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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2016

Assets and liabilities measured at fair value on a recurring basis

September 30, 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	$	1	$	2,222	$	-	$	-	$	-	$	2,223
Obligations of states, municipalities and political subdivisions		-		24,287		2,291		-		-		26,578
Non-U.S. governments		179		20,508		19		-		-		20,706
Corporate debt		-		140,187		1,017		-		-		141,204
RMBS		-		20,606		17,209		-		-		37,815
CMBS		-		12,808		2,265		-		-		15,073
CDO/ABS		-		9,305		7,745		-		-		17,050
Total bonds available for sale		180		229,923		30,546		-		-		260,649
Other bond securities:
U.S. government and government sponsored entities		140		3,207		-		-		-		3,347
Obligations of states, municipalities and political subdivisions		-		-		-		-		-		-
Non-U.S. governments		-		54		-		-		-		54
Corporate debt		-		1,955		19		-		-		1,974
RMBS		-		451		1,396		-		-		1,847
CMBS		-		451		159		-		-		610
CDO/ABS		-		959		5,981		-		-		6,940
Total other bond securities		140		7,077		7,555		-		-		14,772
Equity securities available for sale:
Common stock		1,230		2		-		-		-		1,232
Preferred stock		18		-		-		-		-		18
Mutual funds		291		3		-		-		-		294
Total equity securities available for sale		1,539		5		-		-		-		1,544
Other equity securities		498		-		-		-		-		498
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		-		1		256		-		-		257
Derivative assets:
Interest rate contracts		-		4,289		-		-		-		4,289
Foreign exchange contracts		-		1,144		1		-		-		1,145
Equity contracts		118		150		54		-		-		322
Credit contracts		-		-		2		-		-		2
Other contracts		-		-		22		-		-		22
Counterparty netting and cash collateral		-		-		-		(2,289)		(1,358)		(3,647)
Total derivative assets		118		5,583		79		(2,289)		(1,358)		2,133
Short-term investments		1,936		788		-		-		-		2,724
Separate account assets		77,016		5,610		-		-		-		82,626
Total	$	81,427	$	248,987	$	38,447	$	(2,289)	$	(1,358)	$	365,214

Liabilities:
Policyholder contract deposits	$	-	$	27	$	4,022	$	-	$	-	$	4,049
Other policyholder funds		6		-		-		-		-		6
Derivative liabilities:
Interest rate contracts		-		3,667		52		-		-		3,719
Foreign exchange contracts		-		1,400		10		-		-		1,410
Equity contracts		-		2		-		-		-		2
Credit contracts		-		-		347		-		-		347
Other contracts		-		-		112		-		-		112
Counterparty netting and cash collateral		-		-		-		(2,289)		(482)		(2,771)
Total derivative liabilities		-		5,069		521		(2,289)		(482)		2,819
Long-term debt		-		3,594		70		-		-		3,664
Other liabilities		75		-		-		-		-		75
Total	$	81	$	8,690	$	4,613	$	(2,289)	$	(482)	$	10,613

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
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
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 $6.8 billion and $8.6 billion as of September 30, 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,						Reclassified				(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross		to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Three Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,313	$	1	$	(5)	$	58	$	2	$	(78)	$	-	$	2,291	$	-
Non-U.S. governments		28		(3)		(9)		3		-		-		-		19		-
Corporate debt		836		(4)		7		(6)		267		(82)		(1)		1,017		-
RMBS		16,779		255		304		(165)		36		-		-		17,209		-
CMBS		2,295		12		(5)		(1)		2		(32)		(6)		2,265		-
CDO/ABS		7,075		7		16		728		-		-		(81)		7,745		-
Total bonds available for sale		29,326		268		308		617		307		(192)		(88)		30,546		-
Other bond securities:
Corporate debt		18		1		-		-		-		-		-		19		-
RMBS		1,486		30		-		(120)		-		-		-		1,396		12
CMBS		168		6		-		(15)		-		-		-		159		4
CDO/ABS		6,312		175		-		(506)		-		-		-		5,981		-
Total other bond securities		7,984		212		-		(641)		-		-		-		7,555		16
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		11		-
Other invested assets		241		(4)		1		18		-		-		-		256		-
Total	$	37,576	$	476	$	309	$	(20)	$	307	$	(192)	$	(88)	$	38,368	$	16

