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Derivative Instruments
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments DERIVATIVE INSTRUMENTS
See Note 2 – “Significant Accounting Policies and Pronouncements” of the Company’s 2024 Annual Report for a detailed discussion of the accounting treatment for derivative instruments, including embedded derivatives. See Note 12 – “Fair Value of Assets and Liabilities” for additional disclosures related to the fair value hierarchy for derivative instruments, including embedded derivatives.
Commonly used derivative instruments include, but are not limited to: interest rate swaps, interest rate options, total return swaps, interest rate futures, foreign currency swaps, foreign currency forwards, foreign currency options, equity options, equity futures, credit default swaps (single name and index), options on credit default index swaps, consumer price index (“CPI”) swaps, forward bond purchase commitments, synthetic guaranteed investment contracts (“GICs”), other derivatives and embedded derivatives. For detailed information on these derivative instruments and the Company’s related strategies, see Note 12 – “Derivative Instruments” of the Company’s 2024 Annual Report.
Summary of Derivative Positions
Freestanding derivatives, except for other swaps, are included in other invested assets or other liabilities, at fair value. Other swaps are included on the condensed consolidated balance sheets in other assets or other liabilities, at fair value. Embedded derivative assets and liabilities on modified coinsurance or funds withheld arrangements are included on the condensed consolidated balance sheets with the host contract in funds withheld at interest or funds withheld payable, at fair value. Embedded derivative liabilities on indexed products are included on the condensed consolidated balance sheets with the host contract in interest-sensitive contract liabilities, at fair value. The following table presents the notional amounts and gross fair value of derivative instruments prior to taking into account the netting effects of master netting agreements as of June 30, 2025 and December 31, 2024 (dollars in millions):
 June 30, 2025December 31, 2024
 Primary Underlying RiskNotionalCarrying Value / Fair ValueNotionalCarrying Value / Fair Value
 AmountAssetsLiabilitiesAmountAssetsLiabilities
Derivatives not designated as hedging instruments:
Interest rate swaps Interest rate$1,907 $8 $13 $1,848 $6 $20 
Interest rate optionsInterest rate500 1 — 1,773 1 — 
Total return swapsInterest rate735 2 14 956 — 14 
Foreign currency swapsForeign currency150 39 — 150 47 — 
Foreign currency forwardsForeign currency1,261 23 3 1,148 9 37 
Foreign currency optionsForeign currency430 2 — 430 1 — 
Equity optionsEquity956 48 18 255 5 1 
Equity futuresEquity224 — — 209 — — 
Credit default swapsCredit5,288 5 30 2,661 4 6 
Credit default index swaps optionsCredit100 — — — — — 
Other swapsCredit1,843 2 2 1,300 2 2 
CPI swapsCPI415 2 8 408 6 2 
Synthetic GICsInterest rate16,769 — — 15,362 — — 
Embedded derivatives in:
Modified coinsurance or funds withheld arrangements— 310 373 — 283 338 
Indexed products— — 354 — — 435 
Total non-designated derivatives30,578 442 815 26,500 364 855 
Derivatives designated as hedging instruments:
Interest rate swaps Interest rate3,223 38 68 3,336 5 103 
Forward bond purchase commitmentsInterest rate2,358 5 226 2,020 — 206 
Foreign currency swapsForeign currency2,008 14 91 2,008 7 159 
Foreign currency forwardsForeign currency2,259 2 75 1,966 94 — 
Total hedging derivatives9,848 59 460 9,330 106 468 
Total derivatives$40,426 $501 $1,275 $35,830 $470 $1,323 
Fair Value Hedges
