FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

December 31, 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	$	53	$	3,207	$	-	$	-	$	-	$	3,260
Obligations of states, municipalities and political subdivisions		-		14,001		2,000		-		-		16,001
Non-U.S. governments		69		14,445		11		-		-		14,525
Corporate debt		-		129,836		864		-		-		130,700
RMBS		-		20,178		14,199		-		-		34,377
CMBS		-		11,784		917		-		-		12,701
CDO/ABS		-		8,725		9,102		-		-		17,827
Total bonds available for sale		122		202,176		27,093		-		-		229,391
Other bond securities:
U.S. government and government sponsored entities		11		2,654		-		-		-		2,665
Non-U.S. governments		-		45		-		-		-		45
Corporate debt		-		1,671		-		-		-		1,671
RMBS		-		424		1,290		-		-		1,714
CMBS		-		311		77		-		-		388
CDO/ABS		-		454		4,478		-		-		4,932
Total other bond securities		11		5,559		5,845		-		-		11,415
Equity securities (b)		1,213		13		27		-		-		1,253
Mortgage and other loans receivable		-		-		-		-		-		-
Other invested assets(c)		-		341		587		-		-		928
Derivative assets:
Interest rate contracts		2		2,888		-		-		-		2,890
Foreign exchange contracts		-		1,159		5		-		-		1,164
Equity contracts		133		190		75		-		-		398
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		15		-		-		15
Counterparty netting and cash collateral		-		-		-		(1,713)		(1,840)		(3,553)
Total derivative assets		135		4,237		96		(1,713)		(1,840)		915
Short-term investments		2,416		599		-		-		-		3,015
Separate account assets		77,202		4,645		-		-		-		81,847
Other assets		-		-		58		-		-		58
Total	$	81,099	$	217,570	$	33,706	$	(1,713)	$	(1,840)	$	328,822
Liabilities:
Policyholder contract deposits	$	-	$	-	$	4,116	$	-	$	-	$	4,116
Derivative liabilities:
Interest rate contracts		4		2,004		15		-		-		2,023
Foreign exchange contracts		-		858		-		-		-		858
Equity contracts		12		3		-		-		-		15
Credit contracts		-		8		228		-		-		236
Other contracts		-		-		6		-		-		6
Counterparty netting and cash collateral		-		-		-		(1,713)		(187)		(1,900)
Total derivative liabilities		16		2,873		249		(1,713)		(187)		1,238
Long-term debt		-		2,213		-		-		-		2,213
Other liabilities		16		11		-		-		-		27
Total	$	32	$	5,097	$	4,365	$	(1,713)	$	(187)	$	7,594

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 $5.0 billion and $6.0 billion as of December 31,2018 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 Year		in Income		Income (Loss)		Settlements, Net		In		Out		Acquisitions		of Year		at End of Year
December 31, 2018
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,404	$	-	$	(152)	$	(66)	$	54	$	(240)	$	-	$	2,000	$	-
Non-U.S. governments		8		(9)		5		(1)		13		(5)		-		11		-
Corporate debt		1,173		(74)		(2)		(207)		780		(806)		-		864		-
RMBS		16,136		838		(300)		(2,424)		8		(66)		7		14,199		-
CMBS		624		23		(29)		207		111		(20)		1		917		-
CDO/ABS		8,651		40		(42)		(371)		1,783		(1,123)		164		9,102		-
Total bonds available
for sale		28,996		818		(520)		(2,862)		2,749		(2,260)		172		27,093		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		-
RMBS		1,464		56		-		(280)		50		-		-		1,290		(10)
CMBS		74		(2)		-		(5)		10		-		-		77		(5)
CDO/ABS		4,956		428		-		(905)		-		(9)		8		4,478		208
Total other bond securities		6,512		482		-		(1,208)		60		(9)		8		5,845		193
Equity securities(a)		-		(2)		-		24		5		-		-		27		-
Mortgage and other loans
receivable		5		-		-		(5)		-		-		-		-		-
Other invested assets		250		47		2		288		-		-		-		587		71
Other assets		-		-		-		58		-		-		-		58		-
Total	$	35,763	$	1,345	$	(518)	$	(3,705)	$	2,814	$	(2,269)	$	180	$	33,610	$	264
				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 Year		in Income		Income (Loss)		Settlements, Net		In		Out		Acquisitions		of Year		at End of Year
Liabilities:
Policyholder contract deposits	$	4,136	$	(334)	$	-	$	314	$	-	$	-	$	-	$	4,116	$	495
Derivative liabilities, net:
Interest rate contracts		22		(1)		-		(6)		-		-		-		15		1
Foreign exchange
contracts		-		(10)		-		5		-		-		-		(5)		3
Equity contracts		(82)		(22)		-		27		-		2		-		(75)		(35)
Credit contracts		262		(31)		-		(4)		-		-		-		227		31
Other contracts		(15)		(64)		-		70		-		-		-		(9)		62
Total derivative
liabilities, net(b)		187		(128)		-		92		-		2		-		153		62
Long-term debt(c)		-		-		-		-		-		-		-		-		-
Total	$	4,323	$	(462)	$	-	$	406	$	-	$	2	$	-	$	4,269	$	557

