Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2016	Nov. 02, 2016
Document and Entity Information
Entity Registrant Name	AMERICAN INTERNATIONAL GROUP INC
Entity Central Index Key	0000005272
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,027,135,119
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Fixed maturity securities:
Bonds available for sale, at fair value (amortized cost: 2016 - $241,415; 2015 - $240,968)	$ 260,649	$ 248,245
Other bond securities, at fair value (See Note 6)	14,772	16,782
Equity Securities:
Common and preferred stock available for sale, at fair value (cost: 2016 - $1,167; 2015 - $1,379)	1,544	2,915
Other common and preferred stock, at fair value (See Note 6)	498	921
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2016 - $11; 2015 - $11)	32,413	29,565
Other invested assets (portion measured at fair value: 2016 - $7,092; 2015 - $8,912)	25,747	29,794
Short-term investments (portion measured at fair value: 2016 - $2,724; 2015 - $2,591)	10,745	10,132
Total investments	346,368	338,354
Cash	2,498	1,629
Accrued investment income	2,608	2,623
Premiums and other receivables, net of allowance	11,606	11,451
Reinsurance assets, net of allowance	21,706	20,413
Deferred income taxes	18,412	20,394
Deferred policy acquisition costs	10,537	11,115
Other assets, including restricted cash of $196 in 2016 and $170 in 2015 (portion measured at fair value: 2016 - $2,133; 2015 - $1,309)	11,546	11,289
Separate account assets, at fair value	82,626	79,574
Assets held for sale	6,661
Total assets	514,568	496,842
Liabilities:
Liability for unpaid losses and loss adjustment expenses	72,487	74,942
Unearned premiums	21,047	21,318
Future policy benefits for life and accident and health insurance contracts	47,848	43,585
Policyholder contract deposits (portion measured at fair value: 2016 - $4,049; 2015 - $2,325)	132,808	127,588
Other policyholder funds (portion measured at fair value: 2016 - $6; 2015 - $6)	4,418	4,212
Other liabilities (portion measured at fair value: 2016 - $2,894; 2015 - $2,082)	27,983	26,164
Long-term debt (portion measured at fair value: 2016 - $3,664; 2015 - $3,670)	32,277	29,249
Separate account liabilities	82,626	79,574
Liabilities held for sale	3,909
Total liabilities	425,403	406,632
Contingencies, commitments and guarantees (see Note 10)
AIG shareholders' equity:
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2016 - 1,906,671,492 and 2015 - 1,906,671,492	4,766	4,766
Treasury stock, at cost; 2016 - 863,782,936 shares; 2015 - 712,754,875 shares of common stock	(38,518)	(30,098)
Additional paid-in capital	81,281	81,510
Retained earnings	32,077	30,943
Accumulated other comprehensive income (loss)	9,057	2,537
Total AIG shareholders' equity	88,663	89,658
Non-redeemable noncontrolling interests	502	552
Total equity	89,165	90,210
Total liabilities and equity	$ 514,568	$ 496,842

CONSOLIDATED BALANCE SHEETS (Parenthetical - assets and liabilities) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Assets:
Bonds available for sale, amortized cost	$ 241,415	$ 240,968
Common and preferred stock available for sale, cost	1,167	1,379
Mortgage and other loans receivable, portion measured at fair value	11	11
Other invested assets, portion measured at fair value	7,092	8,912
Short-term investments, portion measured at fair value	2,724	2,591
Other assets, restricted cash	196	170
Other assets, portion measured at fair value	2,133	1,309
Liabilities:
Policyholder contract deposits, portion measured at fair value	4,049	2,325
Other policyholder funds, portion measured at fair value	6	6
Other liabilities, portion measured at fair value	2,894	2,082
Long-term debt, portion measured at fair value	$ 3,664	$ 3,670

CONSOLIDATED BALANCE SHEETS (Parenthetical - equity) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
AIG shareholders' equity:
Common stock, par value (in dollars per share)	$ 2.5	$ 2.5
Common stock, shares authorized	5,000,000,000	5,000,000,000
Common stock, shares issued	1,906,671,492	1,906,671,492
Treasury stock, shares of common stock	863,782,936	712,754,875

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Premiums	$ 8,581	$ 8,862	$ 26,138	$ 27,229
Policy fees	646	701	2,029	2,066
Net investment income	3,783	3,206	10,479	10,870
Net realized capital gains (losses):
Total other-than-temporary impairments on available for sale securities	(58)	(225)	(332)	(460)
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss)	(14)	(17)	(36)	(31)
Net other-than-temporary impairments on available for sale securities recognized in net income	(72)	(242)	(368)	(491)
Other realized capital gains	(693)	(100)	(461)	1,616
Total net realized capital gains (losses)	(765)	(342)	(829)	1,125
Other income	609	395	1,540	3,206
Total revenues	12,854	12,822	39,357	44,496
Benefits, losses and expenses:
Policyholder benefits and losses incurred	7,489	6,936	20,748	20,587
Interest credited to policyholder account balances	887	881	2,798	2,758
Amortization of deferred policy acquisition costs	1,018	1,275	3,625	3,981
General operating and other expenses	2,536	3,175	8,125	9,214
Interest expense	329	321	955	977
(Gain) Loss on extinguishment of debt	(14)	346	76	756
Net (gain) loss on sale of properties and divested businesses	(128)	3	(351)	10
Total benefits, losses and expenses	12,117	12,937	35,976	38,283
Income (loss) from continuing operations before income tax expense (benefit)	737	(115)	3,381	6,213
Income tax expense (benefit):
Income tax expense (benefit)	304	65	1,170	2,142
Income from continuing operations	433	(180)	2,211	4,071
Income (loss) from discontinued operations, net of income tax expense	3	(17)	(54)	0
Net income (loss)	436	(197)	2,157	4,071
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	(26)	34	(35)	34
Net income attributable to AIG	462	(231)	2,192	4,037
Net income (loss) attributable to AIG common shareholders	$ 462	$ (231)	$ 2,192	$ 4,037
Basic:
Income from continuing operations	$ 0.43	$ (0.17)	$ 2.02	$ 3.05
Income (loss) from discontinued operations - basic (in dollars per share)	0	(0.01)	(0.05)	0
Net income attributable to AIG	0.43	(0.18)	1.97	3.05
Diluted:
Income from continuing operations	0.42	(0.17)	1.97	2.97
Income (loss) from discontinued operations	0	(0.01)	(0.05)	0
Net income attributable to AIG	$ 0.42	$ (0.18)	$ 1.92	$ 2.97
Weighted average shares outstanding:
Basic	1,071,295,892	1,279,072,748	1,113,650,878	1,324,407,969
Diluted	1,102,400,770	1,279,072,748	1,142,700,207	1,357,108,784
Dividends declared per common share	$ 0.32	$ 0.28	$ 0.96	$ 0.53

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 436	$ (197)	$ 2,157	$ 4,071
Other comprehensive income (loss), net of tax
Change in unrealized appreciation of fixed maturity investments on which other-than-temporary credit impairments were recognized	217	(61)	(110)	(169)
Change in unrealized appreciation (depreciation) of all other investments	466	(857)	6,302	(3,309)
Change in foreign currency translation adjustments	111	(238)	332	(734)
Change in retirement plan liabilities adjustment	4	92	(4)	148
Other comprehensive income (loss)	798	(1,064)	6,520	(4,064)
Comprehensive income (loss)	1,234	(1,261)	8,677	7
Total comprehensive income (loss) attributable to noncontrolling interests	(26)	33	(35)	30
Comprehensive income attributable to AIG	$ 1,260	$ (1,294)	$ 8,712	$ (23)

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions	Total	Total AIG Shareholders' Equity	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Non redeemable Non-controlling Interests
Balance at Dec. 31, 2014	$ 107,272	$ 106,898	$ 4,766	$ (19,218)	$ 80,958	$ 29,775	$ 10,617	$ 374
Increase (Decrease) in Stockholders' Equity
Purchase of common stock	(7,663)	(7,663)	0	(7,663)
Net income attributable to AIG or other noncontrolling interests	4,071	4,037	0	0	0	4,037	0	34
Dividends	(687)	(687)				(687)
Other Comprehensive Income (Loss)	(4,064)	(4,060)	0	0	0	0	(4,060)	(4)
Current and deferred income taxes	(7)	(7)			(7)
Net increase due to acquisitions and consolidations	214							214
Contributions from noncontrolling interests	(2)	0	0	0	0	0	0	(2)
Distributions to noncontrolling interests	(5)	0	0	0	0	0	0	(5)
Other	490	481	0	0	484	(3)	0	9
Balance at Sep. 30, 2015	99,619	98,999	4,766	(26,881)	81,435	33,122	6,557	620
Balance at Dec. 31, 2015	90,210	89,658	4,766	(30,098)	81,510	30,943	2,537	552
Increase (Decrease) in Stockholders' Equity
Common stock issued under stock plans	(87)	(87)		86	(173)
Purchase of common stock	(8,506)	(8,506)	0	(8,506)	0	0	0	0
Net income attributable to AIG or other noncontrolling interests	2,157	2,192	0	0	0	2,192	0	(35)
Dividends	(1,051)	(1,051)	0	0	0	(1,051)	0	0
Other Comprehensive Income (Loss)	6,520	6,520	0	0	0	0	6,520	0
Current and deferred income taxes	19	19			19
Net increase due to acquisitions and consolidations	9							9
Contributions from noncontrolling interests	4	0	0	0	0	0	0	4
Distributions to noncontrolling interests	(31)	0	0	0	0	0	0	(31)
Other	(79)	(82)	0	0	(75)	(7)	0	3
Balance at Sep. 30, 2016	$ 89,165	$ 88,663	$ 4,766	$ (38,518)	$ 81,281	$ 32,077	$ 9,057	$ 502

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ 2,157	$ 4,071
(Income) loss from discontinued operations	54	0
Noncash revenues, expenses, gains and losses included in income:
Net gains on sales of securities available for sale and other assets	(1,125)	(660)
Net (gains) losses on sales of divested businesses	(351)	10
Net (gains) losses on extinguishment of debt	76	756
Unrealized gains in earnings - net	1,396	(550)
Equity in income from equity method investments, net of dividends or distributions	50	(684)
Depreciation and other amortization	2,814	3,502
Impairments of assets	872	886
Changes in operating assets and liabilities:
Insurance reserves	700	(1,618)
Premiums and other receivables and payables - net	347	(389)
Reinsurance assets and funds held under reinsurance treaties	(1,234)	1,396
Capitalization of deferred policy acquisition costs	(3,598)	(4,376)
Current and deferred income taxes - net	962	1,736
Other, net	(1,367)	(1,846)
Total adjustments	(458)	(1,837)
Net cash provided by operating activities	1,753	2,234
Sales or distribution of:
Available for sale investments	22,077	20,846
Other securities	3,367	4,895
Other invested assets	5,255	7,015
Maturities of fixed maturity securities available for sale	18,210	18,427
Principal payments received on and sales of mortgage and other loans receivable	4,435	3,298
Purchases of:
Available for sale investments	(42,572)	(36,333)
Other securities	(557)	(1,622)
Other invested assets	(2,472)	(2,675)
Mortgage and other loans receivable	(7,784)	(6,845)
Net change in restricted cash	(49)	1,476
Net change in short-term investments	(855)	(1,028)
Other, net	1,270	(774)
Net cash provided by investing activities	325	6,680
Proceeds from (payments for)
Policyholder contract deposits	13,584	12,216
Policyholder contract withdrawals	(9,986)	(10,801)
Issuance of long-term debt	11,430	6,449
Repayments of long-term debt	(7,683)	(8,343)
Issuance of Common Stock	0	0
Purchase of Common Stock	(8,506)	(7,473)
Dividends paid	(1,051)	(687)
Other, net	915	(425)
Net cash provided by (used in) financing activities	(1,297)	(9,064)
Effect of exchange rate changes on cash	88	(39)
Net increase (decrease) in cash	869	(189)
Cash at beginning of year	1,629	1,758
Cash at end of year	$ 2,498	$ 1,569

Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash paid during the period for:
Interest	$ 1,009	$ 1,112
Taxes	208	406
Non-cash investing/financing activities:
Interest credited to policyholder contract deposits included in financing activities	$ 2,691	2,801
Aer Cap
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Non-cash consideration received from sale		$ 500

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Sep. 30, 2016
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION American International Group, Inc. (AIG) is a leading global insurance organization serving customers in more than 100 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock, par value $2.50 per share (AIG Common Stock), is listed on the New York Stock Exchange (NYSE: AIG) and the Tokyo Stock Exchange. Unless the context indicates otherwise, the terms “AIG,” “we,” “us” or “our” mean American International Group, Inc. and its consolidated subsidiaries and the term “AIG Parent” means American International Group, Inc. and not any of its consolidated subsidiaries. These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 (2015 Annual Report). The condensed consolidated financial information as of December 31, 2015 included herein has been derived from the audited Consolidated Financial Statements in the 2015 Annual Report. Certain of our foreign subsidiaries included in the Condensed Consolidated Financial Statements report on different fiscal-period bases. The effect on our consolidated financial condition and results of operations of all material events occurring at these subsidiaries through the date of each of the periods presented in these Condensed Consolidated Financial Statements has been considered for adjustment and/or disclosure. In the opinion of management, these Condensed Consolidated Financial Statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein. Interim-period operating results may not be indicative of the operating results for a full year. We evaluated the need to recognize or disclose events that occurred subsequent to September 30, 2016 and prior to the issuance of these Condensed Consolidated Financial Statements. Sales of Businesses NSM On August 31, 2016, we sold our controlling interest in NSM Insurance Group (NSM) a managing general agent to ABRY Partners, a private equity firm, for consideration of $201 million resulting in a pretax gain of approximately $105 million in the third quarter of 2016. We retained an equity interest in a newly formed joint venture and will continue to provide underwriting capacity to NSM, and we retained exclusive renewal rights for certain business written through NSM. In addition, see Note 4 to the Condensed Consolidated Financial Statements for information regarding recent sales of businesses that are classified as held-for-sale. ILFC On May 14, 2014, we completed the sale of 100 percent of the common stock of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. (AerCap), in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares (the AerCap Transaction). The total value of the consideration was based in part on AerCap’s closing price per share of $47.01 on May 13, 2014. In June 2015, we sold 86.9 million ordinary shares of AerCap by means of an underwritten public offering of 71.2 million ordinary shares and a private sale of 15.7 million ordinary shares to AerCap. We received cash proceeds of approximately $3.7 billion, reflecting proceeds of approximately $3.4 billion from the underwritten offering and cash proceeds of $250 million from the private sale of shares to AerCap. In connection with the closing of the private sale of shares to AerCap, we also received $500 million of 6.50% fixed-to-floating rate junior subordinated notes issued by AerCap Global Aviation Trust and guaranteed by AerCap and certain of its subsidiaries. These notes, included in Bonds available for sale, mature in 2045 and are callable beginning in 2025. We accounted for our interest in AerCap using the equity method of accounting through the date of the June 2015 sale, and as available for sale thereafter. In August 2015, we sold our remaining 10.7 million ordinary shares of AerCap by means of an underwritten public offering and received proceeds of approximately $500 million. Use of Estimates The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset; liability for unpaid losses and loss adjustment expenses; reinsurance assets; valuation of future policy benefit liabilities and timing and extent of loss recognition; valuation of liabilities for guaranteed benefit features of variable annuity products; estimated gross profits to value deferred acquisition costs for investment-oriented products; impairment charges, including other-than-temporary impairments on available for sale securities, impairments on other invested assets, including investments in life settlements, and goodwill impairment; liability for legal contingencies; and fair value measurements of certain financial assets and liabilities. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Standards Adopted During 2016 Accounting for Share-Based Payments with Performance Targets In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. We adopted the standard prospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity In August 2014, the FASB issued an accounting standard that allows a reporting entity to measure the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity using the fair value of either its financial assets or financial liabilities, whichever is more observable. We adopted the standard retrospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Consolidation: Amendments to the Consolidation Analysis In February 2015, the FASB issued an accounting standard that affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. We adopted the standard prospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued an accounting standard that provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change generally accepted accounting principles applicable to a customer's accounting for service contracts. Consequently, all software licenses will be accounted for consistent with other licenses of intangible assets. We adopted this standard prospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued an accounting standard that amends the guidance for debt issuance costs by requiring such costs to be presented as a deduction to the corresponding debt liability, rather than as an asset, and for the amortization of such costs to be reported as interest expense. The amendments are intended to simplify the presentation of debt issuance costs and make it consistent with the presentation of debt discounts or premiums. The amendments, however, do not change the recognition and measurement guidance applicable to debt issuance costs. We adopted this standard on a retrospective basis on January 1, 2016, its required effective date. Because the new standard did not affect accounting recognition or measurement of debt issuance costs, the adoption of the standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent) In May 2015, the FASB amended guidance on fair value disclosures for investments for which fair value is measured using the net asset value (NAV) per share (or its equivalent) as a practical expedient. The amendments in this update remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. In addition, the amendment removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share as a practical expedient. We adopted the standard on its required effective date of January 1, 2016 on a retrospective basis. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Future Application of Accounting Standards Revenue Recognition In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other activities. The standard is effective for interim and annual reporting periods beginning after December 15, 2017 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We plan to adopt the standard on its required effective date of January 1, 2018 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. Short Duration Insurance Contracts In May 2015, the FASB issued an accounting standard that requires additional disclosures (including accident year information) for short-duration insurance contracts. New disclosures about the liability for unpaid losses and loss adjustment expenses will be required. The annual disclosures by accident year include: disaggregated net incurred and paid claims development tables segregated by business type (not required to exceed 10 years), reconciliation of total net reserves included in development tables to the reported liability for unpaid losses and loss adjustment expenses, incurred but not reported (IBNR) information, quantitative information and a qualitative description about claim frequency, and the average annual percentage payout of incurred claims. Further, the new standard requires, when applicable, disclosures about discounting liabilities for unpaid losses and loss adjustment expenses and significant changes and reasons for changes in methodologies and assumptions used to determine unpaid losses and loss adjustment expenses. The standard is effective for annual reporting periods beginning after December 15, 2015 including interim reporting periods thereafter and must be applied retrospectively. While early adoption is permitted, we plan to adopt the standard on its required effective date. The standard requires additional disclosures only and the adoption of the standard will have no effect on our consolidated financial condition, results of operations or cash flows. In addition, the roll forward of the liability for unpaid losses and loss adjustment expenses currently disclosed in annual financial statements will be required for interim periods beginning in the first quarter of 2017. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued an accounting standard that affects the recognition, measurement, presentation, and disclosure of financial instruments. Specifically, under the new standard, equity investments (other than those accounted for using the equity method of accounting or those subject to consolidation) will be measured at fair value with changes in fair value recognized in earnings. Also, for those financial liabilities for which fair value option accounting has been elected, the new standard requires changes in fair value due to instrument-specific credit risk to be presented separately in other comprehensive income. The standard updates certain fair value disclosure requirements for financial instruments carried at amortized cost. The standard is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption of certain provisions is permitted. We are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. Leases In February 2016, the FASB issued an accounting standard that will require lessees with lease terms of more than 12 months to recognize a right of use asset and a corresponding lease liability on their balance sheets. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted using a modified retrospective approach. We are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. Derivative Contract Novations In March 2016, the FASB issued an accounting standard that clarifies that a change in the counterparty (novation) to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. Contingent Put and Call Options in Debt Instruments In March 2016, the FASB issued an accounting standard that clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The standard requires an evaluation of embedded call (put) options solely on a four-step decision sequence that requires an entity to consider whether (1) the amount paid upon settlement is adjusted based on changes in an index, (2) the amount paid upon settlement is indexed to an underlying other than interest rates or credit risk, (3) the debt involves a substantial premium or discount and (4) the put or call option is contingently exercisable. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued an accounting standard that eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods during which the investment had been held. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued a standard that simplifies several aspects of the accounting for share-based compensation, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. Calculation of Credit Losses In June 2016, the FASB issued an accounting standard that will change how entities account for credit losses for most financial assets. The standard will replace the existing incurred loss impairment model with a new “current expected credit loss model” and will apply to financial assets subject to credit losses, those measured at amortized cost and certain off-balance sheet credit exposures. The impairment for available-for-sale debt securities will be measured in a similar manner, except that losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard will also require additional information to be disclosed in the footnotes. The standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for annual and interim periods after December 15, 2018. We are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. Classification of Certain Cash Receipts and Cash Payments in the Statement of Cash Flows In August 2016, the FASB issued an accounting standard that provides guidance on the classification in the Statement of Cash Flows for the following eight specific cash flow issues: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The standard is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted including interim periods with adjustments reflected as of the beginning of the fiscal year that includes that interim period. Early adoption must include all amendments in the same period. We are assessing the impact of the standard on our consolidated cash flows.

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2016

SEGMENT INFORMATION

SEGMENT INFORMATION

3. SEGMENT INFORMATION

We report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources through two reportable segments: Commercial Insurance and Consumer Insurance as well as a Corporate and Other category. The Corporate and Other category consists of businesses and items not allocated to our reportable segments.

Prior to the third quarter of 2016, we presented United Guaranty and Institutional Markets as operating segments of Commercial Insurance. Beginning in the third quarter of 2016, in order to align our financial reporting with the manner in which our chief operating decision makers review the businesses to assess performance and make decisions about resources to be allocated, United Guaranty and Institutional Markets are presented in the Corporate and Other category for all periods presented. As a result, Commercial Insurance operations now consist of our commercial property and casualty business.

As a result of the transaction agreement discussed in Note 4 to the Condensed Consolidated Financial Statements, the associated assets and liabilities of UGC have been classified as held-for-sale at September 30, 2016.

In the second quarter of 2015, a United Guaranty subsidiary and certain of our property casualty companies entered into a 50 percent quota share arrangement whereby the United Guaranty subsidiary (1) ceded 50 percent of the risk relating to policies written in 2014 that were current as of January 1, 2015 and (2) ceded 50 percent of the risk relating to all policies written in 2015 and 2016, each in exchange for a 30 percent ceding commission and reimbursements of 50 percent of the losses and loss adjustment expenses incurred on covered policies. Beginning in the third quarter of 2016, the effects of these intercompany reinsurance arrangements are included in the results of Commercial Insurance and Corporate and Other for all periods presented. Previously, these arrangements were eliminated for purposes of segment reporting.

Prior periods have been revised to conform to the current period presentation for the above segment changes.

We evaluate performance based on revenues and pre tax operating income (loss). Pre-tax operating income (loss) is derived by excluding certain items from net income (loss) attributable to AIG. See the table below for the items excluded from pre-tax operating income (loss).

The following tables present our operations by reportable segment:

	2016				2015
				Pre-Tax				Pre-Tax
Three Months Ended September 30,		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues	Income (Loss)
Commercial Insurance	$	5,460	$	729	$	5,750	$	592
Consumer Insurance
Retirement		2,084		1,108		2,203		635
Life		1,662		98		1,578		(40)
Personal Insurance		2,982		178		2,871		62
Total Consumer Insurance		6,728		1,384		6,652		657
Corporate and Other^*		1,557		(522)		911		(396)
AIG consolidation and elimination		(149)		21		(134)		(5)
Total AIG consolidated operating revenues and pre-tax operating income		13,596		1,612		13,179		848
Reconciling items from Total revenues and Pre-tax operating income
(loss) to revenues and pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed
living benefits		17		17		4		4
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		(67)		-		(2)
Other income - net		-		3		-		-
Loss on extinguishment of debt		-		14		-		(346)
Net realized capital gains		(765)		(765)		(342)		(342)
Income (loss) from divested businesses		-		128		-		(3)
Non-operating litigation reserves and settlements		1		5		-		30
Reserve development related to non-operating run-off insurance business		-		-		-		(30)
Restructuring and other costs		-		(210)		-		(274)
Other		5		-		(19)		-
Revenues and pre-tax income (loss)	$	12,854	$	737	$	12,822	$	(115)

	2016				2015
				Pre-Tax				Pre-Tax
Nine Months Ended September 30,		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues	Income (Loss)
Commercial Insurance	$	16,376	$	2,306	$	17,993	$	2,990
Consumer Insurance
Retirement		6,407		2,310		7,056		2,239
Life		4,949		387		4,823		280
Personal Insurance		8,718		579		8,602		106
Total Consumer Insurance		20,074		3,276		20,481		2,625
Corporate and Other^*		3,959		(1,411)		5,338		697
AIG consolidation and elimination		(507)		15		(408)		(69)
Total AIG consolidated operating revenues and pre-tax operating income		39,902		4,186		43,404		6,243
Reconciling items from Total revenues and Pre-tax operating income
(loss) to revenues and pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed
living benefits		270		270		(39)		(39)
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		(91)		-		(84)
Other income - net		-		15		-		-
Loss on extinguishment of debt		-		(76)		-		(756)
Net realized capital gains (losses)		(829)		(829)		1,125		1,125
Income (loss) from divested businesses		-		351		(48)		(58)
Non-operating litigation reserves and settlements		42		43		91		86
Reserve development related to non-operating run-off insurance business		-		-		-		(30)
Restructuring and other costs		-		(488)		-		(274)
Other		(28)		-		(37)		-
Revenues and pre-tax income	$	39,357	$	3,381	$	44,496	$	6,213

* Corporate and Other includes income from assets held by AIG Parent and other corporate subsidiaries and results from United Guaranty and Institutional Markets.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

HELD-FOR-SALE CLASSIFICATION

9 Months Ended

Sep. 30, 2016

HELD-FOR-SALE CLASSIFICATION

HELD-FOR-SALE CLASSIFICATION

4. HELD-FOR-SALE CLASSIFICATION

Held-For-Sale Classification

We report a business as held for sale when management has approved the sale or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized.

Assets and liabilities related to the businesses classified as held for sale are separately reported in our Condensed Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale.

At September 30, 2016, held-for-sale assets and liabilities are comprised of the following:

United Guaranty

On August 15, 2016, we entered into a definitive agreement to sell our 100 percent interest in United Guaranty Corporation (UGC or United Guaranty) and certain related affiliates to Arch Capital Group Ltd. (Arch) for total consideration of $3.4 billion, consisting of $2.2 billion of cash, up to $250 million of newly issued Arch perpetual preferred stock, with terms similar to Arch’s outstanding Series C preferred stock, and approximately $975 million of newly issued Arch convertible non-voting common-equivalent preferred stock.

The closing of the transaction is subject to certain conditions, including obtaining the requisite regulatory approvals or non-disapprovals and other customary closing conditions.

In lieu of receiving the perpetual preferred stock, we have elected to receive $250 million in pre-closing dividends from UGC. Total consideration for the transaction is expected to be $3.4 billion. In the second quarter of 2015, a United Guaranty subsidiary and certain of our property casualty companies entered into a 50 percent quota share arrangement whereby the United Guaranty subsidiary (1) ceded 50 percent of the risk relating to policies written in 2014 that were current as of January 1, 2015 and (2) ceded 50 percent of the risk relating to all policies written in 2015 and 2016, each in exchange for a 30 percent ceding commission and reimbursements of 50 percent of the losses and loss adjustment expenses incurred on covered policies. Beginning in the third quarter of 2016, the effects of these intercompany reinsurance arrangements are included in the results of Commercial Insurance and Corporate and Other for all periods presented. Previously, these arrangements were eliminated for purposes of segment reporting.

Ascot

On September 16, 2016, we entered into an agreement to sell our 100 percent interest in Ascot Underwriting Holdings Ltd. (AUHL) and related syndicate-funding subsidiary Ascot Corporate Name Ltd. (ACNL) (together Ascot) to Canada Pension Plan Investment Board (CPPIB). Total consideration for the transaction is $1.1 billion inclusive of CPPIB’s recapitalization of Syndicate 1414 Funds at Lloyd’s (FAL) capital requirements. We expect to receive approximately $240 million in net cash proceeds from the transaction after the FAL recapitalization and release of the AIG-guaranteed letter of credit currently supporting the syndicate’s FAL. Such proceeds reflect 20 percent of AIG’s stake in AUHL and ownership of ACNL.

Consummation of the transaction is subject to customary closing conditions, including regulatory and other approvals.

Real Estate Investments

Certain real estate investments, including consolidated investment vehicles, met the criteria to be reported as held for sale and are included in the table below.

The following table summarizes the components of assets and liabilities held-for-sale on the Condensed Consolidated Balance Sheets at September 30, 2016:

		September 30,
(in millions)		2016
Assets:
Fixed maturity securities	$	4,233
Mortgage and other loans receivable, net		1
Other invested assets		1,006
Short-term investments		212
Cash		80
Premiums and other receivables, net of allowance		357
Deferred policy acquisition costs		179
Other assets		593
Total assets held for sale	$	6,661
Liabilities:
Liability for unpaid losses and loss adjustment expenses	$	1,074
Unearned premiums		1,164
Long-term debt		1,160
Other liabilities		511
Total liabilities held for sale	$	3,909

- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2016

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

5. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs:

Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments.
Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:

September 30, 2016							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(b)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	1	$	2,222	$	-	$	-	$	-	$	2,223
Obligations of states, municipalities and political subdivisions		-		24,287		2,291		-		-		26,578
Non-U.S. governments		179		20,508		19		-		-		20,706
Corporate debt		-		140,187		1,017		-		-		141,204
RMBS		-		20,606		17,209		-		-		37,815
CMBS		-		12,808		2,265		-		-		15,073
CDO/ABS		-		9,305		7,745		-		-		17,050
Total bonds available for sale		180		229,923		30,546		-		-		260,649
Other bond securities:
U.S. government and government sponsored entities		140		3,207		-		-		-		3,347
Obligations of states, municipalities and political subdivisions		-		-		-		-		-		-
Non-U.S. governments		-		54		-		-		-		54
Corporate debt		-		1,955		19		-		-		1,974
RMBS		-		451		1,396		-		-		1,847
CMBS		-		451		159		-		-		610
CDO/ABS		-		959		5,981		-		-		6,940
Total other bond securities		140		7,077		7,555		-		-		14,772
Equity securities available for sale:
Common stock		1,230		2		-		-		-		1,232
Preferred stock		18		-		-		-		-		18
Mutual funds		291		3		-		-		-		294
Total equity securities available for sale		1,539		5		-		-		-		1,544
Other equity securities		498		-		-		-		-		498
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		-		1		256		-		-		257
Derivative assets:
Interest rate contracts		-		4,289		-		-		-		4,289
Foreign exchange contracts		-		1,144		1		-		-		1,145
Equity contracts		118		150		54		-		-		322
Credit contracts		-		-		2		-		-		2
Other contracts		-		-		22		-		-		22
Counterparty netting and cash collateral		-		-		-		(2,289)		(1,358)		(3,647)
Total derivative assets		118		5,583		79		(2,289)		(1,358)		2,133
Short-term investments		1,936		788		-		-		-		2,724
Separate account assets		77,016		5,610		-		-		-		82,626
Total	$	81,427	$	248,987	$	38,447	$	(2,289)	$	(1,358)	$	365,214

Liabilities:
Policyholder contract deposits	$	-	$	27	$	4,022	$	-	$	-	$	4,049
Other policyholder funds		6		-		-		-		-		6
Derivative liabilities:
Interest rate contracts		-		3,667		52		-		-		3,719
Foreign exchange contracts		-		1,400		10		-		-		1,410
Equity contracts		-		2		-		-		-		2
Credit contracts		-		-		347		-		-		347
Other contracts		-		-		112		-		-		112
Counterparty netting and cash collateral		-		-		-		(2,289)		(482)		(2,771)
Total derivative liabilities		-		5,069		521		(2,289)		(482)		2,819
Long-term debt		-		3,594		70		-		-		3,664
Other liabilities		75		-		-		-		-		75
Total	$	81	$	8,690	$	4,613	$	(2,289)	$	(482)	$	10,613

December 31, 2015							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(b)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	-	$	1,844	$	-	$	-	$	-	$	1,844
Obligations of states, municipalities and political subdivisions		-		25,199		2,124		-		-		27,323
Non-U.S. governments		683		17,480		32		-		-		18,195
Corporate debt		-		134,618		1,370		-		-		135,988
RMBS		-		19,690		16,537		-		-		36,227
CMBS		-		10,986		2,585		-		-		13,571
CDO/ABS		-		8,928		6,169		-		-		15,097
Total bonds available for sale		683		218,745		28,817		-		-		248,245
Other bond securities:
U.S. government and government sponsored entities		-		3,369		-		-		-		3,369
Obligations of states, municipalities and political subdivisions		-		75		-		-		-		75
Non-U.S. governments		-		50		-		-		-		50
Corporate debt		-		2,018		17		-		-		2,035
RMBS		-		649		1,581		-		-		2,230
CMBS		-		557		193		-		-		750
CDO/ABS		-		1,218		7,055		-		-		8,273
Total other bond securities		-		7,936		8,846		-		-		16,782
Equity securities available for sale:
Common stock		2,401		-		-		-		-		2,401
Preferred stock		22		-		-		-		-		22
Mutual funds		491		1		-		-		-		492
Total equity securities available for sale		2,914		1		-		-		-		2,915
Other equity securities		906		1		14		-		-		921
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		2		1		332		-		-		335

Derivative assets:
Interest rate contracts		-		3,150		12		-		-		3,162
Foreign exchange contracts		-		766		-		-		-		766
Equity contracts		91		32		54		-		-		177
Credit contracts		-		-		3		-		-		3
Other contracts		-		2		21		-		-		23
Counterparty netting and cash collateral		-		-		-		(1,268)		(1,554)		(2,822)
Total derivative assets		91		3,950		90		(1,268)		(1,554)		1,309
Short-term investments		1,416		1,175		-		-		-		2,591
Separate account assets		73,699		5,875		-		-		-		79,574
Total	$	79,711	$	237,684	$	38,110	$	(1,268)	$	(1,554)	$	352,683
Liabilities:
Policyholder contract deposits	$	-	$	36	$	2,289	$	-	$	-	$	2,325
Other policyholder funds		6		-		-		-		-		6
Derivative liabilities:
Interest rate contracts		-		2,137		62		-		-		2,199
Foreign exchange contracts		-		1,197		7		-		-		1,204
Equity contracts		-		68		-		-		-		68
Credit contracts		-		-		508		-		-		508
Other contracts		-		-		69		-		-		69
Counterparty netting and cash collateral		-		-		-		(1,268)		(760)		(2,028)
Total derivative liabilities		-		3,402		646		(1,268)		(760)		2,020
Long-term debt		-		3,487		183		-		-		3,670
Other liabilities		-		62		-		-		-		62
Total	$	6	$	6,987	$	3,118	$	(1,268)	$	(760)	$	8,083

(a) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $6.8 billion and $8.6 billion as of September 30, 2016 and December 31, 2015, respectively.

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

Transfers of Level 1 and Level 2 Assets and Liabilities

Our policy is to record transfers of assets and liabilities between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market.

During the three- and nine-month periods ended September 30, 2016, we transferred $635 million and $946 million, respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2, as they are no longer considered actively traded. For similar reasons, during the three- and nine-month periods ended September 30, 2016, we transferred $18 million and $34 million, respectively, of securities issued by the U.S. government and government sponsored entities from Level 1 to Level 2. We had no material transfers from Level 2 to Level 1 during the three- and nine-month periods ended September 30, 2016.

During the three- and nine-month periods ended September 30, 2015, we transferred $188 million and $450 million, respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2, as they are no longer considered actively traded. For similar reasons, during the nine-month period ended September 30, 2015, we transferred $180 million of securities issued by the U.S. government and government sponsored entities from Level 1 to Level 2, while we had no material transfers of these securities from Level 1 to Level 2 during the three-month period ended September 30, 2015. We had no material transfers from Level 2 to Level 1 during the three- and nine-month periods ended September 30, 2015.

Changes in Level 3 Recurring Fair Value Measurements

The following tables present changes during the three- and nine-month periods ended September 30, 2016 and 2015 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at September 30, 2016 and 2015:

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross		to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Three Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,313	$	1	$	(5)	$	58	$	2	$	(78)	$	-	$	2,291	$	-
Non-U.S. governments		28		(3)		(9)		3		-		-		-		19		-
Corporate debt		836		(4)		7		(6)		267		(82)		(1)		1,017		-
RMBS		16,779		255		304		(165)		36		-		-		17,209		-
CMBS		2,295		12		(5)		(1)		2		(32)		(6)		2,265		-
CDO/ABS		7,075		7		16		728		-		-		(81)		7,745		-
Total bonds available for sale		29,326		268		308		617		307		(192)		(88)		30,546		-
Other bond securities:
Corporate debt		18		1		-		-		-		-		-		19		-
RMBS		1,486		30		-		(120)		-		-		-		1,396		12
CMBS		168		6		-		(15)		-		-		-		159		4
CDO/ABS		6,312		175		-		(506)		-		-		-		5,981		-
Total other bond securities		7,984		212		-		(641)		-		-		-		7,555		16
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		11		-
Other invested assets		241		(4)		1		18		-		-		-		256		-
Total	$	37,576	$	476	$	309	$	(20)	$	307	$	(192)	$	(88)	$	38,368	$	16

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross		to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,990	$	65	$	-	$	(33)	$	-	$	-	$	-	$	4,022	$	1
Derivative liabilities, net:
Interest rate contracts		46		(3)		-		9		-		-		-		52		4
Foreign exchange contracts		9		1		-		(1)		-		-		-		9		(1)
Equity contracts		(52)		(5)		-		3		-		-		-		(54)		5
Commodity contracts		-		-		-		-		-		-		-		-		-
Credit contracts		373		(36)		-		7		-		1		-		345		28
Other contracts		102		(16)		-		4		-		-		-		90		33
Total derivative liabilities, net^(a)		478		(59)		-		22		-		1		-		442		69
Long-term debt^(b)		67		3		-		-		-		-		-		70		(3)
Total	$	4,535	$	9	$	-	$	(11)	$	-	$	1	$	-	$	4,534	$	67

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross		to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period^(a)		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Nine Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,124	$	3	$	189	$	51	$	2	$	(78)	$	-	$	2,291	$	-
Non-U.S. governments		32		(3)		(11)		5		-		(4)		-		19		-
Corporate debt		1,370		(1)		(10)		(42)		581		(880)		(1)		1,017		-
RMBS		16,537		734		(55)		(337)		330		-		-		17,209		-
CMBS		2,585		70		(83)		(169)		2		(134)		(6)		2,265		-
CDO/ABS		6,169		27		59		1,548		23		-		(81)		7,745		-
Total bonds available for sale		28,817		830		89		1,056		938		(1,096)		(88)		30,546		-
Other bond securities:
Corporate debt		17		3		-		(1)		-		-		-		19		3
RMBS		1,581		7		-		(174)		-		(18)		-		1,396		(48)
CMBS		193		4		-		(38)		-		-		-		159		14
CDO/ABS		7,055		151		-		(1,225)		65		(65)		-		5,981		(378)
Total other bond securities		8,846		165		-		(1,438)		65		(83)		-		7,555		(409)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		11		-
Other invested assets		332		(5)		2		(19)		-		(54)		-		256		(2)
Total	$	38,020	$	990	$	91	$	(415)	$	1,003	$	(1,233)	$	(88)	$	38,368	$	(411)

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross		to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period^(a)		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	2,289	$	1,508	$	-	$	225	$	-	$	-	$	-	$	4,022	$	38
Derivative liabilities, net:
Interest rate contracts		50		4		-		(2)		-		-		-		52		(5)
Foreign exchange contracts		7		3		-		(1)		-		-		-		9		(2)
Equity contracts		(54)		(5)		-		5		-		-		-		(54)		5
Commodity contracts		-		-		-		-		-		-		-		-		-
Credit contracts		505		(70)		-		(91)		-		1		-		345		56
Other contracts		48		14		-		28		-		-		-		90		3
Total derivative liabilities, net^(a)		556		(54)		-		(61)		-		1		-		442		57
Long-term debt^(b)		183		3		-		(3)		-		(113)		-		70		-
Total	$	3,028	$	1,457	$	-	$	161	$	-	$	(112)	$	-	$	4,534	$	95

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Three Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,180	$	(1)	$	(15)	$	16	$	-	$	(40)	$	2,140	$	-
Non-U.S. governments		33		-		(1)		(1)		-		-		31		-
Corporate debt		2,118		5		2		(63)		987		(573)		2,476		-
RMBS		17,097		265		(151)		(352)		-		-		16,859		-
CMBS		2,677		17		(15)		50		-		-		2,729		-
CDO/ABS		6,071		8		57		(21)		6		(13)		6,108		-
Total bonds available for sale		30,176		294		(123)		(371)		993		(626)		30,343		-
Other bond securities:
Corporate debt		16		-		-		-		-		-		16		-
RMBS		1,337		(4)		-		169		-		(1)		1,501		(3)
CMBS		223		(1)		-		(8)		5		-		219		(1)
CDO/ABS		7,426		85		-		(415)		51		-		7,147		23
Total other bond securities		9,002		80		-		(254)		56		(1)		8,883		19
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		22		-		-		-		-		-		22		-
Mortgage and other loans receivable		6		-		-		5		-		-		11		-
Other invested assets		437		(15)		(21)		(18)		-		-		383		-
Total	$	39,643	$	359	$	(144)	$	(638)	$	1,049	$	(627)	$	39,642	$	19

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	1,232	$	871	$	-	$	146	$	-	$	-	$	2,249	$	32
Derivative liabilities, net:
Interest rate contracts		62		3		-		(7)		-		-		58		(4)
Foreign exchange contracts		7		1		-		(1)		-		-		7		(2)
Equity contracts		(63)		21		-		3		-		-		(39)		(21)
Credit contracts		551		(11)		-		(12)		-		-		528		23
Other contracts		16		12		-		23		-		-		51		(13)
Total derivatives liabilities, net^(a)		573		26		-		6		-		-		605		(17)
Long-term debt^(b)		193		(3)		-		-		-		-		190		-
Total	$	1,998	$	894	$	-	$	152	$	-	$	-	$	3,044	$	15

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Nine Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions^(c)	$	2,159	$	-	$	(94)	$	174	$	-	$	(99)	$	2,140	$	-
Non-U.S. governments		30		-		(2)		3		-		-		31		-
Corporate debt		1,883		19		(31)		(209)		1,443		(629)		2,476		-
RMBS		16,805		804		(322)		(428)		-		-		16,859		-
CMBS		2,696		63		(45)		97		-		(82)		2,729		-
CDO/ABS		6,110		138		(110)		98		6		(134)		6,108		-
Total bonds available for sale		29,683		1,024		(604)		(265)		1,449		(944)		30,343		-
Other bond securities:
Corporate debt		-		-		-		-		16		-		16		-
RMBS		1,105		22		-		389		44		(59)		1,501		(21)
CMBS		369		7		-		(162)		5		-		219		(3)
CDO/ABS		7,449		482		-		(1,341)		632		(75)		7,147		(55)
Total other bond securities		8,923		511		-		(1,114)		697		(134)		8,883		(79)
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		-		-		-		-		22		-		22		(2)
Mortgage and other loans receivable		6		-		-		5		-		-		11		-
Other invested assets		1,042		457		(509)		(607)		-		-		383		-
Total	$	39,655	$	1,994	$	(1,113)	$	(1,984)	$	2,168	$	(1,078)	$	39,642	$	(81)

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	1,509	$	410	$	-	$	330	$	-	$	-	$	2,249	$	72
Derivative liabilities, net:
Interest rate contracts		74		3		-		(19)		-		-		58		(4)
Foreign exchange contracts		8		(2)		-		1		-		-		7		1
Equity contracts		(47)		15		-		(7)		-		-		(39)		(19)
Credit contracts		978		(171)		-		(279)		-		-		528		73
Other contracts		59		(61)		-		53		-		-		51		53
Total derivatives liabilities, net^(a)		1,072		(216)		-		(251)		-		-		605		104
Long-term debt^(b)		213		(5)		-		(18)		-		-		190		13
Total	$	2,794	$	189	$	-	$	61	$	-	$	-	$	3,044	$	189

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

(b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable.

Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities shown above are reported in the Condensed Consolidated Statements of Income as follows:

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended September 30, 2016
Bonds available for sale	$	294	$	(27)	$	1	$	268
Other bond securities		37		13		162		212
Other invested assets		5		(3)		(6)		(4)
Nine Months Ended September 30, 2016
Bonds available for sale	$	883	$	(56)	$	3	$	830
Other bond securities		29		45		91		165
Other invested assets		2		29		(36)		(5)
Three Months Ended September 30, 2015
Bonds available for sale	$	304	$	(15)	$	5	$	294
Other bond securities		7		-		73		80
Equity securities available for sale		-		-		-		-
Other invested assets		(8)		(11)		4		(15)
Nine Months Ended September 30, 2015
Bonds available for sale	$	926	$	(14)	$	112	$	1,024
Other bond securities		48		3		460		511
Equity securities available for sale		-		2		-		2
Other invested assets		(10)		408		59		457

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended September 30, 2016
Policyholder contract deposits	$	-	$	65	$	-	$	65
Derivative liabilities, net		-		(5)		(54)		(59)
Long-term debt		-		-		3		3
Nine Months Ended September 30, 2016
Policyholder contract deposits	$	-	$	1,508	$	-	$	1,508
Derivative liabilities, net		-		(1)		(53)		(54)
Long-term debt		-		-		3		3
Three Months Ended September 30, 2015
Policyholder contract deposits	$	-	$	871	$	-	$	871
Derivative liabilities, net		-		17		9		26
Long-term debt		-		-		(3)		(3)
Nine Months Ended September 30, 2015
Policyholder contract deposits	$	-	$	410	$	-	$	410
Derivative liabilities, net		-		12		(228)		(216)
Long-term debt		-		-		(5)		(5)

The following table presents the gross components of purchases, sales, issues and settlements, net, shown above, for the three- and nine-month periods ended September 30, 2016 and 2015 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets:

								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net^(a)
Three Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	98	$	-	$	(40)	$	58
Non-U.S. governments		7		-		(4)		3
Corporate debt		-		-		(6)		(6)
RMBS		754		(23)		(896)		(165)
CMBS		50		(24)		(27)		(1)
CDO/ABS		902		(22)		(152)		728
Total bonds available for sale		1,811		(69)		(1,125)		617
Other bond securities:
RMBS		12		(74)		(58)		(120)
CMBS		-		(14)		(1)		(15)
CDO/ABS		-		(340)		(166)		(506)
Total other bond securities		12		(428)		(225)		(641)
Other equity securities		-		-		(14)		(14)
Other invested assets		21		-		(3)		18
Total assets	$	1,844	$	(497)	$	(1,367)	$	(20)
Liabilities:
Policyholder contract deposits	$	-	$	95	$	(128)	$	(33)
Derivative liabilities, net		(2)		-		24		22
Long-term debt^(b)		-		-		-		-
Total liabilities	$	(2)	$	95	$	(104)	$	(11)

Three Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	35	$	-	$	(19)	$	16
Non-U.S. governments		3		(1)		(3)		(1)
Corporate debt		32		-		(95)		(63)
RMBS		449		(29)		(772)		(352)
CMBS		50		-		-		50
CDO/ABS		160		(9)		(172)		(21)
Total bonds available for sale		729		(39)		(1,061)		(371)
Other bond securities:
RMBS		218		(6)		(43)		169
CMBS		-		-		(8)		(8)
CDO/ABS		10		(5)		(420)		(415)
Total other bond securities		228		(11)		(471)		(254)
Equity securities available for sale		-		-		-		-
Mortgage and other loans receivable		5		-		-		5
Other invested assets		(8)		-		(10)		(18)
Total assets	$	954	$	(50)	$	(1,542)	$	(638)
Liabilities:
Policyholder contract deposits	$	-	$	122	$	24	$	146
Derivative liabilities, net		(1)		-		7		6
Long-term debt^(b)		-		-		-		-
Total liabilities	$	(1)	$	122	$	31	$	152
								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net^(a)
Nine Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	144	$	(7)	$	(86)	$	51
Non-U.S. governments		10		-		(5)		5
Corporate debt		29		(25)		(46)		(42)
RMBS		2,297		(81)		(2,553)		(337)
CMBS		156		(82)		(243)		(169)
CDO/ABS		2,053		(33)		(472)		1,548
Total bonds available for sale		4,689		(228)		(3,405)		1,056
Other bond securities:
Corporate debt		-		-		(1)		(1)
RMBS		101		(100)		(175)		(174)
CMBS		53		(85)		(6)		(38)
CDO/ABS		69		(376)		(918)		(1,225)
Total other bond securities		223		(561)		(1,100)		(1,438)

Equity securities available for sale		-		-		-		-
Other equity securities		14		-		(28)		(14)
Other invested assets		39		(2)		(56)		(19)
Total assets	$	4,965	$	(791)	$	(4,589)	$	(415)
Liabilities:
Policyholder contract deposits	$	-	$	365	$	(140)	$	225
Derivative liabilities, net		(5)		-		(56)		(61)
Long-term debt^(b)		-		-		(3)		(3)
Total liabilities	$	(5)	$	365	$	(199)	$	161
Nine Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions^(c)	$	258	$	(22)	$	(62)	$	174
Non-U.S. governments		11		(1)		(7)		3
Corporate debt		220		(60)		(369)		(209)
RMBS		1,856		(194)		(2,090)		(428)
CMBS		192		(27)		(68)		97
CDO/ABS		1,021		(210)		(713)		98
Total bonds available for sale		3,558		(514)		(3,309)		(265)
Other bond securities:
RMBS		527		(16)		(122)		389
CMBS		-		(79)		(83)		(162)
CDO/ABS		236		(376)		(1,201)		(1,341)
Total other bond securities		763		(471)		(1,406)		(1,114)
Equity securities available for sale		-		(2)		(1)		(3)
Mortgage and other loans receivable		5		-		-		5
Other invested assets		19		(587)		(39)		(607)
Total assets	$	4,345	$	(1,574)	$	(4,755)	$	(1,984)
Liabilities:
Policyholder contract deposits	$	-	$	307	$	23	$	330
Derivative liabilities, net		(18)		-		(233)		(251)
Long-term debt^(b)		-		-		(18)		(18)
Total liabilities	$	(18)	$	307	$	(228)	$	61

(a) There were no issuances during the three- and nine-month periods ended September 30, 2016 and 2015, respectively.

(b) Includes GIAs, notes, bonds, loans and mortgages payable.

Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at September 30, 2016 and 2015 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).

Transfers of Level 3 Assets and Liabilities

We record transfers of assets and liabilities into or out of Level 3 classification at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. The Net realized and unrealized gains (losses) included in income (loss) or Other comprehensive income (loss) as shown in the table above excluded $11 million of net losses related to assets and liabilities transferred into Level 3 during the nine-month period ended September 30, 2016, and included $3 million and $54 million of net losses related to assets and liabilities transferred out of Level 3 during the three- and nine-month periods ended September 30, 2016, respectively.

The Net realized and unrealized gains (losses) included in income or Other comprehensive income (loss) as shown in the table above excluded $17 million and $35 million of net gains related to assets and liabilities transferred into Level 3 during the three- and nine-month periods ended September 30, 2015, respectively, and included $3 million and $6 million of net gains related to assets and liabilities transferred out of Level 3 during the three- and nine-month periods ended September 30, 2015, respectively.

Transfers of Level 3 Assets

During the three- and nine-month periods ended September 30, 2016 and 2015, transfers into Level 3 assets primarily included certain investments in private placement corporate debt and RMBS. Also, in the nine-month periods ended September 30, 2016 and 2015, transfers into Level 3 assets included certain investments in CDO/ABS. Transfers of private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity. The transfers of investments in RMBS and CDO and certain ABS into Level 3 assets were due to decreases in market transparency and liquidity for individual security types.

During the three- and nine-month periods ended September 30, 2016 and 2015, transfers out of Level 3 assets primarily included private placement and other corporate debt, CMBS, and certain investments in municipal securities. Also, in the nine-month periods ended September 30, 2016 and 2015, transfers out of Level 3 assets included certain investments in CDO/ABS and RMBS. Transfers of certain investments municipal securities, corporate debt, RMBS, CMBS and CDO/ABS out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers of certain investments in private placement corporate debt and certain ABS out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market.

Transfers of Level 3 Liabilities

There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three- and nine-month periods ended September 30, 2016 and 2015.

Quantitative Information About Level 3 Fair Value Measurements

The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from independent third-party valuation service providers and from internal valuation models. Because input information from third-parties with respect to certain Level 3 instruments (primarily CDO/ABS) may not be reasonably available to us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities:

	Fair Value at
	September 30,		Valuation		Range
(in millions)	2016		Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states, municipalities
and political subdivisions
	$	1,460	Discounted cash flow	Yield	3.46% - 4.29% (3.87%)

Corporate debt		625	Discounted cash flow	Yield	2.90% - 8.34% (5.62%)

RMBS^(a)		17,369	Discounted cash flow	Constant prepayment rate	1.37% - 8.78% (5.07%)
				Loss severity	49.30% - 80.09% (64.69%)
				Constant default rate	3.51% - 8.83% (6.17%)
				Yield	2.79% - 5.53% (4.16%)

CDO/ABS^(a)		4,049	Discounted cash flow	Yield	3.00% - 5.34% (4.17%)

CMBS		1,939	Discounted cash flow	Yield	0.00% - 13.78% (6.20%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

GMWB and GMAB		2,793	Discounted cash flow	Equity volatility	12.00% - 12.00%
				Base lapse rate	0.50% - 20.00%
				Dynamic lapse rate	30.00% - 170.00%
				Mortality multiplier^(c)	42.00% - 161.00%
				Utilization rate	100.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		907	Discounted cash flow	Lapse rate	1.00% - 66.00%
				Mortality multiplier^(c)	101.00% - 103.00%

Indexed Life		352	Discounted cash flow	Base lapse rate	2.00% to 19.00%
				Mortality rate	0.00% to 40.00%


		Fair Value at
		December 31,	Valuation		Range
(in millions)		2015	Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states, municipalities
and political subdivisions	$	1,217	Discounted cash flow	Yield	4.32% - 5.10% (4.71%)

Corporate debt		642	Discounted cash flow	Yield	5.63% - 12.45% (9.04%)

RMBS^(a)		17,280	Discounted cash flow	Constant prepayment rate	0.99% - 8.95% (4.97%)
				Loss severity	47.21% - 79.50% (63.35%)
				Constant default rate	3.49% - 9.04% (6.26%)
				Yield	3.13% - 6.14% (4.63%)

CDO/ABS^(a)		3,338	Discounted cash flow	Yield	3.41% - 4.98% (4.19%)

CMBS		2,388	Discounted cash flow	Yield	0.00% - 17.65% (6.62%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

GMWB and GMAB		1,234	Discounted cash flow	Equity volatility	15.00% - 50.00%
				Base lapse rate	1.00% - 17.00%
				Dynamic lapse rate	0.20% - 25.50%
				Mortality multiplier^(d)	80.00% - 104.27%
				Utilization rate	0.00% - 70.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		715	Discounted cash flow	Lapse rate	0.75% - 66.00%
				Mortality multiplier^(d)	50.00% - 75.00%

Indexed Life		332	Discounted cash flow	Base lapse rate	2.00% to 19.00%
				Mortality rate	0.00% to 40.00%

(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.

(d) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table for GMWB and GMAB, and the 1975-1980 Modified Basic Table for index annuities.

The ranges of reported inputs for Obligations of states, municipalities and political subdivisions, Corporate debt, RMBS, CDO/ABS, and CMBS valued using a discounted cash flow technique consist of one standard deviation in either direction from the value-weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these Level 3 assets and liabilities.

Sensitivity to Changes in Unobservable Inputs

We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following paragraphs provide a general description of sensitivities of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. The effect of a change in a particular assumption in the sensitivity analysis below is considered independently of changes in any other assumptions. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply.

Obligations of States, Municipalities and Political Subdivisions

The significant unobservable input used in the fair value measurement of certain investments in obligations of states, municipalities and political subdivisions is yield. In general, increases in the yield would decrease the fair value of investments in obligations of states, municipalities and political subdivisions.

Corporate Debt

Corporate debt securities included in Level 3 are primarily private placement issuances that are not traded in active markets or that are subject to transfer restrictions. Fair value measurements consider illiquidity and non-transferability. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of publicly-traded debt of the issuer or other comparable securities, considering illiquidity and structure. The significant unobservable input used in the fair value measurement of corporate debt is the yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. In addition, the migration in credit quality of a given security generally has a corresponding effect on the fair value measurement of the security. For example, a downward migration of credit quality would increase spreads. Holding U.S. Treasury rates constant, an increase in corporate credit spreads would decrease the fair value of corporate debt.

RMBS and CDO/ABS

The significant unobservable inputs used in fair value measurements of RMBS and certain CDO/ABS valued by third-party valuation service providers are constant prepayment rates (CPR), loss severity, constant default rates (CDR), and yield. A change in the assumptions used for the probability of default will generally be accompanied by a corresponding change in the assumption used for the loss severity and an inverse change in the assumption used for prepayment rates. In general, increases in CPR, loss severity, CDR, and yield, in isolation, would result in a decrease in the fair value measurement. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship between the directional change of each input is not usually linear.

CMBS

The significant unobservable input used in fair value measurements for CMBS is the yield. Prepayment assumptions for each mortgage pool are factored into the yield. CMBS generally feature a lower degree of prepayment risk than RMBS because commercial mortgages generally contain a penalty for prepayment. In general, increases in the yield would decrease the fair value of CMBS.

Embedded derivatives within Policyholder contract deposits

Embedded derivatives reported within Policyholder contract deposits include guaranteed minimum withdrawal benefits (GMWB) and guaranteed minimum accumulation benefits (GMAB) within variable annuity products, and interest crediting rates based on market indices within index annuities, indexed life and guaranteed investment contracts (GICs). For any given contract, assumptions for unobservable inputs vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. The following unobservable inputs are used for valuing embedded derivatives measured at fair value:

Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. Increases in assumed volatility will generally increase the fair value of both the projected cash flows from rider fees as well as the projected cash flows related to benefit payments. Therefore, the net change in the fair value of the liability may be either a decrease or an increase, depending on the relative changes in projected rider fees and projected benefit payments.
Equity / interest rate correlation estimates the relationship between changes in equity returns and interest rates in the economic scenario generator used to value our GMWB and GMAB embedded derivatives. In general, a higher positive correlation assumes that equity markets and interest rates move in a more correlated fashion, which generally increases the fair value of the liability.
Base lapse rate assumptions are determined by company experience and are adjusted at the contract level using a dynamic lapse function, which reduces the base lapse rate when the contract is in-the-money (when the contract holder’s guaranteed value, as estimated by the company, is worth more than their underlying account value). Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. Increases in assumed lapse rates will generally decrease the fair value of the liability, as fewer policyholders would persist to collect guaranteed withdrawal amounts, but in certain scenarios, increases in assumed lapse rates may increase the fair value of the liability.
Mortality rate assumptions, which vary by age and gender, are based on company experience and include a mortality improvement assumption. Increases in assumed mortality rates will decrease the fair value of the liability, while lower mortality rate assumptions will generally increase the fair value of the liability, because guaranteed payments will be made for a longer period of time.
Utilization rate assumptions estimate the timing when policyholders with a GMWB will elect to utilize their benefit and begin taking withdrawals. The assumptions may vary by the type of guarantee, tax-qualified status, the contract’s withdrawal history and the age of the policyholder. Utilization rate assumptions are based on company experience, which includes partial withdrawal behavior. Increases in assumed utilization rates will generally increase the fair value of the liability.

Investments in Certain Entities Carried at Fair Value Using Net Asset Value Per Share

The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate NAV per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the NAV per share to measure fair value.

		September 30, 2016				December 31, 2015
			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	$	1,486	$	595	$	1,774	$	436

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		267		190		306		213

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		92		32		107		41

Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		124		44		146		41

Other	Includes multi-strategy, mezzanine and other strategies		310		235		298		239
Total private equity funds			2,279		1,096		2,631		970
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		652		-		1,194		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		2,264		24		2,978		25

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		579		-		555		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		620		7		699		8

Emerging markets	Investments in the financial markets of developing countries		307		-		353		-

Other	Includes multi-strategy, relative value and other strategies		134		-		167		-
Total hedge funds			4,556		31		5,946		33
Total		$	6,835	$	1,127	$	8,577	$	1,003

Private equity fund investments included above are not redeemable, because distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one- or two-year increments. At September 30, 2016, assuming average original expected lives of 10 years for the funds, 75 percent of the total fair value using NAV per share (or its equivalent) presented above would have expected remaining lives of three years or less, 11 percent between four and six years and 14 percent between seven and 10 years.

The hedge fund investments included above, which are carried at fair value, are generally redeemable monthly (14 percent), quarterly (40 percent), semi-annually (12 percent) and annually (34 percent), with redemption notices ranging from one day to 180 days. At September 30, 2016, investments representing approximately 73 percent of the total fair value of these hedge fund investments had partial contractual redemption restrictions. These partial redemption restrictions are generally related to one or more investments held in the hedge funds that the fund manager deemed to be illiquid. The majority of these contractual restrictions, which may have been put in place at the fund’s inception or thereafter, have pre-defined end dates. The majority of these restrictions are generally expected to be lifted by the end of 2017.

Fair Value Option

The following table presents the gains or losses recorded related to the eligible instruments for which we elected the fair value option:

	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
(in millions)		2016		2015		2016		2015
Assets:
Bond and equity securities	$	331	$	(106)	$	629	$	495
Alternative Investments^(a)		154		(115)		(60)		148
Other, including Short-term investments		-		-		-		2
Liabilities:
Long-term debt^(b)		8		(144)		(239)		(89)
Other liabilities		-		-		-		(3)
Total gain (loss)	$	493	$	(365)	$	330	$	553

(a) Includes certain hedge funds, private equity funds and other investment partnerships.

(b) Includes GIAs, notes, bonds and mortgages payable.

We recognized gains of $6 million and $14 million during the three- and nine-month periods ended September 30, 2016, respectively, and losses of $18 million and $7 million during the three- and nine-month periods ended September 30, 2015, respectively, attributable to the observable effect of changes in credit spreads on our own liabilities for which the fair value option was elected. We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, our observable credit spreads on these liabilities and other factors that mitigate the risk of nonperformance such as cash collateral posted.

The following table presents the difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term debt for which the fair value option was elected:

	September 30, 2016						December 31, 2015
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	11	$	8	$	3	$	11	$	9	$	2
Liabilities:
Long-term debt^*	$	3,664	$	2,595	$	1,069	$	3,670	$	2,675	$	995

* Includes GIAs, notes, bonds, loans and mortgages payable.

Fair Value Measurements on a Non-Recurring Basis

The following table presents assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented:

	Assets at Fair Value								Impairment Charges
	Non-Recurring Basis								Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	Level 1		Level 2		Level 3			Total		2016		2015		2016		2015
September 30, 2016
Other investments	$	-	$	-	$	194	$	194	$	27	$	22	$	58	$	74
Investments in life settlements		-		-		665		665		80		58		329		200
Other assets		-		-		2		2		2		5		11		12
Total	$	-	$	-	$	861	$	861	$	109	$	85	$	398	$	286
December 31, 2015
Other investments	$	-	$	-	$	1,117	$	1,117
Investments in life settlements		-		-		828		828
Other assets		-		-		129		129
Total	$	-	$	-	$	2,074	$	2,074

Fair Value Information About Financial Instruments Not Measured at Fair Value

The following table presents the carrying value and estimated fair value of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Estimated Fair Value									Carrying
(in millions)		Level 1		Level 2		Level 3		Total		Value
September 30, 2016
Assets:
Mortgage and other loans receivable	$	-	$	172	$	33,950	$	34,122	$	32,402
Other invested assets		-		629		2,875		3,504		4,211
Short-term investments		-		8,021		-		8,021		8,021
Cash		2,498		-		-		2,498		2,498
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		394		129,460		129,854		112,380
Other liabilities		-		4,214		-		4,214		4,214
Long-term debt		-		26,133		3,868		30,001		28,613
December 31, 2015
Assets:
Mortgage and other loans receivable	$	-	$	198	$	30,147	$	30,345	$	29,554
Other invested assets		-		563		2,880		3,443		4,169
Short-term investments		-		7,541		-		7,541		7,541
Cash		1,629		-		-		1,629		1,629
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		309		117,537		117,846		108,788
Other liabilities		-		2,852		-		2,852		2,852
Long-term debt		-		21,686		4,528		26,214		25,579

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

INVESTMENTS

9 Months Ended

Sep. 30, 2016

INVESTMENTS

INVESTMENTS

6. INVESTMENTS

Securities Available for Sale

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

										Other-Than-
		Amortized		Gross		Gross				Temporary
		Cost or		Unrealized		Unrealized		Fair		Impairments
(in millions)		Cost		Gains		Losses		Value		in AOCI^(a)
September 30, 2016
Bonds available for sale:
U.S. government and government sponsored entities	$	1,974	$	249	$	-	$	2,223	$	-
Obligations of states, municipalities and political subdivisions		24,468		2,139		(29)		26,578		-
Non-U.S. governments		18,515		2,297		(106)		20,706		-
Corporate debt		130,290		11,709		(795)		141,204		(23)
Mortgage-backed, asset-backed and collateralized:
RMBS		35,178		2,963		(326)		37,815		1,204
CMBS		14,244		869		(40)		15,073		54
CDO/ABS		16,746		411		(107)		17,050		39
Total mortgage-backed, asset-backed and collateralized		66,168		4,243		(473)		69,938		1,297
Total bonds available for sale^(b)		241,415		20,637		(1,403)		260,649		1,274
Equity securities available for sale:
Common stock		894		356		(18)		1,232		-
Preferred stock		14		4		-		18		-
Mutual funds		259		36		(1)		294		-
Total equity securities available for sale		1,167		396		(19)		1,544		-
Total	$	242,582	$	21,033	$	(1,422)	$	262,193	$	1,274
December 31, 2015
Bonds available for sale:
U.S. government and government sponsored entities	$	1,698	$	155	$	(9)	$	1,844	$	-
Obligations of states, municipalities and political subdivisions		26,003		1,424		(104)		27,323		19
Non-U.S. governments		17,752		805		(362)		18,195		-
Corporate debt		133,513		6,462		(3,987)		135,988		(87)
Mortgage-backed, asset-backed and collateralized:
RMBS		33,878		2,760		(411)		36,227		1,326
CMBS		13,139		561		(129)		13,571		185
CDO/ABS		14,985		360		(248)		15,097		39
Total mortgage-backed, asset-backed and collateralized		62,002		3,681		(788)		64,895		1,550
Total bonds available for sale^(b)		240,968		12,527		(5,250)		248,245		1,482
Equity securities available for sale:
Common stock		913		1,504		(16)		2,401		-
Preferred stock		19		3		-		22		-
Mutual funds		447		53		(8)		492		-
Total equity securities available for sale		1,379		1,560		(24)		2,915		-
Total	$	242,347	$	14,087	$	(5,274)	$	251,160	$	1,482

(a) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date.

(b) At September 30, 2016 and December 31, 2015, bonds available for sale held by us that were below investment grade or not rated totaled $35.6 billion and $34.9 billion, respectively.

Securities Available for Sale in a Loss Position

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:

	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
September 30, 2016
Bonds available for sale:
U.S. government and government sponsored entities	$	18	$	-	$	-	$	-	$	18	$	-
Obligations of states, municipalities and political
subdivisions		967		9		245		20		1,212		29
Non-U.S. governments		984		34		581		72		1,565		106
Corporate debt		6,730		214		6,346		581		13,076		795
RMBS		3,962		70		4,341		256		8,303		326
CMBS		1,044		25		368		15		1,412		40
CDO/ABS		2,906		44		2,571		63		5,477		107
Total bonds available for sale		16,611		396		14,452		1,007		31,063		1,403
Equity securities available for sale:
Common stock		235		18		-		-		235		18
Mutual funds		5		1		-		-		5		1
Total equity securities available for sale		240		19		-		-		240		19
Total	$	16,851	$	415	$	14,452	$	1,007	$	31,303	$	1,422
December 31, 2015
Bonds available for sale:
U.S. government and government sponsored entities	$	483	$	9	$	1	$	-	$	484	$	9
Obligations of states, municipalities and political
subdivisions		2,382		87		268		17		2,650		104
Non-U.S. governments		4,327		203		832		159		5,159		362
Corporate debt		41,317		2,514		5,428		1,473		46,745		3,987
RMBS		7,215		133		4,318		278		11,533		411
CMBS		4,138		108		573		21		4,711		129
CDO/ABS		7,064		104		2,175		144		9,239		248
Total bonds available for sale		66,926		3,158		13,595		2,092		80,521		5,250
Equity securities available for sale:
Common stock		91		16		-		-		91		16
Mutual funds		200		8		-		-		200		8
Total equity securities available for sale		291		24		-		-		291		24
Total	$	67,217	$	3,182	$	13,595	$	2,092	$	80,812	$	5,274

At September 30, 2016, we held 5,264 and 151 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 2,159 individual fixed maturity securities 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 September 30, 2016 because 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, expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and other 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				Fixed Maturity Securities in a Loss
September 30, 2016	Available for Sale				Position Available for Sale
(in millions)		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	8,321	$	8,504	$	695	$	680
Due after one year through five years		51,382		54,984		3,364		3,197
Due after five years through ten years		46,208		49,119		4,839		4,528
Due after ten years		69,336		78,104		7,903		7,466
Mortgage-backed, asset-backed and collateralized		66,168		69,938		15,665		15,192
Total	$	241,415	$	260,649	$	32,466	$	31,063
December 31, 2015
Due in one year or less	$	9,176	$	9,277	$	1,122	$	1,103
Due after one year through five years		47,230		49,196		9,847		9,494
Due after five years through ten years		54,120		54,459		22,296		20,686
Due after ten years		68,440		70,418		26,235		23,755
Mortgage-backed, asset-backed and collateralized		62,002		64,895		26,271		25,483
Total	$	240,968	$	248,245	$	85,771	$	80,521

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 September 30,								Nine Months Ended September 30,
		2016				2015			2016					2015
		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	$	189	$	54	$	96	$	112	$	593	$	696		$	439	$	289
Equity securities		54		1		24		8		1,066		15			544		16
Total	$	243	$	55	$	120	$	120	$	1,659	$	711		$	983	$	305

For the three and nine-month periods ended September 30, 2016, the aggregate fair value of available for sale securities sold was $7.9 billion and $22.3 billion, respectively, which resulted in net realized capital gains of $188 million and $948 million, respectively.

For the three and nine-month periods ended September 30, 2015, the aggregate fair value of available for sale securities sold was $6.9 billion and $20.9 billion, respectively, which resulted in net realized capital gains of zero and $678 million, respectively.

Other Securities Measured at Fair Value

The following table presents the fair value of other securities measured at fair value based on our election of the fair value option:

		September 30, 2016				December 31, 2015
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	3,347	22	%	$	3,369	19	%
Obligations of states, municipalities and political subdivisions		-	-			75	-
Non-U.S. governments		54	-			50	-
Corporate debt		1,974	13			2,035	12
Mortgage-backed, asset-backed and collateralized:
RMBS		1,847	12			2,230	13
CMBS		610	4			750	4
CDO/ABS and other collateralized^*		6,940	46			8,273	47
Total mortgage-backed, asset-backed and collateralized		9,397	62			11,253	64
Total fixed maturity securities		14,772	97			16,782	95
Equity securities		498	3			921	5
Total	$	15,270	100	%	$	17,703	100	%

* Includes $463 million and $712 million of U.S. Government agency-backed ABS at September 30, 2016 and December 31, 2015, respectively.

Other Invested Assets

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

		September 30,		December 31,
(in millions)		2016		2015
Alternative investments^{(a) (b)}	$	14,227	$	18,150
Investment real estate^(c)		6,494		6,579
Aircraft asset investments^(d)		356		477
Investments in life settlements		3,577		3,606
All other investments		1,093		982
Total	$	25,747	$	29,794

(a) At September 30, 2016, includes hedge funds of $7.8 billion, private equity funds of $5.8 billion, and affordable housing partnerships of $618 million. At December 31, 2015, includes hedge funds of $10.9 billion, private equity funds of $6.5 billion, and affordable housing partnerships of $701 million.

(b) Approximately 56 percent of our hedge fund portfolio is available for redemption in 2016, an additional 27 percent and 10 percent will be available in 2017 and 2018, respectively.

(c) Net of accumulated depreciation of $554 million and $668 million in September 30, 2016 and December 31, 2015, respectively.

(d) Consists of investments in aircraft equipment held in consolidated trusts.

Net Investment Income

The following table presents the components of Net investment income:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
Fixed maturity securities, including short-term investments	$	2,935	$	2,794	$	8,863	$	8,477
Equity securities		25		(5)		(19)		76
Interest on mortgage and other loans		379		360		1,144		1,046
Alternative investments^*		365		(18)		309		1,226
Real estate		37		66		125		116
Other investments		157		142		395		331
Total investment income		3,898		3,339		10,817		11,272
Investment expenses		115		133		338		402
Net investment income	$	3,783	$	3,206	$	10,479	$	10,870

* Beginning in the first quarter of 2016, the presentation of income on alternative investments has been refined to include only income from hedge funds, private equity funds and affordable housing partnerships. Prior period disclosures have been reclassified to conform to this presentation. Hedge funds for which we elected the fair value option are recorded as of the balance sheet date. Other hedge funds are generally reported on a one-month lag, while private equity funds are generally reported on a one-quarter lag.

Net Realized Capital Gains and Losses

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
Sales of fixed maturity securities	$	135	$	(16)	$	(103)	$	150
Sales of equity securities		53		16		1,051		528
Other-than-temporary impairments:
Severity		(10)		(10)		(15)		(12)
Change in intent		(2)		(81)		(35)		(193)
Foreign currency declines		(7)		(5)		(14)		(37)
Issuer-specific credit events		(77)		(176)		(303)		(314)
Adverse projected cash flows		(6)		(1)		(47)		(9)
Provision for loan losses		8		32		8		43
Foreign exchange transactions		(639)		(16)		(1,197)		304
Derivatives and hedge accounting		(226)		13		(129)		509
Impairments on investments in life settlements		(80)		(58)		(329)		(200)
Other^*		86		(40)		284		356
Net realized capital gains (losses)	$	(765)	$	(342)	$	(829)	$	1,125

* Includes $107 million of realized gains due to a purchase price adjustment on the sale of Class B shares of Prudential Financial, Inc. for the nine months ended September 30, 2016 and $357 million of realized gains due to the sale of common shares of SpringLeaf Holdings, $428 million of realized gains due to the sale of Class B shares of Prudential Financial, Inc. and $463 million of realized losses due to the sale of ordinary shares of AerCap for the nine months ended September 30, 2015.

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				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	1,595	$	(1,180)	$	11,957	$	(5,583)
Equity securities		(19)		(384)		(1,159)		(479)
Other investments		(29)		(85)		(243)		(625)
Total Increase (decrease) in unrealized appreciation (depreciation) of investments^*	$	1,547	$	(1,649)	$	10,555	$	(6,687)

* Excludes net unrealized gains attributable to businesses held for sale.

Evaluating Investments for Other-Than-Temporary Impairments

For a discussion of our policy for evaluating investments for other-than-temporary impairments, see Note 5 to the Consolidated Financial Statements in the 2015 Annual Report.

Credit Impairments

The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
Balance, beginning of period	$	1,298	$	2,238	$	1,747	$	2,659
Increases due to:
Credit impairments on new securities subject to impairment losses		23		51		146		101
Additional credit impairments on previously impaired securities		37		37		166		84
Reductions due to:
Credit impaired securities fully disposed of for which there was no
prior intent or requirement to sell		(39)		(63)		(282)		(213)
Credit impaired securities for which there is a current intent or
anticipated requirement to sell		-		(1)		-		(1)
Accretion on securities previously impaired due to credit^*		(187)		(197)		(645)		(565)
Impairments on securities reclassified to Assets held for sale		(2)		-		(2)		-
Balance, end of period	$	1,130	$	2,065	$	1,130	$	2,065

* Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time.

Purchased Credit Impaired (PCI) Securities

We purchase certain RMBS securities that have experienced deterioration in credit quality since their issuance. We determine, based on our expectations as to the timing and amount of cash flows expected to be received, whether it is probable at acquisition that we will not collect all contractually required payments for these PCI securities, including both principal and interest after considering the effects of prepayments. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security is determined based on our best estimate using key assumptions, such as interest rates, default rates and prepayment speeds. At acquisition, the difference between the undiscounted expected future cash flows of the PCI securities and the recorded investment in the securities represents the initial accretable yield, which is accreted into Net investment income over their remaining lives on a level-yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. The accretable yield and the non-accretable difference will change over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, which are discussed further below.

On a quarterly basis, the undiscounted expected future cash flows associated with PCI securities are re-evaluated based on updates to key assumptions. Declines in undiscounted expected future cash flows due to further credit deterioration as well as changes in the expected timing of the cash flows can result in the recognition of an other-than-temporary impairment charge, as PCI securities are subject to our policy for evaluating investments for other-than-temporary impairment. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI securities will change the accretable yield prospectively. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as adjustments to the accretable yield.

The following tables present information on our PCI securities, which are included in bonds available for sale:

(in millions)	At Date of Acquisition
Contractually required payments (principal and interest)	$	35,665
Cash flows expected to be collected^*		29,091
Recorded investment in acquired securities		19,536

* Represents undiscounted expected cash flows, including both principal and interest.

(in millions)	September 30, 2016		December 31, 2015
Outstanding principal balance	$	17,163	$	16,871
Amortized cost		12,364		12,303
Fair value		13,203		13,164

The following table presents activity for the accretable yield on PCI securities:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
Balance, beginning of period	$	7,043	$	6,833	$	6,846	$	6,865
Newly purchased PCI securities		177		136		628		551
Disposals		-		-		-		(13)
Accretion		(214)		(220)		(637)		(661)
Effect of changes in interest rate indices		(196)		4		(435)		(140)
Net reclassification from (to) non-accretable difference,
including effects of prepayments		158		180		566		331
Balance, end of period	$	6,968	$	6,933	$	6,968	$	6,933

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)		September 30, 2016		December 31, 2015
Fixed maturity securities available for sale	$	2,177	$	1,145
Other bond securities, at fair value	$	1,967	$	1,740

At September 30, 2016 and December 31, 2015, amounts borrowed under repurchase and securities lending agreements totaled $4.1 billion and $2.9 billion, respectively.

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
September 30, 2016
Other bond securities:
Non-U.S. governments	$	-	$	-	$	54	$	-	$	-	$	54
Corporate debt		-		365		1,111		437		-		1,913
Total	$	-	$	365	$	1,165	$	437	$	-	$	1,967

December 31, 2015
Bonds available for sale:
Non-U.S. governments	$	-	$	50	$	-	$	-	$	-	$	50
Other bond securities:
Non-U.S. governments		-		-		-		49		-		49
Corporate debt		-		33		332		1,326		-		1,691
Total	$	-	$	83	$	332	$	1,375	$	-	$	1,790

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
September 30, 2016
Bonds available for sale:
Non-U.S. governments	$	-	$	-	$	113	$	-	$	-	$	113
Corporate debt		-		711		1,190		102		-		2,003
CMBS		-		-		-		61		-		61
Total	$	-	$	711	$	1,303	$	163	$	-	$	2,177

December 31, 2015
Bonds available for sale:
Non-U.S. governments	$	-	$	-	$	57	$	-	$	-	$	57
Corporate debt		-		-		914		-		-		914
RMBS		-		-		-		124		-		124
Total	$	-	$	-	$	971	$	124	$	-	$	1,095

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)		September 30, 2016		December 31, 2015
Securities collateral pledged to us	$	1,590	$	1,742

Insurance – Statutory and Other Deposits

Total carrying values 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 treaties, were $5.2 billion and $4.9 billion at September 30, 2016 and December 31, 2015, 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 $127 million and $47 million of stock in FHLBs at September 30, 2016 and December 31, 2015, respectively. In addition, our subsidiaries have pledged securities available for sale with a fair value of $3.9 billion and $1.2 billion at September 30, 2016 and December 31, 2015, respectively, associated with advances from the FHLBs.

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 $2.3 billion and $2.4 billion at September 30, 2016 and December 31, 2015, respectively. 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.

Short-term investments held in escrow accounts or otherwise subject to restriction as to their use were $470 million and $439 million at September 30, 2016 and December 31, 2015, respectively.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

LENDING ACTIVITIES

9 Months Ended

Sep. 30, 2016

LENDING ACTIVITIES

LENDING ACTIVITIES

7. LENDING ACTIVITIES

The following table presents the composition of Mortgage and other loans receivable, net:

	September 30,			December 31,
(in millions)		2016		2015
Commercial mortgages^*	$	24,010	$	22,067
Residential mortgages		3,557		2,758
Commercial loans, other loans and notes receivable		2,635		2,451
Life insurance policy loans		2,510		2,597
Total mortgage and other loans receivable		32,712		29,873
Allowance for credit losses		(299)		(308)
Mortgage and other loans receivable, net	$	32,413	$	29,565

* Commercial mortgages primarily represent loans for offices, apartments and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 23 percent and 13 percent, respectively, at September 30, 2016, and 22 percent and 12 percent, respectively, at December 31, 2015).

Credit Quality of Commercial Mortgages

The following table presents debt service coverage ratios and loan-to-value ratios for commercial mortgages:

	Debt Service Coverage Ratios^(a)
(in millions)		>1.20X		1.00X - 1.20X		<1.00X		Total
September 30, 2016
Loan-to-Value Ratios^(b)
Less than 65%	$	13,111	$	1,949	$	228	$	15,288
65% to 75%		5,391		589		87		6,067
76% to 80%		1,445		184		47		1,676
Greater than 80%		362		412		205		979
Total commercial mortgages	$	20,309	$	3,134	$	567	$	24,010

December 31, 2015
Loan-to-Value Ratios^(b)
Less than 65%	$	10,283	$	1,704	$	150	$	12,137
65% to 75%		6,361		611		45		7,017
76% to 80%		1,370		169		81		1,620
Greater than 80%		646		226		421		1,293
Total commercial mortgages	$	18,660	$	2,710	$	697	$	22,067

(a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest.

(b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan.

The following table presents the credit quality performance indicators for commercial mortgages:

	Number															Percent
	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total^(c)	Total $
September 30, 2016
Credit Quality Performance Indicator:
In good standing	801	$	5,197	$	7,884	$	5,127	$	1,824	$	2,430	$	1,381	$	23,843	99	%
Restructured^(a)	4		-		133		18		-		16		-		167	1
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	805	$	5,197	$	8,017	$	5,145	$	1,824	$	2,446	$	1,381	$	24,010	100	%
Allowance for credit losses:
Specific		$	-	$	3	$	1	$	6	$	1	$	-	$	11	-	%
General			31		73		41		7		13		13		178	1
Total allowance for credit losses		$	31	$	76	$	42	$	13	$	14	$	13	$	189	1	%

December 31, 2015
Credit Quality Performance Indicator:
In good standing	830	$	3,916	$	7,484	$	4,809	$	1,902	$	2,082	$	1,435	$	21,628	98	%
Restructured^(a)	9		-		156		25		6		16		6		209	1
90 days or less delinquent	1		-		-		4		-		-		-		4	-
>90 days delinquent or in
process of foreclosure	9		3		205		-		6		-		12		226	1
Total^(b)	849	$	3,919	$	7,845	$	4,838	$	1,914	$	2,098	$	1,453	$	22,067	100	%
Allowance for credit losses:
Specific		$	-	$	16	$	1	$	6	$	1	$	-	$	24	-	%
General			35		47		29		8		15		13		147	1
Total allowance for credit losses		$	35	$	63	$	30	$	14	$	16	$	13	$	171	1	%

(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings, see Note 6 to the Consolidated Financial Statements in the 2015 Annual Report.

(b) Does not reflect allowance for credit losses.

(c) Approximately all of the commercial mortgages held at such respective dates were current as to payments of principal and interest. There were no significant amounts of nonperforming commercial mortgages (defined as those loans where payment of contractual principal or interest is more than 90 days past due) during any of the periods presented.

Allowance for Credit Losses

See Note 6 to the Consolidated Financial Statements in the 2015 Annual Report for a discussion of our accounting policy for evaluating Mortgage and other loans receivable for impairment.

The following table presents a rollforward of the changes in the allowance for losses on Mortgage and other loans receivable:

	2016						2015
Nine Months Ended September 30,		Commercial		Other				Commercial		Other
(in millions)		Mortgages		Loans		Total		Mortgages		Loans		Total
Allowance, beginning of year	$	171	$	137	$	308	$	159	$	112	$	271
Loans charged off		(13)		(2)		(15)		(23)		(6)		(29)
Recoveries of loans previously charged off		11		-		11		4		1		5
Net charge-offs		(2)		(2)		(4)		(19)		(5)		(24)
Provision for loan losses		20		(25)		(5)		22		(66)		(44)
Other		-		-		-		-		3		3
Allowance, end of period	$	189 ^*	$	110	$	299	$	162 ^*	$	44	$	206

* Of the total allowance, $11 million and $24 million relate to individually assessed credit losses on $292 million and $512 million of commercial mortgages at September 30, 2016 and 2015, respectively.

Loans that had been modified in troubled debt restructurings during the nine month period ended September 30, 2016 have been fully paid off. For the nine-month period ended September 30, 2015, loans with a carrying value of $42 million, were modified in troubled debt restructurings.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2016

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

8. VARIABLE INTEREST ENTITIES

We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks the entity was designed to expose the variable interest holders to.

The primary beneficiary of a VIE is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE.

Balance Sheet Classification and Exposure to Loss

The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Condensed Consolidated Balance Sheets:

(in millions)		Real Estate and Investment Entities^(d)		Securitization Vehicles		Structured Investment Vehicle		Affordable Housing Partnerships		Other		Total
September 30, 2016
Assets:
Bonds available for sale	$	-	$	10,546	$	-	$	-	$	-	$	10,546
Other bond securities		-		5,074		324		-		6		5,404
Mortgage and other loans receivable		1		1,553		-		-		109		1,663
Other invested assets		1,008		356		-		2,810		27		4,201
Other ^(a)		1,619		885		122		401		170		3,197
Total assets^(b)	$	2,628	$	18,414	$	446	$	3,211	$	312	$	25,011
Liabilities:
Long-term debt	$	431	$	781	$	55	$	1,698	$	6	$	2,971
Other ^(c)		1,440		225		-		230		138		2,033
Total liabilities	$	1,871	$	1,006	$	55	$	1,928	$	144	$	5,004
December 31, 2015
Assets:
Bonds available for sale	$	-	$	10,309	$	-	$	-	$	15	$	10,324
Other bond securities		-		5,756		387		-		24		6,167
Mortgage and other loans receivable		1		1,960		-		-		132		2,093
Other invested assets		489		477		-		2,608		24		3,598
Other ^(a)		29		1,349		94		293		159		1,924
Total assets^(b)	$	519	$	19,851	$	481	$	2,901	$	354	$	24,106
Liabilities:
Long-term debt	$	-	$	1,025	$	53	$	1,513	$	6	$	2,597
Other^(c)		34		236		1		214		71		556
Total liabilities	$	34	$	1,261	$	54	$	1,727	$	77	$	3,153

(a) At September 30, 2016, includes approximately $1.0 billion of assets from real estate investment entities that are classified as held for sale. The remaining balance was comprised primarily of Short-term investments and Other assets at September 30, 2016 and December 31, 2015.