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross		to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,990	$	65	$	-	$	(33)	$	-	$	-	$	-	$	4,022	$	1
Derivative liabilities, net:
Interest rate contracts		46		(3)		-		9		-		-		-		52		4
Foreign exchange contracts		9		1		-		(1)		-		-		-		9		(1)
Equity contracts		(52)		(5)		-		3		-		-		-		(54)		5
Commodity contracts		-		-		-		-		-		-		-		-		-
Credit contracts		373		(36)		-		7		-		1		-		345		28
Other contracts		102		(16)		-		4		-		-		-		90		33
Total derivative liabilities, net^(a)		478		(59)		-		22		-		1		-		442		69
Long-term debt^(b)		67		3		-		-		-		-		-		70		(3)
Total	$	4,535	$	9	$	-	$	(11)	$	-	$	1	$	-	$	4,534	$	67

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross		to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period^(a)		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Nine Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,124	$	3	$	189	$	51	$	2	$	(78)	$	-	$	2,291	$	-
Non-U.S. governments		32		(3)		(11)		5		-		(4)		-		19		-
Corporate debt		1,370		(1)		(10)		(42)		581		(880)		(1)		1,017		-
RMBS		16,537		734		(55)		(337)		330		-		-		17,209		-
CMBS		2,585		70		(83)		(169)		2		(134)		(6)		2,265		-
CDO/ABS		6,169		27		59		1,548		23		-		(81)		7,745		-
Total bonds available for sale		28,817		830		89		1,056		938		(1,096)		(88)		30,546		-
Other bond securities:
Corporate debt		17		3		-		(1)		-		-		-		19		3
RMBS		1,581		7		-		(174)		-		(18)		-		1,396		(48)
CMBS		193		4		-		(38)		-		-		-		159		14
CDO/ABS		7,055		151		-		(1,225)		65		(65)		-		5,981		(378)
Total other bond securities		8,846		165		-		(1,438)		65		(83)		-		7,555		(409)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		11		-
Other invested assets		332		(5)		2		(19)		-		(54)		-		256		(2)
Total	$	38,020	$	990	$	91	$	(415)	$	1,003	$	(1,233)	$	(88)	$	38,368	$	(411)

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross		to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period^(a)		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	2,289	$	1,508	$	-	$	225	$	-	$	-	$	-	$	4,022	$	38
Derivative liabilities, net:
Interest rate contracts		50		4		-		(2)		-		-		-		52		(5)
Foreign exchange contracts		7		3		-		(1)		-		-		-		9		(2)
Equity contracts		(54)		(5)		-		5		-		-		-		(54)		5
Commodity contracts		-		-		-		-		-		-		-		-		-
Credit contracts		505		(70)		-		(91)		-		1		-		345		56
Other contracts		48		14		-		28		-		-		-		90		3
Total derivative liabilities, net^(a)		556		(54)		-		(61)		-		1		-		442		57
Long-term debt^(b)		183		3		-		(3)		-		(113)		-		70		-
Total	$	3,028	$	1,457	$	-	$	161	$	-	$	(112)	$	-	$	4,534	$	95

				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 September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,180	$	(1)	$	(15)	$	16	$	-	$	(40)	$	2,140	$	-
Non-U.S. governments		33		-		(1)		(1)		-		-		31		-
Corporate debt		2,118		5		2		(63)		987		(573)		2,476		-
RMBS		17,097		265		(151)		(352)		-		-		16,859		-
CMBS		2,677		17		(15)		50		-		-		2,729		-
CDO/ABS		6,071		8		57		(21)		6		(13)		6,108		-
Total bonds available for sale		30,176		294		(123)		(371)		993		(626)		30,343		-
Other bond securities:
Corporate debt		16		-		-		-		-		-		16		-
RMBS		1,337		(4)		-		169		-		(1)		1,501		(3)
CMBS		223		(1)		-		(8)		5		-		219		(1)
CDO/ABS		7,426		85		-		(415)		51		-		7,147		23
Total other bond securities		9,002		80		-		(254)		56		(1)		8,883		19
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		22		-		-		-		-		-		22		-
Mortgage and other loans receivable		6		-		-		5		-		-		11		-
Other invested assets		437		(15)		(21)		(18)		-		-		383		-
Total	$	39,643	$	359	$	(144)	$	(638)	$	1,049	$	(627)	$	39,642	$	19

