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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Outstanding Derivative Instruments With Off-Balance-Sheet Risks



	As of June 30, 2022						As of December 31, 2021
	Notional		Fair Value				Notional		Fair Value
	Amounts		Asset		Liability		Amounts		Asset		Liability
Qualifying Hedges
Cash flow hedges:
Interest rate contracts ⁽¹⁾	$	3,347	$	8	$	227	$	3,222	$	98	$	436
Foreign currency contracts ⁽¹⁾		4,281		598		8		3,979		283		51
Total cash flow hedges		7,628		606		235		7,201		381		487
Fair value hedges:
Interest rate contracts ⁽¹⁾		1,156		-		92		1,157		-		213
Non-Qualifying Hedges
Interest rate contracts ⁽¹⁾		89,687		596		579		82,786		897		176
Foreign currency contracts ⁽¹⁾		382		27		1		487		7		2
Equity market contracts ⁽¹⁾		94,669		4,598		1,813		92,641		6,461		2,108
Commodity contracts ⁽¹⁾		10		9		-		-		-		-
Credit contracts ⁽¹⁾		244		-		-		49		-		-
Embedded derivatives:
GLB direct ⁽²⁾		-		1,400		-		-		1,963		-
GLB ceded ⁽²⁾		-		41		136		-		56		182
Reinsurance-related ⁽³⁾		-		305		-		-		-		206
Indexed annuity and IUL contracts ^{(2) (4)}		-		440		3,366		-		528		6,131
Total derivative instruments	$	193,776	$	8,022	$	6,222	$	184,321	$	10,293	$	9,505

⁽¹⁾Reported in derivative investments and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽³⁾Reported in other assets and reinsurance-related embedded derivatives on our Consolidated Balance Sheets.

⁽⁴⁾Reported in future contract benefits on our Consolidated Balance Sheets.

Maturity Of The Notional Amounts Of Derivative Financial Instruments

The maturity of the notional amounts of derivative instruments (in millions) was as follows:



	Remaining Life as of June 30, 2022
	Less Than		1 - 5		6 - 10		11 - 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts ⁽¹⁾	$	24,276	$	29,824	$	21,587	$	17,290	$	1,213	$	94,190
Foreign currency contracts ⁽²⁾		295		633		1,627		2,014		94		4,663
Equity market contracts		55,093		22,871		7,303		10		9,392		94,669
Commodity contracts		10		-		-		-		-		10
Credit contracts		-		244		-		-		-		244
Total derivative instruments
with notional amounts	$	79,674	$	53,572	$	30,517	$	19,314	$	10,699	$	193,776

⁽¹⁾As of June 30, 2022, 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, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061.

The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:



							Cumulative Fair Value
							Hedging Adjustment
							Included in the
	Amortized Cost of the						Amortized Cost of the
	Hedged						Hedged
	Assets / (Liabilities)						Assets / (Liabilities)
	As of			As of			As of		As of
	June 30,			December 31,			June 30,		December 31,
	2022			2021			2022		2021
Line Item in the Consolidated Balance Sheets in
which the Hedged Item is Included
Fixed maturity AFS securities, at fair value	$	640		$	764		$	89	$	211
Long-term debt ⁽¹⁾		(736	)		(854	)		139		21

⁽¹⁾Includes $(349) million and $(356) million of unamortized adjustments from discontinued hedges as of June 30, 2022, and December 31, 2021, respectively.

Cumulative Basis Adjustments For Fair Value Hedges



							Cumulative Fair Value
							Hedging Adjustment
							Included in the
	Amortized Cost of the						Amortized Cost of the
	Hedged						Hedged
	Assets / (Liabilities)						Assets / (Liabilities)
	As of			As of			As of		As of
	June 30,			December 31,			June 30,		December 31,
	2022			2021			2022		2021
Line Item in the Consolidated Balance Sheets in
which the Hedged Item is Included
Fixed maturity AFS securities, at fair value	$	640		$	764		$	89	$	211
Long-term debt ⁽¹⁾		(736	)		(854	)		139		21

⁽¹⁾Includes $(349) million and $(356) million of unamortized adjustments from discontinued hedges as of June 30, 2022, and December 31, 2021, respectively.

Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI



	For the Six
	Months Ended
	June 30,
	2022			2021
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	(103	)	$	(402	)
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		107			85
Foreign currency contracts		19			55
Change in foreign currency exchange rate adjustment		373			45
Change in DAC, VOBA, DSI and DFEL		13			(11	)
Income tax benefit (expense)		(107	)		(36	)
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts ⁽¹⁾		1			1
Interest rate contracts ⁽²⁾		(10	)		(12	)
Foreign currency contracts ⁽¹⁾		30			21
Foreign currency contracts ⁽³⁾		4			(2	)
Associated amortization of DAC, VOBA, DSI and DFEL		(1	)		(1	)
Income tax benefit (expense)		(5	)		(1	)
Balance as of end-of-period	$	283		$	(270	)

⁽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,
	2022									2021
	Realized			Net			Interest			Realized			Net			Interest
	Gain			Investment			and Debt			Gain			Investment			and Debt
	(Loss)			Income			Expense			(Loss)			Income			Expense
Total Line Items in which the
Effects of Fair Value or Cash
Flow Hedges are Recorded	$	522		$	1,369		$	68		$	(2	)	$	1,584		$	65

Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(58	)		60			-			35			(42	)
Derivatives designated as
hedging instruments		-			58			(60	)		-			(35	)		42
Gain or (loss) on cash flow
hedging relationships:
Interest rate contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		-			-			(4	)		-			-			(6	)
Foreign currency contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		1			17			-			-			11			-

Non-Qualifying Hedges
Interest rate contracts		(625	)		-			-			432			-			-
Foreign currency contracts		2			-			-			(1	)		-			-
Equity market contracts		(1,588	)		-			-			713			-			-
Commodity contracts		9			-			-			-			-			-
Embedded derivatives:
GLB		(443	)		-			-			(53	)		-			-
Reinsurance-related		248			-			-			(84	)		-			-
Indexed annuity and IUL
contracts		2,177			-			-			(735	)		-			-

Open Credit Default Swap Liabilities

As of June 30, 2022

Credit

Reason

Nature

Rating of

Number

Maximum

for

Underlying

Fair

Potential

Credit Contract Type

Maturity

Entering

Recourse

Obligation ⁽¹⁾

Instruments

Value ⁽²⁾

Payout

Basket CDSs

6/20/2027

⁽³⁾

⁽⁴⁾

BBB+

244

⁽¹⁾Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings.

⁽²⁾Broker quotes are used to determine the market value of our CDSs.

⁽³⁾CDSs were entered into in order to hedge the liability exposure on certain variable annuity products.

⁽⁴⁾Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract.

Collateral Support Agreements



	As of			As of
	June 30,		December 31,
	2022			2021
Maximum potential payout	$	244		$	-
Less: Counterparty thresholds		-			-
Maximum collateral potentially required to post	$	244		$	-

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



	As of June 30, 2022					As of December 31, 2021
	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-	$	677	$	(2	)	$	2,346	$	(281	)
A+		2,489		(211	)		2,772		(251	)
A		126		(20	)		456		(189	)
	$	3,292	$	(233	)	$	5,574	$	(721	)

Schedule Of Offsetting Assets And Liabilities



	As of June 30, 2022
				Embedded
	Derivative			Derivative
	Instruments			Instruments		Total

Financial Assets
Gross amount of recognized assets	$	5,469		$	2,186	$	7,655
Gross amounts offset		(2,379	)		-		(2,379	)
Net amount of assets ⁽¹⁾		3,090			2,186		5,276
Gross amounts not offset:
Cash collateral ⁽²⁾		(3,090	)		-		(3,090	)
Non-cash collateral		-			-		-
Net amount	$	-		$	2,186	$	2,186

Financial Liabilities
Gross amount of recognized liabilities	$	250		$	3,502	$	3,752
Gross amounts offset		(88	)		-		(88	)
Net amount of liabilities		162			3,502		3,664
Gross amounts not offset:
Cash collateral ⁽²⁾		(162	)		-		(162	)
Non-cash collateral		-			-		-
Net amount	$	-		$	3,502	$	3,502

⁽¹⁾Includes deferred premiums receivable (payable) of $(279) million reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Excludes excess cash collateral received of $202 million and excess cash collateral pledged of $71 million, as the cash collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

‎



	As of December 31, 2021
				Embedded
	Derivative			Derivative
	Instruments			Instruments		Total
Financial Assets
Gross amount of recognized assets	$	7,938		$	2,547	$	10,485
Gross amounts offset		(2,241	)		-		(2,241	)
Net amount of assets ⁽¹⁾		5,697			2,547		8,244
Gross amounts not offset:
Cash collateral ⁽²⁾		(5,574	)		-		(5,574	)
Non-cash collateral		(123	)		-		(123	)
Net amount	$	-		$	2,547	$	2,547

Financial Liabilities
Gross amount of recognized liabilities	$	777		$	6,519	$	7,296
Gross amounts offset		(68	)		-		(68	)
Net amount of liabilities		709			6,519		7,228
Gross amounts not offset:
Cash collateral ⁽²⁾		(709	)		-		(709	)
Non-cash collateral		-			-		-
Net amount	$	-		$	6,519	$	6,519

⁽¹⁾Includes deferred premiums receivable (payable) of $260 million reported in other assets on our Consolidated Balance Sheets.

⁽²⁾Excludes excess cash collateral pledged of $12 million, as the cash collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.