Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional amounts and fair values of derivatives were as follows as of the dates indicated:


	June 30, 2025						December 31, 2024
	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting(1)
Fair value hedges(2):
Interest rate contracts(3)	$	—	$	—	$	—	$	—	$	—	$	—
Foreign exchange contracts	110		—		4		106		6		—
Cash flow hedges:
Interest rate contracts	11		—		—		11		—		—
Foreign exchange contracts	577		11		25		623		46		2
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts	14,717		177		271		14,633		246		313
Foreign exchange contracts	228		4		5		203		3		6
Equity contracts	284		7		1		286		2		9
Credit contracts	137		—		3		97		—		2
Embedded derivatives and Managed custody guarantees ("MCGs"):
Within fixed maturity investments(4)	N/A		3		—		N/A		—		4

Within reinsurance agreements(5)	N/A		62		32		N/A		55		41

MCGs(6)	N/A		—		3		N/A		—		4
Stabilizer(6)	N/A		—		10		N/A		—		15
Total			$	264	$	354			$	358	$	396

(1) Open derivative contracts are reported as Derivatives assets or liabilities at fair value on the Condensed Consolidated Balance Sheets.

(2) Total carrying amount of hedged assets and liabilities was $320 and $307 as of June 30, 2025 and December 31, 2024, respectively.

(3) Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged assets and liabilities was $5 and $(8) as of June 30, 2025 and December 31, 2024, respectively, of which includes $2 of hedging adjustments on discontinued hedging relationships.

(4) Included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets.

(5) Included in Other liabilities, Other assets and Premium receivable and reinsurance recoverable on the Condensed Consolidated Balance Sheets.

(6) Included in Contract owner account balances on the Condensed Consolidated Balance Sheets.

N/A - Not applicable

Offsetting Assets and Liabilities

The Company does not offset any derivative assets and liabilities in the Condensed Consolidated Balance Sheets. The disclosures set out in the table below include the fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts subject to master netting agreements or similar agreements as of the dates indicated:


	Gross Amount Recognized		Counterparty Netting(1)		Cash Collateral Netting(1)		Securities Collateral Netting(1)		Net Receivables/ Payables
June 30, 2025
Derivative assets	$	199	$	(185)	$	(9)	$	—	$	5
Derivative liabilities	309		(185)		(106)		(14)		4

December 31, 2024
Derivative assets	303		(261)		(34)		(3)		5
Derivative liabilities	332		(261)		(58)		(6)		7

(1) Represents the netting of receivable with payable balances, net of collateral, for the same counterparty under eligible netting agreements.

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

The location and effect of derivatives qualifying for hedge accounting on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income were as follows for the periods indicated:


	2025				2024
	Interest Rate Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Foreign Exchange Contracts
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Net investment income		Net investment income and Net gains (losses)		Net investment income		Net investment income and Net gains (losses)
Three Months Ended June 30,
Amount of Gain (Loss) Recognized in Other Comprehensive Income(1)	$	—	$	(41)	$	—	$	3
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	—		1		—		3

Six Months Ended June 30,
Amount of Gain (Loss) Recognized in Other Comprehensive Income(1)	$	—	$	(57)	$	—	$	11
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	—		3		—		6

(1) See the Accumulated Other Comprehensive Income (Loss) Note to these Condensed Consolidated Financial Statements for additional information.

The location and amount of gain (loss) recognized in the Condensed Consolidated Statements of Operations for derivatives qualifying for hedge accounting were as follows for the periods indicated:


	2025				2024
	Net investment income		Net gains (losses)		Net investment income		Net gains (losses)
Three Months Ended June 30,
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded	$	584	$	(41)	$	518	$	(4)
Fair value hedges:
Interest rate contracts:
Hedged items	—		—		—		1
Derivatives designated as hedging instruments	—		—		—		(1)
Foreign exchange contracts:
Hedged items	—		9		—		—
Derivatives designated as hedging instruments(1)	—		(9)		—		1
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	1		—		2		1

Six Months Ended June 30,
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded	$	1,144	$	(75)	$	1,047	$	39
Fair value hedges:
Interest rate contracts:
Hedged items	—		—		—		1
Derivatives designated as hedging instruments	—		—		—		(1)
Foreign exchange contracts:
Hedged items	—		13		—		(2)
Derivatives designated as hedging instruments(1)	—		(13)		—		4
Cash flow hedges:


Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	3		—		5		1

(1) The change in derivative instruments designated and qualifying as fair value hedges of $1 were excluded from the assessment of hedge effectiveness and recognized currently in earnings for the three and six months ended June 30, 2025. An immaterial change in derivative instruments designated and qualifying as fair value hedges was excluded from the assessment of hedge effectiveness and recognized currently in earnings for the three months ended June 30, 2024. The change in derivative instruments designated and qualifying as fair value hedges of $1 was excluded from the assessment of hedge effectiveness and recognized currently in earnings for the six months ended June 30, 2024.

The location and effect of derivatives not designated as hedging instruments on the Condensed Consolidated Statements of Operations were as follows for the periods indicated:


	Location of Gain (Loss) Recognized on Derivative	Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Net gains (losses)	$	(30)	$	39	$	(77)	$	165
Foreign exchange contracts	Net gains (losses)	—		(1)		5		(3)
Equity contracts	Net gains (losses)	14		1		7		11
Credit contracts	Net gains (losses)	(1)		—		(1)		(1)
Embedded derivatives and MCGs:
Within fixed maturity investments	Net gains (losses)	3		(1)		7		(2)
Within reinsurance agreements(1)	(2)	—		4		5		4

MCGs	Net gains (losses)	2		(1)		1		—
Stabilizer	Net gains (losses)	1		(1)		5		(1)
Total		$	(11)	$	40	$	(48)	$	173

(1) For the three and six months ended June 30, 2025, the amount excluded gains (losses) of $10 and $11, respectively, from standalone derivatives recognized in Net gains (losses). For the three months ended June 30, 2024, the amount excluded immaterial gains (losses) from standalone derivatives recognized in Net gains (losses). For the six months ended June 30, 2024, the amount excluded gains (losses) of $1 from standalone derivatives recognized in Net gains (losses).