FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2015

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

June 30, 2015							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting*	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	1	$	2,513	$	-	$	-	$	-	$	2,514
Obligations of states, municipalities and political subdivisions		-		25,482		2,180		-		-		27,662
Non-U.S. governments		648		18,468		33		-		-		19,149
Corporate debt		-		138,745		2,118		-		-		140,863
RMBS		-		19,151		17,097		-		-		36,248
CMBS		-		10,845		2,677		-		-		13,522
CDO/ABS		-		9,037		6,071		-		-		15,108
Total bonds available for sale		649		224,241		30,176		-		-		255,066
Other bond securities:
U.S. government and government sponsored entities		176		3,639		-		-		-		3,815
Obligations of states, municipalities and political subdivisions		-		75		-		-		-		75
Non-U.S. governments		-		2		-		-		-		2
Corporate debt		-		436		16		-		-		452
RMBS		-		873		1,337		-		-		2,210
CMBS		-		644		223		-		-		867
CDO/ABS		-		1,751		7,426		-		-		9,177
Total other bond securities		176		7,420		9,002		-		-		16,598
Equity securities available for sale:
Common stock		3,843		8		-		-		-		3,851
Preferred stock		25		-		-		-		-		25
Mutual funds		877		2		-		-		-		879
Total equity securities available for sale		4,745		10		-		-		-		4,755
Other equity securities		1,301		-		22		-		-		1,323
Mortgage and other loans receivable		-		-		6		-		-		6
Other invested assets		2		4,312		5,075		-		-		9,389
Derivative assets:
Interest rate contracts		6		3,192		11		-		-		3,209
Foreign exchange contracts		-		675		-		-		-		675
Equity contracts		84		10		64		-		-		158
Commodity contracts		-		-		-		-		-		-
Credit contracts		-		-		4		-		-		4
Other contracts		-		-		30		-		-		30
Counterparty netting and cash collateral		-		-		-		(1,594)		(1,226)		(2,820)
Total derivative assets		90		3,877		109		(1,594)		(1,226)		1,256
Short-term investments		1,036		1,245		-		-		-		2,281
Separate account assets		76,833		5,302		-		-		-		82,135
Total	$	84,832	$	246,407	$	44,390	$	(1,594)	$	(1,226)	$	372,809

Liabilities:
Policyholder contract deposits	$	-	$	36	$	1,232	$	-	$	-	$	1,268
Other policyholder funds		-		8		-		-		-		8
Derivative liabilities:
Interest rate contracts		-		2,389		73		-		-		2,462
Foreign exchange contracts		-		1,232		7		-		-		1,239
Equity contracts		-		105		1		-		-		106
Commodity contracts		-		6		-		-		-		6
Credit contracts		-		-		555		-		-		555
Other contracts		-		2		46		-		-		48
Counterparty netting and cash collateral		-		-		-		(1,594)		(1,276)		(2,870)
Total derivative liabilities		-		3,734		682		(1,594)		(1,276)		1,546
Long-term debt		-		4,076		193		-		-		4,269
Other liabilities		120		164		-		-		-		284
Total	$	120	$	8,018	$	2,107	$	(1,594)	$	(1,276)	$	7,375

December 31, 2014							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting*	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	322	$	2,670	$	-	$	-	$	-	$	2,992
Obligations of states, municipalities and political subdivisions		-		25,500		2,159		-		-		27,659
Non-U.S. governments		742		20,323		30		-		-		21,095
Corporate debt		-		142,550		1,883		-		-		144,433
RMBS		-		20,715		16,805		-		-		37,520
CMBS		-		10,189		2,696		-		-		12,885
CDO/ABS		-		7,165		6,110		-		-		13,275
Total bonds available for sale		1,064		229,112		29,683		-		-		259,859
Other bond securities:
U.S. government and government sponsored entities		130		5,368		-		-		-		5,498
Obligations of states, municipalities and political subdivisions		-		122		-		-		-		122
Non-U.S. governments		-		2		-		-		-		2
Corporate debt		-		719		-		-		-		719
RMBS		-		989		1,105		-		-		2,094
CMBS		-		708		369		-		-		1,077
CDO/ABS		-		2,751		7,449		-		-		10,200
Total other bond securities		130		10,659		8,923		-		-		19,712
Equity securities available for sale:
Common stock		3,626		2		1		-		-		3,629
Preferred stock		25		-		-		-		-		25
Mutual funds		738		3		-		-		-		741
Total equity securities available for sale		4,389		5		1		-		-		4,395
Other equity securities		1,024		25		-		-		-		1,049
Mortgage and other loans receivable		-		-		6		-		-		6
Other invested assets		2		3,742		5,650		-		-		9,394

