Derivative Instruments Level 3 (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]


GMWB Hedging Instruments
	Successor Company
	Notional Amount			Fair Value
	December 31, 2020	December 31, 2019		December 31, 2020	December 31, 2019
Customized swaps		$	3,938		$	34
Equity swaps, options, and futures		855			(2)
Interest rate swaps and futures		2,189			41
Total		$	6,982		$	73

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]


Successor Company
	Net Derivatives								Asset Derivatives				Liability Derivatives
	Notional Amount				Fair Value				Fair Value				Fair Value
Hedge Designation/ Derivative Type	Dec 31, 2020		Dec 31, 2019		Dec 31, 2020		Dec 31, 2019		Dec 31, 2020		Dec 31, 2019		Dec 31, 2020		Dec 31, 2019
Cash flow hedges

Foreign currency swaps	$	25	$	10	$	(2)	$	—	$	—	$	—	$	(2)	$	—
Total cash flow hedges	25		10		(2)		—		—		—		(2)		—



Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	3,419		3,082		(13)		(39)		28		11		(41)		(50)
Foreign exchange contracts
Foreign currency swaps and forwards	222		225		—		(7)		8		9		(8)		(16)

Credit contracts
Credit derivatives that purchase credit protection	40		40		—		(1)		—		—		—		(1)


Equity contracts
Equity index swaps and options	2,000		2,000		—		—		—		—		—		—
Variable annuity hedge program
GMWB product derivatives [1]	7,803		8,717		21		5		33		23		(12)		(18)
GMWB reinsurance contracts	1,688		1,869		7		17		7		17		—		—
GMWB hedging instruments	—		6,982		—		73		—		89		—		(16)
Macro hedge program	24,188		19,879		(453)		(114)		268		98		(721)		(212)
Other
Modified coinsurance reinsurance contracts	843		819		(93)		(43)		—		—		(93)		(43)
Total non-qualifying strategies	40,203		43,613		(531)		(109)		344		247		(875)		(356)
Total cash flow hedges and non-qualifying strategies	$	40,228	$	43,623	$	(533)	$	(109)	$	344	$	247	$	(877)	$	(356)
Balance Sheet Location
Fixed maturities, available-for-sale	$	49	$	43	$	—	$	—	$	—	$	—	$	—	$	—
Other investments	5,791		5,779		12		72		13		83		(1)		(11)
Other liabilities	24,054		26,396		(480)		(160)		291		124		(771)		(284)
Reinsurance recoverables	2,531		2,688		(86)		(26)		7		17		(93)		(43)
Other policyholder funds and benefits payable	7,803		8,717		21		5		33		23		(12)		(18)
Total derivatives	$	40,228	$	43,623	$	(533)	$	(109)	$	344	$	247	$	(877)	$	(356)

[1] These derivatives are embedded within liabilities and are not held for risk management purposes.

Offsetting Assets [Table Text Block]


Offsetting Derivative Assets and Liabilities (Successor Company)
	(i)		(ii)		(iii) = (i) - (ii)						(v) = (iii) - (iv)
					Net Amounts Presented on the Statement of Financial Position				Collateral Disallowed for Offset on the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset on the Statement of Financial Position		Derivative Assets [1] (Liabilities) [2]		Accrued Interest and Cash Collateral (Received) [3] Pledged [2]		Financial Collateral (Received) Pledged [4]		Net Amount
As of December 31, 2020
Other investments	$	304	$	295	$	12	$	(3)	$	—	$	9
Other liabilities	(772)		(279)		(480)		(13)		(488)		(5)
As of December 31, 2019
Other investments	$	207	$	187	$	72	$	(52)	$	8	$	12
Other liabilities	(295)		(91)		(160)		(44)		(204)		—

[1]Included in other invested assets on the Company's Consolidated Balance Sheets.

[2]Included in other liabilities on the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

[3]Included in other investments on the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

[4]Excludes collateral associated with exchange-traded derivative instruments.

Offsetting Liabilities [Table Text Block]


Repurchase Agreements
	Successor Company
	December 31, 2020		December 31, 2019
	Fair Value		Fair Value




Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	262	$	269
Gross amount of collateral pledged related to repurchase agreements [1]	$	267	$	273
Gross amount of recognized receivables for reverse repurchase agreements [2]	$	28	$	10

[1]Collateral pledged is included within fixed maturities, AFS and short-term investments on the Company's Consolidated Balance Sheets.

