The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral. This netting impact results in total derivative assets of $1,847 million and $1,906 million as of March 31, 2021 and December 31, 2020, respectively, and total derivative liabilities of $1,575 million and $792 million as of March 31, 2021 and December 31, 2020, respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position.


Primary Underlying Risk /Instrument Type	March 31, 2021						December 31, 2020
			Fair Value						Fair Value
	Gross Notional		Assets		Liabilities		Gross Notional		Assets		Liabilities
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	3,015	$	601	$	(69)	$	3,065	$	978	$	(90)
Interest Rate Forwards	298		0		(37)		249		0		(8)
Foreign Currency
Foreign Currency Forwards	2,666		79		(133)		2,577		68		(116)
Currency/Interest Rate
Foreign Currency Swaps	22,831		821		(875)		22,642		878		(1,037)
Total Derivatives Designated as Hedge Accounting Instruments	$	28,810	$	1,501	$	(1,114)	$	28,533	$	1,924	$	(1,251)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	210,809	$	9,956	$	(16,035)	$	178,803	$	17,174	$	(13,172)
Interest Rate Futures	17,570		14		(65)		15,778		99		(5)
Interest Rate Options	15,318		417		(226)		14,593		914		(233)
Interest Rate Forwards	2,974		36		(24)		2,910		25		0
Foreign Currency
Foreign Currency Forwards	33,199		989		(1,110)		35,478		764		(647)
Foreign Currency Options	0		0		0		0		0		0
Currency/Interest Rate
Foreign Currency Swaps	13,567		626		(418)		13,661		537		(601)
Credit
Credit Default Swaps	2,305		50		0		3,360		63		(28)
Equity
Equity Futures	5,195		24		(3)		5,668		10		(25)
Equity Options	42,374		664		(921)		36,250		1,731		(1,028)
Total Return Swaps	19,731		102		(440)		22,489		32		(1,277)
Other
Other(1)	1,259		0		0		1,262		0		0
Synthetic GICs	85,273		0		0		86,264		0		0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	$	449,574	$	12,878	$	(19,242)	$	416,516	$	21,349	$	(17,016)
Total Derivatives(2)(3)	$	478,384	$	14,379	$	(20,356)	$	445,049	$	23,273	$	(18,267)


	March 31, 2021				December 31, 2020
Balance Sheet Line Item in which Hedged Item is Recorded	Carrying Amount of the Hedged Assets (Liabilities)		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities)(1)		Carrying Amount of the Hedged Assets (Liabilities)		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities)(1)

	(in millions)
Fixed maturities, available-for-sale, at fair value	$	367	$	60	$	402	$	79
Commercial mortgage and other loans	$	20	$	1	$	20	$	2
Policyholders’ account balances	$	(1,434)	$	(96)	$	(1,627)	$	(303)
Future policy benefits	$	(1,415)	$	(202)	$	(1,585)	$	(372)

Most of the Company’s derivatives do not qualify for hedge accounting for various reasons. For example: (i) derivatives that economically hedge embedded derivatives do not qualify for hedge accounting because changes in the fair value of the embedded derivatives are already recorded in net income; (ii) derivatives that are utilized as macro hedges of the Company’s exposure to various risks typically do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedge accounting rules; and (iii) synthetic GICs, which are product standalone derivatives, do not qualify as hedging instruments under hedge accounting rules.

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.


	March 31, 2021
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statements of Financial Position		Net Amounts Presented in the Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives(1)	$	14,236	$	(12,532)	$	1,704	$	(865)	$	839
Securities purchased under agreement to resell	442		0		442		(442)		0
Total assets	$	14,678	$	(12,532)	$	2,146	$	(1,307)	$	839
Offsetting of Financial Liabilities:
Derivatives(1)	$	20,356	$	(18,781)	$	1,575	$	(983)	$	592
Securities sold under agreement to repurchase	9,384		0		9,384		(9,253)		131
Total liabilities	$	29,740	$	(18,781)	$	10,959	$	(10,236)	$	723


	December 31, 2020
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statements of Financial Position		Net Amounts Presented in the Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives(1)	$	23,144	$	(21,367)	$	1,777	$	(806)	$	971
Securities purchased under agreement to resell	252		0		252		(252)		0
Total assets	$	23,396	$	(21,367)	$	2,029	$	(1,058)	$	971
Offsetting of Financial Liabilities:
Derivatives(1)	$	18,265	$	(17,475)	$	790	$	(790)	$	0
Securities sold under agreement to repurchase	10,894		0		10,894		(10,432)		462
Total liabilities	$	29,159	$	(17,475)	$	11,684	$	(11,222)	$	462

For information regarding the rights of offset associated with the derivative assets and liabilities in the table above, see “—Counterparty Credit Risk” below. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2020.

