XML 221 R46.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2019
FAIR VALUE MEASUREMENTS  
Assets and liabilities measured at fair value on a recurring basis

December 31, 2019

 

 

 

 

 

 

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

$

135

$

5,245

$

-

$

-

$

-

$

5,380

Obligations of states, municipalities and political subdivisions

 

-

 

13,197

 

2,121

 

-

 

-

 

15,318

Non-U.S. governments

 

60

 

14,809

 

-

 

-

 

-

 

14,869

Corporate debt

 

-

 

147,973

 

1,663

 

-

 

-

 

149,636

RMBS

 

-

 

19,397

 

13,408

 

-

 

-

 

32,805

CMBS

 

-

 

13,377

 

1,053

 

-

 

-

 

14,430

CDO/ABS

 

-

 

10,962

 

7,686

 

-

 

-

 

18,648

Total bonds available for sale

 

195

 

224,960

 

25,931

 

-

 

-

 

251,086

Other bond securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and government sponsored entities

 

-

 

2,121

 

-

 

-

 

-

 

2,121

Non-U.S. governments

 

-

 

-

 

-

 

-

 

-

 

-

Corporate debt

 

-

 

18

 

-

 

-

 

-

 

18

RMBS

 

-

 

346

 

143

 

-

 

-

 

489

CMBS

 

-

 

272

 

50

 

-

 

-

 

322

CDO/ABS

 

-

 

187

 

3,545

 

-

 

-

 

3,732

Total other bond securities

 

-

 

2,944

 

3,738

 

-

 

-

 

6,682

Equity securities

 

756

 

77

 

8

 

-

 

-

 

841

Other invested assets(b)

 

-

 

86

 

1,192

 

-

 

-

 

1,278

Derivative assets:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

1

 

3,199

 

-

 

-

 

-

 

3,200

Foreign exchange contracts

 

-

 

1,034

 

6

 

-

 

-

 

1,040

Equity contracts

 

5

 

593

 

171

 

-

 

-

 

769

Credit contracts

 

-

 

-

 

3

 

-

 

-

 

3

Other contracts

 

-

 

-

 

14

 

-

 

-

 

14

Counterparty netting and cash collateral

 

-

 

-

 

-

 

(2,427)

 

(1,806)

 

(4,233)

Total derivative assets

 

6

 

4,826

 

194

 

(2,427)

 

(1,806)

 

793

Short-term investments

 

2,299

 

3,044

 

-

 

-

 

-

 

5,343

Other assets

 

57

 

2,212

 

89

 

-

 

-

 

2,358

Separate account assets

 

89,069

 

4,203

 

-

 

-

 

-

 

93,272

Total

$

92,382

$

242,352

$

31,152

$

(2,427)

$

(1,806)

$

361,653

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Policyholder contract deposits

$

-

$

-

$

6,910

$

-

$

-

$

6,910

Derivative liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

4

 

2,745

 

-

 

-

 

-

 

2,749

Foreign exchange contracts

 

-

 

1,025

 

-

 

-

 

-

 

1,025

Equity contracts

 

8

 

111

 

20

 

-

 

-

 

139

Credit contracts

 

-

 

24

 

65

 

-

 

-

 

89

Other contracts

 

-

 

-

 

7

 

-

 

-

 

7

Counterparty netting and cash collateral

 

-

 

-

 

-

 

(2,427)

 

(527)

 

(2,954)

Total derivative liabilities

 

12

 

3,905

 

92

 

(2,427)

 

(527)

 

1,055

Other liabilities

 

-

 

45

 

-

 

-

 

-

 

45

Long-term debt

 

-

 

2,062

 

-

 

-

 

-

 

2,062

Total

$

12

$

6,012

$

7,002

$

(2,427)

$

(527)

$

10,072

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

 

1,213

 

13

 

27

 

-

 

-

 

1,253

Other invested assets(b)

 

-

 

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

Other assets

 

-

 

-

 

58

 

-

 

-

 

58

Separate account assets

 

77,202

 

4,645

 

-

 

-

 

-

 

81,847

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

Other liabilities

 

16

 

11

 

-

 

-

 

-

 

27

Long-term debt

 

-

 

2,213

 

-

 

-

 

-

 

2,213

Total

$

32

$

5,097

$

4,365

$

(1,713)

$

(187)

$

7,594

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

(b)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 $5.0 billion as of December 31, 2019 and December 31, 2018, 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

Reclassification

 

 

 

Fair Value

 

in Income on

 

