DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments by Category

The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments:

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

Derivative Instruments by Category

	December 31, 2021						December 31, 2020
			Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in millions)
Derivatives: (1)
Equity contracts:
Futures	$	295	$	—	$	—	$	278	$	—	$	—
Options	59		8		5		59		13		10
Interest rate contracts:
Futures	120		—		—		—		—		—
Other contracts:
Margin	—		18		—		—		17		—
Collateral	—		—		3		—		—		3
Total:	474		26		8		337		30		13
Embedded derivatives:
MSO and IUL indexed features (2)	—		—		132		—		—		131
Total embedded derivatives	—		—		132		—		—		131
Total derivative instruments	$	474	$	26	$	140	$	337	$	30	$	144

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

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

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

	Year Ended December 31,
	2021		2020		2019
	Net Derivatives Gain(Losses) (1)
	(in millions)
Derivatives:
Equity contracts:
Futures	$	68	$	25	$	78
Options	3		3		18
Interest rate contracts:
Futures	1		—		—
Total:	72		28		96
Embedded Derivatives:
MSO and IUL indexed features	(73)		(44)		(92)
Total Embedded Derivatives	(73)		(44)		(92)
Total Derivatives	$	(1)	$	(16)	$	4

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

Offsetting Financial Assets and Liabilities and Derivative Instruments

The following table presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of December 31, 2021 and 2020:

Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of December 31, 2021

	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	$	26	$	8	$	18	$	—	$	18
Other financial assets	1		—		1		—		1
Other invested assets	$	27	$	8	$	19	$	—	$	19
Liabilities:
Derivative liabilities	$	8	$	8	$	—	$	—	$	—
Other financial liabilities	42		—		42		—		42
Other liabilities	$	50	$	8	$	42	$	—	$	42

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(1) Financial instruments sent (held).

Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of December 31, 2020

	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	$	30	$	13	$	17	$	—	$	17
Other financial instruments	65		—		65		—		65
Other invested assets	$	95	$	13	$	82	$	—	$	82
Liabilities:
Derivative liabilities	$	13	$	13	$	—	$	—	$	—
Other financial liabilities	72		—		72		—		72
Other liabilities	$	85	$	13	$	72	$	—	$	72

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(1)Financial instruments sent (held).