(b) The assets of each VIE can be used only to settle specific obligations of that VIE.

(c) At September 30, 2016, includes approximately $1.2 billion of liabilities from real estate investment entities that are classified as held for sale. The remaining balance was comprised primarily of Other liabilities and Derivative liabilities, at fair value, at September 30, 2016 and December 31, 2015.

(d) At September 30, 2016 and December 31, 2015, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $126 million and $131 million, respectively.

We calculate our maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE. Interest holders in VIEs sponsored by us generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to us, except in limited circumstances when we have provided a guarantee to the VIE’s interest holders.

The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs:

			Maximum Exposure to Loss
		Total VIE		On-Balance		Off-Balance
(in millions)		Assets		Sheet^(a)		Sheet			Total
September 30, 2016
Real estate and investment entities^(d)	$	410,119	$	11,722	$	2,108		$	13,830
Affordable housing partnerships		4,755		789		-			789
Other		4,371		332		1,031	^(b)		1,363
Total^{(c) (e)}	$	419,245	$	12,843	$	3,139		$	15,982
December 31, 2015
Real estate and investment entities^(d)	$	21,951	$	3,072	$	398		$	3,470
Affordable housing partnerships		5,255		774		-			774
Other		1,110		215		1,000	^(b)		1,215
Total	$	28,316	$	4,061	$	1,398		$	5,459

(a) At September 30, 2016 and December 31, 2015, $ 12.4 billion and $3.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

(b) These amounts primarily represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet.

(c) As discussed in Note 2, on January 1, 2016, we adopted accounting guidance that resulted in an increase in the number of our investment entities classified as VIEs.

(d) Comprised primarily of hedge funds and private equity funds.

(e) At September 30, 2016, includes approximately $492 million total assets, $4 million of on-balance sheet exposure, and $2 million of off-balance sheet exposure from unconsolidated VIE entities that are classified as held for sale.

See Note 9 to the Consolidated Financial Statements in the 2015 Annual Report for additional information on VIEs.

DERIVATIVES AND HEDGE ACCOUNTING

9 Months Ended

Sep. 30, 2016

DERIVATIVES AND HEDGE ACCOUNTING

DERIVATIVES AND HEDGE ACCOUNTING

9. DERIVATIVES AND HEDGE ACCOUNTING

We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. See Note 10 to the Consolidated Financial Statements in the 2015 Annual Report for a discussion of our accounting policies and procedures regarding derivatives and hedge accounting.

Our businesses use derivatives and other instruments as part of their financial risk management. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium- and long-term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and options) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures, and foreign currency transactions. Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities. The derivatives are effective economic hedges of the exposures that they are meant to offset.

In addition to hedging activities, we also enter into derivative instruments with respect to investment operations, which may include, among other things, CDSs and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds.

The following table presents the notional amounts of our derivative instruments and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets:

	September 30, 2016								December 31, 2015
	Gross Derivative Assets				Gross Derivative Liabilities				Gross Derivative Assets				Gross Derivative Liabilities
		Notional		Fair		Notional		Fair		Notional		Fair		Notional		Fair
(in millions)		Amount		Value		Amount		Value		Amount		Value		Amount		Value
Derivatives designated as
hedging instruments:^(a)
Interest rate contracts	$	355	$	2	$	476	$	3	$	301	$	1	$	725	$	2
Foreign exchange contracts		4,686		392		1,795		67		2,903		207		914		56
Equity contracts		113		9		-		-		-		-		121		23
Derivatives not designated
as hedging instruments:^(a)
Interest rate contracts		56,872		4,287		42,001		3,716		45,846		3,161		65,733		2,197
Foreign exchange contracts		10,574		753		8,149		1,343		9,472		559		8,900		1,148
Equity contracts		12,994		313		8,369		2		6,656		177		5,028		45
Credit contracts^(b)		4		2		911		347		4		3		1,289		508
Other contracts^(c)		37,937		22		192		112		37,586		23		203		69
Total derivatives, gross	$	123,535	$	5,780	$	61,893	$	5,590	$	102,768	$	4,131	$	82,913	$	4,048
Counterparty netting^(d)				(2,289)				(2,289)				(1,268)				(1,268)
Cash collateral^(e)				(1,358)				(482)				(1,554)				(760)
Total derivatives on condensed
consolidated balance sheets^(f)			$	2,133			$	2,819			$	1,309			$	2,020

(a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.

(b) As of September 30, 2016 and December 31, 2015, included CDSs on super senior multi-sector CDOs with a net notional amount of $0.8 billion and $1.1 billion (fair value liability of $329 million and $483 million), respectively. The expected weighted average maturity as of September 30, 2016 is six years. Because of long-term maturities of the CDSs in the portfolio, we are unable to make reasonable estimates of the periods during which any payments would be made. However, the net notional amount represents the maximum exposure to loss on the portfolio. As of September 30, 2016 and December 31, 2015, there were no super senior corporate debt/CLOs remaining.

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

(e) Represents cash collateral posted and received that is eligible for netting.

(f) Freestanding derivatives only, excludes Embedded derivatives. Derivative instrument assets and liabilities are recorded in Other Assets and Liabilities, respectively. Fair value of assets related to bifurcated Embedded derivatives was $0 at both September 30, 2016 and December 31, 2015. Fair value of liabilities related to bifurcated Embedded derivatives was $4.1 billion and $2.3 billion, respectively, at September 30, 2016 and December 31, 2015. A bifurcated Embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components.

Collateral

We engage in derivative transactions that are not subject to a clearing requirement directly with unaffiliated third parties, in most cases, under International Swaps and Derivatives Association, Inc. (ISDA) Master Agreements. Many of the ISDA Master Agreements also include Credit Support Annex (CSA) provisions, which provide for collateral postings that may vary at various ratings and threshold levels. We attempt to reduce our risk with certain counterparties by entering into agreements that enable collateral to be obtained from a counterparty on an upfront or contingent basis. We minimize the risk that counterparties might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and generally requiring additional collateral to be posted upon the occurrence of certain events or circumstances. In addition, certain derivative transactions have provisions that require collateral to be posted upon a downgrade of our long-term debt ratings or give the counterparty the right to terminate the transaction. In the case of some of the derivative transactions, upon a downgrade of our long-term debt ratings, as an alternative to posting collateral and subject to certain conditions, we may assign the transaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action. The actual amount of collateral required to be posted to counterparties in the event of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade.

Collateral posted by us to third parties for derivative transactions was $3.5 billion and $3.0 billion at September 30, 2016 and December 31, 2015, respectively. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $2.1 billion and $1.6 billion at September 30, 2016 and December 31, 2015, respectively. In the case of collateral provided to us under derivative transactions that are not subject to clearing, we generally can repledge or resell collateral.

Offsetting

We have elected to present all derivative receivables and derivative payables, and the related cash collateral received and paid, on a net basis on our Condensed Consolidated Balance Sheets when a legally enforceable ISDA Master Agreement exists between us and our derivative counterparty. An ISDA Master Agreement is an agreement governing multiple derivative transactions between two counterparties. The ISDA Master Agreement generally provides for the net settlement of all, or a specified group, of these derivative transactions, as well as transferred collateral, through a single payment, and in a single currency, as applicable. The net settlement provisions apply in the event of a default on, or affecting any, one derivative transaction or a termination event affecting all, or a specified group of, derivative transactions governed by the ISDA Master Agreement.

Hedge Accounting

We designated certain derivatives entered into with third parties as fair value hedges of available for sale investment securities held by our insurance subsidiaries. The fair value hedges include foreign currency forwards and cross currency swaps designated as hedges of the change in fair value of foreign currency denominated available for sale securities attributable to changes in foreign exchange rates. We also designated certain interest rate swaps entered into with third parties as fair value hedges of fixed rate GICs attributable to changes in benchmark interest rates.

We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.S. dollar functional currency foreign subsidiaries. For net investment hedge relationships where issued debt is used as a hedging instrument, we assess the hedge effectiveness and measure the amount of ineffectiveness based on changes in spot rates. For net investment hedge relationships that use derivatives as hedging instruments, we assess hedge effectiveness and measure hedge ineffectiveness using changes in forward rates. For the three- and nine-month periods ended September 30, 2016, we recognized a gain of $1 million and a loss of $8 million, respectively, and for the three- and nine-month periods ended September 30, 2015, we recognized gains of $14 million and $87 million, respectively, included in Change in foreign currency translation adjustment in Other comprehensive income related to the net investment hedge relationships.

A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges.

The following table presents the gain (loss) recognized in earnings on our derivative instruments in fair value hedging relationships in the Condensed Consolidated Statements of Income:

	Gains/(Losses) Recognized in Earnings for:				Including Gains/(Losses) Attributable to:
	Hedging		Hedged		Hedge		Excluded
(in millions)	Derivatives^(a)		Items		Ineffectiveness		Components		Other^(b)
Three Months Ended September 30, 2016
Interest rate contracts:
Realized capital gains/(losses)	$	(1)	$	1	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		3		-		-		3
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		(10)		(34)		-		(44)		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		3		-		-		3
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		8		(9)		-		(1)		-
Three Months Ended September 30, 2015
Interest rate contracts:
Realized capital gains/(losses)	$	1	$	(1)	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		2		-		-		2
Gain/(Loss) on extinguishment of debt		-		1		-		-		1
Foreign exchange contracts:
Realized capital gains/(losses)		81		(67)		-		14		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		4		-		-		4
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		(4)		3		-		(1)		-

Nine Months Ended September 30, 2016
Interest rate contracts:
Realized capital gains/(losses)	$	-	$	(6)	$	-	$	-	$	(6)
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		10		-		-		10
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		413		(443)		-		(30)		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		15		-		-		15
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		28		(28)		-		-		-
Nine Months Ended September 30, 2015
Interest rate contracts:
Realized capital gains/(losses)	$	1	$	(1)	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		7		-		-		7
Gain/(Loss) on extinguishment of debt		-		14		-		-		14
Foreign exchange contracts:
Realized capital gains/(losses)		152		(123)		-		27		2
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		14		-		-		14
Gain/(Loss) on extinguishment of debt		-		17		-		-		17
Equity contracts:
Realized capital gains/(losses)		(23)		21		-		(2)		-

(a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged item.

(b) Represents accretion/amortization of opening fair value of the hedged item at inception of hedge relationship, amortization of basis adjustment on hedged item following the discontinuation of hedge accounting, and the release of debt basis adjustment following the repurchase of issued debt that was part of previously-discontinued fair value hedge relationship.

Derivatives Not Designated as Hedging Instruments

The following table presents the effect of derivative instruments not designated as hedging instruments in the Condensed Consolidated Statements of Income:

	Gains (Losses) Recognized in Earnings
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
By Derivative Type:
Interest rate contracts	$	91	$	470	$	1,464	$	398
Foreign exchange contracts		49		51		203		321
Equity contracts		(317)		229		(589)		108
Commodity contracts		-		-		-		(1)
Credit contracts		36		11		70		171
Other contracts		22		71		58		60
Embedded derivatives		30		(816)		(1,255)		(143)
Total	$	(89)	$	16	$	(49)	$	914
By Classification:
Policy fees	$	20	$	20	$	60	$	59
Net investment income		2		6		14		20
Net realized capital gains (losses)		(181)		20		(93)		496
Other income (losses)		69		(36)		(43)		334
Policyholder benefits and claims incurred		1		6		13		5
Total	$	(89)	$	16	$	(49)	$	914

Credit Risk-Related Contingent Features

The aggregate fair value of our derivative instruments that contain credit risk-related contingent features that were in a net liability position at September 30, 2016 and December 31, 2015, was approximately $2.3 billion and $2.0 billion, respectively. The aggregate fair value of assets posted as collateral under these contracts at September 30, 2016 and December 31, 2015, was approximately $2.7 billion and $2.1 billion, respectively.

We estimate that at September 30, 2016, based on our outstanding financial derivative transactions, a downgrade of our long-term senior debt ratings to BBB+, BBB or BBB– by Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and/or a downgrade to Baa2 or Baa3 by Moody’s Investors’ Service, Inc. would permit counterparties to make additional collateral calls and permit certain counterparties to elect early termination of contracts, resulting in corresponding collateral postings and termination payments in the total amount of up to approximately $145 million.

Additional collateral postings upon downgrade are estimated based on the factors in the individual collateral posting provisions of the CSA with each counterparty and current exposure as of September 30, 2016. Factors considered in estimating the termination payments upon downgrade include current market conditions and the terms of the respective CSA provisions. Our estimates are also based on the assumption that counterparties will terminate based on their net exposure to us. The actual termination payments could differ from our estimates given market conditions at the time of downgrade and the level of uncertainty in estimating both the number of counterparties who may elect to exercise their right to terminate and the payment that may be triggered in connection with any such exercise.

Hybrid Securities with Embedded Credit Derivatives

We invest in hybrid securities (such as credit-linked notes) with the intent of generating income, and not specifically to acquire exposure to embedded derivative risk. As is the case with our other investments in RMBS, CMBS, CDOs and ABS, our investments in these hybrid securities are exposed to losses only up to the amount of our initial investment in the hybrid security. Other than our initial investment in the hybrid securities, we have no further obligation to make payments on the embedded credit derivatives in the related hybrid securities.

We elect to account for our investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recognized in Net investment income and Other income. Our investments in these hybrid securities are reported as Other bond securities in the Condensed Consolidated Balance Sheets. The fair values of these hybrid securities were $4.9 billion and $5.7 billion at September 30, 2016 and December 31, 2015, respectively. These securities have par amounts of $10.4 billion and $11.2 billion at September 30, 2016 and December 31, 2015, respectively, and have remaining stated maturity dates that extend to 2052.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

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+ Details

CONTINGENCIES, COMMITMENTS AND GUARANTEES

9 Months Ended

Sep. 30, 2016

CONTINGENCIES, COMMITMENTS AND GUARANTEES

CONTINGENCIES, COMMITMENTS AND GUARANTEES

10. CONTINGENCIES, COMMITMENTS AND GUARANTEES

In the normal course of business, various contingent liabilities and commitments are entered into by AIG and our subsidiaries. In addition, AIG Parent guarantees various obligations of certain subsidiaries.

Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on AIG’s consolidated financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period.

Legal Contingencies

Overview. In the normal course of business, AIG and our subsidiaries are, like others in the insurance and financial services industries in general, subject to litigation, including claims for punitive damages. In our insurance and United Guaranty operations, litigation arising from claims settlement activities is generally considered in the establishment of our liability for unpaid losses and loss adjustment expenses. However, the potential for increasing jury awards and settlements makes it difficult to assess the ultimate outcome of such litigation. AIG is also subject to derivative, class action and other claims asserted by its shareholders and others alleging, among other things, breach of fiduciary duties by its directors and officers and violations of insurance laws and regulations, as well as federal and state securities laws. In the case of any derivative action brought on behalf of AIG, any recovery would accrue to the benefit of AIG.

Various regulatory and governmental agencies have been reviewing certain transactions and practices of AIG and our subsidiaries in connection with industry-wide and other inquiries into, among other matters, certain business practices of current and former operating insurance subsidiaries. We have cooperated, and will continue to cooperate, in producing documents and other information in response to subpoenas and other requests.

AIG’s Subprime Exposure, AIGFP Credit Default Swap Portfolio and Related Matters

AIG, AIG Financial Products Corp. and related subsidiaries (collectively AIGFP), and certain directors and officers of AIG, AIGFP and other AIG subsidiaries have been named in various actions relating to our exposure to the U.S. residential subprime mortgage market, unrealized market valuation losses on AIGFP’s super senior credit default swap portfolio, losses and liquidity constraints relating to our securities lending program and related disclosure and other matters (Subprime Exposure Issues).

Consolidated 2008 Securities Litigation. On May 19, 2009, a consolidated class action complaint, resulting from the consolidation of eight purported securities class actions filed between May 2008 and January 2009, was filed against AIG and certain directors and officers of AIG and AIGFP, AIG’s outside auditors, and the underwriters of various securities offerings in the United States District Court for the Southern District of New York (the Southern District of New York) in In re American International Group, Inc. 2008 Securities Litigation (the Consolidated 2008 Securities Litigation), asserting claims under the Securities Exchange Act of 1934, as amended (the Exchange Act), and claims under the Securities Act of 1933, as amended (the Securities Act), for allegedly materially false and misleading statements in AIG’s public disclosures from March 16, 2006 to September 16, 2008 relating to, among other things, the Subprime Exposure Issues.

On July 15, 2014 and August 1, 2014, lead plaintiff, AIG and AIG’s outside auditor accepted mediators’ proposals to settle the Consolidated 2008 Securities Litigation against all defendants. On October 22, 2014, AIG made a cash payment of $960 million, which is being held in escrow until all funds are distributed. On March 20, 2015, the Court issued an Order and Final Judgment approving the class settlement and dismissing the action with prejudice, and the AIG settlement became final on June 29, 2015.

Individual Securities Litigations. Between November 18, 2011 and February 9, 2015, eleven separate, though similar, securities actions (Individual Securities Litigations) were filed in or transferred to the Southern District of New York (SDNY), asserting claims substantially similar to those in the Consolidated 2008 Securities Litigation against AIG and certain directors and officers of AIG and AIGFP. Two of the actions were voluntarily dismissed. On September 10, 2015, the SDNY granted AIG’s motion to dismiss some of the claims in the Individual Securities Litigations in whole or in part. AIG has settled eight of the nine remaining actions. The remaining Individual Securities Litigation pending in the SDNY was brought by a series of institutional investor funds. After the court’s decision granting AIG’s motion to dismiss plaintiff’s claims in part, the claims in the remaining action are limited to a claim under Section 10(b) of the Exchange Act for allegedly materially false and misleading statements in AIG’s public disclosures from February 8, 2008 to September 16, 2008 relating to, among other things, the Subprime Exposure Issues.

On March 27, 2015, an additional securities action was filed in state court in Orange County, California asserting a claim against AIG pursuant to Section 11 of the Securities Act (the California Action) that is substantially similar to those in the Consolidated 2008 Securities Litigation and the Individual Securities Litigations. After denying AIG’s motion to remove the California Action to federal court and stay the action, the trial court overruled AIG’s demurrer to dismiss all of the claims asserted in the California Action, which is currently on appeal to the California Court of Appeals for the Fourth Appellate District.

We have accrued our current estimate of probable loss with respect to these litigations.

Starr International Litigation

On November 21, 2011, Starr International Company, Inc. (SICO) filed a complaint against the United States in the United States Court of Federal Claims (the Court of Federal Claims), bringing claims, both individually and on behalf of the classes defined below and derivatively on behalf of AIG (the SICO Treasury Action). The complaint challenges the government’s assistance of AIG, pursuant to which AIG entered into a credit facility with the Federal Reserve Bank of New York (the FRBNY, and such credit facility, the FRBNY Credit Facility) and the United States received an approximately 80 percent ownership in AIG. The complaint alleges that the interest rate imposed on AIG and the appropriation of approximately 80 percent of AIG’s equity was discriminatory, unprecedented, and inconsistent with liquidity assistance offered by the government to other comparable firms at the time and violated the Equal Protection, Due Process, and Takings Clauses of the U.S. Constitution.

In the SICO Treasury Action, the only claims naming AIG as a party (as a nominal defendant) are derivative claims on behalf of AIG. On September 21, 2012, SICO made a pre-litigation demand on our Board demanding that we pursue the derivative claims or allow SICO to pursue the claims on our behalf. On January 9, 2013, our Board unanimously refused SICO’s demand in its entirety and on January 23, 2013, counsel for the Board sent a letter to counsel for SICO describing the process by which our Board considered and refused SICO’s demand and stating the reasons for our Board’s determination.

On March 11, 2013, SICO filed a second amended complaint in the SICO Treasury Action alleging that its demand was wrongfully refused. On June 26, 2013, the Court of Federal Claims granted AIG’s and the United States’ motions to dismiss SICO’s derivative claims in the SICO Treasury Action due to our Board’s refusal of SICO’s demand and denied the United States’ motion to dismiss SICO’s direct, non-derivative claims.

On March 11, 2013, the Court of Federal Claims in the SICO Treasury Action granted SICO’s motion for class certification of two classes with respect to SICO’s non-derivative claims: (1) persons and entities who held shares of AIG Common Stock on or before September 16, 2008 and who owned those shares on September 22, 2008 (the Credit Agreement Shareholder Class); and (2) persons and entities who owned shares of AIG Common Stock on June 30, 2009 and were eligible to vote those shares at AIG’s June 30, 2009 annual meeting of shareholders (the Reverse Stock Split Shareholder Class). SICO has provided notice of class certification to potential members of the classes, who, pursuant to a court order issued on April 25, 2013, had to return opt-in consent forms by September 16, 2013 to participate in either class. 286,908 holders of AIG Common Stock during the two class periods have opted into the classes.

On June 15, 2015, the Court of Federal Claims issued its opinion and order in the SICO Treasury Action. The Court found that the United States exceeded its statutory authority by exacting approximately 80 percent of AIG’s equity in exchange for the FRBNY Credit Facility, but that AIG shareholders suffered no damages as a result. SICO argued during trial that the two classes are entitled to a total of approximately $40 billion in damages, plus interest. The Court also found that the United States was not liable to the Reverse Stock Split Class in connection with the reverse stock split vote at the June 30, 2009 annual meeting of shareholders.

On June 17, 2015, the Court of Federal Claims entered judgment stating that “the Credit Agreement Shareholder Class shall prevail on liability due to the Government's illegal exaction, but shall recover zero damages, and that the Reverse Stock Split Shareholder Class shall not prevail on liability or damages.” SICO filed a notice of appeal of the July 2, 2012 dismissal of SICO’s unconstitutional conditions claim, the June 26, 2013 dismissal of SICO’s derivative claims, the Court’s June 15, 2015 opinion and order, and the Court’s June 17, 2015 judgment to the United States Court of Appeals for the Federal Circuit. The United States filed a notice of cross appeal of the Court’s July 2, 2012 opinion and order denying in part its motion to dismiss, the Court’s June 26, 2013 opinion and order denying its motion to dismiss SICO’s direct claims, the Court’s June 15, 2015 opinion and order, and the Court’s June 17, 2015 judgment to the United States Court of Appeals for the Federal Circuit.

On August 25, 2015, SICO filed its appellate brief, in which it stated SICO does not appeal the dismissal of the derivative claims it asserted on behalf of AIG.

In the Court of Federal Claims, the United States has alleged, as an affirmative defense in its answer, that AIG is obligated to indemnify the FRBNY and its representatives, including the Federal Reserve Board of Governors and the United States (as the FRBNY’s principal), for any recovery in the SICO Treasury Action.

AIG believes that any indemnification obligation would arise only if: (a) SICO prevails on its appeal and ultimately receives an award of damages; (b) the United States then commences an action against AIG seeking indemnification; and (c) the United States is successful in such an action through any appellate process. If SICO prevails on its claims and the United States seeks indemnification from AIG, AIG intends to assert defenses thereto. A reversal of the Court of Federal Claim’s June 17, 2015 decision and judgment and a final determination that the United States is liable for damages, together with a final determination that AIG is obligated to indemnify the United States for any such damages, could have a material adverse effect on our business, consolidated financial condition and results of operations.

False Claims Act Complaint

On February 25, 2010, a complaint was filed in the United States District Court for the Southern District of California by two individuals (Relators) seeking to assert claims on behalf of the United States against AIG and certain other defendants, including Goldman Sachs and Deutsche Bank, under the False Claims Act. Relators filed a first amended complaint on September 30, 2010, adding certain additional defendants, including Bank of America and Société Générale. The first amended complaint alleged that defendants engaged in fraudulent business practices in respect of their activities in the over-the-counter market for collateralized debt obligations, and submitted false claims to the United States in connection with the FRBNY Credit Facility and Maiden Lane II LLC and Maiden Lane III LLC entities (the Maiden Lane Interests) through, among other things, misrepresenting AIG’s ability and intent to repay amounts drawn on the FRBNY Credit Facility, and misrepresenting the value of the securities that the Maiden Lane Interests acquired from AIG and certain of its counterparties. The first amended complaint sought unspecified damages pursuant to the False Claims Act in the amount of three times the damages allegedly sustained by the United States as well as interest, attorneys’ fees, costs and expenses. The complaint and the first amended complaint were initially filed and maintained under seal while the United States considered whether to intervene in the action. On or about April 28, 2011, after the United States declined to intervene, the District Court lifted the seal, and Relators served the first amended complaint on AIG on July 11, 2011. On April 19, 2013, the Court granted AIG’s motion to dismiss, dismissing the first amended complaint in its entirety, without prejudice, giving the Relators the opportunity to file a second amended complaint. On May 24, 2013, the Relators filed a second amended complaint, which attempted to plead the same claims as the prior complaints and did not specify an amount of alleged damages. AIG and its co-defendants filed motions to dismiss the second amended complaint on August 9, 2013. On March 29, 2014, the Court dismissed the second amended complaint with prejudice. On April 30, 2014, the Relators filed a Notice of Appeal to the Ninth Circuit. On May 5, 2016, the Ninth Circuit affirmed the decision of the trial court and the Relators failed to file a petition for a writ of certiorari to the United States Supreme Court within the mandated period. Therefore, the District Court judgment dismissing the case is now final and no longer subject to appeal.

Litigation Matters Relating to AIG’s Insurance Operations

Caremark. AIG and certain of its subsidiaries have been named defendants in two putative class actions in state court in Alabama that arise out of the 1999 settlement of class and derivative litigation involving Caremark Rx, Inc. (Caremark). The plaintiffs in the second-filed action intervened in the first-filed action, and the second-filed action was dismissed. An excess policy issued by a subsidiary of AIG with respect to the 1999 litigation was expressly stated to be without limit of liability. In the current actions, plaintiffs allege that the judge approving the 1999 settlement was misled as to the extent of available insurance coverage and would not have approved the settlement had he known of the existence and/or unlimited nature of the excess policy. They further allege that AIG, its subsidiaries, and Caremark are liable for fraud and suppression for misrepresenting and/or concealing the nature and extent of coverage.

The complaints filed by the plaintiffs and the intervenors request compensatory damages for the 1999 class in the amount of $3.2 billion, plus punitive damages. AIG and its subsidiaries deny the allegations of fraud and suppression, assert that information concerning the excess policy was publicly disclosed months prior to the approval of the settlement, that the claims are barred by the statute of limitations, and that the statute cannot be tolled in light of the public disclosure of the excess coverage. The plaintiffs and intervenors, in turn, have asserted that the disclosure was insufficient to inform them of the nature of the coverage and did not start the running of the statute of limitations.

On August 15, 2012, the trial court entered an order granting plaintiffs’ motion for class certification, and on September 12, 2014, the Alabama Supreme Court affirmed that order. AIG and the other defendants’ petition for rehearing of that decision was denied on February 27, 2015. The matter was remanded to the trial court for general discovery and adjudication of the merits. On November 24, 2015, the trial court ruled that the defendants had a duty to disclose the amount of insurance available at the settlement approval hearings and that the defendants breached that duty. Thereafter, the parties settled this matter and the court granted final approval of the settlement on August 15, 2016. Payment of the settlement amount was made on September 12, 2016. We had previously accrued our estimate of loss with respect to this litigation.

Regulatory and Related Matters

In April 2007, the National Association of Insurance Commissioners (NAIC) formed a Settlement Review Working Group, directed by the State of Indiana, to review the Workers’ Compensation Residual Market Assessment portion of the settlement between AIG, the Office of the New York Attorney General, and the New York State Department of Insurance. In late 2007, the Settlement Review Working Group, under the direction of Indiana, Minnesota and Rhode Island, recommended that a multi-state targeted market conduct examination focusing on workers’ compensation insurance be commenced under the direction of the NAIC’s Market Analysis Working Group. AIG was informed of the multi-state targeted market conduct examination in January 2008. The lead states in the multi-state examination were Delaware, Florida, Indiana, Massachusetts, Minnesota, New York, Pennsylvania and Rhode Island. All other states (and the District of Columbia) agreed to participate in the multi-state examination. The examination focused on legacy issues related to certain AIG entities’ writing and reporting of workers compensation insurance between 1985 and 1996.

On December 17, 2010, AIG and the lead states reached an agreement to settle all regulatory liabilities arising out of the subjects of the multistate examination. This regulatory settlement agreement, which was agreed to by all 50 states and the District of Columbia, included, among other terms, (i) AIG’s payment of $100 million in regulatory fines and penalties; (ii) AIG’s payment of $46.5 million in outstanding premium taxes and assessments; (iii) AIG’s agreement to enter into a compliance plan describing agreed-upon specific steps and standards for evaluating AIG’s ongoing compliance with state regulations governing the setting of workers’ compensation insurance premium rates and the reporting of workers’ compensation premiums; and (iv) AIG’s agreement to pay up to $150 million in contingent fines in the event that AIG fails to comply substantially with the compliance plan requirements. In furtherance of the compliance plan, the agreement provided for a monitoring period from May 29, 2012 to May 29, 2014 leading up to a compliance plan examination. After the close of the monitoring period, as part of preparation for the actual conduct of the compliance plan examination, on or about October 1, 2014, AIG and the lead states agreed upon corrective action plans to address particular issues identified during the monitoring period. The compliance plan examination is ongoing. There can be no assurance that the result of the compliance plan examination will not result in a fine, have a material adverse effect on AIG’s ongoing operations or lead to civil litigation.

In connection with a multi-state examination of certain accident and health products, including travel products, issued by National Union Fire Insurance Company of Pittsburgh, Pa. (National Union), AIG Property Casualty Inc. (formerly Chartis Inc.), on behalf of itself, National Union, and certain of AIG Property Casualty Inc.’s insurance and non-insurance companies (collectively, the AIG PC parties) entered into a Regulatory Settlement Agreement with regulators from 50 U.S. jurisdictions effective November 29, 2012. Under the agreement, and without admitting any liability for the issues raised in the examination, the AIG PC parties (i) paid a civil penalty of $50 million, (ii) entered into a corrective action plan describing agreed-upon specific steps and standards for evaluating the AIG PC parties’ ongoing compliance with laws and regulations governing the issues identified in the examination, and (iii) agreed to pay a contingent fine in the event that the AIG PC parties fail to satisfy certain terms of the corrective action plan. On April 29, 2016, National Union and other AIG companies achieved a settlement in principle of civil litigation relating to the conduct of their accident and health business, subject to formal documentation and court approval. Preliminary approval of the settlement was granted on October 14, 2016, and the settlement funds have been placed into escrow, pending final court approval of the settlement. We had previously accrued our estimate of loss with respect to this settlement. On May 23, 2016, the managing lead state in the multi-state examination ordered that the companies subject to the Regulatory Settlement Agreement have “complied with the terms” of the Regulatory Settlement Agreement and that no contingent fine or civil penalty would be due.

Other Commitments

In the normal course of business, we enter into commitments to invest in limited partnerships, private equity funds and hedge funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled $3.2 billion at September 30, 2016.

Guarantees

Subsidiaries

We have issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP and of AIG Markets arising from transactions entered into by AIG Markets.

In connection with AIGFP’s business activities, AIGFP has issued, in a limited number of transactions, standby letters of credit or similar facilities to equity investors of structured leasing transactions in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at September 30, 2016 was $138 million. In those transactions, AIGFP has agreed to pay such amount if the lessee fails to pay. The amount payable by AIGFP is, in certain cases, partially offset by amounts payable under other instruments typically equal to the present value of scheduled payments to be made by AIGFP. In the event that AIGFP is required to make a payment to the equity investor, the lessee is unconditionally obligated to reimburse AIGFP. To the extent that the equity investor is paid the equity termination value from the standby letter of credit and/or other sources, including payments by the lessee, AIGFP takes an assignment of the equity investor’s rights under the lease of the underlying property. Because the obligations of the lessee under the lease transactions are generally economically defeased, lessee bankruptcy is the most likely circumstance in which AIGFP would be required to pay without reimbursement.

Asset Dispositions

General

We are subject to financial guarantees and indemnity arrangements in connection with the completed sales of businesses pursuant to our asset disposition plan. The various arrangements may be triggered by, among other things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent liabilities, developments in litigation or breaches of representations, warranties or covenants provided by us. These arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable.

We are unable to develop a reasonable estimate of the maximum potential payout under certain of these arrangements. Overall, we believe that it is unlikely we will have to make any material payments related to completed sales under these arrangements, and no material liabilities related to these arrangements have been recorded in the Condensed Consolidated Balance Sheets.

Other

See Note 8 to the Condensed Consolidated Financial Statements for additional discussion of commitments and guarantees associated with VIEs.
See Note 9 to the Condensed Consolidated Financial Statements for additional disclosures about derivatives.
See Note 15 to the Condensed Consolidated Financial Statements for additional disclosures about guarantees of outstanding debt

EQUITY

9 Months Ended

Sep. 30, 2016

EQUITY

EQUITY

11. EQUITY

Shares Outstanding

The following table presents a rollforward of outstanding shares:

	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Nine Months Ended September 30, 2016
Shares, beginning of year	1,906,671,492	(712,754,875)	1,193,916,617
Shares issued	-	2,054,043	2,054,043
Shares repurchased	-	(153,082,104)	(153,082,104)
Shares, end of period	1,906,671,492	(863,782,936)	1,042,888,556

Dividends

Payment of future dividends to our shareholders and repurchases of AIG Common Stock depends in part on the regulatory framework that we are currently subject to and that will ultimately be applicable to us, including as a nonbank systemically important financial institution under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and a global systemically important insurer. In addition, dividends are payable on AIG Common Stock only when, as and if declared by our Board of Directors in its discretion, from funds legally available for this purpose. In considering whether to pay a dividend or purchase shares of AIG Common Stock, our Board of Directors considers a number of factors, including, but not limited to: the capital resources available to support our insurance operations and business strategies, AIG’s funding capacity and capital resources in comparison to internal benchmarks, expectations for capital generation, rating agency expectations for capital, regulatory standards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant.

On March 28, 2016, we paid a dividend of $0.32 per share on AIG Common Stock to shareholders of record on March 14, 2016. On June 27, 2016, we paid a dividend of $0.32 per share on AIG Common Stock to shareholders of record on June 13, 2016. On September 29, 2016, we paid a dividend of $0.32 per share on AIG Common Stock to shareholders of record on September 15, 2016.

See Note 18 to the Consolidated Financial Statements in the 2015 Annual Report for a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries.

Repurchase of AIG Common Stock

Our Board of Directors has authorized the repurchase of shares of AIG Common Stock through a series of actions. On August 2, 2016, our Board of Directors authorized an additional increase of $3.0 billion to its previous share repurchase authorization. As of September 30, 2016, approximately $2.4 billion remained under our share repurchase authorization. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise (including through the purchase of warrants). Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans.

We repurchased approximately 153 million shares of AIG Common Stock in the nine-month period ended September 30, 2016 for an aggregate purchase price of approximately $8.5 billion, and we repurchased 15 million warrants to purchase shares of AIG Common Stock for an aggregate purchase price of $263 million.

The timing of any future repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factors.

Accumulated Other Comprehensive Income

The following table presents a rollforward of Accumulated other comprehensive income:

		Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken
				Unrealized Appreciation (Depreciation) of All Other Investments		Foreign Currency Translation Adjustments		Retirement Plan Liabilities Adjustment


(in millions)										Total
Balance, December 31, 2015, net of tax	$	696	$	5,566	$	(2,879)	$	(846)	$	2,537
Change in unrealized appreciation (depreciation) of investments		(318)		10,873		-		-		10,555
Change in deferred policy acquisition costs adjustment and other^*		(40)		(887)		-		-		(927)
Change in future policy benefits		-		(2,099)		-		-		(2,099)
Change in foreign currency translation adjustments		-		-		179		-		179
Change in net actuarial loss		-		-		-		13		13
Change in prior service credit		-		-		-		(20)		(20)
Change in deferred tax asset (liability)		248		(1,585)		153		3		(1,181)
Total other comprehensive income (loss)		(110)		6,302		332		(4)		6,520
Noncontrolling interests		-		-		-		-		-
Balance, September 30, 2016, net of tax	$	586	$	11,868	$	(2,547)	$	(850)	$	9,057

Balance, December 31, 2014, net of tax	$	1,043	$	12,327	$	(1,784)	$	(969)	$	10,617
Change in unrealized depreciation of investments		(315)		(6,372)		-		-		(6,687)
Change in deferred policy acquisition costs adjustment and other		-		763		-		-		763
Change in future policy benefits		92		807		-		-		899
Change in foreign currency translation adjustments		-		-		(901)		-		(901)
Change in net actuarial loss		-		-		-		417		417
Change in prior service credit		-		-		-		(210)		(210)
Change in deferred tax asset (liability)		54		1,493		167		(59)		1,655
Total other comprehensive income (loss)		(169)		(3,309)		(734)		148		(4,064)
Noncontrolling interests		-		-		(4)		-		(4)
Balance, September 30, 2015, net of tax	$	874	$	9,018	$	(2,514)	$	(821)	$	6,557

* Includes net unrealized gains attributable to businesses held for sale.

The following table presents the other comprehensive income reclassification adjustments for the three-month periods ended September 30, 2016 and 2015, respectively:

		Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken
				Unrealized Appreciation (Depreciation) of All Other Investments		Foreign Currency Translation Adjustments		Retirement Plan Liabilities Adjustment


(in millions)										Total
Three Months Ended September 30, 2016
Unrealized change arising during period	$	147	$	816	$	21	$	(8)	$	976
Less: Reclassification adjustments
included in net income		6		163		-		(3)		166
Total other comprehensive income,
before income tax expense (benefit)		141		653		21		(5)		810
Less: Income tax expense (benefit)		(76)		187		(90)		(9)		12
Total other comprehensive income,
net of income tax expense (benefit)	$	217	$	466	$	111	$	4	$	798
Three Months Ended September 30, 2015
Unrealized change arising during period	$	(98)	$	(1,275)	$	(217)	$	303	$	(1,287)
Less: Reclassification adjustments
included in net income		13		(17)		-		164		160
Total other comprehensive income (loss),
before income tax expense (benefit)		(111)		(1,258)		(217)		139		(1,447)
Less: Income tax expense (benefit)		(50)		(401)		21		47		(383)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(61)	$	(857)	$	(238)	$	92	$	(1,064)
Nine Months Ended September 30, 2016
Unrealized change arising during period	$	(252)	$	8,733	$	179	$	(18)	$	8,642
Less: Reclassification adjustments
included in net income		106		846		-		(11)		941
Total other comprehensive income (loss),
before income tax expense (benefit)		(358)		7,887		179		(7)		7,701
Less: Income tax expense (benefit)		(248)		1,585		(153)		(3)		1,181
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(110)	$	6,302	$	332	$	(4)	$	6,520
Nine Months Ended September 30, 2015
Unrealized change arising during period	$	(155)	$	(4,243)	$	(901)	$	324	$	(4,975)
Less: Reclassification adjustments
included in net income		68		559		-		117		744
Total other comprehensive income (loss),
before income tax expense (benefit)		(223)		(4,802)		(901)		207		(5,719)
Less: Income tax expense (benefit)		(54)		(1,493)		(167)		59		(1,655)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(169)	$	(3,309)	$	(734)	$	148	$	(4,064)

The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Condensed Consolidated Statements of Income:

	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income

	Three Months Ended September 30,
(in millions)		2016		2015
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken

Investments		$	6	$	13		Other realized capital gains
Total			6		13
Unrealized appreciation (depreciation) of all other investments
Investments			182		(15)		Other realized capital gains
Deferred acquisition costs adjustment			(19)		(2)		Amortization of deferred policy acquisition costs
Future policy benefits			-		-		Policyholder benefits and losses incurred
Total			163		(17)
Change in retirement plan liabilities adjustment
Prior - service credit			4		187		*
Actuarial losses			(7)		(23)		*
Total			(3)		164
Total reclassifications for the period		$	166	$	160
	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income

	Nine Months Ended September 30,
(in millions)		2016		2015
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken

Investments		$	106	$	68		Other realized capital gains
Total			106		68
Unrealized appreciation (depreciation) of all other investments
Investments			843		609		Other realized capital gains
Deferred acquisition costs adjustment			3		(67)		Amortization of deferred policy acquisition costs
Future policy benefits			-		17		Policyholder benefits and losses incurred
Total			846		559
Change in retirement plan liabilities adjustment
Prior - service credit			13		210		*
Actuarial losses			(24)		(93)		*
Total			(11)		117		-
Total reclassifications for the period		$	941	$	744		-

* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 13 to the Condensed Consolidated Financial Statements.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

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+ Details

EARNINGS PER SHARE (EPS)

9 Months Ended

Sep. 30, 2016

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

12. EARNINGS PER SHARE (EPS)

The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits.

The following table presents the computation of basic and diluted EPS:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions, except per share data)		2016		2015		2016		2015
Numerator for EPS:
Income (loss) from continuing operations	$	433	$	(180)	$	2,211	$	4,071
Less: Net income (loss) from continuing operations attributable to noncontrolling interests		(26)		34		(35)		34
Income (loss) attributable to AIG common shareholders from continuing operations		459		(214)		2,246		4,037
Income (loss) from discontinued operations, net of income tax expense		3		(17)		(54)		-
Net income (loss) attributable to AIG common shareholders		462		(231)		2,192		4,037
Denominator for EPS:
Weighted average shares outstanding - basic		1,071,295,892		1,279,072,748		1,113,650,878		1,324,407,969
Dilutive shares^(a)		31,104,878		-		29,049,329		32,700,815
Weighted average shares outstanding - diluted^(b)		1,102,400,770		1,279,072,748		1,142,700,207		1,357,108,784
Income per common share attributable to AIG:
Basic:
Income (loss) from continuing operations	$	0.43	$	(0.17)	$	2.02	$	3.05
Income (loss) from discontinued operations	$	-	$	(0.01)	$	(0.05)	$	-
Income (loss) attributable to AIG	$	0.43	$	(0.18)	$	1.97	$	3.05
Diluted:
Income (loss) from continuing operations	$	0.42	$	(0.17)	$	1.97	$	2.97
Income (loss) from discontinued operations	$	-	$	(0.01)	$	(0.05)	$	-
Income (loss) attributable to AIG	$	0.42	$	(0.18)	$	1.92	$	2.97

(a) Shares in the diluted EPS calculation represent basic shares for the three-month period ended September 30, 2015 due to the net loss in that period.

(b) Dilutive shares include our share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of shares excluded from diluted shares outstanding was 0.1 million and 0.2 million for the three- and nine-month periods ended September 30, 2016, respectively, and 0.1 million and 0.2 million for the three- and nine-month periods ended September 30, 2015, respectively, because the effect of including those shares in the calculation would have been anti-dilutive.

EMPLOYEE BENEFITS

9 Months Ended

Sep. 30, 2016

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

13. EMPLOYEE BENEFITS

We sponsor various defined benefit pension plans, post-retirement medical and life insurance plans for eligible employees and retirees in the U.S. and certain non-U.S. countries. Effective January 1, 2016, the U.S. defined benefit pension plans were frozen for current participants and closed to new hires. Accordingly, compensation-based benefits are no longer credited to the cash balance accounts of plan participants.

Beginning in 2016, interest cost for pension and postretirement benefits for our U.S. plans and largest non-U.S. plans is measured by applying the specific spot rates along the yield curve to the plans’ corresponding discounted cash flows that comprise the obligation (the Spot Rate Approach). This method provides a more precise measurement of interest cost by aligning the timing of the plans’ discounted cash flows to the corresponding spot rates on the yield curve. Previously, we measured interest cost utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligations.

