Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional value and gross fair value of derivative instruments, including embedded derivatives

Generally, the Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:

	June 30, 2022						December 31, 2021
	Notional		Gross Fair Value				Notional		Gross Fair Value
			Assets (1)		Liabilities (2)(3)				Assets (1)		Liabilities (2)(3)
	(in millions)
Derivatives not designated as hedging instruments
Interest rate contracts	$	93,061	$	694	$	462	$	79,459	$	1,252	$	468
Equity contracts	65,584		2,655		2,708		59,763		4,238		3,711
Credit contracts	1,931		33		—		1,717		9		—
Foreign exchange contracts	2,648		46		10		2,239		18		1
Total non-designated hedges	163,224		3,428		3,180		143,178		5,517		4,180
Embedded derivatives
GMWB and GMAB (4)	N/A		—		1,006		N/A		—		1,486
IUL	N/A		—		719		N/A		—		905
Fixed deferred indexed annuities and deposit receivables	N/A		49		48		N/A		59		61
Structured variable annuities (5)	N/A		—		(362)		N/A		—		406
Total embedded derivatives	N/A		49		1,411		N/A		59		2,858
Total derivatives	$	163,224	$	3,477	$	4,591	$	143,178	$	5,576	$	7,038

N/A  Not applicable.

(1) The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded embedded derivative assets related to deposit receivables is included in Receivables.

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

(3) The fair value of the Company’s derivative liabilities after considering the effects of master netting arrangements, cash collateral held by the same counterparty and the fair value of net embedded derivatives was $1.8 billion and $3.2 billion as of June 30, 2022 and December 31, 2021, respectively. See Note 12 for additional information related to master netting arrangements and cash collateral.

(4) The fair value of the GMWB and GMAB embedded derivatives as of June 30, 2022 included $1.2 billion of individual contracts in a liability position and $185 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives as of December 31, 2021 included $1.6 billion of individual contracts in a liability position and $133 million of individual contracts in an asset position.

(5) The fair value of the structured variable annuity embedded derivatives was a net asset as of June 30, 2022 and the amount is presented as a contra liability.

Summary of impact of derivatives not designated as hedging instruments, including embedded derivatives

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:

	Net Investment Income		Interest Credited to Fixed Accounts		Benefits, Claims, Losses and Settlement Expenses
	(in millions)
Three Months Ended June 30, 2022
Interest rate contracts	$	—	$	—	$	(944)
Equity contracts	—		(96)		501
Credit contracts	—		—		99
Foreign exchange contracts	—		—		76
GMWB and GMAB embedded derivatives	—		—		(178)
IUL embedded derivatives	—		137		—
Fixed deferred indexed annuity and deposit receivables embedded derivatives	—		2		—
Structured variable annuity embedded derivatives	—		—		643
Total gain (loss)	$	—	$	43	$	197
Three Months Ended June 30, 2021
Interest rate contracts	$	—	$	—	$	871
Equity contracts	—		30		(304)
Credit contracts	—		—		(30)
Foreign exchange contracts	—		—		(5)
GMWB and GMAB embedded derivatives	—		—		(657)
IUL embedded derivatives	—		20		—
Fixed deferred indexed annuity embedded derivatives	—		(3)		—
Structured variable annuity embedded derivatives	—		—		(100)
Total gain (loss)	$	—	$	47	$	(225)

	Net Investment Income		Interest Credited to Fixed Accounts		Benefits, Claims, Losses and Settlement Expenses
	(in millions)
Six Months Ended June 30, 2022
Interest rate contracts	$	—	$	—	$	(2,062)
Equity contracts	—		(112)		725
Credit contracts	—		—		196
Foreign exchange contracts	—		—		107
GMWB and GMAB embedded derivatives	—		—		480
IUL embedded derivatives	—		194		—
Fixed deferred indexed annuity and deposit receivables embedded derivatives	—		3		—
Structured variable annuity embedded derivatives	—		—		766
Total gain (loss)	$	—	$	85	$	212
Six Months Ended June 30, 2021
Interest rate contracts	$	—	$	—	$	(954)
Equity contracts	1		55		(614)
Credit contracts	—		—		39
Foreign exchange contracts	—		—		6
GMWB and GMAB embedded derivatives	—		—		943
IUL embedded derivatives	—		11		—
Fixed deferred indexed annuity embedded derivatives	—		(8)		—
Structured variable annuity embedded derivatives	—		—		(175)
Total gain (loss)	$	1	$	58	$	(755)

Summary of payments to make and receive for options and swaptions

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, 2022:

	Premiums Payable		Premiums Receivable
	(in millions)
2022 (1)	$	79	$	110
2023	50		43
2024	132		23
2025	120		20
2026	250		88
2027 - 2029	67		—
Total	$	698	$	284

(1) 2022 amounts represent the amounts payable and receivable for the period from July 1, 2022 to December 31, 2022.