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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Derivative Instruments In Statement Of Financial Position Fair Value

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 June 30, 2025 and December 31, 2024 (dollars in millions):

												June 30, 2025																		December 31, 2024
						Primary Underlying Risk						Notional						Carrying Value / Fair Value												Notional						Carrying Value / Fair Value
												Amount						Assets						Liabilities						Amount						Assets						Liabilities
Derivatives not designated as hedging instruments:
Interest rate swaps						Interest rate						$	1,907					$	8					$	13					$	1,848					$	6					$	20
Interest rate options						Interest rate						500						1						—						1,773						1						—
Total return swaps						Interest rate						735						2						14						956						—						14
Foreign currency swaps						Foreign currency						150						39						—						150						47						—
Foreign currency forwards						Foreign currency						1,261						23						3						1,148						9						37
Foreign currency options						Foreign currency						430						2						—						430						1						—
Equity options						Equity						956						48						18						255						5						1
Equity futures						Equity						224						—						—						209						—						—
Credit default swaps						Credit						5,288						5						30						2,661						4						6
Credit default index swaps options						Credit						100						—						—						—						—						—
Other swaps						Credit						1,843						2						2						1,300						2						2
CPI swaps						CPI						415						2						8						408						6						2
Synthetic GICs						Interest rate						16,769						—						—						15,362						—						—
Embedded derivatives in:
Modified coinsurance or funds withheld arrangements												—						310						373						—						283						338
Indexed products												—						—						354						—						—						435
Total non-designated derivatives												30,578						442						815						26,500						364						855
Derivatives designated as hedging instruments:
Interest rate swaps						Interest rate						3,223						38						68						3,336						5						103
Forward bond purchase commitments						Interest rate						2,358						5						226						2,020						—						206
Foreign currency swaps						Foreign currency						2,008						14						91						2,008						7						159
Foreign currency forwards						Foreign currency						2,259						2						75						1,966						94						—
Total hedging derivatives												9,848						59						460						9,330						106						468
Total derivatives												$	40,426					$	501					$	1,275					$	35,830					$	470					$	1,323

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 three and six months ended June 30, 2025 and 2024 are as follows (dollars in millions):

Derivative Type						Hedged Item						Investment Related Gains (Losses), Net												Claims and Other Policy Benefits												Interest Credited
												Derivatives						Hedged Items						Derivatives						Hedged Items						Derivatives						Hedged Items
For the three months ended June 30, 2025:
Foreign currency swaps						Foreign-denominated fixed maturity securities						$	—					$	—					$	—					$	—					$	—					$	—
Interest rate swaps						Future policy benefits						—						—						1						(1)						—						—
Interest rate swaps						Interest-sensitive contract liabilities						—						—						—						—						2						(1)
For the three months ended June 30, 2024:
Foreign currency swaps						Foreign-denominated fixed maturity securities						3						(4)						—						—						—						—
Interest rate swaps						Future policy benefits						—						—						(4)						2						—						—
Interest rate swaps						Interest-sensitive contract liabilities						—						—						—						—						(3)						1
For the six months ended June 30, 2025:
Foreign currency swaps						Foreign-denominated fixed maturity securities						—						—						—						—						—						—
Interest rate swaps						Future policy benefits						—						—						14						(14)						—						—
Interest rate swaps						Interest-sensitive contract liabilities						—						—						—						—						22						(26)
For the six months ended June 30, 2024:
Foreign currency swaps						Foreign-denominated fixed maturity securities						2						(4)						—						—						—						—
Interest rate swaps						Future policy benefits						—						—						(4)						2						—						—
Interest rate swaps						Interest-sensitive contract liabilities						—						—						—						—						(5)						2

The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges (dollars in millions):

Hedged Item						Carrying Amount of the Hedged Assets / (Liabilities)												Cumulative Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets / (Liabilities)												Discontinued Fair Value Hedge Adjustments Included in the Cumulative Adjustments
						June 30, 2025						December 31, 2024						June 30, 2025						December 31, 2024						June 30, 2025						December 31, 2024
Future policy benefits						$	(573)					$	(508)					$	(7)					$	7					$	3					$	—
Interest-sensitive contract liabilities						(988)						(1,111)						(15)						11						7						—

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table presents the cash flow hedge components of AOCI, before income taxes, and where the gain or loss related to cash flow hedges is recognized on the condensed consolidated statements of income for the three and six months ended June 30, 2025 and 2024 (dollars in millions):

						Three months ended June 30,
						2025						2024
Balance, beginning of period						$	(485)					$	(299)
Gains (losses), net deferred in other comprehensive income (loss)						(4)						(125)
Amounts reclassified to net investment income						18						14
Amounts reclassified to interest expense						(2)						(3)
Balance, end of period						$	(473)					$	(413)
						Six months ended June 30,
						2025						2024
Balance, beginning of period						$	(495)					$	(218)
Gains (losses), net deferred in other comprehensive income (loss)						(10)						(211)
Amounts reclassified to net investment income						36						22
Amounts reclassified to interest expense						(4)						(6)
Balance, end of period						$	(473)					$	(413)

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 condensed consolidated statements of income for the three and six months ended June 30, 2025 and 2024 (dollars in millions):

