Derivatives and Hedging (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks they are utilized to manage, excluding embedded derivatives. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral. These netting impacts resulted in total derivative assets of $1,785 million and $1,601 million as of June 30, 2025 and December 31, 2024, respectively, and total derivative liabilities of $6,350 million and $4,751 million as of June 30, 2025 and December 31, 2024, respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position.


Primary Underlying Risk /Instrument Type	June 30, 2025						December 31, 2024
			Fair Value						Fair Value
	Gross Notional		Assets		Liabilities		Gross Notional		Assets		Liabilities
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	4,567	$	27	$	(321)	$	4,260	$	11	$	(404)
Interest Rate Forwards	10		0		0		10		0		0
Foreign Currency
Foreign Currency Forwards	5,061		28		(260)		4,771		92		(197)
Currency/Interest Rate
Foreign Currency Swaps	32,665		1,195		(1,677)		31,301		2,652		(368)
Total Derivatives Designated as Hedge Accounting Instruments	$	42,303	$	1,250	$	(2,258)	$	40,342	$	2,755	$	(969)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	247,298	$	10,150	$	(23,015)	$	228,392	$	11,272	$	(24,802)
Interest Rate Futures	10,422		66		(17)		9,773		6		(21)
Interest Rate Options	29,245		112		(1,262)		34,005		430		(1,583)
Interest Rate Forwards	2,813		25		(8)		2,544		9		(80)
Interest Rate Total Return Swaps	844		5		(2)		485		4		(2)
Foreign Currency
Foreign Currency Forwards	29,103		861		(1,028)		27,819		1,625		(1,181)
Currency/Interest Rate
Foreign Currency Swaps	7,766		406		(223)		7,525		658		(129)
Credit
Credit Default Swaps	4,679		87		0		4,027		90		0
Equity
Equity Futures	1,169		4		0		2,019		6		(7)
Equity Options	155,754		6,507		(5,819)		104,438		4,507		(3,790)
Equity Total Return Swaps	11,773		656		(875)		9,796		331		(327)
Other
Other(1)	1,250		0		0		1,250		0		0
Synthetic GICs	77,495		1		(15)		76,416		1		(1)
Total Derivatives Not Qualifying as Hedge Accounting Instruments	$	579,611	$	18,880	$	(32,264)	$	508,489	$	18,939	$	(31,923)
Total Derivatives(2)(3)	$	621,914	$	20,130	$	(34,522)	$	548,831	$	21,694	$	(32,892)

__________

(1)“Other” primarily includes derivative contracts used to improve the balance of the Company’s tail longevity and mortality risk. Under these contracts, the Company’s gains (losses) are capped at the notional amount.

(2)Excludes embedded derivatives which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $14,687 million (including the Prismic funds withheld related embedded derivative net liability of $45 million) and $11,783 million (including the Prismic funds withheld related embedded derivative net liability of $(91) million) as of June 30, 2025 and December 31, 2024, respectively, primarily included in “Policyholders’ account balances” and “Reinsurance and funds withheld payables.”

(3)Recorded in “Other invested assets” and “Other liabilities” on the Unaudited Interim Consolidated Statements of Financial Position.

Schedule of Derivative instruments (hedged item in fair value hedge accounting relationship)

As of June 30, 2025, the following amounts were recorded on the Unaudited Interim Consolidated Statements of Financial Position related to the carrying amount of the hedged assets (liabilities) and cumulative basis adjustments included in the carrying amount for fair value hedges.


	June 30, 2025				December 31, 2024
Balance Sheet Line Item in which Hedged Item is Recorded	Carrying Amount of the Hedged Assets (Liabilities)		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities)(1)		Carrying Amount of the Hedged Assets (Liabilities)		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities)(1)

	(in millions)
Fixed maturities, available-for-sale, at fair value	$	333	$	15	$	216	$	11

Policyholders’ account balances	$	(1,578)	$	284	$	(1,510)	$	327
Future policy benefits	$	(2,470)	$	233	$	(2,280)	$	423

__________

(1)There were no material fair value hedging adjustments for hedged assets and liabilities for which hedge accounting has been discontinued.

