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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Assets and liabilities measured at fair value on a recurring basis

March 31, 2016							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(b)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	7	$	2,034	$	-	$	-	$	-	$	2,041
Obligations of states, municipalities and political subdivisions		-		25,562		2,196		-		-		27,758
Non-U.S. governments		708		17,877		30		-		-		18,615
Corporate debt		-		137,924		1,024		-		-		138,948
RMBS		-		20,060		16,162		-		-		36,222
CMBS		-		12,069		2,368		-		-		14,437
CDO/ABS		-		9,172		6,592		-		-		15,764
Total bonds available for sale		715		224,698		28,372		-		-		253,785
Other bond securities:
U.S. government and government sponsored entities		30		3,373		-		-		-		3,403
Obligations of states, municipalities and political subdivisions		-		-		-		-		-		-
Non-U.S. governments		-		53		-		-		-		53
Corporate debt		-		1,861		18		-		-		1,879
RMBS		-		440		1,513		-		-		1,953
CMBS		-		517		170		-		-		687
CDO/ABS		-		793		6,576		-		-		7,369
Total other bond securities		30		7,037		8,277		-		-		15,344
Equity securities available for sale:
Common stock		2,274		-		-		-		-		2,274
Preferred stock		23		-		-		-		-		23
Mutual funds		471		2		-		-		-		473
Total equity securities available for sale		2,768		2		-		-		-		2,770
Other equity securities		862		-		15		-		-		877
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		1		32		263		-		-		296
Derivative assets:
Interest rate contracts		-		4,391		14		-		-		4,405
Foreign exchange contracts		-		877		-		-		-		877
Equity contracts		123		69		51		-		-		243
Commodity contracts		-		-		-		-		-		-
Credit contracts		-		-		3		-		-		3
Other contracts		-		1		21		-		-		22
Counterparty netting and cash collateral		-		-		-		(2,023)		(2,036)		(4,059)
Total derivative assets		123		5,338		89		(2,023)		(2,036)		1,491
Short-term investments		1,367		1,101		-		-		-		2,468
Separate account assets		74,470		5,062		-		-		-		79,532
Total	$	80,336	$	243,270	$	37,027	$	(2,023)	$	(2,036)	$	356,574
Liabilities:
Policyholder contract deposits	$	-	$	39	$	3,251	$	-	$	-	$	3,290
Other policyholder funds		6		-		-		-		-		6
Derivative liabilities:
Interest rate contracts		-		3,048		62		-		-		3,110
Foreign exchange contracts		4		1,371		9		-		-		1,384
Equity contracts		-		30		-		-		-		30
Commodity contracts		-		-		-		-		-		-
Credit contracts		-		-		493		-		-		493
Other contracts		-		-		142		-		-		142
Counterparty netting and cash collateral		-		-		-		(2,023)		(992)		(3,015)
Total derivative liabilities		4		4,449		706		(2,023)		(992)		2,144
Long-term debt		-		3,718		184		-		-		3,902
Other liabilities		134		41		-		-		-		175
Total	$	144	$	8,247	$	4,141	$	(2,023)	$	(992)	$	9,517

