Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional value and gross fair value of derivative instruments, including embedded derivatives [Table Text Block]

The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:


	June 30, 2020														December 31, 2019
			Notional			Gross Fair Value									Notional		Gross Fair Value
									Assets⁽¹⁾			Liabilities⁽²⁾						Assets⁽¹⁾	Liabilities⁽²⁾
			(in millions)
Derivatives not designated as hedging instruments
Interest rate contracts	$	70,750		$	3,096		$	1,031		$	57,950		$	1,451	$	418
Equity contracts	57,899			2,583			2,531			60,596			2,812		3,054
Credit contracts	2,552			—			10			1,386			4		—
Foreign exchange contracts	3,261			32			13			3,251			16		6
Total non-designated hedges	134,462			5,711			3,585			123,183			4,283		3,478

Embedded derivatives
GMWB and GMAB ⁽³⁾	N/A			—			3,129			N/A			—		763
IUL	N/A			—			882			N/A			—		881
Fixed deferred indexed annuities	N/A			—			44			N/A			—		46
Structured variable annuities	N/A			—			9			N/A			—		—
Total embedded derivatives	N/A			—			4,064			N/A			—		1,690
Total derivatives	$	134,462		$	5,711		$	7,649		$	123,183		$	4,283	$	5,168

N/A Not applicable.

⁽¹⁾The fair value of freestanding derivative assets is included in Other assets on the Consolidated Balance Sheets.

⁽²⁾The fair value of freestanding derivative liabilities is included in Other liabilities on the Consolidated Balance Sheets. The fair value of GMWB and GMAB, IUL, indexed annuity and structured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.

⁽³⁾The fair value of the GMWB and GMAB embedded derivatives as of June 30, 2020 included $3.2 billion of individual contracts in a liability position and $25 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2019 included $981 million of individual contracts in a liability position and $218 million of individual contracts in an asset position.

Schedule of gain (loss) on derivative instruments, including embedded derivatives [Table Text Block]

The following tables present a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income:


	Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses
			(in millions)
Three Months Ended June 30, 2020
Interest rate contracts	$	—		$	60
Equity contracts	63			(1,467)
Credit contracts	—			(43)
Foreign exchange contracts	—			5

GMWB and GMAB embedded derivatives	—			147
IUL embedded derivatives	(127)			—
Fixed deferred indexed annuity embedded derivatives	(7)			—
Structured variable annuity embedded derivatives	—			(16)
Total gain (loss)	$	(71)		$	(1,314)

Six Months Ended June 30, 2020
Interest rate contracts	$	—		$	2,575
Equity contracts	(49)			526
Credit contracts	—			(79)
Foreign exchange contracts	—			49

GMWB and GMAB embedded derivatives	—			(2,366)
IUL embedded derivatives	37			—
Fixed deferred indexed annuity embedded derivatives	5			—
Structured variable annuity embedded derivatives	—			(13)
Total gain (loss)	$	(7)		$	692


	Interest Credited to Fixed Accounts			Benefits, Claims, Losses and Settlement Expenses
			(in millions)
Three Months Ended June 30, 2019
Interest rate contracts	$	—		$	628
Equity contracts	18			(209)
Credit contracts	—			(40)
Foreign exchange contracts	—			(4)

GMWB and GMAB embedded derivatives	—			(516)
IUL embedded derivatives	(43)			—
Fixed deferred indexed annuity embedded derivatives	(1)			—
Total gain (loss)	$	(26)		$	(141)

Six Months Ended June 30, 2019
Interest rate contracts	$	—		$	960
Equity contracts	66			(884)
Credit contracts	—			(69)
Foreign exchange contracts	—			(10)

GMWB and GMAB embedded derivatives	—			(368)
IUL embedded derivatives	(124)			—
Fixed deferred indexed annuity embedded derivatives	(3)			—
Total gain (loss)	$	(61)		$	(371)

Schedule of payments to make and receive for options and swaptions [Table Text Block]

The following is a summary of the payments the Company is scheduled to make and receive for these options and swaptions as of June 30, 2020:


	Premiums Payable			Premiums Receivable
			(in millions)
2020 ⁽¹⁾	$	82		$	26
2021	152			112
2022	203			198
2023	126			57
2024	71			10
2025 - 2028	377			7
Total	$	1,011		$	410

⁽¹⁾ 2020 amounts represent the amounts payable and receivable for the period from July 1, 2020 to December 31, 2020.