Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Feb. 07, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	AMERICAN INTERNATIONAL GROUP INC
Entity Central Index Key	0000005272
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 56,480,000,000
Entity Common Stock, Shares Outstanding		902,468,889
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Fixed maturity securities:
Bonds available for sale, at fair value (amortized cost: 2017 - $225,461; 2016 - $232,241)	$ 238,992	$ 241,537
Other bond securities, at fair value (See Note 6)	12,772	13,998
Equity Securities:
Common and preferred stock available for sale, at fair value (cost: 2017 - $1,305; 2016 - $1,697)	1,708	2,078
Other common and preferred stock, at fair value (See Note 6)	589	482
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2017 - $5; 2016 - $11)	37,023	33,240
Other invested assets (portion measured at fair value: 2017 - $6,248; 2016 - $6,946)	20,822	24,538
Short-term investments (portion measured at fair value: 2017 - $2,615; 2016 - $3,341)	10,386	12,302
Total investments	322,292	328,175
Cash	2,362	1,868
Accrued investment income	2,356	2,495
Premiums and other receivables, net of allowance	10,248	10,465
Reinsurance assets, net of allowance	33,024	21,901
Deferred income taxes	14,033	21,332
Deferred policy acquisition costs	10,994	11,042
Other assets, including restricted cash of $317 in 2017 and $193 in 2016 (portion measured at fair value: 2017 - $922; 2016 - $1,809)	10,194	10,815
Separate account assets, at fair value	92,798	82,972
Assets held for sale	0	7,199
Total assets	498,301	498,264
Liabilities:
Liability for unpaid losses and loss adjustment expenses	78,393	77,077
Unearned premiums	19,030	19,634
Future policy benefits for life and accident and health insurance contracts	45,432	42,204
Policyholder contract deposits (portion measured at fair value: 2017 - $4,150; 2016 - $3,058)	135,602	132,216
Other policyholder funds (portion measured at fair value: 2017 - $0; 2016 - $5)	3,648	3,989
Other liabilities (portion measured at fair value: 2017 - $1,124; 2016 - $2,016)	26,050	26,296
Long-term debt (portion measured at fair value: 2017 - $2,888; 2016 - $3,428)	31,640	30,912
Separate account liabilities	92,798	82,972
Liabilities held for sale	0	6,106
Total liabilities	432,593	421,406
Contingencies, commitments and guarantees (see Note 16)
AIG shareholders' equity:
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2017 - 1,906,671,492 and 2016 - 1,906,671,492	4,766	4,766
Treasury stock, at cost; 2017 - 1,007,626,835; 2016 - 911,335,651 shares of common stock	(47,595)	(41,471)
Additional paid-in capital	81,078	81,064
Retained earnings	21,457	28,711
Accumulated other comprehensive income (loss)	5,465	3,230
Total AIG shareholders' equity	65,171	76,300
Non-redeemable noncontrolling interests	537	558
Total equity	65,708	76,858
Total liabilities and equity	$ 498,301	$ 498,264

CONSOLIDATED BALANCE SHEETS (Parenthetical - assets and liabilities) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Assets:
Bonds available for sale, amortized cost	$ 225,461	$ 232,241
Common and preferred stock available for sale, cost	1,305	1,697
Mortgage and other loans receivable, portion measured at fair value	5	11
Other invested assets, portion measured at fair value	6,248	6,946
Short-term investments, portion measured at fair value	2,615	3,341
Other assets, restricted cash	317	193
Other assets, portion measured at fair value	922	1,809
Liabilities:
Policyholder contract deposits, portion measured at fair value	4,150	3,058
Other policyholder funds, portion measured at fair value	0	5
Other liabilities, portion measured at fair value	1,124	2,016
Long-term debt, portion measured at fair value	$ 2,888	$ 3,428

CONSOLIDATED BALANCE SHEETS (Parenthetical - equity) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
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	1,007,626,835	911,335,651

CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Premiums	$ 31,374	$ 34,393	$ 36,655
Policy fees	2,935	2,732	2,755
Net investment income	14,179	14,065	14,053
Net realized capital gains (losses):
Total other-than-temporary impairments on available for sale securities	(196)	(458)	(556)
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss)	(31)	(29)	(35)
Net other-than-temporary impairments on available for sale securities recognized in net income (loss)	(227)	(487)	(591)
Other realized capital gains (losses)	(1,153)	(1,457)	1,367
Total net realized capital gains (losses)	(1,380)	(1,944)	776
Other income	2,412	3,121	4,088
Total revenues	49,520	52,367	58,327
Benefits, losses and expenses:
Policyholder benefits and losses incurred	29,972	32,437	31,345
Interest credited to policyholder account balances	3,592	3,705	3,731
Amortization of deferred policy acquisition costs	4,288	4,521	5,236
General operating and other expenses	9,107	10,989	12,686
Interest expense	1,168	1,260	1,281
(Gain) loss on extinguishment of debt	(5)	74	756
Net (gain) loss on sale of divested businesses	(68)	(545)	11
Total benefits, losses and expenses	48,054	52,441	55,046
Income (loss) from continuing operations before income tax expense (benefit)	1,466	(74)	3,281
Income tax expense (benefit):
Current	636	576	820
Deferred	6,890	(391)	239
Income tax expense (benefit)	7,526	185	1,059
Income (loss) from continuing operations	(6,060)	(259)	2,222
Income (loss) from discontinued operations, net of income tax expense	4	(90)	0
Net income (loss)	(6,056)	(349)	2,222
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	28	500	26
Net income (loss) attributable to AIG	$ (6,084)	$ (849)	$ 2,196
Basic:
Income (loss) from continuing operations	$ (6.54)	$ (0.7)	$ 1.69
Income (loss) from discontinued operations	0	(0.08)	0
Net income (loss) attributable to AIG	(6.54)	(0.78)	1.69
Diluted:
Income (loss) from continuing operations	(6.54)	(0.7)	1.65
Income (loss) from discontinued operations	0	(0.08)	0
Net income (loss) attributable to AIG	$ (6.54)	$ (0.78)	$ 1.65
Weighted average shares outstanding:
Basic	930,561,286	1,091,085,131	1,299,825,350
Diluted	930,561,286	1,091,085,131	1,334,464,883
Dividends declared per common share	$ 1.28	$ 1.28	$ 0.81

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ (6,056)	$ (349)	$ 2,222
Other comprehensive income (loss), net of tax
Change in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken	367	(270)	(347)
Change in unrealized appreciation (depreciation) of all other investments	1,288	839	(6,762)
Change in foreign currency translation adjustments	539	250	(1,100)
Change in retirement plan liabilities adjustment	41	(126)	123
Other comprehensive income	2,235	693	(8,086)
Comprehensive income (loss)	(3,821)	344	(5,864)
Comprehensive income (loss) attributable to noncontrolling interests	28	500	20
Comprehensive income (loss) attributable to AIG	$ (3,849)	$ (156)	$ (5,884)

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
Common stock issued under stock plans				13	(13)
Purchase of common stock	(10,895)	(10,895)		(10,895)
Net income (loss) attributable to AIG or noncontrolling interests	2,222	2,196				2,196		26
Dividends	(1,028)	(1,028)				(1,028)
Other Comprehensive Income (Loss)	(8,086)	(8,080)					(8,080)	(6)
Current and deferred income taxes	(9)	(9)			(9)
Net decrease due to deconsolidation	231							231
Contributions from noncontrolling interests	1							1
Distributions to noncontrolling interests	(82)							(82)
Other	584	576		2	574	0		8
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	(89)	(89)		86	(175)
Purchase of common stock	(11,460)	(11,460)		(11,460)
Net income (loss) attributable to AIG or noncontrolling interests	(349)	(849)				(849)		500
Dividends	(1,372)	(1,372)				(1,372)
Other Comprehensive Income (Loss)	693	693					693	0
Current and deferred income taxes	(208)	(208)			(208)
Net increase due to acquisitions and consolidations	43							43
Contributions from noncontrolling interests	22							22
Distributions to noncontrolling interests	(570)							(570)
Other	(62)	(73)		1	(63)	(11)		11
Balance at Dec. 31, 2016	76,858	76,300	4,766	(41,471)	81,064	28,711	3,230	558
Increase (Decrease) in Stockholders' Equity
Common stock issued under stock plans	(178)	(178)		147	(325)
Purchase of common stock	(6,275)	(6,275)		(6,275)
Net income (loss) attributable to AIG or noncontrolling interests	(6,056)	(6,084)				(6,084)		28
Dividends	(1,172)	(1,172)				(1,172)
Other Comprehensive Income (Loss)	2,235	2,235					2,235	0
Current and deferred income taxes	(4)	(4)			(4)	0
Net increase due to acquisitions and consolidations	101							101
Contributions from noncontrolling interests	42							42
Distributions to noncontrolling interests	(193)							(193)
Other	350	349		4	343	2		1
Balance at Dec. 31, 2017	$ 65,708	$ 65,171	$ 4,766	$ (47,595)	$ 81,078	$ 21,457	$ 5,465	$ 537

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Cash flows from operating activities:
Net income (loss)	$ (6,056)	$ (349)	$ 2,222
(Income) loss from discontinued operations	(4)	90	0
Noncash revenues, expenses, gains and losses included in income:
Net gains on sales of securities available for sale and other assets	(431)	(2,033)	(1,111)
Net (gains) losses on sales of divested businesses	(68)	(545)	11
(Gains) losses on extinguishment of debt	(5)	74	756
Unrealized (gains) losses in earnings - net	79	1,465	(522)
Equity in income from equity method investments, net of dividends or distributions	(401)	(54)	(481)
Depreciation and other amortization	3,874	4,090	4,629
Impairments of assets	685	1,116	1,500
Changes in operating assets and liabilities:
Insurance reserves	2,637	5,325	1,645
Premiums and other receivables and payables - net	410	536	(70)
Reinsurance assets and funds held under reinsurance treaties	(10,870)	(1,804)	1,525
Capitalization of deferred policy acquisition costs	(4,819)	(5,216)	(5,808)
Current and deferred income taxes - net	6,981	(308)	548
Other, net	(597)	(4)	(1,967)
Total adjustments	(2,525)	2,642	655
Net cash provided by (used in) operating activities	(8,585)	2,383	2,877
Sales or distribution of:
Available for sale securities	31,082	30,103	28,721
Other securities	3,792	4,164	6,055
Other invested assets	7,664	9,554	8,002
Divested businesses, net	792	2,809	0
Maturities of fixed maturity securities available for sale	29,011	25,749	24,734
Principal payments received on and sales of mortgage and other loans receivable	5,742	6,074	5,104
Purchases of:
Available for sale securities	(49,856)	(54,978)	(48,848)
Other securities	(1,147)	(935)	(2,704)
Other invested assets	(2,874)	(3,421)	(3,573)
Mortgage and other loans receivable	(9,369)	(10,651)	(10,140)
Net change in restricted cash	(121)	385	1,457
Net change in short-term investments	2,098	(3,089)	1,163
Other, net	(2,143)	(1,020)	(1,509)
Net cash provided by (used in) investing activities	14,671	4,744	8,462
Proceeds from (payments for)
Policyholder contract deposits	17,908	18,100	17,029
Policyholder contract withdrawals	(15,785)	(14,041)	(14,619)
Issuance of long-term debt	3,356	5,954	6,867
Repayments of long-term debt	(3,698)	(4,082)	(9,805)
Purchase of Common Stock	(6,275)	(11,460)	(10,691)
Dividends paid	(1,172)	(1,372)	(1,028)
Other, net	(31)	68	818
Net cash provided by (used in) financing activities	(5,697)	(6,833)	(11,429)
Effect of exchange rate changes on cash	(28)	52	(39)
Net increase (decrease) in cash	361	346	(129)
Cash at beginning of year	1,868	1,629	1,758
Change in cash of businesses held for sale	133	(107)	0
Cash at end of Period	$ 2,362	$ 1,868	$ 1,629

Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash paid during the period for:
Interest	$ 1,282	$ 1,331	$ 1,368
Taxes	544	493	511
Non-cash investing/financing activities:
Interest credited to policyholder contract deposits included in financing activities	3,309	3,430	3,676
International Lease Finance Corporation (ILFC)
Sale of businesses and securities
Non-cash consideration received from sale	0	0	0
Aer Cap
Sale of businesses and securities
Non-cash consideration received from sale	0	0	500
United Guaranty Corporation
Sale of businesses and securities
Non-cash consideration received from sale	$ 0	$ 1,101	$ 0

BASIS OF PRESENTATION	12 Months Ended
BASIS OF PRESENTATION	Dec. 31, 2017
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 80 countries and jurisdictions. AIG companies serve commercial 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. The consolidated financial statements include the accounts of AIG Parent, our controlled subsidiaries (generally through a greater than 50 percent ownership of voting rights and voting interests), and variable interest entities (VIEs) of which we are the primary beneficiary. Equity investments in entities that we do not consolidate, including corporate entities in which we have significant influence and partnership and partnership-like entities in which we have more than minor influence over the operating and financial policies, are accounted for under the equity method unless we have elected the fair value option. Certain of our foreign subsidiaries included in the 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 Consolidated Financial Statements has been considered for adjustment and/or disclosure. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). All material intercompany accounts and transactions have been eliminated. Sales of Businesses Sale of Certain Insurance Subsidiary Operations to Fairfax 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, Venezuela and Turkey. Fairfax will also acquire renewal rights for the portfolios of local business written by our operations in Bulgaria, the 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 $234 million. The transaction is closing on a country-by-country basis as the regulatory approvals are obtained. In the second quarter of 2017, the sale of operations in Turkey as well as the renewal rights in Bulgaria, the Czech Republic, Hungary, Poland and Slovakia were completed, which resulted in total cash proceeds of $48 million. In the third quarter of 2017, the sale of the operations in Colombia, Chile and Argentina were completed, which resulted in cash proceeds of $168 million. Substantially all of the operations and renewal rights that we agreed to sell Fairfax were sold by December 31, 2017. AIG Fuji Life Insurance On November 14, 2016, we entered into an agreement to sell Fuji Life to FWD Group, the insurance arm of Pacific Century Group. Total cash consideration to us was approximately $333 million. The transaction closed on April 30, 2017. United Guaranty On December 31, 2016, we sold our 100 percent interest in United Guaranty Corporation (United Guaranty) and certain related affiliates to Arch Capital Group Ltd. (Arch) for total consideration of $3.3 billion, consisting of $2.2 billion of cash and approximately $1.1 billion of newly issued Arch convertible non-voting common-equivalent preferred stock and reported a pre-tax gain of approximately $697 million. We also received $261 million in pre-closing dividends from United Guaranty in the fourth quarter of 2016. However, due to pending regulatory approvals, United Guaranty Asia was not included in the December 31, 2016 closing and $40 million of cash consideration was retained by Arch. The sale of United Guaranty Asia was completed on July 1, 2017 and we received the $40 million cash proceeds. Concurrent with the closing, we entered into reinsurance agreements with Arch, including an amended and restated 50 percent quota share reinsurance agreement and an aggregate excess of loss reinsurance agreement, pursuant to which we will continue to be exposed to certain United Guaranty policies written between 2009 and 2016. Ascot On September 16, 2016, we entered into an agreement to sell our 20 percent interest in Ascot Underwriting Holdings Ltd. and our 100 percent interest in the related syndicate-funding subsidiary Ascot Corporate Name Ltd. to Canada Pension Plan Investment Board (CPPIB). Total consideration for the transaction was $1.1 billion resulting in a pre-tax gain of approximately $162 million attributable to AIG’s controlling interest, inclusive of CPPIB’s recapitalization of Syndicate 1414’s Funds at Lloyd’s (FAL) capital requirements. The transaction closed on November 18, 2016, and we received approximately $244 million in net cash proceeds. Korea Fund On November 17, 2016, an AIG sponsored Fund (the Korea Fund), completed the sale of mixed-use commercial complex in Seoul, South Korea commonly known as the Seoul International Finance Center to Brookfield Properties for a total consideration of $2.5 billion, of which $1.2 billion was used to repay the fund’s debt. The sale resulted in a pre-tax gain of $1.1 billion included in Other Income, of which $464 million was attributable to AIG’s controlling interest. NSM On August 31, 2016, we sold our controlling interest in NSM Insurance Group LLC (NSM), a managing general agent to ABRY Partners, a private equity firm, for consideration of $201 million resulting in a pre-tax 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. 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: liability for unpaid losses and loss adjustment expenses (loss reserves); 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 policy 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; allowances for loan losses; liability for legal contingencies; fair value measurements of certain financial assets and liabilities; and 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 and provisional estimates associated with the Tax Act. 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. Out of Period Adjustments For the year ended December 31, 2016, we recorded out of period adjustments relating to prior years that increased Net loss attributable to AIG by $174 million, increased Loss from continuing operations before income taxes by $57 million and decreased adjusted pre-tax income by $6 million. The out of period adjustments are primarily related to income tax liabilities and ceded loss adjustment expenses. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net Income attributable to AIG for the years ended December 31, 2015 and 2014 would have decreased by $67 million and $12 million, respectively. For the year ended December 31, 2015, we recorded out of period adjustments relating to prior years that decreased Net income attributable to AIG by $156 million, decreased Income from continuing operations before income taxes by $376 million and decreased adjusted pre-tax income by $235 million. The out of period adjustments are primarily related to impairments of Other invested assets and changes in loss reserves and income tax liabilities. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the year ended December 31, 2014 would have decreased by $51 million.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2017

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. Summary of Significant Accounting Policies

The following table identifies our significant accounting policies presented in other Notes to these Consolidated Financial Statements, with a reference to the Note where a detailed description can be found:

Note 6. Investments

Fixed maturity and equity securities
Other invested assets
Short-term investments
Net investment income
Net realized capital gains (losses)
Other-than-temporary impairments

Note 7. Lending Activities

Mortgage and other loans receivable – net of allowance

Note 8. Reinsurance

Reinsurance assets – net of allowance
Retroactive reinsurance

Note 9. Deferred Policy Acquisition Costs

Deferred policy acquisition costs
Amortization of deferred policy acquisition costs

Note 10. Variable Interest Entities

Note 11. Derivatives and Hedge Accounting

Derivative assets and liabilities, at fair value

Note 12. Goodwill

Note 13. Insurance Liabilities

Liability for unpaid losses and loss adjustment expenses
Discounting of reserves
Future policy benefits
Policyholder contract deposits
Other policyholder funds

Note 14. Variable Life and Annuity Contracts

Note 15. Debt

Long-term debt

Note 16. Contingencies, Commitments and Guarantees

Legal contingencies

Note 18. Earnings Per Share

Note 23. Income Taxes

Other significant accounting policies

Premiums for short-duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and earned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of coverage. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract. As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies throughout the year.

Reinsurance premiums ceded under prospective reinsurance agreements are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate.

Premiums for long-duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued.

Policy fees represent fees recognized from universal life and investment-type products consisting of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. Policy fees are recognized as revenues in the period in which they are assessed against policyholders, unless the fees are designed to compensate AIG for services to be provided in the future. Fees deferred as unearned revenue are amortized in relation to the incidence of expected gross profits to be realized over the estimated lives of the contracts, similar to DAC.

Other income includes advisory fee income from the Life and Retirement broker dealer business, as well as legal recoveries of $27 million, $44 million and $94 million from legacy crisis and other matters in 2017, 2016 and 2015, respectively.

Other income from our Other Operations category consists of the following:

Changes in fair value relating to financial assets and liabilities for which the fair value option has been elected.
Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable.
Dividend income from common and preferred stock and earnings distributions from other investments.
Changes in the fair value of other securities sold but not yet purchased, futures, hybrid financial instruments, securities purchased under agreements to resell, and securities sold under agreements to repurchase.
Income earned on real estate based investments and related realized gains and losses from sales, property level impairments and financing costs.
Exchange gains and losses resulting from foreign currency transactions.
Earnings from private equity funds and hedge fund investments accounted for under the equity method.
Changes in the fair value of derivatives at AIG Financial Products Corp. and related subsidiaries (collectively AIGFP).

Cash represents cash on hand and non-interest-bearing demand deposits.

Short-term investments consist of interest-bearing cash equivalents, time deposits, securities purchased under agreements to resell, and investments, such as commercial paper, with original maturities within one year from the date of purchase.

Premiums and other receivables – net of allowance include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the Direct Investment book (DIB) and Global Capital Markets (GCM) and other receivables. Trade receivables for GCM include cash collateral posted to derivative counterparties that is not eligible to be netted against derivative liabilities. The allowance for doubtful accounts on premiums and other receivables was $236 million and $279 million at December 31, 2017 and 2016, respectively.

Other assets consist of sales inducement assets, prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, restricted cash and derivative assets.

We offer sales inducements which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Sales inducements provided to the contract holder are recognized in Policyholder contract deposits in the Consolidated Balance Sheets. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC (see Note 9 herein). To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest, and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $738 million and $808 million at December 31, 2017 and 2016, respectively. The amortization expense associated with these assets is reported within Interest credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $94 million, $77 million and $88 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and equipment). Expenditures for maintenance and repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically assess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding five years. Real estate, fixed assets and other long-lived assets are assessed for impairment when impairment indicators exist.

Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the account assets. Separate accounts may also include deposits for funds held under stable value wrap funding agreements, although the majority of stable value wrap sales are measured based on the notional amount included in assets under management and do not include the receipt of funds. For a more detailed discussion of separate accounts see Note 14 herein.

Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase, securities sold but not yet purchased, derivative liabilities and deferred gains on retroactive reinsurance agreements. We have entered into certain insurance and reinsurance contracts, primarily in our General Insurance companies, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on such contracts, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the Consolidated Balance Sheets. Net proceeds of these deposits are invested and generate Net investment income. As amounts are paid, consistent with the underlying contracts, the deposit liability is reduced. Also included in Other liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets.

Securities sold but not yet purchased represent sales of securities not owned at the time of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Fair values of securities sold but not yet purchased are based on current market prices.

Foreign currency: Financial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a consolidated entity are remeasured into that entity’s functional currency resulting in exchange gains or losses recorded in income. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income.

Non-redeemable noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent.

Accounting Standards Adopted During 2017

Derivative Contract Novations

In March 2016, the Financial Accounting Standards Board (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.

We adopted the standard on its required effective date of January 1, 2017. The adoption of this standard did not 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.

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.

Interest Held through Related Parties that are under Common Control

In October 2016, the FASB issued an accounting standard that amends the consolidation analysis for a reporting entity that is the single decision maker of a variable interest entity (VIE). The new guidance will require the decision maker’s evaluation of its interests held through related parties that are under common control on a proportionate basis (rather than in their entirety) when determining whether it is the primary beneficiary of that VIE. The amendment does not change the characteristics of a primary beneficiary.

Clarifying the Definition of a Business

In January 2017, the FASB issued an accounting standard that changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The new standard will require an entity to evaluate if substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar assets; if so, the set of transferred assets and activities is not a business. At a minimum, a set must include an input and a substantive process that together significantly contribute to the ability to create output.

We adopted the standard on October 1, 2017. The impact of the standard is primarily related to our investments in real estate. As a result of the adoption, we anticipate that future acquisitions of certain real estate investments will no longer meet the definition of a business and will be treated as asset acquisitions. As a result, no goodwill would be recognized from these investments and certain costs can be capitalized as part of asset acquisitions. 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.

We will adopt this standard using the modified retrospective approach on its required effective date of January 1, 2018. Our analysis of revenues indicates that substantially all of our revenues are from sources excluded from the scope of the standard. For those revenue sources within the scope of the standard, there are no material changes in the timing or measurement of revenues based upon the guidance. As substantially all of our revenue sources are excluded from the scope of the standard, the adoption of the standard will not have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures.

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued an accounting standard that will require equity investments that do not follow the equity method of accounting or are not subject to consolidation to be measured at fair value with changes in fair value recognized in earnings, while financial liabilities for which fair value option accounting has been elected, changes in fair value due to instrument-specific credit risk will be presented separately in other comprehensive income. The standard allows the election to record equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes with changes in the carrying value of the equity investments recorded in earnings. The standard also updates certain fair value disclosure requirements for financial instruments carried at amortized cost.

We will adopt this standard on its effective date of January 1, 2018 using the modified retrospective approach. Based on our review, substantially all of our assets and liabilities are not within the scope of the standard. The adoption of the standard will not have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures.

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.

We plan to adopt the standard on its effective date of January 1, 2019 using a modified retrospective approach upon adoption. We are currently quantifying the expected recognition on our balance sheet for a right to use asset and a lease liability as required by the standard. We do not expect the impact of the standard to have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures.

Financial Instruments - Credit Losses

In June 2016, the FASB issued an accounting standard that will change how entities account for credit losses for most financial assets, trade receivables and reinsurance receivables. The standard will replace the existing incurred loss impairment model with a new “current expected credit loss model” that generally will result in earlier recognition of credit losses. The standard will apply to financial assets subject to credit losses, including loans measured at amortized cost, reinsurance receivables and certain off-balance sheet credit exposures. Additionally, the impairment of available-for-sale debt securities, including purchased credit deteriorated securities, are subject to the new guidance and 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 on January 1, 2020, with early adoption permitted on January 1, 2019. We are continuing to develop our implementation plan to adopt the standard and are assessing the impact of the standard on our reported consolidated financial condition, results of operations, cash flows and required disclosures. While we expect an increase in our allowances for credit losses for the financial instruments within scope of the standard, given the objective of the new standard, the amount of any change will be dependent on our portfolios’ composition and quality at the adoption date as well as economic conditions and forecasts at that time.

Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB issued an accounting standard that addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide clarity on the treatment of eight specifically defined types of cash inflows and outflows.

We will adopt this standard retrospectively on its effective date of January 1, 2018. The standard addresses presentation in the statement of cash flows only and will have no effect on our reported consolidated financial condition, results of operations or required disclosures.

Intra-Entity Transfers of Assets Other than Inventory

In October 2016, the FASB issued an accounting standard that will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset is sold to a third party.

We will adopt the standard on its effective date of January 1, 2018 using a modified retrospective approach. The adoption of this standard will not have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclosures.

Restricted Cash

In November 2016, the FASB issued an accounting standard that provides guidance on the presentation of restricted cash in the Statement of Cash Flows. Entities will be required to explain the changes during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents in the statement of cash flows.

We will adopt the standard retrospectively on its effective date of January 1, 2018. The standard addresses presentation of restricted cash in the Statement of Cash Flows only and will have no effect on our reported consolidated financial condition, results of operations or required disclosures.

Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued an accounting standard that eliminates the requirement to calculate the implied fair value of goodwill, through a hypothetical purchase price allocation, to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value not to exceed the total amount of goodwill allocated to that reporting unit. An entity should also consider income tax effects from tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.

The standard is effective on January 1, 2020, with early adoption permitted. We are evaluating the timing of our adoption. Any impact of the standard will be dependent on the market conditions of the reporting units at the time of adoption.

Gains and Losses from the Derecognition of Nonfinancial Assets

In February 2017, the FASB issued an accounting standard that clarifies the scope of the derecognition guidance for the sale, transfer and derecognition of non-financial assets to noncustomers that aligns with the new revenue recognition principles. The standard also adds new accounting for partial sales of nonfinancial assets (including in substance real estate) that requires an entity to derecognize a nonfinancial asset when it 1) ceases to have a controlling financial interest in the legal entity that holds the asset based on the consolidation model and 2) transfers control of the asset based on the revenue recognition model.

We will adopt this standard on its effective date of January 1, 2018 under the modified retrospective approach. Based on our evaluation, we do not expect the standard to have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclosures.

Improving the Presentation of Net Periodic Pension and Postretirement Benefit Cost

In March 2017, the FASB issued an accounting standard that requires entities to report the service cost component of net periodic pension and postretirement benefit costs in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit costs are required to be separately presented in the income statement. The amendments also allow only the service cost component to be eligible for capitalization when applicable.

We will adopt this standard on its effective date of January 1, 2018. The standard primarily addresses the presentation of the service cost component of net periodic benefit costs in the income statement. AIG’s U.S. pension plans are frozen and no longer accrue benefits, which are reflected as service costs. Therefore, the standard will have no material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures.

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued an accounting standard that shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. The standard does not require an accounting change for securities held at a discount, which continue to be amortized to maturity.

We plan to adopt the standard retrospectively on its effective date, January 1, 2019. We do not expect the standard to have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclosures.

Modification of Share-Based Payment Awards

In May 2017, the FASB issued an accounting standard that provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting.

We will prospectively adopt this standard on its effective date of January 1, 2018 and do not expect the standard to have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures.

Derivatives and Hedging

In August 2017, the FASB issued an accounting standard that improves and expands hedge accounting for both financial and commodity risks. The provisions of the amendment are intended to better align the accounting with an entity’s risk management activities, enhance the transparency on how the economic results are presented in the financial statements and the footnote, and simplify the application of hedge accounting treatment.

The standard is effective on January 1, 2019, with early adoption permitted. We are evaluating the timing of adoption and are assessing the impact of the standard on our reported consolidated financial condition, results of operations, cash flows and required disclosures.

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

In February 2018, the FASB issued an accounting standard that allows the optional reclassification of stranded tax effects within accumulated other comprehensive income to retained earnings that arise due to the enactment of the Tax Cuts and Jobs Act of 2017 (Tax Act). The amount of the reclassification would reflect the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of enactment of the Tax Act and other income tax effects of the Tax Act on items remaining in accumulated other comprehensive income.

We plan to early adopt the standard using a retrospective approach effective January 1, 2018. For more information on the adoption of the Tax Act, see Note 23.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2017

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.

In the fourth quarter of 2017, we finalized our plan to reorganize our operating model. Prior to the fourth quarter of 2017, we reported our results as follows:

Commercial Insurance business included our Liability and Financial Lines and Property and Special Risks operating segments;
Consumer Insurance business included our Individual Retirement, Group Retirement, Life Insurance and Personal Insurance operating segments
Other Operations category consisted of businesses and items not allocated to our operating segments, including Institutional Markets, United Guaranty and Fuji Life.
Legacy Portfolio segment consisted of Legacy Insurance Lines representing exited or discontinued product lines, policy forms or distribution channels.

We now report our results of operations as follows:

General Insurance

General Insurance business is presented as two operating segments:

North America — consists of insurance businesses in the United States, Canada and Bermuda.
International — consists of insurance businesses in Japan, United Kingdom, Europe, Asia Pacific, Latin America, Puerto Rico, Australia, the Middle East and Africa.

Results are presented before internal reinsurance transactions. North America and International operating segments consist of the following products:

– Commercial Lines — consists of Liability, Financial Lines, Property and Special Risks.

– Personal Insurance — consists of Personal Lines and Accident and Health.

Life and Retirement

Life and Retirement business is presented as four operating segments:

Individual Retirement — consists of fixed annuities, fixed index annuities, variable annuities and retail mutual funds.
Group Retirement — consists of group mutual funds, group fixed annuities, group variable annuities, individual annuity and investment products, financial planning and advisory services.
Life Insurance — primary products in the U.S. include term life and universal life insurance. International operations include distribution of life and health products in the UK and Ireland.
Institutional Markets — consists of stable value wrap products, structured settlement and pension risk transfer annuities, corporate- and bank-owned life insurance and guaranteed investment contracts (GICs).

Other Operations

The Other Operations category consists of:

Income from assets held by AIG Parent and other corporate subsidiaries.
General operating expenses not attributable to specific reporting segments.
Interest expense.
Blackboard — a data-enabled, digital subsidiary that provides the commercial insurance industry with alternative solutions using digital technology, data analytics and automation
United Guaranty — Mortgage insurance protects mortgage lenders and investors against the increased risk of borrower default related to high loan-to-value mortgages. The sale of this business was completed on December 31, 2016.
Fuji Life — consists of term insurance, life insurance, endowment policies and annuities. The sale of this business was completed on April 30, 2017.

Legacy Portfolio

The Legacy Portfolio segment consists of:

Legacy Insurance Lines represent exited or discontinued product lines, policy forms or distribution channels.

Legacy General Insurance Run-Off Lines — consists of asbestos and environmental exposures and other exposures within certain Property and Casualty profit centers no longer actively marketed, including excess workers’ compensation, environmental impairment liability, public entity liability, accident & health, physicians and surgeons professional liability, and various other workers’ compensation and general liability exposures.
Legacy Life and Retirement Run-Off Lines — include whole life, long-term care and exited accident & health product lines. Also includes certain structured settlement, pension risk transfer annuities and single premium immediate annuities written prior to April 2012.
Legacy Investments — include investment classes that we have placed into run-off.

On December 31, 2016, we completed the sale of United Guaranty to Arch. See Note 1 for a further discussion.

In the second quarter of 2015, a United Guaranty subsidiary and certain of our General Insurance companies entered into a 50 percent quota share reinsurance agreement 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 effect of this intercompany reinsurance arrangements is included in the results of Property and Special Risks and Other Operations for all periods presented. Previously, this arrangement was eliminated for purposes of segment reporting. Concurrent with the closing of the sale of United Guaranty, we amended and restated this arrangement and expect the results of this arrangement to continue to be reported in Property and Special Risks.

Investment income of the General Insurance companies is attributed to the North America and International operating segments based on an internal investment income allocation model. The model estimates investable funds based primarily on loss reserves and unearned premiums. Investment income of the Life and Retirement companies is attributed to the Individual Retirement, Group Retirement, Life Insurance and Institutional Markets operating segments as well as the Legacy Life and Retirement Run-Off Lines based on invested assets in segregated product line portfolios; income from invested assets in excess of liabilities is allocated to product lines based on internal capital estimates.

We evaluate segment performance based on adjusted revenues and adjusted pre-tax income (loss). Adjusted revenues and adjusted pre-tax income (loss) are derived by excluding certain items from total revenues and net income (loss) attributable to AIG, respectively. For the items excluded from adjusted revenues and adjusted pre-tax income (loss) see the table below.

The following table presents AIG’s continuing operations by operating segment:

				Net						Adjusted
		Total		Investment		Interest	Amortization			Pre-Tax
(in millions)		Revenues		Income		Expense		of DAC		Income (Loss)
2017
General Insurance
North America	$	14,600	$	3,145	$	31	$	1,305	$	(232)
International		15,094		523		(9)		2,460		(581)
Total General Insurance		29,694		3,668		22		3,765		(813)
Life and Retirement
Individual Retirement		5,514		4,013		58		415		2,289
Group Retirement		2,848		2,164		32		84		1,004
Life Insurance		4,056		1,044		13		239		274
Institutional Markets		3,168		595		6		5		264
Total Life and Retirement		15,586		7,816		109		743		3,831
Other Operations		1,413		53		968		(9)		(1,405)
Legacy Portfolio		4,391		2,776		122		76		1,470
AIG Consolidation and elimination		(308)		(280)		(53)		4		75
Total AIG Consolidated adjusted revenues and adjusted
pre-tax income	$	50,776	$	14,033	$	1,168	$	4,579	$	3,158
Reconciling Items from adjusted pre-tax income to
pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed
living benefits		146		146		-		-		146
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		-		-		(291)		303
Other income (expense) - net		(49)		-		-		-		-
Gain on extinguishment of debt		-		-		-		-		5
Net realized capital losses		(1,380)		-		-		-		(1,380)
Income from divested businesses		-		-		-		-		68
Non-operating litigation reserves and settlements		27		-		-		-		129
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		(303)
Net loss reserve discount (benefit) charge		-		-		-		-		(187)
Pension expense related to a one-time lump sum payment to
former employees		-		-		-		-		(60)
Restructuring and other costs		-		-		-		-		(413)
Revenues and Pre-tax income	$	49,520	$	14,179	$	1,168	$	4,288	$	1,466
2016
General Insurance
North America	$	17,005	$	3,041	$	28	$	1,444	$	(2,399)
International		16,135		513		-		2,677		348
Total General Insurance		33,140		3,554		28		4,121		(2,051)
Life and Retirement
Individual Retirement		5,758		3,878		50		298		2,269
Group Retirement		2,769		2,146		26		129		931
Life Insurance		3,818		1,035		12		182		(37)
Institutional Markets		1,433		563		4		4		265
Total Life and Retirement		13,778		7,622		92		613		3,428
Other Operations		2,517		207		978		72		(1,011)
Legacy Portfolio		5,250		2,913		282		108		1,007
AIG Consolidation and elimination		(494)		(351)		(120)		(117)		42
Total AIG Consolidated adjusted revenues and adjusted
pre-tax income	$	54,191	$	13,945	$	1,260	$	4,797	$	1,415
Reconciling Items from adjusted pre-tax income to
pre-tax income:
Changes in fair value of securities used to hedge guaranteed
living benefits		120		120		-		-		120
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		-		-		(276)		195
Other income (expense) - net		(44)		-		-		-		-
Loss on extinguishment of debt		-		-		-		-		(74)
Net realized capital losses		(1,944)		-		-		-		(1,944)
Loss from divested businesses		-		-		-		-		545
Non-operating litigation reserves and settlements		44		-		-		-		41
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		42
Net loss reserve discount (benefit) charge		-		-		-		-		427
Pension expense related to a one-time lump sum payment to
former employees		-		-		-		-		(147)
Restructuring and other costs		-		-		-		-		(694)
Revenues and Pre-tax income	$	52,367	$	14,065	$	1,260	$	4,521	$	(74)
2015
General Insurance
North America	$	18,482	$	3,196	$	13	$	1,699	$	558
International		16,186		550		-		2,620		70
Total General Insurance		34,668		3,746		13		4,319		628
Life and Retirement
Individual Retirement		6,450		3,805		27		431		1,812
Group Retirement		2,834		2,192		15		50		1,100
Life Insurance		3,771		1,034		7		311		(51)
Institutional Markets		2,267		510		3		2		263
Total Life and Retirement		15,322		7,541		52		794		3,124
Other Operations		2,326		196		1,027		47		(825)
Legacy Portfolio		5,771		2,928		292		102		1,133
AIG Consolidation and elimination		(496)		(315)		(103)		(26)		(76)
Total AIG Consolidated adjusted revenues and adjusted
pre-tax income	$	57,591	$	14,096	$	1,281	$	5,236	$	3,984
Reconciling Items from adjusted pre-tax income to
pre-tax income:
Changes in fair value of securities used to hedge guaranteed
living benefits		(43)		(43)		-		-		(43)
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		-		-		-		(15)
Other income (expense) - net		(43)		-		-		-		-
Loss on extinguishment of debt		-		-		-		-		(756)
Net realized capital gains		776		-		-		-		776
Loss from divested businesses		(48)		-		-		-		(59)
Non-operating litigation reserves and settlements		94		-		-		-		82
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		(263)
Net loss reserve discount (benefit) charge		-		-		-		-		71
Restructuring and other costs		-		-		-		-		(496)
Revenues and Pre-tax income	$	58,327	$	14,053	$	1,281	$	5,236	$	3,281

The following table presents AIG’s year-end identifiable assets and capital expenditures by legal entity category:

	Year-End Identifiable Assets				Capital Expenditures
(in millions)		2017		2016		2017		2016
General Insurance companies	$	114,841	$	118,287	$	239	$	685
Life and Retirement companies		289,457		269,813		88		85
Other		105,425		122,016		156		349
AIG Consolidation and Elimination		(11,422)		(11,852)		-		-
Total Assets	$	498,301	$	498,264	$	483	$	1,119

The following table presents AIG’s consolidated total revenues and real estate and other fixed assets, net of accumulated depreciation, by major geographic area:

							Real Estate and Other Fixed Assets,
	Total Revenues^*						Net of Accumulated Depreciation
(in millions)		2017		2016		2015		2017		2016		2015
North America	$	34,149	$	36,871	$	41,680	$	1,630	$	1,326	$	1,819
International		15,371		15,496		16,647		892		1,334		1,316
Consolidated	$	49,520	$	52,367	$	58,327	$	2,522	$	2,660	$	3,135

* Revenues are generally reported according to the geographic location of the reporting unit. International revenues consists of revenues from our General Insurance International operating segment.

HELD-FOR-SALE CLASSIFICATION

12 Months Ended

Dec. 31, 2017

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 Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale.

At December 31, 2017, we had no businesses classified as held-for-sale. At December 31, 2016, the following businesses were reported as held-for-sale:

United Guaranty Asia

On August 15, 2016, we entered into a definitive agreement to sell our 100 percent interest in United Guaranty and certain related affiliates to Arch. This transaction closed on December 31, 2016 and we received proceeds of approximately $3.3 billion, consisting of $2.2 billion of cash, and approximately $1.1 billion of newly issued Arch convertible non-voting common-equivalent preferred stock. We also received $261 million in pre-closing dividends from United Guaranty in the fourth quarter of 2016. However, due to pending regulatory approvals, United Guaranty Asia was not included in the December 31, 2016 closing and $40 million of cash consideration was retained by Arch. The sale of United Guaranty Asia was completed on July 1, 2017 and we received the $40 million cash proceeds.

Sale of Certain Insurance Subsidiary Operations to Fairfax

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, Venezuela and Turkey. Fairfax will also acquire renewal rights for the portfolios of local business written by our operations in Bulgaria, the 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 $234 million. The transaction is closing on a country-by-country basis as the regulatory approvals are obtained. In the second quarter of 2017, the sale of operations in Turkey as well as the renewal rights in Bulgaria, the Czech Republic, Hungary, Poland and Slovakia were completed, which resulted in total cash proceeds of $48 million. In the third quarter of 2017, the sale of the operations in Colombia, Chile and Argentina were completed, which resulted in cash proceeds of $168 million. Substantially all of the operations and renewal rights that we agreed to sell Fairfax were sold by December 31, 2017.

AIG Fuji Life Insurance

On November 14, 2016, we entered into an agreement to sell Fuji Life to FWD Group, the insurance arm of Pacific Century Group. Total cash consideration to us was approximately $333 million. The sale resulted in a pre-tax loss of $591 million. The sale of Fuji Life was completed on April 30, 2017.

The following table summarizes the components of assets and liabilities held-for-sale on the Consolidated Balance Sheets at December 31, 2016:

		December 31,
(in millions)		2016
Assets:
Fixed maturity securities	$	6,045
Equity securities		149
Mortgage and other loans receivable, net		137
Other invested assets		2
Short-term investments		130
Cash		133
Accrued investment income		21
Premiums and other receivables, net of allowance		351
Reinsurance assets, net of allowance		8
Deferred policy acquisition costs		471
Other assets		273
Assets of businesses held for sale		7,720
Less: Loss Accrual		(521)
Total assets held for sale	$	7,199
Liabilities:
Liability for unpaid losses and loss adjustment expenses	$	402
Unearned premiums		297
Future policy benefits for life and accident and health insurance contracts		4,579
Other policyholder funds		378
Long-term debt		-
Other liabilities		450
Total liabilities held for sale	$	6,106

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2017

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

5. Fair Value Measurements

Fair Value Measurements on a Recurring Basis

We carry certain of our financial instruments at fair value. We define the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumptions.

The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions.

Fair Value Hierarchy

Assets and liabilities recorded at fair value in the 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.

The following is a description of the valuation methodologies used for instruments carried at fair value. These methodologies are applied to assets and liabilities across the levels discussed above, and it is the observability of the inputs used that determines the appropriate level in the fair value hierarchy for the respective asset or liability.

Valuation Methodologies of Financial Instruments Measured at Fair Value

Incorporation of Credit Risk in Fair Value Measurements

Our Own Credit Risk. Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposure to us at the balance sheet date by reference to observable AIG CDS or cash bond spreads. We calculate the effect of credit spread changes using discounted cash flow techniques that incorporate current market interest rates. A derivative counterparty’s net credit exposure to us is determined based on master netting agreements, when applicable, which take into consideration all derivative positions with us, as well as collateral we post with the counterparty at the balance sheet date. For a description of how we incorporate our own credit risk in the valuation of embedded derivatives related to certain annuity and life insurance products see Embedded Derivatives within Policyholder Contract Deposits below.
Counterparty Credit Risk. Fair value measurements for freestanding derivatives incorporate counterparty credit by determining the explicit cost for us to protect against our net credit exposure to each counterparty at the balance sheet date by reference to observable counterparty CDS spreads, when available. When not available, other directly or indirectly observable credit spreads will be used to derive the best estimates of the counterparty spreads. Our net credit exposure to a counterparty is determined based on master netting agreements, which take into consideration all derivative positions with the counterparty, as well as collateral posted by the counterparty at the balance sheet date.

Fair values for fixed maturity securities based on observable market prices for identical or similar instruments implicitly incorporate counterparty credit risk. Fair values for fixed maturity securities based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or other observable information.

For fair values measured based on internal models, the cost of credit protection is determined under a discounted present value approach considering the market levels for single name CDS spreads for each specific counterparty, the mid-market value of the net exposure (reflecting the amount of protection required) and the weighted average life of the net exposure. CDS spreads are provided to us by an independent third party. We utilize an interest rate based on the benchmark London Interbank Offered Rate (LIBOR) curve to derive our discount rates.

While this approach does not explicitly consider all potential future behavior of the derivative transactions or potential future changes in valuation inputs, we believe this approach provides a reasonable estimate of the fair value of the assets and liabilities, including consideration of the impact of non-performance risk.

Fixed Maturity Securities

Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure fixed maturity securities at fair value. Market price data is generally obtained from dealer markets.

We employ independent third-party valuation service providers to gather, analyze, and interpret market information to derive fair value estimates for individual investments, based upon market-accepted methodologies and assumptions. The methodologies used by these independent third-party valuation service providers are reviewed and understood by management, through periodic discussion with and information provided by the independent third-party valuation service providers. In addition, as discussed further below, control processes are applied to the fair values received from independent third-party valuation service providers to ensure the accuracy of these values.

Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of market-accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and various assumptions, provide a single fair value measurement for individual securities. The inputs used by the valuation service providers include, but are not limited to, market prices from completed transactions for identical securities and transactions for comparable securities, benchmark yields, interest rate yield curves, credit spreads, prepayment rates, default rates, recovery assumptions, currency rates, quoted prices for similar securities and other market-observable information, as applicable. If fair value is determined using financial models, these models generally take into account, among other things, market observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased.

We have control processes designed to ensure that the fair values received from independent third-party valuation service providers are accurately recorded, that their data inputs and valuation techniques are appropriate and consistently applied and that the assumptions used appear reasonable and consistent with the objective of determining fair value. We assess the reasonableness of individual security values received from independent third-party valuation service providers through various analytical techniques, and have procedures to escalate related questions internally and to the independent third-party valuation service providers for resolution. To assess the degree of pricing consensus among various valuation service providers for specific asset types, we conduct comparisons of prices received from available sources. We use these comparisons to establish a hierarchy for the fair values received from independent third-party valuation service providers to be used for particular security classes. We also validate prices for selected securities through reviews by members of management who have relevant expertise and who are independent of those charged with executing investing transactions.

When our independent third-party valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing market accepted valuation models. Broker prices may be based on an income approach, which converts expected future cash flows to a single present value amount, with specific consideration of inputs relevant to particular security types. For structured securities, such inputs may include ratings, collateral types, geographic concentrations, underlying loan vintages, loan delinquencies and defaults, loss severity assumptions, prepayments, and weighted average coupons and maturities. When the volume or level of market activity for a security is limited, certain inputs used to determine fair value may not be observable in the market. Broker prices may also be based on a market approach that considers recent transactions involving identical or similar securities. Fair values provided by brokers are subject to similar control processes to those noted above for fair values from independent third-party valuation service providers, including management reviews. For those corporate debt instruments (for example, private placements) that are not traded in active markets or that are subject to transfer restrictions, valuations reflect illiquidity and non-transferability, based on available market evidence. 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 comparable securities, adjusted for illiquidity and structure. Fair values determined internally are also subject to management review to ensure that valuation models and related inputs are reasonable.

The methodology above is relevant for all fixed maturity securities including residential mortgage backed securities (RMBS), commercial mortgage backed securities (CMBS), collateralized debt obligations (CDO), other asset-backed securities (ABS) and fixed maturity securities issued by government sponsored entities and corporate entities.

Equity Securities Traded in Active Markets

Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure equity securities at fair value. Market price data is generally obtained from exchange or dealer markets.

Mortgage and Other Loans Receivable

We estimate the fair value of mortgage and other loans receivable that are measured at fair value by using dealer quotations, discounted cash flow analyses and/or internal valuation models. The determination of fair value considers inputs such as interest rate, maturity, the borrower’s creditworthiness, collateral, subordination, guarantees, past-due status, yield curves, credit curves, prepayment rates, market pricing for comparable loans and other relevant factors.

Other Invested Assets

We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price. Subsequently, we generally obtain the fair value of these investments from net asset value information provided by the general partner or manager of the investments, the financial statements of which are generally audited annually. We consider observable market data and perform certain control procedures to validate the appropriateness of using the net asset value as a fair value measurement. The fair values of other investments carried at fair value, such as direct private equity holdings, are initially determined based on transaction price and are subsequently estimated based on available evidence such as market transactions in similar instruments, other financing transactions of the issuer and other available financial information for the issuer, with adjustments made to reflect illiquidity as appropriate.

Short-term Investments

For short-term investments that are measured at amortized cost, the carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk. Securities purchased under agreements to resell (reverse repurchase agreements) are generally treated as collateralized receivables. We report certain receivables arising from securities purchased under agreements to resell as Short-term investments in the Consolidated Balance Sheets. When these receivables are measured at fair value, we use market-observable interest rates to determine fair value.

Separate Account Assets

Separate account assets are composed primarily of registered and unregistered open-end mutual funds that generally trade daily and are measured at fair value in the manner discussed above for equity securities traded in active markets.

Freestanding Derivatives

Derivative assets and liabilities can be exchange-traded or traded over-the-counter (OTC). We generally value exchange-traded derivatives such as futures and options using quoted prices in active markets for identical derivatives at the balance sheet date.

OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in the instrument, as well as the availability of pricing information in the market. We generally use similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment.

For certain OTC derivatives that trade in less liquid markets, where we generally do not have corroborating market evidence to support significant model inputs and cannot verify the model to market transactions, the transaction price may provide the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. We will update valuation inputs in these models only when corroborated by evidence such as similar market transactions, independent third-party valuation service providers and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

We value our super senior credit default swap portfolio using prices obtained from vendors and/or counterparties. The valuation of the super senior credit derivatives is complex because of the limited availability of market observable information due to the lack of trading and price transparency in certain structured finance markets. Our valuation methodologies for the super senior CDS portfolio have evolved over time in response to market conditions and the availability of market observable information. We have sought to calibrate the methodologies to available market information and to review the assumptions of the methodologies on a regular basis.

Embedded Derivatives within Policyholder Contract Deposits

Certain variable annuity and equity-indexed annuity and life contracts contain embedded derivatives that we bifurcate from the host contracts and account for separately at fair value, with changes in fair value recognized in earnings. These embedded derivatives are classified within Policyholder contract deposits. We have concluded these contracts contain either (i) a written option that guarantees a minimum accumulation value at maturity, (ii) a written option that guarantees annual withdrawals regardless of underlying market performance for a specific period or for life, or (iii) equity-indexed written options that meet the criteria of derivatives and must be bifurcated.

The fair value of embedded derivatives contained in certain variable annuity and equity-indexed annuity and life contracts is measured based on actuarial and capital market assumptions related to projected cash flows over the expected lives of the contracts. These discounted cash flow projections primarily include benefits and related fees assessed, when applicable. In some instances, the projected cash flows from fees may exceed projected cash flows related to benefit payments and therefore, at a point in time, the carrying value of the embedded derivative may be in a net asset position. The projected cash flows incorporate best estimate assumptions for policyholder behavior (including mortality, lapses, withdrawals and benefit utilization), along with an explicit risk margin to reflect a market participant’s estimates of projected cash flows and policyholder behavior. Estimates of future policyholder behavior are subjective and based primarily on our historical experience.

Because of the dynamic and complex nature of the projected cash flows with respect to embedded derivatives in our variable annuity contracts, risk neutral valuations are used, which are calibrated to observable interest rate and equity option prices. Estimating the underlying cash flows for these products involves judgments regarding expected market rates of return, market volatility, credit spreads, correlations of certain market variables, fund performance, discount rates and policyholder behavior. The portion of fees attributable to the fair value of expected benefit payments are included within the fair value measurement of these embedded derivatives, and related fees are classified in net realized gain/loss as earned, consistent with other changes in the fair value of these embedded policy derivatives. Any portion of the fees not attributed to the embedded derivatives are excluded from the fair value measurement and classified in policy fees as earned.

With respect to embedded derivatives in our equity-indexed annuity and life contracts, option pricing models are used to estimate fair value, taking into account assumptions for future equity index growth rates, volatility of the equity index, future interest rates, and our ability to adjust the participation rate and the cap on equity-indexed credited rates in light of market conditions and policyholder behavior assumptions.

Projected cash flows are discounted using the interest rate swap curve (swap curve), which is commonly viewed as being consistent with the credit spreads for highly-rated financial institutions (S&P AA-rated or above). A swap curve shows the fixed-rate leg of a non-complex swap against the floating rate (for example, LIBOR) leg of a related tenor. We also incorporate our own risk of non-performance in the valuation of the embedded derivatives associated with variable annuity and equity-indexed annuity and life contracts. The non-performance risk adjustment reflects a market participant’s view of our claims-paying ability by incorporating an additional spread to the swap curve used to discount projected benefit cash flows in the valuation of these embedded derivatives. The non-performance risk adjustment is calculated by constructing forward rates based on a weighted average of observable corporate credit indices to approximate the claims-paying ability rating of our Life and Retirement companies.

Long-Term Debt

The fair value of non-structured liabilities is generally determined by using market prices from exchange or dealer markets, when available, or discounting expected cash flows using the appropriate discount rate for the applicable maturity. We determine the fair value of structured liabilities and hybrid financial instruments (where performance is linked to structured interest rates, inflation or currency risks) using the appropriate derivative valuation methodology (described above) given the nature of the embedded risk profile. In addition, adjustments are made to the valuations of both non-structured and structured liabilities to reflect our own creditworthiness based on the methodology described under the caption “Incorporation of Credit Risk in Fair Value Measurements – Our Own Credit Risk” above.

Borrowings under obligations of guaranteed investment agreements (GIAs), which are guaranteed by us, are recorded at fair value using discounted cash flow calculations based on interest rates currently being offered for similar contracts and our current market observable implicit credit spread rates with maturities consistent with those remaining for the contracts being valued. Obligations may be called at various times prior to maturity at the option of the counterparty. Interest rates on these borrowings are primarily fixed, vary by maturity and range up to 7.62 percent.

Other Liabilities

Other liabilities measured at fair value include certain securities sold under agreements to repurchase and certain securities sold but not yet purchased. Liabilities arising from securities sold under agreements to repurchase are generally treated as collateralized borrowings. We estimate the fair value of liabilities arising under these agreements by using market-observable interest rates. This methodology considers such factors as the coupon rate, yield curves and other relevant factors. Fair values for securities sold but not yet purchased are based on current market prices.

