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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments [Abstract]

Outstanding Derivative Instruments With Off-Balance-Sheet Risks



	As of June 30, 2020									As of December 31, 2019
	Notional			Fair Value						Notional			Fair Value
	Amounts			Asset			Liability			Amounts			Asset			Liability
Qualifying Hedges
Cash flow hedges:
Interest rate contracts ⁽¹⁾	$	1,219		$	245		$	-		$	1,174		$	108		$	12
Foreign currency contracts ⁽¹⁾		2,904			487			12			2,874			191			51
Total cash flow hedges		4,123			732			12			4,048			299			63
Fair value hedges:
Interest rate contracts ⁽¹⁾		539			-			323			546			-			202
Non-Qualifying Hedges
Interest rate contracts ⁽¹⁾		128,298			1,906			154			112,921			1,082			219
Foreign currency contracts ⁽¹⁾		181			9			-			262			1			3
Equity market contracts ⁽¹⁾		60,177			1,717			1,357			43,283			1,442			664
Credit contracts ⁽¹⁾		59			-			-			55			-			-
Embedded derivatives:
GLB direct ⁽²⁾		-			-			3,086			-			450			-
GLB ceded ⁽²⁾		-			3,081			-			-			60			510
Reinsurance related ⁽³⁾		-			-			323			-			-			375
Indexed annuity and IUL contracts ^{(2) (4)}		-			664			2,272			-			927			2,585
Total derivative instruments	$	193,377		$	8,109		$	7,527		$	161,115		$	4,261		$	4,621

⁽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 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



	Remaining Life as of June 30, 2020
	Less Than			1 – 5			6 – 10			11 – 30			Over 30
	1 Year			Years			Years			Years			Years			Total
Interest rate contracts ⁽¹⁾	$	15,008		$	52,698		$	27,065		$	34,785		$	500		$	130,056
Foreign currency contracts ⁽²⁾		118			386			1,002			1,579			-			3,085
Equity market contracts		31,022			17,575			4,907			12			6,661			60,177
Credit contracts		-			59			-			-			-			59
Total derivative instruments
with notional amounts	$	46,148		$	70,718		$	32,974		$	36,376		$	7,161		$	193,377

⁽¹⁾As of June 30, 2020, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was May 4, 2022.

⁽²⁾As of June 30, 2020, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 17, 2050.

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,

2020

2019

2020

2019

Line Item in the Consolidated Balance Sheets in

which the Hedged Item is Included

AFS fixed maturity securities, at fair value

$

884

$

776

$

323

$

202

Change In Unrealized Gain On Derivative Instruments In Accumulated OCI



	For the Six
	Months Ended
	June 30,
	2020			2019
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	181		$	119
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		152			102
Foreign currency contracts		269			87
Change in foreign currency exchange rate adjustment		97			(5	)
Change in DAC, VOBA, DSI and DFEL		(104	)		(4	)
Income tax benefit (expense)		(88	)		(38	)
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts ⁽¹⁾		1			2
Foreign currency contracts ⁽¹⁾		22			15
Foreign currency contracts ⁽²⁾		8			4
Associated amortization of DAC, VOBA, DSI and DFEL		(7	)		(1	)
Income tax benefit (expense)		(5	)		(4	)
Balance as of end-of-period	$	488		$	245

⁽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 June 30,
		2020					2019
	Realized			Net			Realized			Net
	Gain			Investment			Gain			Investment
	(Loss)			Income			(Loss)			Income
Total Line Items in which the Effects of
Fair Value or Cash Flow Hedges are Recorded	$	(433	)	$	1,111			(278	)	$	1,287

Qualifying Hedges
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items		-			(6	)		-			34
Derivatives designated as hedging instruments		-			6			-			(34	)
Gain or (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain or (loss) reclassified from AOCI into income		-			1			-			1
Foreign currency contracts:
Amount of gain or (loss) reclassified from AOCI into income		7			11			3			8

Non-Qualifying Hedges
Interest rate contracts		19			-			569			-
Equity market contracts		(1,454	)		-			45			-
Credit contracts		(1	)		-			-			-
Embedded derivatives:
GLB		2			-			(1	)		-
Reinsurance related		(610	)		-			(271	)		-
Indexed annuity and IUL contracts		(527	)		-			(110	)		-


		Gain (Loss) Recognized in Income
		For the Six Months Ended June 30,
		2020					2019
	Realized			Net			Realized			Net
	Gain			Investment			Gain			Investment
	(Loss)			Income			(Loss)			Income
Total Line Items in which the Effects of
Fair Value or Cash Flow Hedges are Recorded	$	(435	)	$	2,430		$	(628	)	$	2,478

Qualifying Hedges
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items		-			121			-			58
Derivatives designated as hedging instruments		-			(121	)		-			(58	)
Gain or (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain or (loss) reclassified from AOCI into income		-			1			-			2
Foreign currency contracts:
Amount of gain or (loss) reclassified from AOCI into income		8			22			4			15

Non-Qualifying Hedges
Interest rate contracts		2,169			-			926			-
Equity market contracts		(384	)		-			(413	)		-
Credit contracts		(5	)		-			-			-
Embedded derivatives:
GLB		(5	)		-			-			-
Reinsurance related		(14	)		-			(560	)		-
Indexed annuity and IUL contracts		501			-			(349	)		-

Open Credit Default Swap Liabilities

As of June 30, 2020

Credit

Reason

Nature

Rating of

Number

Maximum

for

of

Underlying

of

Fair

Potential

Credit Contract Type

Maturity

Entering

Recourse

Obligation ⁽¹⁾

Instruments

Value ⁽²⁾

Payout

Basket credit default swaps

6/20/2025

⁽³⁾

⁽⁴⁾

BBB+

1

$

1

$

59

As of December 31, 2019

Credit

Reason

Nature

Rating of

Number

Maximum

for

of

Underlying

of

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

$

1

$

55

⁽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
	June 30,				December 31,
		2020				2019
Maximum potential payout		$	59			$	55
Less: Counterparty thresholds			-				-
Maximum collateral potentially required to post		$	59			$	55

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



		As of June 30, 2020						As of December 31, 2019
		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-		$	615		$	(31	)	$	441		$	(22	)
A+			1,407			(261	)		549			(168	)
A			43			-			36			-
A-			714			-			355			-
		$	2,779		$	(292	)	$	1,381		$	(190	)

Schedule Of Offsetting Assets And Liabilities



		As of June 30, 2020
					Embedded
	Derivative				Derivative
	Instruments				Instruments					Total

Financial Assets
Gross amount of recognized assets		$	4,131			$	3,745			$	7,876
Gross amounts offset			(1,174	)			-				(1,174	)
Net amount of assets			2,957				3,745				6,702
Gross amounts not offset:
Cash collateral			(2,779	)			-				(2,779	)
Non-cash collateral			-				-				-
Net amount		$	178			$	3,745			$	3,923

Financial Liabilities
Gross amount of recognized liabilities		$	1,110			$	5,681			$	6,791
Gross amounts offset			(233	)			-				(233	)
Net amount of liabilities			877				5,681				6,558
Gross amounts not offset:
Cash collateral			(292	)			-				(292	)
Non-cash collateral			-				-				-
Net amount		$	585			$	5,681			$	6,266



		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