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DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Gains and Losses

The following table represents the gains (losses) recognized on derivative instruments and related hedged items in fair value hedging relationship:

Year Ended December 31, 2022			Derivatives						Hedged items						Net
2029 Senior Notes			$	(70,382)					$	70,382					$	—
2031 Senior Notes			(107,473)						107,473						—
FHLB funding agreement liabilities			(47,266)						47,266						—
FABN liabilities			(335,110)						335,110						—

Year Ended December 31, 2021			Derivatives						Hedged items						Net
2029 Senior Notes			$	(18,808)					$	18,808					$	—
2031 Senior Notes			(5,561)						5,561						—
FHLB funding agreement liabilities			(16,092)						16,092						—

The following table represents the gains (losses) related to the FX forwards hedging instruments:

			Years Ended December 31,
			2022						2021
FX forward derivative:
Net investment-related gains (losses)			$	64,945					$	21,490
AOCI			(6,784)						2,275
Amortization - excluded component			14,737						2,971
Hedged available-for-sale securities:
Net investment-related gains (losses)			(61,785)						(22,721)
			December 31, 2022						December 31, 2021
Notional value of foreign currency forward			$	2,021,061					$	1,192,412

The amounts of derivative gains and losses recognized are reported in the consolidated statements of operations as follows:

Derivative contracts not designated as hedges									Years Ended December 31,
															2022						2021						2020
Asset Management
Net Gains (Losses) from Investment Activities:
Foreign Exchange Contracts and Options															362,965						$	545,238					$	(332,096)
Other Derivatives															6,790						(77,034)						(202,744)
Total included in Net Gains (Losses) from Investment Activities															$	369,755					$	468,204					$	(534,840)
Insurance
Net investment-related gains (losses):
Funds withheld receivable embedded derivatives															$	(29,390)					$	31,740					$	—
Funds withheld payable embedded derivatives															3,448,710						49,491						—
Equity index options															(895,602)						549,987						—
Equity future contracts															167,924						(263,637)						—
Interest rate contracts and other															(333,937)						(146,920)						—
Credit risk contracts															(108)						(400)						—
Other															(29,779)						—						—
Total included in net investment-related gains (losses)															$	2,327,818					$	220,261					$	—

    

Derivative contracts designated as hedges									Years Ended December 31,
															2022						2021						2020
Insurance
Revenues
Net investment-related gains (losses):
Foreign currency forwards															$	18,929					$	2,484					$	—
Total included in net investment-related gains (losses)															$	18,929					$	2,484					$	—
Expenses
Net policy benefits and claims:
Interest rate swaps															$	(438,707)					$	(16,177)					$	—
Total included in net policy benefits and claims															$	(438,707)					$	(16,177)					$	—
Interest expense:
Interest rate swaps															$	(179,259)					$	(15,069)					$	—
Total included in interest expense															$	(179,259)					$	(15,069)					$	—

Schedule of Derivative Liabilities at Fair Value

The following table represents the carrying values and cumulative fair value adjustments for hedged items reflected there-in:

			As of December 31, 2022												As of December 31, 2021
			Carrying value						Cumulative fair value of hedge adjustments(1)						Carrying value						Cumulative fair value of hedge adjustments
2029 Senior Notes			$	408,295					$	(89,180)					$	473,890					$	(18,808)
2031 Senior Notes			537,578						(112,423)						644,439						(5,561)
FHLB funding agreement liabilities			1,039,632						(67,116)						1,070,770						(16,092)
FABN liabilities			4,631,252						(368,378)						—						—

(1)Includes $19.8 million and $33.3 million of fair value hedge adjustments on discontinued hedges of FHLB and FABN liabilities, respectively, as of December 31, 2022.