December 31, 2015							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(b)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	-	$	1,844	$	-	$	-	$	-	$	1,844
Obligations of states, municipalities and political subdivisions		-		25,199		2,124		-		-		27,323
Non-U.S. governments		683		17,480		32		-		-		18,195
Corporate debt		-		134,618		1,370		-		-		135,988
RMBS		-		19,690		16,537		-		-		36,227
CMBS		-		10,986		2,585		-		-		13,571
CDO/ABS		-		8,928		6,169		-		-		15,097
Total bonds available for sale		683		218,745		28,817		-		-		248,245
Other bond securities:
U.S. government and government sponsored entities		-		3,369		-		-		-		3,369
Obligations of states, municipalities and political subdivisions		-		75		-		-		-		75
Non-U.S. governments		-		50		-		-		-		50
Corporate debt		-		2,018		17		-		-		2,035
RMBS		-		649		1,581		-		-		2,230
CMBS		-		557		193		-		-		750
CDO/ABS		-		1,218		7,055		-		-		8,273
Total other bond securities		-		7,936		8,846		-		-		16,782
Equity securities available for sale:
Common stock		2,401		-		-		-		-		2,401
Preferred stock		22		-		-		-		-		22
Mutual funds		491		1		-		-		-		492
Total equity securities available for sale		2,914		1		-		-		-		2,915
Other equity securities		906		1		14		-		-		921
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		2		1		332		-		-		335
Derivative assets:
Interest rate contracts		-		3,150		12		-		-		3,162
Foreign exchange contracts		-		766		-		-		-		766
Equity contracts		91		32		54		-		-		177
Commodity contracts		-		-		-		-		-		-
Credit contracts		-		-		3		-		-		3
Other contracts		-		2		21		-		-		23
Counterparty netting and cash collateral		-		-		-		(1,268)		(1,554)		(2,822)
Total derivative assets		91		3,950		90		(1,268)		(1,554)		1,309
Short-term investments		1,416		1,175		-		-		-		2,591
Separate account assets		73,699		5,875		-		-		-		79,574
Total	$	79,711	$	237,684	$	38,110	$	(1,268)	$	(1,554)	$	352,683
Liabilities:
Policyholder contract deposits	$	-	$	36	$	2,289	$	-	$	-	$	2,325
Other policyholder funds		6		-		-		-		-		6
Derivative liabilities:
Interest rate contracts		-		2,137		62		-		-		2,199
Foreign exchange contracts		-		1,197		7		-		-		1,204
Equity contracts		-		68		-		-		-		68
Commodity contracts		-		-		-		-		-		-
Credit contracts		-		-		508		-		-		508
Other contracts		-		-		69		-		-		69
Counterparty netting and cash collateral		-		-		-		(1,268)		(760)		(2,028)
Total derivative liabilities		-		3,402		646		(1,268)		(760)		2,020
Long-term debt		-		3,487		183		-		-		3,670
Other liabilities		-		62		-		-		-		62
Total	$	6	$	6,987	$	3,118	$	(1,268)	$	(760)	$	8,083

(a) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $7.7 billion and $8.6 billion as of March 31, 2016 and December 31, 2015, respectively.

(b) Represents netting of derivative exposures covered by qualifying master netting agreements.

Changes in Level 3 recurring fair value measurements (Assets)

				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 March 31, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,124	$	-	$	58	$	14	$	-	$	-	$	2,196	$	-
Non-U.S. governments		32		-		(2)		-		-		-		30		-
Corporate debt		1,370		1		(24)		29		121		(473)		1,024		-
RMBS		16,537		245		(420)		(233)		33		-		16,162		-
CMBS		2,585		42		(88)		(81)		-		(90)		2,368		-
CDO/ABS		6,169		12		(50)		438		23		-		6,592		-
Total bonds available for sale		28,817		300		(526)		167		177		(563)		28,372		-
Other bond securities:
Corporate debt		17		1		-		-		-		-		18		1
RMBS		1,581		(37)		-		(13)		-		(18)		1,513		(45)
CMBS		193		(2)		-		(21)		-		-		170		(2)
CDO/ABS		7,055		(133)		-		(411)		65		-		6,576		(306)
Total other bond securities		8,846		(171)		-		(445)		65		(18)		8,277		(352)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		14		1		-		-		-		-		15		1
Mortgage and other loans receivable		11		-		-		-		-		-		11		-
Other invested assets		332		11		(5)		(21)		-		(54)		263		(1)
Total	$	38,020	$	141	$	(531)	$	(299)	$	242	$	(635)	$	36,938	$	(352)

				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 March 31, 2016
Liabilities:
Policyholder contract deposits	$	2,289	$	845	$	-	$	117	$	-	$	-	$	3,251	$	22
Derivative liabilities, net:
Interest rate contracts		50		4		-		(6)		-		-		48		(4)
Foreign exchange contracts		7		1		-		1		-		-		9		(1)
Equity contracts		(54)		4		-		(1)		-		-		(51)		(4)
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		505		(6)		-		(9)		-		-		490		14
Other contracts		48		54		-		19		-		-		121		(54)
Total derivative liabilities, net^(a)		556		57		-		4		-		-		617		(49)
Long-term debt^(b)		183		2		-		(1)		-		-		184		(2)
Total	$	3,028	$	904	$	-	$	120	$	-	$	-	$	4,052	$	(29)