Derivative assets:
Interest rate contracts		2		3,729		12		-		-		3,743
Foreign exchange contracts		-		839		1		-		-		840
Equity contracts		98		58		51		-		-		207
Commodity contracts		-		-		-		-		-		-
Credit contracts		-		-		4		-		-		4
Other contracts		-		-		31		-		-		31
Counterparty netting and cash collateral		-		-		-		(2,102)		(1,119)		(3,221)
Total derivative assets		100		4,626		99		(2,102)		(1,119)		1,604
Short-term investments		584		1,100		-		-		-		1,684
Separate account assets		73,939		6,097		-		-		-		80,036
Total	$	81,232	$	255,366	$	44,362	$	(2,102)	$	(1,119)	$	377,739
Liabilities:
Policyholder contract deposits	$	-	$	52	$	1,509	$	-	$	-	$	1,561
Other policyholder funds		-		8		-		-		-		8
Derivative liabilities:
Interest rate contracts		-		3,047		86		-		-		3,133
Foreign exchange contracts		-		1,482		9		-		-		1,491
Equity contracts		-		98		4		-		-		102
Commodity contracts		-		6		-		-		-		6
Credit contracts		-		-		982		-		-		982
Other contracts		-		-		90		-		-		90
Counterparty netting and cash collateral		-		-		-		(2,102)		(1,429)		(3,531)
Total derivative liabilities		-		4,633		1,171		(2,102)		(1,429)		2,273
Long-term debt		-		5,253		213		-		-		5,466
Other liabilities		34		316		-		-		-		350
Total	$	34	$	10,262	$	2,893	$	(2,102)	$	(1,429)	$	9,658

*Represents netting of derivative exposures covered by a qualifying master netting agreement.

Changes in Level 3 recurring fair value measurements

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Three Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,256	$	-	$	(124)	$	93	$	-	$	(45)	$	2,180	$	-
Non-U.S. governments		34		-		(1)		-		-		-		33		-
Corporate debt		1,827		14		(50)		(85)		412		-		2,118		-
RMBS		17,345		281		(99)		(430)		-		-		17,097		-
CMBS		2,694		22		(40)		17		-		(16)		2,677		-
CDO/ABS		6,453		97		(196)		(283)		-		-		6,071		-
Total bonds available for sale		30,609		414		(510)		(688)		412		(61)		30,176		-
Other bond securities:
Corporate debt		16		-		-		-		-		-		16		-
RMBS		1,288		45		-		16		15		(27)		1,337		31
CMBS		269		8		-		(54)		-		-		223		1
CDO/ABS		7,850		265		-		(688)		-		(1)		7,426		93
Total other bond securities		9,423		318		-		(726)		15		(28)		9,002		125
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		22		-		-		-		-		-		22		-
Mortgage and other loans receivable		6		-		-		-		-		-		6		-
Other invested assets		5,098		81		(38)		(92)		91		(65)		5,075		-
Total	$	45,159	$	815	$	(548)	$	(1,509)	$	518	$	(154)	$	44,281	$	125
Liabilities:
Policyholder contract deposits	$	(1,835)	$	736	$	-	$	(133)	$	-	$	-	$	(1,232)	$	110
Derivative liabilities, net:
Interest rate contracts		(69)		4		-		3		-		-		(62)		3
Foreign exchange contracts		(8)		2		-		(1)		-		-		(7)		1
Equity contracts		66		(2)		-		(1)		-		-		63		(3)
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		(791)		13		-		227		-		-		(551)		22
Other contracts		(59)		59		(2)		(14)		-		-		(16)		33
Total derivative liabilities, net(a)		(861)		76		(2)		214		-		-		(573)		56
Long-term debt(b)		(186)		(13)		-		6		-		-		(193)		(6)
Total	$	(2,882)	$	799	$	(2)	$	87	$	-	$	-	$	(1,998)	$	160