[2]Collateral received is included within short-term investments on the Company's Consolidated Balance Sheets.


Offsetting Derivative Assets and Liabilities (Successor Company)
	(i)		(ii)		(iii) = (i) - (ii)						(v) = (iii) - (iv)
					Net Amounts Presented on the Statement of Financial Position				Collateral Disallowed for Offset on the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset on the Statement of Financial Position		Derivative Assets [1] (Liabilities) [2]		Accrued Interest and Cash Collateral (Received) [3] Pledged [2]		Financial Collateral (Received) Pledged [4]		Net Amount
As of December 31, 2020
Other investments	$	304	$	295	$	12	$	(3)	$	—	$	9
Other liabilities	(772)		(279)		(480)		(13)		(488)		(5)
As of December 31, 2019
Other investments	$	207	$	187	$	72	$	(52)	$	8	$	12
Other liabilities	(295)		(91)		(160)		(44)		(204)		—

[1]Included in other invested assets on the Company's Consolidated Balance Sheets.

[2]Included in other liabilities on the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

[3]Included in other investments on the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

[4]Excludes collateral associated with exchange-traded derivative instruments.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]


Derivatives in Cash Flow Hedging Relationships
	Gain (Loss) Recognized in OCI
	Successor Company						Predecessor Company
	For the Years Ended December 31,				June 1, 2018 to December 31, 2018		January 1, 2018 to May 31, 2018
	2020		2019
Interest rate swaps	$	—	$	—	$	—	$	(17)
Foreign currency swaps	(2)		—		—		—
Total	$	(2)	$	—	$	—	$	(17)


Derivatives in Cash Flow Hedging Relationships (Successor Company)
Gain or (Loss) Reclassified from AOCI into Income
	For the Years Ended December 31,								June 1, 2018 to December 31, 2018
	2020				2019
	Net Capital Gain (Loss)		Net Investment Income		Net Capital Gain (Loss)		Net Investment Income		Net Capital Gain (Loss)		Net Investment Income
Interest rate swaps	—		—		—		—		—		—
Foreign currency swaps	—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—
Total Amounts Presented on the Consolidated Statements of Operations	$	(74)	$	816	$	(275)	$	924	$	142	$	509


Derivatives in Cash Flow Hedging Relationships (Predecessor Company)
	Gain or (Loss) Reclassified from AOCI into Income
	January 1, 2018 to May 31, 2018
	Net Capital Gain/(Loss)		Net Investment Income
Interest rate swaps	$	—	$	8
Foreign currency swaps	(2)		—
Total	(2)		8
Total Amounts Presented on the Consolidated Statements of Operations	$	(107)	$	520

Derivative Instruments, Gain (Loss) [Table Text Block]


Non-qualifying Strategies Gain (Loss) Recognized within Net Realized Capital Gains (Losses)
	Successor Company						Predecessor Company
	For the Years Ended December 31,				June 1, 2018 to December 31, 2018		January 1, 2018 to May 31, 2018
	2020		2019
Variable annuity hedge program
GMWB product derivatives	$	67	$	134	$	(25)	$	82
GMWB reinsurance contracts	(27)		(13)		1		(25)
GMWB hedging instruments	42		(68)		36		(45)
Macro hedge program	(414)		(418)		153		(36)
Total variable annuity hedge program	(332)		(365)		165		(24)
Foreign exchange contracts
Foreign currency swaps and forwards	(4)		—		2		(3)
Fixed payout annuity hedge	—		(4)		(15)		10
Total foreign exchange contracts	(4)		(4)		(13)		7
Other non-qualifying derivatives
Interest rate contracts
Interest rate swaps, swaptions, and futures	180		103		23		(40)
Credit contracts
Credit derivatives that purchase credit protection	19		—		—		1
Credit derivatives that assume credit risk	—		7		(1)		(3)
Equity contracts
Equity index swaps and options	—		(1)		—		—


Other

Modified coinsurance reinsurance contracts	(50)		(55)		13		32
Total other non-qualifying derivatives	149		54		35		(10)
Total [1]	$	(187)	$	(315)	$	187	$	(27)

[1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option.

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details

TALCOTT RESOLUTION LIFE INSURANCE CO S-1/A