REINSURANCE (Tables)

3 Months Ended

Mar. 31, 2021

Effects of Reinsurance [Line Items]

Summary of the composition of pool of assets

	March 31, 2021				December 31, 2020
		Carrying		Fair		Carrying		Fair
(in millions)		Value		Value		Value		Value	Corresponding Accounting Policy
Fixed maturity securities - available for sale(a)	$	33,280	$	33,280	$	36,047	$	36,047	Fair value through other comprehensive income
Fixed maturity securities - fair value option		185		185		200		200	Fair value through net investment income
Commercial mortgage loans		3,713		3,957		3,679		4,010	Amortized cost
Real estate investments		326		559		358		585	Amortized cost
Private equity funds / hedge funds		1,216		1,216		1,168		1,168	Fair value through net investment income
Policy loans		404		404		413		413	Amortized cost
Short-term Investments		48		48		34		34	Fair value through net investment income
Funds withheld investment assets		39,172		39,649		41,899		42,457
Derivative assets, net(b)		-		-		(1)		(1)	Fair value through realized capital gains (losses)
Other(c)		532		532		604		604	Amortized cost
Total	$	39,704	$	40,181	$	42,502	$	43,060

(a)The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $(2.9) billion ($(2.3) billion after-tax) for the three months ended March 31, 2021.

(b) The derivative assets and liabilities have been presented net of collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $287 million and $12 million, respectively, as of March 31, 2021. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $357 million as of December 31, 2020. These derivative assets and liabilities are fully collateralized.

(c) Primarily comprised of Cash and Accrued investment income.

Summary of the impact of funds withheld arrangements with Fortitude Re

	Three Months Ended
(in millions)	March 31, 2021
Net underwriting income	$	-
Net investment income - Fortitude Re funds withheld assets		486
Net realized capital gains on Fortitude Re funds withheld assets:
Net realized capital gains - Fortitude Re funds withheld assets		173
Net realized capital gains - Fortitude Re embedded derivatives		2,382
Net realized capital gains on Fortitude Re funds withheld assets		2,555
Income from continuing operations before income tax benefit		3,041
Income tax expense(a)		639
Net income		2,402
Change in unrealized appreciation of all other investments(a)		(2,340)
Comprehensive income	$	62

(a)The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent.

Schedule of rollfoward of allowance for credit losses

Three Months Ended March 31,	2021						2020
		General		Life and				General		Life and
(in millions)	Insurance		Retirement			Total	Insurance		Retirement			Total
Balance, beginning of year	$	292	$	83	$	375	$	111	$	40	$	151
Initial allowance upon CECL adoption		-		-		-		202		22		224
Current period provision for expected credit losses and disputes		1		4		5		(4)		2		(2)
Write-offs charged against the allowance for credit losses and disputes		(4)		-		(4)		(3)		(4)		(7)
Other changes		2		-		2		(4)		-		(4)
Balance, end of period	$	291	$	87	$	378	$	302	$	60	$	362