Offsetting of Financial Assets

The following tables present recognized derivative instruments (excluding embedded derivatives), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.


	June 30, 2025
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statements of Financial Position		Net Amounts Presented in the Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives	$	19,989	$	(18,345)	$	1,644	$	(594)	$	1,050
Securities purchased under agreement to resell	18		0		18		(18)		0
Total Assets	$	20,007	$	(18,345)	$	1,662	$	(612)	$	1,050
Offsetting of Financial Liabilities:
Derivatives	$	34,507	$	(28,172)	$	6,335	$	(6,335)	$	0
Securities sold under agreement to repurchase	8,205		0		8,205		(8,205)		0
Total Liabilities	$	42,712	$	(28,172)	$	14,540	$	(14,540)	$	0


	December 31, 2024
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statements of Financial Position		Net Amounts Presented in the Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives	$	21,574	$	(20,093)	$	1,481	$	(696)	$	785
Securities purchased under agreement to resell	277		0		277		(277)		0
Total Assets	$	21,851	$	(20,093)	$	1,758	$	(973)	$	785
Offsetting of Financial Liabilities:
Derivatives	$	32,891	$	(28,141)	$	4,750	$	(4,403)	$	347
Securities sold under agreement to repurchase	6,796		0		6,796		(6,796)		0
Total Liabilities	$	39,687	$	(28,141)	$	11,546	$	(11,199)	$	347

__________

(1)Amounts exclude the excess of collateral received/pledged from/to the counterparty.

Offsetting of Financial Liabilities


	June 30, 2025
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statements of Financial Position		Net Amounts Presented in the Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives	$	19,989	$	(18,345)	$	1,644	$	(594)	$	1,050
Securities purchased under agreement to resell	18		0		18		(18)		0
Total Assets	$	20,007	$	(18,345)	$	1,662	$	(612)	$	1,050
Offsetting of Financial Liabilities:
Derivatives	$	34,507	$	(28,172)	$	6,335	$	(6,335)	$	0
Securities sold under agreement to repurchase	8,205		0		8,205		(8,205)		0
Total Liabilities	$	42,712	$	(28,172)	$	14,540	$	(14,540)	$	0


	December 31, 2024
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statements of Financial Position		Net Amounts Presented in the Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives	$	21,574	$	(20,093)	$	1,481	$	(696)	$	785
Securities purchased under agreement to resell	277		0		277		(277)		0
Total Assets	$	21,851	$	(20,093)	$	1,758	$	(973)	$	785
Offsetting of Financial Liabilities:
Derivatives	$	32,891	$	(28,141)	$	4,750	$	(4,403)	$	347
Securities sold under agreement to repurchase	6,796		0		6,796		(6,796)		0
Total Liabilities	$	39,687	$	(28,141)	$	11,546	$	(11,199)	$	347

__________

(1)Amounts exclude the excess of collateral received/pledged from/to the counterparty.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, including the offset of the hedged item in fair value hedge relationships.


	Three Months Ended June 30, 2025
	Realized Investment Gains (Losses)		Change in Value of MRBs, Net of Related Hedging Gain (Loss)		Net Investment Income		Other Income (Loss)		Interest Expense		Interest Credited to Policyholders’ Account Balances		Policyholders’ Benefits		Change in AOCI(1)
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Fair value hedges
Gains (losses) on derivatives designated as hedge instruments:
Interest Rate	$	(3)	$	0	$	0	$	0	$	0	$	7	$	(2)	$	0
Currency	0		0		0		0		0		0		109		0
Total gains (losses) on derivatives designated as hedge instruments	(3)		0		0		0		0		7		107		0
Gains (losses) on the hedged item:
Interest Rate	2		0		2		0		0		5		3		0
Currency	0		0		0		0		0		0		(110)		0
Total gains (losses) on hedged item	2		0		2		0		0		5		(107)		0
Amortization for gains (losses) excluded from assessment of the effectiveness

