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Derivative Instruments (Tables) | 6 Months Ended
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Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Financial Statement Location and Amounts | The notional and fair values of derivative instruments, presented in the Consolidated Statements of Financial Position, are shown below:
| Primary Underlying Risk | Location in the Consolidated Statements of Financial Position |  | June 30, 2024 |  | December 31, 2023
| Notional Amount |  | Carrying Value / Fair Value |  | Notional Amount |  | Carrying Value / Fair Value
|  | Assets |  | Liabilities |  |  | Assets |  | Liabilities
|  |  |  | (Dollars in millions)
Derivatives Not Designated as Hedging Instruments:
Equity-indexed options | Equity | Other invested assets, Other liabilities |  | $ | 45,871 |  |  | $ | 1,610 |  |  | $ | — |  |  | $ | 4,084 |  |  | $ | 227 |  |  | $ | — |
Embedded Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indexed annuity and variable annuity product | Interest rate | Policyholders’ account balances |  | — |  |  | — |  |  | 1,196 |  |  | — |  |  | — |  |  | 873 |
Funds withheld and Modco arrangements | Interest rate | Funds withheld for reinsurance liabilities |  | — |  |  | — |  |  | 79 |  |  | — |  |  | — |  |  | — |
|  |  |  | $ | 45,871 |  |  | $ | 1,610 |  |  | $ | 1,275 |  |  | $ | 4,084 |  |  | $ | 227 |  |  | $ | 873 |
Schedule of Derivatives Instruments | The following represents the financial statement location and amount of gains (losses) related to the derivatives not designated as hedging instruments:
|  |  | Derivative Gains (Losses) Recognized in Income
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
| Location in the Consolidated Statements of Operations |  | 2024 |  | 2023 |  | 2024 |  | 2023
|  |  | (Dollars in millions)
Equity-indexed options | Change in fair value of insurance-related derivatives and embedded derivatives |  | $ | 308 |  |  | $ | 46 |  |  | $ | 365 |  |  | $ | 71 |
Embedded derivatives: |  |  |  |  |  |  |  |  |
Indexed annuity and variable annuity product | Change in fair value of insurance-related derivatives and embedded derivatives |  | (250) |  |  | (20) |  |  | (288) |  |  | (71) |
Funds withheld and Modco arrangements | Change in fair value of insurance-related derivatives and embedded derivatives |  | (79) |  |  | — |  |  | (79) |  |  | — |
|  |  | $ | (21) |  |  | $ | 26 |  |  | $ | (2) |  |  | $ | — |
Schedule of Derivative Instruments | The fair value of our call options by counterparty and each counterparty's current credit rating are as follows:
|  |  |  |  |  |  |  | June 30, 2024 |  |  |  | December 31, 2023
Counterparty |  | Credit Rating (S&P) |  | Credit Rating (Moody's) |  |  |  | Fair Value |  |  |  | Fair Value
|  |  |  |  |  |  |  | (Dollars in millions)
Bank of America |  | A+ |  | Aa1 |  |  |  | $ | 162 |  |  |  |  | $ | 24 |
Barclays |  | A+ |  | A1 |  |  |  | 76 |  |  |  |  | 24 |
Canadian Imperial Bank of Commerce |  | A+ |  | Aa2 |  |  |  | 61 |  |  |  |  | — |
Citibank, N.A. |  | A+ |  | Aa3 |  |  |  | 46 |  |  |  |  | — |
Credit Suisse |  | A+ |  | Aa2 |  |  |  | 6 |  |  |  |  | 16 |
Goldman Sachs |  | A+ |  | A1 |  |  |  | 17 |  |  |  |  | — |
ING |  | A- |  | Baa1 |  |  |  | 6 |  |  |  |  | 10 |
J.P. Morgan |  | A+ |  | Aa2 |  |  |  | 149 |  |  |  |  | 12 |
Mizuho |  | A |  | A1 |  |  |  | 393 |  |  |  |  | — |
Morgan Stanley |  | A+ |  | Aa3 |  |  |  | 114 |  |  |  |  | 43 |
NATIXIS |  | A+ |  | A2 |  |  |  | 2 |  |  |  |  | 4 |
Royal Bank of Canada |  | AA- |  | A1 |  |  |  | 132 |  |  |  |  | — |
Societe Generale |  | A |  | A1 |  |  |  | 82 |  |  |  |  | — |
Truist |  | A |  | A3 |  |  |  | 119 |  |  |  |  | 59 |
UBS AG |  | A+ |  | Aa3 |  |  |  | 50 |  |  |  |  | — |