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:

December 31, 2017							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	$	201	$	2,455	$	-	$	-	$	-	$	2,656
Obligations of states, municipalities and political subdivisions		-		16,240		2,404		-		-		18,644
Non-U.S. governments		20		15,631		8		-		-		15,659
Corporate debt		-		133,003		1,173		-		-		134,176
RMBS		-		21,098		16,136		-		-		37,234
CMBS		-		13,217		624		-		-		13,841
CDO/ABS		-		8,131		8,651		-		-		16,782
Total bonds available for sale		221		209,775		28,996		-		-		238,992
Other bond securities:
U.S. government and government sponsored entities		238		2,564		-		-		-		2,802
Obligations of states, municipalities and political subdivisions		-		-		-		-		-		-
Non-U.S. governments		-		57		-		-		-		57
Corporate debt		-		1,891		18		-		-		1,909
RMBS		-		421		1,464		-		-		1,885
CMBS		-		485		74		-		-		559
CDO/ABS		-		604		4,956		-		-		5,560
Total other bond securities		238		6,022		6,512		-		-		12,772
Equity securities available for sale:
Common stock		1,061		-		-		-		-		1,061
Preferred stock		18		515		-		-		-		533
Mutual funds		110		4		-		-		-		114
Total equity securities available for sale		1,189		519		-		-		-		1,708
Other equity securities		589		-		-		-		-		589
Mortgage and other loans receivable		-		-		5		-		-		5
Other invested assets^(a)		-		1		250		-		-		251
Derivative assets:
Interest rate contracts		1		2,170		-		-		-		2,171
Foreign exchange contracts		-		827		4		-		-		831
Equity contracts		188		252		82		-		-		522
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		20		-		-		20
Counterparty netting and cash collateral		-		-		-		(1,464)		(1,159)		(2,623)
Total derivative assets		189		3,249		107		(1,464)		(1,159)		922
Short-term investments		2,078		537		-		-		-		2,615
Separate account assets		87,141		5,657		-		-		-		92,798
Total	$	91,645	$	225,760	$	35,870	$	(1,464)	$	(1,159)	$	350,652
Liabilities:
Policyholder contract deposits	$	-	$	14	$	4,136	$	-	$	-	$	4,150
Other policyholder funds		-		-		-		-		-		-
Derivative liabilities:
Interest rate contracts		2		2,176		22		-		-		2,200
Foreign exchange contracts		-		1,241		4		-		-		1,245
Equity contracts		2		19		-		-		-		21
Credit contracts		-		14		263		-		-		277
Other contracts		-		-		5		-		-		5
Counterparty netting and cash collateral		-		-		-		(1,464)		(1,249)		(2,713)
Total derivative liabilities		4		3,450		294		(1,464)		(1,249)		1,035
Long-term debt		-		2,888		-		-		-		2,888
Other liabilities		46		43		-		-		-		89
Total	$	50	$	6,395	$	4,430	$	(1,464)	$	(1,249)	$	8,162

December 31, 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	$	63	$	1,929	$	-	$	-	$	-	$	1,992
Obligations of states, municipalities and political subdivisions		-		22,732		2,040		-		-		24,772
Non-U.S. governments		52		14,466		17		-		-		14,535
Corporate debt		-		131,047		1,133		-		-		132,180
RMBS		-		20,468		16,906		-		-		37,374
CMBS		-		12,231		2,040		-		-		14,271
CDO/ABS		-		8,578		7,835		-		-		16,413
Total bonds available for sale		115		211,451		29,971		-		-		241,537
Other bond securities:
U.S. government and government sponsored entities		-		2,939		-		-		-		2,939
Non-U.S. governments		-		51		-		-		-		51
Corporate debt		-		1,755		17		-		-		1,772
RMBS		-		420		1,605		-		-		2,025
CMBS		-		448		155		-		-		603
CDO/ABS		-		905		5,703		-		-		6,608
Total other bond securities		-		6,518		7,480		-		-		13,998
Equity securities available for sale:
Common stock		1,056		9		-		-		-		1,065
Preferred stock		752		-		-		-		-		752
Mutual funds		260		1		-		-		-		261
Total equity securities available for sale		2,068		10		-		-		-		2,078
Other equity securities		482		-		-		-		-		482
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		-		1		204		-		-		205
Derivative assets:
Interest rate contracts		-		2,328		-		-		-		2,328
Foreign exchange contracts		-		1,320		-		-		-		1,320
Equity contracts		188		59		58		-		-		305
Credit contracts		-		-		2		-		-		2
Other contracts		-		6		16		-		-		22
Counterparty netting and cash collateral		-		-		-		(1,265)		(903)		(2,168)
Total derivative assets		188		3,713		76		(1,265)		(903)		1,809
Short-term investments		2,660		681		-		-		-		3,341
Separate account assets		77,318		5,654		-		-		-		82,972
Total	$	82,831	$	228,028	$	37,742	$	(1,265)	$	(903)	$	346,433
Liabilities:
Policyholder contract deposits	$	-	$	25	$	3,033	$	-	$	-	$	3,058
Other policyholder funds		5		-		-		-		-		5
Derivative liabilities:
Interest rate contracts		-		3,039		38		-		-		3,077
Foreign exchange contracts		-		1,358		11		-		-		1,369
Equity contracts		12		7		-		-		-		19
Credit contracts		-		-		331		-		-		331
Other contracts		-		1		5		-		-		6
Counterparty netting and cash collateral		-		-		-		(1,265)		(1,521)		(2,786)
Total derivative liabilities		12		4,405		385		(1,265)		(1,521)		2,016
Long-term debt		-		3,357		71		-		-		3,428
Other liabilities		-		-		-		-		-		-
Total	$	17	$	7,787	$	3,489	$	(1,265)	$	(1,521)	$	8,507

(a) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $6.0 billion and $6.7 billion as of December 31, 2017 and December 31, 2016, 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 years ended December 31, 2017 and 2016, we transferred $0.4 billion and $1.1 billion, respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2, because they are no longer considered actively traded. For similar reasons, during the years ended December 31, 2017 and 2016, we transferred $113 million and $34 million, respectively, of securities issued by the U.S. government and government-sponsored entities from Level 1 to Level 2. Additionally, we transferred $126 million of preferred stock from Level 1 to Level 2 during the year ended December 31, 2017. We had no material transfers of preferred stock from Level 1 to Level 2 during the year ended December 31, 2016. There were no material transfers from Level 2 to Level 1 during the years ended December 31, 2017 and 2016.

Changes in Level 3 Recurring Fair Value Measurements

The following tables present changes during the years ended December 31, 2017 and 2016 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 Consolidated Balance Sheets at December 31, 2017 and 2016:

				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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,040	$	5	$	167	$	216	$	8	$	(32)	$	-	$	-	$	2,404	$	-
Non-U.S. governments		17		(9)		9		(9)		-		-		-		-		8		-
Corporate debt		1,133		(3)		20		(259)		886		(604)		-		-		1,173		-
RMBS		16,906		1,071		942		(2,763)		19		(39)		-		-		16,136		-
CMBS		2,040		35		11		(748)		20		(734)		-		-		624		-
CDO/ABS		7,835		(19)		155		743		-		(63)		-		-		8,651		-
Total bonds available
for sale		29,971		1,080		1,304		(2,820)		933		(1,472)		-		-		28,996		-
Other bond securities:
Corporate debt		17		3		-		10		-		(12)		-		-		18		1
RMBS		1,605		191		-		(313)		14		(33)		-		-		1,464		113
CMBS		155		4		-		24		9		(118)		-		-		74		5
CDO/ABS		5,703		841		-		(1,582)		-		(6)		-		-		4,956		362
Total other bond securities		7,480		1,039		-		(1,861)		23		(169)		-		-		6,512		481
Equity securities available
for sale:
Common stock		-		-		-		1		-		(1)		-		-		-		-
Total equity securities
available for sale		-		-		-		1		-		(1)		-		-		-		-
Other equity securities		-		-		-		-		-		-		-		-		-		-
Mortgage and other loans
receivable		11		-		-		(6)		-		-		-		-		5		-
Other invested assets		204		14		(6)		39		-		(1)		-		-		250		6
Total	$	37,666	$	2,133	$	1,298	$	(4,647)	$	956	$	(1,643)	$	-	$	-	$	35,763	$	487
				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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
Liabilities:
Policyholder contract deposits	$	3,033	$	807	$	-	$	296	$	-	$	-	$	-	$	-	$	4,136	$	(499)
Derivative liabilities, net:
Interest rate contracts		38		(5)		-		(11)		-		-		-		-		22		5
Foreign exchange
contracts		11		(2)		-		(9)		-		-		-		-		-		3
Equity contracts		(58)		(41)		-		17		-		-		-		-		(82)		35
Credit contracts		329		(62)		-		(5)		-		-		-		-		262		61
Other contracts		(11)		(74)		-		73		(3)		-		-		-		(15)		77
Total derivative
liabilities, net^(a)		309		(184)		-		65		(3)		-		-		-		187		181
Long-term debt^(b)		71		16		-		(87)		-		-		-		-		-		-
Total	$	3,413	$	639	$	-	$	274	$	(3)	$	-	$	-	$	-	$	4,323	$	(318)

				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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,124	$	5	$	-	$	61	$	2	$	(152)	$	-	$	-	$	2,040	$	-
Non-U.S. governments		32		(3)		(12)		7		1		(5)		-		(3)		17		-
Corporate debt		1,370		(13)		(42)		(111)		920		(977)		(14)		-		1,133		-
RMBS		16,537		970		(24)		(878)		330		(29)		-		-		16,906		-
CMBS		2,585		72		(132)		(323)		23		(185)		-		-		2,040		-
CDO/ABS		6,169		34		(111)		1,720		23		-		-		-		7,835		-
Total bonds available
for sale		28,817		1,065		(321)		476		1,299		(1,348)		(14)		(3)		29,971		-
Other bond securities:
Corporate debt		17		-		-		-		-		-		-		-		17		-
RMBS		1,581		43		-		(1)		-		(18)		-		-		1,605		(24)
CMBS		193		-		-		(38)		-		-		-		-		155		(1)
CDO/ABS		7,055		271		-		(1,623)		65		(65)		-		-		5,703		(393)
Total other bond securities		8,846		314		-		(1,662)		65		(83)		-		-		7,480		(418)
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		1		-		(75)		-		(54)		-		-		204		8
Total	$	38,020	$	1,380	$	(321)	$	(1,275)	$	1,364	$	(1,485)	$	(14)	$	(3)	$	37,666	$	(410)
				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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
Liabilities:
Policyholder contract
deposits	$	2,289	$	441	$	-	$	303	$	-	$	-	$	-	$	-	$	3,033	$	(366)
Derivative liabilities, net:
Interest rate contracts		50		(8)		-		(4)		-		-		-		-		38		6
Foreign exchange
contracts		7		5		-		(1)		-		-		-		-		11		(4)
Equity contracts		(54)		(10)		-		6		-		-		-		-		(58)		10
Credit contracts		505		(81)		-		(95)		-		-		-		-		329		71
Other contracts		48		(10)		-		(53)		-		4		-		-		(11)		128
Total derivatives
liabilities, net^(a)		556		(104)		-		(147)		-		4		-		-		309		211
Long-term debt^(b)		183		4		-		(3)		-		(113)		-		-		71		(1)
Total	$	3,028	$	341	$	-	$	153	$	-	$	(109)	$	-	$	-	$	3,413	$	(156)

(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 Consolidated Statements of Income as follows:

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
December 31, 2017
Assets:
Bonds available for sale	$	1,127	$	(49)	$	2	$	1,080
Other bond securities		308		-		731		1,039
Equity securities available for sale		-		-		-		-
Other equity securities		-		-		-		-
Other invested assets		9		6		(1)		14
December 31, 2016
Assets:
Bonds available for sale	$	1,180	$	(118)	$	3	$	1,065
Other bond securities		110		44		160		314
Equity securities available for sale		-		-		-		-
Other equity securities		-		-		-		-
Other invested assets		13		39		(51)		1
		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
December 31, 2017
Liabilities:
Policyholder contract deposits		-		807		-		807
Derivative liabilities, net		-		(17)		(167)		(184)
Long-term debt		-		-		16		16
December 31, 2016
Liabilities:
Policyholder contract deposits		-		441		-		441
Derivative liabilities, net		-		(8)		(96)		(104)
Long-term debt		-		-		4		4

The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above for years ended December 31, 2017 and 2016 related to Level 3 assets and liabilities in the Consolidated Balance Sheet:

								Purchases, Sales,
						Issuances and		Issuances and
(in millions)		Purchases		Sales		Settlements^(a)		Settlements, Net^(a)
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	286	$	(16)	$	(54)	$	216
Non-U.S. governments		9		(1)		(17)		(9)
Corporate debt		36		(59)		(236)		(259)
RMBS		1,199		(260)		(3,702)		(2,763)
CMBS		75		(146)		(677)		(748)
CDO/ABS		2,099		(243)		(1,113)		743
Total bonds available for sale		3,704		(725)		(5,799)		(2,820)
Other bond securities:
Corporate debt		11		-		(1)		10
RMBS		167		(218)		(262)		(313)
CMBS		42		(11)		(7)		24
CDO/ABS		9		(65)		(1,526)		(1,582)
Total other bond securities		229		(294)		(1,796)		(1,861)
Equity securities available for sale		13		-		(12)		1
Other equity securities		-		-		-		-
Mortgage and other loans receivable		-		(6)		-		(6)
Other invested assets		107		(46)		(22)		39
Total assets	$	4,053	$	(1,071)	$	(7,629)	$	(4,647)
Liabilities:
Policyholder contract deposits	$	-	$	344	$	(48)	$	296
Derivative liabilities, net		(4)		-		69		65
Long-term debt^(b)		-		-		(87)		(87)
Total liabilities	$	(4)	$	344	$	(66)	$	274
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	164	$	(8)	$	(95)	$	61
Non-U.S. governments		13		-		(6)		7
Corporate debt		29		(25)		(115)		(111)
RMBS		2,635		(81)		(3,432)		(878)
CMBS		156		(98)		(381)		(323)
CDO/ABS		2,460		(99)		(641)		1,720
Total bonds available for sale		5,457		(311)		(4,670)		476
Other bond securities:
Corporate debt		-		-		-		-
RMBS		343		(104)		(240)		(1)
CMBS		53		(86)		(5)		(38)
CDO/ABS		69		(458)		(1,234)		(1,623)
Total other bond securities		465		(648)		(1,479)		(1,662)
Equity securities available for sale		-		-		-		-
Other equity securities		14		-		(28)		(14)
Mortgage and other loans receivable		1		(2)		1		-
Other invested assets		37		(10)		(102)		(75)
Total assets	$	5,974	$	(971)	$	(6,278)	$	(1,275)
Liabilities:
Policyholder contract deposits	$	-	$	437	$	(134)	$	303
Derivative liabilities, net		(6)		-		(141)		(147)
Long-term debt^(b)		-		-		(3)		(3)
Total liabilities	$	(6)	$	437	$	(278)	$	153

(a) There were no issuances during the years ended December 31, 2017 and 2016.

(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 December 31, 2017 and 2016 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 excludes $64 million and $188 million of net losses related to assets and liabilities transferred into Level 3 during 2017 and 2016, respectively, and includes $36 million and $189 million of net losses related to assets and liabilities transferred out of Level 3 during 2017 and 2016, respectively.

Transfers of Level 3 Assets

During the years ended December 31, 2017 and 2016, transfers into Level 3 assets primarily included certain investments in private placement corporate debt, RMBS, CMBS and 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, CMBS and CDO and certain ABS into Level 3 assets were due to decreases in market transparency and liquidity for individual security types.

During the years ended December 31, 2017 and 2016, transfers out of Level 3 assets primarily included private placement and other corporate debt, CMBS, RMBS, CDO/ABS and certain investments in municipal securities. Transfers of certain investments in 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 years ended December 31, 2017 and 2016.

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
		December 31,	Valuation		Range
(in millions)		2017	Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states,
municipalities and
political subdivisions	$	1,620	Discounted cash flow	Yield	3.55% - 4.32% (3.94%)

Corporate debt		1,086	Discounted cash flow	Yield	3.26% - 12.22% (7.74%)

RMBS^(a)		16,156	Discounted cash flow	Constant prepayment rate	3.97% - 13.42% (8.69%)
				Loss severity	43.15% - 77.15% (60.15%)
				Constant default rate	3.31% - 8.30% (5.80%)
				Yield	2.73% - 5.19% (3.96%)

CDO/ABS^(a)		5,254	Discounted cash flow	Yield	3.38% - 4.78% (4.08%)

CMBS		487	Discounted cash flow	Yield	2.22% - 7.77% (4.99%)

Liabilities:

Embedded derivatives
within Policyholder
contract deposits:

GMWB		1,994	Discounted cash flow	Equity volatility	6.45% - 51.25%
				Base lapse rate	0.35% - 14.00%
				Dynamic lapse multiplier	30.00% - 170.00%
				Mortality multiplier^(c)	40.00% - 153.00%
				Utilization	90.00% - 100.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		1,603	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier^(c)	42.00% - 162.00%
				Option Budget	1.00% - 4.00%

Indexed Life		515	Discounted cash flow	Base lapse rate	2.00% - 19.00%
				Mortality rate	0.00% - 40.00%


		Fair Value at
		December 31,	Valuation		Range
(in millions)		2016	Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states,
municipalities and
political subdivisions	$	1,248	Discounted cash flow	Yield	4.12% - 4.91% (4.52%)

Corporate debt		498	Discounted cash flow	Yield	3.41% - 6.38% (4.90%)

RMBS^(a)		17,412	Discounted cash flow	Constant prepayment rate	3.95% - 6.54% (5.25%)
				Loss severity	47.51% - 80.98% (64.24%)
				Constant default rate	3.28% - 8.64% (5.96%)
				Yield	3.28% - 5.87% (4.57%)

CDO/ABS^(a)		4,368	Discounted cash flow	Yield	3.67% - 5.85% (4.76%)

CMBS		1,511	Discounted cash flow	Yield	0.48% - 10.21% (5.34%)

Liabilities:

Embedded derivatives
within Policyholder
contract deposits:

GMWB		1,777	Discounted cash flow	Equity volatility	13.00% - 50.00%
				Base lapse rate	0.50% - 20.00%
				Dynamic lapse multiplier	30.00% - 170.00%
				Mortality multiplier^(c)	42.00% - 161.00%
				Utilization	100.00%
				Equity / interest rate correlation	20.00% - 40.00%

Index Annuities		859	Discounted cash flow	Lapse rate	1.00% - 66.00%
				Mortality multiplier^(c)	101.00% - 103.00%
				Option Budget	1.00% - 4.00%

Indexed Life		381	Discounted cash flow	Base lapse rate	2.00% - 19.00%
				Mortality rate	0.00% - 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.

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 GMWB 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 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.
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 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 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.
Option budget estimates the expected long-term cost of options used to hedge exposures associated with equity price changes. The level of option budgets determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives.

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 net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share to measure fair value.

		December 31, 2017				December 31, 2016
			Fair Value Using Net Asset Value Per Share (or its equivalent)				Fair Value Using Net Asset Value Per Share (or its equivalent)

					Unfunded				Unfunded
(in millions)	Investment Category Includes				Commitments				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	$	1,243	$	706	$	1,424	$	750

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		210		187		258		208

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		134		73		137		31

Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		113		42		123		44

Other	Includes multi-strategy, mezzanine, and other strategies		428		219		312		215
Total private equity funds			2,128		1,227		2,254		1,248
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		1,128		-		1,453		9

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,233		-		1,429		-

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		1,011		-		992		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		266		8		416		8


Other	Includes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments		231		4		197		14
Total hedge funds			3,869		12		4,487		31
Total		$	5,997	$	1,239	$	6,741	$	1,279

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 December 31, 2017, assuming average original expected lives of 10 years for the funds, 58 percent of the total fair value using net asset value per share (or its equivalent) presented above would have expected remaining lives of three years or less, 17 percent between four and six years and 25 percent between seven and 10 years.

The hedge fund investments included above, which are carried at fair value, are generally redeemable monthly (22 percent), quarterly (43 percent), semi-annually (12 percent) and annually (23 percent), with redemption notices ranging from one day to 180 days. At December 31, 2017, investments representing approximately 49 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 2018.

Fair Value Option

Under the fair value option, we may elect to measure at fair value financial assets and financial liabilities that are not otherwise required to be carried at fair value. Subsequent changes in fair value for designated items are reported in earnings. We elect the fair value option for certain hybrid securities given the complexity of bifurcating the economic components associated with the embedded derivatives.

For additional information related to embedded derivatives refer to Note 11 herein.

Additionally, we elect the fair value option for certain alternative investments when such investments are eligible for this election. We believe this measurement basis is consistent with the applicable accounting guidance used by the respective investment company funds themselves.

For additional information on securities and other invested assets for which we have elected the fair value option refer to Note 6 herein.

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

Years Ended December 31,	Gain (Loss)
(in millions)		2017		2016		2015
Assets:
Bond and equity securities	$	1,646	$	447	$	616
Alternative investments^(a)		509		28		36
Other, including Short-term investments		1		-		2
Liabilities:
Long-term debt^(b)		(49)		(9)		(38)
Other liabilities		(2)		-		(3)
Total gain	$	2,105	$	466	$	613

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

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

Interest income and dividend income on assets measured under the fair value option are recognized and included in Net investment income in the Consolidated Statements of Income with the exception of activity within AIG’s Other Operations category, which is included in Other income. Interest expense on liabilities measured under the fair value option is reported in Other Income in the Consolidated Statements of Income.

For additional information about our policies for recognition, measurement, and disclosure of interest and dividend income see Note 6 herein.

During 2017, 2016 and 2015, we recognized gains of $4 million and $22 million, and loss of $4 million, 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:

	December 31, 2017						December 31, 2016
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	5	$	5	$	-	$	11	$	8	$	3
Liabilities:
Long-term debt^*	$	2,888	$	2,280	$	608	$	3,428	$	2,628	$	800

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

There were no mortgage or other loans receivable for which the fair value option was elected that were 90 days or more past due or in non-accrual status at December 31, 2017 or 2016.

FAIR VALUE MEASUREMENTS ON A NON-RECURRING BASIS

We measure the fair value of certain assets on a non-recurring basis, generally quarterly, annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include cost and equity-method investments, commercial mortgage loans, investments in life settlements, investments in real estate and other fixed assets, goodwill and other intangible assets.

For additional information about how we test various asset classes for impairment see Notes 6 and 7 herein.

Information regarding the estimation of fair value for financial instruments measured at fair value on a non-recurring basis is discussed below:

Impairments for Other investments for the period ended December 31, 2015 primarily relate to certain investments in affordable housing partnerships, the fair values of which are determined based on remaining tax credits and other residual benefits due from the respective partnerships. Residual benefits include consideration of the fair value of underlying real estate properties, which is determined based on market-appropriate capitalization rates applied to net operating income of the properties. Impairments for Other investments for the period ended December 31, 2016 primarily relate to certain investments in aircraft, the fair values of which are determined based on third-party independent appraisals that use industry specific appraisal standards and methodologies. Impairments for Other investments for the period ended December 31, 2017 primarily relate to commercial mortgage loans, the fair values of which are determined based on independent broker quotations or valuation models using unobservable inputs, as well as the estimated fair value of the underlying collateral or the present value of the expected future cash flows. The rest of the impairments relate to real estate investments, the fair values of which are determined based on third-party independent appraisals or discounted cash-flow models, as well as certain investments in aircraft, the fair values of which are determined based on third-party independent appraisals that use industry-specific appraisal standards and methodologies.
Impairments of Investments in Life Settlements are measured using their fair values as determined using a discounted cash flow methodology that incorporates the best available market assumptions for mortality as well as market yields based on reported transactions or the anticipated sale price, as appropriate. Effective December 31, 2015, AIG adopted the Society of Actuaries 2015 Valuation Basic Table (VBT) as the market mortality assumption used to measure fair value of impaired policies.

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							December 31,
(in millions)		Level 1		Level 2		Level 3		Total		2017		2016		2015
December 31, 2017
Other investments	$	-	$	-	$	55	$	55	$	77	$	76	$	189
Investments in life settlements		-		-		-		-		360		397		540
Other assets^*		-		-		-		-		157		19		80
Total	$	-	$	-	$	55	$	55	$	594	$	492	$	809
December 31, 2016
Other investments	$	-	$	-	$	364	$	364
Investments in life settlements		-		-		736		736
Other assets		-		-		2		2
Total	$	-	$	-	$	1,102	$	1,102

* Impairments include $35 million related to other assets that were sold in 2017.

FAIR VALUE INFORMATION ABOUT FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE

Information regarding the estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts and lease contracts) is discussed below:

Mortgage and other loans receivable: Fair values of loans on commercial real estate and other loans receivable are estimated for disclosure purposes using discounted cash flow calculations based on discount rates that we believe market participants would use in determining the price that they would pay for such assets. For certain loans, our current incremental lending rates for similar types of loans are used as the discount rates, because we believe this rate approximates the rates market participants would use. Fair values of residential mortgage loans are generally determined based on market prices, using market based adjustments for credit and servicing as appropriate. The fair values of policy loans are generally estimated based on unpaid principal amount as of each reporting date. No consideration is given to credit risk because policy loans are effectively collateralized by the cash surrender value of the policies.
Other invested assets: The majority of Other invested assets that are not measured at fair value in 2016 represent investments in life settlements. The fair value of investments in life settlements is determined using a discounted cash flow methodology that incorporates the best available market assumptions for longevity as well as market yields based on reported transactions. Due to the individual life nature of each investment in life settlements and the illiquidity of the existing market, significant inputs to the fair value are unobservable. The majority of the Other invested assets that are not measured at fair value in 2017 represent time deposits with the original maturity at purchase greater than one year. The fair value of long-term time deposits is determined using the expected discounted future cash flow.
Cash and short-term investments: The carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk.
Policyholder contract deposits associated with investment-type contracts: Fair values for policyholder contract deposits associated with investment-type contracts not accounted for at fair value are estimated using discounted cash flow calculations based on interest rates currently being offered for similar contracts with maturities consistent with those of the contracts being valued. When no similar contracts are being offered, the discount rate is the appropriate swap rate (if available) or current risk-free interest rate consistent with the currency in which the cash flows are denominated. To determine fair value, other factors include current policyholder account values and related surrender charges and other assumptions include expectations about policyholder behavior and an appropriate risk margin.
Other liabilities: The majority of Other liabilities that are financial instruments not measured at fair value represent secured financing arrangements, including repurchase agreements. The carrying amounts of these liabilities approximate fair value, because the financing arrangements are short-term and are secured by cash or other liquid collateral.
Long-term debt: Fair values of these obligations were determined by reference to quoted market prices, when available and appropriate, or discounted cash flow calculations based upon our current market-observable implicit-credit-spread rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued.

The following table presents the carrying amounts and estimated fair values 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
December 31, 2017
Assets:
Mortgage and other loans receivable	$	-	$	117	$	37,644	$	37,761	$	37,018
Other invested assets		-		590		6		596		593
Short-term investments		-		7,771		-		7,771		7,771
Cash		2,362		-		-		2,362		2,362
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		387		121,809		122,196		114,326
Other liabilities		-		4,494		-		4,494		4,494
Long-term debt		-		23,930		4,313		28,243		28,752
December 31, 2016
Assets:
Mortgage and other loans receivable	$	-	$	161	$	33,575	$	33,736	$	33,229
Other invested assets		-		955		2,053		3,008		3,474
Short-term investments		-		8,961		-		8,961		8,961
Cash		1,868		-		-		1,868		1,868
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		382		121,742		122,124		112,705
Other liabilities		-		4,196		-		4,196		4,196
Long-term debt		-		23,117		3,333		26,450		27,484

- 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

12 Months Ended

Dec. 31, 2017

INVESTMENTS

INVESTMENTS

6. Investments

Fixed Maturity and Equity Securities

Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or are measured at fair value at our election. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2017 or 2016.

Fixed maturity and equity securities classified as available for sale are carried at fair value. Unrealized gains and losses from available for sale investments in fixed maturity and equity securities are reported as a separate component of Accumulated other comprehensive income, net of deferred policy acquisition costs and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity and equity securities measured at fair value at our election are reflected in Net investment income (for insurance subsidiaries) or Other income (for Other Operations). Investments in fixed maturity and equity securities are recorded on a trade-date basis.

Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain RMBS, CMBS and CDO/ABS, (collectively, structured securities), recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For purchased credit impaired (PCI) securities, at acquisition, the difference between the undiscounted expected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into net investment income over the securities’ remaining lives on an effective level-yield basis. Subsequently, effective yields recognized on PCI securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising due to reasons other than interest rate changes.

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)
December 31, 2017
Bonds available for sale:
U.S. government and government sponsored entities	$	2,532	$	160	$	(36)	$	2,656	$	-
Obligations of states, municipalities and political subdivisions		17,377		1,297		(30)		18,644		-
Non-U.S. governments		15,059		717		(117)		15,659		-
Corporate debt		126,310		8,666		(800)		134,176		17
Mortgage-backed, asset-backed and collateralized:
RMBS		34,181		3,273		(220)		37,234		1,568
CMBS		13,538		408		(105)		13,841		42
CDO/ABS		16,464		370		(52)		16,782		29
Total mortgage-backed, asset-backed and collateralized		64,183		4,051		(377)		67,857		1,639
Total bonds available for sale^(b)		225,461		14,891		(1,360)		238,992		1,656
Equity securities available for sale:
Common stock		703		379		(21)		1,061		-
Preferred stock		504		29		-		533		-
Mutual funds		98		16		-		114		-
Total equity securities available for sale		1,305		424		(21)		1,708		-
Total	$	226,766	$	15,315	$	(1,381)	$	240,700	$	1,656
December 31, 2016
Bonds available for sale:
U.S. government and government sponsored entities	$	1,870	$	148	$	(26)	$	1,992	$	-
Obligations of states, municipalities and political subdivisions		24,025		1,001		(254)		24,772		-
Non-U.S. governments		14,018		773		(256)		14,535		-
Corporate debt		126,648		7,271		(1,739)		132,180		(31)
Mortgage-backed, asset-backed and collateralized:
RMBS		35,311		2,541		(478)		37,374		1,212
CMBS		14,054		409		(192)		14,271		45
CDO/ABS		16,315		278		(180)		16,413		39
Total mortgage-backed, asset-backed and collateralized		65,680		3,228		(850)		68,058		1,296
Total bonds available for sale^(b)		232,241		12,421		(3,125)		241,537		1,265
Equity securities available for sale:
Common stock		708		369		(12)		1,065		-
Preferred stock		748		4		-		752		-
Mutual funds		241		23		(3)		261		-
Total equity securities available for sale		1,697		396		(15)		2,078		-
Total	$	233,938	$	12,817	$	(3,140)	$	243,615	$	1,265

(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 December 31, 2017 and 2016, bonds available for sale held by us that were below investment grade or not rated totaled $31.5 billion and $33.6 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
December 31, 2017
Bonds available for sale:
U.S. government and government sponsored entities	$	770	$	23	$	332	$	13	$	1,102	$	36
Obligations of states, municipalities and political
subdivisions		586		6		646		24		1,232		30
Non-U.S. governments		3,511		54		857		63		4,368		117
Corporate debt		15,578		453		7,291		347		22,869		800
RMBS		6,212		99		3,790		121		10,002		220
CMBS		3,408		46		1,389		59		4,797		105
CDO/ABS		1,455		24		822		28		2,277		52
Total bonds available for sale		31,520		705		15,127		655		46,647		1,360
Equity securities available for sale:
Common stock		136		21		-		-		136		21
Mutual funds		1		-		-		-		1		-
Total equity securities available for sale		137		21		-		-		137		21
Total	$	31,657	$	726	$	15,127	$	655	$	46,784	$	1,381
December 31, 2016
Bonds available for sale:
U.S. government and government sponsored entities	$	720	$	26	$	-	$	-	$	720	$	26
Obligations of states, municipalities and political
subdivisions		5,814		221		231		33		6,045		254
Non-U.S. governments		3,865		162		489		94		4,354		256
Corporate debt		28,184		1,013		6,080		726		34,264		1,739
RMBS		8,794		252		4,045		226		12,839		478
CMBS		4,469		152		479		40		4,948		192
CDO/ABS		5,362		102		1,961		78		7,323		180
Total bonds available for sale		57,208		1,928		13,285		1,197		70,493		3,125
Equity securities available for sale:
Common stock		125		12		-		-		125		12
Mutual funds		64		3		-		-		64		3
Total equity securities available for sale		189		15		-		-		189		15
Total	$	57,397	$	1,943	$	13,285	$	1,197	$	70,682	$	3,140

At December 31, 2017, we held 7,448 and 74 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 1,920 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 December 31, 2017 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
December 31, 2017	Available for Sale				Position Available for Sale
(in millions)		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	7,932	$	8,071	$	1,526	$	1,515
Due after one year through five years		47,179		49,093		7,764		7,571
Due after five years through ten years		42,617		43,944		11,559		11,143
Due after ten years		63,550		70,027		9,705		9,342
Mortgage-backed, asset-backed and collateralized		64,183		67,857		17,453		17,076
Total	$	225,461	$	238,992	$	48,007	$	46,647
December 31, 2016
Due in one year or less	$	7,796	$	7,994	$	604	$	581
Due after one year through five years		49,200		51,958		6,002		5,841
Due after five years through ten years		43,308		44,226		16,045		15,332
Due after ten years		66,257		69,301		25,007		23,629
Mortgage-backed, asset-backed and collateralized		65,680		68,058		25,960		25,110
Total	$	232,241	$	241,537	$	73,618	$	70,493

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:

	Years Ended December 31,
		2017				2016				2015
		Gross		Gross		Gross		Gross	Gross		Gross
	Realized		Realized		Realized		Realized		Realized		Realized
(in millions)		Gains		Losses		Gains		Losses	Gains		Losses
Fixed maturity securities	$	725	$	300	$	801	$	800	$	517	$	423
Equity securities		107		19		1,072		15		1,060		28
Total	$	832	$	319	$	1,873	$	815	$	1,577	$	451

For the years ended December 31, 2017, 2016 and 2015, the aggregate fair value of available for sale securities sold was $31.3 billion, $30.2 billion and $28.7 billion, which resulted in net realized capital gains of $0.5 billion, $1.1 billion and $1.1 billion, 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:

		December 31, 2017				December 31, 2016
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	2,802	21	%	$	2,939	20	%
Obligations of states, municipalities and political subdivisions		-	-			-	-
Non-U.S. governments		57	1			51	-
Corporate debt		1,909	14			1,772	12
Mortgage-backed, asset-backed and collateralized:
RMBS		1,885	14			2,025	14
CMBS		559	4			603	4
CDO/ABS and other collateralized^*		5,560	42			6,608	47
Total mortgage-backed, asset-backed and collateralized		8,004	60			9,236	65
Total fixed maturity securities		12,772	96			13,998	97
Equity securities		589	4			482	3
Total	$	13,361	100	%	$	14,480	100	%

* Includes $251 million and $421 million of U.S. government agency backed ABS at December 31, 2017 and 2016, respectively.

Other Invested Assets

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

December 31,
(in millions)		2017		2016
Alternative investments^{(a) (b)}	$	11,308	$	13,379
Investment real estate^(c)		8,258		6,900
Aircraft asset investments^(d)		206		321
Investments in life settlements		-		2,516
All other investments		1,050		1,422
Total	$	20,822	$	24,538

(a) At December 31, 2017, included hedge funds of $5.8 billion, private equity funds of $5.0 billion, and affordable housing partnerships of $543 million. At December 31, 2016, included hedge funds of $7.2 billion, private equity funds of $5.5 billion, and affordable housing partnerships of $625 million.

(b) Approximately 75 percent of our hedge fund portfolio is available for redemption in 2018, an additional 25 percent will be available between 2019 and 2024.

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

Other Invested Assets Carried at Fair Value

Certain hedge funds, private equity funds, and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income with the exception of investments of AIG’s Other Operations, for which such changes are reported in Other income. Other investments in hedge funds, private equity funds and other investment partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influence over the respective partnerships are reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income. These investments are subject to other-than-temporary impairment evaluations (see discussion below on evaluating equity investments for other-than-temporary impairment). The gross unrealized loss recorded in Accumulated other comprehensive income on such investments was $45 million and $32 million at December 31, 2017 and 2016, respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in continuous unrealized loss positions for less than 12 months.

Other Invested Assets – Equity Method Investments

We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income with the exception of investments of AIG’s Other Operations, for which such changes are reported in Other income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments, which is one to three months prior to the end of our reporting period. The financial statements of these investees are generally audited annually.

Summarized Financial Information of Equity Method Investees

The following is the aggregated summarized financial information of our equity method investees, including those for which the fair value option has been elected:

Years Ended December 31,
(in millions)		2017		2016		2015
Operating results:
Total revenues	$	13,066	$	9,512	$	22,055
Total expenses		(6,835)		(7,361)		(3,898)
Net income	$	6,231	$	2,151	$	18,157
At December 31,
(in millions)				2017		2016
Balance sheet:
Total assets			$	132,708	$	158,306
Total liabilities			$	(35,585)	$	(37,336)

The following table presents the carrying amount and ownership percentage of equity method investments at December 31, 2017 and 2016:

		2017			2016
		Carrying	Ownership		Carrying	Ownership
(in millions, except percentages)		Value	Percentage		Value	Percentage
Equity method investments	$	9,050	Various	$	10,756	Various

Summarized financial information for these equity method investees may be presented on a lag, due to the unavailability of information for the investees at our respective balance sheet dates, and is included for the periods in which we held an equity method ownership interest.

Other Investments

Also included in Other invested assets are real estate held for investment and investments in aircraft equipment held in a consolidated trust. These investments are reported at cost, less depreciation and are subject to impairment review, as discussed below.

Investments in Life Settlements

Investments in life settlements are accounted for under the investment method. Under the investment method, we recognize our initial investment in life settlements at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force, primarily life insurance premiums, increase the carrying amount of the investment. We recognize income on individual investments in life settlements when the insured dies, at an amount equal to the excess of the investment proceeds over the carrying amount of the investment at that time. These investments are subject to impairment review, as discussed below.

During 2017, 2016 and 2015, income recognized on investments in life settlements was $266 million, $453 million and $332 million, respectively, and is included in Net investment income in the Consolidated Statements of Income.

Net Investment Income

Net investment income represents income primarily from the following sources:

Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable.
Dividend income from common and preferred stocks.
Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option.
Earnings from alternative investments.
The difference between the carrying amount of an investment in life settlements and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured.

The following table presents the components of Net investment income:

Years Ended December 31,
(in millions)		2017		2016		2015
Available for sale fixed maturity securities, including short-term investments	$	10,435	$	11,314	$	11,331
Other fixed maturity securities		660		331		1
Equity securities		34		(5)		99
Interest on mortgage and other loans		1,661		1,526		1,417
Alternative investments^*		1,475		693		1,120
Real estate		144		150		181
Other investments		290		509		432
Total investment income		14,699		14,518		14,581
Investment expenses		520		453		528
Net investment income	$	14,179	$	14,065	$	14,053

* Includes income from hedge funds, private equity funds and affordable housing partnerships. 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

Net realized capital gains and losses are determined by specific identification. The net realized capital gains and losses are generated primarily from the following sources:

Sales or full redemptions of available for sale fixed maturity securities, available for sale equity securities, real estate and other alternative investments.
Reductions to the amortized cost basis of available for sale fixed maturity securities, available for sale equity securities and certain other invested assets for other-than-temporary impairments.
Impairments on investments in life settlements.
Changes in fair value of derivatives except for (1) those derivatives at AIGFP and (2) those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses).
Exchange gains and losses resulting from foreign currency transactions.

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

Years Ended December 31,
(in millions)		2017		2016		2015
Sales of fixed maturity securities	$	425	$	1	$	94
Sales of equity securities^(a)		88		1,057		1,032
Other-than-temporary impairments:
Severity		(2)		(15)		(13)
Change in intent		(9)		(46)		(233)
Foreign currency declines		(11)		(18)		(57)
Issuer-specific credit events		(234)		(433)		(348)
Adverse projected cash flows		(4)		(47)		(20)
Provision for loan losses		(50)		10		(58)
Foreign exchange transactions		489		(1,226)		416
Variable annuity embedded derivatives, net of related hedges		(1,374)		(1,243)		320
All other derivatives and hedge accounting		(368)		299		78
Impairments on investments in life settlements		(360)		(397)		(540)
Other^(b)		30		114		105
Net realized capital gains (losses)	$	(1,380)	$	(1,944)	$	776

(a) In 2016 and 2015 includes realized gains on the sale of a portion of our holdings in People’s Insurance Company (Group) of China Limited and PICC Property & Casualty Company Limited (collectively, our PICC Investment).

(b) In 2016, primarily includes $107 million of realized gains due to a purchase price adjustment on the sale of Class B shares of Prudential Financial, Inc. and losses of $253 million from the sale of a portion of our Life Settlements portfolio. In 2015, primarily includes $357 million of realized gains due to the sale of common shares of SpringLeaf Holdings (now known as OneMain Holdings, Inc.), $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.

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:

	Years Ended
	December 31,
(in millions)		2017		2016
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	4,235	$	2,019
Equity securities		22		(1,155)
Other investments		(195)		(259)
Total increase (decrease) in unrealized appreciation (depreciation) of investments^*	$	4,062	$	605

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

Evaluating Investments for Other-Than-Temporary Impairments

Fixed Maturity Securities

If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an other-than-temporary impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized capital losses. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing.

For fixed maturity securities for which a credit impairment has occurred, the amortized cost is written down to the estimated recoverable value with a corresponding charge to realized capital losses. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not related to a credit impairment is presented in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income).

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

Current delinquency rates;
Expected default rates and the timing of such defaults;
Loss severity and the timing of any recovery; and
Expected prepayment speeds.

For corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers the fair value as the recoverable value when available information does not indicate that another value is more relevant or reliable. When management identifies information that supports a recoverable value other than the fair value, the determination of a recoverable value considers scenarios specific to the issuer and the security, and may be based upon estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets.

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

In periods subsequent to the recognition of an other-than-temporary impairment charge for available for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and the expected undiscounted recoverable value over the remaining expected holding period of the security.

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:

Years Ended December 31,
(in millions)		2017		2016		2015
Balance, beginning of year	$	1,098	$	1,747	$	2,659
Increases due to:
Credit impairments on new securities subject to impairment losses		122		204		111
Additional credit impairments on previously impaired securities		74		212		109
Reductions due to:
Credit impaired securities fully disposed of for which there was no
prior intent or requirement to sell		(99)		(296)		(399)
Credit impaired securities for which there is a current intent or
anticipated requirement to sell		-		-		2
Accretion on securities previously impaired due to credit^*		(669)		(767)		(735)
Divested businesses		-		(2)		-
Balance, end of year	$	526	$	1,098	$	1,747

* 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.

Equity Securities

We evaluate our available for sale equity securities for impairment by considering such securities as candidates for other-than-temporary impairment if they meet any of the following criteria:

The security has traded at a significant (25 percent or more) discount to cost for an extended period of time (nine consecutive months or longer);
A discrete credit event has occurred resulting in (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy laws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or
We have concluded that we may not realize a full recovery on our investment, regardless of the occurrence of one of the foregoing events.

The determination that an equity security is other-than-temporarily impaired requires the judgment of management and consideration of the fundamental condition of the issuer, its near-term prospects and all the relevant facts and circumstances. In addition to the above criteria, all equity securities that have been in a continuous decline in value below cost over 12 months are impaired. We also consider circumstances of a rapid and severe market valuation decline (50 percent or more) discount to cost, in which we could not reasonably assert that the impairment period would be temporary (severity losses).

Other Invested Assets

Our equity and cost method investments in private equity funds, hedge funds and other entities are evaluated for impairment similar to the evaluation of equity securities for impairments as discussed above. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments and specific inherent risks. Such risks may evolve based on the nature of the underlying investments.

Our investments in life settlements are monitored for impairment on a contract-by-contract basis quarterly. An investment in life settlements is considered impaired if the undiscounted cash flows resulting from the expected proceeds would not be sufficient to recover our estimated future carrying amount, which is the current carrying amount for the investment in life settlements plus anticipated undiscounted future premiums and other capitalizable future costs, if any. Impaired investments in life settlements are written down to their estimated fair value which is determined on a discounted cash flow basis, incorporating current market mortality assumptions and market yields or by repricing to the anticipated sale price as appropriate.

In general, fair value estimates for the investments in life settlements are calculated using cash flows based on medical underwriting ratings of the policies from a third-party underwriter, applied to an industry mortality table. Our mortality assumptions are based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. Mortality improvement factors are applied to these assumptions based on our view of future mortality improvements likely to apply to the U.S. insured lives population. Our mortality assumptions coupled with the mortality improvement rates are used in our estimate of future net cash flows from the investments in life settlements. We sold the remaining portion of our life settlements portfolio in 2017.

Our investments in aircraft assets and real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings.

Purchased Credit Impaired (PCI) Securities

We purchase certain RMBS securities that have experienced deterioration in credit quality since their issuance. We determine whether it is probable at acquisition that we will not collect all contractually required payments for these PCI securities, including both principal and interest. 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 an effective 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)	$	36,642
Cash flows expected to be collected^*		30,040
Recorded investment in acquired securities		20,267

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

		December 31,		December 31,
(in millions)		2017		2016
Outstanding principal balance	$	14,718	$	16,728
Amortized cost		10,492		11,987
Fair value		12,293		12,922

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

Years Ended December 31,
(in millions)		2017		2016
Balance, beginning of year	$	7,498	$	6,846
Newly purchased PCI securities		190		707
Disposals		(18)		-
Accretion		(797)		(842)
Effect of changes in interest rate indices		(34)		39
Net reclassification from (to) non-accretable difference, including effects of prepayments		662		748
Balance, end of year	$	7,501	$	7,498

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)		December 31, 2017		December 31, 2016
Fixed maturity securities available for sale	$	2,911	$	2,389
Other bond securities, at fair value	$	1,585	$	1,799

At December 31, 2017 and 2016, amounts borrowed under repurchase and securities lending agreements totaled $4.5 billion and $4.2 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
December 31, 2017
Bonds available for sale:
Non-U.S. governments	$	-	$	7	$	19	$	-	$	-	$	26
Corporate debt		-		13		35		-		-		48
Other bond securities:
U.S. government and government sponsored entities		44		-		-		-		-		44
Non-U.S. governments		-		-		11		-		-		11
Corporate debt		-		387		1,065		-		-		1,452
Total	$	44	$	407	$	1,130	$	-	$	-	$	1,581

December 31, 2016
Other bond securities:
Non-U.S. governments	$	-	$	-	$	-	$	51	$	-	$	51
Corporate debt		-		163		860		725		-		1,748
Total	$	-	$	163	$	860	$	776	$	-	$	1,799

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
December 31, 2017
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	-	$	-	$	-	$	-	$	-
Non-U.S. governments		-		-		18		-		-		18
Corporate debt		-		588		2,231		-		-		2,819
CMBS		-		-		-		-		-		-
Other bond securities:
Non-U.S. governments		-		-		22		-		-		22
Corporate debt		-		-		56		-		-		56
Total	$	-	$	588	$	2,327	$	-	$	-	$	2,915

December 31, 2016
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	21	$	-	$	-	$	-	$	21
Non-U.S. governments		-		-		50		-		-		50
Corporate debt		-		791		1,466		-		-		2,257
CMBS		-		-		61		-		-		61
Total	$	-	$	812	$	1,577	$	-	$	-	$	2,389

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)		December 31, 2017		December 31, 2016
Securities collateral pledged to us	$	2,227	$	1,434
Amount sold or repledged by us		46		11

At December 31, 2017 and December 31, 2016, amounts loaned under reverse repurchase agreements totaled $2.2 billion and $1.4 billion, respectively.

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

Insurance – Statutory and Other Deposits

The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance treaties, was $4.9 billion at both December 31, 2017 and 2016.

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 $93 million and $114 million of stock in FHLBs at December 31, 2017 and 2016, respectively. In addition, our subsidiaries have pledged securities available for sale and residential loans associated with advances from FHLB, with a fair value of $2.7 billion and $471 million, respectively, at December 31, 2017 and $3.4 billion and $17 million, respectively, at December 31, 2016, 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 billion and $2.2 billion at December 31, 2017 and 2016, 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.

Investments held in escrow accounts or otherwise subject to restriction as to their use were $255 million and $523 million, comprised of bonds available for sale and short term investments at December 31, 2017 and 2016, respectively.

LENDING ACTIVITIES

12 Months Ended

Dec. 31, 2017

LENDING ACTIVITIES

LENDING ACTIVITIES

7. Lending Activities

Mortgage and other loans receivable include commercial mortgages, residential mortgages, life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages, residential mortgages, commercial loans, and other loans and notes receivable are carried at unpaid principal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned.

Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method.

Life insurance policy loans are carried at unpaid principal balances. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy.

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

	December 31,			December 31,
(in millions)		2017		2016
Commercial mortgages^*	$	28,596	$	25,042
Residential mortgages		5,398		3,828
Life insurance policy loans		2,295		2,367
Commercial loans, other loans and notes receivable		1,056		2,300
Total mortgage and other loans receivable		37,345		33,537
Allowance for credit losses		(322)		(297)
Mortgage and other loans receivable, net	$	37,023	$	33,240

* 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 12 percent, respectively, at December 31, 2017, and 24 percent and 12 percent, respectively, at December 31, 2016).

Nonperforming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming mortgages were not significant for all periods presented.

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
December 31, 2017
Loan-to-Value Ratios^(b)
Less than 65%	$	18,000	$	1,525	$	351	$	19,876
65% to 75%		6,038		193		184		6,415
76% to 80%		569		40		-		609
Greater than 80%		1,416		206		74		1,696
Total commercial mortgages	$	26,023	$	1,964	$	609	$	28,596

December 31, 2016
Loan-to-Value Ratios^(b)
Less than 65%	$	13,998	$	1,694	$	232	$	15,924
65% to 75%		5,946		575		62		6,583
76% to 80%		1,246		174		47		1,467
Greater than 80%		471		392		205		1,068
Total commercial mortgages	$	21,661	$	2,835	$	546	$	25,042

(a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 2.1X and 1.9X at December 31, 2017 and 2016, respectively.

(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. Our weighted average loan-to-value ratio was 57 percent and 58 percent at December 31, 2017, and 2016, respectively.

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

	Number															Percent
December 31, 2017	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total^(c)	Total $
Credit Quality Performance
Indicator:
In good standing	778	$	8,163	$	8,585	$	5,338	$	2,023	$	2,373	$	1,960	$	28,442	99	%
Restructured^(a)	5		-		115		23		-		16		-		154	1
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	783	$	8,163	$	8,700	$	5,361	$	2,023	$	2,389	$	1,960	$	28,596	100	%
Allowance for credit losses:
Specific			-		3		1		-		1		-		5	-	%
General			72		94		37		6		15		18		242	1
Total allowance for credit losses		$	72	$	97	$	38	$	6	$	16	$	18	$	247	1	%
December 31, 2016
(dollars in millions)
Credit Quality Performance
Indicator:
In good standing	784	$	6,005	$	7,830	$	5,179	$	1,898	$	2,373	$	1,589	$	24,874	99	%
Restructured^(a)	4		-		134		18		-		16		-		168	1
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	788	$	6,005	$	7,964	$	5,197	$	1,898	$	2,389	$	1,589	$	25,042	100	%
Allowance for credit losses:
Specific		$	-	$	3	$	1	$	6	$	1	$	-	$	11	-	%
General			35		72		41		7		13		15		183	1
Total allowance for credit losses		$	35	$	75	$	42	$	13	$	14	$	15	$	194	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 below.

(b) Does not reflect allowance for credit losses.

(c) Our commercial mortgage loan portfolio is current as to payments of principal and interest, for both periods presented. 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.

Methodology Used to Estimate the Allowance for Credit Losses

Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determined using the present value of cash flows or the loan’s observable market price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past due status, debt service coverage, loan-to-value ratio, property type and location, loan term, profile of the borrower and of the major property tenants, and loan seasoning. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance.

Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is generally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is repaid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period.

A significant majority of commercial mortgages in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan.

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

	2017						2016						2015
Years Ended December 31,		Commercial		Other				Commercial		Other				Commercial		Other
(in millions)		Mortgages		Loans		Total		Mortgages		Loans		Total		Mortgages		Loans		Total
Allowance, beginning of year	$	194	$	103	$	297	$	171	$	137	$	308	$	159	$	112	$	271
Loans charged off		(22)		(3)		(25)		(13)		(2)		(15)		(23)		(6)		(29)
Recoveries of loans previously
charged off		-		1		1		11		-		11		4		1		5
Net charge-offs		(22)		(2)		(24)		(2)		(2)		(4)		(19)		(5)		(24)
Provision for loan losses		75		(26)		49		25		(32)		(7)		31		27		58
Other		-		-		-		-		-		-		-		3		3
Allowance, end of year	$	247 ^*	$	75	$	322	$	194 ^*	$	103	$	297	$	171 ^*	$	137	$	308

* Of the total allowance at the end of the year, $5 million, $11 million and $24 million relates to individually assessed credit losses on $82 million, $280 million and $507 million of commercial mortgages as of December 31, 2017, 2016 and 2015, respectively.

Troubled Debt Restructurings

We modify loans to optimize their returns and improve their collectability, among other things. When we undertake such a modification with a borrower that is experiencing financial difficulty and the modification involves us granting a concession to the troubled debtor, the modification is a troubled debt restructuring (TDR). We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower’s current default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower’s forecasted cash flows to service any of its outstanding debt (including both principal and interest), and the borrower’s inability to access alternative third-party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor. Concessions granted may include extended maturity dates, interest rate changes, principal or interest forgiveness, payment deferrals and easing of loan covenants.

During the 12 month period ended December 31, 2017, loans with a carrying value of $237 million were modified in troubled debt restructurings. Loans that had been modified in troubled debt restructurings during the 12 month period ended December 31, 2016 have been fully paid off.

- 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

REINSURANCE

12 Months Ended

Dec. 31, 2017

REINSURANCE

REINSURANCE

8. Reinsurance

In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our general insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for doubtful accounts requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for doubtful accounts on reinsurance assets was $187 million and $207 million at December 31, 2017 and 2016, respectively. Changes in the allowance for doubtful accounts on reinsurance assets are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income.

The following table provides supplemental information for loss and benefit reserves, gross and net of ceded reinsurance:

At December 31,		2017				2016
		As		Net of		As		Net of
(in millions)		Reported	Reinsurance			Reported	Reinsurance
Liability for unpaid losses and loss adjustment expenses	$	(78,393)	$	(51,685)	$	(77,077)	$	(61,545)
Future policy benefits for life and accident and health insurance contracts		(45,432)		(44,457)		(42,204)		(41,140)
Reserve for unearned premiums		(19,030)		(15,890)		(19,634)		(16,280)
Reinsurance assets^(a)		30,823				19,950

(a) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses.

Short-Duration Reinsurance

Short-duration reinsurance is effected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premiums. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit.

The following table presents short-duration insurance premiums written and earned:

	Years Ended December 31,
(in millions)		2017		2016		2015
Premiums written:
Direct	$	30,205	$	33,970	$	37,698
Assumed		3,084		2,824		2,972
Ceded		(7,533)		(7,561)		(7,604)
Net	$	25,756	$	29,233	$	33,066
Premiums earned:
Direct	$	30,904	$	34,869	$	37,105
Assumed		3,373		2,962		2,659
Ceded		(7,902)		(7,284)		(7,593)
Net	$	26,375	$	30,547	$	32,171

For the years ended December 31, 2017, 2016 and 2015, reinsurance recoveries, which reduced losses and loss adjustment expenses incurred, amounted to $1.5 billion, $2.1 billion and $4.1 billion, respectively.

Retroactive reinsurance agreements are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of past insurable events. For these agreements, the excess of the amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves. The amount of the deferral is recalculated each period based on loss payments and updated estimates. If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the agreement is recognized in income immediately. Ceded loss reserves under retroactive agreements were $13.4 billion and $1.7 billion, and the deferred gain liability was $1.6 billion and $384 million, as of December 31, 2017 and 2016, respectively. The effect on income from amortization of the deferred gain was $316 million, $30 million and $8 million for the years ended December 31, 2017, 2016, and 2015, respectively.