Fair Value and Notional Value of Derivative Assets and Liabilities

The fair value and notional value of the derivative assets and liabilities were as follows:

As of December 31, 2022						Notional Value						Derivative Assets						Derivative Liabilities
Asset Management
Foreign Exchange Contracts and Options						$	16,144,795					$	668,716					$	406,746
Other Derivatives						125,000						7,519						11,018
Total Asset Management												$	676,235					$	417,764
Insurance
Equity market contracts						$	34,889,122					$	626,391					$	91,344
Interest rate contracts						15,699,253						182,734						962,329
Foreign currency contracts						2,696,451						127,440						91,680
Credit risk contracts						60,000						—						929
Impact of netting(1)												(212,175)						(212,175)
Fair value included within derivative assets and derivative liabilities												724,390						934,107
Embedded derivative – indexed universal life products												—						337,860
Embedded derivative – annuity products												—						1,855,366
Fair value included within policy liabilities												—						2,193,226
Embedded derivative – funds withheld at interest												12,785						(3,487,766)
Total Insurance												$	737,175					$	(360,433)
Fair value included within total assets and liabilities												$	1,413,410					$	57,331

(1)Represents netting of derivative exposures covered by qualifying master netting agreements.

As of December 31, 2021			Notional Value						Derivative Assets						Derivative Liabilities
Asset Management
Foreign Exchange Contracts and Options			$	12,822,521					$	590,637					$	319,511
Other Derivatives			505,725						491						45,003
Total Asset Management									$	591,128					$	364,514
Insurance
Equity market contracts			$	31,294,053					$	1,216,843					$	186,754
Interest rate contracts			16,692,035						198,658						101,245
Foreign currency contracts			1,517,434						32,464						7,639
Credit risk contracts			107,754						—						1,540
Impact of netting(1)									(152,015)						(152,015)
Fair value included within derivative assets and derivative liabilities									1,295,950						145,163
Embedded derivative – indexed universal life products									—						557,276
Embedded derivative – annuity products									—						1,983,949
Fair value included within policy liabilities									—						2,541,225
Embedded derivative – funds withheld at interest									31,740						(49,491)
Total Insurance									$	1,327,690					$	2,636,897
Fair value included within total assets and liabilities									$	1,918,818					$	3,001,411

(1)Represents netting of derivative exposures covered by qualifying master netting agreements.

Offsetting Assets

The amount of Global Atlantic's net derivative assets and liabilities after consideration of collateral received or pledged were as follows:

As of December 31, 2022			Gross amount recognized						Gross amounts offset in the statements of financial position(1)						Net amounts presented in the statements of financial condition						Collateral (received) / pledged						Net amount after collateral
Derivative assets (excluding embedded derivatives)			$	936,565					$	(212,175)					$	724,390					$	(466,371)					$	258,019
Derivative liabilities (excluding embedded derivatives)			$	1,146,282					$	(212,175)					$	934,107					$	366,508					$	567,599

(1)Represents netting of derivative exposures covered by qualifying master netting agreements.

As of December 31, 2021			Gross amount recognized						Gross amounts offset in the statements of financial position(1)						Net amounts presented in the statements of financial condition						Collateral (received) / pledged						Net amount after collateral
Derivative assets (excluding embedded derivatives)			$	1,447,965					$	(152,015)					$	1,295,950					$	(1,086,061)					$	209,889
Derivative liabilities (excluding embedded derivatives)			$	297,178					$	(152,015)					$	145,163					$	49,860					$	95,303

(1) Represents netting of derivative exposures covered by qualifying master netting agreements.

Offsetting Liabilities

The amount of Global Atlantic's net derivative assets and liabilities after consideration of collateral received or pledged were as follows:

As of December 31, 2022			Gross amount recognized						Gross amounts offset in the statements of financial position(1)						Net amounts presented in the statements of financial condition						Collateral (received) / pledged						Net amount after collateral
Derivative assets (excluding embedded derivatives)			$	936,565					$	(212,175)					$	724,390					$	(466,371)					$	258,019
Derivative liabilities (excluding embedded derivatives)			$	1,146,282					$	(212,175)					$	934,107					$	366,508					$	567,599

(1)Represents netting of derivative exposures covered by qualifying master netting agreements.

As of December 31, 2021			Gross amount recognized						Gross amounts offset in the statements of financial position(1)						Net amounts presented in the statements of financial condition						Collateral (received) / pledged						Net amount after collateral
Derivative assets (excluding embedded derivatives)			$	1,447,965					$	(152,015)					$	1,295,950					$	(1,086,061)					$	209,889
Derivative liabilities (excluding embedded derivatives)			$	297,178					$	(152,015)					$	145,163					$	49,860					$	95,303

(1) Represents netting of derivative exposures covered by qualifying master netting agreements.

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