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Derivative Instruments (Tables) | 6 Months Ended
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Jun. 30, 2024
Schedule Of Positions in Derivative Instruments | The following table sets forth our positions in derivative instruments as of the dates indicated:
|  | Derivative assets |  |  | Derivative liabilities |
|  |  |  | Fair value |  |  |  |  | Fair value |
(Amounts in millions) |  | Balance sheet classification |  | June 30, 2024 |  |  | December 31, 2023 |  |  | Balance sheet classification |  | June 30, 2024 |  |  | December 31, 2023 |
Derivatives designated as hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | Other invested assets |  | $ | 26 |  |  | $ | 55 |  |  | Other liabilities |  | $ | 636 |  |  | $ | 490 |
Foreign currency swaps |  | Other invested assets |  |  | 12 |  |  |  | 10 |  |  | Other liabilities |  |  | 1 |  |  |  | 2 |
Forward bond purchase commitments |  | Other invested assets |  |  | 21 |  |  |  | 51 |  |  | Other liabilities |  |  | 13 |  |  |  | — |
Total cash flow hedges |  |  |  |  | 59 |  |  |  | 116 |  |  |  |  |  | 650 |  |  |  | 492 |
Total derivatives designated as hedges |  |  |  |  | 59 |  |  |  | 116 |  |  |  |  |  | 650 |  |  |  | 492 |
Derivatives not designated as hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity index options |  | Other invested assets |  |  | 21 |  |  |  | 15 |  |  | Other liabilities |  |  | — |  |  |  | — |
Financial futures (1) |  | Other invested assets |  |  | — |  |  |  | — |  |  | Other liabilities |  |  | — |  |  |  | — |
Forward bond purchase commitments |  | Other invested assets |  |  | — |  |  |  | — |  |  | Other liabilities |  |  | 20 |  |  |  | 9 |
Fixed indexed annuity embedded derivatives |  | Other assets |  |  | — |  |  |  | — |  |  | Policyholder account balances (2) |  |  | 160 |  |  |  | 165 |
Indexed universal life embedded derivatives |  | Reinsurance recoverable |  |  | — |  |  |  | — |  |  | Policyholder account balances (3) |  |  | 16 |  |  |  | 15 |
Total derivatives not designated as hedges |  |  |  |  | 21 |  |  |  | 15 |  |  |  |  |  | 196 |  |  |  | 189 |
Total derivatives |  |  |  | $ | 80 |  |  | $ | 131 |  |  |  |  | $ | 846 |  |  | $ | 681 |
(1) | The period end valuations of financial futures were zero as a result of settling the margins on these contracts on a daily basis.
(2) | Represents the embedded derivatives associated with our fixed indexed annuity liabilities.
(3) | Represents the embedded derivatives associated with our indexed universal life liabilities.
Schedule of Notional Amounts Outstanding on Derivative Instruments | The following tables represent activity associated with derivative instruments as of the dates indicated:
|  |  |  | December 31, |  |  |  |  |  | Maturities/ |  |  | June 30, |
(Notional in millions) |  | Measurement |  | 2023 |  |  | Additions |  |  | terminations |  |  | 2024 |
Derivatives designated as hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | Notional |  | $ | 8,975 |  |  | $ | 231 |  |  | $ | (399 | ) |  | $ | 8,807 |
Foreign currency swaps |  | Notional |  |  | 131 |  |  |  | 13 |  |  |  | — |  |  |  | 144 |
Forward bond purchase commitments |  | Notional |  |  | 1,075 |  |  |  | 1,528 |  |  |  | — |  |  |  | 2,603 |
Total cash flow hedges |  |  |  |  | 10,181 |  |  |  | 1,772 |  |  |  | (399 | ) |  |  | 11,554 |
Total derivatives designated as hedges |  |  |  |  | 10,181 |  |  |  | 1,772 |  |  |  | (399 | ) |  |  | 11,554 |
Derivatives not designated as hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity index options |  | Notional |  |  | 702 |  |  |  | 308 |  |  |  | (357 | ) |  |  | 653 |
Financial futures |  | Notional |  |  | 1,251 |  |  |  | 2,363 |  |  |  | (2,455 | ) |  |  | 1,159 |
Forward bond purchase commitments |  | Notional |  |  | 500 |  |  |  | — |  |  |  | — |  |  |  | 500 |
Total derivatives not designated as hedges |  |  |  |  | 2,453 |  |  |  | 2,671 |  |  |  | (2,812 | ) |  |  | 2,312 |
Total derivatives |  |  |  | $ | 12,634 |  |  | $ | 4,443 |  |  | $ | (3,211 | ) |  | $ | 13,866 |
|  |  |  | December 31, |  |  |  |  |  | Maturities/ |  |  | June 30, |
(Number of policies) |  | Measurement |  | 2023 |  |  | Additions |  |  | terminations |  |  | 2024 |
Derivatives not designated as hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed indexed annuity embedded derivatives |  | Policies |  |  | 5,826 |  |  |  | — |  |  |  | (530 | ) |  |  | 5,296 |
Indexed universal life embedded derivatives |  | Policies |  |  | 749 |  |  |  | — |  |  |  | (17 | ) |  |  | 732 |
