Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred

  


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|  | Six Months Ended June 30, |
|  | 2022 | 2021 |
| (In millions) | Net Investment Income(1) | Net Investment Gains (Losses) | OtherComprehensive Income (Loss)(2) | Net Investment Income(1) | Net InvestmentGains (Losses) | OtherComprehensive Income (Loss)(2) |
| Qualifying hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|        Foreign currency swaps - VIE |  | $ | 0  |  |  |  | $ | (2) |  |  |  | $ | 1  |  |  |  | $ | 0  |  |  |  | $ | (2) |  |  |  | $ | 1  |  |  |
|   Total cash flow hedges |  | 0  |  |  |  | (2) |  | (3) |  | 1  |  |  |  | 0  |  |  |  | (2) |  | (3) |  | 1  |  |  |
|   Fair value hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|        Foreign currency options(3) |  |  |  |  | (26) |  |  |  |  |  |  |  |  |  | (7) |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   Total fair value hedges |  | 0  |  |  |  | (26) |  |  |  | 0  |  |  |  | 0  |  |  |  | (7) |  |  |  | 0  |  |  |
|   Net investment hedge: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|        Non-derivative hedging          instruments |  |  |  |  | 0  |  |  |  | 523  |  |  |  |  |  |  | 0  |  |  |  | 196  |  |  |
|        Foreign currency forwards |  |  |  |  | (101) |  |  |  | 823  |  |  |  |  |  |  | 49  |  |  |  | 341  |  |  |
|        Foreign currency options  |  |  |  |  | (1) |  |  |  | 0  |  |  |  |  |  |  | (3) |  |  |  | 0  |  |  |
|   Total net investment hedge |  |  |  |  | (102) |  |  |  | 1,346  |  |  |  |  |  |  | 46  |  |  |  | 537  |  |  |
|   Non-qualifying strategies: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|        Foreign currency swaps |  |  |  |  | 135  |  |  |  |  |  |  |  |  |  | 99  |  |  |  |  |  |
|        Foreign currency swaps - VIE |  |  |  |  | (16) |  |  |  |  |  |  |  |  |  | (79) |  |  |  |  |  |
|        Foreign currency forwards |  |  |  |  | (714) |  |  |  |  |  |  |  |  |  | (443) |  |  |  |  |  |
|        Foreign currency options  |  |  |  |  | (13) |  |  |  |  |  |  |  |  |  | 1  |  |  |  |  |  |
|        Interest rate swaps |  |  |  |  | (266) |  |  |  |  |  |  |  |  |  | 3  |  |  |  |  |  |
| Forward bond purchase   commitment - VIE |  |  |  |  | (20) |  |  |  |  |  |  |  |  |  | (1) |  |  |  |  |  |
|   Total non-qualifying strategies |  |  |  |  | (894) |  |  |  |  |  |  |  |  |  | (420) |  |  |  |  |  |
|           Total |  | $ | 0  |  |  |  | $ | (1,024) |  |  |  | $ | 1,347  |  |  |  | $ | 0  |  |  |  | $ | (383) |  |  |  | $ | 538  |  |  |

(1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items.(2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).(3) Impact of cash flow hedges reported as net investment gains (losses) includes $1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the six-month period ended June 30, 2022, and $2 of losses during the six-month period ended June 30, 2021. In addition, an immaterial amount of losses were reclassified from accumulated other comprehensive income (loss) into earnings during the six-month periods ended June 30, 2022 and 2021, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail).  
As of June 30, 2022, $5 million of deferred losses on derivative instruments recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next twelve months.  
Credit Risk Assumed through Derivatives   
For the foreign currency swaps associated with the Company's VIE investments for which it is the primary beneficiary, the Company bears the risk of loss due to counterparty default even though it is not a direct counterparty to those contracts.   
The Company is a direct counterparty to the foreign currency swaps that it has entered into in connection with certain of its senior notes and subordinated debentures; foreign currency forwards; and foreign currency options, and therefore the Company is exposed to credit risk in the event of nonperformance by the counterparties in those contracts. The risk of counterparty default for the Company's foreign currency swaps, certain foreign currency forwards, and foreign currency options is mitigated by collateral posting requirements that counterparties to those transactions must meet.   
As of June 30, 2022, all of the Company's derivative agreement counterparties were investment grade.   
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