DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments by Category

The following table presents the gross notional amount and estimated fair value of the Company’s derivatives:

Derivative Instruments by Category

	December 31, 2022						December 31, 2021
			Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in millions)
Derivatives: designated for hedge accounting (1)
Cash flow hedges:
Currency swaps	$	1,431	$	99	$	85	$	921	$	7	$	42
Interest swaps	955		—		294		955		—		395
Total: designated for hedge accounting	2,386		99		379		1,876		7		437
Derivatives: not designated for hedge accounting (1)
Equity contracts:
Futures	4,320		—		—		2,213		—		—
Swaps	11,159		38		—		13,310		5		—
Options	39,863		7,549		3,396		48,380		12,015		5,059
Interest rate contracts:
Futures	12,693		—		—		12,455		—		—
Swaps	1,498		—		166		1,876		—		45
Credit contracts:
Credit default swaps	102		—		2		619		2		3
Currency contracts:
Currency swaps	397		4		13		541		1		—
Other freestanding contracts:
Margin	—		193		—		—		102		—
Collateral	—		142		4,469		—		178		6,154
Total: Not designated for hedge accounting	70,032		7,926		8,046		79,394		12,303		11,261
Embedded derivatives:
Amounts due from reinsurers (5)	—		4,114		—		—		5,813		—
GMIB reinsurance contracts (2)	—		1,306		—		—		2,068		—
GMxB derivative features liability (3)	—		—		5,773		—		—		8,525
SCS, SIO, MSO and IUL indexed features (4)	—		—		4,077		—		—		6,641
Total embedded derivatives	—		5,420		9,850		—		7,881		15,166
Total derivative instruments	$	72,418	$	13,445	$	18,275	$	81,270	$	20,191	$	26,864

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(1)Reported in other invested assets in the consolidated balance sheets.

(2)Reported in GMIB reinsurance contract asset in the consolidated balance sheets.

(3)Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets.

(4)Reported in policyholders’ account balances in the consolidated balance sheets.

(5)Represents GMIB NLG ceded related to the Venerable Transaction.

The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss).

Derivative Instruments by Category

	Year Ended December 31, 2022								Year Ended December 31, 2021						Year Ended December 31, 2020
	Net Derivatives Gain(Losses) (1) (2)		NII (3)		Interest Credited To Policyholders Account Balances		AOCI		Net Derivatives Gain(Losses) (1) (2)		Interest Credited To Policyholders Account Balances		AOCI		Net Derivatives Gain(Losses) (1) (2)		Interest Credited To Policyholders Account Balances		AOCI
	(in millions)
Derivatives: Designated for hedge accounting
Cash flow hedges:
Currency Swaps	$	19	$	7	$	(4)	$	24	$	(2)	$	(45)	$	5	$	—	$	—	$	—
Interest Swaps	(86)		—		—		206		(69)		—		(87)		(9)		—		(87)
Total: Designated for hedge accounting	(67)		7		(4)		230		(71)		(45)		(82)		(9)		—		(87)
Derivatives: Not designated for hedge accounting
Equity contracts:
Futures	349		—		—		—		(607)		—		—		(955)		—		—
Swaps	2,626		—		—		—		(3,608)		—		—		(3,353)		—		—
Options	(2,752)		—		—		—		3,883		—		—		1,663		—		—
Interest rate contracts:
Futures	(1,645)		—		—		—		(727)		—		—		1,745		—		—
Swaps	(492)		—		—		—		(2,316)		—		—		2,832		—		—
Credit contracts:
Credit default swaps	8		—		—		—		1		—		—		—		—		—
Currency contracts:
Currency swaps	10		—		—		—		3		—		—		(2)		—		—
Total: Not designated for hedge accounting	(1,896)		—		—		—		(3,371)		—		—		1,939		—		—
Embedded Derivatives:
Amounts due from reinsurers	(1,706)		—		—		—		517		—		—		—		—		—
GMIB reinsurance contracts	(726)		—		—		—		(777)		—		—		472		—		—
GMxB derivative features liability	3,062		—		—		—		2,792		—		—		(2,238)		—		—
SCS, SIO, MSO and IUL indexed features	2,857		—		—		—		(3,760)		—		—		(1,693)		—		—
Total Embedded Derivatives	3,487		—		—		—		(1,228)		—		—		(3,459)		—		—
Total derivatives instruments	$	1,524	$	7	$	(4)	$	230	$	(4,670)	$	(45)	$	(82)	$	(1,529)	$	—	$	(87)

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(1)Reported in net derivative gains (losses) in the consolidated statements of income (loss).

(2)For the years ended December 31, 2022, 2021 and 2020, investment fees of $16 million, $15 million and $12 million, respectively, are reported in net derivative gains (losses) in the consolidated statements of income (loss).

(3)Net Investment Income (“NII”)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents a roll-forward of cash flow hedges recognized in AOCI.

Roll-forward of Cash flow hedges in AOCI

	Year Ended December 31,
	2022		2021		2020
	(in millions)
Balance, beginning of period	$	(208)	$	(126)	$	(38)
Amount recorded in AOCI
Currency swaps	29		(35)		—
Interest swaps	102		(183)		(108)
Total amount recorded in AOCI	131		(218)		(108)
Amount reclassified from AOCI to income
Currency swaps (1)	(5)		40		—
Interest swaps (1)	104		96		20
Total amount reclassified from AOCI to income	99		136		20
Balance, end of period (2)	$	22	$	(208)	$	(126)

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(1)    Currency swaps reclassified from AOCI to income are reported in net investment income in the consolidated statements of income (loss). Interest swaps reclassified from AOCI to income are reported in net derivative gains (losses) in the consolidated statements of income (loss).

(2) The Company does not estimate the amount of the deferred losses in AOCI at years ended December 31, 2022, 2021 and 2020 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated.

Schedule of Offsetting Financial Assets and Liabilities and Derivative Instruments

The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of December 31, 2022 and 2021:

Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of December 31, 2022

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (1)		Net Amount
	(in millions)
Assets:
Derivative assets	$	8,024	$	6,980	$	1,044	$	(848)	$	196
Other financial assets	1,791		—		1,791		—		1,791
Other invested assets	$	9,815	$	6,980	$	2,835	$	(848)	$	1,987
Liabilities:
Derivative liabilities	$	7,577	$	6,980	$	597	$	—	$	597
Other financial liabilities	3,354		—		3,354		—		3,354
Other liabilities	$	10,931	$	6,980	$	3,951	$	—	$	3,951

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(1)Financial instruments sent (held).

As of December 31, 2021

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (1)		Net Amount
	(in millions)
Assets:
Derivative assets	$	12,309	$	10,724	$	1,585	$	(961)	$	624
Other financial assets	1,325		—		1,325		—		1,325
Other invested assets	$	13,634	$	10,724	$	2,910	$	(961)	$	1,949
Liabilities:
Derivative liabilities	$	10,738	$	10,724	$	14	$	—	$	14
Other financial liabilities	2,064		—		2,064		—		2,064
Other liabilities	$	12,802	$	10,724	$	2,078	$	—	$	2,078

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(1)Financial instruments sent (held).