Derivatives (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value


	Net Derivatives								Asset Derivatives				Liability Derivatives
	Notional Amount				Fair Value				Fair Value				Fair Value
	Successor Company		Predecessor Company		Successor Company		Predecessor Company		Successor Company		Predecessor Company		Successor Company		Predecessor Company
Hedge Designation/Derivative Type	Dec 31, 2021		Dec 31, 2020		Dec 31, 2021		Dec 31, 2020		Dec 31, 2021		Dec 31, 2020		Dec 31, 2021		Dec 31, 2020
Cash flow hedges
Interest rate swaps	$	100	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Foreign currency swaps	—		25		—		(2)		—		—		—		(2)
Total cash flow hedges	100		25		—		(2)		—		—		—		(2)



Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	3,074		3,419		(7)		(13)		19		28		(26)		(41)
Foreign exchange contracts
Foreign currency swaps and forwards	161		222		9		—		10		8		(1)		(8)

Credit contracts
Credit derivatives that purchase credit protection	—		40		—		—		—		—		—		—
Credit derivatives that assume credit risk	100		—		2		—		2		—		—		—

Equity contracts
Equity index swaps, options, and futures	—		2,000		—		—		—		—		—		—
Variable annuity hedge program
GMWB product derivatives [1]	7,086		7,803		80		21		100		33		(20)		(12)
GMWB reinsurance contracts	1,555		1,688		(8)		7		—		7		(8)		—

Macro hedge program	22,991		24,188		(213)		(453)		145		268		(358)		(721)
Fixed indexed annuities
FIA product derivative [1]	5,485		—		(655)		—		—		—		(655)		—
Other
Modified coinsurance reinsurance contracts	775		843		15		(93)		15		—		—		(93)
Total non-qualifying strategies	41,227		40,203		(777)		(531)		291		344		(1,068)		(875)
Total cash flow hedges, fair value hedges, and non-qualifying strategies	$	41,327	$	40,228	$	(777)	$	(533)	$	291	$	344	$	(1,068)	$	(877)
Balance Sheet Location
Fixed maturities, available-for-sale	$	56	$	49	$	—	$	—	$	—	$	—	$	—	$	—
Other investments	8,163		5,791		43		12		91		13		(48)		(1)
Other liabilities	18,206		24,054		(252)		(480)		85		291		(337)		(771)
Reinsurance recoverables	2,331		2,531		7		(86)		15		7		(8)		(93)
Other policyholder funds and benefits payable	12,571		7,803		(575)		21		100		33		(675)		(12)
Total derivatives	$	41,327	$	40,228	$	(777)	$	(533)	$	291	$	344	$	(1,068)	$	(877)

[1] These derivatives are embedded within liabilities and are not held for risk management purposes.

Offsetting Assets


Offsetting Derivative Assets and Liabilities (Successor Company)
	(i)		(ii)		(iii) = (i) - (ii)						(v) = (iii) - (iv)
					Net Amounts Presented on the Statement of Financial Position				Collateral Disallowed for Offset on the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset on the Statement of Financial Position		Derivative Assets [1] (Liabilities) [2]		Accrued Interest and Cash Collateral (Received) [3] Pledged [2]		Financial Collateral (Received) Pledged [4]		Net Amount
As of December 31, 2021 (Successor Company)
Other investments	$	176	$	162	$	43	$	(29)	$	5	$	9
Other liabilities	(385)		(134)		(252)		1		(251)		—
As of December 31, 2020 (Predecessor Company)
Other investments	$	304	$	295	$	12	$	(3)	$	—	$	9
Other liabilities	(772)		(279)		(480)		(13)		(488)		(5)

[1] Included in other invested assets on the Company's Consolidated Balance Sheets.

[2] Included in other liabilities on the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

[3] Included in other investments on the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

[4] Excludes collateral associated with exchange-traded derivative instruments.

Offsetting Liabilities


Repurchase Agreements
	Successor Company		Predecessor Company
	December 31, 2021		December 31, 2020
	Fair Value		Fair Value




Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	663	$	262
Gross amount of collateral pledged related to repurchase agreements [1]	$	679	$	267
Gross amount of recognized receivables for reverse repurchase agreements [2]	$	44	$	28

[1] Collateral pledged is included within fixed maturities, AFS and short-term investments on the Company's Consolidated Balance Sheets.

