Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments [Abstract]

Outstanding Derivative Instruments With Off-Balance-Sheet Risks

	As of September 30, 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)	$	1,740	$	2	$	303	$	2,009	$	98	$	11
Foreign currency contracts (1)		4,323		959		4		3,979		283		51
Total cash flow hedges		6,063		961		307		5,988		381		62
Fair value hedges:
Interest rate contracts (1)		524		1		47		526		-		210
Non-Qualifying Hedges
Interest rate contracts (1)		98,366		957		955		82,786		897		176
Foreign currency contracts (1)		504		51		5		487		7		2
Equity market contracts (1)		91,675		4,950		2,262		92,278		6,461		2,108
Commodity contracts (1)		10		15		11		-		-		-
Credit contracts (1)		258		-		-		49		-		-
LPR ceded derivative (2)		-		191		-		-		318		-
Embedded derivatives:
GLB direct (3)		-		1,442		-		-		1,963		-
GLB ceded (3)		-		37		1,475		-		56		2,015
Reinsurance-related (4)		-		783		-		-		-		578
Indexed annuity and IUL contracts (3) (5)		-		456		3,194		-		528		6,131
Total derivative instruments	$	197,400	$	9,844	$	8,256	$	182,114	$	10,611	$	11,282

⁽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 assets and 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, 2022
	Less Than		1 – 5		6 – 10		11 – 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts (1)	$	30,996	$	30,208	$	21,979	$	17,447	$	-	$	100,630
Foreign currency contracts (2)		321		707		1,710		1,892		197		4,827
Equity market contracts		50,962		22,177		7,741		10		10,785		91,675
Commodity contracts		10		-		-		-		-		10
Credit contracts		-		6		252		-		-		258
Total derivative instruments
with notional amounts	$	82,289	$	53,098	$	31,682	$	19,349	$	10,982	$	197,400

⁽¹⁾As of September 30, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 18, 2024.

⁽²⁾As of September 30, 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
	September 30,		December 31,		September 30,		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	$	597	$	764	$	47	$	211

Change In Unrealized Gain On Derivative Instruments In Accumulated OCI

	For the Nine
	Months Ended
	September 30,
	2022			2021
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	240		$	42
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		(392	)		(58	)
Foreign currency contracts		178			113
Change in foreign currency exchange rate adjustment		623			129
Change in DAC, VOBA, DSI and DFEL		28			-
Income tax benefit (expense)		(92	)		(40	)
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts (1)		1			2
Foreign currency contracts (1)		48			34
Foreign currency contracts (2)		29			(2	)
Associated amortization of DAC, VOBA, DSI and DFEL		(9	)		(1	)
Income tax benefit (expense)		(14	)		(7	)
Balance as of end-of-period	$	530		$	160

⁽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,
	2022								2021
	Realized			Net					Realized			Net
	Gain			Investment					Gain			Investment
	(Loss)			Income			Benefits		(Loss)			Income			Benefits
Total Line Items in which the
Effects of Fair Value or Cash
Flow Hedges are Recorded	$	5		$	1,272		$	4,498	$	(24	)	$	1,511		$	1,840
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(42	)		-		-			(10	)		-
Derivatives designated as
hedging instruments		-			42			-		-			10			-
Gain or (loss) on cash flow
hedging relationships:
Interest rate contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		-			-			-		-			1			-
Foreign currency contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		25			19			-		-			13			-
Non-Qualifying Hedges
Interest rate contracts		(552	)		-			-		(149	)		-			-
Foreign currency contracts		4			-			-		-			-			-
Equity market contracts		(188	)		-			-		387			-			-
Commodity contracts		(6	)		-			-		-			-			-
Credit contracts		(2	)		-			-		-			-			-
LPR ceded derivative		-			-			24		-			-			1
Embedded derivatives:
Reinsurance-related		382			-			-		37			-			-
Indexed annuity and IUL
contracts		347			-			-		33			-			-

	Gain (Loss) Recognized in Income
	For the Nine Months Ended September 30,
	2022								2021
	Realized			Net					Realized			Net
	Gain			Investment					Gain			Investment
	(Loss)			Income			Benefits		(Loss)			Income			Benefits
Total Line Items in which the
Effects of Fair Value or Cash
Flow Hedges are Recorded	$	353		$	3,933		$	8,748	$	16		$	4,468		$	5,871
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(164	)		-		-			(59	)		-
Derivatives designated as																-
hedging instruments		-			164			-		-			59
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		29			48			-		(2	)		34			-
Non-Qualifying Hedges
Interest rate contracts		(1,998	)		-			-		(876	)		-			-
Foreign currency contracts		6			-			-		(1	)		-			-
Equity market contracts		(2,100	)		-			-		2,342			-			-
Commodity contracts		4			-			-		-			-			-
Credit contracts		(2	)		-			-		-			-			-
LPR ceded derivative		-			-			127		-			-			77
Embedded derivatives:
GLB		-			-			-		3			-			-
Reinsurance-related		1,361			-			-		166			-			-
Indexed annuity and IUL
contracts		3,030			-			-		(1,296	)		-			-

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

	As of September 30, 2022					As of December 31, 2021
	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-	$	614	$	(6	)	$	2,346	$	-
A+		2,758		(143	)		2,762		(44	)
A		47		-			456		-
	$	3,419	$	(149	)	$	5,564	$	(44	)

Schedule Of Offsetting Assets And Liabilities

		As of September 30, 2022
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total
Financial Assets
Gross amount of recognized assets		$	6,482			$	2,718	$	9,200
Gross amounts offset			(3,157	)			-		(3,157	)
Net amount of assets (1)			3,325				2,718		6,043
Gross amounts not offset:
Cash collateral (2)			(3,325	)			-		(3,325	)
Non-cash collateral			-				-		-
Net amount		$	-			$	2,718	$	2,718
Financial Liabilities
Gross amount of recognized liabilities		$	294			$	4,669	$	4,963
Gross amounts offset			(154	)			-		(154	)
Net amount of liabilities			140				4,669		4,809
Gross amounts not offset:
Cash collateral (2)			(140	)			-		(140	)
Non-cash collateral			-				-		-
Net amount		$	-			$	4,669	$	4,669

⁽¹⁾Includes deferred premiums receivable (payable) of $(299) million reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Excludes excess cash collateral received of $94 million and excess cash collateral pledged of $9 million, as the cash 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		$	7,938			$	2,547	$	10,485
Gross amounts offset			(2,241	)			-		(2,241	)
Net amount of assets (1)			5,697				2,547		8,244
Gross amounts not offset:
Cash collateral			(5,564	)			-		(5,564	)
Non-cash collateral			(133	)			-		(133	)
Net amount		$	-			$	2,547	$	2,547
Financial Liabilities
Gross amount of recognized liabilities		$	349			$	8,724	$	9,073
Gross amounts offset			(68	)			-		(68	)
Net amount of liabilities			281				8,724		9,005
Gross amounts not offset:
Cash collateral			(44	)			-		(44	)
Non-cash collateral			-				-		-
Net amount		$	237			$	8,724	$	8,961

⁽¹⁾Includes deferred premiums receivable (payable) of $260 million reported in other assets on our Consolidated Balance Sheets.