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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments [Abstract]

Outstanding Derivative Instruments With Off-Balance-Sheet Risks

	As of June 30, 2021									As of December 31, 2020
	Notional			Fair Value						Notional			Fair Value
	Amounts			Asset			Liability			Amounts			Asset			Liability
Qualifying Hedges
Cash flow hedges:
Interest rate contracts (1)	$	2,942		$	46		$	433		$	2,177		$	87		$	563
Foreign currency contracts (1)		3,562			177			93			3,089			147			151
Total cash flow hedges		6,504			223			526			5,266			234			714
Fair value hedges:
Interest rate contracts (1)		1,159			1			222			1,161			-			272
Non-Qualifying Hedges
Interest rate contracts (1)		75,601			1,262			183			135,434			1,587			159
Foreign currency contracts (1)		398			3			4			304			1			8
Equity market contracts (1)		84,951			5,002			1,645			74,610			3,486			1,952
Credit contracts (1)		27			-			-			51			-			-
Embedded derivatives:
GLB direct (2)		-			1,767			-			-			450			-
GLB ceded (2)		-			53			152			-			82			-
Reinsurance related (3)		-			-			328			-			-			392
Indexed annuity and IUL contracts (2) (4)		-			515			4,937			-			550			3,594
Total derivative instruments	$	168,640		$	8,826		$	7,997		$	216,826		$	6,390		$	7,091

⁽¹⁾Reported in derivative investments and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽³⁾Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets.

⁽⁴⁾Reported in future contract benefits on our Consolidated Balance Sheets.

Maturity Of The Notional Amounts Of Derivative Financial Instruments

	Remaining Life as of June 30, 2021
	Less Than			1 - 5			6 - 10			11 - 30			Over 30
	1 Year			Years			Years			Years			Years			Total
Interest rate contracts (1)	$	2,426		$	48,393		$	15,248		$	12,422		$	1,213		$	79,702
Foreign currency contracts (2)		258			464			1,345			1,851			42			3,960
Equity market contracts		53,273			15,699			7,297			11			8,671			84,951
Credit contracts		-			27			-			-			-			27
Total derivative instruments
with notional amounts	$	55,957		$	64,583		$	23,890		$	14,284		$	9,926		$	168,640

⁽¹⁾As of June 30, 2021, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 20, 2067.

⁽²⁾As of June 30, 2021, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061.

Cumulative Basis Adjustments For Fair Value Hedges

									Cumulative Fair Value
									Hedging Adjustment
									Included in the
	Amortized Cost of the								Amortized Cost of the
	Hedged								Hedged
	Assets / (Liabilities)								Assets / (Liabilities)
	As of				As of				As of				As of
	June 30,				December 31,				June 30,				December 31,
	2021				2020				2021				2020
Line Item in the Consolidated Balance Sheets in
which the Hedged Item is Included
Fixed maturity AFS securities, at fair value	$	773			$	824			$	222			$	271
Long-term debt (1)		(857	)			(900	)			18				(25	)

⁽¹⁾The balance includes $(363) million and $(370) million of unamortized adjustments from discontinued hedges as of June 30, 2021, and December 31, 2020, respectively.

Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI

	For the Six
	Months Ended
	June 30,
	2021			2020
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	(402	)	$	(11	)
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		85			(461	)
Foreign currency contracts		55			269
Change in foreign currency exchange rate adjustment		45			97
Change in DAC, VOBA, DSI and DFEL		(11	)		(116	)
Income tax benefit (expense)		(36	)		43
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts (1)		1			1
Interest rate contracts (2)		(12	)		(8	)
Foreign currency contracts (1)		21			22
Foreign currency contracts (3)		(2	)		8
Associated amortization of DAC, VOBA, DSI and DFEL		(1	)		(19	)
Income tax benefit (expense)		(1	)		(1	)
Balance as of end-of-period	$	(270	)	$	(182	)

⁽¹⁾The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss).

⁽²⁾The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss).

⁽³⁾The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

Effects Of Qualifying And Non-Qualifying Hedges

	Gain (Loss) Recognized in Income
	For the Three Months Ended June 30,
	2021									2020
	Realized			Net			Interest			Realized			Net			Interest
	Gain			Investment			and Debt			Gain			Investment			and Debt
	(Loss)			Income			Expense			(Loss)			Income			Expense
Total Line Items in which the
Effects of Fair Value or Cash
Flow Hedges are Recorded	$	(2	)	$	1,584		$	65		$	(647	)	$	1,172		$	84
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			35			(42	)		-			(6	)		5
Derivatives designated as
hedging instruments		-			(35	)		42			-			6			(5	)
Gain or (loss) on cash flow
hedging relationships:
Interest rate contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		-			-			(6	)		-			1			(5	)
Foreign currency contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		-			11			-			7			11			-
Non-Qualifying Hedges
Interest rate contracts		432			-			-			19			-			-
Foreign currency contracts		(1	)		-			-			-			-			-
Equity market contracts		713			-			-			(1,454	)		-			-
Credit contracts		-			-			-			(1	)		-			-
Embedded derivatives:
GLB		(53	)		-			-			1,353			-			-
Reinsurance related		(84	)		-			-			(382	)		-			-
Indexed annuity and IUL
contracts		(735	)		-			-			(527	)		-			-

