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Derivative Instruments (Tables) | 9 Months Ended
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Sep. 30, 2021
Derivative Instruments [Abstract] |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of September 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)$ 2,729 $ 53 $ 395 $ 2,177 $ 87 $ 563 Foreign currency contracts (1) 3,745 259 54 3,089 147 151 Total cash flow hedges 6,474 312 449 5,266 234 714 Fair value hedges: Interest rate contracts (1) 1,159 - 220 1,161 - 272 Non-Qualifying Hedges Interest rate contracts (1) 78,941 1,211 190 135,434 1,587 159 Foreign currency contracts (1) 369 6 1 304 1 8 Equity market contracts (1) 93,188 5,217 1,651 74,610 3,486 1,952 Credit contracts (1) 32 - - 51 - - Embedded derivatives: GLB direct (2) - 1,698 - - 450 - GLB ceded (2) - 55 146 - 82 - Reinsurance related (3) - - 304 - - 392 Indexed annuity and IUL contracts (2) (4) - 495 4,804 - 550 3,594 Total derivative instruments$ 180,163 $ 8,994 $ 7,765 $ 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 September 30, 2021 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1)$ 2,508 $ 49,605 $ 16,004 $ 13,499 $ 1,213 $ 82,829 Foreign currency contracts (2) 195 563 1,582 1,732 42 4,114 Equity market contracts 59,551 16,253 7,023 1,623 8,738 93,188 Credit contracts - 32 - - - 32 Total derivative instruments with notional amounts$ 62,254 $ 66,453 $ 24,609 $ 16,854 $ 9,993 $ 180,163 (1)As of September 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 September 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 September 30, December 31, September 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$ 762 $ 824 $ 212 $ 271 Long-term debt (1) (849) (900) 26 (25) (1)Includes $(360) million and $(370) million of unamortized adjustments from discontinued hedges as of September 30, 2021, and December 31, 2020, respectively.
Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Nine Months Ended September 30, 2021 2020 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year$ (402)$ (11)Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts 116 (432)Foreign currency contracts 113 213 Change in foreign currency exchange rate adjustment 129 (16)Change in DAC, VOBA, DSI and DFEL - (64)Income tax benefit (expense) (76) 62 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 2 2 Interest rate contracts (2) (18) (16)Foreign currency contracts (1) 34 46 Foreign currency contracts (3) (2) 6 Associated amortization of DAC, VOBA, DSI and DFEL (1) (8)Income tax benefit (expense) (3) (6)Balance as of end-of-period$ (132)$ (272) (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 September 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$ 85 $ 1,576 $ 73 $ 629 $ 1,458 $ 66 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - (10) 8 - (21) 19 Derivatives designated as hedging instruments - 10 (8) - 21 (19)Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 1 (6) - 1 (8)Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income - 13 - (2) 24 - Non-Qualifying Hedges Interest rate contracts (149) - - (374) - - Equity market contracts 387 - - 949 - - Credit contracts - - - 1 - - Embedded derivatives: GLB (61) - - 1,690 - - Reinsurance related 24 - - (88) - - Indexed annuity and IUL contracts 33 - - (105) - - ‎ Gain (Loss) Recognized in Income For the Nine Months Ended September 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$ (97)$ 4,670 $ 204 $ (43)$ 4,005 $ 218 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - (59) 51 - 100 106 Derivatives designated as hedging instruments - 59 (51) - (100) (106)Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 2 (18) - 2 (16)Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income (2) 34 - 6 46 - Non-Qualifying Hedges Interest rate contracts (876) - - 1,795 - - Foreign currency contracts (1) - - - - - Equity market contracts 2,342 - - 565 - - Credit contracts - - - (4) - - Embedded derivatives: GLB 1,075 - - (1,326) - - Reinsurance related 88 - - (7) - - Indexed annuity and IUL contracts (1,296) - - 396 - -
Open Credit Default Swap Liabilities | As of December 31, 2020 Credit Reason Nature Rating of Number Maximum for of Underlyingof Fair PotentialCredit Contract Type Maturity Entering RecourseObligation (1)Instruments Value (2) PayoutBasket 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 September 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 September 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- $ 1,940 $ (274)$ 1,233 $ (371)A+ 2,527 (254) 1,119 (445)A 60 - 53 - A- 421 (172) 571 (245) $ 4,948 $ (700)$ 2,976 $ (1,061)
Schedule Of Offsetting Assets And Liabilities | As of September 30, 2021 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 7,393 $ 2,248 $ 9,641 Gross amounts offset (1,914) - (1,914)Net amount of assets (1) 5,479 2,248 7,727 Gross amounts not offset: Cash collateral (4,948) - (4,948)Non-cash collateral (224) - (224)Net amount $ 307 $ 2,248 $ 2,555 Financial Liabilities Gross amount of recognized liabilities $ 1,032 $ 5,254 $ 6,286 Gross amounts offset (3) - (3)Net amount of liabilities 1,029 5,254 6,283 Gross amounts not offset: Cash collateral (700) - (700)Non-cash collateral - - - Net amount $ 329 $ 5,254 $ 5,583 (1)Includes deferred premiums of $651 million reported in other assets on our Consolidated Balance Sheets. 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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- Definition Presents in tabular form the change in unrealized gain (loss) on derivative instruments in accumulated other comprehensive income. + References No definition available. + Details
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- Definition Details in tabular form of the collateral posted by the counterparty and the entity associated with collateral support agreements. + References No definition available. + Details
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- Definition Schedule of collateral amounts with rights to reclaim or obligation to return cash based on the S&P credit rating of counterparty. + References No definition available. + Details
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- Definition Schedule of offsetting assets and liabilities related to derivative instruments, embedded derivative instruments, securities lending transactions and reverse repurchase agreements. + References No definition available. + Details
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- Definition 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). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5708773-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5708775-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4L -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5708777-113959 + Details
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- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959 + Details
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- Definition Tabular disclosure of derivative instruments (including nonderivative instruments that are designated and qualify as hedging instruments) of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5618551-113959 + Details
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