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Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Outstanding Derivative Instruments With Off-Balance-Sheet Risks



	As of December 31, 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⁾	$	1,174	$	108	$	12	$	1,528	$	33	$	9
Foreign currency contracts ⁽¹⁾		2,874		191		51		2,326		167		39
Total cash flow hedges		4,048		299		63		3,854		200		48
Fair value hedges:
Interest rate contracts ⁽¹⁾		546		-		202		553		-		137
Non-Qualifying Hedges
Interest rate contracts ⁽¹⁾		112,921		1,082		219		100,628		464		138
Foreign currency contracts ⁽¹⁾		262		1		3		47		-		-
Equity market contracts ⁽¹⁾		43,283		1,442		664		30,273		676		162
Credit contracts ⁽¹⁾		55		-		-		-		-		-
Embedded derivatives:
GLB direct ⁽²⁾		-		450		-		-		123		-
GLB ceded ^{(2) (3)}		-		60		510		-		72		196
Reinsurance related ⁽⁴⁾		-		-		375		-		188		-
Indexed annuity and IUL contracts ^{(2) (5)}		-		927		2,585		-		902		1,305
Total derivative instruments	$	161,115	$	4,261	$	4,621	$	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 December 31, 2019
	Less Than		1 – 5		6 – 10		11 – 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts ⁽¹⁾	$	11,341	$	53,011	$	20,948	$	28,841	$	500	$	114,641
Foreign currency contracts ⁽²⁾		218		383		961		1,473		101		3,136
Equity market contracts		27,594		7,720		3,762		13		4,194		43,283
Credit contracts		-		55		-		-		-		55
Total derivative instruments
with notional amounts	$	39,153	$	61,169	$	25,671	$	30,327	$	4,795	$	161,115

⁽¹⁾As of December 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 24, 2021.

⁽²⁾As of December 31, 2019, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was February 26, 2050.

‎

Cumulative Basis Adjustments For Fair Value Hedges


	As of December 31, 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	$	776	$	202

Change In Unrealized Gain On Derivative Instruments In Accumulated OCI



	For the Years Ended December 31,
	2019			2018			2017
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	119		$	27		$	93
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		73			(4	)		43
Foreign currency contracts		108			44			20
Change in foreign currency exchange rate adjustment		(52	)		111			(137	)
Change in DAC, VOBA, DSI and DFEL		(5	)		(14	)		1
Income tax benefit (expense)		(26	)		(29	)		26
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts ⁽¹⁾		3			4			4
Foreign currency contracts ⁽¹⁾		35			27			18
Foreign currency contracts ⁽²⁾		9			-			9
Associated amortization of DAC, VOBA, DSI and DFEL		(2	)		(3	)		(2	)
Income tax benefit (expense)		(9	)		(6	)		(10	)
Balance as of end-of-year	$	181		$	119		$	27

⁽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 Year Ended
	December 31, 2019
	Realized				Net
	Gain				Investment
	(Loss)				Income
Total Line Items in which the Effects of Fair Value
or Cash Flow Hedges are Recorded		$	(828	)	$	4,962

Qualifying Hedges
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items			-			63
Derivatives designated as hedging instruments			-			(63	)
Gain or (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain or (loss) reclassified from AOCI into income			-			3
Foreign currency contracts:
Amount of gain or (loss) reclassified from AOCI into income			9			35

Non-Qualifying Hedges
Interest rate contracts			982			-
Foreign currency contracts			(1	)		-
Equity market contracts			(137	)		-
Embedded derivatives:
GLB			1			-
Reinsurance related			(626	)		-
Indexed annuity and IUL contracts			(742	)		-

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



	For the Years Ended
	December 31,
	2018			2017
Qualifying Hedges
Cash flow hedges:
Interest rate contracts ⁽¹⁾	$	4		$	4
Foreign currency contracts ⁽¹⁾		27			18
Foreign currency contracts ⁽²⁾		-			9
Total cash flow hedges		31			31
Fair value hedges:
Interest rate contracts ⁽¹⁾		(14	)		(23	)
Interest rate contracts ⁽²⁾		37			7
Total fair value hedges		23			(16	)
Non-Qualifying Hedges
Interest rate contracts ⁽²⁾		(149	)		103
Foreign currency contracts ⁽²⁾		5			-
Equity market contracts ⁽²⁾		445			(1,427	)
Equity market contracts ⁽³⁾		(17	)		28
Credit contracts ⁽³⁾		-			1
Embedded derivatives:
GLB⁽²⁾		(1	)		-
Reinsurance related ⁽²⁾		292			(141	)
Indexed annuity and IUL contracts ⁽²⁾		81			(400	)
Total derivative instruments	$	710		$	(1,821	)

⁽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 Years Ended
	December 31,
	2018		2017
Offset to net investment income		4		22
Offset to realized gain (loss)		27		9

Open Credit Default Swap Liabilities

Credit

Reason

Nature

Rating of

Number

Maximum

for

Underlying

Fair

Potential

Credit Contract Type

Maturity

Entering

Recourse

Obligation ⁽¹⁾

Instruments

Value ⁽²⁾

Payout

Basket credit default swaps

12/20/2024

⁽³⁾

⁽⁴⁾

BBB+

⁽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 credit default swaps.

⁽³⁾Credit default swaps 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
	December 31,			December 31,
		2019			2018
Maximum potential payout		$	55		$	-
Less: Counterparty thresholds			-			-
Maximum collateral potentially required to post		$	55		$	-

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



	As of December 31, 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-	$	441	$	(22	)	$	33	$	(4	)
A+		549		(168	)		296		(26	)
A		36		-			106		(36	)
A-		355		-			4		-
BBB+		-		-			177		-
	$	1,381	$	(190	)	$	616	$	(66	)

Schedule Of Offsetting Assets And Liabilities



		As of December 31, 2019
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total

Financial Assets
Gross amount of recognized assets		$	2,619			$	1,437	$	4,056
Gross amounts offset			(708	)			-		(708	)
Net amount of assets			1,911				1,437		3,348
Gross amounts not offset:
Cash collateral			(1,381	)			-		(1,381	)
Non-cash collateral			(242	)			-		(242	)
Net amount		$	288			$	1,437	$	1,725

Financial Liabilities
Gross amount of recognized liabilities		$	771			$	3,470	$	4,241
Gross amounts offset			(15	)			-		(15	)
Net amount of liabilities			756				3,470		4,226
Gross amounts not offset:
Cash collateral			(190	)			-		(190	)
Non-cash collateral			-				-		-
Net amount		$	566			$	3,470	$	4,036

‎



		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