FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2018

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

June 30, 2018							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting(a)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	147	$	2,497	$	-	$	-	$	-	$	2,644
Obligations of states, municipalities and political subdivisions		-		15,004		2,056		-		-		17,060
Non-U.S. governments		24		15,273		-		-		-		15,297
Corporate debt		-		127,074		884		-		-		127,958
RMBS		-		20,003		15,377		-		-		35,380
CMBS		-		12,479		605		-		-		13,084
CDO/ABS		-		10,394		6,856		-		-		17,250
Total bonds available for sale		171		202,724		25,778		-		-		228,673
Other bond securities:
U.S. government and government sponsored entities		26		2,636		-		-		-		2,662
Non-U.S. governments		-		51		-		-		-		51
Corporate debt		-		1,729		18		-		-		1,747
RMBS		-		382		1,338		-		-		1,720
CMBS		-		340		71		-		-		411
CDO/ABS		-		542		4,641		-		-		5,183
Total other bond securities		26		5,680		6,068		-		-		11,774
Other equity securities(b)		1,628		47		-		-		-		1,675
Mortgage and other loans receivable		-		-		-		-		-		-
Other invested assets(c)		-		-		399		-		-		399
Derivative assets:
Interest rate contracts		-		2,460		-		-		-		2,460
Foreign exchange contracts		-		1,038		-		-		-		1,038
Equity contracts		27		174		79		-		-		280
Credit contracts		-		-		1		-		-		1
Other contracts		-		3		14		-		-		17
Counterparty netting and cash collateral		-		-		-		(1,433)		(1,644)		(3,077)
Total derivative assets		27		3,675		94		(1,433)		(1,644)		719
Short-term investments		2,307		938		-		-		-		3,245
Separate account assets		85,783		4,963		-		-		-		90,746
Total	$	89,942	$	218,027	$	32,339	$	(1,433)	$	(1,644)	$	337,231
Liabilities:
Policyholder contract deposits	$	-	$	-	$	3,534	$	-	$	-	$	3,534
Derivative liabilities:
Interest rate contracts		-		1,925		14		-		-		1,939
Foreign exchange contracts		-		1,082		5		-		-		1,087
Equity contracts		5		3		-		-		-		8
Credit contracts		-		13		247		-		-		260
Other contracts		-		-		4		-		-		4
Counterparty netting and cash collateral		-		-		-		(1,433)		(595)		(2,028)
Total derivative liabilities		5		3,023		270		(1,433)		(595)		1,270
Long-term debt		-		2,615		-		-		-		2,615
Other liabilities		153		-		-		-		-		153
Total	$	158	$	5,638	$	3,804	$	(1,433)	$	(595)	$	7,572

December 31, 2017							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting(a)		Collateral		Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	201	$	2,455	$	-	$	-	$	-	$	2,656
Obligations of states, municipalities and political subdivisions		-		16,240		2,404		-		-		18,644
Non-U.S. governments		20		15,631		8		-		-		15,659
Corporate debt		-		133,003		1,173		-		-		134,176
RMBS		-		21,098		16,136		-		-		37,234
CMBS		-		13,217		624		-		-		13,841
CDO/ABS		-		8,131		8,651		-		-		16,782
Total bonds available for sale		221		209,775		28,996		-		-		238,992
Other bond securities:
U.S. government and government sponsored entities		238		2,564		-		-		-		2,802
Non-U.S. governments		-		57		-		-		-		57
Corporate debt		-		1,891		18		-		-		1,909
RMBS		-		421		1,464		-		-		1,885
CMBS		-		485		74		-		-		559
CDO/ABS		-		604		4,956		-		-		5,560
Total other bond securities		238		6,022		6,512		-		-		12,772
Equity securities available for sale:
Common stock		1,061		-		-		-		-		1,061
Preferred stock		18		515		-		-		-		533
Mutual funds		110		4		-		-		-		114
Total equity securities available for sale		1,189		519		-		-		-		1,708
Other equity securities		589		-		-		-		-		589
Mortgage and other loans receivable		-		-		5		-		-		5
Other invested assets(c)		-		1		250		-		-		251
Derivative assets:
Interest rate contracts		1		2,170		-		-		-		2,171
Foreign exchange contracts		-		827		4		-		-		831
Equity contracts		188		252		82		-		-		522
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		20		-		-		20
Counterparty netting and cash collateral		-		-		-		(1,464)		(1,159)		(2,623)
Total derivative assets		189		3,249		107		(1,464)		(1,159)		922
Short-term investments		2,078		537		-		-		-		2,615
Separate account assets		87,141		5,657		-		-		-		92,798
Total	$	91,645	$	225,760	$	35,870	$	(1,464)	$	(1,159)	$	350,652
Liabilities:
Policyholder contract deposits	$	-	$	14	$	4,136	$	-	$	-	$	4,150
Derivative liabilities:
Interest rate contracts		2		2,176		22		-		-		2,200
Foreign exchange contracts		-		1,241		4		-		-		1,245
Equity contracts		2		19		-		-		-		21
Credit contracts		-		14		263		-		-		277
Other contracts		-		-		5		-		-		5
Counterparty netting and cash collateral		-		-		-		(1,464)		(1,249)		(2,713)
Total derivative liabilities		4		3,450		294		(1,464)		(1,249)		1,035
Long-term debt		-		2,888		-		-		-		2,888
Other liabilities		46		43		-		-		-		89
Total	$	50	$	6,395	$	4,430	$	(1,464)	$	(1,249)	$	8,162

