are vigorously defending this matter.

In re: Lincoln National 2017 COI Rate Litigation, pending in the U.S. District Court for the Eastern District of Pennsylvania, Master File No. 2:17-cv-04150 is a consolidated litigation matter related to multiple putative class action filings that were consolidated by an order of the court in March 2018. Plaintiffs own universal life insurance policies originally issued by former Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2017. Plaintiffs seek to represent classes of policyholders and seek damages on their behalf. We are vigorously defending this matter.

TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company, filed in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-02989, is a putative class action that was filed on July 17, 2018. Plaintiff alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who own policies issued by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. We are vigorously defending this matter.

LSH Co. and Wells Fargo Bank, National Association, as securities intermediary for LSH Co. v. Lincoln National Corporation and The Lincoln National Life Insurance Company, pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-05529, is a civil action filed on December 21, 2018. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates in 2016 and 2017. We are vigorously defending this matter.

Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York, pending in the U.S. District Court for the Southern District of New York, No. 1:19-cv-06004, is a putative class action that was filed on June 27, 2019. Plaintiff alleges that LLANY charged more for non-guaranteed cost of insurance than was permitted by the policies. On March 31, 2022, the court issued an order granting plaintiff’s motion for class certification and certified a class of all current or former owners of six universal life insurance products issued by LLANY that were assessed a cost of insurance charge any time on or after June 27, 2013. Plaintiff seeks damages on behalf of the class. We are vigorously defending this matter.

Other Litigation

Andrew Nitkewicz v. Lincoln Life & Annuity Company of New York, pending in the U.S. District Court for the Southern District of New York, No. 1:20-cv-06805, is a putative class action that was filed on August 24, 2020. Plaintiff Andrew Nitkewicz, as trustee of the Joan C. Lupe Trust, seeks to represent all current and former owners of universal life (including variable universal life) policies who own or owned policies issued by LLANY and its predecessors in interest that were in force at any time on or after June 27, 2013, and for which planned annual, semi-annual, or quarterly premiums were paid for any period beyond the end of the policy month of the insured’s death. Plaintiff alleges LLANY failed to refund unearned premium in violation of New York Insurance Law Section 3203(a)(2) in connection with the payment of death benefit claims for certain insurance policies. Plaintiff seeks compensatory damages and pre-judgment interest on behalf of the various classes and sub-class. On July 2, 2021, the court granted, with prejudice, LLANY’s November 2020 motion to dismiss this matter. On July 28, 2021, plaintiff filed a notice of appeal with respect to this ruling.

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30

10. Shares and Stockholder’s Equity

All authorized and issued shares of LNL are owned by LNC.

AOCI

The following summarizes the components and changes in AOCI (in millions):

	For the Three
	Months Ended
	March 31,
	2022			2021
Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other
Investments
Balance as of beginning-of-year	$	6,315		$	8,993
Unrealized holding gains (losses) arising during the period		(10,039	)		(7,077	)
Change in foreign currency exchange rate adjustment		(70	)		(41	)
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds		3,840			3,287
Income tax benefit (expense)		1,338			817
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		(2	)		1
Associated amortization of DAC, VOBA, DSI and DFEL		(4	)		(4	)
Income tax benefit (expense)		1			1
Balance as of end-of-period	$	1,389		$	5,981
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	240		$	42
Unrealized holding gains (losses) arising during the period		(159	)		(266	)
Change in foreign currency exchange rate adjustment		75			47
Change in DAC, VOBA, DSI and DFEL		14			14
Income tax benefit (expense)		15			43
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		17			9
Associated amortization of DAC, VOBA, DSI and DFEL		(3	)		(1	)
Income tax benefit (expense)		(3	)		(2	)
Balance as of end-of-period	$	174		$	(126	)
Funded Status of Employee Benefit Plans
Balance as of beginning-of-year	$	(11	)	$	(14	)
Adjustment arising during the period		-			(1	)
Income tax benefit (expense)		(1	)		-
Balance as of end-of-period	$	(12	)	$	(15	)

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The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss):

	For the Three
	Months Ended
	March 31,
	2022			2021
Unrealized Gain (Loss) on Fixed Maturity AFS
Securities and Certain Other Investments
Gross reclassification	$	(2	)	$	1		Realized gain (loss)
Associated amortization of DAC,
VOBA, DSI and DFEL		(4	)		(4	)	Realized gain (loss)
Reclassification before income
tax benefit (expense)		(6	)		(3	)	Income (loss) before taxes
Income tax benefit (expense)		1			1		Federal income tax expense (benefit)
Reclassification, net of income tax	$	(5	)	$	(2	)	Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments
Gross reclassifications:
Interest rate contracts	$	1		$	1		Net investment income
Foreign currency contracts		13			10		Net investment income
Foreign currency contracts		3			(2	)	Realized gain (loss)
Total gross reclassifications		17			9
Associated amortization of DAC,
VOBA, DSI and DFEL		(3	)		(1	)	Commissions and other expenses
Reclassifications before income
tax benefit (expense)		14			8		Income (loss) before taxes
Income tax benefit (expense)		(3	)		(2	)	Federal income tax expense (benefit)
Reclassifications, net of income tax	$	11		$	6		Net income (loss)

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11. Realized Gain (Loss)

Realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for impairments of investments and changes in the allowance for credit losses for financial assets, changes in fair value for mortgage loans on real estate accounted for under the fair value option, changes in fair value of equity securities, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation. Details underlying realized gain (loss) (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Fixed maturity AFS securities:
Gross gains	$	2		$	10
Gross losses		(4	)		(9	)
Credit loss benefit (expense) (1)		(1	)		(2	)
Realized gain (loss) on equity securities (2)		5			10
Credit loss benefit (expense) on mortgage loans on real estate		18			24
Credit loss benefit (expense) on reinsurance-related assets		(5	)		1
Other gain (loss) on investments		(3	)		3
Associated amortization of DAC, VOBA, DSI and DFEL
and changes in other contract holder funds		(7	)		(5	)
Total realized gain (loss) related to certain financial assets		5			32
Realized gain (loss) on the mark-to-market on certain instruments (3)(4)		275			218
Indexed annuity and IUL contracts net derivative results: (5)
Gross gain (loss)		113			32
Associated amortization of DAC, VOBA, DSI and DFEL		(55	)		(13	)
GLB fees ceded to LNBAR and attributed fees:
Gross gain (loss)		(64	)		(50	)
Associated amortization of DAC, VOBA, DSI and DFEL		(8	)		(8	)
Total realized gain (loss)	$	266		$	211

⁽¹⁾Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events.

⁽²⁾Includes market adjustments on equity securities still held of $7 million and $10 million for the three months ended March 31, 2022 and 2021, respectively.

⁽³⁾Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance-related embedded derivatives, mortgage loans on real estate accounted for under the fair value option and trading securities.

⁽⁴⁾Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $(3) million and $1 million for the three months ended March 31, 2022 and 2021, respectively.

⁽⁵⁾Represents the net difference between the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products.

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12. Fair Value of Financial Instruments

The carrying values and estimated fair values of our financial instruments (in millions) were as follows:

	As of March 31, 2022						As of December 31, 2021
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
Fixed maturity AFS securities	$	109,921		$	109,921		$	117,511		$	117,511
Trading securities		4,334			4,334			4,427			4,427
Equity securities		340			340			314			314
Mortgage loans on real estate		17,795			17,539			17,893			18,599
Derivative investments (1)		4,840			4,840			5,437			5,437
Other investments		3,516			3,516			3,439			3,439
Cash and invested cash		1,722			1,722			2,331			2,331
Other assets:
GLB direct embedded derivatives		1,880			1,880			1,963			1,963
GLB ceded embedded derivatives		42			42			56			56
Indexed annuity ceded embedded derivatives		493			493			528			528
LPR ceded derivative		266			266			318			318
Separate account assets		168,879			168,879			182,583			182,583
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(5,574	)		(5,574	)		(6,131	)		(6,131	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(1,815	)		(1,815	)		(1,788	)		(1,788	)
Account values of certain investment contracts		(41,247	)		(41,722	)		(41,164	)		(47,828	)
Short-term debt		(737	)		(737	)		(1,084	)		(1,084	)
Long-term debt		(2,311	)		(2,470	)		(2,334	)		(2,675	)
Reinsurance-related embedded derivatives		(31	)		(31	)		(578	)		(578	)
Other liabilities:
Derivative liabilities (1)		(181	)		(181	)		(249	)		(249	)
GLB ceded embedded derivatives		(1,917	)		(1,917	)		(2,015	)		(2,015	)

⁽¹⁾We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty.

Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value

The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on our Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments.

Mortgage Loans on Real Estate

The fair value of mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, are classified as Level 2 within the fair value hierarchy.

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34

Other Investments

The carrying value of our assets classified as other investments, excluding short-term investments, approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also includes FHLB stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy.

Separate Account Assets

Separate account assets are primarily carried at fair value.  A portion of our separate account assets includes LPs, which are accounted for using the equity method of accounting. The carrying value is based on our proportional share of the net assets of the LPs and approximates fair value. The inputs used to measure the fair value of the separate account asset LPs are classified as Level 3 within the fair value hierarchy.

Other Contract Holder Funds

Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of March 31, 2022, and December 31, 2021, the remaining guaranteed interest and similar contracts carrying value approximated fair value. The fair value of the account values of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of our other contract holder funds are classified as Level 3 within the fair value hierarchy.

Short-Term and Long-Term Debt

The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy.

Fair Value Option

Mortgage loans on real estate, net of allowance for credit losses, as reported on our Consolidated Balance Sheets, includes mortgage loans on real estate for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with modified coinsurance agreements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on our Consolidated Statement of Comprehensive Income (Loss). Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Mortgage loans on real estate for which the fair value option was elected are valued using third-party pricing services. We have procedures in place to review the valuations each quarter to ensure they are reasonable, including utilizing a separate third party to reperform the valuation for a selection of mortgage loans on an annual basis. Due to lack of observable inputs, mortgage loans electing the fair value option are categorized as Level 3 within the fair value hierarchy.

The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows:

	As of		As of
	March 31,		December 31,
	2022		2021
Fair value	$	537	$	739
Aggregate contractual principal		543		742

As of March 31, 2022, and December 31, 2021, no loans for which the fair value option was elected were in non-accrual status, and none were more than 90 days past due and still accruing interest.

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Financial Instruments Carried at Fair Value

Short-Term Investments

Short-term investments consist of securities with original maturities of one year or less, but greater than three months, and are included in other investments on our Consolidated Balance Sheets. Securities included in short-term investments are carried at fair value, with valuation methods and inputs consistent with those applied to fixed maturity AFS securities.

We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2022, or December 31, 2021.

The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:

		As of March 31, 2022
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	81,328			$	8,948		$	90,276
U.S. government bonds			365			23				-			388
State and municipal bonds			-			5,784				-			5,784
Foreign government bonds			-			334				40			374
RMBS			-			2,122				13			2,135
CMBS			-			1,567				17			1,584
ABS			-			7,935				988			8,923
Hybrid and redeemable preferred securities			48			315				94			457
Trading securities			-			3,537				797			4,334
Equity securities			14			228				98			340
Mortgage loans on real estate			-			-				537			537
Derivative investments (1)			-			6,226				272			6,498
Other investments – short-term investments			-			170				-			170
Cash and invested cash			-			1,722				-			1,722
Other assets:
GLB direct embedded derivatives			-			-				1,880			1,880
GLB ceded embedded derivatives			-			-				42			42
Indexed annuity ceded embedded derivatives			-			-				493			493
LPR ceded derivative			-			-				266			266
Separate account assets			506			168,371				-			168,877
Total assets		$	933		$	279,662			$	14,485		$	295,080
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(5,574	)	$	(5,574	)
Reinsurance-related embedded derivatives			-			(31	)			-			(31	)
Other liabilities:
Derivative liabilities (1)			-			(1,570	)			(269	)		(1,839	)
GLB ceded embedded derivatives			-			-				(1,917	)		(1,917	)
Total liabilities		$	-		$	(1,601	)		$	(7,760	)	$	(9,361	)

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36

		As of December 31, 2021
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	88,622			$	8,801		$	97,423
U.S. government bonds			395			5				-			400
State and municipal bonds			-			6,377				-			6,377
Foreign government bonds			-			382				41			423
RMBS			-			2,302				3			2,305
CMBS			-			1,590				-			1,590
ABS			-			7,636				870			8,506
Hybrid and redeemable preferred securities			53			344				90			487
Trading securities			32			3,567				828			4,427
Equity securities			7			216				91			314
Mortgage loans on real estate			-			-				739			739
Derivative investments (1)			-			7,597				149			7,746
Other investments – short-term investments			-			114				-			114
Cash and invested cash			-			2,331				-			2,331
Other assets:
GLB direct embedded derivatives			-			-				1,963			1,963
GLB ceded embedded derivatives			-			-				56			56
Indexed annuity ceded embedded derivatives			-			-				528			528
LPR ceded derivative			-			-				318			318
Separate account assets			646			181,929				-			182,575
Total assets		$	1,133		$	303,012			$	14,477		$	318,622
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(6,131	)	$	(6,131	)
Reinsurance-related embedded derivatives			-			(578	)			-			(578	)
Other liabilities:
Derivative liabilities (1)			-			(2,430	)			(128	)		(2,558	)
GLB ceded embedded derivatives			-			-				(2,015	)		(2,015	)
Total liabilities		$	-		$	(3,008	)		$	(8,274	)	$	(11,282	)

⁽¹⁾Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty.

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37

The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.

	For the Three Months Ended March 31, 2022
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net			Value
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	8,801		$	1		$	(351	)	$	363		$	134		$	8,948
Foreign government bonds		41			-			(1	)		-			-			40
RMBS		3			-			-			12			(2	)		13
CMBS		-			-			-			17			-			17
ABS		870			-			(27	)		187			(42	)		988
Hybrid and redeemable preferred
securities		90			-			4			-			-			94
Trading securities		828			(29	)		-			2			(4	)		797
Equity securities		91			15			-			(8	)		-			98
Mortgage loans on real estate		739			(3	)		(1	)		(198	)		-			537
Derivative investments		21			3			(6	)		-			(15	)		3
Other assets:
GLB direct embedded derivatives (3)		1,963			(83	)		-			-			-			1,880
GLB ceded embedded derivatives (3)		56			(14	)		-			-			-			42
Indexed annuity ceded embedded
derivatives (3)		528			(53	)		-			18			-			493
LPR ceded derivative (4)		318			(52	)		-			-			-			266
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (3)		(6,131	)		559			-			(2	)		-			(5,574	)
Other liabilities – GLB ceded embedded
derivatives (3)		(2,015	)		98			-			-			-			(1,917	)
Total, net	$	6,203		$	442		$	(382	)	$	391		$	71		$	6,725

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38

	For the Three Months Ended March 31, 2021
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net			Value
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	7,761		$	1		$	(121	)	$	158		$	(27	)	$	7,772
U.S. government bonds		5			-			-			-			-			5
Foreign government bonds		74			-			(8	)		-			-			66
RMBS		2			-			-			-			(1	)		1
CMBS		1			-			-			-			-			1
ABS		570			-			(7	)		183			(58	)		688
Hybrid and redeemable preferred
securities		103			-			1			(20	)		-			84
Trading securities		643			(3	)		-			66			9			715
Equity securities		57			7			-			(5	)		-			59
Mortgage loans on real estate		832			2			3			37			-			874
Derivative investments		1,542			1,251			-			(132	)		-			2,661
Other assets:
GLB direct embedded derivatives (3)		450			1,381			-			-			-			1,831
GLB ceded embedded derivatives (3)		82			(40	)		-			-			-			42
Indexed annuity ceded embedded
derivatives (3)		550			32			-			(55	)		-			527
LPR ceded derivative (4)		-			(50	)					-			318			268
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (3)		(3,594	)		(626	)		-			50			-			(4,170	)
Other liabilities – GLB ceded embedded
derivatives (3)		(531	)		(1,338	)		-			-			-			(1,869	)
Total, net	$	8,547		$	617		$	(132	)	$	282		$	241		$	9,555

⁽¹⁾The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

⁽²⁾Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽³⁾Gains (losses) from the changes in fair value are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁴⁾Gains (losses) from the changes in fair value are included in benefits on our Consolidated Statements of Comprehensive Income (Loss).

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39

The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, (in millions) as reported above:

	For the Three Months Ended March 31, 2022
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	455		$	(24	)	$	(20	)	$	(43	)	$	(5	)	$	363
RMBS		12			-			-			-			-			12
CMBS		17			-			-			-			-			17
ABS		250			-			-			(56	)		(7	)		187
Trading securities		179			(132	)		-			(45	)		-			2
Equity securities		-			(8	)		-			-			-			(8	)
Mortgage loans on real estate		3			-			-			(201	)		-			(198	)
Other assets – indexed annuity ceded
embedded derivatives		16			-			-			2			-			18
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(128	)		-			-			126			-			(2	)
Total, net	$	804		$	(164	)	$	(20	)	$	(217	)	$	(12	)	$	391

	For the Three Months Ended March 31, 2021
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	304		$	(28	)	$	(15	)	$	(86	)	$	(17	)	$	158
ABS		200			-			-			(17	)		-			183
Hybrid and redeemable preferred
securities		-			(20	)		-			-			-			(20	)
Trading securities		88			(3	)		-			(19	)		-			66
Equity securities		3			(8	)		-			-			-			(5	)
Mortgage loans on real estate		72			(35	)		-			-			-			37
Derivative investments		174			(124	)		(182	)		-			-			(132	)
Other assets – indexed annuity ceded
embedded derivatives		3			-			-			(58	)		-			(55	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(108	)		-			-			158			-			50
Total, net	$	736		$	(218	)	$	(197	)	$	(22	)	$	(17	)	$	282

‎

40

The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):

	For the Three
	Months Ended
	March 31,
	2022			2021
Trading securities (1)	$	(30	)	$	(2	)
Equity securities (1)		17			6
Mortgage loans on real estate (1)		(3	)		4
Derivative investments (1)		2			1,053
Other assets – LPR ceded derivative (2)		(52	)		(50	)
Embedded derivatives: (1)
Indexed annuity and IUL contracts		84			43
Other assets – GLB direct and ceded		105			1,545
Other liabilities – GLB ceded		(105	)		(1,542	)
Total, net	$	18		$	1,057

⁽¹⁾Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽²⁾Included in benefits on our Consolidated Statements of Comprehensive Income (Loss).

The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):

	For the Three
	Months Ended
	March 31,
	2022			2021
Fixed maturity AFS securities:
Corporate bonds	$	(354	)	$	(122	)
Foreign government bonds		(2	)		(8	)
ABS		(27	)		(8	)
Hybrid and redeemable preferred
securities		4			2
Mortgage loans on real estate		-			3
Total, net	$	(379	)	$	(133	)

The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:

	For the Three								For the Three
	Months Ended								Months Ended
	March 31, 2022								March 31, 2021
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	196	$	(62	)	$	134		$	11	$	(38	)	$	(27	)
RMBS		-		(2	)		(2	)		-		(1	)		(1	)
ABS		-		(42	)		(42	)		-		(58	)		(58	)
Trading securities		-		(4	)		(4	)		12		(3	)		9
Derivative investments		-		(15	)		(15	)		-		-			-
Other assets – LPR ceded derivative		-		-			-			318		-			318
Total, net	$	196	$	(125	)	$	71		$	341	$	(100	)	$	241

41

Transfers into and out of Level 3 are generally the result of observable market information on financial instruments no longer being available or becoming available to our pricing vendors. For the three months ended March 31, 2022 and 2021, transfers in and out of Level 3 were attributable primarily to the financial instruments’ observable market information no longer being available or becoming available.

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of March 31, 2022:

											Weighted
											Average
	Fair			Valuation	Significant	Assumption or					Input
	Value			Technique	Unobservable Inputs	Input Ranges					Range (1)
Assets
Investments:
Fixed maturity AFS and
trading securities:
Corporate bonds	$	3,765		Discounted cash flow	Liquidity/duration adjustment (2)	0.4	%	-	4.7	%	1.6	%
Foreign government
bonds		40		Discounted cash flow	Liquidity/duration adjustment (2)	1.1	%	-	10.3	%	7.8	%
ABS		17		Discounted cash flow	Liquidity/duration adjustment (2)	1.4	%	-	1.4	%	1.4	%
Hybrid and redeemable
preferred securities		3		Discounted cash flow	Liquidity/duration adjustment (2)	1.5	%	-	1.5	%	1.5	%
Equity securities		21		Discounted cash flow	Liquidity/duration adjustment (2)	3.6	%	-	4.5	%	3.8	%
Other assets:
GLB direct and ceded
embedded derivatives		1,922		Discounted cash flow	Long-term lapse rate (3)	1	%	-	30	%	(10)
					Utilization of guaranteed withdrawals (4)	85	%	-	100	%	94	%
					Claims utilization factor (5)	60	%	-	100	%	(10)
					Premiums utilization factor (5)	80	%	-	115	%	(10)
					NPR (6)	0.14	%	-	1.59	%	1.14	%
					Mortality rate (7)				(9)		(10)
					Volatility (8)	1	%	-	28	%	14.53	%
Indexed annuity ceded
embedded derivatives		493		Discounted cash flow	Lapse rate (3)	0	%	-	9	%	(10)
					Mortality rate (7)				(9)		(10)
LPR ceded derivative		266		Discounted cash flow	Long-term lapse rate (3)	0	%	-	1.65	%	(10)
					NPR (6)	0.14	%	-	1.59	%	1.12	%
					Mortality rate (7)				(9)		(10)
Liabilities
Future contract benefits –
indexed annuity contracts
embedded derivatives	$	(5,564	)	Discounted cash flow	Lapse rate (3)	0	%	-	9	%	(10)
					Mortality rate (7)				(9)		(10)
Other liabilities –
GLB ceded embedded
derivatives		(1,917	)	Discounted cash flow	Long-term lapse rate (3)	1	%	-	30	%	(10)
					Utilization of guaranteed withdrawals (4)	85	%	-	100	%	94	%
					Claims utilization factor (5)	60	%	-	100	%	(10)
					Premiums utilization factor (5)	80	%	-	115	%	(10)
					NPR (6)	0.14	%	-	1.59	%	1.14	%
					Mortality rate (7)				(9)		(10)
					Volatility (8)	1	%	-	28	%	14.53	%

42

⁽¹⁾Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted.

⁽²⁾The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

⁽³⁾The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapse rates during the surrender charge period.

⁽⁴⁾The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁵⁾The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal.

⁽⁶⁾The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input for direct and ceded embedded derivatives was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. The NPR input for LPR ceded derivative was weighted using a simple average.

⁽⁷⁾The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

⁽⁸⁾The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index.

⁽⁹⁾The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.

⁽¹⁰⁾A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate.

From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement.

Changes in any of the significant inputs presented in the table above would have resulted in a significant change in the fair value measurement of the asset or liability as follows:

Investments – An increase in the liquidity/duration adjustment input would have resulted in a decrease in the fair value measurement.

Indexed annuity contracts embedded derivatives – For direct embedded derivatives, an increase in the lapse rate or mortality rate inputs would have resulted in a decrease in the fair value measurement.

LPR ceded derivative – Assuming our LPR ceded derivative is in an asset position: an increase in our lapse rate, NPR or mortality rate inputs would have resulted in an increase in the fair value measurement.

GLB embedded derivatives – Assuming our GLB direct embedded derivatives are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would have resulted in a decrease in the fair value measurement; and an increase in the utilization of guaranteed withdrawal or volatility inputs would have resulted in an increase in the fair value measurement.

For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input would not have affected the other inputs.

As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary.

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13. Segment Information

We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. A discussion of these segments and Other Operations is found in Note 21 to the consolidated financial statements in our 2021 Form 10-K.

Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

Realized gains and losses associated with the following (“excluded realized gain (loss)”):

Sales or disposals and impairments of financial assets;

Changes in the fair value of equity securities;

Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”);

GLB rider fees ceded to LNBAR;

The net valuation premium of the GLB attributed rider fees; and

Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”);

Changes in reserves resulting from benefit ratio unlocking on our GLB riders (“benefit ratio unlocking”);

Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

Gains (losses) on modification or early extinguishment of debt;

Losses from the impairment of intangible assets;

Income (loss) from discontinued operations;

Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; and

Income (loss) from the initial adoption of new accounting standards, regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act.

Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:

Excluded realized gain (loss);

Revenue adjustments from the initial adoption of new accounting standards;

Amortization of DFEL arising from changes in GLB benefit ratio unlocking; and

Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

‎

44

The tables below reconcile our segment measures of performance to the GAAP measures presented in our Consolidated Statements of Comprehensive Income (Loss) (in millions):

	For the Three
	Months Ended
	March 31,
	2022		2021
Revenues
Operating revenues:
Annuities	$	1,122	$	1,097
Retirement Plan Services		314		323
Life Insurance		1,715		1,819
Group Protection		1,302		1,253
Other Operations		33		35
Excluded realized gain (loss), pre-tax		210		162
Total revenues	$	4,696	$	4,689

	For the Three
	Months Ended
	March 31,
	2022			2021
Net Income (Loss)
Income (loss) from operations:
Annuities	$	348		$	297
Retirement Plan Services		52			54
Life Insurance		18			42
Group Protection		(41	)		(26	)
Other Operations		(63	)		(41	)
Excluded realized gain (loss), after-tax		166			127
Benefit ratio unlocking, after-tax		(11	)		11
Net income (loss)	$	469		$	464

‎

45

Item 2. Management’s Narrative Analysis of the Results of Operations

Index to Management’s Narrative Analysis of the Results of Operations

	Page
Forward-Looking Statements – Cautionary Language	47
Introduction	48
Critical Accounting Policies and Estimates	49
Results of Consolidated Operations	50
Results of Annuities	51
Results of Retirement Plan Services	52
Results of Life Insurance	53
Results of Group Protection	54
Results of Other Operations	55
Realized Gain (Loss)	56
Liquidity and Capital Resources	57

‎

46

Management’s Narrative Analysis (“MNA”) of the results of operations for the three months ended March 31, 2022, compared with the corresponding period in 2021 of The Lincoln National Life Insurance Company (“LNL”) and its consolidated subsidiaries should be read in conjunction with our consolidated financial statements and the accompanying notes to the consolidated financial statements (“Notes”) presented in “Part I – Item 1. Financial Statements,” our Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”) and other reports filed with the Securities and Exchange Commission (“SEC”). Unless otherwise stated or the context otherwise requires, “LNL,” “Company,” “we,” “our” or “us” refers to The Lincoln National Life Insurance Company and its consolidated subsidiaries. LNL is a wholly-owned subsidiary of Lincoln National Corporation (“LNC”).

See “Part I – Item 1. Business” and Note 1 in our 2021 Form 10-K for a description of the business.

In this report, in addition to providing consolidated revenues and net income (loss), we also provide segment operating revenues and income (loss) from operations because we believe they are meaningful measures of revenues and the profitability of our operating segments. Operating revenues and income (loss) from operations are the financial performance measures we use to evaluate and assess the results of our segments. Accordingly, we define and report operating revenues and income (loss) from operations by segment in Note 13. Our management believes that operating revenues and income (loss) from operations explain the results of our ongoing businesses in a manner that allows for a better understanding of the underlying trends in our current businesses. Certain items are excluded from operating revenue and income (loss) from operations because they are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in many instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. In addition, we believe that our definitions of operating revenues and income (loss) from operations will provide readers with a more valuable measure of our performance because it better reveals trends in our business.

Management’s Narrative Analysis is presented pursuant to General Instructions H(2)(a) of Form 10-Q in lieu of Management’s Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING STATEMENTS – CAUTIONARY LANGUAGE

This Quarterly Report on Form 10-Q, including “Risk Factors” and “Management’s Narrative Analysis of the Results of Operations,” contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings. We claim the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

The continuation of the COVID-19 pandemic, or future outbreaks of COVID-19, and uncertainty surrounding the length and severity of future impacts on the global economy and on our business, results of operations and financial condition;

Further deterioration in general economic and business conditions that may affect account values, investment results and claims experience;

Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments;

Legislative, regulatory or tax changes that affect the cost of, or demand for, our products or our ability to conduct business;

The impact of U.S. federal tax reform legislation on our business, earnings and capital;

The impact of Regulation Best Interest or other regulations adopted by the SEC, the Department of Labor or other federal or state regulators or self-regulatory organizations relating to the standard of care owed by investment advisers and/or broker-dealers that could affect our distribution model;

Actions taken by reinsurers to raise rates on in-force business;

Further declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses, and demand for our products;

Rapidly increasing interest rates causing contract holders to surrender life insurance and annuity policies, thereby causing realized investment losses, and reduced hedge performance related to variable annuities;

The impact of the implementation of the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to the regulation of derivatives transactions;

The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings;

A decline or continued volatility in the equity markets causing a reduction in the sales of our products; a reduction of asset-based fees that we charge on various investment and insurance products; and an increase in liabilities related to guaranteed benefit features of our variable annuity products;

47

Changes in our assumptions related to deferred acquisition costs (“DAC”) or value of business acquired (“VOBA”);   

Ineffectiveness of our risk management policies and procedures;

A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our products;

Changes in accounting principles that may affect our business, results of operations and financial condition, including the adoption effective January 1, 2023, of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts;

Lowering of one or more of our financial strength ratings;

Interruption in telecommunication, information technology or other operational systems or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches of our data security systems;

The inability to realize or sustain the benefits we expect from, greater than expected investments in, and the potential impact of efforts related to, our strategic initiatives, including the Spark Initiative;

The adequacy and collectability of reinsurance that we have obtained;

Future pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely affect our businesses and the cost and availability of reinsurance;

Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that we can charge for our products;

The unknown effect on our businesses resulting from evolving market preferences and the changing demographics of our client base; and

The unanticipated loss of key management, financial planners or wholesalers.