Currency	0		0		0		0		0		0		(3)		(34)
Total amortization for gains (losses) excluded from assessment of the effectiveness	0		0		0		0		0		0		(3)		(34)
Total gains (losses) on fair value hedges net of hedged item	(1)		0		2		0		0		12		(3)		(34)
Cash flow hedges
Interest Rate	0		0		(4)		0		0		0		0		2
Currency	0		0		0		0		0		0		0		(116)
Currency/Interest Rate	(14)		0		93		(344)		0		0		0		(2,142)
Total gains (losses) on cash flow hedges	(14)		0		89		(344)		0		0		0		(2,256)
Net investment hedges
Currency	0		0		0		0		0		0		0		(39)
Currency/Interest Rate	0		0		0		0		0		0		0		0
Total gains (losses) on net investment hedges	0		0		0		0		0		0		0		(39)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(215)		(271)		0		0		0		0		0		0
Currency	(413)		0		0		0		0		0		0		0
Currency/Interest Rate	(343)		0		0		(5)		0		0		0		0
Credit	52		0		0		0		0		0		0		0
Equity	2,484		(592)		0		0		0		0		0		0
Other	0		0		0		0		0		0		0		0
Embedded Derivatives(2)	(2,908)		0		0		0		0		0		0		0
Total gains (losses) on derivatives not qualifying as hedge accounting instruments	(1,343)		(863)		0		(5)		0		0		0		0
Total	$	(1,358)	$	(863)	$	91	$	(349)	$	0	$	12	$	(3)	$	(2,329)


	Six Months Ended June 30, 2025
	Realized Investment Gains (Losses)		Change in Value of MRBs, Net of Related Hedging Gain (Loss)		Net Investment Income		Other Income (Loss)		Interest Expense		Interest Credited to Policyholders’ Account Balances		Policyholders’ Benefits		Change in AOCI(1)
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Fair value hedges
Gains (losses) on derivatives designated as hedge instruments:
Interest Rate	$	(6)	$	0	$	0	$	0	$	0	$	41	$	28	$	0
Currency	0		0		0		0		0		0		162		0
Total gains (losses) on derivatives designated as hedge instruments	(6)		0		0		0		0		41		190		0
Gains (losses) on the hedged item:
Interest Rate	4		0		7		0		0		(43)		(29)		0
Currency	0		0		0		0		0		0		(162)		0
Total gains (losses) on hedged item	4		0		7		0		0		(43)		(191)		0
Amortization for gains (losses) excluded from assessment of the effectiveness

Currency	0		0		0		0		0		0		(7)		(103)
Total amortization for gains (losses) excluded from assessment of the effectiveness	0		0		0		0		0		0		(7)		(103)
Total gains (losses) on fair value hedges net of hedged item	(2)		0		7		0		0		(2)		(8)		(103)
Cash flow hedges
Interest Rate	0		0		(7)		0		0		0		0		10
Currency	0		0		0		0		0		0		0		(142)
Currency/Interest Rate	8		0		189		(491)		0		0		0		(2,245)
Total gains (losses) on cash flow hedges	8		0		182		(491)		0		0		0		(2,377)
Net investment hedges
Currency	0		0		0		0		0		0		0		(55)
Currency/Interest Rate	0		0		0		0		0		0		0		0
Total gains (losses) on net investment hedges	0		0		0		0		0		0		0		(55)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(26)		(130)		0		0		0		0		0		0
Currency	(587)		0		0		(1)		0		0		0		0
Currency/Interest Rate	(370)		0		0		(5)		0		0		0		0
Credit	41		0		0		0		0		0		0		0
Equity	1,015		(390)		0		0		0		0		0		0
Other	0		0		0		0		0		0		0		0
Embedded Derivatives(2)	(1,651)		0		0		0		0		0		0		0
Total gains (losses) on derivatives not qualifying as hedge accounting instruments	(1,578)		(520)		0		(6)		0		0		0		0
Total	$	(1,572)	$	(520)	$	189	$	(497)	$	0	$	(2)	$	(8)	$	(2,535)


