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INVESTMENTS

6 Months Ended

Jun. 30, 2021

5. Investments

Securities Available for Sale

The following table presents the amortized cost and fair value of our available for sale securities:

				Allowance		Gross		Gross
		Amortized		for Credit		Unrealized		Unrealized		Fair
(in millions)		Cost		Losses^(a)		Gains		Losses		Value
June 30, 2021
Bonds available for sale:
U.S. government and government sponsored entities	$	4,205	$	-	$	317	$	(21)	$	4,501
Obligations of states, municipalities and political subdivisions		13,261		-		1,931		(13)		15,179
Non-U.S. governments		15,356		(2)		836		(169)		16,021
Corporate debt		160,673		(84)		15,965		(1,001)		175,553
Mortgage-backed, asset-backed and collateralized:
RMBS		25,995		(11)		2,713		(113)		28,584
CMBS		14,710		-		797		(43)		15,464
CDO/ABS		17,420		-		403		(55)		17,768
Total mortgage-backed, asset-backed and collateralized		58,125		(11)		3,913		(211)		61,816
Total bonds available for sale^(b)	$	251,620	$	(97)	$	22,962	$	(1,415)	$	273,070
December 31, 2020
Bonds available for sale:
U.S. government and government sponsored entities	$	3,640	$	-	$	503	$	(17)	$	4,126
Obligations of states, municipalities and political subdivisions		13,915		-		2,216		(7)		16,124
Non-U.S. governments		14,231		(4)		1,181		(63)		15,345
Corporate debt		150,111		(164)		19,905		(554)		169,298
Mortgage-backed, asset-backed and collateralized:
RMBS		28,551		(16)		3,000		(70)		31,465
CMBS		15,182		(1)		1,023		(71)		16,133
CDO/ABS		18,707		(1)		425		(126)		19,005
Total mortgage-backed, asset-backed and collateralized		62,440		(18)		4,448		(267)		66,603
Total bonds available for sale^(b)	$	244,337	$	(186)	$	28,253	$	(908)	$	271,496

(a) Represents the allowance for credit losses that has been recognized. Changes in the allowance for credit losses are recorded through Net realized gains and losses and are not recognized in other comprehensive income.

(b) At June 30, 2021 and December 31, 2020, bonds available for sale held by us that were below investment grade or not rated totaled $27.9 billion and $28.2 billion, respectively.

Securities Available for Sale in a Loss Position for Which No Allowance for Credit Loss Has Been Recorded

The following table summarizes the fair value and gross unrealized losses on our available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit loss has been recorded:

	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
June 30, 2021
Bonds available for sale:
U.S. government and government sponsored entities	$	1,610	$	21	$	1	$	-	$	1,611	$	21
Obligations of states, municipalities and political
subdivisions		464		10		87		3		551		13
Non-U.S. governments		3,528		80		460		84		3,988		164
Corporate debt		22,682		715		4,413		211		27,095		926
RMBS		3,594		71		869		37		4,463		108
CMBS		1,474		27		304		16		1,778		43
CDO/ABS		3,541		36		937		19		4,478		55
Total bonds available for sale	$	36,893	$	960	$	7,071	$	370	$	43,964	$	1,330

December 31, 2020
Bonds available for sale:
U.S. government and government sponsored entities	$	649	$	17	$	-	$	-	$	649	$	17
Obligations of states, municipalities and political
subdivisions		267		4		78		3		345		7
Non-U.S. governments		1,287		28		262		33		1,549		61
Corporate debt		11,715		348		1,283		81		12,998		429
RMBS		3,486		40		282		18		3,768		58
CMBS		1,644		58		346		12		1,990		70
CDO/ABS		5,456		81		3,063		45		8,519		126
Total bonds available for sale	$	24,504	$	576	$	5,314	$	192	$	29,818	$	768

At June 30, 2021, we held 9,292 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 1,408 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). At December 31, 2020, we held 5,105 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 949 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). We did not recognize the unrealized losses in earnings on these fixed maturity securities at June 30, 2021 because it was determined that such losses were due to non-credit factors. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, liquidity position, expected defaults, industry and sector analysis, forecasts and available market data.

Contractual Maturities of Fixed Maturity Securities Available for Sale

The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity:

	Total Fixed Maturity Securities
	Available for Sale
		Amortized Cost,
(in millions)		Net of Allowance		Fair Value
June 30, 2021
Due in one year or less	$	8,599	$	8,659
Due after one year through five years		44,357		46,029
Due after five years through ten years		45,309		48,668
Due after ten years		95,144		107,898
Mortgage-backed, asset-backed and collateralized		58,114		61,816
Total	$	251,523	$	273,070

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.