				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
		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	1,232	$	871	$	-	$	146	$	-	$	-	$	2,249	$	32
Derivative liabilities, net:
Interest rate contracts		62		3		-		(7)		-		-		58		(4)
Foreign exchange contracts		7		1		-		(1)		-		-		7		(2)
Equity contracts		(63)		21		-		3		-		-		(39)		(21)
Credit contracts		551		(11)		-		(12)		-		-		528		23
Other contracts		16		12		-		23		-		-		51		(13)
Total derivatives liabilities, net^(a)		573		26		-		6		-		-		605		(17)
Long-term debt^(b)		193		(3)		-		-		-		-		190		-
Total	$	1,998	$	894	$	-	$	152	$	-	$	-	$	3,044	$	15

				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
Nine Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions^(c)	$	2,159	$	-	$	(94)	$	174	$	-	$	(99)	$	2,140	$	-
Non-U.S. governments		30		-		(2)		3		-		-		31		-
Corporate debt		1,883		19		(31)		(209)		1,443		(629)		2,476		-
RMBS		16,805		804		(322)		(428)		-		-		16,859		-
CMBS		2,696		63		(45)		97		-		(82)		2,729		-
CDO/ABS		6,110		138		(110)		98		6		(134)		6,108		-
Total bonds available for sale		29,683		1,024		(604)		(265)		1,449		(944)		30,343		-
Other bond securities:
Corporate debt		-		-		-		-		16		-		16		-
RMBS		1,105		22		-		389		44		(59)		1,501		(21)
CMBS		369		7		-		(162)		5		-		219		(3)
CDO/ABS		7,449		482		-		(1,341)		632		(75)		7,147		(55)
Total other bond securities		8,923		511		-		(1,114)		697		(134)		8,883		(79)
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		-		-		-		-		22		-		22		(2)
Mortgage and other loans receivable		6		-		-		5		-		-		11		-
Other invested assets		1,042		457		(509)		(607)		-		-		383		-
Total	$	39,655	$	1,994	$	(1,113)	$	(1,984)	$	2,168	$	(1,078)	$	39,642	$	(81)

				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
Liabilities:
Policyholder contract deposits	$	1,509	$	410	$	-	$	330	$	-	$	-	$	2,249	$	72
Derivative liabilities, net:
Interest rate contracts		74		3		-		(19)		-		-		58		(4)
Foreign exchange contracts		8		(2)		-		1		-		-		7		1
Equity contracts		(47)		15		-		(7)		-		-		(39)		(19)
Credit contracts		978		(171)		-		(279)		-		-		528		73
Other contracts		59		(61)		-		53		-		-		51		53
Total derivatives liabilities, net^(a)		1,072		(216)		-		(251)		-		-		605		104
Long-term debt^(b)		213		(5)		-		(18)		-		-		190		13
Total	$	2,794	$	189	$	-	$	61	$	-	$	-	$	3,044	$	189

(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,						Reclassified				(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross		to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Three Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,313	$	1	$	(5)	$	58	$	2	$	(78)	$	-	$	2,291	$	-
Non-U.S. governments		28		(3)		(9)		3		-		-		-		19		-
Corporate debt		836		(4)		7		(6)		267		(82)		(1)		1,017		-
RMBS		16,779		255		304		(165)		36		-		-		17,209		-
CMBS		2,295		12		(5)		(1)		2		(32)		(6)		2,265		-
CDO/ABS		7,075		7		16		728		-		-		(81)		7,745		-
Total bonds available for sale		29,326		268		308		617		307		(192)		(88)		30,546		-
Other bond securities:
Corporate debt		18		1		-		-		-		-		-		19		-
RMBS		1,486		30		-		(120)		-		-		-		1,396		12
CMBS		168		6		-		(15)		-		-		-		159		4
CDO/ABS		6,312		175		-		(506)		-		-		-		5,981		-
Total other bond securities		7,984		212		-		(641)		-		-		-		7,555		16
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		11		-
Other invested assets		241		(4)		1		18		-		-		-		256		-
Total	$	37,576	$	476	$	309	$	(20)	$	307	$	(192)	$	(88)	$	38,368	$	16