The Company designates and reports the following as fair value hedges when they meet the requirements of the general accounting principles for Derivatives and Hedging: (i) certain foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets; and (ii) interest rate swaps to convert fixed rate liabilities to floating rate liabilities. The gain or loss on the hedged item attributable to a change in interest rates or foreign currency and the offsetting gain or loss on the related interest rate or foreign currency swaps for the three and six months ended June 30, 2025 and 2024 are as follows (dollars in millions):
Derivative TypeHedged ItemInvestment Related
Gains (Losses), Net		Claims and Other Policy BenefitsInterest Credited
DerivativesHedged ItemsDerivativesHedged ItemsDerivativesHedged Items
For the three months ended June 30, 2025:
Foreign currency swapsForeign-denominated fixed maturity securities$— $— $— $— $— $— 
Interest rate swapsFuture policy benefits— — 1 (1)— — 
Interest rate swapsInterest-sensitive contract liabilities— — — — 2 (1)
For the three months ended June 30, 2024:
Foreign currency swapsForeign-denominated fixed maturity securities3 (4)— — — — 
Interest rate swapsFuture policy benefits— — (4)2 — — 
Interest rate swapsInterest-sensitive contract liabilities— — — — (3)1 
For the six months ended June 30, 2025:
Foreign currency swapsForeign-denominated fixed maturity securities— — — — — — 
Interest rate swapsFuture policy benefits— — 14 (14)— — 
Interest rate swapsInterest-sensitive contract liabilities— — — — 22 (26)
For the six months ended June 30, 2024:
Foreign currency swapsForeign-denominated fixed maturity securities2 (4)— — — — 
Interest rate swapsFuture policy benefits— — (4)2 — — 
Interest rate swapsInterest-sensitive contract liabilities— — — — (5)2 
The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges (dollars in millions):
Hedged ItemCarrying Amount of
the Hedged Assets / (Liabilities)		Cumulative Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets / (Liabilities) Discontinued Fair Value Hedge Adjustments Included in the Cumulative Adjustments
June 30, 2025December 31, 2024June 30, 2025December 31, 2024June 30, 2025December 31, 2024
Future policy benefits$(573)$(508)$(7)$7 $3 $— 
Interest-sensitive contract liabilities(988)(1,111)(15)11 7 — 
Cash Flow Hedges
Certain derivative instruments are designated as cash flow hedges when they meet the requirements of the general accounting principles for Derivatives and Hedging. The Company designates and accounts for the following as cash flow hedges: (i) certain interest rate swaps, in which the cash flows of assets and liabilities are variable based on a benchmark rate; (ii) certain interest rate swaps, in which floating rate assets are converted to fixed rate assets; (iii) forward bond purchase commitments; and (iv) certain foreign currency swaps, in which the cash flows of assets are denominated in different currencies, commonly referred to as cross-currency swaps.
The following table presents the cash flow hedge components of AOCI, before income taxes, and where the gain or loss related to cash flow hedges is recognized on the condensed consolidated statements of income for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
 Three months ended June 30,
 20252024
Balance, beginning of period$(485)$(299)
Gains (losses), net deferred in other comprehensive income (loss)(4)(125)
Amounts reclassified to net investment income18 14 
Amounts reclassified to interest expense(2)(3)
Balance, end of period$(473)$(413)
 Six months ended June 30,
 20252024
Balance, beginning of period$(495)$(218)
Gains (losses), net deferred in other comprehensive income (loss)(10)(211)
Amounts reclassified to net investment income36 22 
Amounts reclassified to interest expense(4)(6)
Balance, end of period$(473)$(413)
As of June 30, 2025, approximately $73 million of before tax deferred net losses on derivative instruments recorded in AOCI are expected to be reclassified to net investment income during the next twelve months. For the same time period, approximately $6 million of before tax deferred net gains on derivative instruments recorded in AOCI are expected to be reclassified to interest expense during the next twelve months.