The following table presents the gross realized gains and gross realized losses from sales or maturities of our available for sale securities:

		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
		Gross		Gross		Gross		Gross		Gross		Gross		Gross		Gross
	Realized		Realized		Realized		Realized		Realized		Realized		Realized		Realized
(in millions)		Gains		Losses		Gains		Losses		Gains		Losses		Gains		Losses
Fixed maturity securities	$	290	$	155	$	541	$	392	$	750	$	226	$	921	$	558

For the three- and six-month periods ended June 30, 2021, the aggregate fair value of available for sale securities sold was $6.0 billion and $12.4 billion, respectively, which resulted in net realized gains of $135 million and $524 million, respectively. Included within the net realized gains are $95 million and $390 million of net realized gains for the three- and six-month periods ended June 30, 2021, respectively, which relate to Fortitude Re funds withheld assets. These net realized gains are included in Net realized gains (losses) on Fortitude Re funds withheld assets.

For the three- and six-month periods ended June 30, 2020, the aggregate fair value of available for sale securities sold was $6.7 billion and $13.9 billion, respectively, which resulted in net realized gains of $149 million and $363 million, respectively. Included within the net realized gains (losses) are $122 million of net realized gains for the three- and six-month periods ended June 30, 2020, which relate to the Fortitude Re funds withheld assets for the period after deconsolidation of Fortitude Re. These net realized gains are included in Net realized gains (losses) on Fortitude Re funds withheld assets.

Other Securities Measured at Fair Value

The following table presents the fair value of fixed maturity securities measured at fair value based on our election of the fair value option, which are reported in the other bond securities caption in the financial statements, and equity securities measured at fair value:

		June 30, 2021				December 31, 2020
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	1,778	30	%	$	1,845	29	%
Corporate debt		12	-			12	-
Mortgage-backed, asset-backed and collateralized:
RMBS		334	6			429	7
CMBS		300	5			320	5
CDO/ABS and other collateralized		2,442	41			2,685	42
Total mortgage-backed, asset-backed and collateralized		3,076	52			3,434	54
Total fixed maturity securities		4,866	82			5,291	83
Equity securities		1,079	18			1,056	17
Total	$	5,945	100	%	$	6,347	100	%

Other Invested Assets

The following table summarizes the carrying amounts of other invested assets:

		June 30,		December 31,
(in millions)		2021		2020
Alternative investments^{(a) (b)}	$	10,453	$	9,572
Investment real estate^(c)		7,921		7,930
All other investments^(d)		1,765		1,558
Total	$	20,139	$	19,060

(a) At June 30, 2021, included hedge funds of $2.0 billion, private equity funds of $8.2 billion and affordable housing partnerships of $196 million. At December 31, 2020, included hedge funds of $2.3 billion, private equity funds of $7.0 billion and affordable housing partnerships of $257 million.

(b) At June 30, 2021, approximately 59 percent of our hedge fund portfolio is available for redemption in 2021. The remaining 41 percent will be available for redemption between 2022 and 2027.

(c) Net of accumulated depreciation of $797 million and $756 million at June 30, 2021 and December 31, 2020, respectively.

(d) Includes AIG’s 3.5 percent ownership interest in Fortitude Holdings which is recorded using the measurement alternative for equity securities and is carried at cost, which was $100 million as of June 30, 2021 and December 31, 2020.

Net Investment Income

The following table presents the components of Net investment income:

Three Months Ended June 30,	2021						2020
	Excluding Fortitude		Fortitude Re				Excluding Fortitude		Fortitude Re
	Re Funds		Funds Withheld				Re Funds		Funds Withheld
(in millions)	Withheld Assets		Assets		Total		Withheld Assets		Assets		Total
Available for sale fixed maturity securities,
including short-term investments	$	2,130	$	361	$	2,491	$	2,502	$	86	$	2,588
Other fixed maturity securities^(a)		93		6		99		371		3		374
Equity securities		(13)		-		(13)		56		-		56
Interest on mortgage and other loans		446		57		503		485		13		498
Alternative investments^(b)		579		92		671		(87)		14		(73)
Real estate		57		-		57		61		-		61
Other investments^(c)		(19)		1		(18)		1		-		1
Total investment income		3,273		517		3,790		3,389		116		3,505
Investment expenses		105		10		115		139		-		139
Net investment income	$	3,168	$	507	$	3,675	$	3,250	$	116	$	3,366

