REINSURANCE (Tables)

6 Months Ended

Jun. 30, 2021

Effects of Reinsurance [Line Items]

Summary of the composition of pool of assets

	June 30, 2021				December 31, 2020
		Carrying		Fair		Carrying		Fair
(in millions)		Value		Value		Value		Value	Corresponding Accounting Policy
Fixed maturity securities - available for sale(a)	$	34,165	$	34,165	$	36,047	$	36,047	Fair value through other comprehensive income
Fixed maturity securities - fair value option		179		179		200		200	Fair value through net investment income
Commercial mortgage loans		3,706		3,978		3,679		4,010	Amortized cost
Real estate investments		304		553		358		585	Amortized cost
Private equity funds / hedge funds		1,356		1,356		1,168		1,168	Fair value through net investment income
Policy loans		395		395		413		413	Amortized cost
Short-term Investments		94		94		34		34	Fair value through net investment income
Funds withheld investment assets		40,199		40,720		41,899		42,457
Derivative assets, net(b)		51		51		(1)		(1)	Fair value through net realized gains (losses)
Other(c)		632		632		604		604	Amortized cost
Total	$	40,882	$	41,403	$	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 $(1.6) billion ($(1.3) billion after-tax) for the six months ended June 30, 2021 and $1.0 billion ($812 million after-tax) during the post deconsolidation period (June 2, 2020 - December 31, 2020).

(b) The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $308 million and $10 million, respectively, as of June 30, 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 either by cash or securities.

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

Summary of the impact of funds withheld arrangements with Fortitude Re

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2021		2020		2021		2020
Net underwriting income(a)	$	-	$	-	$	-	$	-
Net investment income - Fortitude Re funds withheld assets		507		116		993		116
Net realized gains (losses) on Fortitude Re funds withheld assets:
Net realized gains - Fortitude Re funds withheld assets		173		96		346		96
Net realized gains (losses) - Fortitude Re embedded derivatives		(2,056)		(837)		326		(837)
Net realized gains (losses) on Fortitude Re funds withheld assets		(1,883)		(741)		672		(741)
Income (loss) from continuing operations before income tax expense (benefit)		(1,376)		(625)		1,665		(625)
Income tax expense (benefit)(b)		(289)		(131)		350		(131)
Net income (loss)		(1,087)		(494)		1,315		(494)
Change in unrealized appreciation (depreciation) of all other investments(b)		1,055		438		(1,285)		438
Comprehensive income (loss)	$	(32)	$	(56)	$	30	$	(56)

(a) Effective in the second quarter of 2021, an amendment was made to the purchase agreement to finalize the post-closing purchase price adjustment for adverse reserve development and as a result, during the three months ended June 30, 2021, AIG recognized a $21 million benefit through Policyholder benefits and losses incurred.

(b) 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 rollforward of allowance for credit losses

Three Months Ended June 30,	2021						2020
		General		Life and				General		Life and
(in millions)	Insurance		Retirement			Total	Insurance		Retirement			Total
Balance, beginning of period	$	291	$	87	$	378	$	302	$	60	$	362
Addition to (release of) provision for expected credit losses and disputes, net		(1)		-		(1)		6		1		7
Write-offs charged against the allowance for credit losses and disputes		(3)		-		(3)		(2)		(1)		(3)
Other changes		-		-		-		(1)		(1)		(2)
Balance, end of period	$	287	$	87	$	374	$	305	$	59	$	364

Six Months Ended June 30,	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
Addition to (release of) provision for expected credit losses and disputes, net		-		4		4		2		3		5
Write-offs charged against the allowance for credit losses and disputes		(7)		-		(7)		(5)		(5)		(10)
Other changes		2		-		2		(5)		(1)		(6)
Balance, end of period	$	287	$	87	$	374	$	305	$	59	$	364