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Derivatives (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table presents the primary underlying risk exposure, gross notional amount and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at:


		March 31, 2025						December 31, 2024
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate swaps	Interest rate	$	5,108	$	990	$	636	$	5,188	$	1,018	$	666
Foreign currency swaps	Foreign currency exchange rate	1,454		23		31		1,454		33		67
Foreign currency forwards	Foreign currency exchange rate	150		—		38		150		—		41
Subtotal		6,712		1,013		705		6,792		1,051		774
Cash flow hedges:
Interest rate swaps	Interest rate	4,135		13		321		4,154		—		359
Interest rate forwards	Interest rate	5,474		85		908		4,901		56		880
Foreign currency swaps	Foreign currency exchange rate	47,175		2,913		1,742		45,879		2,858		1,877
Subtotal		56,784		3,011		2,971		54,934		2,914		3,116
Net investment in a foreign operation (“NIFO”) hedges:
Foreign currency forwards	Foreign currency exchange rate	1,086		4		11		1,553		42		—
Currency options	Foreign currency exchange rate	3,000		522		—		3,000		536		—
Subtotal		4,086		526		11		4,553		578		—
Total qualifying hedges		67,582		4,550		3,687		66,279		4,543		3,890
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	30,504		1,575		1,326		29,238		1,414		1,263
Interest rate floors	Interest rate	6,040		71		—		6,169		38		—
Interest rate caps	Interest rate	16,648		86		—		17,998		133		1
Interest rate futures	Interest rate	2,229		3		12		1,667		1		1
Interest rate options	Interest rate	34,581		181		137		34,939		210		217
Interest rate forwards	Interest rate	3,261		202		76		3,128		135		77

Synthetic GICs	Interest rate	53,796		—		—		49,599		—		—
Foreign currency swaps	Foreign currency exchange rate	10,684		1,096		185		10,708		1,192		190
Foreign currency forwards	Foreign currency exchange rate	16,192		174		1,051		13,471		47		1,277
Currency futures	Foreign currency exchange rate	308		2		—		301		1		—

Credit default swaps — purchased	Credit	2,771		8		68		2,791		14		67
Credit default swaps — written	Credit	12,096		204		3		11,764		201		5
Equity futures	Equity market	1,811		37		2		1,840		9		6
Equity index options	Equity market	13,991		306		232		12,743		233		253
Equity variance swaps	Equity market	114		—		3		114		—		3
Equity total return swaps	Equity market	1,799		107		20		1,799		41		9
Longevity swaps	Longevity	1,000		—		—		1,000		—		—
Total non-designated or nonqualifying derivatives		207,825		4,052		3,115		199,269		3,669		3,369
Total		$	275,407	$	8,602	$	6,802	$	265,548	$	8,212	$	7,259

Included in the table above, the Company uses various over-the-counter (“OTC”) and exchange traded derivatives to hedge variable annuity guarantees. The table below presents the gross notional amount, estimated fair value and primary underlying risk exposure of the derivatives hedging variable annuity guarantees accounted for as MRBs:


	March 31, 2025						December 31, 2024
Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
			Assets		Liabilities				Assets		Liabilities
	(In millions)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	$	8,964	$	14	$	727	$	8,913	$	11	$	768
Foreign currency exchange rate	409		6		1		378		—		2
Equity market	4,222		167		120		4,294		132		113
	$	13,595	$	187	$	848	$	13,585	$	143	$	883

The Effects of Derivatives on the Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

The following table presents the interim condensed consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, NIFO, nonqualifying hedging relationships and embedded derivatives:


	Three Months Ended March 31, 2025
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to PABs		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	(1)	$	—	N/A		$	75	$	42	$	—	N/A
Hedged items	1		—		N/A		(79)		(40)		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	(10)		8		N/A		—		36		—		N/A
Hedged items	10		(6)		N/A		—		(36)		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		(3)		N/A		—		—		—		N/A
Subtotal	—		(1)		N/A		(4)		2		—		N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	113
Amount of gains (losses) reclassified from AOCI into income	17		—		—		—		—		—		(17)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		121
Amount of gains (losses) reclassified from AOCI into income	2		360		—		—		—		—		(362)
Foreign currency transaction gains (losses) on hedged items	—		(358)		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		—