The risks and uncertainties included here are not exhaustive.  Our most recent Form 10-K as well as other reports that we file with the SEC include additional factors that could affect our businesses and financial performance.  Moreover, we operate in a rapidly changing and competitive environment.  New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.

We do not intend, and are under no obligation, to update any particular forward-looking statement included in this document. See “Risk Factors” included in “Part I – Item 1A. Risk Factors” in our 2021 Form 10-K for a discussion of certain risks relating to our business.

INTRODUCTION

COVID-19 Pandemic

The health, economic and business conditions precipitated by the worldwide COVID-19 pandemic that emerged in 2020 continue to adversely affect us and are expected to continue to adversely affect our business, results of operations and financial condition in the second quarter of 2022. We continue to monitor U.S. CDC reports related to COVID-19 and the potential impacts of the COVID-19 pandemic on our Life Insurance and Group Protection segments. See “Additional Information” within Results of Life Insurance and Results of Group Protection below for expected impacts of the COVID-19 pandemic in the second quarter of 2022.

The ultimate impact on our business, results of operations and financial condition depends on the severity and duration of the COVID-19 pandemic and related health, economic and business impacts and actions taken by governmental authorities and other third parties in response, each of which is uncertain, rapidly changing and difficult to predict. For more information on the risks related to the COVID-19 pandemic, see “Part I – Item 1A. Risk Factors – Market Conditions – The impacts of the COVID-19 pandemic have adversely affected and are expected to continue to adversely affect our business and results of operations, and the future impacts of the COVID-19 pandemic on the company’s business, results of operations and financial condition remain uncertain” in our 2021 Form 10-K.

Interest Rate Environment

In light of substantial progress since 2020 in the labor markets, elevated inflation and geopolitical events, the Federal Reserve announced in March 2022 the first increase to the federal funds rate target range since December 2018. Subsequently, in May 2022, the Federal Reserve announced an additional 50 basis points increase to the federal funds rate target range, setting the range at 0.75% to 1.00%, and stated that it anticipates ongoing increases throughout 2022. Additionally, the Federal Reserve announced that it will reduce its holdings of Treasury securities, agency debt and agency mortgage-backed securities at a measured pace beginning in June 2022. Although short-term interest rates may continue to rise during the year, we expect the low interest rate environment to continue to adversely affect our businesses through spread compression, which we expect to moderate over time as interest rates continue to rise. We continue to be proactive in our investment strategies, product designs, crediting rate strategies, expense management actions and overall asset-liability practices to mitigate the risk of unfavorable consequences in this continued low interest rate environment.

We have provided disclosures around interest rate risk in “Part I – Item 1A. Risk Factors – Market Conditions – Changes in interest rates and sustained low interest rates may cause interest rate spreads to decrease, impacting our profitability, and make it more challenging to meet certain statutory requirements, and changes in interest rates may also result in increased contract withdrawals” in our 2021 Form 10-K.

48

Spark Initiative

In the fourth quarter of 2021, LNC formally communicated its new expense savings initiative, the Spark Initiative. Because we have almost completed the investments related to our strategic digitization initiative first announced in 2016, beginning in the fourth quarter of 2021, we integrated the actual and expected remaining amounts associated with that initiative into the amounts associated with the Spark Initiative. For more information about the Spark Initiative, see “Part II – Item 7. Management’s Narrative Analysis of the Results of Operations – Introduction” in our 2021 Form 10-K.

Critical Accounting Policies and Estimates

The MNA included in our 2021 Form 10-K contains a detailed discussion of our critical accounting policies and estimates. The following information updates the “Critical Accounting Policies and Estimates” provided in our 2021 Form 10-K, and therefore, should be read in conjunction with that disclosure.

DAC, VOBA, DSI and DFEL

Reversion to the Mean

As variable fund returns do not move in a systematic manner, we reset the baseline of account values from which estimated gross profits are projected, which we refer to as our reversion to the mean (“RTM”) process, as discussed in our 2021 Form 10-K.

If we had unlocked our RTM assumption as of March 31, 2022, we would have recorded favorable unlocking of approximately $300 million, pre-tax, primarily within our Annuities segment.

Investments

Investment Valuation

For more information about the valuation of our financial instruments carried at fair value, see “Part II – Item 7. Management’s Narrative Analysis of the Results of Operations – Critical Accounting Policies and Estimates – Investments – Investment Valuation” in our 2021 Form 10-K and Note 13 herein.

Derivatives

Our accounting policies for derivatives and the potential effect on interest spreads in a falling rate environment are discussed in “Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our 2021 Form 10-K and Note 5 herein.

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49

RESULTS OF CONSOLIDATED OPERATIONS

Details underlying the consolidated results (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Net Income (Loss)
Income (loss) from operations:
Annuities	$	348		$	297
Retirement Plan Services		52			54
Life Insurance		18			42
Group Protection		(41	)		(26	)
Other Operations		(63	)		(41	)
Excluded realized gain (loss), after-tax		166			127
Benefit ratio unlocking, after-tax		(11	)		11
Net income (loss)	$	469		$	464

Comparison of the Three Months Ended March 31, 2022 to 2021

Net income decreased due primarily to the following:

Lower investment income on alternative investments.

Unfavorable disability experience in our Group Protection segment.

Higher Spark program expense as part of our Spark Initiative.

The impact of the fourth quarter 2021 reinsurance agreement in our Life Insurance segment.

Spread compression due to average new money rates trailing our current portfolio yields, partially offset by actions implemented to reduce interest crediting rates.

The decrease in net income was partially offset by the following:

Higher realized gains.

Lower mortality claims in our Life Insurance and Group Protection segments attributable to the COVID-19 pandemic.

Higher prepayment and bond make-whole premiums.

Lower federal income tax expense.

Growth in business in force and group earned premiums.

For a discussion of the COVID-19 pandemic, see “Introduction” above. We provide information about our segments’ and Other Operations’ operating revenue and expense line items and realized gain (loss), key drivers of changes and historical details underlying the line items below. For factors that could cause actual results to differ materially from those set forth, see “Forward-Looking Statements – Cautionary Language” above and “Part I – Item 1A. Risk Factors” in our 2021 Form 10-K.

50

RESULTS OF ANNUITIES

Details underlying the results for Annuities (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022		2021
Operating Revenues
Insurance premiums (1)	$	30	$	32
Fee income		599		599
Net investment income		341		306
Operating realized gain (loss) (2)		54		50
Amortization of deferred gain on
business sold through reinsurance		6		6
Other revenues (3)		92		104
Total operating revenues		1,122		1,097
Operating Expenses
Interest credited		206		199
Benefits (1)		60		60
Commissions and other expenses		447		478
Total operating expenses		713		737
Income (loss) from operations before taxes		409		360
Federal income tax expense (benefit)		61		63
Income (loss) from operations	$	348	$	297

⁽¹⁾Insurance premiums include primarily our income annuities that have a corresponding offset in benefits. Benefits include changes in income annuity reserves driven by premiums.

⁽²⁾See “Realized Gain (Loss)” below.

⁽³⁾Consists primarily of revenues attributable to broker-dealer services, which are subject to market volatility and the net settlement related to certain reinsurance transactions, which has a corresponding offset in net investment income and interest credited.

Comparison of the Three Months Ended March 31, 2022 to 2021

Income from operations for this segment increased due primarily to the following:

Lower commissions and other expenses due to amortization expense.

Higher net investment income, net of interest credited, driven by prepayment and bond make-whole premiums and higher average gross fixed account values, partially offset by lower investment income on alternative investments within our surplus portfolio.

Lower federal income tax expense due to unfavorable tax return true-ups in 2021 driven by the separate account dividends-received deduction (“DRD”).

Additional Information

For a discussion of the COVID-19 pandemic, see “Introduction” above and “Part I – 1A. Risk Factors – Market Conditions – The impacts of the COVID-19 pandemic have adversely affected and are expected to continue to adversely affect our business and results of operations, and the future impacts of the COVID-19 pandemic on the company’s business, results of operations and financial condition remain uncertain” in our 2021 Form 10-K.

New deposits are an important component of net flows and key to our efforts to grow our business. Although deposits do not significantly affect current period income from operations, they can significantly impact future income from operations.

The other component of net flows relates to the retention of new business and account values. An important measure of retention is the reduction in account values caused by full surrenders, deaths and other contract benefits. These outflows as a percentage of average gross account values were 7% and 8% for the three months ended March 31, 2022 and 2021, respectively.

Our fixed and indexed variable annuities have discretionary fixed and indexed crediting rates that reset on an annual or periodic basis and may be subject to surrender charges. Our ability to retain these annuities will be subject to current competitive conditions at the time interest rates for these products reset. We expect to manage the effects of spreads on near-term income from operations through portfolio management and, to a lesser extent, crediting rate actions, which assumes no significant changes in net flows or other changes that may cause interest rate spreads to differ from our expectations. For information on interest rate spreads and interest rate risk, see

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“Part I – Item 1A. Risk Factors – Market Conditions – Changes in interest rates and sustained low interest rates may cause interest rate spreads to decrease, impacting our profitability, and make it more challenging to meet certain statutory requirements, and changes in interest rates may also result in increased contract withdrawals” and “Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk – Interest Rate Risk” in our 2021 Form 10-K.

RESULTS OF RETIREMENT PLAN SERVICES

Details underlying the results for Retirement Plan Services (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022		2021
Operating Revenues
Fee income	$	68	$	69
Net investment income		236		246
Other revenues (1)		10		8
Total operating revenues		314		323
Operating Expenses
Interest credited		152		155
Benefits		1		1
Commissions and other expenses		101		101
Total operating expenses		254		257
Income (loss) from operations before taxes		60		66
Federal income tax expense (benefit)		8		12
Income (loss) from operations	$	52	$	54

⁽¹⁾Consists primarily of mutual fund account program revenues from mid to large employers.

Comparison of the Three Months Ended March 31, 2022 to 2021

Income from operations for this segment decreased due primarily to lower net investment income, net of interest credited, driven by lower investment income on alternative investments within our surplus portfolio and spread compression due to average new money rates trailing our current portfolio yields, partially offset by higher average fixed account values and prepayment and bond make-whole premiums. The decrease in income from operations was partially offset by lower federal income tax expense due to unfavorable tax return true-ups in 2021 driven by the separate account DRD.

Additional Information

For a discussion of the COVID-19 pandemic, see “Introduction” above and “Part I – Item 1A. Risk Factors – Market Conditions – The impacts of the COVID-19 pandemic have adversely affected and are expected to continue to adversely affect our business and results of operations, and the future impacts of the COVID-19 pandemic on the company’s business, results of operations and financial condition remain uncertain” in our 2021 Form 10-K.

Net flows in this business fluctuate based on the timing of larger plans being implemented and terminating over the course of the year.

New deposits are an important component of net flows and key to our efforts to grow our business. Although deposits do not significantly affect current period income from operations, they can significantly impact future income from operations. The other component of net flows relates to the retention of the business.  An important measure of retention is the reduction in account values caused by plan sponsor terminations and participant withdrawals. These outflows as a percentage of average account values were 10% for the three months ended March 31, 2022 and 2021.

Our net flows are negatively affected by the continued net outflows from our oldest blocks of annuities business, which are among our higher margin product lines in this segment, due to the fact that they are mature blocks with low distribution and servicing costs. The proportion of these products to our total account values was 18% and 19% as of March 31, 2022 and 2021, respectively. Due to this overall shift in business mix toward products with lower returns, new deposit production continues to be necessary to maintain earnings at current levels.

Our fixed annuity business includes products with discretionary and index-based crediting rates that are reset on either a quarterly or semi-annual basis. Our ability to retain quarterly or semi-annual reset annuities will be subject to current competitive conditions at the time interest rates for these products reset. We expect to manage the effects of spreads on near-term income from operations through portfolio management and, to a lesser extent, crediting rate actions, which assumes no significant changes in net flows into or out of our fixed accounts or other changes that may cause interest rate spreads to differ from our expectations. For information on interest rate

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spreads and interest rate risk, see “Part I – Item 1A. Risk Factors – Market Conditions – Changes in interest rates and sustained low interest rates may cause interest rate spreads to decrease, impacting our profitability, and make it more challenging to meet certain statutory requirements, and changes in interest rates may also result in increased contract withdrawals” and “Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk – Interest Rate Risk” in our 2021 Form 10-K.

RESULTS OF LIFE INSURANCE

Details underlying the results for Life Insurance (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Operating Revenues
Insurance premiums (1)	$	207		$	179
Fee income		835			856
Net investment income		658			776
Operating realized gain (loss) (2)		2			(1	)
Amortization of deferred gain (loss) on
business sold through reinsurance		11			1
Other revenues		2			8
Total operating revenues		1,715			1,819
Operating Expenses
Interest credited		320			364
Benefits		1,082			1,150
Commissions and other expenses		299			257
Total operating expenses		1,701			1,771
Income (loss) from operations before taxes		14			48
Federal income tax expense (benefit)		(4	)		6
Income (loss) from operations	$	18		$	42

⁽¹⁾Includes term insurance premiums, which have a corresponding partial offset in benefits for changes in reserves.

⁽²⁾See “Realized Gain (Loss)” below.

Comparison of the Three Months Ended March 31, 2022 to 2021

Income from operations for this segment decreased due primarily to the following:

Lower net investment income, net of interest credited, driven by lower investment income on alternative investments, spread compression due to average new money rates trailing our current portfolio yields and the impact of the fourth quarter 2021 reinsurance agreement, partially offset by higher prepayment and bond make-whole premiums.

Higher commissions and other expenses due to higher amortization rates, partially offset by expense management.

Lower fee income due to the impact of the fourth quarter 2021 reinsurance agreement, partially offset by growth in business in force and higher DFEL amortization rates.

The decrease in income from operations was partially offset by the following:

Lower benefits due to lower mortality claims attributable to the COVID-19 pandemic and the impact of the fourth quarter 2021 reinsurance agreement.

Higher amortization of deferred gain (loss) on business sold through reinsurance as a result of the fourth quarter 2021 reinsurance agreement.

Additional Information

Effective October 1, 2021, we entered into a reinsurance agreement with Security Life of Denver Insurance Company (a subsidiary of Resolution Life) to reinsure liabilities under a block of in-force executive benefit and universal life policies. We expect an ongoing reduction in income from operations in future periods as a result of this reinsurance agreement.

While U.S. pandemic deaths have improved, we continue to expect elevated mortality in the second quarter of 2022. For a discussion of the COVID-19 pandemic, see “Introduction” above and “Part I – Item 1A. Risk Factors – Market Conditions – The impacts of the

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COVID-19 pandemic have adversely affected and are expected to continue to adversely affect our business and results of operations, and the future impacts of the COVID-19 pandemic on the company’s business, results of operations and financial condition remain uncertain” in our 2021 Form 10-K.

Generally, we have higher mortality in the first quarter of the year due to the seasonality of claims.

Generally, we have higher sales during the second half of the year with the fourth quarter being our strongest.

For information on interest rate spreads and interest rate risk, see “Part I – Item 1A. Risk Factors – Market Conditions – Changes in interest rates and sustained low interest rates may cause interest rate spreads to decrease, impacting our profitability, and make it more challenging to meet certain statutory requirements, and changes in interest rates may also result in increased contract withdrawals” and “Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk – Interest Rate Risk” in our 2021 Form 10-K.

RESULTS OF GROUP PROTECTION

Details underlying the results for Group Protection (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Operating Revenues
Insurance premiums	$	1,169		$	1,119
Net investment income		84			90
Other revenues (1)		49			44
Total operating revenues		1,302			1,253
Operating Expenses
Interest credited		1			1
Benefits		1,027			970
Commissions and other expenses		327			316
Total operating expenses		1,355			1,287
Income (loss) from operations before taxes		(53	)		(34	)
Federal income tax expense (benefit)		(12	)		(8	)
Income (loss) from operations	$	(41	)	$	(26	)

⁽¹⁾Consists of revenue from third parties for administrative services performed, which has a corresponding partial offset in commissions and other expenses.

Comparison of the Three Months Ended March 31, 2022 to 2021

Loss from operations for this segment increased due primarily to the following:

Higher benefits driven by unfavorable experience in our disability business, partially offset by favorable experience in our life business. See “Additional Information” below for further discussion on the impacts to benefits.

Higher commissions and other expenses driven by investments in claims management to address higher claims volume and to improve ongoing operations.

Lower net investment income, net of interest credited, driven by lower investment income on alternative investments within our surplus portfolio.

The increase in loss from operations was partially offset by higher insurance premiums due to growth in the business and favorable persistency.

Additional Information

Our total loss ratio for the three months ended March 31, 2022 and 2021, was 88.0% and 86.8%, respectively. The total loss ratio for the three months ended March 31, 2022, increased as compared to the three months ended March 31, 2021, due primarily to unfavorable claims severity and higher incidence in our disability business, partially offset by improvement in mortality in our life business driven by fewer pandemic-related deaths and favorable life waiver experience. While case counts and hospitalizations have declined and U.S. pandemic deaths have improved, we continue to expect morbidity headwinds in our disability business and elevated mortality in our life business in the second quarter of 2022. For a discussion of the COVID-19 pandemic, see “Introduction” above.

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Generally, we experience higher mortality in the first quarter of the year and higher disability claims in the fourth quarter of the year due to the seasonality of claims.

For information about the effect of the loss ratio sensitivity on our income (loss) from operations, see “Part II – Item 7. Management’s Narrative Analysis of the Results of Operations – Results of Group Protection – Additional Information” in our 2021 Form 10-K. For information on the effects of current interest rates on our long-term disability claim reserves, see “Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk – Interest Rate Risk – Effect of Interest Rate Sensitivity” in our 2021 Form 10-K.

RESULTS OF OTHER OPERATIONS

Details underlying the results for Other Operations (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Operating Revenues
Net investment income	$	34		$	29
Other revenues		(1	)		6
Total operating revenues		33			35
Operating Expenses
Interest credited		12			12
Benefits		15			15
Other expenses		20			19
Interest and debt expense		29			29
Spark program expense		31			13
Total operating expenses		107			88
Income (loss) from operations before taxes		(74	)		(53	)
Federal income tax expense (benefit)		(11	)		(12	)
Income (loss) from operations	$	(63	)	$	(41	)

Comparison of the Three Months Ended March 31, 2022 to 2021

Loss from operations for Other Operations increased due primarily to the following:

Higher Spark program expense as part of our Spark Initiative.

Lower other revenues due to the effect of market fluctuations on assets held as part of certain compensation plans, which decreased during the first quarter of 2022, compared to an increase during the first quarter of 2021.

The increase in loss from operations was partially offset by higher net investment income, net of interest credited, related to higher allocated investments driven by an increase in excess capital retained by Other Operations.

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REALIZED GAIN (LOSS)

Details underlying realized gain (loss), after-DAC ⁽¹⁾ (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Components of Realized Gain (Loss), Pre-Tax
Total operating realized gain (loss)	$	56		$	49
Total excluded realized gain (loss)		210			162
Total realized gain (loss), pre-tax	$	266		$	211
Components of Excluded Realized Gain (Loss),
After-Tax
Realized gain (loss) related to certain financial assets	$	5		$	25
Realized gain (loss) on the mark-to-market on
certain instruments (2)		217			172
GLB fees ceded to LNBAR and attributed fees,
including benefit ratio unlocking		(108	)		(76	)
Indexed annuity forward-starting option		42			16
Excluded realized gain (loss) including benefit
ratio unlocking, after-tax		156			137
Less: benefit ratio unlocking, after tax		(10	)		10
Total excluded realized gain (loss), after-tax	$	166		$	127

⁽¹⁾DAC refers to the associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds and funds withheld reinsurance assets and liabilities.

⁽²⁾Includes activity with LNBAR. The modified coinsurance investment portfolio includes fixed maturity securities classified as available-for-sale (“AFS”) with changes in fair value recorded in other comprehensive income (loss). Since the corresponding and offsetting changes in fair value of the embedded derivatives related to the modified coinsurance investment portfolio are recorded in realized gain (loss), volatility can occur within net income (loss). See Note 7 in our 2021 Form 10-K for more information regarding modified coinsurance.

Comparison of the Three Months Ended March 31, 2022 to 2021

We had higher realized gains due primarily to the following:

Higher gains on the mark-to-market on certain instruments driven by favorable changes in the fair value of embedded derivatives related to certain modified coinsurance arrangements.

Higher gains related to the indexed annuity forward-starting option driven by an increase in discount rates and a decrease in projected index interest credited as a result of market performance.

The higher realized gains were partially offset by increased losses related to GLB fees ceded to LNBAR and attributed fees driven by increased policy holder guaranteed amounts resulting from market activity.

The above components of excluded realized gain (loss) are described including benefit ratio unlocking, after-tax.

Operating Realized Gain (Loss)

See “Part II – Item 7. Management’s Narrative Analysis of the Results of Operations – Realized Gain (Loss) – Operating Realized Gain (Loss)” in our 2021 Form 10-K for a discussion of our operating realized gain (loss).

Realized Gain (Loss) Related to Certain Financial Assets

For information on realized gain (loss) related to certain financial assets, see Note 11.

Realized Gain (Loss) on the Mark-to-Market on Certain Instruments

See “Part II – Item 7. Management’s Narrative Analysis of the Results of Operations – Realized Gain (Loss) – Realized Gain (Loss) on the Mark-to-Market on Certain Instruments” in our 2021 Form 10-K for a discussion of the mark-to-market on certain instruments. We

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also recognize the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 12 for additional information.

Guaranteed Living Benefit Fees Ceded to LNBAR and Attributed Fees

See “Part II – Item 7. Management’s Narrative Analysis of the Results of Operations – Realized Gain (Loss) – GLB Fees Ceded to LNBAR and Attributed Fees” in our 2021 Form 10-K for a discussion of our guaranteed living benefit (“GLB”) fees ceded to LNBAR and attributed fees.

Indexed Annuity Forward-Starting Option

See “Part II – Item 7. Management’s Narrative Analysis of the Results of Operations – Realized Gain (Loss) – Indexed Annuity Forward-Starting Option” in our 2021 Form 10-K for a discussion of our indexed annuity forward-starting option.

LIQUIDITY AND CAPITAL RESOURCES

Overview

Liquidity refers to our ability to generate adequate amounts of cash from our normal operations to meet cash requirements with a prudent margin of safety. Capital refers to our long-term financial resources to support the operations of our businesses, to fund long-term growth strategies and to support our operations during adverse conditions. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of our businesses, general economic conditions and access to the capital markets and other sources of liquidity and capital as described below. When considering our liquidity, it is important to distinguish between our needs, the needs of Lincoln Life & Annuity Company of New York (“LLANY”) and the needs of the holding company, LNC. As a holding company with no operations of its own, LNC derives its cash primarily from its operating subsidiaries.

Sources and Uses of Liquidity and Capital

Our primary sources of liquidity and capital are insurance premiums and fees, investment income, maturities and sales of investments, issuance of debt and contract holder deposits. We also have access to alternative sources of liquidity as discussed below. Our primary uses are to pay policy claims and benefits, to fund commissions and other general operating expenses, to purchase investments, to fund policy surrenders and withdrawals, to pay dividends to LNC and to repay debt. Our operating activities provided (used) cash of $916 million and $(413) million for the three months ended March 31, 2022 and 2021, respectively. In addition, we received capital contributions from LNC of zero and $65 million during the three months ended March 31, 2022 and 2021, respectively. We paid dividends to LNC of $25 million and $180 million during the three months ended March 31, 2022 and 2021, respectively. We also received dividends from our subsidiaries of $106 million and $87 million during the three months ended March 31, 2022 and 2021, respectively.

Statutory Capital and Surplus

Our regulatory capital levels are also affected by statutory accounting rules, which are subject to change by each applicable insurance regulator. Our term products and UL products containing secondary guarantees require reserves calculated pursuant to XXX and AG38, respectively. We employ strategies to reduce the strain caused by XXX and AG38 by reinsuring the business to reinsurance captives.  Our captive reinsurance subsidiaries and LNBAR provide a mechanism for financing a portion of the excess reserve amounts in a more efficient manner and free up capital we can use for any number of purposes, including paying dividends to LNC.  We use long-dated letters of credit (“LOCs”) and debt financing as well as other financing strategies to finance those reserves.  LOCs and related capital market solutions lower the capital effect of term products and UL products containing secondary guarantees. For information on the LOCs, see the credit facilities table in Note 12 in our 2021 Form 10-K. Our captive reinsurance subsidiaries and LNBAR have also issued long-term notes to finance a portion of the excess reserves. For information on long-term notes issued by our captive reinsurance subsidiaries, see Note 3 in our 2021 Form 10-K.  We have also used the proceeds from certain senior notes issued by LNC to execute long-term structured solutions primarily supporting reinsurance of UL products containing secondary guarantees. 

We continue to analyze the use of our existing captive reinsurance structures, as well as additional third-party reinsurance arrangements, and our current hedging strategies relative to managing the effects of equity markets and interest rates on the statutory reserves, statutory capital and the dividend capacity of LNL and LLANY.

Debt

For information about our short-term and long-term debt and our credit facilities, see Note 12 in our 2021 Form 10-K.

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Alternative Sources of Liquidity

Inter-Company Cash Management Program

In order to manage our capital more efficiently, we participate in an inter-company cash management program where LNL, certain of our subsidiaries and certain affiliates, can lend to or borrow from the holding company to meet short-term borrowing needs. The cash management program is essentially a series of demand loans between LNC and participating subsidiaries that reduces overall borrowing costs by allowing LNC and its subsidiaries to access internal resources instead of incurring third-party transaction costs. As of March 31, 2022, we had a net outstanding receivable (payable) of $2.2 billion from (to) certain subsidiaries and affiliates in the inter-company cash management program. Loans under the cash management program are permitted under applicable insurance laws subject to certain restrictions. LNL, domiciled in Indiana, is subject to a borrowing and lending limit of, currently, 3% of the insurance company’s admitted assets as of its most recent year end. For our New York-domiciled insurance subsidiary, it may borrow from LNC less than 2% of its admitted assets as of its most recent year end but may not lend any amounts to LNC.

Federal Home Loan Bank

LNL is a member of the Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”). Membership allows LNL access to the FHLBI’s financial services, including the ability to obtain loans and to issue funding agreements as an alternative source of liquidity that are collateralized by qualifying mortgage-related assets, agency securities or U.S. Treasury securities. Borrowings under this facility are subject to the FHLBI’s discretion and require the availability of qualifying assets at LNL. As of March 31, 2022, LNL had an estimated maximum borrowing capacity of $7.0 billion under the FHLBI facility and maximum available borrowing based on qualifying assets of $3.9 billion. As of March 31, 2022, LNL had outstanding borrowings of $3.9 billion under this facility reported within payables for collateral on investments on the Consolidated Balance Sheets. LLANY is a member of the Federal Home Loan Bank of New York (“FHLBNY”) with an estimated maximum borrowing capacity of $750 million. Borrowings under this facility are subject to the FHLBNY’s discretion and require the availability of qualifying assets at LLANY. As of March 31, 2022, LLANY had no outstanding borrowings under this facility. For additional information, see “Payables for Collateral on Investments” in Note 4.

Securities Lending Programs and Repurchase Agreements

LNL and LLANY, by virtue of their general account fixed-income investment holdings, can access liquidity through securities lending programs and repurchase agreements. As of March 31, 2022, we had securities pledged under securities lending agreements with a carrying value of $258 million. In addition, LNL, LLANY and LNBAR had access to $1.75 billion through committed repurchase agreements, of which $25 million was utilized as of March 31, 2022. The cash received in our securities lending programs and repurchase agreements is typically invested in cash and invested cash or fixed maturity AFS securities. For additional information, see “Payables for Collateral on Investments” in Note 4.

Collateral on Derivative Contracts

Our cash flows associated with collateral received from counterparties (when we are in a net collateral payable position) and posted with counterparties (when we are in a net collateral receivable position) change as the market value of the underlying derivative contract changes. The net collateral position depends on changes in interest rates and equity markets related to the amount of the exposures hedged. As of March 31, 2022, we were in a net collateral payable position of $4.7 billion compared to $5.5 billion as of December 31, 2021. In the event of adverse changes in fair value of our derivative instruments, we may need to post collateral with a counterparty. If we do not have sufficient high quality securities or cash and invested cash to provide as collateral, we have committed liquidity sources through facilities that can provide up to $1.25 billion of additional liquidity to help meet collateral needs. Access to such facilities is contingent upon interest rates having achieved certain threshold levels. In addition to these facilities, we have the FHLB facilities and the repurchase agreements discussed above as well as the five-year revolving credit facility discussed in Note 12 in our 2021 Form 10-K to leverage that would be eligible for collateral posting. For additional information, see “Credit Risk” in Note 5.

Ratings

Financial Strength Ratings

See “Part I – Item 1. Business – Financial Strength Ratings” in our 2021 Form 10-K for information on our financial strength ratings.