 

Beginning

 

Included

 

Comprehensive

 

Issuances and

 

Transfers

 

Transfers

 

of Held

 

 

 

End

 

Instruments Held

(in millions)

 

of Year

 

in Income

 

Income (Loss)

 

Settlements, Net

 

In

 

Out

 

for Sale(a)

 

Acquisition

 

of Year

 

at End of Year

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bonds available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

municipalities and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

political subdivisions

$

2,000

$

(2)

$

247

$

282

$

51

$

(457)

$

-

$

-

$

2,121

$

-

Non-U.S. governments

 

11

 

5

 

1

 

(6)

 

5

 

(16)

 

-

 

-

 

-

 

-

Corporate debt

 

864

 

(7)

 

88

 

(540)

 

1,513

 

(255)

 

-

 

-

 

1,663

 

-

RMBS

 

14,199

 

782

 

55

 

(1,403)

 

83

 

(287)

 

(21)

 

-

 

13,408

 

-

CMBS

 

917

 

24

 

47

 

448

 

58

 

(441)

 

-

 

-

 

1,053

 

-

CDO/ABS

 

9,102

 

33

 

116

 

112

 

120

 

(1,780)

 

(17)

 

-

 

7,686

 

-

Total bonds available for sale

 

27,093

 

835

 

554

 

(1,107)

 

1,830

 

(3,236)

 

(38)

 

-

 

25,931

 

-

Other bond securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

RMBS

 

1,290

 

80

 

-

 

(1,227)

 

-

 

-

 

-

 

-

 

143

 

2

CMBS

 

77

 

5

 

-

 

(18)

 

-

 

(14)

 

-

 

-

 

50

 

6

CDO/ABS

 

4,478

 

361

 

-

 

(1,198)

 

-

 

(96)

 

-

 

-

 

3,545

 

149

Total other bond securities

 

5,845

 

446

 

-

 

(2,443)

 

-

 

(110)

 

-

 

-

 

3,738

 

157

Equity securities

 

27

 

-

 

-

 

(20)

 

2

 

(1)

 

-

 

-

 

8

 

1

Mortgage and other loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

receivable

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

Other invested assets

 

587

 

20

 

2

 

(33)

 

616

 

-

 

-

 

-

 

1,192

 

22

Other assets

 

58

 

-

 

-

 

(7)

 

-

 

-

 

38

 

-

 

89

 

-

Total

$

33,610

$

1,301

$

556

$

(3,610)

$

2,448

$

(3,347)

$

-

$

-

$

30,958

$

180

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in

 

 

 

 

Realized and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gains

 

 

 

 

Unrealized

 

 

 

Purchases,

 

 

 

 

 

 

 

 

 

 

 

(Losses) Included

 

 

Fair Value

 

(Gains) Losses

 

Other

 

Sales,

 

Gross

 

Gross

Reclassification

 

 

 

Fair Value

 

in Income on

 

 

Beginning

 

Included

 

Comprehensive

 

Issuances and

 

Transfers

 

Transfers

 

of Held

 

 

 

End

 

Instruments Held

(in millions)

 

of Year

 

in Income

 

Income (Loss)

 

Settlements, Net

 

In

 

Out

 

for Sale(a)

 

Acquisition

 

of Year

 

at End of Year

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policyholder contract deposits

$

4,116

$

1,947

$

-

$

847

$

-

$

-

$

-

$

-

$

6,910

$

(1,307)

Derivative liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

15

 

3

 

-

 

(18)

 

-

 

-

 

-

 

-

 

-

 

1

Foreign exchange contracts

 

(5)

 

(7)

 

-

 

6

 

-

 

-

 

-

 

-

 

(6)

 

3

Equity contracts

 

(75)

 

(43)

 

-

 

(33)

 

-

 

-

 

-

 

-

 

(151)

 

51

Credit contracts

 

227

 

(84)

 

-

 

(81)

 

-

 

-

 

-

 

-

 

62

 

46

Other contracts

 

(9)

 

(67)

 

-

 

69

 

-

 

-

 

-

 

-

 

(7)

 

66

Total derivative liabilities, net(b)

 

153

 

(198)

 

-

 

(57)

 

-

 

-

 

-

 

-

 

(102)

 

167

Total

$

4,269

$

1,749

$

-

$

790

$

-

$

-

$

-

$

-

$

6,808

$

(1,140)

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in

 

 

 

 

Realized and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gains

 

 

 

 

Unrealized

 

 

 

