XML 37 R25.htm IDEA: XBRL DOCUMENT v3.19.1
Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2019
Derivative Instruments [Abstract]  
Outstanding Derivative Instruments With Off-Balance-Sheet Risks







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



As of March 31, 2019

 

As of December 31, 2018

 



Notional

 

Fair Value

 

Notional

 

Fair Value

 



Amounts

 

Asset

 

Liability

 

Amounts

 

Asset

 

Liability

 

Qualifying Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts (1)

$

 2,567 

 

$

 64 

 

$

 51 

 

$

 2,741 

 

$

 70 

 

$

 9 

 

Foreign currency contracts (1)

 

 2,442 

 

 

 153 

 

 

 36 

 

 

 2,326 

 

 

 167 

 

 

 39 

 

Total cash flow hedges

 

 5,009 

 

 

 217 

 

 

 87 

 

 

 5,067 

 

 

 237 

 

 

 48 

 

Fair value hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts (1)

 

 1,261 

 

 

 80 

 

 

 163 

 

 

 1,268 

 

 

 55 

 

 

 137 

 

Non-Qualifying Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts (1)

 

 95,308 

 

 

 588 

 

 

 105 

 

 

 100,628 

 

 

 464 

 

 

 138 

 

Foreign currency contracts (1)

 

 11 

 

 

 -

 

 

 -

 

 

 47 

 

 

 -

 

 

 -

 

Equity market contracts (1)

 

 32,795 

 

 

 613 

 

 

 404 

 

 

 30,487 

 

 

 676 

 

 

 162 

 

Credit contracts (1)

 

 60 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Embedded derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GLB direct (2)

 

 -

 

 

 439 

 

 

 -

 

 

 -

 

 

 123 

 

 

 -

 

GLB ceded (2) (3)

 

 -

 

 

 50 

 

 

 8 

 

 

 -

 

 

 72 

 

 

 -

 

Reinsurance related (4)

 

 -

 

 

 -

 

 

 177 

 

 

 -

 

 

 -

 

 

 3 

 

Indexed annuity and IUL contracts (2) (5)

 

 -

 

 

 872 

 

 

 1,730 

 

 

 -

 

 

 902 

 

 

 1,305 

 

Total derivative instruments

$

 134,444 

 

$

 2,859 

 

$

 2,674 

 

$

 137,497 

 

$

 2,529 

 

$

 1,793 

 





(1)

Reported in derivative investments and other liabilities on our Consolidated Balance Sheets.

(2)

Reported in other assets on our Consolidated Balance Sheets.

(3)

Reported in other liabilities on our Consolidated Balance Sheets.

(4)

Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets.

(5)

Reported in future contract benefits on our Consolidated Balance Sheets.
Maturity Of The Notional Amounts Of Derivative Financial Instruments





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Remaining Life as of March 31, 2019

 



Less Than

 

1 - 5

 

6 - 10

 

11 - 30

 

Over 30

 

 

 



1 Year

 

Years

 

Years

 

Years

 

Years

 

Total

 

Interest rate contracts (1)

$

 11,465 

 

$

 9,727 

 

$

 51,648 

 

$

 24,583 

 

$

 1,713 

 

$

 99,136 

 

Foreign currency contracts (2)

 

 66 

 

 

 264 

 

 

 764 

 

 

 1,278 

 

 

 81 

 

 

 2,453 

 

Equity market contracts

 

 22,440 

 

 

 5,198 

 

 

 1,996 

 

 

 13 

 

 

 3,148 

 

 

 32,795 

 

Credit contracts

 

 -

 

 

 -

 

 

 60 

 

 

 -

 

 

 -

 

 

 60 

 

Total derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with notional amounts

$

 33,971 

 

$

 15,189 

 

$

 54,468 

 

$

 25,874 

 

$

 4,942 

 

$

 134,444 

 



(1)

As of March 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067.

(2)

As of March 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049.



Cumulative Basis Adjustments For Fair Value Hedges



 

 

 

 

 

 

 

 



As of March 31, 2019

 



 

 

 

 

 

 

 

 



 

 

 

 

Cumulative

 



 

 

 

 

Fair Value Hedging

 



 

 

 

 

Adjustment Included

 



Amortized Cost

 

in the Amortized

 



of the Hedged

 

Cost of the Hedged

 



Assets (Liabilities)

 

Assets (Liabilities)

 

Line Items in which the Hedged Items are Recorded

 

 

 

 

 

 

 

 

Fixed maturity AFS securities, at fair value

$

 

 457

 

$

 

 161

 

Long-term debt (1)

 

 

 (976

)

 

 

 (101

)



(1)

The balance includes $(122) million of unamortized adjustments from discontinued hedges as of March 31, 2019.
Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI



 