The primary derivative and non-derivative instruments used by the Company in its fair value, cash flow and net investment hedge accounting relationships are interest rate swaps, currency swaps, currency forwards, and foreign currency denominated debts. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, or equity derivatives in any of its fair value, cash flow or net investment hedge accounting relationships.


	Three Months Ended March 31, 2021
	Realized Investment Gains (Losses)		Net Investment Income		Other Income (Loss)		Interest Expense		Interest Credited to Policyholders’ Account Balances		Policyholders’ Benefits		AOCI(1)
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Fair value hedges
Gains (losses) on derivatives designated as hedge instruments:
Interest Rate	$	21	$	(2)	$	0	$	0	$	(192)	$	(170)	$	0
Currency	(2)		0		0		0		0		7		0
Total gains (losses) on derivatives designated as hedge instruments	19		(2)		0		0		(192)		(163)		0
Gains (losses) on the hedged item:
Interest Rate	(20)		4		0		0		207		180		0
Currency	1		0		0		0		0		(7)		0
Total gains (losses) on hedged item	(19)		4		0		0		207		173		0
Amortization for gains (losses) excluded from assessment of the effectiveness

Currency	0		0		0		0		0		(2)		2
Total Amortization for Gain (Loss) Excluded from Assessment of the Effectiveness	0		0		0		0		0		(2)		2
Total gains (losses) on fair value hedges net of hedged item	0		2		0		0		15		8		2
Cash flow hedges
Interest Rate	5		0		0		0		0		0		(47)
Currency	(1)		0		0		0		0		0		(17)
Currency/Interest Rate	25		71		53		0		0		0		73
Total gains (losses) on cash flow hedges	29		71		53		0		0		0		9
Net investment hedges
Currency	0		0		8		0		0		0		0
Currency/Interest Rate	0		0		0		0		0		0		0
Total gains (losses) on net investment hedges	0		0		8		0		0		0		0
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(5,925)		0		0		0		0		0		0
Currency	(278)		0		8		0		0		0		0
Currency/Interest Rate	282		0		0		0		0		0		0
Credit	4		0		0		0		0		0		0
Equity	(989)		0		0		0		0		0		0
Other	1		0		0		0		0		0		0
Embedded Derivatives	7,651		0		0		0		0		0		0
Total gains (losses) on derivatives not qualifying as hedge accounting instruments	746		0		8		0		0		0		0
Total	$	775	$	73	$	69	$	0	$	15	$	8	$	11


	Three Months Ended March 31, 2020
	Realized Investment Gains (Losses)		Net Investment Income		Other Income (Loss)		Interest Expense		Interest Credited to Policyholders’ Account Balances		Policyholders’ Benefits		AOCI(1)
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Fair value hedges
Gains (losses) on derivatives designated as hedge instruments:
Interest Rate	$	(30)	$	(2)	$	0	$	0	$	324	$	280	$	0
Currency	2		0		0		0		0		0		0
Total gains (losses) on derivatives designated as hedge instruments	(28)		(2)		0		0		324		280		0
Gains (losses) on the hedged item:
Interest Rate	30		5		0		0		(322)		(278)		0
Currency	(1)		0		0		0		0		0		0
Total gains (losses) on hedged item	29		5		0		0		(322)		(278)		0
Total gains (losses) on fair value hedges net of hedged item	1		3		0		0		2		2		0
Cash flow hedges
Interest Rate	(1)		0		0		0		0		0		52
Currency	1		0		0		0		0		0		102
Currency/Interest Rate	18		79		291		0		0		0		2,200
Total gains (losses) on cash flow hedges	18		79		291		0		0		0		2,354
Net investment hedges
Currency	0		0		0		0		0		0		13
Currency/Interest Rate	0		0		0		0		0		0		0
Total gains (losses) on net investment hedges	0		0		0		0		0		0		13
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	9,224		0		0		0		0		0		0
Currency	333		0		(7)		0		0		0		0
Currency/Interest Rate	816		0		2		0		0		0		0
Credit	(41)		0		0		0		0		0		0
Equity	5,436		0		0		0		0		0		0
Other	0		0		0		0		0		0		0
Embedded Derivatives	(14,295)		0		0		0		0		0		0
Total gains (losses) on derivatives not qualifying as hedge accounting instruments	1,473		0		(5)		0		0		0		0
Total	$	1,492	$	82	$	286	$	0	$	2	$	2	$	2,367


