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INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2018

The amortized cost or cost and fair value of AIG's available for sale securities and other invested assets carried at fair value

										Other-Than-
		Amortized		Gross		Gross				Temporary
		Cost or		Unrealized		Unrealized		Fair		Impairments
(in millions)		Cost		Gains		Losses		Value		in AOCI^(b)
December 31, 2018
Bonds available for sale:
U.S. government and government sponsored entities	$	3,170	$	132	$	(42)	$	3,260	$	-
Obligations of states, municipalities and political subdivisions		15,421		701		(121)		16,001		4
Non-U.S. governments		14,376		451		(302)		14,525		-
Corporate debt		130,436		3,911		(3,647)		130,700		4
Mortgage-backed, asset-backed and collateralized:
RMBS		31,940		2,754		(317)		34,377		1,155
CMBS		12,673		242		(214)		12,701		31
CDO/ABS		17,764		228		(165)		17,827		17
Total mortgage-backed, asset-backed and collateralized		62,377		3,224		(696)		64,905		1,203
Total bonds available for sale^(c)	$	225,780	$	8,419	$	(4,808)	$	229,391	$	1,211
December 31, 2017
Bonds available for sale:
U.S. government and government sponsored entities	$	2,532	$	160	$	(36)	$	2,656	$	-
Obligations of states, municipalities and political subdivisions		17,377		1,297		(30)		18,644		-
Non-U.S. governments		15,059		717		(117)		15,659		-
Corporate debt		126,310		8,666		(800)		134,176		17
Mortgage-backed, asset-backed and collateralized:
RMBS		34,181		3,273		(220)		37,234		1,568
CMBS		13,538		408		(105)		13,841		42
CDO/ABS		16,464		370		(52)		16,782		29
Total mortgage-backed, asset-backed and collateralized		64,183		4,051		(377)		67,857		1,639
Total bonds available for sale^(c)		225,461		14,891		(1,360)		238,992		1,656
Equity securities available for sale:
Common stock		703		379		(21)		1,061		-
Preferred stock		504		29		-		533		-
Mutual funds		98		16		-		114		-
Total equity securities available for sale		1,305		424		(21)		1,708		-
Total	$	226,766	$	15,315	$	(1,381)	$	240,700	$	1,656

(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) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income (loss). Amount includes unrealized gains and losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date.

(c) At December 31, 2018 and 2017, bonds available for sale held by us that were below investment grade or not rated totaled $28.8 billion and $31.5 billion, respectively.

The fair value and gross unrealized losses on AIG's available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position

	Less than 12 Months				12 Months or More				Total
				Gross				Gross				Gross
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in millions)		Value		Losses		Value		Losses		Value		Losses
December 31, 2018
Bonds available for sale:
U.S. government and government sponsored entities	$	574	$	13	$	873	$	29	$	1,447	$	42
Obligations of states, municipalities and political
subdivisions		1,965		51		1,530		70		3,495		121
Non-U.S. governments		3,851		149		2,422		153		6,273		302
Corporate debt		47,364		2,181		20,056		1,466		67,420		3,647
RMBS		5,231		94		5,641		223		10,872		317
CMBS		2,646		47		4,264		167		6,910		214
CDO/ABS		9,169		144		1,324		21		10,493		165
Total bonds available for sale	$	70,800	$	2,679	$	36,110	$	2,129	$	106,910	$	4,808
December 31, 2017
Bonds available for sale:
U.S. government and government sponsored entities	$	770	$	23	$	332	$	13	$	1,102	$	36
Obligations of states, municipalities and political
subdivisions		586		6		646		24		1,232		30
Non-U.S. governments		3,511		54		857		63		4,368		117
Corporate debt		15,578		453		7,291		347		22,869		800
RMBS		6,212		99		3,790		121		10,002		220
CMBS		3,408		46		1,389		59		4,797		105
CDO/ABS		1,455		24		822		28		2,277		52
Total bonds available for sale		31,520		705		15,127		655		46,647		1,360
Equity securities available for sale:
Common stock		136		21		-		-		136		21
Mutual funds		1		-		-		-		1		-
Total equity securities available for sale		137		21		-		-		137		21
Total	$	31,657	$	726	$	15,127	$	655	$	46,784	$	1,381

The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity

	Total Fixed Maturity Securities				Fixed Maturity Securities in a Loss
	Available for Sale				Position Available for Sale
(in millions)		Amortized Cost		Fair Value		Amortized Cost		Fair Value
December 31, 2018
Due in one year or less	$	9,539	$	9,674	$	2,322	$	2,294
Due after one year through five years		47,400		47,905		17,382		16,844
Due after five years through ten years		42,363		42,045		27,724		26,517
Due after ten years		64,101		64,862		35,319		32,980
Mortgage-backed, asset-backed and collateralized		62,377		64,905		28,971		28,275
Total	$	225,780	$	229,391	$	111,718	$	106,910
December 31, 2017
Due in one year or less	$	7,932	$	8,071	$	1,526	$	1,515
Due after one year through five years		47,179		49,093		7,764		7,571
Due after five years through ten years		42,617		43,944		11,559		11,143
Due after ten years		63,550		70,027		9,705		9,342
Mortgage-backed, asset-backed and collateralized		64,183		67,857		17,453		17,076
Total	$	225,461	$	238,992	$	48,007	$	46,647