 

 

 

 

 



 

 

 

 

 

 



For the Three

 



Months Ended

 



March 31,

 



2019

 

2018

 

Unrealized Gain (Loss) on Derivative Instruments

 

 

 

 

 

 

Balance as of beginning-of-year

$

 139

 

$

 (29

)

Other comprehensive income (loss):

 

 

 

 

 

 

Unrealized holding gains (losses) arising during the period:

 

 

 

 

 

 

Cumulative effect from adoption of

 

 

 

 

 

 

new accounting standard

 

 -

 

 

 (6

)

Cash flow hedges:

 

 

 

 

 

 

Interest rate contracts

 

 (47

)

 

 53

 

Foreign currency contracts

 

 11

 

 

 (37

)

Change in foreign currency exchange rate adjustment

 

 (14

)

 

 (50

)

Change in DAC, VOBA, DSI and DFEL

 

 6

 

 

 4

 

Income tax benefit (expense)

 

 10

 

 

 7

 

Less:

 

 

 

 

 

 

Reclassification adjustment for gains (losses)

 

 

 

 

 

 

included in net income (loss):

 

 

 

 

 

 

Cash flow hedges:

 

 

 

 

 

 

Interest rate contracts (1)

 

 1

 

 

 1

 

Interest rate contracts (2)

 

 (1

)

 

 (3

)

Foreign currency contracts (1)

 

 7

 

 

 5

 

Foreign currency contracts (3)

 

 1

 

 

 -

 

Associated amortization of DAC, VOBA, DSI and DFEL

 

 (1

)

 

 (1

)

Income tax benefit (expense)

 

 (1

)

 

 -

 

Balance as of end-of-period

$

 99

 

$

 (60

)



(1)

The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss).

(2)

The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss).

(3)

The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).



Effects Of Qualifying And Non-Qualifying Hedges



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 



 

Gain (Loss) Recognized in Income

 



 

For the Three Months Ended March 31, 2019

 



 

Realized

 

 

Net

 

Commissions

 

 

Interest

 



 

Gain

 

 

Investment

 

 

and Other

 

 

 

and Debt

 



 

(Loss)

 

 

Income

 

 

Expenses

 

 

 

Expense

 

Total Line Items in which the Effects of Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

or Cash Flow Hedges are Recorded

$

 (362

)

$

 1,251

 

$

 1,176

 

 

$

 71

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Qualifying Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain or (loss) on fair value hedging relationships:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedged items

 

 -

 

 

 24

 

 

 -

 

 

 

 (34

)

Derivatives designated as hedging instruments

 

 -

 

 

 (24

)

 

 -

 

 

 

 34

 

Gain or (loss) on cash flow hedging relationships:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of gain or (loss) reclassified from AOCI into income

 

 -

 

 

 1

 

 

 -

 

 

 

 (1

)

Foreign currency contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of gain or (loss) reclassified from AOCI into income

 

 1

 

 

 7

 

 

 -

 

 

 

 -

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Qualifying Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

 357

 

 

 -

 

 

 -

 

 

 

 -

 

Equity market contracts

 

 (458

)

 

 -

 

 

 -

 

 

 

 -

 

Embedded derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

GLB

 

 286

 

 

 -

 

 

 -

 

 

 

 -

 

Reinsurance related

 

 (174

)

 

 -

 

 

 -

 

 

 

 -

 

Indexed annuity and IUL contracts

 

 (239

)

 

 -

 

 

 -

 

 

 

 -

 



Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations



 

 

 

 

 



 

 

 

 

 



For the Three

 



Months Ended

 



 

March 31,

 

 



 

2018

 

 

Qualifying Hedges

 

 

 

 

 

Cash flow hedges:

 

 

 

 

 

Interest rate contracts (1)

 

$

 1

 

 

Interest rate contracts (2)

 

 

 (3

)

 

Foreign currency contracts (1)

 

 

 5

 

 

Total cash flow hedges

 

 

 3

 

 

Fair value hedges:

 

 

 

 

 

Interest rate contracts (1)

 

 

 (4

)

 

Interest rate contracts (2)

 

 

 6

 

 

Interest rate contracts (3)

 

 

 33

 

 

Total fair value hedges

 

 

 35

 

 

Non-Qualifying Hedges

 

 

 

 

 

Interest rate contracts (3)

 

 

 (314

)

 

Foreign currency contracts (3)

 

 

 2

 

 

Equity market contracts (3)

 

 

 7

 

 

Equity market contracts (4)

 

 

 (2

)

 

Embedded derivatives:

 

 

 

 

 

GLB (3)

 

 

 157

 

 

Reinsurance related (3)

 

 

 23

 

 

Indexed annuity and IUL contracts (3)

 

 

 52

 

 

Total derivative instruments

 

$

 (37

)

 



(1)

Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss).