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period(a)		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Six Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,159	$	1	$	(79)	$	158	$	-	$	(59)	$	2,180	$	-
Non-U.S. governments		30		-		(1)		4		-		-		33		-
Corporate debt		1,883		14		(33)		(146)		456		(56)		2,118		-
RMBS		16,805		539		(171)		(76)		-		-		17,097		-
CMBS		2,696		46		(30)		47		-		(82)		2,677		-
CDO/ABS		6,110		130		(167)		119		-		(121)		6,071		-
Total bonds available for sale		29,683		730		(481)		106		456		(318)		30,176		-
Other bond securities:
Corporate debt		-		-		-		-		16		-		16		(1)
RMBS		1,105		26		-		220		44		(58)		1,337		1
CMBS		369		8		-		(154)		-		-		223		8
CDO/ABS		7,449		397		-		(926)		581		(75)		7,426		51
Total other bond securities		8,923		431		-		(860)		641		(133)		9,002		59
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		-		-		-		-		22		-		22		-
Mortgage and other loans receivable		6		-		-		-		-		-		6		-
Other invested assets		5,650		527		(549)		(586)		98		(65)		5,075		-
Total	$	44,263	$	1,690	$	(1,030)	$	(1,343)	$	1,217	$	(516)	$	44,281	$	59
Liabilities:
Policyholder contract deposits	$	(1,509)	$	461	$	-	$	(184)	$	-	$	-	$	(1,232)	$	40
Derivative liabilities, net:
Interest rate contracts		(74)		-		-		12		-		-		(62)		(1)
Foreign exchange contracts		(8)		3		-		(2)		-		-		(7)		3
Equity contracts		47		6		-		10		-		-		63		2
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		(978)		160		-		267		-		-		(551)		50
Other contracts		(59)		73		-		(30)		-		-		(16)		48
Total derivative liabilities, net(a)		(1,072)		242		-		257		-		-		(573)		102
Long-term debt(b)		(213)		2		-		18		-		-		(193)		13
Total	$	(2,794)	$	705	$	-	$	91	$	-	$	-	$	(1,998)	$	155

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Three Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,042	$	-	$	74	$	7	$	-	$	(132)	$	1,991	$	-
Non-U.S. governments		17		-		-		4		4		-		25		-
Corporate debt		1,815		9		33		(71)		707		(297)		2,196		-
RMBS		15,764		251		127		67		119		-		16,328		-
CMBS		5,741		17		129		(7)		69		(32)		5,917		-
CDO/ABS		6,610		18		1		726		103		(27)		7,431		-
Total bonds available for sale		31,989		295		364		726		1,002		(488)		33,888		-
Other bond securities:
RMBS		1,069		23		-		(32)		2		-		1,062		2
CMBS		770		21		-		(40)		6		-		757		19
CDO/ABS		8,498		334		-		(436)		1		-		8,397		122
Total other bond securities		10,337		378		-		(508)		9		-		10,216		143
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Preferred stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Mortgage and other loans receivable		-		-		-		6		-		-		6		-
Other invested assets		5,990		8		(5)		(15)		-		(154)		5,824		-
Total	$	48,316	$	681	$	359	$	209	$	1,011	$	(642)	$	49,934	$	143
Liabilities:
Policyholder contract deposits	$	(765)	$	(58)	$	(16)	$	(3)	$	-	$	-	$	(842)	$	(37)
Derivative liabilities, net:
Interest rate contracts		(98)		8		-		23		-		-		(67)		8
Foreign exchange contracts		-		3		-		(12)		-		-		(9)		3
Equity contracts		88		11		-		(8)		-		-		91		11
Commodity contracts		1		-		-		-		-		-		1		-
Credit contracts		(1,185)		75		-		25		-		-		(1,085)		69
Other contracts		(109)		18		48		(10)		-		-		(53)		16
Total derivatives liabilities, net(a)		(1,303)		115		48		18		-		-		(1,122)		107
Long-term debt(b)		(403)		(5)		-		14		-		-		(394)		(4)
Total	$	(2,471)	$	52	$	32	$	29	$	-	$	-	$	(2,358)	$	66