	(in millions)
Balance, December 31, 2020	$	(168)
Amount recorded in AOCI
Interest Rate	(42)
Currency	(18)
Currency/Interest Rate	221
Total amount recorded in AOCI	161
Amount reclassified from AOCI to income
Interest Rate	(5)
Currency	1
Currency/Interest Rate	(148)
Total amount reclassified from AOCI to income	(152)
Balance, March 31, 2021	$	(159)

The changes in fair value of cash flow hedges are deferred in AOCI and are included in “Net unrealized investment gains (losses)” in the Unaudited Interim Consolidated Statements of Comprehensive Income; these amounts are then reclassified to earnings when the hedged item affects earnings. Using March 31, 2021 values, it is estimated that a pre-tax gain of approximately $206 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending March 31, 2022.

The exposures the Company is hedging with these qualifying cash flow hedges include the variability of future cash flows from forecasted transactions denominated in foreign currencies, the purchases of invested assets, and the receipt or payment of variable interest on existing financial instruments. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is 10 years.

There were no material amounts reclassified from AOCI 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. In addition, there were no instances in which the Company discontinued fair value hedge accounting due to a hedged firm commitment no longer qualifying as a fair value hedge.

For net investment hedges, in addition to derivatives, the Company uses foreign currency denominated debt to hedge the risk of change in the net investment in a foreign subsidiary due to changes in exchange rates. For effective net investment hedges, the amounts, before applicable taxes, recorded in the cumulative translation adjustment within AOCI were $11 million for the three months ended March 31, 2021 and $13 million for the three months ended March 31, 2020.

The following table provides a summary of the notional and fair value of written credit protection. The Company’s maximum amount at risk under these credit derivatives, assuming the value of the underlying referenced securities become worthless, is equal to the notional amounts. These credit derivatives have maturities of less than 26 years for Index Reference.


	March 31, 2021
	NAIC Rating Designation of Underlying Credit Obligation(1)
	NAIC 1				NAIC 2				NAIC 3				NAIC 4				NAIC 5				NAIC 6				Total
	Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value
	(in millions)
Single name reference(2)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Index reference(2)	50		1		0		0		2,154		40		0		0		0		0		100		9		2,304		50
Total	$	50	$	1	$	0	$	0	$	2,154	$	40	$	0	$	0	$	0	$	0	$	100	$	9	$	2,304	$	50


	December 31, 2020
	NAIC Rating Designation of Underlying Credit Obligation(1)
	NAIC 1				NAIC 2				NAIC 3				NAIC 4				NAIC 5				NAIC 6				Total
	Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value
	(in millions)
Single name reference(2)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Index reference(2)	50		0		0		0		3,003		63		0		0		0		0		0		0		3,053		63
Total	$	50	$	0	$	0	$	0	$	3,003	$	63	$	0	$	0	$	0	$	0	$	0	$	0	$	3,053	$	63

In addition to writing credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. As of March 31, 2021 and December 31, 2020, the Company had $1 million and $307 million of outstanding notional amounts and reported at fair value as a liability of $0 million and $28 million, respectively.

The Company is exposed to losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreements, as applicable; (ii) trading through central clearing and over-the-counter (“OTC”) parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. In addition, certain of the Company’s derivative agreements contain credit-risk related contingent features; if the credit rating of one of the parties to the derivative agreement is to fall below a certain level, the party with positive fair value could request termination at the then fair value or demand immediate full collateralization from the party whose credit rating fell and is in a net liability position.