Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral.

	December 31, 2021						December 31, 2020
Primary Underlying Risk/Instrument Type	Gross Notional		Fair Value				Gross Notional		Fair Value
			Assets		Liabilities				Assets		Liabilities
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Currency/Interest Rate
Foreign Currency Swaps	$	637,001	$	29,028	$	(1,372)	$	1,376,290	$	23,167	$	(82,625)
Total Derivatives Designated as Hedge Accounting Instruments	$	637,001	$	29,028	$	(1,372)	$	1,376,290	$	23,167	$	(82,625)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Futures	$	55,000	$	34	$	0	$	4,597,200	$	2,755	$	(1,621)
Interest Rate Swaps	10,520,230		338,731		(255,434)		131,129,200		12,448,036		(9,540,941)
Interest Rate Options	0		0		0		10,198,000		608,538		(178,563)
Interest Rate Forwards	0		0		0		75,000		464		0
Foreign Currency
Foreign Currency Forwards	50,346		370		(536)		34,988		4		(557)
Currency/Interest Rate
Foreign Currency Swaps	208,153		9,711		(826)		228,117		7,939		(8,440)
Credit
Credit Default Swaps	1,745,550		48,147		0		1,574,173		38,875		(52)
Equity
Equity Futures	855,432		892		(1,016)		5,558,882		9,424		(24,688)
Total Return Swaps	4,802,777		87,832		(80,808)		22,121,729		62,362		(1,162,907)
Equity Options	20,581,951		963,164		(1,028,221)		23,856,379		1,617,672		(952,452)
Total Derivatives Not Qualifying as Hedge Accounting Instruments	$	38,819,439	$	1,448,881	$	(1,366,841)	$	199,373,668	$	14,796,069	$	(11,870,221)
Total Derivatives(1)(2)	$	39,456,440	$	1,477,909	$	(1,368,213)	$	200,749,958	$	14,819,236	$	(11,952,846)

(1)Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $4,060 million and $17,314 million as of December 31, 2021 and 2020, respectively included in “Future policy benefits” and $2,041 million and $580 million as of December 31, 2021 and 2020, respectively included in “Policyholders’ account balances". Other assets included $400 million and $54 million as of December 31, 2021 and 2020, respectively. Other liabilities included $0 million and $35 million as of December 31, 2021 and 2020, respectively. The fair value of the related reinsurance, included in "Reinsurance recoverables" and/or "Reinsurance payables" was an asset of $1,881 million and $471 million as of December 31, 2021 and 2020, respectively.

(2)Recorded in “Other invested assets”, “Other liabilities”, and "Payables to parent and affiliates" on the Statements of Financial Position.

Offsetting of Financial Assets

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreement that are offset in the Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Statements of Financial Position.

	December 31, 2021
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives	$	1,477,909	$	(1,474,780)	$	3,129	$	0	$	3,129
Securities purchased under agreements to resell	0		0		0		0		0
Total Assets	$	1,477,909	$	(1,474,780)	$	3,129	$	0	$	3,129
Offsetting of Financial Liabilities:
Derivatives	$	1,368,213	$	(1,153,610)	$	214,603	$	(214,603)	$	0
Securities sold under agreements to repurchase	0		0		0		0		0
Total Liabilities	$	1,368,213	$	(1,153,610)	$	214,603	$	(214,603)	$	0
	December 31, 2020
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives	$	14,819,236	$	(14,624,985)	$	194,251	$	0	$	194,251
Securities purchased under agreements to resell	150,000		0		150,000		(150,000)		0
Total Assets	$	14,969,236	$	(14,624,985)	$	344,251	$	(150,000)	$	194,251
Offsetting of Financial Liabilities:
Derivatives	$	11,952,846	$	(11,936,059)	$	16,787	$	(16,787)	$	0
Securities sold under agreements to repurchase	0		0		0		0		0
Total Liabilities	$	11,952,846	$	(11,936,059)	$	16,787	$	(16,787)	$	0

(1)Amounts exclude the excess of collateral received/pledged from/to the counterparty.

Offsetting of Financial Liabilities

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreement that are offset in the Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Statements of Financial Position.

