XML 69 R52.htm IDEA: XBRL DOCUMENT v3.24.0.1
Derivative Instruments (Tables)
12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] The following table presents the notional amounts and gross fair value of derivative instruments prior to taking into account the netting effects of master netting agreements as of December 31, 2023 and 2022 (dollars in millions):
 December 31, 2023December 31, 2022
 Primary Underlying RiskNotionalCarrying Value/Fair ValueNotionalCarrying Value/Fair Value
 AmountAssetsLiabilitiesAmountAssetsLiabilities
Derivatives not designated as hedging instruments:
Interest rate swapsInterest rate$1,609 $$$1,271 $$
Interest rate optionsInterest rate5,555 — 7,756 34 — 
Total return swapsInterest rate500 24 — 500 18 — 
Interest rate futuresInterest rate97 — — 96 — — 
Foreign currency swapsForeign currency150 27 — 150 18 — 
Foreign currency forwardsForeign currency809 36 — 766 50 — 
Equity optionsEquity253 — 358 38 — 
Equity futuresEquity255 — — 164 — — 
Credit default swapsCredit1,475 1,523 21 
CPI swapsCPI468 11 496 20 
Synthetic GICsInterest rate16,135 — — 17,411 — — 
Embedded derivatives in:
Modco or funds withheld arrangements— 356 527 — 363 371 
Indexed annuity products— — 415 — — 530 
Total non-designated derivatives27,306 478 949 30,491 545 927 
Derivatives designated as hedging instruments:
Interest rate swapsInterest rate1,770 86 737 83 
Forward bond purchase commitmentsInterest rate1,076 11 80 407 — 96 
Foreign currency swapsForeign currency809 64 687 — 30 
Foreign currency forwardsForeign currency1,143 17 1,019 38 
Total hedging derivatives4,798 32 247 2,850 41 210 
Total derivatives$32,104 $510 $1,196 $33,341 $586 $1,137 
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] The gain or loss on the hedged item attributable to a change in interest rates or foreign currency and the offsetting gain or loss on the related interest rate or foreign currency swaps for the years ended December 31, 2023, 2022 and 2021 were as follows (dollars in millions):
Derivative TypeHedged ItemInvestment Related
Gains (Losses), Net
Interest Credited
DerivativesHedged ItemsDerivativesHedged Items
For the Year Ended December 31, 2023:
Foreign currency swapsForeign-denominated fixed maturity securities$(2)$(2)$— $— 
Interest rate swapsInterest-sensitive contract liabilities— — — — 
For the Year Ended December 31, 2022:
Foreign currency swapsForeign-denominated fixed maturity securities(1)— — 
For the Year Ended December 31, 2021:
Foreign currency swapsForeign-denominated fixed maturity securities(4)— — 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]
The following table presents the components of AOCI, before income tax, and the consolidated income statement classification where the gain or loss is recognized related to cash flow hedges for the years ended December 31, 2023, 2022 and 2021 (dollars in millions):
Amounts Included in AOCI
Balance December 31, 2020$(49)
Gains (losses), net deferred in other comprehensive income (loss)20 
Amounts reclassified to net investment income— 
Amounts reclassified to interest expense
Balance December 31, 2021(22)
Gains (losses), net deferred in other comprehensive income (loss)(192)
Amounts reclassified to net investment income
Amounts reclassified to interest expense
Balance December 31, 2022(205)
Gains (losses), net deferred in other comprehensive income (loss)(26)
Amounts reclassified to net investment income23 
Amounts reclassified to interest expense(10)
Balance December 31, 2023$(218)
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]
The following table presents the effect of derivatives in cash flow hedging relationships on the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021 (dollars in millions):
Derivative TypeGains (Losses) Deferred in OCIGains (Losses) Reclassified into Income from AOCI
For the year ended December 31, 2023:Net Investment IncomeInterest Expense
Interest rate$18 $(7)$10 
Foreign currency(44)(16)— 
Total$(26)$(23)$10 
For the year ended December 31, 2022:
Interest rate$(187)$— $(1)
Foreign currency(5)(8)— 
Total$(192)$(8)$(1)
For the year ended December 31, 2021:
Interest rate$28 $— $(7)
Foreign currency(8)— — 
Total$20 $— $(7)
Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location [Table Text Block] The following table illustrates the Company’s net investments in foreign operations (“NIFO”) hedges and the gains (losses) deferred in OCI for the years ended December 31, 2023, 2022 and 2021 (dollars in millions):
 Derivative Gains (Losses) Deferred in OCI
 For the years ended December 31,
Derivative Type202320222021
Foreign currency swaps$— $— $(2)
Foreign currency forwards(18)73 — 
Total$(18)$73 $(2)
Derivative Instruments Gain Loss By Income Statement Location [Table Text Block]
A summary of the effect of non-qualifying derivatives, including embedded derivatives, on the Company’s consolidated statements of income for the years ended December 31, 2023, 2022 and 2021 is as follows (dollars in millions):
  
 Gains (Losses) for the years ended December 31,
Type of Non-qualifying DerivativeIncome Statement
Location of Gains (Losses)
202320222021
Interest rate swapsInvestment related gains (losses), net$(15)$(131)$(34)
Interest rate optionsInvestment related gains (losses), net(33)— 
Total return swapsInvestment related gains (losses), net14 21 — 
Interest rate futuresInvestment related gains (losses), net
Foreign currency swapsInvestment related gains (losses), net17 21 20 
Foreign currency forwardsInvestment related gains (losses), net(98)(93)(20)
Equity optionsInvestment related gains (losses), net(28)14 (33)
Equity futuresInvestment related gains (losses), net(31)22 (25)
Credit default swapsInvestment related gains (losses), net42 (66)33 
CPI swapsInvestment related gains (losses), net31 46 
Subtotal(125)(172)(12)
Embedded derivatives in:
Modco or funds withheld arrangementsInvestment related gains (losses), net(163)(173)107 
Indexed annuity productsInterest credited17 98 10 
Total non-qualifying derivatives$(271)$(247)$105 
Disclosure Of Credit Derivatives [Table Text Block]
The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of credit default swaps sold by the Company as of December 31, 2023 and 2022 (dollars in millions):
 20232022
Rating Agency Designation of Referenced Credit Obligations (1)
Estimated Fair
Value of Credit
Default Swaps
Maximum
Amount of Future
Payments under
Credit Default
Swaps (2)
Weighted
Average
Years to
Maturity (3)
Estimated Fair
Value of Credit
Default Swaps
Maximum
Amount of Future
Payments under
Credit Default
Swaps
(2)
Weighted
Average
Years to
Maturity
(3)
AAA/AA/A
Single name credit default swaps$$420 18.1$(18)$428 18.7
BBB
Single name credit default swaps165 2.8155 3.3
Credit default swaps referencing indices(1)880 5.0— 915 6.2
Subtotal1,045 4.71,070 5.8
BB
Single name credit default swaps(1)10 2.2(2)25 3.2
Total$$1,475 8.5$(19)$1,523 9.4
(1)The rating agency designations are based on ratings from Standard and Poor’s (“S&P”).
(2)Assumes the value of the referenced credit obligations is zero.
(3)The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.
Offsetting Assets [Table Text Block]
The following table provides information relating to the netting of the Company’s derivative instruments as of December 31, 2023 and December 31, 2022 (dollars in millions):
Gross Amounts   RecognizedGross Amounts
Offset in the
Balance Sheet
Net Amounts
Presented in the
Balance Sheet
Financial Instruments/Collateral (1)
Net Amount
December 31, 2023:
Derivative assets$154 $(57)$97 $(97)$— 
Derivative liabilities254 (57)197 (197)— 
December 31, 2022:
Derivative assets$223 $(53)$170 $(170)$— 
Derivative liabilities236 (53)183 (183)— 
(1)Includes initial margin posted to a central clearing partner for financial instruments and excludes the excess of collateral received/pledged from/to the counterparty.
Offsetting Liabilities [Table Text Block]
The following table provides information relating to the netting of the Company’s derivative instruments as of December 31, 2023 and December 31, 2022 (dollars in millions):
Gross Amounts   RecognizedGross Amounts
Offset in the
Balance Sheet
Net Amounts
Presented in the
Balance Sheet
Financial Instruments/Collateral (1)
Net Amount
December 31, 2023:
Derivative assets$154 $(57)$97 $(97)$— 
Derivative liabilities254 (57)197 (197)— 
December 31, 2022:
Derivative assets$223 $(53)$170 $(170)$— 
Derivative liabilities236 (53)183 (183)— 
(1)Includes initial margin posted to a central clearing partner for financial instruments and excludes the excess of collateral received/pledged from/to the counterparty.