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DERIVATIVES (Tables)
 9 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments by Category The following table presents the gross notional amount and estimated fair value of the Company’s derivatives:
Derivative Instruments by Category
September 30, 2022December 31, 2021
  Fair ValueFair Value
  Notional Amount Derivative Assets Derivative LiabilitiesNotional AmountDerivative AssetsDerivative Liabilities
(in millions)
Derivatives: designated for hedge accounting (1)
 Cash flow hedges:
 Currency swaps $1,267 $178 $118 $921 $7 $42 
 Interest swaps955 1 252 955 — 395 
 Total: designated for hedge accounting 2,222 179 370 1,876 7 437 
Derivatives: not designated for hedge accounting (1)
Equity contracts:
Futures 4,022 8 — 2,640 — 1 
Swaps 9,814 28 13 13,378 6 4 
Options36,788 6,209 3,899 48,489 12,024 5,065 
Interest rate contracts:
Futures5,612 — — 12,575 — — 
Swaps1,134 — 134 1,889 — 46 
Swaptions— — — — — — 
Credit contracts:
Credit default swaps315 20 8 774 9 10 
Currency contracts
Currency swaps326 24 — 541 1 — 
Currency forwards60 20 20 79 8 7 
Other freestanding contracts:
Margin— 116 — — 125 — 
Collateral— 140 3,323 — 178 6,160 
Total: not designated for hedge accounting58,071 6,565 7,397 80,365 12,351 11,293 
Embedded derivatives:
Amounts due from reinsurers (5)— 4,312 — — 5,813 — 
GMIB reinsurance contracts (2)— 1,289 — — 1,848 — 
GMxB derivative features liability (3)— — 5,825 — — 8,525 
SCS, SIO, MSO and IUL indexed features (4)— — 2,086 — — 6,773 
Total embedded derivatives— 5,601 7,911 — 7,661 15,298 
Total derivative instruments$60,293 $12,345 $15,678 $82,241 $20,019 $27,028 
___________
(1)Reported in other invested assets in the consolidated balance sheets.
(2)Reported in GMIB reinsurance contract asset in the consolidated balance sheets.
(3)Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets.
(4)Reported in policyholders’ account balances in the consolidated balance sheets.
(5)Represents GMIB NLG ceded related to the Venerable Transaction.
The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss).

Derivative Instruments by Category
Three Months Ended September 30, 2022Nine Months Ended September 30, 2022
(in millions)
Net Derivatives Gain(Losses) (1)Net Investment IncomeInterest Credited To Policyholders Account BalancesAOCINet Derivatives Gain(Losses) (1)Net Investment IncomeInterest Credited To Policyholders Account BalancesAOCI
Derivatives: designated for hedge accounting
Cash flow hedges:
Currency swaps$7 $5 $(36)$111 $21 $7 $(46)$116 
Interest swaps(38)— — 94 (79)— — 242 
Total: designated for hedge accounting(31)5 (36)205 (58)7 (46)358 
Derivatives: not Designated for hedge accounting
Equity contracts
Futures31 — — — 486 — — — 
Swaps596 — — — 3,374 — — — 
Options(649)— — — (4,379)— — — 
Interest rate contracts
Futures(428)— — — (1,486)— — — 
Swaps(125)— — — (428)— — — 
Swaptions— — — — — — — — 
Credit contracts
Credit default swaps(1)— — — 13 — — — 
Currency contracts
Currency swaps23 — — — 41 — — — 
Currency forwards2 — — — 5 — — — 
Other freestanding contracts
Margin— — — — — — — — 
Collateral— — — — — — — — 
Total: not designated for hedge accounting(551)— — — (2,374)— — — 
Embedded derivatives
Amounts due from reinsurers(364)— — — (1,506)— — — 
GMIB reinsurance contracts(196)— — — (535)— — — 
GMxB derivative features liability (2)429 — — — 2,943 — — — 
SCS, SIO,MSO and IUL indexed features781 — — — 4,648 — — — 
Total embedded derivatives$650 $— $— $— $5,550 $— $— $— 
Total derivative instruments$68 $5 $(36)$205 $3,118 $7 $(46)$358 
Three Months Ended September 30, 2021Nine Months Ended September 30, 2021
(in millions)
Net Derivatives Gain(Losses) (1)Net Investment IncomeInterest Credited To Policyholders Account BalancesAOCINet Derivatives Gain(Losses) (1)Net Investment IncomeInterest Credited To Policyholders Account BalancesAOCI
Derivatives: designated for hedge accounting
Cash flow hedges:
Currency/interest rate
Currency swaps$— $— $(15)$8 $— $— $(32)$8 
Interest swaps$(26)$— $(9)$(54)$— $— $(42)
Total: designated for hedge accounting(26)— (15)(1)(54)— (32)(34)
Derivatives: not designated for hedge accounting
Equity contracts
Futures(2)— — — (451)— — — 
Swaps(3)— — — (2,613)— — — 
Options(169)— — — 2,177 — — — 
Interest rate contracts
Futures(93)— — — (891)— — — 
Swaps67 — — — (2,375)— — — 
Swaptions— — — — — — — — 
Credit contracts
Credit default swaps— — — — — — — — 
Currency contracts
Currency swaps3 — — — 3 — — — 
Currency forwards1 — — — 2 — — — 
Other freestanding contracts
Margin— — — — — — — — 
Collateral— — — — — — — — 
Total: not designated for hedge accounting(196)— — — (4,148)— — — 
Embedded derivatives
Amounts due from reinsurers344 — — — 586 — — — 
GMIB reinsurance contracts(84)— — — (542)— — — 
GMxB derivative features liability (2)(395)— — — 2,340 — — — 
SCS, SIO,MSO and IUL indexed features172 — — — (2,157)— — — 
Total embedded derivatives$37 $— $— $— $227 $— $— $— 
Total derivative instruments$(185)$— $(15)$(1)$(3,975)$— $(32)$(34)
______________
(1)Reported in net derivative gains (losses) in the consolidated statements of income (loss).
(2)Excludes settlement fees of $45 million on CS Life reinsurance contract for the nine months ended September 30, 2021.
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table presents a roll-forward of cash flow hedges recognized in AOCI.
Roll-forward of Cash flow hedges in AOCI