The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits:

	Pension						Postretirement
		U.S.		Non-U.S.				U.S.		Non-U.S.
(in millions)		Plans		Plans		Total		Plans		Plans		Total
Three Months Ended September 30, 2016
Components of net periodic benefit cost:
Service cost	$	6	$	8	$	14	$	1	$	-	$	1
Interest cost		45		5		50		2		-		2
Expected return on assets		(72)		(7)		(79)		-		-		-
Amortization of prior service credit		-		-		-		(2)		-		(2)
Amortization of net (gain) loss		7		2		9		(1)		1		-
Curtailment gain		-		(2)		(2)		-		-		-
Net periodic benefit (income) cost	$	(14)	$	6	$	(8)	$	-	$	1	$	1
Three Months Ended September 30, 2015
Components of net periodic benefit cost:
Service cost	$	41	$	10	$	51	$	1	$	-	$	1
Interest cost		54		6		60		2		1		3
Expected return on assets		(74)		(5)		(79)		-		-		-
Amortization of prior service credit		(6)		(1)		(7)		(3)		-		(3)
Amortization of net loss		21		2		23		-		-		-
Curtailment gain		(179)		-		(179)		-		-		-
Net periodic benefit (income) cost	$	(143)	$	12	$	(131)	$	-	$	1	$	1
Nine Months Ended September 30, 2016
Components of net periodic benefit cost:
Service cost	$	15	$	23	$	38	$	2	$	2	$	4
Interest cost		136		15		151		5		2		7
Expected return on assets		(219)		(20)		(239)		-		-		-
Amortization of prior service credit		-		-		-		(7)		-		(7)
Amortization of net (gain) loss		19		6		25		(1)		1		-
Curtailment gain		-		(5)		(5)		-		-		-
Net periodic benefit (income) cost	$	(49)	$	19	$	(30)	$	(1)	$	5	$	4
Nine Months Ended September 30, 2015
Components of net periodic benefit cost:
Service cost	$	144	$	31	$	175	$	4	$	2	$	6
Interest cost		164		18		182		6		2		8
Expected return on assets		(218)		(17)		(235)		-		-		-
Amortization of prior service credit		(22)		(2)		(24)		(8)		-		(8)
Amortization of net loss		86		7		93		-		-		-
Curtailment gain		(179)		(1)		(180)		-		-		-
Net periodic benefit (income) cost	$	(25)	$	36	$	11	$	2	$	4	$	6

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2016
INCOME TAXES
INCOME TAXES	14. INCOME TAXES Interim Tax Calculation Method We use the estimated annual effective tax rate method in computing our interim tax provision. Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions. Interim Tax Expense (Benefit) For the three-month period ended September 30, 2016, the effective tax rate on income from continuing operations was 41.2 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to foreign exchange losses incurred by our foreign subsidiary related to the weakening of the British pound following the Brexit vote taxed at a statutory tax rate lower than 35 percent, partially offset by tax benefits associated with tax exempt interest income and reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities. For the nine-month period ended September 30, 2016, the effective tax rate on income from continuing operations was 34.6 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits associated with tax exempt interest income, the impact of an agreement reached with the Internal Revenue Service (IRS) related to certain tax issues under audit and reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities, partially offset by a tax charge and related interest associated with increases in uncertain tax positions related to cross border financing transactions and foreign exchange losses incurred by our foreign subsidiary related to the weakening of the British pound following the Brexit vote taxed at a statutory tax rate lower than 35 percent. For the three-month period ended September 30, 2015, the effective tax rate on loss from continuing operations was not meaningful, due to a tax charge on a pre-tax loss. The tax charge was primarily due to increases in uncertain tax positions related to cross-border financing transactions, partially offset by tax benefits associated with tax-exempt interest income and the partial completion of the IRS examination covering tax year 2006. For the nine-month period ended September 30, 2015, the effective tax rate on income from continuing operations was 34.5 percent. The effective tax rate on income from continuing operations for the nine-month period ended September 30, 2015 differs from the statutory tax rate of 35 percent primarily due to tax benefits associated with tax-exempt interest income, reclassifications from accumulated other comprehensive income to income from continuing operations related to the deferred tax asset valuation allowance previously released to accumulated other comprehensive income, and the partial completion of the IRS examination covering tax year 2006, partially offset by tax charges associated with increases in uncertain tax positions related to cross-border financing transactions and increases in the deferred tax asset valuation allowances associated with certain foreign jurisdictions. The nine-month period ended September 30, 2015 includes an increase in the deferred tax asset valuation allowance primarily attributable to the effects of changes in the Japanese tax law enacted on March 31, 2015, partially offset by changes in projections of future taxable income. Assessment of Deferred Tax Asset Valuation Allowance The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. Our framework for assessing the recoverability of the deferred tax asset requires us to consider all available evidence, including: the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; the sustainability of recent operating profitability of our subsidiaries; the predictability of future operating profitability of the character necessary to realize the net deferred tax asset; the carryforward period for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset. In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operating loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though the carryforward period for the foreign tax credit is shorter than for the net operating loss. Our U.S. federal consolidated income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can be offset by the net operating loss carryforwards, only a portion (no more than 35 percent) of the U.S. taxable income of our life companies can be offset by those net operating loss carryforwards. The remaining tax liability of our life companies can be offset by the foreign tax credit carryforwards. Accordingly, we utilize both the net operating loss and foreign tax credit carryforwards concurrently which enables us to realize our tax attributes prior to expiration. As of September 30, 2016, based on all available evidence, it is more likely than not that the U.S. net operating loss and foreign tax credit carryforwards will be utilized prior to expiration and, thus, no valuation allowance has been established. Estimates of future taxable income, including income generated from prudent and feasible actions and tax planning strategies could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. For the three- and nine-month periods ended September 30, 2016, recent changes in market conditions, including falling interest rates, impacted the unrealized tax gains and losses in the U.S. Life Insurance Companies’ available for sale securities portfolio, resulting in an increase to the net deferred tax liability related to net unrealized tax capital gains. As of June 30, 2016, based on all available evidence, we concluded that the valuation allowance should be released. As a result, for the six-month period ended June 30, 2016, we released $1.2 billion of valuation allowance associated with the unrealized tax losses in the U.S. Life Insurance Companies’ available for sale securities portfolio, all of which was recognized in other comprehensive income. As of September 30, 2016, we continue to be in an overall unrealized tax gain position with respect to the U.S. Life Insurance Companies’ available for sale securities portfolio and thus concluded no valuation allowance is necessary in the U.S. Life Insurance Companies’ available for sale securities portfolio. During the three- and nine-month periods ended September 30, 2016, we recognized a net decrease of $2 million and $4 million, respectively, in our deferred tax asset valuation allowance associated with certain foreign jurisdictions, primarily attributable to changes in projections of taxable income. Tax Examinations and Litigation On August 1, 2012, we filed a motion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions in the Southern District of New York. On March 29, 2013, the Southern District of New York denied our motion. On March 17, 2014, the U.S. Court of Appeals for the Second Circuit (the Second Circuit) granted our petition for an immediate appeal of the partial summary judgment decision. On September 9, 2015, the Second Circuit affirmed the decision of the Southern District of New York. On October 13, 2015, we filed a petition for a writ of certiorari to the U.S Supreme Court. On March 7, 2016 the U.S. Supreme Court denied our petition for certiorari. As a result, the case will be remanded back to the Southern District of New York for a jury trial. We will vigorously defend our position and continue to believe that we have adequate reserves for any liability that could result from these government actions. We continue to monitor legal and other developments in this area, including recent decisions affecting other taxpayers, and evaluate their effect, if any, on our position. Accounting for Uncertainty in Income Taxes At September 30, 2016 and December 31, 2015, our unrecognized tax benefits, excluding interest and penalties, were $4.5 billion and $4.3 billion, respectively. The nine-month period ended September 30, 2016, reflects an increase in amounts associated with cross border financing transactions, partially offset by benefits realized due to an agreement reached with the IRS related to certain tax issues under audit. At both September 30, 2016 and December 31, 2015, our unrecognized tax benefits related to tax positions that, if recognized, would not affect the effective tax rate because they relate to such factors as the timing, rather the permissibility, of the deduction were $0.1 billion. Accordingly, at September 30, 2016 and December 31, 2015, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $4.4 billion and $4.2 billion, respectively. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At both September 30, 2016 and December 31, 2015, we had accrued liabilities of $1.2 billion for the payment of interest (net of the federal benefit) and penalties. For the nine-month periods ended September 30, 2016 and 2015, we accrued a benefit of $16 million and an expense of $133 million, respectively, for the payment of interest and penalties. The reduction in interest from December 31, 2015 is primarily related to benefits associated with an agreement reached with the IRS related to certain tax issues under audit, partially offset by an increase associated with cross border financing transactions. We regularly evaluate adjustments proposed by taxing authorities. At September 30, 2016, such proposed adjustments would not have resulted in a material change to our consolidated financial condition, although it is possible that the effect could be material to our consolidated results of operations for an individual reporting period. Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next 12 months, based on the information currently available, we do not expect any change to be material to our consolidated financial condition.

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

9 Months Ended

Sep. 30, 2016

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

15. INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

The following Condensed Consolidating Financial Statements reflect the results of AIGLH, a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH.

Condensed Consolidating Balance Sheets

		American
		International					Reclassifications
		Group, Inc.				Other		and	Consolidated
(in millions)	(As Guarantor)			AIGLH		Subsidiaries		Eliminations		AIG
September 30, 2016
Assets:
Short-term investments	$	2,906	$	-	$	12,161	$	(4,322)	$	10,745
Other investments^(a)		7,428		-		328,195		-		335,623
Total investments		10,334		-		340,356		(4,322)		346,368
Cash		217		6		2,275		-		2,498
Loans to subsidiaries^(b)		35,106		-		504		(35,610)		-
Investment in consolidated subsidiaries^(b)		55,878		31,307		-		(87,185)		-
Other assets, including deferred income taxes		24,721		136		138,004		(3,820)		159,041
Assets held for sale		-		-		6,661		-		6,661
Total assets	$	126,256	$	31,449	$	487,800	$	(130,937)	$	514,568
Liabilities:
Insurance liabilities	$	-	$	-	$	278,608	$	-	$	278,608
Long-term debt		22,185		641		9,451		-		32,277
Other liabilities, including intercompany balances^(a)		14,906		55		103,964		(8,316)		110,609
Loans from subsidiaries^(b)		502		-		35,108		(35,610)		-
Liabilities held for sale		-		-		3,909		-		3,909
Total liabilities		37,593		696		431,040		(43,926)		425,403
Total AIG shareholders’ equity		88,663		30,753		56,258		(87,011)		88,663
Non-redeemable noncontrolling interests		-		-		502		-		502
Total equity		88,663		30,753		56,760		(87,011)		89,165
Total liabilities and equity	$	126,256	$	31,449	$	487,800	$	(130,937)	$	514,568

December 31, 2015
Assets:
Short-term investments	$	4,042	$	-	$	9,637	$	(3,547)	$	10,132
Other investments^(a)		7,425		-		320,797		-		328,222
Total investments		11,467		-		330,434		(3,547)		338,354
Cash		34		116		1,479		-		1,629
Loans to subsidiaries^(b)		35,927		-		578		(36,505)		-
Investment in consolidated subsidiaries^(b)		51,151		30,239		-		(81,390)		-
Other assets, including deferred income taxes		23,299		258		135,690		(2,388)		156,859
Total assets	$	121,878	$	30,613	$	468,181	$	(123,830)	$	496,842
Liabilities:
Insurance liabilities	$	-	$	-	$	271,645	$	-	$	271,645
Long-term debt		19,777		704		8,768		-		29,249
Other liabilities, including intercompany balances^(a)		11,869		201		99,777		(6,109)		105,738
Loans from subsidiaries^(b)		574		3		35,928		(36,505)		-
Total liabilities		32,220		908		416,118		(42,614)		406,632
Total AIG shareholders’ equity		89,658		29,705		51,511		(81,216)		89,658
Non-redeemable noncontrolling interests		-		-		552		-		552
Total equity		89,658		29,705		52,063		(81,216)		90,210
Total liabilities and equity	$	121,878	$	30,613	$	468,181	$	(123,830)	$	496,842

(a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment.

(b) Eliminated in consolidation.

Condensed Consolidating Statements of Income


		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended September 30, 2016
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	1,002	$	528	$	-	$	(1,530)	$	-
Other income		145		-		12,952		(243)		12,854
Total revenues		1,147		528		12,952		(1,773)		12,854
Expenses:
Interest expense		249		12		69		(1)		329
Loss on extinguishment of debt		-		-		(14)		-		(14)
Other expenses		238		1		11,821		(258)		11,802
Total expenses		487		13		11,876		(259)		12,117
Income (loss) from continuing operations before income tax
expense (benefit)		660		515		1,076		(1,514)		737
Income tax expense (benefit)		197		(4)		111		-		304
Income (loss) from continuing operations		463		519		965		(1,514)		433
Income (loss) from discontinued operations, net of income taxes		(1)		-		4		-		3
Net income (loss)		462		519		969		(1,514)		436
Less:
Net loss from continuing operations attributable to
noncontrolling interests		-		-		(26)		-		(26)
Net income (loss) attributable to AIG	$	462	$	519	$	995	$	(1,514)	$	462
Three Months Ended September 30, 2015
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	717	$	222	$	-	$	(939)	$	-
Other income		(221)		-		13,220		(177)		12,822
Total revenues		496		222		13,220		(1,116)		12,822
Expenses:
Interest expense		254		14		83		(30)		321
Loss on extinguishment of debt		345		-		1		-		346
Other expenses		352		-		12,064		(146)		12,270
Total expenses		951		14		12,148		(176)		12,937
Income (loss) from continuing operations before income tax
expense (benefit)		(455)		208		1,072		(940)		(115)
Income tax expense (benefit)		(224)		(6)		295		-		65
Income (loss) from continuing operations		(231)		214		777		(940)		(180)
Loss from discontinued operations, net of income taxes		-		-		(17)		-		(17)
Net income (loss)		(231)		214		760		(940)		(197)
Less:
Net income from continuing operations attributable to
noncontrolling interests		-		-		34		-		34
Net income (loss) attributable to AIG	$	(231)	$	214	$	726	$	(940)	$	(231)


		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Nine Months Ended September 30, 2016
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	2,226	$	(267)	$	-	$	(1,959)	$	-
Other income		209		5		39,833		(690)		39,357
Total revenues		2,435		(262)		39,833		(2,649)		39,357
Expenses:
Interest expense		743		39		177		(4)		955
Loss on extinguishment of debt		77		-		(1)		-		76
Other expenses		686		15		34,946		(702)		34,945
Total expenses		1,506		54		35,122		(706)		35,976
Income (loss) from continuing operations before income tax
expense (benefit)		929		(316)		4,711		(1,943)		3,381
Income tax expense (benefit)		(1,265)		(17)		2,452		-		1,170
Income (loss) from continuing operations		2,194		(299)		2,259		(1,943)		2,211
Loss from discontinued operations, net of income taxes		(2)		-		(52)		-		(54)
Net income (loss)		2,192		(299)		2,207		(1,943)		2,157
Less:
Net loss from continuing operations attributable to
noncontrolling interests		-		-		(35)		-		(35)
Net income (loss) attributable to AIG	$	2,192	$	(299)	$	2,242	$	(1,943)	$	2,192
Nine Months Ended September 30, 2015
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	5,793	$	1,744	$	-	$	(7,537)	$	-
Other income		(57)		-		45,050		(497)		44,496
Total revenues		5,736		1,744		45,050		(8,034)		44,496
Expenses:
Interest expense		810		44		213		(90)		977
Loss on extinguishment of debt		703		-		46		7		756
Other expenses		899		42		36,016		(407)		36,550
Total expenses		2,412		86		36,275		(490)		38,283
Income (loss) from continuing operations before income tax
expense (benefit)		3,324		1,658		8,775		(7,544)		6,213
Income tax expense (benefit)		(714)		(69)		2,925		-		2,142
Income (loss) from continuing operations		4,038		1,727		5,850		(7,544)		4,071
Income (loss) from discontinued operations, net of income taxes		(1)		-		1		-		-
Net income (loss)		4,037		1,727		5,851		(7,544)		4,071
Less:
Net income from continuing operations attributable to
noncontrolling interests		-		-		34		-		34
Net income (loss) attributable to AIG	$	4,037	$	1,727	$	5,817	$	(7,544)	$	4,037

* Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended September 30, 2016
Net income (loss)	$	462	$	519	$	969	$	(1,514)	$	436
Other comprehensive income (loss)		798		(56)		7		49		798
Comprehensive income (loss)		1,260		463		976		(1,465)		1,234
Total comprehensive loss attributable to noncontrolling interests		-		-		(26)		-		(26)
Comprehensive income (loss) attributable to AIG	$	1,260	$	463	$	1,002	$	(1,465)	$	1,260
Three Months Ended September 30, 2015
Net income (loss)	$	(231)	$	214	$	760	$	(940)	$	(197)
Other comprehensive income (loss)		(1,063)		(548)		187		360		(1,064)
Comprehensive income (loss)		(1,294)		(334)		947		(580)		(1,261)
Total comprehensive income attributable to noncontrolling interests		-		-		33		-		33
Comprehensive income (loss) attributable to AIG	$	(1,294)	$	(334)	$	914	$	(580)	$	(1,294)
Nine Months Ended September 30, 2016
Net income (loss)	$	2,192	$	(299)	$	2,207	$	(1,943)	$	2,157
Other comprehensive income (loss)		6,520		7,204		48,555		(55,759)		6,520
Comprehensive income (loss)		8,712		6,905		50,762		(57,702)		8,677
Total comprehensive loss attributable to noncontrolling interests		-		-		(35)		-		(35)
Comprehensive income (loss) attributable to AIG	$	8,712	$	6,905	$	50,797	$	(57,702)	$	8,712
Nine Months Ended September 30, 2015
Net income (loss)	$	4,037	$	1,727	$	5,851	$	(7,544)	$	4,071
Other comprehensive income (loss)		(4,060)		3,942		52,820		(56,766)		(4,064)
Comprehensive income (loss)		(23)		5,669		58,671		(64,310)		7
Total comprehensive income attributable to noncontrolling interests		-		-		30		-		30
Comprehensive income (loss) attributable to AIG	$	(23)	$	5,669	$	58,641	$	(64,310)	$	(23)

Condensed Consolidating Statements of Cash Flows

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries^*		Eliminations^*		AIG
Nine Months Ended September 30, 2016
Net cash (used in) provided by operating activities	$	1,671	$	1,664	$	2,277	$	(3,859)	$	1,753
Cash flows from investing activities:
Sales of investments		3,242		-		59,669		(9,567)		53,344
Purchase of investments		(659)		-		(62,293)		9,567		(53,385)
Loans to subsidiaries - net		1,025		-		73		(1,098)		-
Contributions from (to) subsidiaries - net		1,593		-		-		(1,593)		-
Net change in restricted cash		-		-		(49)		-		(49)
Net change in short-term investments		1,006		-		(1,861)		-		(855)
Other, net		(179)		-		1,449		-		1,270
Net cash (used in) provided by investing activities		6,028		-		(3,012)		(2,691)		325
Cash flows from financing activities:
Issuance of long-term debt		3,831		-		7,599		-		11,430
Repayments of long-term debt		(1,454)		(62)		(6,167)		-		(7,683)
Purchase of common stock		(8,506)		-		-		-		(8,506)
Intercompany loans - net		(73)		(3)		(1,022)		1,098		-
Cash dividends paid		(1,051)		(1,709)		(2,150)		3,859		(1,051)
Other, net		(263)		-		3,183		1,593		4,513
Net cash (used in) provided by financing activities		(7,516)		(1,774)		1,443		6,550		(1,297)
Effect of exchange rate changes on cash		-		-		88		-		88
Change in cash		183		(110)		796		-		869
Cash at beginning of year		34		116		1,479		-		1,629
Cash at end of period	$	217	$	6	$	2,275	$	-	$	2,498

Nine Months Ended September 30, 2015
Net cash (used in) provided by operating activities	$	3,675	$	1,386	$	508	$	(3,335)	$	2,234
Cash flows from investing activities:
Sales of investments		5,610		-		52,234		(3,363)		54,481
Purchase of investments		(1,373)		-		(49,465)		3,363		(47,475)
Loans to subsidiaries - net		(1,227)		-		2,690		(1,463)		-
Contributions from (to) subsidiaries - net		-		-		-		-		-
Net change in restricted cash		-		-		1,476		-		1,476
Net change in short-term investments		1,940		-		(2,968)		-		(1,028)
Other, net		(4)		-		(770)		-		(774)
Net cash (used in) provided by investing activities		4,946		-		3,197		(1,463)		6,680

Cash flows from financing activities:
Issuance of long-term debt		5,540		-		909		-		6,449
Repayments of long-term debt		(5,728)		(115)		(2,500)		-		(8,343)
Purchase of common stock		(7,473)		-		-		-		(7,473)
Intercompany loans - net		(236)		-		(1,227)		1,463		-
Cash dividends paid		(687)		(1,359)		(1,976)		3,335		(687)
Other, net		(43)		-		1,033		-		990
Net cash (used in) provided by financing activities		(8,627)		(1,474)		(3,761)		4,798		(9,064)
Effect of exchange rate changes on cash		-		-		(39)		-		(39)
Change in cash		(6)		(88)		(95)		-		(189)
Cash at beginning of year		26		91		1,641		-		1,758
Cash at end of period	$	20	$	3	$	1,546	$	-	$	1,569

Supplementary Disclosure of Condensed Consolidating Cash Flow Information

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries^*		Eliminations^*		AIG
Cash (paid) received during the 2016 period for:
Interest:
Third party	$	(797)	$	(51)	$	(161)	$	-	$	(1,009)
Intercompany		-		-		-		-		-
Taxes:
Income tax authorities	$	(11)	$	-	$	(197)	$	-	$	(208)
Intercompany		782		-		(782)		-		-
Cash (paid) received during the 2015 period for:
Interest:
Third party	$	(846)	$	(57)	$	(209)	$	-	$	(1,112)
Intercompany		-		-		-		-		-
Taxes:
Income tax authorities	$	(17)	$	-	$	(389)	$	-	$	(406)
Intercompany		1,769		-		(1,769)		-		-

American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities:

Nine Months Ended September 30,
(in millions)		2016		2015
Intercompany non-cash financing and investing activities:
Capital contributions	$	3,086	$	111
Dividends received in the form of securities		4,055		1,997
Fixed maturity securities received in exchange for equity securities		440		-
Non-cash financing/investing activities:
Consideration received from sale of shares of AerCap		-		500

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2016
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	16. SUBSEQUENT EVENTS Dividends Declared and Increase in Share Repurchase Authorization On November 2, 2016, our Board of Directors declared a cash dividend on AIG Common Stock of $0.32 per share, payable on December 22, 2016 to shareholders of record on December 8, 2016. On November 2, 2016, our Board of Directors authorized an additional increase to its previous repurchase authorization of AIG Common Stock of $3.0 billion, resulting in an aggregate remaining authorization on such date of approximately $4.4 billion. Sales of Businesses On October 18, 2016, we entered into agreements to sell certain insurance operations to Fairfax Financial Holdings Limited (Fairfax). The agreements include the sale of our subsidiary operations in Argentina, Chile, Colombia, Uruguay and Venezuela, as well as insurance operations in Turkey. Fairfax will also acquire renewal rights for the portfolios of local business written by our operations in Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia, and assume certain of our operating assets and employees. Total cash consideration to us is expected to be approximately $240 million. The transactions are subject to obtaining the relevant regulatory approvals and other customary closing conditions.

BASIS OF PRESENTATION (Policies)	9 Months Ended
BASIS OF PRESENTATION (Policies)	Sep. 30, 2016
BASIS OF PRESENTATION
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset; liability for unpaid losses and loss adjustment expenses; reinsurance assets; valuation of future policy benefit liabilities and timing and extent of loss recognition; valuation of liabilities for guaranteed benefit features of variable annuity products; estimated gross profits to value deferred acquisition costs for investment-oriented products; impairment charges, including other-than-temporary impairments on available for sale securities, impairments on other invested assets, including investments in life settlements, and goodwill impairment; liability for legal contingencies; and fair value measurements of certain financial assets and liabilities. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Held-for-Sale Classification	Held-For-Sale Classification We report a business as held-for-sale when management has approved the sale or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Assets and liabilities related to the businesses classified as held for sale are separately reported in our Condensed Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale.
Future Application of Accounting Standards	Future Application of Accounting Standards Revenue Recognition In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other activities. The standard is effective for interim and annual reporting periods beginning after December 15, 2017 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We plan to adopt the standard on its required effective date of January 1, 2018 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. Short Duration Insurance Contracts In May 2015, the FASB issued an accounting standard that requires additional disclosures (including accident year information) for short-duration insurance contracts. New disclosures about the liability for unpaid losses and loss adjustment expenses will be required. The annual disclosures by accident year include: disaggregated net incurred and paid claims development tables segregated by business type (not required to exceed 10 years), reconciliation of total net reserves included in development tables to the reported liability for unpaid losses and loss adjustment expenses, incurred but not reported (IBNR) information, quantitative information and a qualitative description about claim frequency, and the average annual percentage payout of incurred claims. Further, the new standard requires, when applicable, disclosures about discounting liabilities for unpaid losses and loss adjustment expenses and significant changes and reasons for changes in methodologies and assumptions used to determine unpaid losses and loss adjustment expenses. The standard is effective for annual reporting periods beginning after December 15, 2015 including interim reporting periods thereafter and must be applied retrospectively. While early adoption is permitted, we plan to adopt the standard on its required effective date. The standard requires additional disclosures only and the adoption of the standard will have no effect on our consolidated financial condition, results of operations or cash flows. In addition, the roll forward of the liability for unpaid losses and loss adjustment expenses currently disclosed in annual financial statements will be required for interim periods beginning in the first quarter of 2017. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued an accounting standard that affects the recognition, measurement, presentation, and disclosure of financial instruments. Specifically, under the new standard, equity investments (other than those accounted for using the equity method of accounting or those subject to consolidation) will be measured at fair value with changes in fair value recognized in earnings. Also, for those financial liabilities for which fair value option accounting has been elected, the new standard requires changes in fair value due to instrument-specific credit risk to be presented separately in other comprehensive income. The standard updates certain fair value disclosure requirements for financial instruments carried at amortized cost. The standard is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption of certain provisions is permitted. We are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. Leases In February 2016, the FASB issued an accounting standard that will require lessees with lease terms of more than 12 months to recognize a right of use asset and a corresponding lease liability on their balance sheets. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted using a modified retrospective approach. We are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. Derivative Contract Novations In March 2016, the FASB issued an accounting standard that clarifies that a change in the counterparty (novation) to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. Contingent Put and Call Options in Debt Instruments In March 2016, the FASB issued an accounting standard that clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The standard requires an evaluation of embedded call (put) options solely on a four-step decision sequence that requires an entity to consider whether (1) the amount paid upon settlement is adjusted based on changes in an index, (2) the amount paid upon settlement is indexed to an underlying other than interest rates or credit risk, (3) the debt involves a substantial premium or discount and (4) the put or call option is contingently exercisable. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued an accounting standard that eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods during which the investment had been held. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued a standard that simplifies several aspects of the accounting for share-based compensation, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. Calculation of Credit Losses In June 2016, the FASB issued an accounting standard that will change how entities account for credit losses for most financial assets. The standard will replace the existing incurred loss impairment model with a new “current expected credit loss model” and will apply to financial assets subject to credit losses, those measured at amortized cost and certain off-balance sheet credit exposures. The impairment for available-for-sale debt securities will be measured in a similar manner, except that losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard will also require additional information to be disclosed in the footnotes. The standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for annual and interim periods after December 15, 2018. We are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. Classification of Certain Cash Receipts and Cash Payments in the Statement of Cash Flows In August 2016, the FASB issued an accounting standard that provides guidance on the classification in the Statement of Cash Flows for the following eight specific cash flow issues: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The standard is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted including interim periods with adjustments reflected as of the beginning of the fiscal year that includes that interim period. Early adoption must include all amendments in the same period. We are assessing the impact of the standard on our consolidated cash flows.
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounting Standards Adopted	Accounting Standards Adopted During 2016 Accounting for Share-Based Payments with Performance Targets In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. We adopted the standard prospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity In August 2014, the FASB issued an accounting standard that allows a reporting entity to measure the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity using the fair value of either its financial assets or financial liabilities, whichever is more observable. We adopted the standard retrospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Consolidation: Amendments to the Consolidation Analysis In February 2015, the FASB issued an accounting standard that affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. We adopted the standard prospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued an accounting standard that provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change generally accepted accounting principles applicable to a customer's accounting for service contracts. Consequently, all software licenses will be accounted for consistent with other licenses of intangible assets. We adopted this standard prospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued an accounting standard that amends the guidance for debt issuance costs by requiring such costs to be presented as a deduction to the corresponding debt liability, rather than as an asset, and for the amortization of such costs to be reported as interest expense. The amendments are intended to simplify the presentation of debt issuance costs and make it consistent with the presentation of debt discounts or premiums. The amendments, however, do not change the recognition and measurement guidance applicable to debt issuance costs. We adopted this standard on a retrospective basis on January 1, 2016, its required effective date. Because the new standard did not affect accounting recognition or measurement of debt issuance costs, the adoption of the standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent) In May 2015, the FASB amended guidance on fair value disclosures for investments for which fair value is measured using the net asset value (NAV) per share (or its equivalent) as a practical expedient. The amendments in this update remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. In addition, the amendment removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share as a practical expedient. We adopted the standard on its required effective date of January 1, 2016 on a retrospective basis. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows.

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2016

SEGMENT INFORMATION

Schedule of continuing operations by reportable segment

	2016				2015
				Pre-Tax				Pre-Tax
Three Months Ended September 30,		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues	Income (Loss)
Commercial Insurance	$	5,460	$	729	$	5,750	$	592
Consumer Insurance
Retirement		2,084		1,108		2,203		635
Life		1,662		98		1,578		(40)
Personal Insurance		2,982		178		2,871		62
Total Consumer Insurance		6,728		1,384		6,652		657
Corporate and Other^*		1,557		(522)		911		(396)
AIG consolidation and elimination		(149)		21		(134)		(5)
Total AIG consolidated operating revenues and pre-tax operating income		13,596		1,612		13,179		848
Reconciling items from Total revenues and Pre-tax operating income
(loss) to revenues and pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed
living benefits		17		17		4		4
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		(67)		-		(2)
Other income - net		-		3		-		-
Loss on extinguishment of debt		-		14		-		(346)
Net realized capital gains		(765)		(765)		(342)		(342)
Income (loss) from divested businesses		-		128		-		(3)
Non-operating litigation reserves and settlements		1		5		-		30
Reserve development related to non-operating run-off insurance business		-		-		-		(30)
Restructuring and other costs		-		(210)		-		(274)
Other		5		-		(19)		-
Revenues and pre-tax income (loss)	$	12,854	$	737	$	12,822	$	(115)

	2016				2015
				Pre-Tax				Pre-Tax
Nine Months Ended September 30,		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues	Income (Loss)
Commercial Insurance	$	16,376	$	2,306	$	17,993	$	2,990
Consumer Insurance
Retirement		6,407		2,310		7,056		2,239
Life		4,949		387		4,823		280
Personal Insurance		8,718		579		8,602		106
Total Consumer Insurance		20,074		3,276		20,481		2,625
Corporate and Other^*		3,959		(1,411)		5,338		697
AIG consolidation and elimination		(507)		15		(408)		(69)
Total AIG consolidated operating revenues and pre-tax operating income		39,902		4,186		43,404		6,243
Reconciling items from Total revenues and Pre-tax operating income
(loss) to revenues and pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed
living benefits		270		270		(39)		(39)
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		(91)		-		(84)
Other income - net		-		15		-		-
Loss on extinguishment of debt		-		(76)		-		(756)
Net realized capital gains (losses)		(829)		(829)		1,125		1,125
Income (loss) from divested businesses		-		351		(48)		(58)
Non-operating litigation reserves and settlements		42		43		91		86
Reserve development related to non-operating run-off insurance business		-		-		-		(30)
Restructuring and other costs		-		(488)		-		(274)
Other		(28)		-		(37)		-
Revenues and pre-tax income	$	39,357	$	3,381	$	44,496	$	6,213

* Corporate and Other includes income from assets held by AIG Parent and other corporate subsidiaries and results from United Guaranty and Institutional Markets.

HELD-FOR-SALE CLASSIFICATION (Tables)

9 Months Ended

Sep. 30, 2016

HELD-FOR-SALE CLASSIFICATION

Summary of assets and liabilities held for sale

The following table summarizes the components of assets and liabilities held-for-sale on the Condensed Consolidated Balance Sheets at September 30, 2016:

		September 30,
(in millions)		2016
Assets:
Fixed maturity securities	$	4,233
Mortgage and other loans receivable, net		1
Other invested assets		1,006
Short-term investments		212
Cash		80
Premiums and other receivables, net of allowance		357
Deferred policy acquisition costs		179
Other assets		593
Total assets held for sale	$	6,661
Liabilities:
Liability for unpaid losses and loss adjustment expenses	$	1,074
Unearned premiums		1,164
Long-term debt		1,160
Other liabilities		511
Total liabilities held for sale	$	3,909

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=64862545&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=64862545&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2016

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

September 30, 2016							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(b)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	1	$	2,222	$	-	$	-	$	-	$	2,223
Obligations of states, municipalities and political subdivisions		-		24,287		2,291		-		-		26,578
Non-U.S. governments		179		20,508		19		-		-		20,706
Corporate debt		-		140,187		1,017		-		-		141,204
RMBS		-		20,606		17,209		-		-		37,815
CMBS		-		12,808		2,265		-		-		15,073
CDO/ABS		-		9,305		7,745		-		-		17,050
Total bonds available for sale		180		229,923		30,546		-		-		260,649
Other bond securities:
U.S. government and government sponsored entities		140		3,207		-		-		-		3,347
Obligations of states, municipalities and political subdivisions		-		-		-		-		-		-
Non-U.S. governments		-		54		-		-		-		54
Corporate debt		-		1,955		19		-		-		1,974
RMBS		-		451		1,396		-		-		1,847
CMBS		-		451		159		-		-		610
CDO/ABS		-		959		5,981		-		-		6,940
Total other bond securities		140		7,077		7,555		-		-		14,772
Equity securities available for sale:
Common stock		1,230		2		-		-		-		1,232
Preferred stock		18		-		-		-		-		18
Mutual funds		291		3		-		-		-		294
Total equity securities available for sale		1,539		5		-		-		-		1,544
Other equity securities		498		-		-		-		-		498
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		-		1		256		-		-		257
Derivative assets:
Interest rate contracts		-		4,289		-		-		-		4,289
Foreign exchange contracts		-		1,144		1		-		-		1,145
Equity contracts		118		150		54		-		-		322
Credit contracts		-		-		2		-		-		2
Other contracts		-		-		22		-		-		22
Counterparty netting and cash collateral		-		-		-		(2,289)		(1,358)		(3,647)
Total derivative assets		118		5,583		79		(2,289)		(1,358)		2,133
Short-term investments		1,936		788		-		-		-		2,724
Separate account assets		77,016		5,610		-		-		-		82,626
Total	$	81,427	$	248,987	$	38,447	$	(2,289)	$	(1,358)	$	365,214

Liabilities:
Policyholder contract deposits	$	-	$	27	$	4,022	$	-	$	-	$	4,049
Other policyholder funds		6		-		-		-		-		6
Derivative liabilities:
Interest rate contracts		-		3,667		52		-		-		3,719
Foreign exchange contracts		-		1,400		10		-		-		1,410
Equity contracts		-		2		-		-		-		2
Credit contracts		-		-		347		-		-		347
Other contracts		-		-		112		-		-		112
Counterparty netting and cash collateral		-		-		-		(2,289)		(482)		(2,771)
Total derivative liabilities		-		5,069		521		(2,289)		(482)		2,819
Long-term debt		-		3,594		70		-		-		3,664
Other liabilities		75		-		-		-		-		75
Total	$	81	$	8,690	$	4,613	$	(2,289)	$	(482)	$	10,613

December 31, 2015							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(b)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	-	$	1,844	$	-	$	-	$	-	$	1,844
Obligations of states, municipalities and political subdivisions		-		25,199		2,124		-		-		27,323
Non-U.S. governments		683		17,480		32		-		-		18,195
Corporate debt		-		134,618		1,370		-		-		135,988
RMBS		-		19,690		16,537		-		-		36,227
CMBS		-		10,986		2,585		-		-		13,571
CDO/ABS		-		8,928		6,169		-		-		15,097
Total bonds available for sale		683		218,745		28,817		-		-		248,245
Other bond securities:
U.S. government and government sponsored entities		-		3,369		-		-		-		3,369
Obligations of states, municipalities and political subdivisions		-		75		-		-		-		75
Non-U.S. governments		-		50		-		-		-		50
Corporate debt		-		2,018		17		-		-		2,035
RMBS		-		649		1,581		-		-		2,230
CMBS		-		557		193		-		-		750
CDO/ABS		-		1,218		7,055		-		-		8,273
Total other bond securities		-		7,936		8,846		-		-		16,782
Equity securities available for sale:
Common stock		2,401		-		-		-		-		2,401
Preferred stock		22		-		-		-		-		22
Mutual funds		491		1		-		-		-		492
Total equity securities available for sale		2,914		1		-		-		-		2,915
Other equity securities		906		1		14		-		-		921
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		2		1		332		-		-		335

Derivative assets:
Interest rate contracts		-		3,150		12		-		-		3,162
Foreign exchange contracts		-		766		-		-		-		766
Equity contracts		91		32		54		-		-		177
Credit contracts		-		-		3		-		-		3
Other contracts		-		2		21		-		-		23
Counterparty netting and cash collateral		-		-		-		(1,268)		(1,554)		(2,822)
Total derivative assets		91		3,950		90		(1,268)		(1,554)		1,309
Short-term investments		1,416		1,175		-		-		-		2,591
Separate account assets		73,699		5,875		-		-		-		79,574
Total	$	79,711	$	237,684	$	38,110	$	(1,268)	$	(1,554)	$	352,683
Liabilities:
Policyholder contract deposits	$	-	$	36	$	2,289	$	-	$	-	$	2,325
Other policyholder funds		6		-		-		-		-		6
Derivative liabilities:
Interest rate contracts		-		2,137		62		-		-		2,199
Foreign exchange contracts		-		1,197		7		-		-		1,204
Equity contracts		-		68		-		-		-		68
Credit contracts		-		-		508		-		-		508
Other contracts		-		-		69		-		-		69
Counterparty netting and cash collateral		-		-		-		(1,268)		(760)		(2,028)
Total derivative liabilities		-		3,402		646		(1,268)		(760)		2,020
Long-term debt		-		3,487		183		-		-		3,670
Other liabilities		-		62		-		-		-		62
Total	$	6	$	6,987	$	3,118	$	(1,268)	$	(760)	$	8,083

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

Changes in Level 3 recurring fair value measurements (Assets)

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross		to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Three Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,313	$	1	$	(5)	$	58	$	2	$	(78)	$	-	$	2,291	$	-
Non-U.S. governments		28		(3)		(9)		3		-		-		-		19		-
Corporate debt		836		(4)		7		(6)		267		(82)		(1)		1,017		-
RMBS		16,779		255		304		(165)		36		-		-		17,209		-
CMBS		2,295		12		(5)		(1)		2		(32)		(6)		2,265		-
CDO/ABS		7,075		7		16		728		-		-		(81)		7,745		-
Total bonds available for sale		29,326		268		308		617		307		(192)		(88)		30,546		-
Other bond securities:
Corporate debt		18		1		-		-		-		-		-		19		-
RMBS		1,486		30		-		(120)		-		-		-		1,396		12
CMBS		168		6		-		(15)		-		-		-		159		4
CDO/ABS		6,312		175		-		(506)		-		-		-		5,981		-
Total other bond securities		7,984		212		-		(641)		-		-		-		7,555		16
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		11		-
Other invested assets		241		(4)		1		18		-		-		-		256		-
Total	$	37,576	$	476	$	309	$	(20)	$	307	$	(192)	$	(88)	$	38,368	$	16

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross		to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,990	$	65	$	-	$	(33)	$	-	$	-	$	-	$	4,022	$	1
Derivative liabilities, net:
Interest rate contracts		46		(3)		-		9		-		-		-		52		4
Foreign exchange contracts		9		1		-		(1)		-		-		-		9		(1)
Equity contracts		(52)		(5)		-		3		-		-		-		(54)		5
Commodity contracts		-		-		-		-		-		-		-		-		-
Credit contracts		373		(36)		-		7		-		1		-		345		28
Other contracts		102		(16)		-		4		-		-		-		90		33
Total derivative liabilities, net^(a)		478		(59)		-		22		-		1		-		442		69
Long-term debt^(b)		67		3		-		-		-		-		-		70		(3)
Total	$	4,535	$	9	$	-	$	(11)	$	-	$	1	$	-	$	4,534	$	67

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross		to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period^(a)		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Nine Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,124	$	3	$	189	$	51	$	2	$	(78)	$	-	$	2,291	$	-
Non-U.S. governments		32		(3)		(11)		5		-		(4)		-		19		-
Corporate debt		1,370		(1)		(10)		(42)		581		(880)		(1)		1,017		-
RMBS		16,537		734		(55)		(337)		330		-		-		17,209		-
CMBS		2,585		70		(83)		(169)		2		(134)		(6)		2,265		-
CDO/ABS		6,169		27		59		1,548		23		-		(81)		7,745		-
Total bonds available for sale		28,817		830		89		1,056		938		(1,096)		(88)		30,546		-
Other bond securities:
Corporate debt		17		3		-		(1)		-		-		-		19		3
RMBS		1,581		7		-		(174)		-		(18)		-		1,396		(48)
CMBS		193		4		-		(38)		-		-		-		159		14
CDO/ABS		7,055		151		-		(1,225)		65		(65)		-		5,981		(378)
Total other bond securities		8,846		165		-		(1,438)		65		(83)		-		7,555		(409)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		11		-
Other invested assets		332		(5)		2		(19)		-		(54)		-		256		(2)
Total	$	38,020	$	990	$	91	$	(415)	$	1,003	$	(1,233)	$	(88)	$	38,368	$	(411)

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross		to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period^(a)		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	2,289	$	1,508	$	-	$	225	$	-	$	-	$	-	$	4,022	$	38
Derivative liabilities, net:
Interest rate contracts		50		4		-		(2)		-		-		-		52		(5)
Foreign exchange contracts		7		3		-		(1)		-		-		-		9		(2)
Equity contracts		(54)		(5)		-		5		-		-		-		(54)		5
Commodity contracts		-		-		-		-		-		-		-		-		-
Credit contracts		505		(70)		-		(91)		-		1		-		345		56
Other contracts		48		14		-		28		-		-		-		90		3
Total derivative liabilities, net^(a)		556		(54)		-		(61)		-		1		-		442		57
Long-term debt^(b)		183		3		-		(3)		-		(113)		-		70		-
Total	$	3,028	$	1,457	$	-	$	161	$	-	$	(112)	$	-	$	4,534	$	95

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Three Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,180	$	(1)	$	(15)	$	16	$	-	$	(40)	$	2,140	$	-
Non-U.S. governments		33		-		(1)		(1)		-		-		31		-
Corporate debt		2,118		5		2		(63)		987		(573)		2,476		-
RMBS		17,097		265		(151)		(352)		-		-		16,859		-
CMBS		2,677		17		(15)		50		-		-		2,729		-
CDO/ABS		6,071		8		57		(21)		6		(13)		6,108		-
Total bonds available for sale		30,176		294		(123)		(371)		993		(626)		30,343		-
Other bond securities:
Corporate debt		16		-		-		-		-		-		16		-
RMBS		1,337		(4)		-		169		-		(1)		1,501		(3)
CMBS		223		(1)		-		(8)		5		-		219		(1)
CDO/ABS		7,426		85		-		(415)		51		-		7,147		23
Total other bond securities		9,002		80		-		(254)		56		(1)		8,883		19
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		22		-		-		-		-		-		22		-
Mortgage and other loans receivable		6		-		-		5		-		-		11		-
Other invested assets		437		(15)		(21)		(18)		-		-		383		-
Total	$	39,643	$	359	$	(144)	$	(638)	$	1,049	$	(627)	$	39,642	$	19

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	1,232	$	871	$	-	$	146	$	-	$	-	$	2,249	$	32
Derivative liabilities, net:
Interest rate contracts		62		3		-		(7)		-		-		58		(4)
Foreign exchange contracts		7		1		-		(1)		-		-		7		(2)
Equity contracts		(63)		21		-		3		-		-		(39)		(21)
Credit contracts		551		(11)		-		(12)		-		-		528		23
Other contracts		16		12		-		23		-		-		51		(13)
Total derivatives liabilities, net^(a)		573		26		-		6		-		-		605		(17)
Long-term debt^(b)		193		(3)		-		-		-		-		190		-
Total	$	1,998	$	894	$	-	$	152	$	-	$	-	$	3,044	$	15

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Nine Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions^(c)	$	2,159	$	-	$	(94)	$	174	$	-	$	(99)	$	2,140	$	-
Non-U.S. governments		30		-		(2)		3		-		-		31		-
Corporate debt		1,883		19		(31)		(209)		1,443		(629)		2,476		-
RMBS		16,805		804		(322)		(428)		-		-		16,859		-
CMBS		2,696		63		(45)		97		-		(82)		2,729		-
CDO/ABS		6,110		138		(110)		98		6		(134)		6,108		-
Total bonds available for sale		29,683		1,024		(604)		(265)		1,449		(944)		30,343		-
Other bond securities:
Corporate debt		-		-		-		-		16		-		16		-
RMBS		1,105		22		-		389		44		(59)		1,501		(21)
CMBS		369		7		-		(162)		5		-		219		(3)
CDO/ABS		7,449		482		-		(1,341)		632		(75)		7,147		(55)
Total other bond securities		8,923		511		-		(1,114)		697		(134)		8,883		(79)
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		-		-		-		-		22		-		22		(2)
Mortgage and other loans receivable		6		-		-		5		-		-		11		-
Other invested assets		1,042		457		(509)		(607)		-		-		383		-
Total	$	39,655	$	1,994	$	(1,113)	$	(1,984)	$	2,168	$	(1,078)	$	39,642	$	(81)

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	1,509	$	410	$	-	$	330	$	-	$	-	$	2,249	$	72
Derivative liabilities, net:
Interest rate contracts		74		3		-		(19)		-		-		58		(4)
Foreign exchange contracts		8		(2)		-		1		-		-		7		1
Equity contracts		(47)		15		-		(7)		-		-		(39)		(19)
Credit contracts		978		(171)		-		(279)		-		-		528		73
Other contracts		59		(61)		-		53		-		-		51		53
Total derivatives liabilities, net^(a)		1,072		(216)		-		(251)		-		-		605		104
Long-term debt^(b)		213		(5)		-		(18)		-		-		190		13
Total	$	2,794	$	189	$	-	$	61	$	-	$	-	$	3,044	$	189

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

(b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable.