	Three Months Ended June 30, 2024
	Realized Investment Gains (Losses)		Change in Value of MRBs, Net of Related Hedging Gain (Loss)		Net Investment Income		Other Income (Loss)		Interest Expense		Interest Credited to Policyholders’ Account Balances		Policyholders’ Benefits		Change in AOCI(1)
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Fair value hedges
Gains (losses) on derivatives designated as hedge instruments:
Interest Rate	$	1	$	0	$	0	$	0	$	0	$	(19)	$	(23)	$	0
Currency	0		0		0		0		0		0		1		0
Total gains (losses) on derivatives designated as hedge instruments	1		0		0		0		0		(19)		(22)		0
Gains (losses) on the hedged item:
Interest Rate	(1)		0		3		0		0		11		15		0
Currency	0		0		0		0		0		0		0		0
Total gains (losses) on hedged item	(1)		0		3		0		0		11		15		0

Amortization for gains (losses) excluded from assessment of the effectiveness
Currency	0		0		0		0		0		0		(3)		(19)
Total amortization for gains (losses) excluded from assessment of the effectiveness	0		0		0		0		0		0		(3)		(19)
Total gains (losses) on fair value hedges net of hedged item	0		0		3		0		0		(8)		(10)		(19)
Cash flow hedges
Interest Rate	(13)		0		(4)		0		0		0		0		11
Currency	0		0		0		0		0		0		0		9
Currency/Interest Rate	25		0		82		8		0		0		0		281
Total gains (losses) on cash flow hedges	12		0		78		8		0		0		0		301
Net investment hedges
Currency	0		0		0		0		0		0		0		2
Currency/Interest Rate	0		0		0		0		0		0		0		0
Total gains (losses) on net investment hedges	0		0		0		0		0		0		0		2
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(371)		(451)		0		0		0		0		0		0
Currency	(13)		0		0		(3)		0		0		0		0
Currency/Interest Rate	66		0		0		0		0		0		0		0
Credit	4		0		0		0		0		0		0		0
Equity	591		(67)		0		0		0		0		0		0
Other	0		0		0		0		0		0		0		0
Embedded Derivatives(2)	435		0		0		0		0		0		0		0
Total gains (losses) on derivatives not qualifying as hedge accounting instruments	712		(518)		0		(3)		0		0		0		0
Total	$	724	$	(518)	$	81	$	5	$	0	$	(8)	$	(10)	$	284


	Six Months Ended June 30, 2024
	Realized Investment Gains (Losses)		Change in Value of MRBs, Net of Related Hedging Gain (Loss)		Net Investment Income		Other Income (Loss)		Interest Expense		Interest Credited to Policyholders’ Account Balances		Policyholders’ Benefits		Change in AOCI(1)
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Fair value hedges
Gains (losses) on derivatives designated as hedge instruments:
Interest Rate	$	6	$	0	$	0	$	0	$	0	$	(69)	$	(82)	$	0
Currency	0		0		0		0		0		0		(15)		0
Total gains (losses) on derivatives designated as hedge instruments	6		0		0		0		0		(69)		(97)		0
Gains (losses) on the hedged item:
Interest Rate	(6)		0		6		0		0		74		63		0
Currency	0		0		0		0		0		0		14		0
Total gains (losses) on hedged item	(6)		0		6		0		0		74		77		0