Six Months Ended June 30,	2021						2020
	Excluding Fortitude		Fortitude Re				Excluding Fortitude		Fortitude Re
	Re Funds		Funds Withheld				Re Funds		Funds Withheld
(in millions)	Withheld Assets		Assets		Total		Withheld Assets		Assets		Total
Available for sale fixed maturity securities,
including short-term investments	$	4,308	$	738	$	5,046	$	5,111	$	86	$	5,197
Other fixed maturity securities^(a)		(9)		6		(3)		311		3		314
Equity securities		9		-		9		(135)		-		(135)
Interest on mortgage and other loans		860		104		964		998		13		1,011
Alternative investments^(b)		1,151		161		1,312		(146)		14		(132)
Real estate		116		-		116		120		-		120
Other investments^(c)		121		2		123		(214)		-		(214)
Total investment income		6,556		1,011		7,567		6,045		116		6,161
Investment expenses		217		18		235		287		-		287
Net investment income	$	6,339	$	993	$	7,332	$	5,758	$	116	$	5,874

(a) Included in the three- and six-month periods ended June 30, 2021 were income of $35 million and losses of $46 million, respectively, related to fixed maturity securities measured at fair value that economically hedge liabilities described in (c) below. Included in the three- and six-month periods ended June 30, 2020 were income of $29 million and $198 million, respectively, related to fixed maturity securities measured at fair value that economically hedge liabilities described in (c) below.

(b) Included income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag.

(c) Included in the three- and six-month periods ended June 30, 2021 were losses of $40 million and income of $43 million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above. Included in the three- and six-month periods ended June 30, 2020 were losses of $13 million and $215 million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above.

Net Realized Gains and Losses

The following table presents the components of Net realized gains (losses):

Three Months Ended June 30,	2021						2020
	Excluding		Fortitude Re				Excluding		Fortitude Re
	Fortitude Re			Funds			Fortitude Re			Funds
	Funds		Withheld				Funds		Withheld
(in millions)	Withheld Assets		Assets			Total	Withheld Assets			Assets		Total
Sales of fixed maturity securities	$	40	$	95	$	135	$	27	$	122	$	149
Intent to sell		-		-		-		(3)		-		(3)
Change in allowance for credit losses on fixed maturity
securities		10		4		14		(24)		(7)		(31)
Change in allowance for credit losses on loans		67		8		75		(22)		4		(18)
Foreign exchange transactions		139		9		148		44		3		47
Variable annuity embedded derivatives, net of related
hedges		(53)		-		(53)		(1,010)		-		(1,010)
All other derivatives and hedge accounting		(336)		60		(276)		(568)		(26)		(594)
Other		90		(3)		87		(35)		-		(35)
Net realized gains (losses) – excluding Fortitude Re
funds withheld embedded derivative		(43)		173		130		(1,591)		96		(1,495)
Net realized losses on Fortitude Re
funds withheld embedded derivative		-		(2,056)		(2,056)		-		(837)		(837)
Net realized losses	$	(43)	$	(1,883)	$	(1,926)	$	(1,591)	$	(741)	$	(2,332)

Six Months Ended June 30,	2021						2020
	Excluding		Fortitude Re				Excluding		Fortitude Re
	Fortitude Re			Funds			Fortitude Re			Funds
	Funds		Withheld				Funds		Withheld
(in millions)	Withheld Assets		Assets			Total	Withheld Assets			Assets		Total
Sales of fixed maturity securities	$	134	$	390	$	524	$	241	$	122	$	363
Intent to sell		-		-		-		(3)		-		(3)
Change in allowance for credit losses on fixed maturity
securities		61		6		67		(222)		(7)		(229)
Change in allowance for credit losses on loans		108		3		111		(60)		4		(56)
Foreign exchange transactions		90		3		93		(210)		3		(207)
Variable annuity embedded derivatives, net of related
hedges		36		-		36		1,182		-		1,182
All other derivatives and hedge accounting		15		(57)		(42)		991		(26)		965
Other		208		1		209		9		-		9
Net realized gains – excluding Fortitude Re
funds withheld embedded derivative		652		346		998		1,928		96		2,024
Net realized gains (losses) on Fortitude Re
funds withheld embedded derivative		-		326		326		-		(837)		(837)
Net realized gains (losses)	$	652	$	672	$	1,324	$	1,928	$	(741)	$	1,187

Change in Unrealized Appreciation (Depreciation) of Investments

The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2021		2020		2021		2020
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	5,851	$	13,957	$	(5,798)	$	3,502
Other investments		(5)		-		(5)		-
Total increase (decrease) in unrealized appreciation (depreciation) of investments	$	5,846	$	13,957	$	(5,803)	$	3,502