Purchases,

 

 

 

 

 

 

 

 

 

 

 

(Losses) Included

 

 

Fair Value

 

Gains (Losses)

 

Other

 

Sales,

 

Gross

 

Gross

Reclassification

 

 

 

Fair Value

 

in Income on

 

 

Beginning

 

Included

 

Comprehensive

 

Issuances and

 

Transfers

 

Transfers

 

of Held

 

 

 

End

 

Instruments Held

(in millions)

 

of Year

 

in Income

 

Income (Loss)

 

Settlements, Net

 

In

 

Out

 

for Sale(a)

 

Acquisition

 

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

 

-

 

(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

Reclassification

 

 

 

Fair Value

 

in Income on

 

 

Beginning

 

Included

 

Comprehensive

 

Issuances and

 

Transfers

 

Transfers

 

of Held

 

 

 

End

 

Instruments Held

(in millions)

 

of Year

 

in Income

 

Income (Loss)

 

Settlements, Net

 

In

 

Out

 

for Sale(a)

 

Acquisition

 

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

Total

$

4,323

$

(462)

$

-

$

406

$

-

$

2

$

-

$

-

$

4,269

$

557

 

(a)Reported in Other assets in the Consolidated Balance Sheet.

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

 
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

Reclassification

 

 

 

Fair Value

 

in Income on

 

 

Beginning

 

Included

 

Comprehensive

 

Issuances and

 

Transfers

 

Transfers

 

of Held

 

 

 

End

 

Instruments Held

(in millions)

 

of Year

 

in Income

 

Income (Loss)

 

Settlements, Net

 

In

 

Out

 

for Sale(a)

 

Acquisition

 

of Year

 

at End of Year

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bonds available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

municipalities and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

political subdivisions

$

2,000

$

(2)

$

247

$

282

$

51

$

(457)

$

-

$

-

$

2,121

$

-

Non-U.S. governments

 

11

 

5

 

1

 

(6)

 

5

 

(16)

 

-

 

-

 

-

 

-

Corporate debt

 

864

 

(7)

 

88

 

(540)

 

1,513

 

(255)

 

-

 

-

 

1,663

 

-

RMBS

 

14,199

 

782

 

55

 

(1,403)

 

83

 

(287)

 

(21)

 

-

 

13,408

 

-

CMBS

 

917

 

24

 

47

 

448

 

58

 

(441)

 

-

 

-

 

1,053

 

-

CDO/ABS

 

9,102

 

33

 

116

 

112

 

120

 

(1,780)

 

(17)

 

-

 

7,686

 

-

Total bonds available for sale

 

27,093

 

835

 

554

 

(1,107)

 

1,830

 

(3,236)

 

(38)

 

-

 

25,931

 

-

Other bond securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

RMBS

 

1,290

 

80

 

-

 

(1,227)

 

-

 

-

 

-

 

-

 

143

 

2

CMBS

 

77

 

5

 

-

 

(18)

 

-

 

(14)

 

-

 

-

 

50

 

6

CDO/ABS

 

4,478

 

361

 

-

 

(1,198)

 

-

 

(96)

 

-

 

-

 

3,545

 

149

Total other bond securities

 

5,845

 

446

 

-

 

(2,443)

 

-

 

(110)

 

-

 

-

 

3,738

 

157

Equity securities

 

27

 

-

 

-

 

(20)

 

2

 

(1)

 

-

 

-

 

8

 

1

Mortgage and other loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

receivable

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

Other invested assets

 

587

 

20

 

2

 

(33)

 

616

 

-

 

-

 

-

 

1,192

 

22

Other assets

 

58

 

-

 

-

 

(7)

 

-

 

-

 

38

 

-

 

89

 

-

Total

$

33,610

$

1,301

$

556

$

(3,610)

$

2,448

$

(3,347)

$

-

$

-

$

30,958

$

180

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in

 

 

 

 

Realized and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gains

 

 

 

 

Unrealized

 

 

 

Purchases,

 

 

 

 

 

 

 

 

 

 

 

(Losses) Included

 

 

Fair Value

 

(Gains) Losses

 

Other

 

Sales,

 

Gross

 

Gross

Reclassification

 

 

 

Fair Value

 

in Income on

 

 

Beginning

 

Included

 

Comprehensive

 

Issuances and

 

Transfers

 

Transfers

 

of Held

 

 

 

End

 

Instruments Held

(in millions)

 

of Year

 

in Income

 

Income (Loss)

 