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

(b)As a result of the adoption of the Recognition and Measurement of Financial Assets and Financial Liabilities standard on January 1, 2018 (Financial Instruments Recognition and Measurement Standard), equity securities are no longer classified and accounted for as available for sale securities.

(c) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $5.5 billion and $6.0 billion as of June 30,2018 and December 31,2017, respectively.

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		Issuances 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, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,261	$	-	$	(40)	$	(29)	$	-	$	(136)	$	2,056	$	-
Non-U.S. governments		9		(1)		2		(5)		-		(5)		-		-
Corporate debt		1,871		(8)		(7)		(394)		3		(581)		884		-
RMBS		15,839		153		(5)		(616)		8		(2)		15,377		-
CMBS		584		(2)		(4)		(7)		47		(13)		605		-
CDO/ABS		7,846		8		3		56		-		(1,057)		6,856		-
Total bonds available for sale		28,410		150		(51)		(995)		58		(1,794)		25,778		-
Other bond securities:
Corporate debt		19		(1)		-		-		-		-		18		-
RMBS		1,427		16		-		(105)		-		-		1,338		151
CMBS		73		(2)		-		-		-		-		71		4
CDO/ABS		4,776		118		-		(253)		-		-		4,641		204
Total other bond securities		6,295		131		-		(358)		-		-		6,068		359
Other equity securities(a)		3		(3)		-		-		-		-		-		-
Mortgage and other loans receivable		-		-		-		-		-		-		-		-
Other invested assets		292		29		-		78		-		-		399		-
Total	$	35,000	$	307	$	(51)	$	(1,275)	$	58	$	(1,794)	$	32,245	$	359
				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		Issuances 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	$	3,696	$	(238)	$	-	$	76	$	-	$	-	$	3,534	$	298
Derivative liabilities, net:
Interest rate contracts		17		(1)		-		(2)		-		-		14		1
Foreign exchange contracts		1		6		-		(2)		-		-		5		(4)
Equity contracts		(78)		5		-		(8)		-		2		(79)		(5)
Credit contracts		250		(4)		-		-		-		-		246		3
Other contracts		(12)		(15)		-		17		-		-		(10)		18
Total derivative liabilities, net(b)		178		(9)		-		5		-		2		176		13
Long-term debt(c)		-		-		-		-		-		-		-		-
Total	$	3,874	$	(247)	$	-	$	81	$	-	$	2	$	3,710	$	311
				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		Issuances 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, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,404	$	1	$	(115)	$	(98)	$	-	$	(136)	$	2,056	$	-
Non-U.S. governments		8		(5)		6		(4)		-		(5)		-		-
Corporate debt		1,173		(65)		3		(146)		568		(649)		884		-
RMBS		16,136		419		-		(1,152)		8		(34)		15,377		-
CMBS		624		4		(21)		(30)		47		(19)		605		-
CDO/ABS		8,651		16		(85)		(654)		-		(1,072)		6,856		-
Total bonds available for sale		28,996		370		(212)		(2,084)		623		(1,915)		25,778		-
Other bond securities:
Corporate debt		18		-		-		-		-		-		18		1
RMBS		1,464		55		-		(181)		-		-		1,338		153
CMBS		74		(3)		-		(1)		1		-		71		4
CDO/ABS		4,956		207		-		(513)		-		(9)		4,641		208
Total other bond securities		6,512		259		-		(695)		1		(9)		6,068		366
Other equity securities(a)		-		(3)		-		3		-		-		-		-
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-
Other invested assets		250		52		1		96		-		-		399		25
Total	$	35,763	$	678	$	(211)	$	(2,685)	$	624	$	(1,924)	$	32,245	$	391
				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		Issuances 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	$	4,136	$	(744)	$	-	$	142	$	-	$	-	$	3,534	$	902
Derivative liabilities, net:
Interest rate contracts		22		(4)		-		(4)		-		-		14		4
Foreign exchange contracts		-		(4)		-		9		-		-		5		(3)
Equity contracts		(82)		9		-		(8)		-		2		(79)		(9)
Credit contracts		262		(14)		-		(2)		-		-		246		13
Other contracts		(15)		(32)		-		37		-		-		(10)		35
Total derivative liabilities, net(b)		187		(45)		-		32		-		2		176		40
Long-term debt(c)		-		-		-		-		-		-		-		-
Total	$	4,323	$	(789)	$	-	$	174	$	-	$	2	$	3,710	$	942