Changes in Level 3 recurring fair value measurements (Liabilities)

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross		to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Three Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,313	$	1	$	(5)	$	58	$	2	$	(78)	$	-	$	2,291	$	-
Non-U.S. governments		28		(3)		(9)		3		-		-		-		19		-
Corporate debt		836		(4)		7		(6)		267		(82)		(1)		1,017		-
RMBS		16,779		255		304		(165)		36		-		-		17,209		-
CMBS		2,295		12		(5)		(1)		2		(32)		(6)		2,265		-
CDO/ABS		7,075		7		16		728		-		-		(81)		7,745		-
Total bonds available for sale		29,326		268		308		617		307		(192)		(88)		30,546		-
Other bond securities:
Corporate debt		18		1		-		-		-		-		-		19		-
RMBS		1,486		30		-		(120)		-		-		-		1,396		12
CMBS		168		6		-		(15)		-		-		-		159		4
CDO/ABS		6,312		175		-		(506)		-		-		-		5,981		-
Total other bond securities		7,984		212		-		(641)		-		-		-		7,555		16
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		11		-
Other invested assets		241		(4)		1		18		-		-		-		256		-
Total	$	37,576	$	476	$	309	$	(20)	$	307	$	(192)	$	(88)	$	38,368	$	16

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross		to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,990	$	65	$	-	$	(33)	$	-	$	-	$	-	$	4,022	$	1
Derivative liabilities, net:
Interest rate contracts		46		(3)		-		9		-		-		-		52		4
Foreign exchange contracts		9		1		-		(1)		-		-		-		9		(1)
Equity contracts		(52)		(5)		-		3		-		-		-		(54)		5
Commodity contracts		-		-		-		-		-		-		-		-		-
Credit contracts		373		(36)		-		7		-		1		-		345		28
Other contracts		102		(16)		-		4		-		-		-		90		33
Total derivative liabilities, net^(a)		478		(59)		-		22		-		1		-		442		69
Long-term debt^(b)		67		3		-		-		-		-		-		70		(3)
Total	$	4,535	$	9	$	-	$	(11)	$	-	$	1	$	-	$	4,534	$	67

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross		to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period^(a)		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Nine Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,124	$	3	$	189	$	51	$	2	$	(78)	$	-	$	2,291	$	-
Non-U.S. governments		32		(3)		(11)		5		-		(4)		-		19		-
Corporate debt		1,370		(1)		(10)		(42)		581		(880)		(1)		1,017		-
RMBS		16,537		734		(55)		(337)		330		-		-		17,209		-
CMBS		2,585		70		(83)		(169)		2		(134)		(6)		2,265		-
CDO/ABS		6,169		27		59		1,548		23		-		(81)		7,745		-
Total bonds available for sale		28,817		830		89		1,056		938		(1,096)		(88)		30,546		-
Other bond securities:
Corporate debt		17		3		-		(1)		-		-		-		19		3
RMBS		1,581		7		-		(174)		-		(18)		-		1,396		(48)
CMBS		193		4		-		(38)		-		-		-		159		14
CDO/ABS		7,055		151		-		(1,225)		65		(65)		-		5,981		(378)
Total other bond securities		8,846		165		-		(1,438)		65		(83)		-		7,555		(409)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		11		-
Other invested assets		332		(5)		2		(19)		-		(54)		-		256		(2)
Total	$	38,020	$	990	$	91	$	(415)	$	1,003	$	(1,233)	$	(88)	$	38,368	$	(411)

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,						Reclassified				(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross		to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		Held		End		Instruments Held
(in millions)		of Period^(a)		in Income		Income (Loss)	Settlements, Net			In		Out		for Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	2,289	$	1,508	$	-	$	225	$	-	$	-	$	-	$	4,022	$	38
Derivative liabilities, net:
Interest rate contracts		50		4		-		(2)		-		-		-		52		(5)
Foreign exchange contracts		7		3		-		(1)		-		-		-		9		(2)
Equity contracts		(54)		(5)		-		5		-		-		-		(54)		5
Commodity contracts		-		-		-		-		-		-		-		-		-
Credit contracts		505		(70)		-		(91)		-		1		-		345		56
Other contracts		48		14		-		28		-		-		-		90		3
Total derivative liabilities, net^(a)		556		(54)		-		(61)		-		1		-		442		57
Long-term debt^(b)		183		3		-		(3)		-		(113)		-		70		-
Total	$	3,028	$	1,457	$	-	$	161	$	-	$	(112)	$	-	$	4,534	$	95

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Three Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,180	$	(1)	$	(15)	$	16	$	-	$	(40)	$	2,140	$	-
Non-U.S. governments		33		-		(1)		(1)		-		-		31		-
Corporate debt		2,118		5		2		(63)		987		(573)		2,476		-
RMBS		17,097		265		(151)		(352)		-		-		16,859		-
CMBS		2,677		17		(15)		50		-		-		2,729		-
CDO/ABS		6,071		8		57		(21)		6		(13)		6,108		-
Total bonds available for sale		30,176		294		(123)		(371)		993		(626)		30,343		-
Other bond securities:
Corporate debt		16		-		-		-		-		-		16		-
RMBS		1,337		(4)		-		169		-		(1)		1,501		(3)
CMBS		223		(1)		-		(8)		5		-		219		(1)
CDO/ABS		7,426		85		-		(415)		51		-		7,147		23
Total other bond securities		9,002		80		-		(254)		56		(1)		8,883		19
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		22		-		-		-		-		-		22		-
Mortgage and other loans receivable		6		-		-		5		-		-		11		-
Other invested assets		437		(15)		(21)		(18)		-		-		383		-
Total	$	39,643	$	359	$	(144)	$	(638)	$	1,049	$	(627)	$	39,642	$	19

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	1,232	$	871	$	-	$	146	$	-	$	-	$	2,249	$	32
Derivative liabilities, net:
Interest rate contracts		62		3		-		(7)		-		-		58		(4)
Foreign exchange contracts		7		1		-		(1)		-		-		7		(2)
Equity contracts		(63)		21		-		3		-		-		(39)		(21)
Credit contracts		551		(11)		-		(12)		-		-		528		23
Other contracts		16		12		-		23		-		-		51		(13)
Total derivatives liabilities, net^(a)		573		26		-		6		-		-		605		(17)
Long-term debt^(b)		193		(3)		-		-		-		-		190		-
Total	$	1,998	$	894	$	-	$	152	$	-	$	-	$	3,044	$	15

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Nine Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions^(c)	$	2,159	$	-	$	(94)	$	174	$	-	$	(99)	$	2,140	$	-
Non-U.S. governments		30		-		(2)		3		-		-		31		-
Corporate debt		1,883		19		(31)		(209)		1,443		(629)		2,476		-
RMBS		16,805		804		(322)		(428)		-		-		16,859		-
CMBS		2,696		63		(45)		97		-		(82)		2,729		-
CDO/ABS		6,110		138		(110)		98		6		(134)		6,108		-
Total bonds available for sale		29,683		1,024		(604)		(265)		1,449		(944)		30,343		-
Other bond securities:
Corporate debt		-		-		-		-		16		-		16		-
RMBS		1,105		22		-		389		44		(59)		1,501		(21)
CMBS		369		7		-		(162)		5		-		219		(3)
CDO/ABS		7,449		482		-		(1,341)		632		(75)		7,147		(55)
Total other bond securities		8,923		511		-		(1,114)		697		(134)		8,883		(79)
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		-		-		-		-		22		-		22		(2)
Mortgage and other loans receivable		6		-		-		5		-		-		11		-
Other invested assets		1,042		457		(509)		(607)		-		-		383		-
Total	$	39,655	$	1,994	$	(1,113)	$	(1,984)	$	2,168	$	(1,078)	$	39,642	$	(81)

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	1,509	$	410	$	-	$	330	$	-	$	-	$	2,249	$	72
Derivative liabilities, net:
Interest rate contracts		74		3		-		(19)		-		-		58		(4)
Foreign exchange contracts		8		(2)		-		1		-		-		7		1
Equity contracts		(47)		15		-		(7)		-		-		(39)		(19)
Credit contracts		978		(171)		-		(279)		-		-		528		73
Other contracts		59		(61)		-		53		-		-		51		53
Total derivatives liabilities, net^(a)		1,072		(216)		-		(251)		-		-		605		104
Long-term debt^(b)		213		(5)		-		(18)		-		-		190		13
Total	$	2,794	$	189	$	-	$	61	$	-	$	-	$	3,044	$	189

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

(b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable.

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
Three Months Ended September 30, 2016
Bonds available for sale	$	294	$	(27)	$	1	$	268
Other bond securities		37		13		162		212
Other invested assets		5		(3)		(6)		(4)
Nine Months Ended September 30, 2016
Bonds available for sale	$	883	$	(56)	$	3	$	830
Other bond securities		29		45		91		165
Other invested assets		2		29		(36)		(5)
Three Months Ended September 30, 2015
Bonds available for sale	$	304	$	(15)	$	5	$	294
Other bond securities		7		-		73		80
Equity securities available for sale		-		-		-		-
Other invested assets		(8)		(11)		4		(15)
Nine Months Ended September 30, 2015
Bonds available for sale	$	926	$	(14)	$	112	$	1,024
Other bond securities		48		3		460		511
Equity securities available for sale		-		2		-		2
Other invested assets		(10)		408		59		457

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended September 30, 2016
Policyholder contract deposits	$	-	$	65	$	-	$	65
Derivative liabilities, net		-		(5)		(54)		(59)
Long-term debt		-		-		3		3
Nine Months Ended September 30, 2016
Policyholder contract deposits	$	-	$	1,508	$	-	$	1,508
Derivative liabilities, net		-		(1)		(53)		(54)
Long-term debt		-		-		3		3
Three Months Ended September 30, 2015
Policyholder contract deposits	$	-	$	871	$	-	$	871
Derivative liabilities, net		-		17		9		26
Long-term debt		-		-		(3)		(3)
Nine Months Ended September 30, 2015
Policyholder contract deposits	$	-	$	410	$	-	$	410
Derivative liabilities, net		-		12		(228)		(216)
Long-term debt		-		-		(5)		(5)

Gross components of purchases, sales, issues and settlements, net

								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net^(a)
Three Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	98	$	-	$	(40)	$	58
Non-U.S. governments		7		-		(4)		3
Corporate debt		-		-		(6)		(6)
RMBS		754		(23)		(896)		(165)
CMBS		50		(24)		(27)		(1)
CDO/ABS		902		(22)		(152)		728
Total bonds available for sale		1,811		(69)		(1,125)		617
Other bond securities:
RMBS		12		(74)		(58)		(120)
CMBS		-		(14)		(1)		(15)
CDO/ABS		-		(340)		(166)		(506)
Total other bond securities		12		(428)		(225)		(641)
Other equity securities		-		-		(14)		(14)
Other invested assets		21		-		(3)		18
Total assets	$	1,844	$	(497)	$	(1,367)	$	(20)
Liabilities:
Policyholder contract deposits	$	-	$	95	$	(128)	$	(33)
Derivative liabilities, net		(2)		-		24		22
Long-term debt^(b)		-		-		-		-
Total liabilities	$	(2)	$	95	$	(104)	$	(11)

Three Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	35	$	-	$	(19)	$	16
Non-U.S. governments		3		(1)		(3)		(1)
Corporate debt		32		-		(95)		(63)
RMBS		449		(29)		(772)		(352)
CMBS		50		-		-		50
CDO/ABS		160		(9)		(172)		(21)
Total bonds available for sale		729		(39)		(1,061)		(371)
Other bond securities:
RMBS		218		(6)		(43)		169
CMBS		-		-		(8)		(8)
CDO/ABS		10		(5)		(420)		(415)
Total other bond securities		228		(11)		(471)		(254)
Equity securities available for sale		-		-		-		-
Mortgage and other loans receivable		5		-		-		5
Other invested assets		(8)		-		(10)		(18)
Total assets	$	954	$	(50)	$	(1,542)	$	(638)
Liabilities:
Policyholder contract deposits	$	-	$	122	$	24	$	146
Derivative liabilities, net		(1)		-		7		6
Long-term debt^(b)		-		-		-		-
Total liabilities	$	(1)	$	122	$	31	$	152
								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net^(a)
Nine Months Ended September 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	144	$	(7)	$	(86)	$	51
Non-U.S. governments		10		-		(5)		5
Corporate debt		29		(25)		(46)		(42)
RMBS		2,297		(81)		(2,553)		(337)
CMBS		156		(82)		(243)		(169)
CDO/ABS		2,053		(33)		(472)		1,548
Total bonds available for sale		4,689		(228)		(3,405)		1,056
Other bond securities:
Corporate debt		-		-		(1)		(1)
RMBS		101		(100)		(175)		(174)
CMBS		53		(85)		(6)		(38)
CDO/ABS		69		(376)		(918)		(1,225)
Total other bond securities		223		(561)		(1,100)		(1,438)

Equity securities available for sale		-		-		-		-
Other equity securities		14		-		(28)		(14)
Other invested assets		39		(2)		(56)		(19)
Total assets	$	4,965	$	(791)	$	(4,589)	$	(415)
Liabilities:
Policyholder contract deposits	$	-	$	365	$	(140)	$	225
Derivative liabilities, net		(5)		-		(56)		(61)
Long-term debt^(b)		-		-		(3)		(3)
Total liabilities	$	(5)	$	365	$	(199)	$	161
Nine Months Ended September 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions^(c)	$	258	$	(22)	$	(62)	$	174
Non-U.S. governments		11		(1)		(7)		3
Corporate debt		220		(60)		(369)		(209)
RMBS		1,856		(194)		(2,090)		(428)
CMBS		192		(27)		(68)		97
CDO/ABS		1,021		(210)		(713)		98
Total bonds available for sale		3,558		(514)		(3,309)		(265)
Other bond securities:
RMBS		527		(16)		(122)		389
CMBS		-		(79)		(83)		(162)
CDO/ABS		236		(376)		(1,201)		(1,341)
Total other bond securities		763		(471)		(1,406)		(1,114)
Equity securities available for sale		-		(2)		(1)		(3)
Mortgage and other loans receivable		5		-		-		5
Other invested assets		19		(587)		(39)		(607)
Total assets	$	4,345	$	(1,574)	$	(4,755)	$	(1,984)
Liabilities:
Policyholder contract deposits	$	-	$	307	$	23	$	330
Derivative liabilities, net		(18)		-		(233)		(251)
Long-term debt^(b)		-		-		(18)		(18)
Total liabilities	$	(18)	$	307	$	(228)	$	61

(a) There were no issuances during the three- and nine-month periods ended September 30, 2016 and 2015, respectively.

(b) Includes GIAs, notes, bonds, loans and mortgages payable.

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	September 30,		Valuation		Range
(in millions)	2016		Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states, municipalities
and political subdivisions
	$	1,460	Discounted cash flow	Yield	3.46% - 4.29% (3.87%)

Corporate debt		625	Discounted cash flow	Yield	2.90% - 8.34% (5.62%)

RMBS^(a)		17,369	Discounted cash flow	Constant prepayment rate	1.37% - 8.78% (5.07%)
				Loss severity	49.30% - 80.09% (64.69%)
				Constant default rate	3.51% - 8.83% (6.17%)
				Yield	2.79% - 5.53% (4.16%)

CDO/ABS^(a)		4,049	Discounted cash flow	Yield	3.00% - 5.34% (4.17%)

CMBS		1,939	Discounted cash flow	Yield	0.00% - 13.78% (6.20%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

GMWB and GMAB		2,793	Discounted cash flow	Equity volatility	12.00% - 12.00%
				Base lapse rate	0.50% - 20.00%
				Dynamic lapse rate	30.00% - 170.00%
				Mortality multiplier^(c)	42.00% - 161.00%
				Utilization rate	100.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		907	Discounted cash flow	Lapse rate	1.00% - 66.00%
				Mortality multiplier^(c)	101.00% - 103.00%

Indexed Life		352	Discounted cash flow	Base lapse rate	2.00% to 19.00%
				Mortality rate	0.00% to 40.00%


		Fair Value at
		December 31,	Valuation		Range
(in millions)		2015	Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states, municipalities
and political subdivisions	$	1,217	Discounted cash flow	Yield	4.32% - 5.10% (4.71%)

Corporate debt		642	Discounted cash flow	Yield	5.63% - 12.45% (9.04%)

RMBS^(a)		17,280	Discounted cash flow	Constant prepayment rate	0.99% - 8.95% (4.97%)
				Loss severity	47.21% - 79.50% (63.35%)
				Constant default rate	3.49% - 9.04% (6.26%)
				Yield	3.13% - 6.14% (4.63%)

CDO/ABS^(a)		3,338	Discounted cash flow	Yield	3.41% - 4.98% (4.19%)

CMBS		2,388	Discounted cash flow	Yield	0.00% - 17.65% (6.62%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

GMWB and GMAB		1,234	Discounted cash flow	Equity volatility	15.00% - 50.00%
				Base lapse rate	1.00% - 17.00%
				Dynamic lapse rate	0.20% - 25.50%
				Mortality multiplier^(d)	80.00% - 104.27%
				Utilization rate	0.00% - 70.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		715	Discounted cash flow	Lapse rate	0.75% - 66.00%
				Mortality multiplier^(d)	50.00% - 75.00%

Indexed Life		332	Discounted cash flow	Base lapse rate	2.00% to 19.00%
				Mortality rate	0.00% to 40.00%

(b) Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities.

(d) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table for GMWB and GMAB, and the 1975-1980 Modified Basic Table for index annuities.

Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share

		September 30, 2016				December 31, 2015
			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	$	1,486	$	595	$	1,774	$	436

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		267		190		306		213

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		92		32		107		41

Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		124		44		146		41

Other	Includes multi-strategy, mezzanine and other strategies		310		235		298		239
Total private equity funds			2,279		1,096		2,631		970
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		652		-		1,194		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		2,264		24		2,978		25

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		579		-		555		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		620		7		699		8

Emerging markets	Investments in the financial markets of developing countries		307		-		353		-

Other	Includes multi-strategy, relative value and other strategies		134		-		167		-
Total hedge funds			4,556		31		5,946		33
Total		$	6,835	$	1,127	$	8,577	$	1,003

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

	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
(in millions)		2016		2015		2016		2015
Assets:
Bond and equity securities	$	331	$	(106)	$	629	$	495
Alternative Investments^(a)		154		(115)		(60)		148
Other, including Short-term investments		-		-		-		2
Liabilities:
Long-term debt^(b)		8		(144)		(239)		(89)
Other liabilities		-		-		-		(3)
Total gain (loss)	$	493	$	(365)	$	330	$	553

(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

	September 30, 2016						December 31, 2015
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	11	$	8	$	3	$	11	$	9	$	2
Liabilities:
Long-term debt^*	$	3,664	$	2,595	$	1,069	$	3,670	$	2,675	$	995

* Includes GIAs, notes, bonds, loans and mortgages payable.

Fair value assets measured on nonrecurring basis and impairment charges

	Assets at Fair Value								Impairment Charges
	Non-Recurring Basis								Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	Level 1		Level 2		Level 3			Total		2016		2015		2016		2015
September 30, 2016
Other investments	$	-	$	-	$	194	$	194	$	27	$	22	$	58	$	74
Investments in life settlements		-		-		665		665		80		58		329		200
Other assets		-		-		2		2		2		5		11		12
Total	$	-	$	-	$	861	$	861	$	109	$	85	$	398	$	286
December 31, 2015
Other investments	$	-	$	-	$	1,117	$	1,117
Investments in life settlements		-		-		828		828
Other assets		-		-		129		129
Total	$	-	$	-	$	2,074	$	2,074

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
September 30, 2016
Assets:
Mortgage and other loans receivable	$	-	$	172	$	33,950	$	34,122	$	32,402
Other invested assets		-		629		2,875		3,504		4,211
Short-term investments		-		8,021		-		8,021		8,021
Cash		2,498		-		-		2,498		2,498
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		394		129,460		129,854		112,380
Other liabilities		-		4,214		-		4,214		4,214
Long-term debt		-		26,133		3,868		30,001		28,613
December 31, 2015
Assets:
Mortgage and other loans receivable	$	-	$	198	$	30,147	$	30,345	$	29,554
Other invested assets		-		563		2,880		3,443		4,169
Short-term investments		-		7,541		-		7,541		7,541
Cash		1,629		-		-		1,629		1,629
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		309		117,537		117,846		108,788
Other liabilities		-		2,852		-		2,852		2,852
Long-term debt		-		21,686		4,528		26,214		25,579

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2016

INVESTMENTS

The amortized cost or cost and fair value of AIG's available for sale securities and other invested assets carried at fair value

										Other-Than-
		Amortized		Gross		Gross				Temporary
		Cost or		Unrealized		Unrealized		Fair		Impairments
(in millions)		Cost		Gains		Losses		Value		in AOCI^(a)
September 30, 2016
Bonds available for sale:
U.S. government and government sponsored entities	$	1,974	$	249	$	-	$	2,223	$	-
Obligations of states, municipalities and political subdivisions		24,468		2,139		(29)		26,578		-
Non-U.S. governments		18,515		2,297		(106)		20,706		-
Corporate debt		130,290		11,709		(795)		141,204		(23)
Mortgage-backed, asset-backed and collateralized:
RMBS		35,178		2,963		(326)		37,815		1,204
CMBS		14,244		869		(40)		15,073		54
CDO/ABS		16,746		411		(107)		17,050		39
Total mortgage-backed, asset-backed and collateralized		66,168		4,243		(473)		69,938		1,297
Total bonds available for sale^(b)		241,415		20,637		(1,403)		260,649		1,274
Equity securities available for sale:
Common stock		894		356		(18)		1,232		-
Preferred stock		14		4		-		18		-
Mutual funds		259		36		(1)		294		-
Total equity securities available for sale		1,167		396		(19)		1,544		-
Total	$	242,582	$	21,033	$	(1,422)	$	262,193	$	1,274
December 31, 2015
Bonds available for sale:
U.S. government and government sponsored entities	$	1,698	$	155	$	(9)	$	1,844	$	-
Obligations of states, municipalities and political subdivisions		26,003		1,424		(104)		27,323		19
Non-U.S. governments		17,752		805		(362)		18,195		-
Corporate debt		133,513		6,462		(3,987)		135,988		(87)
Mortgage-backed, asset-backed and collateralized:
RMBS		33,878		2,760		(411)		36,227		1,326
CMBS		13,139		561		(129)		13,571		185
CDO/ABS		14,985		360		(248)		15,097		39
Total mortgage-backed, asset-backed and collateralized		62,002		3,681		(788)		64,895		1,550
Total bonds available for sale^(b)		240,968		12,527		(5,250)		248,245		1,482
Equity securities available for sale:
Common stock		913		1,504		(16)		2,401		-
Preferred stock		19		3		-		22		-
Mutual funds		447		53		(8)		492		-
Total equity securities available for sale		1,379		1,560		(24)		2,915		-
Total	$	242,347	$	14,087	$	(5,274)	$	251,160	$	1,482

(b) At September 30, 2016 and December 31, 2015, bonds available for sale held by us that were below investment grade or not rated totaled $35.6 billion and $34.9 billion, respectively.

The fair value and gross unrealized losses on AIG's available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized 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
September 30, 2016
Bonds available for sale:
U.S. government and government sponsored entities	$	18	$	-	$	-	$	-	$	18	$	-
Obligations of states, municipalities and political
subdivisions		967		9		245		20		1,212		29
Non-U.S. governments		984		34		581		72		1,565		106
Corporate debt		6,730		214		6,346		581		13,076		795
RMBS		3,962		70		4,341		256		8,303		326
CMBS		1,044		25		368		15		1,412		40
CDO/ABS		2,906		44		2,571		63		5,477		107
Total bonds available for sale		16,611		396		14,452		1,007		31,063		1,403
Equity securities available for sale:
Common stock		235		18		-		-		235		18
Mutual funds		5		1		-		-		5		1
Total equity securities available for sale		240		19		-		-		240		19
Total	$	16,851	$	415	$	14,452	$	1,007	$	31,303	$	1,422
December 31, 2015
Bonds available for sale:
U.S. government and government sponsored entities	$	483	$	9	$	1	$	-	$	484	$	9
Obligations of states, municipalities and political
subdivisions		2,382		87		268		17		2,650		104
Non-U.S. governments		4,327		203		832		159		5,159		362
Corporate debt		41,317		2,514		5,428		1,473		46,745		3,987
RMBS		7,215		133		4,318		278		11,533		411
CMBS		4,138		108		573		21		4,711		129
CDO/ABS		7,064		104		2,175		144		9,239		248
Total bonds available for sale		66,926		3,158		13,595		2,092		80,521		5,250
Equity securities available for sale:
Common stock		91		16		-		-		91		16
Mutual funds		200		8		-		-		200		8
Total equity securities available for sale		291		24		-		-		291		24
Total	$	67,217	$	3,182	$	13,595	$	2,092	$	80,812	$	5,274

The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity

	Total Fixed Maturity Securities				Fixed Maturity Securities in a Loss
September 30, 2016	Available for Sale				Position Available for Sale
(in millions)		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	8,321	$	8,504	$	695	$	680
Due after one year through five years		51,382		54,984		3,364		3,197
Due after five years through ten years		46,208		49,119		4,839		4,528
Due after ten years		69,336		78,104		7,903		7,466
Mortgage-backed, asset-backed and collateralized		66,168		69,938		15,665		15,192
Total	$	241,415	$	260,649	$	32,466	$	31,063
December 31, 2015
Due in one year or less	$	9,176	$	9,277	$	1,122	$	1,103
Due after one year through five years		47,230		49,196		9,847		9,494
Due after five years through ten years		54,120		54,459		22,296		20,686
Due after ten years		68,440		70,418		26,235		23,755
Mortgage-backed, asset-backed and collateralized		62,002		64,895		26,271		25,483
Total	$	240,968	$	248,245	$	85,771	$	80,521

The gross realized gains and gross realized losses from sales of AIG's available for sale securities

	Three Months Ended September 30,								Nine Months Ended September 30,
		2016				2015			2016					2015
		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	$	189	$	54	$	96	$	112	$	593	$	696		$	439	$	289
Equity securities		54		1		24		8		1,066		15			544		16
Total	$	243	$	55	$	120	$	120	$	1,659	$	711		$	983	$	305

The fair value of AIG's other securities

		September 30, 2016				December 31, 2015
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	3,347	22	%	$	3,369	19	%
Obligations of states, municipalities and political subdivisions		-	-			75	-
Non-U.S. governments		54	-			50	-
Corporate debt		1,974	13			2,035	12
Mortgage-backed, asset-backed and collateralized:
RMBS		1,847	12			2,230	13
CMBS		610	4			750	4
CDO/ABS and other collateralized^*		6,940	46			8,273	47
Total mortgage-backed, asset-backed and collateralized		9,397	62			11,253	64
Total fixed maturity securities		14,772	97			16,782	95
Equity securities		498	3			921	5
Total	$	15,270	100	%	$	17,703	100	%

* Includes $463 million and $712 million of U.S. Government agency-backed ABS at September 30, 2016 and December 31, 2015, respectively.

Components of other invested assets

		September 30,		December 31,
(in millions)		2016		2015
Alternative investments^{(a) (b)}	$	14,227	$	18,150
Investment real estate^(c)		6,494		6,579
Aircraft asset investments^(d)		356		477
Investments in life settlements		3,577		3,606
All other investments		1,093		982
Total	$	25,747	$	29,794

(b) Approximately 56 percent of our hedge fund portfolio is available for redemption in 2016, an additional 27 percent and 10 percent will be available in 2017 and 2018, respectively.

(c) Net of accumulated depreciation of $554 million and $668 million in September 30, 2016 and December 31, 2015, respectively.

(d) Consists of investments in aircraft equipment held in consolidated trusts.

Components of net investment income

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
Fixed maturity securities, including short-term investments	$	2,935	$	2,794	$	8,863	$	8,477
Equity securities		25		(5)		(19)		76
Interest on mortgage and other loans		379		360		1,144		1,046
Alternative investments^*		365		(18)		309		1,226
Real estate		37		66		125		116
Other investments		157		142		395		331
Total investment income		3,898		3,339		10,817		11,272
Investment expenses		115		133		338		402
Net investment income	$	3,783	$	3,206	$	10,479	$	10,870

Components of net realized capital gains (losses)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
Sales of fixed maturity securities	$	135	$	(16)	$	(103)	$	150
Sales of equity securities		53		16		1,051		528
Other-than-temporary impairments:
Severity		(10)		(10)		(15)		(12)
Change in intent		(2)		(81)		(35)		(193)
Foreign currency declines		(7)		(5)		(14)		(37)
Issuer-specific credit events		(77)		(176)		(303)		(314)
Adverse projected cash flows		(6)		(1)		(47)		(9)
Provision for loan losses		8		32		8		43
Foreign exchange transactions		(639)		(16)		(1,197)		304
Derivatives and hedge accounting		(226)		13		(129)		509
Impairments on investments in life settlements		(80)		(58)		(329)		(200)
Other^*		86		(40)		284		356
Net realized capital gains (losses)	$	(765)	$	(342)	$	(829)	$	1,125

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	1,595	$	(1,180)	$	11,957	$	(5,583)
Equity securities		(19)		(384)		(1,159)		(479)
Other investments		(29)		(85)		(243)		(625)
Total Increase (decrease) in unrealized appreciation (depreciation) of investments^*	$	1,547	$	(1,649)	$	10,555	$	(6,687)

* Excludes net unrealized gains attributable to businesses held for sale.

Credit impairments recognized in earnings for available for sale fixed maturity securities

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
Balance, beginning of period	$	1,298	$	2,238	$	1,747	$	2,659
Increases due to:
Credit impairments on new securities subject to impairment losses		23		51		146		101
Additional credit impairments on previously impaired securities		37		37		166		84
Reductions due to:
Credit impaired securities fully disposed of for which there was no
prior intent or requirement to sell		(39)		(63)		(282)		(213)
Credit impaired securities for which there is a current intent or
anticipated requirement to sell		-		(1)		-		(1)
Accretion on securities previously impaired due to credit^*		(187)		(197)		(645)		(565)
Impairments on securities reclassified to Assets held for sale		(2)		-		(2)		-
Balance, end of period	$	1,130	$	2,065	$	1,130	$	2,065

Schedule of Purchased Credit Impaired (PCI) Securities, at acquisition date

(in millions)	At Date of Acquisition
Contractually required payments (principal and interest)	$	35,665
Cash flows expected to be collected^*		29,091
Recorded investment in acquired securities		19,536

* Represents undiscounted expected cash flows, including both principal and interest.

Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date

(in millions)	September 30, 2016		December 31, 2015
Outstanding principal balance	$	17,163	$	16,871
Amortized cost		12,364		12,303
Fair value		13,203		13,164

Activity for accretable yield on Purchased Credit Impaired (PCI) Securities

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
Balance, beginning of period	$	7,043	$	6,833	$	6,846	$	6,865
Newly purchased PCI securities		177		136		628		551
Disposals		-		-		-		(13)
Accretion		(214)		(220)		(637)		(661)
Effect of changes in interest rate indices		(196)		4		(435)		(140)
Net reclassification from (to) non-accretable difference,
including effects of prepayments		158		180		566		331
Balance, end of period	$	6,968	$	6,933	$	6,968	$	6,933

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

(in millions)		September 30, 2016		December 31, 2015
Fixed maturity securities available for sale	$	2,177	$	1,145
Other bond securities, at fair value	$	1,967	$	1,740

Transfer of Certain Financial Assets Accounted for as Secured Borrowings

	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
September 30, 2016
Other bond securities:
Non-U.S. governments	$	-	$	-	$	54	$	-	$	-	$	54
Corporate debt		-		365		1,111		437		-		1,913
Total	$	-	$	365	$	1,165	$	437	$	-	$	1,967

December 31, 2015
Bonds available for sale:
Non-U.S. governments	$	-	$	50	$	-	$	-	$	-	$	50
Other bond securities:
Non-U.S. governments		-		-		-		49		-		49
Corporate debt		-		33		332		1,326		-		1,691
Total	$	-	$	83	$	332	$	1,375	$	-	$	1,790

	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
September 30, 2016
Bonds available for sale:
Non-U.S. governments	$	-	$	-	$	113	$	-	$	-	$	113
Corporate debt		-		711		1,190		102		-		2,003
CMBS		-		-		-		61		-		61
Total	$	-	$	711	$	1,303	$	163	$	-	$	2,177

December 31, 2015
Bonds available for sale:
Non-U.S. governments	$	-	$	-	$	57	$	-	$	-	$	57
Corporate debt		-		-		914		-		-		914
RMBS		-		-		-		124		-		124
Total	$	-	$	-	$	971	$	124	$	-	$	1,095

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

(in millions)		September 30, 2016		December 31, 2015
Securities collateral pledged to us	$	1,590	$	1,742

LENDING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2016

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable

	September 30,			December 31,
(in millions)		2016		2015
Commercial mortgages^*	$	24,010	$	22,067
Residential mortgages		3,557		2,758
Commercial loans, other loans and notes receivable		2,635		2,451
Life insurance policy loans		2,510		2,597
Total mortgage and other loans receivable		32,712		29,873
Allowance for credit losses		(299)		(308)
Mortgage and other loans receivable, net	$	32,413	$	29,565

Schedule of debt service coverage ratio and loan-to-value ratio for the commercial mortgage loans

	Debt Service Coverage Ratios^(a)
(in millions)		>1.20X		1.00X - 1.20X		<1.00X		Total
September 30, 2016
Loan-to-Value Ratios^(b)
Less than 65%	$	13,111	$	1,949	$	228	$	15,288
65% to 75%		5,391		589		87		6,067
76% to 80%		1,445		184		47		1,676
Greater than 80%		362		412		205		979
Total commercial mortgages	$	20,309	$	3,134	$	567	$	24,010

December 31, 2015
Loan-to-Value Ratios^(b)
Less than 65%	$	10,283	$	1,704	$	150	$	12,137
65% to 75%		6,361		611		45		7,017
76% to 80%		1,370		169		81		1,620
Greater than 80%		646		226		421		1,293
Total commercial mortgages	$	18,660	$	2,710	$	697	$	22,067

(a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest.

(b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan.

Schedule of credit quality indicators for the commercial mortgage loans

	Number															Percent
	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total^(c)	Total $
September 30, 2016
Credit Quality Performance Indicator:
In good standing	801	$	5,197	$	7,884	$	5,127	$	1,824	$	2,430	$	1,381	$	23,843	99	%
Restructured^(a)	4		-		133		18		-		16		-		167	1
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	805	$	5,197	$	8,017	$	5,145	$	1,824	$	2,446	$	1,381	$	24,010	100	%
Allowance for credit losses:
Specific		$	-	$	3	$	1	$	6	$	1	$	-	$	11	-	%
General			31		73		41		7		13		13		178	1
Total allowance for credit losses		$	31	$	76	$	42	$	13	$	14	$	13	$	189	1	%

December 31, 2015
Credit Quality Performance Indicator:
In good standing	830	$	3,916	$	7,484	$	4,809	$	1,902	$	2,082	$	1,435	$	21,628	98	%
Restructured^(a)	9		-		156		25		6		16		6		209	1
90 days or less delinquent	1		-		-		4		-		-		-		4	-
>90 days delinquent or in
process of foreclosure	9		3		205		-		6		-		12		226	1
Total^(b)	849	$	3,919	$	7,845	$	4,838	$	1,914	$	2,098	$	1,453	$	22,067	100	%
Allowance for credit losses:
Specific		$	-	$	16	$	1	$	6	$	1	$	-	$	24	-	%
General			35		47		29		8		15		13		147	1
Total allowance for credit losses		$	35	$	63	$	30	$	14	$	16	$	13	$	171	1	%

(b) Does not reflect allowance for credit losses.

Schedule of changes in the allowance for losses on Mortgage and other loans receivable

	2016						2015
Nine Months Ended September 30,		Commercial		Other				Commercial		Other
(in millions)		Mortgages		Loans		Total		Mortgages		Loans		Total
Allowance, beginning of year	$	171	$	137	$	308	$	159	$	112	$	271
Loans charged off		(13)		(2)		(15)		(23)		(6)		(29)
Recoveries of loans previously charged off		11		-		11		4		1		5
Net charge-offs		(2)		(2)		(4)		(19)		(5)		(24)
Provision for loan losses		20		(25)		(5)		22		(66)		(44)
Other		-		-		-		-		3		3
Allowance, end of period	$	189 ^*	$	110	$	299	$	162 ^*	$	44	$	206

VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2016

Variable Interest Entity Primary Beneficiary

Variable Interest Entities [Line Items]

Schedule of Variable Interest Entities

(in millions)		Real Estate and Investment Entities^(d)		Securitization Vehicles		Structured Investment Vehicle		Affordable Housing Partnerships		Other		Total
September 30, 2016
Assets:
Bonds available for sale	$	-	$	10,546	$	-	$	-	$	-	$	10,546
Other bond securities		-		5,074		324		-		6		5,404
Mortgage and other loans receivable		1		1,553		-		-		109		1,663
Other invested assets		1,008		356		-		2,810		27		4,201
Other ^(a)		1,619		885		122		401		170		3,197
Total assets^(b)	$	2,628	$	18,414	$	446	$	3,211	$	312	$	25,011
Liabilities:
Long-term debt	$	431	$	781	$	55	$	1,698	$	6	$	2,971
Other ^(c)		1,440		225		-		230		138		2,033
Total liabilities	$	1,871	$	1,006	$	55	$	1,928	$	144	$	5,004
December 31, 2015
Assets:
Bonds available for sale	$	-	$	10,309	$	-	$	-	$	15	$	10,324
Other bond securities		-		5,756		387		-		24		6,167
Mortgage and other loans receivable		1		1,960		-		-		132		2,093
Other invested assets		489		477		-		2,608		24		3,598
Other ^(a)		29		1,349		94		293		159		1,924
Total assets^(b)	$	519	$	19,851	$	481	$	2,901	$	354	$	24,106
Liabilities:
Long-term debt	$	-	$	1,025	$	53	$	1,513	$	6	$	2,597
Other^(c)		34		236		1		214		71		556
Total liabilities	$	34	$	1,261	$	54	$	1,727	$	77	$	3,153

(b) The assets of each VIE can be used only to settle specific obligations of that VIE.

(d) At September 30, 2016 and December 31, 2015, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $126 million and $131 million, respectively.

Variable Interest Entity Not Primary Beneficiary

Variable Interest Entities [Line Items]

Schedule of Assets And Liabilities of Variable Interest Entities by Balance Sheets Location

			Maximum Exposure to Loss
		Total VIE		On-Balance		Off-Balance
(in millions)		Assets		Sheet^(a)		Sheet			Total
September 30, 2016
Real estate and investment entities^(d)	$	410,119	$	11,722	$	2,108		$	13,830
Affordable housing partnerships		4,755		789		-			789
Other		4,371		332		1,031	^(b)		1,363
Total^{(c) (e)}	$	419,245	$	12,843	$	3,139		$	15,982
December 31, 2015
Real estate and investment entities^(d)	$	21,951	$	3,072	$	398		$	3,470
Affordable housing partnerships		5,255		774		-			774
Other		1,110		215		1,000	^(b)		1,215
Total	$	28,316	$	4,061	$	1,398		$	5,459

(a) At September 30, 2016 and December 31, 2015, $ 12.4 billion and $3.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

(c) As discussed in Note 2, on January 1, 2016, we adopted accounting guidance that resulted in an increase in the number of our investment entities classified as VIEs.