In 2017, we entered into a retroactive reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc. (Berkshire), under which we transferred to NICO 80 percent of the reserve risk on substantially all of our U.S. commercial long-tail exposures for accident years 2015 and prior. Under this agreement, we ceded to NICO 80 percent of the paid losses on subject business paid on or after January 1, 2016 in excess of $25 billion of net paid losses, up to an aggregate limit of $25 billion. At NICO’s 80 percent share, NICO’s limit of liability under the contract is $20 billion. The covered losses ceded to NICO were $13.1 billion and the unexpired limit was $6.9 billion at December 31, 2017. We paid total consideration, including interest, of $10.2 billion. The consideration was placed into a collateral trust account as security for NICO’s claim payment obligations, and Berkshire has provided a parental guarantee to secure the obligations of NICO under the agreement.

Long-Duration Reinsurance

Long-duration reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are earned over the contract period in proportion to the protection provided. Amounts recoverable from reinsurers on long-duration contracts are estimated in a manner consistent with the assumptions used for the underlying policy benefits and are presented as a component of Reinsurance assets.

The following table presents premiums for our long-duration life insurance and annuity operations:

Years Ended December 31,
(in millions)		2017		2016		2015
Gross premiums	$	5,338	$	4,732	$	5,240
Ceded premiums		(809)		(789)		(756)
Net	$	4,529	$	3,943	$	4,484

Long-duration reinsurance recoveries, which reduced Policyholder benefits and losses incurred, was approximately $1.0 billion for the years ended December 31, 2017, 2016 and 2015.

The following table presents long-duration insurance in-force ceded to other insurance companies:

At December 31,
(in millions)		2017		2016		2015
Long-duration insurance in force ceded	$	202,402	$	174,363	$	177,025

Long-duration insurance in-force assumed as a percentage of gross long-duration insurance in-force was 0.03 percent at both December 31, 2017 and 2016, and 0.04 percent at December 31, 2015; and premiums assumed represented 5 percent, 3 percent and 0.1 percent of gross premiums for the years ended December 31, 2017, 2016 and 2015, respectively.

The U.S. Life and Retirement companies manage the capital impact of their statutory reserve requirements, including those resulting from the NAIC Model Regulation “Valuation of Life Insurance Policies” (Regulation XXX) and NAIC Actuarial Guideline 38 (Guideline AXXX), through unaffiliated and affiliated reinsurance transactions. Effective July 1, 2016, one of the U.S. Life and Retirement companies entered into an agreement to cede approximately $5 billion of statutory reserves for certain whole life and universal life policies to an unaffiliated reinsurer. Effective December 31, 2016, the same life insurance subsidiary recaptured term and universal life reserves subject to Regulation XXX and Guideline AXXX, previously ceded to an affiliate, and ceded approximately $14 billion of such statutory reserves to an unaffiliated reinsurer under an amendment to the July 1, 2016 agreement. Under GAAP, these unaffiliated reinsurance transactions use deposit accounting with a reinsurance risk charge recorded in income, whereas such affiliated transactions are eliminated in consolidation. Under one affiliated reinsurance arrangement, one of the U.S. Life and Retirement companies obtains letters of credit to support statutory recognition of the ceded reinsurance. As of December 31, 2017, this subsidiary had two bilateral letters of credit totaling $450 million, which were issued on February 7, 2014 and expire on February 7, 2021. The letters of credit are subject to reimbursement by AIG Parent in the event of a drawdown.

For additional information on the use of affiliated reinsurance for Regulation XXX and Guideline AXXX reserves see Note 19.

Reinsurance Security

Our third-party reinsurance arrangements do not relieve us from our direct obligations to our beneficiaries. Thus, a credit exposure exists with respect to both short-duration and long-duration reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. We hold substantial collateral as security under related reinsurance agreements in the form of funds, securities, and/or letters of credit. A provision has been recorded for estimated unrecoverable reinsurance. We believe that no exposure to a single reinsurer represents an inappropriate concentration of credit risk to AIG. Gross reinsurance assets due from reinsurers exceeding 5 percent of our total reinsurance assets were approximately $18 billion and $8.2 billion at December 31, 2017 and 2016, respectively, of which approximately $7.6 billion and $4.4 billion at December 31, 2017 and 2016, respectively, was not secured by collateral.

DEFERRED POLICY ACQUISITION COSTS

12 Months Ended

Dec. 31, 2017

DEFERRED POLICY ACQUISITION COSTS

DEFERRED POLICY ACQUISITION COSTS

9. Deferred Policy Acquisition Costs

Deferred policy acquisition costs (DAC) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts.

We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates.

Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impairment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred, unamortized DAC and maintenance costs. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income, the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge.

Long-duration insurance contracts: Policy acquisition costs for participating life, traditional life and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is issued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviation to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying amount of future policy benefit liabilities, net of DAC, and what the future policy benefit liabilities, net of DAC, would be when applying updated current assumptions. When we determine a loss recognition event has occurred, we first reduce any DAC related to that block of business through amortization of acquisition expense, and after DAC is depleted, we record additional liabilities through a charge to Policyholder benefits and losses incurred. Groupings for loss recognition testing are consistent with our manner of acquiring, servicing and measuring the profitability of the business and applied by product groupings. We perform separate loss recognition tests for traditional life products, payout annuities and long-term care products. Once loss recognition has been recorded for a block of business, the old assumption set is replaced and the assumption set used for the loss recognition would then be subject to the lock-in principle.

Investment-oriented contracts: Policy acquisition costs and policy issuance costs related to universal life and investment-type products (collectively, investment-oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. Estimated gross profits include net investment income and spreads, net realized capital gains and losses, fees, surrender charges, expenses, and mortality gains and losses. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If estimated gross profits change significantly, DAC is recalculated using the new assumptions, and any resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decrease in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current period. Updating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts.

To estimate future estimated gross profits for variable annuity products, a long-term annual asset growth assumption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” methodology whereby short-term asset growth above or below long-term annual rate assumptions impacts the growth assumption applied to the five-year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to maintain our long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption, as evidenced by growth assumptions in the five-year reversion to the mean period falling below a certain rate (floor) or above a certain rate (cap) for a sustained period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five-year reversion to the mean period as well as the long-term annual growth assumption applied to subsequent periods.

Shadow DAC and Shadow Loss Recognition: DAC related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity and equity securities available for sale on estimated gross profits, with related changes recognized through Other comprehensive income (shadow DAC). The adjustment is made at each balance sheet date, as if the securities had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the liabilities are in a net unrealized gain position at the balance sheet date, loss recognition testing assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognition tests is recognized as a reduction in accumulated other comprehensive income (shadow loss recognition). Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabilities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income.

Internal Replacements of Long-duration and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and related actuarial balances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances are charged or credited to income, and any new deferrable costs associated with the replacement contract are deferred.

Value of Business Acquired (VOBA) is determined at the time of acquisition and is reported in the Consolidated Balance Sheets with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of the business in a manner similar to that for DAC based on the assumptions at purchase. For investment-oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity and equity securities available for sale in a manner similar to DAC.

The following table presents a rollforward of DAC and VOBA:

Years Ended December 31,
(in millions)		2017		2016		2015
Balance, beginning of year	$	11,042	$	11,115	$	9,828
Dispositions		(35)		(110)		-
Acquisition costs deferred		4,820		5,216		5,825
Amortization expense		(4,288)		(4,521)		(5,236)
Change in net unrealized gains (losses) on securities		(505)		(259)		848
Other, including foreign exchange		(40)		72		(150)
Reclassified to Assets held for sale		-		(471)		-
Balance, end of year^*	$	10,994	$	11,042	$	11,115
Supplemental Information:
VOBA amortization expense included in DAC amortization		20		40		64
VOBA, end of year included in DAC balance		381		393		453

* Net of reductions in DAC of $1.3 billion, $842 million, and $583 million at December 31, 2017, 2016 and 2015, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC).

The percentage of the unamortized balance of VOBA at December 31, 2017 expected to be amortized in 2018 through 2022 by year is: 8.4 percent, 7.8 percent, 7.2 percent, 6.1 percent and 5.9 percent, respectively, with 64.6 percent being amortized after five years. These projections are based on current estimates for investment income and spreads, persistency, mortality and morbidity assumptions.

DAC, VOBA and SIA for insurance-oriented and investment-oriented products are reviewed for recoverability, which involves estimating the future profitability of current business. This review involves significant management judgment. If actual future profitability is substantially lower than estimated, AIG’s DAC, VOBA and SIA may be subject to an impairment charge and AIG’s results of operations could be significantly affected in future periods.

VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2017

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

10. Variable Interest Entities

A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below.

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 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. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of 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 Consolidated Balance Sheets:

(in millions)		Real Estate and Investment Entities^(d)		Securitization Vehicles^(e)		Structured Investment Vehicle		Affordable Housing Partnerships		Other		Total
December 31, 2017
Assets:
Bonds available for sale	$	-	$	9,632	$	-	$	-	$	-	$	9,632
Other bond securities		-		4,518		-		-		3		4,521
Mortgage and other loans receivable		-		2,290		-		-		-		2,290
Other invested assets		1,365		206		-		3,087		25		4,683
Other^(a)		302		1,481		-		350		85		2,218
Total assets^(b)	$	1,667	$	18,127	$	-	$	3,437	$	113	$	23,344
Liabilities:
Long-term debt	$	680	$	1,624	$	-	$	1,825	$	5	$	4,134
Other^(c)		144		244		-		181		26		595
Total liabilities	$	824	$	1,868	$	-	$	2,006	$	31	$	4,729
December 31, 2016
Assets:
Bonds available for sale	$	-	$	10,233	$	-	$	-	$	-	$	10,233
Other bond securities		-		4,858		266		-		5		5,129
Mortgage and other loans receivable		1		1,442		-		-		104		1,547
Other invested assets		1,052		321		-		2,821		28		4,222
Other^(a)		365		1,104		50		384		92		1,995
Total assets^(b)	$	1,418	$	17,958	$	316	$	3,205	$	229	$	23,126
Liabilities:
Long-term debt	$	444	$	771	$	56	$	1,696	$	6	$	2,973
Other^(c)		224		203		1		211		38		677
Total liabilities	$	668	$	974	$	57	$	1,907	$	44	$	3,650

(a) Comprised primarily of Short-term investments and Other assets at December 31, 2017 and 2016.

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

(d) At December 31, 2017 and 2016, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $85.8 million and $106 million, respectively.

(e) At December 31, 2017 and 2016, $17.6 billion and $17.3 billion, respectively, of the total assets of consolidated securitization vehicles were owed to AIG Parent or its subsidiaries.

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^(b)		Sheet			Total
December 31, 2017
Real estate and investment entities^(a)	$	380,030	$	9,253	$	2,043		$	11,296
Affordable housing partnerships		4,468		725		-			725
Other		2,703		254		1,205	^(c)		1,459
Total	$	387,201	$	10,232	$	3,248		$	13,480
December 31, 2016
Real estate and investment entities^(a)	$	409,087	$	11,015	$	2,115		$	13,130
Affordable housing partnerships		4,709		785		-			785
Other		2,869		314		1,045	^(c)		1,359
Total	$	416,665	$	12,114	$	3,160		$	15,274

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

(b) At December 31, 2017 and 2016, $9.8 billion and $11.7 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

(c) These amounts 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.

Real Estate and Investment Entities

Through our insurance operations and AIG Global Real Estate, we are an investor in various real estate investment entities, some of which are VIEs. These investments are typically with unaffiliated third-party developers via a partnership or limited liability company structure. The VIEs’ activities consist of the development or redevelopment of commercial, industrial and residential real estate. Our involvement varies from being a passive equity investor or finance provider to actively managing the activities of the VIEs.

Our insurance operations participate as passive investors in the equity issued by certain third-party-managed hedge and private equity funds that are VIEs. Our insurance operations typically are not involved in the design or establishment of these VIEs, nor do they actively participate in the management of the VIEs.

Securitization Vehicles

We created certain VIEs that hold investments, primarily in investment-grade debt securities and loans, and issued beneficial interests in these investments. The majority of these beneficial interests are owned by our insurance operations and we maintain the power to direct the activities of the VIEs that most significantly impact their economic performance and bear the obligation to absorb losses or receive benefits from the entities that could potentially be significant to the entities. Accordingly, we consolidate these entities and those beneficial interests issued to third-parties are reported as Long-term debt. Total assets of consolidated securitization vehicles are $18.1 billion, of which $17.6 billion represents amounts owed to Parent or its subsidiaries.

Affordable Housing Partnerships

SunAmerica Affordable Housing Partners, Inc. (SAAHP) organized and invested in limited partnerships that develop and operate affordable housing qualifying for federal, state, and historic tax credits, in addition to a few market rate properties across the United States. The operating partnerships are VIEs, whose debt is generally non-recourse in nature, and the general partners of which are mostly unaffiliated third-party developers. We account for our investments in operating partnerships using the equity method of accounting, unless they are required to be consolidated. We consolidate an operating partnership if the general partner is an affiliated entity or we otherwise have the power to direct activities that most significantly impact the entities’ economic performance. The pre-tax income of SAAHP is reported as a component of the Life and Retirement segment.

RMBS, CMBS, Other ABS and CDOs

Primarily through our insurance operations, we are a passive investor in RMBS, CMBS, other ABS and CDOs, the majority of which are issued by domestic special purpose entities. We generally do not sponsor or transfer assets to, or act as the servicer to these asset-backed structures, and were not involved in the design of these entities.

Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities. Based on the nature of our investments and our passive involvement in these types of structures, we have determined that we are not the primary beneficiary of these entities. We have not included these entities in the above tables; however, the fair values of our investments in these structures are reported in Notes 5 and 6 herein.

DERIVATIVES AND HEDGE ACCOUNTING

12 Months Ended

Dec. 31, 2017

DERIVATIVES AND HEDGE ACCOUNTING

DERIVATIVES AND HEDGE ACCOUNTING

11. 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. 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. We use credit derivatives to manage our credit exposures. 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.

Interest rate, currency, equity and commodity swaps, credit contracts, swaptions, options and forward transactions are accounted for as derivatives, recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. Aggregate asset or liability positions are netted on the Consolidated Balance Sheets only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset.

Derivatives, with the exception of embedded derivatives, are reported at fair value in the Consolidated Balance Sheets in Other assets and Other liabilities. Embedded derivatives are generally presented with the host contract in the Consolidated Balance Sheets. A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted for according to the accounting guidance applicable for that instrument.

For additional information on embedded derivatives see Notes 5 and 14 herein.

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

	December 31, 2017								December 31, 2016
	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	$	-	$	-	$	838	$	15	$	175	$	-	$	782	$	11
Foreign exchange contracts		2,823		173		4,783		350		3,527		385		2,602		184
Equity contracts		-		-		159		19		-		-		113		7
Derivatives not designated
as hedging instruments:^(a)
Interest rate contracts		37,751		2,171		26,461		2,185		51,030		2,328		44,211		3,066
Foreign exchange contracts		6,305		658		11,093		895		9,468		935		7,674		1,185
Equity contracts		19,975		522		1,130		2		14,060		305		8,633		12
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts^(b)		4		1		1,365		277		4		2		861		331
Other contracts^(c)		39,829		20		59		5		37,633		22		62		6
Total derivatives, gross	$	106,687	$	3,545	$	45,888	$	3,748	$	115,897	$	3,977	$	64,938	$	4,802
Counterparty netting^(d)				(1,464)				(1,464)				(1,265)				(1,265)
Cash collateral^(e)				(1,159)				(1,249)				(903)				(1,521)
Total derivatives on
consolidated balance sheets^(f)			$	922			$	1,035			$	1,809			$	2,016

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

(b) As of December 31, 2017 and 2016, included CDSs on super senior multi-sector CDOs with a net notional amount of $685 million and $801 million (fair value liability of $254 million and $308 million), respectively. The expected weighted average maturity as of December 31, 2017 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 December 31, 2017 and 2016, 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 zero at both December 31, 2017 and December 31, 2016. Fair value of liabilities related to bifurcated Embedded derivatives was $4.1 billion and $3.1 billion, respectively, at December 31, 2017 and December 31, 2016. A bifurcated Embedded derivative is generally presented with the host contract in the 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 $2.9 billion and $4.5 billion at December 31, 2017 and 2016, 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 $1.3 billion and $1.5 billion at December 31, 2017 and 2016, 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 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 years ended December 31, 2017, 2016, and 2015 we recognized gains (losses) of $(106) million, $123 million and $90 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 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)
Year ended December 31, 2017
Interest rate contracts:
Realized capital gains/(losses)	$	(4)	$	4	$	-	$	-	$	-
Other income		-		-		-		-		-
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		(420)		393		-		(26)		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		4		-		-		4
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		(47)		42		-		(5)		-
Year ended December 31, 2016
Interest rate contracts:
Realized capital gains/(losses)	$	(7)	$	1	$	1	$	-	$	(7)
Other income		-		10		-		-		10
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		294		(335)		-		(41)		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		24		-		-		24
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		10		(11)		-		(1)		-
Year ended December 31, 2015
Interest rate contracts:
Realized capital gains	$	-	$	1	$	1	$	-	$	-
Other income		-		9		-		-		9
Gain/(Loss) on extinguishment of debt		-		14		-		-		14
Foreign exchange contracts:
Realized capital gains/(losses)		202		(167)		-		32		3
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		17		-		-		17
Gain/(Loss) on extinguishment of debt		-		17		-		-		17
Equity contracts:
Realized capital gains/(losses)		(45)		45		-		-		-

(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 Consolidated Statements of Income:

Years Ended December 31,	Gains (Losses) Recognized in Earnings
(in millions)		2017		2016		2015
By Derivative Type:
Interest rate contracts	$	56	$	(229)	$	339
Foreign exchange contracts		(277)		293		416
Equity contracts		(964)		(902)		(182)
Commodity contracts		-		-		(1)
Credit contracts		58		81		186
Other contracts		75		80		69
Embedded derivatives		(449)		(48)		49
Total	$	(1,501)	$	(725)	$	876
By Classification:
Policy fees	$	77	$	80	$	78
Net investment income		(11)		26		26
Net realized capital gains (losses)		(1,709)		(895)		365
Other income		139		63		401
Policyholder benefits and claims incurred		3		1		6
Total	$	(1,501)	$	(725)	$	876

Credit Risk-Related Contingent Features

We estimate that at December 31, 2017, based on our outstanding financial derivative transactions, a downgrade of our long-term senior debt ratings to 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 $83 million. The aggregate fair value of our derivatives that were in a net liability position and that contain such credit risk-related contingencies which can be triggered below our long-term senior debt ratings of BBB+ or Baa1 was approximately $572 million and $848 million at December 31, 2017 and 2016, respectively. The aggregate fair value of assets posted as collateral under these contracts at December 31, 2017 and 2016, was approximately $676 million and $875 million, respectively.

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 Consolidated Balance Sheets. The fair values of these hybrid securities were $4.4 billion and $4.8 billion at December 31, 2017 and 2016, respectively. These securities have par amounts of $9.1 billion and $10.1 billion at December 31, 2017 and 2016, respectively, and have remaining stated maturity dates that extend to 2052.

GOODWILL

12 Months Ended

Dec. 31, 2017

Goodwill Disclosure

GOODWILL

12. Goodwill

Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment annually or more frequently if circumstances indicate an impairment may have occurred. At December 31, 2017, as a result of the 2017 segment changes, goodwill is reported within our General Insurance business – North America and International operating segments, our Life and Retirement business – Life Insurance operating segment and our Other Operations and Legacy Portfolio operating segments. When a business is transferred from one reporting unit to another, as occurred as part of the 2017 segment changes, goodwill from the original operating segment is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. As a result, at December 31, 2017, $1.3 billion of goodwill was re-allocated to the General Insurance – North America and General Insurance – International operating segments based on their respective fair values.

The impairment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of an operating segment is less than its carrying amount. If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of an operating segment is less than its carrying amount, the impairment assessment involves a two-step process in which a quantitative assessment for potential impairment is performed.

If the qualitative test is not performed or if the test indicates a potential impairment is present, we estimate the fair value of each operating segment and compare the estimated fair value with the carrying amount of the operating segment, including allocated goodwill. The estimate of an operating segment’s fair value involves management judgment and is based on one or a combination of approaches including discounted expected future cash flows, market-based earnings multiples of the unit’s peer companies, external appraisals or, in the case of reporting units being considered for sale, third-party indications of fair value, if available. We consider one or more of these estimates when determining the fair value of an operating segment to be used in the impairment test.

If the estimated fair value of an operating segment exceeds its carrying amount, goodwill is not impaired. If the carrying value of an operating segment exceeds its estimated fair value, goodwill associated with that operating segment potentially is impaired. The amount of impairment, if any, is measured as the excess of the carrying value of the goodwill over the implied fair value of the goodwill. The implied fair value of the goodwill is measured as the excess of the fair value of the operating segment over the amounts that would be assigned to the operating segment’s assets and liabilities in a hypothetical business combination. An impairment charge is recognized in earnings to the extent of the excess of carrying value over fair value.

Goodwill was not impaired at December 31, 2017 based on the results of the goodwill impairment test.

The following table presents the changes in goodwill by operating segment:

	North				Life			Other		Legacy
(in millions)	America		International		Insurance		Operations		Portfolio			Total
Balance at January 1, 2015:
Goodwill - gross	$	1,834	$	2,887	$	21	$	7	$	182	$	4,931
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill		570		751		21		7		105		1,454
Increase (decrease) due to:
Acquisition		50		46		55		20		37		208
Other		-		(50)		1		-		-		(49)
Balance at December 31, 2015:
Goodwill - gross		1,884		2,883		77		27		219		5,090
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill		620		747		77		27		142		1,613
Increase (decrease) due to:
Dispositions		(6)		(6)		-		-		-		(12)
Other		-		(70)		-		-		(3)		(73)
Balance at December 31, 2016:
Goodwill - gross		1,878		2,807		77		27		216		5,005
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill		614		671		77		27		139		1,528
Increase (decrease) due to:
Acquisition		-		-		-		4		-		4
Dispositions		(10)		(7)		(6)		-		(2)		(25)
Other		-		74		13		-		-		87
Balance at December 31, 2017:
Goodwill - gross		1,868		2,874		84		31		214		5,071
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill	$	604	$	738	$	84	$	31	$	137	$	1,594

INSURANCE LIABILITIES

12 Months Ended

Dec. 31, 2017

Insurance Liabilites

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS

13. Insurance Liabilities

Liability for Unpaid Losses and Loss Adjustment Expenses (Loss Reserves)

Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and loss adjustment expenses (IBNR), less applicable discount. We regularly review and update the methods used to determine loss reserve estimates. Any adjustments resulting from this review are reflected currently in pre-tax income. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development.

Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $12.6 billion and $12.8 billion at December 31, 2017 and 2016, respectively. These recoverable amounts are related to certain policies with high deductibles (in excess of high dollar amounts retained by the insured through self-insured retentions, deductibles, retrospective programs, or captive arrangements, each referred to generically as “deductibles”), primarily for U.S. commercial casualty business. With respect to the deductible portion of the claim, we manage and pay the entire claim on behalf of the insured and are reimbursed by the insured for the deductible portion of the claim. Thus, these recoverable amounts represent a credit exposure to us. At December 31, 2017 and 2016, we held collateral of approximately $9.5 billion and $9.7 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements.

The following table presents the roll-forward of activity in Loss Reserves:

Years Ended December 31,
(in millions)		2017		2016		2015
Liability for unpaid loss and loss adjustment expenses, beginning of year	$	77,077	$	74,942	$	77,260
Reinsurance recoverable		(15,532)		(14,339)		(15,648)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year		61,545		60,603		61,612
Losses and loss adjustment expenses incurred:
Current year		21,079		20,232		20,308
Prior years, excluding discount and amortization of deferred gain		1,565		5,788		4,119
Prior years, discount charge (benefit)		187		(422)		(71)
Prior years, amortization of deferred gain on retroactive reinsurance^(a)		(284)		-		-
Total losses and loss adjustment expenses incurred		22,547		25,598		24,356
Losses and loss adjustment expenses paid:
Current year		(5,323)		(5,825)		(5,751)
Prior years		(16,241)		(16,908)		(18,205)
Total losses and loss adjustment expenses paid		(21,564)		(22,733)		(23,956)
Other changes:
Foreign exchange effect		788		(463)		(1,429)
Acquisitions^(b)		23		-		-
Dispositions^(c)		(360)		(1,058)		-
Retroactive reinsurance adjustment (net of discount)^(d)		(11,294)		-		20
Reclassified to liabilities held for sale^(e)		-		(402)		-
Total other changes		(10,843)		(1,923)		(1,409)
Liability for unpaid losses and loss adjustment expenses, end of year:
Net liability for unpaid losses and loss adjustment expenses		51,685		61,545		60,603
Reinsurance recoverable		26,708		15,532		14,339
Total	$	78,393	$	77,077	$	74,942

(a) Includes $25 million for 2011 retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the year ended December 31, 2017.

(b) Includes amounts related to the acquisition of Blackboard U.S. Holdings Inc in 2017.

(c) Includes amounts related to dispositions through the date of disposition. Includes sale of insurance operations to Fairfax, United Guaranty and Ascot Underwriting Holdings Limited, and Ascot Employees Corporate Member Limited (Ascot).

(d) Includes discount on retroactive insurance in the amount of $1.5 billion for the period ended December 31, 2017.

(e) Represents change in loss reserves included in our sale of certain of our insurance operations and certain assets to Fairfax for the period ended December 31, 2016. Upon consummation of the sale, we retained a portion of these reserves through reinsurance arrangements.

During 2017, we recognized unfavorable prior year loss reserve development of $1.6 billion. This unfavorable development was primarily a result of the following:

Unfavorable development in U.S. Casualty lines, driven primarily by increases in underlying severity and greater than expected emerging loss experience in accident year 2016 as well as increased development from claims related to construction defects and construction wrap business (largely from accident years 2006 and prior).
Unfavorable development in U.S. Financial Lines, primarily from Directors & Officers (D&O) policies covering privately owned and not-for-profit insureds. This development was predominantly in accident year 2016 and resulted largely from increases in bankruptcy-related claims and fiduciary liability claims for large educational institutions.
Higher than expected losses for Europe Casualty and Financial Lines. We observed a significant increase in large claims activity in our Europe long-tail business, with a large proportion emanating from accident year 2016. In addition, we increased our loss reserves as a result of the decision made by the U.K. Ministry of Justice to reduce the discount rate applied to lump-sum bodily injury payouts, known as the Ogden rate.
In addition we also observed higher than expected losses in Europe property and special risks business driven by unexpected development on various large claims across the property, aviation, marine, and trade credit segments.

Our analyses and conclusions about prior year reserves also help inform our judgments about the current accident year loss and loss adjustment expense ratios we selected.

During 2016, we recognized adverse prior year loss reserve development of $5.8 billion. This unfavorable development was primarily a result of the following:

Higher than expected losses emerging across several casualty product lines, especially in the recent accident years (generally, 2011 to 2015) driven by increased frequency and severity of claims. This recent accident year loss emergence caused us to increase loss development factors applied across many accident years.
Loss development factors including workers’ compensation tail factors, also increased due to an observed lengthening of loss reporting patterns relative to prior expectations.
Increases in loss trend assumptions to reflect the latest observed increases in frequency and severity and the impact of these increased loss trends on expected loss ratios.
Changes in weights we apply to the various actuarial methods to better align with updated trends.

During 2015, we recognized unfavorable prior year loss reserve development of $4.1 billion. This unfavorable development was primarily as a result of the following:

Higher than expected loss emergence across U.S. Excess Casualty, U.S. Workers’ Compensation, and U.S. Other Casualty lines as well as European Financial Lines.
Updated loss development selections in U.S. Excess Casualty, U.S. Financial Lines and U.S. Run-off Casualty Insurance lines, most notably tail factor selections and incorporation of updated industry experience for asbestos liabilities.
Revised estimates of expected future recoveries from risk-sharing policies in the U.S. Workers’ Compensation business.
Updated estimates for extra-contractual obligation claims and unallocated loss adjustment expenses.

The loss development tables below include loss development data by major lines of business for the last ten accident years. The drivers of prior year development are discussed following each of the loss development tables. .

The table below presents the reconciliation of the net liability for unpaid losses and loss adjustment expenses in the following tables to Loss Reserves in the Consolidated Balance Sheets for the year ended December 31, 2017:

	Net liability forunpaid losses and loss adjustment expensesas presented in the disaggregated tables below		Reinsurance recoverable on unpaid losses and loss adjustment expensesincluded in the disaggregated tables below		Gross liability forunpaid losses and loss adjustment expenses
(in millions)
U.S. Workers' Compensation (before discount)	$	6,616	$	6,513	$	13,129
U.S. Excess Casualty		4,802		4,053		8,855
U.S. Other Casualty		5,149		4,793		9,942
U.S. Financial Lines		5,104		1,962		7,066
U.S. Property and Special risks		5,410		968		6,378
U.S. Personal Insurance		1,380		194		1,574
Europe Casualty and Financial lines		6,986		1,156		8,142
Europe Property and Special risks		2,022		632		2,654
Europe and Japan Personal Insurance		2,348		349		2,697
U.S. Run-Off Long Tail Insurance Lines (before
discount)		5,383		3,675		9,058
Total	$	45,200	$	24,295	$	69,495

Reconciling Items
Discount on workers' compensation lines						(3,383)
Other product lines						8,568
Unallocated loss adjustment expenses						3,713
Total Loss Reserves					$	78,393

Loss Development Information

The following is information about incurred and paid loss developments as of December 31, 2017, net of reinsurance. The cumulative number of reported claims, the total of IBNR liabilities and expected development on reported loss included within the net incurred loss amounts are presented in the following section.

Reserving Methodology

We use a combination of methods to project ultimate losses for both long-tail and short-tail exposures, which include:

Paid Development method: The Paid Development method estimates ultimate losses by reviewing paid loss patterns and selecting paid ultimate loss development factors. These factors are then applied to paid losses by applying them to accident years, with further expected changes in paid loss. Since the method does not rely on case reserves, it is not directly influenced by changes in the adequacy of case reserves.
Incurred Development method: The Incurred Development method is similar to the Paid Development method, but it uses case incurred losses instead of paid losses. Since this method uses more data (case reserves in addition to paid losses) than the Paid Development method, the incurred development patterns may be less variable than paid development patterns.
Expected Loss Ratio method: The Expected Loss Ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year. This method may be useful if loss development patterns are inconsistent, losses emerge very slowly, or there is relatively little loss history from which to estimate future losses.
Bornhuetter-Ferguson method: The Bornhuetter-Ferguson method using premiums and paid losses is a combination of the Paid Development method and the Expected Loss Ratio method where the weight given to each method is the reciprocal of the loss development factor. This method normally determines expected loss ratios similar to the method used for the Expected Loss Ratio method. The Bornhuetter-Ferguson method using premiums and incurred losses is similar to the Bornhuetter-Ferguson method using premiums and paid losses except that it uses case-incurred losses.
Cape Cod method: The Cape Cod method is mechanically similar to the Bornhuetter-Ferguson method with the difference being that the Expected Loss Ratio estimates are determined based on a weighting of the loss estimates that come from the Paid/Incurred Development Methods. This method may be more responsive to recent loss trends than the Bornhuetter-Ferguson method.
Average Loss method: The Average Loss method multiplies a projected number of ultimate claims by an estimated ultimate severity average loss for each accident year to produce ultimate loss estimates. Since projections of the ultimate number of claims are often less variable than projections of ultimate loss, this method can provide more reliable results for reserve categories where loss development patterns are inconsistent or too variable to be relied on exclusively.

In updating our loss reserve estimates, we consider and evaluate inputs from many sources, including actual claims data, the performance of prior reserve estimates, observed industry trends, our internal peer review processes, including challenges and recommendations from our Enterprise Risk Management group, as well as the views of third-party actuarial firms. We use these inputs to improve our evaluation techniques, and to analyze and assess the change in estimated ultimate loss for each accident year by product line. Our analyses produce a range of indications from various methods, from which we select our best estimate.

In determining the actual carried loss reserves, we consider both the internal actuarial best estimate and numerous other internal and external factors, including:

an assessment of economic conditions, including real GDP growth, inflation, employment rates or unemployment duration, stock market volatility and changes in corporate bond spreads;
changes in the legal, regulatory, judicial and social environment, including changes in road safety, public health and cleanup standards;
changes in medical cost trends (inflation, intensity and utilization of medical services) and wage inflation trends;
underlying policy pricing, terms and conditions including attachment points and policy limits;
change in claims handling philosophy, operating model, processes, and related ongoing enhancements;
third-party claims reviews that are periodically performed for key classes of claims such as toxic tort, environmental and other complex casualty claims;
third-party actuarial reviews that are periodically performed for key classes of business;
input from underwriters on pricing, terms, and conditions and market trends; and
changes in our reinsurance program, pricing and commutations.

The following factors are relevant to the loss development information Included in the tables below:

Table organization: The tables are organized by accident year and include policies written on an occurrence and claims- made basis. We note that for certain categories of claims (e.g., construction defect claims and environmental claims) and for reinsurance recoverable, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us. These reclassifications are shown as development in the respective years in the tables below. Financial Lines business is primarily written on a claims-made basis, while the majority of the workers’ compensation, excess casualty, other casualty, and run-off property and casualty lines of business are written on an occurrence basis. Primarily, all short-tail lines in Property and Special Risks and Personal Insurance are written on an occurrence basis.
Groupings: We believe our groupings have homogenous risk characteristics with similar development patterns and would generally be subject to similar trends and reflect our reportable segments. The incurred losses and loss adjustment expenses and paid losses in the following tables for the current reporting year are allocated to the line of business and accident years based on an initial allocation methodology and updated for the final allocation in the subsequent reporting year. The difference between the initial and the final allocation does not have a material impact on the loss tables.
Reinsurance: Our reinsurance program varies by exposure type and may change from year to year. This may affect the comparability of the data presented in our tables. Note that the impact of the Adverse Development Reinsurance Agreement is shown separately. For the lines of business covered by the agreement, an allocation of the loss recoveries to the line of business by accident year is presented separately in the loss tables. The allocation is based on the underlying distribution of the losses subject to the agreement.
Incurred but not reported liabilities (IBNR): We include development from past reported losses in IBNR.
Data excluded from tables: Information with respect to accident years older than ten years is excluded from the development tables. Unallocated loss adjustment expenses are also excluded.
Foreign exchange: The loss development for operations outside of the U.S. is presented for all accident years using the current exchange rate at December 31, 2017. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends.
Dispositions: We exclude dispositions from all accident years presented in the tables.
Claim counts: We consider a reported claim to be one claim for each claimant or feature for each loss occurrence. Claims relating to losses that are 100 percent reinsured are excluded from the reported claims in the tables below. Reported claims for losses from assumed reinsurance contracts are not available and hence not included in the reported claims.
There are limitations that should be considered on the reported claim count data in the tables below, including:

Claim counts are presented only on a reported (not an ultimate) basis;
The tables below include lines of business and geographies at a certain aggregated level which may indicate different frequency and severity trends and characteristics, and may not be as meaningful as the claim count information related to the individual products within those lines of business and geographies;
Certain lines of business are more likely to be subject to occurrences involving multiple claimants and features, which can distort measures based on the reported claim counts in the table below; and
Reported claim counts are not adjusted for ceded reinsurance, which may distort the measure of frequency or severity.

Supplemental Information: The information about incurred and paid loss development for all periods preceding year ended December 31, 2017 and the related historical claims payout percentage disclosure is unaudited and is presented as supplementary information.

The following tables present undiscounted, incurred and paid losses and allocated loss adjustment expenses by accident year, on a net basis after reinsurance, with a separate presentation of the Adverse Development Reinsurance Agreement excluding the related amortization of the deferred gain:

U.S. Workers' Compensation

During 2017, we recognized $31 million of favorable prior year development.

During 2016, we recognized $1.9 billion of unfavorable prior year development due to increased tail and loss development factors.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	4,114	$	4,184	$	4,422	$	4,425	$	4,471	$	4,398	$	4,385	$	4,398	$	4,547	$	4,536	$	(11)	$	448	198,852	$	(416)	$	4,120	$	32
2009				3,466		3,633		3,608		3,666		3,639		3,616		3,606		3,708		3,714		6		495	147,357		(416)		3,298		79
2010						2,706		3,049		3,125		3,148		3,211		3,214		3,286		3,267		(19)		451	133,191		(449)		2,818		2
2011								2,901		2,953		3,091		3,158		3,113		3,152		3,156		4		481	124,657		(479)		2,677		2
2012										2,382		2,194		2,286		2,260		2,334		2,308		(26)		503	70,625		(494)		1,814		9
2013												1,932		1,880		1,950		2,060		2,032		(28)		548	46,483		(538)		1,494		10
2014														1,729		1,764		1,866		1,862		(4)		664	39,408		(552)		1,310		112
2015																1,708		1,864		1,866		2		849	35,059		(587)		1,279		262
2016																		1,299		1,346		47		773	28,880		-		1,346		773
2017																				789				577	22,523		-		789		577
Total																			$	24,876	$	(29)				$	(3,931)	$	20,945
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(16,580)		-					-		(16,580)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				3,867		4					(1,616)		2,251
Unallocated loss adjustment expense prior year development																						(6)
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	12,163	$	(31)				$	(5,547)	$	6,616


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	785	$	1,678	$	2,252	$	2,655	$	3,044	$	3,272	$	3,476	$	3,609	$	3,707	$	3,789	$	-
2009				630		1,328		1,756		2,120		2,390		2,621		2,780		2,887		2,968		-
2010						550		1,093		1,537		1,855		2,126		2,288		2,426		2,532		-
2011								519		1,129		1,561		1,884		2,129		2,285		2,388		-
2012										415		804		1,089		1,272		1,440		1,563		-
2013												282		619		879		1,067		1,214		-
2014														231		558		786		930		-
2015																234		524		725		-
2016																		147		378		-
2017																				93		-
Total																			$	16,580	$	-

Reserving Process and Methodology

U.S. Workers’ Compensation is an extremely long-tail line of business, with loss emergence extending for decades. We generally use a combination of loss development, frequency/severity and expected loss ratio methods for workers’ compensation.

Many of our primary casualty policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a traditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time. We group guaranteed cost and excess of deductible business separately and then further by state and industry subset to the extent that meaningful differences are determined to exist. We also separately analyze certain subsets of the portfolio that have unique characteristics (e.g., U.S. government sub-contractor accounts and construction wrap-up business). For excess of deductible business, we also segment by size of deductible and whether the claim is handled by AIG or an outside third-party administrator (TPA). The proportion of large deductible business has increased over time, which has slowed the reporting pattern of claims.

For guaranteed cost business, expected loss ratio methods generally are given significant weight only in the most recent accident year. Workers’ compensation claims are generally characterized by high frequency, low severity, and relatively consistent loss development from one accident year to the next. We historically have been a leading writer of workers’ compensation, and thus have sufficient volume of claims experience to use development methods. We generally segregate California (CA) and New York (NY) businesses from the other states to reflect their different development patterns and changing percentage of the mix by state. The claims development tables above are impacted by two other significant initiatives, which offset each other. In recent years, we instituted claims strategy changes and loss mitigation efforts to accelerate settlements, which we believe results in an overall reduction in claim costs. This strategy resulted in an increase in paid losses along the latest diagonals relative to prior years. In addition, we have been reducing premium volume in recent years and shifting a greater proportion of business to insured risk retention structures such as high deductible policies. These mix and volume changes slowed paid and incurred development since excess of deductible claims will typically take longer to emerge and settle.

Expected loss ratio methods for business written in excess of a deductible may be given significant weight in the most recent five accident years. In the 2016 analysis, we increased our tail factor estimates for states other than NY and CA for guaranteed cost business in recognition of longer medical development patterns that we have been seeing in recent years. We reflected increases in legal costs we have seen across the portfolio, particularly in California.

Additionally, over the years we have written a number of very large accounts which include workers’ compensation coverage. These accounts are generally individually priced by our actuaries, and to the extent appropriate, the indicated losses based on the pricing analysis may be used to record the initial estimated loss reserves for these accounts.

Prior Year Development

During 2017, we recognized $31 million of favorable prior year development in U.S. workers’ compensation business, particularly guaranteed cost business in the states of California and New York. Actual loss emergence during the year, particularly for guaranteed cost business in these two states, was significantly less than expected on a reported loss basis. We did recognize some offsetting unfavorable development in our Defense Based Act (DBA) business that covers government contractors in U.S. and non-U.S. military installations, as well as from a Pennsylvania Supreme Court decision that overturned a ruling that provided limitations on payments for certain permanent injuries (the Protz decision).

During 2016, we recognized $1.9 billion of unfavorable prior year development in primary workers’ compensation coverages primarily driven by the risk-sharing programs where we provide coverage in excess of large deductibles. For this excess of large deductible business, in 2016, we observed actual loss emergence and development at significantly greater levels than expected based on our previous experience in particular from losses in excess of $1 million. Since these policies respond to larger claims, the loss reporting pattern is much longer than observed in guaranteed cost workers’ compensation and it takes several years to discern credible changes in the pattern. Furthermore, implementation of claims settlement and loss mitigation strategies over the past several years has made the recent evaluation of data more challenging as historical development patterns may not yet fully reflect these claim and mitigation activities. During 2016, we refined our actuarial methodology by combining data across previously segregated underwriting portfolios to improve our ability to analyze the loss development trends and patterns that had been altered by the mix, claims handling and loss mitigation changes we have made during the last five years. We also developed further segmentations by deductible size and other key parameters, such as claims handled by TPA staff and not our claims department. As a result, we determined that the loss emergence patterns had changed and lengthened significantly from our prior expectation and therefore, we increased our loss development factors.

In addition, for workers’ compensation policies with no deductibles (guaranteed cost), we increased our tail factors for the all other states grouping to reflect the latest unfavorable experience in more mature accident years. This change increased the ultimate losses by approximately $440 million in 2016. We also reflected the increasing cost trends for legal and cost containment services, especially in California, as recent trends in this sector have been unfavorable.

Furthermore, in 2016, the Florida Supreme Court issued two separate rulings that have increased the potential liability for workers’ compensation claims in that state by undoing certain aspects of regulations in place since 2003. The Castellanos ruling eliminated statutory caps on claimant attorney fees in certain cases, and the Westphal ruling eliminated the 104-week limitation on temporary total disability benefits. Also in the second quarter, the Florida Court of Appeals issued the Miles decision, declaring unconstitutional certain restrictions on claimant-paid attorney fees. In in the second quarter 2016, we increased our workers’ compensation reserves by $100 million to reflect our estimate of the costs of these rulings on prior years’ claims.

During 2015, we increased our reserves by $234 million, primarily for accident years 2012 and prior in the U.S. Workers’ Compensation line, to reflect estimated increased losses and reduced expectations of future recoveries from our insureds through risk-sharing features. We also recognized $100 million of unfavorable prior year development in U.S. Workers’ Compensation coverages sold to government contractors in U.S. and non-U.S. military installations as a result of unfavorable loss emergence from several large accounts in the recent accident years. In addition, we reacted to the unfavorable emergence by increasing our expected loss ratios in recent accident years. For the remainder of the primary workers’ compensation portfolio, our 2015 analysis was based on the refined segmentation from 2014, and indicated that prior year loss reserve development was flat after taking into account the initiatives that our claim function had undertaken to manage high risk claims.

U.S. Excess Casualty

During 2017, we recognized $254 million of unfavorable prior year development in Excess Casualty driven by higher than expected loss emergence.

During 2016, we recognized $1.1 billion of unfavorable prior year development in Excess Casualty driven by continued higher than expected loss emergence.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	1,948	$	1,968	$	2,146	$	1,933	$	1,819	$	1,875	$	1,714	$	1,662	$	1,635	$	1,658	$	23	$	188	4,662	$	(176)	$	1,482	$	12
2009				1,831		1,897		1,797		1,638		1,457		1,321		1,407		1,518		1,522		4		210	3,789		(169)		1,353		41
2010						1,863		2,076		2,076		1,771		1,640		1,723		1,719		1,706		(13)		359	3,588		(260)		1,446		99
2011								1,766		1,807		1,581		1,416		1,521		1,606		1,623		17		350	3,520		(256)		1,367		94
2012										1,588		1,382		1,226		1,477		1,530		1,481		(49)		371	3,398		(323)		1,158		48
2013												1,073		973		1,113		1,258		1,178		(80)		441	2,722		(309)		869		132
2014														849		968		1,157		1,135		(22)		583	2,088		(355)		780		228
2015																892		1,334		1,320		(14)		602	1,770		(425)		895		177
2016																		790		1,029		239		870	1,061		-		1,029		870
2017																				758				725	376		-		758		725
Total																			$	13,410	$	105				$	(2,273)	$	11,137
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(7,120)		-					-		(7,120)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				1,649		141					(864)		785
Unallocated loss adjustment expense prior year development																						8
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	7,939	$	254				$	(3,137)	$	4,802


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	11	$	97	$	439	$	667	$	842	$	954	$	1,061	$	1,172	$	1,226	$	1,364	$	-
2009				8		69		249		449		624		788		965		1,174		1,212		-
2010						10		197		475		654		795		946		1,052		1,217		-
2011								5		63		225		386		716		921		1,069		-
2012										3		106		288		495		649		887		-
2013												15		104		204		382		546		-
2014														3		68		202		397		-
2015																9		192		361		-
2016																		14		66		-
2017																				1		-
Total																			$	7,120	$	-

Reserving Process and Methodology

U.S. Excess Casualty policies tend to attach at a high layer above underlying policies, which causes the loss development pattern to be lagged significantly. Many of the claims notified to the excess layers are closed without payment because the claims never reach our layer as a result of high deductibles and other underlying coverages, while the claims that reach our layer and close with payment can be large and highly variable in terms of reported timing and amount. For a portion of this business, the underlying primary policies are issued by other insurance companies, which can limit our access to relevant information to help inform our judgments as the loss events evolve and mature.

We generally use a combination of loss development methods and expected loss ratio methods for excess casualty product lines. We segment our analysis between automobile-related claims and non-automobile claims, due to the shorter-tail nature of the automobile claims. We then further segment the non-automobile claims for certain latent exposures such as construction defects and mass torts where losses have unique emergence patterns. Mass tort claims in particular may develop over an extended period of time and impact multiple accident years when they emerge. The more standard types of claims are then separately analyzed based on attachment point bands, to recognize that the impact of the level of the attachment point can significantly impact the delay in loss reporting and development. In our analyses, losses capped at $10 million were first analyzed using traditional loss development and expected loss ratio methods and then this estimate was used to derive the expected loss estimate for losses above $10 million reflecting the expected relationships between the layers, reflecting the attachment point and limit.

Expected loss ratio methods are generally used for at least the three latest accident years, due to the relatively low credibility of the reported losses. The loss experience is generally reviewed separately by attachment point. The expected loss ratios used for recent accident years are based on the projected ultimate loss ratios for older years adjusted for rate changes and loss trend.

Prior Year Development

During 2017, we recognized $254 million of unfavorable prior year development driven in large part by emerging loss experience in accident year 2016 where frequency and severity to date has exceeded initial expectations and is coinciding with increased loss severity in the underlying primary auto and general liability segments. In addition, we experienced increased development from claims related to construction defects and construction wrap business. The majority of this experience came from accident years 2006 and prior.

During 2016, we recognized $1.1 billion of unfavorable prior year development driven by continued higher than expected loss emergence due to increased frequency and severity in recent accident years for both automobile and general liability claims. Approximately $250 million of the unfavorable development is attributable to a cohort of commercial automobile claims identified in 2015 which continued to increase in severity in 2016 beyond what was observed or reasonably expected in 2015. The most significant increases in incurred losses were for accident years 2011 and subsequent. In particular, the frequency and severity of loss events for accident years 2011 and subsequent showed a significant step change from accident years 2010 and prior. We therefore gave limited credibility to accident year 2010 and prior in selecting our expected loss ratios for 2011 and subsequent accident years due to this shift in loss patterns that is now more evident and credible after examining 2016 data. As a result of the continued adverse emergence, we have increased our loss trend assumptions for general liability and automobile and increased our expected loss ratios for the most recent four accident years.

During 2015, U.S. Excess Casualty experienced $1.4 billion of unfavorable prior year development largely driven by worse than expected loss emergence reported in 2015. This increase was largely driven by adverse emergence in both general liability and umbrella auto liability, reflecting worsening trends in the number and nature of high severity losses. Approximately $411 million of the unfavorable development is related to automobile liability. Based on the adverse emergence we updated our assumptions about loss severity, loss development patterns and expected loss ratios for the most recent accident years. We have seen an increasing trend in the frequency of high severity claims, especially in the umbrella automobile liability portfolio. We also observed deterioration in certain class action claims that have complex coverage uncertainties and high limits characterized by increases in new claims and/or demands reported in 2015 and progress towards potential settlements, which have further informed our actuarial projections of ultimate losses for these types of claims. These types of claim classes have the longest emergence period within the excess casualty class and can impact multiple accident years, and are therefore inherently more volatile. In addition, we also increased losses associated with bad-faith claims by approximately $120 million reflecting an increase in recent settlements.

U.S. Other Casualty

U.S Other Casualty includes general liability, commercial auto, medical malpractice, and various other casualty lines of business.

In 2017, we recognized $216 million of unfavorable prior year development in Other Casualty primarily as a result of increased loss severity in recent accident years.

In 2016, we recognized $1.6 billion of unfavorable prior year development in Other Casualty as a result of increased frequency and severity in all three product lines.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	2,957	$	2,773	$	2,837	$	2,901	$	2,981	$	2,983	$	3,087	$	3,154	$	3,193	$	3,175	$	(18)	$	204	117,484	$	(104)	$	3,071	$	100
2009				2,416		2,517		2,586		2,582		2,697		2,818		2,880		2,863		2,855		(8)		144	90,101		(143)		2,712		1
2010						2,132		2,109		2,243		2,192		2,341		2,384		2,503		2,494		(9)		325	96,061		(133)		2,361		192
2011								2,052		2,222		2,321		2,458		2,601		2,639		2,596		(43)		256	75,189		(187)		2,409		69
2012										2,012		2,162		2,218		2,229		2,371		2,430		59		382	41,924		(210)		2,220		172
2013												1,662		1,739		1,918		2,152		2,183		31		450	36,699		(225)		1,958		225
2014														1,756		1,729		1,973		2,017		44		603	34,745		(331)		1,686		272
2015																1,340		1,778		1,847		69		752	31,409		(456)		1,391		296
2016																		1,348		1,352		4		853	23,868		-		1,352		853
2017																				616				487	15,172		-		616		487
Total																			$	21,565	$	129				$	(1,789)	$	19,776
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(15,521)		-					-		(15,521)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				1,406		10					(512)		894
Unallocated loss adjustment expense prior year development																						77
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	7,450	$	216				$	(2,301)	$	5,149


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	277	$	791	$	1,251	$	1,771	$	2,119	$	2,396	$	2,586	$	2,731	$	2,835	$	2,895	$	-
2009				393		842		1,253		1,650		2,002		2,241		2,386		2,607		2,664		-
2010						295		661		985		1,358		1,640		1,824		1,972		2,087		-
2011								235		726		1,109		1,488		1,822		2,048		2,220		-
2012										413		743		1,048		1,395		1,690		1,882		-
2013												169		592		956		1,243		1,483		-
2014														210		621		871		1,157		-
2015																111		321		783		-
2016																		77		299		-
2017																				51		-
Total																			$	15,521	$	-

Reserving Process and Methodology

U.S. Other Casualty includes general liability, automobile liability, environmental, medical malpractice, and other casualty lines of business. These lines of business are all long-tail in nature and while somewhat diverse in terms of exposures, these lines are often subject to similar trends. These lines are often significantly impacted by the underwriting cycle and external judicial trends. Many of our policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a traditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time.

We generally use a combination of loss development methods, frequency/severity and expected loss ratio methods for primary general liability or products liability product lines. We also supplement the standard actuarial techniques by using evaluations of the ultimate losses on unusual claims or claim accumulations by external specialists on those subsets of claims. The segmentation of the data reflects state differences, industry groups, deductible/non-deductible programs and type of claim.

We segment our analysis by line of business and key coverage structures (claims-made vs. occurrence, large deductible policies, retrospective-rated policies, captives, etc.). Additionally, certain subsets, such as construction defect for general liability, auto liability policies for trucking business, hospital policies for medical malpractice and underground storage tanks for environmental are generally reviewed separately from business in other subsets. We continually refine our loss reserving techniques for the domestic primary casualty product lines and adopt further segmentations based on our analysis of the differing emerging loss patterns for certain subsets of insureds. Due to the long-tail nature of general liability business, and the many subsets that are reviewed individually, there is less credibility given to the reported losses and increased reliance on expected loss ratio methods for recent accident years.

For certain product lines with sufficient loss volume, loss development methods may be given significant weight for all but the most recent one or two accident years. For smaller or more volatile subsets of business and excess of a large deductible business, loss development methods may be given limited weight for the five or more recent accident years. Expected loss ratio methods are used for the more recent accident years for these subsets. The loss experience for primary general liability business is generally reviewed at a level that is believed to provide the most appropriate data for reserve analysis. For other subsets, such as environmental, we utilize a combination of claim analysts’ loss projections and actuarial methods to estimate ultimate losses.

Expected loss ratio methods are generally given significant weight only in the most recent accident year, except for excess of large deductible business, in which expected loss ratio methods may receive weight for several of the most recent accident years. In recent years, the impact of the increase in the frequency of severe claims was projected in the accident years where it was most prevalent. The resulting increase in ultimate loss projections and loss ratios for those years impacted subsequent years through loss development factors and prior expected loss ratio assumptions.

Prior Year Development

Primary General Liability

In 2017, we increased our ultimate loss estimates for prior accident years by $330 million. This was driven by reported loss development being greater than expected as a result of increased loss severity. We revised our loss trend assumptions which also contributed to increased estimates for the more recent accident years. For older accident years, we experienced increased loss development from construction defect claims and construction wrap business.

In 2016, we increased our ultimate loss estimates for prior accident years by $754 million. We increased our assumptions about loss development and expected loss ratios based on the adverse actual versus expected loss emergence driven by increases in severity, especially in the risk-sharing excess of deductible programs. In addition, our segmentation separately evaluated key structural drivers recently identified in the data. As a result, we noted the unfavorable development that was driven by construction defect claims which continue to increase in severity and which exhibit continued higher development at later ages than previously observed. We also identified and separately analyzed in 2016 certain mass tort claims and increased reserves for such claims due to their much longer claim emergence and loss development patterns than previously observed.

In 2015, we increased our ultimate loss estimates for prior accident years by $172 million largely related to coverage sold to the construction sectors as we reacted to adverse loss emergence throughout the year, by changing our assumptions about loss development and expected loss ratios. For construction, the unfavorable development was driven by construction defect claims. The construction class was re-underwritten to reduce New York and U.S. residential exposures.

Primary Commercial Auto Liability

In 2017, we increased our ultimate loss estimates for prior accident years by $42 million. A majority of this development related to accident year 2016 where reported loss experience has been emerging greater than expected, driven by an increase in the frequency of large claims. We have experienced severity trends in recent accident years that have been at much higher levels than what has been reflected in the historic data, although we did see some signs of abatement during the second half of the year.

In 2016, we continued to observe increases in both the frequency and severity of claims occurring in accident years since the recent U.S. economic downturn. These claims have significantly outpaced both our accident year loss ratio assumptions made in 2015 and the pricing rate increases implemented during the same period. As a result, we recognized $352 million of unfavorable development during 2016 as we increased the expected loss ratios for recent accident years to reflect continued market deterioration in the trends observed in 2016 and the higher reported losses in very recent accident years.