If our current financial strength ratings were downgraded in the future, terms in our derivative agreements may be triggered, which could negatively affect overall liquidity. For the majority of our derivative counterparties, there is a termination event if our financial strength ratings drop below BBB-/Baa3 (S&P/Moody’s Investors Service). In addition, contractual selling agreements with intermediaries could be negatively affected, which could have an adverse effect on overall sales of annuities, life insurance and investment products.

See “Part I – Item 1A. Risk Factors – Covenants and Ratings – A downgrade in our financial strength ratings could limit our ability to market products, increase the number or value of policies being surrendered and/or hurt our relationships with creditors” in our 2021 Form 10-K for more information.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

We analyze and manage the risks arising from market exposures of financial instruments, as well as other risks, in an integrated asset-liability management process that considers diversification. We have exposures to several market risks including interest rate risk, equity market risk, credit risk and, to a lesser extent, foreign currency exchange risk. For information on these market risks, see “Part II – Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our 2021 Form 10-K. See also “Item 2. Management’s Narrative Analysis of the Results of Operations – Introduction” above.

Item 4. Controls and Procedures

Conclusions Regarding Disclosure Controls and Procedures

We maintain disclosure controls and procedures, which are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including our President (the principal executive officer) and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period required by this report, we, under the supervision and with the participation of our President and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based on that evaluation, our President and Chief Financial Officer have concluded that our disclosure controls and procedures are effective in timely alerting them to material information relating to us and our consolidated subsidiaries required to be disclosed in our periodic reports under the Exchange Act.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2022, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

A control system, no matter how well designed and operated, can provide only reasonable assurance that the control system’s objectives will be met. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Reference is made to Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York, previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021. On March 31, 2022, the court issued an order granting plaintiff’s motion for class certification and certified a class of all current or former owners of six universal life insurance products issued by LLANY that were assessed a cost of insurance charge any time on or after June 27, 2013.

See Note 9 in “Part I – Item 1. Financial Statements” for further discussion regarding this matter and other contingencies.

Item 1A. Risk Factors

In addition to the factors set forth in “Part I – Item 2. Management’s Narrative Analysis of the Results of Operations – Forward-Looking Statements – Cautionary Language,” you should carefully consider the risks described under “Part I – Item 1A. Risk Factors” in our Form 10-K for the year ended December 31, 2021. Such risks and uncertainties are not the only ones facing our Company. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations. If any of these risks actually occur, our business, financial condition and results of operations could be materially affected. In that case, the value of our securities could decline substantially.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 6. Exhibits

The Exhibits included in this report are listed in the Exhibit Index beginning on page 61, which is incorporated herein by reference.

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THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

Exhibit Index for the Report on Form 10-Q

For the Quarter Ended March 31, 2022

31.1	Certification of the President pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of the President pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Dated: May 9, 2022	By:	/s/ Adam Cohen
		Adam Cohen Senior Vice President and Chief Accounting Officer (Authorized Signatory and Principal Accounting Officer)

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EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302 of the

Sarbanes-Oxley Act of 2002

I, Dennis R. Glass, President, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Lincoln National Life Insurance Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:  May9, 2022	/s/ Dennis R. Glass
	Name:  Dennis R. Glass
	Title:  President

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302 of the

Sarbanes-Oxley Act of 2002

I, Randal J. Freitag, Executive Vice President and Chief Financial Officer, certify that:

1.I have reviewed this quarterly report on Form 10-Q of The Lincoln National Life Insurance Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:  May9, 2022	/s/ Randal J. Freitag
	Name:  Randal J. Freitag
	Title:  Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906

of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, the undersigned officer of The Lincoln National Life Insurance Company (the “Company”), hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarter ended March  31, 2022,  (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  May9, 2022	/s/ Dennis R. Glass
	Name:  Dennis R. Glass
	Title:  President

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required under Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906

of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, the undersigned officer of The Lincoln National Life Insurance Company (the “Company”), hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarter ended March  31, 2022, (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  May9, 2022	/s/ Randal J. Freitag
	Name:  Randal J. Freitag
	Title:  Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required under Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 09, 2022
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	000-55871
Entity Registrant Name	THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-0472300
Entity Address, Address Line One	1301 South Harrison Street
Entity Address, City or Town	Fort Wayne
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46802
City Area Code	260
Local Phone Number	455-2000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,000,000
Amendment Flag	false
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Entity Central Index Key	0000726865

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Investments:
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $106,974; 2021 - $104,526; allowance for credit losses: 2022 - $20; 2021 - $19)	$ 109,921	$ 117,511
Trading securities	4,334	4,427
Equity securities	340	314
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $537; 2021 - $739)	17,795	17,893
Policy loans	2,325	2,349
Derivative investments	4,840	5,437
Other investments	3,527	3,449
Total investments	143,082	151,380
Cash and invested cash	1,722	2,331
Deferred acquisition costs and value of business acquired	8,688	5,985
Premiums and fees receivable	671	580
Accrued investment income	1,209	1,157
Reinsurance recoverables, net of allowance for credit losses	22,870	22,755
Funds withheld reinsurance assets	510	517
Goodwill	1,778	1,778
Other assets	21,309	22,949
Separate account assets	168,879	182,583
Total assets	370,718	392,015
Liabilities
Future contract benefits	39,186	40,416
Other contract holder funds	112,387	111,174
Short-term debt	737	1,084
Long-term debt	2,311	2,334
Reinsurance-related embedded derivatives	31	578
Funds withheld reinsurance liabilities	6,155	7,089
Payables for collateral on investments	8,905	8,936
Other liabilities	14,298	15,441
Separate account liabilities	168,879	182,583
Total liabilities	352,889	369,635
Contingencies and Commitments (See Note 9)
Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding	11,948	11,950
Retained earnings	4,330	3,886
Accumulated other comprehensive income (loss)	1,551	6,544
Total stockholder’s equity	17,829	22,380
Total liabilities and stockholder’s equity	$ 370,718	$ 392,015

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Available-for-sale securities, at fair value:
Fixed maturity available-for-sale securities (amortized cost)	$ 106,974	$ 104,526
Fixed maturity, ACL	20	19
Mortgage loans on real estate, fair value	$ 537	$ 739
Stockholder’s Equity
Common stock - shares authorized (in shares)	10,000,000	10,000,000
Common stock - shares issued (in shares)	10,000,000	10,000,000
Common stock - shares outstanding (in shares)	10,000,000	10,000,000

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Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Insurance premiums	$ 1,406	$ 1,330
Fee income	1,502	1,524
Net investment income	1,353	1,447
Realized gain (loss)	266	211
Amortization of deferred gain (loss) on business sold through reinsurance	18	7
Other revenues	151	170
Total revenues	4,696	4,689
Expenses
Interest credited	691	731
Benefits	2,199	2,182
Commissions and other expenses	1,192	1,171
Interest and debt expense	29	29
Spark program expense	31	13
Total expenses	4,142	4,126
Income (loss) before taxes	554	563
Federal income tax expense (benefit)	85	99
Net income (loss)	469	464
Other comprehensive income (loss), net of tax	(4,993)	(3,181)
Comprehensive income (loss)	$ (4,524)	$ (2,717)

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Consolidated Statements Of Stockholder's Equity - USD ($) $ in Millions	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2020	$ 11,853	$ 4,167	$ 9,021
Capital contribution from Lincoln National Corporation	65
Stock compensation/issued for benefit plans	1
Net income (loss)		464		$ 464
Dividends paid to Lincoln National Corporation		(180)
Other comprehensive income (loss), net of tax			(3,181)	(3,181)
Balance at Mar. 31, 2021	11,919	4,451	5,840	22,210
Balance at Dec. 31, 2021	11,950	3,886	6,544	22,380
Stock compensation/issued for benefit plans	(2)
Net income (loss)		469		469
Dividends paid to Lincoln National Corporation		(25)
Other comprehensive income (loss), net of tax			(4,993)	(4,993)
Balance at Mar. 31, 2022	$ 11,948	$ 4,330	$ 1,551	$ 17,829

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Consolidated Statements Of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows from Operating Activities
Net income (loss)	$ 469	$ 464
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Realized (gain) loss	(266)	(211)
Trading securities purchases, sales and maturities, net	(189)	98
Amortization of deferred gain (loss) on business sold through reinsurance	(18)	(7)
Change in:
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization	24	50
Premiums and fees receivable	(91)	(169)
Accrued investment income	(44)	(51)
Insurance liabilities and reinsurance-related balances	303	(265)
Accrued expenses	(229)	(35)
Federal income tax accruals	85	99
Cash management agreement	872	(182)
Other		(204)
Net cash provided by (used in) operating activities	916	(413)
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities	(3,910)	(3,783)
Sales of available-for-sale securities and equity securities	105	592
Maturities of available-for-sale securities	1,566	1,862
Purchases of alternative investments	(141)	(163)
Sales and repayments of alternative investments	130	54
Issuance of mortgage loans on real estate	(540)	(869)
Repayment and maturities of mortgage loans on real estate	716	398
Repayment (issuance) of policy loans, net	25	(76)
Net change in collateral on investments, derivatives and related settlements	(242)	987
Other	(79)	(30)
Net cash provided by (used in) investing activities	(2,370)	(1,028)
Cash Flows from Financing Activities
Capital contribution from Lincoln National Corporation		65
Payment of long-term debt, including current maturities		(60)
Issuance (payment) of short-term debt	(347)	71
Payment related to sale-leaseback transactions	(4)
Deposits of fixed account values, including the fixed portion of variable	3,043	3,132
Withdrawals of fixed account values, including the fixed portion of variable	(1,819)	(1,768)
Transfers to and from separate accounts, net	14	(122)
Common stock issued for benefit plans	(17)	(10)
Dividends paid to Lincoln National Corporation	(25)	(180)
Other		(63)
Net cash provided by (used in) financing activities	845	1,065
Net increase (decrease) in cash, invested cash and restricted cash	(609)	(376)
Cash, invested cash and restricted cash as of beginning-of-year	2,331	1,462
Cash, invested cash and restricted cash as of end-of-period	$ 1,722	$ 1,086

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Nature of Operations and Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Nature of Operations and Basis of Presentation [Abstract]
Nature of Operations and Basis of Presentation	1. Nature of Operations and Basis of Presentation Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100% of the outstanding common stock of Lincoln Life & Annuity Company of New York (“LLANY”). We also own several non-insurance companies, including Lincoln Financial Distributors, our wholesale distributor, and Lincoln Financial Advisors Corporation, part of LNC’s retail distributor, Lincoln Financial Network. Through our business segments, we sell a wide range of wealth protection, accumulation, retirement income and group protection products and solutions. These products primarily include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL and VUL, indexed universal life insurance (“IUL”), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 13 for additional information. Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”), should be read in connection with the reading of these interim unaudited consolidated financial statements. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2021 Form 10-K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022, especially when considering the risks and uncertainties associated with the COVID-19 pandemic and the future impacts of the pandemic on our business, results of operations and financial condition. All material inter-company accounts and transactions have been eliminated in consolidation.

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New Accounting Standards

3 Months Ended

Mar. 31, 2022

New Accounting Standards [Abstract]

New Accounting Standards

‎

2.  New Accounting Standards

The following table provides a description of our adoption of new Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) and the impact of the adoption on our consolidated financial statements. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount.

Standard	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
ASU 2020-04, Reference Rate Reform (Topic 848) and related amendments	The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions impacted by reference rate reform. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. Additionally, changes to the critical terms of a hedging relationship affected by reference rate reform will not require entities to de-designate the relationship if certain requirements are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, with certain exceptions. The amendments are effective for contract modifications made between March 12, 2020, and December 31, 2022.	March 12, 2020 through December 31, 2022	This standard may be elected and applied prospectively as reference rate reform unfolds. We have elected practical expedients to maintain hedge accounting for certain derivatives. We will continue to evaluate our options under this guidance as our reference rate reform adoption process continues. This ASU has not had a material impact to our consolidated financial condition and results of operations, but we will continue to evaluate those impacts as our transition progresses.

‎

Standard	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments	These amendments make changes to the accounting and reporting for long-duration contracts issued by an insurance entity that will significantly change how insurers account for long-duration contracts, including how they measure, recognize and make disclosures about insurance liabilities and deferred acquisition costs. Under this ASU, insurers will be required to review cash flow assumptions at least annually and update them if necessary. They also will have to make quarterly updates to the discount rate assumptions they use to measure the liability for future policyholder benefits. The ASU creates a new category of market risk benefits (i.e., features that protect the contract holder from capital market risk and expose the insurer to that risk) that insurers will have to measure at fair value. The ASU provides various transition methods by topic that entities may elect upon adoption. The ASU is effective January 1, 2023, and early adoption is permitted.	January 1, 2023	We will adopt this ASU effective January 1, 2023, with a transition date of January 1, 2021, using a modified retrospective approach, except for market risk benefits in which we will apply a full retrospective transition approach. ‎ ‎We continue to make progress in our implementation process that includes, but is not limited to, making significant accounting policy decisions, employing appropriate internal controls, building and updating actuarial models and systems, revising reporting processes and developing informative qualitative and quantitative disclosures. In the first quarter of 2022, we continued the process of calculating our transition adjustments and applicable prior period restatements. ‎ ‎We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations and will be able to better assess the effects as we progress with our implementation efforts. For example, upon adoption, there will be adjustments to retained earnings resulting from the remeasurement of certain current benefits (e.g., guaranteed minimum death benefits on variable annuities) to fair valued market risk benefits, excluding the portion attributable to non-performance risk, which will result in an impact to AOCI. There will be additional impacts to AOCI resulting from the remeasurement of in-force future contract benefits using current upper-medium grade fixed income instrument yields as well as the elimination of shadow accounting for DAC and DAC-like intangibles. While the impact may be material, the magnitude is currently being assessed.

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Variable Interest Entities

3 Months Ended

Mar. 31, 2022

Variable Interest Entities [Abstract]

Variable Interest Entities

‎

3. Variable Interest Entities

Unconsolidated Variable Interest Entities

Structured Securities

Through our investment activities, we make passive investments in structured securities issued by variable interest entities (“VIEs”) for which we are not the manager. These structured securities include our asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”). We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on our Consolidated Balance Sheets. For information about these structured securities, see Note 4.

Limited Partnerships and Limited Liability Companies

We invest in certain limited partnerships (“LPs”) and limited liability companies (“LLCs”) that we have concluded are VIEs. Our exposure to loss is limited to the capital we invest in the LPs and LLCs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on our Consolidated Balance Sheets and were $2.9 billion and $2.8 billion as of March 31, 2022, and December 31, 2021, respectively.

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Investments

3 Months Ended

Mar. 31, 2022

Investments [Abstract]

Investments

4. Investments

Fixed Maturity AFS Securities

The amortized cost, gross unrealized gains, losses, allowance for credit losses and fair value of fixed maturity available-for-sale (“AFS”) securities (in millions) were as follows:

	As of March 31, 2022
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	87,914	$	4,778	$	2,400	$	16	$	90,276
U.S. government bonds		364		29		5		-		388
State and municipal bonds		5,171		758		145		-		5,784
Foreign government bonds		349		42		17		-		374
RMBS		2,092		85		40		2		2,135
CMBS		1,647		8		71		-		1,584
ABS		9,040		73		189		1		8,923
Hybrid and redeemable preferred securities		397		82		21		1		457
Total fixed maturity AFS securities	$	106,974	$	5,855	$	2,888	$	20	$	109,921

	As of December 31, 2021
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	86,197	$	11,569	$	326	$	17	$	97,423
U.S. government bonds		348		54		2		-		400
State and municipal bonds		5,113		1,275		11		-		6,377
Foreign government bonds		365		63		5		-		423
RMBS		2,132		178		4		1		2,305
CMBS		1,542		62		14		-		1,590
ABS		8,433		127		54		-		8,506
Hybrid and redeemable preferred securities		396		103		11		1		487
Total fixed maturity AFS securities	$	104,526	$	13,431	$	427	$	19	$	117,511

The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of March 31, 2022, were as follows:

	Amortized		Fair
	Cost		Value
Due in one year or less	$	2,877	$	2,877
Due after one year through five years		16,206		16,183
Due after five years through ten years		19,655		19,532
Due after ten years		55,457		58,687
Subtotal		94,195		97,279
Structured securities (RMBS, CMBS, ABS)		12,779		12,642
Total fixed maturity AFS securities	$	106,974	$	109,921

Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations.

The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

	As of March 31, 2022
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	29,692		$	1,890	$	3,208		$	510	$	32,900		$	2,400
U.S. government bonds		36			1		24			4		60			5
State and municipal bonds		1,231			134		64			11		1,295			145
Foreign government bonds		69			7		82			10		151			17
RMBS		881			37		31			3		912			40
CMBS		999			44		215			27		1,214			71
ABS		6,935			169		475			20		7,410			189
Hybrid and redeemable
preferred securities		95			5		70			16		165			21
Total fixed maturity AFS securities	$	39,938		$	2,287	$	4,169		$	601	$	44,107		$	2,888
Total number of fixed maturity AFS securities in an unrealized loss position															5,054

	As of December 31, 2021
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
				Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	10,611		$	230	$	1,386		$	96	$	11,997		$	326
U.S. government bonds		6			-		26			2		32			2
State and municipal bonds		498			10		19			1		517			11
Foreign government bonds		61			3		56			2		117			5
RMBS		261			3		20			1		281			4
CMBS		440			12		33			2		473			14
ABS		4,646			49		165			5		4,811			54
Hybrid and redeemable
preferred securities		47			1		76			10		123			11
Total fixed maturity AFS securities	$	16,570		$	308	$	1,781		$	119	$	18,351		$	427
Total number of fixed maturity AFS securities in an unrealized loss position															2,577

⁽¹⁾As of March 31, 2022, and December 31, 2021, we recognized $7 million and $8 million of gross unrealized losses, respectively, in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded.

The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:

	As of March 31, 2022
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities (1)
Less than six months	$	529	$	146			82
Twelve months or greater		38		6			21
Total	$	567	$	152			103

	As of December 31, 2021
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities (1)
Less than six months	$	12	$	3			6
Twelve months or greater		58		8			24
Total	$	70	$	11			30

⁽¹⁾We may reflect a security in more than one aging category based on various purchase dates.

Our gross unrealized losses on fixed maturity AFS securities increased by $2.5 billion for the three months ended March 31, 2022. As discussed further below, we believe the unrealized loss position as of March 31, 2022, did not require an impairment recognized in earnings as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of March 31, 2022, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities.

As of March 31, 2022, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government bond securities were attributable primarily to widening credit spreads and rising interest rates since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost of each impaired security.

Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by S&P Global Ratings (“S&P”) or Baa3 or higher by Moody’s Investors Service (“Moody’s”)) are generally considered by the rating agencies and market participants to be low credit risk. As of March 31, 2022, and December 31, 2021, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of March 31, 2022, and December 31, 2021, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $3.5 billion and a fair value of $3.5 billion and $3.7 billion, respectively. Based upon the analysis discussed above, we believe that as of March 31, 2022, and December 31, 2021, we would have recovered the amortized cost of each corporate bond.

As of March 31, 2022, the unrealized losses associated with our mortgage-backed securities and ABS were attributable primarily to widening credit spreads and rising interest rates since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security.

As of March 31, 2022, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security.

Credit Loss Impairment on Fixed Maturity AFS Securities

We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows:

	For the Three
	Months Ended
	March 31, 2022
	Corporate
	Bonds			RMBS		Other		Total
Balance as of beginning-of-year	$	17		$	1	$	1	$	19
Additions for securities for which credit losses were not
previously recognized		-			1		1		2
Additions from purchases of PCD debt securities (1)		-			-		-		-
Reductions for securities disposed		(1	)		-		-		(1	)
Balance as of end-of-period (2)	$	16		$	2	$	2	$	20

	For the Three
	Months Ended
	March 31, 2021
	Corporate
	Bonds		RMBS		Other		Total
Balance as of beginning-of-year	$	12	$	1	$	-	$	13
Additions from purchases of PCD debt securities (1)		-		-		-		-
Additions (reductions) for securities for which credit losses
were previously recognized		1		-		-		1
Balance as of end-of-period (2)	$	13	$	1	$	-	$	14

⁽¹⁾Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities.

⁽²⁾As of March 31, 2022 and 2021, accrued investment income on fixed maturity AFS securities totaled $1.0 billion, and was excluded from the estimate of credit losses.

Mortgage Loans on Real Estate

The following provides the current and past due composition of our mortgage loans on real estate (in millions):

	As of March 31, 2022									As of December 31, 2021
	Commercial			Residential			Total			Commercial			Residential			Total
Current	$	16,677		$	1,015		$	17,692		$	17,068		$	837		$	17,905
30 to 59 days past due		90			23			113			15			21			36
60 to 89 days past due		16			9			25			-			5			5
90 or more days past due		-			26			26			-			29			29
Allowance for credit losses		(59	)		(18	)		(77	)		(78	)		(17	)		(95	)
Unamortized premium (discount)		(10	)		32			22			(11	)		27			16
Mark-to-market gains (losses) (1)		(6	)		-			(6	)		(3	)		-			(3	)
Total carrying value	$	16,708		$	1,087		$	17,795		$	16,991		$	902		$	17,893

⁽¹⁾Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 12 for additional information.

Our commercial mortgage loan portfolio has the largest concentrations in California, which accounted for 26% of commercial mortgage loans on real estate as of March 31, 2022, and December 31, 2021, and Texas, which accounted for 9% of commercial mortgage loans on real estate as of March 31, 2022, and December 31, 2021.

Our residential mortgage loan portfolio has the largest concentrations in California, which accounted for 21% and 22% of residential mortgage loans on real estate as of March 31, 2022, and December 31, 2021, respectively, and Florida, which accounted for 12% and 14% of residential mortgage loans on real estate as of March 31, 2022, and December 31, 2021, respectively.

As of March 31, 2022, and December 31, 2021, we had 63 and 65 residential mortgage loans, respectively, that were either delinquent or in foreclosure. As of March 31, 2022, and December 31, 2021, we had 38 and 34 residential mortgage loans in foreclosure, respectively, with an aggregate carrying value of $17 million and $15 million, respectively.

As of March 31, 2022, and December 31, 2021, there were four specifically identified impaired commercial mortgage loans with an aggregate carrying value of $1 million.

As of March 31, 2022, and December 31, 2021, there were 46 and 50 specifically identified impaired residential mortgage loans, respectively, with an aggregate carrying value of $18 million and $22 million, respectively.

Additional information related to impaired mortgage loans on real estate (in millions) was as follows:

	For the Three
	Months Ended
	March 31,
	2022		2021
Average aggregate carrying value for impaired mortgage loans on real estate	$	21	$	36
Interest income recognized on impaired mortgage loans on real estate		-		-
Interest income collected on impaired mortgage loans on real estate		-		-

The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows:

	As of March 31, 2022				As of December 31, 2021
	Nonaccrual				Nonaccrual
	with no				with no
	Allowance				Allowance
	for Credit				for Credit
	Losses		Nonaccrual		Losses		Nonaccrual
Commercial mortgage loans on real estate	$	-	$	-	$	-	$	-
Residential mortgage loans on real estate		-		26		-		30
Total	$	-	$	26	$	-	$	30

We use loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows:

	As of March 31, 2022
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	Greater		Coverage
	than 65%		Ratio	to 75%		Ratio	than 75%		Ratio	Total
Origination Year
2022	$	329	2.67	$	25	1.57	$	-	-	$	354
2021		2,356	3.05		87	1.50		-	-		2,443
2020		1,346	2.97		20	1.55		-	-		1,366
2019		2,657	2.14		178	1.56		-	-		2,835
2018		2,235	2.14		151	1.56		15	1.02		2,401
2017 and prior		7,024	2.38		302	1.77		48	0.99		7,374
Total	$	15,947		$	763		$	63		$	16,773

	As of December 31, 2021
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	Greater		Coverage
	than 65%		Ratio	to 75%		Ratio	than 75%		Ratio	Total
Origination Year
2021	$	2,361	3.05	$	136	1.74	$	-	-	$	2,497
2020		1,349	3.02		144	2.06		-	-		1,493
2019		2,875	2.14		187	1.42		-	-		3,062
2018		2,272	2.13		168	1.59		15	1.02		2,455
2017		1,648	2.33		149	1.74		27	0.83		1,824
2016 and prior		5,543	2.41		171	1.76		27	1.08		5,741
Total	$	16,048		$	955		$	69		$	17,072

We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate. The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows:

	As of March 31, 2022
	Performing		Nonperforming			Total
Origination Year
2022	$	134		$	-	$	134
2021		574			3		577
2020		113			3		116
2019		170			17		187
2018		88			3		91
2017 and prior		-			-		-
Total	$	1,079		$	26	$	1,105

	As of December 31, 2021
	Performing		Nonperforming			Total
Origination Year
2021	$	467		$	2	$	469
2020		129			2		131
2019		189			21		210
2018		104			5		109
2017		-			-		-
2016 and prior		-			-		-
Total	$	889		$	30	$	919

Credit Losses on Mortgage Loans on Real Estate

In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value.

Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows:

	For the Three
	Months Ended
	March 31, 2022
	Commercial			Residential		Total
Balance as of beginning-of-year	$	78		$	17	$	95
Additions (reductions) from provision for credit loss expense (1)		(19	)		1		(18	)
Additions from purchases of PCD mortgage loans on real estate		-			-		-
Balance as of end-of-period (2)	$	59		$	18	$	77

	For the Three
	Months Ended
	March 31, 2021
	Commercial			Residential			Total
Balance as of beginning-of-year	$	186		$	17		$	203
Additions (reductions) from provision for credit loss expense (1)		(15	)		(5	)		(20	)
Additions from purchases of PCD mortgage loans on real estate		-			-			-
Balance as of end-of-period (2)	$	171		$	12		$	183

⁽¹⁾Due to improving economic projections, the provision for credit loss expense decreased by $18 million and $20 million for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022, we recognized no credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate. For the three months ended March 31, 2021, we recognized $4 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate.

⁽²⁾Accrued investment income on mortgage loans on real estate totaled $49 million and $50 million as of March 31, 2022 and 2021, respectively, and was excluded from the estimate of credit losses.

Alternative Investments 

As of March 31, 2022, and December 31, 2021, alternative investments included investments in 309 and 305 different partnerships, respectively, and represented approximately 2% of total investments.

Impairments on Fixed Maturity AFS Securities

Details underlying credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	1		$	(2	)
RMBS		(1	)		-
ABS		(1	)		-
Gross credit loss benefit (expense)		(1	)		(2	)
Associated amortization of DAC, VOBA, DSI and DFEL (1)		-			-
Net credit loss benefit (expense)	$	(1	)	$	(2	)

⁽¹⁾Deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end loads (“DFEL”).

Payables for Collateral on Investments

The carrying value of the payables for collateral on investments included on our Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:

	As of March 31, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable for derivative investments (1)	$	4,767	$	4,767	$	5,565	$	5,565
Securities pledged under securities lending agreements (2)		258		250		241		235
Investments pledged for Federal Home Loan Bank of
Indianapolis (3)		3,880		5,924		3,130		4,876
Total payables for collateral on investments	$	8,905	$	10,941	$	8,936	$	10,676

⁽¹⁾We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. This also includes interest payable on collateral. See Note 5 for additional information.

⁽²⁾Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

⁽³⁾Our pledged investments for Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

We have repurchase agreements through which we can obtain liquidity by pledging securities. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. As of March 31, 2022, and December 31, 2021, we were not participating in any open repurchase agreements.

Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:

	For the Three
	Months Ended
	March 31,
	2022			2021
Collateral payable for derivative investments	$	(798	)	$	248
Securities pledged under securities lending agreements		17			30
Investments pledged for FHLBI		750			1,100
Total increase (decrease) in payables for collateral on investments	$	(31	)	$	1,378

We have elected not to offset our securities lending transactions in our consolidated financial statements. The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows:

	As of March 31, 2022
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	245	$	-	$	-	$	-	$	245
Foreign government bonds		11		-		-		-		11
Equity securities		2		-		-		-		2
Total gross secured borrowings	$	258	$	-	$	-	$	-	$	258

	As of December 31, 2021
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	239	$	-	$	-	$	-	$	239
Foreign government bonds		1		-		-		-		1
Equity securities		1		-		-		-		1
Total gross secured borrowings	$	241	$	-	$	-	$	-	$	241

We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the consolidated financial statements. In addition, we receive securities in connection with securities borrowing agreements that we are permitted to sell or re-pledge. As of March 31, 2022, the fair value of all collateral received that we are permitted to sell or re-pledge was $22 million, and we had re-pledged all of this collateral to cover initial margin and over-the-counter collateral requirements on certain derivative investments.

Investment Commitments

As of March 31, 2022, our investment commitments were $3.1 billion, which included $1.5 billion of LPs, $842 million of private placement securities and $740 million of mortgage loans on real estate.

Concentrations of Financial Instruments

As of March 31, 2022, and December 31, 2021, our most significant investments in one issuer were our investments in securities issued by White Chapel LLC with a fair value of $1.0 billion and $995 million, respectively, or 1% of total investments, and our investments in securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $817 million and $910 million, respectively, or 1% of total investments. These concentrations include fixed maturity AFS, trading and equity securities.