(d) Comprised primarily of hedge funds and private equity funds.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

DERIVATIVES AND HEDGE ACCOUNTING (Tables)

9 Months Ended

Sep. 30, 2016

DERIVATIVES AND HEDGE ACCOUNTING

Notional amounts and fair values of derivative instruments

	September 30, 2016								December 31, 2015
	Gross Derivative Assets				Gross Derivative Liabilities				Gross Derivative Assets				Gross Derivative Liabilities
		Notional		Fair		Notional		Fair		Notional		Fair		Notional		Fair
(in millions)		Amount		Value		Amount		Value		Amount		Value		Amount		Value
Derivatives designated as
hedging instruments:^(a)
Interest rate contracts	$	355	$	2	$	476	$	3	$	301	$	1	$	725	$	2
Foreign exchange contracts		4,686		392		1,795		67		2,903		207		914		56
Equity contracts		113		9		-		-		-		-		121		23
Derivatives not designated
as hedging instruments:^(a)
Interest rate contracts		56,872		4,287		42,001		3,716		45,846		3,161		65,733		2,197
Foreign exchange contracts		10,574		753		8,149		1,343		9,472		559		8,900		1,148
Equity contracts		12,994		313		8,369		2		6,656		177		5,028		45
Credit contracts^(b)		4		2		911		347		4		3		1,289		508
Other contracts^(c)		37,937		22		192		112		37,586		23		203		69
Total derivatives, gross	$	123,535	$	5,780	$	61,893	$	5,590	$	102,768	$	4,131	$	82,913	$	4,048
Counterparty netting^(d)				(2,289)				(2,289)				(1,268)				(1,268)
Cash collateral^(e)				(1,358)				(482)				(1,554)				(760)
Total derivatives on condensed
consolidated balance sheets^(f)			$	2,133			$	2,819			$	1,309			$	2,020

(a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.

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

(e) Represents cash collateral posted and received that is eligible for netting.

Gain (loss) recognized in earnings on AIG's derivative instruments in fair value hedging relationships in the Consolidated Statements of Income

	Gains/(Losses) Recognized in Earnings for:				Including Gains/(Losses) Attributable to:
	Hedging		Hedged		Hedge		Excluded
(in millions)	Derivatives^(a)		Items		Ineffectiveness		Components		Other^(b)
Three Months Ended September 30, 2016
Interest rate contracts:
Realized capital gains/(losses)	$	(1)	$	1	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		3		-		-		3
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		(10)		(34)		-		(44)		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		3		-		-		3
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		8		(9)		-		(1)		-
Three Months Ended September 30, 2015
Interest rate contracts:
Realized capital gains/(losses)	$	1	$	(1)	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		2		-		-		2
Gain/(Loss) on extinguishment of debt		-		1		-		-		1
Foreign exchange contracts:
Realized capital gains/(losses)		81		(67)		-		14		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		4		-		-		4
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		(4)		3		-		(1)		-

Nine Months Ended September 30, 2016
Interest rate contracts:
Realized capital gains/(losses)	$	-	$	(6)	$	-	$	-	$	(6)
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		10		-		-		10
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		413		(443)		-		(30)		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		15		-		-		15
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		28		(28)		-		-		-
Nine Months Ended September 30, 2015
Interest rate contracts:
Realized capital gains/(losses)	$	1	$	(1)	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		7		-		-		7
Gain/(Loss) on extinguishment of debt		-		14		-		-		14
Foreign exchange contracts:
Realized capital gains/(losses)		152		(123)		-		27		2
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		14		-		-		14
Gain/(Loss) on extinguishment of debt		-		17		-		-		17
Equity contracts:
Realized capital gains/(losses)		(23)		21		-		(2)		-

(a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged item.

Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statements of Income

	Gains (Losses) Recognized in Earnings
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2016		2015		2016		2015
By Derivative Type:
Interest rate contracts	$	91	$	470	$	1,464	$	398
Foreign exchange contracts		49		51		203		321
Equity contracts		(317)		229		(589)		108
Commodity contracts		-		-		-		(1)
Credit contracts		36		11		70		171
Other contracts		22		71		58		60
Embedded derivatives		30		(816)		(1,255)		(143)
Total	$	(89)	$	16	$	(49)	$	914
By Classification:
Policy fees	$	20	$	20	$	60	$	59
Net investment income		2		6		14		20
Net realized capital gains (losses)		(181)		20		(93)		496
Other income (losses)		69		(36)		(43)		334
Policyholder benefits and claims incurred		1		6		13		5
Total	$	(89)	$	16	$	(49)	$	914

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41678-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

EQUITY (Tables)

9 Months Ended

Sep. 30, 2016

EQUITY

Rollforward of common stock outstanding

	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Nine Months Ended September 30, 2016
Shares, beginning of year	1,906,671,492	(712,754,875)	1,193,916,617
Shares issued	-	2,054,043	2,054,043
Shares repurchased	-	(153,082,104)	(153,082,104)
Shares, end of period	1,906,671,492	(863,782,936)	1,042,888,556

Accumulated Other Comprehensive Income (Loss)

		Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken
				Unrealized Appreciation (Depreciation) of All Other Investments		Foreign Currency Translation Adjustments		Retirement Plan Liabilities Adjustment


(in millions)										Total
Balance, December 31, 2015, net of tax	$	696	$	5,566	$	(2,879)	$	(846)	$	2,537
Change in unrealized appreciation (depreciation) of investments		(318)		10,873		-		-		10,555
Change in deferred policy acquisition costs adjustment and other^*		(40)		(887)		-		-		(927)
Change in future policy benefits		-		(2,099)		-		-		(2,099)
Change in foreign currency translation adjustments		-		-		179		-		179
Change in net actuarial loss		-		-		-		13		13
Change in prior service credit		-		-		-		(20)		(20)
Change in deferred tax asset (liability)		248		(1,585)		153		3		(1,181)
Total other comprehensive income (loss)		(110)		6,302		332		(4)		6,520
Noncontrolling interests		-		-		-		-		-
Balance, September 30, 2016, net of tax	$	586	$	11,868	$	(2,547)	$	(850)	$	9,057

Balance, December 31, 2014, net of tax	$	1,043	$	12,327	$	(1,784)	$	(969)	$	10,617
Change in unrealized depreciation of investments		(315)		(6,372)		-		-		(6,687)
Change in deferred policy acquisition costs adjustment and other		-		763		-		-		763
Change in future policy benefits		92		807		-		-		899
Change in foreign currency translation adjustments		-		-		(901)		-		(901)
Change in net actuarial loss		-		-		-		417		417
Change in prior service credit		-		-		-		(210)		(210)
Change in deferred tax asset (liability)		54		1,493		167		(59)		1,655
Total other comprehensive income (loss)		(169)		(3,309)		(734)		148		(4,064)
Noncontrolling interests		-		-		(4)		-		(4)
Balance, September 30, 2015, net of tax	$	874	$	9,018	$	(2,514)	$	(821)	$	6,557

* Includes net unrealized gains attributable to businesses held for sale.

Other comprehensive income (loss) reclassification adjustments

		Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken
				Unrealized Appreciation (Depreciation) of All Other Investments		Foreign Currency Translation Adjustments		Retirement Plan Liabilities Adjustment


(in millions)										Total
Three Months Ended September 30, 2016
Unrealized change arising during period	$	147	$	816	$	21	$	(8)	$	976
Less: Reclassification adjustments
included in net income		6		163		-		(3)		166
Total other comprehensive income,
before income tax expense (benefit)		141		653		21		(5)		810
Less: Income tax expense (benefit)		(76)		187		(90)		(9)		12
Total other comprehensive income,
net of income tax expense (benefit)	$	217	$	466	$	111	$	4	$	798
Three Months Ended September 30, 2015
Unrealized change arising during period	$	(98)	$	(1,275)	$	(217)	$	303	$	(1,287)
Less: Reclassification adjustments
included in net income		13		(17)		-		164		160
Total other comprehensive income (loss),
before income tax expense (benefit)		(111)		(1,258)		(217)		139		(1,447)
Less: Income tax expense (benefit)		(50)		(401)		21		47		(383)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(61)	$	(857)	$	(238)	$	92	$	(1,064)
Nine Months Ended September 30, 2016
Unrealized change arising during period	$	(252)	$	8,733	$	179	$	(18)	$	8,642
Less: Reclassification adjustments
included in net income		106		846		-		(11)		941
Total other comprehensive income (loss),
before income tax expense (benefit)		(358)		7,887		179		(7)		7,701
Less: Income tax expense (benefit)		(248)		1,585		(153)		(3)		1,181
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(110)	$	6,302	$	332	$	(4)	$	6,520
Nine Months Ended September 30, 2015
Unrealized change arising during period	$	(155)	$	(4,243)	$	(901)	$	324	$	(4,975)
Less: Reclassification adjustments
included in net income		68		559		-		117		744
Total other comprehensive income (loss),
before income tax expense (benefit)		(223)		(4,802)		(901)		207		(5,719)
Less: Income tax expense (benefit)		(54)		(1,493)		(167)		59		(1,655)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(169)	$	(3,309)	$	(734)	$	148	$	(4,064)

Schedule of effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income

	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income

	Three Months Ended September 30,
(in millions)		2016		2015
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken

Investments		$	6	$	13		Other realized capital gains
Total			6		13
Unrealized appreciation (depreciation) of all other investments
Investments			182		(15)		Other realized capital gains
Deferred acquisition costs adjustment			(19)		(2)		Amortization of deferred policy acquisition costs
Future policy benefits			-		-		Policyholder benefits and losses incurred
Total			163		(17)
Change in retirement plan liabilities adjustment
Prior - service credit			4		187		*
Actuarial losses			(7)		(23)		*
Total			(3)		164
Total reclassifications for the period		$	166	$	160
	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income

	Nine Months Ended September 30,
(in millions)		2016		2015
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken

Investments		$	106	$	68		Other realized capital gains
Total			106		68
Unrealized appreciation (depreciation) of all other investments
Investments			843		609		Other realized capital gains
Deferred acquisition costs adjustment			3		(67)		Amortization of deferred policy acquisition costs
Future policy benefits			-		17		Policyholder benefits and losses incurred
Total			846		559
Change in retirement plan liabilities adjustment
Prior - service credit			13		210		*
Actuarial losses			(24)		(93)		*
Total			(11)		117		-
Total reclassifications for the period		$	941	$	744		-

* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 13 to the Condensed Consolidated Financial Statements.

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 480
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65877616&loc=d3e177068-122764

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21553-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65888546&loc=d3e21300-112643

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(27))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

+ Details

EARNINGS PER SHARE (EPS) (Tables)

9 Months Ended

Sep. 30, 2016

EARNINGS PER SHARE (EPS)

Computation of basic and diluted EPS

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions, except per share data)		2016		2015		2016		2015
Numerator for EPS:
Income (loss) from continuing operations	$	433	$	(180)	$	2,211	$	4,071
Less: Net income (loss) from continuing operations attributable to noncontrolling interests		(26)		34		(35)		34
Income (loss) attributable to AIG common shareholders from continuing operations		459		(214)		2,246		4,037
Income (loss) from discontinued operations, net of income tax expense		3		(17)		(54)		-
Net income (loss) attributable to AIG common shareholders		462		(231)		2,192		4,037
Denominator for EPS:
Weighted average shares outstanding - basic		1,071,295,892		1,279,072,748		1,113,650,878		1,324,407,969
Dilutive shares^(a)		31,104,878		-		29,049,329		32,700,815
Weighted average shares outstanding - diluted^(b)		1,102,400,770		1,279,072,748		1,142,700,207		1,357,108,784
Income per common share attributable to AIG:
Basic:
Income (loss) from continuing operations	$	0.43	$	(0.17)	$	2.02	$	3.05
Income (loss) from discontinued operations	$	-	$	(0.01)	$	(0.05)	$	-
Income (loss) attributable to AIG	$	0.43	$	(0.18)	$	1.97	$	3.05
Diluted:
Income (loss) from continuing operations	$	0.42	$	(0.17)	$	1.97	$	2.97
Income (loss) from discontinued operations	$	-	$	(0.01)	$	(0.05)	$	-
Income (loss) attributable to AIG	$	0.42	$	(0.18)	$	1.92	$	2.97

(a) Shares in the diluted EPS calculation represent basic shares for the three-month period ended September 30, 2015 due to the net loss in that period.

EMPLOYEE BENEFITS (Tables)

9 Months Ended

Sep. 30, 2016

Defined Benefit Plan Disclosure [Line Items]

Components of net periodic benefit cost

	Pension						Postretirement
		U.S.		Non-U.S.				U.S.		Non-U.S.
(in millions)		Plans		Plans		Total		Plans		Plans		Total
Three Months Ended September 30, 2016
Components of net periodic benefit cost:
Service cost	$	6	$	8	$	14	$	1	$	-	$	1
Interest cost		45		5		50		2		-		2
Expected return on assets		(72)		(7)		(79)		-		-		-
Amortization of prior service credit		-		-		-		(2)		-		(2)
Amortization of net (gain) loss		7		2		9		(1)		1		-
Curtailment gain		-		(2)		(2)		-		-		-
Net periodic benefit (income) cost	$	(14)	$	6	$	(8)	$	-	$	1	$	1
Three Months Ended September 30, 2015
Components of net periodic benefit cost:
Service cost	$	41	$	10	$	51	$	1	$	-	$	1
Interest cost		54		6		60		2		1		3
Expected return on assets		(74)		(5)		(79)		-		-		-
Amortization of prior service credit		(6)		(1)		(7)		(3)		-		(3)
Amortization of net loss		21		2		23		-		-		-
Curtailment gain		(179)		-		(179)		-		-		-
Net periodic benefit (income) cost	$	(143)	$	12	$	(131)	$	-	$	1	$	1
Nine Months Ended September 30, 2016
Components of net periodic benefit cost:
Service cost	$	15	$	23	$	38	$	2	$	2	$	4
Interest cost		136		15		151		5		2		7
Expected return on assets		(219)		(20)		(239)		-		-		-
Amortization of prior service credit		-		-		-		(7)		-		(7)
Amortization of net (gain) loss		19		6		25		(1)		1		-
Curtailment gain		-		(5)		(5)		-		-		-
Net periodic benefit (income) cost	$	(49)	$	19	$	(30)	$	(1)	$	5	$	4
Nine Months Ended September 30, 2015
Components of net periodic benefit cost:
Service cost	$	144	$	31	$	175	$	4	$	2	$	6
Interest cost		164		18		182		6		2		8
Expected return on assets		(218)		(17)		(235)		-		-		-
Amortization of prior service credit		(22)		(2)		(24)		(8)		-		(8)
Amortization of net loss		86		7		93		-		-		-
Curtailment gain		(179)		(1)		(180)		-		-		-
Net periodic benefit (income) cost	$	(25)	$	36	$	11	$	2	$	4	$	6

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

9 Months Ended

Sep. 30, 2016

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

Condensed Consolidating Balance Sheets

		American
		International					Reclassifications
		Group, Inc.				Other		and	Consolidated
(in millions)	(As Guarantor)			AIGLH		Subsidiaries		Eliminations		AIG
September 30, 2016
Assets:
Short-term investments	$	2,906	$	-	$	12,161	$	(4,322)	$	10,745
Other investments^(a)		7,428		-		328,195		-		335,623
Total investments		10,334		-		340,356		(4,322)		346,368
Cash		217		6		2,275		-		2,498
Loans to subsidiaries^(b)		35,106		-		504		(35,610)		-
Investment in consolidated subsidiaries^(b)		55,878		31,307		-		(87,185)		-
Other assets, including deferred income taxes		24,721		136		138,004		(3,820)		159,041
Assets held for sale		-		-		6,661		-		6,661
Total assets	$	126,256	$	31,449	$	487,800	$	(130,937)	$	514,568
Liabilities:
Insurance liabilities	$	-	$	-	$	278,608	$	-	$	278,608
Long-term debt		22,185		641		9,451		-		32,277
Other liabilities, including intercompany balances^(a)		14,906		55		103,964		(8,316)		110,609
Loans from subsidiaries^(b)		502		-		35,108		(35,610)		-
Liabilities held for sale		-		-		3,909		-		3,909
Total liabilities		37,593		696		431,040		(43,926)		425,403
Total AIG shareholders’ equity		88,663		30,753		56,258		(87,011)		88,663
Non-redeemable noncontrolling interests		-		-		502		-		502
Total equity		88,663		30,753		56,760		(87,011)		89,165
Total liabilities and equity	$	126,256	$	31,449	$	487,800	$	(130,937)	$	514,568

December 31, 2015
Assets:
Short-term investments	$	4,042	$	-	$	9,637	$	(3,547)	$	10,132
Other investments^(a)		7,425		-		320,797		-		328,222
Total investments		11,467		-		330,434		(3,547)		338,354
Cash		34		116		1,479		-		1,629
Loans to subsidiaries^(b)		35,927		-		578		(36,505)		-
Investment in consolidated subsidiaries^(b)		51,151		30,239		-		(81,390)		-
Other assets, including deferred income taxes		23,299		258		135,690		(2,388)		156,859
Total assets	$	121,878	$	30,613	$	468,181	$	(123,830)	$	496,842
Liabilities:
Insurance liabilities	$	-	$	-	$	271,645	$	-	$	271,645
Long-term debt		19,777		704		8,768		-		29,249
Other liabilities, including intercompany balances^(a)		11,869		201		99,777		(6,109)		105,738
Loans from subsidiaries^(b)		574		3		35,928		(36,505)		-
Total liabilities		32,220		908		416,118		(42,614)		406,632
Total AIG shareholders’ equity		89,658		29,705		51,511		(81,216)		89,658
Non-redeemable noncontrolling interests		-		-		552		-		552
Total equity		89,658		29,705		52,063		(81,216)		90,210
Total liabilities and equity	$	121,878	$	30,613	$	468,181	$	(123,830)	$	496,842

(a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment.

(b) Eliminated in consolidation.

Condensed Consolidating Statements of Income (Loss)


		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended September 30, 2016
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	1,002	$	528	$	-	$	(1,530)	$	-
Other income		145		-		12,952		(243)		12,854
Total revenues		1,147		528		12,952		(1,773)		12,854
Expenses:
Interest expense		249		12		69		(1)		329
Loss on extinguishment of debt		-		-		(14)		-		(14)
Other expenses		238		1		11,821		(258)		11,802
Total expenses		487		13		11,876		(259)		12,117
Income (loss) from continuing operations before income tax
expense (benefit)		660		515		1,076		(1,514)		737
Income tax expense (benefit)		197		(4)		111		-		304
Income (loss) from continuing operations		463		519		965		(1,514)		433
Income (loss) from discontinued operations, net of income taxes		(1)		-		4		-		3
Net income (loss)		462		519		969		(1,514)		436
Less:
Net loss from continuing operations attributable to
noncontrolling interests		-		-		(26)		-		(26)
Net income (loss) attributable to AIG	$	462	$	519	$	995	$	(1,514)	$	462
Three Months Ended September 30, 2015
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	717	$	222	$	-	$	(939)	$	-
Other income		(221)		-		13,220		(177)		12,822
Total revenues		496		222		13,220		(1,116)		12,822
Expenses:
Interest expense		254		14		83		(30)		321
Loss on extinguishment of debt		345		-		1		-		346
Other expenses		352		-		12,064		(146)		12,270
Total expenses		951		14		12,148		(176)		12,937
Income (loss) from continuing operations before income tax
expense (benefit)		(455)		208		1,072		(940)		(115)
Income tax expense (benefit)		(224)		(6)		295		-		65
Income (loss) from continuing operations		(231)		214		777		(940)		(180)
Loss from discontinued operations, net of income taxes		-		-		(17)		-		(17)
Net income (loss)		(231)		214		760		(940)		(197)
Less:
Net income from continuing operations attributable to
noncontrolling interests		-		-		34		-		34
Net income (loss) attributable to AIG	$	(231)	$	214	$	726	$	(940)	$	(231)


		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Nine Months Ended September 30, 2016
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	2,226	$	(267)	$	-	$	(1,959)	$	-
Other income		209		5		39,833		(690)		39,357
Total revenues		2,435		(262)		39,833		(2,649)		39,357
Expenses:
Interest expense		743		39		177		(4)		955
Loss on extinguishment of debt		77		-		(1)		-		76
Other expenses		686		15		34,946		(702)		34,945
Total expenses		1,506		54		35,122		(706)		35,976
Income (loss) from continuing operations before income tax
expense (benefit)		929		(316)		4,711		(1,943)		3,381
Income tax expense (benefit)		(1,265)		(17)		2,452		-		1,170
Income (loss) from continuing operations		2,194		(299)		2,259		(1,943)		2,211
Loss from discontinued operations, net of income taxes		(2)		-		(52)		-		(54)
Net income (loss)		2,192		(299)		2,207		(1,943)		2,157
Less:
Net loss from continuing operations attributable to
noncontrolling interests		-		-		(35)		-		(35)
Net income (loss) attributable to AIG	$	2,192	$	(299)	$	2,242	$	(1,943)	$	2,192
Nine Months Ended September 30, 2015
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	5,793	$	1,744	$	-	$	(7,537)	$	-
Other income		(57)		-		45,050		(497)		44,496
Total revenues		5,736		1,744		45,050		(8,034)		44,496
Expenses:
Interest expense		810		44		213		(90)		977
Loss on extinguishment of debt		703		-		46		7		756
Other expenses		899		42		36,016		(407)		36,550
Total expenses		2,412		86		36,275		(490)		38,283
Income (loss) from continuing operations before income tax
expense (benefit)		3,324		1,658		8,775		(7,544)		6,213
Income tax expense (benefit)		(714)		(69)		2,925		-		2,142
Income (loss) from continuing operations		4,038		1,727		5,850		(7,544)		4,071
Income (loss) from discontinued operations, net of income taxes		(1)		-		1		-		-
Net income (loss)		4,037		1,727		5,851		(7,544)		4,071
Less:
Net income from continuing operations attributable to
noncontrolling interests		-		-		34		-		34
Net income (loss) attributable to AIG	$	4,037	$	1,727	$	5,817	$	(7,544)	$	4,037

* Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income (Loss)

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended September 30, 2016
Net income (loss)	$	462	$	519	$	969	$	(1,514)	$	436
Other comprehensive income (loss)		798		(56)		7		49		798
Comprehensive income (loss)		1,260		463		976		(1,465)		1,234
Total comprehensive loss attributable to noncontrolling interests		-		-		(26)		-		(26)
Comprehensive income (loss) attributable to AIG	$	1,260	$	463	$	1,002	$	(1,465)	$	1,260
Three Months Ended September 30, 2015
Net income (loss)	$	(231)	$	214	$	760	$	(940)	$	(197)
Other comprehensive income (loss)		(1,063)		(548)		187		360		(1,064)
Comprehensive income (loss)		(1,294)		(334)		947		(580)		(1,261)
Total comprehensive income attributable to noncontrolling interests		-		-		33		-		33
Comprehensive income (loss) attributable to AIG	$	(1,294)	$	(334)	$	914	$	(580)	$	(1,294)
Nine Months Ended September 30, 2016
Net income (loss)	$	2,192	$	(299)	$	2,207	$	(1,943)	$	2,157
Other comprehensive income (loss)		6,520		7,204		48,555		(55,759)		6,520
Comprehensive income (loss)		8,712		6,905		50,762		(57,702)		8,677
Total comprehensive loss attributable to noncontrolling interests		-		-		(35)		-		(35)
Comprehensive income (loss) attributable to AIG	$	8,712	$	6,905	$	50,797	$	(57,702)	$	8,712
Nine Months Ended September 30, 2015
Net income (loss)	$	4,037	$	1,727	$	5,851	$	(7,544)	$	4,071
Other comprehensive income (loss)		(4,060)		3,942		52,820		(56,766)		(4,064)
Comprehensive income (loss)		(23)		5,669		58,671		(64,310)		7
Total comprehensive income attributable to noncontrolling interests		-		-		30		-		30
Comprehensive income (loss) attributable to AIG	$	(23)	$	5,669	$	58,641	$	(64,310)	$	(23)

Condensed Consolidating Statements of Cash Flows

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries^*		Eliminations^*		AIG
Nine Months Ended September 30, 2016
Net cash (used in) provided by operating activities	$	1,671	$	1,664	$	2,277	$	(3,859)	$	1,753
Cash flows from investing activities:
Sales of investments		3,242		-		59,669		(9,567)		53,344
Purchase of investments		(659)		-		(62,293)		9,567		(53,385)
Loans to subsidiaries - net		1,025		-		73		(1,098)		-
Contributions from (to) subsidiaries - net		1,593		-		-		(1,593)		-
Net change in restricted cash		-		-		(49)		-		(49)
Net change in short-term investments		1,006		-		(1,861)		-		(855)
Other, net		(179)		-		1,449		-		1,270
Net cash (used in) provided by investing activities		6,028		-		(3,012)		(2,691)		325
Cash flows from financing activities:
Issuance of long-term debt		3,831		-		7,599		-		11,430
Repayments of long-term debt		(1,454)		(62)		(6,167)		-		(7,683)
Purchase of common stock		(8,506)		-		-		-		(8,506)
Intercompany loans - net		(73)		(3)		(1,022)		1,098		-
Cash dividends paid		(1,051)		(1,709)		(2,150)		3,859		(1,051)
Other, net		(263)		-		3,183		1,593		4,513
Net cash (used in) provided by financing activities		(7,516)		(1,774)		1,443		6,550		(1,297)
Effect of exchange rate changes on cash		-		-		88		-		88
Change in cash		183		(110)		796		-		869
Cash at beginning of year		34		116		1,479		-		1,629
Cash at end of period	$	217	$	6	$	2,275	$	-	$	2,498

Nine Months Ended September 30, 2015
Net cash (used in) provided by operating activities	$	3,675	$	1,386	$	508	$	(3,335)	$	2,234
Cash flows from investing activities:
Sales of investments		5,610		-		52,234		(3,363)		54,481
Purchase of investments		(1,373)		-		(49,465)		3,363		(47,475)
Loans to subsidiaries - net		(1,227)		-		2,690		(1,463)		-
Contributions from (to) subsidiaries - net		-		-		-		-		-
Net change in restricted cash		-		-		1,476		-		1,476
Net change in short-term investments		1,940		-		(2,968)		-		(1,028)
Other, net		(4)		-		(770)		-		(774)
Net cash (used in) provided by investing activities		4,946		-		3,197		(1,463)		6,680

Cash flows from financing activities:
Issuance of long-term debt		5,540		-		909		-		6,449
Repayments of long-term debt		(5,728)		(115)		(2,500)		-		(8,343)
Purchase of common stock		(7,473)		-		-		-		(7,473)
Intercompany loans - net		(236)		-		(1,227)		1,463		-
Cash dividends paid		(687)		(1,359)		(1,976)		3,335		(687)
Other, net		(43)		-		1,033		-		990
Net cash (used in) provided by financing activities		(8,627)		(1,474)		(3,761)		4,798		(9,064)
Effect of exchange rate changes on cash		-		-		(39)		-		(39)
Change in cash		(6)		(88)		(95)		-		(189)
Cash at beginning of year		26		91		1,641		-		1,758
Cash at end of period	$	20	$	3	$	1,546	$	-	$	1,569

Supplementary Disclosure of Condensed Consolidating Cash Flow Information

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries^*		Eliminations^*		AIG
Cash (paid) received during the 2016 period for:
Interest:
Third party	$	(797)	$	(51)	$	(161)	$	-	$	(1,009)
Intercompany		-		-		-		-		-
Taxes:
Income tax authorities	$	(11)	$	-	$	(197)	$	-	$	(208)
Intercompany		782		-		(782)		-		-
Cash (paid) received during the 2015 period for:
Interest:
Third party	$	(846)	$	(57)	$	(209)	$	-	$	(1,112)
Intercompany		-		-		-		-		-
Taxes:
Income tax authorities	$	(17)	$	-	$	(389)	$	-	$	(406)
Intercompany		1,769		-		(1,769)		-		-

Supplementary disclosure of non-cash activities

Nine Months Ended September 30,
(in millions)		2016		2015
Intercompany non-cash financing and investing activities:
Capital contributions	$	3,086	$	111
Dividends received in the form of securities		4,055		1,997
Fixed maturity securities received in exchange for equity securities		440		-
Non-cash financing/investing activities:
Consideration received from sale of shares of AerCap		-		500

BASIS OF PRESENTATION (Details) $ / shares in Units, shares in Millions, $ in Millions		1 Months Ended		3 Months Ended		9 Months Ended
	May 14, 2014 USD ($) shares	Aug. 31, 2015 USD ($) shares	Jun. 30, 2015 USD ($) shares	Sep. 30, 2016 USD ($) item $ / shares	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) item $ / shares	Sep. 30, 2015 USD ($)	Aug. 31, 2016 USD ($)	Dec. 31, 2015 $ / shares	May 13, 2014 $ / shares
Basis of Presentation [Line Items]
Common stock, par value (in dollars per share) \| $ / shares				$ 2.5		$ 2.5			$ 2.5
Investment Maturity Year			2045
Interest rate (as a percent)					6.50%		6.50%
Net income (loss) on sale of properties and divested businesses				$ 128	$ (3)	$ 351	$ (10)
Call Option [Member]
Basis of Presentation [Line Items]
Investment Maturity Year			2025
ILFC
Basis of Presentation [Line Items]
Percentage of common stock agreed to be sold	100.00%
Number of shares received \| shares	97.6
Total consideration	$ 7,600
NSM
Basis of Presentation [Line Items]
Total consideration								$ 201
Net income (loss) on sale of properties and divested businesses				$ 105
Minimum
Basis of Presentation [Line Items]
Number of Countries in which the entity operates \| item				100		100
Aer Cap
Basis of Presentation [Line Items]
Closing price per share (in dollars per share) \| $ / shares										$ 47.01
Equity Method Investment Number Of Shares Sold \| shares			86.9
Cash Proceeds from Sales of AerCap		$ 500	$ 3,700
Ordinary shares of AerCap remaining \| shares		10.7
Aer Cap \| Private Placement [Member]
Basis of Presentation [Line Items]
Equity Method Investment Number Of Shares Sold \| shares			15.7
Cash Proceeds from Sales of AerCap			$ 250
Non-cash consideration received from sale			$ 500
Aer Cap \| Underwritten Public Offering [Member]
Basis of Presentation [Line Items]
Equity Method Investment Number Of Shares Sold \| shares			71.2
Cash Proceeds from Sales of AerCap			$ 3,400

SEGMENT INFORMATION (Details - Continuing operations by reportable segment) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) segment	Sep. 30, 2015 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			2
Total Revenues	$ 12,854	$ 12,822	$ 39,357	$ 44,496
Revenues and pre-tax income	737	(115)	3,381	6,213
Operating segments \| Consumer Insurance \| Retirement
Segment Reporting Information [Line Items]
Total Revenues	2,084	2,203	6,407	7,056
Revenues and pre-tax income	1,108	635	2,310	2,239
Operating segments \| Consumer Insurance \| Life
Segment Reporting Information [Line Items]
Total Revenues	1,662	1,578	4,949	4,823
Revenues and pre-tax income	98	(40)	387	280
Operating segments \| Consumer Insurance \| Personal Insurance
Segment Reporting Information [Line Items]
Total Revenues	2,982	2,871	8,718	8,602
Revenues and pre-tax income	178	62	579	106
Reportable Segments \| Commercial Insurance
Segment Reporting Information [Line Items]
Total Revenues	5,460	5,750	16,376	17,993
Revenues and pre-tax income	729	592	2,306	2,990
Reportable Segments \| Consumer Insurance
Segment Reporting Information [Line Items]
Total Revenues	6,728	6,652	20,074	20,481
Revenues and pre-tax income	1,384	657	3,276	2,625
Corporate and Other
Segment Reporting Information [Line Items]
Total Revenues	1,557	911	3,959	5,338
Revenues and pre-tax income	(522)	(396)	(1,411)	697
Consolidation and Eliminations
Segment Reporting Information [Line Items]
Total Revenues	(149)	(134)	(507)	(408)
Revenues and pre-tax income	21	(5)	15	(69)
Total Operating Segments, Corporate and Other, And Consolidation and Elimination
Segment Reporting Information [Line Items]
Total Revenues	13,596	13,179	39,902	43,404
Revenues and pre-tax income	$ 1,612	$ 848	$ 4,186	$ 6,243

SEGMENT INFORMATION (Details - Continuing operations by reportable segment - Pretax operating income to pre-tax income)) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income:
Gain (Loss) on extinguishment of debt	$ 14	$ (346)	$ (76)	$ (756)
Revenues and pre-tax income	737	(115)	3,381	6,213
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income \| Revenue
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income:
Changes in fair values of securities used to hedge guaranteed living benefits	17	4	270	(39)
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains	0	0	0	0
Gain (Loss) on extinguishment of debt	0	0	0	0
Net realized capital gains (losses)	(765)	(342)	(829)	1,125
Net gain (loss) on sale of divested businesses	0	0	0	(48)
Non-operating litigation reserves and settlements	1	0	42	91
Reserve development related to non-operating run-off insurance business	0	0	0	0
Restructuring and other costs	0	0	0	0
Other	5	(19)	(28)	(37)
Revenues and pre-tax income	12,854	12,822	39,357	44,496
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income \| Pre-Tax Operating Income (loss)
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income:
Changes in fair values of securities used to hedge guaranteed living benefits	17	4	270	(39)
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains	(67)	(2)	(91)	(84)
Other income (expense) - net	3		15
Gain (Loss) on extinguishment of debt	14	(346)	(76)	(756)
Net realized capital gains (losses)	(765)	(342)	(829)	1,125
Net gain (loss) on sale of divested businesses	128	(3)	351	(58)
Non-operating litigation reserves and settlements	5	30	43	86
Reserve development related to non-operating run-off insurance business	0	(30)	0	(30)
Restructuring and other costs	(210)	(274)	(488)	(274)
Other	0		0
Revenues and pre-tax income	$ 737	$ (115)	$ 3,381	$ 6,213

HELD-FOR-SALE CLASSIFICATION (Details) - USD ($)	Sep. 16, 2016	Aug. 15, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Assets:
Mortgage and other loans receivable, net			$ 32,413,000,000	$ 29,565,000,000
Other invested assets			25,747,000,000	29,794,000,000
Short-term investments			10,745,000,000	10,132,000,000
Cash			2,498,000,000	1,629,000,000	$ 1,569,000,000	$ 1,758,000,000
Premiums and other receivables, net of allowance			11,606,000,000	11,451,000,000
Deferred policy acquisition costs			10,537,000,000	11,115,000,000
Other assets			11,546,000,000	11,289,000,000
Total assets held for sale			6,661,000,000
Liabilities:
Liability for unpaid losses and loss adjustment expenses			72,487,000,000	74,942,000,000
Unearned premiums			21,047,000,000	21,318,000,000
Long-term Debt			32,277,000,000	29,249,000,000
Other Liabilities			27,983,000,000	$ 26,164,000,000
Total liabilities held for sale			3,909,000,000
Held for sale [Member]
Assets:
Fixed maturity securities			4,233,000,000
Mortgage and other loans receivable, net			1,000,000
Other invested assets			1,006,000,000
Short-term investments			212,000,000
Cash			80,000,000
Premiums and other receivables, net of allowance			357,000,000
Deferred policy acquisition costs			179,000,000
Other assets			593,000,000
Total assets held for sale			6,661,000,000
Liabilities:
Liability for unpaid losses and loss adjustment expenses			1,074,000,000
Unearned premiums			1,164,000,000
Long-term Debt			1,160,000,000
Other Liabilities			511,000,000
Total liabilities held for sale			$ 3,909,000,000
United Guaranty \| Held for sale [Member]
Held-for-Sale Classification
Voting interest in subsidiary, Percent		100.00%
Total consideration		$ 3,400,000,000
Consideration in cash		2,200,000,000
Dividend-in-lieu		250,000,000
United Guaranty \| Held for sale [Member] \| Preferred Stock [Member]
Held-for-Sale Classification
Non-cash consideration received from sale		250,000,000
United Guaranty \| Held for sale [Member] \| Convertible Preferred Stock [Member]
Held-for-Sale Classification
Non-cash consideration received from sale		$ 975,000,000
Ascot \| Held for sale [Member]
Held-for-Sale Classification
Voting interest in subsidiary, Percent	100.00%
Total consideration	$ 1,100,000,000
Consideration in cash	$ 240,000,000
Ownership reflecting consideration, Percent	20.00%

FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	$ 260,649		$ 260,649		$ 248,245
Other bond securities	14,772		14,772		16,782
Equity securities available for sale	1,544		1,544		2,915
Other equity securities	498		498		921
Other invested assets	7,092		7,092		8,912
Derivative Assets, Fair Value	5,780		5,780		4,131
Derivative assets, Counterparty netting	(2,289)		(2,289)		(1,268)
Derivative assets, Cash collateral	(1,358)		(1,358)		(1,554)
Short-term investments, portion measured at fair value	2,724		2,724		2,591
Separate account assets, at fair value	82,626		82,626		79,574
Other assets	2,133		2,133		1,309
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	4,049		4,049		2,325
Other policyholder funds	4,418		4,418		4,212
Derivative Liabilities, Fair Value	5,590		5,590		4,048
Derivative liabilities, Counterparty netting	(2,289)		(2,289)		(1,268)
Derivative liabilities, Cash collateral	(482)		(482)		(760)
Long-term debt, portion measured at fair value	3,664		3,664		3,670
Other liabilities	2,894		2,894		2,082
U.S. government and government sponsored entities
Fair Value, Liabilities Measured on Recurring Basis
Assets transferred from Level 1 to Level 2	18	$ 0	34	$ 180
Non-U.S. government
Fair Value, Liabilities Measured on Recurring Basis
Assets transferred from Level 1 to Level 2	635	188	946	450
Recurring Basis
Fair Value, Liabilities Measured on Recurring Basis
Assets transferred from Level 2 to Level 1	0	$ 0	0	$ 0
Recurring Basis \| Level 1
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	180		180		683
Other bond securities	140		140		0
Equity securities available for sale	1,539		1,539		2,914
Other equity securities	498		498		906
Mortgage and other loans receivable	0		0
Other invested assets	0		0		2
Derivative Assets, Fair Value	118		118		91
Short-term investments, portion measured at fair value	1,936		1,936		1,416
Separate account assets, at fair value	77,016		77,016		73,699
Other assets	0		0
Fair value assets measured on recurring basis, total	81,427		81,427		79,711
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	0		0		0
Other policyholder funds	6		6		6
Derivative Liabilities, Fair Value	0		0		0
Long-term debt, portion measured at fair value	0		0		0
Other liabilities	75		75		0
Fair value liabilities measured on recurring basis, total	81		81		6
Recurring Basis \| Level 1 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 1 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 1 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	118		118		91
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 1 \| Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 1 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 1 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 1 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	1		1		0
Other bond securities	140		140		0
Recurring Basis \| Level 1 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 1 \| Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	179		179		683
Other bond securities	0		0		0
Recurring Basis \| Level 1 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 1 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 1 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 1 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 1 \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	1,230		1,230		2,401
Recurring Basis \| Level 1 \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	18		18		22
Recurring Basis \| Level 1 \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	291		291		491
Recurring Basis \| Level 2
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	229,923		229,923		218,745
Other bond securities	7,077		7,077		7,936
Equity securities available for sale	5		5		1
Other equity securities	0		0		1
Mortgage and other loans receivable	0		0
Other invested assets	1		1		1
Derivative Assets, Fair Value	5,583		5,583		3,950
Short-term investments, portion measured at fair value	788		788		1,175
Separate account assets, at fair value	5,610		5,610		5,875
Other assets	0		0		0
Fair value assets measured on recurring basis, total	248,987		248,987		237,684
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	27		27		36
Other policyholder funds	0		0		0
Derivative Liabilities, Fair Value	5,069		5,069		3,402
Long-term debt, portion measured at fair value	3,594		3,594		3,487
Other liabilities	0		0		62
Fair value liabilities measured on recurring basis, total	8,690		8,690		6,987
Recurring Basis \| Level 2 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	4,289		4,289		3,150
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	3,667		3,667		2,137
Recurring Basis \| Level 2 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	1,144		1,144		766
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	1,400		1,400		1,197
Recurring Basis \| Level 2 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	150		150		32
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	2		2		68
Recurring Basis \| Level 2 \| Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 2 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 2 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		2
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 2 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	2,222		2,222		1,844
Other bond securities	3,207		3,207		3,369
Recurring Basis \| Level 2 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	24,287		24,287		25,199
Other bond securities	0		0		75
Recurring Basis \| Level 2 \| Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	20,508		20,508		17,480
Other bond securities	54		54		50
Recurring Basis \| Level 2 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	140,187		140,187		134,618
Other bond securities	1,955		1,955		2,018
Recurring Basis \| Level 2 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	20,606		20,606		19,690
Other bond securities	451		451		649
Recurring Basis \| Level 2 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	12,808		12,808		10,986
Other bond securities	451		451		557
Recurring Basis \| Level 2 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	9,305		9,305		8,928
Other bond securities	959		959		1,218
Recurring Basis \| Level 2 \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	2		2		0
Recurring Basis \| Level 2 \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	0		0		0
Recurring Basis \| Level 2 \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	3		3		1
Recurring Basis \| Level 3
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	30,546		30,546		28,817
Other bond securities	7,555		7,555		8,846
Equity securities available for sale	0		0		0
Other equity securities	0		0		14
Mortgage and other loans receivable	11		11		11
Other invested assets	256		256		332
Derivative Assets, Fair Value	79		79		90
Short-term investments, portion measured at fair value	0		0		0
Separate account assets, at fair value	0		0
Other assets	0		0
Fair value assets measured on recurring basis, total	38,447		38,447		38,110
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	4,022		4,022		2,289
Other policyholder funds	0		0		0
Derivative Liabilities, Fair Value	521		521		646
Long-term debt, portion measured at fair value	70		70		183
Other liabilities	0		0		0
Fair value liabilities measured on recurring basis, total	4,613		4,613		3,118
Recurring Basis \| Level 3 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		12
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	52		52		62
Recurring Basis \| Level 3 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	1		1		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	10		10		7
Recurring Basis \| Level 3 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	54		54		54
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 3 \| Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Level 3 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	2		2		3
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	347		347		508
Recurring Basis \| Level 3 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	22		22		21
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	112		112		69
Recurring Basis \| Level 3 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 3 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	2,291		2,291		2,124
Other bond securities	0		0		0
Recurring Basis \| Level 3 \| Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	19		19		32
Other bond securities	0		0		0
Recurring Basis \| Level 3 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	1,017		1,017		1,370
Other bond securities	19		19		17
Recurring Basis \| Level 3 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	17,209		17,209		16,537
Other bond securities	1,396		1,396		1,581
Recurring Basis \| Level 3 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	2,265		2,265		2,585
Other bond securities	159		159		193
Recurring Basis \| Level 3 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	7,745		7,745		6,169
Other bond securities	5,981		5,981		7,055
Recurring Basis \| Level 3 \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	0		0		0
Recurring Basis \| Level 3 \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	0		0		0
Recurring Basis \| Level 3 \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	0		0		0
Recurring Basis \| Counterparty Netting
Fair Value, Assets Measured on Recurring Basis
Other bond securities	0		0
Equity securities available for sale	0		0
Other equity securities	0		0
Other invested assets	0		0
Derivative assets, Counterparty netting	(2,289)		(2,289)		(1,268)
Separate account assets, at fair value	0		0
Other assets	0		0
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	0		0
Derivative liabilities, Counterparty netting	(2,289)		(2,289)		(1,268)
Long-term debt, portion measured at fair value	0		0
Other liabilities	0		0
Recurring Basis \| Counterparty Netting \| Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, Counterparty netting	(2,289)		(2,289)		(1,268)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, Counterparty netting	(2,289)		(2,289)		(1,268)
Recurring Basis \| Cash Collateral
Fair Value, Assets Measured on Recurring Basis
Other bond securities	0		0
Equity securities available for sale	0		0
Other equity securities	0		0
Other invested assets	0		0
Derivative assets, Cash collateral	(1,358)		(1,358)		(1,554)
Separate account assets, at fair value	0		0
Other assets	0		0
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	0		0
Derivative liabilities, Cash collateral	(482)		(482)		(760)
Long-term debt, portion measured at fair value	0		0
Other liabilities	0		0
Recurring Basis \| Cash Collateral \| Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, Cash collateral	(1,358)		(1,358)		(1,554)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, Cash collateral	(482)		(482)		(760)
Recurring Basis \| Total Fair Value
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	260,649		260,649		248,245
Other bond securities	14,772		14,772		16,782
Equity securities available for sale	1,544		1,544		2,915
Other equity securities	498		498		921
Mortgage and other loans receivable	11		11		11
Other invested assets	257		257		335
Derivative Assets, Fair Value	2,133		2,133		1,309
Short-term investments, portion measured at fair value	2,724		2,724		2,591
Separate account assets, at fair value	82,626		82,626		79,574
Other assets					0
Fair value assets measured on recurring basis, total	365,214		365,214		352,683
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	4,049		4,049		2,325
Other policyholder funds	6		6		6
Derivative Liabilities, Fair Value	2,819		2,819		2,020
Long-term debt, portion measured at fair value	3,664		3,664		3,670
Other liabilities	75		75		62
Fair value liabilities measured on recurring basis, total	10,613		10,613		8,083
Recurring Basis \| Total Fair Value \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	4,289		4,289		3,162
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	3,719		3,719		2,199
Recurring Basis \| Total Fair Value \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	1,145		1,145		766
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	1,410		1,410		1,204
Recurring Basis \| Total Fair Value \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	322		322		177
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	2		2		68
Recurring Basis \| Total Fair Value \| Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0		0		0
Recurring Basis \| Total Fair Value \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	2		2		3
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	347		347		508
Recurring Basis \| Total Fair Value \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	22		22		23
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	112		112		69
Recurring Basis \| Total Fair Value \| Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	(3,647)		(3,647)		(2,822)
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	(2,771)		(2,771)		(2,028)
Recurring Basis \| Total Fair Value \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	2,223		2,223		1,844
Other bond securities	3,347		3,347		3,369
Recurring Basis \| Total Fair Value \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	26,578		26,578		27,323
Other bond securities	0		0		75
Recurring Basis \| Total Fair Value \| Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	20,706		20,706		18,195
Other bond securities	54		54		50
Recurring Basis \| Total Fair Value \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	141,204		141,204		135,988
Other bond securities	1,974		1,974		2,035
Recurring Basis \| Total Fair Value \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	37,815		37,815		36,227
Other bond securities	1,847		1,847		2,230
Recurring Basis \| Total Fair Value \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	15,073		15,073		13,571
Other bond securities	610		610		750
Recurring Basis \| Total Fair Value \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	17,050		17,050		15,097
Other bond securities	6,940		6,940		8,273
Recurring Basis \| Total Fair Value \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	1,232		1,232		2,401
Recurring Basis \| Total Fair Value \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	18		18		22
Recurring Basis \| Total Fair Value \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	$ 294		$ 294		$ 492

FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issues and settlements) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, Sales, Issues and Settlements, Net, assets	$ (20)	$ (638)	$ (415)	$ (1,984)
Transfers into Level 3 at end of reporting period, net gains (losses) not included in realized and unrealized gains and losses related to Level 3 for the period	0	17	11	35
Transfers out Level 3 at end of reporting period, net gains (losses) included in realized and unrealized gains and losses related to Level 3 for the period.	3	3	54	6
Liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	(2)	(1)	(5)	(18)
Sales, liabilities	95	122	365	307
Settlements, liabilities	(104)	31	(199)	(228)
Purchases, Sales, Issues and Settlements, Net, liabilities	(11)	152	161	61
Policyholder contract deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	0	0	0	0
Sales, liabilities	95	122	365	307
Settlements, liabilities	(128)	24	(140)	23
Purchases, Sales, Issues and Settlements, Net, liabilities	(33)	146	225	330
Derivative liabilities, net
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	(2)	(1)	(5)	(18)
Sales, liabilities	0	0	0	0
Settlements, liabilities	24	7	(56)	(233)
Purchases, Sales, Issues and Settlements, Net, liabilities	22	6	(61)	(251)
Long-term debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Settlements, liabilities	0	0	(3)	(18)
Purchases, Sales, Issues and Settlements, Net, liabilities	0	0	(3)	(18)
Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	1,844	954	4,965	4,345
Sales, assets	(497)	(50)	(791)	(1,574)
Settlements, assets	(1,367)	(1,542)	(4,589)	(4,755)
Purchases, Sales, Issues and Settlements, Net, assets	(20)	(638)	(415)	(1,984)
Bonds available for sale
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	1,811	729	4,689	3,558
Sales, assets	(69)	(39)	(228)	(514)
Settlements, assets	(1,125)	(1,061)	(3,405)	(3,309)
Purchases, Sales, Issues and Settlements, Net, assets	617	(371)	1,056	(265)
Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	98	35	144	258
Sales, assets	0	0	(7)	(22)
Settlements, assets	(40)	(19)	(86)	(62)
Purchases, Sales, Issues and Settlements, Net, assets	58	16	51	174
Bonds available for sale \| Non-U.S. government
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	7	3	10	11
Sales, assets	0	(1)	0	(1)
Settlements, assets	(4)	(3)	(5)	(7)
Purchases, Sales, Issues and Settlements, Net, assets	3	(1)	5	3
Bonds available for sale \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	32	29	220
Sales, assets	0	0	(25)	(60)
Settlements, assets	(6)	(95)	(46)	(369)
Purchases, Sales, Issues and Settlements, Net, assets	(6)	(63)	(42)	(209)
Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	754	449	2,297	1,856
Sales, assets	(23)	(29)	(81)	(194)
Settlements, assets	(896)	(772)	(2,553)	(2,090)
Purchases, Sales, Issues and Settlements, Net, assets	(165)	(352)	(337)	(428)
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	50	50	156	192
Sales, assets	(24)	0	(82)	(27)
Settlements, assets	(27)	0	(243)	(68)
Purchases, Sales, Issues and Settlements, Net, assets	(1)	50	(169)	97
Bonds available for sale \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	902	160	2,053	1,021
Sales, assets	(22)	(9)	(33)	(210)
Settlements, assets	(152)	(172)	(472)	(713)
Purchases, Sales, Issues and Settlements, Net, assets	728	(21)	1,548	98
Other bond securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	12	228	223	763
Sales, assets	(428)	(11)	(561)	(471)
Settlements, assets	(225)	(471)	(1,100)	(1,406)
Purchases, Sales, Issues and Settlements, Net, assets	(641)	(254)	(1,438)	(1,114)
Other bond securities \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0			0
Sales, assets	0			0
Settlements, assets	0		(1)	0
Purchases, Sales, Issues and Settlements, Net, assets	0	0	(1)	0
Other bond securities \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	12	218	101	527
Sales, assets	(74)	(6)	(100)	(16)
Settlements, assets	(58)	(43)	(175)	(122)
Purchases, Sales, Issues and Settlements, Net, assets	(120)	169	(174)	389
Other bond securities \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0	53	0
Sales, assets	(14)	0	(85)	(79)
Settlements, assets	(1)	(8)	(6)	(83)
Purchases, Sales, Issues and Settlements, Net, assets	(15)	(8)	(38)	(162)
Other bond securities \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	10	69	236
Sales, assets	(340)	(5)	(376)	(376)
Settlements, assets	(166)	(420)	(918)	(1,201)
Purchases, Sales, Issues and Settlements, Net, assets	(506)	(415)	(1,225)	(1,341)
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0	0	0
Sales, assets	0	0	0	(2)
Settlements, assets	0	0	0	(1)
Purchases, Sales, Issues and Settlements, Net, assets	0	0	0	(3)
Other equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets			14
Settlements, assets	(14)		(28)
Purchases, Sales, Issues and Settlements, Net, assets	(14)		(14)
Mortgage and other loans receivable, net of allowance
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets		5		5
Sales, assets		0		0
Settlements, assets	0	0	0	0
Purchases, Sales, Issues and Settlements, Net, assets	0	5	0	5
Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	21	(8)	39	19
Sales, assets	0	0	(2)	(587)
Settlements, assets	(3)	(10)	(56)	(39)
Purchases, Sales, Issues and Settlements, Net, assets	$ 18	$ (18)	$ (19)	$ (607)

FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets)) - Discounted cash flow - Level 3 - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Corporate debt
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 625	$ 642
Corporate debt \| Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	2.90%	5.63%
Corporate debt \| Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	8.34%	12.45%
Corporate debt \| Weighted-average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	5.62%	9.04%
Residential mortgage-backed securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 17,369	$ 17,280
Residential mortgage-backed securities \| Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	2.79%	3.13%
Constant prepayment rate	1.37%	0.99%
Loss severity	49.30%	47.21%
Constant default rate	3.51%	3.49%
Residential mortgage-backed securities \| Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	5.53%	6.14%
Constant prepayment rate	8.78%	8.95%
Loss severity	80.09%	79.50%
Constant default rate	8.83%	9.04%
Residential mortgage-backed securities \| Weighted-average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	4.16%	4.63%
Constant prepayment rate	5.07%	4.97%
Loss severity	64.69%	63.35%
Constant default rate	6.17%	6.26%
Certain CDO/ABS
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 4,049	$ 3,338
Certain CDO/ABS \| Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	3.00%	3.41%
Certain CDO/ABS \| Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	5.34%	4.98%
Certain CDO/ABS \| Weighted-average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	4.17%	4.19%
Commercial mortgage backed securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,939	$ 2,388
Commercial mortgage backed securities \| Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	0.00%	0.00%
Commercial mortgage backed securities \| Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	13.78%	17.65%
Commercial mortgage backed securities \| Weighted-average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	6.20%	6.62%
Obligations of states, municipalities and political subdivisions
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,460	$ 1,217
Obligations of states, municipalities and political subdivisions \| Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	3.46%	4.32%
Obligations of states, municipalities and political subdivisions \| Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	4.29%	5.10%
Obligations of states, municipalities and political subdivisions \| Weighted-average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	3.87%	4.71%

FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) - Discounted cash flow - Level 3 - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Index Annuities
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 907	$ 715
Index Annuities \| Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Mortality multiplier	101.00%	50.00%
Lapse rates	1.00%	0.75%
Index Annuities \| Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Mortality multiplier	103.00%	75.00%
Lapse rates	66.00%	66.00%
Index Life
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 352	$ 332
Index Life \| Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Base lapse rates	2.00%	2.00%
Mortality rates	0.00%	0.00%
Index Life \| Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Base lapse rates	19.00%	19.00%
Mortality rates	40.00%	40.00%
GMWB and GMAB
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 2,793	$ 1,234
Utilization rates	100.00%
GMWB and GMAB \| Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Equity volatility	12.00%	15.00%
Base lapse rates	0.50%	1.00%
Dynamic lapse rates	30.00%	0.20%
Mortality multiplier	42.00%	80.00%
Utilization rates		0.00%
Equity/Interest-rate Correlation	20.00%	20.00%
GMWB and GMAB \| Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Equity volatility	12.00%	50.00%
Base lapse rates	20.00%	17.00%
Dynamic lapse rates	170.00%	25.50%
Mortality multiplier	161.00%	104.27%
Utilization rates		70.00%
Equity/Interest-rate Correlation	40.00%	40.00%

FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	$ 6,835	$ 8,577
Unfunded Commitments	1,127	1,003
Private equity funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	2,279	2,631
Unfunded Commitments	$ 1,096	970
Average original expected lives	10 years
Second investment redemption notice period	2 years
Private equity funds \| Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Average original expected lives	2 years
Private equity funds \| Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Average original expected lives	1 year
Private equity funds \| Expected remaining lives of less than 3 years
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	75.00%
Private equity funds \| Expected remaining lives of less than 3 years \| Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
First threshold level of remaining lives	3 years
Private equity funds \| Expected remaining lives of 4 to 6 years
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	11.00%
Private equity funds \| Expected remaining lives of 4 to 6 years \| Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Second threshold level of remaining lives	6 years
Private equity funds \| Expected remaining lives of 4 to 6 years \| Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Second threshold level of remaining lives	4 years
Private equity funds \| Expected remaining lives of 7 to 10 years
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	14.00%
Private equity funds \| Expected remaining lives of 7 to 10 years \| Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Third threshold level of remaining lives	10 years
Private equity funds \| Expected remaining lives of 7 to 10 years \| Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Third threshold level of remaining lives	7 years
Leveraged buyout
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	$ 1,486	1,774
Unfunded Commitments	595	436
Real Estate / Infrastructure
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	267	306
Unfunded Commitments	190	213
Venture capital
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	92	107
Unfunded Commitments	32	41
Distressed
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	124	146
Unfunded Commitments	44	41
Other..
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	310	298
Unfunded Commitments	235	239
Hedge funds:
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	4,556	5,946
Unfunded Commitments	$ 31	33
Hedge fund investments redeemable monthly (as a percent)	14.00%
Hedge fund investments redeemable quarterly (as a percent)	40.00%
Hedge fund investments redeemable semi-annually (as a percent)	12.00%
Hedge fund investments redeemable annually (as a percent)	34.00%
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	73.00%
Hedge funds: \| Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investment redemption notice period (in days/years)	180 days
Hedge funds: \| Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investment redemption notice period (in days/years)	1 day
Event-driven
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	$ 652	1,194
Unfunded Commitments	0	0
Long-short
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	2,264	2,978
Unfunded Commitments	24	25
Macro
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	579	555
Unfunded Commitments	0	0
Distressed
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	620	699
Unfunded Commitments	7	8
Emerging markets
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	307	353
Unfunded Commitments	0	0
Other hedge funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	134	167
Unfunded Commitments	$ 0	$ 0

FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments for which we elected the fair value option) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Options Changes in Fair Value Gain (loss)	$ 493	$ (365)	$ 330	$ 553
Fair value option credit risk gains (losses) on liabilities	6	(18)	14	(7)
Fair Value Option \| Long-term debt
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Options Changes in Fair Value Gain (loss)	8	(144)	(239)	(89)
Fair Value Option \| Other liabilities
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Options Changes in Fair Value Gain (loss)	0	0	0	(3)
Fair Value Option \| Bond and equity securities
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Options Changes in Fair Value Gain (loss)	331	(106)	629	495
Fair Value Option \| Alternative investments
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Options Changes in Fair Value Gain (loss)	$ 154	$ (115)	(60)	148
Fair Value Option \| Other, Including Short Term Investments
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Options Changes in Fair Value Gain (loss)			$ 0	$ 2

FAIR VALUE MEASUREMENTS (Details - Difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term borrowings for which the fair value option was elected) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage and other loans receivable, Fair Value	$ 11	$ 11
Mortgage and other loans receivable, Outstanding Principal Amount	32,712	29,873
Mortgage and other loans receivable, Difference	32,712	29,873
Long-term debt, Fair Value	3,664	3,670
Long-term debt, Outstanding Principal Amount	32,277	29,249
Fair Value Option
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage and other loans receivable, Fair Value	11	11
Mortgage and other loans receivable, Outstanding Principal Amount	8	9
Mortgage and other loans receivable, Difference	3	2
Long-term debt, Fair Value	3,664	3,670
Long-term debt, Outstanding Principal Amount	2,595	2,675
Long-term debt, Difference	$ 1,069	$ 995

FAIR VALUE MEASUREMENTS (Details - Assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented) - Fair value on a non-recurring basis - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	$ 109	$ 85	$ 398	$ 286
Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	27	22	58	74
Investments in life settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	80	58	329	200
Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	2	$ 5	11	$ 12
Level 3 \| Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	861		861		$ 2,074
Level 3 \| Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	194		194		1,117
Level 3 \| Investments in life settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	665		665		828
Level 3 \| Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	2		2		129
Total Fair Value \| Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	861		861		2,074
Total Fair Value \| Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	194		194		1,117
Total Fair Value \| Investments in life settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	665		665		828
Total Fair Value \| Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	$ 2		$ 2		$ 129

FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Assets:
Mortgage and other loans receivable	$ 32,413	$ 29,565
Short-term investments	10,745	10,132
Cash	2,498	1,629	$ 1,569	$ 1,758
Liabilities:
Other liabilities	27,983	26,164
Long-term Debt	32,277	29,249
Total Fair Value
Assets:
Mortgage and other loans receivable	34,122	30,345
Other invested assets	3,504	3,443
Short-term investments	8,021	7,541
Cash	2,498	1,629
Liabilities:
Policyholder contract deposits associated with investment-type contracts	129,854	117,846
Other liabilities	4,214	2,852
Long-term Debt	30,001	26,214
Level 1
Assets:
Mortgage and other loans receivable	0	0
Other invested assets	0	0
Short-term investments	0	0
Cash	2,498	1,629
Liabilities:
Policyholder contract deposits associated with investment-type contracts	0	0
Other liabilities	0	0
Long-term Debt	0	0
Level 2
Assets:
Mortgage and other loans receivable	172	198
Other invested assets	629	563
Short-term investments	8,021	7,541
Cash	0	0
Liabilities:
Policyholder contract deposits associated with investment-type contracts	394	309
Other liabilities	4,214	2,852
Long-term Debt	26,133	21,686
Level 3
Assets:
Mortgage and other loans receivable	33,950	30,147
Other invested assets	2,875	2,880
Short-term investments	0	0
Cash	0	0
Liabilities:
Policyholder contract deposits associated with investment-type contracts	129,460	117,537
Other liabilities	0	0
Long-term Debt	3,868	4,528
Carrying Value
Assets:
Mortgage and other loans receivable	32,402	29,554
Other invested assets	4,211	4,169
Short-term investments	8,021	7,541
Cash	2,498	1,629
Liabilities:
Policyholder contract deposits associated with investment-type contracts	112,380	108,788
Other liabilities	4,214	2,852
Long-term Debt	$ 28,613	$ 25,579

INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	$ 242,582	$ 242,347
Available for sale securities, Gross Unrealized Gains	21,033	14,087
Available for sale securities, Gross Unrealized Losses	(1,422)	(5,274)
Available-for-sale Securities	262,193	251,160
AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,274	1,482
Bonds available for sale
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	241,415	240,968
Available for sale securities, Gross Unrealized Gains	20,637	12,527
Available for sale securities, Gross Unrealized Losses	(1,403)	(5,250)
Available-for-sale Securities	260,649	248,245
Other details of available for sale securities
Available for sale securities not rated or rated below investment grade	35,600	34,900
Bonds available for sale \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,274	1,482
Bonds available for sale \| U.S. government and government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	1,974	1,698
Available for sale securities, Gross Unrealized Gains	249	155
Available for sale securities, Gross Unrealized Losses	0	(9)
Available-for-sale Securities	2,223	1,844
Bonds available for sale \| U.S. government and government sponsored entities \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	0	0
Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	24,468	26,003
Available for sale securities, Gross Unrealized Gains	2,139	1,424
Available for sale securities, Gross Unrealized Losses	(29)	(104)
Available-for-sale Securities	26,578	27,323
Bonds available for sale \| Obligations of states, municipalities and political subdivisions \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	0	19
Bonds available for sale \| Non-U.S. government
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	18,515	17,752
Available for sale securities, Gross Unrealized Gains	2,297	805
Available for sale securities, Gross Unrealized Losses	(106)	(362)
Available-for-sale Securities	20,706	18,195
Bonds available for sale \| Non-U.S. government \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	0	0
Bonds available for sale \| Corporate debt
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	130,290	133,513
Available for sale securities, Gross Unrealized Gains	11,709	6,462
Available for sale securities, Gross Unrealized Losses	(795)	(3,987)
Available-for-sale Securities	141,204	135,988
Bonds available for sale \| Corporate debt \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	(23)	(87)
Bonds available for sale \| Mortgage-backed, asset-backed and collateralized
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	66,168	62,002
Available for sale securities, Gross Unrealized Gains	4,243	3,681
Available for sale securities, Gross Unrealized Losses	(473)	(788)
Available-for-sale Securities	69,938	64,895
Bonds available for sale \| Mortgage-backed, asset-backed and collateralized \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,297	1,550
Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	35,178	33,878
Available for sale securities, Gross Unrealized Gains	2,963	2,760
Available for sale securities, Gross Unrealized Losses	(326)	(411)
Available-for-sale Securities	37,815	36,227
Bonds available for sale \| Residential mortgage-backed securities (RMBS) \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,204	1,326
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	14,244	13,139
Available for sale securities, Gross Unrealized Gains	869	561
Available for sale securities, Gross Unrealized Losses	(40)	(129)
Available-for-sale Securities	15,073	13,571
Bonds available for sale \| Commercial mortgage-backed securities (CMBS) \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	54	185
Bonds available for sale \| Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	16,746	14,985
Available for sale securities, Gross Unrealized Gains	411	360
Available for sale securities, Gross Unrealized Losses	(107)	(248)
Available-for-sale Securities	17,050	15,097
Bonds available for sale \| Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	39	39
Equity securities available for sale
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	1,167	1,379
Available for sale securities, Gross Unrealized Gains	396	1,560
Available for sale securities, Gross Unrealized Losses	(19)	(24)
Available-for-sale Securities	1,544	2,915
Equity securities available for sale \| Common Stock
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	894	913
Available for sale securities, Gross Unrealized Gains	356	1,504
Available for sale securities, Gross Unrealized Losses	(18)	(16)
Available-for-sale Securities	1,232	2,401
Equity securities available for sale \| Preferred Stock
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	14	19
Available for sale securities, Gross Unrealized Gains	4	3
Available for sale securities, Gross Unrealized Losses	0	0
Available-for-sale Securities	18	22
Equity securities available for sale \| Mutual Funds
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	259	447
Available for sale securities, Gross Unrealized Gains	36	53
Available for sale securities, Gross Unrealized Losses	(1)	(8)
Available-for-sale Securities	$ 294	$ 492

INVESTMENTS (Details - Summary of fair value and gross unrealized losses on available for sale securities aggregated by major investment category and length of time in a continuous unrealized loss position) $ in Millions	Sep. 30, 2016 USD ($) item	Dec. 31, 2015 USD ($)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	$ 16,851	$ 67,217
Gross Unrealized Losses, Less than 12 Months	415	3,182
Fair Value, 12 Months or More	14,452	13,595
Gross Unrealized Losses, 12 Months or More	1,007	2,092
Fair Value, Total	31,303	80,812
Gross Unrealized Losses, Total	1,422	5,274
Bonds available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	16,611	66,926
Gross Unrealized Losses, Less than 12 Months	396	3,158
Fair Value, 12 Months or More	14,452	13,595
Gross Unrealized Losses, 12 Months or More	1,007	2,092
Fair Value, Total	31,063	80,521
Gross Unrealized Losses, Total	$ 1,403	5,250
Number of securities in an unrealized loss position \| item	5,264
Number of individual securities in continuous unrealized loss position for longer than twelve months \| item	2,159
Bonds available for sale \| U.S. government and government sponsored entities
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	$ 18	483
Gross Unrealized Losses, Less than 12 Months	0	9
Fair Value, 12 Months or More	0	1
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	18	484
Gross Unrealized Losses, Total	0	9
Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	967	2,382
Gross Unrealized Losses, Less than 12 Months	9	87
Fair Value, 12 Months or More	245	268
Gross Unrealized Losses, 12 Months or More	20	17
Fair Value, Total	1,212	2,650
Gross Unrealized Losses, Total	29	104
Bonds available for sale \| Non-U.S. government
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	984	4,327
Gross Unrealized Losses, Less than 12 Months	34	203
Fair Value, 12 Months or More	581	832
Gross Unrealized Losses, 12 Months or More	72	159
Fair Value, Total	1,565	5,159
Gross Unrealized Losses, Total	106	362
Bonds available for sale \| Corporate debt
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	6,730	41,317
Gross Unrealized Losses, Less than 12 Months	214	2,514
Fair Value, 12 Months or More	6,346	5,428
Gross Unrealized Losses, 12 Months or More	581	1,473
Fair Value, Total	13,076	46,745
Gross Unrealized Losses, Total	795	3,987
Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	3,962	7,215
Gross Unrealized Losses, Less than 12 Months	70	133
Fair Value, 12 Months or More	4,341	4,318
Gross Unrealized Losses, 12 Months or More	256	278
Fair Value, Total	8,303	11,533
Gross Unrealized Losses, Total	326	411
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	1,044	4,138
Gross Unrealized Losses, Less than 12 Months	25	108
Fair Value, 12 Months or More	368	573
Gross Unrealized Losses, 12 Months or More	15	21
Fair Value, Total	1,412	4,711
Gross Unrealized Losses, Total	40	129
Bonds available for sale \| Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	2,906	7,064
Gross Unrealized Losses, Less than 12 Months	44	104
Fair Value, 12 Months or More	2,571	2,175
Gross Unrealized Losses, 12 Months or More	63	144
Fair Value, Total	5,477	9,239
Gross Unrealized Losses, Total	107	248
Equity securities available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	240	291
Gross Unrealized Losses, Less than 12 Months	19	24
Fair Value, 12 Months or More	0	0
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	240	291
Gross Unrealized Losses, Total	$ 19	24
Number of securities in an unrealized loss position \| item	151
Equity securities available for sale \| Common Stock
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	$ 235	91
Gross Unrealized Losses, Less than 12 Months	18	16
Fair Value, 12 Months or More	0	0
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	235	91
Gross Unrealized Losses, Total	18	16
Equity securities available for sale \| Mutual Funds
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	5	200
Gross Unrealized Losses, Less than 12 Months	1	8
Fair Value, 12 Months or More	0	0
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	5	200
Gross Unrealized Losses, Total	$ 1	$ 8

INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	$ 242,582	$ 242,347
Fixed Maturity Securities Available for Sale, Fair Value, Total	260,649	248,245
Fixed Maturity Securities Available for Sale in a Loss Position
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost	695	1,122
Due after one year through five years, Amortized Cost	3,364	9,847
Due after five years through ten years, Amortized Cost	4,839	22,296
Due after ten years, Amortized Cost	7,903	26,235
Mortgage-backed, asset-backed and collateralized, Amortized Cost	15,665	26,271
Available for sale securities, Amortized Cost, Total	32,466	85,771
Due in one year or less, Fair Value	680	1,103
Due after one year through five years, Fair Value	3,197	9,494
Due after five years through ten years, Fair Value	4,528	20,686
Due after ten years, Fair Value	7,466	23,755
Mortgage-backed, asset-backed and collateralized, Fair Value	15,192	25,483
Fixed Maturity Securities Available for Sale, Fair Value, Total	31,063	80,521
Bonds available for sale
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost	8,321	9,176
Due after one year through five years, Amortized Cost	51,382	47,230
Due after five years through ten years, Amortized Cost	46,208	54,120
Due after ten years, Amortized Cost	69,336	68,440
Mortgage-backed, asset-backed and collateralized, Amortized Cost	66,168	62,002
Available for sale securities, Amortized Cost, Total	241,415	240,968
Due in one year or less, Fair Value	8,504	9,277
Due after one year through five years, Fair Value	54,984	49,196
Due after five years through ten years, Fair Value	49,119	54,459
Due after ten years, Fair Value	78,104	70,418
Mortgage-backed, asset-backed and collateralized, Fair Value	69,938	64,895
Fixed Maturity Securities Available for Sale, Fair Value, Total	$ 260,649	$ 248,245

INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	$ 243	$ 120	$ 1,659	$ 983
Gross Realized Losses	55	120	711	305
Aggregate fair value of available for sale securities sold	7,900	6,900	22,300	20,900
Net realized capital gains (losses)	188	0	948	678
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	189	96	593	439
Gross Realized Losses	54	112	696	289
Equity securities available for sale
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	54	24	1,066	544
Gross Realized Losses	$ 1	$ 8	$ 15	$ 16

INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 15,270	$ 17,703
Other Securities, Percent of Total	100.00%	100.00%
U.S. Government agency backed ABS
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 463	$ 712
Fixed maturity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 14,772	$ 16,782
Other Securities, Percent of Total	97.00%	95.00%
Fixed maturity securities \| U.S. government and government sponsored entities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 3,347	$ 3,369
Other Securities, Percent of Total	22.00%	19.00%
Fixed maturity securities \| Obligations of states, municipalities and political subdivisions
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 0	$ 75
Other Securities, Percent of Total	0.00%	0.00%
Fixed maturity securities \| Non-U.S. government
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 54	$ 50
Other Securities, Percent of Total	0.00%	0.00%
Fixed maturity securities \| Corporate debt
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 1,974	$ 2,035
Other Securities, Percent of Total	13.00%	12.00%
Fixed maturity securities \| Mortgage-backed, asset-backed and collateralized
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 9,397	$ 11,253
Other Securities, Percent of Total	62.00%	64.00%
Fixed maturity securities \| Residential mortgage-backed securities (RMBS)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 1,847	$ 2,230
Other Securities, Percent of Total	12.00%	13.00%
Fixed maturity securities \| Commercial mortgage-backed securities (CMBS)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 610	$ 750
Other Securities, Percent of Total	4.00%	4.00%
Fixed maturity securities \| Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 6,940	$ 8,273
Other Securities, Percent of Total	46.00%	47.00%
Equity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 498	$ 921
Other Securities, Percent of Total	3.00%	5.00%

INVESTMENTS (Details - Carrying values of other invested assets) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Investment [Line Items]
Other invested assets				$ 25,747	$ 29,794
Hedge Funds
Investment [Line Items]
Hedge Fund Fair Value Redemption, Percentage			56.00%
Hedge Fund Fair Value Redemption, Additional Percentage	10.00%	27.00%
Alternative investments
Investment [Line Items]
Other invested assets				14,227	18,150
Alternative investments \| Hedge Funds
Investment [Line Items]
Other invested assets				7,800	10,900
Alternative investments \| Private equity funds
Investment [Line Items]
Other invested assets				5,800	6,500
Alternative investments \| Affordable Housing Partnerships
Investment [Line Items]
Other invested assets				618	701
Investment real estate
Investment [Line Items]
Other invested assets				6,494	6,579
Net of accumulated depreciation on investment in real estate				554	668
Aircraft asset investments
Investment [Line Items]
Other invested assets				356	477
Investments in life settlements
Investment [Line Items]
Other invested assets				3,577	3,606
All other investments
Investment [Line Items]
Other invested assets				$ 1,093	$ 982

INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Investment [Line Items]
Total investment income	$ 3,898	$ 3,339	$ 10,817	$ 11,272
Investment expenses	115	133	338	402
Net investment income	3,783	3,206	10,479	10,870
Fixed maturity securities, including short-term investments
Investment [Line Items]
Total investment income	2,935	2,794	8,863	8,477
Equity securities
Investment [Line Items]
Total investment income	25	(5)	(19)	76
Interest on mortgage and other loans
Investment [Line Items]
Total investment income	379	360	1,144	1,046
Alternative investments
Investment [Line Items]
Total investment income	365	(18)	309	1,226
Real estate
Investment [Line Items]
Total investment income	37	66	125	116
Other investments
Investment [Line Items]
Total investment income	$ 157	$ 142	$ 395	$ 331

INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other-than-temporary impairments:
Severity	$ (10)	$ (10)	$ (15)	$ (12)
Change in intent	(2)	(81)	(35)	(193)
Foreign currency declines	(7)	(5)	(14)	(37)
Issuer-specific credit events	(77)	(176)	(303)	(314)
Adverse projected cash flows	(6)	(1)	(47)	(9)
Provision for loan losses	8	32	8	43
Foreign exchange transactions	(639)	(16)	(1,197)	304
Derivative and hedge accounting	(226)	13	(129)	509
Impairments on investments in life settlements	(80)	(58)	(329)	(200)
Other	86	(40)	284	356
Total net realized capital gains (losses)	(765)	(342)	(829)	1,125
Net realized capital gains (losses)	(765)	(342)	(829)	1,125
Prudential Financial
Other-than-temporary impairments:
Total net realized capital gains (losses)			107	428
Net realized capital gains (losses)			107	428
SpringLeaf Holdings
Other-than-temporary impairments:
Total net realized capital gains (losses)				357
Net realized capital gains (losses)				357
AerCap
Other-than-temporary impairments:
Total net realized capital gains (losses)				(463)
Net realized capital gains (losses)				(463)
Fixed maturity securities
Gain (Loss) on Investments [Line Items]
Sales of securities	135	(16)	(103)	150
Equity securities
Gain (Loss) on Investments [Line Items]
Sales of securities	$ 53	$ 16	$ 1,051	$ 528

INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Increase (decrease) in unrealized appreciation (depreciation) of investments	$ 1,547	$ (1,649)	$ 10,555	$ (6,687)
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Increase (decrease) in unrealized appreciation (depreciation) of investments	1,595	(1,180)	11,957	(5,583)
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Increase (decrease) in unrealized appreciation (depreciation) of investments	(19)	(384)	(1,159)	(479)
Other investments
Schedule of Available-for-sale Securities [Line Items]
Increase (decrease) in unrealized appreciation (depreciation) of investments	$ (29)	$ (85)	$ (243)	$ (625)

INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) - Fixed maturity securities - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other Than Temporary Impairment Credit Losses Recognized in Earnings
Balance, beginning of year	$ 1,298	$ 2,238	$ 1,747	$ 2,659
Increases due to:
Credit impairments on new securities subject to impairment losses	23	51	146	101
Additional credit impairments on previously impaired securities	37	37	166	84
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell	(39)	(63)	(282)	(213)
Credit impaired securities for which there is a current intent or anticipated requirement to sell	0	(1)	0	(1)
Accretion on securities previously impaired due to credit	(187)	(197)	(645)	(565)
Impairments on securities reclassified to Assets held for sale	(2)		(2)
Balance, end of year	$ 1,130	$ 2,065	$ 1,130	$ 2,065

INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 241,415		$ 241,415		$ 240,968
Fair value	262,193		262,193		251,160
Purchased Credit Impaired (PCI) Securities
Schedule of Available-for-sale Securities [Line Items]
Contractually required payments (principal and interest)	35,665		35,665
Cash flows expected to be collected	29,091		29,091
Recorded investment in acquired securities	19,536		19,536
Outstanding principal balance	17,163		17,163		16,871
Amortized cost	12,364		12,364		12,303
Fair value	13,203		13,203		$ 13,164
Available for sale securities \| Purchased Credit Impaired (PCI) Securities
Changes in activity for the accretable yield on PCI securities:
Balance, beginning of period	7,043	$ 6,833	6,846	$ 6,865
Newly purchased PCI securities	177	136	628	551
Disposals	0	0	0	(13)
Accretion	(214)	(220)	(637)	(661)
Effect of changes in interest rate indices	(196)	4	(435)	(140)
Net reclassification from non-accretable difference, including effects of prepayments	158	180	566	331
Balance, end of period	$ 6,968	$ 6,933	$ 6,968	$ 6,933

INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Investment [Line Items]
Fair value of securities collateral pledged	$ 1,590	$ 1,742
Fair value of amount sold or repledged	0	0
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements	5,200	4,900
Short-term investments held in escrow	470	439
FHLBs
Investment [Line Items]
Fair value of fixed maturities securities available for sale	3,900	1,200
Amount owned by subsidiaries	127	47
Secured financing
Investment [Line Items]
Fair value of fixed maturities securities available for sale	2,177	1,145
Fair value of other bond securities	1,967	1,740
Amounts Borrowed Under Repurchase and Securities Lending Agreements	4,100	2,900
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	1,967	1,790
Securities Lending Agreements, Fair Value of Collateral	2,177	1,095
Secured financing \| U.S. government and government sponsored entities
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| Overnight and continuous
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Up to 30 Days
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	365	83
Securities Lending Agreements, Fair Value of Collateral	711
Secured financing \| Up to 30 Days \| U.S. government and government sponsored entities
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| 31 to 90 Days
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	1,165	332
Securities Lending Agreements, Fair Value of Collateral	1,303	971
Secured financing \| 91 to 364 Days
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	437	1,375
Securities Lending Agreements, Fair Value of Collateral	163	124
Secured financing \| 365 Days or Greater
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| Non-U.S. government
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral		50
Securities Lending Agreements, Fair Value of Collateral	113	57
Secured financing \| Bonds available for sale \| Corporate debt
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	2,003	914
Secured financing \| Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0	124
Secured financing \| Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	61
Secured financing \| Bonds available for sale \| Up to 30 Days \| Non-U.S. government
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral		50
Secured financing \| Bonds available for sale \| Up to 30 Days \| Corporate debt
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	711
Secured financing \| Bonds available for sale \| Up to 30 Days \| Residential mortgage-backed securities (RMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Non-U.S. government
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	113	57
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Corporate debt
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	1,190	914
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Residential mortgage-backed securities (RMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Non-U.S. government
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Corporate debt
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	102
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Residential mortgage-backed securities (RMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0	124
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Commercial mortgage-backed securities (CMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	61
Secured financing \| Bonds available for sale \| 365 Days or Greater \| Corporate debt
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Other bond securities \| Non-U.S. government
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	54	49
Secured financing \| Other bond securities \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	1,913	1,691
Secured financing \| Other bond securities \| U.S. government and government sponsored entities
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Other bond securities \| Residential mortgage-backed securities (RMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Other bond securities \| Overnight and continuous \| U.S. government and government sponsored entities
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Other bond securities \| Up to 30 Days \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	365	33
Secured financing \| Other bond securities \| Up to 30 Days \| Residential mortgage-backed securities (RMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Other bond securities \| 31 to 90 Days \| Non-U.S. government
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	54
Secured financing \| Other bond securities \| 31 to 90 Days \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	1,111	332
Secured financing \| Other bond securities \| 31 to 90 Days \| Residential mortgage-backed securities (RMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Other bond securities \| 91 to 364 Days \| Non-U.S. government
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	49
Secured financing \| Other bond securities \| 91 to 364 Days \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	437	1,326
Secured financing \| Other bond securities \| 91 to 364 Days \| Residential mortgage-backed securities (RMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Other bond securities \| 365 Days or Greater \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
GIAs
Investment [Line Items]
Fair value of other bond securities	$ 2,300	$ 2,400

LENDING ACTIVITIES (Details - Composition of Mortgages and other loans receivable) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 32,712	$ 29,873
Allowance for losses	(299)	(308)	$ (206)	$ (271)
Mortgage and other loans receivable, net	32,413	29,565
Commercial mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	24,010	22,067
Allowance for losses	$ (189)	$ (171)	$ (162)	$ (159)
Commercial mortgages \| California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of mortgage loans in geographic area	13.00%	12.00%
Commercial mortgages \| New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of mortgage loans in geographic area	23.00%	22.00%
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 3,557	$ 2,758
Life insurance policy loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	2,510	2,597
Commercial loans, other loans and notes receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 2,635	$ 2,451

LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($) loan	Dec. 31, 2015 USD ($) loan	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Commercial Mortgage Recorded Investment [Line Items]
Mortgage and other loans receivable, net	$ 32,413	$ 29,565
Allowance for credit losses	299	308	$ 206	$ 271
Total mortgage and other loans receivable	32,712	29,873
Apartments
Commercial Mortgage Recorded Investment [Line Items]
In good standing	5,197	3,916
Restructured	0	0
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	3
Allowance for credit losses, Specific	0	0
Allowance for credit losses, General	31	35
Allowance for credit losses	31	35
Total mortgage and other loans receivable	5,197	3,919
Offices
Commercial Mortgage Recorded Investment [Line Items]
In good standing	7,884	7,484
Restructured	133	156
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	205
Allowance for credit losses, Specific	3	16
Allowance for credit losses, General	73	47
Allowance for credit losses	76	63
Total mortgage and other loans receivable	8,017	7,845
Retail
Commercial Mortgage Recorded Investment [Line Items]
In good standing	5,127	4,809
Restructured	18	25
90 days or less delinquent	0	4
Greater than 90 days delinquent or in process of foreclosure	0	0
Allowance for credit losses, Specific	1	1
Allowance for credit losses, General	41	29
Allowance for credit losses	42	30
Total mortgage and other loans receivable	5,145	4,838
Industrial
Commercial Mortgage Recorded Investment [Line Items]
In good standing	1,824	1,902
Restructured	0	6
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	6
Allowance for credit losses, Specific	6	6
Allowance for credit losses, General	7	8
Allowance for credit losses	13	14
Total mortgage and other loans receivable	1,824	1,914
Hotel
Commercial Mortgage Recorded Investment [Line Items]
In good standing	2,430	2,082
Restructured	16	16
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	0
Allowance for credit losses, Specific	1	1
Allowance for credit losses, General	13	15
Allowance for credit losses	14	16
Total mortgage and other loans receivable	2,446	2,098
Others
Commercial Mortgage Recorded Investment [Line Items]
In good standing	1,381	1,435
Restructured	0	6
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	12
Allowance for credit losses, Specific	0	0
Allowance for credit losses, General	13	13
Allowance for credit losses	13	13
Total mortgage and other loans receivable	$ 1,381	$ 1,453
Commercial mortgages
Commercial Mortgage Recorded Investment [Line Items]
Number of loans in good standing \| loan	801	830
Number of loans restructured \| loan	4	9
Number of loans 90 days or less delinquent \| loan	0	1
Number of loans greater than 90 days delinquent or in process of foreclosure \| loan	0	9
Number of Loans \| loan	805	849
In good standing	$ 23,843	$ 21,628
Restructured	167	209
90 days or less delinquent	0	4
Greater than 90 days delinquent or in process of foreclosure	0	226
Allowance for credit losses, Specific	11	24
Allowance for credit losses, General	178	147
Allowance for credit losses	$ 189	$ 171
Percentage of loans that are current as to payments of principal and interest	99.00%	98.00%
Percentage restructured	1.00%	1.00%
Percentage 90 days or less delinquent	0.00%
Percentage greater than 90 days delinquent or in foreclosure	0.00%	1.00%
Percentage Total	100.00%	100.00%
Percentage of loans with valuation allowance, Genaral	1.00%	1.00%
Percentage of loans with allowance for losses	1.00%	1.00%
Total mortgage and other loans receivable	$ 24,010	$ 22,067
Commercial mortgages \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	20,309	18,660
Commercial mortgages \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	3,134	2,710
Commercial mortgages \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	567	697
Commercial mortgages \| Less than 65%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	15,288	12,137
Commercial mortgages \| Less than 65% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	13,111	10,283
Commercial mortgages \| Less than 65% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	1,949	1,704
Commercial mortgages \| Less than 65% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	228	150
Commercial mortgages \| 65% to 75%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	6,067	7,017
Commercial mortgages \| 65% to 75% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	5,391	6,361
Commercial mortgages \| 65% to 75% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	589	611
Commercial mortgages \| 65% to 75% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	87	45
Commercial mortgages \| 76% to 80%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	1,676	1,620
Commercial mortgages \| 76% to 80% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	1,445	1,370
Commercial mortgages \| 76% to 80% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	184	169
Commercial mortgages \| 76% to 80% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	47	81
Commercial mortgages \| Greater than 80%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	979	1,293
Commercial mortgages \| Greater than 80% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	362	646
Commercial mortgages \| Greater than 80% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	412	226
Commercial mortgages \| Greater than 80% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	$ 205	$ 421

LENDING ACTIVITIES (Details - Rollforward of the changes in the allowance for losses on Mortgage and other loans receivable) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	$ 308	$ 271
Loans charged off	(15)	(29)
Recoveries of loans previously charged off	11	5
Net charge-offs	(4)	(24)
Provision for loan losses	(5)	(44)
Other	0	3
Allowance, end of period	299	206
Loans modified in a troubled debt restructuring	0	42
Commercial mortgages
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	171	159
Loans charged off	(13)	(23)
Recoveries of loans previously charged off	11	4
Net charge-offs	(2)	(19)
Provision for loan losses	20	22
Other	0	0
Allowance, end of period	189	162
Allowance related to individually assessed credit losses	11	24
Commercial mortgage loans	292	512
Other Loans
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	137	112
Loans charged off	(2)	(6)
Recoveries of loans previously charged off	0	1
Net charge-offs	(2)	(5)
Provision for loan losses	(25)	(66)
Other	0	3
Allowance, end of period	$ 110	$ 44