The following table presents the effect of derivatives in cash flow hedging relationships on the condensed consolidated statements of income for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
Derivative TypeGains (Losses)
 Deferred in OCI		Gains (Losses) Reclassified into Income from
AOCI
Net Investment IncomeInterest Expense
For the three months ended June 30, 2025:
Interest rate$(64)$(1)$2 
Foreign currency60 (17)— 
Total$(4)$(18)$2 
For the three months ended June 30, 2024:
Interest rate$(33)$(3)$3 
Foreign currency(92)(11)— 
Total$(125)$(14)$3 
For the six months ended June 30, 2025:
Interest rate$(52)$(2)$4 
Foreign currency42 (34)— 
Total$(10)$(36)$4 
For the six months ended June 30, 2024:
Interest rate$(90)$(6)$6 
Foreign currency(121)(16)— 
Total$(211)$(22)$6 
For the three and six months ended June 30, 2025 and 2024, there were no material amounts reclassified into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging.
Hedges of Net Investments in Foreign Operations
The Company uses foreign currency forwards to hedge a portion of its net investment in certain foreign operations against adverse movements in exchange rates. The following table illustrates the Company’s net investments in foreign operations (“NIFO”) hedges and the gains (losses) deferred in OCI for the three and six months ended June 30, 2025 and 2024 (dollars in millions):
 Derivative Gains (Losses) Deferred in OCI   
 Three months ended June 30,Six months ended June 30,
Derivative Type2025202420252024
Foreign currency forwards$(106)$11 $(121)$36 
The cumulative foreign currency translation gain recorded in AOCI related to these hedges was $192 million and $313 million as of June 30, 2025 and December 31, 2024, respectively. If a hedged foreign operation was sold or substantially liquidated, the amounts in AOCI would be reclassified to the condensed consolidated statements of income. A pro rata portion would be reclassified upon partial sale of a hedged foreign operation. There were no sales or substantial liquidations of net investments in foreign operations that would have required the reclassification of gains or losses from AOCI into investment income during the periods presented.
Non-qualifying Derivatives and Derivatives for Purposes Other Than Hedging
The Company uses various other derivative instruments for risk management purposes that either do not qualify or have not been elected for hedge accounting treatment. The gain or loss related to the change in fair value for these derivative instruments is recognized in investment related gains (losses), net, except where otherwise noted.
A summary of the effect of non-qualifying derivatives, including embedded derivatives, on the Company’s condensed consolidated statements of income for the three and six months ended June 30, 2025 and 2024 is as follows (dollars in millions):
  Gains (Losses) for the three months ended     
June 30,
Type of Non-qualifying DerivativeIncome Statement Location of Gains (Losses)20252024
Interest rate swapsInvestment related gains (losses), net$(1)$(13)
Interest rate optionsInvestment related gains (losses), net(1)— 
Total return swapsInvestment related gains (losses), net6 (11)
Interest rate futuresInvestment related gains (losses), net— 1 
Foreign currency swapsInvestment related gains (losses), net(2)8 
Foreign currency forwardsInvestment related gains (losses), net40 (98)
Foreign currency optionsInvestment related gains (losses), net(2)(3)
Equity optionsInvestment related gains (losses), net11 (1)
Equity futuresInvestment related gains (losses), net(21)(2)
Credit default swapsInvestment related gains (losses), net21 2 
CPI swapsInvestment related gains (losses), net(1)(1)
Subtotal50 (118)
Embedded derivatives in:
Modified coinsurance or funds withheld arrangementsInvestment related gains (losses), net3 26 
Indexed productsInterest credited8 8 
Total non-qualifying derivatives$61 $(84)
Gains (Losses) for the six months ended     
June 30,
Type of Non-qualifying DerivativeIncome Statement Location of Gains (Losses)20252024
Interest rate swapsInvestment related gains (losses), net$5 $(44)
Interest rate optionsInvestment related gains (losses), net(1)(3)
Total return swapsInvestment related gains (losses), net— (7)
Interest rate futuresInvestment related gains (losses), net— 2 
Foreign currency swapsInvestment related gains (losses), net(5)22 
Foreign currency forwardsInvestment related gains (losses), net62 (162)