As of March 31, 2022, and December 31, 2021, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $20.8 billion and $21.7 billion, respectively, or 15% and 14%, respectively, of total investments, and our investments in securities in the consumer non-cyclical industry with a fair value of $16.8 billion and $18.6 billion, respectively, or 12% of total investments. These concentrations include fixed maturity AFS, trading and equity securities.

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Derivative Instruments

3 Months Ended

Mar. 31, 2022

Derivative Instruments [Abstract]

Derivative Instruments

5. Derivative Instruments

We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities.

Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies.

See Note 12 for additional disclosures related to the fair value of our derivative instruments.

Interest Rate Contracts

We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include:

Forward-Starting Interest Rate Swaps

We use forward-starting interest rate swaps designated and qualifying as cash flow hedges to hedge our exposure to interest rate fluctuations related to the forecasted purchases of certain assets.

We also use forward-starting interest rate swaps to hedge the interest rate exposure within our life products related to the forecasted purchases of certain assets.

Interest Rate Cap Corridors

We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain life insurance products and annuity contracts. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor.

Interest Rate Futures

We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price.

Interest Rate Swap Agreements

We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products.

We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond.

Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed maturity securities due to interest rate risks.

Reverse Treasury Locks

We use reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities.

Foreign Currency Contracts

We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include:

Currency Futures

We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate.

Foreign Currency Swaps

We use foreign currency swaps to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange one currency for another at specified dates in the future at a specified exchange rate.

We also use foreign currency swaps designated and qualifying as cash flow hedges to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies.

Foreign Currency Forwards

We use foreign currency forwards to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency forward is a contractual agreement to exchange one currency for another at specified dates in the future at a specified current exchange rate.

Equity Market Contracts

We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include:

Call Options Based on the S&P 500^® Index and Other Indices

We use call options to hedge the liability exposure on certain options in variable annuity products, indexed variable annuity products, and fixed indexed annuity products.

Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500 Index or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period.

Consumer Price Index Swaps

We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception.

Equity Futures

We use equity futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price.

Put Options

We use put options to hedge the liability exposure on certain options in variable annuity products. Put options are contracts that require counterparties to pay us at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount.

Total Return Swaps

We use total return swaps to hedge the liability exposure on certain options in variable annuity products and indexed variable annuity products.

In addition, we use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest.

Credit Contracts

We use derivative instruments as part of our credit risk management strategy that are economic hedges and include:

Credit Default Swaps – Buying Protection

We use credit default swaps (“CDSs”) to hedge the liability exposure on certain options in variable annuity products.

We buy CDSs to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring.

CDSs – Selling Protection

We use CDSs to hedge the liability exposure on certain options in variable annuity products.

We sell CDSs to offer credit protection to contract holders and investors. The CDSs hedge the contract holders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring.

Other Derivatives

Lapse Protection Rider Ceded Derivative

We also have an inter-company agreement through which Lincoln National Reinsurance Company (Barbados) Limited (“LNBAR”), an affiliated insurer, assumes the risk under certain UL contracts for lapse protection riders (“LPR”). If the contract holder’s account value is insufficient to pay the cost of insurance charges required to keep the policy in force, and the contract holder has made the required deposits, we will be reimbursed for those charges.

Embedded Derivatives

We have embedded derivatives that include:

GLB Reserves Embedded Derivatives

Certain features of these guarantees have elements of both insurance benefits accounted for under the Financial Services – Insurance – Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB Accounting Standards Codification (“ASC”) (“benefit reserves”) and embedded derivatives accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative reserves”). We calculate the value of the benefit reserves and the embedded derivative reserves based on the specific characteristics of each guaranteed living benefit (“GLB”) feature.

We use a hedging strategy designed to mitigate the risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with GLBs offered in our variable annuity products, including products with guaranteed withdrawal benefit and guaranteed income benefit features. These GLB features are reinsured among various reinsurance counterparties on a coinsurance basis. We cede a portion of the GLB features to LNBAR, a wholly-owned subsidiary of LNC, on a funds withheld coinsurance basis. The funds withheld arrangement includes a dynamic hedging strategy designed to mitigate selected risks. Changes in the value of the hedge contracts due to changes in equity markets, interest rates and implied volatilities hedge the income statement effect of changes in embedded derivative GLB reserves assumed by LNBAR caused by those same factors. We rebalance our hedge positions based upon changes in these factors as needed. While we actively manage our hedge positions, these hedge positions may not be totally effective in offsetting changes in the embedded derivative reserve assumed by LNBAR due to, among other things, differences in timing between when a market exposure changes and corresponding changes to the hedge positions, extreme swings in the equity markets and interest rates, market volatility, contract holder behavior, divergence between the performance of the underlying funds and the hedging indices, divergence between the actual and expected performance of the hedge instruments and our ability to purchase hedging instruments at prices consistent with our desired risk and return trade-off. However, the hedging results do not impact LNL due to a funds withheld agreement with LNBAR, which causes the financial impact of the derivatives, as well as the cash flow activity, to be reflected on LNBAR.

Indexed Annuity and IUL Contracts Embedded Derivatives

Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500^® Index or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the

indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period.

Reinsurance-Related Embedded Derivatives

We have certain modified coinsurance and coinsurance with funds withheld reinsurance agreements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements.

We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows:

	As of March 31, 2022						As of December 31, 2021
	Notional		Fair Value				Notional		Fair Value
	Amounts		Asset		Liability		Amounts		Asset		Liability
Qualifying Hedges
Cash flow hedges:
Interest rate contracts (1)	$	1,924	$	15	$	68	$	2,009	$	98	$	11
Foreign currency contracts (1)		4,180		313		40		3,979		283		51
Total cash flow hedges		6,104		328		108		5,988		381		62
Fair value hedges:
Interest rate contracts (1)		526		-		148		526		-		210
Non-Qualifying Hedges
Interest rate contracts (1)		88,588		631		281		82,786		897		176
Foreign currency contracts (1)		383		9		1		487		7		2
Equity market contracts (1)		90,198		5,530		1,301		92,278		6,461		2,108
Credit contracts (1)		56		-		-		49		-		-
LPR ceded derivative (2)		-		266		-		-		318		-
Embedded derivatives:
GLB direct (3)		-		1,880		-		-		1,963		-
GLB ceded (3)		-		42		1,917		-		56		2,015
Reinsurance-related (4)		-		-		31		-		-		578
Indexed annuity and IUL contracts (3) (5)		-		493		5,574		-		528		6,131
Total derivative instruments	$	185,855	$	9,179	$	9,361	$	182,114	$	10,611	$	11,282

⁽¹⁾Reported in derivative investments and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Reported in other assets on our Consolidated Balance Sheets.

⁽³⁾Reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽⁴⁾Reported in reinsurance-related embedded derivatives on our Consolidated Balance Sheets.

⁽⁵⁾Reported in future contract benefits on our Consolidated Balance Sheets.

The maturity of the notional amounts of derivative instruments (in millions) was as follows:

	Remaining Life as of March 31, 2022
	Less Than		1 – 5		6 – 10		11 – 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts (1)	$	25,425	$	29,454	$	19,844	$	16,315	$	-	$	91,038
Foreign currency contracts (2)		294		556		1,627		1,992		94		4,563
Equity market contracts		53,523		19,963		7,778		11		8,923		90,198
Credit contracts		-		25		31		-		-		56
Total derivative instruments
with notional amounts	$	79,242	$	49,998	$	29,280	$	18,318	$	9,017	$	185,855

⁽¹⁾As of March 31, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 18, 2024.

⁽²⁾As of March 31, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061.

The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair

value hedges:

					Cumulative Fair Value
					Hedging Adjustment
					Included in the
	Amortized Cost of the				Amortized Cost of the
	Hedged				Hedged
	Assets / (Liabilities)				Assets / (Liabilities)
	As of		As of		As of		As of
	March 31,		December 31,		March 31,		December 31,
	2022		2021		2022		2021
Line Item in the Consolidated Balance Sheets in
which the Hedged Item is Included
Fixed maturity AFS securities, at fair value	$	701	$	764	$	148	$	211

The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	240		$	42
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		(142	)		(203	)
Foreign currency contracts		(17	)		(63	)
Change in foreign currency exchange rate adjustment		75			47
Change in DAC, VOBA, DSI and DFEL		14			14
Income tax benefit (expense)		15			43
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts (1)		1			1
Foreign currency contracts (1)		13			10
Foreign currency contracts (2)		3			(2	)
Associated amortization of DAC, VOBA, DSI and DFEL		(3	)		(1	)
Income tax benefit (expense)		(3	)		(2	)
Balance as of end-of-period	$	174		$	(126	)

⁽¹⁾The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss).

⁽²⁾The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

The effects of qualifying and non-qualifying hedges (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows:

	Gain (Loss) Recognized in Income
	For the Three Months Ended March 31,
	2022								2021
	Realized			Net					Realized			Net
	Gain			Investment					Gain			Investment
	(Loss)			Income			Benefits		(Loss)			Income			Benefits
Total Line Items in which the
Effects of Fair Value or Cash
Flow Hedges are Recorded	$	266		$	1,353		$	2,199	$	211		$	1,447		$	2,182
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(63	)		-		-			(84	)		-
Derivatives designated as																-
hedging instruments		-			63			-		-			84
Gain or (loss) on cash flow
hedging relationships:
Interest rate contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		-			1			-		-			1			-
Foreign currency contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		3			13			-		(2	)		10			-
Non-Qualifying Hedges
Interest rate contracts		(821	)		-			-		(1,159	)		-			-
Equity market contracts		(324	)		-			-		1,242			-			-
LPR ceded derivative		-			-			52		-			-			50
Embedded derivatives:
GLB		1			-			-		3			-			-
Reinsurance-related		546			-			-		342			-			-
Indexed annuity and IUL
contracts		506			-			-		(594	)		-			-

As of March 31, 2022, $81 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements.

For the three months ended March 31, 2022 and 2021, there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period.

Information related to our CDSs for which we are the seller (dollars in millions) was as follows:

As of March 31, 2022
					Credit
		Reason	Nature		Rating of	Number			Maximum
		for	of	Underlying		of	Fair		Potential
Credit Contract Type	Maturity	Entering	Recourse	Obligation (1)		Instruments	Value (2)		Payout
Basket CDSs	12/20/2026	(3)	(4)		BBB+	1	$	-	$	25
Basket CDSs	6/20/2027	(3)	(4)		BBB+	1		1		31
						2	$	1	$	56

⁽¹⁾Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings.

⁽²⁾Broker quotes are used to determine the market value of our CDSs.

⁽³⁾CDSs were entered into in order to hedge the liability exposure on certain variable annuity products.

⁽⁴⁾Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract.

As of December 31, 2021, we did not have any exposure related to CDSs for which we are the seller.

Details underlying the associated collateral of our CDSs for which we are the seller if credit risk-related contingent features were triggered (in millions) were as follows:

		As of			As of
	March 31,			December 31,
		2022			2021
Maximum potential payout		$	56		$	-
Less: Counterparty thresholds			-			-
Maximum collateral potentially required to post		$	56		$	-

Certain of our CDS agreements contain contractual provisions that allow for the netting of collateral with our counterparties related to all of our collateralized financing transactions that we have outstanding. If these netting agreements were not in place, our counterparties would have been required to post $1 million of collateral as of March 31, 2022.

Credit Risk

We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or non-performance risk (“NPR”). The NPR is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure, less collateral held. As of March 31, 2022, the NPR adjustment was zero. The credit risk associated with such agreements is minimized by entering into agreements with financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under some ISDA agreements, we and LLANY have agreed to maintain certain financial strength or claims-paying ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. We did not have any exposure as of March 31, 2022, or December 31, 2021.

The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows:

	As of March 31, 2022					As of December 31, 2021
	Collateral		Collateral			Collateral		Collateral
	Posted by		Posted by			Posted by		Posted by
S&P	Counter-		LNL			Counter-		LNL
Credit	Party		(Held by			Party		(Held by
Rating of	(Held by		Counter-			(Held by		Counter-
Counterparty	LNL)		Party)			LNL)		Party)
AA-	$	2,126	$	(1	)	$	2,346	$	-
A+		2,362		(78	)		2,762		(44	)
A		279		-			456		-
	$	4,767	$	(79	)	$	5,564	$	(44	)

Balance Sheet Offsetting

Information related to the effects of offsetting on our Consolidated Balance Sheets (in millions) was as follows:

		As of March 31, 2022
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total
Financial Assets
Gross amount of recognized assets		$	6,199			$	2,415	$	8,614
Gross amounts offset			(1,625	)			-		(1,625	)
Net amount of assets (1)			4,574				2,415		6,989
Gross amounts not offset:
Cash collateral (2)			(4,574	)			-		(4,574	)
Non-cash collateral			-				-		-
Net amount		$	-			$	2,415	$	2,415
Financial Liabilities
Gross amount of recognized liabilities		$	246			$	7,522	$	7,768
Gross amounts offset			(33	)			-		(33	)
Net amount of liabilities			213				7,522		7,735
Gross amounts not offset:
Cash collateral (2)			(79	)			-		(79	)
Non-cash collateral			-				-		-
Net amount		$	134			$	7,522	$	7,656

⁽¹⁾Includes deferred premiums receivable (payable) of $(266) million reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Excludes excess cash collateral received of $193 million, as the cash collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

‎

		As of December 31, 2021
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total
Financial Assets
Gross amount of recognized assets		$	7,938			$	2,547	$	10,485
Gross amounts offset			(2,241	)			-		(2,241	)
Net amount of assets (1)			5,697				2,547		8,244
Gross amounts not offset:
Cash collateral			(5,564	)			-		(5,564	)
Non-cash collateral			(133	)			-		(133	)
Net amount		$	-			$	2,547	$	2,547
Financial Liabilities
Gross amount of recognized liabilities		$	349			$	8,724	$	9,073
Gross amounts offset			(68	)			-		(68	)
Net amount of liabilities			281				8,724		9,005
Gross amounts not offset:
Cash collateral			(44	)			-		(44	)
Non-cash collateral			-				-		-
Net amount		$	237			$	8,724	$	8,961

⁽¹⁾Includes deferred premiums receivable (payable) of $260 million reported in other assets on our Consolidated Balance Sheets.

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Federal Income Taxes

3 Months Ended

Mar. 31, 2022

Federal Income Taxes [Abstract]

Federal Income Taxes

6. Federal Income Taxes

The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The effective tax rate was 15% and 18% for the three months ended March 31, 2022 and 2021, respectively. The effective tax rate on pre-tax income is typically lower than the prevailing corporate federal income tax rate of 21% due to benefits from preferential tax items including the separate accounts dividends-received deduction and tax credits.

For the three months ended March 31, 2022 and 2021, the effective tax rate differed from the prevailing corporate federal income tax rate due primarily to the effects of the preferential tax items.

‎

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Guaranteed Benefit Features

3 Months Ended

Mar. 31, 2022

Guaranteed Benefit Features [Abstract]

Guaranteed Benefit Features

7. Guaranteed Benefit Features

Information on the guaranteed death benefit (“GDB”) features outstanding (dollars in millions) was as follows:

	As of		As of
	March 31,		December 31,
	2022 (1)			2021 (1)
Return of Net Deposits
Total account value	$	109,059		$	117,503
Net amount at risk (2)		232			84
Average attained age of contract holders		67 years			67 years
Minimum Return
Total account value	$	91		$	102
Net amount at risk (2)		12			11
Average attained age of contract holders		79 years			79 years
Guaranteed minimum return		5%			5%
Anniversary Contract Value
Total account value	$	26,308		$	28,788
Net amount at risk (2)		1,211			400
Average attained age of contract holders		73 years			73 years

⁽¹⁾Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive.

⁽²⁾Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations.

The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDBs (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets:

	For the Three
	Months Ended
	March 31,
	2022			2021
Balance as of beginning-of-year	$	132		$	121
Changes in reserves		38			8
Benefits paid		(7	)		(5	)
Balance as of end-of-period	$	163		$	124

Variable Annuity Contracts

Account balances of variable annuity contracts, including those with guarantees, (in millions) were invested in separate account investment options as follows:

	As of			As of
	March 31,		December 31,
	2022			2021
Asset Type
Domestic equity	$	70,938		$	77,290
International equity		19,271			21,223
Fixed income		41,808			45,231
Total	$	132,017		$	143,744

Secondary Guarantee Products

Future contract benefits and other contract holder funds include reserves for our secondary guarantee products sold through our Life Insurance segment. Reserves on UL and VUL products with secondary guarantees represented 37% of total life insurance in-force reserves as of March 31, 2022, and December 31, 2021.

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Liability For Unpaid Claims

3 Months Ended

Mar. 31, 2022

Liability For Unpaid Claims [Abstract]

Liability For Unpaid Claims

8. Liability for Unpaid Claims

The liability for unpaid claims consists primarily of long-term disability claims and is reported in future contract benefits on our Consolidated Balance Sheets. Changes in the liability for unpaid claims (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Balance as of beginning-of-year	$	6,280		$	5,934
Reinsurance recoverable		147			151
Net balance as of beginning-of-year		6,133			5,783
Incurred related to:
Current year		1,060			1,025
Prior years:
Interest		39			42
All other incurred (1)		(75	)		(101	)
Total incurred		1,024			966
Paid related to:
Current year		(297	)		(302	)
Prior years		(663	)		(601	)
Total paid		(960	)		(903	)
Net balance as of end-of-period		6,197			5,846
Reinsurance recoverable		145			151
Balance as of end-of-period	$	6,342		$	5,997

⁽¹⁾All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably.

The interest rate assumption used for discounting long-term claim reserves is an important part of the reserving process due to the long benefit period for these claims. Interest accrued on prior years’ reserves has been calculated on the opening reserve balance less one-half of the prior years’ incurred claim payments at our average reserve discount rate.

Long-term disability benefits may extend for many years, and claim development schedules do not reflect these longer benefit periods. As a result, we use longer term retrospective runoff studies, experience studies and prospective studies to develop our liability estimates. Long-term disability reserves are discounted using rates ranging from 2.5% to 5.0% that vary by year of claim incurral.

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Contingencies and Commitments

3 Months Ended

Mar. 31, 2022

Contingencies and Commitments [Abstract]

Contingencies and Commitments

9.  Contingencies and Commitments

Contingencies

Regulatory and Litigation Matters

Regulatory bodies, such as state insurance departments, the SEC, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisers and unclaimed property laws.

LNL and its affiliates are involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding verdicts obtained in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNL in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the

credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of March 31, 2022.

For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss. As of March 31, 2022, we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $120 million, after-tax. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure on such matters.

For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Among other matters, we are presently engaged in litigation, including relating to cost of insurance rates (“Cost of Insurance and Other Litigation”), as described below. No accrual has been made for several of these matters. Although a loss is believed to be reasonably possible for these matters, we are not able to estimate a reasonably possible amount or range of potential liability. An adverse outcome in one or more of these matters may have a material impact on our consolidated financial statements, but, based on information currently known, management does not believe those cases are likely to have such an impact.

Reinsurance Disputes

Certain reinsurers have sought rate increases on certain yearly renewable term agreements. We are disputing the requested rate increases under these agreements. We may initiate legal proceedings, as necessary, under these agreements in order to protect our contractual rights. Additionally, reinsurers have initiated, and may in the future initiate, legal proceedings against us. We believe it is unlikely the outcome of these disputes would have a material impact on our consolidated financial statements.

Cost of Insurance and Other Litigation

Cost of Insurance Litigation

Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company, filed in the U.S. District Court for the District of Connecticut, No. 3:16-cv-00827, is a putative class action that was served on LNL on June 8, 2016. Plaintiff is the owner of a universal life insurance policy who alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who owned policies containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. On January 11, 2019, the court dismissed Plaintiff’s complaint in its entirety. In response, Plaintiff filed a motion for leave to amend the complaint, which we have opposed.

Hanks v. Lincoln Life & Annuity Company of New York (“LLANY”) and Voya Retirement Insurance and Annuity Company (“Voya”), filed in the U.S. District Court for the Southern District of New York, No. 1:16-cv-6399, is a putative class action that was served on LLANY on August 12, 2016. Plaintiff owns a universal life policy originally issued by Aetna (now Voya) and alleges that (i) Voya breached the terms of the policy when it increased non-guaranteed cost of insurance rates on Plaintiff’s policy; and (ii) LLANY, as reinsurer and administrator of Plaintiff’s policy, engaged in wrongful conduct related to the cost of insurance increase and was unjustly enriched as a result. Plaintiff seeks to represent all owners of Aetna life insurance policies that were subject to non-guaranteed cost of insurance rate increases in 2016 and seeks damages on their behalf. On March 13, 2019, the court issued an order granting plaintiff’s motion for class certification for the breach of contract claim and denying such motion with respect to the unjust enrichment claim against LLANY, and, on September 12, 2019, the court issued an order approving the parties’ joint stipulation of dismissal with respect to the unjust enrichment claim and dismissed LLANY as a defendant in the case. In light of LLANY’s role as reinsurer and administrator under the 1998 coinsurance agreement with Aetna (now Voya), and of the parties’ rights and obligations thereunder, LLANY continues to be actively engaged in the defense of this case. On September 30, 2020, the court denied plaintiff’s motion for summary judgment and granted in part Voya’s motion for summary judgment. On October 22, 2021, the parties informed the presiding judge that they have

reached a settlement of the action, subject to court approval. On January 19, 2022, plaintiffs filed a renewed motion for preliminary approval of the class action settlement. The settlement, subject to final approval by the court, consists of $92.5 million in pre-tax cash and a five-year cost of insurance rate freeze, among other terms. On February 3, 2022, the court preliminarily approved the class action settlement, and on February 16, 2022, the court set a final fairness hearing for June 29, 2022.

EFG Bank AG, Cayman Branch, et al. v. The Lincoln National Life Insurance Company, pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:17-cv-02592, is a civil action filed on February 1, 2017. Plaintiffs own Legend Series universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates beginning in 2016. We are vigorously defending this matter.

In re: Lincoln National COI Litigation, pending in the U.S. District Court for the Eastern District of Pennsylvania, Master File No. 2:16-cv-06605-GJP, is a consolidated litigation matter related to multiple putative class action filings that were consolidated by an order dated March 20, 2017. In addition to consolidating a number of existing matters, the order also covers any future cases filed in the same district related to the same subject matter. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2016. Plaintiffs seek to represent classes of policyowners and seek damages on their behalf. We are vigorously defending this matter.

In re: Lincoln National 2017 COI Rate Litigation, pending in the U.S. District Court for the Eastern District of Pennsylvania, Master File No. 2:17-cv-04150 is a consolidated litigation matter related to multiple putative class action filings that were consolidated by an order of the court in March 2018. Plaintiffs own universal life insurance policies originally issued by former Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2017. Plaintiffs seek to represent classes of policyholders and seek damages on their behalf. We are vigorously defending this matter.

TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company, filed in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-02989, is a putative class action that was filed on July 17, 2018. Plaintiff alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who own policies issued by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. We are vigorously defending this matter.

LSH Co. and Wells Fargo Bank, National Association, as securities intermediary for LSH Co. v. Lincoln National Corporation and The Lincoln National Life Insurance Company, pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-05529, is a civil action filed on December 21, 2018. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates in 2016 and 2017. We are vigorously defending this matter.

Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York, pending in the U.S. District Court for the Southern District of New York, No. 1:19-cv-06004, is a putative class action that was filed on June 27, 2019. Plaintiff alleges that LLANY charged more for non-guaranteed cost of insurance than was permitted by the policies. On March 31, 2022, the court issued an order granting plaintiff’s motion for class certification and certified a class of all current or former owners of six universal life insurance products issued by LLANY that were assessed a cost of insurance charge any time on or after June 27, 2013. Plaintiff seeks damages on behalf of the class. We are vigorously defending this matter.

Other Litigation

Andrew Nitkewicz v. Lincoln Life & Annuity Company of New York, pending in the U.S. District Court for the Southern District of New York, No. 1:20-cv-06805, is a putative class action that was filed on August 24, 2020. Plaintiff Andrew Nitkewicz, as trustee of the Joan C. Lupe Trust, seeks to represent all current and former owners of universal life (including variable universal life) policies who own or owned policies issued by LLANY and its predecessors in interest that were in force at any time on or after June 27, 2013, and for which planned annual, semi-annual, or quarterly premiums were paid for any period beyond the end of the policy month of the insured’s death. Plaintiff alleges LLANY failed to refund unearned premium in violation of New York Insurance Law Section 3203(a)(2) in connection with the payment of death benefit claims for certain insurance policies. Plaintiff seeks compensatory damages and pre-judgment interest on behalf of the various classes and sub-class. On July 2, 2021, the court granted, with prejudice, LLANY’s November 2020 motion to dismiss this matter. On July 28, 2021, plaintiff filed a notice of appeal with respect to this ruling.

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Shares and Stockholder's Equity

3 Months Ended

Mar. 31, 2022

Shares and Stockholder's Equity [Abstract]

Shares and Stockholder's Equity

10. Shares and Stockholder’s Equity

All authorized and issued shares of LNL are owned by LNC.

AOCI

The following summarizes the components and changes in AOCI (in millions):

	For the Three
	Months Ended
	March 31,
	2022			2021
Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other
Investments
Balance as of beginning-of-year	$	6,315		$	8,993
Unrealized holding gains (losses) arising during the period		(10,039	)		(7,077	)
Change in foreign currency exchange rate adjustment		(70	)		(41	)
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds		3,840			3,287
Income tax benefit (expense)		1,338			817
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		(2	)		1
Associated amortization of DAC, VOBA, DSI and DFEL		(4	)		(4	)
Income tax benefit (expense)		1			1
Balance as of end-of-period	$	1,389		$	5,981
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	240		$	42
Unrealized holding gains (losses) arising during the period		(159	)		(266	)
Change in foreign currency exchange rate adjustment		75			47
Change in DAC, VOBA, DSI and DFEL		14			14
Income tax benefit (expense)		15			43
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		17			9
Associated amortization of DAC, VOBA, DSI and DFEL		(3	)		(1	)
Income tax benefit (expense)		(3	)		(2	)
Balance as of end-of-period	$	174		$	(126	)
Funded Status of Employee Benefit Plans
Balance as of beginning-of-year	$	(11	)	$	(14	)
Adjustment arising during the period		-			(1	)
Income tax benefit (expense)		(1	)		-
Balance as of end-of-period	$	(12	)	$	(15	)

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The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss):

	For the Three
	Months Ended
	March 31,
	2022			2021
Unrealized Gain (Loss) on Fixed Maturity AFS
Securities and Certain Other Investments
Gross reclassification	$	(2	)	$	1		Realized gain (loss)
Associated amortization of DAC,
VOBA, DSI and DFEL		(4	)		(4	)	Realized gain (loss)
Reclassification before income
tax benefit (expense)		(6	)		(3	)	Income (loss) before taxes
Income tax benefit (expense)		1			1		Federal income tax expense (benefit)
Reclassification, net of income tax	$	(5	)	$	(2	)	Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments
Gross reclassifications:
Interest rate contracts	$	1		$	1		Net investment income
Foreign currency contracts		13			10		Net investment income
Foreign currency contracts		3			(2	)	Realized gain (loss)
Total gross reclassifications		17			9
Associated amortization of DAC,
VOBA, DSI and DFEL		(3	)		(1	)	Commissions and other expenses
Reclassifications before income
tax benefit (expense)		14			8		Income (loss) before taxes
Income tax benefit (expense)		(3	)		(2	)	Federal income tax expense (benefit)
Reclassifications, net of income tax	$	11		$	6		Net income (loss)

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Realized Gain (Loss)

3 Months Ended

Mar. 31, 2022

Realized Gain (Loss) [Abstract]

Realized Gain (Loss)

11. Realized Gain (Loss)

Realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for impairments of investments and changes in the allowance for credit losses for financial assets, changes in fair value for mortgage loans on real estate accounted for under the fair value option, changes in fair value of equity securities, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation. Details underlying realized gain (loss) (in millions) were as follows:

	For the Three
	Months Ended
	March 31,
	2022			2021
Fixed maturity AFS securities:
Gross gains	$	2		$	10
Gross losses		(4	)		(9	)
Credit loss benefit (expense) (1)		(1	)		(2	)
Realized gain (loss) on equity securities (2)		5			10
Credit loss benefit (expense) on mortgage loans on real estate		18			24
Credit loss benefit (expense) on reinsurance-related assets		(5	)		1
Other gain (loss) on investments		(3	)		3
Associated amortization of DAC, VOBA, DSI and DFEL
and changes in other contract holder funds		(7	)		(5	)
Total realized gain (loss) related to certain financial assets		5			32
Realized gain (loss) on the mark-to-market on certain instruments (3)(4)		275			218
Indexed annuity and IUL contracts net derivative results: (5)
Gross gain (loss)		113			32
Associated amortization of DAC, VOBA, DSI and DFEL		(55	)		(13	)
GLB fees ceded to LNBAR and attributed fees:
Gross gain (loss)		(64	)		(50	)
Associated amortization of DAC, VOBA, DSI and DFEL		(8	)		(8	)
Total realized gain (loss)	$	266		$	211

⁽¹⁾Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events.

⁽²⁾Includes market adjustments on equity securities still held of $7 million and $10 million for the three months ended March 31, 2022 and 2021, respectively.

⁽³⁾Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance-related embedded derivatives, mortgage loans on real estate accounted for under the fair value option and trading securities.

⁽⁴⁾Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $(3) million and $1 million for the three months ended March 31, 2022 and 2021, respectively.