The gross realized gains and gross realized losses from sales of AIG's available for sale securities

	Years Ended December 31,
		2018				2017				2016
		Gross		Gross		Gross		Gross	Gross		Gross
	Realized		Realized		Realized		Realized		Realized		Realized
(in millions)		Gains		Losses		Gains		Losses	Gains		Losses
Fixed maturity securities	$	331	$	476	$	725	$	300	$	801	$	800
Equity securities		16		-		107		19		1,072		15
Total	$	347	$	476	$	832	$	319	$	1,873	$	815

The fair value of AIG's other securities

		December 31, 2018				December 31, 2017
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	2,665	21	%	$	2,802	21	%
Non-U.S. governments		45	-			57	1
Corporate debt		1,671	13			1,909	14
Mortgage-backed, asset-backed and collateralized:
RMBS		1,714	14			1,885	14
CMBS		388	3			559	4
CDO/ABS and other collateralized^*		4,932	39			5,560	42
Total mortgage-backed, asset-backed and collateralized		7,034	56			8,004	60
Total fixed maturity securities		11,415	90			12,772	96
Equity securities		1,253	10			589	4
Total	$	12,668	100	%	$	13,361	100	%

* Includes $178 million and $251 million of U.S. government agency backed ABS at December 31, 2018 and 2017, respectively.

Components of other invested assets

December 31,
(in millions)		2018		2017
Alternative investments^{(a) (b)}	$	8,966	$	11,308
Investment real estate^(c)		8,935		8,258
All other investments		1,440		1,256
Total	$	19,341	$	20,822

(a) At December 31, 2018, included hedge funds of $4.2 billion, private equity funds of $4.3 billion, and affordable housing partnerships of $438 million. At December 31, 2017, included hedge funds of $5.8 billion, private equity funds of $5.0 billion, and affordable housing partnerships of $543 million.

(b) At December 31, 2018, approximately 74 percent of our hedge fund portfolio is available for redemption in 2019. The remaining 26 percent will be available for redemption between 2020 and 2027.

The carrying value and ownership percentage of AIA and equity method investments

		2018			2017
		Carrying	Ownership		Carrying	Ownership
(in millions, except percentages)		Value	Percentage		Value	Percentage
Equity method investments	$	6,520	Various	$	9,050	Various

Components of net investment income

Years Ended December 31,
(in millions)		2018		2017		2016
Available for sale fixed maturity securities, including short-term investments	$	10,323	$	10,435	$	11,314
Other fixed maturity securities		7		660		331
Equity securities^(a)		(162)		34		(5)
Interest on mortgage and other loans		1,874		1,661		1,526
Alternative investments^(b)		655		1,475		693
Real estate		257		144		150
Other investments		15		290		509
Total investment income		12,969		14,699		14,518
Investment expenses		493		520		453
Net investment income	$	12,476	$	14,179	$	14,065

(a) Upon the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, the change in fair value of all equity securities is included in Net investment income.

(b) Includes income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds for which we elected the fair value option are recorded as of the balance sheet date. Other hedge funds are generally reported on a one-month lag. Private equity funds are generally reported on a one-quarter lag.

Components of net realized capital gains (losses)

Years Ended December 31,
(in millions)		2018		2017		2016
Sales of fixed maturity securities	$	(145)	$	425	$	1
Sales of equity securities^(a)		16		88		1,057
Other-than-temporary impairments:
Severity		-		(2)		(15)
Change in intent		(87)		(9)		(46)
Foreign currency declines		(15)		(11)		(18)
Issuer-specific credit events		(147)		(234)		(433)
Adverse projected cash flows		(2)		(4)		(47)
Provision for loan losses		(92)		(50)		10
Foreign exchange transactions		(182)		489		(1,226)
Variable annuity embedded derivatives, net of related hedges		304		(1,374)		(1,243)
All other derivatives and hedge accounting		338		(368)		299
Impairments on investments in life settlements		-		(360)		(397)
Loss on sale of private equity funds		(321)		-		-
Other^(b)		203		30		114
Net realized capital losses	$	(130)	$	(1,380)	$	(1,944)

(a) In 2016, includes realized gains on the sale of a portion of our holdings in People’s Insurance Company (Group) of China Limited and PICC Property & Casualty Company Limited (collectively, our PICC Investment).

(b) In 2018, primarily includes $96 million and $49 million of realized gains on the sale of shares of OneMain Holdings, Inc. and an investment in Castle Holdings LLC’s aircraft assets, respectively. In 2016, primarily includes $107 million of realized gains due to a purchase price adjustment on the sale of Class B shares of Prudential Financial, Inc. and losses of $253 million from the sale of a portion of our Life Settlements portfolio.