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Six Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions(c)	$	1,080	$	-	$	191	$	853	$	-	$	(133)	$	1,991	$	-
Non-U.S. governments		16		-		(1)		6		4		-		25		-
Corporate debt		1,255		6		53		(67)		1,355		(406)		2,196		-
RMBS		14,941		495		260		624		119		(111)		16,328		-
CMBS		5,735		23		240		(57)		69		(93)		5,917		-
CDO/ABS		6,974		52		3		734		169		(501)		7,431		-
Total bonds available for sale		30,001		576		746		2,093		1,716		(1,244)		33,888		-
Other bond securities:
RMBS		937		51		-		72		2		-		1,062		17
CMBS		844		38		-		(131)		6		-		757		32
CDO/ABS		8,834		669		-		(887)		1		(220)		8,397		286
Total other bond securities		10,615		758		-		(946)		9		(220)		10,216		335
Equity securities available for sale:
Common stock		1		-		-		-		-		(1)		-		-
Preferred stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		1		-		-		-		-		(1)		-		-
Mortgage and other loans receivable		-		-		-		6		-		-		6		-
Other invested assets		5,930		87		49		34		85		(361)		5,824		-
Total	$	46,547	$	1,421	$	795	$	1,187	$	1,810	$	(1,826)	$	49,934	$	335
Liabilities:
Policyholder contract deposits	$	(312)	$	(532)	$	(24)	$	26	$	-	$	-	$	(842)	$	(120)
Derivative liabilities, net:
Interest rate contracts		(100)		2		-		32		-		(1)		(67)		4
Foreign exchange contracts		-		3		-		(12)		-		-		(9)		4
Equity contracts		49		8		-		(14)		48		-		91		5
Commodity contracts		1		-		-		-		-		-		1		-
Credit contracts		(1,280)		154		-		41		-		-		(1,085)		164
Other contracts		(109)		35		47		(26)		-		-		(53)		27
Total derivatives liabilities, net(a)		(1,439)		202		47		21		48		(1)		(1,122)		204
Long-term debt(b)		(370)		(8)		-		33		(70)		21		(394)		5
Total	$	(2,121)	$	(338)	$	23	$	80	$	(22)	$	20	$	(2,358)	$	89

(a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only.

(b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable.

(c)Purchases, Sales, Issues and Settlements, Net primarily reflect the effect of consolidating previously unconsolidated securitization vehicles.

Schedule of net realized and unrealized gains and losses related to Level 3 items

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended June 30, 2015
Bonds available for sale	$	311	$	10	$	93	$	414
Other bond securities		23		(3)		298		318
Equity securities available for sale		-		2		-		2
Other invested assets		18		(12)		75		81
Policyholder contract deposits		-		736		-		736
Derivative liabilities, net		(19)		(1)		96		76
Long-term debt		-		-		(13)		(13)
Three Months Ended June 30, 2014
Bonds available for sale	$	298	$	(15)	$	12	$	295
Other bond securities		49		1		328		378
Equity securities available for sale		-		-		-		-
Other invested assets		12		(9)		5		8
Policyholder contract deposits		-		(58)		-		(58)
Derivative liabilities, net		16		8		91		115
Long-term debt		-		-		(5)		(5)
Six Months Ended June 30, 2015
Bonds available for sale	$	622	$	1	$	107	$	730
Other bond securities		41		3		387		431
Equity securities available for sale		-		2		-		2
Other invested assets		86		377		64		527
Policyholder contract deposits		-		461		-		461
Derivative liabilities, net		-		5		237		242
Long-term debt		-		-		2		2
Six Months Ended June 30, 2014
Bonds available for sale	$	602	$	(51)	$	25	$	576
Other bond securities		100		2		656		758
Equity securities available for sale		-		-		-		-
Other invested assets		89		(13)		11		87
Policyholder contract deposits		-		(532)		-		(532)
Derivative liabilities, net		31		5		166		202
Long-term debt		-		-		(8)		(8)

Gross components of purchases, sales, issuances and settlements, net

								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net(a)
Three Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	116	$	-	$	(23)	$	93
Non-U.S. governments		2		-		(2)		-
Corporate debt		182		(10)		(257)		(85)

