Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments [Abstract]

Outstanding Derivative Instruments With Off-Balance-Sheet Risks

	As of September 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)	$	663	$	-	$	145	$	1,377	$	4	$	232
Foreign currency contracts (1)		4,578		550		33		4,383		643		18
Total cash flow hedges		5,241		550		178		5,760		647		250
Fair value hedges:
Interest rate contracts (1)		484		15		15		524		2		44
Non-Qualifying Hedges
Interest rate contracts (1)		89,067		1,003		1,398		105,977		709		935
Foreign currency contracts (1)		353		24		1		395		27		2
Equity market contracts (1)		285,520		8,194		3,366		142,653		5,135		2,035
Commodity contracts (1)		27		9		11		13		14		3
Credit contracts (1)		307		-		-		-		-		-
LPR ceded derivative (2)		-		184		-		-		212		-
Embedded derivatives:
Reinsurance-related (3)		-		933		-		-		681		-
Indexed annuity and IUL contracts (3) (4)		-		586		7,174		-		525		4,783
Total derivative instruments	$	380,999	$	11,498	$	12,143	$	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 September 30, 2023
	Less Than		1 – 5		6 – 10		11 – 30		Over 30
	1 Year		Years		Years		Years		Years		Total
Interest rate contracts (1)	$	27,214	$	16,713	$	22,487	$	20,800	$	3,000	$	90,214
Foreign currency contracts (2)		252		953		1,592		2,092		42		4,931
Equity market contracts		193,990		74,261		7,014		9		10,246		285,520
Commodity contracts		27		-		-		-		-		27
Credit contracts		-		-		307		-		-		307
Total derivative instruments
with notional amounts	$	221,483	$	91,927	$	31,400	$	22,901	$	13,288	$	380,999

⁽¹⁾As of September 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 September 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				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,
	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	$	498	$	587	$	-	$	44

Change In Unrealized Gain On Derivative Instruments In Accumulated OCI

	For the Nine
	Months Ended
	September 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		102			(392	)
Foreign currency contracts		(92	)		178
Change in foreign currency exchange rate adjustment		30			623
Income tax benefit (expense)		(9	)		(87	)
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts (1)		-			1
Foreign currency contracts (1)		42			48
Foreign currency contracts (2)		4			29
Income tax benefit (expense)		(10	)		(16	)
Balance as of end-of-period	$	296		$	518

⁽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 September 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	$	(867	)	$	1,466		$	1,895	$	33		$	1,241		$	2,094
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(41	)		-		-			(42	)		-
Derivatives designated as
hedging instruments		-			41			-		-			42			-
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		2			14			-		25			19			-
Non-Qualifying Hedges
Interest rate contracts		(604	)		-			-		(552	)		-			-
Foreign currency contracts		-			-			-		4			-			-
Equity market contracts		163			-			-		(188	)		-			-
Commodity contracts		(1	)		-			-		(6	)		-			-
Credit contracts		-			-			-		(2	)		-			-
LPR ceded derivative		-			-			18		-			-			24
Embedded derivatives:
Reinsurance-related		243			-			-		382			-			-
Indexed annuity and IUL
contracts		572			-			-		347			-			-

	Gain (Loss) Recognized in Income
	For the Nine Months Ended September 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	$	(4,513	)	$	4,351		$	5,766	$	541		$	3,931		$	6,118
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(44	)		-		-			(164	)		-
Derivatives designated as																-
hedging instruments		-			44			-		-			164
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		4			42			-		29			48			-
Non-Qualifying Hedges
Interest rate contracts		(592	)		-			-		(1,998	)		-			-
Foreign currency contracts		(2	)		-			-		6			-			-
Equity market contracts		913			-			-		(2,100	)		-			-
Commodity contracts		10			-			-		4			-			-
Credit contracts		(2	)		-			-		(2	)		-			-
LPR ceded derivative		-			-			28		-			-			127
Embedded derivatives:
Reinsurance-related		252			-			-		1,361			-			-
Indexed annuity and IUL
contracts		(1,706	)		-			-		3,030			-			-

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

	As of September 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-	$	1,061	$	(42	)	$	383	$	(6	)
A+		3,326		(379	)		1,718		(151	)
A		57		(49	)		1,099		-
A-		58		-			-		-
	$	4,502	$	(470	)	$	3,200	$	(157	)

Schedule Of Offsetting Assets And Liabilities

		As of September 30, 2023
					Embedded
	Derivative				Derivative
	Instruments				Instruments			Total
Financial Assets
Gross amount of recognized assets		$	8,553			$	1,519	$	10,072
Gross amounts offset			(3,099	)			-		(3,099	)
Net amount of assets			5,454				1,519		6,973
Gross amounts not offset:
Cash collateral			(4,502	)			-		(4,502	)
Non-cash collateral (1)			(952	)			-		(952	)
Net amount		$	-			$	1,519	$	1,519
Financial Liabilities
Gross amount of recognized liabilities		$	1,870			$	7,174	$	9,044
Gross amounts offset			(1,242	)			-		(1,242	)
Net amount of liabilities			628				7,174		7,802
Gross amounts not offset:
Cash collateral			(470	)			-		(470	)
Non-cash collateral (2)			(158	)			-		(158	)
Net amount		$	-			$	7,174	$	7,174

⁽¹⁾Excludes excess non-cash collateral received of $826 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

⁽²⁾Excludes excess non-cash collateral pledged of $320 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

		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.