				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		Issuances 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, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,041	$	(1)	$	89	$	148	$	8	$	-	$	2,285	$	-
Non-U.S. governments		16		-		1		(5)		-		-		12		-
Corporate debt		1,079		5		3		(153)		70		(72)		932		-
RMBS		16,487		264		346		(681)		-		(23)		16,393		-
CMBS		1,003		18		2		(274)		-		(14)		735		-
CDO/ABS		7,755		(28)		132		746		-		-		8,605		-
Total bonds available for sale		28,381		258		573		(219)		78		(109)		28,962		-
Other bond securities:
Corporate debt		18		-		-		10		-		-		28		-
RMBS		1,502		66		-		(58)		-		-		1,510		43
CMBS		65		2		-		(1)		-		-		66		2
CDO/ABS		5,508		175		-		(449)		-		-		5,234		55
Total other bond securities		7,093		243		-		(498)		-		-		6,838		100
Equity securities available for sale:
Common stock		8		-		-		-		-		(1)		7		-
Total equity securities available for sale		8		-		-		-		-		(1)		7		-
Mortgage and other loans receivable		11		-		-		(6)		-		-		5		-
Other invested assets		180		4		2		39		-		-		225		4
Total	$	35,673	$	505	$	575	$	(684)	$	78	$	(110)	$	36,037	$	104
				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		Issuances 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	$	3,072	$	340	$	-	$	106	$	-	$	-	$	3,518	$	(283)
Derivative liabilities, net:
Interest rate contracts		32		2		-		(4)		-		-		30		(1)
Foreign exchange contracts		6		1		-		-		-		-		7		(1)
Equity contracts		(62)		(4)		-		3		-		-		(63)		9
Credit contracts		315		(21)		-		(1)		-		-		293		23
Other contracts		(11)		(20)		-		18		(3)		-		(16)		46
Total derivative liabilities, net(b)		280		(42)		-		16		(3)		-		251		76
Long-term debt(c)		58		2		-		1		-		-		61		(2)
Total	$	3,410	$	300	$	-	$	123	$	(3)	$	-	$	3,830	$	(209)
				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		Issuances 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, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,040	$	1	$	85	$	169	$	8	$	(18)	$	2,285	$	-
Non-U.S. governments		17		-		1		(6)		-		-		12		-
Corporate debt		1,133		1		-		(166)		206		(242)		932		-
RMBS		16,906		553		497		(1,539)		8		(32)		16,393		-
CMBS		2,040		23		7		(622)		-		(713)		735		-
CDO/ABS		7,835		(22)		180		644		-		(32)		8,605		-
Total bonds available for sale		29,971		556		770		(1,520)		222		(1,037)		28,962		-
Other bond securities:
Corporate debt		17		1		-		10		-		-		28		1
RMBS		1,605		121		-		(183)		-		(33)		1,510		67
CMBS		155		2		-		(18)		-		(73)		66		3
CDO/ABS		5,703		348		-		(817)		-		-		5,234		125
Total other bond securities		7,480		472		-		(1,008)		-		(106)		6,838		196
Equity securities available for sale:
Common stock		-		-		-		8		-		(1)		7		-
Total equity securities available for sale		-		-		-		8		-		(1)		7		-
Mortgage and other loans receivable		11		-		-		(6)		-		-		5		-
Other invested assets		204		3		(3)		22		-		(1)		225		4
Total	$	37,666	$	1,031	$	767	$	(2,504)	$	222	$	(1,145)	$	36,037	$	200
				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		Issuances 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	$	3,033	$	295	$	-	$	190	$	-	$	-	$	3,518	$	(185)
Derivative liabilities, net:
Interest rate contracts		38		(1)		-		(7)		-		-		30		2
Foreign exchange contracts		11		1		-		(5)		-		-		7		(1)
Equity contracts		(58)		(15)		-		10		-		-		(63)		14
Credit contracts		329		(36)		-		-		-		-		293		34
Other contracts		(11)		(39)		-		37		(3)		-		(16)		45
Total derivative liabilities, net(b)		309		(90)		-		35		(3)		-		251		94
Long-term debt(c)		71		14		-		(24)		-		-		61		(4)
Total	$	3,413	$	219	$	-	$	201	$	(3)	$	-	$	3,830	$	(95)