RMBS		446		(143)		(733)		(430)
CMBS		70		-		(53)		17
CDO/ABS		282		(178)		(387)		(283)
Total bonds available for sale		1,098		(331)		(1,455)		(688)
Other bond securities:
RMBS		64		(4)		(44)		16
CMBS		-		(43)		(11)		(54)
CDO/ABS		12		(331)		(369)		(688)
Total other bond securities		76		(378)		(424)		(726)
Equity securities available for sale		-		(2)		(1)		(3)
Other invested assets		64		(1)		(155)		(92)
Total assets	$	1,238	$	(712)	$	(2,035)	$	(1,509)
Liabilities:
Policyholder contract deposits	$	-	$	(112)	$	(21)	$	(133)
Derivative liabilities, net		2		-		212		214
Long-term debt(b)		-		-		6		6
Total liabilities	$	2	$	(112)	$	197	$	87
Three Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	48	$	(27)	$	(14)	$	7
Non-U.S. governments		5		-		(1)		4
Corporate debt		63		(1)		(133)		(71)
RMBS		665		(11)		(587)		67
CMBS		27		-		(34)		(7)
CDO/ABS		892		(2)		(164)		726
Total bonds available for sale		1,700		(41)		(933)		726
Other bond securities:
RMBS		21		(14)		(39)		(32)
CMBS		-		-		(40)		(40)
CDO/ABS		23		(8)		(451)		(436)
Total other bond securities		44		(22)		(530)		(508)
Equity securities available for sale		-		-		-		-
Mortgage and other loans receivable		6		-		-		6
Other invested assets		137		(1)		(151)		(15)
Total assets	$	1,887	$	(64)	$	(1,614)	$	209
Liabilities:
Policyholder contract deposits	$	-	$	(46)	$	43	$	(3)
Derivative liabilities, net		-		-		18		18
Long-term debt(b)		-		-		14		14
Total liabilities	$	-	$	(46)	$	75	$	29
								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net(a)
Six Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	223	$	(22)	$	(43)	$	158
Non-U.S. governments		8		-		(4)		4
Corporate debt		188		(60)		(274)		(146)

RMBS		1,407		(165)		(1,318)		(76)
CMBS		142		(27)		(68)		47
CDO/ABS		861		(201)		(541)		119
Total bonds available for sale		2,829		(475)		(2,248)		106
Other bond securities:
RMBS		309		(10)		(79)		220
CMBS		-		(79)		(75)		(154)
CDO/ABS		226		(371)		(781)		(926)
Total other bond securities		535		(460)		(935)		(860)
Equity securities available for sale		-		(2)		(1)		(3)
Other invested assets		304		(587)		(303)		(586)
Total assets	$	3,668	$	(1,524)	$	(3,487)	$	(1,343)
Liabilities:
Policyholder contract deposits	$	-	$	(185)	$	1	$	(184)
Derivative liabilities, net		17		-		240		257
Long-term debt(b)		-		-		18		18
Total liabilities	$	17	$	(185)	$	259	$	91
Six Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions(c)	$	936	$	(32)	$	(51)	$	853
Non-U.S. governments		7		-		(1)		6
Corporate debt		119		(8)		(178)		(67)
RMBS		1,752		(26)		(1,102)		624
CMBS		92		(57)		(92)		(57)
CDO/ABS		1,222		(2)		(486)		734
Total bonds available for sale		4,128		(125)		(1,910)		2,093
Other bond securities:
RMBS		162		(19)		(71)		72
CMBS		-		(6)		(125)		(131)
CDO/ABS		44		(15)		(916)		(887)
Total other bond securities		206		(40)		(1,112)		(946)
Equity securities available for sale		-		-		-		-
Mortgage and other loans receivable		6		-		-		6
Other invested assets		433		(1)		(398)		34
Total assets	$	4,773	$	(166)	$	(3,420)	$	1,187
Liabilities:
Policyholder contract deposits	$	-	$	(58)	$	84	$	26
Derivative liabilities, net		1		-		20		21
Long-term debt(b)		-		-		33		33
Total liabilities	$	1	$	(58)	$	137	$	80

(a)There were no issuances during thethree- and six-month periods ended June 30,2015 and 2014, respectively.

(b) Includes GIAs, notes, bonds, loans and mortgages payable.

(c) Purchases primarily reflect the effect of consolidating previously unconsolidated securitization vehicles.

