The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by applicable states’ insurance law. Derivatives are generally not accounted for using hedge accounting, with the exception of TIPS and cash flow hedges, which are discussed further below. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, bond and bond-index total return swaps, swaptions, variance swaps and equity options, credit and foreign exchange derivatives, as well as bond and repo transactions to support the hedging. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. In addition, as part of its hedging strategy, the Company targets an asset level for all variable annuity products at or above a CTE98 level under most economic scenarios (CTE is a statistical measure of tail risk which quantifies the total asset requirement (“TAR”) to sustain a loss if an event outside a given probability level has occurred. CTE98 denotes the financial resources a company would need to cover the average of the worst 2% of scenarios.)

The Company has issued and continues to offer variable annuity products with GMxB features which are accounted for as MRBs. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with products that have a GMxB feature and are accounted for as MRBs is that under-performance of the financial markets could result in the GMxB features benefits being higher than what accumulated policyholders’ account balances would support.

For GMxB features, the Company retains certain risks including basis, credit spread, and some volatility risk and risk associated with actual experience compared to expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB features that result from financial markets movements. A portion of exposure to realized equity volatility is hedged using equity options and variance swaps and a portion of exposure to credit risk is hedged using total return swaps on fixed income indices. Additionally, the Company is party to total return swaps for which the reference U.S. Treasury securities are contemporaneously purchased from the market and sold to the swap counterparty. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. The Company has also purchased reinsurance contracts to mitigate the risks associated with GMDB features and the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts issued by the Company. The reinsurance of these features is accounted for as purchased MRBs. In addition, on June 1, 2021, we ceded legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees to CS Life. As this contract provides full risk transfer and thus has the same risk attributes as the underlying direct contracts, the benefits of this treaty are accounted for in the same manner as the underlying gross reserves and therefore the amounts due from reinsurers related to excess benefits are accounted for as purchased MRBs.

The Company hedges crediting rates in the SCS variable annuity, SIO in the EQUI-VEST variable annuity series, MSO in the variable life insurance products and IUL insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment.

The Company purchased 30-year TIPS and other sovereign bonds, both inflation linked and non-inflation linked, as General Account investments and enters into asset or cross-currency basis swaps, to result in payment of the given bond’s coupons and principal at maturity in the bond’s specified currency to the swap counterparty in return for fixed dollar amounts. These swaps, when considered in combination with the bonds, together result in a net position that is intended to replicate a dollar-denominated fixed-coupon cash bond with a yield higher than a term-equivalent U.S. Treasury bond.

The Company purchases private placement debt securities and issues funding agreements in the FABN program in currencies other than its functional U.S. dollar currency. The Company enters into cross currency swaps with external counterparties to hedge the exposure of the foreign currency denominated cash flows of these instruments. The foreign currency received from or paid to the cross currency swap counterparty is exchanged for fixed U.S. dollar amounts with improved net investment yields or net product costs over equivalent U.S. dollar denominated instruments issued at that time. The transactions are accounted for as cash flow hedges when they are designated in hedging relationships and qualify for hedge accounting.

These cross currency swaps are for the period the foreign currency denominated private placement debt securities and funding agreement are outstanding, with the longest cross currency swap expiring in 2033. Since these cross currency swaps are designated and qualify as cash flow hedges, the corresponding interest accruals are recognized in Net investment income and in interest credited to policyholders’ account balances.


	March 31, 2025								December 31, 2024
			Fair Value								Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Net Derivatives		Notional Amount		Derivative Assets		Derivative Liabilities		Net Derivatives
	(in millions)
Derivatives: designated for hedge accounting (1)
Cash flow hedges:
Currency swaps	$	3,081	$	115	$	89	$	26	$	2,940	$	111	$	95	$	16
Interest swaps	952		—		339		(339)		952		—		306		(306)
Total: designated for hedge accounting	4,033		115		428		(313)		3,892		111		401		(290)
Derivatives: not designated for hedge accounting (1)
Equity contracts:
Futures	17,730		1		—		1		14,530		3		—		3
Swaps	15,638		69		20		49		16,264		65		19		46
Options	67,942		17,444		3,819		13,625		70,685		20,647		4,319		16,328
Interest rate contracts:
Futures	10,701		—		—		—		9,310		—		—		—
Swaps	629		8		3		5		672		—		41		(41)
Options	50		6		—		6		—		—		—		—
Credit contracts:
Credit default swaps	317		1		6		(5)		275		12		10		2
Currency contracts:
Currency swaps	900		2		26		(24)		828		26		—		26
Currency forwards	76		15		15		—		28		17		17		—
Other freestanding contracts:
Margin	—		1,007		—		1,007		—		796		—		796
Collateral	—		122		14,073		(13,951)		—		137		16,908		(16,771)
Total: not designated for hedge accounting	113,983		18,675		17,962		713		112,592		21,703		21,314		389

Embedded derivatives:
SCS, SIO, MSO and IUL indexed features (2)	—		—		13,962		(13,962)		—		—		17,212		(17,212)
Total embedded derivatives	—		—		13,962		(13,962)		—		—		17,212		(17,212)

