The Company uses a variety of derivative instruments to manage risks, primarily equity, interest rate, credit, foreign currency and market volatility. See note 2 for a description of our accounting policies for derivatives and note 8 for information about the fair value hierarchy for derivatives.


	December 31, 2023					December 31, 2022
	Notional Amount	Fair Value				Notional Amount	Fair Value
(In millions)		Assets		Liabilities			Assets		Liabilities
Derivatives designated as hedges
Foreign currency hedges
Swaps	9,034	$	477	$	230	6,677	$	747	$	154
Forwards	6,294	275		102		6,283	406		52
Interest rate swaps	4,468	—		521		4,468	—		803
Forwards on net investments	219	—		6		216	2		—
Interest rate swaps	10,031	29		95		9,332	9		150
Total derivatives designated as hedges		781		954			1,164		1,159
Derivatives not designated as hedges
Equity options	73,881	3,809		102		65,089	1,374		114
Futures	35	72		—		18	33		—
Foreign currency swaps	8,072	230		244		3,563	251		112
Interest rate swaps	3,499	81		9		488	74		—
Other swaps	2,588	39		1		89	—		4
Foreign currency forwards	28,236	286		685		16,376	413		257
Embedded derivatives
Funds withheld, including related parties		(4,100)		(64)			(6,272)		(77)
Interest sensitive contract liabilities		—		9,059			—		5,841
Total derivatives not designated as hedges		417		10,036			(4,127)		6,251
Total derivatives		$	1,198	$	10,990		$	(2,963)	$	7,410

Athene uses interest rate swaps to convert floating-rate interest payments to fixed-rate interest payments to reduce exposure to interest rate changes. The interest rate swaps will expire by July 2027. During the years ended December 31, 2023 and 2022, Athene recognized gains of $33 million and losses of $106 million, respectively, in OCI associated with these hedges. There were no amounts deemed ineffective during the years ended December 31, 2023 and 2022. As of December 31, 2023, no amounts are expected to be reclassified to income within the next 12 months.

Athene uses foreign currency forward contracts, foreign currency swaps, foreign currency interest rate swaps, and interest rate swaps that are designated and accounted for as fair value hedges to hedge certain exposures to foreign currency risk and interest rate risk. The foreign currency forward price is agreed upon at the time of the contract and payment is made at a specified future date.


	December 31, 2023				December 31, 2022
(In millions)	Carrying amount of the hedged assets or liabilities1		Cumulative amount of fair value hedging gains (losses)		Carrying amount of the hedged assets or liabilities1		Cumulative amount of fair value hedging gains (losses)
AFS securities
Foreign currency forwards	$	4,883	$	(15)	$	5,259	$	(217)
Foreign currency swaps	6,820		(141)		4,797		(398)
Interest sensitive contract liabilities
Foreign currency swaps	1,438		19		1,081		88
Foreign currency interest rate swaps	4,010		363		4,348		632
Interest rate swaps	6,910		189		6,577		323

1 The carrying amount disclosed for AFS securities is amortized cost.


							Amount Excluded
(In millions)	Derivatives		Hedged Items		Net		Recognized in income through amortization approach		Recognized in income through changes in fair value
Year ended December 31, 2023
Investment related gains (losses)
Foreign currency forwards	$	(169)	$	167	$	(2)	$	82	$	20
Foreign currency swaps	(159)		169		10		—		—
Foreign currency interest rate swaps	282		(269)		13		—		—
Interest rate swaps	111		(118)		(7)		—		—
Interest sensitive contract benefits
Foreign currency interest rate swaps	57		(60)		(3)		—		—
Year ended December 31, 2022
Investment related gains (losses)
Foreign currency forwards	$	183	$	(190)	$	(7)	$	67	$	9
Foreign currency swaps	286		(310)		(24)		—		—
Foreign currency interest rate swaps	(622)		632		10		—		—
Interest rate swaps	(332)		323		(9)		—		—
Interest sensitive contract benefits
Foreign currency interest rate swaps	52		(53)		(1)		—		—