Settlements, Net

 

In

 

Out

 

for Sale(a)

 

Acquisition

 

of Year

 

at End of Year

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policyholder contract deposits

$

4,116

$

1,947

$

-

$

847

$

-

$

-

$

-

$

-

$

6,910

$

(1,307)

Derivative liabilities, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

15

 

3

 

-

 

(18)

 

-

 

-

 

-

 

-

 

-

 

1

Foreign exchange contracts

 

(5)

 

(7)

 

-

 

6

 

-

 

-

 

-

 

-

 

(6)

 

3

Equity contracts

 

(75)

 

(43)

 

-

 

(33)

 

-

 

-

 

-

 

-

 

(151)

 

51

Credit contracts

 

227

 

(84)

 

-

 

(81)

 

-

 

-

 

-

 

-

 

62

 

46

Other contracts

 

(9)

 

(67)

 

-

 

69

 

-

 

-

 

-

 

-

 

(7)

 

66

Total derivative liabilities, net(b)

 

153

 

(198)

 

-

 

(57)

 

-

 

-

 

-

 

-

 

(102)

 

167

Total

$

4,269

$

1,749

$

-

$

790

$

-

$

-

$

-

$

-

$

6,808

$

(1,140)

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in

 

 

 

 

Realized and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gains

 

 

 

 

Unrealized

 

 

 

Purchases,

 

 

 

 

 

 

 

 

 

 

 

(Losses) Included

 

 

Fair Value

 

Gains (Losses)

 

Other

 

Sales,

 

Gross

 

Gross

Reclassification

 

 

 

Fair Value

 

in Income on

 

 

Beginning

 

Included

 

Comprehensive

 

Issuances and

 

Transfers

 

Transfers

 

of Held

 

 

 

End

 

Instruments Held

(in millions)

 

of Year

 

in Income

 

Income (Loss)

 

Settlements, Net

 

In

 

Out

 

for Sale(a)

 

Acquisition

 

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

 

-

 

(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

Reclassification

 

 

 

Fair Value

 

in Income on

 

 

Beginning

 

Included

 

Comprehensive

 

Issuances and

 

Transfers

 

Transfers

 

of Held

 

 

 

End

 

Instruments Held

(in millions)

 

of Year

 

in Income

 

Income (Loss)

 

Settlements, Net

 

In

 

Out

 

for Sale(a)

 

Acquisition

 

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

Total

$

4,323

$

(462)

$

-

$

406

$

-

$

2

$

-

$

-

$

4,269

$

557

(a)Reported in Other assets in the Consolidated Balance Sheet.

(b)Total Level 3 derivative exposures have been netted in these tables for presentation purposes only.
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, 2019

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

Bonds available for sale

$

862

$

(27)

$

-

$

835

Other bond securities

 

226

 

220

 

-

 

446

Equity securities

 

-

 

-

 

-

 

-

Other invested assets

 

20

 

-

 

-

 

20

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

 

 

 

 

 

 

 

 

 

 

 

Net

 

Net Realized

 

 

 

 

 

 

Investment

 

Capital

 

Other

 

 

(in millions)

 

Income

(Gains) Losses

 

Income

 

Total

December 31, 2019

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Policyholder contract deposits

$

-

$

1,947

$

-

$

1,947

Derivative liabilities, net

 

-

 

(134)

 

(64)

 

(198)

December 31, 2018

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Policyholder contract deposits

$

-

$

(334)

$

-

$

(334)

Derivative liabilities, net

 

-

 

5

 

(133)

 

(128)
Gross components of purchases, sales, issuances and settlements, net

 

 

 

 

 

 

Issuances

 

Purchases, Sales,

 

 

 

 

 

 

and

 

Issuances and

(in millions)

 

Purchases

 

Sales

 

Settlements(a)

 

Settlements, Net(a)

December 31, 2019

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

Bonds available for sale:

 

 

 

 

 

 

 

 

Obligations of states, municipalities and political subdivisions

$

362

$

(19)

$

(61)

$

282

Non-U.S. governments

 

-

 

-

 

(6)

 

(6)

Corporate debt

 

172

 

(129)

 

(583)

 

(540)

RMBS

 

1,418

 

(27)

 

(2,794)

 

(1,403)

CMBS

 

539

 

-

 

(91)

 

448

CDO/ABS

 

2,145

 

(561)

 

(1,472)

 

112

Total bonds available for sale

 

4,636

 

(736)

 

(5,007)

 

(1,107)

Other bond securities:

