DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments by Category

The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments:

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

Derivative Instruments by Category

	September 30, 2022						December 31, 2021
			Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in millions)
Derivatives: (1)
Equity contracts:
Futures	$	223	$	—	$	—	$	295	$	—	$	—
Options	51		1		2		59		8		5
Interest rate contracts:
Futures	156		—		—		120		—		—
Other contracts:
Margin	—		18		—		—		18		—
Collateral	—		1		—		—		—		3
Total:	430		20		2		474		26		8
Embedded derivatives:
GMxB derivative features liability (2)	—		—		(9)		—		—		—
MSO and IUL indexed features (3)	—		—		30		—		—		132
Total embedded derivatives	—		—		21		—		—		132
Total derivative instruments	$	430	$	20	$	23	$	474	$	26	$	140

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

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

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

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

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	(in millions)
Derivatives:
Equity contracts:
Futures	$	(12)	$	(85)
Swaps	—		—
Options	(1)		(4)
Interest rate contracts:
Futures	(16)		(40)
Swaps	—		—
Swaptions	—		—
Credit contracts:
Credit default swaps	—		—
Currency contracts:
Currency swaps	—		—
Currency forwards	—		—
Other contracts:
Margin	—		—
Collateral	—		—
Total:	(29)		(129)
Embedded Derivatives:
GMxB derivative features liability	2		11
MSO and IUL indexed features	15		106
Total Embedded Derivatives	17		117
Total Derivatives instruments (1)	$	(12)	$	(12)

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

	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
	(in millions)
Derivatives:
Equity contracts:
Futures	$	2	$	39
Swaps	—		—
Options	—		2
Interest rate contracts:
Futures	(1)		(1)
Swaps	—		—
Swaptions	—		—
Credit contracts:
Credit default swaps	—		—
Currency contracts:
Currency swaps	—		—
Currency forwards	—		—
Other contracts:
Margin	—		—
Collateral	—		—
Total:	1		40
GMxB derivative features liability	—		—
MSO and IUL indexed features	(1)		(43)
Total Embedded Derivatives	(1)		(43)
Total Derivatives instruments (1)	$	—	(3)

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

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 September 30, 2022 and December 31, 2021:

Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of September 30, 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	$	20	$	2	$	18	$	—	$	18
Other financial assets	2		—		2		—		2
Other invested assets	$	22	$	2	$	20	$	—	$	20
Liabilities:
Derivative liabilities	$	2	$	2	$	—	$	—	$	—
Other financial liabilities	204		—		204		—		204
Other liabilities	$	206	$	2	$	204	$	—	$	204

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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	$	26	$	8	$	18	$	—	$	18
Other financial assets	1		—		1		—		1
Other invested assets	$	27	$	8	$	19	$	—	$	19
Liabilities:
Derivative liabilities	$	8	$	8	$	—	$	—	$	—
Other financial liabilities	42		—		42		—		42
Other liabilities	$	50	$	8	$	42	$	—	$	42

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(1)Financial instruments sent (held).