(a) As a result of the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, equity securities are no longer classified and accounted for as available for sale securities.

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

(c) 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		Issuances 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, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,261	$	-	$	(40)	$	(29)	$	-	$	(136)	$	2,056	$	-
Non-U.S. governments		9		(1)		2		(5)		-		(5)		-		-
Corporate debt		1,871		(8)		(7)		(394)		3		(581)		884		-
RMBS		15,839		153		(5)		(616)		8		(2)		15,377		-
CMBS		584		(2)		(4)		(7)		47		(13)		605		-
CDO/ABS		7,846		8		3		56		-		(1,057)		6,856		-
Total bonds available for sale		28,410		150		(51)		(995)		58		(1,794)		25,778		-
Other bond securities:
Corporate debt		19		(1)		-		-		-		-		18		-
RMBS		1,427		16		-		(105)		-		-		1,338		151
CMBS		73		(2)		-		-		-		-		71		4
CDO/ABS		4,776		118		-		(253)		-		-		4,641		204
Total other bond securities		6,295		131		-		(358)		-		-		6,068		359
Other equity securities(a)		3		(3)		-		-		-		-		-		-
Mortgage and other loans receivable		-		-		-		-		-		-		-		-
Other invested assets		292		29		-		78		-		-		399		-
Total	$	35,000	$	307	$	(51)	$	(1,275)	$	58	$	(1,794)	$	32,245	$	359
				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		Issuances 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	$	3,696	$	(238)	$	-	$	76	$	-	$	-	$	3,534	$	298
Derivative liabilities, net:
Interest rate contracts		17		(1)		-		(2)		-		-		14		1
Foreign exchange contracts		1		6		-		(2)		-		-		5		(4)
Equity contracts		(78)		5		-		(8)		-		2		(79)		(5)
Credit contracts		250		(4)		-		-		-		-		246		3
Other contracts		(12)		(15)		-		17		-		-		(10)		18
Total derivative liabilities, net(b)		178		(9)		-		5		-		2		176		13
Long-term debt(c)		-		-		-		-		-		-		-		-
Total	$	3,874	$	(247)	$	-	$	81	$	-	$	2	$	3,710	$	311
				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		Issuances 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, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,404	$	1	$	(115)	$	(98)	$	-	$	(136)	$	2,056	$	-
Non-U.S. governments		8		(5)		6		(4)		-		(5)		-		-
Corporate debt		1,173		(65)		3		(146)		568		(649)		884		-
RMBS		16,136		419		-		(1,152)		8		(34)		15,377		-
CMBS		624		4		(21)		(30)		47		(19)		605		-
CDO/ABS		8,651		16		(85)		(654)		-		(1,072)		6,856		-
Total bonds available for sale		28,996		370		(212)		(2,084)		623		(1,915)		25,778		-
Other bond securities:
Corporate debt		18		-		-		-		-		-		18		1
RMBS		1,464		55		-		(181)		-		-		1,338		153
CMBS		74		(3)		-		(1)		1		-		71		4
CDO/ABS		4,956		207		-		(513)		-		(9)		4,641		208
Total other bond securities		6,512		259		-		(695)		1		(9)		6,068		366
Other equity securities(a)		-		(3)		-		3		-		-		-		-
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-
Other invested assets		250		52		1		96		-		-		399		25
Total	$	35,763	$	678	$	(211)	$	(2,685)	$	624	$	(1,924)	$	32,245	$	391
				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		Issuances 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	$	4,136	$	(744)	$	-	$	142	$	-	$	-	$	3,534	$	902
Derivative liabilities, net:
Interest rate contracts		22		(4)		-		(4)		-		-		14		4
Foreign exchange contracts		-		(4)		-		9		-		-		5		(3)
Equity contracts		(82)		9		-		(8)		-		2		(79)		(9)
Credit contracts		262		(14)		-		(2)		-		-		246		13
Other contracts		(15)		(32)		-		37		-		-		(10)		35
Total derivative liabilities, net(b)		187		(45)		-		32		-		2		176		40
Long-term debt(c)		-		-		-		-		-		-		-		-
Total	$	4,323	$	(789)	$	-	$	174	$	-	$	2	$	3,710	$	942