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	June 30,		Valuation		Range
(in millions)	2015		Technique	Unobservable Input	(Weighted Average)
Assets:
Obligations of states,	$	1,224	Discounted cash flow	Yield(b)	4.32% - 5.14% (4.73%)
municipalities and
political subdivisions
Corporate debt		1,519	Discounted cash flow	Yield(b)	4.27% - 7.64% (5.96%)
RMBS		17,727	Discounted cash flow	Constant prepayment rate(a)(c)	0.88% - 9.02% (4.95%)
				Loss severity(a)(c)	46.61% - 79.61% (63.11%)
				Constant default rate(a)(c)	3.54% - 8.93% (6.23%)
				Yield(c)	2.93% - 6.27% (4.60%)
CDO/ABS		3,819	Discounted cash flow	Constant prepayment rate(a)(c)	6.70% - 13.10% (9.40%)
				Loss severity(a)(c)	39.90% - 55.20% (47.70%)
				Constant default rate(a)(c)	2.50% - 13.50% (7.30%)
				Yield(c)	4.40% - 8.20% (7.00%)
CMBS		2,638	Discounted cash flow	Yield(b)	0.00% - 17.59% (5.97%)
Liabilities:
Policyholder contract
deposits
GMWB		434	Discounted cash flow	Equity implied volatility(b)	6.00% - 39.00%(d)
				Base lapse rate(b)	1.00% - 40.00%(d)
				Dynamic lapse rate(b)	0.20% - 60.00%(d)
				Mortality rate(b)	0.10% - 35.00%(d)
				Utilization rate(b)	0.50% - 30.00%(d)
Index Annuities		461	Discounted cash flow	Lapse rate	0.75% - 66.00%(d)
				Mortality rate	0.02% - 44.06%(d)
Index Life		285	Discounted cash flow	Equity implied volatility	10.00% to 25.00%(d)
				Base lapse rate	2.00% to 19.00%(d)
				Mortality rate	0.00% to 20.00%(d)
Total derivative
liabilities, net		299	Binomial Expansion	Recovery rate(b)	8.00% - 23.00% (13.00%)
			Technique (BET)	Diversity score(b)	9 - 10 (10)
				Weighted average life(b)	4.51 - 8.44 years (7.06 years)

		Fair Value at
		December 31,	Valuation		Range
(in millions)		2014	Technique	Unobservable Input	(Weighted Average )
Assets:
Obligations of states,	$	1,178	Discounted cash flow	Yield(b)	3.9% - 4.62% (4.26%)
municipalities and
political subdivisions
Corporate debt		1,145	Discounted cash flow	Yield(b)	3.46% - 8.75% (6.10%)
RMBS		17,353	Discounted cash flow	Constant prepayment rate(a)(c)	0.59% - 9.35% (4.97%)
				Loss severity(a)(c)	46.04% - 79.56% (62.80%)
				Constant default rate(a)(c)	3.67% - 9.96% (6.82%)
				Yield(c)	2.67% - 6.64% (4.65%)
CDO/ABS		5,282	Discounted cash flow	Constant prepayment rate(a)(c)	6.40% - 12.80% (9.20%)
				Loss severity(a)(c)	42.90% - 60.30% (51.90%)
				Constant default rate(a)(c)	2.50% - 14.70% (7.80%)
				Yield(c)	4.70% - 9.70% (7.10%)
CMBS		2,687	Discounted cash flow	Yield(b)	0.00% - 17.29% (6.06%)
Liabilities:
Policyholder contract
deposits
GMWB		890	Discounted cash flow	Equity implied volatility(b)	6.00% - 39.00%(d)
				Base lapse rate(b)	1.00% - 40.00%(d)
				Dynamic lapse rate(b)	0.20% - 60.00%(d)
				Mortality rate(b)	0.10% - 35.00%(d)
				Utilization rate(b)	0.50% - 30.00%(d)
Index Annuities		294	Discounted cash flow	Lapse rate	0.75% - 66.00%(d)
				Mortality rate	0.02% - 44.06%(d)
Index Life		259	Discounted cash flow	Equity implied volatility	10.00% to 25.00%(d)
				Base lapse rate	2.00% to 19.00%(d)
				Mortality rate	0.00% to 20.00%(d)
Total derivative
liabilities, net		791	BET	Recovery rate(b)	5.00% - 23.00% (13.00%)
				Diversity score(b)	8 - 25 (13)
				Weighted average life(b)	2.67 - 10.49 years (4.65 years)

(a)The unobservable inputs and ranges for the constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us because there are other factors relevant to the fair values of specific tranches owned by us including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points.

