XML 48 R40.htm IDEA: XBRL DOCUMENT

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Outstanding Derivative Instruments With Off-Balance-Sheet Risks



	As of December 31, 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⁾	$	2,590	$	123	$	232	$	3,222	$	98	$	436
Foreign currency contracts ⁽¹⁾		4,383		643		18		3,979		283		51
Total cash flow hedges		6,973		766		250		7,201		381		487
Fair value hedges:
Interest rate contracts ⁽¹⁾		1,155		2		44		1,157		-		213
Non-Qualifying Hedges
Interest rate contracts ⁽¹⁾		105,977		709		935		82,786		897		176
Foreign currency contracts ⁽¹⁾		395		27		2		487		7		2
Equity market contracts ⁽¹⁾		142,946		5,135		2,035		107,515		8,490		3,909
Commodity contracts ⁽¹⁾		13		14		3		-		-		-
Credit contracts ⁽¹⁾		-		-		-		49		-		-
Embedded derivatives:
Reinsurance-related ⁽²⁾		-		416		-		-		-		206
Indexed annuity and IUL contracts ^{(2) (3)}		-		525		4,783		-		528		6,131
Total derivative instruments	$	257,459	$	7,594	$	8,052	$	199,195	$	10,303	$	11,124

⁽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 as described in Note 1.

⁽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 December 31, 2022
	Less Than		1 - 5		6 - 10		11 - 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts ⁽¹⁾	$	31,463	$	27,958	$	24,892	$	21,196	$	4,213	$	109,722
Foreign currency contracts ⁽²⁾		261		730		1,681		2,037		69		4,778
Equity market contracts		95,134		28,952		7,796		9		11,055		142,946
Commodity contracts		13		-		-		-		-		13
Total derivative instruments
with notional amounts	$	126,871	$	57,640	$	34,369	$	23,242	$	15,337	$	257,459

⁽¹⁾As of December 31, 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 December 31, 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.

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
	December 31,			December 31,			December 31,		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	$	587		$	764		$	44	$	211
Long-term debt ⁽¹⁾		(698	)		(854	)		177		21

⁽¹⁾Includes $(341) million and $(356) million of unamortized adjustments from discontinued hedges as of December 31, 2022 and 2021, respectively.

Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI



	For the Years Ended December 31,
	2022			2021			2020
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	(85	)	$	(402	)	$	(11	)
Cumulative effect from adoption of new accounting
standard		-			25			-
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		196			116			(350	)
Foreign currency contracts		182			130			93
Change in foreign currency exchange rate adjustment		312			152			(174	)
Change in DAC, VOBA, DSI and DFEL		-			-			(17	)
Income tax benefit (expense)		(144	)		(85	)		94
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts ⁽¹⁾		2			3			2
Interest rate contracts ⁽²⁾		(11	)		(23	)		(16	)
Foreign currency contracts ⁽¹⁾		62			48			56
Foreign currency contracts ⁽³⁾		39			(2	)		6
Associated amortization of DAC, VOBA, DSI and DFEL		-			-			(1	)
Income tax benefit (expense)		(19	)		(5	)		(10	)
Balance as of end-of-year	$	388		$	(85	)	$	(402	)

⁽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 Year Ended December 31, 2022
	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	$	840		$	5,515		$	283
Qualifying Hedges
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items		-			(167	)		156
Derivatives designated as hedging instruments		-			167			(156	)
Gain or (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain or (loss) reclassified from AOCI into income		-			2			(11	)
Foreign currency contracts:
Amount of gain or (loss) reclassified from AOCI into income		39			62			-
Non-Qualifying Hedges
Interest rate contracts		(2,113	)		-			-
Foreign currency contracts		3			-			-
Equity market contracts		(2,075	)		-			-
Commodity contracts		11
Credit contracts		(4	)		-			-
Embedded derivatives:
Reinsurance-related		622			-			-
Indexed annuity and IUL contracts		1,760			-			-


	Gain (Loss) Recognized in Income
	For the Year Ended December 31, 2021
	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	$	(867	)	$	6,111		$	270
Qualifying Hedges
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items		-			(60	)		46
Derivatives designated as hedging instruments		-			60			(46	)
Gain or (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain or (loss) reclassified from AOCI into income		-			3			(23	)
Foreign currency contracts:
Amount of gain or (loss) reclassified from AOCI into income		(2	)		48			-
Non-Qualifying Hedges
Interest rate contracts		(957	)		-			-
Foreign currency contracts		(1	)		-			-
Equity market contracts		3,354			-			-
Credit contracts		(1	)		-			-
Embedded derivatives:
Reinsurance-related		185			-			-
Indexed annuity and IUL contracts		(2,622	)		-			-

‎



	Gain (Loss) Recognized in Income
	For the Year Ended December 31, 2020
	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	$	(513	)	$	5,510		$	284
Qualifying Hedges
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items		-			69			136
Derivatives designated as hedging instruments		-			(69	)		(136	)
Gain or (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain or (loss) reclassified from AOCI into income		-			2			(16	)
Foreign currency contracts:
Amount of gain or (loss) reclassified from AOCI into income		6			56			-
Non-Qualifying Hedges
Interest rate contracts		1,287			-			-
Foreign currency contracts		(3	)		-			-
Equity market contracts		971			-			-
Credit contracts		(6	)		-			-
Embedded derivatives:
GLB ⁽¹⁾		32			-			-
Reinsurance-related		(65	)		-			-
Indexed annuity and IUL contracts		(471	)		-			-

⁽¹⁾Prior to the adoption of ASU 2018-12, certain GLB riders had elements of embedded derivatives that were accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC.

Open Credit Default Swap Liabilities

As of December 31, 2022 and 2021, we did not have any exposure related to CDSs for which we are the seller.

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



	As of December 31, 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-	$	383	$	(6	)	$	2,346	$	(281	)
A+		1,718		(166	)		2,772		(251	)
A		1,172		-			456		(189	)
	$	3,273	$	(172	)	$	5,574	$	(721	)

Schedule Of Offsetting Assets And Liabilities



	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 ⁽¹⁾		(38	)		-		(38	)
Net amount	$	-		$	4,783	$	4,783

⁽¹⁾Excludes excess non-cash collateral received of $1.1 billion and 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.

‎



	As of December 31, 2021
				Embedded
	Derivative			Derivative
	Instruments			Instruments		Total
Financial Assets
Gross amount of recognized assets	$	9,705		$	528	$	10,233
Gross amounts offset		(4,008	)		-		(4,008	)
Net amount of assets		5,697			528		6,225
Gross amounts not offset:
Cash collateral ⁽¹⁾		(5,574	)		-		(5,574	)
Non-cash collateral ⁽²⁾		(123	)		-		(123	)
Net amount	$	-		$	528	$	528

Financial Liabilities
Gross amount of recognized liabilities	$	779		$	6,337	$	7,116
Gross amounts offset		(70	)		-		(70	)
Net amount of liabilities		709			6,337		7,046
Gross amounts not offset:
Cash collateral ⁽¹⁾		(709	)		-		(709	)
Non-cash collateral ⁽²⁾		-			-		-
Net amount	$	-		$	6,337	$	6,337

⁽¹⁾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.

⁽²⁾Excludes excess non-cash collateral received of $409 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements

- 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

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959

+ Details