Subtotal	19		2		—		—		—		—		(145)
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		—		N/A		N/A		N/A		N/A		(72)
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		(14)
Subtotal	N/A		—		N/A		N/A		N/A		N/A		(86)
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	—		N/A		98		N/A		N/A		N/A		N/A
Foreign currency exchange rate derivatives (1)	—		N/A		245		N/A		N/A		N/A		N/A
Credit derivatives — purchased (1)	—		N/A		(9)		N/A		N/A		N/A		N/A
Credit derivatives — written (1)	—		N/A		(27)		N/A		N/A		N/A		N/A
Equity derivatives (1)	17		N/A		59		N/A		N/A		N/A		N/A
Foreign currency transaction gains (losses) on hedged items	—		N/A		(31)		N/A		N/A		N/A		N/A
Subtotal	17		N/A		335		N/A		N/A		N/A		N/A
Earned income on derivatives	95		—		110		2		(40)		—		—
Synthetic GICs	N/A		N/A		19		N/A		N/A		N/A		N/A
Embedded derivatives - ceded reinsurance	N/A		N/A		(35)		N/A		N/A		N/A		N/A
Embedded derivatives - other	N/A		N/A		3		N/A		N/A		N/A		N/A
Total	$	131	$	1	$	432	$	(2)	$	(38)	$	—	$	(231)


	Three Months Ended March 31, 2024
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to PABs		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	—	$	—	N/A		$	(109)	$	(43)	$	—	N/A
Hedged items	—		—		N/A		103		42		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	4		(31)		N/A		—		(24)		—		N/A
Hedged items	(2)		23		N/A		—		28		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		4		N/A		—		—		—		N/A
Subtotal	2		(4)		N/A		(6)		3		—		N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	(218)
Amount of gains (losses) reclassified from AOCI into income	8		2		—		—		—		—		(10)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		(123)
Amount of gains (losses) reclassified from AOCI into income	1		(368)		—		—		—		—		367
Foreign currency transaction gains (losses) on hedged items	—		351		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		—

Subtotal	9		(15)		—		—		—		—		16
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		—		N/A		N/A		N/A		N/A		160
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		20
Subtotal	N/A		—		N/A		N/A		N/A		N/A		180
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	—		N/A		(353)		N/A		N/A		N/A		N/A
Foreign currency exchange rate derivatives (1)	—		N/A		(706)		N/A		N/A		N/A		N/A
Credit derivatives — purchased (1)	—		N/A		(7)		N/A		N/A		N/A		N/A
Credit derivatives — written (1)	—		N/A		34		N/A		N/A		N/A		N/A
Equity derivatives (1)	(25)		N/A		(342)		N/A		N/A		N/A		N/A
Foreign currency transaction gains (losses) on hedged items	—		N/A		163		N/A		N/A		N/A		N/A
Subtotal	(25)		N/A		(1,211)		N/A		N/A		N/A		N/A
Earned income on derivatives	30		—		181		(4)		(49)		—		—
Synthetic GICs	N/A		N/A		19		N/A		N/A		N/A		N/A
Embedded derivatives	N/A		N/A		32		N/A		N/A		N/A		N/A
Total	$	16	$	(19)	$	(979)	$	(10)	$	(46)	$	—	$	196

__________________

(1)Excludes earned income on derivatives.

Fair Value Hedges

The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges:


Balance Sheet Line Item	Carrying Amount of the Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets/(Liabilities) (1)
	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
	(In millions)
Fixed maturity securities AFS	$	230	$	241	$	—	$	—
Mortgage loans	$	163	$	130	$	—	$	(1)
FPBs	$	(2,563)	$	(2,583)	$	285	$	359
PABs	$	(2,386)	$	(2,170)	$	45	$	223

__________________

(1)Includes ($90) million and ($91) million of hedging adjustments on discontinued hedging relationships at March 31, 2025 and December 31, 2024, respectively.

Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps

The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at:


	March 31, 2025					December 31, 2024
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A
Single name credit default swaps (3)	$	1	$	96	1.7	$	1	$	72	1.9
Credit default swaps referencing indices	65		4,126		2.0	72		4,126		2.2
Subtotal	66		4,222		2.0	73		4,198		2.2
Baa
Single name credit default swaps (3)	1		71		1.2	1		102		1.6
Credit default swaps referencing indices	118		7,436		5.2	111		7,263		4.1
Subtotal	119		7,507		5.2	112		7,365		4.1
Ba
Single name credit default swaps (3)	—		—		0.0	—		17		1.1
Credit default swaps referencing indices	1		25		1.7	2		25		2.0
Subtotal	1		25		1.7	2		42		1.6
B
Single name credit default swaps (3)	—		23		1.0	—		—		0.0
Credit default swaps referencing indices	16		304		4.4	10		144		3.7
Subtotal	16		327		4.1	10		144		3.7
Caa

Credit default swaps referencing indices	(1)		15		1.7	(1)		15		2.0
Subtotal	(1)		15		1.7	(1)		15		2.0
Total	$	201	$	12,096	4.0	$	196	$	11,764	3.4

_________________

(1)The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service, Inc. (“Moody’s”), Standard & Poor’s Global Ratings (“S&P”) and Fitch Ratings Inc. If no rating is available from a rating agency, then an internally developed rating is used.