Amortization for gains (losses) excluded from assessment of the effectiveness
Currency	0		0		0		0		0		0		(5)		(9)
Total amortization for gains (losses) excluded from assessment of the effectiveness	0		0		0		0		0		0		(5)		(9)
Total gains (losses) on fair value hedges net of hedged item	0		0		6		0		0		5		(25)		(9)
Cash flow hedges
Interest Rate	(13)		0		(7)		0		0		0		0		1
Currency	0		0		0		0		0		0		0		24
Currency/Interest Rate	28		0		158		85		0		0		0		605
Total gains (losses) on cash flow hedges	15		0		151		85		0		0		0		630
Net investment hedges
Currency	0		0		0		0		0		0		0		13
Currency/Interest Rate	0		0		0		0		0		0		0		0
Total gains (losses) on net investment hedges	0		0		0		0		0		0		0		13
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(1,033)		(1,412)		0		0		0		0		0		0
Currency	(39)		0		0		(1)		0		0		0		0
Currency/Interest Rate	172		0		0		1		0		0		0		0
Credit	56		0		0		0		0		0		0		0
Equity	2,040		(560)		0		0		0		0		0		0
Other	0		0		0		0		0		0		0		0
Embedded Derivatives(2)	(636)		0		0		0		0		0		0		0
Total gains (losses) on derivatives not qualifying as hedge accounting instruments	560		(1,972)		0		0		0		0		0		0
Total	$	575	$	(1,972)	$	157	$	85	$	0	$	5	$	(25)	$	634

__________

(1)Excludes changes related to net investment hedges using non-derivative instruments of $(37) million and $(88) million for the three and six months ended June 30, 2025, respectively, and $61 million and $101 million for the three and six months ended June 30, 2024, respectively.

(2)Includes the Prismic funds withheld related embedded derivative realized gain (loss) of $11 million and $(136) million for the three and six months ended June 30, 2025, respectively, and $189 million and $472 million for the three and six months ended June 30, 2024, respectively.

Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income (Loss) Before Taxes

Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:


	(in millions)
Balance, December 31, 2024	$	1,780
Amount recorded in AOCI:
Interest Rate	3
Currency	(146)
Currency/Interest Rate	(2,538)
Total amount recorded in AOCI	(2,681)
Amount reclassified from AOCI to income:
Interest Rate	7
Currency	3
Currency/Interest Rate	294
Total amount reclassified from AOCI to income	304
Balance, June 30, 2025	$	(597)

Credit Derivatives

The following tables provide a summary of the notional and fair value of written credit protection, presented as assets (liabilities). The Company’s maximum amount at risk under these credit derivatives, assuming the value of the underlying referenced securities become worthless, is equal to the notional amounts. These credit derivatives have maturities of less than 10 years for index reference.


	June 30, 2025
	NAIC Rating Designation of Underlying Credit Obligation(1)
	NAIC 1				NAIC 2				NAIC 3				NAIC 4				NAIC 5				NAIC 6(2)				Total
	Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value
	(in millions)
Single name reference(3)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Index reference(3)	0		0		0		0		4,053		45		0		0		0		0		626		42		4,679		87
Total	$	0	$	0	$	0	$	0	$	4,053	$	45	$	0	$	0	$	0	$	0	$	626	$	42	$	4,679	$	87


	December 31, 2024
	NAIC Rating Designation of Underlying Credit Obligation(1)
	NAIC 1				NAIC 2				NAIC 3				NAIC 4				NAIC 5				NAIC 6(2)				Total
	Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value		Gross Notional		Fair Value
	(in millions)
Single name reference(3)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Index reference(3)	0		0		0		0		3,365		40		0		0		0		0		662		50		4,027		90
Total	$	0	$	0	$	0	$	0	$	3,365	$	40	$	0	$	0	$	0	$	0	$	662	$	50	$	4,027	$	90

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(1)The NAIC rating designations are based on availability and the lowest ratings among Moody's Investors Service, Inc. (“Moody's”), Standard & Poor’s Rating Services (“S&P”) and Fitch Ratings Inc. (“Fitch”). If no rating is available from a rating agency, a NAIC 6 rating is used.

(2)The NAIC rating designation is due to approximately 4% and 4% of the index reference name rated as NAIC 6 as of June 30, 2025 and December 31, 2024, respectively.

(3)Single name credit default swaps may make reference to the credit of corporate debt, sovereign debt, and structured finance. Index reference NAIC designations are based on the lowest rated single name reference included in the index.

- 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 + Details