Athene uses foreign currency forwards to hedge the foreign currency exchange rate risk of its investments in subsidiaries that have a reporting currency other than the U.S. dollar. Hedge effectiveness is assessed based on the changes in forward rates. During the years ended December 31, 2023 and 2022, these derivatives had losses of $4 million and gains of $30 million, respectively. These derivatives are included in foreign currency translation and other adjustments on the consolidated statements of comprehensive income (loss). As of December 31, 2023 and 2022, the cumulative foreign currency translations recorded in AOCI related to these net investment hedges were gains of $26 million and $30 million, respectively. During the years ended December 31, 2023 and 2022, there were no amounts deemed ineffective.

Athene uses equity indexed options to economically hedge fixed indexed annuity products that guarantee the return of principal to the policyholder and credit interest based on a percentage of the gain in a specified market index, primarily the S&P 500. To hedge against adverse changes in equity indices, Athene enters into contracts to buy equity indexed options. The contracts are net settled in cash based on differentials in the indices at the time of exercise and the strike price.

Athene purchases futures contracts to hedge the growth in interest credited to the customer as a direct result of increases in the related indices. Athene enters into exchange-traded futures with regulated futures commission clearing brokers who are members of a trading exchange. Under exchange-traded futures contracts, Athene agrees to purchase a specified number of contracts with other parties and to post variation margin on a daily basis in an amount equal to the difference in the daily fair values of those contracts.

Athene uses interest rate swaps to reduce market risks from interest rate changes and to alter interest rate exposure arising from duration mismatches between assets and liabilities. With an interest rate swap, Athene agrees with another party to exchange the difference between fixed-rate and floating-rate interest amounts tied to an agreed upon notional principal amount at specified intervals.

Other swaps include total return swaps, credit default swaps and swaptions. Athene purchases total rate of return swaps to gain exposure and benefit from a reference asset or index without ownership. Credit default swaps provide a measure of protection against the default of an issuer or allow us to gain credit exposure to an issuer or traded index. Athene uses credit default swaps coupled with a bond to synthetically create the characteristics of a reference bond.


	Years ended December 31,
(In millions)	2023		2022
Equity options	$	1,564	$	(2,647)
Futures	73		(144)
Swaps	(108)		56
Foreign currency forwards	(495)		505
Embedded derivatives on funds withheld	934		(6,534)
Amounts recognized in investment related gains (losses)	1,968		(8,764)
Embedded derivatives in indexed annuity products1	(1,443)		2,768
Total gains (losses) on derivatives not designated as hedges	$	525	$	(5,996)

1 Included in interest sensitive contract benefits on the consolidated statements of operations.

The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative financial instruments. Generally, the current credit exposure of Athene’s derivative contracts is the fair value at the reporting date less any collateral received from the counterparty.

Athene manages credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties. Where possible, Athene maintains collateral arrangements and uses master netting agreements that provide for a single net payment from one counterparty to another at each due date and upon termination. Athene has also established counterparty exposure limits, where possible, in order to evaluate if there is sufficient collateral to support the net exposure.


			Gross amounts not offset on the consolidated statements of financial condition
(In millions)	Gross amount recognized1		Financial instruments2		Collateral (received)/pledged		Net amount		Off-balance sheet securities collateral3		Net amount after securities collateral
December 31, 2023
Derivative assets	$	5,298	$	(1,497)	$	(3,676)	$	125	$	—	$	125
Derivative liabilities	(1,995)		1,497		848		350		—		350

December 31, 2022
Derivative assets	$	3,309	$	(1,477)	$	(1,952)	$	(120)	$	—	$	(120)
Derivative liabilities	(1,646)		1,477		478		309		—		309

1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the consolidated statements of financial condition. As of December 31, 2023 and 2022, amounts not subject to master netting or similar agreements were immaterial.
2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the consolidated statements of financial condition.
3 For non-cash collateral received, the Company does not recognize the collateral on the consolidated statements of financial condition unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received.