				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 Year		in Income		Income (Loss)		Settlements, Net		In		Out		of Year		at End of Year
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,040	$	5	$	167	$	216	$	8	$	(32)	$	2,404	$	-
Non-U.S. governments		17		(9)		9		(9)		-		-		8		-
Corporate debt		1,133		(3)		20		(259)		886		(604)		1,173		-
RMBS		16,906		1,071		942		(2,763)		19		(39)		16,136		-
CMBS		2,040		35		11		(748)		20		(734)		624		-
CDO/ABS		7,835		(19)		155		743		-		(63)		8,651		-
Total bonds available
for sale		29,971		1,080		1,304		(2,820)		933		(1,472)		28,996		-
Other bond securities:
Corporate debt		17		3		-		10		-		(12)		18		1
RMBS		1,605		191		-		(313)		14		(33)		1,464		113
CMBS		155		4		-		24		9		(118)		74		5
CDO/ABS		5,703		841		-		(1,582)		-		(6)		4,956		362
Total other bond securities		7,480		1,039		-		(1,861)		23		(169)		6,512		481
Equity securities available
for sale:
Common stock		-		-		-		1		-		(1)		-		-
Total equity securities
available for sale		-		-		-		1		-		(1)		-		-
Other equity securities		-		-		-		-		-		-		-		-
Mortgage and other loans
receivable		11		-		-		(6)		-		-		5		-
Other invested assets		204		14		(6)		39		-		(1)		250		6
Total	$	37,666	$	2,133	$	1,298	$	(4,647)	$	956	$	(1,643)	$	35,763	$	487
				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 Year		in Income		Income (Loss)		Settlements, Net		In		Out		of Year		at End of Year
Liabilities:
Policyholder contract
deposits	$	3,033	$	807	$	-	$	296	$	-	$	-	$	4,136	$	(499)
Derivative liabilities, net:
Interest rate contracts		38		(5)		-		(11)		-		-		22		5
Foreign exchange
contracts		11		(2)		-		(9)		-		-		-		3
Equity contracts		(58)		(41)		-		17		-		-		(82)		35
Credit contracts		329		(62)		-		(5)		-		-		262		61
Other contracts		(11)		(74)		-		73		(3)		-		(15)		77
Total derivatives
liabilities, net(b)		309		(184)		-		65		(3)		-		187		181
Long-term debt(c)		71		16		-		(87)		-		-		-		-
Total	$	3,413	$	639	$	-	$	274	$	(3)	$	-	$	4,323	$	(318)