 

 

 

 

 

 

 

 

Corporate debt

 

-

 

-

 

-

 

-

RMBS

 

-

 

(1,101)

 

(126)

 

(1,227)

CMBS

 

18

 

(33)

 

(3)

 

(18)

CDO/ABS

 

-

 

(386)

 

(812)

 

(1,198)

Total other bond securities

 

18

 

(1,520)

 

(941)

 

(2,443)

Equity securities

 

8

 

-

 

(28)

 

(20)

Mortgage and other loans receivable

 

-

 

-

 

-

 

-

Other invested assets

 

97

 

-

 

(130)

 

(33)

Other assets

 

-

 

-

 

(7)

 

(7)

Total assets

$

4,759

$

(2,256)

$

(6,113)

$

(3,610)

Liabilities:

 

 

 

 

 

 

 

 

Policyholder contract deposits

$

-

$

852

$

(5)

$

847

Derivative liabilities, net

 

(44)

 

-

 

(13)

 

(57)

Total liabilities

$

(44)

$

852

$

(18)

$

790

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

Total liabilities

$

(52)

$

613

$

(155)

$

406

(a)There were no issuances during the years ended December 31, 2019 and 2018.
Significant unobservable inputs used for recurring fair value measurements

 

 

Fair Value at

 

 

 

 

 

December 31,

Valuation

 

Range

(in millions)

 

2019

Technique

Unobservable Input(b)

(Weighted Average)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Obligations of states,

 

 

 

 

 

municipalities and

 

 

 

 

 

political subdivisions

$

1,633

Discounted cash flow

Yield

3.35% - 3.95% (3.65%)

 

 

 

 

 

 

Corporate debt

 

1,087

Discounted cash flow

Yield

3.48% - 6.22% (4.85%)

 

 

 

 

 

 

RMBS(a)

 

11,746

Discounted cash flow

Constant prepayment rate

4.00% - 12.89% (8.44%)

 

 

 

 

Loss severity

33.68% - 76.91% (55.29%)

 

 

 

 

Constant default rate

1.68% - 6.17% (3.93%)

 

 

 

 

Yield

2.52% - 4.53% (3.52%)

 

 

 

 

 

 

CDO/ABS(a)

 

6,025

Discounted cash flow

Yield

2.92% - 4.91% (3.91%)

 

 

 

 

 

 

CMBS

 

476

Discounted cash flow

Yield

2.77% - 5.18% (3.97%)

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Embedded derivatives

 

 

 

 

 

within Policyholder

 

 

 

 

 

contract deposits:

 

 

 

 

 

 

 

 

 

 

 

Guaranteed minimum

 

 

 

 

 

withdrawal benefits

 

 

 

 

 

(GMWB)

 

2,474

Discounted cash flow

Equity volatility

6.15% - 48.85%

 

 

 

 

Base lapse rate

0.16% - 12.60%

 

 

 

 

Dynamic lapse multiplier

50.00% - 143.00%

 

 

 

 

Mortality multiplier(c)

38.00% - 147.00%

 

 

 

 

Utilization

90.00% - 100.00%

 

 

 

 

Equity / interest rate correlation

20.00% - 40.00%

 

 

 

 

NPA(d)

0.12% - 1.53%

 

 

 

 

 

 

Index Annuities

 

3,895

Discounted cash flow

Lapse rate

0.31% - 50.00%

 

 

 

 

Mortality multiplier(c)

24.00% - 180.00%

 

 

 

 

Option Budget

1.00% - 4.00%

 

 

 

 

NPA(d)

0.12% - 1.53%

 

 

 

 

 

 

Indexed Life

 

510

Discounted cash flow

Base lapse rate

0.00% - 37.97%

 

 

 

 

Mortality rate

0.00% - 100.00%

 

 

 

 

NPA(d)

0.12% - 1.53%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

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%

 

 

 

 

NPA(d)

0.25% - 1.77%

 

 

 

 

 

 

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%

 

 

 

 

NPA(d)

0.25% - 1.77%

 

 

 

 

 

 

Indexed Life

 

374

Discounted cash flow

Base lapse rate

0.00% - 13.00%

 

 

 

 

Mortality rate

0.00% - 100.00%

 

 

 

 

NPA(d)

0.25% - 1.77%

 

 

 

 

 

 

(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.