Total derivative instruments	$	118,016	$	18,790	$	32,352	$	(13,562)	$	116,484	$	21,814	$	38,927	$	(17,113)


	Three Months Ended March 31, 2025								Three Months Ended March 31, 2024
	Net Derivatives Gain (Losses) (1)		Net Investment Income		Interest Credited To Policyholders Account Balances		AOCI		Net Derivatives Gain (Losses) (1)		Net Investment Income		Interest Credited To Policyholders Account Balances		AOCI
	(in millions)
Derivatives: designated for hedge accounting
Cash flow hedges:
Currency swaps	$	—	$	6	$	33	$	(37)	$	—	$	3	$	(18)	$	16
Interest swaps	—		(3)		—		(21)		—		3		—		(7)
Total: designated for hedge accounting	—		3		33		(58)		—		6		(18)		9
Derivatives: not Designated for hedge accounting
Equity contracts:
Futures	(200)		—		—		—		241		—		—		—
Swaps	705		—		—		—		(1,115)		—		—		—
Options	(2,645)		—		—		—		2,795		—		—		—
Interest rate contracts:
Futures	(23)		—		—		—		(9)		—		—		—
Swaps	15		—		—		—		(164)		—		—		—
Options	(1)		—		—		—		—		—		—		—
Credit contracts:
Credit default swaps	—		—		—		—		(1)		—		—		—
Currency contracts:
Currency swaps	(30)		—		—		—		12		—		—		—
Currency forwards	—		—		—		—		1		—		—		—
Other freestanding contracts:
Margin	—		—		—		—		—		—		—		—
Collateral	—		—		—		—		—		—		—		—
Total: not designated for hedge accounting	(2,179)		—		—		—		1,760		—		—		—

Embedded derivatives:
SCS, SIO,MSO and IUL indexed features	2,978		—		—		—		(3,136)		—		—		—
Total embedded derivatives	2,978		—		—		—		(3,136)		—		—		—

Total derivative instruments	$	799	$	3	$	33	$	(58)	$	(1,376)	$	6	$	(18)	$	9


	Three Months Ended March 31,
	2025		2024
	(in millions)
Balance, beginning of period	$	80	$	(29)
Amount recorded in AOCI
Currency swaps	10		—
Interest swaps	(29)		(8)
Total amount recorded in AOCI	(19)		(8)
Amount reclassified from (to) income to AOCI
Currency swaps (1)	(47)		16
Interest swaps (1)	8		1
Total amount reclassified from (to) income to AOCI	(39)		17
Balance, end of period (2)	$	22	$	(20)

All outstanding equity-based and treasury futures contracts as of March 31, 2025 and December 31, 2024 are exchange-traded and net settled daily in cash. As of March 31, 2025 and December 31, 2024, respectively, the Company had open exchange-traded futures positions on: (i) the S&P 500, Nasdaq, Russell 2000 and Emerging Market indices, having initial margin requirements of $896 million and $704 million, (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $124 million and $99 million, and (iii) the Euro Stoxx, FTSE 100, Topix, ASX 200 and EAFE indices as well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S. dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial margin requirements of $12 million and $11 million.

The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its OTC derivative counterparties that requires both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities, U.S. government and government agency securities and investment grade corporate bonds. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. As of March 31, 2025 and December 31, 2024, respectively, the Company held $14.1 billion and $16.9 billion in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. The unrestricted cash collateral is reported in other invested assets. The Company posted collateral of $122 million and $137 million as of March 31, 2025 and December 31, 2024, respectively, in the normal operation of its collateral arrangements. 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 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.


	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (3)		Net Amount
	(in millions)
Assets:
Derivative assets (1)	$	18,789	$	11,621	$	7,168	$	(6,117)	$	1,051
Secured lending	146		—		146		(852)		(706)
Other financial assets	1,657		—		1,657		—		1,657
Other invested assets	$	20,592	$	11,621	$	8,971	$	(6,969)	$	2,002

Liabilities:
Derivative liabilities (2)	$	12,275	$	11,621	$	654	$	—	$	654
Secured lending	146		—		146		—		146
Other financial liabilities	5,900		—		5,900		—		5,900
Other liabilities	$	18,321	$	11,621	$	6,700	$	—	$	6,700


	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (3)		Net Amount
	(in millions)
Assets:
Derivative assets (1)	$	21,814	$	14,924	$	6,890	$	(6,080)	$	810
Secured Lending	137		—		137		—		137
Other financial assets	1,510		—		1,510		—		1,510
Other invested assets	$	23,461	$	14,924	$	8,537	$	(6,080)	$	2,457

Liabilities:
Derivative liabilities (2)	$	15,634	$	14,924	$	710	$	—	$	710
Secured Lending	137		—		137		—		137
Other financial liabilities	6,185		—		6,185		—		6,185
Other liabilities	$	21,956	$	14,924	$	7,032	$	—	$	7,032