(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 Year		in Income		Income (Loss)		Settlements, Net		In		Out		Acquisitions		of Year		at End of Year
December 31, 2018
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,404	$	-	$	(152)	$	(66)	$	54	$	(240)	$	-	$	2,000	$	-
Non-U.S. governments		8		(9)		5		(1)		13		(5)		-		11		-
Corporate debt		1,173		(74)		(2)		(207)		780		(806)		-		864		-
RMBS		16,136		838		(300)		(2,424)		8		(66)		7		14,199		-
CMBS		624		23		(29)		207		111		(20)		1		917		-
CDO/ABS		8,651		40		(42)		(371)		1,783		(1,123)		164		9,102		-
Total bonds available
for sale		28,996		818		(520)		(2,862)		2,749		(2,260)		172		27,093		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		-
RMBS		1,464		56		-		(280)		50		-		-		1,290		(10)
CMBS		74		(2)		-		(5)		10		-		-		77		(5)
CDO/ABS		4,956		428		-		(905)		-		(9)		8		4,478		208
Total other bond securities		6,512		482		-		(1,208)		60		(9)		8		5,845		193
Equity securities(a)		-		(2)		-		24		5		-		-		27		-
Mortgage and other loans
receivable		5		-		-		(5)		-		-		-		-		-
Other invested assets		250		47		2		288		-		-		-		587		71
Other assets		-		-		-		58		-		-		-		58		-
Total	$	35,763	$	1,345	$	(518)	$	(3,705)	$	2,814	$	(2,269)	$	180	$	33,610	$	264
				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 Year		in Income		Income (Loss)		Settlements, Net		In		Out		Acquisitions		of Year		at End of Year
Liabilities:
Policyholder contract deposits	$	4,136	$	(334)	$	-	$	314	$	-	$	-	$	-	$	4,116	$	495
Derivative liabilities, net:
Interest rate contracts		22		(1)		-		(6)		-		-		-		15		1
Foreign exchange
contracts		-		(10)		-		5		-		-		-		(5)		3
Equity contracts		(82)		(22)		-		27		-		2		-		(75)		(35)
Credit contracts		262		(31)		-		(4)		-		-		-		227		31
Other contracts		(15)		(64)		-		70		-		-		-		(9)		62
Total derivative
liabilities, net(b)		187		(128)		-		92		-		2		-		153		62
Long-term debt(c)		-		-		-		-		-		-		-		-		-
Total	$	4,323	$	(462)	$	-	$	406	$	-	$	2	$	-	$	4,269	$	557

				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 Year		in Income		Income (Loss)		Settlements, Net		In		Out		of Year		at End of Year
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,040	$	5	$	167	$	216	$	8	$	(32)	$	2,404	$	-
Non-U.S. governments		17		(9)		9		(9)		-		-		8		-
Corporate debt		1,133		(3)		20		(259)		886		(604)		1,173		-
RMBS		16,906		1,071		942		(2,763)		19		(39)		16,136		-
CMBS		2,040		35		11		(748)		20		(734)		624		-
CDO/ABS		7,835		(19)		155		743		-		(63)		8,651		-
Total bonds available
for sale		29,971		1,080		1,304		(2,820)		933		(1,472)		28,996		-
Other bond securities:
Corporate debt		17		3		-		10		-		(12)		18		1
RMBS		1,605		191		-		(313)		14		(33)		1,464		113
CMBS		155		4		-		24		9		(118)		74		5
CDO/ABS		5,703		841		-		(1,582)		-		(6)		4,956		362
Total other bond securities		7,480		1,039		-		(1,861)		23		(169)		6,512		481
Equity securities available
for sale:
Common stock		-		-		-		1		-		(1)		-		-
Total equity securities
available for sale		-		-		-		1		-		(1)		-		-
Other equity securities		-		-		-		-		-		-		-		-
Mortgage and other loans
receivable		11		-		-		(6)		-		-		5		-
Other invested assets		204		14		(6)		39		-		(1)		250		6
Total	$	37,666	$	2,133	$	1,298	$	(4,647)	$	956	$	(1,643)	$	35,763	$	487
				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 Year		in Income		Income (Loss)		Settlements, Net		In		Out		of Year		at End of Year
Liabilities:
Policyholder contract
deposits	$	3,033	$	807	$	-	$	296	$	-	$	-	$	4,136	$	(499)
Derivative liabilities, net:
Interest rate contracts		38		(5)		-		(11)		-		-		22		5
Foreign exchange
contracts		11		(2)		-		(9)		-		-		-		3
Equity contracts		(58)		(41)		-		17		-		-		(82)		35
Credit contracts		329		(62)		-		(5)		-		-		262		61
Other contracts		(11)		(74)		-		73		(3)		-		(15)		77
Total derivatives
liabilities, net(b)		309		(184)		-		65		(3)		-		187		181
Long-term debt(c)		71		16		-		(87)		-		-		-		-
Total	$	3,413	$	639	$	-	$	274	$	(3)	$	-	$	4,323	$	(318)