The following table summarizes the unrealized gains and losses recognized in Net investment income during the reporting period on equity securities and other investments still held at the reporting date:

Three Months Ended June 30,	2021						2020
				Other						Other
			Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains (losses) recognized during the period on equity securities and
other investments	$	(13)	$	543	$	530	$	56	$	(71)	$	(15)
Less: Net gains (losses) recognized during the period on equity
securities and other investment sold during the period		(179)		(9)		(188)		5		13		18
Unrealized gains (losses) recognized during the reporting period
on equity securities and other investments still held at the reporting date	$	166	$	552	$	718	$	51	$	(84)	$	(33)

Six Months Ended June 30,	2021						2020
				Other						Other
			Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains (losses) recognized during the period on equity securities and
other investments	$	9	$	1,013	$	1,022	$	(135)	$	(200)	$	(335)
Less: Net gains (losses) recognized during the period on equity
securities and other investment sold during the period		(200)		15		(185)		17		15		32
Unrealized gains (losses) recognized during the reporting period
on equity securities and other investments still held at the reporting date	$	209	$	998	$	1,207	$	(152)	$	(215)	$	(367)

Evaluating Investments for AN ALLOWANCE FOR CREDIT LOSSES

Fixed Maturity Securities

If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and if the fair value of the security is below amortized cost, an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to Net realized gains (losses). No allowance is established in these situations and any previously recorded allowance is reversed. The new cost basis is not adjusted for subsequent increases in estimated fair value. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing.

For fixed maturity securities for which a decline in the fair value below the amortized cost is due to credit related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to Net realized gains (losses). The allowance for credit losses is limited to the difference between amortized cost and fair value. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not associated with credit related factors is presented in unrealized appreciation (depreciation) of fixed maturity securities on which an allowance for credit losses was previously recognized (a separate component of AOCI). Accrued interest is excluded from the measurement of the allowance for credit losses.

When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class:

 Current delinquency rates;

 Expected default rates and the timing of such defaults;

 Loss severity and the timing of any recovery; and

 Expected prepayment speeds.

When estimating future cash flows for corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers:

 Expected default rates and the timing of such defaults;

 Loss severity and the timing of any recovery; and

 Scenarios specific to the issuer and the security, which may also include estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets.

We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models.

Under the current expected credit loss (CECL) model, credit losses are reassessed each period. The allowance for credit losses and the corresponding charge to Net realized gains (losses) can be reversed if conditions change, however, the allowance for credit losses will never be reduced below zero. When we determine that all or a portion of a fixed maturity security is uncollectable, the uncollectable amortized cost amount is written off with a corresponding reduction to the allowance for credit losses. If we collect cash flows that were previously written off, the recovery is recognized by recording a gain in Net realized gains (losses).

Credit Impairments

The following table presents a rollforward of the changes in allowance for credit losses on available for sale fixed maturity securities by major investment category:

	Three Months Ended						Six Months Ended
	June 30, 2021						June 30, 2021
				Non-						Non-
(in millions)	Structured		Structured			Total	Structured		Structured			Total
Balance, beginning of period	$	14	$	108	$	122	$	17	$	169	$	186
Additions:
Securities for which allowance for credit losses were not
previously recorded		6		15		21		8		28		36
Purchases of available for sale debt securities accounted for
as purchased credit deteriorated assets		-		-		-		-		-		-
Accretion of available for sale debt securities accounted for
as purchased credit deteriorated assets		-		-		-		-		-		-
Reductions:
Securities sold during the period		(2)		(3)		(5)		(3)		(7)		(10)
Addition to (release of) the allowance for credit losses on
securities that had an allowance recorded in a previous
period, for which there was no intent to sell before
recovery of amortized cost basis		(8)		(27)		(35)		(12)		(91)		(103)
Write-offs charged against the allowance		-		(6)		(6)		-		(12)		(12)
Balance, end of period	$	10	$	87	$	97	$	10	$	87	$	97

	Three Months Ended						Six Months Ended
	June 30, 2020						June 30, 2020
				Non-						Non-
(in millions)	Structured		Structured			Total	Structured		Structured			Total
Balance, beginning of period*	$	37	$	174	$	211	$	7	$	-	$	7
Additions:
Securities for which allowance for credit losses were not
previously recorded		11		90		101		35		264		299
Purchases of available for sale debt securities accounted for
as purchased credit deteriorated assets		20		-		20		26		-		26
Accretion of available for sale debt securities accounted for
as purchased credit deteriorated assets		1		-		1		1		-		1
Reductions:
Securities sold during the period		(1)		(5)		(6)		(1)		(5)		(6)
Addition to (release of) the allowance for credit losses on
securities that had an allowance recorded in a previous
period, for which there was no intent to sell before
recovery of amortized cost basis		(31)		(33)		(64)		(31)		(33)		(64)
Write-offs charged against the allowance		-		(65)		(65)		-		(65)		(65)
Balance, end of period	$	37	$	161	$	198	$	37	$	161	$	198

* The beginning balance incorporates the Day 1 gross up on purchased credit deteriorated (PCD) assets held as of January 1, 2020.

