XML 74 R42.htm IDEA: XBRL DOCUMENT v3.22.4
DERIVATIVES (Tables)
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of 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
December 31, 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 $1,431 $99 $85 $921 $7 $42 
 Interest swaps955 — 294 955 — 395 
 Total: designated for hedge accounting 2,386 99 379 1,876 7 437 
Derivatives: not designated for hedge accounting (1)
Equity contracts:
Futures 5,151 2 — 2,640 — 1 
Swaps 11,188 39 9 13,378 6 4 
Options40,122 7,583 3,412 48,489 12,024 5,065 
Interest rate contracts:
Futures12,693 — — 12,575 — — 
Swaps1,515 — 166 1,889 — 46 
Credit contracts:
Credit default swaps327 18 9 774 9 10 
Currency contracts
Currency swaps397 4 13 541 1 — 
Currency forwards62 31 32 79 8 7 
Other freestanding contracts:
Margin— 226 — — 125 — 
Collateral— 142 4,472 — 178 6,160 
Total: not designated for hedge accounting71,455 8,045 8,113 80,365 12,351 11,293 
Embedded derivatives:
Amounts due from reinsurers (5)— 4,114 — — 5,813 — 
GMIB reinsurance contracts (2)— 1,229 — — 1,848 — 
GMxB derivative features liability (3)— — 5,764 — — 8,525 
SCS, SIO, MSO and IUL indexed features (4)— — 4,164 — — 6,773 
Total embedded derivatives— 5,343 9,928 — 7,661 15,298 
Total derivative instruments$73,841 $13,487 $18,420 $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
Year Ended December 31, 2022Year Ended December 31, 2021Year Ended December 31, 2020
Net Derivatives Gain(Losses) (1)
NII (2)
Interest Credited To Policyholder Account BalancesAOCINet Derivatives Gain(Losses) (1)Interest Credited To Policyholder Account BalancesAOCINet Derivatives Gain(Losses) (1)Interest Credited To Policyholder Account BalancesAOCI
(in millions)
Derivatives: Designated for Hedge accounting
Cash Flow Hedges:
Currency Swaps$19 $7 $(4)$24 $(2)$(45)$5 $— $— $— 
Interest Swaps(86)— — 206 (69)— (87)(9)— (87)
Total: Designated for Hedge accounting(67)7 (4)230 (71)(45)(82)(9)— (87)
Derivatives: Not Designated for Hedge accounting
Equity contracts
Futures285 — — — (567)— — (1,011)— — 
Swaps2,644 — — — (3,614)— — (3,368)— — 
Options(2,750)— — — 3,886 — — 1,663 — — 
Interest Rate contracts
Futures(1,688)— — — (728)— — 1,740 — — 
Swaps(492)— — — (2,317)— — 2,832 — — 
Swaptions— — — — — — — 9 — — 
Credit contracts
Credit Default Swaps7 — — — (2)— — — — — 
Currency contracts
Currency Swaps10 — — — 3 — — (4)— — 
Currency forwards3 — — — 2 — — — — — 
Total: Not Designated for Hedge accounting(1,981)— — — (3,337)— — 1,861 — — 
Embedded Derivatives
Amounts due from reinsurers(1,706)— — — 517 — — — — — 
GMIB reinsurance contracts(581)— — — (625)— — 417 — — 
GMxB derivative features liability (3)
3,076 — — — 2,841 — — (2,253)— — 
Year Ended December 31, 2022Year Ended December 31, 2021Year Ended December 31, 2020
Net Derivatives Gain(Losses) (1)
NII (2)
Interest Credited To Policyholder Account BalancesAOCINet Derivatives Gain(Losses) (1)Interest Credited To Policyholder Account BalancesAOCINet Derivatives Gain(Losses) (1)Interest Credited To Policyholder Account BalancesAOCI
(in millions)
SCS, SIO,MSO and IUL indexed features2,955 — — — (3,835)— — (1,738)— — 
Total Embedded Derivatives3,744 — — — (1,102)— — (3,574)— — 
Total derivatives instruments$1,696 $7 $(4)$230 $(4,510)$(45)$(82)$(1,722)$— $(87)
_____________


(1)Reported in net derivative gains (losses) in the consolidated statements of income (loss).
(2)Net Investment Income (“NII”).
(3)Excludes settlement fees of $45 million on CS Life reinsurance contract for the year ended December 31, 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
Year Ended December 31,
202220212020
(in millions)
Balance, beginning of period $(208)$(126)$(38)
Amount recorded in AOCI
Currency swaps29 (35)— 
Interest swaps102 (183)(108)
Total amount recorded in AOCI131 (218)(108)
Amount reclassified from AOCI to income
Currency swaps (1)(5)40 — 
Interest swaps (1)104 96 20 
Total amount reclassified from AOCI to income99 136 20 
Balance, end of period (2)$22 $(208)$(126)
_______________
(1)    Currency swaps reclassified from AOCI to income are reported in net investment income in the consolidated statements of income (loss). Interest swaps reclassified from AOCI to income are reported in net derivative gains (losses) in the consolidated statements of income (loss).
(2) The Company does not estimate the amount of the deferred losses in AOCI at years ended December 31, 2022, 2021 and 2020 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated.
Schedule of 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 December 31, 2022 and 2021:
Offsetting of Financial Assets and Liabilities and Derivative Instruments
As of December 31, 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)$8,143 $7,047 $1,096 $(848)$248 
Other financial assets2,789 — 2,789 — 2,789 
Other invested assets$10,932 $7,047 $3,885 $(848)$3,037 
Liabilities:
Derivative liabilities (2)$7,645 $7,047 $598 $— $598 
Other financial liabilities5,275 — 5,275 — 5,275 
Other liabilities$12,920 $7,047 $5,873 $— $5,873 
______________
(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).