⁽⁵⁾Represents the net difference between the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2022

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

12. Fair Value of Financial Instruments

The carrying values and estimated fair values of our financial instruments (in millions) were as follows:

	As of March 31, 2022						As of December 31, 2021
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
Fixed maturity AFS securities	$	109,921		$	109,921		$	117,511		$	117,511
Trading securities		4,334			4,334			4,427			4,427
Equity securities		340			340			314			314
Mortgage loans on real estate		17,795			17,539			17,893			18,599
Derivative investments (1)		4,840			4,840			5,437			5,437
Other investments		3,516			3,516			3,439			3,439
Cash and invested cash		1,722			1,722			2,331			2,331
Other assets:
GLB direct embedded derivatives		1,880			1,880			1,963			1,963
GLB ceded embedded derivatives		42			42			56			56
Indexed annuity ceded embedded derivatives		493			493			528			528
LPR ceded derivative		266			266			318			318
Separate account assets		168,879			168,879			182,583			182,583
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(5,574	)		(5,574	)		(6,131	)		(6,131	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(1,815	)		(1,815	)		(1,788	)		(1,788	)
Account values of certain investment contracts		(41,247	)		(41,722	)		(41,164	)		(47,828	)
Short-term debt		(737	)		(737	)		(1,084	)		(1,084	)
Long-term debt		(2,311	)		(2,470	)		(2,334	)		(2,675	)
Reinsurance-related embedded derivatives		(31	)		(31	)		(578	)		(578	)
Other liabilities:
Derivative liabilities (1)		(181	)		(181	)		(249	)		(249	)
GLB ceded embedded derivatives		(1,917	)		(1,917	)		(2,015	)		(2,015	)

⁽¹⁾We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty.

Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value

The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on our Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments.

Mortgage Loans on Real Estate

The fair value of mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, are classified as Level 2 within the fair value hierarchy.

‎

Other Investments

The carrying value of our assets classified as other investments, excluding short-term investments, approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also includes FHLB stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy.

Separate Account Assets

Separate account assets are primarily carried at fair value.  A portion of our separate account assets includes LPs, which are accounted for using the equity method of accounting. The carrying value is based on our proportional share of the net assets of the LPs and approximates fair value. The inputs used to measure the fair value of the separate account asset LPs are classified as Level 3 within the fair value hierarchy.

Other Contract Holder Funds

Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of March 31, 2022, and December 31, 2021, the remaining guaranteed interest and similar contracts carrying value approximated fair value. The fair value of the account values of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of our other contract holder funds are classified as Level 3 within the fair value hierarchy.

Short-Term and Long-Term Debt

The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy.

Fair Value Option

Mortgage loans on real estate, net of allowance for credit losses, as reported on our Consolidated Balance Sheets, includes mortgage loans on real estate for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with modified coinsurance agreements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on our Consolidated Statement of Comprehensive Income (Loss). Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Mortgage loans on real estate for which the fair value option was elected are valued using third-party pricing services. We have procedures in place to review the valuations each quarter to ensure they are reasonable, including utilizing a separate third party to reperform the valuation for a selection of mortgage loans on an annual basis. Due to lack of observable inputs, mortgage loans electing the fair value option are categorized as Level 3 within the fair value hierarchy.

The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows:

	As of		As of
	March 31,		December 31,
	2022		2021
Fair value	$	537	$	739
Aggregate contractual principal		543		742

As of March 31, 2022, and December 31, 2021, no loans for which the fair value option was elected were in non-accrual status, and none were more than 90 days past due and still accruing interest.

Financial Instruments Carried at Fair Value

Short-Term Investments

Short-term investments consist of securities with original maturities of one year or less, but greater than three months, and are included in other investments on our Consolidated Balance Sheets. Securities included in short-term investments are carried at fair value, with valuation methods and inputs consistent with those applied to fixed maturity AFS securities.

We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2022, or December 31, 2021.

The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:

		As of March 31, 2022
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	81,328			$	8,948		$	90,276
U.S. government bonds			365			23				-			388
State and municipal bonds			-			5,784				-			5,784
Foreign government bonds			-			334				40			374
RMBS			-			2,122				13			2,135
CMBS			-			1,567				17			1,584
ABS			-			7,935				988			8,923
Hybrid and redeemable preferred securities			48			315				94			457
Trading securities			-			3,537				797			4,334
Equity securities			14			228				98			340
Mortgage loans on real estate			-			-				537			537
Derivative investments (1)			-			6,226				272			6,498
Other investments – short-term investments			-			170				-			170
Cash and invested cash			-			1,722				-			1,722
Other assets:
GLB direct embedded derivatives			-			-				1,880			1,880
GLB ceded embedded derivatives			-			-				42			42
Indexed annuity ceded embedded derivatives			-			-				493			493
LPR ceded derivative			-			-				266			266
Separate account assets			506			168,371				-			168,877
Total assets		$	933		$	279,662			$	14,485		$	295,080
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(5,574	)	$	(5,574	)
Reinsurance-related embedded derivatives			-			(31	)			-			(31	)
Other liabilities:
Derivative liabilities (1)			-			(1,570	)			(269	)		(1,839	)
GLB ceded embedded derivatives			-			-				(1,917	)		(1,917	)
Total liabilities		$	-		$	(1,601	)		$	(7,760	)	$	(9,361	)

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		As of December 31, 2021
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	88,622			$	8,801		$	97,423
U.S. government bonds			395			5				-			400
State and municipal bonds			-			6,377				-			6,377
Foreign government bonds			-			382				41			423
RMBS			-			2,302				3			2,305
CMBS			-			1,590				-			1,590
ABS			-			7,636				870			8,506
Hybrid and redeemable preferred securities			53			344				90			487
Trading securities			32			3,567				828			4,427
Equity securities			7			216				91			314
Mortgage loans on real estate			-			-				739			739
Derivative investments (1)			-			7,597				149			7,746
Other investments – short-term investments			-			114				-			114
Cash and invested cash			-			2,331				-			2,331
Other assets:
GLB direct embedded derivatives			-			-				1,963			1,963
GLB ceded embedded derivatives			-			-				56			56
Indexed annuity ceded embedded derivatives			-			-				528			528
LPR ceded derivative			-			-				318			318
Separate account assets			646			181,929				-			182,575
Total assets		$	1,133		$	303,012			$	14,477		$	318,622
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(6,131	)	$	(6,131	)
Reinsurance-related embedded derivatives			-			(578	)			-			(578	)
Other liabilities:
Derivative liabilities (1)			-			(2,430	)			(128	)		(2,558	)
GLB ceded embedded derivatives			-			-				(2,015	)		(2,015	)
Total liabilities		$	-		$	(3,008	)		$	(8,274	)	$	(11,282	)

⁽¹⁾Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty.

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The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.

	For the Three Months Ended March 31, 2022
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net			Value
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	8,801		$	1		$	(351	)	$	363		$	134		$	8,948
Foreign government bonds		41			-			(1	)		-			-			40
RMBS		3			-			-			12			(2	)		13
CMBS		-			-			-			17			-			17
ABS		870			-			(27	)		187			(42	)		988
Hybrid and redeemable preferred
securities		90			-			4			-			-			94
Trading securities		828			(29	)		-			2			(4	)		797
Equity securities		91			15			-			(8	)		-			98
Mortgage loans on real estate		739			(3	)		(1	)		(198	)		-			537
Derivative investments		21			3			(6	)		-			(15	)		3
Other assets:
GLB direct embedded derivatives (3)		1,963			(83	)		-			-			-			1,880
GLB ceded embedded derivatives (3)		56			(14	)		-			-			-			42
Indexed annuity ceded embedded
derivatives (3)		528			(53	)		-			18			-			493
LPR ceded derivative (4)		318			(52	)		-			-			-			266
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (3)		(6,131	)		559			-			(2	)		-			(5,574	)
Other liabilities – GLB ceded embedded
derivatives (3)		(2,015	)		98			-			-			-			(1,917	)
Total, net	$	6,203		$	442		$	(382	)	$	391		$	71		$	6,725

‎

	For the Three Months Ended March 31, 2021
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net			Value
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	7,761		$	1		$	(121	)	$	158		$	(27	)	$	7,772
U.S. government bonds		5			-			-			-			-			5
Foreign government bonds		74			-			(8	)		-			-			66
RMBS		2			-			-			-			(1	)		1
CMBS		1			-			-			-			-			1
ABS		570			-			(7	)		183			(58	)		688
Hybrid and redeemable preferred
securities		103			-			1			(20	)		-			84
Trading securities		643			(3	)		-			66			9			715
Equity securities		57			7			-			(5	)		-			59
Mortgage loans on real estate		832			2			3			37			-			874
Derivative investments		1,542			1,251			-			(132	)		-			2,661
Other assets:
GLB direct embedded derivatives (3)		450			1,381			-			-			-			1,831
GLB ceded embedded derivatives (3)		82			(40	)		-			-			-			42
Indexed annuity ceded embedded
derivatives (3)		550			32			-			(55	)		-			527
LPR ceded derivative (4)		-			(50	)					-			318			268
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (3)		(3,594	)		(626	)		-			50			-			(4,170	)
Other liabilities – GLB ceded embedded
derivatives (3)		(531	)		(1,338	)		-			-			-			(1,869	)
Total, net	$	8,547		$	617		$	(132	)	$	282		$	241		$	9,555

⁽¹⁾The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

⁽²⁾Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽³⁾Gains (losses) from the changes in fair value are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁴⁾Gains (losses) from the changes in fair value are included in benefits on our Consolidated Statements of Comprehensive Income (Loss).

‎

The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, (in millions) as reported above:

	For the Three Months Ended March 31, 2022
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	455		$	(24	)	$	(20	)	$	(43	)	$	(5	)	$	363
RMBS		12			-			-			-			-			12
CMBS		17			-			-			-			-			17
ABS		250			-			-			(56	)		(7	)		187
Trading securities		179			(132	)		-			(45	)		-			2
Equity securities		-			(8	)		-			-			-			(8	)
Mortgage loans on real estate		3			-			-			(201	)		-			(198	)
Other assets – indexed annuity ceded
embedded derivatives		16			-			-			2			-			18
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(128	)		-			-			126			-			(2	)
Total, net	$	804		$	(164	)	$	(20	)	$	(217	)	$	(12	)	$	391

	For the Three Months Ended March 31, 2021
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	304		$	(28	)	$	(15	)	$	(86	)	$	(17	)	$	158
ABS		200			-			-			(17	)		-			183
Hybrid and redeemable preferred
securities		-			(20	)		-			-			-			(20	)
Trading securities		88			(3	)		-			(19	)		-			66
Equity securities		3			(8	)		-			-			-			(5	)
Mortgage loans on real estate		72			(35	)		-			-			-			37
Derivative investments		174			(124	)		(182	)		-			-			(132	)
Other assets – indexed annuity ceded
embedded derivatives		3			-			-			(58	)		-			(55	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(108	)		-			-			158			-			50
Total, net	$	736		$	(218	)	$	(197	)	$	(22	)	$	(17	)	$	282

‎

The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):

	For the Three
	Months Ended
	March 31,
	2022			2021
Trading securities (1)	$	(30	)	$	(2	)
Equity securities (1)		17			6
Mortgage loans on real estate (1)		(3	)		4
Derivative investments (1)		2			1,053
Other assets – LPR ceded derivative (2)		(52	)		(50	)
Embedded derivatives: (1)
Indexed annuity and IUL contracts		84			43
Other assets – GLB direct and ceded		105			1,545
Other liabilities – GLB ceded		(105	)		(1,542	)
Total, net	$	18		$	1,057

⁽¹⁾Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽²⁾Included in benefits on our Consolidated Statements of Comprehensive Income (Loss).

The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):

	For the Three
	Months Ended
	March 31,
	2022			2021
Fixed maturity AFS securities:
Corporate bonds	$	(354	)	$	(122	)
Foreign government bonds		(2	)		(8	)
ABS		(27	)		(8	)
Hybrid and redeemable preferred
securities		4			2
Mortgage loans on real estate		-			3
Total, net	$	(379	)	$	(133	)

The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:

	For the Three								For the Three
	Months Ended								Months Ended
	March 31, 2022								March 31, 2021
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	196	$	(62	)	$	134		$	11	$	(38	)	$	(27	)
RMBS		-		(2	)		(2	)		-		(1	)		(1	)
ABS		-		(42	)		(42	)		-		(58	)		(58	)
Trading securities		-		(4	)		(4	)		12		(3	)		9
Derivative investments		-		(15	)		(15	)		-		-			-
Other assets – LPR ceded derivative		-		-			-			318		-			318
Total, net	$	196	$	(125	)	$	71		$	341	$	(100	)	$	241

Transfers into and out of Level 3 are generally the result of observable market information on financial instruments no longer being available or becoming available to our pricing vendors. For the three months ended March 31, 2022 and 2021, transfers in and out of Level 3 were attributable primarily to the financial instruments’ observable market information no longer being available or becoming available.

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of March 31, 2022:

											Weighted
											Average
	Fair			Valuation	Significant	Assumption or					Input
	Value			Technique	Unobservable Inputs	Input Ranges					Range (1)
Assets
Investments:
Fixed maturity AFS and
trading securities:
Corporate bonds	$	3,765		Discounted cash flow	Liquidity/duration adjustment (2)	0.4	%	-	4.7	%	1.6	%
Foreign government
bonds		40		Discounted cash flow	Liquidity/duration adjustment (2)	1.1	%	-	10.3	%	7.8	%
ABS		17		Discounted cash flow	Liquidity/duration adjustment (2)	1.4	%	-	1.4	%	1.4	%
Hybrid and redeemable
preferred securities		3		Discounted cash flow	Liquidity/duration adjustment (2)	1.5	%	-	1.5	%	1.5	%
Equity securities		21		Discounted cash flow	Liquidity/duration adjustment (2)	3.6	%	-	4.5	%	3.8	%
Other assets:
GLB direct and ceded
embedded derivatives		1,922		Discounted cash flow	Long-term lapse rate (3)	1	%	-	30	%	(10)
					Utilization of guaranteed withdrawals (4)	85	%	-	100	%	94	%
					Claims utilization factor (5)	60	%	-	100	%	(10)
					Premiums utilization factor (5)	80	%	-	115	%	(10)
					NPR (6)	0.14	%	-	1.59	%	1.14	%
					Mortality rate (7)				(9)		(10)
					Volatility (8)	1	%	-	28	%	14.53	%
Indexed annuity ceded
embedded derivatives		493		Discounted cash flow	Lapse rate (3)	0	%	-	9	%	(10)
					Mortality rate (7)				(9)		(10)
LPR ceded derivative		266		Discounted cash flow	Long-term lapse rate (3)	0	%	-	1.65	%	(10)
					NPR (6)	0.14	%	-	1.59	%	1.12	%
					Mortality rate (7)				(9)		(10)
Liabilities
Future contract benefits –
indexed annuity contracts
embedded derivatives	$	(5,564	)	Discounted cash flow	Lapse rate (3)	0	%	-	9	%	(10)
					Mortality rate (7)				(9)		(10)
Other liabilities –
GLB ceded embedded
derivatives		(1,917	)	Discounted cash flow	Long-term lapse rate (3)	1	%	-	30	%	(10)
					Utilization of guaranteed withdrawals (4)	85	%	-	100	%	94	%
					Claims utilization factor (5)	60	%	-	100	%	(10)
					Premiums utilization factor (5)	80	%	-	115	%	(10)
					NPR (6)	0.14	%	-	1.59	%	1.14	%
					Mortality rate (7)				(9)		(10)
					Volatility (8)	1	%	-	28	%	14.53	%

⁽¹⁾Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted.

⁽²⁾The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

⁽³⁾The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapse rates during the surrender charge period.

⁽⁴⁾The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁵⁾The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal.

⁽⁶⁾The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input for direct and ceded embedded derivatives was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. The NPR input for LPR ceded derivative was weighted using a simple average.

⁽⁷⁾The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

⁽⁸⁾The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index.

⁽⁹⁾The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.

⁽¹⁰⁾A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate.

From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement.

Changes in any of the significant inputs presented in the table above would have resulted in a significant change in the fair value measurement of the asset or liability as follows:

Investments – An increase in the liquidity/duration adjustment input would have resulted in a decrease in the fair value measurement.

Indexed annuity contracts embedded derivatives – For direct embedded derivatives, an increase in the lapse rate or mortality rate inputs would have resulted in a decrease in the fair value measurement.

LPR ceded derivative – Assuming our LPR ceded derivative is in an asset position: an increase in our lapse rate, NPR or mortality rate inputs would have resulted in an increase in the fair value measurement.

GLB embedded derivatives – Assuming our GLB direct embedded derivatives are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would have resulted in a decrease in the fair value measurement; and an increase in the utilization of guaranteed withdrawal or volatility inputs would have resulted in an increase in the fair value measurement.

For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input would not have affected the other inputs.

As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary.

XML

Segment Information

3 Months Ended

Mar. 31, 2022

Segment Information [Abstract]

Segment Information

13. Segment Information

We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. A discussion of these segments and Other Operations is found in Note 21 to the consolidated financial statements in our 2021 Form 10-K.

Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

Realized gains and losses associated with the following (“excluded realized gain (loss)”):

Sales or disposals and impairments of financial assets;

Changes in the fair value of equity securities;

Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”);

GLB rider fees ceded to LNBAR;

The net valuation premium of the GLB attributed rider fees; and

Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”);

Changes in reserves resulting from benefit ratio unlocking on our GLB riders (“benefit ratio unlocking”);

Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

Gains (losses) on modification or early extinguishment of debt;

Losses from the impairment of intangible assets;

Income (loss) from discontinued operations;

Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; and

Income (loss) from the initial adoption of new accounting standards, regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act.

Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:

Excluded realized gain (loss);

Revenue adjustments from the initial adoption of new accounting standards;

Amortization of DFEL arising from changes in GLB benefit ratio unlocking; and

Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

‎

The tables below reconcile our segment measures of performance to the GAAP measures presented in our Consolidated Statements of Comprehensive Income (Loss) (in millions):

	For the Three
	Months Ended
	March 31,
	2022		2021
Revenues
Operating revenues:
Annuities	$	1,122	$	1,097
Retirement Plan Services		314		323
Life Insurance		1,715		1,819
Group Protection		1,302		1,253
Other Operations		33		35
Excluded realized gain (loss), pre-tax		210		162
Total revenues	$	4,696	$	4,689

	For the Three
	Months Ended
	March 31,
	2022			2021
Net Income (Loss)
Income (loss) from operations:
Annuities	$	348		$	297
Retirement Plan Services		52			54
Life Insurance		18			42
Group Protection		(41	)		(26	)
Other Operations		(63	)		(41	)
Excluded realized gain (loss), after-tax		166			127
Benefit ratio unlocking, after-tax		(11	)		11
Net income (loss)	$	469		$	464

XML

Nature of Operations and Basis of Presentation (Policy)

3 Months Ended

Mar. 31, 2022

Nature of Operations and Basis of Presentation [Abstract]

Nature Of Operations

Nature of Operations

The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100% of the outstanding common stock of Lincoln Life & Annuity Company of New York (“LLANY”). We also own several non-insurance companies, including Lincoln Financial Distributors, our wholesale distributor, and Lincoln Financial Advisors Corporation, part of LNC’s retail distributor, Lincoln Financial Network. Through our business segments, we sell a wide range of wealth protection, accumulation, retirement income and group protection products and solutions. These products primarily include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL and VUL, indexed universal life insurance (“IUL”), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 13 for additional information.

Basis Of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”), should be read in connection with the reading of these interim unaudited consolidated financial statements.

Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2021 Form 10-K.

In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022, especially when considering the risks and uncertainties associated with the COVID-19 pandemic and the future impacts of the pandemic on our business, results of operations and financial condition. All material inter-company accounts and transactions have been eliminated in consolidation

XML

Investments (Tables)

3 Months Ended

Mar. 31, 2022

Financing Receivable, Credit Quality Indicator [Line Items]

Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value

	As of March 31, 2022
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	87,914	$	4,778	$	2,400	$	16	$	90,276
U.S. government bonds		364		29		5		-		388
State and municipal bonds		5,171		758		145		-		5,784
Foreign government bonds		349		42		17		-		374
RMBS		2,092		85		40		2		2,135
CMBS		1,647		8		71		-		1,584
ABS		9,040		73		189		1		8,923
Hybrid and redeemable preferred securities		397		82		21		1		457
Total fixed maturity AFS securities	$	106,974	$	5,855	$	2,888	$	20	$	109,921

	As of December 31, 2021
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	86,197	$	11,569	$	326	$	17	$	97,423
U.S. government bonds		348		54		2		-		400
State and municipal bonds		5,113		1,275		11		-		6,377
Foreign government bonds		365		63		5		-		423
RMBS		2,132		178		4		1		2,305
CMBS		1,542		62		14		-		1,590
ABS		8,433		127		54		-		8,506
Hybrid and redeemable preferred securities		396		103		11		1		487
Total fixed maturity AFS securities	$	104,526	$	13,431	$	427	$	19	$	117,511

Available-For-Sale Securities By Contractual Maturities

	Amortized		Fair
	Cost		Value
Due in one year or less	$	2,877	$	2,877
Due after one year through five years		16,206		16,183
Due after five years through ten years		19,655		19,532
Due after ten years		55,457		58,687
Subtotal		94,195		97,279
Structured securities (RMBS, CMBS, ABS)		12,779		12,642
Total fixed maturity AFS securities	$	106,974	$	109,921

Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position

	As of March 31, 2022
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	29,692		$	1,890	$	3,208		$	510	$	32,900		$	2,400
U.S. government bonds		36			1		24			4		60			5
State and municipal bonds		1,231			134		64			11		1,295			145
Foreign government bonds		69			7		82			10		151			17
RMBS		881			37		31			3		912			40
CMBS		999			44		215			27		1,214			71
ABS		6,935			169		475			20		7,410			189
Hybrid and redeemable
preferred securities		95			5		70			16		165			21
Total fixed maturity AFS securities	$	39,938		$	2,287	$	4,169		$	601	$	44,107		$	2,888
Total number of fixed maturity AFS securities in an unrealized loss position															5,054

	As of December 31, 2021
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
				Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	10,611		$	230	$	1,386		$	96	$	11,997		$	326
U.S. government bonds		6			-		26			2		32			2
State and municipal bonds		498			10		19			1		517			11
Foreign government bonds		61			3		56			2		117			5
RMBS		261			3		20			1		281			4
CMBS		440			12		33			2		473			14
ABS		4,646			49		165			5		4,811			54
Hybrid and redeemable
preferred securities		47			1		76			10		123			11
Total fixed maturity AFS securities	$	16,570		$	308	$	1,781		$	119	$	18,351		$	427
Total number of fixed maturity AFS securities in an unrealized loss position															2,577

⁽¹⁾As of March 31, 2022, and December 31, 2021, we recognized $7 million and $8 million of gross unrealized losses, respectively, in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded.

Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost

	As of March 31, 2022
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities (1)
Less than six months	$	529	$	146			82
Twelve months or greater		38		6			21
Total	$	567	$	152			103

	As of December 31, 2021
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities (1)
Less than six months	$	12	$	3			6
Twelve months or greater		58		8			24
Total	$	70	$	11			30

⁽¹⁾We may reflect a security in more than one aging category based on various purchase dates.

Changes In Allowance For Credit Losses Of AFS

	For the Three
	Months Ended
	March 31, 2022
	Corporate
	Bonds			RMBS		Other		Total
Balance as of beginning-of-year	$	17		$	1	$	1	$	19
Additions for securities for which credit losses were not
previously recognized		-			1		1		2
Additions from purchases of PCD debt securities (1)		-			-		-		-
Reductions for securities disposed		(1	)		-		-		(1	)
Balance as of end-of-period (2)	$	16		$	2	$	2	$	20

	For the Three
	Months Ended
	March 31, 2021
	Corporate
	Bonds		RMBS		Other		Total
Balance as of beginning-of-year	$	12	$	1	$	-	$	13
Additions from purchases of PCD debt securities (1)		-		-		-		-
Additions (reductions) for securities for which credit losses
were previously recognized		1		-		-		1
Balance as of end-of-period (2)	$	13	$	1	$	-	$	14

⁽¹⁾Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities.

⁽²⁾As of March 31, 2022 and 2021, accrued investment income on fixed maturity AFS securities totaled $1.0 billion, and was excluded from the estimate of credit losses.

Composition Of Current And Past Due Mortgage Loans On Real Estate

	As of March 31, 2022									As of December 31, 2021
	Commercial			Residential			Total			Commercial			Residential			Total
Current	$	16,677		$	1,015		$	17,692		$	17,068		$	837		$	17,905
30 to 59 days past due		90			23			113			15			21			36
60 to 89 days past due		16			9			25			-			5			5
90 or more days past due		-			26			26			-			29			29
Allowance for credit losses		(59	)		(18	)		(77	)		(78	)		(17	)		(95	)
Unamortized premium (discount)		(10	)		32			22			(11	)		27			16
Mark-to-market gains (losses) (1)		(6	)		-			(6	)		(3	)		-			(3	)
Total carrying value	$	16,708		$	1,087		$	17,795		$	16,991		$	902		$	17,893

⁽¹⁾Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 12 for additional information.

Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate

	For the Three
	Months Ended
	March 31,
	2022		2021
Average aggregate carrying value for impaired mortgage loans on real estate	$	21	$	36
Interest income recognized on impaired mortgage loans on real estate		-		-
Interest income collected on impaired mortgage loans on real estate		-		-

Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status

	As of March 31, 2022				As of December 31, 2021
	Nonaccrual				Nonaccrual
	with no				with no
	Allowance				Allowance
	for Credit				for Credit
	Losses		Nonaccrual		Losses		Nonaccrual
Commercial mortgage loans on real estate	$	-	$	-	$	-	$	-
Residential mortgage loans on real estate		-		26		-		30
Total	$	-	$	26	$	-	$	30

Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate

	For the Three
	Months Ended
	March 31, 2022
	Commercial			Residential		Total
Balance as of beginning-of-year	$	78		$	17	$	95
Additions (reductions) from provision for credit loss expense (1)		(19	)		1		(18	)
Additions from purchases of PCD mortgage loans on real estate		-			-		-
Balance as of end-of-period (2)	$	59		$	18	$	77

	For the Three
	Months Ended
	March 31, 2021
	Commercial			Residential			Total
Balance as of beginning-of-year	$	186		$	17		$	203
Additions (reductions) from provision for credit loss expense (1)		(15	)		(5	)		(20	)
Additions from purchases of PCD mortgage loans on real estate		-			-			-
Balance as of end-of-period (2)	$	171		$	12		$	183

⁽¹⁾Due to improving economic projections, the provision for credit loss expense decreased by $18 million and $20 million for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022, we recognized no credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate. For the three months ended March 31, 2021, we recognized $4 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate.

⁽²⁾Accrued investment income on mortgage loans on real estate totaled $49 million and $50 million as of March 31, 2022 and 2021, respectively, and was excluded from the estimate of credit losses.

Credit Loss Expense Incurred

	For the Three
	Months Ended
	March 31,
	2022			2021
Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	1		$	(2	)
RMBS		(1	)		-
ABS		(1	)		-
Gross credit loss benefit (expense)		(1	)		(2	)
Associated amortization of DAC, VOBA, DSI and DFEL (1)		-			-
Net credit loss benefit (expense)	$	(1	)	$	(2	)

⁽¹⁾Deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end loads (“DFEL”).

Payables For Collateral On Investments

	As of March 31, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable for derivative investments (1)	$	4,767	$	4,767	$	5,565	$	5,565
Securities pledged under securities lending agreements (2)		258		250		241		235
Investments pledged for Federal Home Loan Bank of
Indianapolis (3)		3,880		5,924		3,130		4,876
Total payables for collateral on investments	$	8,905	$	10,941	$	8,936	$	10,676

⁽¹⁾We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. This also includes interest payable on collateral. See Note 5 for additional information.