For primary commercial auto liability in 2015, we observed increases in both the frequency and severity of claims occurring since the recovery from the recent U.S. economic downturn, which have significantly outpaced the pricing rate increases implemented during the same period. As a result, we recognized $105 million of unfavorable development during 2015 as we increased the expected loss ratios for recent accident years to reflect the deteriorating trends.

In 2015, we also reassessed the reasonableness of our primary general liability and commercial auto liability for future claim handling expenses related to existing loss reserves and updated our estimates to reflect the costs from recent investments in claims systems, processes and people with the objective of improving our ability to better manage total loss costs. We increased our reserve estimates by $214 million based on refined analyses, $100 million of which was attributable to U.S. general liability. The balance was distributed among other product lines.

Medical Malpractice

During 2017, we recognized favorable loss development of $23 million. Reported loss development was less than expected in aggregate; although we did continue to see higher loss severity in the more recent accident years. Premium volume has declined significantly over the last several years and certain segments such as physicians and surgeons, medical products, and nursing homes business (in certain jurisdictions) have been exited entirely.

During 2016, we recognized $428 million of unfavorable development in U.S. Other Casualty medical malpractice comprising primary and excess hospitals and nursing homes coverages. This was in reaction to a continued increase in the frequency of unusually large claims in these classes that drove the adverse actual versus expected loss emergence observed in 2016. Based on the observed adverse emergence and its sustained levels over the last several years, we increased our expected incurred losses and loss ratios for accident years 2011 and subsequent to reflect the distinct step change in the loss ratios from accident years 2010 and prior.

During 2015, we recognized $202 million of unfavorable development in U.S. Other Casualty hospitals coverages driven by deteriorating loss experience in accident years 2008 and subsequent characterized by large claims in various segments including hospitals, nursing homes, and pharmaceutical and medical products liability. Based on the review of these large claims, we increased our expected loss ratios for recent accident years and classified physicians and surgeons and pharmaceutical and medical products classes into runoff.

Other Lines

During 2017, we recognized favorable loss development of $133 million. The key drivers of this activity were favorable development on loss-sensitive casualty business, environmental impairment liability business, extra-contractual obligations, and business internally reinsured from other business units.

During 2016, we recognized adverse loss development of $50 million. The key drivers of this activity were adverse development on liabilities related to commuted and insolvent reinsurers, environmental impairment liability business, and extra-contractual obligations, partially offset by favorable development on loss-sensitive casualty business, residual market business, and reserves for unallocated loss adjustment expenses.

During 2015, we recognized adverse loss development of $514 million. This was primarily related to an increase in estimated liabilities related to our loss-sensitive casualty business.

U.S. Financial Lines

During 2017, we recognized $345 million of unfavorable prior year development in U.S. Financial Lines primarily due to adverse experience in the Directors and Officers (D&O) subset of business.

During 2016, we recognized $306 million of unfavorable prior year development in U.S. Financial Lines primarily due to higher than expected settlements on large claims from the financial crisis.

The mix of business has been changing in recent years as we write more cyber and mergers and acquisitions business, which generally report claims faster.


Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	1,871	$	2,045	$	2,017	$	1,847	$	1,961	$	1,897	$	1,933	$	2,066	$	2,096	$	2,106	$	10	$	36	21,719	$	(21)	$	2,085	$	15
2009				1,693		1,780		1,845		1,904		2,097		2,189		2,183		2,273		2,310		37		60	22,613		(26)		2,284		34
2010						1,552		1,509		1,406		1,366		1,370		1,472		1,514		1,541		27		70	20,159		(31)		1,510		39
2011								1,816		1,734		1,902		1,902		1,935		1,965		1,997		32		50	20,048		(50)		1,947		-
2012										1,572		1,739		1,777		1,892		1,986		1,987		1		146	20,090		(83)		1,904		63
2013												1,767		1,691		1,643		1,597		1,541		(56)		248	18,996		(126)		1,415		122
2014														1,767		1,736		1,849		1,898		49		417	17,249		(198)		1,700		219
2015																1,705		1,744		1,719		(25)		665	15,698		(313)		1,406		352
2016																		1,593		1,841		248		1,036	15,386		-		1,841		1,036
2017																				1,560				1,369	13,428		-		1,560		1,369
Total																			$	18,500	$	323				$	(848)	$	17,652
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(12,615)		-					-		(12,615)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				88		(44)					(21)		67
Unallocated loss adjustment expense prior year development																						66
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	5,973	$	345				$	(869)	$	5,104


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	32	$	420	$	888	$	1,183	$	1,385	$	1,590	$	1,712	$	1,897	$	1,990	$	2,016	$	-
2009				129		499		887		1,273		1,614		1,838		1,964		2,056		2,092		-
2010						31		285		566		800		1,017		1,180		1,280		1,361		-
2011								165		494		886		1,210		1,528		1,732		1,862		-
2012										76		406		815		1,252		1,497		1,625		-
2013												43		333		686		945		1,142		-
2014														66		371		853		1,159		-
2015																66		393		792		-
2016																		76		500		-
2017																				66		-
Total																			$	12,615	$	-

Reserving Process and Methodology

U.S. Financial Lines business includes D&O, Errors and Omissions (E&O), Employment Practices Liability Insurance (EPLI) and various professional liability subsets of business, as well as the fidelity book of business. This includes cyber coverage and mergers and acquisitions coverage, which have been a growing and evolving portion of this portfolio. These product lines are predominantly claims-made in nature, losses are characterized by low frequency and high severity, and results are often significantly impacted by external economic conditions.

Our analysis is segmented by major coverages, such as D&O, E&O, etc. and then further segmented by major industry groups (e.g. corporate accounts, national accounts, financial institutions, private/not-for-profit, etc.). We also separately review primary business from excess business for certain product lines.

We generally use a combination of loss development methods and expected loss ratio methods for D&O, E&O, EPLI, and professional liability. These product lines generally are offered on a claims-made basis, and losses are characterized by low frequency and high severity. In general, expected loss ratio methods are given more weight in the more recent accident years, and loss development methods are given more weight in more mature accident years. The loss development factors for the different segments differ significantly in some cases, based on specific coverage characteristics and other factors such as industry group, attachment points, and limits offered. Individual claims projections for accident years ended over eighteen months prior are also used in the analysis.

Frequency/severity methods are generally not used in isolation for these product lines as the overall losses are driven by large losses more than by claim frequency. Severity trends have varied significantly from accident year to accident year and care is required in analyzing these trends by claim type. We also give weight to claim department ground-up projections of ultimate loss on a claim-by-claim basis as these may be more predictive of ultimate loss values, especially for older accident years.

We generally use loss development methods for fidelity exposures for all but the latest accident year. We also use claim department projections of the ultimate value of each reported claim to supplement and inform the standard actuarial approaches and some weight is given to this method in the more recent accident years. For surety exposures, we generally use the same method as for short-tail classes whereby frequency/severity methods, loss development methods, and IBNR factor methods are used alone or in combination to set reserves.

Expected loss ratio methods are also given weight for the more recent accident years. IBNR factor methods are used, when the nature of losses is low frequency/high severity. The IBNR factors, when applied to earned premium, generate the ultimate expected losses (or other exposure measure) yet to be reported. The factors are determined based on prior accident quarters’ loss costs adjusted to reflect current cost levels and the historical emergence of those loss costs. The factors are continually reevaluated to reflect emerging claim experience, rate changes or other factors that could affect the adequacy of the IBNR factor being employed.

Prior Year Development

During 2017, we recognized $345 million of unfavorable prior year development particularly in accident year 2016. The largest share of the unfavorable development came from D&O for privately owned and not-for -profit insureds and resulted largely from increases in bankruptcy-related claims and fiduciary liability claims for large educational institutions. Other segments of the portfolio contributed largely offsetting favorable and unfavorable development; notably, development was unfavorable for excess D&O and employment practices liability while development was favorable for fidelity and D&O for corporate and national accounts.

During 2016, we recognized $306 million of unfavorable prior year development as we reacted to the unfavorable actual versus expected in 2016 driven by higher than expected settlements on several large claims from the financial crisis for accident years 2006 to 2010, as well as unfavorable emergence of errors and omissions losses relative to historical expectations. In addition to the unfavorable emergence, we also updated our loss development factor assumptions, expected loss ratio assumptions and the weights given to the various methods in recent accident years.

During 2015, we recognized $502 million of unfavorable prior year development driven largely by the unfavorable loss emergence that we saw in 2015, especially in D&O and professional liability. In particular, we have observed greater than expected loss costs for several claims from accident years 2006 through 2010, driven by unfavorable settlements and deterioration in known claims. We also updated our loss development factor assumptions as well as expected loss ratio assumptions.

U.S. Property and Special Risks

During 2017, we recognized $115 million of unfavorable prior year development in U.S. Property and Special Risks mainly due to unfavorable development from the commercial auto portion of the Program business unit, which offers multiline policies to small and mid-sized insureds.

During 2016, we recognized $396 million of unfavorable prior year development in U.S. Property and Special Risks. The increase was mainly due to the U.S. program product line which is a collection of programs offering package policies to small and middle market insureds.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	3,531	$	3,789	$	3,747	$	3,700	$	3,659	$	3,609	$	3,585	$	3,581	$	3,576	$	3,575	$	(1)	$	20	56,526	$	(14)	$	3,561	$	6
2009				1,919		1,704		1,689		1,700		1,662		1,665		1,656		1,664		1,663		(1)		18	42,897		(13)		1,650		5
2010						2,275		2,042		2,009		2,049		2,061		2,038		2,043		2,058		15		21	42,276		(18)		2,040		3
2011								3,045		2,917		2,872		2,878		2,867		2,910		2,919		9		43	43,849		(19)		2,900		24
2012										3,470		3,617		3,585		3,576		3,697		3,691		(6)		62	42,278		(25)		3,666		37
2013												1,975		1,972		1,859		1,926		1,949		23		74	41,937		(38)		1,911		36
2014														2,355		2,143		2,220		2,213		(7)		140	50,160		(61)		2,152		79
2015																2,398		2,312		2,299		(13)		203	50,624		(98)		2,201		105
2016																		2,516		2,580		64		402	45,583		-		2,580		402
2017																				4,085				1,331	29,709		-		4,085		1,331
Total																			$	27,032	$	83				$	(286)		26,746
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(21,589)		-					-		(21,589)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				318		12					(65)		253
Unallocated loss adjustment expense prior year development																						20
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	5,761	$	115				$	(351)		5,410


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	1,323	$	2,679	$	3,150	$	3,342	$	3,457	$	3,487	$	3,498	$	3,515	$	3,530	$	3,540	$	-
2009				495		1,044		1,288		1,443		1,528		1,580		1,597		1,618		1,633		-
2010						654		1,391		1,657		1,799		1,880		1,940		1,978		2,001		-
2011								880		1,988		2,417		2,593		2,734		2,812		2,840		-
2012										734		2,410		2,978		3,273		3,456		3,565		-
2013												586		1,275		1,469		1,620		1,732		-
2014														745		1,452		1,713		1,869		-
2015																820		1,501		1,766		-
2016																		799		1,689		-
2017																				954		-
Total																			$	21,589	$	-

Reserving Process and Methodology

U.S. Property products include commercial, industrial and energy-related property insurance products and services that cover exposures to manmade and natural disasters, including business interruption. U.S. Special Risk products include aerospace, environmental, political risk, trade credit, surety and marine insurance, and program business for various small and medium sized enterprises insurance lines. The program segments include both property and casualty exposures.

We primarily segment our analysis by line of business. Additionally, we separately review various subsets, including hull, cargo, and liability for marine business, aviation and satellite for aerospace business, and various other specific programs and product lines.

Frequency/severity methods, loss development methods, and IBNR factor methods are used alone or in combination to set reserves for short-tail classes such as U.S. Property.

IBNR factor methods are used when the nature of losses is low frequency/high severity. The IBNR factors, when applied to earned premium, generate the ultimate expected losses (or other exposure measure) yet to be reported. The factors are determined based on prior accident quarters’ loss costs adjusted to reflect current cost levels and the historical emergence of those loss costs. The factors are continually reevaluated to reflect emerging claim experience, rate changes or other factors that could affect the adequacy of the IBNR factor being employed.

We generally use a combination of loss development methods and expected loss ratio methods for aviation exposures. Aviation claims are not very long-tail in nature; however, they are driven by claim severity. Thus a combination of both development and expected loss ratio methods is used for all but the latest accident year to determine the loss reserves. Frequency/severity methods are not employed due to the high severity nature of the claims and different mix of claims from year to year.

We generally use loss development methods for fidelity exposures for all but the latest accident year. We also use claim department projections of the ultimate value of each reported claim to supplement and inform the standard actuarial approaches and some weight is given to this method in the more recent accident years. The claims staff also provides specific estimates to assist in the setting of reserves for natural catastrophe losses.

For program business, we use methods which vary by line of business. For property classes, we use methods similar to those noted above. For liability classes, we use methods similar to those described in the casualty sections detailed above.

Expected loss ratio methods are used to determine the loss reserves for the latest accident year. We also use ground-up claim projections provided by our claims staff to assist in developing the appropriate reserve.

Prior Year Development

During 2017, we recognized $115 million of unfavorable prior year development primarily driven by commercial auto business in the program business unit. A significant portion of this development came from accident year 2016 with much of it related to programs that have been terminated over the past year. We also experienced some individual severe loss experience, also mostly related to accident year 2016 in other lines of business including aviation, surety, and marine; however, this was largely offset by favorable development in commercial property.

During 2016, we recognized $396 million of unfavorable prior year development driven by our U.S. program business where we recognized $350 million of unfavorable prior year development due to higher than expected claim emergence in certain automobile, habitational and professional liability programs that resulted in our increasing expected loss ratios and loss development factors for several program subsets.

During 2015, we recognized $132 million of favorable prior year development from a number of large individual property claims.

U.S. Personal Insurance

During 2017, we recognized $16 million of unfavorable prior year development in U.S. Personal Insurance mainly due to homeowners business in accident year 2016. This was partially offset by favorable development in accident and health business.

During 2016, we recognized $32 million of favorable prior year development in U.S. Personal Insurance.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	1,630	$	1,638	$	1,640	$	1,654	$	1,654	$	1,654	$	1,663	$	1,666	$	1,664	$	1,668	$	4	$	1	292,830	$	(1)	$	1,667	$	-
2009				1,763		1,697		1,649		1,663		1,664		1,664		1,668		1,667		1,671		4		4	375,959		-		1,671		4
2010						1,843		1,809		1,819		1,819		1,820		1,819		1,817		1,817		-		2	422,527		(1)		1,816		1
2011								1,886		1,908		1,896		1,891		1,890		1,886		1,881		(5)		1	412,670		(1)		1,880		-
2012										2,208		2,128		2,109		2,083		2,077		2,094		17		4	403,542		(3)		2,091		1
2013												1,887		1,816		1,803		1,782		1,780		(2)		7	334,474		(6)		1,774		1
2014														1,552		1,562		1,572		1,572		-		19	273,481		(8)		1,564		11
2015																1,511		1,498		1,494		(4)		23	258,241		(19)		1,475		4
2016																		1,536		1,533		(3)		73	240,892		-		1,533		73
2017																				2,028				571	185,198		-		2,028		571
Total																			$	17,538	$	11				$	(39)		17,499
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(16,053)		-					-		(16,053)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				(65)		5					(1)		(66)
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	1,420	$	16				$	(40)		1,380


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	1,151	$	1,493	$	1,569	$	1,609	$	1,634	$	1,644	$	1,656	$	1,660	$	1,663	$	1,665	$	-
2009				1,129		1,563		1,567		1,618		1,639		1,650		1,658		1,663		1,664		-
2010						1,205		1,669		1,736		1,772		1,794		1,803		1,808		1,810		-
2011								1,204		1,752		1,814		1,840		1,860		1,869		1,873		-
2012										1,238		1,936		1,996		2,035		2,065		2,079		-
2013												1,109		1,634		1,705		1,744		1,759		-
2014														959		1,380		1,463		1,507		-
2015																931		1,320		1,411		-
2016																		857		1,344		-
2017																				941		-
Total																			$	16,053	$	-

Reserving Process and Methodology

U.S. Personal Insurance consists of accident and health and personal lines. Accident and health products include voluntary and sponsor-paid personal accident and supplemental health products for individuals, employees, associations and other organizations as well as a broad range of travel insurance products and services for leisure and business travelers. Personal lines include automobile and homeowners’ insurance, extended warranty, and consumer specialty products, such as identity theft and credit card protection. Personal lines also provides insurance for high net worth individuals offered through AIG Private Client Group, including auto, homeowners, umbrella, yacht, fine art and collections insurance. Personal lines are generally short-tail in nature.

We primarily segment our analysis by line of business and may separately review various sub-segments, such as specific accident and health products and property damage versus liability for personal lines products.

Frequency/severity methods, loss development methods, and IBNR factor methods are used alone or in combination to set reserves for short-tail product lines such as personal property.

Frequency/severity and loss development methods are utilized for domestic personal auto product lines.

For these classes of business, reliance is placed on frequency/severity methods as claim counts emerge quickly for personal auto. Frequency/severity methods allow for more immediate analysis of resulting loss trends and comparisons to industry and other diagnostic metrics.

In general, development for U.S. Personal Insurance classes has been very stable, with only modest changes in the initial selected loss ratios for this business.

Prior Year Development

During 2017, we recognized $16 million of unfavorable prior year development in U.S. Personal Insurance mainly due to homeowners business in accident year 2016, particularly from catastrophe activity. This was partially offset by favorable development in accident and health business.

During 2016 and 2015, we recognized $32 million, and $69 million of favorable development, respectively, mainly driven by accident and health business.

Europe Casualty and Financial Lines

During 2017, we recognized $507 million of unfavorable prior year development in Europe Casualty and Financial Lines driven by continued higher than expected loss emergence.

During 2016, we recognized $320 million of unfavorable prior year development, largely from accident years 2014 and 2015.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2008	$	1,511	$	1,615	$	1,632	$	1,580	$	1,595	$	1,599	$	1,649	$	1,605	$	1,604	$	1,604	$	-	$	24	236,384
2009				1,746		1,844		1,858		1,856		1,885		1,906		1,912		1,996		2,030		34		103	236,270
2010						1,484		1,436		1,432		1,457		1,380		1,420		1,377		1,445		68		77	274,310
2011								1,414		1,352		1,426		1,465		1,552		1,554		1,597		43		83	264,629
2012										1,224		1,193		1,150		1,222		1,263		1,232		(31)		103	217,887
2013												1,221		1,277		1,257		1,258		1,305		47		194	185,435
2014														1,280		1,267		1,302		1,303		1		340	175,630
2015																1,337		1,515		1,538		23		588	188,348
2016																		1,563		1,716		153		724	221,122
2017																				1,587				1,214	204,712
Total																			$	15,357	$	338
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(8,965)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				594		169
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	6,986	$	507

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
2008	$	130	$	477	$	726	$	961	$	1,118	$	1,245	$	1,323	$	1,375	$	1,455	$	1,471
2009				139		418		708		970		1,139		1,274		1,442		1,581		1,681
2010						147		420		635		808		947		1,042		1,109		1,162
2011								140		376		564		811		963		1,108		1,224
2012										121		334		484		677		809		897
2013												105		375		543		736		877
2014														86		299		494		628
2015																80		286		486
2016																		140		426
2017																				113
Total																			$	8,965

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

Reserving Process and Methodology

Europe is our largest non-U.S. region for Liability and Financial Lines. Europe Casualty and Financial Lines is composed of third-party coverages including general liability, auto liability, D&O, professional liability and various other lines of business throughout both the UK and Continental Europe. These lines of business are all long-tail in nature and while somewhat diverse in terms of exposures, these lines are often subject to similar trends. These lines are impacted by the underwriting cycle and external judicial trends. The largest share of business is in the UK, but significant business is also written in other European countries such as Germany, France, and Italy.

We primarily segment our analysis by country and line of business. Additionally, we separately review various product lines, including excess versus primary casualty, commercial versus financial institutions management liability, and other specific programs and subsets of business. We maintain a database of detailed historical premium and loss transactions in original currency for business written outside of the U.S. which allows our actuaries to determine loss reserves without foreign exchange distorting development.

We generally use a combination of loss development methods and expected loss ratio methods. For countries and lines of business with sufficient loss volume, loss development methods may be given significant weight for all but the most recent accident years. For smaller countries and more volatile product lines, loss development methods are typically given limited weight for recent accident years. Further, we may rely on larger data subsets in determining the loss development factors and a priori loss ratio assumptions.

In general, the loss development for long-tail lines in Europe has been more stable than the development in U.S. long-tail lines, although some underlying drivers have affected the results in a similar manner (e.g. the impact of the financial crisis in accident years 2008 and 2009).

Prior Year Development

During 2017 we recognized $507 million of unfavorable prior year development in Europe casualty and Financial Lines. We observed a significant increase in large claims activity across multiple segments, notably excess casualty business and D&O and professional liability coverages for financial institutions. This experience was spread across multiple accident years but had the largest impact on accident year 2016 and accident years 2008 and prior. We increased loss development assumptions for Financial Lines business in consideration of the increased loss activity experienced in older accident years and increased expected loss ratios for more recent accident years. For Casualty lines, we increased loadings for large losses, particularly in the more recent accident years. In addition, we increased our loss reserves as a result of the decision made by the U.K. Ministry of Justice to reduce the discount rate applied to lump-sum bodily injury payouts, known as the Ogden rate.

During 2016, we recognized $320 million of unfavorable prior year development. Within Europe Financial Lines, we recognized $232 million of unfavorable development primarily from the D&O line in UK and Continental Europe as result of the unfavorable actual versus expected loss emergence in 2016 due to increased frequency and severity resulting from increasing litigation. In Europe Casualty we recognized $123 million of unfavorable development primarily from the unexpected emergence of several large excess casualty claims. The actual versus expected loss emergence for Europe Casualty and Financial Lines was more than expected.

During 2015, we recognized $142 million of unfavorable prior year development, primarily due to primary casualty and professional liability in Continental Europe and the UK. During 2015, we implemented an enhanced claims operating model in Europe which has provided our actuaries with more detailed case reserve data and analysis, enabling AIG’s actuaries to react sooner to case development than in prior years.

Europe Property and Special Risks

During 2017, we recognized $157 million of unfavorable prior year development in the Europe Property and Special Risks segment driven primarily by unexpected development on large claims, primarily from accident years 2015 and 2016.

During 2016, we recognized $11 million of unfavorable prior year development.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2008	$	633	$	636	$	644	$	643	$	632	$	626	$	620	$	618	$	614	$	613	$	(1)	$	-	41,602
2009				738		666		675		674		666		680		655		655		655		-		3	39,109
2010						788		747		719		703		712		703		706		707		1		-	40,389
2011								763		687		648		642		631		628		628		-		-	39,925
2012										728		682		648		630		615		627		12		(2)	34,457
2013												914		915		842		840		842		2		(1)	32,405
2014														994		1,046		1,052		1,050		(2)		1	38,719
2015																1,226		1,219		1,248		29		12	41,799
2016																		1,118		1,239		121		24	40,629
2017																				1,377				390	29,313
Total																			$	8,986	$	162
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(6,971)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				7		(5)
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	2,022	$	157

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
2008	$	148	$	399	$	511	$	546	$	577	$	590	$	596	$	596	$	598	$	599
2009				183		429		532		585		613		620		632		634		635
2010						187		489		584		634		672		686		690		693
2011								181		444		543		581		591		599		604
2012										154		410		511		549		572		580
2013												193		535		700		751		786
2014														220		669		885		939
2015																290		778		1,005
2016																		300		894
2017																				236
Total																			$	6,971

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

Reserving Process and Methodology

Europe Property products include commercial, industrial and energy-related property insurance products and services that cover exposures to manmade and natural disasters, including business interruption. Europe Special Risk products include aerospace, environmental, political risk, trade credit, surety and marine insurance, and various small and medium sized enterprises insurance lines.

Frequency/severity methods, loss development methods, and IBNR factor methods are used alone or in combination to set reserves for short-tail classes such as Europe Property.

We generally use loss development methods for fidelity exposures for all but the latest accident year. We also use claim department projections of the ultimate value of each reported claim to supplement and inform the standard actuarial approaches and some weight is given to this method in the more recent accident years. The claims staff also provides specific estimates to assist in the setting of reserves for natural catastrophe losses.

Prior Year Development

During 2017, we recognized $157 million of unfavorable prior year development, primarily from accident years 2015 and 2016. This was largely driven by large individual claim development in the property, aviation, marine, and trade credit lines of business

During 2016, we recognized $11 million of unfavorable prior year development, primarily from the property segment.

During 2015, we recognized $4 million of unfavorable prior year development from a number of large individual property claims.

Europe and Japan Personal Insurance

During 2017, we recognized $58 million of favorable prior year development in Europe and Japan Personal Insurance mainly due to accident and health business.

During 2016, we recognized $82 million of favorable prior year development in Europe and Japan Personal Insurance mainly due to accident and health business.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2008	$	2,869	$	2,911	$	2,904	$	2,908	$	2,915	$	2,919	$	2,913	$	2,916	$	2,912	$	2,914	$	2	$	3	1,577,002
2009				2,913		2,900		2,901		2,920		2,909		2,907		2,900		2,902		2,902		-		5	1,605,992
2010						2,969		3,007		3,015		3,003		3,004		2,999		3,027		3,030		3		8	1,819,631
2011								3,274		3,324		3,293		3,295		3,284		3,288		3,287		(1)		10	1,777,001
2012										2,898		2,867		2,851		2,836		2,845		2,846		1		16	1,729,298
2013												2,747		2,736		2,705		2,706		2,702		(4)		25	1,734,759
2014														2,717		2,716		2,698		2,690		(8)		45	1,789,718
2015																2,795		2,756		2,746		(10)		92	1,762,514
2016																		2,734		2,692		(42)		194	1,762,768
2017																				2,659				549	1,502,118
Total																			$	28,468	$	(59)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(26,161)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				41		1
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	2,348	$	(58)

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
2008	$	1,602	$	2,421	$	2,655	$	2,773	$	2,829	$	2,865	$	2,880	$	2,887	$	2,896	$	2,899
2009				1,627		2,412		2,656		2,765		2,821		2,850		2,867		2,879		2,886
2010						1,703		2,497		2,741		2,852		2,909		2,944		2,963		2,975
2011								1,987		2,787		3,022		3,134		3,198		3,227		3,244
2012										1,614		2,363		2,591		2,698		2,754		2,785
2013												1,503		2,246		2,462		2,569		2,625
2014														1,476		2,225		2,447		2,558
2015																1,501		2,270		2,493
2016																		1,500		2,231
2017																				1,465
Total																			$	26,161

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

Reserving Process and Methodology

Europe and Japan Personal Insurance lines consist of accident and health and personal lines. Accident and health products include voluntary and sponsor-paid personal accident and supplemental health products for individuals, employees, associations and other organizations as well as a broad range of travel insurance products and services for leisure and business travelers. Personal lines include automobile and homeowners’ insurance, extended warranty, and consumer specialty products, such as identity theft and credit card protection. Personal lines are generally short-tail in nature.

We primarily segment our analysis by line of business (and by country for Europe and Japan business) and may separately review various sub-segments, such as specific accident and health products and property damage versus liability for other personal lines products.

Frequency/severity methods, loss development methods, and IBNR factor methods are used alone or in combination to set reserves for short-tail product lines such as personal property.

Frequency/severity and loss development methods are utilized for domestic personal auto product lines.

In general, development for Europe and Japan Personal Insurance classes has been very stable, with only modest changes in the initial selected loss ratios for this business.

Prior Year Development

During 2017, 2016 and 2015, we recognized $58 million and $82 million of favorable development, and $15 million of unfavorable development, respectively, mainly driven by the accident and health business.

U.S. Run-Off Long Tail Insurance Lines

During 2017, the U.S. Run-Off Long Tail Insurance Lines experienced favorable prior year development of $30 million driven primarily by favorable asbestos development.

During 2016, the U.S. Run-Off Long Tail Insurance Lines experienced unfavorable prior year development of $390 million driven by Legacy pre-1986 pollution losses and the Run-Off public entity casualty business.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2008	$	945	$	1,035	$	884	$	868	$	909	$	926	$	978	$	976	$	983	$	985	$	2	$	65	40,075
2009				553		532		544		579		635		602		599		580		576		(4)		75	16,237
2010						640		528		534		557		585		582		611		565		(46)		68	8,490
2011								534		542		576		641		676		685		700		15		97	7,798
2012										629		678		741		786		751		752		1		104	4,053
2013												482		533		589		570		528		(42)		84	2,510
2014														379		475		453		459		6		164	2,307
2015																439		523		550		27		174	2,285
2016																		294		285		(9)		98	1,591
2017																				197				163	607
Total																			$	5,597	$	(50)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(3,830)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				3,616		(46)
Unallocated loss adjustment expense prior year development																						66
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	5,383	$	(30)

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
2008	$	133	$	370	$	497	$	572	$	657	$	726	$	787	$	832	$	846	$	866
2009				42		134		231		286		368		409		429		447		461
2010						57		149		243		321		404		435		455		464
2011								21		140		259		385		449		532		549
2012										86		194		286		414		481		498
2013												87		154		261		321		368
2014														21		96		185		233
2015																35		132		238
2016																		53		140
2017																				13
Total																			$	3,830

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

Reserving Process and Methodology

U.S. Run-Off Long Tail Insurance lines include run-off lines for asbestos and environmental (1986 and prior), excess workers’ compensation, and other casualty coverages consisting of environmental impairment liability and related coverages, medical malpractice, workers’ compensation, and general liability. In some cases, the exposures in the more recent years have declined since the portfolio is in run-off.

Asbestos and Environmental (1986 and prior)

Asbestos coverage has been excluded from AIG policies commencing in 1985. Most of AIG’s asbestos claims exposures are ceded to National Indemnity Company (NICO) under a retroactive reinsurance arrangement entered into in 2011. Many of other asbestos-related exposures are very long-tailed in nature and with exposures dating back 30 years or more. We consider a number of factors and recent experience in addition to the results of both external and internal analyses, to estimate asbestos and pre-1986 environmental loss reserves. We primarily base our determination of these loss reserves on a combination of ground-up and top-down analyses of historical claims and available insurance coverages. Nonetheless, we believe that significant uncertainty remains as to our ultimate liability for asbestos and environmental claims, which is due to several factors, including:

the long latency period between asbestos exposure and disease manifestation, and pollution events occurring undetected over many years, leading to the potential for involvement of multiple policy periods for individual claims;
claims filed under the non-aggregate premises or operations section of general liability policies;
the number of insureds seeking bankruptcy protection and the effect of prepackaged bankruptcies;
diverging legal interpretations; and
the difficulty in estimating the allocation of remediation cost among various parties with respect to environmental claims.

Loss reserves for asbestos and environmental claims cannot be estimated using conventional reserving techniques such as those that rely on historical accident year loss development factors. The methods used to determine asbestos and environmental loss estimates and to establish the resulting reserves are continually reviewed and updated by management.

Excess Workers’ Compensation

Excess workers’ compensation has an extremely long tail and is one of the most challenging lines of business from a reserving perspective, particularly when the excess coverage is provided above a self-insured retention layer. The class is highly sensitive to small changes in assumptions (for example — in the rate of medical inflation or the longevity of injured workers) which can have a significant effect on the ultimate reserve cost estimate.

Excess Workers’ Compensation business was written over qualified self-insurance by various divisions beginning in the 1980’s. In 1992, this business was consolidated into one division where it continued writing business up until 2011, when it was effectively put into runoff. In this book of business, the claims are not handled (or administered) by AIG General Insurance claims personnel, but are administered by the client’s designated TPA. However, AIG General Insurance claims personnel maintain an oversight role over these TPAs and claims.

Loss and loss adjustment expense liability estimates for excess workers’ compensation exposures are subject to additional uncertainties, due to the following:

claim settlement time is longer than most other casualty lines, due to the lifetime benefits that can be expected to payout on certain claims;
coverage statutes that vary by state; and
future medical inflation costs are difficult to estimate

For this business, a combination of traditional methods (paid and incurred loss development) and non-traditional methods (individual claim annuity model, report yea incurred loss development, and pure IBNR count/severity methods) are used to estimate loss and loss expense liability estimates. Loss data is segmented so as to reflect the anomalies in the historical data due to the various loss mitigation initiatives employed over the last several years.

Other Casualty Run-Off

As noted above, other legacy exposures include environmental impairment liability and related coverages, medical malpractice, workers’ compensation, and general liability. Depending on the individual class or lines of business reviewed, either traditional methods (i.e. paid loss development, incurred loss development), non-traditional methods (such as paid survival ratio or IBNR-to-case ratio methods) or a combination of the two are used. In addition, for some of the environmental impairment liability related coverage, approaches based on individual claim department estimates for large remediation sites are extensively included as part of the overall actuarial estimates for environmental impairment liability related exposures.

Prior Year Development

During 2017, the U.S. Run-Off long tail insurance lines recognized $30 million of favorable prior year development.

During 2016, the U.S. Run-Off long tail insurance lines recognized $390 million of unfavorable prior year development.

Asbestos and Environmental (1986 and prior)

In 2017, we recognized favorable net prior year development of $37 million on the retained portion of asbestos claims. This was primarily due to additional reinsurance recoveries identified for this portfolio. The development on the portion of the asbestos business ceded to NICO was unfavorable by $50 million on a gross basis, but had no net impact. For environmental, we recognized $22 million in unfavorable prior year development in consideration of activity related to several large clean-up sites and related accounts as well as a result of top-down actuarial analyses performed during the year. As part of this analysis, we increased our estimates of unallocated loss adjustment expense reserves for such claims, which were partially offset by a decrease in indemnity reserves.

In 2016, we increased gross undiscounted asbestos incurred losses by $106 million and decreased net undiscounted asbestos incurred losses by $20 million. The gross undiscounted change reflects an increase in estimates related to our accounts retroceded to NICO. The favorable development of the net incurred losses was largely a result of higher estimated external reinsurance recoveries on our retained asbestos exposures. For environmental, we increased incurred losses by $211 million primarily due to unfavorable development on several large clean-up sites and related accounts as well as a result of top down actuarial analyses performed during the year.

During 2015, the reported claim activity on the assumed claims increased. We responded to this by modifying certain of our loss-reserve-related assumptions to better reflect our loss development. Additionally, we considered recent industry-wide trends regarding expanding coverage theories for liability. In 2015, both the retained accounts and retroceded accounts ground-up reviews for asbestos were updated. As a result, we increased gross undiscounted asbestos incurred losses by $13 million and increased net undiscounted asbestos incurred losses by $164 million. The net undiscounted change reflects an increase primarily due to third-party assumed reinsurance exposures. With the gross incurred loss increase less than the net incurred loss increase, the resulting ceded incurred losses were reduced. For environmental, we increased gross environmental incurred losses by $214 million and net environmental incurred losses by $117 million as a result of top down actuarial analyses performed during the year, as well as development on a large sediment site.

Excess Workers’ Compensation

We did not recognize any material development in this segment during 2017, 2016 or 2015. The proactive management of settlement negotiations and other claims mitigation strategies minimized the volatility observed during this period.

Other Casualty Run-Off

In 2017, the net prior year development for the remaining legacy was favorable by $15 million. We experienced favorable development on runoff medical malpractice and environmental impairment liability business, which was partially offset by net unfavorable development on other casualty segments.

We increased the reserves for these coverages by $190 million and $636 million during 2016 and 2015, respectively, to reflect updated assumptions about future loss development. The 2016 increase was driven by runoff public entity business where we reacted to the adverse emergence over the last year by increasing our loss development factors to reflect the portfolio’s experience especially in the loss tail instead of relying on the overall excess casualty loss development factors.

Prior Year Development before 2008

The previous development tables include only accident years 2008 to 2017. The following table summarizes (favorable) unfavorable development, of incurred losses and loss adjustment expenses for accident year 2007 and prior by operating segment and major class of business:

Years Ended December 31,
(in millions)		2017		2016		2015
2007 and prior accident year development, excluding the impact of
Adverse Development Reinsurance Agreement, by major class of
of business and driver of development:
U.S. Workers' compensation (before discount)	$	4	$	1,009	$	100
U.S. Excess casualty		141		107		450
U.S. Other casualty		10		338		440
U.S. Financial lines		(44)		31		191
U.S. Property and Special risks		12		12		26
U.S. Personal Insurance		5		(13)		33
Europe Casualty and Financial lines		169		(6)		(2)
Europe Property and Special risks		(5)		1		(1)
Europe and Japan Personal Insurance		1		(5)		1
U.S. Long Tail Insurance lines (before discount)		(46)		363		621
All Other including unallocated loss adjustment expenses		177		3		(11)
Total prior year unfavorable development	$	424	$	1,840	$	1,848

Claims Payout Patterns

The following table presents the historical average annual percentage claims payout on an accident year basis at the same level of disaggregation as presented in the claims development table.

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
U.S. Workers' compensation	14.7	%	17.6	%	12.4	%	9.1	%	7.7	%	5.3	%	4.1	%	3.0	%	2.2	%	1.8	%
U.S. Excess casualty	0.6		7.0		13.0		13.4		12.5		11.0		8.4		10.0		2.8		8.3
U.S. Other casualty	9.9		16.3		15.4		14.5		11.8		8.2		5.9		5.6		2.6		1.9
U.S. Financial lines	4.0		17.9		21.1		16.7		13.2		9.3		6.1		6.0		3.0		1.2
U.S. Property and Special risks	30.2		35.7		13.0		7.2		4.6		2.5		1.0		0.9		0.7		0.3
U.S. Personal Insurance	61.4		27.6		3.8		2.2		1.2		0.6		0.4		0.2		0.1		0.2
Europe Casualty and Financial lines	7.9		17.0		13.7		13.7		9.8		7.5		6.3		4.6		5.0		1.0
Europe Property and Special risks	24.0		41.6		17.2		6.3		4.0		1.5		1.0		0.2		0.2		0.2
Europe and Japan Personal Insurance	56.0		26.9		8.0		3.8		2.0		1.1		0.6		0.3		0.3		0.1
U.S. Long Tail Insurance lines	9.8		18.3		16.9		12.5		10.7		6.7		4.0		3.1		1.9		2.0

Discounting of Loss Reserves

At December 31, 2017, the loss reserves reflect a net loss reserve discount of $1.8 billion, including tabular and non-tabular calculations based upon the following assumptions:

Certain asbestos claims were discounted when allowed by the regulator and when payments are fixed and determinable, based on the investment yields of the companies and the payout pattern for the claims. At December 31, 2016, the discount for asbestos reserves was fully amortized.

The tabular workers’ compensation discount is calculated based on a 3.5 percent interest rate and the mortality rate used in the 2007 U.S. Life Table.

The non-tabular workers’ compensation discount is calculated separately for companies domiciled in New York and Pennsylvania, and follows the statutory regulations (prescribed or permitted) for each state. For New York companies, the discount is based on a 5 percent interest rate and the companies’ own payout patterns. For the Pennsylvania companies, the statute specifies discount factors for accident years 2001 and prior, which are based on a 6 percent interest rate and an industry payout pattern. For accident years 2002 and subsequent, the discount is based on the payout patterns and investment yields of the companies.

In 2013, our Pennsylvania regulator approved use of a consistent discount rate (U.S. Treasury rate plus a liquidity premium) to all of our workers’ compensation reserves in our Pennsylvania-domiciled companies, as well as our use of updated payout patterns specific to our primary and excess workers’ compensation portfolios.

The discount consists of $622 million of tabular discount for workers’ compensation and $1,222 million of non-tabular discount for workers’ compensation. During the years ended December 31, 2017, 2016 and 2015 the benefit/(charge) from changes in discount of ($187) million, $422 million and $71 million, respectively, were recorded as part of the policyholder benefits and losses incurred in the Consolidated Statement of Income.

The following table presents the components of the loss reserve discount discussed above:

	December 31, 2017						December 31, 2016
				Legacy						Legacy
				Portfolio -						Portfolio -
				General						General
		North America		Insurance Run-				North America		Insurance Run-
		Commercial		Off Insurance				Commercial		Off Insurance
(in millions)		Insurance		Lines		Total		Insurance		Lines		Total
U.S. Workers' compensation	$	2,465	$	918	$	3,383	$	2,583	$	987	$	3,570
Retroactive reinsurance		(1,539)		-		(1,539)		-		-		-
Total reserve discount^*	$	926	$	918	$	1,844	$	2,583	$	987	$	3,570

* Excludes $173 million and $181 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2017 and December 31, 2016, respectively.

The following table presents the net loss reserve discount benefit (charge):

Years Ended December 31,	2017						2016						2015
				Legacy						Legacy						Legacy
				Portfolio -						Portfolio -						Portfolio -
				General						General						General
		North		Insurance				North		Insurance				North		Insurance
		America		Run-Off				America		Run-Off				America		Run-Off
		Commercial		Insurance				Commercial		Insurance				Commercial		Insurance
(in millions)	Insurance			Lines		Total	Insurance			Lines		Total	Insurance			Lines		Total
Current accident year	$	114	$	-	$	114	$	177	$	-	$	177	$	182	$	-	$	182
Accretion and other
adjustments to prior
year discount		(186)		(44)		(230)		287		64		351		(262)		(74)		(336)
Effect of interest rate
changes		(46)		(25)		(71)		(58)		(48)		(106)		148		77		225
Net reserve discount
benefit (charge)		(118)		(69)		(187)		406		16		422		68		3		71
Amount transferred to run-off
insurance lines		-		-		-		-		-		-		(39)		39		-
Change in discount on loss
reserves ceded under
retroactive reinsurance		(1,539)		-		(1,539)		-		-		-		-		-		-
Net change in total
reserve discount^*		(1,657)		(69)		(1,726)		406		16		422		29		42		71
Comprised of:
U.S. Workers' compensation	$	(1,657)	$	(69)	$	(1,726)	$	406	$	23	$	429	$	29	$	46	$	75
Asbestos	$	-	$	-	$	-	$	-	$	(7)	$	(7)	$	-	$	(4)	$	(4)

* Excludes $8 million and $20 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2017 and 2016, respectively.

During 2017 and 2016, effective interest rates declined due to a decrease in the forward yield curve component of the discount rates reflecting a decline U.S. Treasury rates along the changes in payout pattern assumptions. This resulted in a decrease in the loss reserve discount by $71 million in 2017 and $106 million in 2016.

During 2015, the effective interest rate increased due to the increase in Treasury rates and credit spreads that resulted in an increase in the loss reserve discount by $225 million.

Future Policy Benefits

Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant has agreed to settle a general insurance claim in exchange for fixed payments over a fixed determinable period of time with a life contingency feature. In addition, reserves for contracts in loss recognition are adjusted to reflect the effect of unrealized gains on fixed maturity and equity securities available for sale, with related changes recognized through Other comprehensive income.

Future policy benefits also include certain guaranteed benefits of variable annuity products that are not considered embedded derivatives, primarily guaranteed minimum death benefits.

For additional information on guaranteed minimum death benefits see Note 14.

The liability for long-duration future policy benefits has been established including assumptions for interest rates which vary by year of issuance and product, and range from approximately 0.1 percent to 14 percent. Mortality and surrender rate assumptions are generally based on actual experience when the liability is established.

Policyholder Contract Deposits

The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited at rates ranging from 0.2 percent to 9.0 percent at December 31, 2017, less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues, because they are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenues.

In addition to liabilities for universal life, fixed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, policyholder contract deposits also include our liability for (a) certain guaranteed benefits and indexed features accounted for as embedded derivatives at fair value, (b) annuities issued in a structured settlement arrangement with no life contingency and (c) certain contracts we have elected to account for at fair value.

For additional information on guaranteed benefits accounted for as embedded derivatives see Note 14 herein.

For universal life policies with secondary guarantees, we recognize certain liabilities in addition to policyholder account balances. For universal life policies with secondary guarantees, as well as other universal life policies for which profits followed by losses are expected at contract inception, a liability is recognized based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contract, divided by (b) the present value of total expected assessments over the life of the contract. For universal life policies without secondary guarantees, for which profits followed by losses are first expected after contract inception, we establish a liability, in addition to policyholder account balances, so that expected future losses are recognized in proportion to the emergence of profits in the earlier (profitable) years. Universal life account balances as well as these additional liabilities related to universal life products are reported within Policyholder contract deposits in the Consolidated Balance Sheet. These additional liabilities are also adjusted to reflect the effect of unrealized gains or losses on fixed maturity and equity securities available for sale on accumulated assessments, with related changes recognized through Other comprehensive income.

Under a funding agreement-backed notes issuance program, an unaffiliated, non-consolidated statutory trust issues medium-term notes to investors, which are secured by GICs issued to the trust by one of our Life and Retirement companies through our Institutional Markets business.

The following table presents Policyholder contract deposits by product line:

At December 31,
(in millions)		2017		2016
Policyholder contract deposits:
Fixed Annuities	$	49,979	$	51,278
Group Retirement		40,422		39,578
Life Insurance		12,448		11,855
Variable and Index Annuities		19,690		16,934
Institutional Markets		8,077		7,286
Legacy Portfolio		4,986		5,285
Total Policyholder contract deposits	$	135,602	$	132,216

Other Policyholder Funds

Other policyholder funds include unearned revenue reserves (URR). URR consist of front-end loads on investment-oriented contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. URR for investment-oriented contracts are generally deferred and amortized, with interest, in relation to the incidence of estimated gross profits (EGPs) to be realized over the estimated lives of the contracts and are subject to the same adjustments due to changes in the assumptions underlying EGPs as DAC. Amortization of URR is recorded in Policy fees. Similar to Shadow DAC, URR related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity and equity securities available for sale on estimated gross profits, with related changes recognized through Other comprehensive income (shadow URR).

Other policyholder funds also include provisions for future dividends to participating policyholders, accrued in accordance with all applicable regulatory or contractual provisions. Participating life business represented approximately 1.9 percent of gross insurance in force at December 31, 2017 and 1.8 percent of gross domestic premiums and other considerations in 2017. The amount of annual dividends to be paid is approved locally by the boards of directors of the Life and Retirement companies. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations. The portions of current and prior net income and of current unrealized appreciation of investments that can inure to our benefit are restricted in some cases by the insurance contracts and by the local insurance regulations of the jurisdictions in which the policies are in force.

Certain products are subject to experience adjustments. These include group life and group medical products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as revenue with the unearned portions of the premiums recorded as liabilities in Other policyholder funds. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guidance.

VARIABLE LIFE AND ANNUITY CONTRACTS

12 Months Ended

Dec. 31, 2017

VARIABLE LIFE AND ANNUITY CONTRACTS

VARIABLE LIFE AND ANNUITY CONTRACTS

14. Variable Life and Annuity Contracts

We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder and the separate account meets additional accounting criteria to qualify for separate account treatment. The assets supporting the variable portion of variable annuity and variable universal life contracts that qualify for separate account treatment are carried at fair value and reported as Separate account assets, with an equivalent summary total reported as Separate account liabilities.

Policy values for variable products and investment contracts are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units in the separate accounts, plus any liabilities for guaranteed minimum death benefits or guaranteed minimum withdrawal benefits included in Future policy benefits or Policyholder contract deposits, respectively.

Amounts assessed against the contract holders for mortality, administrative and other services are included in revenue. Net investment income, net investment gains and losses, changes in fair value of assets, and policyholder account deposits and withdrawals related to separate accounts are excluded from the Consolidated Statements of Income, Comprehensive Income (Loss) and Cash Flows.

Variable annuity contracts may include certain contractually guaranteed benefits to the contract holder. These guaranteed features include guaranteed minimum death benefits (GMDB) that are payable in the event of death, and living benefits that are payable in the event of annuitization, or, in other instances, at specified dates during the accumulation period. Living benefits primarily include guaranteed minimum withdrawal benefits (GMWB). A variable annuity contract may include more than one type of guaranteed benefit feature; for example, it may have both a GMDB and a GMWB. However, a policyholder can only receive payout from one guaranteed feature on a contract containing a death benefit and a living benefit, i.e. the features are mutually exclusive (except a surviving spouse who has a rider to potentially collect both a GMDB upon their spouse’s death and a GMWB during their lifetime). A policyholder cannot purchase more than one living benefit on one contract. The net amount at risk for each feature is calculated irrespective of the existence of other features; as a result, the net amount at risk for each feature is not additive to that of other features.

Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows:

At December 31,
(in millions)		2017		2016
Equity funds	$	48,594	$	42,266
Bond funds		7,793		7,798
Balanced funds		27,656		25,365
Money market funds		730		840
Total	$	84,773	$	76,269

GMDB

Depending on the contract, the GMDB feature may provide a death benefit of either (a) total deposits made to the contract less any partial withdrawals plus a minimum return (and in rare instances, no minimum return) or (b) the highest contract value attained, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary. GMDB is our most widely offered benefit.

The liability for GMDB, which is recorded in Future policy benefits, represents the expected value of benefits in excess of the projected account value, with the excess recognized ratably over the accumulation period based on total expected assessments, through Policyholder benefits and losses incurred. The net amount at risk for GMDB represents the amount of benefits in excess of account value if death claims were filed on all contracts on the balance sheet date.

The following table presents details concerning our GMDB exposures, by benefit type:

At December 31,	2017				2016
		Net Deposits				Net Deposits
		Plus a Minimum		Highest Contract		Plus a Minimum		Highest Contract
(dollars in billions)		Return		Value Attained		Return		Value Attained
Account value	$	99	$	17	$	91	$	16
Net amount at risk		1		-		1		1
Average attained age of contract holders by product		63		68		63		68
Range of guaranteed minimum return rates		0%-4.5%				0%-4.5%

The following summarizes GMDB liability related to variable annuity contracts, excluding assumed reinsurance:

Years Ended December 31,
(in millions)		2017		2016		2015
Balance, beginning of year	$	402	$	491	$	420
Reserve increase (decrease)		(14)		(32)		127
Benefits paid		(42)		(57)		(56)
Changes in reserves related to unrealized appreciation of investments		6		-		-
Balance, end of year	$	352	$	402	$	491

Assumptions used to determine the GMDB liability include interest rates, which vary by year of issuance and products; mortality rates, which are based upon actual experience modified to allow for variations in policy form; lapse rates, which are based upon actual experience modified to allow for variations in policy form; investment returns, using assumptions from a randomly generated model; and asset growth assumptions, which include a reversion to the mean methodology, similar to that applied for DAC.

We regularly evaluate estimates used to determine the GMDB liability and adjust the additional liability balance, with a related charge or credit to Policyholder benefits and losses incurred, if actual experience or other evidence suggests that earlier assumptions should be revised.

GMWB

Certain of our variable annuity contracts contain optional GMWB benefits and, to a lesser extent, guaranteed minimum accumulation benefits, which are not currently offered. With a GMWB, the contract holder can monetize the excess of the guaranteed amount over the account value of the contract only through a series of withdrawals that do not exceed a specific percentage per year of the guaranteed amount. If, after the series of withdrawals, the account value is exhausted, the contract holder will receive a series of annuity payments equal to the remaining guaranteed amount, and, for lifetime GMWB products, the annuity payments continue as long as the covered person(s) is living.

The liabilities for GMWB, which are recorded in Policyholder contract deposits, are accounted for as embedded derivatives measured at fair value, with changes in the fair value of the liabilities recorded in Other net realized capital gains (losses). The fair value of these embedded derivatives was a net liability of $2.0 billion and $1.8 billion at December 31, 2017 and 2016, respectively.

For discussion of the fair value measurement of guaranteed benefits that are accounted for as embedded derivatives see Note 5.

We had account values subject to GMWB that totaled $45 billion and $41 billion at December 31, 2017 and 2016, respectively. The net amount at risk for GMWB represents the present value of minimum guaranteed withdrawal payments, in accordance with contract terms, in excess of account value, assuming no lapses. The net amount at risk related to the GMWB guarantees was $450 million and $834 million at December 31, 2017 and 2016, respectively. We use derivative instruments and other financial instruments to mitigate a portion of our exposure that arises from GMWB benefits.

DEBT

12 Months Ended

Dec. 31, 2017

DEBT

DEBT

15. Debt

Our long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts, hedge accounting valuation adjustments and fair value adjustments, when applicable.

The following table lists our total debt outstanding at December 31, 2017 and 2016. The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2017, including fixed and variable-rates:

				Balance at		Balance at
At December 31, 2017	Range of	Maturity		December 31,		December 31,
(in millions)	Interest Rate(s)	Date(s)			2017		2016
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	0% - 8.13%		2018 - 2097	$	20,339	$	19,432
Junior subordinated debt	4.88% - 8.63%		2037 - 2058		841		843
AIG Japan Holdings Kabushiki Kaisha	0.28% - 0.44%		2020 - 2021		334		330
AIGLH notes and bonds payable	6.63% - 7.50%		2025 - 2029		281		281
AIGLH junior subordinated debt	7.57% - 8.50%		2030 - 2046		361		361
Total AIG general borrowings					22,156		21,247
AIG borrowings supported by assets:^(a)
MIP notes payable	2.72% - 2.95%		2018		356		1,099
Series AIGFP matched notes and bonds payable	1.21% - 1.30%		2046 - 2047		21		32
GIAs, at fair value	0.50% - 7.62%		2018 - 2053		2,707		2,934
Notes and bonds payable, at fair value	0.50% - 9.97%		2018 - 2040		181		494
Total AIG borrowings supported by assets					3,265		4,559
Total debt issued or guaranteed by AIG					25,421		25,806
Debt not guaranteed by AIG:
Other subsidiaries notes, bonds, loans and
mortgages payable	1.40% - 1.57%		2018		190		735
Debt of consolidated investments^(b)	0% - 9.31%		2018 - 2065		6,029		4,371
Total debt not guaranteed by AIG					6,219		5,106
Total long term debt				$	31,640	$	30,912

(a) AIG Parent guarantees all such debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $2.0 billion and $2.2 billion at December 31, 2017 and December 31, 2016, 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.

(b) At December 31, 2017, includes debt of consolidated investment vehicles related to real estate investments of $2.5 billion, affordable housing partnership investments of $1.8 billion and other securitization vehicles of $1.7 billion. At December 31, 2016, includes debt of consolidated investment vehicles related to real estate investments of $1.9 billion, affordable housing partnership investments of $1.7 billion and other securitization vehicles of $771 million.

The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable), excluding $6.0 billion in borrowings of debt of consolidated investments:

December 31, 2017			Year Ending
(in millions)		Total		2018		2019		2020		2021		2022		Thereafter
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	$	20,339	$	1,107	$	998	$	1,343	$	1,496	$	1,507	$	13,888
Junior subordinated debt		841		-		-		-		-		-		841
AIG Japan Holdings Kabushiki Kaisha		334		-		-		115		219		-		-
AIGLH notes and bonds payable		281		-		-		-		-		-		281
AIGLH junior subordinated debt		361		-		-		-		-		-		361
Total AIG general borrowings		22,156		1,107		998		1,458		1,715		1,507		15,371
AIG borrowings supported by assets:
MIP notes payable		356		356		-		-		-		-		-
Series AIGFP matched notes and
bonds payable		21		-		-		-		-		-		21
GIAs, at fair value		2,707		506		265		30		202		47		1,657
Notes and bonds payable, at fair value		181		126		-		-		-		-		55
Total AIG borrowings supported by assets		3,265		988		265		30		202		47		1,733
Total debt issued or guaranteed by AIG		25,421		2,095		1,263		1,488		1,917		1,554		17,104
Other subsidiaries notes, bonds, loans
and mortgages payable		190		190		-		-		-		-		-
Total	$	25,611	$	2,285	$	1,263	$	1,488	$	1,917	$	1,554	$	17,104

Uncollateralized and collateralized notes, bonds, loans and mortgages payable consisted of the following:

		Uncollateralized		Collateralized
At December 31, 2017		Notes/Bonds/Loans		Loans and
(in millions)		Payable		Mortgages Payable		Total
AIG general borrowings	$	334	$	-	$	334
Other subsidiaries notes, bonds, loans and mortgages payable^*		-		190		190
Total	$	334	$	190	$	524

* AIG does not guarantee any of these borrowings.