				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		Issuances 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, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,041	$	(1)	$	89	$	148	$	8	$	-	$	2,285	$	-
Non-U.S. governments		16		-		1		(5)		-		-		12		-
Corporate debt		1,079		5		3		(153)		70		(72)		932		-
RMBS		16,487		264		346		(681)		-		(23)		16,393		-
CMBS		1,003		18		2		(274)		-		(14)		735		-
CDO/ABS		7,755		(28)		132		746		-		-		8,605		-
Total bonds available for sale		28,381		258		573		(219)		78		(109)		28,962		-
Other bond securities:
Corporate debt		18		-		-		10		-		-		28		-
RMBS		1,502		66		-		(58)		-		-		1,510		43
CMBS		65		2		-		(1)		-		-		66		2
CDO/ABS		5,508		175		-		(449)		-		-		5,234		55
Total other bond securities		7,093		243		-		(498)		-		-		6,838		100
Equity securities available for sale:
Common stock		8		-		-		-		-		(1)		7		-
Total equity securities available for sale		8		-		-		-		-		(1)		7		-
Mortgage and other loans receivable		11		-		-		(6)		-		-		5		-
Other invested assets		180		4		2		39		-		-		225		4
Total	$	35,673	$	505	$	575	$	(684)	$	78	$	(110)	$	36,037	$	104
				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		Issuances 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	$	3,072	$	340	$	-	$	106	$	-	$	-	$	3,518	$	(283)
Derivative liabilities, net:
Interest rate contracts		32		2		-		(4)		-		-		30		(1)
Foreign exchange contracts		6		1		-		-		-		-		7		(1)
Equity contracts		(62)		(4)		-		3		-		-		(63)		9
Credit contracts		315		(21)		-		(1)		-		-		293		23
Other contracts		(11)		(20)		-		18		(3)		-		(16)		46
Total derivative liabilities, net(b)		280		(42)		-		16		(3)		-		251		76
Long-term debt(c)		58		2		-		1		-		-		61		(2)
Total	$	3,410	$	300	$	-	$	123	$	(3)	$	-	$	3,830	$	(209)
				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		Issuances 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, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,040	$	1	$	85	$	169	$	8	$	(18)	$	2,285	$	-
Non-U.S. governments		17		-		1		(6)		-		-		12		-
Corporate debt		1,133		1		-		(166)		206		(242)		932		-
RMBS		16,906		553		497		(1,539)		8		(32)		16,393		-
CMBS		2,040		23		7		(622)		-		(713)		735		-
CDO/ABS		7,835		(22)		180		644		-		(32)		8,605		-
Total bonds available for sale		29,971		556		770		(1,520)		222		(1,037)		28,962		-
Other bond securities:
Corporate debt		17		1		-		10		-		-		28		1
RMBS		1,605		121		-		(183)		-		(33)		1,510		67
CMBS		155		2		-		(18)		-		(73)		66		3
CDO/ABS		5,703		348		-		(817)		-		-		5,234		125
Total other bond securities		7,480		472		-		(1,008)		-		(106)		6,838		196
Equity securities available for sale:
Common stock		-		-		-		8		-		(1)		7		-
Total equity securities available for sale		-		-		-		8		-		(1)		7		-
Mortgage and other loans receivable		11		-		-		(6)		-		-		5		-
Other invested assets		204		3		(3)		22		-		(1)		225		4
Total	$	37,666	$	1,031	$	767	$	(2,504)	$	222	$	(1,145)	$	36,037	$	200
				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		Issuances 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	$	3,033	$	295	$	-	$	190	$	-	$	-	$	3,518	$	(185)
Derivative liabilities, net:
Interest rate contracts		38		(1)		-		(7)		-		-		30		2
Foreign exchange contracts		11		1		-		(5)		-		-		7		(1)
Equity contracts		(58)		(15)		-		10		-		-		(63)		14
Credit contracts		329		(36)		-		-		-		-		293		34
Other contracts		(11)		(39)		-		37		(3)		-		(16)		45
Total derivative liabilities, net(b)		309		(90)		-		35		(3)		-		251		94
Long-term debt(c)		71		14		-		(24)		-		-		61		(4)
Total	$	3,413	$	219	$	-	$	201	$	(3)	$	-	$	3,830	$	(95)