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross		to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,990	$	65	$	-	$	(33)	$	-	$	-	$	-	$	4,022	$	1
Derivative liabilities, net:
Interest rate contracts		46		(3)		-		9		-		-		-		52		4
Foreign exchange contracts		9		1		-		(1)		-		-		-		9		(1)
Equity contracts		(52)		(5)		-		3		-		-		-		(54)		5
Commodity contracts		-		-		-		-		-		-		-		-		-
Credit contracts		373		(36)		-		7		-		1		-		345		28
Other contracts		102		(16)		-		4		-		-		-		90		33
Total derivative liabilities, net^(a)		478		(59)		-		22		-		1		-		442		69
Long-term debt^(b)		67		3		-		-		-		-		-		70		(3)
Total	$	4,535	$	9	$	-	$	(11)	$	-	$	1	$	-	$	4,534	$	67

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross		to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period^(a)		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Nine Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,124	$	3	$	189	$	51	$	2	$	(78)	$	-	$	2,291	$	-
Non-U.S. governments		32		(3)		(11)		5		-		(4)		-		19		-
Corporate debt		1,370		(1)		(10)		(42)		581		(880)		(1)		1,017		-
RMBS		16,537		734		(55)		(337)		330		-		-		17,209		-
CMBS		2,585		70		(83)		(169)		2		(134)		(6)		2,265		-
CDO/ABS		6,169		27		59		1,548		23		-		(81)		7,745		-
Total bonds available for sale		28,817		830		89		1,056		938		(1,096)		(88)		30,546		-
Other bond securities:
Corporate debt		17		3		-		(1)		-		-		-		19		3
RMBS		1,581		7		-		(174)		-		(18)		-		1,396		(48)
CMBS		193		4		-		(38)		-		-		-		159		14
CDO/ABS		7,055		151		-		(1,225)		65		(65)		-		5,981		(378)
Total other bond securities		8,846		165		-		(1,438)		65		(83)		-		7,555		(409)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		11		-
Other invested assets		332		(5)		2		(19)		-		(54)		-		256		(2)
Total	$	38,020	$	990	$	91	$	(415)	$	1,003	$	(1,233)	$	(88)	$	38,368	$	(411)

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross		to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period^(a)		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	2,289	$	1,508	$	-	$	225	$	-	$	-	$	-	$	4,022	$	38
Derivative liabilities, net:
Interest rate contracts		50		4		-		(2)		-		-		-		52		(5)
Foreign exchange contracts		7		3		-		(1)		-		-		-		9		(2)
Equity contracts		(54)		(5)		-		5		-		-		-		(54)		5
Commodity contracts		-		-		-		-		-		-		-		-		-
Credit contracts		505		(70)		-		(91)		-		1		-		345		56
Other contracts		48		14		-		28		-		-		-		90		3
Total derivative liabilities, net^(a)		556		(54)		-		(61)		-		1		-		442		57
Long-term debt^(b)		183		3		-		(3)		-		(113)		-		70		-
Total	$	3,028	$	1,457	$	-	$	161	$	-	$	(112)	$	-	$	4,534	$	95

				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 September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,180	$	(1)	$	(15)	$	16	$	-	$	(40)	$	2,140	$	-
Non-U.S. governments		33		-		(1)		(1)		-		-		31		-
Corporate debt		2,118		5		2		(63)		987		(573)		2,476		-
RMBS		17,097		265		(151)		(352)		-		-		16,859		-
CMBS		2,677		17		(15)		50		-		-		2,729		-
CDO/ABS		6,071		8		57		(21)		6		(13)		6,108		-
Total bonds available for sale		30,176		294		(123)		(371)		993		(626)		30,343		-
Other bond securities:
Corporate debt		16		-		-		-		-		-		16		-
RMBS		1,337		(4)		-		169		-		(1)		1,501		(3)
CMBS		223		(1)		-		(8)		5		-		219		(1)
CDO/ABS		7,426		85		-		(415)		51		-		7,147		23
Total other bond securities		9,002		80		-		(254)		56		(1)		8,883		19
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		22		-		-		-		-		-		22		-
Mortgage and other loans receivable		6		-		-		5		-		-		11		-
Other invested assets		437		(15)		(21)		(18)		-		-		383		-
Total	$	39,643	$	359	$	(144)	$	(638)	$	1,049	$	(627)	$	39,642	$	19

