Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 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:

	September 30, 2023						December 31, 2022
	Notional		Gross Fair Value				Notional		Gross Fair Value
			Assets (1)		Liabilities (2)				Assets (1)		Liabilities (2)
	(in millions)
Derivatives designated as hedging instruments
Equity contracts - cash flow hedges	$	1	$	—	$	—	$	6	$	—	$	1
Foreign exchange contracts – net investment hedges	61		—		—		85		—		—
Total qualifying hedges	62		—		—		91		—		1
Derivatives not designated as hedging instruments
Interest rate contracts	46,267		257		496		101,307		267		355
Equity contracts	80,379		3,909		2,709		68,493		2,704		2,376
Credit contracts	3,414		95		1		1,857		13		2
Foreign exchange contracts	3,336		31		5		3,171		36		14
Total non-designated hedges	133,396		4,292		3,211		174,828		3,020		2,747
Embedded derivatives
IUL	N/A		—		787		N/A		—		739
Fixed deferred indexed annuities and deposit receivables	N/A		48		48		N/A		48		47
Structured variable annuities (3)	N/A		—		300		N/A		—		(137)
SMC	N/A		—		8		N/A		—		4
Total embedded derivatives	N/A		48		1,143		N/A		48		653
Total derivatives	$	133,458	$	4,340	$	4,354	$	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 September 30, 2023 included $459 million of individual contracts in a liability position and $159 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 Income		Banking and Deposit Interest Expense		Distribution Expenses		Interest Credited to Fixed Accounts		Benefits, Claims, Losses and Settlement Expenses		Change in Fair Value of Market Risk Benefits		Interest and Debt Expense		General and Administrative Expense
	(in millions)
Three Months Ended September 30, 2023
Interest rate contracts	$	—	$	—	$	—	$	—	$	(7)	$	(1,073)	$	—	$	—
Equity contracts	1		(1)		(44)		(19)		(119)		245		—		(5)
Credit contracts	—		—		(2)		—		—		154		—		—
Foreign exchange contracts	—		—		—		—		—		51		—		—
IUL embedded derivatives	—		—		—		28		—		—		—		—
Structured variable annuity embedded derivatives	—		—		—		—		246		—		—		—
SMC embedded derivatives	—		1		—		—		—		—		—		—
Total gain (loss)	$	1	$	—	$	(46)	$	9	$	120	$	(623)	$	—	$	(5)
Three Months Ended September 30, 2022
Interest rate contracts	$	—	$	—	$	—	$	—	$	(19)	$	(734)	$	—	$	—
Equity contracts	3		(1)		(41)		(23)		(61)		402		—		(5)
Credit contracts	—		—		1		—		—		92		—		—
Foreign exchange contracts	1		—		—		—		—		112		—		(8)
IUL embedded derivatives	—		—		—		48		—		—		—		—
Structured variable annuity embedded derivatives	—		—		—		—		173		—		—		—
SMC embedded derivatives	—		1		—		—		—		—		—		—
Total gain (loss)	$	4	$	—	$	(40)	$	25	$	93	$	(128)	$	—	$	(13)

	Net Investment Income		Banking and Deposit Interest Expense		Distribution Expenses		Interest Credited to Fixed Accounts		Benefits, Claims, Losses and Settlement Expenses		Change in Fair Value of Market Risk Benefits		Interest and Debt Expense		General and Administrative Expense
	(in millions)
Nine Months Ended September 30, 2023
Interest rate contracts	$	—	$	—	$	—	$	—	$	(15)	$	(1,307)	$	—	$	—
Equity contracts	(1)		2		44		35		391		(655)		—		3
Credit contracts	—		—		(1)		—		—		187		—		—
Foreign exchange contracts	—		—		—		—		—		63		—		6
IUL embedded derivatives	—		—		—		(2)		—		—		—		—
Fixed deferred indexed annuity and deposit receivables embedded derivatives	—		—		—		(2)		—		—		—		—
Structured variable annuity embedded derivatives	—		—		—		—		(443)		—		—		—
SMC embedded derivatives	—		(3)		—		—		—		—		—		—
Total gain (loss)	$	(1)	$	(1)	$	43	$	31	$	(67)	$	(1,712)	$	—	$	9
Nine Months Ended September 30, 2022
Interest rate contracts	$	1	$	—	$	(3)	$	—	$	(20)	$	(2,795)	$	(1)	$	—
Equity contracts	10		(1)		(224)		(135)		(350)		1,416		—		(29)
Credit contracts	—		—		(2)		—		—		288		—		—
Foreign exchange contracts	2		—		—		—		—		219		—		(13)
IUL embedded derivatives	—		—		—		242		—		—		—		—
Fixed deferred indexed annuity and deposit receivables embedded derivatives	—		—		—		3		—		—		—		—
Structured variable annuity embedded derivatives	—		—		—		—		939		—		—		—
SMC embedded derivatives	—		1		—		—		—		—		—		—
Total gain (loss)	$	13	$	—	$	(229)	$	110	$	569	$	(872)	$	(1)	$	(42)

Summary of payments to make and receive for options

The following is a summary of the payments the Company is scheduled to make and receive for these options as of September 30, 2023:

	Premiums Payable		Premiums Receivable
	(in millions)
2023 (1)	$	4	$	—
2024	129		23
2025	119		20
2026	247		88
2027	19		—
2028 - 2030	408		—
Total	$	926	$	131

(1) 2023 amounts represent the amounts payable and receivable for the period from October 1, 2023 to December 31, 2023.