Foreign currency optionsInvestment related gains (losses), net(3)(3)
Equity optionsInvestment related gains (losses), net5 (5)
Equity futuresInvestment related gains (losses), net(12)(19)
Credit default swapsInvestment related gains (losses), net3 4 
CPI swapsInvestment related gains (losses), net(6)(1)
Subtotal48 (216)
Embedded derivatives in:
Modified coinsurance or funds withheld arrangementsInvestment related gains (losses), net(8)103 
Indexed productsInterest credited32 (12)
Total non-qualifying derivatives$72 $(125)
Credit Derivatives
The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of credit default swaps sold by the Company at June 30, 2025 and December 31, 2024 (dollars in millions):
 June 30, 2025December 31, 2024
Rating Agency Designation of Referenced Credit Obligations(1)
Estimated Fair
Value of Credit 
Default Swaps
Maximum
Amount of Future
Payments under
Credit Default
Swaps (2)
Weighted
Average
Years to
Maturity (3)
Estimated Fair
Value of Credit 
Default Swaps
Maximum
Amount of Future
Payments under
Credit Default
Swaps (2)
Weighted
Average
Years to
Maturity (3)  
AAA/AA/A
Single name credit default swaps$(29)$440 16.2$(5)$410 17.5
BBB
Single name credit default swaps3 180 2.53 150 2.3
Credit default swaps referencing indices1 4,653 5.3— 2,086 5.1
Subtotal4 4,833 5.23 2,236 4.9
BB
Single name credit default swaps— 5 1.0— 5 1.5
B
Single name credit default swaps— 10 0.7— 10 1.2
Total$(25)$5,288 6.1$(2)$2,661 6.8
(1)Rating agency designations are based on ratings from Standard and Poor’s (“S&P”).
(2)Assumes the value of the referenced credit obligations is zero.
(3)The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.
Netting Arrangements and Credit Risk
Certain of the Company’s freestanding derivatives are subject to enforceable master netting arrangements and reported as a net asset or liability in the condensed consolidated balance sheets. The Company nets all derivatives that are subject to such arrangements.
The Company has elected to include all freestanding derivatives in the table below, irrespective of whether they are subject to an enforceable master netting arrangement or a similar agreement. See Note 10 – “Investments” for information regarding the Company’s securities borrowing, lending and repurchase/reverse repurchase agreements.
The following table provides information relating to the netting of the Company’s derivative instruments as of June 30, 2025 and December 31, 2024 (dollars in millions):
Gross Amounts  
Recognized		Gross Amounts
Offset in the
Balance Sheet   		Net Amounts
Presented in the
Balance Sheet   
Financial
Instruments / Collateral (1)
Net Amount   
June 30, 2025:
Derivative assets$191 $(70)$121 $(121)$— 
Derivative liabilities548 (70)478 (478)— 
December 31, 2024:
Derivative assets187 (64)123 (123)— 
Derivative liabilities550 (64)486 (486)— 
(1)Includes initial margin posted to a central clearing partner for financial instruments and excludes the excess of collateral received/pledged from/to the counterparty.
The Company may be exposed to credit-related losses in the event of non-performance by counterparties to derivative financial instruments. Generally, the credit exposure of the Company’s derivative contracts is limited to the fair value and accrued interest of non-collateralized derivative contracts in an asset position at the reporting date. As of June 30, 2025, the Company had credit exposure of $16 million.
Derivatives may be exchange-traded or they may be privately negotiated contracts, which are referred to as over-the-counter (“OTC”) derivatives. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC cleared”) and others are bilateral contracts between two counterparties. Additionally, the Company is required to pledge initial margin for certain OTC-bilateral derivative transactions. The Company manages its credit risk related to OTC derivatives by entering into transactions with creditworthy counterparties, maintaining collateral arrangements and through the use of master netting agreements that provide for a single net payment to be made by one counterparty to another at each due date and upon termination. The Company is only exposed to the default of the central clearing counterparties for OTC cleared
derivatives, and these transactions require initial and daily variation margin collateral postings. Exchange-traded derivatives are settled on a daily basis, thereby reducing the credit risk exposure in the event of non-performance by counterparties to such financial instruments.