(2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

(3)Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or municipals.

Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:


	March 31, 2025				December 31, 2024
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement	Assets		Liabilities		Assets		Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	8,527	$	6,425	$	8,224	$	6,966
OTC-cleared (1)	181		406		135		299
Exchange-traded	42		14		11		7
Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1)	8,750		6,845		8,370		7,272
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(3,280)		(3,280)		(3,633)		(3,633)
OTC-cleared	(18)		(18)		(5)		(5)
Exchange-traded	(10)		(10)		(1)		(1)
Cash collateral: (3), (4)
OTC-bilateral	(2,522)		—		(2,597)		—
OTC-cleared	(141)		(380)		(126)		(289)
Exchange-traded	—		(3)		—		(6)
Securities collateral: (5)
OTC-bilateral	(2,554)		(3,139)		(1,955)		(3,325)
OTC-cleared	—		(8)		—		(4)
Exchange-traded	—		(1)		—		—
Net amount after application of master netting agreements and collateral	$	225	$	6	$	53	$	9

__________________

(1)At March 31, 2025 and December 31, 2024, derivative assets included income (expense) accruals reported in accrued investment income or in other liabilities of $148 million and $158 million, respectively, and derivative liabilities included (income) expense accruals reported in accrued investment income or in other liabilities of $43 million and $13 million, respectively.

(2)Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

(3)Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives, where the central clearinghouse treats variation margin as collateral, is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. For certain collateral agreements, cash collateral is pledged to the Company as initial margin on its OTC-bilateral derivatives.

(4)The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2025 and December 31, 2024, the Company received excess cash collateral of $45 million and $26 million, respectively, and provided excess cash collateral of $86 million at both periods, which is not included in the table above due to the foregoing limitation.

(5)Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2025, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At March 31, 2025 and December 31, 2024, the Company received excess securities collateral with an estimated fair value of $357 million and $410 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At March 31, 2025 and December 31, 2024, the Company provided excess securities collateral with an estimated fair value of $1.4 billion and $1.2 billion, respectively, for its OTC-bilateral derivatives, $806 million and $835 million, respectively, for its OTC-cleared derivatives, and $188 million and $148 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:


	March 31, 2025				December 31, 2024
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement	Assets		Liabilities		Assets		Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	8,527	$	6,425	$	8,224	$	6,966
OTC-cleared (1)	181		406		135		299
Exchange-traded	42		14		11		7
Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1)	8,750		6,845		8,370		7,272
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(3,280)		(3,280)		(3,633)		(3,633)
OTC-cleared	(18)		(18)		(5)		(5)
Exchange-traded	(10)		(10)		(1)		(1)
Cash collateral: (3), (4)
OTC-bilateral	(2,522)		—		(2,597)		—
OTC-cleared	(141)		(380)		(126)		(289)
Exchange-traded	—		(3)		—		(6)
Securities collateral: (5)
OTC-bilateral	(2,554)		(3,139)		(1,955)		(3,325)
OTC-cleared	—		(8)		—		(4)
Exchange-traded	—		(1)		—		—
Net amount after application of master netting agreements and collateral	$	225	$	6	$	53	$	9

__________________

(2)Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

Estimated Fair Value of OTC-bilateral derivatives after considering effect of netting agreements

The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged.


	March 31, 2025						December 31, 2024
	Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total		Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	3,078	$	67	$	3,145	$	3,213	$	120	$	3,333
Estimated fair value of collateral provided:
Fixed maturity securities AFS	$	3,797	$	76	$	3,873	$	3,829	$	124	$	3,953

__________________

(1)After taking into consideration the existence of netting agreements.

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at:


	Balance Sheet Location	March 31, 2025		December 31, 2024
		(In millions)


Embedded derivatives within liability host contracts:


Funds withheld on ceded reinsurance	Other liabilities	$	(127)	$	(163)
Fixed annuities with equity indexed returns	PABs	170		172

Total		$	43	$	9

Embedded Derivatives


	March 31, 2025						December 31, 2024
	Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total		Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	3,078	$	67	$	3,145	$	3,213	$	120	$	3,333
Estimated fair value of collateral provided:
Fixed maturity securities AFS	$	3,797	$	76	$	3,873	$	3,829	$	124	$	3,953

__________________

(1)After taking into consideration the existence of netting agreements.

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at:


	Balance Sheet Location	March 31, 2025		December 31, 2024
		(In millions)


Embedded derivatives within liability host contracts:


Funds withheld on ceded reinsurance	Other liabilities	$	(127)	$	(163)
Fixed annuities with equity indexed returns	PABs	170		172

Total		$	43	$	9

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details