Summarized financial information of AIG's equity method investees

Years Ended December 31,
(in millions)		2018		2017		2016
Operating results:
Total revenues	$	15,310	$	13,066	$	9,512
Total expenses		(3,200)		(6,835)		(7,361)
Net income	$	12,110	$	6,231	$	2,151
At December 31,
(in millions)				2018		2017
Balance sheet:
Total assets			$	96,915	$	132,708
Total liabilities			$	(21,063)	$	(35,585)

Credit impairments recognized in earnings for available for sale fixed maturity securities

Years Ended December 31,
(in millions)		2018		2017		2016
Balance, beginning of year	$	526	$	1,098	$	1,747
Increases due to:
Credit impairments on new securities subject to impairment losses		59		122		204
Additional credit impairments on previously impaired securities		90		74		212
Reductions due to:
Credit impaired securities fully disposed for which there was no
prior intent or requirement to sell		(145)		(99)		(296)
Accretion on securities previously impaired due to credit^*		(530)		(669)		(767)
Divested businesses		-		-		(2)
Balance, end of year	$	-	$	526	$	1,098

* Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time.

Schedule of Purchased Credit Impaired (PCI) Securities, at acquisition date

(in millions)	At Date of Acquisition
Contractually required payments (principal and interest)	$	36,519
Cash flows expected to be collected^*		29,980
Recorded investment in acquired securities		20,229

* Represents undiscounted expected cash flows, including both principal and interest.

Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date

		December 31,		December 31,
(in millions)		2018		2017
Outstanding principal balance	$	12,495	$	14,718
Amortized cost		8,646		10,492
Fair value		10,280		12,293

Activity for accretable yield on Purchased Credit Impaired (PCI) Securities

Years Ended December 31,
(in millions)		2018		2017
Balance, beginning of year	$	7,501	$	7,498
Newly purchased PCI securities		33		190
Disposals		(21)		(18)
Accretion		(722)		(797)
Effect of changes in interest rate indices		207		(34)
Net reclassification from (to) non-accretable difference, including effects of prepayments		212		662
Balance, end of year	$	7,210	$	7,501

Schedule of fair value of securities pledged to counterparties under secured financing transactions

(in millions)		December 31, 2018		December 31, 2017
Fixed maturity securities available for sale	$	1,050	$	2,911
Other bond securities, at fair value	$	122	$	1,585

Transfer of Certain Financial Assets Accounted for as Secured Borrowings

	Remaining Contractual Maturity of the Agreements
(in millions)	Overnight and Continuous			up to 30 days		31 - 90 days		91 - 364 days		365 days or greater		Total
December 31, 2018
Bonds available for sale:
Non-U.S. governments	$	25	$	35	$	-	$	-	$	-	$	60
Corporate debt		51		55		-		-		-		106
Other bond securities:
U.S. government and government sponsored entities		11		-		-		-		-		11
Non-U.S. governments		-		3		-		-		-		3
Corporate debt		17		38		53		-		-		108
Total	$	104	$	131	$	53	$	-	$	-	$	288

December 31, 2017
Bonds available for sale:
Non-U.S. governments	$	-	$	7	$	19	$	-	$	-	$	26
Corporate debt		-		13		35		-		-		48
Other bond securities:
U.S. government and government sponsored entities		44		-		-		-		-		44
Non-U.S. governments		-		-		11		-		-		11
Corporate debt		-		387		1,065		-		-		1,452
Total	$	44	$	407	$	1,130	$	-	$	-	$	1,581

	Remaining Contractual Maturity of the Agreements
(in millions)		Overnight and Continuous		up to 30 days		31 - 90 days		91 - 364 days		365 days or greater		Total
December 31, 2018
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	50	$	130	$	-	$	-	$	180
Non-U.S. governments		-		21		8		-		-		29
Corporate debt		-		330		345		-		-		675
Other bond securities:
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		-		-		-		-		-
Total	$	-	$	401	$	483	$	-	$	-	$	884

December 31, 2017
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	-	$	-	$	-	$	-	$	-
Non-U.S. governments		-		-		18		-		-		18
Corporate debt		-		588		2,231		-		-		2,819
Other bond securities:
Non-U.S. governments		-		-		22		-		-		22
Corporate debt		-		-		56		-		-		56
Total	$	-	$	588	$	2,327	$	-	$	-	$	2,915

Schedule of fair value of securities pledged to the entity under reverse repurchase agreements

(in millions)		December 31, 2018		December 31, 2017
Securities collateral pledged to us	$	426	$	2,227
Amount sold or repledged by us		106		46

Available-for-sale Securities [Member]

Investment [Line Items]

Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments

	Years Ended
	December 31,
(in millions)		2018		2017
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	(9,920)	$	4,235
Equity securities^(a)		-		22
Other investments		(88)		(195)
Total increase (decrease) in unrealized appreciation (depreciation) of investments^(b)	$	(10,008)	$	4,062

(b) Excludes net unrealized losses attributable to businesses held for sale.

Equity Securities [Member]

Investment [Line Items]

Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments

Year Ended December 31, 2018				Other Invested
(in millions)		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	(184)	$	342	$	158
Less: Net gains and losses recognized during the year on equity securities
sold during the year		56		23		79
Unrealized gains and losses recognized during the reporting period on equity
securities still held at the reporting date	$	(240)	$	319	$	79