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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Outstanding Derivative Instruments With Off-Balance-Sheet Risks



	As of June 30, 2023						As of December 31, 2022
	Notional		Fair Value				Notional		Fair Value
	Amounts		Asset		Liability		Amounts		Asset		Liability
Qualifying Hedges
Cash flow hedges:
Interest rate contracts ⁽¹⁾	$	877	$	2	$	125	$	1,377	$	4	$	232
Foreign currency contracts ⁽¹⁾		4,548		601		36		4,383		643		18
Total cash flow hedges		5,425		603		161		5,760		647		250
Fair value hedges:
Interest rate contracts ⁽¹⁾		484		2		42		524		2		44
Non-Qualifying Hedges
Interest rate contracts ⁽¹⁾		85,019		638		925		105,977		709		935
Foreign currency contracts ⁽¹⁾		357		19		2		395		27		2
Equity market contracts ⁽¹⁾		234,998		8,671		4,152		142,653		5,135		2,035
Commodity contracts ⁽¹⁾		27		14		15		13		14		3
Credit contracts ⁽¹⁾		52		-		-		-		-		-
LPR ceded derivative ⁽²⁾		-		202		-		-		212		-
Embedded derivatives:
Reinsurance-related ⁽³⁾		-		690		-		-		681		-
Indexed annuity and IUL contracts ^{(3) (4)}		-		603		7,510		-		525		4,783
Total derivative instruments	$	326,362	$	11,442	$	12,807	$	255,322	$	7,952	$	8,052

⁽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.

⁽²⁾Reported in other assets on the Consolidated Balance Sheets.

⁽³⁾Reported in other assets and other liabilities on the Consolidated Balance Sheets.

⁽⁴⁾Reported in policyholder account balances on the Consolidated Balance Sheets.

Maturity Of The Notional Amounts Of Derivative Financial Instruments



	Remaining Life as of June 30, 2023
	Less Than		1 – 5		6 – 10		11 – 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts ⁽¹⁾	$	19,186	$	21,463	$	21,929	$	20,802	$	3,000	$	86,380
Foreign currency contracts ⁽²⁾		222		918		1,632		2,091		42		4,905
Equity market contracts		155,638		61,524		7,241		9		10,586		234,998
Commodity contracts		27		-		-		-		-		27
Credit contracts		-		52		-		-		-		52
Total derivative instruments
with notional amounts	$	175,073	$	83,957	$	30,802	$	22,902	$	13,628	$	326,362

⁽¹⁾As of June 30, 2023, 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 June 30, 2023, 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

Hedged

Assets / (Liabilities)

As of

June 30,

December 31,

June 30,

December 31,

2023

2022

2023

2022

Line Item in the Consolidated Balance Sheets in

which the Hedged Item is Included

Fixed maturity AFS securities, at fair value

536

587

Change In Unrealized Gain On Derivative Instruments In Accumulated OCI



	For the Six
	Months Ended
	June 30,
	2023			2022
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	301		$	258
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		124			(307	)
Foreign currency contracts		80			19
Change in foreign currency exchange rate adjustment		(110	)		373
Income tax benefit (expense)		(20	)		(18	)
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts ⁽¹⁾		-			1
Foreign currency contracts ⁽¹⁾		27			30
Foreign currency contracts ⁽²⁾		3			4
Income tax benefit (expense)		(6	)		(7	)
Balance as of end-of-period	$	351		$	297

⁽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 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 Three Months Ended June 30,
	2023									2022
	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	$	(3,252	)	$	1,476		$	1,676		$	148		$	1,338		$	1,922


Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(19	)		-			-			(58	)		-
Derivatives designated as
hedging instruments		-			19			-			-			58			-
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		-			13			-			1			17			-

Non-Qualifying Hedges
Interest rate contracts		(319	)		-			-			(625	)		-			-
Foreign currency contracts		-			-			-			2			-			-
Equity market contracts		809			-			-			(1,588	)		-			-
Commodity contracts		-			-			-			9			-			-
Credit contracts		(1	)		-			-			-			-			-
LPR ceded derivative		-			-			(3	)		-			-			51
Embedded derivatives:
Reinsurance-related		76			-			-			432			-			-
Indexed annuity and IUL
contracts		(1,554	)		-			-			2,177			-			-


	Gain (Loss) Recognized in Income
	For the Six Months Ended June 30,
	2023								2022
	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	$	(3,646	)	$	2,885		$	3,871	$	508		$	2,690		$	4,024


Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(3	)		-		-			(121	)		-
Derivatives designated as																-
hedging instruments		-			3			-		-			121
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		3			27			-		4			30			-


Non-Qualifying Hedges
Interest rate contracts		12			-			-		(1,446	)		-			-
Foreign currency contracts		(2	)		-			-		3			-			-
Equity market contracts		750			-			-		(1,912	)		-			-
Commodity contracts		11			-			-		9			-			-
Credit contracts		(2	)		-			-		-			-			-
LPR ceded derivative		-			-			10		-			-			103
Embedded derivatives:
Reinsurance-related		9			-			-		979			-			-
Indexed annuity and IUL
contracts		(2,266	)		-			-		2,683			-			-

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



	As of June 30, 2023					As of December 31, 2022
	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-	$	980	$	(12	)	$	383	$	(6	)
A+		3,460		(258	)		1,718		(151	)
A		66		(41	)		1,099		-
	$	4,506	$	(311	)	$	3,200	$	(157	)

Schedule Of Offsetting Assets And Liabilities



		As of June 30, 2023
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total

Financial Assets
Gross amount of recognized assets		$	8,875			$	1,293	$	10,168
Gross amounts offset			(3,810	)			-		(3,810	)
Net amount of assets			5,065				1,293		6,358
Gross amounts not offset:
Cash collateral			(4,506	)			-		(4,506	)
Non-cash collateral ⁽¹⁾			(559	)			-		(559	)
Net amount		$	-			$	1,293	$	1,293

Financial Liabilities
Gross amount of recognized liabilities		$	1,486			$	7,510	$	8,996
Gross amounts offset			(1,071	)			-		(1,071	)
Net amount of liabilities			415				7,510		7,925
Gross amounts not offset:
Cash collateral			(311	)			-		(311	)
Non-cash collateral ⁽²⁾			(59	)			-		(59	)
Net amount		$	45			$	7,510	$	7,555

⁽¹⁾Excludes excess non-cash collateral received of $946 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

⁽²⁾There was no excess non-cash collateral pledged as of June 30, 2023.



		As of December 31, 2022
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total

Financial Assets
Gross amount of recognized assets		$	6,483			$	1,206	$	7,689
Gross amounts offset			(2,964	)			-		(2,964	)
Net amount of assets			3,519				1,206		4,725
Gross amounts not offset:
Cash collateral			(3,200	)			-		(3,200	)
Non-cash collateral ⁽¹⁾			(319	)			-		(319	)
Net amount		$	-			$	1,206	$	1,206

Financial Liabilities
Gross amount of recognized liabilities		$	304			$	4,783	$	5,087
Gross amounts offset			(50	)			-		(50	)
Net amount of liabilities			254				4,783		5,037
Gross amounts not offset:
Cash collateral			(157	)			-		(157	)
Non-cash collateral ⁽²⁾			(46	)			-		(46	)
Net amount		$	51			$	4,783	$	4,834

⁽¹⁾Excludes excess non-cash collateral received of $1.1 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

⁽²⁾There was no excess non-cash collateral pledged as of December 31, 2022.

- 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.

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