Interest rate caps and floors: The Company uses interest rate cap contracts to hedge the interest rate exposure arising from duration mismatches between assets and liabilities. Interest rate caps are also used to hedge interest rate exposure if rates rise above a specified level. The Company uses interest rate floor contracts to hedge interest rate exposure if rates decrease below a specified level. The Company pays an upfront premium to purchase these caps and floors. The Company utilizes these contracts in non-qualifying hedging relationships.

Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Credit default swaps: Credit default swaps are used to reduce credit loss exposure with respect to certain assets that the Company owns or to assume credit exposure on certain assets that the Company does not own. Payments are made to, or received from, the counterparty at specified intervals. In the event of a default on the underlying credit exposure, the Company will either receive a payment (purchased credit protection) or will be required to make a payment (sold credit protection) equal to the par minus recovery value of the swap contract. The Company utilizes these contracts in non-qualifying hedging relationships.

Total return swaps: The Company uses total return swaps as a hedge against a decrease in variable annuity account values, which are invested in certain indices. Total return swaps are also used as a hedge of other corporate liabilities. Using total return swaps, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of assets or a market index and the London Interbank Offered Rates ("LIBOR") rate, calculated by reference to an agreed upon notional principal amount. No cash is exchanged at the onset of the contracts. Cash is paid and received over the life of the contract based upon the terms of the swaps. The Company utilizes these contracts in non-qualifying hedging relationships.

Forwards: The Company uses forward contracts to hedge certain invested assets against movement in interest rates, particularly mortgage rates. The Company uses To Be Announced mortgage-backed securities as an economic hedge against rate movements. The Company utilizes forward contracts in non-qualifying hedging relationships.

Futures: Futures contracts are used to hedge against a decrease in certain equity indices. Such decreases may correlate to a decrease in variable annuity account values which would increase the possibility of the Company incurring an expense for guaranteed benefits in excess of account values. The Company also uses interest rate futures contracts to hedge its exposure to market risks due to changes in interest rates. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margins, with the exchange, on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. The Company may also use futures contracts as a hedge against an increase in certain equity indices.

Swaptions: A swaption is an option to enter into a swap with a forward starting effective date. The Company uses swaptions to hedge the interest rate exposure associated with the minimum crediting rate and book value guarantees embedded in the retirement products that the Company offers. Increases in interest rates will generate losses on assets that are backing such liabilities. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium when it purchases the swaption. The Company utilizes these contracts in non-qualifying hedging relationships.

Options: The Company uses equity options to hedge against an increase in various equity indices. Such increases may result in increased payments to the holders of the fixed-index annuity ("FIA") and indexed universal life ("IUL") contracts. The Company pays an upfront premium to purchase these options. The Company utilizes these options in non-qualifying hedging relationships.

Managed custody guarantees ("MCGs"): The Company issues certain credited rate guarantees on variable fixed income portfolios that represent stand-alone derivatives. The market value is partially determined by, among other things, levels of or changes in interest rates, prepayment rates and credit ratings/spreads.

Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives.

The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and equity market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement, which provides the Company with the legal right of offset. However, in accordance with the Chicago Mercantile Exchange ("CME") rules related to the variation margin payments, the Company is required to adjust the derivative balances with the variation margin payments related to its cleared derivatives executed through CME.



	March 31, 2020						December 31, 2019
	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting⁽¹⁾
Cash flow hedges:
Interest rate contracts	$	30	$	—	$	—	$	30	$	—	$	—
Foreign exchange contracts	772		83		—		771		12		21
Derivatives: Non-qualifying for hedge accounting⁽¹⁾
Interest rate contracts	26,856		783		1,038		25,027		294		371
Foreign exchange contracts	151		5		—		92		—		1
Equity contracts	446		4		28		400		10		8
Credit contracts	235		—		2		237		—		2
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		27		—		N/A		19		—
Within products	N/A		—		227		N/A		—		60
Within reinsurance agreements	N/A		—		52		N/A		—		100
Managed custody guarantees	N/A		—		26		N/A		—		—
Total			$	902	$	1,373			$	335	$	563



	March 31, 2020						December 31, 2019
	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting⁽¹⁾
Cash flow hedges:
Interest rate contracts	$	1	$	—	$	—	$	1	$	—	$	—
Foreign exchange contracts	19		4		—		19		1		1
Derivatives: Non-qualifying for hedge accounting⁽¹⁾
Interest rate contracts	2,212		50		55		2,227		49		56
Foreign exchange contracts	31		1		—		18		—		—
Equity contracts	1,821		93		3		1,753		254		20
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		11		—		N/A		8		—
Within products	N/A		—		82		N/A		—		217
Within reinsurance agreements	N/A		—		58		N/A		—		75
Total			$	159	$	198			$	312	$	369

Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as of March 31, 2020 and December 31, 2019. The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various product lines. These derivatives do not qualify for hedge accounting as they do not meet the criteria of being "highly effective" as outlined in ASC Topic 815, but do provide an economic hedge, which is in line with the Company’s risk management objectives. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company does not seek hedge accounting treatment for certain of these derivatives as they generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules outlined in ASC Topic 815. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments that do not qualify as effective accounting hedges under ASC Topic 815.

Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts for continuing operations and businesses held for sale are presented in the tables below as of the dates indicated:



	March 31, 2020
Continuing operations:⁽¹⁾
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	235	$	—		$	2
Equity contracts	290		3			28
Foreign exchange contracts	923		88			—
Interest rate contracts	25,368		782			1,037
			873			1,067
Counterparty netting⁽²⁾			(715		)	(715		)
Cash collateral netting⁽²⁾			(151		)	(351		)
Securities collateral netting⁽²⁾			(5		)	—
Net receivables/payables			$	2		$	1



	March 31, 2020
Businesses held for sale:
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	—	$	—		$	—
Equity contracts	1,821		93			3
Foreign exchange contracts	50		5			—
Interest rate contracts	2,213		50			55
			148			58
Counterparty netting⁽¹⁾			(56		)	(56		)
Cash collateral netting⁽¹⁾			(73		)	(2		)
Securities collateral netting⁽¹⁾			(9		)	—
Net receivables/payables			$	10		$	—

⁽¹⁾Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.



	December 31, 2019
Continuing operations:⁽¹⁾
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	237	$	—		$	2
Equity contracts	293		9			7
Foreign exchange contracts	863		12			22
Interest rate contracts	23,634		295			371
			316			402
Counterparty netting⁽²⁾			(290		)	(290		)
Cash collateral netting⁽²⁾			(25		)	(100		)
Securities collateral netting⁽²⁾			—			(5		)
Net receivables/payables			$	1		$	7



	December 31, 2019
Businesses held for sale:
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	—	$	—		$	—
Equity contracts	1,753		254			20
Foreign exchange contracts	37		1			1
Interest rate contracts	2,228		49			56
			304			77
Counterparty netting⁽¹⁾			(76		)	(76		)
Cash collateral netting⁽¹⁾			(206		)	—
Securities collateral netting⁽¹⁾			(17		)	—
Net receivables/payables			$	5		$	1

Under the terms of the OTC Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties collateral to assure that terms of the ISDA agreements will be met with regard to the Credit Support Annex ("CSA"). The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. To the extent cash collateral is received and delivered, it is included in Payables under securities loan and repurchase agreements, including collateral held and Short-term investments under securities loan agreements, including collateral delivered, respectively, on the Condensed Consolidated Balance Sheets and is reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Condensed Consolidated Balance Sheets.

Continuing operations: As of March 31, 2020, the Company held $106 and pledged $292 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2019, the Company held $9 and $82 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of March 31, 2020, the Company delivered $210 of securities and held $7 of securities as collateral. As of December 31, 2019, the Company delivered $183 of securities and held no securities as collateral.

Businesses held for sale: As of March 31, 2020, the Company held $75 and pledged $1 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2019, the Company held $213 and no net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of March 31, 2020, the Company delivered $2 of securities and held $9 of securities as collateral. As of December 31, 2019, the Company delivered $2 of securities and held $18 of securities as collateral.



	Three Months Ended March 31,
	2020				2019
	Interest Rate Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Foreign Exchange Contracts
Derivatives: Qualifying for hedge accounting
Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Net investment income		Net investment income		Net investment income		Net investment income
Amount of Gain or (Loss) Recognized in Other Comprehensive Income	$	2	$	92	$	1	$	(9	)
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income	—		3		—		3

The location and amount of gain (loss) recognized from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, in the Condensed Consolidated Statements of Operations for derivatives qualifying for hedge accounting are as follows for the period indicated:



	Three Months Ended March 31,
	2020					2019
	Net Investment Income		Other net realized capital gains/(losses)			Net Investment Income		Other net realized capital gains/(losses)
Total amounts of line items presented in the statement of operations in which the effects of cash flow hedges are recorded	$	698	$	(213	)	$	658	$	14
Derivatives: Qualifying for hedge accounting
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	3		—			3		—

The location and effect of derivatives not designated as hedging instruments from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, on the Condensed Consolidated Statements of Operations are as follows for the periods indicated:



	Location of Gain or (Loss) Recognized in Income on Derivative	Three Months Ended March 31,
		2020			2019
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Other net realized capital gains (losses)	$	(37	)	$	(52	)
Foreign exchange contracts	Other net realized capital gains (losses)	7			2
Equity contracts	Other net realized capital gains (losses)	—			(16		)
Credit contracts	Other net realized capital gains (losses)	2			3
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Other net realized capital gains (losses)	8			1
Within products	Other net realized capital gains (losses)	(167		)	4
Within reinsurance agreements	Policyholder benefits	65			(59		)
Managed custody guarantees	Other net realized capital gains (losses)	(26		)	—
Total		$	(148	)	$	(117	)



	Location of Gain or (Loss) Recognized in Income on Derivative	Three Months Ended March 31,
		2020			2019
Derivatives: Non-qualifying for hedge accounting
Foreign exchange contracts	Income (loss) from discontinued operations, net of tax	1			—
Equity contracts	Income (loss) from discontinued operations, net of tax	(153		)	63
Credit contracts	Income (loss) from discontinued operations, net of tax	—			1
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Income (loss) from discontinued operations, net of tax	2			—
Within products	Income (loss) from discontinued operations, net of tax	145			(62		)
Total		$	(5	)	$	2