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DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments by Category

The following table presents the gross notional amount and fair value of the Company’s derivatives:

Derivative Instruments by Category


	December 31, 2024
					Fair Value
	Notional Amount		Notional Amount- FWH and NI Modco		Derivative Assets		Derivative Assets - FWH and NI Modco		Derivative Liabilities		Derivative Liabilities - FWH and NI Modco		Net Derivatives
	(in millions)
Derivatives: designated for hedge accounting (1)
Cash flow hedges:
Currency swaps	$	2,574	$	—	$	101	$	—	$	94	$	—	$	7
Interest swaps	952		—		—		—		306		—		(306)
Total: designated for hedge accounting	3,526		—		101		—		400		—		(299)


	December 31, 2024
					Fair Value
	Notional Amount		Notional Amount- FWH and NI Modco		Derivative Assets		Derivative Assets - FWH and NI Modco		Derivative Liabilities		Derivative Liabilities - FWH and NI Modco		Net Derivatives
	(in millions)
Derivatives: not designated for hedge accounting (1)
Equity contracts:
Futures	5,500		3,838		—		—		—		—		—
Swaps	1,837		14,210		3		59		5		—		57
Options	10,892		45,863		3,691		12,929		842		2,581		13,197
Interest rate contracts:
Futures	1,679		6,137		—		—		—		—		—
Swaps	340		314		—		—		29		12		(41)
Credit contracts:
Credit default swaps	75		—		—		—		1		—		(1)
Currency contracts:
Currency swaps	828		—		26		—		—		—		26
Other freestanding contracts:
Margin	—		—		276		210		—		—		486
Collateral	—		—		132		—		13,737		—		(13,605)
Total: Not designated for hedge accounting	21,151		70,362		4,128		13,198		14,614		2,593		119

Embedded derivatives:
SCS, SIO, MSO and IUL indexed features (2) (5)	—		—		9,322		—		12,605		—		(3,283)
Funds withheld payable (3)	—		—		—		—		150		—		(150)
Modco payable (4)	—		—		(345)		—		—		—		(345)
Total embedded derivatives	—		—		8,977		—		12,755		—		(3,778)

Total derivative instruments	$	24,677	$	70,362	$	13,206	$	13,198	$	27,769	$	2,593	$	(3,958)

______________

(1)Reported in other invested assets in the consolidated balance sheets.

(2)Reported in policyholders’ account balances in the consolidated balance sheets.

(3)Reported in funds withheld payable in the consolidated balance sheets.

(4)Recorded in amounts due to reinsurers.

(5)SCS embedded derivative asset is recorded as a modco receivable. This is presented net in the consolidated balance sheets.


	December 31, 2023
					Fair Value
	Notional Amount		Notional Amount - FWH and NI Modco		Derivative Assets		Derivative Assets - FWH and NI Modco		Derivative Liabilities		Derivative Liabilities - FWH and NI Modco		Net Derivatives
	(in millions)
Derivatives: designated for hedge accounting (1)
Cash flow hedges:
Currency swaps	$	2,358	$	—	$	79	$	—	$	90	$	—	$	(11)
Interest swaps	952		—		—		—		311		—		(311)
Total: designated for hedge accounting	3,310		—		79		—		401		—		(322)
Derivatives: not designated for hedge accounting (1)
Equity contracts:
Futures	2,055		3,429		—		—		—		—		—
Swaps	1,996		12,930		7		45		—		—		52
Options	7,445		41,501		2,169		9,675		524		2,203		9,117
Interest rate contracts:
Futures	1,000		6,572		—		—		—		—		—
Swaps	495		2,381		34		83		1		1		115
Credit contracts:
Credit default swaps	103		—		—		—		2		—		(2)
Currency contracts:
Currency swaps	823		—		—		—		27		—		(27)
Other freestanding contracts:
Margin	—		—		96		231		—		—		327
Collateral	—		—		75		—		8,276		—		(8,201)
Total: Not designated for hedge accounting	13,917		66,813		2,381		10,034		8,830		2,204		1,381

Embedded derivatives:
SCS, SIO, MSO and IUL indexed features (2) (5)	—		—		7,140		—		9,081		—		(1,941)
Funds withheld payable (3)	—		—		—		—		100		—		(100)
Modco payable (4)	—		—		(411)		—		—		—		(411)
Total embedded derivatives	—		—		6,729		—		9,181		—		(2,452)

Total derivative instruments	$	17,227	$	66,813	$	9,189	$	10,034	$	18,412	$	2,204	$	(1,393)

______________

(1)Reported in other invested assets in the consolidated balance sheets.