[2] Collateral received is included within short-term investments on the Company's Consolidated Balance Sheets.


Offsetting Derivative Assets and Liabilities (Successor Company)
	(i)		(ii)		(iii) = (i) - (ii)						(v) = (iii) - (iv)
					Net Amounts Presented on the Statement of Financial Position				Collateral Disallowed for Offset on the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset on the Statement of Financial Position		Derivative Assets [1] (Liabilities) [2]		Accrued Interest and Cash Collateral (Received) [3] Pledged [2]		Financial Collateral (Received) Pledged [4]		Net Amount
As of December 31, 2021 (Successor Company)
Other investments	$	176	$	162	$	43	$	(29)	$	5	$	9
Other liabilities	(385)		(134)		(252)		1		(251)		—
As of December 31, 2020 (Predecessor Company)
Other investments	$	304	$	295	$	12	$	(3)	$	—	$	9
Other liabilities	(772)		(279)		(480)		(13)		(488)		(5)

[1] Included in other invested assets on the Company's Consolidated Balance Sheets.

[2] Included in other liabilities on the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

[3] Included in other investments on the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

[4] Excludes collateral associated with exchange-traded derivative instruments.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location


Derivatives in Cash Flow Hedging Relationships
Gain (Loss) Recognized in OCI
	Successor Company		Predecessor Company
	For the Period of July 1, 2021 to December 31, 2021		For the Six Months Ended June 30, 2021		For the Years Ended December 31,
					2020		2019
Interest rate swaps	$	—	$	—	$	—	$	—
Foreign currency swaps	—		—		(2)		—
Total	$	—	$	—	$	(2)	$	—


Derivatives in Cash Flow Hedging Relationships (Successor Company)
Gain (Loss) Reclassified from AOCI into Income
	For the Period of July 1, 2021 to December 31, 2021
	Net Realized Capital Gain (Loss)		Net Investment Income
Interest rate swaps	—		—
Foreign currency swaps	—		—
Total	$	—	$	—
Total amounts presented on the Consolidated Statements of Operations	$	(20)	$	498

Derivative Instruments, Gain (Loss)


Non-qualifying Strategies Gain (Loss) Recognized within Net Realized Capital Gains (Losses)
	Successor Company		Predecessor Company
	For the Period of July 1, 2021 to December 31, 2021		For the Six Months Ended June 30, 2021		For the Years Ended December 31,
					2020		2019
Variable annuity hedge program
GMWB product derivatives	$	29	$	82	$	67	$	134
GMWB reinsurance contracts	4		(24)		(27)		(13)
GMWB hedging instruments					42		(68)
Macro hedge program	(100)		(301)		(414)		(418)
Total variable annuity hedge program	(67)		(243)		(332)		(365)
Foreign exchange contracts
Foreign currency swaps and forwards	5		(2)		(4)		—
Fixed payout annuity hedge	—		—		—		(4)
Total foreign exchange contracts	5		(2)		(4)		(4)
Other non-qualifying derivatives
Interest rate contracts
Interest rate swaps, swaptions, and futures	21		(76)		180		103
Credit contracts
Credit derivatives that purchase credit protection	—		—		19		—
Credit derivatives that assume credit risk	1		—		—		7
Equity contracts
Equity index swaps and options	—		—		—		(1)


Other

Modified coinsurance reinsurance contracts	15		22		(50)		(55)
Total other non-qualifying derivatives	37		(54)		149		54
Total [1]	$	(25)	$	(299)	$	(187)	$	(315)

[1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option.

Disclosure of Credit Derivatives


As of December 31, 2021 (Successor Company) [4]
						Underlying Referenced Credit Obligation(s) [1]
Credit Derivative Type by Derivative Risk Exposure	Notional Amount [2]		Fair Value		Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount		Offsetting Fair Value



Basket credit default swaps [3]
Investment grade risk exposure	$	100	$	2	5 years	Corporate Credit	BBB+	$	—	$	—





Total	$	100	$	2				$	—	$	—

[1] The average credit ratings are based on availability and are generally the midpoint of the available 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] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.

[3] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.

[4] As of December 31, 2020 (Predecessor Company), the Company did not hold any credit derivatives that assume credit risk.

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details