⁽²⁾Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

⁽³⁾Our pledged investments for Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

Schedule Of Increase (Decrease) In Payables For Collateral On Investments

	For the Three
	Months Ended
	March 31,
	2022			2021
Collateral payable for derivative investments	$	(798	)	$	248
Securities pledged under securities lending agreements		17			30
Investments pledged for FHLBI		750			1,100
Total increase (decrease) in payables for collateral on investments	$	(31	)	$	1,378

Schedule Of Securities Pledged By Contractual Maturity

	As of March 31, 2022
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	245	$	-	$	-	$	-	$	245
Foreign government bonds		11		-		-		-		11
Equity securities		2		-		-		-		2
Total gross secured borrowings	$	258	$	-	$	-	$	-	$	258

	As of December 31, 2021
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	239	$	-	$	-	$	-	$	239
Foreign government bonds		1		-		-		-		1
Equity securities		1		-		-		-		1
Total gross secured borrowings	$	241	$	-	$	-	$	-	$	241

Commercial [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

Mortgage Loans By Year Of Origination

We use loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows:

	As of March 31, 2022
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	Greater		Coverage
	than 65%		Ratio	to 75%		Ratio	than 75%		Ratio	Total
Origination Year
2022	$	329	2.67	$	25	1.57	$	-	-	$	354
2021		2,356	3.05		87	1.50		-	-		2,443
2020		1,346	2.97		20	1.55		-	-		1,366
2019		2,657	2.14		178	1.56		-	-		2,835
2018		2,235	2.14		151	1.56		15	1.02		2,401
2017 and prior		7,024	2.38		302	1.77		48	0.99		7,374
Total	$	15,947		$	763		$	63		$	16,773

	As of December 31, 2021
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	Greater		Coverage
	than 65%		Ratio	to 75%		Ratio	than 75%		Ratio	Total
Origination Year
2021	$	2,361	3.05	$	136	1.74	$	-	-	$	2,497
2020		1,349	3.02		144	2.06		-	-		1,493
2019		2,875	2.14		187	1.42		-	-		3,062
2018		2,272	2.13		168	1.59		15	1.02		2,455
2017		1,648	2.33		149	1.74		27	0.83		1,824
2016 and prior		5,543	2.41		171	1.76		27	1.08		5,741
Total	$	16,048		$	955		$	69		$	17,072

Residential [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

Mortgage Loans By Year Of Origination

	As of March 31, 2022
	Performing		Nonperforming			Total
Origination Year
2022	$	134		$	-	$	134
2021		574			3		577
2020		113			3		116
2019		170			17		187
2018		88			3		91
2017 and prior		-			-		-
Total	$	1,079		$	26	$	1,105

	As of December 31, 2021
	Performing		Nonperforming			Total
Origination Year
2021	$	467		$	2	$	469
2020		129			2		131
2019		189			21		210
2018		104			5		109
2017		-			-		-
2016 and prior		-			-		-
Total	$	889		$	30	$	919

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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments [Abstract]

Outstanding Derivative Instruments With Off-Balance-Sheet Risks

	As of March 31, 2022						As of December 31, 2021
	Notional		Fair Value				Notional		Fair Value
	Amounts		Asset		Liability		Amounts		Asset		Liability
Qualifying Hedges
Cash flow hedges:
Interest rate contracts (1)	$	1,924	$	15	$	68	$	2,009	$	98	$	11
Foreign currency contracts (1)		4,180		313		40		3,979		283		51
Total cash flow hedges		6,104		328		108		5,988		381		62
Fair value hedges:
Interest rate contracts (1)		526		-		148		526		-		210
Non-Qualifying Hedges
Interest rate contracts (1)		88,588		631		281		82,786		897		176
Foreign currency contracts (1)		383		9		1		487		7		2
Equity market contracts (1)		90,198		5,530		1,301		92,278		6,461		2,108
Credit contracts (1)		56		-		-		49		-		-
LPR ceded derivative (2)		-		266		-		-		318		-
Embedded derivatives:
GLB direct (3)		-		1,880		-		-		1,963		-
GLB ceded (3)		-		42		1,917		-		56		2,015
Reinsurance-related (4)		-		-		31		-		-		578
Indexed annuity and IUL contracts (3) (5)		-		493		5,574		-		528		6,131
Total derivative instruments	$	185,855	$	9,179	$	9,361	$	182,114	$	10,611	$	11,282

⁽¹⁾Reported in derivative investments and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Reported in other assets on our Consolidated Balance Sheets.

⁽³⁾Reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽⁴⁾Reported in reinsurance-related embedded derivatives on our Consolidated Balance Sheets.

⁽⁵⁾Reported in future contract benefits on our Consolidated Balance Sheets.

Maturity Of The Notional Amounts Of Derivative Financial Instruments

	Remaining Life as of March 31, 2022
	Less Than		1 – 5		6 – 10		11 – 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts (1)	$	25,425	$	29,454	$	19,844	$	16,315	$	-	$	91,038
Foreign currency contracts (2)		294		556		1,627		1,992		94		4,563
Equity market contracts		53,523		19,963		7,778		11		8,923		90,198
Credit contracts		-		25		31		-		-		56
Total derivative instruments
with notional amounts	$	79,242	$	49,998	$	29,280	$	18,318	$	9,017	$	185,855

⁽¹⁾As of March 31, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 18, 2024.

⁽²⁾As of March 31, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061.

Cumulative Basis Adjustments For Fair Value Hedges

					Cumulative Fair Value
					Hedging Adjustment
					Included in the
	Amortized Cost of the				Amortized Cost of the
	Hedged				Hedged
	Assets / (Liabilities)				Assets / (Liabilities)
	As of		As of		As of		As of
	March 31,		December 31,		March 31,		December 31,
	2022		2021		2022		2021
Line Item in the Consolidated Balance Sheets in
which the Hedged Item is Included
Fixed maturity AFS securities, at fair value	$	701	$	764	$	148	$	211

Change In Unrealized Gain On Derivative Instruments In Accumulated OCI

	For the Three
	Months Ended
	March 31,
	2022			2021
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	240		$	42
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		(142	)		(203	)
Foreign currency contracts		(17	)		(63	)
Change in foreign currency exchange rate adjustment		75			47
Change in DAC, VOBA, DSI and DFEL		14			14
Income tax benefit (expense)		15			43
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts (1)		1			1
Foreign currency contracts (1)		13			10
Foreign currency contracts (2)		3			(2	)
Associated amortization of DAC, VOBA, DSI and DFEL		(3	)		(1	)
Income tax benefit (expense)		(3	)		(2	)
Balance as of end-of-period	$	174		$	(126	)

⁽¹⁾The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss).

⁽²⁾The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

Effects Of Qualifying And Non-Qualifying Hedges

	Gain (Loss) Recognized in Income
	For the Three Months Ended March 31,
	2022								2021
	Realized			Net					Realized			Net
	Gain			Investment					Gain			Investment
	(Loss)			Income			Benefits		(Loss)			Income			Benefits
Total Line Items in which the
Effects of Fair Value or Cash
Flow Hedges are Recorded	$	266		$	1,353		$	2,199	$	211		$	1,447		$	2,182
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(63	)		-		-			(84	)		-
Derivatives designated as																-
hedging instruments		-			63			-		-			84
Gain or (loss) on cash flow
hedging relationships:
Interest rate contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		-			1			-		-			1			-
Foreign currency contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		3			13			-		(2	)		10			-
Non-Qualifying Hedges
Interest rate contracts		(821	)		-			-		(1,159	)		-			-
Equity market contracts		(324	)		-			-		1,242			-			-
LPR ceded derivative		-			-			52		-			-			50
Embedded derivatives:
GLB		1			-			-		3			-			-
Reinsurance-related		546			-			-		342			-			-
Indexed annuity and IUL
contracts		506			-			-		(594	)		-			-

Open Credit Default Swap Liabilities

As of March 31, 2022
					Credit
		Reason	Nature		Rating of	Number			Maximum
		for	of	Underlying		of	Fair		Potential
Credit Contract Type	Maturity	Entering	Recourse	Obligation (1)		Instruments	Value (2)		Payout
Basket CDSs	12/20/2026	(3)	(4)		BBB+	1	$	-	$	25
Basket CDSs	6/20/2027	(3)	(4)		BBB+	1		1		31
						2	$	1	$	56

⁽¹⁾Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings.

⁽²⁾Broker quotes are used to determine the market value of our CDSs.

⁽³⁾CDSs were entered into in order to hedge the liability exposure on certain variable annuity products.

⁽⁴⁾Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract.

Collateral Support Agreements

		As of			As of
	March 31,			December 31,
		2022			2021
Maximum potential payout		$	56		$	-
Less: Counterparty thresholds			-			-
Maximum collateral potentially required to post		$	56		$	-

Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash

	As of March 31, 2022					As of December 31, 2021
	Collateral		Collateral			Collateral		Collateral
	Posted by		Posted by			Posted by		Posted by
S&P	Counter-		LNL			Counter-		LNL
Credit	Party		(Held by			Party		(Held by
Rating of	(Held by		Counter-			(Held by		Counter-
Counterparty	LNL)		Party)			LNL)		Party)
AA-	$	2,126	$	(1	)	$	2,346	$	-
A+		2,362		(78	)		2,762		(44	)
A		279		-			456		-
	$	4,767	$	(79	)	$	5,564	$	(44	)

Schedule Of Offsetting Assets And Liabilities

		As of March 31, 2022
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total
Financial Assets
Gross amount of recognized assets		$	6,199			$	2,415	$	8,614
Gross amounts offset			(1,625	)			-		(1,625	)
Net amount of assets (1)			4,574				2,415		6,989
Gross amounts not offset:
Cash collateral (2)			(4,574	)			-		(4,574	)
Non-cash collateral			-				-		-
Net amount		$	-			$	2,415	$	2,415
Financial Liabilities
Gross amount of recognized liabilities		$	246			$	7,522	$	7,768
Gross amounts offset			(33	)			-		(33	)
Net amount of liabilities			213				7,522		7,735
Gross amounts not offset:
Cash collateral (2)			(79	)			-		(79	)
Non-cash collateral			-				-		-
Net amount		$	134			$	7,522	$	7,656

⁽¹⁾Includes deferred premiums receivable (payable) of $(266) million reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Excludes excess cash collateral received of $193 million, as the cash collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

‎

		As of December 31, 2021
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total
Financial Assets
Gross amount of recognized assets		$	7,938			$	2,547	$	10,485
Gross amounts offset			(2,241	)			-		(2,241	)
Net amount of assets (1)			5,697				2,547		8,244
Gross amounts not offset:
Cash collateral			(5,564	)			-		(5,564	)
Non-cash collateral			(133	)			-		(133	)
Net amount		$	-			$	2,547	$	2,547
Financial Liabilities
Gross amount of recognized liabilities		$	349			$	8,724	$	9,073
Gross amounts offset			(68	)			-		(68	)
Net amount of liabilities			281				8,724		9,005
Gross amounts not offset:
Cash collateral			(44	)			-		(44	)
Non-cash collateral			-				-		-
Net amount		$	237			$	8,724	$	8,961

⁽¹⁾Includes deferred premiums receivable (payable) of $260 million reported in other assets on our Consolidated Balance Sheets.

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Guaranteed Benefit Features (Tables)

3 Months Ended

Mar. 31, 2022

Guaranteed Benefit Features [Abstract]

Information On Guaranteed Death Benefit Features

	As of		As of
	March 31,		December 31,
	2022 (1)			2021 (1)
Return of Net Deposits
Total account value	$	109,059		$	117,503
Net amount at risk (2)		232			84
Average attained age of contract holders		67 years			67 years
Minimum Return
Total account value	$	91		$	102
Net amount at risk (2)		12			11
Average attained age of contract holders		79 years			79 years
Guaranteed minimum return		5%			5%
Anniversary Contract Value
Total account value	$	26,308		$	28,788
Net amount at risk (2)		1,211			400
Average attained age of contract holders		73 years			73 years

⁽¹⁾Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive.

⁽²⁾Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations.

Summary Of Guaranteed Death Benefit Liabilities

	For the Three
	Months Ended
	March 31,
	2022			2021
Balance as of beginning-of-year	$	132		$	121
Changes in reserves		38			8
Benefits paid		(7	)		(5	)
Balance as of end-of-period	$	163		$	124

Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts

	As of			As of
	March 31,		December 31,
	2022			2021
Asset Type
Domestic equity	$	70,938		$	77,290
International equity		19,271			21,223
Fixed income		41,808			45,231
Total	$	132,017		$	143,744

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Liability For Unpaid Claims (Tables)

3 Months Ended

Mar. 31, 2022

Liability For Unpaid Claims [Abstract]

Changes In Liability For Unpaid Claims

	For the Three
	Months Ended
	March 31,
	2022			2021
Balance as of beginning-of-year	$	6,280		$	5,934
Reinsurance recoverable		147			151
Net balance as of beginning-of-year		6,133			5,783
Incurred related to:
Current year		1,060			1,025
Prior years:
Interest		39			42
All other incurred (1)		(75	)		(101	)
Total incurred		1,024			966
Paid related to:
Current year		(297	)		(302	)
Prior years		(663	)		(601	)
Total paid		(960	)		(903	)
Net balance as of end-of-period		6,197			5,846
Reinsurance recoverable		145			151
Balance as of end-of-period	$	6,342		$	5,997

⁽¹⁾All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably.

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Shares and Stockholder's Equity (Tables)

3 Months Ended

Mar. 31, 2022

Shares and Stockholder's Equity [Abstract]

Components And Changes In Accumulated OCI

	For the Three
	Months Ended
	March 31,
	2022			2021
Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other
Investments
Balance as of beginning-of-year	$	6,315		$	8,993
Unrealized holding gains (losses) arising during the period		(10,039	)		(7,077	)
Change in foreign currency exchange rate adjustment		(70	)		(41	)
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds		3,840			3,287
Income tax benefit (expense)		1,338			817
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		(2	)		1
Associated amortization of DAC, VOBA, DSI and DFEL		(4	)		(4	)
Income tax benefit (expense)		1			1
Balance as of end-of-period	$	1,389		$	5,981
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	240		$	42
Unrealized holding gains (losses) arising during the period		(159	)		(266	)
Change in foreign currency exchange rate adjustment		75			47
Change in DAC, VOBA, DSI and DFEL		14			14
Income tax benefit (expense)		15			43
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		17			9
Associated amortization of DAC, VOBA, DSI and DFEL		(3	)		(1	)
Income tax benefit (expense)		(3	)		(2	)
Balance as of end-of-period	$	174		$	(126	)
Funded Status of Employee Benefit Plans
Balance as of beginning-of-year	$	(11	)	$	(14	)
Adjustment arising during the period		-			(1	)
Income tax benefit (expense)		(1	)		-
Balance as of end-of-period	$	(12	)	$	(15	)

Schedule of Reclassifications Out Of AOCI

	For the Three
	Months Ended
	March 31,
	2022			2021
Unrealized Gain (Loss) on Fixed Maturity AFS
Securities and Certain Other Investments
Gross reclassification	$	(2	)	$	1		Realized gain (loss)
Associated amortization of DAC,
VOBA, DSI and DFEL		(4	)		(4	)	Realized gain (loss)
Reclassification before income
tax benefit (expense)		(6	)		(3	)	Income (loss) before taxes
Income tax benefit (expense)		1			1		Federal income tax expense (benefit)
Reclassification, net of income tax	$	(5	)	$	(2	)	Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments
Gross reclassifications:
Interest rate contracts	$	1		$	1		Net investment income
Foreign currency contracts		13			10		Net investment income
Foreign currency contracts		3			(2	)	Realized gain (loss)
Total gross reclassifications		17			9
Associated amortization of DAC,
VOBA, DSI and DFEL		(3	)		(1	)	Commissions and other expenses
Reclassifications before income
tax benefit (expense)		14			8		Income (loss) before taxes
Income tax benefit (expense)		(3	)		(2	)	Federal income tax expense (benefit)
Reclassifications, net of income tax	$	11		$	6		Net income (loss)

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Realized Gain (Loss) (Tables)

3 Months Ended

Mar. 31, 2022

Realized Gain (Loss) [Abstract]

Schedule Of Realized Gain (Loss)

	For the Three
	Months Ended
	March 31,
	2022			2021
Fixed maturity AFS securities:
Gross gains	$	2		$	10
Gross losses		(4	)		(9	)
Credit loss benefit (expense) (1)		(1	)		(2	)
Realized gain (loss) on equity securities (2)		5			10
Credit loss benefit (expense) on mortgage loans on real estate		18			24
Credit loss benefit (expense) on reinsurance-related assets		(5	)		1
Other gain (loss) on investments		(3	)		3
Associated amortization of DAC, VOBA, DSI and DFEL
and changes in other contract holder funds		(7	)		(5	)
Total realized gain (loss) related to certain financial assets		5			32
Realized gain (loss) on the mark-to-market on certain instruments (3)(4)		275			218
Indexed annuity and IUL contracts net derivative results: (5)
Gross gain (loss)		113			32
Associated amortization of DAC, VOBA, DSI and DFEL		(55	)		(13	)
GLB fees ceded to LNBAR and attributed fees:
Gross gain (loss)		(64	)		(50	)
Associated amortization of DAC, VOBA, DSI and DFEL		(8	)		(8	)
Total realized gain (loss)	$	266		$	211

⁽¹⁾Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events.

⁽²⁾Includes market adjustments on equity securities still held of $7 million and $10 million for the three months ended March 31, 2022 and 2021, respectively.

⁽³⁾Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance-related embedded derivatives, mortgage loans on real estate accounted for under the fair value option and trading securities.

⁽⁴⁾Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $(3) million and $1 million for the three months ended March 31, 2022 and 2021, respectively.

⁽⁵⁾Represents the net difference between the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products.

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of March 31, 2022						As of December 31, 2021
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
Fixed maturity AFS securities	$	109,921		$	109,921		$	117,511		$	117,511
Trading securities		4,334			4,334			4,427			4,427
Equity securities		340			340			314			314
Mortgage loans on real estate		17,795			17,539			17,893			18,599
Derivative investments (1)		4,840			4,840			5,437			5,437
Other investments		3,516			3,516			3,439			3,439
Cash and invested cash		1,722			1,722			2,331			2,331
Other assets:
GLB direct embedded derivatives		1,880			1,880			1,963			1,963
GLB ceded embedded derivatives		42			42			56			56
Indexed annuity ceded embedded derivatives		493			493			528			528
LPR ceded derivative		266			266			318			318
Separate account assets		168,879			168,879			182,583			182,583
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(5,574	)		(5,574	)		(6,131	)		(6,131	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(1,815	)		(1,815	)		(1,788	)		(1,788	)
Account values of certain investment contracts		(41,247	)		(41,722	)		(41,164	)		(47,828	)
Short-term debt		(737	)		(737	)		(1,084	)		(1,084	)
Long-term debt		(2,311	)		(2,470	)		(2,334	)		(2,675	)
Reinsurance-related embedded derivatives		(31	)		(31	)		(578	)		(578	)
Other liabilities:
Derivative liabilities (1)		(181	)		(181	)		(249	)		(249	)
GLB ceded embedded derivatives		(1,917	)		(1,917	)		(2,015	)		(2,015	)

⁽¹⁾We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty.

Schedule Of Mortgage Loans With Election Of Fair Value Option

	As of		As of
	March 31,		December 31,
	2022		2021
Fair value	$	537	$	739
Aggregate contractual principal		543		742

Fair Value Of Assets And Liabilities On A Recurring Basis

		As of March 31, 2022
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	81,328			$	8,948		$	90,276
U.S. government bonds			365			23				-			388
State and municipal bonds			-			5,784				-			5,784
Foreign government bonds			-			334				40			374
RMBS			-			2,122				13			2,135
CMBS			-			1,567				17			1,584
ABS			-			7,935				988			8,923
Hybrid and redeemable preferred securities			48			315				94			457
Trading securities			-			3,537				797			4,334
Equity securities			14			228				98			340
Mortgage loans on real estate			-			-				537			537
Derivative investments (1)			-			6,226				272			6,498
Other investments – short-term investments			-			170				-			170
Cash and invested cash			-			1,722				-			1,722
Other assets:
GLB direct embedded derivatives			-			-				1,880			1,880
GLB ceded embedded derivatives			-			-				42			42
Indexed annuity ceded embedded derivatives			-			-				493			493
LPR ceded derivative			-			-				266			266
Separate account assets			506			168,371				-			168,877
Total assets		$	933		$	279,662			$	14,485		$	295,080
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(5,574	)	$	(5,574	)
Reinsurance-related embedded derivatives			-			(31	)			-			(31	)
Other liabilities:
Derivative liabilities (1)			-			(1,570	)			(269	)		(1,839	)
GLB ceded embedded derivatives			-			-				(1,917	)		(1,917	)
Total liabilities		$	-		$	(1,601	)		$	(7,760	)	$	(9,361	)

‎

		As of December 31, 2021
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	88,622			$	8,801		$	97,423
U.S. government bonds			395			5				-			400
State and municipal bonds			-			6,377				-			6,377
Foreign government bonds			-			382				41			423
RMBS			-			2,302				3			2,305
CMBS			-			1,590				-			1,590
ABS			-			7,636				870			8,506
Hybrid and redeemable preferred securities			53			344				90			487
Trading securities			32			3,567				828			4,427
Equity securities			7			216				91			314
Mortgage loans on real estate			-			-				739			739
Derivative investments (1)			-			7,597				149			7,746
Other investments – short-term investments			-			114				-			114
Cash and invested cash			-			2,331				-			2,331
Other assets:
GLB direct embedded derivatives			-			-				1,963			1,963
GLB ceded embedded derivatives			-			-				56			56
Indexed annuity ceded embedded derivatives			-			-				528			528
LPR ceded derivative			-			-				318			318
Separate account assets			646			181,929				-			182,575
Total assets		$	1,133		$	303,012			$	14,477		$	318,622
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(6,131	)	$	(6,131	)
Reinsurance-related embedded derivatives			-			(578	)			-			(578	)
Other liabilities:
Derivative liabilities (1)			-			(2,430	)			(128	)		(2,558	)
GLB ceded embedded derivatives			-			-				(2,015	)		(2,015	)
Total liabilities		$	-		$	(3,008	)		$	(8,274	)	$	(11,282	)

⁽¹⁾Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty.

‎

Fair Value Measured On A Recurring Basis Reconciliation

	For the Three Months Ended March 31, 2022
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net			Value
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	8,801		$	1		$	(351	)	$	363		$	134		$	8,948
Foreign government bonds		41			-			(1	)		-			-			40
RMBS		3			-			-			12			(2	)		13
CMBS		-			-			-			17			-			17
ABS		870			-			(27	)		187			(42	)		988
Hybrid and redeemable preferred
securities		90			-			4			-			-			94
Trading securities		828			(29	)		-			2			(4	)		797
Equity securities		91			15			-			(8	)		-			98
Mortgage loans on real estate		739			(3	)		(1	)		(198	)		-			537
Derivative investments		21			3			(6	)		-			(15	)		3
Other assets:
GLB direct embedded derivatives (3)		1,963			(83	)		-			-			-			1,880
GLB ceded embedded derivatives (3)		56			(14	)		-			-			-			42
Indexed annuity ceded embedded
derivatives (3)		528			(53	)		-			18			-			493
LPR ceded derivative (4)		318			(52	)		-			-			-			266
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (3)		(6,131	)		559			-			(2	)		-			(5,574	)
Other liabilities – GLB ceded embedded
derivatives (3)		(2,015	)		98			-			-			-			(1,917	)
Total, net	$	6,203		$	442		$	(382	)	$	391		$	71		$	6,725

‎

	For the Three Months Ended March 31, 2021
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net			Value
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	7,761		$	1		$	(121	)	$	158		$	(27	)	$	7,772
U.S. government bonds		5			-			-			-			-			5
Foreign government bonds		74			-			(8	)		-			-			66
RMBS		2			-			-			-			(1	)		1
CMBS		1			-			-			-			-			1
ABS		570			-			(7	)		183			(58	)		688
Hybrid and redeemable preferred
securities		103			-			1			(20	)		-			84
Trading securities		643			(3	)		-			66			9			715
Equity securities		57			7			-			(5	)		-			59
Mortgage loans on real estate		832			2			3			37			-			874
Derivative investments		1,542			1,251			-			(132	)		-			2,661
Other assets:
GLB direct embedded derivatives (3)		450			1,381			-			-			-			1,831
GLB ceded embedded derivatives (3)		82			(40	)		-			-			-			42
Indexed annuity ceded embedded
derivatives (3)		550			32			-			(55	)		-			527
LPR ceded derivative (4)		-			(50	)					-			318			268
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (3)		(3,594	)		(626	)		-			50			-			(4,170	)
Other liabilities – GLB ceded embedded
derivatives (3)		(531	)		(1,338	)		-			-			-			(1,869	)
Total, net	$	8,547		$	617		$	(132	)	$	282		$	241		$	9,555

⁽¹⁾The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

⁽²⁾Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽³⁾Gains (losses) from the changes in fair value are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁴⁾Gains (losses) from the changes in fair value are included in benefits on our Consolidated Statements of Comprehensive Income (Loss).

Schedule Of Investment Holdings Movements

	For the Three Months Ended March 31, 2022
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	455		$	(24	)	$	(20	)	$	(43	)	$	(5	)	$	363
RMBS		12			-			-			-			-			12
CMBS		17			-			-			-			-			17
ABS		250			-			-			(56	)		(7	)		187
Trading securities		179			(132	)		-			(45	)		-			2
Equity securities		-			(8	)		-			-			-			(8	)
Mortgage loans on real estate		3			-			-			(201	)		-			(198	)
Other assets – indexed annuity ceded
embedded derivatives		16			-			-			2			-			18
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(128	)		-			-			126			-			(2	)
Total, net	$	804		$	(164	)	$	(20	)	$	(217	)	$	(12	)	$	391

	For the Three Months Ended March 31, 2021
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	304		$	(28	)	$	(15	)	$	(86	)	$	(17	)	$	158
ABS		200			-			-			(17	)		-			183
Hybrid and redeemable preferred
securities		-			(20	)		-			-			-			(20	)
Trading securities		88			(3	)		-			(19	)		-			66
Equity securities		3			(8	)		-			-			-			(5	)
Mortgage loans on real estate		72			(35	)		-			-			-			37
Derivative investments		174			(124	)		(182	)		-			-			(132	)
Other assets – indexed annuity ceded
embedded derivatives		3			-			-			(58	)		-			(55	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(108	)		-			-			158			-			50
Total, net	$	736		$	(218	)	$	(197	)	$	(22	)	$	(17	)	$	282

‎

Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held

	For the Three
	Months Ended
	March 31,
	2022			2021
Trading securities (1)	$	(30	)	$	(2	)
Equity securities (1)		17			6
Mortgage loans on real estate (1)		(3	)		4
Derivative investments (1)		2			1,053
Other assets – LPR ceded derivative (2)		(52	)		(50	)
Embedded derivatives: (1)
Indexed annuity and IUL contracts		84			43
Other assets – GLB direct and ceded		105			1,545
Other liabilities – GLB ceded		(105	)		(1,542	)
Total, net	$	18		$	1,057

⁽¹⁾Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽²⁾Included in benefits on our Consolidated Statements of Comprehensive Income (Loss).

Changes in Unrealized Gains (Losses) Included in OCI

	For the Three
	Months Ended
	March 31,
	2022			2021
Fixed maturity AFS securities:
Corporate bonds	$	(354	)	$	(122	)
Foreign government bonds		(2	)		(8	)
ABS		(27	)		(8	)
Hybrid and redeemable preferred
securities		4			2
Mortgage loans on real estate		-			3
Total, net	$	(379	)	$	(133	)

Components Of The Transfers In And Out Of Level 3

	For the Three								For the Three
	Months Ended								Months Ended
	March 31, 2022								March 31, 2021
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	196	$	(62	)	$	134		$	11	$	(38	)	$	(27	)
RMBS		-		(2	)		(2	)		-		(1	)		(1	)
ABS		-		(42	)		(42	)		-		(58	)		(58	)
Trading securities		-		(4	)		(4	)		12		(3	)		9
Derivative investments		-		(15	)		(15	)		-		-			-
Other assets – LPR ceded derivative		-		-			-			318		-			318
Total, net	$	196	$	(125	)	$	71		$	341	$	(100	)	$	241

Fair Value Inputs Quantitative Information

											Weighted
											Average
	Fair			Valuation	Significant	Assumption or					Input
	Value			Technique	Unobservable Inputs	Input Ranges					Range (1)
Assets
Investments:
Fixed maturity AFS and
trading securities:
Corporate bonds	$	3,765		Discounted cash flow	Liquidity/duration adjustment (2)	0.4	%	-	4.7	%	1.6	%
Foreign government
bonds		40		Discounted cash flow	Liquidity/duration adjustment (2)	1.1	%	-	10.3	%	7.8	%
ABS		17		Discounted cash flow	Liquidity/duration adjustment (2)	1.4	%	-	1.4	%	1.4	%
Hybrid and redeemable
preferred securities		3		Discounted cash flow	Liquidity/duration adjustment (2)	1.5	%	-	1.5	%	1.5	%
Equity securities		21		Discounted cash flow	Liquidity/duration adjustment (2)	3.6	%	-	4.5	%	3.8	%
Other assets:
GLB direct and ceded
embedded derivatives		1,922		Discounted cash flow	Long-term lapse rate (3)	1	%	-	30	%	(10)
					Utilization of guaranteed withdrawals (4)	85	%	-	100	%	94	%
					Claims utilization factor (5)	60	%	-	100	%	(10)
					Premiums utilization factor (5)	80	%	-	115	%	(10)
					NPR (6)	0.14	%	-	1.59	%	1.14	%
					Mortality rate (7)				(9)		(10)
					Volatility (8)	1	%	-	28	%	14.53	%
Indexed annuity ceded
embedded derivatives		493		Discounted cash flow	Lapse rate (3)	0	%	-	9	%	(10)
					Mortality rate (7)				(9)		(10)
LPR ceded derivative		266		Discounted cash flow	Long-term lapse rate (3)	0	%	-	1.65	%	(10)
					NPR (6)	0.14	%	-	1.59	%	1.12	%
					Mortality rate (7)				(9)		(10)
Liabilities
Future contract benefits –
indexed annuity contracts
embedded derivatives	$	(5,564	)	Discounted cash flow	Lapse rate (3)	0	%	-	9	%	(10)
					Mortality rate (7)				(9)		(10)
Other liabilities –
GLB ceded embedded
derivatives		(1,917	)	Discounted cash flow	Long-term lapse rate (3)	1	%	-	30	%	(10)
					Utilization of guaranteed withdrawals (4)	85	%	-	100	%	94	%
					Claims utilization factor (5)	60	%	-	100	%	(10)
					Premiums utilization factor (5)	80	%	-	115	%	(10)
					NPR (6)	0.14	%	-	1.59	%	1.14	%
					Mortality rate (7)				(9)		(10)
					Volatility (8)	1	%	-	28	%	14.53	%

⁽¹⁾Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted.

⁽²⁾The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

⁽³⁾The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapse rates during the surrender charge period.

⁽⁴⁾The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁵⁾The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal.

⁽⁶⁾The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input for direct and ceded embedded derivatives was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. The NPR input for LPR ceded derivative was weighted using a simple average.

⁽⁷⁾The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

⁽⁸⁾The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index.

⁽⁹⁾The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.

⁽¹⁰⁾A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate.

XML

Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Segment Information [Abstract]

Reconciliation Of Revenue From Segments To Consolidated

	For the Three
	Months Ended
	March 31,
	2022		2021
Revenues
Operating revenues:
Annuities	$	1,122	$	1,097
Retirement Plan Services		314		323
Life Insurance		1,715		1,819
Group Protection		1,302		1,253
Other Operations		33		35
Excluded realized gain (loss), pre-tax		210		162
Total revenues	$	4,696	$	4,689

Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)

	For the Three
	Months Ended
	March 31,
	2022			2021
Net Income (Loss)
Income (loss) from operations:
Annuities	$	348		$	297
Retirement Plan Services		52			54
Life Insurance		18			42
Group Protection		(41	)		(26	)
Other Operations		(63	)		(41	)
Excluded realized gain (loss), after-tax		166			127
Benefit ratio unlocking, after-tax		(11	)		11
Net income (loss)	$	469		$	464

XML

Nature of Operations and Basis of Presentation (Details)	3 Months Ended
	Mar. 31, 2022
Lincoln Life & Annuity Company of New York [Member]
Product Information [Line Items]
Ownership percentage	100.00%

XML

Variable Interest Entities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets	$ 3,527	$ 3,449
Limited Partnerships and Limited Liability Companies [Member]
Variable Interest Entity [Line Items]
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets	$ 2,900	$ 2,800

XML

Investments (Narrative) (Details) $ in Millions	3 Months Ended	12 Months Ended	15 Months Ended
	Mar. 31, 2022 USD ($) loan item	Dec. 31, 2021 USD ($) loan item	Mar. 31, 2022 USD ($) loan item
Schedule of Investments [Line Items]
Decrease in gross AFS securities unrealized gains (losses)	$ 2,500
Number of partnerships in alternative investment portfolio | item	309	305	309
Alternative investments as a percentage of overall invested assets	2.00%	2.00%
Fair value of collateral received that we are permitted to sell or re-pledge	$ 22		$ 22
Investment commitments	3,100		3,100
Investment commitments for limited partnerships	1,500		1,500
Investment commitments for private placements	740		740
Investment commitments for mortgage loans on real estate	$ 842		$ 842
Minimum [Member]
Schedule of Investments [Line Items]
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements.	80.00%		80.00%
Maximum [Member]
Schedule of Investments [Line Items]
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements.	95.00%		95.00%
Financial Service [Member] | Investments [Member]
Schedule of Investments [Line Items]
Fair value	$ 20,800	$ 21,700	$ 20,800
Consumer Non-Cyclical Industry [Member] | Investments [Member]
Schedule of Investments [Line Items]
Fair value	$ 16,800	$ 18,600	$ 16,800
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Commercial [Member] | California [Member]
Schedule of Investments [Line Items]
Concentration risk, percentage	26.00%	26.00%
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Commercial [Member] | Texas [Member]
Schedule of Investments [Line Items]
Concentration risk, percentage			9.00%
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Residential [Member] | California [Member]
Schedule of Investments [Line Items]
Concentration risk, percentage	21.00%	22.00%
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Residential [Member] | Florida [Member]
Schedule of Investments [Line Items]
Concentration risk, percentage	12.00%	14.00%
Corporate Bonds [Member]
Schedule of Investments [Line Items]
Percentage of fair value rated as investment grade	96.00%	96.00%	96.00%
Amortized cost of portfolio rated below investment grade	$ 3,500	$ 3,500	$ 3,500
Fair value of portfolio rated below investment grade	$ 3,500	$ 3,700	$ 3,500
Mortgage Loans On Real Estate [Member] | Commercial [Member]
Schedule of Investments [Line Items]
Number of impaired loans | loan	4	4	4
Impaired financing receivable, principal balance	$ 1	$ 1	$ 1
Mortgage Loans On Real Estate [Member] | Residential [Member]
Schedule of Investments [Line Items]
Number of loans past due | loan	63	65	63
Financing Receivable, Number of Loans In Foreclosure | loan	38	34	38
Financing Receivable, 90 Days or More Past Due, Still Accruing	$ 17	$ 15	$ 17
Number of impaired loans | loan	46	50	46
Impaired financing receivable, principal balance	$ 18	$ 22	$ 18
Fixed Maturity AFS Securities [Member] | Federal Home Loan Mortgage Corporation [Member] | Investments [Member]
Schedule of Investments [Line Items]
Fair value	$ 817	$ 910	817
Concentration risk, percentage	1.00%	1.00%
Fixed Maturity AFS Securities [Member] | White Chapel LLC [Member] | Investments [Member]
Schedule of Investments [Line Items]
Fair value	$ 1,000	$ 995	$ 1,000
Concentration risk, percentage	1.00%	1.00%
Fixed Maturity AFS Securities [Member] | Financial Service [Member] | Investments [Member]
Schedule of Investments [Line Items]
Concentration risk, percentage	15.00%	14.00%
Fixed Maturity AFS Securities [Member] | Consumer Non-Cyclical Industry [Member] | Investments [Member]
Schedule of Investments [Line Items]
Concentration risk, percentage	12.00%	12.00%

XML

Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	$ 106,974	$ 104,526
Allowance for Credit Losses	20	19	$ 14	$ 13
Fair Value	109,921	117,511
Fixed Maturity AFS Securities [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	106,974	104,526
Gross Unrealized Gains	5,855	13,431
Gross Unrealized Losses	2,888	427
Allowance for Credit Losses	20	19
Fair Value	109,921	117,511
Corporate Bonds [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Allowance for Credit Losses	16	17	13	12
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	87,914	86,197
Gross Unrealized Gains	4,778	11,569
Gross Unrealized Losses	2,400	326
Allowance for Credit Losses	16	17
Fair Value	90,276	97,423
ABS [Member] | Fixed Maturity AFS Securities [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	9,040	8,433
Gross Unrealized Gains	73	127
Gross Unrealized Losses	189	54
Allowance for Credit Losses	1
Fair Value	8,923	8,506
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	364	348
Gross Unrealized Gains	29	54
Gross Unrealized Losses	5	2
Fair Value	388	400
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	349	365
Gross Unrealized Gains	42	63
Gross Unrealized Losses	17	5
Fair Value	374	423
RMBS [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Allowance for Credit Losses	2	1	$ 1	$ 1
RMBS [Member] | Fixed Maturity AFS Securities [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	2,092	2,132
Gross Unrealized Gains	85	178
Gross Unrealized Losses	40	4
Allowance for Credit Losses	2	1
Fair Value	2,135	2,305
CMBS [Member] | Fixed Maturity AFS Securities [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	1,647	1,542
Gross Unrealized Gains	8	62
Gross Unrealized Losses	71	14
Fair Value	1,584	1,590
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	5,171	5,113
Gross Unrealized Gains	758	1,275
Gross Unrealized Losses	145	11
Fair Value	5,784	6,377
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member]
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	397	396
Gross Unrealized Gains	82	103
Gross Unrealized Losses	21	11
Allowance for Credit Losses	1	1
Fair Value	$ 457	$ 487

XML

Investments (Available-For-Sale Securities By Contractual Maturities) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Available-for-sale Securities, Debt Maturities, Amortized Cost
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	$ 106,974	$ 104,526
Available-for-sale Securities, Debt Maturities, Fair Value
Available-for-sale Securities, Debt Securities, Total	109,921	117,511
Fixed Maturity AFS Securities [Member]
Available-for-sale Securities, Debt Maturities, Amortized Cost
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	106,974	104,526
Available-for-sale Securities, Debt Maturities, Fair Value
Available-for-sale Securities, Debt Securities, Total	109,921	$ 117,511
Fixed Maturity AFS Securities Excluding Structured Securities [Member] | Fixed Maturity AFS Securities [Member]
Available-for-sale Securities, Debt Maturities, Amortized Cost
Due in one year or less	2,877
Due after one year through five years	16,206
Due after five years through ten years	19,655
Due after ten years	55,457
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	94,195
Available-for-sale Securities, Debt Maturities, Fair Value
Due in one year or less	2,877
Due after one year through five years	16,183
Due after five years through ten years	19,532
Due after ten years	58,687
Available-for-sale Securities, Debt Securities, Total	97,279
Structured Securities [Member] | Fixed Maturity AFS Securities [Member]
Available-for-sale Securities, Debt Maturities, Amortized Cost
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total	12,779
Available-for-sale Securities, Debt Maturities, Fair Value
Available-for-sale Securities, Debt Securities, Total	$ 12,642

XML

Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) - Fixed Maturity AFS Securities [Member] $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($) security
Schedule of Available-for-sale Securities [Line Items]
Total number of fixed maturity AFS securities in an unrealized loss position | security	5,054	2,577
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less Than or Equal to Twelve Months	$ 39,938	$ 16,570
Greater Than Twelve Months	4,169	1,781
Fair Value - Total	44,107	18,351
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI
Less Than or Equal to Twelve Months	2,287	308
Greater Than Twelve Months	601	119
Gross Unrealized Losses - Total	2,888	427
Unrealized holding gains (losses) arising during the period	7	8
Corporate Bonds [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less Than or Equal to Twelve Months	29,692	10,611
Greater Than Twelve Months	3,208	1,386
Fair Value - Total	32,900	11,997
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI
Less Than or Equal to Twelve Months	1,890	230
Greater Than Twelve Months	510	96
Gross Unrealized Losses - Total	2,400	326
U.S. Government Bonds [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less Than or Equal to Twelve Months	36	6
Greater Than Twelve Months	24	26
Fair Value - Total	60	32
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI
Less Than or Equal to Twelve Months	1
Greater Than Twelve Months	4	2
Gross Unrealized Losses - Total	5	2
State And Municipal Bonds [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less Than or Equal to Twelve Months	1,231	498
Greater Than Twelve Months	64	19
Fair Value - Total	1,295	517
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI
Less Than or Equal to Twelve Months	134	10
Greater Than Twelve Months	11	1
Gross Unrealized Losses - Total	145	11
Foreign Government Bonds [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less Than or Equal to Twelve Months	69	61
Greater Than Twelve Months	82	56
Fair Value - Total	151	117
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI
Less Than or Equal to Twelve Months	7	3
Greater Than Twelve Months	10	2
Gross Unrealized Losses - Total	17	5
RMBS [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less Than or Equal to Twelve Months	881	261
Greater Than Twelve Months	31	20
Fair Value - Total	912	281
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI
Less Than or Equal to Twelve Months	37	3
Greater Than Twelve Months	3	1
Gross Unrealized Losses - Total	40	4
CMBS [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less Than or Equal to Twelve Months	999	440
Greater Than Twelve Months	215	33
Fair Value - Total	1,214	473
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI
Less Than or Equal to Twelve Months	44	12
Greater Than Twelve Months	27	2
Gross Unrealized Losses - Total	71	14
ABS [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less Than or Equal to Twelve Months	6,935	4,646
Greater Than Twelve Months	475	165
Fair Value - Total	7,410	4,811
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI
Less Than or Equal to Twelve Months	169	49
Greater Than Twelve Months	20	5
Gross Unrealized Losses - Total	189	54
Hybrid And Redeemable Preferred Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less Than or Equal to Twelve Months	95	47
Greater Than Twelve Months	70	76
Fair Value - Total	165	123
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI
Less Than or Equal to Twelve Months	5	1
Greater Than Twelve Months	16	10
Gross Unrealized Losses - Total	$ 21	$ 11

XML

Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) - Fair Value Decline, Greater Than 20% [Member] $ in Millions	Mar. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($) security
Schedule of Available-for-sale Securities [Line Items]
Fair Value - Less than six months	$ 529	$ 12
Fair Value - Twelve months or greater	38	58
Fair Value - Total	567	70
Gross Unrealized Losses - Less than six months	146	3
Gross Unrealized Losses - Twelve months or greater	6	8
Gross Unrealized Losses - Total	$ 152	$ 11
Number of Securities - Less than six months | security	82	6
Number of Securities - Twelve months or greater | security	21	24
Number of Securities - Total | security	103	30

XML

Investments (Changes In Allowance For Credit Losses Of AFS) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Balance as of beginning-of-period	$ 19	$ 13
Additions for securities for which credit losses were not previously recognized	2
Additions from purchases of PCD debt securities
Additions (reductions) for securities for which credit losses were previously recognized		1
Reductions for securities disposed	(1)
Balance as of end-of-period	20	14
Accrued investment income on fixed maturity AFS securities	1,000	1,000
Corporate Bonds [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Balance as of beginning-of-period	17	12
Additions from purchases of PCD debt securities
Additions (reductions) for securities for which credit losses were previously recognized		1
Reductions for securities disposed	(1)
Balance as of end-of-period	16	13
RMBS [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Balance as of beginning-of-period	1	1
Additions for securities for which credit losses were not previously recognized	1
Additions from purchases of PCD debt securities
Balance as of end-of-period	2	1
Other [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Balance as of beginning-of-period	1
Additions for securities for which credit losses were not previously recognized	1
Additions from purchases of PCD debt securities
Balance as of end-of-period	$ 2

XML

Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Mortgage Loans On Real Estate Aging [Abstract]
Allowance for credit losses	$ (77)	$ (95)	$ (183)	$ (203)
Unamortized premium (discount)	22	16
Mark-to-market gains (losses)	(6)	(3)
Total carrying value	17,795	17,893
Financial Asset Not Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	17,692	17,905
30 to 59 Days Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	113	36
60 to 89 Days Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	25	5
90 Or More Days Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	26	29
Commercial [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	16,773	17,072
Allowance for credit losses	(59)	(78)	(171)	(186)
Unamortized premium (discount)	(10)	(11)
Mark-to-market gains (losses)	(6)	(3)
Total carrying value	16,708	16,991
Commercial [Member] | Financial Asset Not Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	16,677	17,068
Commercial [Member] | 30 to 59 Days Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	90	15
Commercial [Member] | 60 to 89 Days Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	16
Residential [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	1,105	919
Allowance for credit losses	(18)	(17)	$ (12)	$ (17)
Unamortized premium (discount)	32	27
Total carrying value	1,087	902
Residential [Member] | Financial Asset Not Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	1,015	837
Residential [Member] | 30 to 59 Days Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	23	21
Residential [Member] | 60 to 89 Days Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	9	5
Residential [Member] | 90 Or More Days Past Due [Member]
Mortgage Loans On Real Estate Aging [Abstract]
Carrying amount of mortgages	$ 26	$ 29

XML

Investments (Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Commercial [Member]
Information about impaired mortgage loans on real estate
Average carrying value for impaired mortgage loans on real estate	$ 21	$ 36

XML

Investments (Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual	$ 26	$ 30
Commercial [Member]
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no ACL
Nonaccrual
Residential [Member]
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual	$ 26	$ 30

XML

Investments (Commercial Mortgage Loans By Year Of Origination) (Details) - Commercial [Member] $ in Millions	Mar. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($) item
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current year	$ 354	$ 2,497
Originated in prior year	2,443	1,493
Originated in two years prior	1,366	3,062
Originated in three years prior	2,835	2,455
Originated in four years prior	2,401	1,824
Originated in five years prior and prior	7,374	5,741
Total	16,773	17,072
Loan-to-value ratio, less than 65% [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current year	329	2,361
Originated in prior year	2,356	1,349
Originated in two years prior	1,346	2,875
Originated in three years prior	2,657	2,272
Originated in four years prior	2,235	1,648
Originated in five years prior and prior	7,024	5,543
Total	$ 15,947	$ 16,048
Originated in current year | item	2.67	3.05
Originated in prior year | item	3.05	3.02
Originated in two years prior | item	2.97	2.14
Originated in three years prior | item	2.14	2.13
Originated in four years prior | item	2.14	2.33
Originated in five years prior and prior | item	2.38	2.41
Loan-to-value ratio, 65% to 75% [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current year	$ 25	$ 136
Originated in prior year	87	144
Originated in two years prior	20	187
Originated in three years prior	178	168
Originated in four years prior	151	149
Originated in five years prior and prior	302	171
Total	$ 763	$ 955
Originated in current year | item	1.57	1.74
Originated in prior year | item	1.50	2.06
Originated in two years prior | item	1.55	1.42
Originated in three years prior | item	1.56	1.59
Originated in four years prior | item	1.56	1.74
Originated in five years prior and prior | item	1.77	1.76
Loan-to-value ratio, 75% to 100% [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in three years prior		$ 15
Originated in four years prior	$ 15	27
Originated in five years prior and prior	48	27
Total	$ 63	$ 69
Originated in three years prior | item		1.02
Originated in four years prior | item	1.02	0.83
Originated in five years prior and prior | item	0.99	1.08

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Investments (Residential Mortgage Loans By Year Of Origination) (Details) - Residential [Member] - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current year	$ 134	$ 469
Originated in prior year	577	131
Originated in two years prior	116	210
Originated in three years prior	187	109
Originated in four years prior	91
Total	1,105	919
Performing [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current year	134	467
Originated in prior year	574	129
Originated in two years prior	113	189
Originated in three years prior	170	104
Originated in four years prior	88
Total	1,079	889
Nonperforming [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current year		2
Originated in prior year	3	2
Originated in two years prior	3	21
Originated in three years prior	17	5
Originated in four years prior	3
Total	$ 26	$ 30

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Investments (Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Schedule of Investments [Line Items]
Balance as of beginning-of-year	$ 95	$ 203
Additions (reductions) from provision for credit loss expense	(18)	(20)
Additions from purchases of PCD mortgage loans on real estate
Balance as of end-of-year	77	183
Financing Receivable, Credit Loss, Expense (Reversal)	(18)	20
Loss on disposal of mortgage loans on real estate		4
Accrued investment income excluded from credit losses	49	50
Commercial [Member]
Schedule of Investments [Line Items]
Balance as of beginning-of-year	78	186
Additions (reductions) from provision for credit loss expense	(19)	(15)
Additions from purchases of PCD mortgage loans on real estate
Balance as of end-of-year	59	171
Residential [Member]
Schedule of Investments [Line Items]
Balance as of beginning-of-year	17	17
Additions (reductions) from provision for credit loss expense	1	(5)
Additions from purchases of PCD mortgage loans on real estate
Balance as of end-of-year	$ 18	$ 12

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Investments (Credit Loss Expense Incurred) (Details) - Fixed Maturity AFS Securities [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Gross credit loss benefit (expense)	$ (1)	$ (2)
Net credit loss benefit (expense)	(1)	(2)
Corporate Bonds [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Gross credit loss benefit (expense)	1	$ (2)
RMBS [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Gross credit loss benefit (expense)	(1)
ABS [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Gross credit loss benefit (expense)	$ (1)

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Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Carrying Value
Collateral payable for derivative investments	$ 4,767	$ 5,565
Securities pledged under securities lending agreements	258	241
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI')	3,880	3,130
Total payables for collateral on investments	8,905	8,936
Fair Value
Collateral payable for derivative investments	4,767	5,565
Securities pledged under securities lending agreements	250	235
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI')	5,924	4,876
Total payables for collateral on investments	$ 10,941	$ 10,676
Percentage of the fair value of domestic securities obtained as collateral under securities lending agreements.	102.00%
Percentage of the fair value of foreign securities obtained as collateral under securities lending agreements.	105.00%
Maximum [Member]
Fair Value
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities	115.00%
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan	175.00%
Minimum [Member]
Fair Value
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities	105.00%
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan	155.00%

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Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Increase (decrease) in payables for collateral on investments
Collateral payable for derivative investments	$ (798)	$ 248
Securities pledged under securities lending agreements	17	30
Investments pledged for FHLBI	750	1,100
Total increase (decrease) in payables for collateral on investments	$ (31)	$ 1,378

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Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Lending	$ 258	$ 241
Corporate Bonds [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Lending	245	239
Equity Securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Lending	2	1
Foreign Government Bonds [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Lending	11	1
Overnight and Continuous [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Lending	258	241
Overnight and Continuous [Member] | Corporate Bonds [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Lending	245	239
Overnight and Continuous [Member] | Equity Securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Lending	2	1
Overnight and Continuous [Member] | Foreign Government Bonds [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Lending	$ 11	$ 1

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Derivative Instruments (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Credit Derivatives [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	$ 81,000,000
Cash flow hedge, reclassified to earnings, net	0	$ 0
Exposure	56,000,000
Collateral Requirement If Netting Agreements Not In Place	1,000,000
Non-performance Risk Adjustment	0
Exposure Associated With Collateralization Events	$ 0		$ 0
Indexed Annuity [Member]
Credit Derivatives [Line Items]
Derivative term	6 years

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Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	$ 185,855
Interest Rate Contracts [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	91,038
Foreign Currency Contracts [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	4,563
Equity Market Contracts [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	90,198
Credit Contracts [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	56
Total Derivative Instruments [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	185,855	$ 182,114
Asset Fair Value	9,179	10,611
Liability Fair Value	9,361	11,282
Derivative investments [Member] | Interest Rate Contracts [Member] | Non-Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	88,588	82,786
Asset Fair Value	631	897
Liability Fair Value	281	176
Derivative investments [Member] | Foreign Currency Contracts [Member] | Non-Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	383	487
Asset Fair Value	9	7
Liability Fair Value	1	2
Derivative investments [Member] | Equity Market Contracts [Member] | Non-Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	90,198	92,278
Asset Fair Value	5,530	6,461
Liability Fair Value	1,301	2,108
Derivative investments [Member] | Credit Contracts [Member] | Non-Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	56	49
Derivative investments [Member] | Cash Flow Hedges [Member] | Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	6,104	5,988
Asset Fair Value	328	381
Liability Fair Value	108	62
Derivative investments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	1,924	2,009
Asset Fair Value	15	98
Liability Fair Value	68	11
Derivative investments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	4,180	3,979
Asset Fair Value	313	283
Liability Fair Value	40	51
Derivative investments [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Notional Amounts	526	526
Liability Fair Value	148	210
Other Assets [Member] | LPR Ceded Derivative [Member] | Non-Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Asset Fair Value	266	318
Other Assets [Member] | GLB Direct Embedded Derivatives [Member] | Non-Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Asset Fair Value	1,880	1,963
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Non-Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Asset Fair Value	42	56
Liability Fair Value	1,917	2,015
Reinsurance Related Embedded Derivatives [Member] | Reinsurance Related [Member] | Non-Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Liability Fair Value	31	578
Future Contract Benefits [Member] | Indexed Annuity And IUL Contracts [Member] | Non-Qualifying Hedges [Member]
Outstanding derivative instruments with off-balance-sheet risks
Asset Fair Value	493	528
Liability Fair Value	$ 5,574	$ 6,131

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Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) $ in Millions	Mar. 31, 2022 USD ($)
Maturity of the notional amounts of derivative financial instruments
Remaining Life Less Than 1 Year	$ 79,242
Remaining Life - 1 - 5 Years	49,998
Remaining Life - 6 - 10 Years	29,280
Remaining Life - 11 - 30 Years	18,318
Remaining Life - Over 30 Years	9,017
Remaining Life - Total Years	185,855
Interest Rate Contracts [Member]
Maturity of the notional amounts of derivative financial instruments
Remaining Life Less Than 1 Year	25,425
Remaining Life - 1 - 5 Years	29,454
Remaining Life - 6 - 10 Years	19,844
Remaining Life - 11 - 30 Years	16,315
Remaining Life - Total Years	91,038
Foreign Currency Contracts [Member]
Maturity of the notional amounts of derivative financial instruments
Remaining Life Less Than 1 Year	294
Remaining Life - 1 - 5 Years	556
Remaining Life - 6 - 10 Years	1,627
Remaining Life - 11 - 30 Years	1,992
Remaining Life - Over 30 Years	94
Remaining Life - Total Years	4,563
Equity Market Contracts [Member]
Maturity of the notional amounts of derivative financial instruments
Remaining Life Less Than 1 Year	53,523
Remaining Life - 1 - 5 Years	19,963
Remaining Life - 6 - 10 Years	7,778
Remaining Life - 11 - 30 Years	11
Remaining Life - Over 30 Years	8,923
Remaining Life - Total Years	90,198
Credit Contracts [Member]
Maturity of the notional amounts of derivative financial instruments
Remaining Life - 1 - 5 Years	25
Remaining Life - 6 - 10 Years	31
Remaining Life - Total Years	$ 56

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Derivative Instruments (Cumulative Basis Adjustments For Fair Value Hedges) (Details) - Fixed Maturity AFS Securities [Member] - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Amortized cost of the hedged Assets / (Liabilities)	$ 701	$ 764
Cumulative fair value hedging adjustments included in the amortized cost of the hedged Assets / (Liabilities)	$ 148	$ 211

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Derivative Instruments (Change In Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Change in our unrealized gain on derivative instruments in accumulated OCI
Balance as of beginning-of-year	$ 6,544
Income tax benefit (expense)	(85)	$ (99)
Balance as of end-of-year	1,551
Unrealized Gain (Loss) on Derivative Instruments [Member]
Change in our unrealized gain on derivative instruments in accumulated OCI
Balance as of beginning-of-year	240	42
Change in foreign currency exchange rate adjustment	75	47
Change in DAC, VOBA, DSI and DFEL	14	14
Income tax benefit (expense)	15	43
Associated amortization of DAC, VOBA, DSI and DFEL	(3)	(1)
Income tax benefit (expense)	(3)	(2)
Balance as of end-of-year	174	(126)
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member]
Change in our unrealized gain on derivative instruments in accumulated OCI
Unrealized holding gains (losses) arising during the period	(142)	(203)
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Net Investment Income [Member]
Change in our unrealized gain on derivative instruments in accumulated OCI
Reclassification adjustment for gains (losses) included in net income (loss)	1	1
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member]
Change in our unrealized gain on derivative instruments in accumulated OCI
Unrealized holding gains (losses) arising during the period	(17)	(63)
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Net Investment Income [Member]
Change in our unrealized gain on derivative instruments in accumulated OCI
Reclassification adjustment for gains (losses) included in net income (loss)	13	10
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Realized Gain (Loss) [Member]
Change in our unrealized gain on derivative instruments in accumulated OCI
Reclassification adjustment for gains (losses) included in net income (loss)	$ 3	$ (2)

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Derivative Instruments (Effects Of Qualifying And Non-Qualifying Hedges) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Realized Gain (Loss) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total line items in which the effects of fair value or cash flow hedges are recorded	$ 266	$ 211
Net Investment Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total line items in which the effects of fair value or cash flow hedges are recorded	1,353	1,447
Benefits Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total line items in which the effects of fair value or cash flow hedges are recorded	2,199	2,182
Interest Rate Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Non-qualifying hedges gain (loss)	(821)	(1,159)
Equity Market Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Non-qualifying hedges gain (loss)	(324)	1,242
LPR Ceded Derivative [Member] | Benefits Expense [Member] | Non-Qualifying Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Non-qualifying hedges gain (loss)	52	50
GLB Embedded Derivative [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Non-qualifying hedges gain (loss)	1	3
Reinsurance Related [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Non-qualifying hedges gain (loss)	546	342
Indexed Annuity And IUL Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Non-qualifying hedges gain (loss)	506	(594)
Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Net Investment Income [Member] | Qualifying Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Hedged items	(63)	(84)
Derivatives designated as hedging instruments	63	84
Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Net Investment Income [Member] | Qualifying Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain or (loss) reclassified from AOCI into income	1	1
Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Realized Gain (Loss) [Member] | Qualifying Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain or (loss) reclassified from AOCI into income	3	(2)
Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Net Investment Income [Member] | Qualifying Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain or (loss) reclassified from AOCI into income	$ 13	$ 10

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Derivative Instruments (Open Credit Default Swap Liabilities) (Details) $ in Millions	Mar. 31, 2022 USD ($) item
Summary Of Credit Derivatives
Number of instruments | item	2
Fair value	$ 1
Maximum potential payout	56
Credit Default Swap Liabilities [Member]
Summary Of Credit Derivatives
Maximum potential payout	$ 56
BBB+ [Member] | 12/20/2026 Maturity [Member] | Credit Default Swap Liabilities [Member]
Summary Of Credit Derivatives
Number of instruments | item	1
Maximum potential payout	$ 25
BBB+ [Member] | 6/20/2027 Maturity [Member] | Credit Default Swap Liabilities [Member]
Summary Of Credit Derivatives
Number of instruments | item	1
Fair value	$ 1
Maximum potential payout	$ 31

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Derivative Instruments (Collateral Support Agreements) (Details) $ in Millions	Mar. 31, 2022 USD ($)
Credit risk related contingent features collateral
Maximum potential payout	$ 56
Credit Default Swap Liabilities [Member]
Credit risk related contingent features collateral
Maximum potential payout	56
Maximum collateral potentially required to post	$ 56