AIGLH Junior Subordinated Debentures (Formerly, Liabilities Connected To Trust Preferred Stock)

In connection with our acquisition of AIG Life Holdings, Inc. (AIGLH) in 2001, we entered into arrangements with AIGLH with respect to outstanding AIGLH capital securities. In 1996, AIGLH issued capital securities through a trust to institutional investors and funded the trust with AIGLH junior subordinated debentures issued to the trust with the same terms as the capital securities.

On July 11, 2013, the AIGLH junior subordinated debentures were distributed to holders of the capital securities, the capital securities were cancelled and the trusts were dissolved. At December 31, 2017, the junior subordinated debentures outstanding consisted of $113 million of 8.5 percent junior subordinated debentures due July 2030, $211 million of 8.125 percent junior subordinated debentures due March 2046 and $37 million of 7.57 percent junior subordinated debentures due December 2045, each guaranteed by AIG Parent.

Credit Facilities

We maintain a committed, revolving syndicated credit facility (the Facility) as a potential source of liquidity for general corporate purposes. The Facility provides for aggregate commitments by the bank syndicate to provide unsecured revolving loans and/or standby letters of credit of up to $4.5 billion without any limits on the type of borrowings and is scheduled to expire in June 2022.

At December 31, 2017				Available		Effective
(in millions)		Size		Amount	Expiration	Date
Syndicated Credit Facility	$	4,500	$	4,500	June 2022	6/27/2017

CONTINGENCIES, COMMITMENTS AND GUARANTEES

12 Months Ended

Dec. 31, 2017

CONTINGENCIES, COMMITMENTS AND GUARANTEES

CONTINGENCIES, COMMITMENTS AND GUARANTEES

16. 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 regulatory and government investigations and actions, and litigation and other forms of dispute resolution in a large number of proceedings pending in various domestic and foreign jurisdictions. Certain of these matters involve potentially significant risk of loss due to potential for significant jury awards and settlements, punitive damages or other penalties. Many of these matters are also highly complex and seek recovery on behalf of a class or similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters. In our insurance and reinsurance operations, litigation and arbitration concerning the scope of coverage under insurance and reinsurance contracts, and litigation and arbitration in which our subsidiaries defend or indemnify their insureds under insurance contracts, are generally considered in the establishment of our loss reserves. Separate and apart from the foregoing matters involving insurance and reinsurance coverage, AIG, our subsidiaries and their respective officers and directors are subject to a variety of additional types of legal proceedings brought by holders of AIG securities, customers, employees and others, alleging, among other things, breach of contractual or fiduciary duties, bad faith and violations of federal and state statutes and regulations. With respect to these other categories of matters not arising out of claims for insurance or reinsurance coverage, we establish reserves for loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In many instances, we are unable to determine whether a loss is probable or to reasonably estimate the amount of such a loss and, therefore, the potential future losses arising from legal proceedings may exceed the amount of liabilities that we have recorded in our financial statements covering these matters. While such potential future charges could be material, based on information currently known to management, management does not believe, other than may be discussed below, that any such charges are likely to have a material adverse effect on our financial position or results of operation.

Additionally, from time to time, various regulatory and governmental agencies review the transactions and practices of AIG and our subsidiaries in connection with industry-wide and other inquiries into, among other matters, the 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 such 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).

As noted below, all of the actions relating to the Subprime Exposure Issues have been resolved.

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 (SDNY) 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.

In 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 paid the settlement amount of $960 million. 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 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, and the remaining nine have now been settled.

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 May 9, 2017, the Court of Appeals for the Federal Circuit: (i) vacated the Court of Federal Claims judgment on the Credit Agreement Shareholder Class and remanded with instructions for dismissal of that class, and (ii) affirmed the finding of no liability with respect to the Reverse Stock Split Class.

On October 6, 2017, SICO filed a petition for writ of certiorari with the United States Supreme Court.

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.

Tax Litigation.

We are party to pending tax litigation before the Southern District of New York. For additional information see Note 23 to the Consolidated Financial Statements.

Commitments

We occupy leased space in many locations under various long-term leases and have entered into various leases covering the long-term use of data processing equipment.

The following table presents the future minimum lease payments under operating leases at December 31, 2017:

(in millions)
2018	$	243
2019		179
2020		137
2021		95
2022		59
Remaining years after 2022		120
Total	$	833

Rent expense was $269 million, $331 million and $327 million for the years ended December 31, 2017, 2016 and 2015, respectively.

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 December 31, 2017.

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 December 31, 2017 was $139 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.

AIG Parent files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service (IRS). AIG Parent and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated federal income taxes. Under an Amended and Restated Tax Payment Allocation Agreement dated June 6, 2011 between AIG Parent and one of its Bermuda-domiciled insurance subsidiaries, AIG Life of Bermuda, Ltd. (AIGB), AIG Parent has agreed to indemnify AIGB for any tax liability (including interest and penalties) resulting from adjustments made by the IRS or other appropriate authorities to taxable income, special deductions or credits in connection with investments made by AIGB in certain affiliated entities.

Asset Dispositions

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 Consolidated Balance Sheets.

Other

For additional discussion on commitments and guarantees associated with VIEs see Note 10 to the Consolidated Financial Statements.
For additional disclosures about derivatives see Note 11 to the Consolidated Financial Statements.
For additional disclosures about guarantees of outstanding debt see Note 25 to the Consolidated Financial Statements.

EQUITY

12 Months Ended

Dec. 31, 2017

EQUITY

EQUITY

17. Equity

Shares Outstanding

The following table presents a rollforward of outstanding shares:

	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Year Ended December 31, 2015
Shares, beginning of year	1,906,671,492	(530,744,521)	1,375,926,971
Shares issued	-	371,806	371,806
Shares repurchased	-	(182,382,160)	(182,382,160)
Shares, end of year	1,906,671,492	(712,754,875)	1,193,916,617
Year Ended December 31, 2016
Shares, beginning of year	1,906,671,492	(712,754,875)	1,193,916,617
Shares issued	-	2,069,110	2,069,110
Shares repurchased	-	(200,649,886)	(200,649,886)
Shares, end of year	1,906,671,492	(911,335,651)	995,335,841
Year Ended December 31, 2017
Shares, beginning of year	1,906,671,492	(911,335,651)	995,335,841
Shares issued	-	3,386,462	3,386,462
Shares repurchased	-	(99,677,646)	(99,677,646)
Shares, end of year	1,906,671,492	(1,007,626,835)	899,044,657

Dividends

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 on 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.

The following table presents record date, payment date and dividends paid per share on AIG Common Stock:

			Dividends Paid
Record Date	Payment Date		Per Share
December 8, 2017	December 22, 2017	$	0.32
September 15, 2017	September 29, 2017		0.32
June 14, 2017	June 28, 2017		0.32
March 15, 2017	March 29, 2017		0.32

December 8, 2016	December 22, 2016		0.32
September 15, 2016	September 29, 2016		0.32
June 13, 2016	June 27, 2016		0.32
March 14, 2016	March 28, 2016		0.32

December 7, 2015	December 21, 2015		0.28
September 14, 2015	September 28, 2015		0.28
June 11, 2015	June 25, 2015		0.125
March 12, 2015	March 26, 2015		0.125

Repurchase of AIG Common Stock

The following table presents repurchases of AIG Common Stock and warrants to purchase shares of AIG Common Stock:

Years Ended December 31,
(in millions)		2017		2016		2015	^(a)
Aggregate repurchases of common stock	$	6,275	$	11,460	$	10,691
Total number of common shares repurchased		100		201		182
Aggregate repurchases of warrants	$	3	$	309	$	-
Total number of warrants repurchased^(b)		-		17		-

(a) The total number of shares of AIG Common Stock repurchased in 2015 includes (but the aggregate purchase price does not include) approximately 3.5 million shares of AIG Common Stock received in January 2015 upon the settlement of an accelerated stock repurchase (ASR) agreement executed in the fourth quarter of 2014.

(b) In 2017, we repurchased 185,000 warrants to purchase shares of AIG Common Stock.

Our Board of Directors has authorized the repurchase of shares of AIG Common Stock and warrants to purchase shares of AIG Common Stock through a series of actions. On May 3, 2017, our Board of Directors authorized an additional increase of $2.5 billion to its previous share repurchase authorization. As of December 31, 2017, approximately $2.3 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.

The timing of any future repurchases will depend on market conditions, our business and strategic plans, 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			Unrealized
	Maturity Securities			Appreciation		Foreign		Retirement
	on Which Other-Than-			(Depreciation)		Currency		Plan
	Temporary Credit			of All Other		Translation		Liabilities
(in millions)	Impairments Were Taken			Investments		Adjustments		Adjustment		Total
Balance, January 1, 2015, net of tax	$	1,043	$	12,327	$	(1,784)	$	(969)	$	10,617
Change in unrealized
depreciation of investments		(488)		(10,519)		-		-		(11,007)
Change in deferred policy
acquisition costs adjustment and other		(146)		1,265		-		-		1,119
Change in future policy benefits		92		1,112		-		-		1,204
Change in foreign currency
translation adjustments		-		-		(1,129)		-		(1,129)
Change in net actuarial gain		-		-		-		413		413
Change in prior service credit		-		-		-		(239)		(239)
Change in deferred tax asset (liability)		195		1,380		29		(51)		1,553
Total other comprehensive income (loss)		(347)		(6,762)		(1,100)		123		(8,086)
Noncontrolling interests		-		(1)		(5)		-		(6)
Balance, December 31, 2015, net of tax	$	696	$	5,566	$	(2,879)	$	(846)	$	2,537
Change in unrealized
appreciation (depreciation) of investments		(326)		931		-		-		605
Change in deferred policy
acquisition costs adjustment and other		(19)		286		-		-		267
Change in future policy benefits		-		(676)		-		-		(676)
Change in foreign currency
translation adjustments		-		-		93		-		93
Change in net actuarial loss		-		-		-		(151)		(151)
Change in prior service credit		-		-		-		(22)		(22)
Change in deferred tax asset		75		298		157		47		577
Total other comprehensive income (loss)		(270)		839		250		(126)		693
Noncontrolling interests		-		-		-		-		-
Balance, December 31, 2016, net of tax	$	426	$	6,405	$	(2,629)	$	(972)	$	3,230
Change in unrealized
appreciation of investments		394		3,668		-		-		4,062
Change in deferred policy
acquisition costs adjustment and other		23		(1,282)		-		-		(1,259)
Change in future policy benefits		-		(1,102)		-		-		(1,102)
Change in foreign currency
translation adjustments		-		-		547		-		547
Change in net actuarial gain		-		-		-		110		110
Change in prior service cost		-		-		-		9		9
Change in deferred tax asset (liability)		(50)		4		(8)		(78)		(132)
Total other comprehensive income		367		1,288		539		41		2,235
Noncontrolling interests		-		-		-		-		-
Balance, December 31, 2017, net of tax	$	793	$	7,693	$	(2,090)	$	(931)	$	5,465

The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2017, 2016 and 2015:

		Unrealized Appreciation
		(Depreciation) of Fixed		Unrealized
		Maturity Securities		Appreciation		Foreign		Retirement
		on Which Other-		(Depreciation)		Currency		Plan
		Than-Temporary Credit		of All Other		Translation		Liabilities
(in millions)		Impairments Were Taken		Investments		Adjustments		Adjustment		Total
December 31, 2015
Unrealized change arising during period	$	(471)	$	(7,068)	$	(1,129)	$	285	$	(8,383)
Less: Reclassification adjustments
included in net income		71		1,074		-		111		1,256
Total other comprehensive income (loss),
before income tax expense (benefit)		(542)		(8,142)		(1,129)		174		(9,639)
Less: Income tax expense (benefit)		(195)		(1,380)		(29)		51		(1,553)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(347)	$	(6,762)	$	(1,100)	$	123	$	(8,086)

December 31, 2016
Unrealized change arising during period	$	(222)	$	1,769	$	93	$	(344)	$	1,296
Less: Reclassification adjustments
included in net income		123		1,228		-		(171)		1,180
Total other comprehensive income (loss),
before income tax expense (benefit)		(345)		541		93		(173)		116
Less: Income tax benefit		(75)		(298)		(157)		(47)		(577)
Total other comprehensive income (loss),
net of income tax benefit	$	(270)	$	839	$	250	$	(126)	$	693

December 31, 2017
Unrealized change arising during period	$	467	$	2,052	$	547	$	24	$	3,090
Less: Reclassification adjustments
included in net income		50		768		-		(95)		723
Total other comprehensive income,
before income tax expense		417		1,284		547		119		2,367
Less: Income tax expense (benefit)		50		(4)		8		78		132
Total other comprehensive income,
net of income tax expense (benefit)	$	367	$	1,288	$	539	$	41	$	2,235

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 Consolidated Statements of Income:

	Amount Reclassified
	from Accumulated Other
Years Ended December 31,	Comprehensive Income						Affected Line Item in the
(in millions)	2017			2016		2015	Consolidated Statements of Income
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments	$	50	$	123	$	71	Other realized capital gains
Total		50		123		71
Unrealized appreciation (depreciation) of all other investments
Investments		463		935		1,054	Other realized capital gains
Deferred acquisition costs adjustment		305		293		3	Amortization of deferred policy acquisition costs
Future policy benefits		-		-		17	Policyholder benefits and losses incurred
Total		768		1,228		1,074
Change in retirement plan liabilities adjustment
Prior-service credit		5		15		214	*
Actuarial losses		(100)		(186)		(103)	*
Total		(95)		(171)		111
Total reclassifications for the period	$	723	$	1,180	$	1,256

* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 21 to the Consolidated Financial Statements.

EARNINGS PER SHARE (EPS)

12 Months Ended

Dec. 31, 2017

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

18. 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:

Years Ended December 31,
(dollars in millions, except per share data)		2017		2016		2015
Numerator for EPS:
Income (loss) from continuing operations	$	(6,060)	$	(259)	$	2,222
Less: Net income from continuing operations attributable to noncontrolling interests		28		500		26
Income (loss) attributable to AIG common shareholders from continuing operations		(6,088)		(759)		2,196
Income (loss) from discontinued operations, net of income tax expense		4		(90)		-
Net income (loss) attributable to AIG common shareholders	$	(6,084)	$	(849)	$	2,196
Denominator for EPS:
Weighted average shares outstanding — basic		930,561,286		1,091,085,131		1,299,825,350
Dilutive shares		-		-		34,639,533
Weighted average shares outstanding — diluted^(a)(b)		930,561,286		1,091,085,131		1,334,464,883
Income (loss) per common share attributable to AIG:
Basic:
Income (loss) from continuing operations	$	(6.54)	$	(0.70)	$	1.69
Income from discontinued operations	$	-	$	(0.08)	$	-
Income (loss) attributable to AIG	$	(6.54)	$	(0.78)	$	1.69
Diluted:
Income (loss) from continuing operations	$	(6.54)	$	(0.70)	$	1.65
Income from discontinued operations	$	-	$	(0.08)	$	-
Income (loss) attributable to AIG	$	(6.54)	$	(0.78)	$	1.65

(a) Shares in the diluted EPS calculation represent basic shares for 2017 and 2016 due to the net losses in those periods. The shares excluded from the calculation were 22,412,682 shares and 30,326,772 shares for the years ended December 31, 2017 and 2016, respectively.

(b) Dilutive shares included 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 were 1.7 million, 0.2 million and 0.2 million for the years ended December 31, 2017, 2016 and 2015, respectively, because the effect of including those shares in the calculation would have been anti-dilutive.

STATUTORY FINANCIAL DATA AND RESTRICTIONS

12 Months Ended

Dec. 31, 2017

STATUTORY FINANCIAL DATA AND RESTRICTIONS

STATUTORY FINANCIAL DATA AND RESTRICTIONS

19. Statutory Financial Data and Restrictions

The following table presents statutory net income (loss) and capital and surplus for our General Insurance companies and our Life and Retirement companies in accordance with statutory accounting practices:

(in millions)		2017		2016		2015
Years Ended December 31,
Statutory net income (loss)^(a)(b)(c):
General Insurance companies:
Domestic^(c)	$	(622)	$	260	$	1,444
Foreign		(333)		(1,326)		594
Total General Insurance companies	$	(955)	$	(1,066)	$	2,038
Life and Retirement companies:
Domestic	$	932	$	2,252	$	2,200
Foreign		21		47		(5)
Total Life and Retirement companies	$	953	$	2,299	$	2,195
At December 31,
Statutory capital and surplus^(a)(b)(c):
General Insurance companies:
Domestic^(c)	$	21,514	$	21,665
Foreign		11,695		12,587
Total General Insurance companies	$	33,209	$	34,252
Life and Retirement companies:
Domestic	$	11,872	$	12,314
Foreign		446		490
Total Life and Retirement companies	$	12,318	$	12,804
Aggregate minimum required statutory capital and surplus:
General Insurance companies:
Domestic	$	5,307	$	5,183
Foreign		6,166		7,257
Total General Insurance companies	$	11,473	$	12,440
Life and Retirement companies:
Domestic	$	3,148	$	3,088
Foreign		121		234
Total Life and Retirement companies	$	3,269	$	3,322

(a) Excludes discontinued operations and other divested businesses. Statutory capital and surplus and net income (loss) with respect to foreign operations are as of November 30.

(b) In aggregate, the 2016 General Insurance companies and Life and Retirement companies statutory net income increased by $479 million and the 2016 General Insurance companies and Life and Retirement companies statutory capital and surplus decreased by $305 million, compared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2016, due to finalization of statutory filings.

(c) General Insurance companies recognized $200 million of capital contributions from AIG Parent in their statutory financial statements as of December 31, 2016 related to the reserve strengthening in the fourth quarter. This capital contribution was received in February 2017.

Our insurance subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by domestic and foreign insurance regulatory authorities. The principal differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP for domestic companies are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, investment impairments are determined in accordance with statutory accounting practices, assets and liabilities are presented net of reinsurance, policyholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted.

For domestic insurance subsidiaries, aggregate minimum required statutory capital and surplus is based on the greater of the RBC level that would trigger regulatory action or minimum requirements per state insurance regulation. Capital and surplus requirements of our foreign subsidiaries differ from those prescribed in the U.S., and can vary significantly by jurisdiction. At both December 31, 2017 and 2016, all domestic and foreign insurance subsidiaries individually exceeded the minimum required statutory capital and surplus requirements and all domestic insurance subsidiaries individually exceeded RBC minimum required levels.

At December 31, 2017 and 2016, our domestic insurance subsidiaries used the following permitted practices that resulted in reported statutory surplus or risk-based capital that is significantly different from the statutory surplus or risk based capital that would have been reported had NAIC statutory accounting practices or the prescribed regulatory accounting practices of their respective state regulator been followed in all respects:

In 2015, a domestic life insurance subsidiary domiciled in Texas adopted a permitted statutory accounting practice to report derivatives used to hedge interest rate risk on product-related embedded derivatives at amortized cost instead of fair value. In 2017, the permitted practice was expanded to include additional derivative instruments utilized for the same purpose and to also include an additional domestic life insurance subsidiary domiciled in Texas. This permitted practice resulted in an increase in the statutory surplus of our subsidiaries of $407 million and $645 million at December 31, 2017 and 2016, respectively.
In 2016, certain domestic property and casualty subsidiaries domiciled in New York, Pennsylvania and Delaware applied a permitted practice to present the inception date effects of the 2017 adverse loss development cover in their 2016 statutory-basis financial statements. This permitted practice resulted in an increase in the subsidiaries’ aggregate surplus as of December 31, 2016 of $1.1 billion.
As described in Note 13, our domestic property and casualty insurance subsidiaries domiciled in New York, Pennsylvania and Delaware discount non-tabular workers’ compensation reserves based on applicable prescribed or approved regulations, or in the case of our Delaware subsidiary, based on a permitted practice. This practice did not have a material impact on our statutory surplus, statutory net income (loss) or risk-based capital.

The NAIC Model Regulation “Valuation of Life Insurance Policies” (Regulation XXX) requires U.S. life insurers to establish additional statutory reserves for term life insurance policies with long-term premium guarantees and universal life policies with secondary guarantees (ULSGs). In addition, NAIC Actuarial Guideline 38 (Guideline AXXX) clarifies the application of Regulation XXX as to these guarantees, including certain ULSGs.

Domestic life insurance subsidiaries manage the capital impact of statutory reserve requirements under Regulation XXX and Guideline AXXX through unaffiliated and affiliated reinsurance transactions. The affiliated life insurers providing reinsurance capacity for such transactions are fully licensed insurance companies and are not formed under captive insurance laws. One of these affiliated reinsurance arrangements, under which certain Regulation XXX and Guideline AXXX reserves related to new and in-force business were ceded to an affiliated U.S. life insurer, was recaptured effective December 31, 2016 and these reserves were ceded to an unaffiliated reinsurer.

Under the other intercompany reinsurance arrangement, certain Regulation XXX and Guideline AXXX reserves related to a closed block of in-force business are ceded to an affiliated off-shore life insurer, which is licensed as a class E insurer under Bermuda law. Bermuda law permits the off-shore life insurer to record an asset that effectively reduces the statutory reserves for the assumed reinsurance to the level that would be required under U.S. GAAP. Letters of credit are used to support the credit for reinsurance provided by the affiliated off-shore life insurer.

For additional information regarding these letters of credit see Note 8.

Subsidiary Dividend Restrictions

Payments of dividends to us by our insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities. With respect to our domestic insurance subsidiaries, the payment of any dividend requires formal notice to the insurance department in which the particular insurance subsidiary is domiciled. For example, unless permitted by the Superintendent of Financial Services, property casualty companies domiciled in New York generally may not pay dividends to shareholders that, in any 12-month period, exceed the lesser of 10 percent of such company’s statutory policyholders’ surplus or 100 percent of its “adjusted net investment income,” for the previous year, as defined. Generally, less severe restrictions applicable to both property casualty and life insurance companies exist in most of the other states in which our insurance subsidiaries are domiciled. Under the laws of many states, an insurer may pay a dividend without prior approval of the insurance regulator when the amount of the dividend is below certain regulatory thresholds. Other foreign jurisdictions may restrict the ability of our foreign insurance subsidiaries to pay dividends. Various other regulatory restrictions also limit cash loans and advances to us by our subsidiaries.

Largely as a result of these restrictions, approximately $44.8 billion of the statutory capital and surplus of our consolidated insurance subsidiaries were restricted from transfer to AIG Parent without prior approval of state insurance regulators at December 31, 2017.

To our knowledge, no AIG insurance company is currently on any regulatory or similar “watch list” with regard to solvency.

Parent Company Dividend Restrictions

At December 31, 2017, our ability to pay dividends is not subject to any significant contractual restrictions, but remains subject to regulatory restrictions.

For additional information about our ability to pay dividends to our shareholders see Note 17 herein.

SHARE-BASED AND OTHER COMPENSATION PLANS

12 Months Ended

Dec. 31, 2017

SHARE-BASED AND OTHER COMPENSATION PLANS

SHARE-BASED AND OTHER COMPENSATION PLANS

20. Share-Based Compensation Plans

The following table presents our total share-based compensation expense:

Years Ended December 31,
(in millions)		2017		2016		2015
Share-based compensation expense - pre-tax^*	$	353	$	237	$	365
Share-based compensation expense - after tax		229		154		237

* We recognized $141 million, $105 million and $147 million for immediately vested stock-settled awards issued to retirement eligible employees in 2017, 2016 and 2015, respectively. We also recognized $40 million of excess tax benefits due to share settlements occurring in 2017.

Employee Plans

The Company sponsors several Long Term Incentive (LTI) programs under the AIG 2013 Long Term Incentive Plan and its successor plan, the AIG Long Term Incentive Plan (each as applicable, the LTIP), which are governed by the AIG 2013 Omnibus Incentive Plan (Omnibus Plan). The Omnibus Plan replaced the AIG 2010 Stock Incentive Plan (2010 Plan) as of May 15, 2013 but does not affect the terms and conditions of any award issued under the 2010 Plan. The Omnibus Plan is currently the only plan under which share-settled awards can be made. Our share-settled awards are settled with previously acquired shares held in AIG’s treasury.

AIG 2013 Omnibus Incentive Plan

The Omnibus Plan was adopted at the 2013 Annual Meeting of Shareholders and provides for the grants of share-based awards to our employees and non-employee directors. The total number of shares that may be granted under the Omnibus Plan (the reserve) is the sum of 1) 45 million shares of AIG Common Stock, plus 2) the number of authorized shares that remained available for issuance under the 2010 Plan when the Omnibus Plan became effective, plus 3) the number of shares of AIG Common Stock relating to outstanding awards under the 2010 Plan at the time the Omnibus Plan became effective that subsequently are forfeited, expired, terminated or otherwise lapse or are settled in cash. Each share-based unit granted under the Omnibus Plan reduces the number of shares available for future grants by one share. However, shares with respect to awards that are forfeited, expired or settled for cash, and shares withheld for taxes on awards (other than options and stock appreciation rights awards) are returned to the reserve.

During 2017, performance share units (PSUs), restricted stock units (RSUs), stock options and deferred stock units (DSUs) (collectively, units) were granted under the Omnibus Plan and 42,780,716 shares are available for future grants as of December 31, 2017. Units are issued to employees as part of our long-term incentive program, generally in March of any given year, and are also issued for off-cycle grants, which are made from time to time during the year generally as sign-on awards to new hires or as a result of a change in employee status.

AIG 2010 Stock Incentive Plan

The 2010 Plan was adopted at the 2010 Annual Meeting of Shareholders. The total number of shares of AIG Common Stock that could be granted under the 2010 Plan was 60 million. During 2013, we granted PSUs, DSUs and RSUs under the 2010 Plan. Each PSU, DSU and RSU awarded reduced the number of shares available for future grants by one share. Subsequent to the adoption of the Omnibus Plan in May 2013, no additional grants were made under the 2010 Plan.

AIG Long Term Incentive Plan

LTI Awards

The LTIP provides for an annual award to certain employees, including our senior executive officers and other highly compensated employees. In 2017, each award recipient was granted PSUs and/or RSUs, and in 2013 through 2016, each award recipient was granted PSUs.

The number of PSUs issued on the grant date (the target) provides the opportunity for the LTIP participant to receive shares of AIG Common Stock based on AIG achieving specified performance goals at the end of a three-year performance period. These performance goals are pre-established by AIG’s Compensation and Management Resources Committee (CMRC) for each annual grant and may differ from year to year. The actual number of PSUs earned can vary from zero to 200 percent of the target for the 2017 awards, or zero to 150 percent of the target for the 2013 through 2016 awards, depending on AIG’s performance relative to a specified peer group. RSUs are earned based on continued service by the participant. For the 2017 awards, vesting occurs on January 1 of the year immediately following the end of the three-year performance period. For awards granted prior to 2017, vesting occurs in three equal installments beginning on January 1 of the year immediately following the end of a performance period and January 1 of each of the next two years. Recipients must be employed at each vesting date to be entitled to share delivery, except upon the occurrence of an accelerated vesting event, such as an involuntary termination without cause, disability, retirement eligibility or death during the vesting period.

LTI awards granted in 2015 and thereafter accrue dividend equivalent units (DEUs) in the form of additional PSUs and/or RSUs whenever a cash dividend is declared on shares of AIG Common Stock; the DEUs are subject to the same vesting terms and conditions as the underlying unit.

Unit Valuation

The value of each award is based on the nature of the performance goals and the price per unit is fixed as of the grant date. PSUs granted in 2017 and 2016 are measured based on AIG’s relative total shareholder return (TSR). PSUs granted in 2015 and 2014 are measured based on AIG’s relative TSR and credit default swap (CDS) spread, weighted 75 percent and 25 percent, respectively. PSUs granted in 2013 are measured based on AIG’s relative TSR and relative growth in tangible book value per common share (TBVPS) (excluding accumulated other comprehensive income) weighted 50 percent each.

The fair value of RSUs as well as PSUs earned based on AIG’s CDS spreads and relative TBVPS was based on the closing price of AIG Common Stock on the grant date. However, PSUs granted in 2014 and 2013 that vest based on these goals were discounted by the present value of estimated dividends to be paid during the respective vesting periods as these awards do not accrue dividends or DEUs. The fair value of PSUs to be earned based on AIG’s relative TSR was determined on the grant date using a Monte Carlo simulation.

The following table presents the assumptions used to estimate the fair value of PSUs that vest based on AIG’s TSR:

	2017		2016		2015
Expected dividend yield^(a)	2.37	%	2.17	%	1.78	%
Expected volatility^(b)	17.58	%	24.55	%	22.71	%
Risk-free interest rate^(c)	2.00	%	1.30	%	1.01	%

(a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date.

(b) The expected volatility is based on the historical volatility of the stock price for the 360 most recent trading days prior to the valuation date estimated by Bloomberg Professional service.

(c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the end of the performance period that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date

Modification of LTI awards

During the fourth quarter of 2017, the Company modified certain outstanding LTI awards by concurrently issuing service-based RSUs and canceling some previously granted PSUs. The change applied to most recipients who participate in the 2015, 2016 and 2017 LTI awards, excluding certain of the Company’s most senior executives. In addition, the Company also issued supplemental RSU grants to certain active employees, which vest in installments over a period of up to three years. We incurred incremental compensation expense of $142 million as a result of these actions. We recognized $71 million in 2017 and the remainder will be recognized through December 2020.

The following table summarizes outstanding share-settled LTI awards^(a):

						Weighted Average
As of or for the Year	Number of Units					Grant-Date Fair Value
Ended December 31, 2017^(b)	2017 LTI	2016 LTI	2015 LTI	2014 LTI	2013 LTI	2017 LTI		2016 LTI		2015 LTI		2014 LTI		2013 LTI
Unvested, beginning of year	-	2,588,598	2,176,555	1,732,616	1,581,904	$	-	$	51.12	$	55.52	$	48.88	$	38.03
Granted	3,996,978	2,806	-	122,378	-		64.83		36.49		-		48.57		-
Vested^(c)	(971,945)	(182,938)	(201,256)	(957,045)	(968,930)		64.09		60.29		59.04		48.89		37.98
Forfeited	(84,987)	(138,263)	(121,456)	(74,638)	(36,764)		65.24		51.10		55.01		49.02		39.14
Unvested, at modification date	2,940,046	2,270,203	1,853,843	823,311	576,210	$	65.07	$	50.37	$	55.17	$	48.81	$	38.04
Cancelled at modification date	(1,082,417)	(2,951,417)	(2,229,873)	-	-		67.47		52.00		54.56		-		-
Granted at modification date	1,082,417	2,646,866	2,094,629	-	-		62.13		62.13		62.13		-		-
Sub-total, net impact of modification	-	(304,551)	(135,244)	-	-		-		55.01		56.33		-		-
Vested - post-modification^(c)	(766,931)	(495,222)	(424,788)	-	-		64.01		62.13		61.82		-		-
Forfeited - post-modification	-	(2,685)	(2,023)	-	-		-		62.13		62.13		-		-
Unvested, end of year^(d)	2,173,115	1,467,745	1,291,788	823,311	576,210	$	62.78	$	60.90	$	60.02	$	48.81	$	38.04

(a) Excludes stock options and DSUs, which are discussed under Stock Options and Non-Employee Plan, respectively.

(b) Except for the 2013 and 2014 LTI award, PSUs represent target amount granted, and does not reflect potential increases or decreases that could result from the final outcome of the performance goals for the respective awards, which is determined in the quarter after the applicable performance period ends.

(c) Also reflects units that vest as a result of an accelerated vesting event that occurred prior to the specified vesting date.

(d) At December 31, 2017, the total unrecognized compensation cost for outstanding LTI awards was $237 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 1.02 years and 3 years.

Stock Option Awards

The Company issued 2.5 million stock options to two senior executives who joined the Company in 2017. The options vest in installments based on a combination of service requirements of up to three years and/or AIG stock price achieving specified hurdles, and will expire in 2024. The fair value of the options were estimated on the grant date using the Black Scholes model for the time-vesting options, and a Monte Carlo simulation for the hurdle-vesting options using the assumptions noted in the following table.

The following weighted-average assumptions were used for stock options granted

	2017
Expected annual dividend yield^(a)	2.03	%
Expected volatility^(b)	20.96	%
Risk-free interest rate^(c)	1.94	%
Expected term^(d)	4.5	years

(a) The dividend yield is based on the current quarterly dividend payment of $0.32 and the Valuation Date stock price.

(b) The expected volatility is the 1080-day implied volatility as seen in the open marketplace on the Valuation Date.

(d) The contractual term of the option is 7 years from the grant date.

The following table provides a rollforward of stock option activity:

				Weighted Average			Aggregate
As of or for the Year		Weighted Average			Remaining		Intrinsic Values
Ended December 31, 2017	Units	Exercise Price		Contractual Life		(in millions)

Outstanding, beginning of year	-	$	-
Granted	2,500,000		62.90
Exercised	-		-
Forfeited or expired	-		-
Outstanding, end of year	2,500,000	$	62.90		6.48	$	-
Exercisable, end of year	-	$	-		-	$	-

The weighted average grant-date fair value of stock options granted during 2017 was $10.54. As of December 31, 2017, we recognized $7.3 million of expense, while $19 million was unrecognized and is expected to be amortized up to 2.75 years.

Non-Employee Plan

Our non-employee directors, who serve on our Board of Directors, receive share-based compensation in the form of fully vested DSUs with delivery deferred until retirement from the Board. DSUs granted in 2017, 2016 and 2015 accrue DEUs equal to the amount of any regular quarterly dividend that would have been paid by AIG if the shares of AIG Common Stock underlying the DSUs had been outstanding. In 2017, 2016 and 2015, we granted to non-employee directors 32,067, 41,974 and 32,342 DSUs, respectively, under the 2013 Plan, and recognized expense of $2.0 million, $2.4 million and $1.9 million, respectively.

EMPLOYEE BENEFITS

12 Months Ended

Dec. 31, 2017

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

21. Employee Benefits

Pension Plans

We offer various defined benefit plans to eligible employees.

The U.S. AIG Retirement Plan (the qualified plan) is a noncontributory defined benefit plan that is subject to the provisions of ERISA. U.S. salaried employees who are employed by a participating company on or before December 1, 2014 and who have completed 12 months of continuous service are eligible to participate in the plan. Effective April 1, 2012, the qualified plan was converted to a cash balance formula comprised of pay credits based on six percent of a plan participant’s annual compensation (subject to IRS limitations) and annual interest credits. Employees can take their vested benefits when they leave AIG as a lump sum or an annuity option after completing at least three years of service. Employees satisfying certain age and service requirements (i.e., grandfathered employees) remain covered under the average pay formula that was in effect prior to the conversion to the cash balance formula. The final average pay formula is based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Grandfathered employees will receive the higher of the benefit under the cash balance formula or the final average pay formula at retirement. Non-U.S. defined benefit plans generally are either based on the employee’s years of credited service and compensation in the years preceding retirement or on points accumulated based on the employee’s job grade and other factors during each year of service.

In the U.S. we also sponsor non-qualified unfunded defined benefit plans, such as the AIG Non-Qualified Retirement Income Plan (AIG NQRIP) for certain employees, including key executives, designed to supplement pension benefits provided by the qualified plan. The AIG NQRIP provides a benefit equal to the reduction in benefits under the qualified plan as a result of federal tax limitations on compensation and benefits payable.

Plan Freeze

Effective January 1, 2016, the U.S. defined benefit pension plans were frozen. Consequently, these plans are closed to new participants and current participants no longer earn benefits. However, interest credits continue to accrue on the existing cash balance accounts and participants are continuing to accrue years of service for purposes of vesting and early retirement eligibility and subsidies as they continue to be employed by AIG.

Postretirement Plans

We also provide postretirement medical care and life insurance benefits in the U.S. and in certain non-U.S. countries. Eligibility in the various plans generally is based upon completion of a specified period of eligible service and attaining a specified age. Overseas, benefits vary by geographic location.

U.S. postretirement medical and life insurance benefits are based upon the employee attaining the age of 55 and having a minimum of ten years of service. Eligible employees who have medical coverage can enroll in retiree medical upon termination of employment. Medical benefits are contributory, while the life insurance benefits generally are non-contributory. Retiree medical contributions vary from none for pre-1989 retirees to actual premium payments reduced by certain subsidies for post-1992 retirees. These contributions are subject to adjustment annually. Other cost sharing features of the medical plan include deductibles, coinsurance and Medicare coordination. Effective April 1, 2012, the retiree medical employer subsidy for the AIG postretirement plan was eliminated for employees who were not grandfathered. Additionally, new employees hired after December 31, 2012 are not eligible for retiree life insurance.

The following table presents the funded status of the plans reconciled to the amount reported in the Consolidated Balance Sheets. The measurement date for most of the non-U.S. defined benefit pension and postretirement plans is November 30, consistent with the fiscal year end of the sponsoring companies. For all other plans, measurement occurs as of December 31.

As of or for the Years Ended		Pension								Postretirement
December 31,		U.S. Plans^*			Non-U.S. Plans^*					U.S. Plans			Non-U.S. Plans
(in millions)		2017		2016		2017		2016		2017		2016		2017		2016
Change in projected benefit obligation:
Benefit obligation, beginning of year	$	4,948	$	5,324	$	1,246	$	1,146	$	196	$	208	$	80	$	75
Service cost		11		19		29		31		2		2		3		3
Interest cost		166		181		16		21		6		7		3		3
Actuarial (gain) loss		372		118		(29)		98		-		(2)		(2)		-
Benefits paid:
AIG assets		(19)		(24)		(10)		(12)		(13)		(14)		(1)		(1)
Plan assets		(161)		(332)		(26)		(35)		-		-		-		-
Plan amendment		-		-		-		1		-		-		(6)		-
Curtailments		-		-		(7)		(2)		-		(1)		-		-
Settlements		(226)		(338)		(12)		(16)		-		-		-		-
Foreign exchange effect		-		-		37		19		-		-		1		-
Other		-		-		(42)		(5)		(1)		(4)		(15)		-
Projected benefit obligation, end of year	$	5,091	$	4,948	$	1,202	$	1,246	$	190	$	196	$	63	$	80
Change in plan assets:
Fair value of plan assets, beginning
of year	$	3,843	$	4,359	$	803	$	773	$	-	$	-	$	-	$	-
Actual return on plan assets, net of expenses		584		154		67		19		-		-		-		-
AIG contributions		329		24		60		71		13		14		1		1
Benefits paid:
AIG assets		(19)		(24)		(10)		(12)		(13)		(14)		(1)		(1)
Plan assets		(161)		(332)		(26)		(35)		-		-		-		-
Settlements		(226)		(338)		(12)		(16)		-		-		-		-
Foreign exchange effect		-		-		19		6		-		-		-		-
Dispositions		-		-		-		(4)		-		-		-		-
Other		-		-		(26)		1		-		-		-		-
Fair value of plan assets, end of year	$	4,350	$	3,843	$	875	$	803	$	-	$	-	$	-	$	-
Funded status, end of year	$	(741)	$	(1,105)	$	(327)	$	(443)	$	(190)	$	(196)	$	(63)	$	(80)
Amounts recognized in the balance
sheet:
Assets	$	-	$	-	$	68	$	53	$	-	$	-	$	-	$	-
Liabilities		(741)		(1,105)		(395)		(496)		(190)		(196)		(63)		(80)
Total amounts recognized	$	(741)	$	(1,105)	$	(327)	$	(443)	$	(190)	$	(196)	$	(63)	$	(80)
Pre-tax amounts recognized in Accumulated
other comprehensive income:
Net gain (loss)	$	(1,373)	$	(1,405)	$	(170)	$	(251)	$	17	$	17	$	(11)	$	(15)
Prior service (cost) credit		-		-		(22)		(28)		1		2		5		-
Total amounts recognized	$	(1,373)	$	(1,405)	$	(192)	$	(279)	$	18	$	19	$	(6)	$	(15)

* Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $272 million and $278 million for the U.S. at December 31, 2017 and 2016, respectively, and $211 million and $199 million for the non-U.S at December 31, 2017 and 2016, respectively.

The following table presents the accumulated benefit obligations for U.S. and non-U.S. pension benefit plans:

At December 31,
(in millions)		2017		2016
U.S. pension benefit plans	$	5,091	$	4,948
Non-U.S. pension benefit plans	$	1,188	$	1,215

Defined benefit plan obligations in which the projected benefit obligation was in excess of the related plan assets and the accumulated benefit obligation was in excess of the related plan assets were as follows:

At December 31,	PBO Exceeds Fair Value of Plan Assets								ABO Exceeds Fair Value of Plan Assets
		U.S. Plans				Non-U.S. Plans				U.S. Plans				Non-U.S. Plans
(in millions)		2017		2016		2017		2016		2017		2016		2017		2016
Projected benefit obligation	$	5,091	$	4,948	$	1,054	$	1,121	$	5,091	$	4,948	$	991	$	1,029
Accumulated benefit obligation		5,091		4,948		979		1,016		5,091		4,948		979		1,009
Fair value of plan assets		4,350		3,843		596		545		4,350		3,843		596		536

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

Years Ended December 31,	Pension												Postretirement
	U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans
(in millions)		2017		2016		2015		2017		2016		2015		2017		2016		2015		2017		2016		2015
Components of net periodic benefit
cost:
Service cost^*	$	11	$	19	$	192	$	29	$	31	$	43	$	2	$	2	$	5	$	3	$	3	$	3
Interest cost		166		181		220		16		21		25		6		7		8		3		3		3
Expected return on assets		(266)		(292)		(295)		(24)		(26)		(25)		-		-		-		-		-		-
Amortization of prior service credit		-		-		(22)		-		-		(2)		(1)		(12)		(11)		(1)		-		(1)
Amortization of net (gain) loss		26		25		92		12		7		9		(1)		(1)		-		1		1		-
Net periodic benefit cost (credit)		(63)		(67)		187		33		33		50		6		(4)		2		6		7		5
Curtailment gain		-		-		(179)		(6)		(6)		(1)		-		(1)		-		(2)		-		-
Settlement loss		60		149		-		1		2		1		-		-		-		-		-		-
Net benefit cost (credit)	$	(3)	$	82	$	8	$	28	$	29	$	50	$	6	$	(5)	$	2	$	4	$	7	$	5
Total recognized in Accumulated other
comprehensive income (loss)	$	32	$	(82)	$	143	$	87	$	(101)	$	38	$	(2)	$	(7)	$	12	$	9	$	1	$	(9)
Total recognized in net periodic benefit
cost and other comprehensive
income (loss)	$	35	$	(164)	$	135	$	59	$	(130)	$	(12)	$	(8)	$	(2)	$	10	$	5	$	(6)	$	(14)

* Reflects administrative fees for the U.S. pension plans.

The estimated net loss and prior service cost that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $35 million and $2 million, respectively, for our combined defined benefit pension plans. For the defined benefit postretirement plans, the estimated amortization from Accumulated other comprehensive income for net loss and prior service credit that will be amortized into net periodic benefit cost over the next fiscal year is a $3 million credit in the aggregate.

As of 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, interest cost was measured utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligations.

A 100 basis point increase in the discount rate or expected long-term rate of return would decrease the 2018 pension expense by approximately $4 million and $51 million, respectively, with all other items remaining the same. Conversely, a 100 basis point decrease in the discount rate or expected long-term rate of return would increase the 2018 pension expense by approximately $23 million and $51 million, respectively, with all other items remaining the same.

Assumptions

The following table summarizes the weighted average assumptions used to determine the benefit obligations:

	Pension						Postretirement
	U.S. Plans			Non-U.S. Plans^(a)			U.S. Plans		Non-U.S. Plans^(a)
December 31, 2017
Discount rate	3.61	%			1.60	%	3.53	%		3.59	%
Rate of compensation increase	N/A		^(b)		2.27	%	N/A			3.00	%
December 31, 2016
Discount rate	4.14	%			1.50	%	4.02	%		3.95	%
Rate of compensation increase	N/A		^(b)		2.50	%	N/A			3.38	%

(a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.

(b) Compensation increases are no longer applicable due to the plan freeze that became effective January 1, 2016.

The following table summarizes assumed health care cost trend rates for the U.S. plans:

At December 31,	2017	2016
Following year:
Medical (before age 65)	6.12%	6.31%
Medical (age 65 and older)	5.00%	5.00%
Ultimate rate to which cost increase is assumed to decline	4.50%	4.50%
Year in which the ultimate trend rate is reached:
Medical (before age 65)	2038	2038
Medical (age 65 and older)	2038	2038

A one percent point change in the assumed healthcare cost trend rate would have the following effect on our postretirement benefit obligations:

	One Percent				One Percent
At December 31,	Increase				Decrease
(in millions)		2017		2016		2017		2016
U.S. plans	$	4	$	4	$	(4)	$	(3)
Non-U.S. plans	$	14	$	19	$	(10)	$	(14)

Our postretirement plans provide benefits primarily in the form of defined employer contributions rather than defined employer benefits. Changes in the assumed healthcare cost trend rate have a minimal impact for U.S. plans because for post-1992 retirees, benefits are fixed dollar amounts based on service at retirement. Our non-U.S. postretirement plans are not subject to caps.

The following table presents the weighted average assumptions used to determine the net periodic benefit costs:

	Pension					Postretirement
	U.S. Plans		Non-U.S. Plans^*			U.S. Plans		Non-U.S. Plans^*
For the Year Ended December 31, 2017
Discount rate	4.15	%		1.50	%	4.01	%		3.95	%
Rate of compensation increase	N/A			2.50	%	N/A			3.38	%
Expected return on assets	7.00	%		2.92	%	N/A			N/A
For the Year Ended December 31, 2016
Discount rate	4.33	%		2.17	%	4.21	%		4.09	%
Rate of compensation increase	N/A			2.64	%	N/A			3.43	%
Expected return on assets	7.00	%		3.28	%	N/A			N/A
For the Year Ended December 31, 2015
Discount rate	3.94	%		2.33	%	3.77	%		4.04	%
Rate of compensation increase	3.40	%		2.89	%	N/A			3.29	%
Expected return on assets	7.25	%		3.33	%	N/A			N/A

* The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits.

Discount Rate Methodology

The projected benefit cash flows under the U.S. AIG Retirement Plan were discounted using the spot rates derived from the Mercer U.S. Pension Discount Yield Curve at December 31, 2017 and 2016, which resulted in a single discount rate that would produce the same liability at the respective measurement dates. The discount rates were 3.61 percent at December 31, 2017 and 4.15 percent at December 31, 2016. The methodology was consistently applied for the respective years in determining the discount rates for the other U.S. pension plans.

In general, the discount rates for the non-U.S. plans were developed using a similar methodology to the U.S. AIG Retirement plan, by using country-specific Mercer Yield Curves.

The projected benefit obligation for AIG’s Japan pension plans represents approximately 50 percent and 54 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2017 and 2016, respectively. The weighted average discount rate of 0.66 percent and 0.47 percent at December 31, 2017 and 2016, respectively, was selected by reference to the Mercer Yield Curve for Japan.

Plan Assets

The investment strategy with respect to assets relating to our U.S. and non-U.S. pension plans is designed to achieve investment returns that will provide for the benefit obligations of the plans over the long term, limit the risk of short-term funding shortfalls and maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including, but not limited to, volatility relative to the benefit obligations, liquidity, diversification and concentration, and incorporates the risk/return profile applicable to each asset class.

There were no shares of AIG Common Stock included in the U.S. and non-U.S. pension plans assets at December 31, 2017 or 2016.

U.S. Pension Plan

The assets of the qualified plan are monitored by the AIG U.S. Investment Committee and actively managed by the investment managers, which involves allocating the plan’s assets among approved asset classes within ranges as permitted by the strategic allocation. The long-term strategic asset allocation historically has been reviewed and revised approximately every three years. Beginning in 2016, the investment strategy focus is on de-risking the Plan via regular monitoring. This was implemented through liability driven investing and the adoption of the glide path approach, where the glide path defines the target allocation for the “Return-Seeking” portion of the portfolio (i.e., growth assets) based on the funded ratio. Under this approach, the allocation to growth assets is reduced and the allocation to liability-hedging assets is increased as the Plan’s funded ratio increases in accordance with the defined glide path.

The following table presents the asset allocation percentage by major asset class for the U.S. qualified plan and the target allocation for 2017 based on the plan’s funded status at December 31, 2017:

	Target		Actual		Actual
At December 31,	2018		2017		2016
Asset class:
Equity securities	46	%	45	%	43	%
Fixed maturity securities	44	%	36	%	36	%
Other investments	10	%	19	%	21	%
Total	100	%	100	%	100	%

The expected long-term rate of return for the plan was 7.0 percent for both 2017 and 2016. The expected rate of return is an aggregation of expected returns within each asset class category, weighted for the investment mix of the assets. The combination of the expected asset return and any contributions made by us are expected to maintain the plan’s ability to meet all required benefit obligations. The expected asset return for each asset class was developed based on an approach that considers key fundamental drivers of the asset class returns in addition to historical returns, current market conditions, asset volatility and the expectations for future market returns.

Non-U.S. Pension Plans

The assets of the non-U.S. pension plans are held in various trusts in multiple countries and are invested primarily in equities and fixed maturity securities to maximize the long-term return on assets for a given level of risk.

The following table presents the asset allocation percentage by major asset class for non-U.S. pension plans and the target allocation:

	Target		Actual		Actual
At December 31,	2018		2017		2016
Asset class:
Equity securities	30	%	49	%	44	%
Fixed maturity securities	52	%	32	%	36	%
Other investments	17	%	13	%	14	%
Cash and cash equivalents	1	%	6	%	6	%
Total	100	%	100	%	100	%

The assets of AIG’s Japan pension plans represent approximately 56 percent of total non-U.S. assets at December 31 for both 2017 and 2016. The expected long term rate of return was 2.43 percent and 2.61 percent, for 2017 and 2016, respectively, and is evaluated by the Japanese Pension Investment Committee on a quarterly and annual basis along with various investment managers, and is revised to achieve the optimal allocation to meet targeted funding levels if necessary. In addition, the funding policy is revised in accordance with local regulation every five years.

The expected weighted average long-term rate of return for all our non-U.S. pension plans was 2.92 percent and 3.28 percent for the years ended December 31, 2017 and 2016, respectively. It is an aggregation of expected returns within each asset class that was generally developed based on the building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns.

Assets Measured at Fair Value

The following table presents information about our plan assets and indicates the level of the fair value measurement based on the observability of the inputs used. The inputs and methodology used in determining the fair value of these assets are consistent with those used to measure our assets as discussed in Note 5 herein.

	U.S. Plans								Non-U.S. Plans
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
At December 31, 2017
Assets:
Cash and cash equivalents	$	397	$	-	$	-	$	397	$	51	$	-	$	-	$	51
Equity securities:
U.S.^(a)		1,300		-		-		1,300		-		-		-		-
International^(b)		265		-		-		265		362		64		-		426
Fixed maturity securities:
U.S. investment grade^(c)		-		1,006		12		1,018		-		-		-		-
International investment grade^(c)		-		204		-		204		-		97		-		97
U.S. and international high yield^(d)		-		212		-		212		-		171		-		171
Mortgage and other asset-backed
securities^(e)		-		142		-		142		-		-		-		-
Other fixed maturity securities		-		-		-		-		-		16		-		16
Other investment types^(g):
Direct private equity^(f)		-		-		15		15		-		-		-		-
Insurance contracts		-		20		-		20		-		-		113		113
Total	$	1,962	$	1,584	$	27	$	3,573	$	413	$	348	$	113	$	874
At December 31, 2016
Assets:
Cash and cash equivalents	$	228	$	-	$	-	$	228	$	50	$	-	$	-	$	50
Equity securities:
U.S.^(a)		838		1		-		839		-		-		-		-
International^(b)		377		-		-		377		298		58		-		356
Fixed maturity securities:
U.S. investment grade^(c)		-		1,174		2		1,176		-		-		-		-
International investment grade^(c)		-		-		-		-		-		90		-		90
U.S. and international high yield^(d)		-		218		-		218		-		186		-		186
Mortgage and other asset-backed
securities^(e)		-		-		-		-		-		-		-		-
Other fixed maturity securities		-		-		-		-		-		13		-		13
Other investment types^(g):
Direct private equity^(f)		-		-		24		24		-		-		-		-
Insurance contracts		-		21		-		21		-		-		108		108
Total	$	1,443	$	1,414	$	26	$	2,883	$	348	$	347	$	108	$	803

(a) Includes passive and active U.S. Large Cap and Small Cap strategies, as well as mutual funds, and exchange traded funds.

(b) Includes investments in companies in emerging and developed markets.

(c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade.

(e) Comprised primarily of investments in U.S. asset backed securities and collateralized loan obligations.

(f) Comprised of private capital financing including private debt and private equity securities.

(g) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $777 million and $960 million at December 31, 2017 and 2016, respectively.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we had no significant concentrations of risks at December 31, 2017.

The U.S. pension plan holds a group annuity contract with U.S. Life, one of our subsidiaries, which totaled $20 million and $21 million at December 31, 2017 and 2016, respectively.

Changes in Level 3 Fair Value Measurements

The following table presents changes in our U.S. and non-U.S. Level 3 plan assets measured at fair value:

																				Changes in
				Net																Unrealized Gains
		Balance		Realized and														Balance		(Losses) on
At December 31, 2017		Beginning		Unrealized										Transfers		Transfers		at End		Instruments Held
(in millions)		of year		Gains (Losses)		Purchases		Sales		Issuances		Settlements		In		Out		of year		at End of year
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade	$	2	$	-	$	17	$	(7)	$	-	$	-	$	-	$	-	$	12	$	2
Direct private equity		24		(3)		1		(7)		-		-		-		-		15		(1)
Total	$	26	$	(3)	$	18	$	(14)	$	-	$	-	$	-	$	-	$	27	$	1
Non-U.S. Plan Assets:
Other fixed maturity securities	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Insurance contracts		108		4		1		-		-		-		-		-		113		-
Total	$	108	$	4	$	1	$	-	$	-	$	-	$	-	$	-	$	113	$	-

																				Changes in
				Net																Unrealized Gains
		Balance		Realized and														Balance		(Losses) on
At December 31, 2016		Beginning		Unrealized										Transfers		Transfers		at End		Instruments Held
(in millions)		of year		Gains (Losses)		Purchases		Sales		Issuances		Settlements		In		Out		of year		at End of year
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade	$	9	$	1	$	2	$	(10)	$	-	$	-	$	-	$	-	$	2	$	-
Direct private equity		28		(4)		4		(4)		-		-		-		-		24		(4)
Total	$	37	$	(3)	$	6	$	(14)	$	-	$	-	$	-	$	-	$	26	$	(4)
Non-U.S. Plan Assets:
Other fixed maturity securities	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Insurance contracts		95		12		1		-		-		-		2		(2)		108		-
Total	$	95	$	12	$	1	$	-	$	-	$	-	$	2	$	(2)	$	108	$	-

Transfers of Level 1 and Level 2 Assets

Our policy is to record transfers of assets 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. We had no material transfers between Level 1 and Level 2 during the years ended December 31, 2017 and 2016.