Derivative Type						Gains (Losses)  Deferred in OCI						Gains (Losses) Reclassified into Income from AOCI
												Net Investment Income						Interest Expense
For the three months ended June 30, 2025:
Interest rate						$	(64)					$	(1)					$	2
Foreign currency						60						(17)						—
Total						$	(4)					$	(18)					$	2
For the three months ended June 30, 2024:
Interest rate						$	(33)					$	(3)					$	3
Foreign currency						(92)						(11)						—
Total						$	(125)					$	(14)					$	3
For the six months ended June 30, 2025:
Interest rate						$	(52)					$	(2)					$	4
Foreign currency						42						(34)						—
Total						$	(10)					$	(36)					$	4
For the six months ended June 30, 2024:
Interest rate						$	(90)					$	(6)					$	6
Foreign currency						(121)						(16)						—
Total						$	(211)					$	(22)					$	6

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 three and six months ended June 30, 2025 and 2024 (dollars in millions):

						Derivative Gains (Losses) Deferred in OCI
						Three months ended June 30,												Six months ended June 30,
Derivative Type						2025						2024						2025						2024
Foreign currency forwards						$	(106)					$	11					$	(121)					$	36

Derivatives Not Designated as Hedging Instruments [Table Text Block]

A summary of the effect of non-qualifying derivatives, including embedded derivatives, on the Company’s condensed consolidated statements of income for the three and six months ended June 30, 2025 and 2024 is as follows (dollars in millions):

												Gains (Losses) for the three months ended      June 30,
Type of Non-qualifying Derivative						Income Statement Location of Gains (Losses)						2025						2024
Interest rate swaps						Investment related gains (losses), net						$	(1)					$	(13)
Interest rate options						Investment related gains (losses), net						(1)						—
Total return swaps						Investment related gains (losses), net						6						(11)
Interest rate futures						Investment related gains (losses), net						—						1
Foreign currency swaps						Investment related gains (losses), net						(2)						8
Foreign currency forwards						Investment related gains (losses), net						40						(98)
Foreign currency options						Investment related gains (losses), net						(2)						(3)
Equity options						Investment related gains (losses), net						11						(1)
Equity futures						Investment related gains (losses), net						(21)						(2)
Credit default swaps						Investment related gains (losses), net						21						2
CPI swaps						Investment related gains (losses), net						(1)						(1)
Subtotal												50						(118)
Embedded derivatives in:
Modified coinsurance or funds withheld arrangements						Investment related gains (losses), net						3						26
Indexed products						Interest credited						8						8
Total non-qualifying derivatives												$	61					$	(84)
												Gains (Losses) for the six months ended      June 30,
Type of Non-qualifying Derivative						Income Statement Location of Gains (Losses)						2025						2024
Interest rate swaps						Investment related gains (losses), net						$	5					$	(44)
Interest rate options						Investment related gains (losses), net						(1)						(3)
Total return swaps						Investment related gains (losses), net						—						(7)
Interest rate futures						Investment related gains (losses), net						—						2
Foreign currency swaps						Investment related gains (losses), net						(5)						22
Foreign currency forwards						Investment related gains (losses), net						62						(162)
Foreign currency options						Investment related gains (losses), net						(3)						(3)
Equity options						Investment related gains (losses), net						5						(5)
Equity futures						Investment related gains (losses), net						(12)						(19)
Credit default swaps						Investment related gains (losses), net						3						4
CPI swaps						Investment related gains (losses), net						(6)						(1)
Subtotal												48						(216)
Embedded derivatives in:
Modified coinsurance or funds withheld arrangements						Investment related gains (losses), net						(8)						103
Indexed products						Interest credited						32						(12)
Total non-qualifying derivatives												$	72					$	(125)

Disclosure Of Credit Derivatives

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 at June 30, 2025 and December 31, 2024 (dollars in millions):

						June 30, 2025																		December 31, 2024
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						$	(29)					$	440					16.2						$	(5)					$	410					17.5
BBB
Single name credit default swaps						3						180						2.5						3						150						2.3
Credit default swaps referencing indices						1						4,653						5.3						—						2,086						5.1
Subtotal						4						4,833						5.2						3						2,236						4.9
BB
Single name credit default swaps						—						5						1.0						—						5						1.5
B
Single name credit default swaps						—						10						0.7						—						10						1.2
Total						$	(25)					$	5,288					6.1						$	(2)					$	2,661					6.8

(1)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 June 30, 2025 and December 31, 2024 (dollars in millions):

						Gross Amounts   Recognized						Gross Amounts Offset in the Balance Sheet						Net Amounts Presented in the Balance Sheet						Financial Instruments / Collateral (1)						Net Amount
June 30, 2025:
Derivative assets						$	191					$	(70)					$	121					$	(121)					$	—
Derivative liabilities						548						(70)						478						(478)						—
December 31, 2024:
Derivative assets						187						(64)						123						(123)						—
Derivative liabilities						550						(64)						486						(486)						—

(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 June 30, 2025 and December 31, 2024 (dollars in millions):

						Gross Amounts   Recognized						Gross Amounts Offset in the Balance Sheet						Net Amounts Presented in the Balance Sheet						Financial Instruments / Collateral (1)						Net Amount
June 30, 2025:
Derivative assets						$	191					$	(70)					$	121					$	(121)					$	—
Derivative liabilities						548						(70)						478						(478)						—
December 31, 2024:
Derivative assets						187						(64)						123						(123)						—
Derivative liabilities						550						(64)						486						(486)						—

(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.

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Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

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