Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments [Abstract]

Outstanding Derivative Instruments With Off-Balance-Sheet Risks

	As of March 31, 2023						As of December 31, 2022
	Notional		Fair Value				Notional		Fair Value
	Amounts		Asset		Liability		Amounts		Asset		Liability
Qualifying Hedges
Cash flow hedges:
Interest rate contracts (1)	$	2,295	$	67	$	143	$	2,590	$	123	$	232
Foreign currency contracts (1)		4,400		637		19		4,383		643		18
Total cash flow hedges		6,695		704		162		6,973		766		250
Fair value hedges:
Interest rate contracts (1)		1,115		1		68		1,155		2		44
Non-Qualifying Hedges
Interest rate contracts (1)		83,299		607		764		105,977		709		935
Foreign currency contracts (1)		363		19		2		395		27		2
Equity market contracts (1)		215,684		6,372		2,837		142,946		5,135		2,035
Commodity contracts (1)		13		23		-		13		14		3
Credit contracts (1)		122		-		-		-		-		-
Embedded derivatives:
Reinsurance-related (2)		-		367		-		-		416		-
Indexed annuity and IUL contracts (2) (3)		-		305		5,796		-		525		4,783
Total derivative instruments	$	307,291	$	8,398	$	9,629	$	257,459	$	7,594	$	8,052

⁽¹⁾These asset and liability balances are presented on a gross basis. Amounts are reported in derivative investments and other liabilities on the Consolidated Balance Sheets after the evaluation for right of offset subject to master netting agreements.

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

⁽³⁾Reported in policyholder account balances on the Consolidated Balance Sheets.

Maturity Of The Notional Amounts Of Derivative Financial Instruments

	Remaining Life as of March 31, 2023
	Less Than		1 - 5		6 - 10		11 - 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts (1)	$	19,876	$	19,738	$	21,449	$	21,433	$	4,213	$	86,709
Foreign currency contracts (2)		220		767		1,622		2,112		42		4,763
Equity market contracts		158,344		38,948		7,515		9		10,868		215,684
Commodity contracts		13		-		-		-		-		13
Credit contracts		-		50		72		-		-		122
Total derivative instruments
with notional amounts	$	178,453	$	59,503	$	30,658	$	23,554	$	15,123	$	307,291

⁽¹⁾As of March 31, 2023, 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 March 31, 2023, 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.

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
	March 31,			December 31,			March 31,		December 31,
	2023			2022			2023		2022
Line Item in the Consolidated Balance Sheets in
which the Hedged Item is Included
Fixed maturity AFS securities, at fair value	$	556		$	587		$	60	$	44
Long-term debt (1)		(719	)		(698	)		156		177

⁽¹⁾Includes $(337) million and $(341) million of unamortized adjustments from discontinued hedges as of March 31, 2023, and December 31, 2022, respectively.

Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI

	For the Three
	Months Ended
	March 31,
	2023			2022
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	388		$	(85	)
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		58			61
Foreign currency contracts		76			(17	)
Change in foreign currency exchange rate adjustment		(67	)		75
Income tax benefit (expense)		(15	)		(24	)
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts (1)		-			1
Interest rate contracts (2)		6			(6	)
Foreign currency contracts (1)		14			13
Foreign currency contracts (3)		2			3
Income tax benefit (expense)		(5	)		(2	)
Balance as of end-of-period	$	423		$	1

⁽¹⁾The OCI offset is reported within net investment income on the Consolidated Statements of Comprehensive Income (Loss).

⁽²⁾The OCI offset is reported within interest and debt expense on the Consolidated Statements of Comprehensive Income (Loss).

⁽³⁾The OCI offset is reported within realized gain (loss) on the 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,
	2023									2022
	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	$	(828	)	$	1,466		$	83		$	181		$	1,411		$	66
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			16			(21	)		-			(63	)		58
Derivatives designated as
hedging instruments		-			(16	)		21			-			63			(58	)
Gain or (loss) on cash flow
hedging relationships:
Interest rate contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		-			-			6			-			1			(6	)
Foreign currency contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		2			14			-			3			13			-
Non-Qualifying Hedges
Interest rate contracts		332			-			-			(821	)		-			-
Foreign currency contracts		(1	)		-			-			-			-			-
Equity market contracts		(53	)		-			-			(324	)		-			-
Commodity contracts		11			-			-			-			-			-
Credit contracts		(1	)		-			-			-			-			-
Embedded derivatives:
Reinsurance-related		(49	)		-			-			263			-			-
Indexed annuity and IUL
contracts		(713	)		-			-			506			-			-

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

	As of March 31, 2023					As of December 31, 2022
	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-	$	510	$	(5	)	$	383	$	(6	)
A+		1,781		(111	)		1,718		(166	)
A		1,247		(5	)		1,172		-
	$	3,538	$	(121	)	$	3,273	$	(172	)

Schedule Of Offsetting Assets And Liabilities

	As of March 31, 2023
				Embedded
	Derivative			Derivative
	Instruments			Instruments		Total
Financial Assets
Gross amount of recognized assets	$	7,708		$	672	$	8,380
Gross amounts offset		(3,703	)		-		(3,703	)
Net amount of assets		4,005			672		4,677
Gross amounts not offset:
Cash collateral		(3,538	)		-		(3,538	)
Non-cash collateral (1)		(467	)		-		(467	)
Net amount	$	-		$	672	$	672
Financial Liabilities
Gross amount of recognized liabilities	$	129		$	5,796	$	5,925
Gross amounts offset		(17	)		-		(17	)
Net amount of liabilities		112			5,796		5,908
Gross amounts not offset:
Cash collateral (2)		(112	)		-		(112	)
Non-cash collateral (2)		-			-		-
Net amount	$	-		$	5,796	$	5,796

⁽¹⁾Excludes excess non-cash collateral received of $760 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

⁽²⁾Excludes excess cash collateral pledged of $9 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. There was no excess non-cash collateral pledged as of March 31, 2023.

	As of December 31, 2022
				Embedded
	Derivative			Derivative
	Instruments			Instruments		Total
Financial Assets
Gross amount of recognized assets	$	6,604		$	941	$	7,545
Gross amounts offset		(3,010	)		-		(3,010	)
Net amount of assets		3,594			941		4,535
Gross amounts not offset:
Cash collateral		(3,273	)		-		(3,273	)
Non-cash collateral (1)		(321	)		-		(321	)
Net amount	$	-		$	941	$	941
Financial Liabilities
Gross amount of recognized liabilities	$	260		$	4,783	$	5,043
Gross amounts offset		(50	)		-		(50	)
Net amount of liabilities		210			4,783		4,993
Gross amounts not offset:
Cash collateral		(172	)		-		(172	)
Non-cash collateral (2)		(38	)		-		(38	)
Net amount	$	-		$	4,783	$	4,783

⁽¹⁾Excludes excess non-cash collateral received of $1.1 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

Excludes excess non-cash collateral pledged of $8 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.