				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 March 31, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,159	$	1	$	45	$	65	$	-	$	(14)	$	2,256	$	-
Non-U.S. governments		30		-		-		4		-		-		34		-
Corporate debt		1,883		-		17		(61)		44		(56)		1,827		-
RMBS		16,805		258		(72)		354		-		-		17,345		-
CMBS		2,696		24		10		30		-		(66)		2,694		-
CDO/ABS		6,110		33		29		402		-		(121)		6,453		-
Total bonds available for sale		29,683		316		29		794		44		(257)		30,609		-
Other bond securities:
Corporate debt		-		-		-		-		16		-		16		-
RMBS		1,105		(19)		-		204		29		(31)		1,288		(31)
CMBS		369		-		-		(100)		-		-		269		2
CDO/ABS		7,449		132		-		(238)		581		(74)		7,850		(40)
Total other bond securities		8,923		113		-		(134)		626		(105)		9,423		(69)
Equity securities available for sale:
Common stock		1		-		-		-		-		-		1		-
Total equity securities available for sale		1		-		-		-		-		-		1		-
Other equity securities		-		-		-		-		22		-		22		(3)
Mortgage and other loans receivable		6		-		-		-		-		-		6		-
Other invested assets		1,042		410		(492)		(538)		-		-		422		-
Total	$	39,655	$	839	$	(463)	$	122	$	692	$	(362)	$	40,483	$	(72)

				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 March 31, 2015
Liabilities:
Policyholder contract deposits	$	1,509	$	275	$	-	$	51	$	-	$	-	$	1,835	$	(50)
Derivative liabilities, net:
Interest rate contracts		74		4		-		(9)		-		-		69		(4)
Foreign exchange contracts		8		(1)		-		1		-		-		8		1
Equity contracts		(47)		(8)		-		(11)		-		-		(66)		5
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		978		(147)		-		(40)		-		-		791		28
Other contracts		59		(14)		(2)		16		-		-		59		14
Total derivative liabilities, net^(a)		1,072		(166)		(2)		(43)		-		-		861		44
Long-term debt^(b)		213		(15)		-		(12)		-		-		186		19
Total	$	2,794	$	94	$	(2)	$	(4)	$	-	$	-	$	2,882	$	13

(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.

Changes in Level 3 recurring fair value measurements (Liabilities)

				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 March 31, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,124	$	-	$	58	$	14	$	-	$	-	$	2,196	$	-
Non-U.S. governments		32		-		(2)		-		-		-		30		-
Corporate debt		1,370		1		(24)		29		121		(473)		1,024		-
RMBS		16,537		245		(420)		(233)		33		-		16,162		-
CMBS		2,585		42		(88)		(81)		-		(90)		2,368		-
CDO/ABS		6,169		12		(50)		438		23		-		6,592		-
Total bonds available for sale		28,817		300		(526)		167		177		(563)		28,372		-
Other bond securities:
Corporate debt		17		1		-		-		-		-		18		1
RMBS		1,581		(37)		-		(13)		-		(18)		1,513		(45)
CMBS		193		(2)		-		(21)		-		-		170		(2)
CDO/ABS		7,055		(133)		-		(411)		65		-		6,576		(306)
Total other bond securities		8,846		(171)		-		(445)		65		(18)		8,277		(352)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		14		1		-		-		-		-		15		1
Mortgage and other loans receivable		11		-		-		-		-		-		11		-
Other invested assets		332		11		(5)		(21)		-		(54)		263		(1)
Total	$	38,020	$	141	$	(531)	$	(299)	$	242	$	(635)	$	36,938	$	(352)

