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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Financial Statement Location and Amounts

The notional and fair values of freestanding derivative instruments, before the effect of offset as presented in the Consolidated Statements of Financial Position, are shown below:

			Primary Underlying Risk			Location in the Consolidated Statements of Financial Position						September 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 Designated as Hedging Instruments:
Foreign exchange forwards			Foreign currency			Other invested assets, Other liabilities						$	643					$	—					$	14					$	—					$	—					$	—
Derivatives Not Designated as Hedging Instruments:
Equity-indexed options			Equity			Other invested assets, Other liabilities						45,975						1,900						7						4,084						227						—
Foreign exchange forwards			Foreign currency			Other invested assets, Other liabilities						921						—						17						—						—						—
Embedded Derivatives:
Indexed annuity and variable annuity product			Interest rate			Policyholders’ account balances						—						—						1,771						—						—						873
Funds withheld and Modco arrangements			Interest rate			Funds withheld for reinsurance liabilities						—						—						278						—						—						—
												$	47,539					$	1,900					$	2,087					$	4,084					$	227					$	873

The following represents the financial statement location and amount of gains (losses) related to the derivatives and hedged items that qualify for fair value hedge accounting:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2024						2023						2024						2023
						(Dollars in millions)
Hedged items						$	13					$	—					$	13					$	—
Derivatives designated as hedging instruments						(13)						—						(13)						—
Investment related gains (losses)						$	—					$	—					$	—					$	—

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 September 30,												Nine Months Ended September 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						$	382					$	(31)					$	747					$	40
Foreign exchange forwards			Investment related gains (losses)						(18)						—						(18)						—
Embedded derivatives:
Indexed annuity and variable annuity product			Change in fair value of insurance-related derivatives and embedded derivatives						(527)						(23)						(815)						(94)
Funds withheld and Modco arrangements			Change in fair value of insurance-related derivatives and embedded derivatives						(199)						—						(278)						—
									$	(362)					$	(54)					$	(364)					$	(54)

Schedule of Derivative Instruments

The fair value of our derivatives by counterparty and each counterparty's current credit rating are as follows:

																								September 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												$	207											$	24
Barclays						A+						A1												67												24
Canadian Imperial Bank of Commerce						A+						Aa2												54												—
Citibank, N.A.						A+						Aa3												62												—
Credit Suisse						A-						A3												—												16
Goldman Sachs						A+						A1												29												—
ING						A-						Baa1												6												10
J.P. Morgan						A+						Aa2												254												12
Mizuho						A						A1												388												—
Morgan Stanley						A+						Aa3												114												43
NATIXIS						A+						A1												2												4
Royal Bank of Canada						AA-						A1												137												—
Societe Generale						A						A1												154												—
Truist						A						A3												115												59
UBS AG						A-						A3												67												—
Wells Fargo						A+						Aa2												231												35
																								$	1,887											$	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 (2)						Net Amount Presented in the Consolidated Statements of Financial Position						Collateral (Received) Pledged in Cash (3)						Collateral (Received) Pledged in Invested Assets (3)						Exposure of Net Collateral
			(Dollars in millions)
As of September 30, 2024
Derivative assets
Equity-indexed options			$	1,900					$	(13)					$	1,887					$	(1,827)					$	(21)					$	39
Total derivative assets			$	1,900					$	(13)					$	1,887					$	(1,827)					$	(21)					$	39
Derivative liabilities
Equity-indexed options			$	(7)					$	7					$	—					$	—					$	—					$	—
Foreign exchange forwards			(31)						6						(25)						—						—						(25)
Total derivative liabilities			$	(38)					$	13					$	(25)					$	—					$	—					$	(25)
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			$	—					$	—					$	—					$	—					$	—					$	—
Foreign exchange forwards			—						—						—						—						—						—
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)Represents netting of derivative exposures covered by qualifying master netting agreements.

(3)Excludes a portion of collateral held in cash and invested assets that are excess collateral. As of September 30, 2024 and December 31, 2023, the Company held excess collateral of $24 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 (2)						Net Amount Presented in the Consolidated Statements of Financial Position						Collateral (Received) Pledged in Cash (3)						Collateral (Received) Pledged in Invested Assets (3)						Exposure of Net Collateral
			(Dollars in millions)
As of September 30, 2024
Derivative assets
Equity-indexed options			$	1,900					$	(13)					$	1,887					$	(1,827)					$	(21)					$	39
Total derivative assets			$	1,900					$	(13)					$	1,887					$	(1,827)					$	(21)					$	39
Derivative liabilities
Equity-indexed options			$	(7)					$	7					$	—					$	—					$	—					$	—
Foreign exchange forwards			(31)						6						(25)						—						—						(25)
Total derivative liabilities			$	(38)					$	13					$	(25)					$	—					$	—					$	(25)
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			$	—					$	—					$	—					$	—					$	—					$	—
Foreign exchange forwards			—						—						—						—						—						—
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)Represents netting of derivative exposures covered by qualifying master netting agreements.

(3)Excludes a portion of collateral held in cash and invested assets that are excess collateral. As of September 30, 2024 and December 31, 2023, the Company held excess collateral of $24 million and $4 million, respectively.

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