Derivatives (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments in Statement of Financial Position, Fair Value [Table Text Block]

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

		December 31,
		2019						2018
	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:
Cash flow hedges:
Interest rate forwards	Interest rate	$	420	$	22	$	—	$	—	$	—	$	—
Foreign currency swaps	Foreign currency exchange rate	2,765		190		27		2,524		211		30
Total qualifying hedges		3,185		212		27		2,524		211		30
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	7,559		878		29		10,747		528		558
Interest rate caps	Interest rate	3,350		2		—		3,350		21		—
Interest rate futures	Interest rate	—		—		—		54		—		—
Interest rate options	Interest rate	29,750		782		187		17,168		168		61
Interest rate forwards	Interest rate	5,418		94		114		—		—		—
Foreign currency swaps	Foreign currency exchange rate	1,051		96		15		1,409		101		18
Foreign currency forwards	Foreign currency exchange rate	138		—		1		125		—		—
Credit default swaps — purchased	Credit	18		—		—		98		3		—
Credit default swaps — written	Credit	1,635		36		—		1,820		14		3
Equity futures	Equity market	—		—		—		169		—		—
Equity index options	Equity market	51,509		850		1,728		45,815		1,372		1,207
Equity variance swaps	Equity market	2,136		69		69		5,574		80		232
Equity total return swaps	Equity market	7,723		2		367		3,920		280		3
Total non-designated or non-qualifying derivatives		110,287		2,809		2,510		90,249		2,567		2,082
Embedded derivatives:
Ceded guaranteed minimum income benefits	Other	N/A		217		—		N/A		228		—
Direct index-linked annuities	Other	N/A		—		2,253		N/A		—		488
Direct guaranteed minimum benefits	Other	N/A		—		1,656		N/A		—		1,642
Assumed index-linked annuities	Other	N/A		—		339		N/A		—		96
Total embedded derivatives		N/A		217		4,248		N/A		228		2,226
Total		$	113,472	$	3,238	$	6,785	$	92,773	$	3,006	$	4,338

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following tables present the amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses):

	Year Ended December 31, 2019
	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Net Investment Income		Policyholder Benefits and Claims		Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	32		$	—		$	2	$	—	$	25
Foreign currency exchange rate derivatives	25			(29		)	34		—		15
Total cash flow hedges	57			(29		)	36		—		40
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	1,589			—			—		—		—
Foreign currency exchange rate derivatives	22			(3		)	—		—		—
Credit derivatives	44			—			—		—		—
Equity derivatives	(2,476		)	—			—		—		—
Embedded derivatives	(1,192		)	—			—		—		—
Total non-qualifying hedges	(2,013		)	(3		)	—		—		—
Total	$	(1,956	)	$	(32	)	$	36	$	—	$	40

	Year Ended December 31, 2018
	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Net Investment Income		Policyholder Benefits and Claims			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate derivatives	$	(12	)	$	12		$	1	$	—		$	—
Total fair value hedges	(12		)	12			1		—			—
Cash flow hedges:
Interest rate derivatives	129			(1		)	5		—			(5		)
Foreign currency exchange rate derivatives	—			(1		)	27		—			164
Total cash flow hedges	129			(2		)	32		—			159
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(658		)	—			—		—			—
Foreign currency exchange rate derivatives	82			(8		)	—		—			—
Credit derivatives	(7		)	—			—		—			—
Equity derivatives	632			—			—		—			—
Embedded derivatives	534			—			—		(8		)	—
Total non-qualifying hedges	583			(8		)	—		(8		)	—
Total	$	700		$	2		$	33	$	(8	)	$	159

	Year Ended December 31, 2017
	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Net Investment Income			Policyholder Benefits and Claims			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate derivatives	$	2		$	(2	)	$	2		$	—		$	—
Total fair value hedges	2			(2		)	2			—			—
Cash flow hedges:
Interest rate derivatives	2			—			6			—			3
Foreign currency exchange rate derivatives	10			(9		)	21			—			(160		)
Total cash flow hedges	12			(9		)	27			—			(157		)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(57		)	—			—			10			—
Foreign currency exchange rate derivatives	(84		)	(33		)	—			—			—
Credit derivatives	34			—			—			—			—
Equity derivatives	(2,565		)	—			(1		)	(335		)	—
Embedded derivatives	1,082			—			—			(16		)	—
Total non-qualifying hedges	(1,590		)	(33		)	(1		)	(341		)	—
Total	$	(1,576	)	$	(44	)	$	28		$	(341	)	$	(157	)