(2)Reported in policyholders’ account balances in the consolidated balance sheets.

(3)Reported in funds withheld payable in the consolidated balance sheets.

(4)Recorded in amounts due from reinsurers in the consolidated balance sheets.

(5)SCS embedded derivative asset is recorded as a modco receivable. This is presented net in the consolidated balance sheets.

The following table presents the effects of derivative instruments on the consolidated statements of income (loss) and comprehensive income (loss):


	Year Ended December 31, 2024										Year Ended December 31, 2023
	Net Derivatives Gains (Losses) (1) (2)		Net-FWH and NI modco Derivatives Gains (Losses)		Net Investment Income		Interest Credited To Policyholders Account Balances		AOCI		Net Derivatives Gains (Losses) (1) (2)		Net-FWH and NI modco Derivatives Gains (Losses)		Net Investment Income		Interest Credited To Policyholders Account Balances		AOCI
	(in millions)
Derivative instruments:
Derivatives: designated for hedge accounting
Cash flow hedges:

Currency swaps	$	2	$	—	$	15	$	(49)	$	56	$	(4)	$	—	$	13	$	(23)	$	(12)
Interest swaps	—		—		(11)		—		32		(18)		—		58		—		(40)
Total: designated for hedge accounting	2		—		4		(49)		88		(22)		—		71		(23)		(52)
Derivatives: not designated for hedge accounting
Equity contracts:
Futures	173		(222)		—		—		—		(32)		(266)		—		—		—
Swaps	(193)		(1,630)		—		—		—		(797)		(1,187)		—		—		—
Options	1,082		4,326		—		—		—		2,117		3,321		—		—		—
Interest rate contracts:
Futures	(67)		72		—		—		—		(9)		56		—		—		—
Swaps	(61)		(262)		—		—		—		(8)		20		—		—		—
Swaptions	—		—		—		—		—		—		—		—		—		—
Credit contracts:
Credit default swaps	—		—		—		—		—		(1)		—		—		—		—
Currency contracts:
Currency swaps	29		—		—		—		—		(23)		—		—		—		—
Currency forwards	—		—		—		—		—		—		—		—		—		—
Other contracts:
Margin	—		—		—		—		—		—		—		—		—		—
Collateral	—		—		—		—		—		—		—		—		—		—
Total: not designated for hedge accounting	963		2,284		—		—		—		1,247		1,944		—		—		—


	Year Ended December 31, 2024										Year Ended December 31, 2023
	Net Derivatives Gains (Losses) (1) (2)		Net-FWH and NI modco Derivatives Gains (Losses)		Net Investment Income		Interest Credited To Policyholders Account Balances		AOCI		Net Derivatives Gains (Losses) (1) (2)		Net-FWH and NI modco Derivatives Gains (Losses)		Net Investment Income		Interest Credited To Policyholders Account Balances		AOCI
	(in millions)
Embedded derivatives:
SCS, SIO, MSO and IUL indexed features	(1,416)		—		—		—		—		(2,357)		—		—		—		—
Funds withheld payable	1,320		—		—		—		—		858		—		—		—		—
Modco payable	(4,801)		—		—		—		—		(4,067)		—		—		—		—
Total embedded derivatives	(4,897)		—		—		—		—		(5,566)		—		—		—		—

Total derivatives	$	(3,932)	$	2,284	$	4	$	(49)	$	88	$	(4,341)	$	1,944	$	71	$	(23)	$	(52)

______________

(1) Reported in net derivative gains (losses) in the consolidated statements of income (loss).

(2) Investment fees of $19 million and $18 million for the years ended December 31, 2024 and 2023, respectively, are reported in net derivative gains (losses) in the consolidated statements of income (loss).