Transfers of Level 3 Assets

We record transfers of assets into or out of Level 3 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. During the year ended December 31, 2017, we had no transfers in or out of Level 3.

Expected Cash Flows

Funding for the qualified plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. There are no minimum required cash contributions in 2018 for the AIG Retirement Plan. The non-qualified and postretirement plans’ benefit payments are deductible when paid to participants.

Our annual pension contribution in 2018 is expected to be approximately $64 million for our U.S. and non-U.S. pension plans. This estimate is subject to change, since contribution decisions are affected by various factors including our liquidity, market performance and management’s discretion.

The expected future benefit payments, net of participants’ contributions, with respect to the defined benefit pension plans and other postretirement benefit plans, are as follows:

		Pension			Postretirement
		U.S.		Non-U.S.		U.S.		Non-U.S.
(in millions)		Plans		Plans		Plans		Plans
2018	$	291	$	36	$	13	$	1
2019		287		40		13		1
2020		297		42		13		1
2021		294		43		13		2
2022		291		41		13		2
2023-2027		1,407		235		60		11

Defined Contribution Plans

We sponsor several defined contribution plans for U.S. employees that provide for pre-tax salary reduction contributions by employees. The most significant plan is the AIG Incentive Savings Plan, for which the matching contribution is 100 percent of the first six percent of a participant’s contributions, subject to the IRS-imposed limitations. Effective January 1, 2016, participants in the AIG Incentive Savings Plan receive an additional fully vested, non-elective, non-discretionary contribution equal to three percent of the participant’s annual base compensation for the plan year, paid each pay period regardless of whether the participant currently contributes to the plan, and subject to the IRS-imposed limitations.

Our pre-tax expenses associated with these plans were $209 million, $236 million and $166 million in 2017, 2016 and 2015, respectively.

OWNERSHIP	12 Months Ended
OWNERSHIP	Dec. 31, 2017
OWNERSHIP
OWNERSHIP	22. Ownership A Schedule 13G/A filed on February 14, 2018 reports aggregate ownership of 57,556,990 shares, or approximately 6.4 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2017, by Capital Research Global Investors, a division of Capital Research and Management Company. A Schedule 13G/A filed on February 12, 2018 reports aggregate ownership of 61,323,039 shares, or approximately 6.8 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2017, by The Vanguard Group, Inc. and various subsidiaries thereof. A Schedule 13G/A filed on February 8, 2018 reports aggregate ownership of 64,406,363 shares, or approximately 7.2 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2017, by Blackrock, Inc. and various subsidiaries thereof. The calculation of ownership interest for purposes of the AIG Tax Asset Protection Plan and Article 13 of our Restated Certificate of Incorporation is different than beneficial ownership for Schedule 13G.

INCOME TAXES

12 Months Ended

Dec. 31, 2017

INCOME TAXES

INCOME TAXES

23. Income Taxes

U.S. Tax Reform Overview

On December 22, 2017, the U.S. enacted Public Law 115-97, known informally as the Tax Cuts and Jobs Act (the Tax Act). The Tax Act reduces the statutory rate of U.S. federal corporate income tax to 21 percent and enacts numerous other changes impacting AIG and the insurance industry.

Changes specific to the insurance industry include the calculation of insurance tax reserves and related transition adjustments, amortization of specified policy acquisition expenses, treatment of separate account dividends received deductions, and computation of pro-ration adjustments. Provisions of the Tax Act with broader application include reductions or elimination of deductions for certain items, e.g., reductions to corporate dividends received deductions, disallowance of entertainment expenses, and limitations on the deduction of certain executive compensation costs. These provisions, generally, will result in an increase in AIG’s taxable income in the years beginning after December 31, 2017.

The SEC staff issued Staff Accounting Bulletin 118 (SAB 118), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 addresses situations where accounting for certain income tax effects of the Tax Act under ASC 740 may be incomplete upon issuance of an entity’s financial statements and provides a one-year measurement period from the enactment date to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the following:

Income tax effects of those aspects of the Tax Act for which accounting under ASC 740 is complete
Provisional estimate of income tax effects of the Tax Act to the extent accounting is incomplete but a reasonable estimate is determinable
If a provisional estimate cannot be determined, ASC 740 should still be applied on the basis of tax law provisions that were in effect immediately before the enactment of the Tax Act.

Consistent with current income tax accounting requirements, we have remeasured our deferred tax assets and liabilities with reference to the statutory income tax rate of 21 percent and taking into consideration other provisions of the Tax Act. As of December 31, 2017, we had not fully completed our accounting for the tax effects of the Tax Act. Our provision for income taxes for the period ended December 31, 2017, is based in part on a reasonable estimate of the effects on existing deferred tax balances and of certain provisions of the Tax Act. To the extent a reasonable estimate of the impact of certain provisions was determinable, we recorded provisional estimates as a component of our provision for income taxes on continuing operations. To the extent a reasonable estimate of the impact of certain provisions was not determinable, we have not recorded any adjustments and have continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect before enactment of the Tax Act.

The Tax Act includes provisions for Global Intangible Low-Taxed Income (GILTI) under which taxes on foreign income are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries and for Base Erosion and Anti-Abuse Tax (BEAT) under which taxes are imposed on certain base eroding payment to affiliated foreign companies. Consistent with accounting guidance, we will treat BEAT as an in period tax charge when incurred in future periods for which no deferred taxes need to be provided and have made an accounting policy election to treat GILTI taxes in a similar manner. Accordingly, no provision for income taxes related to GILTI or BEAT was recorded as of December 31, 2017.

For the period ended December 31, 2017, we recognized a provisional estimate of income tax effects of the Tax Act of $6.7 billion, including a tax charge of $6.7 billion attributable to the reduction in the U.S. corporate income tax rate and tax benefit of $38 million related to the deemed repatriation tax.

Tax effects for which a reasonable estimate can be determined

Deemed Repatriation Tax

The Tax Act requires companies to pay a one-time transition tax, net of tax credits related to applicable foreign taxes paid, on previously untaxed current and accumulated earnings and profits (E&P) of certain of our foreign subsidiaries. In the determination of the deemed repatriation tax, we reviewed estimated post-1986 E&P of certain material relevant foreign subsidiaries, and any related non-U.S. income tax paid on such earnings. Based on this analysis, we were able to determine a reasonable estimate and we have recorded a provisional estimate tax benefit of $38 million. While the IRS has issued some guidance on the calculation of the deemed repatriation tax, there are still certain aspects of the calculation that require further clarification. We are continuing to gather additional information to more precisely compute the amount of deemed repatriation tax.

Other Provisions

The Tax Act modified computations of insurance reserves for both life and general insurance companies. For life insurance companies, tax reserves are now computed with reference to NAIC reserves. For general insurance companies, the Tax Act extends the discount period for certain long-tail lines of business from 10 years to 24 years and increases the discount rate, replacing the applicable federal rate for a higher-yield corporate bond rate, and eliminates the election allowing companies to use their historical loss payment patterns for loss reserve discounting. Adjustments related to the differences in insurance reserves balances computed under the old tax law versus the Tax Act have to be taken into income over eight years by both life and general insurance companies. Accordingly, at December 31, 2017, these changes give rise to new deferred tax liabilities. We have recorded a provisional estimate of $1.9 billion with respect to such deferred tax liabilities. This increase in deferred tax liabilities is offset by an increase in the deferred tax asset related to insurance reserves as a result of applying the new provisions of the Tax Act.

Provisions Impacting Projections of Taxable Income and Valuation Allowance Considerations

Certain provisions of the Tax Act impact our projections of future taxable income used in analyzing realizability of our U.S. tax attribute deferred tax asset. As discussed above, there are specific insurance industry provisions, including changes in computations of insurance reserves, amortization of specified policy acquisition expenses, and treatment of separate account dividends received deduction. Provisional estimates have been included in our future taxable income projections for these insurance industry specific provisions to reflect application of the new tax law.

Because we have made provisional estimates related to the impact of certain aspects of the Tax Act on our future taxable income, corresponding determination of the need for a valuation allowance is also provisional. Generally, the Tax Act provisions result in an increase in our taxable income and, thus, accelerate utilization of our tax attribute deferred tax asset. Accordingly, we do not currently anticipate that our reliance on provisional estimates would have a material impact on our determination of the realizability of our deferred tax assets.

Tax effects for which no estimate can be determined

Our accounting for the following elements of the Tax Act is incomplete and we continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect before enactment of the Tax Act.

The Tax Act may affect the results in certain investments and partnerships in which we are a non-controlling interest owner. The information needed to determine a provisional estimate is not currently available (such as for interest deduction limitations in those entities and the changed definition of a U.S. Shareholder). Accordingly, no provisional estimates were recorded.

Due to minimal formal guidance issued from state and local jurisdictions, provisional estimates have not been recorded for the impact of any state and local corporate income tax implications of the Tax Act. Guidance from state and local jurisdictions is expected during 2018 and the impact, if any, will be recorded at the appropriate time.

EFFECTIVE TAX RATE

The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred

Years Ended December 31,
(in millions)		2017		2016		2015
U.S.	$	1,940	$	1,041	$	1,950
Foreign		(474)		(1,115)		1,331
Total	$	1,466	$	(74)	$	3,281

The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations:

Years Ended December 31,
(in millions)		2017		2016		2015
Foreign and U.S. components of actual income tax expense:
Foreign:
Current	$	209	$	436	$	391
Deferred		25		(121)		(95)
U.S.:
Current		427		140		429
Deferred		6,865		(270)		334
Total	$	7,526	$	185	$	1,059

Our actual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following:

	2017						2016							2015
		Pre-Tax		Tax	Percent of			Pre-Tax		Tax		Percent of					Tax	Percent of
Years Ended December 31,		Income		Expense/	Pre-Tax			Income		Expense/		Pre-Tax			Pre-Tax		Expense/	Pre-Tax
(dollars in millions)		(Loss)		(Benefit)	Income (Loss)			(Loss)		(Benefit)	Income (Loss)				Income		(Benefit)	Income
U.S. federal income tax at statutory
rate	$	1,476	$	517	35.0	%	$	(159)	$	(56)		35.0	%	$	3,281	$	1,148	35.0	%
Adjustments:
Tax exempt interest				(111)	(7.5)					(178)		111.9					(195)	(5.9)
Uncertain tax positions				660	44.7					268		(168.6)					195	5.9
Reclassifications from accumulated
other comprehensive income				(184)	(12.5)					(132)		83.0					(127)	(3.9)
Dispositions of Subsidiaries				17	1.2					118		(74.2)					-	-
Tax Attribute Restoration				-	-					(164)		103.1					-	-
Non-controlling Interest				(7)	(0.5)					(81)		50.9					-	-
Non-deductible transfer pricing
charges				35	2.4					102		(64.2)					97	3.0
Dividends received deduction				(90)	(6.1)					(75)		47.2					(72)	(2.2)
Effect of foreign operations				69	4.7					234		(147.2)					(58)	(1.8)
Share-based compensation
payments excess tax deduction				(40)	(2.7)					-		-					-	-
State income taxes				(9)	(0.6)					23		(14.5)					34	1.0
Impact of Tax Act				6,687	453.0					-		-					-	-
Other				(58)	(3.9)					13		(8.2)					(73)	(2.2)
Effect of discontinued operations				3	0.2					35		(22.0)					-	-
Valuation allowance:
Continuing operations				43	2.9					83		(52.2)					110	3.4
Consolidated total amounts		1,476		7,532	510.3			(159)		190		(119.5)			3,281		1,059	32.3
Amounts attributable to discontinued
operations		10		6	60.0			(85)		5		(5.9)			-		-	-
Amounts attributable to continuing
operations	$	1,466	$	7,526	513.4	%	$	(74)	$	185		(250.0)	%	$	3,281	$	1,059	32.3	%

For the year ended December 31, 2017, the effective tax rate on income from continuing operations was not meaningful. The effective tax rate differs from the 2017 statutory tax rate of 35 percent primarily due to tax charges of $6.7 billion associated with the enactment of the Tax Act discussed above, $660 million of tax charges and related interest associated with increases in uncertain tax positions primarily related to cross border financing transactions and other open tax issues, $69 million associated with the effect of foreign operations, and $35 million of non-deductible transfer pricing charges, partially offset by tax benefits of $201 million of tax exempt income, $184 million of reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities, and $40 million of excess tax deductions related to share based compensation payments recorded through the income statement in accordance with relevant accounting literature. Effect of foreign operations is primarily related to losses incurred in our European operations taxed at a statutory tax rate lower than 35 percent and other foreign taxes.

For the year ended December 31, 2016, the effective tax rate on loss from continuing operations was not meaningful. The effective tax rate on loss from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax charges of $234 million associated with effect of foreign operations, $216 million of tax charges and related interest associated with increases in uncertain tax positions related to cross border financing transactions, $118 million related to disposition of subsidiaries, $102 million related to non-deductible transfer pricing charges, and $83 million related to increases in the deferred tax asset valuation allowances associated with U.S. federal and certain foreign jurisdictions, partially offset by tax benefits of $253 million of tax exempt income, $164 million associated with a portion of the U.S. Life Insurance companies capital loss carryforwards previously treated as expired that was restored and utilized, $116 million related to the impact of an agreement reached with the Internal Revenue Service (IRS) related to certain tax issues under audit, and $132 million of reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities. Effect of foreign operations is primarily related to foreign exchange losses incurred by our foreign subsidiaries related to the weakening of the British pound following the Brexit vote taxed at a statutory tax rate lower than 35 percent.

For the year ended December 31, 2015, the effective tax rate on income from continuing operations was 32.3 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits of $195 million associated with tax exempt interest income, $127 million related to reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities, $58 million associated with the effect of foreign operations, and $109 million related to the partial completion of the IRS examination covering tax year 2006, partially offset by $324 million of tax charges and related interest associated with increases in uncertain tax positions related to cross border financing transactions, and $110 million related to increases in the deferred tax asset valuation allowances associated with certain foreign jurisdictions.

As a result of the Tax Act, the majority of accumulated foreign earnings that were previously untaxed will become subject to a one-time deemed repatriation tax. Going forward, certain foreign earnings of our foreign affiliates will be exempt from U.S. tax upon repatriation. Notwithstanding the changes, U.S. tax on foreign exchange gain or loss and certain non-U.S. withholding taxes will continue to be applicable upon future repatriations of foreign earnings.

For the year ended December 31, 2017, our repatriation assumptions with respect to certain operations in Canada, South Africa, as well as European and Asia Pacific regions remain unchanged and related foreign earnings remain indefinitely reinvested. Due to a change in the legal entity ownership through a contribution of certain affiliates to AIG International Holdings GmbH, our repatriation assumptions related to certain operations in the Far East, Latin America, Bermuda and Middle East region have changed and related foreign earnings are now considered to be indefinitely reinvested. These earnings relate to ongoing operations and have been reinvested in active business operations. Deferred taxes have been provided on earnings of non-U.S. affiliates whose earnings are not indefinitely reinvested.

The following table presents the components of the net deferred tax assets (liabilities):

December 31,
(in millions)		2017		2016
Deferred tax assets:
Losses and tax credit carryforwards	$	11,931	$	16,448
Basis differences on investments		2,133		4,985
Life policy reserves		1,996		3,040
Accruals not currently deductible, and other		532		1,128
Investments in foreign subsidiaries		159		103
Loss reserve discount		526		1,151
Loan loss and other reserves		34		39
Unearned premium reserve reduction		566		924
Fixed assets and intangible assets		442		478
Other		731		710
Employee benefits		601		1,171
Total deferred tax assets		19,651		30,177
Deferred tax liabilities:
Deferred policy acquisition costs		(2,313)		(3,790)
Unrealized gains related to available for sale debt securities		(2,151)		(2,844)
Total deferred tax liabilities		(4,464)		(6,634)
Net deferred tax assets before valuation allowance		15,187		23,543
Valuation allowance		(1,374)		(2,831)
Net deferred tax assets (liabilities)	$	13,813	$	20,712

The following table presents our U.S. consolidated income tax group tax losses and credits carryforwards as of December 31, 2017.

December 31, 2017				Tax	Expiration
(in millions)		Gross		Effected	Periods
Net operating loss carryforwards	$	35,592	$	7,474	2028-2037
Capital loss carryforwards		305		64	2022
Foreign tax credit carryforwards				4,481	2018-2022
Other carryforwards				1,154	Various
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a tax return basis				13,173
Unrecognized tax benefit				(2,543)
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a U.S. GAAP basis^*			$	10,630

* Includes other carryforwards, e.g. general business credits, of $118 million on a U.S. GAAP basis.

We have U.S. federal consolidated net operating loss and tax credit carryforwards of approximately $10.6 billion. The carryforward periods for our foreign tax credits begin to expire in 2019. As detailed in the Assessment of Deferred Tax Asset Valuation Allowance section of this footnote, we determined that it is more likely than not that our U.S. federal consolidated tax attribute carryforwards will be realized prior to their expiration.

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 December 31, 2017, 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 year ended December 31, 2017, recent changes in market conditions, including interest rate fluctuations, impacted the unrealized tax gains and losses in the U.S. life insurance companies’ available for sale securities portfolio, resulting in a deferred tax liability related to net unrealized tax capital gains. As of June 30, 2017, 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, 2017, we released $468 million 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 allocated to other comprehensive income. As of December 31, 2017, 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.

For the year ended December 31, 2017, recent changes in market conditions, including interest rate fluctuations, impacted the unrealized tax gains and losses in the U.S. non-life companies’ available for sale securities portfolio, resulting in a deferred tax liability related to net unrealized tax capital gains. As of June 30, 2017, 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, 2017, we released $260 million of valuation allowance associated with the unrealized tax losses in the U.S. non-life companies’ available for sale securities portfolio, all of which was allocated to other comprehensive income. As of December 31, 2017, we continue to be in an overall unrealized tax gain position with respect to the U.S. non-life companies’ available for sale securities portfolio and thus concluded no valuation allowance is necessary in the U.S. non-life companies’ available for sale securities portfolio.

During the year ended December 31, 2017, we recognized a net increase of $43 million in our deferred tax asset valuation allowance associated with certain foreign jurisdictions, primarily attributable to current year activity.

During the year ended December 31, 2017, we recognized a $26 million decrease in our deferred tax asset valuation allowance associated with certain state jurisdictions, primarily as a result of the beneficial impact of tax law changes enacted in the third quarter of 2017. We also recognized a $634 million decrease in our deferred tax asset valuation allowance associated with certain state jurisdictions, primarily attributable to a corresponding reduction in state and local deferred tax assets.

The following table presents the net deferred tax assets (liabilities) at December 31, 2017 and 2016 on a U.S. GAAP basis:

December 31,
(in millions)		2017		2016
Net U.S. consolidated return group deferred tax assets	$	15,603	$	24,134
Net deferred tax assets (liabilities) in accumulated other comprehensive income		(2,070)		(2,384)
Valuation allowance		(86)		(874)
Subtotal		13,447		20,876
Net foreign, state and local deferred tax assets		1,874		2,413
Valuation allowance		(1,288)		(1,957)
Subtotal		586		456
Subtotal - Net U.S., foreign, state and local deferred tax assets		14,033		21,332
Net foreign, state and local deferred tax liabilities		(220)		(620)
Total AIG net deferred tax assets (liabilities)	$	13,813	$	20,712

Deferred Tax Asset Valuation Allowance of U.S. Consolidated FEDERAL Income Tax Group

At December 31, 2017 and 2016, our U.S. consolidated income tax group had net deferred tax assets after valuation allowance of $13.4 billion and $20.9 billion, respectively. At December 31, 2017 and 2016, our U.S. consolidated income tax group had valuation allowances of $86 million and $874 million, respectively.

Deferred Tax ASSET — Foreign, State and Local

At December 31, 2017 and 2016, we had net deferred tax assets (liabilities) of $366 million and $(164) million, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns.

At December 31, 2017 and 2016, we had deferred tax asset valuation allowances of $1.3 billion and $2.0 billion, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. We maintained these valuation allowances following our conclusion that we could not demonstrate that it was more likely than not that the related deferred tax assets will be realized. This was primarily due to factors such as cumulative losses in recent years and the inability to demonstrate profits within the specific jurisdictions over the relevant carryforward periods.

Tax Examinations and Litigation

We file a consolidated U.S. federal income tax return with our eligible U.S. subsidiaries. Income earned by subsidiaries operating outside the U.S. is taxed, and income tax expense is recorded, based on applicable U.S. and foreign law.

The statute of limitations for all tax years prior to 2000 has expired for our consolidated federal income tax return. We are currently under examination for the tax years 2000 through 2010.

On March 20, 2008, we received a Statutory Notice of Deficiency (Notice) from the IRS for years 1997 to 1999. The Notice asserted that we owe additional taxes and penalties for these years primarily due to the disallowance of foreign tax credits associated with cross-border financing transactions. The transactions that are the subject of the Notice extend beyond the period covered by the Notice, and the IRS has administratively challenged the later periods. The IRS has also administratively challenged other cross-border transactions in later years. We have paid the assessed tax plus interest and penalties for 1997 to 1999. On February 26, 2009, we filed a complaint in the United States District Court for the Southern District of New York (Southern District) seeking a refund of approximately $306 million in taxes, interest and penalties paid with respect to the 1997 taxable year. We allege that the IRS improperly disallowed foreign tax credits and that our taxable income should be reduced as a result of the 2005 restatement of our consolidated financial statements.

We also filed an administrative refund claim on September 9, 2010 for our 1998 and 1999 tax years.

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. The Southern District of New York denied our summary judgment motion and upon AIG’s appeal, the U.S. Court of Appeals for the Second Circuit (the Second Circuit) affirmed the denial. AIG’s petition for certiorari to the U.S. Supreme Court from the decision of the Second Circuit was denied on March 7, 2016. As a result, the case has been remanded back to the Southern District of New York for a jury trial.

In January 2018, the parties reached non-binding agreements in principle on issues presented in the dispute and are currently reviewing the computations reflecting the settlement terms. The resolution is not final and is subject to various reviews. The litigation has been stayed pending the outcome of the review process. We can provide no assurance regarding the outcome of any such litigation or whether binding compromised settlements with the parties will ultimately be reached. We currently believe that we have adequate reserves for the potential liabilities that may result from these matters.

Accounting For Uncertainty in Income Taxes

The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits:

Years Ended December 31,
(in millions)		2017		2016		2015
Gross unrecognized tax benefits, beginning of year	$	4,530	$	4,331	$	4,395
Increases in tax positions for prior years		210		235		162
Decreases in tax positions for prior years		(33)		(39)		(209)
Increases in tax positions for current year		-		3		-
Lapse in statute of limitations		-		-		(4)
Settlements		-		-		(13)
Activity of discontinued operations		-		-		-
Gross unrecognized tax benefits, end of year	$	4,707	$	4,530	$	4,331

At December 31, 2017, 2016 and 2015, our unrecognized tax benefits, excluding interest and penalties, were $4.7 billion, $4.5 billion and $4.3 billion, respectively. The activity for the year includes increases for amounts associated with cross border financing transactions and the impact of settlement discussions with the IRS related to certain other open tax issues unrelated to the cross border financing transactions. With respect to cross border financing transactions, the increase is the result of consideration of recent court decisions upholding the disallowance of foreign tax credits claimed by other corporate entities not affiliated with AIG in addition to the agreement reached in the fourth quarter of 2017 by the parties in the cross border financing dispute to pursue a potential settlement.

At December 31, 2017, 2016 and 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 than the permissibility, of the deduction were $28 million, $66 million and $115 million, respectively. Accordingly, at December 31, 2017, 2016 and 2015, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $4.7 billion, $4.4 billion and $4.2 billion, respectively.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At December 31, 2017, 2016, and 2015, we had accrued liabilities of $2.0 billion, $1.2 billion, and $1.2 billion, respectively, for the payment of interest (net of the federal benefit) and penalties. For the years ended December 31, 2017, 2016, and 2015, we accrued expense of $776 million, $26 million and $156 million, respectively, for the payment of interest and penalties. The current year activity is primarily related to a decrease in the expected federal benefit of interest due to the U.S. corporate tax rate reduction and to an increase in interest and penalties associated with cross border financing transactions.

We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next 12 months by as much as $3.9 billion, principally as a result of potential resolutions or settlements of prior years’ tax items. The prior years’ tax items include unrecognized tax benefits related to the deductibility of certain expenses and matters related to cross border financing transactions.

Listed below are the tax years that remain subject to examination by major tax jurisdictions:

At December 31, 2017	Open Tax Years
Major Tax Jurisdiction
United States	2000-2016
Australia	2013-2016
France	2015-2016
Japan	2011-2016
Korea	2012-2016
Singapore	2012-2016
United Kingdom	2015-2016

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 31, 2017

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

24. Quarterly Financial Information (Unaudited)

Consolidated Statements of Income (Loss)

	Three Months Ended
		March 31,				June 30,				September 30,				December 31,
(dollars in millions, except per share data)		2017		2016		2017		2016		2017		2016		2017		2016
Total revenues	$	12,632	$	11,779	$	12,502	$	14,724	$	11,751	$	12,854	$	12,635	$	13,010
Income (loss) from continuing
operations before income taxes^*		1,727		(214)		1,667		2,858		(2,803)		737		875		(3,455)
Income (loss) from discontinued
operations, net of income taxes		-		(47)		8		(10)		(1)		3		(3)		(36)
Net income (loss)		1,211		(203)		1,118		1,924		(1,713)		436		(6,672)		(2,506)
Net income (loss) from
continuing operations attributable
to noncontrolling interests		26		(20)		(12)		11		26		(26)		(12)		535
Net income (loss) attributable to AIG^*	$	1,185	$	(183)	$	1,130	$	1,913	$	(1,739)	$	462	$	(6,660)	$	(3,041)
Income (loss) per common share
attributable to AIG:
Basic:
Income (loss) from continuing
operations	$	1.21	$	(0.12)	$	1.21	$	1.73	$	(1.91)	$	0.43	$	(7.33)	$	(2.93)
Income (loss) from discontinued
operations	$	-	$	(0.04)	$	0.01	$	(0.01)	$	-	$	-	$	-	$	(0.03)
Diluted:
Income (loss) from continuing
operations	$	1.18	$	(0.12)	$	1.18	$	1.69	$	(1.91)	$	0.42	$	(7.33)	$	(2.93)
Income (loss) from discontinued
operations	$	-	$	(0.04)	$	0.01	$	(0.01)	$	-	$	-	$	-	$	(0.03)
Weighted average shares
outstanding:
Basic	980,777,243		1,156,548,459		925,751,084		1,113,587,927		908,667,044		1,071,295,892		908,115,499		1,023,886,592
Diluted	1,005,315,030		1,156,548,459		948,248,771		1,140,045,973		908,667,044		1,102,400,770		908,115,499		1,023,886,592
Noteworthy quarterly items -
(income) expense:
Other-than-temporary
impairments		68		204		67		108		88		102		37		145
Net (gain) loss on sale of
divested businesses		100		2		60		(225)		13		(128)		(241)		(194)
Federal and foreign valuation
allowance for deferred tax assets		(13)		(37)		(8)		35		24		(2)		40		87
Net (gain) loss on extinguishment of
debt		(1)		83		(4)		7		1		(14)		(1)		(2)
Prior year unfavorable (favorable)
development		61		(66)		391		7		901		273		212		5,574
Restructuring and other costs		181		188		47		90		31		210		154		206
Impact of Tax Act		-		-		-		-		-		-		6,687		-

* For the three months ended December 31, 2016, we recorded out of period adjustments related to prior periods that increased Net loss attributable to AIG by $154 million, increased AIG’s Loss from continuing operations before income taxes by $12 million and decreased adjusted pre-tax income by $1 million. The out of period adjustments are primarily related to income tax liabilities and ceded loss adjustment expenses. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the three-month periods ended September 30, 2016, June 30, 2016 and March 31, 2016 would have decreased by $65 million, increased by $66 million and increased by $19 million, respectively.

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

12 Months Ended

Dec. 31, 2017

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

25. Information Provided in Connection with Outstanding Debt

The following Condensed Consolidating Financial Statements reflect the results of AIG Life Holdings, Inc. (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
December 31, 2017
Assets:
Short-term investments	$	2,541	$	-	$	11,559	$	(3,714)	$	10,386
Other investments^(a)		6,004		-		305,902		-		311,906
Total investments		8,545		-		317,461		(3,714)		322,292
Cash		3		20		2,339		-		2,362
Loans to subsidiaries^(b)		35,004		-		517		(35,521)		-
Investment in consolidated subsidiaries^(b)		40,135		30,359		-		(70,494)		-
Other assets, including deferred income taxes		16,016		170		159,594		(2,133)		173,647
Assets held for sale		-		-		-		-		-
Total assets	$	99,703	$	30,549	$	479,911	$	(111,862)	$	498,301
Liabilities:
Insurance liabilities	$	-	$	-	$	282,105	$	-	$	282,105
Long-term debt		21,557		642		9,441		-		31,640
Other liabilities, including intercompany balances^(a)		12,458		143		112,275		(6,028)		118,848
Loans from subsidiaries^(b)		517		-		35,004		(35,521)		-
Liabilities held for sale		-		-		-		-		-
Total liabilities		34,532		785		438,825		(41,549)		432,593
Total AIG shareholders’ equity		65,171		29,764		40,549		(70,313)		65,171
Non-redeemable noncontrolling interests		-		-		537		-		537
Total equity		65,171		29,764		41,086		(70,313)		65,708
Total liabilities and equity	$	99,703	$	30,549	$	479,911	$	(111,862)	$	498,301

December 31, 2016
Assets:
Short-term investments	$	4,424	$	-	$	13,218	$	(5,340)	$	12,302
Other investments^(a)		7,154		-		308,719		-		315,873
Total investments		11,578		-		321,937		(5,340)		328,175
Cash		2		34		1,832		-		1,868
Loans to subsidiaries^(b)		34,692		-		576		(35,268)		-
Investment in consolidated subsidiaries^(b)		42,582		27,309		-		(69,891)		-
Other assets, including deferred income taxes		24,099		239		140,743		(4,059)		161,022
Assets held for sale		-		-		7,199		-		7,199
Total assets	$	112,953	$	27,582	$	472,287	$	(114,558)	$	498,264
Liabilities:
Insurance liabilities	$	-	$	-	$	275,120	$	-	$	275,120
Long-term debt		21,405		642		8,865		-		30,912
Other liabilities, including intercompany balances^(a)		14,671		194		103,975		(9,572)		109,268
Loans from subsidiaries^(b)		577		-		34,691		(35,268)		-
Liabilities held for sale		-		-		6,106		-		6,106
Total liabilities		36,653		836		428,757		(44,840)		421,406
Total AIG shareholders’ equity		76,300		26,746		42,972		(69,718)		76,300
Non-redeemable noncontrolling interests		-		-		558		-		558
Total equity		76,300		26,746		43,530		(69,718)		76,858
Total liabilities and equity	$	112,953	$	27,582	$	472,287	$	(114,558)	$	498,264

(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
Year Ended December 31, 2017
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	(149)	$	1,978	$	-	$	(1,829)	$	-
Other income		891		-		48,802		(173)		49,520
Total revenues		742		1,978		48,802		(2,002)		49,520
Expenses:
Interest expense		949		50		176		(7)		1,168
Loss on extinguishment of debt		2		-		(7)		-		(5)
Other expenses		952		2		46,116		(179)		46,891
Total expenses		1,903		52		46,285		(186)		48,054
Income (loss) from continuing operations before income tax
expense (benefit)		(1,161)		1,926		2,517		(1,816)		1,466
Income tax expense (benefit)		4,922		(3)		2,607		-		7,526
Income (loss) from continuing operations		(6,083)		1,929		(90)		(1,816)		(6,060)
Income (loss) from discontinued operations, net of income taxes		(1)		-		5		-		4
Net income (loss)		(6,084)		1,929		(85)		(1,816)		(6,056)
Less:
Net income from continuing operations attributable to
noncontrolling interests		-		-		28		-		28
Net income (loss) attributable to AIG	$	(6,084)	$	1,929	$	(113)	$	(1,816)	$	(6,084)
Year Ended December 31, 2016
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	(1,269)	$	(197)	$	-	$	1,466	$	-
Other income		516		5		52,875		(1,029)		52,367
Total revenues		(753)		(192)		52,875		437		52,367
Expenses:
Interest expense		988		51		227		(6)		1,260
Loss on extinguishment of debt		77		-		(3)		-		74
Other expenses		295		16		51,819		(1,023)		51,107
Total expenses		1,360		67		52,043		(1,029)		52,441
Income (loss) from continuing operations before income tax
expense (benefit)		(2,113)		(259)		832		1,466		(74)
Income tax expense (benefit)		(1,301)		(21)		1,507		-		185
Income (loss) from continuing operations		(812)		(238)		(675)		1,466		(259)
Loss from discontinued operations, net of income taxes		(37)		-		(53)		-		(90)
Net income (loss)		(849)		(238)		(728)		1,466		(349)
Less:
Net income (loss) from continuing operations attributable to
noncontrolling interests		-		-		500		-		500
Net income (loss) attributable to AIG	$	(849)	$	(238)	$	(1,228)	$	1,466	$	(849)

Year Ended December 31, 2015
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	3,954	$	1,936	$	-	$	(5,890)	$	-
Other income		88		-		58,953		(714)		58,327
Total revenues		4,042		1,936		58,953		(6,604)		58,327
Expenses:
Other interest expense		1,049		58		302		(128)		1,281
Loss on extinguishment of debt		703		-		46		7		756
Other expenses		1,178		44		52,374		(587)		53,009
Total expenses		2,930		102		52,722		(708)		55,046
Income (loss) from continuing operations before income tax
expense (benefit)		1,112		1,834		6,231		(5,896)		3,281
Income tax expense (benefit)		(1,086)		(73)		2,218		-		1,059
Income (loss) from continuing operations		2,198		1,907		4,013		(5,896)		2,222
Income (loss) from discontinued operations, net of income taxes		(2)		-		2		-		-
Net income (loss)		2,196		1,907		4,015		(5,896)		2,222
Less:
Net income from continuing operations attributable to
noncontrolling interests		-		-		26		-		26
Net income (loss) attributable to AIG	$	2,196	$	1,907	$	3,989	$	(5,896)	$	2,196

* 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
Year Ended December 31, 2017
Net income (loss)	$	(6,084)	$	1,929	$	(85)	$	(1,816)	$	(6,056)
Other comprehensive income (loss)		2,235		7,851		17,857		(25,708)		2,235
Comprehensive income (loss)		(3,849)		9,780		17,772		(27,524)		(3,821)
Total comprehensive income attributable to noncontrolling interests		-		-		28		-		28
Comprehensive income (loss) attributable to AIG	$	(3,849)	$	9,780	$	17,744	$	(27,524)	$	(3,849)
Year Ended December 31, 2016
Net income (loss)	$	(849)	$	(238)	$	(728)	$	1,466	$	(349)
Other comprehensive income (loss)		693		4,080		52,153		(56,233)		693
Comprehensive income (loss)		(156)		3,842		51,425		(54,767)		344
Total comprehensive income attributable to noncontrolling interests		-		-		500		-		500
Comprehensive income (loss) attributable to AIG	$	(156)	$	3,842	$	50,925	$	(54,767)	$	(156)
Year Ended December 31, 2015
Net income (loss)	$	2,196	$	1,907	$	4,015	$	(5,896)	$	2,222
Other comprehensive income (loss)		(8,080)		2,320		54,757		(57,083)		(8,086)
Comprehensive income (loss)		(5,884)		4,227		58,772		(62,979)		(5,864)
Total comprehensive income attributable to noncontrolling interests		-		-		20		-		20
Comprehensive income (loss) attributable to AIG	$	(5,884)	$	4,227	$	58,752	$	(62,979)	$	(5,884)

Condensed Consolidating Statements of Cash Flows

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2017
Net cash (used in) provided by operating activities	$	36	$	1,413	$	(7,426)	$	(2,608)	$	(8,585)
Cash flows from investing activities:
Sales of investments		5,821		-		75,228		(3,758)		77,291
Sales of divested businesses, net		40		-		752		-		792
Purchase of investments		(2,465)		-		(64,539)		3,758		(63,246)
Loans to subsidiaries – net		199		-		63		(262)		-
Contributions from (to) subsidiaries - net		2,446		-		-		(2,446)		-
Net change in restricted cash		-		-		(121)		-		(121)
Net change in short-term investments		1,990		-		108		-		2,098
Other, net		(183)		(5)		(1,955)		-		(2,143)
Net cash (used in) provided by investing activities		7,848		(5)		9,536		(2,708)		14,671
Cash flows from financing activities:
Issuance of long-term debt		1,505		-		1,851		-		3,356
Repayments of long-term debt		(1,724)		-		(1,974)		-		(3,698)
Purchase of common stock		(6,275)		-		-		-		(6,275)
Intercompany loans - net		(63)		-		(199)		262		-
Cash dividends paid		(1,172)		(1,422)		(1,186)		2,608		(1,172)
Other, net		(154)		-		(200)		2,446		2,092
Net cash (used in) financing activities		(7,883)		(1,422)		(1,708)		5,316		(5,697)
Effect of exchange rate changes on cash		-		-		(28)		-		(28)
Change in cash		1		(14)		374		-		361
Cash at beginning of year		2		34		1,832		-		1,868
Change in cash of businesses held for sale		-		-		133		-		133
Cash at end of year	$	3	$	20	$	2,339	$	-	$	2,362

Year Ended December 31, 2016
Net cash (used in) provided by operating activities	$	2,112	$	1,707	$	2,515	$	(3,951)	$	2,383
Cash flows from investing activities:
Sales of investments		5,769		-		81,560		(11,685)		75,644
Sales of divested businesses, net		2,160		-		649		-		2,809
Purchase of investments		(1,002)		-		(80,668)		11,685		(69,985)
Loans to subsidiaries – net		1,525		-		(3)		(1,522)		-
Contributions from (to) subsidiaries - net		1,637		-		-		(1,637)		-
Net change in restricted cash		-		-		385		-		385
Net change in short-term investments		(789)		-		(2,300)		-		(3,089)
Other, net		(141)		-		(879)		-		(1,020)
Net cash (used in) provided by investing activities		9,159		-		(1,256)		(3,159)		4,744
Cash flows from financing activities:
Issuance of long-term debt		3,831		-		2,123		-		5,954
Repayments of long-term debt		(1,996)		(63)		(2,023)		-		(4,082)
Purchase of common stock		(11,460)		-		-		-		(11,460)
Intercompany loans - net		3		(3)		(1,522)		1,522		-
Cash dividends paid		(1,372)		(1,723)		(2,228)		3,951		(1,372)
Other, net		(309)		-		2,799		1,637		4,127
Net cash (used in) provided by financing activities		(11,303)		(1,789)		(851)		7,110		(6,833)
Effect of exchange rate changes on cash		-		-		52		-		52
Change in cash		(32)		(82)		460		-		346
Cash at beginning of year		34		116		1,479		-		1,629
Change in cash of businesses held for sale		-		-		(107)		-		(107)
Cash at end of year	$	2	$	34	$	1,832	$	-	$	1,868

Year Ended December 31, 2015
Net cash (used in) provided by operating activities	$	4,443	$	2,314	$	1,112	$	(4,992)	$	2,877
Cash flows from investing activities:
Sales of investments		7,767		-		69,726		(4,877)		72,616
Purchase of investments		(1,881)		-		(68,261)		4,877		(65,265)
Loans to subsidiaries – net		(83)		-		367		(284)		-
Contributions to subsidiaries		565		-		-		(565)		-
Net change in restricted cash		-		-		1,457		-		1,457
Net change in short-term investments		2,300		-		(1,137)		-		1,163
Other, net		(175)		-		(1,334)		-		(1,509)
Net cash (used in) provided by investing activities		8,493		-		818		(849)		8,462
Cash flows from financing activities:
Issuance of long-term debt		5,540		-		1,327		-		6,867
Repayments of long-term debt		(6,504)		(114)		(3,187)		-		(9,805)
Intercompany loans - net		(201)		3		(86)		284		-
Purchase of common stock		(10,691)		-		-		-		(10,691)
Cash dividends paid to shareholders		(1,028)		(2,178)		(2,814)		4,992		(1,028)
Other, net		(44)		-		2,707		565		3,228
Net cash (used in) provided by financing activities		(12,928)		(2,289)		(2,053)		5,841		(11,429)
Effect of exchange rate changes on cash		-		-		(39)		-		(39)
Change in cash		8		25		(162)		-		(129)
Cash at beginning of year		26		91		1,641		-		1,758
Cash at end of year	$	34	$	116	$	1,479	$	-	$	1,629

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 year ended December 31, 2017 for:
Interest:
Third party	$	(948)	$	(48)	$	(286)	$	-	$	(1,282)
Intercompany		-		(1)		1		-		-
Taxes:
Income tax authorities	$	(329)	$	-	$	(215)	$	-	$	(544)
Intercompany		614		-		(614)		-		-
Cash (paid) received during the year ended December 31, 2016 for:
Interest:
Third party	$	(975)	$	(52)	$	(304)	$	-	$	(1,331)
Intercompany		2		-		(2)		-		-
Taxes:
Income tax authorities	$	(15)	$	-	$	(478)	$	-	$	(493)
Intercompany		479		-		(479)		-		-
Cash (paid) received during the year ended December 31, 2015 for:
Interest:
Third party^*	$	(1,030)	$	(59)	$	(279)	$	-	$	(1,368)
Intercompany		-		-		-		-		-
Taxes:
Income tax authorities	$	(11)	$	-	$	(500)	$	-	$	(511)
Intercompany		829		-		(829)		-		-

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

Years Ended December 31,
(in millions)		2017		2016		2015
Intercompany non-cash financing and investing activities:
Capital contributions	$	259	$	3,245	$	494
Dividends received in the form of securities		735		5,234		2,326
Return of capital		26		-		-
Fixed maturity securities received in exchange for equity securities		-		440		-
Non-cash financing/investing activities:
Non-cash consideration received from sale of shares of AerCap		-		-		500
Non-cash consideration received from sale of United Guaranty		-		1,101		-

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	26. Subsequent Events DIVIDENDS DECLARED AND SHARE REPURCHASE AUTHORIZATION On February 8, 2018, our Board of Directors declared a cash dividend on AIG Common Stock of $0.32 per share, payable on March 29, 2018 to shareholders of record on March 15, 2018. ACQUISITION OF BUSINESS On January 21, 2018, we entered into an agreement to purchase Validus Holdings, Ltd. (Validus), a leading provider of reinsurance, primary insurance, and asset management services, for approximately $5.6 billion in cash. The transaction is expected to close mid-2018 and is subject to customary closing conditions, including, among others, obtaining the relevant regulatory approvals (including the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and receipt of the approval of the Bermuda Monetary Authority, the New Hampshire Department of Insurance, the Prudential Regulatory Authority, Lloyd’s, the Texas Department of Insurance and the Swiss Financial Market Supervisory Authority) and obtaining the approval of the shareholders of Validus. In connection with the transaction, the board of directors of Validus approved, and recommended that Validus’ shareholders approve, an amendment to Validus’ bye-laws that would reduce the Validus shareholder vote required to approve a merger with another company (including the transaction) from the affirmative vote of three-fourths of those voting at a general meeting of the shareholders to the affirmative vote of a majority of those voting at such general meeting (the Bye-Law Amendment). If the Bye-Law Amendment is approved by holders of a majority in voting power of the aggregate voting power of the common stock of Validus, Validus must then obtain the affirmative vote of a majority of its shareholders voting at a general meeting to approve and adopt the transaction. If the Bye-Law Amendment is not so approved, then Validus must obtain the affirmative vote of three-fourths of its shareholders voting at a general meeting to approve and adopt the transaction. REINSURANCE TRANSACTIONS In February 2018, we closed a series of affiliated reinsurance transactions impacting the Legacy Portfolio. These transactions were designed to consolidate the bulk of the Legacy Insurance Run-Off Lines into a single legal entity, DSA Reinsurance Company, Ltd. (DSA Re), a Bermuda domiciled composite reinsurer, 100 percent owned by AIG. The transactions include the cession of approximately $32 billion of reserves from the Legacy Life and Retirement Run-off Lines and approximately $5 billion of reserves from the Legacy General Insurance Run-off Lines relating to business written by multiple AIG legal entities. This represented over 80 percent of the insurance reserves in the Legacy Portfolio as of December 31, 2017. DSA Re will have approximately $40 billion of invested assets, managed by AIG Investments and will become AIG’s main run-off reinsurer with its own dedicated management team. Following the close of the DSA Re transactions, Eaglestone Reinsurance Company will continue to reinsure the AIG property casualty pool companies for their asbestos liabilities and benefit from the retroactive reinsurance agreement entered into with NICO in 2011. As part of the transaction, AIG Parent has provided DSA Re with a CMA that requires AIG Parent to restore capital of each of the long term business fund and general business accounts of DSA Re to a specified minimum enhanced capital ratio measured for each fund on a quarterly basis. We will maintain the CMA so long as we have more than 50 percent voting control of DSA Re.

Schedule I Summary of Investments - Other than Investments in Related Parties

12 Months Ended

Dec. 31, 2017

Schedule I Summary of Investments - Other than Investments in Related Parties

Schedule I Summary of Investments - Other than Investments in Related Parties

Summary of Investments — Other than Investments in Related Parties

						Schedule I

						Amount at
At December 31, 2017						which shown in
(in millions)		Cost^(a)		Fair Value		the Balance Sheet
Fixed maturities:
U.S. government and government sponsored entities	$	5,334	$	5,458	$	5,458
Obligations of states, municipalities and political subdivisions		17,377		18,644		18,644
Non-U.S. governments		15,116		15,716		15,716
Public utilities		17,654		18,870		18,870
All other corporate debt securities		110,565		117,215		117,215
Mortgage-backed, asset-backed and collateralized		72,187		75,861		75,861
Total fixed maturity securities		238,233		251,764		251,764
Equity securities and mutual funds:
Common stock:
Public utilities		1		1		1
Banks, trust and insurance companies		924		1,126		1,126
Industrial, miscellaneous and all other		326		483		483
Total common stock		1,251		1,610		1,610
Preferred stock		504		533		533
Mutual funds		139		154		154
Total equity securities and mutual funds		1,894		2,297		2,297
Mortgage and other loans receivable, net of allowance		37,023		37,766		37,023
Other invested assets		20,682		20,824		20,822
Short-term investments, at cost (approximates fair value)		10,386		10,386		10,386
Derivative assets^(b)		922		922		922
Total investments	$	309,140	$	323,959	$	323,214

(a) Original cost of equity securities and fixed maturities is reduced by other-than-temporary impairment charges, and, as to fixed maturity securities, reduced by repayments and adjusted for amortization of premiums or accretion of discounts.

(b) The balance is reported in Other assets.

Schedule II Condensed Financial Information of Registrant - Parent Company Only

12 Months Ended

Dec. 31, 2017

Schedule II Condensed Financial Information of Registrant - Parent Company Only

Schedule II Condensed Financial Information of Registrant - Parent Company Only

Condensed Financial Information of Registrant

Balance Sheets — Parent Company Only

		Schedule II

December 31,
(in millions)		2017		2016
Assets:
Short-term investments	$	2,541	$	4,424
Other investments		6,004		7,154
Total investments		8,545		11,578
Cash		3		2
Loans to subsidiaries^*		35,004		34,692
Due from affiliates - net^*		1,585		3,460
Intercompany tax receivable^*		3,058		5,129
Deferred income taxes		11,030		15,169
Investments in consolidated subsidiaries^*		40,135		42,582
Other assets		343		341
Total assets	$	99,703	$	112,953
Liabilities:
Due to affiliate^*	$	4,340	$	6,083
Intercompany tax payable^*		4,577		4,152
Deferred tax liabilities		-		-
Notes and bonds payable		20,339		19,432
Junior subordinated debt		841		843
MIP notes payable		356		1,099
Series AIGFP matched notes and bonds payable		21		31
Loans from subsidiaries^*		517		577
Other liabilities (includes intercompany derivative liabilities of $63 in 2017 and $419 in 2016)		3,541		4,436
Total liabilities		34,532		36,653
AIG Shareholders’ equity:
Common stock		4,766		4,766
Treasury stock		(47,595)		(41,471)
Additional paid-in capital		81,078		81,064
Retained earnings		21,457		28,711
Accumulated other comprehensive income		5,465		3,230
Total AIG shareholders’ equity		65,171		76,300
Total liabilities and equity	$	99,703	$	112,953

* Eliminated in consolidation.

See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Income — Parent Company Only

				Schedule II

Years Ended December 31,
(in millions)		2017		2016		2015
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries^(a)	$	(2,375)	$	(8,633)	$	(2,929)
Dividend income from consolidated subsidiaries^(a)		2,226		7,364		6,883
Interest income^(b)		656		411		342
Net realized capital gains (losses)		46		2		(587)
Other income		189		103		333
Expenses:
Interest expense		949		988		1,049
Net loss on extinguishment of debt		2		77		703
Net (gain) loss on sale of divested businesses^(c)		30		(690)		11
Other expenses		922		985		1,167
Income (loss) from continuing operations before income tax expense (benefit)		(1,161)		(2,113)		1,112
Income tax expense (benefit)		4,922		(1,301)		(1,086)
Net income (loss)		(6,083)		(812)		2,198
Loss from discontinued operations		(1)		(37)		(2)
Net income (loss) attributable to AIG Parent Company	$	(6,084)	$	(849)	$	2,196
(a) Eliminated in consolidation.
(b) Includes interest income on intercompany borrowings of $512 million, $294 million and $163 million on December 31, 2017, 2016 and 2015, respectively,
eliminated in consolidation.
(c) Primarily includes pre-tax gain of $697 million on the sale of United Guaranty on December 31, 2016.
See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Comprehensive Income — Parent Company Only

				Schedule II

Years Ended December 31,
(in millions)		2017		2016		2015
Net income	$	(6,084)	$	(849)	$	2,196
Other comprehensive income		2,235		693		(8,080)
Total comprehensive loss attributable to AIG	$	(3,849)	$	(156)	$	(5,884)

See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Cash Flows — Parent Company Only

				Schedule II

Years Ended December 31,
(in millions)		2017		2016		2015
Net cash provided by operating activities	$	36	$	2,112	$	4,443
Cash flows from investing activities:
Sales and maturities of investments		5,714		5,598		7,609
Sales of divested businesses		40		2,160		-
Purchase of investments		(2,465)		(1,002)		(1,881)
Net change in short-term investments		1,990		(789)		2,300
Contributions to subsidiaries - net		2,446		1,637		565
Mortgage and other loan receivables - originations and purchases		-		(85)		-
Payments received on mortgages and other loan receivables		107		171		158
Loans to subsidiaries - net		199		1,525		(83)
Other, net		(183)		(56)		(175)
Net cash provided by investing activities		7,848		9,159		8,493
Cash flows from financing activities:
Issuance of long-term debt		1,505		3,831		5,540
Repayment of long-term debt		(1,724)		(1,996)		(6,504)
Cash dividends paid		(1,172)		(1,372)		(1,028)
Loans from subsidiaries - net		(63)		3		(201)
Purchase of Common Stock		(6,275)		(11,460)		(10,691)
Other, net		(154)		(309)		(44)
Net cash used in financing activities		(7,883)		(11,303)		(12,928)
Change in cash		1		(32)		8
Cash at beginning of year		2		34		26
Cash at end of year	$	3	$	2	$	34

Supplementary disclosure of cash flow information:
	Years Ended December 31,
(in millions)		2017		2016		2015
Cash (paid) received during the period for:
Interest:
Third party	$	(948)	$	(975)	$	(1,030)
Intercompany		-		2		-
Taxes:
Income tax authorities		(329)		(15)		(11)
Intercompany		614		479		829
Intercompany non-cash financing and investing activities:
Capital contributions		259		3,245		494
Return of capital		26		-		-
Dividends received in the form of securities		735		5,234		2,326
Fixed maturity securities received in exchange for equity securities		-		440		-
Non-cash financing/investing activities
Non-cash consideration received from sale of shares of AerCap		-		-		500
Non-cash consideration received from sale of United Guaranty		-		1,101		-

See accompanying Notes to Condensed Financial Information of Registrant.

Notes to Condensed Financial Information of Registrant

American International Group, Inc.’s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant’s 2017 Annual Report on Form 10-K for the year ended December 31, 2017 (Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 16, 2018.

The Registrant includes in its Statement of Income dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

Certain prior period amounts have been reclassified to conform to the current period presentation.

The five-year debt maturity schedule is incorporated by reference from Note 15 to Consolidated Financial Statements.

The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due from affiliates in the accompanying Condensed Balance Sheets.

Income taxes in the accompanying Condensed Balance Sheets are composed of the Registrant’s current and deferred tax assets, the consolidated group’s current income tax receivable and deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated income tax group.

For additional information see Note 23 to the Consolidated Financial Statements.

The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards are recorded by the Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries.

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Schedule III Supplementary Insurance Information

12 Months Ended

Dec. 31, 2017

Schedule III Supplementary Insurance Information

Schedule III Supplementary Insurance Information

Supplementary Insurance Information

											Schedule III

At December 31, 2017 and 2016

								Liability
								for Unpaid
								Losses and
								Loss
						Deferred		Adjustment				Policy
						Policy		Expenses,				and
						Acquisition		Future Policy		Unearned		Contract
Segment (in millions)						Costs		Benefits		Premiums		Claims
2017
General Insurance companies					$	2,587	$	73,530	$	18,795	$	-
Life and Retirement companies						8,407		44,615		-		851
Other^(a)						-		5,680		235		9
					$	10,994	$	123,825	$	19,030	$	860
2016
General Insurance companies					$	2,563	$	71,926	$	19,348	$	-
Life and Retirement companies						8,466		41,383		-		836
Other^(a)						13		5,972		286		11
					$	11,042	$	119,281	$	19,634	$	847


For the years ended December 31, 2017, 2016 and 2015

						Losses		Amortization
		Premiums				and Loss		of Deferred
		and		Net		Expenses		Policy		Other		Net
		Policy		Investment		Incurred,		Acquisition		Operating		Premiums
Segment (in millions)		Fees		Income		Benefits		Costs		Expenses		Written^(b)
2017
General Insurance	$	26,026	$	3,668	$	21,642	$	3,765	$	5,100	$	25,438
Life and Retirement		6,844		7,816		8,607		743		2,296		-
Other Operations^(a)		712		(81)		1,076		(296)		-		314
Legacy Operations		727		2,776		2,239		76		-		4
	$	34,309	$	14,179	$	33,564	$	4,288	$	7,396	$	25,756
2016
General Insurance	$	29,586	$	3,554	$	25,103	$	4,121	$	5,967	$	28,393
Life and Retirement		4,878		7,622		6,945		613		2,700		-
Other Operations^(a)		1,845		(24)		743		(321)		-		819
Legacy Operations		816		2,913		3,351		108		-		21
	$	37,125	$	14,065	$	36,142	$	4,521	$	8,667	$	29,233
2015
General Insurance	$	30,922	$	3,746	$	22,873	$	4,319	$	6,848	$	32,199
Life and Retirement		5,677		7,541		7,745		794		3,607		-
Other Operations^(a)		1,641		(162)		854		21		-		668
Legacy Operations		1,170		2,928		3,604		102		-		199
	$	39,410	$	14,053	$	35,076	$	5,236	$	10,455	$	33,066

(a) Includes consolidation and elimination entries.

(b) Balances reflect the segment changes discussed in Note 3 – Segment Information to the Consolidated Financial Statements.