‎

	Gain (Loss) Recognized in Income
	For the Six Months Ended June 30,
	2021									2020
	Realized			Net			Interest			Realized			Net			Interest
	Gain			Investment			and Debt			Gain			Investment			and Debt
	(Loss)			Income			Expense			(Loss)			Income			Expense
Total Line Items in which the
Effects of Fair Value or Cash
Flow Hedges are Recorded	$	(182	)	$	3,094		$	131		$	(671	)	$	2,547		$	152
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(49	)		43			-			121			87
Derivatives designated as
hedging instruments		-			49			(43	)		-			(121	)		(87	)
Gain or (loss) on cash flow
hedging relationships:
Interest rate contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		-			1			(12	)		-			1			(8	)
Foreign currency contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		(2	)		21			-			8			22			-
Non-Qualifying Hedges
Interest rate contracts		(727	)		-			-			2,169			-			-
Foreign currency contracts		(1	)		-			-			-			-			-
Equity market contracts		1,955			-			-			(384	)		-			-
Credit contracts		-			-			-			(5	)		-			-
Embedded derivatives:
GLB		1,136			-			-			(3,016	)		-			-
Reinsurance related		64			-			-			82			-			-
Indexed annuity and IUL
contracts		(1,329	)		-			-			501			-			-

Open Credit Default Swap Liabilities

As of December 31, 2020

Credit

Reason

Nature

Rating of

Number

Maximum

for

of

Underlying

of

Fair

Potential

Credit Contract Type

Maturity

Entering

Recourse

Obligation (1)

Instruments

Value (2)

Payout

Basket CDSs

12/20/2025

(3)

(4)

BBB+

1

$

1

$

51

⁽¹⁾Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings.

⁽²⁾Broker quotes are used to determine the market value of our CDSs.

⁽³⁾CDSs were entered into in order to hedge the liability exposure on certain variable annuity products.

⁽⁴⁾Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract.

Collateral Support Agreements

		As of				As of
	June 30,				December 31,
		2021				2020
Maximum potential payout		$	-			$	51
Less: Counterparty thresholds			-				-
Maximum collateral potentially required to post		$	-			$	51

Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash

		As of June 30, 2021						As of December 31, 2020
		Collateral			Collateral			Collateral			Collateral
		Posted by			Posted by			Posted by			Posted by
S&P		Counter-			LNC			Counter-			LNC
Credit		Party			(Held by			Party			(Held by
Rating of		(Held by			Counter-			(Held by			Counter-
Counterparty		LNC)			Party)			LNC)			Party)
AA-		$	1,881		$	(274	)	$	1,233		$	(371	)
A+			1,996			(298	)		1,119			(445	)
A			69			-			53			-
A-			445			(175	)		571			(245	)
		$	4,391		$	(747	)	$	2,976		$	(1,061	)

Schedule Of Offsetting Assets And Liabilities

		As of June 30, 2021
						Embedded
		Derivative				Derivative
		Instruments				Instruments				Total
Financial Assets
Gross amount of recognized assets		$	7,058			$	2,335			$	9,393
Gross amounts offset			(1,936	)			-				(1,936	)
Net amount of assets			5,122				2,335				7,457
Gross amounts not offset:
Cash collateral			(4,391	)			-				(4,391	)
Non-cash collateral			(368	)			-				(368	)
Net amount		$	363			$	2,335			$	2,698
Financial Liabilities
Gross amount of recognized liabilities		$	1,082			$	5,417			$	6,499
Gross amounts offset			(8	)			-				(8	)
Net amount of liabilities			1,074				5,417				6,491
Gross amounts not offset:
Cash collateral			(747	)			-				(747	)
Non-cash collateral			-				-				-
Net amount		$	327			$	5,417			$	5,744

		As of December 31, 2020
						Embedded
		Derivative				Derivative
		Instruments				Instruments				Total
Financial Assets
Gross amount of recognized assets		$	4,978			$	1,082			$	6,060
Gross amounts offset			(1,869	)			-				(1,869	)
Net amount of assets			3,109				1,082				4,191
Gross amounts not offset:
Cash collateral			(2,976	)			-				(2,976	)
Non-cash collateral			(56	)			-				(56	)
Net amount		$	77			$	1,082			$	1,159
Financial Liabilities
Gross amount of recognized liabilities		$	1,456			$	3,986			$	5,442
Gross amounts offset			(330	)			-				(330	)
Net amount of liabilities			1,126				3,986				5,112
Gross amounts not offset:
Cash collateral			(1,061	)			-				(1,061	)
Non-cash collateral			-				-				-
Net amount		$	65			$	3,986			$	4,051

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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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