				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 March 31, 2016
Liabilities:
Policyholder contract deposits	$	2,289	$	845	$	-	$	117	$	-	$	-	$	3,251	$	22
Derivative liabilities, net:
Interest rate contracts		50		4		-		(6)		-		-		48		(4)
Foreign exchange contracts		7		1		-		1		-		-		9		(1)
Equity contracts		(54)		4		-		(1)		-		-		(51)		(4)
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		505		(6)		-		(9)		-		-		490		14
Other contracts		48		54		-		19		-		-		121		(54)
Total derivative liabilities, net^(a)		556		57		-		4		-		-		617		(49)
Long-term debt^(b)		183		2		-		(1)		-		-		184		(2)
Total	$	3,028	$	904	$	-	$	120	$	-	$	-	$	4,052	$	(29)

				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 March 31, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,159	$	1	$	45	$	65	$	-	$	(14)	$	2,256	$	-
Non-U.S. governments		30		-		-		4		-		-		34		-
Corporate debt		1,883		-		17		(61)		44		(56)		1,827		-
RMBS		16,805		258		(72)		354		-		-		17,345		-
CMBS		2,696		24		10		30		-		(66)		2,694		-
CDO/ABS		6,110		33		29		402		-		(121)		6,453		-
Total bonds available for sale		29,683		316		29		794		44		(257)		30,609		-
Other bond securities:
Corporate debt		-		-		-		-		16		-		16		-
RMBS		1,105		(19)		-		204		29		(31)		1,288		(31)
CMBS		369		-		-		(100)		-		-		269		2
CDO/ABS		7,449		132		-		(238)		581		(74)		7,850		(40)
Total other bond securities		8,923		113		-		(134)		626		(105)		9,423		(69)
Equity securities available for sale:
Common stock		1		-		-		-		-		-		1		-
Total equity securities available for sale		1		-		-		-		-		-		1		-
Other equity securities		-		-		-		-		22		-		22		(3)
Mortgage and other loans receivable		6		-		-		-		-		-		6		-
Other invested assets		1,042		410		(492)		(538)		-		-		422		-
Total	$	39,655	$	839	$	(463)	$	122	$	692	$	(362)	$	40,483	$	(72)

				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 March 31, 2015
Liabilities:
Policyholder contract deposits	$	1,509	$	275	$	-	$	51	$	-	$	-	$	1,835	$	(50)
Derivative liabilities, net:
Interest rate contracts		74		4		-		(9)		-		-		69		(4)
Foreign exchange contracts		8		(1)		-		1		-		-		8		1
Equity contracts		(47)		(8)		-		(11)		-		-		(66)		5
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		978		(147)		-		(40)		-		-		791		28
Other contracts		59		(14)		(2)		16		-		-		59		14
Total derivative liabilities, net^(a)		1,072		(166)		(2)		(43)		-		-		861		44
Long-term debt^(b)		213		(15)		-		(12)		-		-		186		19
Total	$	2,794	$	94	$	(2)	$	(4)	$	-	$	-	$	2,882	$	13

(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.

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 March 31, 2016
Bonds available for sale	$	298	$	1	$	1	$	300
Other bond securities		(34)		-		(137)		(171)
Other equity securities		1		-		-		1
Other invested assets		(2)		51		(38)		11
Three Months Ended March 31, 2015
Bonds available for sale	$	311	$	(9)	$	14	$	316
Other bond securities		18		6		89		113
Other invested assets		(7)		417		-		410

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
Three Months Ended March 31, 2016
Policyholder contract deposits		-		845		-		845
Derivative liabilities, net		-		4		53		57
Long-term debt		-		-		2		2
Three Months Ended March 31, 2015
Policyholder contract deposits		-		275		-		275
Derivative liabilities, net		(19)		(6)		(141)		(166)
Long-term debt		-		-		(15)		(15)