Derivative Instruments, Gain (Loss) [Table Text block]

The following tables present the amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses):

	Year Ended December 31, 2019
	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Net Investment Income		Policyholder Benefits and Claims		Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Cash flow hedges:
Interest rate derivatives	$	32		$	—		$	2	$	—	$	25
Foreign currency exchange rate derivatives	25			(29		)	34		—		15
Total cash flow hedges	57			(29		)	36		—		40
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	1,589			—			—		—		—
Foreign currency exchange rate derivatives	22			(3		)	—		—		—
Credit derivatives	44			—			—		—		—
Equity derivatives	(2,476		)	—			—		—		—
Embedded derivatives	(1,192		)	—			—		—		—
Total non-qualifying hedges	(2,013		)	(3		)	—		—		—
Total	$	(1,956	)	$	(32	)	$	36	$	—	$	40

	Year Ended December 31, 2018
	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Net Investment Income		Policyholder Benefits and Claims			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate derivatives	$	(12	)	$	12		$	1	$	—		$	—
Total fair value hedges	(12		)	12			1		—			—
Cash flow hedges:
Interest rate derivatives	129			(1		)	5		—			(5		)
Foreign currency exchange rate derivatives	—			(1		)	27		—			164
Total cash flow hedges	129			(2		)	32		—			159
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(658		)	—			—		—			—
Foreign currency exchange rate derivatives	82			(8		)	—		—			—
Credit derivatives	(7		)	—			—		—			—
Equity derivatives	632			—			—		—			—
Embedded derivatives	534			—			—		(8		)	—
Total non-qualifying hedges	583			(8		)	—		(8		)	—
Total	$	700		$	2		$	33	$	(8	)	$	159

	Year Ended December 31, 2017
	Net Derivative Gains (Losses) Recognized for Derivatives			Net Derivative Gains (Losses) Recognized for Hedged Items			Net Investment Income			Policyholder Benefits and Claims			Amount of Gains (Losses) deferred in AOCI
	(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate derivatives	$	2		$	(2	)	$	2		$	—		$	—
Total fair value hedges	2			(2		)	2			—			—
Cash flow hedges:
Interest rate derivatives	2			—			6			—			3
Foreign currency exchange rate derivatives	10			(9		)	21			—			(160		)
Total cash flow hedges	12			(9		)	27			—			(157		)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives	(57		)	—			—			10			—
Foreign currency exchange rate derivatives	(84		)	(33		)	—			—			—
Credit derivatives	34			—			—			—			—
Equity derivatives	(2,565		)	—			(1		)	(335		)	—
Embedded derivatives	1,082			—			—			(16		)	—
Total non-qualifying hedges	(1,590		)	(33		)	(1		)	(341		)	—
Total	$	(1,576	)	$	(44	)	$	28		$	(341	)	$	(157	)

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

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation.

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: 

	December 31,
	2019					2018
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	$	11	$	615	2.5	$	8	$	689	2.0
Baa	25		1,020		5.1	3		1,131		5.0
Total	$	36	$	1,635	4.1	$	11	$	1,820	3.9

_______________

(1) The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. 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.

Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral [Table Text block]

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:

			Gross Amounts Not Offset on the Consolidated Balance Sheets
	Gross Amount Recognized		Financial Instruments (1)			Collateral Received/Pledged (2)			Net Amount		Securities Collateral Received/Pledged (3)			Net Amount After Securities Collateral
	(In millions)
December 31, 2019
Derivative assets	$	3,062	$	(1,458	)	$	(1,115	)	$	489	$	(488	)	$	1
Derivative liabilities	$	2,522	$	(1,458	)	$	—		$	1,064	$	(1,061	)	$	3
December 31, 2018
Derivative assets	$	2,833	$	(1,671	)	$	(1,062	)	$	100	$	(86	)	$	14
Derivative liabilities	$	2,104	$	(1,671	)	$	—		$	433	$	(433	)	$	—

_______________

(1) Represents amounts subject to an enforceable master netting agreement or similar agreement.

(2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement.

(3) Securities collateral received by the Company is not recorded on the balance sheet. Amounts do not include excess of collateral pledged or received.

Schedule of Derivative Instruments [Table Text Block]

The following table presents the aggregate estimated fair value of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments.

	December 31,
	2019		2018
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	1,064	$	433
Estimated Fair Value of Collateral Provided (2):
Fixed maturity securities	$	1,473	$	797

_______________

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

(2)

Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately.