Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of gross fair value of derivative instruments, including embedded derivatives [Table Text Block]

The Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:



	December 31, 2018						December 31, 2017
	Notional		Gross Fair Value				Notional		Gross Fair Value
			Assets⁽¹⁾		Liabilities⁽²⁾⁽³⁾				Assets⁽¹⁾		Liabilities⁽²⁾⁽³⁾
	(in millions)
Derivatives designated as hedging instruments
Interest rate contracts	$	675	$	7	$	—	$	675	$	23	$	—
Foreign exchange contracts	103		1		—		87		—		4
Total qualifying hedges	778		8		—		762		23		4

Derivatives not designated as hedging instruments
Interest rate contracts	58,244		789		424		66,043		1,081		416
Equity contracts	54,079		1,718		2,154		59,292		2,423		2,883
Credit contracts	1,209		—		18		721		—		2
Foreign exchange contracts	4,908		59		35		4,163		36		23
Other contracts	2		—		—		452		—		—
Total non-designated hedges	118,442		2,566		2,631		130,671		3,540		3,324

Embedded derivatives
GMWB and GMAB ⁽⁴⁾	N/A		—		328		N/A		—		(49		)
IUL	N/A		—		628		N/A		—		601
Indexed annuities	N/A		—		17		N/A		—		5
SMC	N/A		—		6		N/A		—		10
Total embedded derivatives	N/A		—		979		N/A		—		567
Total derivatives	$	119,220	$	2,574	$	3,610	$	131,433	$	3,563	$	3,895

N/A Not applicable.

⁽¹⁾The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets.

⁽²⁾

The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, and indexed annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets.

⁽³⁾The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $1.4 billion and $1.3 billion as of December 31, 2018 and 2017, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral. See Note 5 for information about derivatives held by consolidated VIEs.

⁽⁴⁾

The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2018 included $646 million of individual contracts in a liability position and $318 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2017 included $443 million of individual contracts in a liability position and $492 million of individual contracts in an asset position.

Schedule of gain (loss) on derivative instruments [Table Text Block]

The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations:



	Net Investment Income			Banking and Deposit Interest Expense			Distribution Expenses			Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses			General and Administrative Expense
	(in millions)
Year Ended December 31, 2018
Interest rate contracts	$	12		$	—		$	—		$	—		$	(312	)	$	—
Equity contracts	—			(4		)	(42		)	(49		)	302			(7		)
Credit contracts	—			—			—			—			7			—
Foreign exchange contracts	(2		)	—			—			—			1			(9		)
Other contracts	—			—			—			—			(3		)	—
GMWB and GMAB embedded derivatives	—			—			—			—			(377		)	—
IUL embedded derivatives	—			—			—			63			—			—
Indexed annuity embedded derivatives	—			—			—			3			—			—
SMC embedded derivatives	—			4			—			—			—			—
Total gain (loss)	$	10		$	—		$	(42	)	$	17		$	(382	)	$	(16	)

Year Ended December 31, 2017
Interest rate contracts	$	(3	)	$	—		$	—		$	—		$	1		$	—
Equity contracts	(10		)	4			54			75			(1,081		)	11
Credit contracts	—			—			—			—			(22		)	—
Foreign exchange contracts	—			—			3			—			(23		)	6
Other contracts	—			—			—			—			(2		)	—
GMWB and GMAB embedded derivatives	—			—			—			—			663			—
IUL embedded derivatives	—			—			—			(45		)	—			—
SMC embedded derivatives	—			(4		)	—			—			—			—
Total gain (loss)	$	(13	)	$	—		$	57		$	30		$	(464	)	$	17

Year Ended December 31, 2016
Interest rate contracts	$	3		$	—		$	—		$	—		$	36		$	—
Equity contracts	(1		)	2			23			20			(897		)	6
Credit contracts	—			—			—			—			2			—
Foreign exchange contracts	—			—			(1		)	—			—			14
Other contracts	—			—			—			—			(2		)	—
GMWB and GMAB embedded derivatives	—			—			—			—			237			—
IUL embedded derivatives	—			—			—			15			—			—
SMC embedded derivatives	—			(2		)	—			—			—			—
Total gain (loss)	$	2		$	—		$	22		$	35		$	(624	)	$	20

Schedule of payments to make and receive for options [Table Text Block]

The deferred premium associated with certain of the above options and swaptions is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of December 31, 2018:



	Premiums Payable		Premiums Receivable
	(in millions)
2019	$	294	$	170
2020	216		132
2021	187		119
2022	226		200
2023	142		42
2024-2028	404		17
Total	$	1,469	$	680

Fair value hedges [Member]

Derivative Instruments, Gain (Loss)

Schedule of gain (loss) on derivative instruments [Table Text Block]

The following table presents the amounts recognized in income related to fair value hedges:



Derivatives designated as hedging instruments	Location of Gain Recorded into Income	Amount of Gain Recognized in Income on Derivatives
		Years Ended December 31,
		2018		2017		2016
		(in millions)
Interest rate contracts	Interest and debt expense	$	11	$	16	$	19