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

								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net^(a)
Three Months Ended March 31, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	29	$	-	$	(15)	$	14
Non-U.S. governments		1		-		(1)		-
Corporate debt		29		-		-		29
RMBS		503		(58)		(678)		(233)
CMBS		102		(31)		(152)		(81)
CDO/ABS		539		-		(101)		438
Total bonds available for sale		1,203		(89)		(947)		167
Other bond securities:
RMBS		63		(26)		(50)		(13)
CMBS		53		(71)		(3)		(21)
CDO/ABS		8		(17)		(402)		(411)
Total other bond securities		124		(114)		(455)		(445)
Equity securities available for sale		-		-		-		-
Equity securities trading		14		-		(14)		-
Other invested assets		9		-		(30)		(21)
Total assets	$	1,350	$	(203)	$	(1,446)	$	(299)
Liabilities:
Policyholder contract deposits	$	-	$	130	$	(13)	$	117
Derivative liabilities, net		(2)		-		6		4
Long-term debt^(b)		-		-		(1)		(1)
Total liabilities	$	(2)	$	130	$	(8)	$	120
Three Months Ended March 31, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	107	$	(22)	$	(20)	$	65
Non-U.S. governments		6		-		(2)		4
Corporate debt		6		(50)		(17)		(61)
RMBS		961		(22)		(585)		354
CMBS		72		(27)		(15)		30
CDO/ABS		579		(23)		(154)		402
Total bonds available for sale		1,731		(144)		(793)		794
Other bond securities:
RMBS		245		(6)		(35)		204
CMBS		-		(36)		(64)		(100)
CDO/ABS		214		(40)		(412)		(238)
Total other bond securities		459		(82)		(511)		(134)
Equity securities available for sale		-		-		-		-
Other invested assets		69		(585)		(22)		(538)
Total assets	$	2,259	$	(811)	$	(1,326)	$	122
Liabilities:
Policyholder contract deposits	$	-	$	73	$	(22)	$	51
Derivative liabilities, net		(15)		-		(28)		(43)
Long-term debt^(b)		-		-		(12)		(12)
Total liabilities	$	(15)	$	73	$	(62)	$	(4)

(a) There were no issuances during the three-month periods ended March 31, 2016 and 2015, respectively.

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

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	March 31,		Valuation		Range
(in millions)	2016		Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states,
municipalities and
political subdivisions	$	1,330	Discounted cash flow	Yield	3.87% - 4.74% (4.31%)

Corporate debt		884	Discounted cash flow	Yield	3.50% - 9.37% (6.43%)


RMBS^(a)		13,110	Discounted cash flow	Constant prepayment rate	1.29% - 8.81% (5.05%)
				Loss severity	51.03% - 79.95% (65.49%)
				Constant default rate	3.91% - 8.89% (6.40%)
				Yield	3.45% - 6.09% (4.77%)

CDO/ABS^(a)		6,845	Discounted cash flow	Yield	4.05% - 6.81% (5.43%)

CMBS		2,187	Discounted cash flow	Yield	1.08% - 13.15% (7.12%)

Liabilities:

Embedded derivatives
within Policyholder
contract deposits:

GMWB and GMAB		2,097	Discounted cash flow	Equity volatility	15.00% - 50.00%
				Base lapse rate	1.00% - 17.00%
				Dynamic lapse rate	0.20% - 25.50%
				Mortality multiplier^(c)	80.00% - 104.27%
				Utilization rate	0.00% - 70.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		824	Discounted cash flow	Lapse rate	0.75% - 66.00%
				Mortality multiplier^(c)	50.00% - 75.00%

Indexed Life		342	Discounted cash flow	Equity volatility	13.25% to 22.00%
				Base lapse rate	2.00% to 19.00%
				Mortality rate	0.00% to 40.00%


		Fair Value at
		December 31,	Valuation		Range
(in millions)		2015	Technique	Unobservable Input^(b)	(Weighted Average )
Assets:

Obligations of states,
municipalities and
political subdivisions	$	1,217	Discounted cash flow	Yield	4.32% - 5.10% (4.71%)

Corporate debt		642	Discounted cash flow	Yield	5.63% - 12.45% (9.04%)


RMBS^(a)		17,280	Discounted cash flow	Constant prepayment rate	0.99% - 8.95% (4.97%)
				Loss severity	47.21% - 79.50% (63.35%)
				Constant default rate	3.49% - 9.04% (6.26%)
				Yield	3.13% - 6.14% (4.63%)

CDO/ABS^(a)		3,338	Discounted cash flow	Yield	3.41% - 4.98% (4.19%)