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in millions)
Balance, beginning of period $(55)$(158)$(208)$(126)
Amount recorded in AOCI
Currency swaps77 7 77 7 
Interest swaps51 (40)149 (118)
Total amount recorded in AOCI128 (33)226 (111)
Amount reclassified from AOCI to income
Currency swaps34 — 39 — 
Interest swaps43 31 93 77 
Total amount reclassified from AOCI to income77 31 132 77 
Balance, end of period (1)$150 $(160)$150 $(160)
_______________
(1) The Company does not estimate the amount of the deferred losses in AOCI at three and nine months ended September 30, 2022 and 2021 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated.
Offsetting Financial Assets and Liabilities and Derivative Instruments
The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of September 30, 2022 and December 31, 2021:

Offsetting of Financial Assets and Liabilities and Derivative Instruments
As of September 30, 2022

Gross Amount RecognizedGross Amount Offset in the Balance SheetsNet Amount Presented in the Balance SheetsGross Amount not Offset in the Balance Sheets (3)Net Amount
(in millions)
Assets:
Derivative assets (1)$6,745 $6,012 $733 $(596)$137 
Other financial assets2,116 — 2,116 — 2,116 
Other invested assets$8,861 $6,012 $2,849 $(596)$2,253 
Liabilities:
Derivative liabilities (2)$7,172 $6,012 $1,160 $— $1,160 
Other financial liabilities4,838 — 4,838 — 4,838 
Other liabilities$12,010 $6,012 $5,998 $— $5,998 
______________
(1)Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs.
(2)Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs.
(3)Financial instruments/Collateral sent (held).


As of December 31, 2021

Gross Amount RecognizedGross Amount Offset in the Balance SheetsNet Amount Presented in the Balance SheetsGross Amount not Offset in the Balance Sheets (3)Net Amount
(in millions)
Assets:
Derivative assets (1)$12,358 $10,756 $1,602 $(961)$641 
Other financial assets1,989 — 1,989 — 1,989 
Other invested assets$14,347 $10,756 $3,591 $(961)$2,630 
Liabilities:
Derivative liabilities (2)$10,770 $10,756 $14 $— $14 
Other financial liabilities3,919 — 3,919 — 3,919 
Other liabilities$14,689 $10,756 $3,933 $— $3,933 
______________
(1)Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs.
(2)Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs.
(3)Financial instruments sent (held).