(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
December 31, 2018
Assets:
Bonds available for sale	$	987	$	(165)	$	(4)	$	818
Other bond securities		92		(3)		393		482
Equity securities		(2)		-		-		(2)
Other invested assets		57		-		(10)		47
December 31, 2017
Assets:
Bonds available for sale	$	1,127	$	(49)	$	2	$	1,080
Other bond securities		308		-		731		1,039
Other invested assets		9		6		(1)		14
		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
December 31, 2018
Liabilities:
Policyholder contract deposits		-		(334)		-		(334)
Derivative liabilities, net		-		5		(133)		(128)
Long-term debt		-		-		-		-
December 31, 2017
Liabilities:
Policyholder contract deposits		-		807		-		807
Derivative liabilities, net		-		(17)		(167)		(184)
Long-term debt		-		-		16		16

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

								Purchases, Sales,
						Issuances and		Issuances and
(in millions)		Purchases		Sales		Settlements(a)		Settlements, Net(a)
December 31, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	105	$	(8)	$	(163)	$	(66)
Non-U.S. governments		5		-		(6)		(1)
Corporate debt		280		(216)		(271)		(207)
RMBS		715		(20)		(3,119)		(2,424)
CMBS		277		(2)		(68)		207
CDO/ABS		1,865		(1,073)		(1,163)		(371)
Total bonds available for sale		3,247		(1,319)		(4,790)		(2,862)
Other bond securities:
Corporate debt		-		-		(18)		(18)
RMBS		1		(34)		(247)		(280)
CMBS		-		-		(5)		(5)
CDO/ABS		90		(4)		(991)		(905)
Total other bond securities		91		(38)		(1,261)		(1,208)
Equity securities		49		-		(25)		24
Mortgage and other loans receivable		-		(5)		-		(5)
Other invested assets		350		(29)		(33)		288
Other assets		-		-		58		58
Total assets	$	3,737	$	(1,391)	$	(6,051)	$	(3,705)
Liabilities:
Policyholder contract deposits	$	-	$	533	$	(219)	$	314
Derivative liabilities, net		(52)		80		64		92
Long-term debt(b)		-		-		-		-
Total liabilities	$	(52)	$	613	$	(155)	$	406
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	286	$	(16)	$	(54)	$	216
Non-U.S. governments		9		(1)		(17)		(9)
Corporate debt		36		(59)		(236)		(259)
RMBS		1,199		(260)		(3,702)		(2,763)
CMBS		75		(146)		(677)		(748)
CDO/ABS		2,099		(243)		(1,113)		743
Total bonds available for sale		3,704		(725)		(5,799)		(2,820)
Other bond securities:
Corporate debt		11		-		(1)		10
RMBS		167		(218)		(262)		(313)
CMBS		42		(11)		(7)		24
CDO/ABS		9		(65)		(1,526)		(1,582)
Total other bond securities		229		(294)		(1,796)		(1,861)
Equity securities available for sale		13		-		(12)		1
Other equity securities		-		-		-		-
Mortgage and other loans receivable		-		(6)		-		(6)
Other invested assets		107		(46)		(22)		39
Total assets	$	4,053	$	(1,071)	$	(7,629)	$	(4,647)
Liabilities:
Policyholder contract deposits	$	-	$	344	$	(48)	$	296
Derivative liabilities, net		(4)		-		69		65
Long-term debt(b)		-		-		(87)		(87)
Total liabilities	$	(4)	$	344	$	(66)	$	274

(a)There were no issuances during the years ended December 31,2018 and 2017.