	Year Ended December 31, 2022
	Net Derivatives Gain (Losses) (1) (2)		Net-FWH and NI modco Derivatives Gains (Losses)		Net Investment Income		Interest Credited To Policyholders Account Balances		AOCI
	(in millions)
Derivatives: Designated for hedge accounting
Cash flow hedges:
Currency Swaps	$	19	$	—	$	7	$	(4)	$	24
Interest Swaps	(86)		—		—		—		206
Total: Designated for hedge accounting	(67)				7		(4)		230
Derivatives: Not designated for hedge accounting
Equity contracts:
Futures	349		—		—		—		—
Swaps	2,626		—		—		—		—
Options	(2,752)		—		—		—		—
Interest rate contracts:
Futures	(1,645)		—		—		—		—
Swaps	(492)		—		—		—		—
Credit contracts:
Credit default swaps	8		—		—		—		—
Currency contracts:
Currency swaps	10		—		—		—		—
Currency forwards	—		—		—		—		—
Other contracts:
Margin	—		—		—		—		—
Collateral	—		—		—		—		—
Total: Not designated for hedge accounting	(1,896)		—		—		—		—

Embedded Derivatives:
SCS, SIO, MSO and IUL indexed features	2,857		—		—		—		—
Funds withheld payable	—		—		—		—		—
Modco payable	—		—		—		—		—
Total Embedded Derivatives	2,857		—		—		—		—

Total derivatives instruments	$	894	$	—	$	7	$	(4)	$	230

______________

(1) Reported in net derivative gains (losses) in the consolidated statements of income (loss).

(2) Investment fees of $16 million for the year ended December 31, 2022, are reported in net derivative gains (losses) in the consolidated statements of income (loss).

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents a roll-forward of cash flow hedges recognized in AOCI:

Roll-forward of Cash flow hedges in AOCI


	Year Ended December 31,
		2024		2023		2022
		(in millions)
Balance, beginning of period		$	(29)	$	22	$	(208)
Amount recorded in AOCI
Currency swaps		16		(23)		29
Interest swaps		5		(17)		102
Total amount recorded in AOCI		21		(40)		131
Amount reclassified (to) from income to AOCI
Currency swaps (1)		40		11		(5)
Interest swaps (1)		27		(22)		104
Total amount reclassified (to) from income to AOCI		67		(11)		99
Balance, end of period (2)		$	59	$	(29)	$	22

______________

(1) Currency swaps income is reported in net investment income in the consolidated statements of income (loss). Interest swaps income is reported in net derivative gains (losses) in the consolidated statements of income (loss).

(2) The Company does not estimate the amount of the deferred losses in AOCI at years ended December 31, 2024, 2023 and 2022 which will be released and reclassified into net income (loss) over the next 12 months as the amounts cannot be reasonably estimated.

Schedule of Offsetting Financial Assets and Liabilities and Derivative Instruments

The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments:

Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of December 31, 2024


	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (1)		Net Amount
	(in millions)
Assets:
Derivative assets	$	17,427	$	11,503	$	5,924	$	(5,432)	$	492
Secured lending	117		—		117		—		117
Other financial assets	1,409		—		1,409		—		1,409
Other invested assets	$	18,953	$	11,503	$	7,450	$	(5,432)	$	2,018

Liabilities:
Derivative liabilities	$	12,176	$	11,503	$	673	$	—	$	673
Secured lending	117		—		117		—		117
Other financial liabilities	2,015		—		2,015		—		2,015
Other liabilities	$	14,308	$	11,503	$	2,805	$	—	$	2,805

______________

(1)Financial instruments sent (held).

As of December 31, 2023


	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (1)		Net Amount
	(in millions)
Assets:
Derivative assets	$	12,495	$	8,326	$	4,169	$	(3,076)	$	1,093
Secured lending	93		—		93		—		93
Other financial assets	1,690		—		1,690		—		1,690
Other invested assets	$	14,278	$	8,326	$	5,952	$	(3,076)	$	2,876

Liabilities:
Derivative liabilities	$	8,359	$	8,326	$	33	$	—	$	33
Secured lending	93		—		93		—		93
Other financial liabilities	2,370		—		2,370		—		2,370
Other liabilities	$	10,822	$	8,326	$	2,496	$	—	$	2,496

______________

(1)Financial instruments sent (held).

- 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.

+ References + Details