				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
		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	1,232	$	871	$	-	$	146	$	-	$	-	$	2,249	$	32
Derivative liabilities, net:
Interest rate contracts		62		3		-		(7)		-		-		58		(4)
Foreign exchange contracts		7		1		-		(1)		-		-		7		(2)
Equity contracts		(63)		21		-		3		-		-		(39)		(21)
Credit contracts		551		(11)		-		(12)		-		-		528		23
Other contracts		16		12		-		23		-		-		51		(13)
Total derivatives liabilities, net^(a)		573		26		-		6		-		-		605		(17)
Long-term debt^(b)		193		(3)		-		-		-		-		190		-
Total	$	1,998	$	894	$	-	$	152	$	-	$	-	$	3,044	$	15

				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
Nine Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions^(c)	$	2,159	$	-	$	(94)	$	174	$	-	$	(99)	$	2,140	$	-
Non-U.S. governments		30		-		(2)		3		-		-		31		-
Corporate debt		1,883		19		(31)		(209)		1,443		(629)		2,476		-
RMBS		16,805		804		(322)		(428)		-		-		16,859		-
CMBS		2,696		63		(45)		97		-		(82)		2,729		-
CDO/ABS		6,110		138		(110)		98		6		(134)		6,108		-
Total bonds available for sale		29,683		1,024		(604)		(265)		1,449		(944)		30,343		-
Other bond securities:
Corporate debt		-		-		-		-		16		-		16		-
RMBS		1,105		22		-		389		44		(59)		1,501		(21)
CMBS		369		7		-		(162)		5		-		219		(3)
CDO/ABS		7,449		482		-		(1,341)		632		(75)		7,147		(55)
Total other bond securities		8,923		511		-		(1,114)		697		(134)		8,883		(79)
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		-		-		-		-		22		-		22		(2)
Mortgage and other loans receivable		6		-		-		5		-		-		11		-
Other invested assets		1,042		457		(509)		(607)		-		-		383		-
Total	$	39,655	$	1,994	$	(1,113)	$	(1,984)	$	2,168	$	(1,078)	$	39,642	$	(81)

				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
Liabilities:
Policyholder contract deposits	$	1,509	$	410	$	-	$	330	$	-	$	-	$	2,249	$	72
Derivative liabilities, net:
Interest rate contracts		74		3		-		(19)		-		-		58		(4)
Foreign exchange contracts		8		(2)		-		1		-		-		7		1
Equity contracts		(47)		15		-		(7)		-		-		(39)		(19)
Credit contracts		978		(171)		-		(279)		-		-		528		73
Other contracts		59		(61)		-		53		-		-		51		53
Total derivatives liabilities, net^(a)		1,072		(216)		-		(251)		-		-		605		104
Long-term debt^(b)		213		(5)		-		(18)		-		-		190		13
Total	$	2,794	$	189	$	-	$	61	$	-	$	-	$	3,044	$	189

(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 September 30, 2016
Bonds available for sale	$	294	$	(27)	$	1	$	268
Other bond securities		37		13		162		212
Other invested assets		5		(3)		(6)		(4)
Nine Months Ended September 30, 2016
Bonds available for sale	$	883	$	(56)	$	3	$	830
Other bond securities		29		45		91		165
Other invested assets		2		29		(36)		(5)
Three Months Ended September 30, 2015
Bonds available for sale	$	304	$	(15)	$	5	$	294
Other bond securities		7		-		73		80
Equity securities available for sale		-		-		-		-
Other invested assets		(8)		(11)		4		(15)
Nine Months Ended September 30, 2015
Bonds available for sale	$	926	$	(14)	$	112	$	1,024
Other bond securities		48		3		460		511
Equity securities available for sale		-		2		-		2
Other invested assets		(10)		408		59		457