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges | The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended June 30, 2024:
(Amounts in millions) |  | Gain (loss) recognized in OCI |  |  | Gain (loss) reclassified into net income from OCI |  |  | Classification of gain (loss) reclassified into net income |  | Gain (loss) recognized in net income |  |  | Classification of gain (loss) recognized in net income
Interest rate swaps hedging assets |  | $ | (77 | ) |  | $ | 52 |  |  | Net investment income |  | $ | — |  |  | Net investment gains (losses)
Interest rate swaps hedging assets |  |  | — |  |  |  | 1 |  |  | Net investment gains (losses) |  |  | — |  |  | Net investment gains (losses)
Interest rate swaps hedging liabilities |  |  | — |  |  |  | (1 | ) |  | Interest expense |  |  | — |  |  | Net investment gains (losses)
Foreign currency swaps |  |  | 2 |  |  |  | — |  |  | Net investment income |  |  | — |  |  | Net investment gains (losses)
Forward bond purchase commitments |  |  | (33 | ) |  |  | — |  |  | Net investment gains (losses) |  |  | — |  |  | Net investment gains (losses)
Total |  | $ | (108 | ) |  | $ | 52 |  |  |  |  | $ | — |  |  |
The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended June 30, 2023:
(Amounts in millions) |  | Gain (loss) recognized in OCI |  |  | Gain (loss) reclassified into net income from OCI |  |  | Classification of gain (loss) reclassified into net income |  | Gain (loss) recognized in net income |  |  | Classification of gain (loss) recognized in net income
Interest rate swaps hedging assets |  | $ | (104 | ) |  | $ | 55 |  |  | Net investment income |  | $ | — |  |  | Net investment gains (losses)
Interest rate swaps hedging assets |  |  | — |  |  |  | 3 |  |  | Net investment gains (losses) |  |  | — |  |  | Net investment gains (losses)
Foreign currency swaps |  |  | (2 | ) |  |  | — |  |  | Net investment income |  |  | — |  |  | Net investment gains (losses)
Total |  | $ | (106 | ) |  | $ | 58 |  |  |  |  | $ | — |  |  |
The following table provides information about the pre-tax income effects of cash flow hedges for the six months ended June 30, 2024:
(Amounts in millions) |  | Gain (loss) recognized in OCI |  |  | Gain (loss) reclassified into net income from OCI |  |  | Classification of gain (loss) reclassified into net income |  | Gain (loss) recognized in net income |  |  | Classification of gain (loss) recognized in net income
Interest rate swaps hedging assets |  | $ | (225 | ) |  | $ | 105 |  |  | Net investment income |  | $ | — |  |  | Net investment gains (losses)
Interest rate swaps hedging assets |  |  | — |  |  |  | 5 |  |  | Net investment gains (losses) |  |  | — |  |  | Net investment gains (losses)
Interest rate swaps hedging liabilities |  |  | — |  |  |  | (2 | ) |  | Interest expense |  |  | — |  |  | Net investment gains (losses)
Foreign currency swaps |  |  | 3 |  |  |  | — |  |  | Net investment income |  |  | — |  |  | Net investment gains (losses)
Forward bond purchase commitments |  |  | (44 | ) |  |  | — |  |  | Net investment gains (losses) |  |  | — |  |  | Net investment gains (losses)
Total |  | $ | (266 | ) |  | $ | 108 |  |  |  |  | $ | — |  |  |
The following table provides information about the pre-tax income effects of cash flow hedges for the six months ended June 30, 2023:
(Amounts in millions) |  | Gain (loss) recognized in OCI |  |  | Gain (loss) reclassified into net income from OCI |  |  | Classification of gain (loss) reclassified into net income |  | Gain (loss) recognized in net income |  |  | Classification of gain (loss) recognized in net income
Interest rate swaps hedging assets |  | $ | 42 |  |  | $ | 109 |  |  | Net investment income |  | $ | — |  |  | Net investment gains (losses)
Interest rate swaps hedging assets |  |  | — |  |  |  | 8 |  |  | Net investment gains (losses) |  |  | — |  |  | Net investment gains (losses)
Interest rate swaps hedging liabilities |  |  | — |  |  |  | (1 | ) |  | Interest expense |  |  | — |  |  | Net investment gains (losses)
Interest rate swaps hedging liabilities |  |  | — |  |  |  | 1 |  |  | Net investment gains (losses) |  |  | — |  |  | Net investment gains (losses)
Foreign currency swaps |  |  | (3 | ) |  |  | — |  |  | Net investment income |  |  | — |  |  | Net investment gains (losses)
Foreign currency swaps |  |  | — |  |  |  | 2 |  |  | Net investment gains (losses) |  |  | — |  |  | Net investment gains (losses)
Total |  | $ | 39 |  |  | $ | 119 |  |  |  |  | $ | — |  |  |
