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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Outstanding Derivative Instruments With Off-Balance-Sheet Risks



	As of September 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⁾	$	1,139	$	196	$	2	$	1,528	$	33	$	9
Foreign currency contracts ⁽¹⁾		2,714		320		32		2,326		167		39
Total cash flow hedges		3,853		516		34		3,854		200		48
Fair value hedges:
Interest rate contracts ⁽¹⁾		546		-		239		553		-		137
Non-Qualifying Hedges
Interest rate contracts ⁽¹⁾		108,732		1,330		319		100,628		464		138
Foreign currency contracts ⁽¹⁾		333		4		1		47		-		-
Equity market contracts ⁽¹⁾		39,972		976		372		30,273		676		162
Credit contracts ⁽¹⁾		-		-		-		-		-		-
Embedded derivatives:
GLB direct ^{(2) (3)}		-		-		846		-		123		-
GLB ceded ^{(2) (3)}		-		844		-		-		72		196
Reinsurance related ⁽⁴⁾		-		-		465		-		188		-
Indexed annuity and IUL contracts ^{(2) (5)}		-		891		2,098		-		902		1,305
Total derivative instruments	$	153,436	$	4,561	$	4,374	$	135,355	$	2,625	$	1,986

⁽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 September 30, 2019
	Less Than		1 – 5		6 – 10		11 – 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts ⁽¹⁾	$	10,664	$	17,545	$	54,294	$	27,414	$	500	$	110,417
Foreign currency contracts ⁽²⁾		290		318		863		1,520		56		3,047
Equity market contracts		26,976		6,284		3,448		13		3,251		39,972
Total derivative instruments
with notional amounts	$	37,930	$	24,147	$	58,605	$	28,947	$	3,807	$	153,436

⁽¹⁾As of September 30, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 23, 2021.

⁽²⁾As of September 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 September 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	$	816	$	240

Change In Unrealized Gain On Derivative Instruments In Accumulated OCI



	For the Nine
	Months Ended
	September 30,
	2019			2018
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	119		$	27
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		173			(67	)
Foreign currency contracts		114			(19	)
Change in foreign currency exchange rate adjustment		80			69
Change in DAC, VOBA, DSI and DFEL		(3	)		4
Income tax benefit (expense)		(77	)		3
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts ⁽¹⁾		2			3
Foreign currency contracts ⁽¹⁾		25			18
Foreign currency contracts ⁽²⁾		9			-
Associated amortization of DAC, VOBA, DSI and DFEL		(1	)		(5	)
Income tax benefit (expense)		(7	)		(3	)
Balance as of end-of-period	$	378		$	10

⁽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 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
	September 30, 2019
	Realized			Net
	Gain			Investment
	(Loss)			Income
Total Line Items in which the Effects of Fair Value
or Cash Flow Hedges are Recorded	$	(216	)	$	1,167

Qualifying Hedges
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items		-			44
Derivatives designated as hedging instruments		-			(44	)
Gain or (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain or (loss) reclassified from AOCI into income		-			-
Foreign currency contracts:
Amount of gain or (loss) reclassified from AOCI into income		5			10

Non-Qualifying Hedges
Interest rate contracts		698			-
Equity market contracts		172			-
Embedded derivatives:
GLB		(1	)		-
Reinsurance related		(156	)		-
Indexed annuity and IUL contracts		(23	)		-



	Gain (Loss)
	Recognized in Income
	For the Nine Months Ended
	September 30, 2019
	Realized			Net
	Gain			Investment
	(Loss)			Income
Total Line Items in which the Effects of Fair Value
or Cash Flow Hedges are Recorded	$	(844	)	$	3,645

Qualifying Hedges
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items		-			101
Derivatives designated as hedging instruments		-			(101	)
Gain or (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain or (loss) reclassified from AOCI into income		-			2
Foreign currency contracts:
Amount of gain or (loss) reclassified from AOCI into income		9			25

Non-Qualifying Hedges
Interest rate contracts		1,624			-
Equity market contracts		(241	)		-
Embedded derivatives:
GLB		(1	)		-
Reinsurance related		(716	)		-
Indexed annuity and IUL contracts		(372	)		-

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



	For the Three				For the Nine
	Months Ended				Months Ended
	September 30,				September 30,
		2018				2018
Qualifying Hedges
Cash flow hedges:
Interest rate contracts ⁽¹⁾		$	1			$	3
Foreign currency contracts ⁽¹⁾			7				18
Total cash flow hedges			8				21
Fair value hedges:
Interest rate contracts ⁽¹⁾			(2	)			(11	)
Interest rate contracts ⁽²⁾			17				64
Total fair value hedges			15				53
Non-Qualifying Hedges
Interest rate contracts ⁽²⁾			(167	)			(577	)
Foreign currency contracts ⁽²⁾			-				2
Equity market contracts ⁽²⁾			(199	)			(280	)
Equity market contracts ⁽³⁾			9				10
Embedded derivatives:
GLB⁽²⁾			2				2
Reinsurance related ⁽²⁾			26				234
Indexed annuity and IUL contracts ⁽²⁾			(164	)			(175	)
Total derivative instruments		$	(470	)		$	(710	)

⁽¹⁾Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss).

⁽²⁾Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽³⁾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 Nine
	Months Ended			Months Ended
	September 30,			September 30,
		2018			2018
Offset to net investment income		$	8		$	21

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



	As of September 30, 2019					As of December 31, 2018
	Collateral		Collateral			Collateral		Collateral
	Posted by		Posted by			Posted by		Posted by
S&P	Counter-		LNL			Counter-		LNL
Credit	Party		(Held by			Party		(Held by
Rating of	(Held by		Counter-			(Held by		Counter-
Counterparty	LNL)		Party)			LNL)		Party)

AA-	$	380	$	(94	)	$	33	$	(4	)
A+		760		(194	)		296		(26	)
A		47		-			106		(36	)
A-		25		-			4		-
BBB+		474		-			177		-
	$	1,686	$	(288	)	$	616	$	(66	)

Schedule Of Offsetting Assets And Liabilities



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

Financial Assets
Gross amount of recognized assets		$	2,636			$	1,735	$	4,371
Gross amounts offset			(435	)			-		(435	)
Net amount of assets			2,201				1,735		3,936
Gross amounts not offset:
Cash collateral			(1,686	)			-		(1,686	)
Non-cash collateral			(183	)			-		(183	)
Net amount		$	332			$	1,735	$	2,067

Financial Liabilities
Gross amount of recognized liabilities		$	919			$	3,409	$	4,328
Gross amounts offset			(34	)			-		(34	)
Net amount of liabilities			885				3,409		4,294
Gross amounts not offset:
Cash collateral			(288	)			-		(288	)
Non-cash collateral			-				-		-
Net amount		$	597			$	3,409	$	4,006



		As of December 31, 2018
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total

Financial Assets
Gross amount of recognized assets		$	1,282			$	1,285	$	2,567
Gross amounts offset			(201	)			-		(201	)
Net amount of assets			1,081				1,285		2,366
Gross amounts not offset:
Cash collateral			(616	)			-		(616	)
Non-cash collateral			(58	)			-		(58	)
Net amount		$	407			$	1,285	$	1,692

Financial Liabilities
Gross amount of recognized liabilities		$	806			$	1,501	$	2,307
Gross amounts offset			(59	)			-		(59	)
Net amount of liabilities			747				1,501		2,248
Gross amounts not offset:
Cash collateral			(66	)			-		(66	)
Non-cash collateral			(190	)			-		(190	)
Net amount		$	491			$	1,501	$	1,992