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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Outstanding Derivative Instruments With Off-Balance-Sheet Risks



	As of June 30, 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⁾	$	2,437	$	127	$	184	$	2,741	$	70	$	9
Foreign currency contracts ⁽¹⁾		2,519		226		38		2,326		167		39
Total cash flow hedges		4,956		353		222		5,067		237		48
Fair value hedges:
Interest rate contracts ⁽¹⁾		1,261		115		196		1,268		55		137
Non-Qualifying Hedges
Interest rate contracts ⁽¹⁾		98,765		883		125		100,628		464		138
Foreign currency contracts ⁽¹⁾		284		-		1		47		-		-
Equity market contracts ⁽¹⁾		36,021		774		429		30,487		676		162
Embedded derivatives:
GLB direct ^{(2) (3)}		-		-		1		-		123		-
GLB ceded ⁽²⁾		-		111		-		-		72		-
Reinsurance related ⁽⁴⁾		-		-		310		-		-		3
Indexed annuity and IUL contracts ^{(2) (5)}		-		903		1,973		-		902		1,305
Total derivative instruments	$	141,287	$	3,139	$	3,257	$	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 June 30, 2019
	Less Than		1 - 5		6 - 10		11 - 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts ⁽¹⁾	$	11,663	$	10,031	$	53,055	$	26,001	$	1,713	$	102,463
Foreign currency contracts ⁽²⁾		304		255		831		1,345		68		2,803
Equity market contracts		24,730		5,260		2,879		13		3,139		36,021
Total derivative instruments
with notional amounts	$	36,697	$	15,546	$	56,765	$	27,359	$	4,920	$	141,287

⁽¹⁾As of June 30, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 20, 2067.

⁽²⁾As of June 30, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was February 20, 2050.

Cumulative Basis Adjustments For Fair Value Hedges


	As of June 30, 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	$	772		$	196
Long-term debt ⁽¹⁾		(1,024	)		(149	)

⁽¹⁾The balance includes $(120) million of unamortized adjustments from discontinued hedges as of June 30, 2019.

Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI



	For the Six
	Months Ended
	June 30,
	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		(119	)		106
Foreign currency contracts		87			(19	)
Change in foreign currency exchange rate adjustment		(5	)		50
Change in DAC, VOBA, DSI and DFEL		(5	)		4
Income tax benefit (expense)		8			(29	)
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts ⁽¹⁾		2			2
Interest rate contracts ⁽²⁾		(1	)		(2	)
Foreign currency contracts ⁽¹⁾		15			11
Foreign currency contracts ⁽³⁾		4			-
Associated amortization of DAC, VOBA, DSI and DFEL		(2	)		(1	)
Income tax benefit (expense)		(4	)		(2	)
Balance as of end-of-period	$	91		$	69

⁽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 June 30, 2019
		Realized			Net			Interest
		Gain			Investment			and Debt
		(Loss)			Income			Expense
Total Line Items in which the Effects of Fair Value
or Cash Flow Hedges are Recorded		$	(117	)	$	1,355		$	70

Qualifying Hedges
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items			-			34			(49	)
Derivatives designated as hedging instruments			-			(34	)		49
Gain or (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain or (loss) reclassified from AOCI into income			-			1			-
Foreign currency contracts:
Amount of gain or (loss) reclassified from AOCI into income			3			8			-

Non-Qualifying Hedges
Interest rate contracts			569			-			-
Equity market contracts			45			-			-
Embedded derivatives:
GLB			(371	)		-			-
Reinsurance related			(133	)		-			-
Indexed annuity and IUL contracts			(110	)		-			-


		Gain (Loss) Recognized in Income
	For the Six Months Ended June 30, 2019
		Realized			Net			Interest
		Gain			Investment			and Debt
		(Loss)			Income			Expense
Total Line Items in which the Effects of Fair Value
or Cash Flow Hedges are Recorded		$	(480	)	$	2,606		$	141

Qualifying Hedges
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items			-			58			(83	)
Derivatives designated as hedging instruments			-			(58	)		83

Gain or (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain or (loss) reclassified from AOCI into income			-			2			(1	)
Foreign currency contracts:
Amount of gain or (loss) reclassified from AOCI into income			4			15			-

Non-Qualifying Hedges
Interest rate contracts			926			-			-
Equity market contracts			(413	)		-			-
Embedded derivatives:
GLB			(85	)		-			-
Reinsurance Related			(307	)		-			-
Indexed annuity and IUL contracts			(349	)		-			-

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



	For the Three				For the Six
	Months Ended				Months Ended
	June 30,				June 30,
	2018				2018
Qualifying Hedges
Cash flow hedges:
Interest rate contracts ⁽¹⁾		$	1			$	2
Interest rate contracts ⁽²⁾			2				(2	)
Foreign currency contracts ⁽¹⁾			5				11
Total cash flow hedges			8				11
Fair value hedges:
Interest rate contracts ⁽¹⁾			(4	)			(9	)
Interest rate contracts ⁽²⁾			-				6
Interest rate contracts ⁽³⁾			14				47
Total fair value hedges			10				44
Non-Qualifying Hedges
Interest rate contracts ⁽³⁾			(96	)			(410	)
Foreign currency contracts ⁽³⁾			-				2
Equity market contracts ⁽³⁾			(89	)			(80	)
Equity market contracts ⁽⁴⁾			3				1
Embedded derivatives:
GLB ⁽³⁾			113				270
Reinsurance related ⁽³⁾			9				32
Indexed annuity and IUL contracts ⁽³⁾			(62	)			(10	)
Total derivative instruments		$	(104	)		$	(140	)

⁽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			For the Six
	Months Ended			Months Ended
	June 30,			June 30,
	2018			2018
Offset to net investment income		$	6		$	13
Offset to interest and debt expense			2			(2	)

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



	As of June 30, 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-	$	306	$	(186	)	$	33	$	(3	)
A+		466		(212	)		296		(96	)
A		12		(30	)		106		(56	)
A-		18		-			4		-
BBB+		337		(33	)		197		-
	$	1,139	$	(461	)	$	636	$	(155	)

Schedule Of Offsetting Assets And Liabilities



		As of June 30, 2019
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total

Financial Assets
Gross amount of recognized assets		$	1,938			$	1,014	$	2,952
Gross amounts offset			(428	)			-		(428	)
Net amount of assets			1,510				1,014		2,524
Gross amounts not offset:
Cash collateral			(1,139	)			-		(1,139	)
Non-cash collateral			(133	)			-		(133	)
Net amount		$	238			$	1,014	$	1,252

Financial Liabilities
Gross amount of recognized liabilities		$	1,066			$	2,284	$	3,350
Gross amounts offset			(186	)			-		(186	)
Net amount of liabilities			880				2,284		3,164
Gross amounts not offset:
Cash collateral			(461	)			-		(461	)
Non-cash collateral			(209	)			-		(209	)
Net amount		$	210			$	2,284	$	2,494

‎


		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