Schedule IV Reinsurance

12 Months Ended

Dec. 31, 2017

Schedule IV Reinsurance

Schedule IV Reinsurance

Reinsurance

									Schedule IV

At December 31, 2017, 2016 and 2015 and for the years then ended

									Percent of
				Ceded to		Assumed			Amount
		Gross		Other		from Other			Assumed
(in millions)		Amount		Companies		Companies		Net Amount	to Net
2017
Long-duration insurance in force	$	1,061,095	$	202,402	$	321	$	859,014	-	%
Premiums:
General Insurance companies	$	30,205	$	7,533	$	3,084	$	25,756	12.0	%
Life and Retirement companies		5,053		809		285		4,529	6.3
Other		-		-		-		-	-
Total	$	35,258	$	8,342	$	3,369	$	30,285	11.1	%
2016
Long-duration insurance in force	$	1,025,653	$	174,363	$	339	$	851,629	-	%
Premiums:
General Insurance companies	$	33,970	$	7,561	$	2,824	$	29,233	9.7	%
Life and Retirement companies		4,609		789		123		3,943	3.1
Other		-		-		-		-	-
Total	$	38,579	$	8,350	$	2,947	$	33,176	8.9	%
2015
Long-duration insurance in force	$	1,051,571	$	177,025	$	372	$	874,918	-	%
Premiums:
General Insurance companies	$	37,698	$	7,604	$	2,972	$	33,066	9.0	%
Life and Retirement companies		5,233		756		7		4,484	0.2
Other		-		-		-		-	-
Total	$	42,931	$	8,360	$	2,979	$	37,550	7.9	%

Schedule V Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2017

Valuation and Qualifying Accounts [Abstract]

Schedule V Valuation and Qualifying Accounts

Valuation and Qualifying Accounts

												Schedule V

For the years ended December 31, 2017, 2016 and 2015

				Additions				Reclassified
		Balance,		Charged to				to Assets of
		Beginning		Costs and				Businesses		Divested		Other		Balance,
(in millions)		of year		Expenses		Charge Offs		Held for Sale		Businesses		Changes^*		End of year
2017
Allowance for mortgage and
other loans receivable	$	297	$	49	$	(25)	$	-	$	-	$	1	$	322
Allowance for premiums and
insurances balances receivable		262		36		(58)		-		(8)		4		236
Allowance for reinsurance assets		207		33		(50)		-		-		(3)		187
Federal and foreign valuation
allowance for deferred tax assets		2,831		43		-		-		-		(1,500)		1,374
2016
Allowance for mortgage and
other loans receivable	$	308	$	(7)	$	(15)	$	-	$	-	$	11	$	297
Allowance for premiums and
insurances balances receivable		333		26		(88)		(2)		(7)		-		262
Allowance for reinsurance assets		272		(23)		(34)		(8)		-		-		207
Federal and foreign valuation
allowance for deferred tax assets		3,012		83		-		-		-		(264)		2,831
2015
Allowance for mortgage and
other loans receivable	$	271	$	58	$	(29)	$	-	$	3	$	5	$	308
Allowance for premiums and
insurances balances receivable		431		35		(120)		-		-		(13)		333
Allowance for reinsurance assets		258		90		(67)		-		-		(9)		272
Federal and foreign valuation
allowance for deferred tax assets		1,739		110		-		-		-		1,163		3,012

* Includes recoveries of amounts previously charged off and reclassifications to/from other accounts.

BASIS OF PRESENTATION (Policies)	12 Months Ended
BASIS OF PRESENTATION (Policies)	Dec. 31, 2017
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: liability for unpaid losses and loss adjustment expenses (loss reserves); 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 policy 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; allowances for loan losses; liability for legal contingencies; fair value measurements of certain financial assets and liabilities; and 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 and provisional estimates associated with the Tax Act. 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)

12 Months Ended

Dec. 31, 2017

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Held-for-Sale Classification

At December 31, 2017, we had no businesses classified as held-for-sale. At December 31, 2016, the following businesses were reported as held-for-sale:

United Guaranty Asia

Sale of Certain Insurance Subsidiary Operations to Fairfax

AIG Fuji Life Insurance

Investments

Fixed Maturity and Equity Securities

Other Invested Assets Carried at Fair Value

Other Invested Assets – Equity Method Investments

Other Investments

Investments in Life Settlements

Net Investment Income

Net investment income represents income primarily from the following sources:

Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable.
Dividend income from common and preferred stocks.
Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option.
Earnings from alternative investments.
The difference between the carrying amount of an investment in life settlements and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured.

Net Realized Capital Gains and Losses

Net realized capital gains and losses are determined by specific identification. The net realized capital gains and losses are generated primarily from the following sources:

Sales or full redemptions of available for sale fixed maturity securities, available for sale equity securities, real estate and other alternative investments.
Reductions to the amortized cost basis of available for sale fixed maturity securities, available for sale equity securities and certain other invested assets for other-than-temporary impairments.
Impairments on investments in life settlements.
Changes in fair value of derivatives except for (1) those derivatives at AIGFP and (2) those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses).
Exchange gains and losses resulting from foreign currency transactions.

Evaluating Investments for Other-Than-Temporary Impairments

Fixed Maturity Securities

Current delinquency rates;
Expected default rates and the timing of such defaults;
Loss severity and the timing of any recovery; and
Expected prepayment speeds.

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:

Years Ended December 31,
(in millions)		2017		2016		2015
Balance, beginning of year	$	1,098	$	1,747	$	2,659
Increases due to:
Credit impairments on new securities subject to impairment losses		122		204		111
Additional credit impairments on previously impaired securities		74		212		109
Reductions due to:
Credit impaired securities fully disposed of for which there was no
prior intent or requirement to sell		(99)		(296)		(399)
Credit impaired securities for which there is a current intent or
anticipated requirement to sell		-		-		2
Accretion on securities previously impaired due to credit^*		(669)		(767)		(735)
Divested businesses		-		(2)		-
Balance, end of year	$	526	$	1,098	$	1,747

Equity Securities

We evaluate our available for sale equity securities for impairment by considering such securities as candidates for other-than-temporary impairment if they meet any of the following criteria:

The security has traded at a significant (25 percent or more) discount to cost for an extended period of time (nine consecutive months or longer);
A discrete credit event has occurred resulting in (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy laws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or
We have concluded that we may not realize a full recovery on our investment, regardless of the occurrence of one of the foregoing events.

Other Invested Assets

Purchased Credit Impaired (PCI) Securities

Secured Financing and Similar Arrangements

Methodology Used to Estimate the Allowance for Credit Losses

Reinsurance

Short-Duration Reinsurance

Long-Duration Reinsurance

Variable Interest Entity

Deferred Policy Acquisition Costs

Derivatives and Hedge Accounting

For additional information on embedded derivatives see Notes 5 and 14 herein.

Liability for unpaid claims and claims adjustment expense

Liability for Unpaid Losses and Loss Adjustment Expenses (Loss Reserves)

Future policy benefits for life and accident and health insurance contracts and policyholder contract deposits

Policyholder Contract Deposits

For additional information on guaranteed benefits accounted for as embedded derivatives see Note 14 herein.

Future Policy Benefits

Future policy benefits also include certain guaranteed benefits of variable annuity products that are not considered embedded derivatives, primarily guaranteed minimum death benefits.

For additional information on guaranteed minimum death benefits see Note 14.

Other Policyholder Funds

Debt

Noncontrolling Interests

Non-redeemable noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent.

Earnings Per Share

Income Taxes

Assessment of Deferred Tax Asset Valuation Allowance

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.

Revenues and expenses

Premiums for long-duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued.

Other income from our Other Operations category consists of the following:

Changes in fair value relating to financial assets and liabilities for which the fair value option has been elected.
Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable.
Dividend income from common and preferred stock and earnings distributions from other investments.
Changes in the fair value of other securities sold but not yet purchased, futures, hybrid financial instruments, securities purchased under agreements to resell, and securities sold under agreements to repurchase.
Income earned on real estate based investments and related realized gains and losses from sales, property level impairments and financing costs.
Exchange gains and losses resulting from foreign currency transactions.
Earnings from private equity funds and hedge fund investments accounted for under the equity method.
Changes in the fair value of derivatives at AIG Financial Products Corp. and related subsidiaries (collectively AIGFP).

Cash

Cash represents cash on hand and non-interest-bearing demand deposits.

Premiums and other receivables - net

Other assets

Goodwill

Goodwill was not impaired at December 31, 2017 based on the results of the goodwill impairment test.

The following table presents the changes in goodwill by operating segment:

	North				Life			Other		Legacy
(in millions)	America		International		Insurance		Operations		Portfolio			Total
Balance at January 1, 2015:
Goodwill - gross	$	1,834	$	2,887	$	21	$	7	$	182	$	4,931
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill		570		751		21		7		105		1,454
Increase (decrease) due to:
Acquisition		50		46		55		20		37		208
Other		-		(50)		1		-		-		(49)
Balance at December 31, 2015:
Goodwill - gross		1,884		2,883		77		27		219		5,090
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill		620		747		77		27		142		1,613
Increase (decrease) due to:
Dispositions		(6)		(6)		-		-		-		(12)
Other		-		(70)		-		-		(3)		(73)
Balance at December 31, 2016:
Goodwill - gross		1,878		2,807		77		27		216		5,005
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill		614		671		77		27		139		1,528
Increase (decrease) due to:
Acquisition		-		-		-		4		-		4
Dispositions		(10)		(7)		(6)		-		(2)		(25)
Other		-		74		13		-		-		87
Balance at December 31, 2017:
Goodwill - gross		1,868		2,874		84		31		214		5,071
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill	$	604	$	738	$	84	$	31	$	137	$	1,594

Separate accounts

Long-Duration Contracts

Other liabilities

Foreign currency

Future Application of Accounting Standards

Revenue Recognition

Recognition and Measurement of Financial Assets and Financial Liabilities

Leases

Financial Instruments - Credit Losses

Classification of Certain Cash Receipts and Cash Payments

Intra-Entity Transfers of Assets Other than Inventory

Restricted Cash

Simplifying the Test for Goodwill Impairment

Gains and Losses from the Derecognition of Nonfinancial Assets

Improving the Presentation of Net Periodic Pension and Postretirement Benefit Cost

Premium Amortization on Purchased Callable Debt Securities

Modification of Share-Based Payment Awards

Derivatives and Hedging

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

We plan to early adopt the standard using a retrospective approach effective January 1, 2018. For more information on the adoption of the Tax Act, see Note 23.

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Adopted

Accounting Standards Adopted During 2017

Derivative Contract Novations

Contingent Put and Call Options in Debt Instruments

Simplifying the Transition to the Equity Method of Accounting

Interest Held through Related Parties that are under Common Control

Clarifying the Definition of a Business

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2017

SEGMENT INFORMATION

Schedule of continuing operations by reportable segment

				Net						Adjusted
		Total		Investment		Interest	Amortization			Pre-Tax
(in millions)		Revenues		Income		Expense		of DAC		Income (Loss)
2017
General Insurance
North America	$	14,600	$	3,145	$	31	$	1,305	$	(232)
International		15,094		523		(9)		2,460		(581)
Total General Insurance		29,694		3,668		22		3,765		(813)
Life and Retirement
Individual Retirement		5,514		4,013		58		415		2,289
Group Retirement		2,848		2,164		32		84		1,004
Life Insurance		4,056		1,044		13		239		274
Institutional Markets		3,168		595		6		5		264
Total Life and Retirement		15,586		7,816		109		743		3,831
Other Operations		1,413		53		968		(9)		(1,405)
Legacy Portfolio		4,391		2,776		122		76		1,470
AIG Consolidation and elimination		(308)		(280)		(53)		4		75
Total AIG Consolidated adjusted revenues and adjusted
pre-tax income	$	50,776	$	14,033	$	1,168	$	4,579	$	3,158
Reconciling Items from adjusted pre-tax income to
pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed
living benefits		146		146		-		-		146
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		-		-		(291)		303
Other income (expense) - net		(49)		-		-		-		-
Gain on extinguishment of debt		-		-		-		-		5
Net realized capital losses		(1,380)		-		-		-		(1,380)
Income from divested businesses		-		-		-		-		68
Non-operating litigation reserves and settlements		27		-		-		-		129
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		(303)
Net loss reserve discount (benefit) charge		-		-		-		-		(187)
Pension expense related to a one-time lump sum payment to
former employees		-		-		-		-		(60)
Restructuring and other costs		-		-		-		-		(413)
Revenues and Pre-tax income	$	49,520	$	14,179	$	1,168	$	4,288	$	1,466
2016
General Insurance
North America	$	17,005	$	3,041	$	28	$	1,444	$	(2,399)
International		16,135		513		-		2,677		348
Total General Insurance		33,140		3,554		28		4,121		(2,051)
Life and Retirement
Individual Retirement		5,758		3,878		50		298		2,269
Group Retirement		2,769		2,146		26		129		931
Life Insurance		3,818		1,035		12		182		(37)
Institutional Markets		1,433		563		4		4		265
Total Life and Retirement		13,778		7,622		92		613		3,428
Other Operations		2,517		207		978		72		(1,011)
Legacy Portfolio		5,250		2,913		282		108		1,007
AIG Consolidation and elimination		(494)		(351)		(120)		(117)		42
Total AIG Consolidated adjusted revenues and adjusted
pre-tax income	$	54,191	$	13,945	$	1,260	$	4,797	$	1,415
Reconciling Items from adjusted pre-tax income to
pre-tax income:
Changes in fair value of securities used to hedge guaranteed
living benefits		120		120		-		-		120
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		-		-		(276)		195
Other income (expense) - net		(44)		-		-		-		-
Loss on extinguishment of debt		-		-		-		-		(74)
Net realized capital losses		(1,944)		-		-		-		(1,944)
Loss from divested businesses		-		-		-		-		545
Non-operating litigation reserves and settlements		44		-		-		-		41
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		42
Net loss reserve discount (benefit) charge		-		-		-		-		427
Pension expense related to a one-time lump sum payment to
former employees		-		-		-		-		(147)
Restructuring and other costs		-		-		-		-		(694)
Revenues and Pre-tax income	$	52,367	$	14,065	$	1,260	$	4,521	$	(74)
2015
General Insurance
North America	$	18,482	$	3,196	$	13	$	1,699	$	558
International		16,186		550		-		2,620		70
Total General Insurance		34,668		3,746		13		4,319		628
Life and Retirement
Individual Retirement		6,450		3,805		27		431		1,812
Group Retirement		2,834		2,192		15		50		1,100
Life Insurance		3,771		1,034		7		311		(51)
Institutional Markets		2,267		510		3		2		263
Total Life and Retirement		15,322		7,541		52		794		3,124
Other Operations		2,326		196		1,027		47		(825)
Legacy Portfolio		5,771		2,928		292		102		1,133
AIG Consolidation and elimination		(496)		(315)		(103)		(26)		(76)
Total AIG Consolidated adjusted revenues and adjusted
pre-tax income	$	57,591	$	14,096	$	1,281	$	5,236	$	3,984
Reconciling Items from adjusted pre-tax income to
pre-tax income:
Changes in fair value of securities used to hedge guaranteed
living benefits		(43)		(43)		-		-		(43)
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		-		-		-		(15)
Other income (expense) - net		(43)		-		-		-		-
Loss on extinguishment of debt		-		-		-		-		(756)
Net realized capital gains		776		-		-		-		776
Loss from divested businesses		(48)		-		-		-		(59)
Non-operating litigation reserves and settlements		94		-		-		-		82
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		(263)
Net loss reserve discount (benefit) charge		-		-		-		-		71
Restructuring and other costs		-		-		-		-		(496)
Revenues and Pre-tax income	$	58,327	$	14,053	$	1,281	$	5,236	$	3,281

Schedule of year-end identifiable assets and capital expenditures by reportable segment

	Year-End Identifiable Assets				Capital Expenditures
(in millions)		2017		2016		2017		2016
General Insurance companies	$	114,841	$	118,287	$	239	$	685
Life and Retirement companies		289,457		269,813		88		85
Other		105,425		122,016		156		349
AIG Consolidation and Elimination		(11,422)		(11,852)		-		-
Total Assets	$	498,301	$	498,264	$	483	$	1,119

Schedule of entity's consolidated operations and long-lived assets by major geographic area

							Real Estate and Other Fixed Assets,
	Total Revenues^*						Net of Accumulated Depreciation
(in millions)		2017		2016		2015		2017		2016		2015
North America	$	34,149	$	36,871	$	41,680	$	1,630	$	1,326	$	1,819
International		15,371		15,496		16,647		892		1,334		1,316
Consolidated	$	49,520	$	52,367	$	58,327	$	2,522	$	2,660	$	3,135

* Revenues are generally reported according to the geographic location of the reporting unit. International revenues consists of revenues from our General Insurance International operating segment.

HELD-FOR-SALE CLASSIFICATION (Tables)

12 Months Ended

Dec. 31, 2017

HELD-FOR-SALE CLASSIFICATION

Summary of assets and liabilities held for sale

		December 31,
(in millions)		2016
Assets:
Fixed maturity securities	$	6,045
Equity securities		149
Mortgage and other loans receivable, net		137
Other invested assets		2
Short-term investments		130
Cash		133
Accrued investment income		21
Premiums and other receivables, net of allowance		351
Reinsurance assets, net of allowance		8
Deferred policy acquisition costs		471
Other assets		273
Assets of businesses held for sale		7,720
Less: Loss Accrual		(521)
Total assets held for sale	$	7,199
Liabilities:
Liability for unpaid losses and loss adjustment expenses	$	402
Unearned premiums		297
Future policy benefits for life and accident and health insurance contracts		4,579
Other policyholder funds		378
Long-term debt		-
Other liabilities		450
Total liabilities held for sale	$	6,106

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-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
-Section 50
-Paragraph 5A
-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
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2017

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

December 31, 2017							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	$	201	$	2,455	$	-	$	-	$	-	$	2,656
Obligations of states, municipalities and political subdivisions		-		16,240		2,404		-		-		18,644
Non-U.S. governments		20		15,631		8		-		-		15,659
Corporate debt		-		133,003		1,173		-		-		134,176
RMBS		-		21,098		16,136		-		-		37,234
CMBS		-		13,217		624		-		-		13,841
CDO/ABS		-		8,131		8,651		-		-		16,782
Total bonds available for sale		221		209,775		28,996		-		-		238,992
Other bond securities:
U.S. government and government sponsored entities		238		2,564		-		-		-		2,802
Obligations of states, municipalities and political subdivisions		-		-		-		-		-		-
Non-U.S. governments		-		57		-		-		-		57
Corporate debt		-		1,891		18		-		-		1,909
RMBS		-		421		1,464		-		-		1,885
CMBS		-		485		74		-		-		559
CDO/ABS		-		604		4,956		-		-		5,560
Total other bond securities		238		6,022		6,512		-		-		12,772
Equity securities available for sale:
Common stock		1,061		-		-		-		-		1,061
Preferred stock		18		515		-		-		-		533
Mutual funds		110		4		-		-		-		114
Total equity securities available for sale		1,189		519		-		-		-		1,708
Other equity securities		589		-		-		-		-		589
Mortgage and other loans receivable		-		-		5		-		-		5
Other invested assets^(a)		-		1		250		-		-		251
Derivative assets:
Interest rate contracts		1		2,170		-		-		-		2,171
Foreign exchange contracts		-		827		4		-		-		831
Equity contracts		188		252		82		-		-		522
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		20		-		-		20
Counterparty netting and cash collateral		-		-		-		(1,464)		(1,159)		(2,623)
Total derivative assets		189		3,249		107		(1,464)		(1,159)		922
Short-term investments		2,078		537		-		-		-		2,615
Separate account assets		87,141		5,657		-		-		-		92,798
Total	$	91,645	$	225,760	$	35,870	$	(1,464)	$	(1,159)	$	350,652
Liabilities:
Policyholder contract deposits	$	-	$	14	$	4,136	$	-	$	-	$	4,150
Other policyholder funds		-		-		-		-		-		-
Derivative liabilities:
Interest rate contracts		2		2,176		22		-		-		2,200
Foreign exchange contracts		-		1,241		4		-		-		1,245
Equity contracts		2		19		-		-		-		21
Credit contracts		-		14		263		-		-		277
Other contracts		-		-		5		-		-		5
Counterparty netting and cash collateral		-		-		-		(1,464)		(1,249)		(2,713)
Total derivative liabilities		4		3,450		294		(1,464)		(1,249)		1,035
Long-term debt		-		2,888		-		-		-		2,888
Other liabilities		46		43		-		-		-		89
Total	$	50	$	6,395	$	4,430	$	(1,464)	$	(1,249)	$	8,162

December 31, 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	$	63	$	1,929	$	-	$	-	$	-	$	1,992
Obligations of states, municipalities and political subdivisions		-		22,732		2,040		-		-		24,772
Non-U.S. governments		52		14,466		17		-		-		14,535
Corporate debt		-		131,047		1,133		-		-		132,180
RMBS		-		20,468		16,906		-		-		37,374
CMBS		-		12,231		2,040		-		-		14,271
CDO/ABS		-		8,578		7,835		-		-		16,413
Total bonds available for sale		115		211,451		29,971		-		-		241,537
Other bond securities:
U.S. government and government sponsored entities		-		2,939		-		-		-		2,939
Non-U.S. governments		-		51		-		-		-		51
Corporate debt		-		1,755		17		-		-		1,772
RMBS		-		420		1,605		-		-		2,025
CMBS		-		448		155		-		-		603
CDO/ABS		-		905		5,703		-		-		6,608
Total other bond securities		-		6,518		7,480		-		-		13,998
Equity securities available for sale:
Common stock		1,056		9		-		-		-		1,065
Preferred stock		752		-		-		-		-		752
Mutual funds		260		1		-		-		-		261
Total equity securities available for sale		2,068		10		-		-		-		2,078
Other equity securities		482		-		-		-		-		482
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		-		1		204		-		-		205
Derivative assets:
Interest rate contracts		-		2,328		-		-		-		2,328
Foreign exchange contracts		-		1,320		-		-		-		1,320
Equity contracts		188		59		58		-		-		305
Credit contracts		-		-		2		-		-		2
Other contracts		-		6		16		-		-		22
Counterparty netting and cash collateral		-		-		-		(1,265)		(903)		(2,168)
Total derivative assets		188		3,713		76		(1,265)		(903)		1,809
Short-term investments		2,660		681		-		-		-		3,341
Separate account assets		77,318		5,654		-		-		-		82,972
Total	$	82,831	$	228,028	$	37,742	$	(1,265)	$	(903)	$	346,433
Liabilities:
Policyholder contract deposits	$	-	$	25	$	3,033	$	-	$	-	$	3,058
Other policyholder funds		5		-		-		-		-		5
Derivative liabilities:
Interest rate contracts		-		3,039		38		-		-		3,077
Foreign exchange contracts		-		1,358		11		-		-		1,369
Equity contracts		12		7		-		-		-		19
Credit contracts		-		-		331		-		-		331
Other contracts		-		1		5		-		-		6
Counterparty netting and cash collateral		-		-		-		(1,265)		(1,521)		(2,786)
Total derivative liabilities		12		4,405		385		(1,265)		(1,521)		2,016
Long-term debt		-		3,357		71		-		-		3,428
Other liabilities		-		-		-		-		-		-
Total	$	17	$	7,787	$	3,489	$	(1,265)	$	(1,521)	$	8,507

(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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,040	$	5	$	167	$	216	$	8	$	(32)	$	-	$	-	$	2,404	$	-
Non-U.S. governments		17		(9)		9		(9)		-		-		-		-		8		-
Corporate debt		1,133		(3)		20		(259)		886		(604)		-		-		1,173		-
RMBS		16,906		1,071		942		(2,763)		19		(39)		-		-		16,136		-
CMBS		2,040		35		11		(748)		20		(734)		-		-		624		-
CDO/ABS		7,835		(19)		155		743		-		(63)		-		-		8,651		-
Total bonds available
for sale		29,971		1,080		1,304		(2,820)		933		(1,472)		-		-		28,996		-
Other bond securities:
Corporate debt		17		3		-		10		-		(12)		-		-		18		1
RMBS		1,605		191		-		(313)		14		(33)		-		-		1,464		113
CMBS		155		4		-		24		9		(118)		-		-		74		5
CDO/ABS		5,703		841		-		(1,582)		-		(6)		-		-		4,956		362
Total other bond securities		7,480		1,039		-		(1,861)		23		(169)		-		-		6,512		481
Equity securities available
for sale:
Common stock		-		-		-		1		-		(1)		-		-		-		-
Total equity securities
available for sale		-		-		-		1		-		(1)		-		-		-		-
Other equity securities		-		-		-		-		-		-		-		-		-		-
Mortgage and other loans
receivable		11		-		-		(6)		-		-		-		-		5		-
Other invested assets		204		14		(6)		39		-		(1)		-		-		250		6
Total	$	37,666	$	2,133	$	1,298	$	(4,647)	$	956	$	(1,643)	$	-	$	-	$	35,763	$	487
				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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
Liabilities:
Policyholder contract deposits	$	3,033	$	807	$	-	$	296	$	-	$	-	$	-	$	-	$	4,136	$	(499)
Derivative liabilities, net:
Interest rate contracts		38		(5)		-		(11)		-		-		-		-		22		5
Foreign exchange
contracts		11		(2)		-		(9)		-		-		-		-		-		3
Equity contracts		(58)		(41)		-		17		-		-		-		-		(82)		35
Credit contracts		329		(62)		-		(5)		-		-		-		-		262		61
Other contracts		(11)		(74)		-		73		(3)		-		-		-		(15)		77
Total derivative
liabilities, net^(a)		309		(184)		-		65		(3)		-		-		-		187		181
Long-term debt^(b)		71		16		-		(87)		-		-		-		-		-		-
Total	$	3,413	$	639	$	-	$	274	$	(3)	$	-	$	-	$	-	$	4,323	$	(318)

				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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,124	$	5	$	-	$	61	$	2	$	(152)	$	-	$	-	$	2,040	$	-
Non-U.S. governments		32		(3)		(12)		7		1		(5)		-		(3)		17		-
Corporate debt		1,370		(13)		(42)		(111)		920		(977)		(14)		-		1,133		-
RMBS		16,537		970		(24)		(878)		330		(29)		-		-		16,906		-
CMBS		2,585		72		(132)		(323)		23		(185)		-		-		2,040		-
CDO/ABS		6,169		34		(111)		1,720		23		-		-		-		7,835		-
Total bonds available
for sale		28,817		1,065		(321)		476		1,299		(1,348)		(14)		(3)		29,971		-
Other bond securities:
Corporate debt		17		-		-		-		-		-		-		-		17		-
RMBS		1,581		43		-		(1)		-		(18)		-		-		1,605		(24)
CMBS		193		-		-		(38)		-		-		-		-		155		(1)
CDO/ABS		7,055		271		-		(1,623)		65		(65)		-		-		5,703		(393)
Total other bond securities		8,846		314		-		(1,662)		65		(83)		-		-		7,480		(418)
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		1		-		(75)		-		(54)		-		-		204		8
Total	$	38,020	$	1,380	$	(321)	$	(1,275)	$	1,364	$	(1,485)	$	(14)	$	(3)	$	37,666	$	(410)
				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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
Liabilities:
Policyholder contract
deposits	$	2,289	$	441	$	-	$	303	$	-	$	-	$	-	$	-	$	3,033	$	(366)
Derivative liabilities, net:
Interest rate contracts		50		(8)		-		(4)		-		-		-		-		38		6
Foreign exchange
contracts		7		5		-		(1)		-		-		-		-		11		(4)
Equity contracts		(54)		(10)		-		6		-		-		-		-		(58)		10
Credit contracts		505		(81)		-		(95)		-		-		-		-		329		71
Other contracts		48		(10)		-		(53)		-		4		-		-		(11)		128
Total derivatives
liabilities, net^(a)		556		(104)		-		(147)		-		4		-		-		309		211
Long-term debt^(b)		183		4		-		(3)		-		(113)		-		-		71		(1)
Total	$	3,028	$	341	$	-	$	153	$	-	$	(109)	$	-	$	-	$	3,413	$	(156)

(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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,040	$	5	$	167	$	216	$	8	$	(32)	$	-	$	-	$	2,404	$	-
Non-U.S. governments		17		(9)		9		(9)		-		-		-		-		8		-
Corporate debt		1,133		(3)		20		(259)		886		(604)		-		-		1,173		-
RMBS		16,906		1,071		942		(2,763)		19		(39)		-		-		16,136		-
CMBS		2,040		35		11		(748)		20		(734)		-		-		624		-
CDO/ABS		7,835		(19)		155		743		-		(63)		-		-		8,651		-
Total bonds available
for sale		29,971		1,080		1,304		(2,820)		933		(1,472)		-		-		28,996		-
Other bond securities:
Corporate debt		17		3		-		10		-		(12)		-		-		18		1
RMBS		1,605		191		-		(313)		14		(33)		-		-		1,464		113
CMBS		155		4		-		24		9		(118)		-		-		74		5
CDO/ABS		5,703		841		-		(1,582)		-		(6)		-		-		4,956		362
Total other bond securities		7,480		1,039		-		(1,861)		23		(169)		-		-		6,512		481
Equity securities available
for sale:
Common stock		-		-		-		1		-		(1)		-		-		-		-
Total equity securities
available for sale		-		-		-		1		-		(1)		-		-		-		-
Other equity securities		-		-		-		-		-		-		-		-		-		-
Mortgage and other loans
receivable		11		-		-		(6)		-		-		-		-		5		-
Other invested assets		204		14		(6)		39		-		(1)		-		-		250		6
Total	$	37,666	$	2,133	$	1,298	$	(4,647)	$	956	$	(1,643)	$	-	$	-	$	35,763	$	487
				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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
Liabilities:
Policyholder contract deposits	$	3,033	$	807	$	-	$	296	$	-	$	-	$	-	$	-	$	4,136	$	(499)
Derivative liabilities, net:
Interest rate contracts		38		(5)		-		(11)		-		-		-		-		22		5
Foreign exchange
contracts		11		(2)		-		(9)		-		-		-		-		-		3
Equity contracts		(58)		(41)		-		17		-		-		-		-		(82)		35
Credit contracts		329		(62)		-		(5)		-		-		-		-		262		61
Other contracts		(11)		(74)		-		73		(3)		-		-		-		(15)		77
Total derivative
liabilities, net^(a)		309		(184)		-		65		(3)		-		-		-		187		181
Long-term debt^(b)		71		16		-		(87)		-		-		-		-		-		-
Total	$	3,413	$	639	$	-	$	274	$	(3)	$	-	$	-	$	-	$	4,323	$	(318)

				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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,124	$	5	$	-	$	61	$	2	$	(152)	$	-	$	-	$	2,040	$	-
Non-U.S. governments		32		(3)		(12)		7		1		(5)		-		(3)		17		-
Corporate debt		1,370		(13)		(42)		(111)		920		(977)		(14)		-		1,133		-
RMBS		16,537		970		(24)		(878)		330		(29)		-		-		16,906		-
CMBS		2,585		72		(132)		(323)		23		(185)		-		-		2,040		-
CDO/ABS		6,169		34		(111)		1,720		23		-		-		-		7,835		-
Total bonds available
for sale		28,817		1,065		(321)		476		1,299		(1,348)		(14)		(3)		29,971		-
Other bond securities:
Corporate debt		17		-		-		-		-		-		-		-		17		-
RMBS		1,581		43		-		(1)		-		(18)		-		-		1,605		(24)
CMBS		193		-		-		(38)		-		-		-		-		155		(1)
CDO/ABS		7,055		271		-		(1,623)		65		(65)		-		-		5,703		(393)
Total other bond securities		8,846		314		-		(1,662)		65		(83)		-		-		7,480		(418)
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		1		-		(75)		-		(54)		-		-		204		8
Total	$	38,020	$	1,380	$	(321)	$	(1,275)	$	1,364	$	(1,485)	$	(14)	$	(3)	$	37,666	$	(410)
				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		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
Liabilities:
Policyholder contract
deposits	$	2,289	$	441	$	-	$	303	$	-	$	-	$	-	$	-	$	3,033	$	(366)
Derivative liabilities, net:
Interest rate contracts		50		(8)		-		(4)		-		-		-		-		38		6
Foreign exchange
contracts		7		5		-		(1)		-		-		-		-		11		(4)
Equity contracts		(54)		(10)		-		6		-		-		-		-		(58)		10
Credit contracts		505		(81)		-		(95)		-		-		-		-		329		71
Other contracts		48		(10)		-		(53)		-		4		-		-		(11)		128
Total derivatives
liabilities, net^(a)		556		(104)		-		(147)		-		4		-		-		309		211
Long-term debt^(b)		183		4		-		(3)		-		(113)		-		-		71		(1)
Total	$	3,028	$	341	$	-	$	153	$	-	$	(109)	$	-	$	-	$	3,413	$	(156)

(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
December 31, 2017
Assets:
Bonds available for sale	$	1,127	$	(49)	$	2	$	1,080
Other bond securities		308		-		731		1,039
Equity securities available for sale		-		-		-		-
Other equity securities		-		-		-		-
Other invested assets		9		6		(1)		14
December 31, 2016
Assets:
Bonds available for sale	$	1,180	$	(118)	$	3	$	1,065
Other bond securities		110		44		160		314
Equity securities available for sale		-		-		-		-
Other equity securities		-		-		-		-
Other invested assets		13		39		(51)		1
		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
December 31, 2017
Liabilities:
Policyholder contract deposits		-		807		-		807
Derivative liabilities, net		-		(17)		(167)		(184)
Long-term debt		-		-		16		16
December 31, 2016
Liabilities:
Policyholder contract deposits		-		441		-		441
Derivative liabilities, net		-		(8)		(96)		(104)
Long-term debt		-		-		4		4

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

								Purchases, Sales,
						Issuances and		Issuances and
(in millions)		Purchases		Sales		Settlements^(a)		Settlements, Net^(a)
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	286	$	(16)	$	(54)	$	216
Non-U.S. governments		9		(1)		(17)		(9)
Corporate debt		36		(59)		(236)		(259)
RMBS		1,199		(260)		(3,702)		(2,763)
CMBS		75		(146)		(677)		(748)
CDO/ABS		2,099		(243)		(1,113)		743
Total bonds available for sale		3,704		(725)		(5,799)		(2,820)
Other bond securities:
Corporate debt		11		-		(1)		10
RMBS		167		(218)		(262)		(313)
CMBS		42		(11)		(7)		24
CDO/ABS		9		(65)		(1,526)		(1,582)
Total other bond securities		229		(294)		(1,796)		(1,861)
Equity securities available for sale		13		-		(12)		1
Other equity securities		-		-		-		-
Mortgage and other loans receivable		-		(6)		-		(6)
Other invested assets		107		(46)		(22)		39
Total assets	$	4,053	$	(1,071)	$	(7,629)	$	(4,647)
Liabilities:
Policyholder contract deposits	$	-	$	344	$	(48)	$	296
Derivative liabilities, net		(4)		-		69		65
Long-term debt^(b)		-		-		(87)		(87)
Total liabilities	$	(4)	$	344	$	(66)	$	274
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	164	$	(8)	$	(95)	$	61
Non-U.S. governments		13		-		(6)		7
Corporate debt		29		(25)		(115)		(111)
RMBS		2,635		(81)		(3,432)		(878)
CMBS		156		(98)		(381)		(323)
CDO/ABS		2,460		(99)		(641)		1,720
Total bonds available for sale		5,457		(311)		(4,670)		476
Other bond securities:
Corporate debt		-		-		-		-
RMBS		343		(104)		(240)		(1)
CMBS		53		(86)		(5)		(38)
CDO/ABS		69		(458)		(1,234)		(1,623)
Total other bond securities		465		(648)		(1,479)		(1,662)
Equity securities available for sale		-		-		-		-
Other equity securities		14		-		(28)		(14)
Mortgage and other loans receivable		1		(2)		1		-
Other invested assets		37		(10)		(102)		(75)
Total assets	$	5,974	$	(971)	$	(6,278)	$	(1,275)
Liabilities:
Policyholder contract deposits	$	-	$	437	$	(134)	$	303
Derivative liabilities, net		(6)		-		(141)		(147)
Long-term debt^(b)		-		-		(3)		(3)
Total liabilities	$	(6)	$	437	$	(278)	$	153

(a) There were no issuances during the years ended December 31, 2017 and 2016.

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

Significant unobservable inputs used for recurring fair value measurements

		Fair Value at
		December 31,	Valuation		Range
(in millions)		2017	Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states,
municipalities and
political subdivisions	$	1,620	Discounted cash flow	Yield	3.55% - 4.32% (3.94%)

Corporate debt		1,086	Discounted cash flow	Yield	3.26% - 12.22% (7.74%)

RMBS^(a)		16,156	Discounted cash flow	Constant prepayment rate	3.97% - 13.42% (8.69%)
				Loss severity	43.15% - 77.15% (60.15%)
				Constant default rate	3.31% - 8.30% (5.80%)
				Yield	2.73% - 5.19% (3.96%)

CDO/ABS^(a)		5,254	Discounted cash flow	Yield	3.38% - 4.78% (4.08%)

CMBS		487	Discounted cash flow	Yield	2.22% - 7.77% (4.99%)

Liabilities:

Embedded derivatives
within Policyholder
contract deposits:

GMWB		1,994	Discounted cash flow	Equity volatility	6.45% - 51.25%
				Base lapse rate	0.35% - 14.00%
				Dynamic lapse multiplier	30.00% - 170.00%
				Mortality multiplier^(c)	40.00% - 153.00%
				Utilization	90.00% - 100.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		1,603	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier^(c)	42.00% - 162.00%
				Option Budget	1.00% - 4.00%

Indexed Life		515	Discounted cash flow	Base lapse rate	2.00% - 19.00%
				Mortality rate	0.00% - 40.00%


		Fair Value at
		December 31,	Valuation		Range
(in millions)		2016	Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states,
municipalities and
political subdivisions	$	1,248	Discounted cash flow	Yield	4.12% - 4.91% (4.52%)

Corporate debt		498	Discounted cash flow	Yield	3.41% - 6.38% (4.90%)

RMBS^(a)		17,412	Discounted cash flow	Constant prepayment rate	3.95% - 6.54% (5.25%)
				Loss severity	47.51% - 80.98% (64.24%)
				Constant default rate	3.28% - 8.64% (5.96%)
				Yield	3.28% - 5.87% (4.57%)

CDO/ABS^(a)		4,368	Discounted cash flow	Yield	3.67% - 5.85% (4.76%)

CMBS		1,511	Discounted cash flow	Yield	0.48% - 10.21% (5.34%)

Liabilities:

Embedded derivatives
within Policyholder
contract deposits:

GMWB		1,777	Discounted cash flow	Equity volatility	13.00% - 50.00%
				Base lapse rate	0.50% - 20.00%
				Dynamic lapse multiplier	30.00% - 170.00%
				Mortality multiplier^(c)	42.00% - 161.00%
				Utilization	100.00%
				Equity / interest rate correlation	20.00% - 40.00%

Index Annuities		859	Discounted cash flow	Lapse rate	1.00% - 66.00%
				Mortality multiplier^(c)	101.00% - 103.00%
				Option Budget	1.00% - 4.00%

Indexed Life		381	Discounted cash flow	Base lapse rate	2.00% - 19.00%
				Mortality rate	0.00% - 40.00%

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

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

		December 31, 2017				December 31, 2016
			Fair Value Using Net Asset Value Per Share (or its equivalent)				Fair Value Using Net Asset Value Per Share (or its equivalent)

					Unfunded				Unfunded
(in millions)	Investment Category Includes				Commitments				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	$	1,243	$	706	$	1,424	$	750

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		210		187		258		208

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		134		73		137		31

Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		113		42		123		44

Other	Includes multi-strategy, mezzanine, and other strategies		428		219		312		215
Total private equity funds			2,128		1,227		2,254		1,248
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		1,128		-		1,453		9

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,233		-		1,429		-

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		1,011		-		992		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		266		8		416		8


Other	Includes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments		231		4		197		14
Total hedge funds			3,869		12		4,487		31
Total		$	5,997	$	1,239	$	6,741	$	1,279

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

Years Ended December 31,	Gain (Loss)
(in millions)		2017		2016		2015
Assets:
Bond and equity securities	$	1,646	$	447	$	616
Alternative investments^(a)		509		28		36
Other, including Short-term investments		1		-		2
Liabilities:
Long-term debt^(b)		(49)		(9)		(38)
Other liabilities		(2)		-		(3)
Total gain	$	2,105	$	466	$	613

(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

	December 31, 2017						December 31, 2016
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	5	$	5	$	-	$	11	$	8	$	3
Liabilities:
Long-term debt^*	$	2,888	$	2,280	$	608	$	3,428	$	2,628	$	800

* 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							December 31,
(in millions)		Level 1		Level 2		Level 3		Total		2017		2016		2015
December 31, 2017
Other investments	$	-	$	-	$	55	$	55	$	77	$	76	$	189
Investments in life settlements		-		-		-		-		360		397		540
Other assets^*		-		-		-		-		157		19		80
Total	$	-	$	-	$	55	$	55	$	594	$	492	$	809
December 31, 2016
Other investments	$	-	$	-	$	364	$	364
Investments in life settlements		-		-		736		736
Other assets		-		-		2		2
Total	$	-	$	-	$	1,102	$	1,102

* Impairments include $35 million related to other assets that were sold in 2017.

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
December 31, 2017
Assets:
Mortgage and other loans receivable	$	-	$	117	$	37,644	$	37,761	$	37,018
Other invested assets		-		590		6		596		593
Short-term investments		-		7,771		-		7,771		7,771
Cash		2,362		-		-		2,362		2,362
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		387		121,809		122,196		114,326
Other liabilities		-		4,494		-		4,494		4,494
Long-term debt		-		23,930		4,313		28,243		28,752
December 31, 2016
Assets:
Mortgage and other loans receivable	$	-	$	161	$	33,575	$	33,736	$	33,229
Other invested assets		-		955		2,053		3,008		3,474
Short-term investments		-		8,961		-		8,961		8,961
Cash		1,868		-		-		1,868		1,868
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		382		121,742		122,124		112,705
Other liabilities		-		4,196		-		4,196		4,196
Long-term debt		-		23,117		3,333		26,450		27,484

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2017

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)
December 31, 2017
Bonds available for sale:
U.S. government and government sponsored entities	$	2,532	$	160	$	(36)	$	2,656	$	-
Obligations of states, municipalities and political subdivisions		17,377		1,297		(30)		18,644		-
Non-U.S. governments		15,059		717		(117)		15,659		-
Corporate debt		126,310		8,666		(800)		134,176		17
Mortgage-backed, asset-backed and collateralized:
RMBS		34,181		3,273		(220)		37,234		1,568
CMBS		13,538		408		(105)		13,841		42
CDO/ABS		16,464		370		(52)		16,782		29
Total mortgage-backed, asset-backed and collateralized		64,183		4,051		(377)		67,857		1,639
Total bonds available for sale^(b)		225,461		14,891		(1,360)		238,992		1,656
Equity securities available for sale:
Common stock		703		379		(21)		1,061		-
Preferred stock		504		29		-		533		-
Mutual funds		98		16		-		114		-
Total equity securities available for sale		1,305		424		(21)		1,708		-
Total	$	226,766	$	15,315	$	(1,381)	$	240,700	$	1,656
December 31, 2016
Bonds available for sale:
U.S. government and government sponsored entities	$	1,870	$	148	$	(26)	$	1,992	$	-
Obligations of states, municipalities and political subdivisions		24,025		1,001		(254)		24,772		-
Non-U.S. governments		14,018		773		(256)		14,535		-
Corporate debt		126,648		7,271		(1,739)		132,180		(31)
Mortgage-backed, asset-backed and collateralized:
RMBS		35,311		2,541		(478)		37,374		1,212
CMBS		14,054		409		(192)		14,271		45
CDO/ABS		16,315		278		(180)		16,413		39
Total mortgage-backed, asset-backed and collateralized		65,680		3,228		(850)		68,058		1,296
Total bonds available for sale^(b)		232,241		12,421		(3,125)		241,537		1,265
Equity securities available for sale:
Common stock		708		369		(12)		1,065		-
Preferred stock		748		4		-		752		-
Mutual funds		241		23		(3)		261		-
Total equity securities available for sale		1,697		396		(15)		2,078		-
Total	$	233,938	$	12,817	$	(3,140)	$	243,615	$	1,265

(b) At December 31, 2017 and 2016, bonds available for sale held by us that were below investment grade or not rated totaled $31.5 billion and $33.6 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
December 31, 2017
Bonds available for sale:
U.S. government and government sponsored entities	$	770	$	23	$	332	$	13	$	1,102	$	36
Obligations of states, municipalities and political
subdivisions		586		6		646		24		1,232		30
Non-U.S. governments		3,511		54		857		63		4,368		117
Corporate debt		15,578		453		7,291		347		22,869		800
RMBS		6,212		99		3,790		121		10,002		220
CMBS		3,408		46		1,389		59		4,797		105
CDO/ABS		1,455		24		822		28		2,277		52
Total bonds available for sale		31,520		705		15,127		655		46,647		1,360
Equity securities available for sale:
Common stock		136		21		-		-		136		21
Mutual funds		1		-		-		-		1		-
Total equity securities available for sale		137		21		-		-		137		21
Total	$	31,657	$	726	$	15,127	$	655	$	46,784	$	1,381
December 31, 2016
Bonds available for sale:
U.S. government and government sponsored entities	$	720	$	26	$	-	$	-	$	720	$	26
Obligations of states, municipalities and political
subdivisions		5,814		221		231		33		6,045		254
Non-U.S. governments		3,865		162		489		94		4,354		256
Corporate debt		28,184		1,013		6,080		726		34,264		1,739
RMBS		8,794		252		4,045		226		12,839		478
CMBS		4,469		152		479		40		4,948		192
CDO/ABS		5,362		102		1,961		78		7,323		180
Total bonds available for sale		57,208		1,928		13,285		1,197		70,493		3,125
Equity securities available for sale:
Common stock		125		12		-		-		125		12
Mutual funds		64		3		-		-		64		3
Total equity securities available for sale		189		15		-		-		189		15
Total	$	57,397	$	1,943	$	13,285	$	1,197	$	70,682	$	3,140

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
December 31, 2017	Available for Sale				Position Available for Sale
(in millions)		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	7,932	$	8,071	$	1,526	$	1,515
Due after one year through five years		47,179		49,093		7,764		7,571
Due after five years through ten years		42,617		43,944		11,559		11,143
Due after ten years		63,550		70,027		9,705		9,342
Mortgage-backed, asset-backed and collateralized		64,183		67,857		17,453		17,076
Total	$	225,461	$	238,992	$	48,007	$	46,647
December 31, 2016
Due in one year or less	$	7,796	$	7,994	$	604	$	581
Due after one year through five years		49,200		51,958		6,002		5,841
Due after five years through ten years		43,308		44,226		16,045		15,332
Due after ten years		66,257		69,301		25,007		23,629
Mortgage-backed, asset-backed and collateralized		65,680		68,058		25,960		25,110
Total	$	232,241	$	241,537	$	73,618	$	70,493

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

	Years Ended December 31,
		2017				2016				2015
		Gross		Gross		Gross		Gross	Gross		Gross
	Realized		Realized		Realized		Realized		Realized		Realized
(in millions)		Gains		Losses		Gains		Losses	Gains		Losses
Fixed maturity securities	$	725	$	300	$	801	$	800	$	517	$	423
Equity securities		107		19		1,072		15		1,060		28
Total	$	832	$	319	$	1,873	$	815	$	1,577	$	451

The fair value of AIG's other securities

		December 31, 2017				December 31, 2016
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	2,802	21	%	$	2,939	20	%
Obligations of states, municipalities and political subdivisions		-	-			-	-
Non-U.S. governments		57	1			51	-
Corporate debt		1,909	14			1,772	12
Mortgage-backed, asset-backed and collateralized:
RMBS		1,885	14			2,025	14
CMBS		559	4			603	4
CDO/ABS and other collateralized^*		5,560	42			6,608	47
Total mortgage-backed, asset-backed and collateralized		8,004	60			9,236	65
Total fixed maturity securities		12,772	96			13,998	97
Equity securities		589	4			482	3
Total	$	13,361	100	%	$	14,480	100	%

* Includes $251 million and $421 million of U.S. government agency backed ABS at December 31, 2017 and 2016, respectively.

Components of other invested assets

December 31,
(in millions)		2017		2016
Alternative investments^{(a) (b)}	$	11,308	$	13,379
Investment real estate^(c)		8,258		6,900
Aircraft asset investments^(d)		206		321
Investments in life settlements		-		2,516
All other investments		1,050		1,422
Total	$	20,822	$	24,538

(b) Approximately 75 percent of our hedge fund portfolio is available for redemption in 2018, an additional 25 percent will be available between 2019 and 2024.

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

The carrying value and ownership percentage of AIA and equity method investments

		2017			2016
		Carrying	Ownership		Carrying	Ownership
(in millions, except percentages)		Value	Percentage		Value	Percentage
Equity method investments	$	9,050	Various	$	10,756	Various

Components of net investment income

Years Ended December 31,
(in millions)		2017		2016		2015
Available for sale fixed maturity securities, including short-term investments	$	10,435	$	11,314	$	11,331
Other fixed maturity securities		660		331		1
Equity securities		34		(5)		99
Interest on mortgage and other loans		1,661		1,526		1,417
Alternative investments^*		1,475		693		1,120
Real estate		144		150		181
Other investments		290		509		432
Total investment income		14,699		14,518		14,581
Investment expenses		520		453		528
Net investment income	$	14,179	$	14,065	$	14,053

Components of net realized capital gains (losses)

Years Ended December 31,
(in millions)		2017		2016		2015
Sales of fixed maturity securities	$	425	$	1	$	94
Sales of equity securities^(a)		88		1,057		1,032
Other-than-temporary impairments:
Severity		(2)		(15)		(13)
Change in intent		(9)		(46)		(233)
Foreign currency declines		(11)		(18)		(57)
Issuer-specific credit events		(234)		(433)		(348)
Adverse projected cash flows		(4)		(47)		(20)
Provision for loan losses		(50)		10		(58)
Foreign exchange transactions		489		(1,226)		416
Variable annuity embedded derivatives, net of related hedges		(1,374)		(1,243)		320
All other derivatives and hedge accounting		(368)		299		78
Impairments on investments in life settlements		(360)		(397)		(540)
Other^(b)		30		114		105
Net realized capital gains (losses)	$	(1,380)	$	(1,944)	$	776

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

	Years Ended
	December 31,
(in millions)		2017		2016
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	4,235	$	2,019
Equity securities		22		(1,155)
Other investments		(195)		(259)
Total increase (decrease) in unrealized appreciation (depreciation) of investments^*	$	4,062	$	605

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

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

Years Ended December 31,
(in millions)		2017		2016		2015
Balance, beginning of year	$	1,098	$	1,747	$	2,659
Increases due to:
Credit impairments on new securities subject to impairment losses		122		204		111
Additional credit impairments on previously impaired securities		74		212		109
Reductions due to:
Credit impaired securities fully disposed of for which there was no
prior intent or requirement to sell		(99)		(296)		(399)
Credit impaired securities for which there is a current intent or
anticipated requirement to sell		-		-		2
Accretion on securities previously impaired due to credit^*		(669)		(767)		(735)
Divested businesses		-		(2)		-
Balance, end of year	$	526	$	1,098	$	1,747

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

(in millions)	At Date of Acquisition
Contractually required payments (principal and interest)	$	36,642
Cash flows expected to be collected^*		30,040
Recorded investment in acquired securities		20,267

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

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

		December 31,		December 31,
(in millions)		2017		2016
Outstanding principal balance	$	14,718	$	16,728
Amortized cost		10,492		11,987
Fair value		12,293		12,922

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

Years Ended December 31,
(in millions)		2017		2016
Balance, beginning of year	$	7,498	$	6,846
Newly purchased PCI securities		190		707
Disposals		(18)		-
Accretion		(797)		(842)
Effect of changes in interest rate indices		(34)		39
Net reclassification from (to) non-accretable difference, including effects of prepayments		662		748
Balance, end of year	$	7,501	$	7,498

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

(in millions)		December 31, 2017		December 31, 2016
Fixed maturity securities available for sale	$	2,911	$	2,389
Other bond securities, at fair value	$	1,585	$	1,799

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
December 31, 2017
Bonds available for sale:
Non-U.S. governments	$	-	$	7	$	19	$	-	$	-	$	26
Corporate debt		-		13		35		-		-		48
Other bond securities:
U.S. government and government sponsored entities		44		-		-		-		-		44
Non-U.S. governments		-		-		11		-		-		11
Corporate debt		-		387		1,065		-		-		1,452
Total	$	44	$	407	$	1,130	$	-	$	-	$	1,581

December 31, 2016
Other bond securities:
Non-U.S. governments	$	-	$	-	$	-	$	51	$	-	$	51
Corporate debt		-		163		860		725		-		1,748
Total	$	-	$	163	$	860	$	776	$	-	$	1,799

	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
December 31, 2017
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	-	$	-	$	-	$	-	$	-
Non-U.S. governments		-		-		18		-		-		18
Corporate debt		-		588		2,231		-		-		2,819
CMBS		-		-		-		-		-		-
Other bond securities:
Non-U.S. governments		-		-		22		-		-		22
Corporate debt		-		-		56		-		-		56
Total	$	-	$	588	$	2,327	$	-	$	-	$	2,915

December 31, 2016
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	21	$	-	$	-	$	-	$	21
Non-U.S. governments		-		-		50		-		-		50
Corporate debt		-		791		1,466		-		-		2,257
CMBS		-		-		61		-		-		61
Total	$	-	$	812	$	1,577	$	-	$	-	$	2,389

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

(in millions)		December 31, 2017		December 31, 2016
Securities collateral pledged to us	$	2,227	$	1,434
Amount sold or repledged by us		46		11

Investment [Line Items]

Summarized financial information of AIG's equity method investees

Years Ended December 31,
(in millions)		2017		2016		2015
Operating results:
Total revenues	$	13,066	$	9,512	$	22,055
Total expenses		(6,835)		(7,361)		(3,898)
Net income	$	6,231	$	2,151	$	18,157
At December 31,
(in millions)				2017		2016
Balance sheet:
Total assets			$	132,708	$	158,306
Total liabilities			$	(35,585)	$	(37,336)

LENDING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2017

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable

	December 31,			December 31,
(in millions)		2017		2016
Commercial mortgages^*	$	28,596	$	25,042
Residential mortgages		5,398		3,828
Life insurance policy loans		2,295		2,367
Commercial loans, other loans and notes receivable		1,056		2,300
Total mortgage and other loans receivable		37,345		33,537
Allowance for credit losses		(322)		(297)
Mortgage and other loans receivable, net	$	37,023	$	33,240

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

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
December 31, 2017
Loan-to-Value Ratios^(b)
Less than 65%	$	18,000	$	1,525	$	351	$	19,876
65% to 75%		6,038		193		184		6,415
76% to 80%		569		40		-		609
Greater than 80%		1,416		206		74		1,696
Total commercial mortgages	$	26,023	$	1,964	$	609	$	28,596

December 31, 2016
Loan-to-Value Ratios^(b)
Less than 65%	$	13,998	$	1,694	$	232	$	15,924
65% to 75%		5,946		575		62		6,583
76% to 80%		1,246		174		47		1,467
Greater than 80%		471		392		205		1,068
Total commercial mortgages	$	21,661	$	2,835	$	546	$	25,042

Schedule of credit quality indicators for the commercial mortgage loans

	Number															Percent
December 31, 2017	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total^(c)	Total $
Credit Quality Performance
Indicator:
In good standing	778	$	8,163	$	8,585	$	5,338	$	2,023	$	2,373	$	1,960	$	28,442	99	%
Restructured^(a)	5		-		115		23		-		16		-		154	1
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	783	$	8,163	$	8,700	$	5,361	$	2,023	$	2,389	$	1,960	$	28,596	100	%
Allowance for credit losses:
Specific			-		3		1		-		1		-		5	-	%
General			72		94		37		6		15		18		242	1
Total allowance for credit losses		$	72	$	97	$	38	$	6	$	16	$	18	$	247	1	%
December 31, 2016
(dollars in millions)
Credit Quality Performance
Indicator:
In good standing	784	$	6,005	$	7,830	$	5,179	$	1,898	$	2,373	$	1,589	$	24,874	99	%
Restructured^(a)	4		-		134		18		-		16		-		168	1
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	788	$	6,005	$	7,964	$	5,197	$	1,898	$	2,389	$	1,589	$	25,042	100	%
Allowance for credit losses:
Specific		$	-	$	3	$	1	$	6	$	1	$	-	$	11	-	%
General			35		72		41		7		13		15		183	1
Total allowance for credit losses		$	35	$	75	$	42	$	13	$	14	$	15	$	194	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 below.