(d)NPA applied as a spread over risk-free curve for discounting.
Investments in certain entities carried at fair value using net asset value per share

 

 

December 31, 2019

 

December 31, 2018

 

 

 

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

$

1,189

$

1,543

 

$

847

$

1,327

 

 

 

 

 

 

 

 

 

 

 

Real Estate /

Infrastructure

Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities

 

400

 

290

 

 

190

 

83

 

 

 

 

 

 

 

 

 

 

 

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

 

111

 

155

 

 

126

 

127

 

 

 

 

 

 

 

 

 

 

 

Growth Equity

Funds that make investments in established companies for the purpose of growing their businesses

 

422

 

57

 

 

362

 

28

 

 

 

 

 

 

 

 

 

 

 

Mezzanine

Funds that make investments in the junior debt and equity securities of leveraged companies

 

325

 

414

 

 

211

 

75

 

 

 

 

 

 

 

 

 

 

 

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

 

773

 

206

 

 

514

 

307

Total private equity funds

 

3,220

 

2,665

 

 

2,250

 

1,947

Hedge funds:

 

 

 

 

 

 

 

 

 

 

Event-driven

Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations

 

727

 

-

 

 

787

 

-

 

 

 

 

 

 

 

 

 

 

 

Long-short

Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk

 

539

 

-

 

 

863

 

-

 

 

 

 

 

 

 

 

 

 

 

Macro

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

 

894

 

-

 

 

887

 

-

 

 

 

 

 

 

 

 

 

 

 

Distressed

Securities of companies that are in default, under bankruptcy protection or troubled

 

1

 

-

 

 

21

 

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

 

168

 

1

 

 

158

 

1

Total hedge funds

 

 

2,329

 

1

 

 

2,716

 

9

Total

 

$

5,549

$

2,666

 

$

4,966

$

1,956
Gains or losses related to the eligible instruments for which AIG elected the fair value option

Years Ended December 31,

Gain (Loss)

(in millions)

 

2019

 

2018

 

2017

Assets:

 

 

 

 

 

 

Bond and equity securities

$

1,046

$

343

$

1,646

Alternative investments(a)

 

591

 

213

 

509

Other, including Short-term investments

 

-

 

-

 

1

Liabilities:

 

 

 

 

 

 

Other liabilities

 

-

 

-

 

(2)

Long-term debt(b)

 

(181)

 

(1)

 

(49)

Total gain

$

1,456

$

555

$

2,105

(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, 2019

 

December 31, 2018

 

 

 

Outstanding

 

 

 

 

 

Outstanding

 

 

(in millions)

Fair Value

Principal Amount

Difference

 

Fair Value

Principal Amount

Difference

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt*

$

2,062

$

1,502

$

560

 

$

2,213

$

1,653

$

560

*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

 

 

2019

 

2018

 

2017

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

$

-

$

-

$

329

$

329

 

$

76

$

97

$

77

Investments in life settlements

 

-

 

-

 

-

 

-

 

 

-

 

-

 

360

Other assets

 

-

 

-

 

1

 

1

 

 

74

 

64

 

157

Total

$

-

$

-

$

330

$

330

 

$

150

$

161

$

594

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

$

-

$

-

$

315

$

315

 

 

 

 

 

 

 

Investments in life settlements

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

Other assets

 

-

 

-

 

11

 

11

 

 

 

 

 

 

 

Total

$

-

$

-

$

326

$

326

 

 

 

 

 

 

 

(a)Impairments in 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

December 31, 2019

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

Mortgage and other loans receivable

$

-

$

101

$

48,904

$

49,005

$

46,984

Other invested assets

 

-

 

735

 

6

 

741

 

742

Short-term investments

 

-

 

7,887

 

-

 

7,887

 

7,887

Cash

 

2,856

 

-

 

-

 

2,856

 

2,856

Other assets

 

291

 

20

 

-

 

311

 

311

Liabilities:

 

 

 

 

 

 

 

 

 

 

Policyholder contract deposits associated

 

 

 

 

 

 

 

 

 

 

with investment-type contracts

 

-

 

255

 

132,991

 

133,246

 

126,137

Other liabilities

 

15

 

3,048

 

-

 

3,063

 

3,063

Long-term debt and debt of consolidated investment entities

 

-

 

27,024

 

8,883

 

35,907

 

33,288

Separate account liabilities - investment contracts

 

-

 

88,770

 

-

 

88,770

 

88,770

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 and debt of consolidated investment entities

 

-

 

22,822

 

8,775

 

31,597

 

32,327

Separate account liabilities - investment contracts

 

-

 

77,651

 

-

 

77,651

 

77,651