Wells Fargo |  | A+ |  | Aa2 |  |  |  | 195 |  |  |  |  | 35 |
|  |  |  |  |  |  |  | $ | 1,610 |  |  |  |  | $ | 227 |
Schedule of Derivative Assets and Effects of Rights of Offset | Information regarding the Company’s exposure to credit loss on the derivatives it holds, including the effect of rights of offset, is presented below:
| Gross Amount of Derivative Instruments (1) |  | Gross Amount Offset in the Consolidated Statements of Financial Position |  | Net Amount Presented in the Consolidated Statements of Financial Position |  | Collateral (Received) Pledged in Cash (2) |  | Collateral (Received) Pledged in Invested Assets (2) |  | Exposure of Net Collateral
| (Dollars in millions)
As of June 30, 2024 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | 1,618 |  |  | $ | (8) |  |  | $ | 1,610 |  |  | $ | (1,587) |  |  | $ | (21) |  |  | $ | 2 |
Total derivative assets | $ | 1,618 |  |  | $ | (8) |  |  | $ | 1,610 |  |  | $ | (1,587) |  |  | $ | (21) |  |  | $ | 2 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | (8) |  |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total derivative liabilities | $ | (8) |  |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | 227 |  |  | $ | — |  |  | $ | 227 |  |  | $ | (205) |  |  | $ | (21) |  |  | $ | 1 |
Total derivative assets | $ | 227 |  |  | $ | — |  |  | $ | 227 |  |  | $ | (205) |  |  | $ | (21) |  |  | $ | 1 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total derivative liabilities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
(1)Represents derivative assets and liabilities on a gross basis, which are not offset under enforceable master netting agreements that meet all offsetting criteria. (2)Excludes a portion of collateral held in cash and invested assets that are excess collateral. As of June 30, 2024 and December 31, 2023, the Company held excess collateral of $52 million and $4 million, respectively.
Schedule of Derivative Liabilities and Effects of Rights of Offset | Information regarding the Company’s exposure to credit loss on the derivatives it holds, including the effect of rights of offset, is presented below:
| Gross Amount of Derivative Instruments (1) |  | Gross Amount Offset in the Consolidated Statements of Financial Position |  | Net Amount Presented in the Consolidated Statements of Financial Position |  | Collateral (Received) Pledged in Cash (2) |  | Collateral (Received) Pledged in Invested Assets (2) |  | Exposure of Net Collateral
| (Dollars in millions)
As of June 30, 2024 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | 1,618 |  |  | $ | (8) |  |  | $ | 1,610 |  |  | $ | (1,587) |  |  | $ | (21) |  |  | $ | 2 |
Total derivative assets | $ | 1,618 |  |  | $ | (8) |  |  | $ | 1,610 |  |  | $ | (1,587) |  |  | $ | (21) |  |  | $ | 2 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | (8) |  |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total derivative liabilities | $ | (8) |  |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | 227 |  |  | $ | — |  |  | $ | 227 |  |  | $ | (205) |  |  | $ | (21) |  |  | $ | 1 |
Total derivative assets | $ | 227 |  |  | $ | — |  |  | $ | 227 |  |  | $ | (205) |  |  | $ | (21) |  |  | $ | 1 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total derivative liabilities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
(1)Represents derivative assets and liabilities on a gross basis, which are not offset under enforceable master netting agreements that meet all offsetting criteria. (2)Excludes a portion of collateral held in cash and invested assets that are excess collateral. As of June 30, 2024 and December 31, 2023, the Company held excess collateral of $52 million and $4 million, respectively.

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