(a) As a result of the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, equity securities are no longer classified and accounted for as available for sale securities.

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

(c) 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 June 30, 2018
Bonds available for sale	$	200	$	(50)	$	-	$	150
Other bond securities		34		-		97		131
Other equity securities		(3)		-		-		(3)
Other invested assets		32		-		(3)		29
Six Months Ended June 30, 2018
Bonds available for sale	$	482	$	(112)	$	-	$	370
Other bond securities		57		(4)		206		259
Other equity securities		(3)		-		-		(3)
Other invested assets		57		-		(5)		52
Three Months Ended June 30, 2017
Bonds available for sale	$	294	$	(36)	$	-	$	258
Other bond securities		97		(4)		150		243
Other invested assets		3		1		-		4
Six Months Ended June 30, 2017
Bonds available for sale	$	592	$	(36)	$	-	$	556
Other bond securities		172		2		298		472
Other invested assets		3		(2)		2		3
		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
Three Months Ended June 30, 2018
Policyholder contract deposits	$	-	$	(238)	$	-	$	(238)
Derivative liabilities, net		-		(3)		(6)		(9)
Long-term debt		-		-		-		-
Six Months Ended June 30, 2018
Policyholder contract deposits	$	-	$	(744)	$	-	$	(744)
Derivative liabilities, net		-		(2)		(43)		(45)
Long-term debt		-		-		-		-
Three Months Ended June 30, 2017
Policyholder contract deposits	$	-	$	340	$	-	$	340
Derivative liabilities, net		-		(1)		(41)		(42)
Long-term debt		-		-		2		2
Six Months Ended June 30, 2017
Policyholder contract deposits	$	-	$	295	$	-	$	295
Derivative liabilities, net		-		(8)		(82)		(90)
Long-term debt		-		-		14		14