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

Significant unobservable inputs used for recurring fair value measurements

		Fair Value at
		December 31,	Valuation		Range
(in millions)		2018	Technique	Unobservable Input(b)	(Weighted Average)
Assets:
Obligations of states,
municipalities and
political subdivisions	$	1,473	Discounted cash flow	Yield	3.91% - 5.00% (4.46%)
Corporate debt		445	Discounted cash flow	Yield	4.35% - 5.99% (5.17%)
RMBS(a)		13,608	Discounted cash flow	Constant prepayment rate	4.58% - 14.00% (9.29%)
				Loss severity	39.66% - 74.40% (57.03%)
				Constant default rate	2.46% - 7.39% (4.92%)
				Yield	3.31% - 5.50% (4.40%)
CDO/ABS(a)		5,461	Discounted cash flow	Yield	3.65% - 5.10% (4.37%)
CMBS		447	Discounted cash flow	Yield	3.29% - 6.07% (4.68%)
Liabilities:
Embedded derivatives
within Policyholder
contract deposits:
Guaranteed minimum
withdrawal benefits
(GMWB)		1,943	Discounted cash flow	Equity volatility	6.05% - 47.65%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	20.00% - 180.00%
				Mortality multiplier(c)	40.00% - 153.00%
				Utilization	90.00% - 100.00%
				Equity / interest rate correlation	20.00% - 40.00%
Index Annuities		1,778	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier(c)	42.00% - 162.00%
				Option Budget	1.00% - 3.00%
Indexed Life		374	Discounted cash flow	Base lapse rate	0.00% - 13.00%
				Mortality rate	0.00% - 100.00%

		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

		December 31, 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	$	847	$	1,327	$	1,243	$	706
Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		190		83		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		126		127		134		73
Growth Equity	Funds that make investments in established companies for the purpose of growing their businesses		362		28		215		73
Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		211		75		171		135
Other	Includes distressed funds that invest in securities of companies that are in default or under bankruptcy protection, as well as funds that have multi-strategy, and other strategies		514		307		155		53
Total private equity funds			2,250		1,947		2,128		1,227
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		787		-		1,128		-
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		863		-		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		887		-		1,011		-
Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		21		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		158		1		231		4
Total hedge funds			2,716		9		3,869		12
Total		$	4,966	$	1,956	$	5,997	$	1,239

* Beginning in the third quarter of 2018, Growth Equity and Mezzanine private equity fund categories are shown separately. Prior periods were revised to conform to the current period presentation.

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

Years Ended December 31,	Gain (Loss)
(in millions)		2018		2017		2016
Assets:
Bond and equity securities	$	343	$	1,646	$	447
Alternative investments(a)		213		509		28
Other, including Short-term investments		-		1		-
Liabilities:
Long-term debt(b)		(1)		(49)		(9)
Other liabilities		-		(2)		-
Total gain	$	555	$	2,105	$	466

(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

	December 31, 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*	$	2,213	$	1,653	$	560	$	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(a)
		Non-Recurring Basis							December 31,
(in millions)		Level 1		Level 2		Level 3		Total		2018		2017		2016
December 31, 2018
Other investments	$	-	$	-	$	315	$	315	$	97	$	77	$	76
Investments in life settlements		-		-		-		-		-		360		397
Other assets		-		-		11		11		64		157		19
Total	$	-	$	-	$	326	$	326	$	161	$	594	$	492
December 31, 2017
Other investments	$	-	$	-	$	55	$	55
Investments in life settlements		-		-		-		-
Other assets		-		-		-		-
Total	$	-	$	-	$	55	$	55

(a) Impairments in 2017 included $35million 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
December 31, 2018
Assets:
Mortgage and other loans receivable	$	-	$	105	$	43,522	$	43,627	$	43,135
Other invested assets		-		731		6		737		737
Short-term investments		-		6,659		-		6,659		6,659
Cash		2,873		-		-		2,873		2,873
Other assets		308		35		-		343		343
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		339		121,035		121,374		120,602
Other liabilities		-		1,154		-		1,154		1,154
Long-term debt		-		22,822		8,775		31,597		32,327
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