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended September 30, 2016
Policyholder contract deposits	$	-	$	65	$	-	$	65
Derivative liabilities, net		-		(5)		(54)		(59)
Long-term debt		-		-		3		3
Nine Months Ended September 30, 2016
Policyholder contract deposits	$	-	$	1,508	$	-	$	1,508
Derivative liabilities, net		-		(1)		(53)		(54)
Long-term debt		-		-		3		3
Three Months Ended September 30, 2015
Policyholder contract deposits	$	-	$	871	$	-	$	871
Derivative liabilities, net		-		17		9		26
Long-term debt		-		-		(3)		(3)
Nine Months Ended September 30, 2015
Policyholder contract deposits	$	-	$	410	$	-	$	410
Derivative liabilities, net		-		12		(228)		(216)
Long-term debt		-		-		(5)		(5)

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

								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net^(a)
Three Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	98	$	-	$	(40)	$	58
Non-U.S. governments		7		-		(4)		3
Corporate debt		-		-		(6)		(6)
RMBS		754		(23)		(896)		(165)
CMBS		50		(24)		(27)		(1)
CDO/ABS		902		(22)		(152)		728
Total bonds available for sale		1,811		(69)		(1,125)		617
Other bond securities:
RMBS		12		(74)		(58)		(120)
CMBS		-		(14)		(1)		(15)
CDO/ABS		-		(340)		(166)		(506)
Total other bond securities		12		(428)		(225)		(641)
Other equity securities		-		-		(14)		(14)
Other invested assets		21		-		(3)		18
Total assets	$	1,844	$	(497)	$	(1,367)	$	(20)
Liabilities:
Policyholder contract deposits	$	-	$	95	$	(128)	$	(33)
Derivative liabilities, net		(2)		-		24		22
Long-term debt^(b)		-		-		-		-
Total liabilities	$	(2)	$	95	$	(104)	$	(11)

Three Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	35	$	-	$	(19)	$	16
Non-U.S. governments		3		(1)		(3)		(1)
Corporate debt		32		-		(95)		(63)
RMBS		449		(29)		(772)		(352)
CMBS		50		-		-		50
CDO/ABS		160		(9)		(172)		(21)
Total bonds available for sale		729		(39)		(1,061)		(371)
Other bond securities:
RMBS		218		(6)		(43)		169
CMBS		-		-		(8)		(8)
CDO/ABS		10		(5)		(420)		(415)
Total other bond securities		228		(11)		(471)		(254)
Equity securities available for sale		-		-		-		-
Mortgage and other loans receivable		5		-		-		5
Other invested assets		(8)		-		(10)		(18)
Total assets	$	954	$	(50)	$	(1,542)	$	(638)
Liabilities:
Policyholder contract deposits	$	-	$	122	$	24	$	146
Derivative liabilities, net		(1)		-		7		6
Long-term debt^(b)		-		-		-		-
Total liabilities	$	(1)	$	122	$	31	$	152
								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net^(a)
Nine Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	144	$	(7)	$	(86)	$	51
Non-U.S. governments		10		-		(5)		5
Corporate debt		29		(25)		(46)		(42)
RMBS		2,297		(81)		(2,553)		(337)
CMBS		156		(82)		(243)		(169)
CDO/ABS		2,053		(33)		(472)		1,548
Total bonds available for sale		4,689		(228)		(3,405)		1,056
Other bond securities:
Corporate debt		-		-		(1)		(1)
RMBS		101		(100)		(175)		(174)
CMBS		53		(85)		(6)		(38)
CDO/ABS		69		(376)		(918)		(1,225)
Total other bond securities		223		(561)		(1,100)		(1,438)

Equity securities available for sale		-		-		-		-
Other equity securities		14		-		(28)		(14)
Other invested assets		39		(2)		(56)		(19)
Total assets	$	4,965	$	(791)	$	(4,589)	$	(415)
Liabilities:
Policyholder contract deposits	$	-	$	365	$	(140)	$	225
Derivative liabilities, net		(5)		-		(56)		(61)
Long-term debt^(b)		-		-		(3)		(3)
Total liabilities	$	(5)	$	365	$	(199)	$	161
Nine Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions^(c)	$	258	$	(22)	$	(62)	$	174
Non-U.S. governments		11		(1)		(7)		3
Corporate debt		220		(60)		(369)		(209)
RMBS		1,856		(194)		(2,090)		(428)
CMBS		192		(27)		(68)		97
CDO/ABS		1,021		(210)		(713)		98
Total bonds available for sale		3,558		(514)		(3,309)		(265)
Other bond securities:
RMBS		527		(16)		(122)		389
CMBS		-		(79)		(83)		(162)
CDO/ABS		236		(376)		(1,201)		(1,341)
Total other bond securities		763		(471)		(1,406)		(1,114)
Equity securities available for sale		-		(2)		(1)		(3)
Mortgage and other loans receivable		5		-		-		5
Other invested assets		19		(587)		(39)		(607)
Total assets	$	4,345	$	(1,574)	$	(4,755)	$	(1,984)
Liabilities:
Policyholder contract deposits	$	-	$	307	$	23	$	330
Derivative liabilities, net		(18)		-		(233)		(251)
Long-term debt^(b)		-		-		(18)		(18)
Total liabilities	$	(18)	$	307	$	(228)	$	61

