Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 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:

	September 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	739		30		9		771		12		21
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts	20,372		226		414		25,027		294		371
Foreign exchange contracts	111		—		2		92		—		1
Equity contracts	405		14		7		400		10		8
Credit contracts	229		—		2		237		—		2
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		23		—		N/A		19		—
Within products	N/A		—		166		N/A		—		60
Within reinsurance agreements	N/A		—		143		N/A		—		100
Managed custody guarantees	N/A		—		11		N/A		—		—
Total			$	293	$	754			$	335	$	563

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

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

	September 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		2		—		19		1		1
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts	2,205		49		52		2,227		49		56
Foreign exchange contracts	25		—		1		18		—		—
Equity contracts	1,910		263		33		1,753		254		20
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		9		—		N/A		8		—
Within products	N/A		—		215		N/A		—		217
Within reinsurance agreements	N/A		—		95		N/A		—		75
Total			$	323	$	396			$	312	$	369

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

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:

	September 30, 2020
Continuing operations:(1)
	Notional Amount		Asset Fair Value		Liability Fair Value
Credit contracts	$	229	$	—	$	2
Equity contracts	280		14		7
Foreign exchange contracts	850		30		11
Interest rate contracts	17,285		226		414
			270		434
Counterparty netting(2)			(221)		(221)
Cash collateral netting(2)			(43)		(210)
Securities collateral netting(2)			—		—
Net receivables/payables			$	6	$	3

(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.

	September 30, 2020
Businesses held for sale:
	Notional Amount		Asset Fair Value		Liability Fair Value
Credit contracts	$	—	$	—	$	—
Equity contracts	1,910		263		33
Foreign exchange contracts	57		2		1
Interest rate contracts	2,206		49		52
			314		86
Counterparty netting(1)			(84)		(84)
Cash collateral netting(1)			(208)		(1)
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.

	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 September 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 and Other Net Realized Gains/Losses		Net investment income		Net investment income and Other Net Realized Gains/Losses
Amount of Gain or (Loss) Recognized in Other Comprehensive Income	$	—	$	(42)	$	—	$	33
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income	—		—		—		3
	Nine Months Ended September 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 and Other Net Realized Gains/Losses		Net investment income		Net investment income and Other Net Realized Gains/Losses
Amount of Gain or (Loss) Recognized in Other Comprehensive Income	$	2	$	31	$	2	$	43
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income	—		6		—		9

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 September 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	$	800	$	(60)	$	687	$	(17)
Derivatives: Qualifying for hedge accounting
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	3		(3)		3		—
	Nine Months Ended September 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	$	2,084	$	(224)	$	2,057	$	25
Derivatives: Qualifying for hedge accounting
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	9		(3)		9		—

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 September 30,
		2020		2019
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Other net realized capital gains (losses)	$	21	$	(18)
Foreign exchange contracts	Other net realized capital gains (losses)	(4)		4
Equity contracts	Other net realized capital gains (losses)	(2)		(3)
Credit contracts	Other net realized capital gains (losses)	(1)		—
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Other net realized capital gains (losses)	(3)		4
Within products	Other net realized capital gains (losses)	28		(36)
Within reinsurance agreements	Policyholder benefits	8		(48)
Managed custody guarantees	Other net realized capital gains (losses)	7		(4)
Total		$	54	$	(101)
	Location of Gain or (Loss) Recognized in Income on Derivative	Nine Months Ended September 30,
		2020		2019
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Other net realized capital gains (losses)	$	(12)	$	(148)
Foreign exchange contracts	Other net realized capital gains (losses)	2		8
Equity contracts	Other net realized capital gains (losses)	(11)		(20)
Credit contracts	Other net realized capital gains (losses)	3		2
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Other net realized capital gains (losses)	4		7
Within products	Other net realized capital gains (losses)	(103)		(120)
Within reinsurance agreements	Policyholder benefits	(52)		(170)
Managed custody guarantees	Other net realized capital gains (losses)	(10)		(4)
Total		$	(179)	$	(445)

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 September 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	43		(4)
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)		(1)
Within products	Income (loss) from discontinued operations, net of tax	(43)		—
Total		$	(1)	$	(5)
	Location of Gain or (Loss) Recognized in Income on Derivative	Nine Months Ended September 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	(18)		74
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	1		—
Within products	Income (loss) from discontinued operations, net of tax	13		—
Total		$	(3)	$	75