(2)

Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss).

(3)

Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

(4)

Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss).
Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges



 

 

 

 

 



 

 

 

 

 



For the Three

 



Months Ended

 



 

March 31,

 

 



 

2018

 

 

Offset to net investment income

 

$

 6

 

 

Offset to interest and debt expense

 

 

 (3

)

 



 

 

 

 

 



Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

As of March 31, 2019

 

As of December 31, 2018

 



 

Collateral

 

Collateral

 

Collateral

 

Collateral

 



 

Posted by

 

Posted by

 

Posted by

 

Posted by

 

S&P

 

Counter-

 

LNC

 

Counter-

 

LNC

 

Credit

 

Party

 

(Held by

 

Party

 

(Held by

 

Rating of

 

(Held by

 

Counter-

 

(Held by

 

Counter-

 

Counterparty

 

LNC)

 

Party)

 

LNC)

 

Party)

 

AA-

 

$

 56

 

$

 (3

)

$

 33

 

$

 (3

)

A+

 

 

 389

 

 

 (281

)

 

 296

 

 

 (96

)

A

 

 

 5

 

 

 -

 

 

 106

 

 

 (56

)

A-

 

 

 244

 

 

 (1

)

 

 4

 

 

 -

 

BBB+

 

 

 -

 

 

 -

 

 

 197

 

 

 -

 



 

$

 694

 

$

 (285

)

$

 636

 

$

 (155

)



Schedule Of Offsetting Assets And Liabilities



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

As of March 31, 2019

 



 

 

 

 

Embedded

 

 

 

 



Derivative

Derivative

 

 

 

 



Instruments

Instruments

 

Total

 



 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Gross amount of recognized assets

 

$

 1,350

 

 

$

 1,361

 

 

$

 2,711

 

Gross amounts offset

 

 

 (369

)

 

 

 -

 

 

 

 (369

)

Net amount of assets

 

 

 981

 

 

 

 1,361

 

 

 

 2,342

 

Gross amounts not offset:

 

 

 

 

 

 

 

 

 

 

 

 

Cash collateral

 

 

 (694

)

 

 

 -

 

 

 

 (694

)

Non-cash collateral

 

 

 (116

)

 

 

 -

 

 

 

 (116

)

Net amount

 

$

 171

 

 

$

 1,361

 

 

$

 1,532

 



 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Gross amount of recognized liabilities

 

$

 910

 

 

$

 1,915

 

 

$

 2,825

 

Gross amounts offset

 

 

 (148

)

 

 

 -

 

 

 

 (148

)

Net amount of liabilities

 

 

 762

 

 

 

 1,915

 

 

 

 2,677

 

Gross amounts not offset:

 

 

 

 

 

 

 

 

 

 

 

 

Cash collateral

 

 

 (285

)

 

 

 -

 

 

 

 (285

)

Non-cash collateral

 

 

 (346

)

 

 

 -

 

 

 

 (346

)

Net amount

 

$

 131

 

 

$

 1,915

 

 

$

 2,046

 



 

 

 

 

 

 

 

 

 

 

 

 





 

 

 

 

 

 

 

 

 

 

 

 



 

As of December 31, 2018

 



 

 

 

 

Embedded

 

 

 

 



Derivative

Derivative

 

 

 

 



Instruments

Instruments

 

Total

 



 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Gross amount of recognized assets

 

$

 1,330

 

 

$

 1,097

 

 

$

 2,427

 

Gross amounts offset

 

 

 (223

)

 

 

 -

 

 

 

 (223

)

Net amount of assets

 

 

 1,107

 

 

 

 1,097

 

 

 

 2,204

 

Gross amounts not offset:

 

 

 

 

 

 

 

 

 

 

 

 

Cash collateral

 

 

 (636

)

 

 

 -

 

 

 

 (636

)

Non-cash collateral

 

 

 (58

)

 

 

 -

 

 

 

 (58

)

Net amount

 

$

 413

 

 

$

 1,097

 

 

$

 1,510

 



 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Gross amount of recognized liabilities

 

$

 784

 

 

$

 1,308

 

 

$

 2,092

 

Gross amounts offset

 

 

 (103

)

 

 

 -

 

 

 

 (103

)

Net amount of liabilities

 

 

 681

 

 

 

 1,308

 

 

 

 1,989

 

Gross amounts not offset:

 

 

 

 

 

 

 

 

 

 

 

 

Cash collateral

 

 

 (155

)

 

 

 -

 

 

 

 (155

)

Non-cash collateral

 

 

 (190

)

 

 

 -

 

 

 

 (190

)

Net amount

 

$

 336

 

 

$

 1,308

 

 

$

 1,644