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

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements(a)		Settlements, Net(a)
Three Months Ended June 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	9	$	-	$	(38)	$	(29)
Non-U.S. governments		-		-		(5)		(5)
Corporate debt		1		(213)		(182)		(394)
RMBS		274		(5)		(885)		(616)
CMBS		-		-		(7)		(7)
CDO/ABS		475		(62)		(357)		56
Total bonds available for sale		759		(280)		(1,474)		(995)
Other bond securities:
Corporate debt		-		-		-		-
RMBS		-		(29)		(76)		(105)
CMBS		-		-		-		-
CDO/ABS		-		-		(253)		(253)
Total other bond securities		-		(29)		(329)		(358)
Other equity securities		-		-		-		-
Other invested assets		131		(29)		(24)		78
Total assets	$	890	$	(338)	$	(1,827)	$	(1,275)
Liabilities:
Policyholder contract deposits	$	-	$	131	$	(55)	$	76
Derivative liabilities, net		(12)		-		17		5
Long-term debt(b)		-		-		-		-
Total liabilities	$	(12)	$	131	$	(38)	$	81
Three Months Ended June 30, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	186	$	(11)	$	(27)	$	148
Non-U.S. governments		-		-		(5)		(5)
Corporate debt		30		(54)		(129)		(153)
RMBS		301		-		(982)		(681)
CMBS		-		(44)		(230)		(274)
CDO/ABS		1,194		-		(448)		746
Total bonds available for sale		1,711		(109)		(1,821)		(219)
Other bond securities:
Corporate debt		11		-		(1)		10
RMBS		14		-		(72)		(58)
CMBS		-		-		(1)		(1)
CDO/ABS		-		(8)		(441)		(449)
Total other bond securities		25		(8)		(515)		(498)
Other equity securities		-		-		-		-
Mortgage and other loans receivable		-		(6)		-		(6)
Other invested assets		42		(2)		(1)		39
Total assets	$	1,778	$	(125)	$	(2,337)	$	(684)
Liabilities:
Policyholder contract deposits	$	-	$	82	$	24	$	106
Derivative liabilities, net		-		-		16		16
Long-term debt(b)		-		-		1		1
Total liabilities	$	-	$	82	$	41	$	123
						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements(a)		Settlements, Net(a)
Six Months Ended June 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	24	$	-	$	(122)	$	(98)
Non-U.S. governments		2		-		(6)		(4)
Corporate debt		255		(216)		(185)		(146)
RMBS		507		(10)		(1,649)		(1,152)
CMBS		12		-		(42)		(30)
CDO/ABS		970		(913)		(711)		(654)
Total bonds available for sale		1,770		(1,139)		(2,715)		(2,084)
Other bond securities:
Corporate debt		-		-		-		-
RMBS		1		(34)		(148)		(181)
CMBS		-		-		(1)		(1)
CDO/ABS		-		(4)		(509)		(513)
Total other bond securities		1		(38)		(658)		(695)
Other equity securities		3		-		-		3
Mortgage and other loans receivable		-		(5)		-		(5)
Other invested assets		153		(29)		(28)		96
Total assets	$	1,927	$	(1,211)	$	(3,401)	$	(2,685)
Liabilities:
Policyholder contract deposits	$	-	$	243	$	(101)	$	142
Derivative liabilities, net		(19)		-		51		32
Long-term debt(b)		-		-		-		-
Total liabilities	$	(19)	$	243	$	(50)	$	174
Six Months Ended June 30, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	223	$	(16)	$	(38)	$	169
Non-U.S. governments		-		(1)		(5)		(6)
Corporate debt		30		(54)		(142)		(166)
RMBS		640		(244)		(1,935)		(1,539)
CMBS		39		(111)		(550)		(622)
CDO/ABS		1,207		-		(563)		644
Total bonds available for sale		2,139		(426)		(3,233)		(1,520)
Other bond securities:
Corporate debt		11		-		(1)		10
RMBS		112		(167)		(128)		(183)
CMBS		-		(11)		(7)		(18)
CDO/ABS		-		(8)		(809)		(817)
Total other bond securities		123		(186)		(945)		(1,008)
Equity securities available for sale		8		-		-		8
Other equity securities		-		-		-		-
Mortgage and other loans receivable		-		(6)		-		(6)
Other invested assets		43		(2)		(19)		22
Total assets	$	2,313	$	(620)	$	(4,197)	$	(2,504)
Liabilities:
Policyholder contract deposits	$	-	$	152	$	38	$	190
Derivative liabilities, net		-		-		35		35
Long-term debt(b)		-		-		(24)		(24)
Total liabilities	$	-	$	152	$	49	$	201

(a)There were no issuances during thethree- and six-month periods ended June 30,2018 and 2017, respectively.

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

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	June 30,		Valuation		Range
(in millions)	2018		Technique	Unobservable Input(b)	(Weighted Average)
Assets:
Obligations of states, municipalities
and political subdivisions	$	1,521	Discounted cash flow	Yield	3.93% - 4.54% (4.24%)
Corporate debt		721	Discounted cash flow	Yield	3.52% - 14.75% (9.14%)
RMBS(a)		14,915	Discounted cash flow	Constant prepayment rate	4.29% - 12.86% (8.57%)
				Loss severity	39.93% - 75.33% (57.63%)
				Constant default rate	2.80% - 7.70% (5.25%)
				Yield	3.14% - 5.42% (4.28%)
CDO/ABS(a)		4,261	Discounted cash flow	Yield	3.93% - 5.25% (4.59%)
CMBS		442	Discounted cash flow	Yield	2.86% - 6.36% (4.61%)
Liabilities:
Embedded derivatives within
Policyholder contract deposits:
Guaranteed minimum withdrawal benefits (GMWB)		1,332	Discounted cash flow	Equity volatility	6.35% - 50.05%
				Base lapse rate	0.35% - 14.00%
				Dynamic lapse multiplier	30.00% - 170.00%
				Mortality multiplier(c)	40.00% - 153.00%
				Utilization	90.00% - 100.00%
				Equity / interest-rate correlation	20.00% - 40.00%
Index Annuities		1,614	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier(c)	42.00% - 162.00%
				Option Budget	1.00% - 4.00%
Indexed Life		563	Discounted cash flow	Base lapse rate	2.00% - 19.00%
				Mortality rate	0.00% - 40.00%