(a) There were no issuances during the three- and nine-month periods ended September 30, 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
	September 30,		Valuation		Range
(in millions)	2016		Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states, municipalities
and political subdivisions
	$	1,460	Discounted cash flow	Yield	3.46% - 4.29% (3.87%)

Corporate debt		625	Discounted cash flow	Yield	2.90% - 8.34% (5.62%)

RMBS^(a)		17,369	Discounted cash flow	Constant prepayment rate	1.37% - 8.78% (5.07%)
				Loss severity	49.30% - 80.09% (64.69%)
				Constant default rate	3.51% - 8.83% (6.17%)
				Yield	2.79% - 5.53% (4.16%)

CDO/ABS^(a)		4,049	Discounted cash flow	Yield	3.00% - 5.34% (4.17%)

CMBS		1,939	Discounted cash flow	Yield	0.00% - 13.78% (6.20%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

GMWB and GMAB		2,793	Discounted cash flow	Equity volatility	12.00% - 12.00%
				Base lapse rate	0.50% - 20.00%
				Dynamic lapse rate	30.00% - 170.00%
				Mortality multiplier^(c)	42.00% - 161.00%
				Utilization rate	100.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		907	Discounted cash flow	Lapse rate	1.00% - 66.00%
				Mortality multiplier^(c)	101.00% - 103.00%

Indexed Life		352	Discounted cash flow	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^(d)	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^(d)	50.00% - 75.00%

Indexed Life		332	Discounted cash flow	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.

(d) 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

		September 30, 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	$	1,486	$	595	$	1,774	$	436

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		267		190		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		92		32		107		41

Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		124		44		146		41

Other	Includes multi-strategy, mezzanine and other strategies		310		235		298		239
Total private equity funds			2,279		1,096		2,631		970
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		652		-		1,194		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		2,264		24		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		579		-		555		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		620		7		699		8

Emerging markets	Investments in the financial markets of developing countries		307		-		353		-

Other	Includes multi-strategy, relative value and other strategies		134		-		167		-
Total hedge funds			4,556		31		5,946		33
Total		$	6,835	$	1,127	$	8,577	$	1,003

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

	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
(in millions)		2016		2015		2016		2015
Assets:
Bond and equity securities	$	331	$	(106)	$	629	$	495
Alternative Investments^(a)		154		(115)		(60)		148
Other, including Short-term investments		-		-		-		2
Liabilities:
Long-term debt^(b)		8		(144)		(239)		(89)
Other liabilities		-		-		-		(3)
Total gain (loss)	$	493	$	(365)	$	330	$	553

(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

	September 30, 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^*	$	3,664	$	2,595	$	1,069	$	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 September 30,				Nine Months Ended September 30,
(in millions)	Level 1		Level 2		Level 3			Total		2016		2015		2016		2015
September 30, 2016
Other investments	$	-	$	-	$	194	$	194	$	27	$	22	$	58	$	74
Investments in life settlements		-		-		665		665		80		58		329		200
Other assets		-		-		2		2		2		5		11		12
Total	$	-	$	-	$	861	$	861	$	109	$	85	$	398	$	286
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
September 30, 2016
Assets:
Mortgage and other loans receivable	$	-	$	172	$	33,950	$	34,122	$	32,402
Other invested assets		-		629		2,875		3,504		4,211
Short-term investments		-		8,021		-		8,021		8,021
Cash		2,498		-		-		2,498		2,498
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		394		129,460		129,854		112,380
Other liabilities		-		4,214		-		4,214		4,214
Long-term debt		-		26,133		3,868		30,001		28,613
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