Purchased Credit Deteriorated Securities

We purchase certain RMBS securities that have experienced more-than-insignificant deterioration in credit quality since origination. These are referred to as PCD assets. At the time of purchase an allowance is recognized for these PCD assets by adding it to the purchase price to arrive at the initial amortized cost. There is no credit loss expense recognized upon acquisition of a PCD asset. When determining the initial allowance for credit losses, management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs:

• Current delinquency rates;

• Expected default rates and the timing of such defaults;

• Loss severity and the timing of any recovery; and

• Expected prepayment speeds.

Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality.

We did not purchase securities with more than insignificant credit deterioration since their origination during the six-month period ended June 30, 2021.

Pledged Investments

Secured Financing and Similar Arrangements

We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value.

Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transactions. In the event of a decline in the fair value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements. At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively.

The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements:

(in millions)		June 30, 2021		December 31, 2020
Fixed maturity securities available for sale	$	3,700	$	3,636

At both June 30, 2021 and December 31, 2020, amounts borrowed under repurchase and securities lending agreements totaled $3.7 billion.

The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity:

	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
June 30, 2021
Bonds available for sale:
Non-U.S. governments	$	49	$	10	$	-	$	-	$	-	$	59
Corporate debt		150		89		-		-		-		239
Total	$	199	$	99	$	-	$	-	$	-	$	298

December 31, 2020
Bonds available for sale:
Non-U.S. governments	$	63	$	-	$	-	$	-	$	-	$	63
Corporate debt		96		97		-		-		-		193
Total	$	159	$	97	$	-	$	-	$	-	$	256

The following table presents the fair value of securities pledged under our securities lending agreements by collateral type and by remaining contractual maturity:

	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
June 30, 2021
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	-	$	69	$	-	$	-	$	69
Non-U.S. governments		-		-		5		24		-		29
Corporate debt		-		566		1,382		1,356		-		3,304
Total	$	-	$	566	$	1,456	$	1,380	$	-	$	3,402

December 31, 2020
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	-	$	103	$	-	$	-	$	103
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		982		2,295		-		-		3,277
Total	$	-	$	982	$	2,398	$	-	$	-	$	3,380

We also enter into agreements in which securities are purchased by us under agreements to resell (reverse repurchase agreements), which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms. These agreements are recorded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the right to sell or repledge this collateral received.

The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements:

(in millions)		June 30, 2021		December 31, 2020
Securities collateral pledged to us	$	2,018	$	5,359

At June 30, 2021 and December 31, 2020, the carrying value of reverse repurchase agreements totaled $2.0 billion and $5.4 billion, respectively.

We do not currently offset any secured financing transactions. All such transactions are collateralized and margined on a daily basis consistent with market standards and subject to enforceable master netting arrangements with rights of set off.

Insurance – Statutory and Other Deposits

The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance contracts, was $11.4 billion and $11.2 billion at June 30, 2021 and December 31, 2020, respectively.

Other Pledges and Restrictions

Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $210 million and $191 million of stock in FHLBs at June 30, 2021 and December 31, 2020, respectively. In addition, our subsidiaries have pledged securities available for sale and residential loans associated with borrowings and funding agreements from FHLBs, with a fair value of $5.6 billion and $891 million, respectively, at June 30, 2021 and $5.7 billion and $1.2 billion, respectively, at December 31, 2020.

Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations was approximately $1.5 billion at both June 30, 2021 and December 31, 2020. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties.

Investments held in escrow accounts or otherwise subject to restriction as to their use were $533 million and $494 million, comprised of bonds available for sale and short-term investments at June 30, 2021 and December 31, 2020, respectively.

Reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld. Following closing of the Majority Interest Fortitude Sale, a portion of the proceeds were contributed to AIG subsidiaries.

For further discussion on the sale of Fortitude Holdings see Note 1 and Note 7 to the Condensed Consolidated Financial Statements.