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedge | The following table provides a reconciliation of current period changes, net of applicable income taxes, for these designated derivatives presented in the separate component of stockholders’ equity labeled “derivatives qualifying as hedges,” as of and for the periods indicated:
|  | Three months ended June 30, |  |  | Six months ended June 30, |
(Amounts in millions) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Beginning balance |  | $ | 849 |  |  | $ | 1,274 |  |  | $ | 1,010 |  |  | $ | 1,200 |
Current period increases (decreases) in fair value, net of deferred taxes of $23, $23, $56 and $(8) |  |  | (85 | ) |  |  | (83 | ) |  |  | (210 | ) |  |  | 31 |
Reclassification to net (income), net of deferred taxes of $18, $21, $38 and $42 |  |  | (34 | ) |  |  | (37 | ) |  |  | (70 | ) |  |  | (77 | )
Ending balance |  | $ | 730 |  |  | $ | 1,154 |  |  | $ | 730 |  |  | $ | 1,154 |
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (loss) for Effects of Derivatives Not Designated as Hedges | The following table provides the pre-tax gain (loss) recognized in net income for the effects of derivatives not designated as hedges for the periods indicated:
|  | Three months ended June 30, |  |  | Six months ended June 30, |  |  | Classification of gain (loss) recognized in net income
(Amounts in millions) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Equity index options |  | $ | 1 |  |  | $ | 5 |  |  | $ | 6 |  |  | $ | 6 |  |  | Net investment gains (losses)
Financial futures |  |  | (15 | ) |  |  | (65 | ) |  |  | (79 | ) |  |  | (67 | ) |  | Changes in fair value of market risk benefits and associated hedges
Forward bond purchase commitments |  |  | (7 | ) |  |  | (3 | ) |  |  | (11 | ) |  |  | (3 | ) |  | Net investment gains (losses)
Fixed indexed annuity embedded derivatives |  |  | (5 | ) |  |  | (8 | ) |  |  | (13 | ) |  |  | (10 | ) |  | Net investment gains (losses)
Indexed universal life embedded derivatives |  |  | 2 |  |  |  | 2 |  |  |  | 6 |  |  |  | 7 |  |  | Net investment gains (losses)
Total derivatives not designated as hedges |  | $ | (24 | ) |  | $ | (69 | ) |  | $ | (91 | ) |  | $ | (67 | ) |  |
Derivative Assets and Liabilities Subject to Master Netting Arrangement | The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated:
|  | June 30, 2024 |  |  | December 31, 2023 |
(Amounts in millions) |  | Derivative assets (1) |  |  | Derivative liabilities (1) |  |  | Net derivatives |  |  | Derivative assets (1) |  |  | Derivative liabilities (1) |  |  | Net derivatives |
Amounts presented in the balance sheet: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross amounts recognized |  | $ | 80 |  |  | $ | 670 |  |  | $ | (590 | ) |  | $ | 131 |  |  | $ | 501 |  |  | $ | (370 | )
Gross amounts offset in the balance sheet |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net amounts presented in the balance sheet |  |  | 80 |  |  |  | 670 |  |  |  | (590 | ) |  |  | 131 |  |  |  | 501 |  |  |  | (370 | )
Gross amounts not offset in the balance sheet: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial instruments (2) |  |  | (38 | ) |  |  | (38 | ) |  |  | — |  |  |  | (59 | ) |  |  | (59 | ) |  |  | — |
Collateral received |  |  | (17 | ) |  |  | — |  |  |  | (17 | ) |  |  | (19 | ) |  |  | — |  |  |  | (19 | )
Collateral pledged |  |  | — |  |  |  | (1,288 | ) |  |  | 1,288 |  |  |  | — |  |  |  | (1,100 | ) |  |  | 1,100 |
Over collateralization |  |  | 2 |  |  |  | 656 |  |  |  | (654 | ) |  |  | — |  |  |  | 658 |  |  |  | (658 | )
Net amount |  | $ | 27 |  |  | $ | — |  |  | $ | 27 |  |  | $ | 53 |  |  | $ | — |  |  | $ | 53 |
(1) | Does not include amounts related to embedded derivatives as of June 30, 2024 and December 31, 2023.
(2) | Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty.

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- Definition Tabular disclosure of the effective portion of the gains and losses on derivative instruments designated (and non-derivative instruments) designated and qualifying in cash flow hedges and net investment hedges that was recognized in other comprehensive income (loss) during the current period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C + 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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -SubTopic 10 -Topic 815 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1B Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-8 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C + Details
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