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Derivatives and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2020
Derivative Instruments, Gain (Loss)  
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, 2020December 31, 2019
NotionalGross Fair ValueNotionalGross Fair Value
Assets (1)
Liabilities (2)(3)
Assets (1)
Liabilities (2)(3)
(in millions)
Derivatives designated as hedging instruments
Interest rate contracts - fair value hedges$— $— $— $375 $3 $— 
Foreign exchange contracts - net investment hedges
32 — 2 93 — 3 
Total qualifying hedges32 — 2 468 3 3 
Derivatives not designated as hedging instruments
Interest rate contracts
77,951 1,755 734 57,979 1,452 418 
Equity contracts
57,254 4,090 3,571 61,921 2,884 3,098 
Credit contracts
2,297 2 1 1,419 4 — 
Foreign exchange contracts
3,423 23 4 3,412 18 6 
Other contracts
— — — 1 — — 
Total non-designated hedges140,925 5,870 4,310 124,732 4,358 3,522 
Embedded derivatives
GMWB and GMAB (4)
N/A— 2,316 N/A— 763 
IULN/A— 935 N/A— 881 
Fixed deferred indexed annuitiesN/A— 52 N/A— 46 
Structured variable annuitiesN/A— 70 N/A— — 
SMCN/A— 8 N/A— 14 
Total embedded derivatives
N/A— 3,381 N/A— 1,704 
Total derivatives
$140,957 $5,870 $7,693 $125,200 $4,361 $5,229 
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 fixed deferred indexed annuity and structured variable 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 $3.7 billion and $2.3 billion as of December 31, 2020 and 2019, respectively. See Note 16 for additional information related to master netting arrangements and cash collateral.
(4) The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2020 included $2.4 billion of individual contracts in a liability position and $67 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2019 included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position.
Schedule of gain (loss) on derivative instruments [Table Text Block]
The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations:
Net Investment IncomeBanking and Deposit Interest ExpenseDistribution ExpensesInterest Credited to Fixed AccountsBenefits, Claims, Losses and Settlement ExpensesGeneral and Administrative Expense
(in millions)
Year Ended December 31, 2020
Interest rate contracts$(1)$— $2 $— $1,633 $— 
Equity contracts(1)1 100 55 (744)15 
Credit contracts— — 1 — (106)— 
Foreign exchange contracts1 — — — (8)10 
Other contracts— — — — — — 
GMWB and GMAB embedded derivatives— — — — (1,553)— 
IUL embedded derivatives— — — 7 — — 
Fixed deferred indexed annuity embedded derivatives— — — (4)— — 
SMC embedded derivatives— (1)— — — — 
Structured variable annuity embedded derivatives— — — — (91)— 
Total gain (loss)$(1)$— $103 $58 $(869)$25 
Year Ended December 31, 2019
Interest rate contracts$(34)$— $— $— $1,097 $— 
Equity contracts— 11 99 117 (1,547)16 
Credit contracts— — — — (73)— 
Foreign exchange contracts— — — — (30)(1)
Other contracts— — — — — — 
GMWB and GMAB embedded derivatives— — — — (435)— 
IUL embedded derivatives— — — (140)— — 
Fixed deferred indexed annuity embedded derivatives— — — (8)— — 
SMC embedded derivatives— (9)— — — — 
Total gain (loss)$(34)$2 $99 $(31)$(988)$15 
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)
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 semiannually 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, 2020:
 Premiums PayablePremiums Receivable
 (in millions)
2021$153 $106 
2022207 205 
202351 43 
2024141 26 
2025126 7 
2026-2028254 — 
Total$932 $387 
Schedule of impact of fair value hedges
The following table is a summary of the impact of derivatives designated as hedges on the Consolidated Statements of Operations:
Years Ended December 31,
20202019
Total interest and debt expense per Consolidated Statements of Operations
$162 $214 
Gain (loss) on interest rate contracts designated as fair value hedges:
Hedged items$1 $5 
Derivatives designated as fair value hedges(1)(5)
Gain (loss) on interest rate contracts designated as cash flow hedges:
Amount of gain (loss) reclassified from AOCI into income$1 $2