CMBS		2,388	Discounted cash flow	Yield	0.00% - 17.65% (6.62%)

Liabilities:

Embedded derivatives
within Policyholder
contract deposits:

GMWB and GMAB		1,234	Discounted cash flow	Equity volatility	15.00% - 50.00%
				Base lapse rate	1.00% - 17.00%
				Dynamic lapse rate	0.20% - 25.50%
				Mortality multiplier^(c)	80.00% - 104.27%
				Utilization rate	0.00% - 70.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		715	Discounted cash flow	Lapse rate	0.75% - 66.00%
				Mortality multiplier^(c)	50.00% - 75.00%

Indexed Life		332	Discounted cash flow	Equity volatility	13.25% to 22.00%
				Base lapse rate	2.00% to 19.00%
				Mortality rate	0.00% to 40.00%

(a) Information received from third-party valuation service providers. The ranges of the unobservable inputs for 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) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table for GMWB and GMAB, and the 1975-1980 Modified Basic Table for index annuities.

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

		March 31, 2016				December 31, 2015
			Fair Value			Fair Value
			Using NAV			Using NAV
			Per Share (or		Unfunded	Per Share (or			Unfunded
(in millions)	Investment Category Includes		its equivalent)		Commitments	its equivalent)			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	$	1,683	$	453	$	1,774	$	436

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		272		217		306		213

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		105		35		107		41

Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		142		42		146		41

Other	Includes multi-strategy, mezzanine and other strategies		277		267		298		239
Total private equity funds			2,479		1,014		2,631		970
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		943		-		1,194		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		2,647		28		2,978		25

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		556		-		555		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		632		7		699		8

Emerging markets	Investments in the financial markets of developing countries		293		-		353		-

Other	Includes multi-strategy, relative value and other strategies		150		-		167		-
Total hedge funds			5,221		35		5,946		33
Total		$	7,700	$	1,049	$	8,577	$	1,003

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

Three Months Ended March 31,	Gain (Loss)
(in millions)		2016		2015
Assets:
Bond and equity securities	$	50	$	141
Alternative investments^(a)		(247)		145
Other, including Short-term investments		-		2
Liabilities:
Long-term debt^(b)		(176)		(76)
Other liabilities		-		(3)
Total gain (loss)	$	(373)	$	209

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

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

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

	March 31, 2016						December 31, 2015
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	11	$	8	$	3	$	11	$	9	$	2
Liabilities:
Long-term debt^*	$	3,902	$	2,800	$	1,102	$	3,670	$	2,675	$	995

* 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 March 31,
(in millions)		Level 1		Level 2		Level 3		Total		2016		2015
March 31, 2016
Other investments	$	-	$	-	$	563	$	563	$	2	$	25
Investments in life settlements		-		-		405		405		157		70
Other assets		-		-		9		9		-		4
Total	$	-	$	-	$	977	$	977	$	159	$	99
December 31, 2015
Other investments	$	-	$	-	$	1,117	$	1,117
Investments in life settlements		-		-		828		828
Other assets		-		-		129		129
Total	$	-	$	-	$	2,074	$	2,074

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

	Estimated Fair Value									Carrying
(in millions)		Level 1		Level 2		Level 3		Total		Value
March 31, 2016
Assets:
Mortgage and other loans receivable	$	-	$	134	$	31,838	$	31,972	$	30,665
Other invested assets		-		524		2,854		3,378		4,083
Short-term investments		-		8,446		-		8,446		8,446
Cash		1,499		-		-		1,499		1,499
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		339		120,767		121,106		110,192
Other liabilities		-		3,355		-		3,355		3,355
Long-term debt		-		23,645		4,593		28,238		28,050
December 31, 2015
Assets:
Mortgage and other loans receivable	$	-	$	198	$	30,147	$	30,345	$	29,554
Other invested assets		-		563		2,880		3,443		4,169
Short-term investments		-		7,541		-		7,541		7,541
Cash		1,629		-		-		1,629		1,629
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		309		117,537		117,846		108,788
Other liabilities		-		2,852		-		2,852		2,852
Long-term debt		-		21,686		4,528		26,214		25,579