(b) Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities.

(c) Information received from independent third-party valuation service providers.

(d)Represents actual maximum and minimum, not weighted average rates.

Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share

		June 30, 2015				December 31, 2014
			Fair Value Using Net Asset Value Per Share (or its equivalent)				Fair Value Using Net Asset Value Per Share (or its equivalent)
					Unfunded				Unfunded
(in millions)	Investment Category Includes				Commitments				Commitments
Investment Category
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	2,008	$	446	$	2,275	$	450
Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		359		203		384		227
Venture capital	Early-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company		119		34		121		26
Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		157		43		164		43
Other	Includes multi-strategy, mezzanine and other strategies		259		213		216		234
Total private equity funds			2,902		939		3,160		980
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		1,288		-		1,109		-
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		2,880		16		2,428		1
Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		562		-		498		-
Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		753		15		731		5
Emerging markets	Investments in the financial markets of developing countries		347		-		308		-
Other	Includes multi-strategy, relative value and other strategies		182		-		125		-
Total hedge funds			6,012		31		5,199		6
Total		$	8,914	$	970	$	8,359	$	986

Gains or losses related to the eligible instruments for which AIG elected the fair value option

	Gain (Loss) Three Months Ended June 30,				Gain (Loss) Six Months Ended June 30,
(in millions)		2015		2014		2015		2014
Assets:
Bond and equity securities	$	460	$	611	$	601	$	1,277
Alternative Investments(a)		118		18		263		172
Other, including Short-term investments		-		2		2		5
Liabilities:
Long-term debt(b)		131		(135)		55		(209)
Other liabilities		-		(2)		(3)		(6)
Total gain	$	709	$	494	$	918	$	1,239

(a)Includes hedge funds, private equity funds and other investment partnerships.

(b)Includes GIAs, notes, bonds, loans and mortgages payable.

Difference between fair values and aggregate contractual principal amounts, fair value option

	June 30, 2015						December 31, 2014
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	6	$	4	$	2	$	6	$	4	$	2
Liabilities:
Long-term debt*	$	4,269	$	3,173	$	1,096	$	5,466	$	4,101	$	1,365

* Includes GIAs, notes, bonds, loans and mortgages payable.

Fair value assets measured on nonrecurring basis and impairment charges

	Assets at Fair Value								Impairment Charges
	Non-Recurring Basis								Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	Level 1		Level 2		Level 3			Total		2015		2014		2015		2014
June 30, 2015
Other investments	$	-	$	-	$	1,000	$	1,000	$	27	$	20	$	52	$	55
Investments in life settlements		-		-		501		501		72		45		142		87
Other assets		-		-		12		12		4		-		8		1
Total	$	-	$	-	$	1,513	$	1,513	$	103	$	65	$	202	$	143
December 31, 2014
Other investments	$	-	$	-	$	790	$	790
Investments in life settlements		-		-		537		537
Other assets		-		-		1		1
Total	$	-	$	-	$	1,328	$	1,328

Carrying value and estimated fair value of AIG's financial instruments

	Estimated Fair Value									Carrying
(in millions)		Level 1		Level 2		Level 3		Total		Value
June 30, 2015
Assets:
Mortgage and other loans receivable	$	-	$	376	$	27,931	$	28,307	$	27,137
Other invested assets		-		523		2,983		3,506		4,338
Short-term investments		-		11,584		-		11,584		11,584
Cash		1,937		-		-		1,937		1,937
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		268		116,875		117,143		106,864
Other liabilities		-		899		-		899		899
Long-term debt		-		23,593		3,674		27,267		26,091
December 31, 2014
Assets:
Mortgage and other loans receivable	$	-	$	449	$	26,157	$	26,606	$	24,984
Other invested assets		-		593		2,882		3,475		4,352
Short-term investments		-		9,559		-		9,559		9,559
Cash		1,758		-		-		1,758		1,758
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		244		119,268		119,512		106,395
Other liabilities		-		1,120		-		1,120		1,120
Long-term debt		-		24,749		2,932		27,681		25,751