		Fair Value at
		December 31,	Valuation		Range
(in millions)		2017	Technique	Unobservable Input(b)	(Weighted Average)
Assets:
Obligations of states, municipalities
and political subdivisions	$	1,620	Discounted cash flow	Yield	3.55% - 4.32% (3.94%)
Corporate debt		1,086	Discounted cash flow	Yield	3.26% - 12.22% (7.74%)
RMBS(a)		16,156	Discounted cash flow	Constant prepayment rate	3.97% - 13.42% (8.69%)
				Loss severity	43.15% - 77.15% (60.15%)
				Constant default rate	3.31% - 8.30% (5.80%)
				Yield	2.73% - 5.19% (3.96%)
CDO/ABS(a)		5,254	Discounted cash flow	Yield	3.38% - 4.78% (4.08%)
CMBS		487	Discounted cash flow	Yield	2.22% - 7.77% (4.99%)
Liabilities:
Embedded derivatives within
Policyholder contract deposits:
GMWB		1,994	Discounted cash flow	Equity volatility	6.45% - 51.25%
				Base lapse rate	0.35% - 14.00%
				Dynamic lapse multiplier	30.00% - 170.00%
				Mortality multiplier(c)	40.00% - 153.00%
				Utilization	90.00% - 100.00%
				Equity / interest-rate correlation	20.00% - 40.00%
Index Annuities		1,603	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier(c)	42.00% - 162.00%
				Option Budget	1.00% - 4.00%
Indexed Life		515	Discounted cash flow	Base lapse rate	2.00% - 19.00%
				Mortality rate	0.00% - 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.

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

		June 30, 2018				December 31, 2017
			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	$	1,244	$	787	$	1,243	$	706
Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		209		140		210		187
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		146		122		134		73
Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		106		91		113		42
Other	Includes multi-strategy, mezzanine and other strategies		546		167		428		219
Total private equity funds			2,251		1,307		2,128		1,227
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		893		-		1,128		-
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,084		-		1,233		-
Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		966		-		1,011		-
Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		136		8		266		8
Other	Includes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments		197		2		231		4
Total hedge funds			3,276		10		3,869		12
Total		$	5,527	$	1,317	$	5,997	$	1,239

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)		2018		2017		2018		2017
Assets:
Bond and equity securities	$	129	$	450	$	152	$	799
Alternative investments(a)		96		96		224		277
Liabilities:
Long-term debt(b)		16		(33)		68		(48)
Other liabilities		-		(1)		-		(1)
Total gain	$	241	$	512	$	444	$	1,027

(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

	June 30, 2018						December 31, 2017
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	-	$	-	$	-	$	5	$	5	$	-
Liabilities:
Long-term debt*	$	2,615	$	2,114	$	501	$	2,888	$	2,280	$	608

*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		2018		2017		2018		2017
June 30, 2018
Other investments	$	-	$	-	$	344	$	344	$	61	$	33	$	89	$	50
Investments in life settlements		-		-		-		-		-		46		-		87
Other assets		-		-		-		-		1		-		1		35
Total	$	-	$	-	$	344	$	344	$	62	$	79	$	90	$	172
December 31, 2017
Other investments	$	-	$	-	$	55	$	55
Investments in life settlements		-		-		-		-
Other assets		-		-		-		-
Total	$	-	$	-	$	55	$	55

* Impairments in the six-month period ended June 30, 2017 included $35 million related to Other assets of $179 million that were sold during the three-month period ended June 30, 2017.

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
June 30, 2018
Assets:
Mortgage and other loans receivable	$	-	$	111	$	39,520	$	39,631	$	39,978
Other invested assets		-		781		6		787		782
Short-term investments		-		13,765		-		13,765		13,765
Cash		2,135		-		-		2,135		2,135
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		363		121,923		122,286		118,309
Other liabilities		-		1,982		-		1,982		1,982
Long-term debt		-		23,394		4,823		28,217		31,169
December 31, 2017
Assets:
Mortgage and other loans receivable	$	-	$	117	$	37,644	$	37,761	$	37,018
Other invested assets		-		590		6		596		593
Short-term investments		-		7,771		-		7,771		7,771
Cash		2,362		-		-		2,362		2,362
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		387		121,809		122,196		114,326
Other liabilities		-		4,494		-		4,494		4,494
Long-term debt		-		23,930		4,313		28,243		28,752