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Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Credit Derivatives [Line Items]
Collateral Posted by Counter-Party (Held by LNL)	$ 4,767	$ 5,564
Collateral Posted by LNL (Held by Counter-Party)	(79)	(44)
AA- [Member]
Credit Derivatives [Line Items]
Collateral Posted by Counter-Party (Held by LNL)	2,126	2,346
Collateral Posted by LNL (Held by Counter-Party)	(1)
A+ [Member]
Credit Derivatives [Line Items]
Collateral Posted by Counter-Party (Held by LNL)	2,362	2,762
Collateral Posted by LNL (Held by Counter-Party)	(78)	(44)
A [Member]
Credit Derivatives [Line Items]
Collateral Posted by Counter-Party (Held by LNL)	279	456
Collateral Posted by LNL (Held by Counter-Party)

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Derivative Instruments (Schedule Of Offsetting Assets And Liabilities) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Financial Assets
Derivative Instruments, Gross amount of recognized assets	$ 6,199	$ 7,938
Derivative Instruments, Gross amounts offset	(1,625)	(2,241)
Derivative Instruments, Net amount of assets	4,574	5,697
Derivative Instruments, Cash collateral	(4,574)	(5,564)
Derivative Instruments, Non-cash collateral		(133)
Derivative Instruments, Net amount
Embedded Derivative Instruments, Gross amount of recognized assets	2,415	2,547
Embedded Derivative Instruments, Gross amounts offset
Embedded Derivative Instruments, Net amount of assets	2,415	2,547
Embedded Derivative Instruments, Cash collateral
Embedded Derivative Instruments, Non-cash collateral
Embedded Derivative Instruments, Net amount	2,415	2,547
Total, Gross amount of recognized assets	8,614	10,485
Total, Gross amounts offset	(1,625)	(2,241)
Total, Net amount of assets	6,989	8,244
Total, Cash collateral	(4,574)	(5,564)
Total, Non-cash collateral		(133)
Total, Net amount	2,415	2,547
Derivative Liability, Fair Value of Collateral	193
Financial Liabilities
Derivative Instruments, Gross amount of recognized liabilities	246	349
Derivative Instruments, Gross amounts offset	(33)	(68)
Derivative Instruments, Net amount of liabilities	213	281
Derivative Instruments, Cash collateral	(79)	(44)
Derivative Instruments, Non-cash collateral
Derivative Instruments, Net amount	134	237
Embedded Derivative Instruments, Gross amount of recognized liabilities	7,522	8,724
Embedded Derivative Instruments, Gross amounts offset
Embedded Derivative Instruments, Net amount of liabilities	7,522	8,724
Embedded Derivative Instruments, Cash collateral
Embedded Derivative Instruments, Non-cash collateral
Embedded Derivative Instruments, Net amount	7,522	8,724
Total, Gross amount of recognized liabilities	7,768	9,073
Total, Gross amounts offset	(33)	(68)
Total, Net amount of liabilities	7,735	9,005
Total, Cash collateral	(79)	(44)
Total, Net amount	7,656	8,961
Other Assets [Member]
Financial Assets
Derivative Instruments, Net amount of assets		$ 260
Other Liabilities [Member]
Financial Assets
Total, Net amount of assets	$ 266

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Federal Income Taxes (Narrative) (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Federal Income Taxes [Abstract]
Effective tax rate	15.00%	18.00%
Federal statutory rate	21.00%	21.00%

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Guaranteed Benefit Features (Narrative) (Details)	Mar. 31, 2022	Dec. 31, 2021
Guaranteed Benefit Features [Abstract]
Percent of permanent life insurance in force	37.00%	37.00%

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Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value	$ 132,017	$ 143,744
Return of Net Deposits [Member]
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value	109,059	117,503
Net amount at risk	$ 232	$ 84
Average attained age of contract holders	67 years	67 years
Minimum Return [Member]
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value	$ 91	$ 102
Net amount at risk	$ 12	$ 11
Average attained age of contract holders	79 years	79 years
Guaranteed minimum return	5.00%	5.00%
Anniversary Contract Value [Member]
Net Amount at Risk by Product and Guarantee [Line Items]
Total account value	$ 26,308	$ 28,788
Net amount at risk	$ 1,211	$ 400
Average attained age of contract holders	73 years	73 years

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Guaranteed Benefit Features (Summary Of Guaranteed Death Benefit Liabilities) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Guaranteed Benefit Features [Abstract]
Balance as of beginning-of-year	$ 132	$ 121
Changes in reserves	38	8
Benefits paid	(7)	(5)
Balance as of end-of-period	$ 163	$ 124

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Guaranteed Benefit Features (Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items]
Total	$ 132,017	$ 143,744
Domestic Equity [Member]
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items]
Total	70,938	77,290
International Equity [Member]
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items]
Total	19,271	21,223
Fixed Income [Member]
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items]
Total	$ 41,808	$ 45,231

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Liability For Unpaid Claims (Narrative) (Details)	Mar. 31, 2022
Minimum [Member]
Discount rate	2.50%
Maximum [Member]
Discount rate	5.00%

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Liability For Unpaid Claims (Changes In Liability For Unpaid Claims) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Liability For Unpaid Claims [Abstract]
Balance as of beginning-of-year	$ 6,280	$ 5,934
Reinsurance recoverable	147	151
Net balance as of beginning-of-year	6,133	5,783
Incurred related to:
Current year	1,060	1,025
Interest	39	42
All other incurred	(75)	(101)
Total incurred	1,024	966
Paid related to:
Current year	(297)	(302)
Prior years	(663)	(601)
Total paid	(960)	(903)
Net balance as of end-of-period	6,197	5,846
Reinsurance recoverable	145	151
Balance as of end-of-period	$ 6,342	$ 5,997

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Contingencies and Commitments (Narrative) (Details) - USD ($) $ in Millions	Jan. 19, 2022	Mar. 31, 2022
Loss Contingencies [Line Items]
Litigation Settlement, Amount Awarded to Other Party	$ 92.5
Pending Litigation [Member]
Loss Contingencies [Line Items]
Loss contingency, estimate		$ 120.0

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Shares and Stockholder's Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 22,380
Balance	17,829	$ 22,210
Unrealized Gain (Loss) on AFS Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	6,315	8,993
Income tax benefit (expense)	1,338	817
Reclassification adjustment for gains (losses) included in net income (loss)	(2)	1
Associated amortization of DAC, VOBA, DSI, and DFEL	(4)	(4)
Income tax benefit (expense)	1	1
Balance	1,389	5,981
Unrealized Gain (Loss) on AFS Securities [Member] | Gains (Losses) Arising During The Year [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications and taxes	(10,039)	(7,077)
Unrealized Gain (Loss) on AFS Securities [Member] | Change in Foreign Currency Exchange Rate Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications and taxes	(70)	(41)
Unrealized Gain (Loss) on AFS Securities [Member] | Change in Deferred Insurance Charges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications and taxes	3,840	3,287
Unrealized Gain (Loss) on Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	240	42
Income tax benefit (expense)	15	43
Reclassification adjustment for gains (losses) included in net income (loss)	17	9
Associated amortization of DAC, VOBA, DSI, and DFEL	(3)	(1)
Income tax benefit (expense)	(3)	(2)
Balance	174	(126)
Unrealized Gain (Loss) on Derivative Instruments [Member] | Gains (Losses) Arising During The Year [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications and taxes	(159)	(266)
Unrealized Gain (Loss) on Derivative Instruments [Member] | Change in Foreign Currency Exchange Rate Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications and taxes	75	47
Unrealized Gain (Loss) on Derivative Instruments [Member] | Change in Deferred Insurance Charges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications and taxes	14	14
Funded Status of Employee Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(11)	(14)
Reclassification adjustment for gains (losses) included in net income (loss)		(1)
Income tax benefit (expense)	(1)
Balance	$ (12)	$ (15)

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Shares and Stockholder's Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment income	$ 1,353	$ 1,447
Realized gain (loss)	266	211
Commissions and other expenses	(1,192)	(1,171)
Income (loss) from continuing operations before taxes	554	563
Income tax benefit (expense)	(85)	(99)
Net income (loss)	469	464
Unrealized Gain (Loss) on AFS Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from continuing operations before taxes	(6)	(3)
Income tax benefit (expense)	1	1
Net income (loss)	(5)	(2)
Unrealized Gain (Loss) on Derivative Instruments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from continuing operations before taxes	14	8
Income tax benefit (expense)	(3)	(2)
Net income (loss)	11	6
Gross Reclassification [Member] | Unrealized Gain (Loss) on AFS Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gain (loss)	(2)	1
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total gross reclassifications	17	9
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Interest Rate Contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment income	1	1
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Foreign Currency Contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment income	13	10
Realized gain (loss)	3	(2)
Associated Amortization of DAC, VOBA, DSI and DFEL [Member] | Unrealized Gain (Loss) on AFS Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gain (loss)	(4)	(4)
Associated Amortization of DAC, VOBA, DSI and DFEL [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Commissions and other expenses	$ (3)	$ (1)

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Realized Gain (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Realized gain (loss) related to certain investments
Realized gain (loss) on equity securities	$ 5	$ 10
Credit loss benefit (expense)	18	(20)
Other gain (loss) on investments	(3)	3
Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds	(7)	(5)
Total realized gain (loss) related to certain financial assets	5	32
Realized gain (loss) on the mark-to-market on certain instruments	275	218
Indexed annuity and IUL contracts net derivatives results:
Gross gain (loss)	113	32
Associated amortization of DAC, VOBA, DSI, and DFEL	(55)	(13)
GLB fees ceded to LNBAR and attributed fees:
Gross gain (loss)	(64)	(50)
Associated amortization of DAC, VOBA, DSI, and DFEL	(8)	(8)
Total realized gain (loss)	266	211
Mortgage Loans On Real Estate [Member]
Realized gain (loss) related to certain investments
Credit loss benefit (expense)	18	24
Realized gain (loss) on the mark-to-market on certain instruments	(3)	1
Reinsurance Related Assets [Member]
Realized gain (loss) related to certain investments
Credit loss benefit (expense)	(5)	1
Fixed Maturity AFS Securities [Member]
Realized gain (loss) related to certain investments
AFS securities. Gross gains	2	10
AFS securities. Gross losses	(4)	(9)
Credit loss benefit (expense)	(1)	(2)
Equity Securities [Member]
Realized gain (loss) related to certain investments
Realized gain (loss) on equity securities	$ 7	$ 10

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Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans with fair value option in non-accrual	$ 0
Loans with fair value option, 90 days past due and still accruing	0
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	$ 0
Liabilities measured at fair value	$ 0	$ 0

XML

Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Assets
Fixed maturity AFS securities	$ 109,921	$ 117,511
Trading securities	4,334	4,427
Equity securities	340	314
Mortgage loans on real estate	17,795	17,893
Derivative investments	4,840	5,437
Other investments	3,527	3,449
Carrying Value [Member]
Assets
Trading securities	4,334	4,427
Equity securities	340	314
Mortgage loans on real estate	17,795	17,893
Derivative investments	4,840	5,437
Other investments	3,516	3,439
Cash and invested cash	1,722	2,331
Indexed annuity ceded embedded derivatives	493	528
Separate account assets	168,879	182,583
Future contract benefits:
Indexed annuity and IUL contracts embedded derivatives	(5,574)	(6,131)
Other contract holder funds:
Remaining guaranteed interest and similar contracts	(1,815)	(1,788)
Account values of certain investment contracts	(41,247)	(41,164)
Short-term debt	(737)	(1,084)
Long-term debt	(2,311)	(2,334)
Reinsurance related embedded derivatives	(31)	(578)
Other liabilities - derivative liabilities	(181)	(249)
Fair Value [Member]
Assets
Trading securities	4,334	4,427
Equity securities	340	314
Mortgage loans on real estate	17,539	18,599
Derivative investments	4,840	5,437
Other investments	3,516	3,439
Cash and invested cash	1,722	2,331
Indexed annuity ceded embedded derivatives	493	528
Separate account assets	168,879	182,583
Future contract benefits:
Indexed annuity and IUL contracts embedded derivatives	(5,574)	(6,131)
Other contract holder funds:
Remaining guaranteed interest and similar contracts	(1,815)	(1,788)
Account values of certain investment contracts	(41,722)	(47,828)
Short-term debt	(737)	(1,084)
Long-term debt	(2,470)	(2,675)
Reinsurance related embedded derivatives	(31)	(578)
Other liabilities - derivative liabilities	(181)	(249)
Fixed Maturity AFS Securities [Member] | Carrying Value [Member]
Assets
Fixed maturity AFS securities	109,921	117,511
Fixed Maturity AFS Securities [Member] | Fair Value [Member]
Assets
Fixed maturity AFS securities	109,921	117,511
GLB Direct Embedded Derivatives [Member] | Carrying Value [Member]
Assets
Other assets - GLB embedded derivatives	1,880	1,963
GLB Direct Embedded Derivatives [Member] | Fair Value [Member]
Assets
Other assets - GLB embedded derivatives	1,880	1,963
GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member]
Assets
Other assets - GLB embedded derivatives	42	56
Other contract holder funds:
Other liabilities - GLB embedded derivatives	(1,917)	(2,015)
GLB Ceded Embedded Derivatives [Member] | Fair Value [Member]
Assets
Other assets - GLB embedded derivatives	42	56
Other contract holder funds:
Other liabilities - GLB embedded derivatives	(1,917)	(2,015)
LPR Ceded Derivative [Member] | Carrying Value [Member]
Assets
Other assets - GLB embedded derivatives	266	318
LPR Ceded Derivative [Member] | Fair Value [Member]
Assets
Other assets - GLB embedded derivatives	$ 266	$ 318

XML

Fair Value Of Financial Instruments (Schedule of Mortgage Loans With Election Of Fair Value Option) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Fair Value of Financial Instruments [Abstract]
Fair value	$ 537	$ 739
Aggregate contractual principal	$ 543	$ 742

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Fair Value of Financial Instruments (Fair Value Of Assets And Liabilities On A Recurring Basis) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	$ 295,080	$ 318,622
Liabilities measured at fair value	(9,361)	(11,282)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	933	1,133
Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	279,662	303,012
Liabilities measured at fair value	(1,601)	(3,008)
Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	14,485	14,477
Liabilities measured at fair value	(7,760)	(8,274)
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	90,276	97,423
Corporate Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	81,328	88,622
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	8,948	8,801
ABS [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	8,923	8,506
ABS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	7,935	7,636
ABS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	988	870
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	388	400
U.S. Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	365	395
U.S. Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	23	5
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	374	423
Foreign Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	334	382
Foreign Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	40	41
RMBS [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	2,135	2,305
RMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	2,122	2,302
RMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	13	3
CMBS [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	1,584	1,590
CMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	1,567	1,590
CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	17
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	5,784	6,377
State And Municipal Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	5,784	6,377
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	457	487
Hybrid And Redeemable Preferred Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	48	53
Hybrid And Redeemable Preferred Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	315	344
Hybrid And Redeemable Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	94	90
Trading Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	4,334	4,427
Trading Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value		32
Trading Securities [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	3,537	3,567
Trading Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	797	828
Equity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	340	314
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	14	7
Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	228	216
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	98	91
Mortgage Loans On Real Estate [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	537	739
Mortgage Loans On Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	537	739
Derivative Investments [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	6,498	7,746
Derivative Investments [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	6,226	7,597
Derivative Investments [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	272	149
Other Investments [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	170	114
Other Investments [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	170	114
Cash And Cash [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	1,722	2,331
Cash And Cash [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	1,722	2,331
GLB Direct Embedded Derivatives [Member] | Other Assets [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	1,880	1,963
GLB Direct Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	1,880	1,963
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	42	56
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Liabilities measured at fair value	(1,917)	(2,015)
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	42	56
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Liabilities measured at fair value	(1,917)	(2,015)
LPR Ceded Derivative [Member] | Other Assets [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	266	318
LPR Ceded Derivative [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	266	318
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Liabilities measured at fair value	(5,574)	(6,131)
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Future Contract Benefits [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Liabilities measured at fair value	(5,574)	(6,131)
Separate Account Assets [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	168,877	182,575
Separate Account Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	506	646
Separate Account Assets [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	168,371	181,929
Reinsurance Related Embedded Derivatives [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Liabilities measured at fair value	(31)	(578)
Reinsurance Related Embedded Derivatives [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Liabilities measured at fair value	(31)	(578)
Derivative Liabilities [Member] | Other Liabilities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Liabilities measured at fair value	(1,839)	(2,558)
Derivative Liabilities [Member] | Significant Observable Inputs (Level 2) [Member] | Other Liabilities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Liabilities measured at fair value	(1,570)	(2,430)
Derivative Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Liabilities measured at fair value	(269)	(128)
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	493	528
Indexed Annuity Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Assets measured at fair value	$ 493	$ 528

XML

Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	$ 6,203	$ 8,547
Items Included in Net Income	442	617
Gains (Losses) in OCI and Other	(382)	(132)
Issuances, Sales, Maturities, Settlements, Calls, Net	391	282
Transfers Into or Out of Level 3, Net	71	241
Ending Fair Value	6,725	9,555
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	8,801	7,761
Items Included in Net Income	1	1
Gains (Losses) in OCI and Other	(351)	(121)
Issuances, Sales, Maturities, Settlements, Calls, Net	363	158
Transfers Into or Out of Level 3, Net	134	(27)
Ending Fair Value	8,948	7,772
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value		5
Ending Fair Value		5
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	41	74
Gains (Losses) in OCI and Other	(1)	(8)
Ending Fair Value	40	66
RMBS [Member] | Fixed Maturity AFS Securities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	3	2
Issuances, Sales, Maturities, Settlements, Calls, Net	12
Transfers Into or Out of Level 3, Net	(2)	(1)
Ending Fair Value	13	1
CMBS [Member] | Fixed Maturity AFS Securities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value		1
Issuances, Sales, Maturities, Settlements, Calls, Net	17
Ending Fair Value	17	1
ABS [Member] | Fixed Maturity AFS Securities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	870	570
Gains (Losses) in OCI and Other	(27)	(7)
Issuances, Sales, Maturities, Settlements, Calls, Net	187	183
Transfers Into or Out of Level 3, Net	(42)	(58)
Ending Fair Value	988	688
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	90	103
Gains (Losses) in OCI and Other	4	1
Issuances, Sales, Maturities, Settlements, Calls, Net		(20)
Ending Fair Value	94	84
Trading Securities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	828	643
Items Included in Net Income	(29)	(3)
Issuances, Sales, Maturities, Settlements, Calls, Net	2	66
Transfers Into or Out of Level 3, Net	(4)	9
Ending Fair Value	797	715
Equity Securities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	91	57
Items Included in Net Income	15	7
Issuances, Sales, Maturities, Settlements, Calls, Net	(8)	(5)
Ending Fair Value	98	59
Mortgage Loans On Real Estate [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	739	832
Items Included in Net Income	(3)	2
Gains (Losses) in OCI and Other	(1)	3
Issuances, Sales, Maturities, Settlements, Calls, Net	(198)	37
Ending Fair Value	537	874
Derivative Investments [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	21	1,542
Items Included in Net Income	3	1,251
Gains (Losses) in OCI and Other	(6)
Issuances, Sales, Maturities, Settlements, Calls, Net		(132)
Transfers Into or Out of Level 3, Net	(15)
Ending Fair Value	3	2,661
GLB Direct Embedded Derivatives [Member] | Other Assets [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	1,963	450
Items Included in Net Income	(83)	1,381
Ending Fair Value	1,880	1,831
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value		(531)
Items Included in Net Income		(1,338)
Ending Fair Value		(1,869)
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	56	82
Items Included in Net Income	(14)	(40)
Ending Fair Value	42	42
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	(2,015)
Items Included in Net Income	98
Ending Fair Value	(1,917)
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	528	550
Items Included in Net Income	(53)	32
Issuances, Sales, Maturities, Settlements, Calls, Net	18	(55)
Ending Fair Value	493	527
LPR Ceded Derivative [Member] | Other Assets [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	318
Items Included in Net Income	(52)	(50)
Transfers Into or Out of Level 3, Net		318
Ending Fair Value	266	268
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member]
Level 3 Unobservable Input Reconciliation
Beginning Fair Value	(6,131)	(3,594)
Items Included in Net Income	559	(626)
Issuances, Sales, Maturities, Settlements, Calls, Net	(2)	50
Ending Fair Value	$ (5,574)	$ (4,170)

XML

Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances	$ 804	$ 736
Sales	(164)	(218)
Maturities	(20)	(197)
Settlements	(217)	(22)
Calls	(12)	(17)
Total	391	282
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances	455	304
Sales	(24)	(28)
Maturities	(20)	(15)
Settlements	(43)	(86)
Calls	(5)	(17)
Total	363	158
RMBS [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances	12
Total	12
CMBS [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances	17
Total	17
ABS [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances	250	200
Settlements	(56)	(17)
Calls	(7)
Total	187	183
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Sales		(20)
Total		(20)
Mortgage Loans On Real Estate [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances	3	72
Sales		(35)
Settlements	(201)
Total	(198)	37
Trading Securities [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances	179	88
Sales	(132)	(3)
Settlements	(45)	(19)
Total	2	66
Equity Securities [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances		3
Sales	(8)	(8)
Total	(8)	(5)
Derivative Investments [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances		174
Sales		(124)
Maturities		(182)
Total		(132)
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances	16	3
Settlements	2	(58)
Total	18	(55)
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract]
Issuances	(128)	(108)
Settlements	126	158
Total	$ (2)	$ 50

XML

Fair Value of Financial Instruments (Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held
Change in unrealized gains (losses) included in net income	$ 18	$ 1,057
Trading Securities [Member]
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held
Change in unrealized gains (losses) included in net income	(30)	(2)
Equity Securities [Member]
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held
Change in unrealized gains (losses) included in net income	17	6
Mortgage Loans On Real Estate [Member]
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held
Change in unrealized gains (losses) included in net income	(3)	4
Derivative Investments [Member]
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held
Change in unrealized gains (losses) included in net income	2	1,053
Indexed Annuity And IUL Contracts [Member]
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held
Change in unrealized gains (losses) included in net income	84	43
Other Assets [Member] | GLB Direct And Ceded [Member]
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held
Change in unrealized gains (losses) included in net income	105	1,545
Other Assets [Member] | LPR Ceded Derivative [Member]
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held
Change in unrealized gains (losses) included in net income	(52)	(50)
Other Liabilities [Member] | GLB Direct And Ceded [Member]
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held
Change in unrealized gains (losses) included in net income	$ (105)	$ (1,542)

XML

Fair Value of Financial Instruments (Changes in Unrealized Gains (Losses) Included in OCI) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items]
Unrealized gains (losses) included in OCI, net	$ (379)	$ (133)
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items]
Unrealized gains (losses) included in OCI, net	(354)	(122)
Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items]
Unrealized gains (losses) included in OCI, net	(2)	(8)
Fixed Maturity AFS Securities [Member] | ABS [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items]
Unrealized gains (losses) included in OCI, net	(27)	(8)
Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items]
Unrealized gains (losses) included in OCI, net	$ 4	2
Fixed Maturity AFS Securities [Member] | Mortgage Loans On Real Estate [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items]
Unrealized gains (losses) included in OCI, net		$ 3

XML

Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract]
Transfers Into Level 3	$ 196	$ 341
Transfers Out of Level 3	(125)	(100)
Total	71	241
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract]
Transfers Into Level 3	196	11
Transfers Out of Level 3	(62)	(38)
Total	134	(27)
RMBS [Member] | Fixed Maturity AFS Securities [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract]
Transfers Out of Level 3	(2)	(1)
Total	(2)	(1)
ABS [Member] | Fixed Maturity AFS Securities [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract]
Transfers Out of Level 3	(42)	(58)
Total	(42)	(58)
Trading Securities [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract]
Transfers Into Level 3		12
Transfers Out of Level 3	(4)	(3)
Total	(4)	9
Derivative Investments [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract]
Transfers Out of Level 3	(15)
Total	$ (15)
LPR Ceded Derivative [Member] | Other Assets [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract]
Transfers Into Level 3		318
Total		$ 318

XML

Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) - Significant Unobservable Inputs (Level 3) [Member] - Discounted Cash Flow Valuation Technique [Member] $ in Millions	Mar. 31, 2022 USD ($) item
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member]
Assets Fair Value Disclosure [Abstract]
Assets Fair Value Disclosure | $	$ 3,765
Corporate Bonds [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.004
Corporate Bonds [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.047
Corporate Bonds [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.016
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member]
Assets Fair Value Disclosure [Abstract]
Assets Fair Value Disclosure | $	$ 40
Foreign Government Bonds [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.011
Foreign Government Bonds [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.103
Foreign Government Bonds [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.078
ABS [Member] | Fixed Maturity AFS Securities [Member]
Assets Fair Value Disclosure [Abstract]
Assets Fair Value Disclosure | $	$ 17
ABS [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.014
ABS [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.014
ABS [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.014
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member]
Assets Fair Value Disclosure [Abstract]
Assets Fair Value Disclosure | $	$ 3
Hybrid And Redeemable Preferred Securities [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.015
Hybrid And Redeemable Preferred Securities [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.015
Hybrid And Redeemable Preferred Securities [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Fixed maturity AFS and trading securities, measurement input	0.015
Equity Securities [Member]
Assets Fair Value Disclosure [Abstract]
Assets Fair Value Disclosure | $	$ 21
Equity Securities [Member] | Minimum [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Equity securities, measurement input	0.036
Equity Securities [Member] | Maximum [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Equity securities, measurement input	0.045
Equity Securities [Member] | Weighted Average [Member] | Liquidity/Duration Adjustment [Member]
Liabilities Fair Value Disclosure [Abstract]
Equity securities, measurement input	0.038
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member]
Assets Fair Value Disclosure [Abstract]
Assets Fair Value Disclosure | $	$ 493
Indexed Annuity Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0
Indexed Annuity Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.09
GLB Direct And Ceded Embedded Derivatives [Member] | Other Assets [Member]
Assets Fair Value Disclosure [Abstract]
Assets Fair Value Disclosure | $	$ 1,922
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.01
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.85
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Claims Utilization Factor [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.60
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.80
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | NPR [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.0014
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Volatility [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.01
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.30
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	1
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Claims Utilization Factor [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	1
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	1.15
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | NPR [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.0159
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Volatility [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.28
GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.94
GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | NPR [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.0114
GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | Volatility [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.1453
LPR Ceded Derivative [Member] | Other Assets [Member]
Assets Fair Value Disclosure [Abstract]
Assets Fair Value Disclosure | $	$ 266
LPR Ceded Derivative [Member] | Minimum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0
LPR Ceded Derivative [Member] | Minimum [Member] | Other Assets [Member] | NPR [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.0014
LPR Ceded Derivative [Member] | Maximum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.0165
LPR Ceded Derivative [Member] | Maximum [Member] | Other Assets [Member] | NPR [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.0159
LPR Ceded Derivative [Member] | Weighted Average [Member] | Other Assets [Member] | NPR [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative assets, measurement input	0.0112
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member]
Liabilities Fair Value Disclosure [Abstract]
Liabilities measured at fair value | $	$ (1,917)
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Long-term Lapse Rate [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.01
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.85
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.60
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.80
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | NPR [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.0014
GLB Direct Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Volatility [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.01
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Long-term Lapse Rate [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.30
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	1
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	1
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	1.15
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | NPR [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.0159
GLB Direct Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Volatility [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.28
GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.94
GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | NPR [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.0114
GLB Direct Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | Volatility [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.1453
Future Contract Benefits - Indexed Annuity Embedded Derivatives [Member] | Future Contract Benefits [Member]
Liabilities Fair Value Disclosure [Abstract]
Liabilities measured at fair value | $	$ (5,564)
Future Contract Benefits - Indexed Annuity Embedded Derivatives [Member] | Minimum [Member] | Future Contract Benefits [Member] | Long-term Lapse Rate [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0
Future Contract Benefits - Indexed Annuity Embedded Derivatives [Member] | Maximum [Member] | Future Contract Benefits [Member] | Long-term Lapse Rate [Member]
Liabilities Fair Value Disclosure [Abstract]
Derivative liability, measurement input	0.09

XML

Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Total revenues	$ 4,696	$ 4,689
Excluded Realized Gain (Loss), Pre-Tax [Member]
Segment Reporting Information [Line Items]
Total revenues	210	162
Annuities Segment [Member]
Segment Reporting Information [Line Items]
Total revenues	1,122	1,097
Retirement Plan Services Segment [Member]
Segment Reporting Information [Line Items]
Total revenues	314	323
Life Insurance Segment [Member]
Segment Reporting Information [Line Items]
Total revenues	1,715	1,819
Group Protection Segment [Member]
Segment Reporting Information [Line Items]
Total revenues	1,302	1,253
Other Operations [Member]
Segment Reporting Information [Line Items]
Total revenues	$ 33	$ 35

XML

Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract]
Net income (loss)	$ 469	$ 464
Annuities Segment [Member]
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract]
Net income (loss)	348	297
Retirement Plan Services Segment [Member]
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract]
Net income (loss)	52	54
Life Insurance Segment [Member]
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract]
Net income (loss)	18	42
Group Protection Segment [Member]
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract]
Net income (loss)	(41)	(26)
Other Operations [Member]
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract]
Net income (loss)	(63)	(41)
Excluded Realized Gain (Loss), After-Tax [Member]
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract]
Net income (loss)	166	127
Benefit Ratio Unlocking, After-Tax [Member]
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract]
Net income (loss)	$ (11)	$ 11