Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional amounts and fair values of derivatives from continuing operations, including amounts related to businesses to be

exited via reinsurance associated with the Individual Life Transaction, were as follows as of the dates indicated:


	June 30, 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	794		67		1		771		12		21


Derivatives: Non-qualifying for hedge accounting⁽¹⁾
Interest rate contracts	25,194		734		940		25,027		294		371
Foreign exchange contracts	132		—		1		92		—		1
Equity contracts	422		8		6		400		10		8
Credit contracts	239		—		2		237		—		2
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		27		—		N/A		19		—
Within products	N/A		—		193		N/A		—		60
Within reinsurance agreements	N/A		—		132		N/A		—		100
Managed custody guarantees	N/A		—		17		N/A		—		—
Total			$	836	$	1,292			$	335	$	563

⁽¹⁾Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value.

N/A - Not Applicable

The notional amounts and fair values of derivatives for businesses held for sale were as follows as of the dates indicated:


	June 30, 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	32		4		—		19		1		1


Derivatives: Non-qualifying for hedge accounting⁽¹⁾
Interest rate contracts	2,216		47		51		2,227		49		56
Foreign exchange contracts	34		—		—		18		—		—
Equity contracts	1,850		207		18		1,753		254		20

Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		11		—		N/A		8		—
Within products	N/A		—		177		N/A		—		217
Within reinsurance agreements	N/A		—		102		N/A		—		75

Total			$	269	$	348			$	312	$	369

⁽¹⁾ Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value.

N/A - Not Applicable

Offsetting Assets and Liabilities

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:


	June 30, 2020
Continuing operations:⁽¹⁾
	Notional Amount		Asset Fair Value		Liability Fair Value
Credit contracts	$	239	$	—	$	2
Equity contracts	282		7		4
Foreign exchange contracts	926		67		2
Interest rate contracts	22,107		734		940
			808		948
Counterparty netting⁽²⁾			(698)		(698)
Cash collateral netting⁽²⁾			(102)		(249)
Securities collateral netting⁽²⁾			(4)		—
Net receivables/payables			$	4	$	1

(1) Includes amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction,

⁽²⁾Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.


	June 30, 2020
Businesses held for sale:
	Notional Amount		Asset Fair Value		Liability Fair Value
Credit contracts	$	—	$	—	$	—
Equity contracts	1,850		207		18
Foreign exchange contracts	66		4		—
Interest rate contracts	2,218		47		51
			258		69
Counterparty netting⁽¹⁾			(67)		(67)
Cash collateral netting⁽¹⁾			(161)		(2)
Securities collateral netting⁽¹⁾			(14)		—
Net receivables/payables			$	16	$	—

⁽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

(1) Includes amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction,

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


	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

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

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

The location and effect of derivatives qualifying for hedge accounting 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 and Condensed Consolidated Statements of Comprehensive Income are as follows for the period indicated:


	Three Months Ended June 30,
	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	$	—	$	(19)	$	1	$	20
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income	—		3		—		3

	Six Months Ended June 30,
	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	$	73	$	2	$	10
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income	—		6		—		6

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 June 30,
	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	$	586	$	49	$	712	$	28
Derivatives: Qualifying for hedge accounting
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	3		—		3		—

	Six Months Ended June 30,
	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	$	1,284	$	(164)	$	1,370	$	42
Derivatives: Qualifying for hedge accounting

Cash flow hedges:




Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	6		—		6		—

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 June 30,
				2020			2019
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Other net realized capital gains (losses)	$	4		$	(79)
Foreign exchange contracts	Other net realized capital gains (losses)	(1)			2
Equity contracts	Other net realized capital gains (losses)	(9)			(4)
Credit contracts	Other net realized capital gains (losses)	2			—
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Other net realized capital gains (losses)	(1)			2
Within products	Other net realized capital gains (losses)	36			(26)
Within reinsurance agreements	Policyholder benefits	(125)			(63)
Managed custody guarantees	Other net realized capital gains (losses)	9			—
Total		$	(85)		$	(168)

	Location of Gain or (Loss) Recognized in Income on Derivative	Six Months Ended June 30,
				2020			2019
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Other net realized capital gains (losses)	$	(33)		$	(131)
Foreign exchange contracts	Other net realized capital gains (losses)	6			4
Equity contracts	Other net realized capital gains (losses)	(9)			(21)
Credit contracts	Other net realized capital gains (losses)	4			3
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Other net realized capital gains (losses)	7			3
Within products	Other net realized capital gains (losses)	(131)			(84)
Within reinsurance agreements	Policyholder benefits	(60)			(122)
Managed custody guarantees	Other net realized capital gains (losses)	(17)			—
Total		$	(233)		$	(348)

The location and effect of derivatives not designated as hedging instruments from discontinued operations 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 June 30,
				2020			2019






Derivatives: Non-qualifying for hedge accounting

Foreign exchange contracts	Income (loss) from discontinued operations, net of tax	$	—		$	—
Equity contracts	Income (loss) from discontinued operations, net of tax	92			15
Credit contracts	Income (loss) from discontinued operations, net of tax	—			—
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Income (loss) from discontinued operations, net of tax	—			1
Within products	Income (loss) from discontinued operations, net of tax	(89)			62


Total		$	3		$	78

	Location of Gain or (Loss) Recognized in Income on Derivative	Six Months Ended June 30,
				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	(61)			78
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			1
Within products	Income (loss) from discontinued operations, net of tax	56			—


Total		$	(2)		$	80