Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional amounts and fair values of derivatives were as follows as of the dates indicated:

	September 30, 2022						December 31, 2021
	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting(1)
Fair value hedges:
Foreign exchange contracts	$	82	$	2	$	—	$	94	$	2	$	—
Cash flow hedges:
Interest rate contracts	22		—		—		22		—		—
Foreign exchange contracts	700		126		—		683		16		16
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts	19,370		358		371		13,382		147		209
Foreign exchange contracts	159		7		3		146		1		3
Equity contracts	245		2		6		299		4		2
Credit contracts	177		—		3		135		1		1
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments(2)	N/A		3		—		N/A		12		—
Within products(3)	N/A		—		24		N/A		—		47
Within reinsurance agreements(4)	N/A		109		74		N/A		—		196
Managed custody guarantees(3)	N/A		—		9		N/A		—		1
Total			$	607	$	490			$	183	$	475

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

(2) Included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets.

(3) Included in Future policy benefits on the Condensed Consolidated Balance Sheets.

(4) Included in Other liabilities, Other assets, and Premium receivable and reinsurance recoverable on the Condensed Consolidated Balance Sheets.

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 are presented in the tables below as of the dates indicated:

	September 30, 2022
	Notional Amount		Asset Fair Value		Liability Fair Value
Credit contracts	$	177	$	—	$	3
Equity contracts	197		1		6
Foreign exchange contracts	941		135		3
Interest rate contracts	13,439		353		370
			489		382
Counterparty netting(1)			(310)		(310)
Cash collateral netting(1)			(121)		(63)
Securities collateral netting(1)			(11)		(1)
Net receivables/payables			$	47	$	8

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

	December 31, 2021
	Notional Amount		Asset Fair Value		Liability Fair Value
Credit contracts	$	135	$	1	$	1
Equity contracts	239		4		2
Foreign exchange contracts	923		19		19
Interest rate contracts	12,003		147		209
			171		231
Counterparty netting(1)			(156)		(156)
Cash collateral netting(1)			(12)		(70)
Securities collateral netting(1)			(2)		(2)
Net receivables/payables			$	1	$	3

(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 on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income are as follows for the periods indicated:

	Three Months Ended September 30,
	2022				2021
	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 gains/(losses)		Net investment income		Net investment income and Other net gains/(losses)
Amount of Gain or (Loss) Recognized in Other Comprehensive Income	$	—	$	64	$	—	$	24
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income	—		4		—		3
	Nine Months Ended September 30,
	2022				2021
	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 gains/(losses)		Net investment income		Net investment income and Other net gains/(losses)
Amount of Gain or (Loss) Recognized in Other Comprehensive Income	$	(2)	$	126	$	(1)	$	36
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income	—		9		—		2

The location and amount of gain (loss) recognized 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,
	2022				2021
	Net investment income		Other net gains/(losses)		Net investment income		Other net gains/(losses)
Total amounts of line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded	$	522	$	(111)	$	731	$	(103)
Derivatives: Qualifying for hedge accounting
Fair value hedges:
Foreign exchange contracts:
Hedged items	—		(6)		—		(2)
Derivatives designated as hedging instruments(1)	—		6		—		2
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	4		—		3		—
	Nine Months Ended September 30,
	2022				2021
	Net investment income		Other net gains/(losses)		Net investment income		Other net gains/(losses)
Total amounts of line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded	$	1,733	$	(614)	$	2,101	$	1,602
Derivatives: Qualifying for hedge accounting
Fair value hedges:
Foreign exchange contracts:
Hedged items	—		(13)		—		(3)
Derivatives designated as hedging instruments(1)	—		14		—		3
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	9		—		7		(5)

(1) For the three months ended September 30, 2022, an immaterial portion of the change in derivative instruments designated and qualifying as fair value hedges was excluded from the assessment of hedge effectiveness and recognized currently in earning. For the nine months ended September 30, 2022, $1 of the change in derivative instruments designated and qualifying as fair value hedges was excluded from the assessment of hedge effectiveness and recognized currently in earning. For the three and nine months ended September 30, 2021, an immaterial portion of the change in derivative instruments designated and qualifying as fair value hedges was excluded from the assessment of hedge effectiveness and recognized currently in earning.

The location and effect of derivatives not designated as hedging instruments 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,
		2022		2021
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Other net gains (losses)	$	176	$	10
Foreign exchange contracts	Other net gains (losses)	—		—
Equity contracts	Other net gains (losses)	(8)		(1)
Credit contracts	Other net gains (losses)	—		—
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Other net gains (losses)	(2)		(1)
Within products	Other net gains (losses)	1		7
Within reinsurance agreements(1)	Policyholder benefits	57		18
Managed custody guarantees	Other net gains (losses)	(6)		(1)
Total		$	218	$	32
	Location of Gain or (Loss) Recognized in Income on Derivative	Nine Months Ended September 30,
		2022		2021
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Other net gains (losses)	$	328	$	(13)
Foreign exchange contracts	Other net gains (losses)	(2)		(2)
Equity contracts	Other net gains (losses)	(36)		11
Credit contracts	Other net gains (losses)	(4)		1
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Other net gains (losses)	(8)		(6)
Within products	Other net gains (losses)	23		38
Within reinsurance agreements(1)	Policyholder benefits	233		41
Managed custody guarantees	Other net gains (losses)	(8)		3
Total		$	526	$	73

(1) For the three and nine months ended September 30, 2022, the amount excluded gains (losses) of $(3) and $(2), respectively, from standalone derivatives recognized in Other net gains (losses). For the three and nine months ended September 30, 2021, the amount excluded gains (losses) of $(1) and $3, respectively, from standalone derivatives recognized in Other net gains (losses).