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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments [Abstract]

Outstanding Derivative Instruments With Off-Balance-Sheet Risks

	As of March 31, 2022									As of December 31, 2021
	Notional			Fair Value						Notional			Fair Value
	Amounts			Asset			Liability			Amounts			Asset			Liability
Qualifying Hedges
Cash flow hedges:
Interest rate contracts (1)	$	3,137		$	15		$	285		$	3,222		$	98		$	436
Foreign currency contracts (1)		4,180			313			40			3,979			283			51
Total cash flow hedges		7,317			328			325			7,201			381			487
Fair value hedges:
Interest rate contracts (1)		1,157			-			158			1,157			-			213
Non-Qualifying Hedges
Interest rate contracts (1)		88,588			631			281			82,786			897			176
Foreign currency contracts (1)		383			9			1			487			7			2
Equity market contracts (1)		90,535			5,530			1,301			92,641			6,461			2,108
Credit contracts (1)		56			-			-			49			-			-
Embedded derivatives:
GLB direct (2)		-			1,880			-			-			1,963			-
GLB ceded (2)		-			42			174			-			56			182
Reinsurance-related (3)		-			56			-			-			-			206
Indexed annuity and IUL contracts (2) (4)		-			493			5,574			-			528			6,131
Total derivative instruments	$	188,036		$	8,969		$	7,814		$	184,321		$	10,293		$	9,505

⁽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 other assets and 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 March 31, 2022
	Less Than			1 - 5			6 - 10			11 - 30			Over 30
	1 Year			Years			Years			Years			Years			Total
Interest rate contracts (1)	$	25,425		$	29,454		$	19,844		$	16,946		$	1,213		$	92,882
Foreign currency contracts (2)		294			556			1,627			1,992			94			4,563
Equity market contracts		53,860			19,963			7,778			11			8,923			90,535
Credit contracts		-			25			31			-			-			56
Total derivative instruments
with notional amounts	$	79,579		$	49,998		$	29,280		$	18,949		$	10,230		$	188,036

⁽¹⁾As of March 31, 2022, 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 March 31, 2022, 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
	March 31,				December 31,				March 31,				December 31,
	2022				2021				2022				2021
Line Item in the Consolidated Balance Sheets in
which the Hedged Item is Included
Fixed maturity AFS securities, at fair value	$	701			$	764			$	148			$	211
Long-term debt (1)		(795	)			(854	)			80				21

⁽¹⁾Includes $(352) million and $(356) million of unamortized adjustments from discontinued hedges as of March 31, 2022, and December 31, 2021, respectively.

Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI

	For the Three
	Months Ended
	March 31,
	2022			2021
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	(103	)	$	(402	)
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period:
Cash flow hedges:
Interest rate contracts		61			152
Foreign currency contracts		(17	)		(63	)
Change in foreign currency exchange rate adjustment		75			47
Change in DAC, VOBA, DSI and DFEL		15			14
Income tax benefit (expense)		(27	)		(30	)
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts (1)		1			1
Interest rate contracts (2)		(6	)		(6	)
Foreign currency contracts (1)		13			10
Foreign currency contracts (3)		3			(2	)
Associated amortization of DAC, VOBA, DSI and DFEL		(2	)		(1	)
Income tax benefit (expense)		(2	)		-
Balance as of end-of-period	$	(3	)	$	(284	)

⁽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 March 31,
	2022									2021
	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	$	29		$	1,412		$	66		$	(181	)	$	1,510		$	65
Qualifying Hedges
Gain or (loss) on fair value
hedging relationships:
Interest rate contracts:
Hedged items		-			(63	)		58			-			(84	)		85
Derivatives designated as
hedging instruments		-			63			(58	)		-			84			(85	)
Gain or (loss) on cash flow
hedging relationships:
Interest rate contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		-			1			(6	)		-			1			(6	)
Foreign currency contracts:
Amount of gain or (loss)
reclassified from AOCI
into income		3			13			-			(2	)		10			-
Non-Qualifying Hedges
Interest rate contracts		(821	)		-			-			(1,159	)		-			-
Equity market contracts		(324	)		-			-			1,242			-			-
Embedded derivatives:
GLB		(89	)		-			-			1,188			-			-
Reinsurance-related		263			-			-			148			-			-
Indexed annuity and IUL
contracts		506			-			-			(594	)		-			-

Open Credit Default Swap Liabilities

As of March 31, 2022

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

12/20/2026

(3)

(4)

BBB+

1

$

-

$

25

Basket CDSs

6/20/2027

(3)

(4)

BBB+

1

1

31

2

$

1

$

56

⁽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
	March 31,			December 31,
		2022			2021
Maximum potential payout		$	56		$	-
Less: Counterparty thresholds			-			-
Maximum collateral potentially required to post		$	56		$	-

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

		As of March 31, 2022						As of December 31, 2021
		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-		$	2,126		$	(168	)	$	2,346		$	(281	)
A+			2,384			(205	)		2,772			(251	)
A			279			(108	)		456			(189	)
A-			-			-			-			-
		$	4,789		$	(481	)	$	5,574		$	(721	)

Schedule Of Offsetting Assets And Liabilities

		As of March 31, 2022
						Embedded
		Derivative				Derivative
		Instruments				Instruments				Total
Financial Assets
Gross amount of recognized assets		$	6,199			$	2,471			$	8,670
Gross amounts offset			(1,625	)			-				(1,625	)
Net amount of assets (1)			4,574				2,471				7,045
Gross amounts not offset:
Cash collateral (2)			(4,574	)			-				(4,574	)
Non-cash collateral			-				-				-
Net amount		$	-			$	2,471			$	2,471
Financial Liabilities
Gross amount of recognized liabilities		$	473			$	5,748			$	6,221
Gross amounts offset			(33	)			-				(33	)
Net amount of liabilities			440				5,748				6,188
Gross amounts not offset:
Cash collateral (2)			(440	)			-				(440	)
Non-cash collateral			-				-				-
Net amount		$	-			$	5,748			$	5,748

⁽¹⁾Includes deferred premiums receivable (payable) of $(266) million reported in other assets and other liabilities on our Consolidated Balance Sheets.

⁽²⁾Excludes excess cash collateral received of $215 million and excess cash collateral pledged of $41 million, as the cash collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

‎

		As of December 31, 2021
						Embedded
		Derivative				Derivative
		Instruments				Instruments				Total
Financial Assets
Gross amount of recognized assets		$	7,938			$	2,547			$	10,485
Gross amounts offset			(2,241	)			-				(2,241	)
Net amount of assets (1)			5,697				2,547				8,244
Gross amounts not offset:
Cash collateral (2)			(5,574	)			-				(5,574	)
Non-cash collateral			(123	)			-				(123	)
Net amount		$	-			$	2,547			$	2,547
Financial Liabilities
Gross amount of recognized liabilities		$	777			$	6,519			$	7,296
Gross amounts offset			(68	)			-				(68	)
Net amount of liabilities			709				6,519				7,228
Gross amounts not offset:
Cash collateral (2)			(709	)			-				(709	)
Non-cash collateral			-				-				-
Net amount		$	-			$	6,519			$	6,519

⁽¹⁾Includes deferred premiums receivable (payable) of $260 million reported in other assets on our Consolidated Balance Sheets.

⁽²⁾Excludes excess cash collateral pledged of $12 million, as the cash collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

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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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