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Derivatives and Hedge Accounting (Tables) | 6 Months Ended
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Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Instruments | The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets:
| June 30, 2024 |  | December 31, 2023
| Gross Derivative Assets |  | Gross Derivative Liabilities |  | Gross Derivative Assets |  | Gross Derivative Liabilities
(in millions) |  | Notional Amount |  | Fair Value |  |  | Notional Amount |  | Fair Value |  |  | Notional Amount |  | Fair Value |  |  | Notional Amount |  | Fair Value
Derivatives designated as hedging instruments:(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts | $ | 625 |  | $ | 42 |  |  | $ | 947 |  | $ | 157 |  |  | $ | 933 |  | $ | 58 |  |  | $ | 1,296 |  | $ | 164 |
Derivatives not designated as hedging instruments:(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | 1,799 |  |  | 266 |  |  |  | 937 |  |  | 291 |  |  |  | 14,657 |  |  | 741 |  |  |  | 1,165 |  |  | 352 |
Foreign exchange contracts |  | 2,408 |  |  | 215 |  |  |  | 2,350 |  |  | 168 |  |  |  | 4,019 |  |  | 393 |  |  |  | 8,008 |  |  | 400 |
Equity contracts |  | 81 |  |  | 35 |  |  |  | — |  |  | — |  |  |  | 36,045 |  |  | 66 |  |  |  | — |  |  | — |
Credit contracts(b) |  | 1,803 |  |  | 33 |  |  |  | 207 |  |  | 33 |  |  |  | 1,804 |  |  | 33 |  |  |  | 504 |  |  | 36 |
Other contracts(c) |  | 2,123 |  |  | 1 |  |  |  | — |  |  | — |  |  |  | 2,131 |  |  | 1 |  |  |  | — |  |  | — |
| June 30, 2024 |  | December 31, 2023
| Gross Derivative Assets |  | Gross Derivative Liabilities |  | Gross Derivative Assets |  | Gross Derivative Liabilities
(in millions) |  | Notional Amount |  | Fair Value |  |  | Notional Amount |  | Fair Value |  |  | Notional Amount |  | Fair Value |  |  | Notional Amount |  | Fair Value
Total derivatives, gross | $ | 8,839 |  | $ | 592 |  |  | $ | 4,441 |  | $ | 649 |  |  | $ | 59,589 |  | $ | 1,292 |  |  | $ | 10,973 |  | $ | 952 |
Counterparty netting(d) |  |  |  | (245) |  |  |  |  |  | (245) |  |  |  |  |  | (450) |  |  |  |  |  | (450) |
Cash collateral(e) |  |  |  | (288) |  |  |  |  |  | (180) |  |  |  |  |  | (711) |  |  |  |  |  | (249) |
Total derivatives on Condensed Consolidated Balance Sheets(f) |  |  | $ | 59 |  |  |  |  | $ | 224 |  |  |  |  | $ | 131 |  |  |  |  | $ | 253 |
(a)Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b)As of June 30, 2024 and December 31, 2023, included CDSs on super senior multi-sector CLO with a net notional amount of $48 million and $50 million (fair value liability of $32 million and $32 million, respectively). The net notional amount represents the maximum exposure to loss on the portfolio. (c)Consists primarily of stable value wraps and contracts with multiple underlying exposures. (d)Represents netting of derivative exposures covered by a qualifying master netting agreement. (e)Represents cash collateral posted and received that is eligible for netting. (f)Freestanding derivatives only, excludes embedded derivative s. Derivative instrument assets and liabilities are recorded in Other assets and Other liabilities, respectively. Fair value of assets related to bifurcated embedded derivatives was $154 million at June 30, 2024 and $3.4 billion at December 31, 2023. Fair value of liabilities related to bifurcated embedded derivatives was zero at both June 30, 2024 and December 31, 2023. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in fixed index annuities, index universal life products, and bonds available for sale, which include equity and interest rate components, and the funds withheld arrangement with Fortitude Re. For additional information, see Note 8.
Schedule of Gain (Loss) Recognized in Income on Derivative Instruments in Fair Value Hedging Relationships | The following table presents the gain (loss) recognized in income on our derivative instruments in fair value hedging relationships in the Condensed Consolidated Statements of Income (Loss):
|  | Gains/(Losses) Recognized in Income for: |  |
(in millions) |  | Hedging Derivatives(a) |  | Excluded Components(b) |  | Hedged Items |  | Net Impact
Three Months Ended June 30, 2024 |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |
Net realized gains/(losses) |  | $ | (57) |  |  | $ | (15) |  |  | $ | 57 |  |  | $ | (15) |
Three Months Ended June 30, 2023 |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |
Net realized gains/(losses) |  | $ | (141) |  |  | $ | (2) |  |  | $ | 141 |  |  | $ | (2) |
Six Months Ended June 30, 2024 |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |
Net realized gains/(losses) |  | $ | (115) |  |  | $ | (27) |  |  | $ | 115 |  |  | $ | (27) |
Six Months Ended June 30, 2023 |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |
Net realized gains/(losses) |  | $ | (191) |  |  | $ | (2) |  |  | $ | 191 |  |  | $ | (2) |
(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness. (b)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in income on a mark-to-market basis.
Derivatives Not Designated as Hedging Instruments | The following table presents the effect of derivative instruments not designated as hedging instruments in the Condensed Consolidated Statements of Income (Loss):
| Gains (Losses) Recognized in Income
| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
(in millions) |  | 2024 |  | 2023 |  |  | 2024 |  | 2023 |  |
By Derivative Type: |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts | $ | — |  | $ | (3) |  |  | $ | (2) |  | $ | (2) |  |  |
Foreign exchange contracts |  | (26) |  |  | (92) |  |  |  | (65) |  |  | (126) |  |  |
Equity contracts |  | — |  |  | 1 |  |  |  | — |  |  | 1 |  |  |
Commodity contracts |  | — |  |  | 1 |  |  |  | — |  |  | 8 |  |  |
Credit contracts |  | (1) |  |  | — |  |  |  | — |  |  | (1) |  |  |
Embedded derivatives |  | 8 |  |  | 58 |  |  |  | (1) |  |  | (82) |  |  |
Total | $ | (19) |  | $ | (35) |  |  | $ | (68) |  | $ | (202) |  |  |
By Classification: |  |  |  |  |  |  |  |  |  |  |
Net investment income - Fortitude Re funds withheld assets |  | — |  |  | (1) |  |  |  | — |  |  | (1) |  |  |
Net realized losses - excluding Fortitude Re funds withheld assets |  | (27) |  |  | (89) |  |  |  | (69) |  |  | (113) |  |  |
Net realized gains (losses) on Fortitude Re funds withheld assets* |  | 8 |  |  | 55 |  |  |  | 1 |  |  | (88) |  |  |
Total | $ | (19) |  | $ | (35) |  |  | $ | (68) |  | $ | (202) |  |  |
*Includes over-the-counter derivatives supporting the funds withheld arrangements with Fortitude Re and the embedded derivative contained within the funds withheld payable with Fortitude Re.

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