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Derivatives and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of notional value and gross fair value of derivative instruments, including embedded derivatives
Generally, 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:
June 30, 2023December 31, 2022
NotionalGross Fair ValueNotionalGross Fair Value
Assets (1)
Liabilities (2)
Assets (1)
Liabilities (2)
(in millions)
Derivatives designated as hedging instruments
Equity contracts - cash flow hedges$3 $— $— $6 $— $1 
Foreign exchange contracts – net investment hedges62 — 2 85 — — 
Total qualifying hedges65 — 2 91 — 1 
Derivatives not designated as hedging instruments
Interest rate contracts
65,092 263 375 101,307 267 355 
Equity contracts
81,894 4,188 3,094 68,493 2,704 2,376 
Credit contracts
3,701 23 1 1,857 13 2 
Foreign exchange contracts
2,986 19 10 3,171 36 14 
Total non-designated hedges153,673 4,493 3,480 174,828 3,020 2,747 
Embedded derivatives
IULN/A— 809 N/A— 739 
Fixed deferred indexed annuities and deposit receivablesN/A49 50 N/A48 47 
Structured variable annuities (3)
N/A— 557 N/A— (137)
SMCN/A— 9 N/A— 4 
Total embedded derivatives
N/A49 1,425 N/A48 653 
Total derivatives
$153,738 $4,542 $4,907 $174,919 $3,068 $3,401 
N/A  Not applicable.
(1) The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded embedded derivative assets related to deposit receivables is included in Receivables.
(2) The fair value of freestanding derivative liabilities is included in Other liabilities. The fair value of IUL, fixed deferred indexed annuity and structured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims. The fair value of the SMC embedded derivative liability is included in Customer deposits.
(3) The fair value of the structured variable annuity embedded derivatives as of June 30, 2023 included $617 million of individual contracts in a liability position and $60 million of individual contracts in an asset position. The fair value of the structured variable annuity embedded derivatives as of December 31, 2022 included $194 million of individual contracts in a liability position and $331 million of individual contracts in an asset position.
Summary of impact of derivatives not designated as hedging instruments, including embedded derivatives
The following tables present a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Operations:
Net Investment IncomeBanking and Deposit Interest ExpenseDistribution ExpensesInterest Credited to Fixed AccountsBenefits, Claims, Losses and Settlement ExpensesChange in Fair Value of Market Risk BenefitsInterest and Debt ExpenseGeneral and Administrative Expense
(in millions)
Three Months Ended June 30, 2023
Interest rate contracts$— $— $— $— $(14)$(481)$— $— 
Equity contracts(1)2 45 35 346 (438)— 5 
Credit contracts— — — — — 66 — — 
Foreign exchange contracts— — — — — 20 — 3 
IUL embedded derivatives— — — (22)— — — — 
Fixed deferred indexed annuity and deposit receivables embedded derivatives— — — (1)— — — — 
Structured variable annuity embedded derivatives— — — — (426)— — — 
SMC embedded derivatives— (2)— — — — — — 
Total gain (loss)$(1)$— $45 $12 $(94)$(833)$— $8 
Three Months Ended June 30, 2022
Interest rate contracts$1 $— $(3)$— $(1)$(943)$(1)$— 
Equity contracts(1)— (122)(96)(297)798 — (17)
Credit contracts— — (2)— — 99 — — 
Foreign exchange contracts2 — — — — 76 — (5)
IUL embedded derivatives— — — 137 — — — — 
Fixed deferred indexed annuity and deposit receivables embedded derivatives— — — 2 — — — — 
Structured variable annuity embedded derivatives— — — — 643 — — — 
Total gain (loss)$2 $— $(127)$43 $345 $30 $(1)$(22)
Net Investment IncomeBanking and Deposit Interest ExpenseDistribution ExpensesInterest Credited to Fixed AccountsBenefits, Claims, Losses and Settlement ExpensesChange in Fair Value of Market Risk BenefitsInterest and Debt ExpenseGeneral and Administrative Expense
(in millions)
Six Months Ended June 30, 2023
Interest rate contracts$— $— $— $— $(8)$(234)$— $— 
Equity contracts(2)3 88 54 510 (900)— 8 
Credit contracts— — 1 — — 33 — — 
Foreign exchange contracts— — — — — 12 — 6 
IUL embedded derivatives— — — (30)— — — — 
Fixed deferred indexed annuity and deposit receivables embedded derivatives— — — (2)— — — — 
Structured variable annuity embedded derivatives— — — — (689)— — — 
SMC embedded derivatives— (4)— — — — — — 
Total gain (loss)$(2)$(1)$89 $22 $(187)$(1,089)$— $14 
Six Months Ended June 30, 2022
Interest rate contracts$1 $— $(3)$— $(1)$(2,061)$(1)$— 
Equity contracts7 — (183)(112)(289)1,014 — (24)
Credit contracts— — (3)— — 196 — — 
Foreign exchange contracts1 — — — — 107 — (5)
IUL embedded derivatives— — — 194 — — — — 
Fixed deferred indexed annuity and deposit receivables embedded derivatives— — — 3 — — — — 
Structured variable annuity embedded derivatives— — — — 766 — — — 
Total gain (loss)$9 $— $(189)$85 $476 $(744)$(1)$(29)
Summary of payments to make and receive for options and swaptions The following is a summary of the payments the Company is scheduled to make and receive for these options as of June 30, 2023:
 Premiums PayablePremiums Receivable
(in millions)
2023 (1)
$9 $— 
2024130 23 
2025120 20 
2026247 88 
202720 — 
2028 - 2030388 — 
Total$914 $131 
(1) 2023 amounts represent the amounts payable and receivable for the period from July 1, 2023 to December 31, 2023.