VARIABLE INTEREST ENTITIES (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Assets:
Bonds available for sale	$ 260,649,000,000	$ 248,245,000,000
Other bond securities	14,772,000,000	16,782,000,000
Mortgage and other loans receivable	32,413,000,000	29,565,000,000
Other invested assets	25,747,000,000	29,794,000,000
Liabilities:
Long-term Debt	32,277,000,000	29,249,000,000
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Other invested assets	25,747,000,000	29,794,000,000
Held for sale [Member]
Assets:
Mortgage and other loans receivable	1,000,000
Other invested assets	1,006,000,000
Liabilities:
Long-term Debt	1,160,000,000
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Other invested assets	1,006,000,000
Real Estate and Investment Funds
Liabilities:
Off-balance sheet exposure	126,000,000	131,000,000
Consolidated VIE
Assets:
Bonds available for sale	10,546,000,000	10,324,000,000
Other bond securities	5,404,000,000	6,167,000,000
Mortgage and other loans receivable	1,663,000,000	2,093,000,000
Other invested assets	4,201,000,000	3,598,000,000
Other assets	3,197,000,000	1,924,000,000
Total assets	25,011,000,000	24,106,000,000
Liabilities:
Long-term Debt	2,971,000,000	2,597,000,000
Other liabilities	2,033,000,000	556,000,000
Total liabilities	5,004,000,000	3,153,000,000
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Other invested assets	4,201,000,000	3,598,000,000
Consolidated VIE \| Real Estate and Investment Funds
Assets:
Bonds available for sale	0	0
Other bond securities	0	0
Mortgage and other loans receivable	1,000,000	1,000,000
Other invested assets	1,008,000,000	489,000,000
Other assets	1,619,000,000	29,000,000
Total assets	2,628,000,000	519,000,000
Liabilities:
Long-term Debt	431,000,000	0
Other liabilities	1,440,000,000	34,000,000
Total liabilities	1,871,000,000	34,000,000
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Other invested assets	1,008,000,000	489,000,000
Consolidated VIE \| Real Estate and Investment Funds \| Held for sale [Member]
Assets:
Other assets	1,000,000,000
Liabilities:
Other liabilities	1,200,000,000
Consolidated VIE \| Securitization Vehicles
Assets:
Bonds available for sale	10,546,000,000	10,309,000,000
Other bond securities	5,074,000,000	5,756,000,000
Mortgage and other loans receivable	1,553,000,000	1,960,000,000
Other invested assets	356,000,000	477,000,000
Other assets	885,000,000	1,349,000,000
Total assets	18,414,000,000	19,851,000,000
Liabilities:
Long-term Debt	781,000,000	1,025,000,000
Other liabilities	225,000,000	236,000,000
Total liabilities	1,006,000,000	1,261,000,000
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Other invested assets	356,000,000	477,000,000
Consolidated VIE \| Structured Investment Vehicles
Assets:
Bonds available for sale	0	0
Other bond securities	324,000,000	387,000,000
Mortgage and other loans receivable	0	0
Other invested assets	0	0
Other assets	122,000,000	94,000,000
Total assets	446,000,000	481,000,000
Liabilities:
Long-term Debt	55,000,000	53,000,000
Other liabilities	0	1,000,000
Total liabilities	55,000,000	54,000,000
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Other invested assets	0	0
Consolidated VIE \| Affordable Housing Partnerships
Assets:
Bonds available for sale	0	0
Other bond securities	0	0
Mortgage and other loans receivable	0	0
Other invested assets	2,810,000,000	2,608,000,000
Other assets	401,000,000	293,000,000
Total assets	3,211,000,000	2,901,000,000
Liabilities:
Long-term Debt	1,698,000,000	1,513,000,000
Other liabilities	230,000,000	214,000,000
Total liabilities	1,928,000,000	1,727,000,000
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Other invested assets	2,810,000,000	2,608,000,000
Consolidated VIE \| Other
Assets:
Bonds available for sale	0	15,000,000
Other bond securities	6,000,000	24,000,000
Mortgage and other loans receivable	109,000,000	132,000,000
Other invested assets	27,000,000	24,000,000
Other assets	170,000,000	159,000,000
Total assets	312,000,000	354,000,000
Liabilities:
Long-term Debt	6,000,000	6,000,000
Other liabilities	138,000,000	71,000,000
Total liabilities	144,000,000	77,000,000
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Other invested assets	27,000,000	24,000,000
Unconsolidated VIE
Assets:
Other invested assets	12,400,000,000	3,800,000,000
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	419,245,000,000	28,316,000,000
Maximum Exposure to Loss, On-Balance Sheet	12,843,000,000	4,061,000,000
Maximum Exposure to Loss, Off-Balance Sheet	3,139,000,000	1,398,000,000
Total maximum exposure to loss	15,982,000,000	5,459,000,000
Other invested assets	12,400,000,000	3,800,000,000
Unconsolidated VIE \| Held for sale [Member]
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	492,000,000
Maximum Exposure to Loss, On-Balance Sheet	4,000,000
Maximum Exposure to Loss, Off-Balance Sheet	2,000,000
Unconsolidated VIE \| Real Estate and Investment Funds
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	410,119,000,000	21,951,000,000
Maximum Exposure to Loss, On-Balance Sheet	11,722,000,000	3,072,000,000
Maximum Exposure to Loss, Off-Balance Sheet	2,108,000,000	398,000,000
Total maximum exposure to loss	13,830,000,000	3,470,000,000
Unconsolidated VIE \| Affordable Housing Partnerships
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	4,755,000,000	5,255,000,000
Maximum Exposure to Loss, On-Balance Sheet	789,000,000	774,000,000
Maximum Exposure to Loss, Off-Balance Sheet	0	0
Total maximum exposure to loss	789,000,000	774,000,000
Unconsolidated VIE \| Other
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	4,371,000,000	1,110,000,000
Maximum Exposure to Loss, On-Balance Sheet	332,000,000	215,000,000
Maximum Exposure to Loss, Off-Balance Sheet	1,031,000,000	1,000,000,000
Total maximum exposure to loss	$ 1,363,000,000	$ 1,215,000,000

DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	$ 123,535	$ 102,768
Gross Derivative Assets, Fair Value	5,780	4,131
Gross Derivative Liabilities, Notional Amount	61,893	82,913
Gross Derivative Liabilities, Fair Value	5,590	4,048
Derivative assets, Counterparty netting	(2,289)	(1,268)
Derivative assets, Cash collateral	(1,358)	(1,554)
Total derivative assets on consolidated balance sheet	2,133	1,309
Derivative liabilities, Counterparty netting	(2,289)	(1,268)
Derivative liabilities, Cash collateral	(482)	(760)
Total derivative liabilities on consolidated balance sheet	2,819	2,020
Bifurcated embedded derivatives
Derivative [Line Items]
Gross Derivative Assets, Fair Value	0	0
Gross Derivative Liabilities, Fair Value	4,100	2,300
Derivatives designated as hedging instruments \| Interest rate contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	355	301
Gross Derivative Assets, Fair Value	2	1
Gross Derivative Liabilities, Notional Amount	476	725
Gross Derivative Liabilities, Fair Value	3	2
Derivatives designated as hedging instruments \| Foreign exchange contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	4,686	2,903
Gross Derivative Assets, Fair Value	392	207
Gross Derivative Liabilities, Notional Amount	1,795	914
Gross Derivative Liabilities, Fair Value	67	56
Derivatives designated as hedging instruments \| Equity contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	113	0
Gross Derivative Assets, Fair Value	9	0
Gross Derivative Liabilities, Notional Amount	0	121
Gross Derivative Liabilities, Fair Value	0	23
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	56,872	45,846
Gross Derivative Assets, Fair Value	4,287	3,161
Gross Derivative Liabilities, Notional Amount	42,001	65,733
Gross Derivative Liabilities, Fair Value	3,716	2,197
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	10,574	9,472
Gross Derivative Assets, Fair Value	753	559
Gross Derivative Liabilities, Notional Amount	8,149	8,900
Gross Derivative Liabilities, Fair Value	1,343	1,148
Derivatives not designated as hedging instruments \| Equity contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	12,994	6,656
Gross Derivative Assets, Fair Value	313	177
Gross Derivative Liabilities, Notional Amount	8,369	5,028
Gross Derivative Liabilities, Fair Value	2	45
Derivatives not designated as hedging instruments \| Commodity contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	0	0
Gross Derivative Assets, Fair Value	0	0
Gross Derivative Liabilities, Notional Amount	0	0
Gross Derivative Liabilities, Fair Value	0	0
Derivatives not designated as hedging instruments \| Credit contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	4	4
Gross Derivative Assets, Fair Value	2	3
Gross Derivative Liabilities, Notional Amount	911	1,289
Gross Derivative Liabilities, Fair Value	347	508
Derivatives not designated as hedging instruments \| Other contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	37,937	37,586
Gross Derivative Assets, Fair Value	22	23
Gross Derivative Liabilities, Notional Amount	192	203
Gross Derivative Liabilities, Fair Value	$ 112	$ 69

DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Derivative Liabilities, Notional Amount	$ 61,893	$ 82,913
Derivative Liabilities, Fair Value	5,590	4,048
Collateral
Collateral posted to third parties for derivative transactions	3,500	3,000
Collateral obtained from third parties for derivative transactions	2,100	1,600
Global Capital Markets (GCM) derivatives
Derivative [Line Items]
Derivative Liabilities, Notional Amount	800	1,100
Derivative Liabilities, Fair Value	$ 329	$ 483

DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships	$ 1	$ 14	$ (8)	$ 87
Derivatives designated as hedging instruments \| Interest rate contracts \| Fair value hedging \| Net realized capital gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(1)	1	0	1
Gain (loss) recognized in earnings on hedged items	1	(1)	(6)	(1)
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	0	(6)	0
Derivatives designated as hedging instruments \| Interest rate contracts \| Fair value hedging \| Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on hedged items	3	2	10	7
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	3	2	10	7
Derivatives designated as hedging instruments \| Interest rate contracts \| Fair value hedging \| Loss on extinguishment of debt
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	0	0	0	0
Gain (loss) recognized in earnings on hedged items	0	1	0	14
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	1	0	14
Derivatives designated as hedging instruments \| Foreign exchange contracts \| Fair value hedging \| Net realized capital gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(10)	81	413	152
Gain (loss) recognized in earnings on hedged items	(34)	(67)	(443)	(123)
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	(44)	14	(30)	27
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	0	0	2
Derivatives designated as hedging instruments \| Foreign exchange contracts \| Fair value hedging \| Interest credited to policyholder account balances
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on hedged items				(1)
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other				(1)
Derivatives designated as hedging instruments \| Foreign exchange contracts \| Fair value hedging \| Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on hedged items	3	4	15	14
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	3	4	15	14
Derivatives designated as hedging instruments \| Foreign exchange contracts \| Fair value hedging \| Loss on extinguishment of debt
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	0	0	0	0
Gain (loss) recognized in earnings on hedged items	0	0	0	17
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	0	0	17
Derivatives designated as hedging instruments \| Equity contracts \| Fair value hedging \| Net realized capital gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	8	(4)	28	(23)
Gain (loss) recognized in earnings on hedged items	(9)	3	(28)	21
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	(1)	(1)	0	(2)
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	0	0	0
Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(89)	16	(49)	914
Derivatives not designated as hedging instruments \| Net realized capital gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(181)	20	(93)	496
Derivatives not designated as hedging instruments \| Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	2	6	14	20
Derivatives not designated as hedging instruments \| Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	69	(36)	(43)	334
Derivatives not designated as hedging instruments \| Policy fees
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	20	20	60	59
Derivatives not designated as hedging instruments \| Policyholder benefits and claims incurred
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	1	6	13	5
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	91	470	1,464	398
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	49	51	203	321
Derivatives not designated as hedging instruments \| Equity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(317)	229	(589)	108
Derivatives not designated as hedging instruments \| Commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	0	0	0	(1)
Derivatives not designated as hedging instruments \| Credit contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	36	11	70	171
Derivatives not designated as hedging instruments \| Other contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	22	71	58	60
Derivatives not designated as hedging instruments \| Embedded derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	$ 30	$ (816)	$ (1,255)	$ (143)

DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Credit Derivatives [Line Items]
Collateral posted	$ 3,500	$ 3,000
Fair value of hybrid securities	4,900	5,700
Par value of hybrid securities	10,400	11,200
Credit Risk Related Contingent Features [Member]
Credit Derivatives [Line Items]
Collateral posted	2,700	2,100
Aggregate fair value of net liability position	2,300	$ 2,000
Additional collateral postings and termination payments	$ 145
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Arbitrage \| Multi-sector CDOs
Credit Derivatives [Line Items]
Derivative weighted average maturity	6 years

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Loss Contingencies) $ in Millions									9 Months Ended		39 Months Ended
	Jun. 15, 2015 USD ($)	Oct. 22, 2014 USD ($)	Sep. 16, 2013 individual	Mar. 11, 2013 class	Nov. 29, 2012 USD ($) item	Nov. 21, 2011	Dec. 17, 2010 USD ($) item	Feb. 25, 2010 individual	Sep. 30, 2016 USD ($) complaint multiple	Jan. 31, 2009 complaint	Feb. 09, 2015 complaint
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of states participating in the accident and health products examination \| item							50
Other Commitments
Other Commitments									$ 3,200.0
Chartis U.S.
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Settlement agreement, number of jurisdictions \| item					50
Civil penalty paid					$ 50.0
AIG \| Regulatory fines and penalties
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Litigation Settlement, Amount							$ 100.0
AIG \| Outstanding premium taxes and assessments
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Litigation Settlement, Amount							46.5
AIG \| Contingent fines
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Litigation Settlement, Amount							$ 150.0
Consolidated 2008 Securities Litigation
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of separate proceedings filed \| complaint										8
Payment for legal settlement		$ 960.0
Starr International Litigation
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of separate proceedings filed \| class				2
Damages claimed	$ 40,000.0
Percentage of ownership in AIG received by Department of the Treasury						80.00%
Number of shareholders who have submitted timely and valid requests to opt into the class \| individual			286,908
False Claims Act complaint
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of individuals (Relators) seeking to assert claims \| individual								2
Damages sought, multiple of damages sustained \| multiple									3
Caremark
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of separate proceedings filed \| complaint									2
Damages claimed									$ 3,200.0
Individual Securities Litigations [Member]
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of separate proceedings filed \| complaint									2
Number of funds that are plaintiffs in similar actions \| complaint											11
Number of actions brought against AIG \| complaint									9
Number of cases that have been settled \| complaint									8

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) $ in Millions	Sep. 30, 2016 USD ($)
Other Operations
Guarantor Obligations [Line Items]
Amount outstanding under standby letters of credit at end of period	$ 138

EQUITY (Details - Shares Outstanding) - USD ($)				9 Months Ended
EQUITY (Details - Shares Outstanding) - USD ($)	Sep. 29, 2016	Jun. 27, 2016	Mar. 28, 2016	Sep. 30, 2016	Nov. 02, 2016	Feb. 11, 2016
The following table presents a roll forward of outstanding shares:
Shares, beginning of year				(712,754,875)
Shares, beginning of year				1,906,671,492
Shares, beginning of year				1,193,916,617
Issuances (in shares)				2,054,043
Shares repurchased				(153,082,104)
Shares, end of period				(863,782,936)
Shares, end of period				1,906,671,492
Shares, end of period				1,042,888,556
Dividend paid (in dollars per share)	$ 0.32	$ 0.32	$ 0.32
Shares repurchased (in shares)				153,082,104
Subsequent event
The following table presents a roll forward of outstanding shares:
Aggregate repurchase authorization purchase amount					$ 3,000,000,000
Common stock authorized to be repurchased					$ 4,400,000,000
Common Stock Issued
The following table presents a roll forward of outstanding shares:
Shares, beginning of year				1,906,671,492
Issuances (in shares)				0
Shares repurchased				0
Shares, end of period				1,906,671,492
Shares repurchased (in shares)				0
Common Stock Issued \| AIG
The following table presents a roll forward of outstanding shares:
Shares repurchased				(153,000,000)
Aggregate repurchase authorization purchase amount						$ 3,000,000,000
Common stock authorized to be repurchased				$ 2,400,000,000
Shares repurchased (in shares)				153,000,000
Aggregate purchase price of repurchased shares				$ 8,500,000,000
Treasury Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year				(712,754,875)
Issuances (in shares)				2,054,043
Shares repurchased				(153,082,104)
Shares, end of period				(863,782,936)
Shares repurchased (in shares)				153,082,104
Warrants
The following table presents a roll forward of outstanding shares:
Amount paid to purchase warrants				$ 263,000,000
Warrants repurchased				15,000,000

EQUITY (Details - Rollforward of Accumulated other comprehensive income) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			$ 2,537	$ 10,617
Change in unrealized appreciation (depreciation) of investments			10,555	(6,687)
Change in deferred acquisition costs adjustment and other			(927)	763
Change in future policy benefits			(2,099)	899
Changes in foreign currency translation adjustments			179	(901)
Net actuarial gain (loss)			13	417
Prior service (cost) credit			(20)	(210)
Deferred tax asset (liability)	$ (12)	$ 383	(1,181)	1,655
Other Comprehensive Income (Loss)	798	(1,064)	6,520	(4,064)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment	111	(238)	332	(734)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment	4	92	(4)	148
Noncontrolling interests				(4)
Balance, end of period, net of tax	9,057	6,557	9,057	6,557
Accumulated Other Comprehensive Income
A rollforward of Accumulated Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss)			6,520	(4,060)
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Recognized
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			696	1,043
Change in unrealized appreciation (depreciation) of investments			(318)	(315)
Change in deferred acquisition costs adjustment and other			(40)	0
Change in future policy benefits			0	92
Deferred tax asset (liability)	76	50	248	54
Other Comprehensive Income (Loss)	217	(61)	(110)	(169)
Balance, end of period, net of tax	586	874	586	874
Unrealized Appreciation (Depreciation) of All Other Investments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			5,566	12,327
Change in unrealized appreciation (depreciation) of investments			10,873	(6,372)
Change in deferred acquisition costs adjustment and other			(887)	763
Change in future policy benefits			(2,099)	807
Deferred tax asset (liability)	(187)	401	(1,585)	1,493
Other Comprehensive Income (Loss)	466	(857)	6,302	(3,309)
Balance, end of period, net of tax	11,868	9,018	11,868	9,018
Foreign Currency Translation Adjustments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			(2,879)	(1,784)
Changes in foreign currency translation adjustments			179	(901)
Deferred tax asset (liability)	90	(21)	153	167
Other Comprehensive Income (Loss)	111	(238)	332	(734)
Noncontrolling interests				(4)
Balance, end of period, net of tax	(2,547)	(2,514)	(2,547)	(2,514)
Retirement Plan Liabilities Adjustment
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			(846)	(969)
Net actuarial gain (loss)			13	417
Prior service (cost) credit			(20)	(210)
Deferred tax asset (liability)	9	(47)	3	(59)
Other Comprehensive Income (Loss)	4	92	(4)	148
Balance, end of period, net of tax	$ (850)	$ (821)	$ (850)	$ (821)

EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	$ 976	$ (1,287)	$ 8,642	$ (4,975)
Less: Reclassification adjustments included in net income	166	160	941	744
Total other comprehensive income (loss), before income tax expense (benefit)	810	(1,447)	7,701	(5,719)
Less: Income tax expense (benefit)	12	(383)	1,181	(1,655)
Other comprehensive income (loss)	798	(1,064)	6,520	(4,064)
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Recognized
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	147	(98)	(252)	(155)
Less: Reclassification adjustments included in net income	6	13	106	68
Total other comprehensive income (loss), before income tax expense (benefit)	141	(111)	(358)	(223)
Less: Income tax expense (benefit)	(76)	(50)	(248)	(54)
Other comprehensive income (loss)	217	(61)	(110)	(169)
Unrealized Appreciation (Depreciation) of All Other Investments
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	816	(1,275)	8,733	(4,243)
Less: Reclassification adjustments included in net income	163	(17)	846	559
Total other comprehensive income (loss), before income tax expense (benefit)	653	(1,258)	7,887	(4,802)
Less: Income tax expense (benefit)	187	(401)	1,585	(1,493)
Other comprehensive income (loss)	466	(857)	6,302	(3,309)
Accumulated Translation Adjustment [Member]
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	21	(217)	179	(901)
Less: Reclassification adjustments included in net income	0	0	0	0
Total other comprehensive income (loss), before income tax expense (benefit)	21	(217)	179	(901)
Less: Income tax expense (benefit)	(90)	21	(153)	(167)
Other comprehensive income (loss)	111	(238)	332	(734)
Retirement Plan Liabilities Adjustment
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	(8)	303	(18)	324
Less: Reclassification adjustments included in net income	(3)	164	(11)	117
Total other comprehensive income (loss), before income tax expense (benefit)	(5)	139	(7)	207
Less: Income tax expense (benefit)	(9)	47	(3)	59
Other comprehensive income (loss)	$ 4	$ 92	$ (4)	$ 148

EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other realized capital gains	$ (693)	$ (100)	$ (461)	$ 1,616
Amortization of deferred acquisition costs	1,018	1,275	3,625	3,981
Policyholder benefits and losses incurred	7,489	6,936	20,748	20,587
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax	166	160	941	744
Income from continuing operations before income tax expense (benefit)	737	(115)	3,381	6,213
Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income from continuing operations before income tax expense (benefit)	166	160	941	744
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax	6	13	106	68
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other realized capital gains	6	13	106	68
Income from continuing operations before income tax expense (benefit)	6	13	106	68
Unrealized appreciation (depreciation) of all other investments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax	163	(17)	846	559
Unrealized appreciation (depreciation) of all other investments \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other realized capital gains	182	(15)	843	609
Amortization of deferred acquisition costs	(19)	(2)	3	(67)
Policyholder benefits and losses incurred	0	0	0	17
Income from continuing operations before income tax expense (benefit)	163	(17)	846	559
Change in retirement plan liabilities adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax	(3)	164	(11)	117
Change in retirement plan liabilities adjustment \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax	(3)	164	(11)	117
Prior-Service Costs \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax	4	187	13	210
Actuarial Gains (Losses) \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax	$ (7)	$ (23)	$ (24)	$ (93)

EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator for EPS:
Income (Loss) from Continuing Operations	$ 433	$ (180)	$ 2,211	$ 4,071
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	(26)	34	(35)	34
Net income (loss) attributable to AIG common shareholders from continuing operations	459	(214)	2,246	4,037
Income (loss) from discontinued operations, net of income tax expense	3	(17)	(54)	0
Net income (loss) attributable to AIG common shareholders	$ 462	$ (231)	$ 2,192	$ 4,037
Denominator for EPS:
Weighted average shares outstanding - basic	1,071,295,892	1,279,072,748	1,113,650,878	1,324,407,969
Dilutive shares	31,104,878	0	29,049,329	32,700,815
Weighted average shares outstanding - diluted	1,102,400,770	1,279,072,748	1,142,700,207	1,357,108,784
Basic:
Income from continuing operations	$ 0.43	$ (0.17)	$ 2.02	$ 3.05
Income (loss) from discontinued operations	0	(0.01)	(0.05)	0
Net income attributable to AIG	0.43	(0.18)	1.97	3.05
Diluted:
Income from continuing operations	0.42	(0.17)	1.97	2.97
Income (loss) from discontinued operations	0	(0.01)	(0.05)	0
Net Income attributable to AIG	$ 0.42	$ (0.18)	$ 1.92	$ 2.97
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive	100,000	100,000	200,000	200,000

EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Pensions
Components of net periodic benefit cost:
Service cost	$ 14	$ 51	$ 38	$ 175
Interest cost	50	60	151	182
Expected return on assets	(79)	(79)	(239)	(235)
Amortization of prior service (credit) cost	0	(7)	0	(24)
Amortization of net (gain) loss	9	23	25	93
Curtailment (gain) loss	(2)	(179)	(5)	(180)
Net periodic benefit cost	(8)	(131)	(30)	11
U.S. Pension Plans
Components of net periodic benefit cost:
Service cost	6	41	15	144
Interest cost	45	54	136	164
Expected return on assets	(72)	(74)	(219)	(218)
Amortization of prior service (credit) cost	0	(6)	0	(22)
Amortization of net (gain) loss	7	21	19	86
Curtailment (gain) loss	0	(179)	0	(179)
Net periodic benefit cost	(14)	(143)	(49)	(25)
Non U.S. Pension Plans
Components of net periodic benefit cost:
Service cost	8	10	23	31
Interest cost	5	6	15	18
Expected return on assets	(7)	(5)	(20)	(17)
Amortization of prior service (credit) cost	0	(1)	0	(2)
Amortization of net (gain) loss	2	2	6	7
Curtailment (gain) loss	(2)	0	(5)	(1)
Net periodic benefit cost	6	12	19	36
Postretirement Plans
Components of net periodic benefit cost:
Service cost	1	1	4	6
Interest cost	2	3	7	8
Expected return on assets	0	0	0	0
Amortization of prior service (credit) cost	(2)	(3)	(7)	(8)
Amortization of net (gain) loss	0	0	0	0
Net periodic benefit cost	1	1	4	6
U.S. Postretirement Plans
Components of net periodic benefit cost:
Service cost	1	1	2	4
Interest cost	2	2	5	6
Expected return on assets	0	0	0	0
Amortization of prior service (credit) cost	(2)	(3)	(7)	(8)
Amortization of net (gain) loss	(1)	0	(1)	0
Net periodic benefit cost	0	0	(1)	2
Non U.S. Postretirement Plans
Components of net periodic benefit cost:
Service cost	0	0	2	2
Interest cost	0	1	2	2
Expected return on assets	0	0	0	0
Amortization of prior service (credit) cost	0	0	0	0
Amortization of net (gain) loss	1	0	1	0
Net periodic benefit cost	$ 1	$ 1	$ 5	$ 4

INCOME TAXES (Details - Income (loss) from continuing operations and income tax expense (benefit)) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income (loss) from continuing operations before income tax expense (benefit)
Income (loss) from continuing operations before income tax expense (benefit)	$ 737	$ (115)	$ 3,381	$ 6,213
U.S.:
Income tax expense (benefit)	304	65	1,170	2,142
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, pre-tax income (loss)
Income (loss) from continuing operations before income tax expense (benefit)	737	(115)	3,381	6,213
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, tax expense/benefit
Income tax expense (benefit)	$ 304	$ 65	$ 1,170	$ 2,142
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, percentage of pre-tax income (loss)
U.S. federal income tax at statutory rate (as a percent)	35.00%		35.00%	35.00%
Adjustments:
Amounts attributable to continuing operations (as a percent)	41.20%	0.00%	34.60%	34.50%
Accounting for Uncertainty in Income Taxes
Unrecognized tax benefits, excluding interest and penalties	$ 4,500		$ 4,500		$ 4,300
Unrecognized tax benefits, if recognized would not affect the effective tax rate	100		100		100
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate	4,400		4,400		4,200
Unrecognized tax benefits, interest and penalties accrued	1,200		1,200		$ 1,200
Unrecognized tax benefits, interest net of the federal (benefit) expense and penalties			$ (16)	$ 133
Unrecognized tax benefits, period of reasonably possible change in balance			Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next 12 months, based on the information currently available, we do not expect any change to be material to our consolidated financial condition.
Deferred tax asset valuation allowance allocated to other comprehensive income	0		$ 1,200
Deferred tax asset valuation allowance recognized	$ 2		$ 4

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Assets:
Short-term investments	$ 10,745	$ 10,132
Other investments	335,623	328,222
Total investments	346,368	338,354
Cash	2,498	1,629	$ 1,569	$ 1,758
Other assets, including deferred income taxes	159,041	156,859
Assets held for sale	6,661
Total assets	514,568	496,842
Liabilities:
Insurance liabilities	278,608	271,645
Long-term Debt	32,277	29,249
Other liabilities, including intercompany balances	110,609	105,738
Liabilities held for sale	3,909
Total liabilities	425,403	406,632
Total AIG shareholders' equity	88,663	89,658
Non-redeemable noncontrolling interests	502	552
Total equity	89,165	90,210	99,619	107,272
Total liabilities and equity	514,568	496,842
AIG (As Guarantor)
Assets:
Short-term investments	2,906	4,042
Other investments	7,428	7,425
Total investments	10,334	11,467
Cash	217	34	20	26
Loans to subsidiaries	35,106	35,927
Investment in consolidated subsidiaries	55,878	51,151
Other assets, including deferred income taxes	24,721	23,299
Total assets	126,256	121,878
Liabilities:
Long-term Debt	22,185	19,777
Other liabilities, including intercompany balances	14,906	11,869
Loans from subsidiaries	502	574
Total liabilities	37,593	32,220
Total AIG shareholders' equity	88,663	89,658
Total equity	88,663	89,658
Total liabilities and equity	126,256	121,878
AIGLH
Assets:
Cash	6	116	3	91
Investment in consolidated subsidiaries	31,307	30,239
Other assets, including deferred income taxes	136	258
Total assets	31,449	30,613
Liabilities:
Long-term Debt	641	704
Other liabilities, including intercompany balances	55	201
Loans from subsidiaries	0	3
Total liabilities	696	908
Total AIG shareholders' equity	30,753	29,705
Total equity	30,753	29,705
Total liabilities and equity	31,449	30,613
Other Subsidiaries
Assets:
Short-term investments	12,161	9,637
Other investments	328,195	320,797
Total investments	340,356	330,434
Cash	2,275	1,479	$ 1,546	$ 1,641
Loans to subsidiaries	504	578
Other assets, including deferred income taxes	138,004	135,690
Assets held for sale	6,661
Total assets	487,800	468,181
Liabilities:
Insurance liabilities	278,608	271,645
Long-term Debt	9,451	8,768
Other liabilities, including intercompany balances	103,964	99,777
Loans from subsidiaries	35,108	35,928
Liabilities held for sale	3,909
Total liabilities	431,040	416,118
Total AIG shareholders' equity	56,258	51,511
Non-redeemable noncontrolling interests	502	552
Total equity	56,760	52,063
Total liabilities and equity	487,800	468,181
Reclassifications and Eliminations
Assets:
Short-term investments	(4,322)	(3,547)
Other investments	0
Total investments	(4,322)	(3,547)
Loans to subsidiaries	(35,610)	(36,505)
Investment in consolidated subsidiaries	(87,185)	(81,390)
Other assets, including deferred income taxes	(3,820)	(2,388)
Total assets	(130,937)	(123,830)
Liabilities:
Other liabilities, including intercompany balances	(8,316)	(6,109)
Loans from subsidiaries	(35,610)	(36,505)
Total liabilities	(43,926)	(42,614)
Total AIG shareholders' equity	(87,011)	(81,216)
Total equity	(87,011)	(81,216)
Total liabilities and equity	$ (130,937)	$ (123,830)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income (Loss)) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Equity in earnings of consolidated subsidiaries	$ 0	$ 0	$ 0	$ 0
Other income	12,854	12,822	39,357	44,496
Total revenues	12,854	12,822	39,357	44,496
Expenses:
Interest expense	329	321	955	977
Net (gains) losses on extinguishment of debt	(14)	346	76	756
Other expenses	11,802	12,270	34,945	36,550
Total benefits, losses and expenses	12,117	12,937	35,976	38,283
Income (loss) from continuing operations before income tax expense (benefit)	737	(115)	3,381	6,213
Income tax expense (benefit)	304	65	1,170	2,142
Income from continuing operations	433	(180)	2,211	4,071
Income (loss) from discontinued operations, net of income taxes	3	(17)	(54)	0
Net income (loss)	436	(197)	2,157	4,071
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	(26)	34	(35)	34
Net income (loss) attributable to AIG	462	(231)	2,192	4,037
AIG (As Guarantor)
Revenues:
Equity in earnings of consolidated subsidiaries	1,002	717	2,226	5,793
Other income	145	(221)	209	(57)
Total revenues	1,147	496	2,435	5,736
Expenses:
Interest expense	249	254	743	810
Net (gains) losses on extinguishment of debt	0	345	77	703
Other expenses	238	352	686	899
Total benefits, losses and expenses	487	951	1,506	2,412
Income (loss) from continuing operations before income tax expense (benefit)	660	(455)	929	3,324
Income tax expense (benefit)	197	(224)	(1,265)	(714)
Income from continuing operations	463	(231)	2,194	4,038
Income (loss) from discontinued operations, net of income taxes	(1)	0	(2)	(1)
Net income (loss)	462	(231)	2,192	4,037
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to AIG	462	(231)	2,192	4,037
AIGLH
Revenues:
Equity in earnings of consolidated subsidiaries	528	222	(267)	1,744
Other income	0	0	5	0
Total revenues	528	222	(262)	1,744
Expenses:
Interest expense	12	14	39	44
Net (gains) losses on extinguishment of debt	0	0	0	0
Other expenses	1	0	15	42
Total benefits, losses and expenses	13	14	54	86
Income (loss) from continuing operations before income tax expense (benefit)	515	208	(316)	1,658
Income tax expense (benefit)	(4)	(6)	(17)	(69)
Income from continuing operations	519	214	(299)	1,727
Income (loss) from discontinued operations, net of income taxes	0	0	0	0
Net income (loss)	519	214	(299)	1,727
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to AIG	519	214	(299)	1,727
Other Subsidiaries
Revenues:
Equity in earnings of consolidated subsidiaries	0	0	0	0
Other income	12,952	13,220	39,833	45,050
Total revenues	12,952	13,220	39,833	45,050
Expenses:
Interest expense	69	83	177	213
Net (gains) losses on extinguishment of debt	(14)	1	(1)	46
Other expenses	11,821	12,064	34,946	36,016
Total benefits, losses and expenses	11,876	12,148	35,122	36,275
Income (loss) from continuing operations before income tax expense (benefit)	1,076	1,072	4,711	8,775
Income tax expense (benefit)	111	295	2,452	2,925
Income from continuing operations	965	777	2,259	5,850
Income (loss) from discontinued operations, net of income taxes	4	(17)	(52)	1
Net income (loss)	969	760	2,207	5,851
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	(26)	34	(35)	34
Net income (loss) attributable to AIG	995	726	2,242	5,817
Reclassifications and Eliminations
Revenues:
Equity in earnings of consolidated subsidiaries	(1,530)	(939)	(1,959)	(7,537)
Other income	(243)	(177)	(690)	(497)
Total revenues	(1,773)	(1,116)	(2,649)	(8,034)
Expenses:
Interest expense	(1)	(30)	(4)	(90)
Net (gains) losses on extinguishment of debt	0	0	0	7
Other expenses	(258)	(146)	(702)	(407)
Total benefits, losses and expenses	(259)	(176)	(706)	(490)
Income (loss) from continuing operations before income tax expense (benefit)	(1,514)	(940)	(1,943)	(7,544)
Income tax expense (benefit)	0	0	0	0
Income from continuing operations	(1,514)	(940)	(1,943)	(7,544)
Income (loss) from discontinued operations, net of income taxes	0	0	0	0
Net income (loss)	(1,514)	(940)	(1,943)	(7,544)
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to AIG	$ (1,514)	$ (940)	$ (1,943)	$ (7,544)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	$ 436	$ (197)	$ 2,157	$ 4,071
Other Comprehensive Income (Loss)	798	(1,064)	6,520	(4,064)
Comprehensive income (loss)	1,234	(1,261)	8,677	7
Total comprehensive income (loss) attributable to noncontrolling interests	(26)	33	(35)	30
Comprehensive income (loss) attributable to AIG	1,260	(1,294)	8,712	(23)
AIG (As Guarantor)
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	462	(231)	2,192	4,037
Other Comprehensive Income (Loss)	798	(1,063)	6,520	(4,060)
Comprehensive income (loss)	1,260	(1,294)	8,712	(23)
Total comprehensive income (loss) attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to AIG	1,260	(1,294)	8,712	(23)
AIGLH
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	519	214	(299)	1,727
Other Comprehensive Income (Loss)	(56)	(548)	7,204	3,942
Comprehensive income (loss)	463	(334)	6,905	5,669
Total comprehensive income (loss) attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to AIG	463	(334)	6,905	5,669
Other Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	969	760	2,207	5,851
Other Comprehensive Income (Loss)	7	187	48,555	52,820
Comprehensive income (loss)	976	947	50,762	58,671
Total comprehensive income (loss) attributable to noncontrolling interests	(26)	33	(35)	30
Comprehensive income (loss) attributable to AIG	1,002	914	50,797	58,641
Reclassifications and Eliminations
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	(1,514)	(940)	(1,943)	(7,544)
Other Comprehensive Income (Loss)	49	360	(55,759)	(56,766)
Comprehensive income (loss)	(1,465)	(580)	(57,702)	(64,310)
Total comprehensive income (loss) attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to AIG	$ (1,465)	$ (580)	$ (57,702)	$ (64,310)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Condensed Financial Statements, Captions [Line Items]
Net cash provided by operating activities	$ 1,753	$ 2,234
Cash flows from investing activities:
Sales of investments	53,344	54,481
Purchase of investments	(53,385)	(47,475)
Loans to subsidiaries - net	0	0
Contributions from (to) subsidiaries - net	0	0
Net change in restricted cash	(49)	1,476
Net change in short-term investments	(855)	(1,028)
Other, net	1,270	(774)
Net cash provided by investing activities	325	6,680
Cash flows from financing activities:
Issuance of long-term debt	11,430	6,449
Repayments of long-term debt	(7,683)	(8,343)
Issuance of Common Stock	0	0
Purchase of Common Stock	(8,506)	(7,473)
Intercompany loans - net		0
Cash dividends paid	(1,051)	(687)
Other, net	4,513	990
Net cash provided by (used in) financing activities	(1,297)	(9,064)
Effect of exchange rate changes on cash	88	(39)
Net increase (decrease) in cash	869	(189)
Cash at beginning of year	1,629	1,758
Reclassification to assets held for sale	0	0
Cash at end of year	2,498	1,569
Interest:
Third party	(1,009)	(1,112)
Intercompany	0	0
Taxes:
Income tax authorities	(208)	(406)
Intercompany	0	0
AIG (As Guarantor)
Condensed Financial Statements, Captions [Line Items]
Net cash provided by operating activities	1,671	3,675
Cash flows from investing activities:
Sales of investments	3,242	5,610
Purchase of investments	(659)	(1,373)
Loans to subsidiaries - net	1,025	(1,227)
Contributions from (to) subsidiaries - net	1,593	0
Net change in restricted cash	0	0
Net change in short-term investments	1,006	1,940
Other, net	(179)	(4)
Net cash provided by investing activities	6,028	4,946
Cash flows from financing activities:
Issuance of long-term debt	3,831	5,540
Repayments of long-term debt	(1,454)	(5,728)
Issuance of Common Stock	0	0
Purchase of Common Stock	(8,506)	(7,473)
Intercompany loans - net	(73)	(236)
Cash dividends paid	(1,051)	(687)
Other, net	(263)	(43)
Net cash provided by (used in) financing activities	(7,516)	(8,627)
Effect of exchange rate changes on cash	0	0
Net increase (decrease) in cash	183	(6)
Cash at beginning of year	34	26
Cash at end of year	217	20
Interest:
Third party	(797)	(846)
Intercompany	0	0
Taxes:
Income tax authorities	(11)	(17)
Intercompany	782	1,769
Non-cash financing and investing activities:
Return of capital	0	0
Return of capital and dividend received in the form of other bonds securities	4,055	1,997
Other capital contributions - net	3,086	111
Consideration received from sale of shares	440	0
AIGLH
Condensed Financial Statements, Captions [Line Items]
Net cash provided by operating activities	1,664	1,386
Cash flows from investing activities:
Sales of investments	0	0
Purchase of investments	0	0
Loans to subsidiaries - net	0	0
Contributions from (to) subsidiaries - net	0	0
Net change in restricted cash	0	0
Net change in short-term investments	0	0
Other, net	0	0
Net cash provided by investing activities	0	0
Cash flows from financing activities:
Issuance of long-term debt	0	0
Repayments of long-term debt	(62)	115
Issuance of Common Stock	0	0
Purchase of Common Stock	0	0
Intercompany loans - net	(3)	0
Cash dividends paid	(1,709)	(1,359)
Other, net	0	0
Net cash provided by (used in) financing activities	(1,774)	(1,474)
Effect of exchange rate changes on cash	0	0
Net increase (decrease) in cash	(110)	(88)
Cash at beginning of year	116	91
Reclassification to assets held for sale	0
Cash at end of year	6	3
Interest:
Third party	(51)	(57)
Intercompany	0	0
Taxes:
Income tax authorities	0	0
Intercompany	0	0
Other Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net cash provided by operating activities	2,277	508
Cash flows from investing activities:
Sales of investments	59,669	52,234
Purchase of investments	(62,293)	(49,465)
Loans to subsidiaries - net	73	2,690
Contributions from (to) subsidiaries - net	0	0
Net change in restricted cash	(49)	1,476
Net change in short-term investments	(1,861)	(2,968)
Other, net	1,449	(770)
Net cash provided by investing activities	(3,012)	3,197
Cash flows from financing activities:
Issuance of long-term debt	7,599	909
Repayments of long-term debt	(6,167)	(2,500)
Proceeds from drawdown on the Department of the Treasury Commitment		0
Issuance of Common Stock	0	0
Purchase of Common Stock	0	0
Intercompany loans - net	(1,022)	(1,227)
Cash dividends paid	(2,150)	(1,976)
Other, net	3,183	1,033
Net cash provided by (used in) financing activities	1,443	(3,761)
Effect of exchange rate changes on cash	88	(39)
Net increase (decrease) in cash	796	(95)
Cash at beginning of year	1,479	1,641
Reclassification to assets held for sale	0	0
Cash at end of year	2,275	1,546
Interest:
Third party	(161)	(209)
Intercompany	0	0
Taxes:
Income tax authorities	(197)	(389)
Intercompany	(782)	(1,769)
Aer Cap
Non-cash financing and investing activities:
Consideration received from sale of shares		500
Reclassifications and Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash provided by operating activities	(3,859)	(3,335)
Cash flows from investing activities:
Sales of investments	(9,567)	(3,363)
Purchase of investments	9,567	3,363
Loans to subsidiaries - net	(1,098)	(1,463)
Contributions from (to) subsidiaries - net	(1,593)	0
Net cash provided by investing activities	(2,691)	(1,463)
Cash flows from financing activities:
Issuance of long-term debt	0	0
Repayments of long-term debt	0	0
Proceeds from drawdown on the Department of the Treasury Commitment		0
Issuance of Common Stock	0	0
Intercompany loans - net	1,098	1,463
Cash dividends paid	3,859	3,335
Other, net	1,593	0
Net cash provided by (used in) financing activities	6,550	4,798
Interest:
Third party	0	0
Intercompany	0	0
Taxes:
Income tax authorities		0
Intercompany	$ 0	$ 0

SUBSEQUENT EVENTS (Details) - USD ($)			3 Months Ended		9 Months Ended
SUBSEQUENT EVENTS (Details) - USD ($)	Nov. 02, 2016	Oct. 18, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Subsequent Event [Line Items]
Dividends declared per common share			$ 0.32	$ 0.28	$ 0.96	$ 0.53
Subsequent event
Subsequent Event [Line Items]
Dividends declared per common share	$ 0.32
Authorized amount of common Stock share repurchase	$ 3,000,000,000
Aggregate remaining authorization amount of common Stock share repurchase	$ 4,400,000,000
Date Dividends Declared	Nov. 02, 2016
Date Dividends To Be Paid	Dec. 22, 2016
Date of Shareholders of Record	Dec. 08, 2016
Consideration in cash		$ 240,000,000