v3.24.0.1
Derivatives and Hedge Accounting (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Consolidated Balance Sheets:
December 31, 2023December 31, 2022
Gross Derivative AssetsGross Derivative LiabilitiesGross Derivative AssetsGross Derivative Liabilities
(in millions)Notional
Amount		Fair
Value		Notional
Amount		Fair
Value		Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Derivatives designated as hedging instruments:(a)
Interest rate contracts$1,863 $230 $752 $17 $251 $355 $1,688 $66 
Foreign exchange contracts3,847 416 6,402 336 4,543 642 4,899 317 
Derivatives not designated as hedging instruments:(a)
Interest rate contracts42,549 3,056 42,466 3,614 39,833 3,367 34,128 4,772 
Foreign exchange contracts8,803 820 9,900 558 8,626 1,202 10,397 821 
Equity contracts81,110 2,019 9,595 745 31,264 428 4,740 26 
Commodity contracts— — — — 212 9 20 — 
Credit contracts(b)
2,109 41 509 37 1,808 32 933 41 
Other contracts(c)
44,640 13 48 2 47,184 14 — — 
Total derivatives, gross$184,921 $6,595 $69,672 $5,309 $133,721 $6,049 $56,805 $6,043 
Counterparty netting(d)
(3,864)(3,864)(3,895)(3,895)
Cash collateral(e)
(2,220)(1,050)(1,640)(1,917)
Total derivatives on Consolidated Balance Sheets(f)
$511 $395 $514 $231 
(a)Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.
(b)As of December 31, 2023 and 2022, included CDSs on super senior multi-sector CLO with a net notional amount of $50 million and $79 million (fair value liability of $32 million and $32 million, respectively). The net notional amount represents the maximum exposure to loss on the portfolio.
(c)Consists primarily of stable value wraps and contracts with multiple underlying exposures.
(d)Represents netting of derivative exposures covered by a qualifying master netting agreement.
(e)Represents cash collateral posted and received that is eligible for netting.
(f)Freestanding derivatives only, excludes embedded derivatives. Derivative instrument assets and liabilities are recorded in Other assets and Other liabilities, respectively. Fair value of assets related to bifurcated embedded derivatives was $1.2 billion at December 31, 2023 and $2.2 billion at December 31, 2022. Fair value of liabilities related to bifurcated embedded derivatives was $8.0 billion and $5.4 billion, respectively, at December 31, 2023 and 2022. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in fixed index annuities and index universal life products, which include equity and interest rate components, and the funds withheld arrangement with Fortitude Re. For additional information, see Note 8.
Schedule of Gain (Loss) Recognized in Income on Derivative Instruments in Fair Value Hedging Relationships
The following table presents the gain (loss) recognized in income on our derivative instruments in fair value hedging relationships in the Consolidated Statements of Income (Loss):
Gains/(Losses) Recognized in Income for:
(in millions)
Hedging
Derivatives(a)
Excluded
Components(b)
Hedged
Items		Net Impact
Year Ended December 31, 2023
Interest rate contracts:
Interest credited to policyholder account balances$79 $— $(99)$(20)
Foreign exchange contracts:
Net realized gains/(losses)(422)(11)422 (11)
Year Ended December 31, 2022
Interest rate contracts:
Interest credited to policyholder account balances$(81)$— $83 $2 
Net investment income11 — (12)(1)
Foreign exchange contracts:
Net realized gains/(losses)382 244 (382)244 
Year Ended December 31, 2021
Interest rate contracts:
Interest credited to policyholder account balances$(19)$— $17 $(2)
Net investment income9 — (11)(2)
Foreign exchange contracts:
Net realized gains/(losses)210 139 (210)139 
(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness.
(b)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in income on a mark-to-market basis.
Derivatives Not Designated as Hedging Instruments
The following table presents the effect of derivative instruments not designated as hedging instruments in the Consolidated Statements of Income (Loss):
Years Ended December 31,Gains (Losses) Recognized in Income
(in millions)202320222021
By Derivative Type:
Interest rate contracts$(404)$(2,190)$(573)
Foreign exchange contracts(384)1,149 278 
Equity contracts(142)(497)(736)
Commodity contracts9 (13)(9)
Credit contracts(2)(4)(12)
Other contracts64 100 64 
Embedded derivatives(3,485)8,566 (1,079)
Total$(4,344)$7,111 $(2,067)
By Classification:
Policy fees$64 $63 $61 
Net investment income - excluding Fortitude Re funds withheld assets— 2 5 
Net investment income - Fortitude Re funds withheld assets(11)(10)— 
Net realized gains (losses) - excluding Fortitude Re funds withheld assets(a)
(1,158)1,111 263 
Net realized gains (losses) on Fortitude Re funds withheld assets(b)
(2,112)7,347 (575)
Policyholder benefits and claims incurred— (19)(4)
Change in the fair value of market risk benefits, net(c)
(1,127)(1,383)(1,817)
Total$(4,344)$7,111 $(2,067)
(a)Includes $13 million gain related to the sale of Laya and AIG Life. For further details on these transactions, see Notes 1 and 4.
(b)Includes over-the-counter derivatives supporting the funds withheld arrangements with Fortitude Re and the embedded derivative contained within the funds withheld payable with Fortitude Re.
(c)This represents activity related to derivatives that economically hedged changes in the fair value of certain market risk benefits.