	December 31, 2021
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives	$	1,477,909	$	(1,474,780)	$	3,129	$	0	$	3,129
Securities purchased under agreements to resell	0		0		0		0		0
Total Assets	$	1,477,909	$	(1,474,780)	$	3,129	$	0	$	3,129
Offsetting of Financial Liabilities:
Derivatives	$	1,368,213	$	(1,153,610)	$	214,603	$	(214,603)	$	0
Securities sold under agreements to repurchase	0		0		0		0		0
Total Liabilities	$	1,368,213	$	(1,153,610)	$	214,603	$	(214,603)	$	0
	December 31, 2020
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives	$	14,819,236	$	(14,624,985)	$	194,251	$	0	$	194,251
Securities purchased under agreements to resell	150,000		0		150,000		(150,000)		0
Total Assets	$	14,969,236	$	(14,624,985)	$	344,251	$	(150,000)	$	194,251
Offsetting of Financial Liabilities:
Derivatives	$	11,952,846	$	(11,936,059)	$	16,787	$	(16,787)	$	0
Securities sold under agreements to repurchase	0		0		0		0		0
Total Liabilities	$	11,952,846	$	(11,936,059)	$	16,787	$	(16,787)	$	0

(1)Amounts exclude the excess of collateral received/pledged from/to the counterparty.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.

	Year Ended December 31, 2021
	Realized Investment Gains (Losses)		Net Investment Income		Other Income (loss)		Change in AOCI
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	7,379	$	12,642	$	14,450	$	67,543
Total cash flow hedges	7,379		12,642		14,450		67,543
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(1,749,497)		0		0		0
Currency	1,577		0		0		0
Currency/Interest Rate	12,003		0		(21)		0
Credit	17,186		0		0		0
Equity	(1,464,947)		0		0		0
Embedded Derivatives(1)	9,300,564		0		0		0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	6,116,886		0		(21)		0
Total	$	6,124,265	$	12,642	$	14,429	$	67,543
	Year Ended December 31, 2020
	Realized Investment Gains (Losses)		Net Investment Income		Other Income (loss)		Change in AOCI
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	1,882	$	17,871	$	(24,519)	$	(42,713)
Total cash flow hedges	1,882		17,871		(24,519)		(42,713)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	4,452,097		0		0		0
Currency	(809)		0		0		0
Currency/Interest Rate	(14,604)		0		(141)		0
Credit	(303)		0		0		0
Equity	(5,289,510)		0		0		0
Embedded Derivatives	(4,410,696)		0		0		0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(5,263,825)		0		(141)		0
Total	$	(5,261,943)	$	17,871	$	(24,660)	$	(42,713)

	Year Ended December 31, 2019
	Realized Investment Gains (Losses)		Net Investment Income		Other Income (loss)		Change in AOCI
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	(1,257)	$	12,104	$	(3,793)	$	3,520
Total cash flow hedges	(1,257)		12,104		(3,793)		3,520
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	3,309,573		0		0		0
Currency	(153)		0		0		0
Currency/Interest Rate	11,964		0		15		0
Credit	1,775		0		0		0
Equity	(3,730,006)		0		0		0
Embedded Derivatives	(2,269,455)		0		0		0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(2,676,302)		0		15		0
Total	$	(2,677,559)	$	12,104	$	(3,778)	$	3,520

(1)Includes the impact from 2021 Variable Annuities Recapture, see Note 1 for further details.

Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income(Loss) Before Taxes

Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:

	(in thousands)
Balance, December 31, 2018	$	(3,849)
Cumulative-effect adjustment from the adoption of ASU 2017-12	42
Amount recorded in AOCI
Currency/Interest Rate	10,574
Total amount recorded in AOCI	10,574
Amount reclassified from AOCI to income
Currency/Interest Rate	(7,054)
Total amount reclassified from AOCI to income	(7,054)
Balance, December 31, 2019	$	(287)
Amount recorded in AOCI
Currency/Interest Rate	(47,479)
Total amount recorded in AOCI	(47,479)
Amount reclassified from AOCI to income
Currency/Interest Rate	4,766
Total amount reclassified from AOCI to income	4,766
Balance, December 31, 2020	$	(43,000)
Amount recorded in AOCI
Currency/Interest Rate	102,014
Total amount recorded in AOCI	102,014
Amount reclassified from AOCI to income
Currency/Interest Rate	(34,471)
Total amount reclassified from AOCI to income	(34,471)
Balance, December 31, 2021	$	24,543