INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2021

Investments [Line Items]

Amortized cost or cost and fair value of 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

	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

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

Gross realized gains and gross realized losses from sales or maturities of 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

Value of other securities measured at fair value based on election of the fair value option

		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	%

Carrying amounts values 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.

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.

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

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

Rollforward of 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.

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

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

Schedule of fair value of securities pledged under 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

	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

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

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