(b) Does not reflect allowance for credit losses.

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

	2017						2016						2015
Years Ended December 31,		Commercial		Other				Commercial		Other				Commercial		Other
(in millions)		Mortgages		Loans		Total		Mortgages		Loans		Total		Mortgages		Loans		Total
Allowance, beginning of year	$	194	$	103	$	297	$	171	$	137	$	308	$	159	$	112	$	271
Loans charged off		(22)		(3)		(25)		(13)		(2)		(15)		(23)		(6)		(29)
Recoveries of loans previously
charged off		-		1		1		11		-		11		4		1		5
Net charge-offs		(22)		(2)		(24)		(2)		(2)		(4)		(19)		(5)		(24)
Provision for loan losses		75		(26)		49		25		(32)		(7)		31		27		58
Other		-		-		-		-		-		-		-		3		3
Allowance, end of year	$	247 ^*	$	75	$	322	$	194 ^*	$	103	$	297	$	171 ^*	$	137	$	308

REINSURANCE (Tables)

12 Months Ended

Dec. 31, 2017

Effects of Reinsurance [Line Items]

Supplemental information for gross loss and benefit reserves net of ceded reinsurance

At December 31,		2017				2016
		As		Net of		As		Net of
(in millions)		Reported	Reinsurance			Reported	Reinsurance
Liability for unpaid losses and loss adjustment expenses	$	(78,393)	$	(51,685)	$	(77,077)	$	(61,545)
Future policy benefits for life and accident and health insurance contracts		(45,432)		(44,457)		(42,204)		(41,140)
Reserve for unearned premiums		(19,030)		(15,890)		(19,634)		(16,280)
Reinsurance assets^(a)		30,823				19,950

(a) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses.

Schedule of long-duration insurance in force ceded to other insurance companies

At December 31,
(in millions)		2017		2016		2015
Long-duration insurance in force ceded	$	202,402	$	174,363	$	177,025

Short-Duration Reinsurance

Effects of Reinsurance [Line Items]

Schedule of insurance premiums written and earned

	Years Ended December 31,
(in millions)		2017		2016		2015
Premiums written:
Direct	$	30,205	$	33,970	$	37,698
Assumed		3,084		2,824		2,972
Ceded		(7,533)		(7,561)		(7,604)
Net	$	25,756	$	29,233	$	33,066
Premiums earned:
Direct	$	30,904	$	34,869	$	37,105
Assumed		3,373		2,962		2,659
Ceded		(7,902)		(7,284)		(7,593)
Net	$	26,375	$	30,547	$	32,171

Long-Duration Reinsurance

Effects of Reinsurance [Line Items]

Schedule of insurance premiums written and earned

Years Ended December 31,
(in millions)		2017		2016		2015
Gross premiums	$	5,338	$	4,732	$	5,240
Ceded premiums		(809)		(789)		(756)
Net	$	4,529	$	3,943	$	4,484

DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2017

DEFERRED POLICY ACQUISITION COSTS

Rollforward of DAC

Years Ended December 31,
(in millions)		2017		2016		2015
Balance, beginning of year	$	11,042	$	11,115	$	9,828
Dispositions		(35)		(110)		-
Acquisition costs deferred		4,820		5,216		5,825
Amortization expense		(4,288)		(4,521)		(5,236)
Change in net unrealized gains (losses) on securities		(505)		(259)		848
Other, including foreign exchange		(40)		72		(150)
Reclassified to Assets held for sale		-		(471)		-
Balance, end of year^*	$	10,994	$	11,042	$	11,115
Supplemental Information:
VOBA amortization expense included in DAC amortization		20		40		64
VOBA, end of year included in DAC balance		381		393		453

VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2017

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^(e)		Structured Investment Vehicle		Affordable Housing Partnerships		Other		Total
December 31, 2017
Assets:
Bonds available for sale	$	-	$	9,632	$	-	$	-	$	-	$	9,632
Other bond securities		-		4,518		-		-		3		4,521
Mortgage and other loans receivable		-		2,290		-		-		-		2,290
Other invested assets		1,365		206		-		3,087		25		4,683
Other^(a)		302		1,481		-		350		85		2,218
Total assets^(b)	$	1,667	$	18,127	$	-	$	3,437	$	113	$	23,344
Liabilities:
Long-term debt	$	680	$	1,624	$	-	$	1,825	$	5	$	4,134
Other^(c)		144		244		-		181		26		595
Total liabilities	$	824	$	1,868	$	-	$	2,006	$	31	$	4,729
December 31, 2016
Assets:
Bonds available for sale	$	-	$	10,233	$	-	$	-	$	-	$	10,233
Other bond securities		-		4,858		266		-		5		5,129
Mortgage and other loans receivable		1		1,442		-		-		104		1,547
Other invested assets		1,052		321		-		2,821		28		4,222
Other^(a)		365		1,104		50		384		92		1,995
Total assets^(b)	$	1,418	$	17,958	$	316	$	3,205	$	229	$	23,126
Liabilities:
Long-term debt	$	444	$	771	$	56	$	1,696	$	6	$	2,973
Other^(c)		224		203		1		211		38		677
Total liabilities	$	668	$	974	$	57	$	1,907	$	44	$	3,650

(a) Comprised primarily of Short-term investments and Other assets at December 31, 2017 and 2016.

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

(d) At December 31, 2017 and 2016, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $85.8 million and $106 million, respectively.

(e) At December 31, 2017 and 2016, $17.6 billion and $17.3 billion, respectively, of the total assets of consolidated securitization vehicles were owed to AIG Parent or its subsidiaries.

Variable Interest Entity Not Primary Beneficiary

Variable Interest Entities [Line Items]

Schedule of Variable Interest Entities

			Maximum Exposure to Loss
		Total VIE		On-Balance		Off-Balance
(in millions)		Assets		Sheet^(b)		Sheet			Total
December 31, 2017
Real estate and investment entities^(a)	$	380,030	$	9,253	$	2,043		$	11,296
Affordable housing partnerships		4,468		725		-			725
Other		2,703		254		1,205	^(c)		1,459
Total	$	387,201	$	10,232	$	3,248		$	13,480
December 31, 2016
Real estate and investment entities^(a)	$	409,087	$	11,015	$	2,115		$	13,130
Affordable housing partnerships		4,709		785		-			785
Other		2,869		314		1,045	^(c)		1,359
Total	$	416,665	$	12,114	$	3,160		$	15,274

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

(b) At December 31, 2017 and 2016, $9.8 billion and $11.7 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

- 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)

12 Months Ended

Dec. 31, 2017

DERIVATIVES AND HEDGE ACCOUNTING

Notional amounts and fair values of derivative instruments

	December 31, 2017								December 31, 2016
	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	$	-	$	-	$	838	$	15	$	175	$	-	$	782	$	11
Foreign exchange contracts		2,823		173		4,783		350		3,527		385		2,602		184
Equity contracts		-		-		159		19		-		-		113		7
Derivatives not designated
as hedging instruments:^(a)
Interest rate contracts		37,751		2,171		26,461		2,185		51,030		2,328		44,211		3,066
Foreign exchange contracts		6,305		658		11,093		895		9,468		935		7,674		1,185
Equity contracts		19,975		522		1,130		2		14,060		305		8,633		12
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts^(b)		4		1		1,365		277		4		2		861		331
Other contracts^(c)		39,829		20		59		5		37,633		22		62		6
Total derivatives, gross	$	106,687	$	3,545	$	45,888	$	3,748	$	115,897	$	3,977	$	64,938	$	4,802
Counterparty netting^(d)				(1,464)				(1,464)				(1,265)				(1,265)
Cash collateral^(e)				(1,159)				(1,249)				(903)				(1,521)
Total derivatives on
consolidated balance sheets^(f)			$	922			$	1,035			$	1,809			$	2,016

(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)
Year ended December 31, 2017
Interest rate contracts:
Realized capital gains/(losses)	$	(4)	$	4	$	-	$	-	$	-
Other income		-		-		-		-		-
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		(420)		393		-		(26)		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		4		-		-		4
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		(47)		42		-		(5)		-
Year ended December 31, 2016
Interest rate contracts:
Realized capital gains/(losses)	$	(7)	$	1	$	1	$	-	$	(7)
Other income		-		10		-		-		10
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		294		(335)		-		(41)		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		24		-		-		24
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		10		(11)		-		(1)		-
Year ended December 31, 2015
Interest rate contracts:
Realized capital gains	$	-	$	1	$	1	$	-	$	-
Other income		-		9		-		-		9
Gain/(Loss) on extinguishment of debt		-		14		-		-		14
Foreign exchange contracts:
Realized capital gains/(losses)		202		(167)		-		32		3
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		17		-		-		17
Gain/(Loss) on extinguishment of debt		-		17		-		-		17
Equity contracts:
Realized capital gains/(losses)		(45)		45		-		-		-

(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

Years Ended December 31,	Gains (Losses) Recognized in Earnings
(in millions)		2017		2016		2015
By Derivative Type:
Interest rate contracts	$	56	$	(229)	$	339
Foreign exchange contracts		(277)		293		416
Equity contracts		(964)		(902)		(182)
Commodity contracts		-		-		(1)
Credit contracts		58		81		186
Other contracts		75		80		69
Embedded derivatives		(449)		(48)		49
Total	$	(1,501)	$	(725)	$	876
By Classification:
Policy fees	$	77	$	80	$	78
Net investment income		(11)		26		26
Net realized capital gains (losses)		(1,709)		(895)		365
Other income		139		63		401
Policyholder benefits and claims incurred		3		1		6
Total	$	(1,501)	$	(725)	$	876

- 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=84234895&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=84234895&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=84234895&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=84234895&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=84234895&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=84234895&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=84234895&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=84234895&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=84234895&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

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill Disclosure

Schedule of changes in goodwill by reportable segment

	North				Life			Other		Legacy
(in millions)	America		International		Insurance		Operations		Portfolio			Total
Balance at January 1, 2015:
Goodwill - gross	$	1,834	$	2,887	$	21	$	7	$	182	$	4,931
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill		570		751		21		7		105		1,454
Increase (decrease) due to:
Acquisition		50		46		55		20		37		208
Other		-		(50)		1		-		-		(49)
Balance at December 31, 2015:
Goodwill - gross		1,884		2,883		77		27		219		5,090
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill		620		747		77		27		142		1,613
Increase (decrease) due to:
Dispositions		(6)		(6)		-		-		-		(12)
Other		-		(70)		-		-		(3)		(73)
Balance at December 31, 2016:
Goodwill - gross		1,878		2,807		77		27		216		5,005
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill		614		671		77		27		139		1,528
Increase (decrease) due to:
Acquisition		-		-		-		4		-		4
Dispositions		(10)		(7)		(6)		-		(2)		(25)
Other		-		74		13		-		-		87
Balance at December 31, 2017:
Goodwill - gross		1,868		2,874		84		31		214		5,071
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill	$	604	$	738	$	84	$	31	$	137	$	1,594

INSURANCE LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2017

Claims Development [Line Items]

Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense

Years Ended December 31,
(in millions)		2017		2016		2015
Liability for unpaid loss and loss adjustment expenses, beginning of year	$	77,077	$	74,942	$	77,260
Reinsurance recoverable		(15,532)		(14,339)		(15,648)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year		61,545		60,603		61,612
Losses and loss adjustment expenses incurred:
Current year		21,079		20,232		20,308
Prior years, excluding discount and amortization of deferred gain		1,565		5,788		4,119
Prior years, discount charge (benefit)		187		(422)		(71)
Prior years, amortization of deferred gain on retroactive reinsurance^(a)		(284)		-		-
Total losses and loss adjustment expenses incurred		22,547		25,598		24,356
Losses and loss adjustment expenses paid:
Current year		(5,323)		(5,825)		(5,751)
Prior years		(16,241)		(16,908)		(18,205)
Total losses and loss adjustment expenses paid		(21,564)		(22,733)		(23,956)
Other changes:
Foreign exchange effect		788		(463)		(1,429)
Acquisitions^(b)		23		-		-
Dispositions^(c)		(360)		(1,058)		-
Retroactive reinsurance adjustment (net of discount)^(d)		(11,294)		-		20
Reclassified to liabilities held for sale^(e)		-		(402)		-
Total other changes		(10,843)		(1,923)		(1,409)
Liability for unpaid losses and loss adjustment expenses, end of year:
Net liability for unpaid losses and loss adjustment expenses		51,685		61,545		60,603
Reinsurance recoverable		26,708		15,532		14,339
Total	$	78,393	$	77,077	$	74,942

(a) Includes $25 million for 2011 retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the year ended December 31, 2017.

(b) Includes amounts related to the acquisition of Blackboard U.S. Holdings Inc in 2017.

(d) Includes discount on retroactive insurance in the amount of $1.5 billion for the period ended December 31, 2017.

Reconciliation of Claims Development to Liability

	Net liability forunpaid losses and loss adjustment expensesas presented in the disaggregated tables below		Reinsurance recoverable on unpaid losses and loss adjustment expensesincluded in the disaggregated tables below		Gross liability forunpaid losses and loss adjustment expenses
(in millions)
U.S. Workers' Compensation (before discount)	$	6,616	$	6,513	$	13,129
U.S. Excess Casualty		4,802		4,053		8,855
U.S. Other Casualty		5,149		4,793		9,942
U.S. Financial Lines		5,104		1,962		7,066
U.S. Property and Special risks		5,410		968		6,378
U.S. Personal Insurance		1,380		194		1,574
Europe Casualty and Financial lines		6,986		1,156		8,142
Europe Property and Special risks		2,022		632		2,654
Europe and Japan Personal Insurance		2,348		349		2,697
U.S. Run-Off Long Tail Insurance Lines (before
discount)		5,383		3,675		9,058
Total	$	45,200	$	24,295	$	69,495

Reconciling Items
Discount on workers' compensation lines						(3,383)
Other product lines						8,568
Unallocated loss adjustment expenses						3,713
Total Loss Reserves					$	78,393

Schedule of development, (favorable) unfavorable, of incurred losses and loss adjustment expenses for accident year 2007 and prior by operating segment and major class of business

Years Ended December 31,
(in millions)		2017		2016		2015
2007 and prior accident year development, excluding the impact of
Adverse Development Reinsurance Agreement, by major class of
of business and driver of development:
U.S. Workers' compensation (before discount)	$	4	$	1,009	$	100
U.S. Excess casualty		141		107		450
U.S. Other casualty		10		338		440
U.S. Financial lines		(44)		31		191
U.S. Property and Special risks		12		12		26
U.S. Personal Insurance		5		(13)		33
Europe Casualty and Financial lines		169		(6)		(2)
Europe Property and Special risks		(5)		1		(1)
Europe and Japan Personal Insurance		1		(5)		1
U.S. Long Tail Insurance lines (before discount)		(46)		363		621
All Other including unallocated loss adjustment expenses		177		3		(11)
Total prior year unfavorable development	$	424	$	1,840	$	1,848

Schedule of historical average annual percentage claims payout on an accident year basis

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
U.S. Workers' compensation	14.7	%	17.6	%	12.4	%	9.1	%	7.7	%	5.3	%	4.1	%	3.0	%	2.2	%	1.8	%
U.S. Excess casualty	0.6		7.0		13.0		13.4		12.5		11.0		8.4		10.0		2.8		8.3
U.S. Other casualty	9.9		16.3		15.4		14.5		11.8		8.2		5.9		5.6		2.6		1.9
U.S. Financial lines	4.0		17.9		21.1		16.7		13.2		9.3		6.1		6.0		3.0		1.2
U.S. Property and Special risks	30.2		35.7		13.0		7.2		4.6		2.5		1.0		0.9		0.7		0.3
U.S. Personal Insurance	61.4		27.6		3.8		2.2		1.2		0.6		0.4		0.2		0.1		0.2
Europe Casualty and Financial lines	7.9		17.0		13.7		13.7		9.8		7.5		6.3		4.6		5.0		1.0
Europe Property and Special risks	24.0		41.6		17.2		6.3		4.0		1.5		1.0		0.2		0.2		0.2
Europe and Japan Personal Insurance	56.0		26.9		8.0		3.8		2.0		1.1		0.6		0.3		0.3		0.1
U.S. Long Tail Insurance lines	9.8		18.3		16.9		12.5		10.7		6.7		4.0		3.1		1.9		2.0

Schedule of components of the loss reserve discount

	December 31, 2017						December 31, 2016
				Legacy						Legacy
				Portfolio -						Portfolio -
				General						General
		North America		Insurance Run-				North America		Insurance Run-
		Commercial		Off Insurance				Commercial		Off Insurance
(in millions)		Insurance		Lines		Total		Insurance		Lines		Total
U.S. Workers' compensation	$	2,465	$	918	$	3,383	$	2,583	$	987	$	3,570
Retroactive reinsurance		(1,539)		-		(1,539)		-		-		-
Total reserve discount^*	$	926	$	918	$	1,844	$	2,583	$	987	$	3,570

* Excludes $173 million and $181 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2017 and December 31, 2016, respectively.

Schedule of loss reserve discount and loss reserve discount benefit (charge)

Years Ended December 31,	2017						2016						2015
				Legacy						Legacy						Legacy
				Portfolio -						Portfolio -						Portfolio -
				General						General						General
		North		Insurance				North		Insurance				North		Insurance
		America		Run-Off				America		Run-Off				America		Run-Off
		Commercial		Insurance				Commercial		Insurance				Commercial		Insurance
(in millions)	Insurance			Lines		Total	Insurance			Lines		Total	Insurance			Lines		Total
Current accident year	$	114	$	-	$	114	$	177	$	-	$	177	$	182	$	-	$	182
Accretion and other
adjustments to prior
year discount		(186)		(44)		(230)		287		64		351		(262)		(74)		(336)
Effect of interest rate
changes		(46)		(25)		(71)		(58)		(48)		(106)		148		77		225
Net reserve discount
benefit (charge)		(118)		(69)		(187)		406		16		422		68		3		71
Amount transferred to run-off
insurance lines		-		-		-		-		-		-		(39)		39		-
Change in discount on loss
reserves ceded under
retroactive reinsurance		(1,539)		-		(1,539)		-		-		-		-		-		-
Net change in total
reserve discount^*		(1,657)		(69)		(1,726)		406		16		422		29		42		71
Comprised of:
U.S. Workers' compensation	$	(1,657)	$	(69)	$	(1,726)	$	406	$	23	$	429	$	29	$	46	$	75
Asbestos	$	-	$	-	$	-	$	-	$	(7)	$	(7)	$	-	$	(4)	$	(4)

Excludes $8 million and $20 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2017 and 2016, respectively.

Schedule of Policyholder contract deposits by product type

At December 31,
(in millions)		2017		2016
Policyholder contract deposits:
Fixed Annuities	$	49,979	$	51,278
Group Retirement		40,422		39,578
Life Insurance		12,448		11,855
Variable and Index Annuities		19,690		16,934
Institutional Markets		8,077		7,286
Legacy Portfolio		4,986		5,285
Total Policyholder contract deposits	$	135,602	$	132,216

U.S. Workers Compensation

Claims Development [Line Items]

Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	4,114	$	4,184	$	4,422	$	4,425	$	4,471	$	4,398	$	4,385	$	4,398	$	4,547	$	4,536	$	(11)	$	448	198,852	$	(416)	$	4,120	$	32
2009				3,466		3,633		3,608		3,666		3,639		3,616		3,606		3,708		3,714		6		495	147,357		(416)		3,298		79
2010						2,706		3,049		3,125		3,148		3,211		3,214		3,286		3,267		(19)		451	133,191		(449)		2,818		2
2011								2,901		2,953		3,091		3,158		3,113		3,152		3,156		4		481	124,657		(479)		2,677		2
2012										2,382		2,194		2,286		2,260		2,334		2,308		(26)		503	70,625		(494)		1,814		9
2013												1,932		1,880		1,950		2,060		2,032		(28)		548	46,483		(538)		1,494		10
2014														1,729		1,764		1,866		1,862		(4)		664	39,408		(552)		1,310		112
2015																1,708		1,864		1,866		2		849	35,059		(587)		1,279		262
2016																		1,299		1,346		47		773	28,880		-		1,346		773
2017																				789				577	22,523		-		789		577
Total																			$	24,876	$	(29)				$	(3,931)	$	20,945
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(16,580)		-					-		(16,580)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				3,867		4					(1,616)		2,251
Unallocated loss adjustment expense prior year development																						(6)
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	12,163	$	(31)				$	(5,547)	$	6,616

Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	785	$	1,678	$	2,252	$	2,655	$	3,044	$	3,272	$	3,476	$	3,609	$	3,707	$	3,789	$	-
2009				630		1,328		1,756		2,120		2,390		2,621		2,780		2,887		2,968		-
2010						550		1,093		1,537		1,855		2,126		2,288		2,426		2,532		-
2011								519		1,129		1,561		1,884		2,129		2,285		2,388		-
2012										415		804		1,089		1,272		1,440		1,563		-
2013												282		619		879		1,067		1,214		-
2014														231		558		786		930		-
2015																234		524		725		-
2016																		147		378		-
2017																				93		-
Total																			$	16,580	$	-

U.S. Excess Casualty

Claims Development [Line Items]

Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	1,948	$	1,968	$	2,146	$	1,933	$	1,819	$	1,875	$	1,714	$	1,662	$	1,635	$	1,658	$	23	$	188	4,662	$	(176)	$	1,482	$	12
2009				1,831		1,897		1,797		1,638		1,457		1,321		1,407		1,518		1,522		4		210	3,789		(169)		1,353		41
2010						1,863		2,076		2,076		1,771		1,640		1,723		1,719		1,706		(13)		359	3,588		(260)		1,446		99
2011								1,766		1,807		1,581		1,416		1,521		1,606		1,623		17		350	3,520		(256)		1,367		94
2012										1,588		1,382		1,226		1,477		1,530		1,481		(49)		371	3,398		(323)		1,158		48
2013												1,073		973		1,113		1,258		1,178		(80)		441	2,722		(309)		869		132
2014														849		968		1,157		1,135		(22)		583	2,088		(355)		780		228
2015																892		1,334		1,320		(14)		602	1,770		(425)		895		177
2016																		790		1,029		239		870	1,061		-		1,029		870
2017																				758				725	376		-		758		725
Total																			$	13,410	$	105				$	(2,273)	$	11,137
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(7,120)		-					-		(7,120)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				1,649		141					(864)		785
Unallocated loss adjustment expense prior year development																						8
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	7,939	$	254				$	(3,137)	$	4,802

Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	11	$	97	$	439	$	667	$	842	$	954	$	1,061	$	1,172	$	1,226	$	1,364	$	-
2009				8		69		249		449		624		788		965		1,174		1,212		-
2010						10		197		475		654		795		946		1,052		1,217		-
2011								5		63		225		386		716		921		1,069		-
2012										3		106		288		495		649		887		-
2013												15		104		204		382		546		-
2014														3		68		202		397		-
2015																9		192		361		-
2016																		14		66		-
2017																				1		-
Total																			$	7,120	$	-

U.S. Other Casualty

Claims Development [Line Items]

Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	2,957	$	2,773	$	2,837	$	2,901	$	2,981	$	2,983	$	3,087	$	3,154	$	3,193	$	3,175	$	(18)	$	204	117,484	$	(104)	$	3,071	$	100
2009				2,416		2,517		2,586		2,582		2,697		2,818		2,880		2,863		2,855		(8)		144	90,101		(143)		2,712		1
2010						2,132		2,109		2,243		2,192		2,341		2,384		2,503		2,494		(9)		325	96,061		(133)		2,361		192
2011								2,052		2,222		2,321		2,458		2,601		2,639		2,596		(43)		256	75,189		(187)		2,409		69
2012										2,012		2,162		2,218		2,229		2,371		2,430		59		382	41,924		(210)		2,220		172
2013												1,662		1,739		1,918		2,152		2,183		31		450	36,699		(225)		1,958		225
2014														1,756		1,729		1,973		2,017		44		603	34,745		(331)		1,686		272
2015																1,340		1,778		1,847		69		752	31,409		(456)		1,391		296
2016																		1,348		1,352		4		853	23,868		-		1,352		853
2017																				616				487	15,172		-		616		487
Total																			$	21,565	$	129				$	(1,789)	$	19,776
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(15,521)		-					-		(15,521)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				1,406		10					(512)		894
Unallocated loss adjustment expense prior year development																						77
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	7,450	$	216				$	(2,301)	$	5,149

Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	277	$	791	$	1,251	$	1,771	$	2,119	$	2,396	$	2,586	$	2,731	$	2,835	$	2,895	$	-
2009				393		842		1,253		1,650		2,002		2,241		2,386		2,607		2,664		-
2010						295		661		985		1,358		1,640		1,824		1,972		2,087		-
2011								235		726		1,109		1,488		1,822		2,048		2,220		-
2012										413		743		1,048		1,395		1,690		1,882		-
2013												169		592		956		1,243		1,483		-
2014														210		621		871		1,157		-
2015																111		321		783		-
2016																		77		299		-
2017																				51		-
Total																			$	15,521	$	-

U.S. Financial Lines

Claims Development [Line Items]

Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance


Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	1,871	$	2,045	$	2,017	$	1,847	$	1,961	$	1,897	$	1,933	$	2,066	$	2,096	$	2,106	$	10	$	36	21,719	$	(21)	$	2,085	$	15
2009				1,693		1,780		1,845		1,904		2,097		2,189		2,183		2,273		2,310		37		60	22,613		(26)		2,284		34
2010						1,552		1,509		1,406		1,366		1,370		1,472		1,514		1,541		27		70	20,159		(31)		1,510		39
2011								1,816		1,734		1,902		1,902		1,935		1,965		1,997		32		50	20,048		(50)		1,947		-
2012										1,572		1,739		1,777		1,892		1,986		1,987		1		146	20,090		(83)		1,904		63
2013												1,767		1,691		1,643		1,597		1,541		(56)		248	18,996		(126)		1,415		122
2014														1,767		1,736		1,849		1,898		49		417	17,249		(198)		1,700		219
2015																1,705		1,744		1,719		(25)		665	15,698		(313)		1,406		352
2016																		1,593		1,841		248		1,036	15,386		-		1,841		1,036
2017																				1,560				1,369	13,428		-		1,560		1,369
Total																			$	18,500	$	323				$	(848)	$	17,652
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(12,615)		-					-		(12,615)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				88		(44)					(21)		67
Unallocated loss adjustment expense prior year development																						66
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	5,973	$	345				$	(869)	$	5,104

Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	32	$	420	$	888	$	1,183	$	1,385	$	1,590	$	1,712	$	1,897	$	1,990	$	2,016	$	-
2009				129		499		887		1,273		1,614		1,838		1,964		2,056		2,092		-
2010						31		285		566		800		1,017		1,180		1,280		1,361		-
2011								165		494		886		1,210		1,528		1,732		1,862		-
2012										76		406		815		1,252		1,497		1,625		-
2013												43		333		686		945		1,142		-
2014														66		371		853		1,159		-
2015																66		393		792		-
2016																		76		500		-
2017																				66		-
Total																			$	12,615	$	-

U.S. Property and Specialty Risks

Claims Development [Line Items]

Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	3,531	$	3,789	$	3,747	$	3,700	$	3,659	$	3,609	$	3,585	$	3,581	$	3,576	$	3,575	$	(1)	$	20	56,526	$	(14)	$	3,561	$	6
2009				1,919		1,704		1,689		1,700		1,662		1,665		1,656		1,664		1,663		(1)		18	42,897		(13)		1,650		5
2010						2,275		2,042		2,009		2,049		2,061		2,038		2,043		2,058		15		21	42,276		(18)		2,040		3
2011								3,045		2,917		2,872		2,878		2,867		2,910		2,919		9		43	43,849		(19)		2,900		24
2012										3,470		3,617		3,585		3,576		3,697		3,691		(6)		62	42,278		(25)		3,666		37
2013												1,975		1,972		1,859		1,926		1,949		23		74	41,937		(38)		1,911		36
2014														2,355		2,143		2,220		2,213		(7)		140	50,160		(61)		2,152		79
2015																2,398		2,312		2,299		(13)		203	50,624		(98)		2,201		105
2016																		2,516		2,580		64		402	45,583		-		2,580		402
2017																				4,085				1,331	29,709		-		4,085		1,331
Total																			$	27,032	$	83				$	(286)		26,746
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(21,589)		-					-		(21,589)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				318		12					(65)		253
Unallocated loss adjustment expense prior year development																						20
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	5,761	$	115				$	(351)		5,410

Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	1,323	$	2,679	$	3,150	$	3,342	$	3,457	$	3,487	$	3,498	$	3,515	$	3,530	$	3,540	$	-
2009				495		1,044		1,288		1,443		1,528		1,580		1,597		1,618		1,633		-
2010						654		1,391		1,657		1,799		1,880		1,940		1,978		2,001		-
2011								880		1,988		2,417		2,593		2,734		2,812		2,840		-
2012										734		2,410		2,978		3,273		3,456		3,565		-
2013												586		1,275		1,469		1,620		1,732		-
2014														745		1,452		1,713		1,869		-
2015																820		1,501		1,766		-
2016																		799		1,689		-
2017																				954		-
Total																			$	21,589	$	-

U.S. Personal Insurance

Claims Development [Line Items]

Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims		Incurred Impact of Adverse Development Reinsurance Agreement		2017 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	1,630	$	1,638	$	1,640	$	1,654	$	1,654	$	1,654	$	1,663	$	1,666	$	1,664	$	1,668	$	4	$	1	292,830	$	(1)	$	1,667	$	-
2009				1,763		1,697		1,649		1,663		1,664		1,664		1,668		1,667		1,671		4		4	375,959		-		1,671		4
2010						1,843		1,809		1,819		1,819		1,820		1,819		1,817		1,817		-		2	422,527		(1)		1,816		1
2011								1,886		1,908		1,896		1,891		1,890		1,886		1,881		(5)		1	412,670		(1)		1,880		-
2012										2,208		2,128		2,109		2,083		2,077		2,094		17		4	403,542		(3)		2,091		1
2013												1,887		1,816		1,803		1,782		1,780		(2)		7	334,474		(6)		1,774		1
2014														1,552		1,562		1,572		1,572		-		19	273,481		(8)		1,564		11
2015																1,511		1,498		1,494		(4)		23	258,241		(19)		1,475		4
2016																		1,536		1,533		(3)		73	240,892		-		1,533		73
2017																				2,028				571	185,198		-		2,028		571
Total																			$	17,538	$	11				$	(39)		17,499
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(16,053)		-					-		(16,053)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				(65)		5					(1)		(66)
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	1,420	$	16				$	(40)		1,380

Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2008	$	1,151	$	1,493	$	1,569	$	1,609	$	1,634	$	1,644	$	1,656	$	1,660	$	1,663	$	1,665	$	-
2009				1,129		1,563		1,567		1,618		1,639		1,650		1,658		1,663		1,664		-
2010						1,205		1,669		1,736		1,772		1,794		1,803		1,808		1,810		-
2011								1,204		1,752		1,814		1,840		1,860		1,869		1,873		-
2012										1,238		1,936		1,996		2,035		2,065		2,079		-
2013												1,109		1,634		1,705		1,744		1,759		-
2014														959		1,380		1,463		1,507		-
2015																931		1,320		1,411		-
2016																		857		1,344		-
2017																				941		-
Total																			$	16,053	$	-

Europe Casualty and Financial Lines

Claims Development [Line Items]

Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2008	$	1,511	$	1,615	$	1,632	$	1,580	$	1,595	$	1,599	$	1,649	$	1,605	$	1,604	$	1,604	$	-	$	24	236,384
2009				1,746		1,844		1,858		1,856		1,885		1,906		1,912		1,996		2,030		34		103	236,270
2010						1,484		1,436		1,432		1,457		1,380		1,420		1,377		1,445		68		77	274,310
2011								1,414		1,352		1,426		1,465		1,552		1,554		1,597		43		83	264,629
2012										1,224		1,193		1,150		1,222		1,263		1,232		(31)		103	217,887
2013												1,221		1,277		1,257		1,258		1,305		47		194	185,435
2014														1,280		1,267		1,302		1,303		1		340	175,630
2015																1,337		1,515		1,538		23		588	188,348
2016																		1,563		1,716		153		724	221,122
2017																				1,587				1,214	204,712
Total																			$	15,357	$	338
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(8,965)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				594		169
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	6,986	$	507

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
2008	$	130	$	477	$	726	$	961	$	1,118	$	1,245	$	1,323	$	1,375	$	1,455	$	1,471
2009				139		418		708		970		1,139		1,274		1,442		1,581		1,681
2010						147		420		635		808		947		1,042		1,109		1,162
2011								140		376		564		811		963		1,108		1,224
2012										121		334		484		677		809		897
2013												105		375		543		736		877
2014														86		299		494		628
2015																80		286		486
2016																		140		426
2017																				113
Total																			$	8,965

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

Europe Property and Special Risks

Claims Development [Line Items]

Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2008	$	633	$	636	$	644	$	643	$	632	$	626	$	620	$	618	$	614	$	613	$	(1)	$	-	41,602
2009				738		666		675		674		666		680		655		655		655		-		3	39,109
2010						788		747		719		703		712		703		706		707		1		-	40,389
2011								763		687		648		642		631		628		628		-		-	39,925
2012										728		682		648		630		615		627		12		(2)	34,457
2013												914		915		842		840		842		2		(1)	32,405
2014														994		1,046		1,052		1,050		(2)		1	38,719
2015																1,226		1,219		1,248		29		12	41,799
2016																		1,118		1,239		121		24	40,629
2017																				1,377				390	29,313
Total																			$	8,986	$	162
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(6,971)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				7		(5)
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	2,022	$	157

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
2008	$	148	$	399	$	511	$	546	$	577	$	590	$	596	$	596	$	598	$	599
2009				183		429		532		585		613		620		632		634		635
2010						187		489		584		634		672		686		690		693
2011								181		444		543		581		591		599		604
2012										154		410		511		549		572		580
2013												193		535		700		751		786
2014														220		669		885		939
2015																290		778		1,005
2016																		300		894
2017																				236
Total																			$	6,971

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

Europe and Japan Personal Insurance

Claims Development [Line Items]

Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2008	$	2,869	$	2,911	$	2,904	$	2,908	$	2,915	$	2,919	$	2,913	$	2,916	$	2,912	$	2,914	$	2	$	3	1,577,002
2009				2,913		2,900		2,901		2,920		2,909		2,907		2,900		2,902		2,902		-		5	1,605,992
2010						2,969		3,007		3,015		3,003		3,004		2,999		3,027		3,030		3		8	1,819,631
2011								3,274		3,324		3,293		3,295		3,284		3,288		3,287		(1)		10	1,777,001
2012										2,898		2,867		2,851		2,836		2,845		2,846		1		16	1,729,298
2013												2,747		2,736		2,705		2,706		2,702		(4)		25	1,734,759
2014														2,717		2,716		2,698		2,690		(8)		45	1,789,718
2015																2,795		2,756		2,746		(10)		92	1,762,514
2016																		2,734		2,692		(42)		194	1,762,768
2017																				2,659				549	1,502,118
Total																			$	28,468	$	(59)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(26,161)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				41		1
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	2,348	$	(58)

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
2008	$	1,602	$	2,421	$	2,655	$	2,773	$	2,829	$	2,865	$	2,880	$	2,887	$	2,896	$	2,899
2009				1,627		2,412		2,656		2,765		2,821		2,850		2,867		2,879		2,886
2010						1,703		2,497		2,741		2,852		2,909		2,944		2,963		2,975
2011								1,987		2,787		3,022		3,134		3,198		3,227		3,244
2012										1,614		2,363		2,591		2,698		2,754		2,785
2013												1,503		2,246		2,462		2,569		2,625
2014														1,476		2,225		2,447		2,558
2015																1,501		2,270		2,493
2016																		1,500		2,231
2017																				1,465
Total																			$	26,161

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

U.S. Run-Off Long Tail Insurance Lines

Claims Development [Line Items]

Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance*

	Years Ended December 31, (dollars in millions)																							December 31, 2017
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2017 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2008	$	945	$	1,035	$	884	$	868	$	909	$	926	$	978	$	976	$	983	$	985	$	2	$	65	40,075
2009				553		532		544		579		635		602		599		580		576		(4)		75	16,237
2010						640		528		534		557		585		582		611		565		(46)		68	8,490
2011								534		542		576		641		676		685		700		15		97	7,798
2012										629		678		741		786		751		752		1		104	4,053
2013												482		533		589		570		528		(42)		84	2,510
2014														379		475		453		459		6		164	2,307
2015																439		523		550		27		174	2,285
2016																		294		285		(9)		98	1,591
2017																				197				163	607
Total																			$	5,597	$	(50)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(3,830)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2008, net of reinsurance																				3,616		(46)
Unallocated loss adjustment expense prior year development																						66
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	5,383	$	(30)

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance


Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance*

	Years Ended December 31, (dollars in millions)
Accident Year		2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
2008	$	133	$	370	$	497	$	572	$	657	$	726	$	787	$	832	$	846	$	866
2009				42		134		231		286		368		409		429		447		461
2010						57		149		243		321		404		435		455		464
2011								21		140		259		385		449		532		549
2012										86		194		286		414		481		498
2013												87		154		261		321		368
2014														21		96		185		233
2015																35		132		238
2016																		53		140
2017																				13
Total																			$	3,830

* The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement.

VARIABLE LIFE AND ANNUITY CONTRACTS (Tables)

12 Months Ended

Dec. 31, 2017

VARIABLE LIFE AND ANNUITY CONTRACTS

Schedule of Account balances of variable annuity contracts with guarantees were invested in separate account investment

At December 31,
(in millions)		2017		2016
Equity funds	$	48,594	$	42,266
Bond funds		7,793		7,798
Balanced funds		27,656		25,365
Money market funds		730		840
Total	$	84,773	$	76,269

Schedule of details concerning entity's GMDB exposures, by benefit type

At December 31,	2017				2016
		Net Deposits				Net Deposits
		Plus a Minimum		Highest Contract		Plus a Minimum		Highest Contract
(dollars in billions)		Return		Value Attained		Return		Value Attained
Account value	$	99	$	17	$	91	$	16
Net amount at risk		1		-		1		1
Average attained age of contract holders by product		63		68		63		68
Range of guaranteed minimum return rates		0%-4.5%				0%-4.5%

Schedule of changes in GMDB liabilities for guarantees on variable contracts reflected in the general account

Years Ended December 31,
(in millions)		2017		2016		2015
Balance, beginning of year	$	402	$	491	$	420
Reserve increase (decrease)		(14)		(32)		127
Benefits paid		(42)		(57)		(56)
Changes in reserves related to unrealized appreciation of investments		6		-		-
Balance, end of year	$	352	$	402	$	491

DEBT (Tables)

12 Months Ended

Dec. 31, 2017

DEBT

Schedule of total debt outstanding

				Balance at		Balance at
At December 31, 2017	Range of	Maturity		December 31,		December 31,
(in millions)	Interest Rate(s)	Date(s)			2017		2016
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	0% - 8.13%		2018 - 2097	$	20,339	$	19,432
Junior subordinated debt	4.88% - 8.63%		2037 - 2058		841		843
AIG Japan Holdings Kabushiki Kaisha	0.28% - 0.44%		2020 - 2021		334		330
AIGLH notes and bonds payable	6.63% - 7.50%		2025 - 2029		281		281
AIGLH junior subordinated debt	7.57% - 8.50%		2030 - 2046		361		361
Total AIG general borrowings					22,156		21,247
AIG borrowings supported by assets:^(a)
MIP notes payable	2.72% - 2.95%		2018		356		1,099
Series AIGFP matched notes and bonds payable	1.21% - 1.30%		2046 - 2047		21		32
GIAs, at fair value	0.50% - 7.62%		2018 - 2053		2,707		2,934
Notes and bonds payable, at fair value	0.50% - 9.97%		2018 - 2040		181		494
Total AIG borrowings supported by assets					3,265		4,559
Total debt issued or guaranteed by AIG					25,421		25,806
Debt not guaranteed by AIG:
Other subsidiaries notes, bonds, loans and
mortgages payable	1.40% - 1.57%		2018		190		735
Debt of consolidated investments^(b)	0% - 9.31%		2018 - 2065		6,029		4,371
Total debt not guaranteed by AIG					6,219		5,106
Total long term debt				$	31,640	$	30,912

Maturities of long-term debt, excluding borrowings of debt of consolidated investments

December 31, 2017			Year Ending
(in millions)		Total		2018		2019		2020		2021		2022		Thereafter
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	$	20,339	$	1,107	$	998	$	1,343	$	1,496	$	1,507	$	13,888
Junior subordinated debt		841		-		-		-		-		-		841
AIG Japan Holdings Kabushiki Kaisha		334		-		-		115		219		-		-
AIGLH notes and bonds payable		281		-		-		-		-		-		281
AIGLH junior subordinated debt		361		-		-		-		-		-		361
Total AIG general borrowings		22,156		1,107		998		1,458		1,715		1,507		15,371
AIG borrowings supported by assets:
MIP notes payable		356		356		-		-		-		-		-
Series AIGFP matched notes and
bonds payable		21		-		-		-		-		-		21
GIAs, at fair value		2,707		506		265		30		202		47		1,657
Notes and bonds payable, at fair value		181		126		-		-		-		-		55
Total AIG borrowings supported by assets		3,265		988		265		30		202		47		1,733
Total debt issued or guaranteed by AIG		25,421		2,095		1,263		1,488		1,917		1,554		17,104
Other subsidiaries notes, bonds, loans
and mortgages payable		190		190		-		-		-		-		-
Total	$	25,611	$	2,285	$	1,263	$	1,488	$	1,917	$	1,554	$	17,104

Schedule of detail for uncollateralized and collateralized notes, bonds, loans and mortgages payable

		Uncollateralized		Collateralized
At December 31, 2017		Notes/Bonds/Loans		Loans and
(in millions)		Payable		Mortgages Payable		Total
AIG general borrowings	$	334	$	-	$	334
Other subsidiaries notes, bonds, loans and mortgages payable^*		-		190		190
Total	$	334	$	190	$	524

* AIG does not guarantee any of these borrowings.

Summary of Credit Facility

At December 31, 2017				Available		Effective
(in millions)		Size		Amount	Expiration	Date
Syndicated Credit Facility	$	4,500	$	4,500	June 2022	6/27/2017

EQUITY (Tables)

12 Months Ended

Dec. 31, 2017

EQUITY

Rollforward of common stock outstanding

	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Year Ended December 31, 2015
Shares, beginning of year	1,906,671,492	(530,744,521)	1,375,926,971
Shares issued	-	371,806	371,806
Shares repurchased	-	(182,382,160)	(182,382,160)
Shares, end of year	1,906,671,492	(712,754,875)	1,193,916,617
Year Ended December 31, 2016
Shares, beginning of year	1,906,671,492	(712,754,875)	1,193,916,617
Shares issued	-	2,069,110	2,069,110
Shares repurchased	-	(200,649,886)	(200,649,886)
Shares, end of year	1,906,671,492	(911,335,651)	995,335,841
Year Ended December 31, 2017
Shares, beginning of year	1,906,671,492	(911,335,651)	995,335,841
Shares issued	-	3,386,462	3,386,462
Shares repurchased	-	(99,677,646)	(99,677,646)
Shares, end of year	1,906,671,492	(1,007,626,835)	899,044,657

Dividends Paid

			Dividends Paid
Record Date	Payment Date		Per Share
December 8, 2017	December 22, 2017	$	0.32
September 15, 2017	September 29, 2017		0.32
June 14, 2017	June 28, 2017		0.32
March 15, 2017	March 29, 2017		0.32

December 8, 2016	December 22, 2016		0.32
September 15, 2016	September 29, 2016		0.32
June 13, 2016	June 27, 2016		0.32
March 14, 2016	March 28, 2016		0.32

December 7, 2015	December 21, 2015		0.28
September 14, 2015	September 28, 2015		0.28
June 11, 2015	June 25, 2015		0.125
March 12, 2015	March 26, 2015		0.125

Repurchases Of Common Stock and Warrant

Years Ended December 31,
(in millions)		2017		2016		2015	^(a)
Aggregate repurchases of common stock	$	6,275	$	11,460	$	10,691
Total number of common shares repurchased		100		201		182
Aggregate repurchases of warrants	$	3	$	309	$	-
Total number of warrants repurchased^(b)		-		17		-

(b) In 2017, we repurchased 185,000 warrants to purchase shares of AIG Common Stock.

Accumulated Other Comprehensive Income (Loss)

	Unrealized Appreciation
	(Depreciation) of Fixed			Unrealized
	Maturity Securities			Appreciation		Foreign		Retirement
	on Which Other-Than-			(Depreciation)		Currency		Plan
	Temporary Credit			of All Other		Translation		Liabilities
(in millions)	Impairments Were Taken			Investments		Adjustments		Adjustment		Total
Balance, January 1, 2015, net of tax	$	1,043	$	12,327	$	(1,784)	$	(969)	$	10,617
Change in unrealized
depreciation of investments		(488)		(10,519)		-		-		(11,007)
Change in deferred policy
acquisition costs adjustment and other		(146)		1,265		-		-		1,119
Change in future policy benefits		92		1,112		-		-		1,204
Change in foreign currency
translation adjustments		-		-		(1,129)		-		(1,129)
Change in net actuarial gain		-		-		-		413		413
Change in prior service credit		-		-		-		(239)		(239)
Change in deferred tax asset (liability)		195		1,380		29		(51)		1,553
Total other comprehensive income (loss)		(347)		(6,762)		(1,100)		123		(8,086)
Noncontrolling interests		-		(1)		(5)		-		(6)
Balance, December 31, 2015, net of tax	$	696	$	5,566	$	(2,879)	$	(846)	$	2,537
Change in unrealized
appreciation (depreciation) of investments		(326)		931		-		-		605
Change in deferred policy
acquisition costs adjustment and other		(19)		286		-		-		267
Change in future policy benefits		-		(676)		-		-		(676)
Change in foreign currency
translation adjustments		-		-		93		-		93
Change in net actuarial loss		-		-		-		(151)		(151)
Change in prior service credit		-		-		-		(22)		(22)
Change in deferred tax asset		75		298		157		47		577
Total other comprehensive income (loss)		(270)		839		250		(126)		693
Noncontrolling interests		-		-		-		-		-
Balance, December 31, 2016, net of tax	$	426	$	6,405	$	(2,629)	$	(972)	$	3,230
Change in unrealized
appreciation of investments		394		3,668		-		-		4,062
Change in deferred policy
acquisition costs adjustment and other		23		(1,282)		-		-		(1,259)
Change in future policy benefits		-		(1,102)		-		-		(1,102)
Change in foreign currency
translation adjustments		-		-		547		-		547
Change in net actuarial gain		-		-		-		110		110
Change in prior service cost		-		-		-		9		9
Change in deferred tax asset (liability)		(50)		4		(8)		(78)		(132)
Total other comprehensive income		367		1,288		539		41		2,235
Noncontrolling interests		-		-		-		-		-
Balance, December 31, 2017, net of tax	$	793	$	7,693	$	(2,090)	$	(931)	$	5,465

Other comprehensive income (loss) reclassification adjustments

		Unrealized Appreciation
		(Depreciation) of Fixed		Unrealized
		Maturity Securities		Appreciation		Foreign		Retirement
		on Which Other-		(Depreciation)		Currency		Plan
		Than-Temporary Credit		of All Other		Translation		Liabilities
(in millions)		Impairments Were Taken		Investments		Adjustments		Adjustment		Total
December 31, 2015
Unrealized change arising during period	$	(471)	$	(7,068)	$	(1,129)	$	285	$	(8,383)
Less: Reclassification adjustments
included in net income		71		1,074		-		111		1,256
Total other comprehensive income (loss),
before income tax expense (benefit)		(542)		(8,142)		(1,129)		174		(9,639)
Less: Income tax expense (benefit)		(195)		(1,380)		(29)		51		(1,553)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(347)	$	(6,762)	$	(1,100)	$	123	$	(8,086)

December 31, 2016
Unrealized change arising during period	$	(222)	$	1,769	$	93	$	(344)	$	1,296
Less: Reclassification adjustments
included in net income		123		1,228		-		(171)		1,180
Total other comprehensive income (loss),
before income tax expense (benefit)		(345)		541		93		(173)		116
Less: Income tax benefit		(75)		(298)		(157)		(47)		(577)
Total other comprehensive income (loss),
net of income tax benefit	$	(270)	$	839	$	250	$	(126)	$	693

December 31, 2017
Unrealized change arising during period	$	467	$	2,052	$	547	$	24	$	3,090
Less: Reclassification adjustments
included in net income		50		768		-		(95)		723
Total other comprehensive income,
before income tax expense		417		1,284		547		119		2,367
Less: Income tax expense (benefit)		50		(4)		8		78		132
Total other comprehensive income,
net of income tax expense (benefit)	$	367	$	1,288	$	539	$	41	$	2,235

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
Years Ended December 31,	Comprehensive Income						Affected Line Item in the
(in millions)	2017			2016		2015	Consolidated Statements of Income
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments	$	50	$	123	$	71	Other realized capital gains
Total		50		123		71
Unrealized appreciation (depreciation) of all other investments
Investments		463		935		1,054	Other realized capital gains
Deferred acquisition costs adjustment		305		293		3	Amortization of deferred policy acquisition costs
Future policy benefits		-		-		17	Policyholder benefits and losses incurred
Total		768		1,228		1,074
Change in retirement plan liabilities adjustment
Prior-service credit		5		15		214	*
Actuarial losses		(100)		(186)		(103)	*
Total		(95)		(171)		111
Total reclassifications for the period	$	723	$	1,180	$	1,256

* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 21 to the 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
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

EARNINGS PER SHARE (EPS) (Tables)

12 Months Ended

Dec. 31, 2017

EARNINGS PER SHARE (EPS)

Computation of basic and diluted EPS

Years Ended December 31,
(dollars in millions, except per share data)		2017		2016		2015
Numerator for EPS:
Income (loss) from continuing operations	$	(6,060)	$	(259)	$	2,222
Less: Net income from continuing operations attributable to noncontrolling interests		28		500		26
Income (loss) attributable to AIG common shareholders from continuing operations		(6,088)		(759)		2,196
Income (loss) from discontinued operations, net of income tax expense		4		(90)		-
Net income (loss) attributable to AIG common shareholders	$	(6,084)	$	(849)	$	2,196
Denominator for EPS:
Weighted average shares outstanding — basic		930,561,286		1,091,085,131		1,299,825,350
Dilutive shares		-		-		34,639,533
Weighted average shares outstanding — diluted^(a)(b)		930,561,286		1,091,085,131		1,334,464,883
Income (loss) per common share attributable to AIG:
Basic:
Income (loss) from continuing operations	$	(6.54)	$	(0.70)	$	1.69
Income from discontinued operations	$	-	$	(0.08)	$	-
Income (loss) attributable to AIG	$	(6.54)	$	(0.78)	$	1.69
Diluted:
Income (loss) from continuing operations	$	(6.54)	$	(0.70)	$	1.65
Income from discontinued operations	$	-	$	(0.08)	$	-
Income (loss) attributable to AIG	$	(6.54)	$	(0.78)	$	1.65

STATUTORY FINANCIAL DATA AND RESTRICTIONS (Tables)

12 Months Ended

Dec. 31, 2017

STATUTORY FINANCIAL DATA AND RESTRICTIONS

Schedule of statutory capital and surplus and net income (loss) for AIG property casualty and AIG life and retirement operations in accordance with statutory accounting practices

(in millions)		2017		2016		2015
Years Ended December 31,
Statutory net income (loss)^(a)(b)(c):
General Insurance companies:
Domestic^(c)	$	(622)	$	260	$	1,444
Foreign		(333)		(1,326)		594
Total General Insurance companies	$	(955)	$	(1,066)	$	2,038
Life and Retirement companies:
Domestic	$	932	$	2,252	$	2,200
Foreign		21		47		(5)
Total Life and Retirement companies	$	953	$	2,299	$	2,195
At December 31,
Statutory capital and surplus^(a)(b)(c):
General Insurance companies:
Domestic^(c)	$	21,514	$	21,665
Foreign		11,695		12,587
Total General Insurance companies	$	33,209	$	34,252
Life and Retirement companies:
Domestic	$	11,872	$	12,314
Foreign		446		490
Total Life and Retirement companies	$	12,318	$	12,804
Aggregate minimum required statutory capital and surplus:
General Insurance companies:
Domestic	$	5,307	$	5,183
Foreign		6,166		7,257
Total General Insurance companies	$	11,473	$	12,440
Life and Retirement companies:
Domestic	$	3,148	$	3,088
Foreign		121		234
Total Life and Retirement companies	$	3,269	$	3,322

(a) Excludes discontinued operations and other divested businesses. Statutory capital and surplus and net income (loss) with respect to foreign operations are as of November 30.

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

SHARE-BASED AND OTHER COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2017

SHARE-BASED AND OTHER COMPENSATION PLANS

Schedule of share-based compensation expense recognized in Consolidated Statements of Income

Years Ended December 31,
(in millions)		2017		2016		2015
Share-based compensation expense - pre-tax^*	$	353	$	237	$	365
Share-based compensation expense - after tax		229		154		237

Schedule of assumptions used to estimate the fair value of PSUs based on AIG's TSR

	2017		2016		2015
Expected dividend yield^(a)	2.37	%	2.17	%	1.78	%
Expected volatility^(b)	17.58	%	24.55	%	22.71	%
Risk-free interest rate^(c)	2.00	%	1.30	%	1.01	%

(a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date.

(b) The expected volatility is based on the historical volatility of the stock price for the 360 most recent trading days prior to the valuation date estimated by Bloomberg Professional service.

Summary of outstanding share-settled LTI awards

						Weighted Average
As of or for the Year	Number of Units					Grant-Date Fair Value
Ended December 31, 2017^(b)	2017 LTI	2016 LTI	2015 LTI	2014 LTI	2013 LTI	2017 LTI		2016 LTI		2015 LTI		2014 LTI		2013 LTI
Unvested, beginning of year	-	2,588,598	2,176,555	1,732,616	1,581,904	$	-	$	51.12	$	55.52	$	48.88	$	38.03
Granted	3,996,978	2,806	-	122,378	-		64.83		36.49		-		48.57		-
Vested^(c)	(971,945)	(182,938)	(201,256)	(957,045)	(968,930)		64.09		60.29		59.04		48.89		37.98
Forfeited	(84,987)	(138,263)	(121,456)	(74,638)	(36,764)		65.24		51.10		55.01		49.02		39.14
Unvested, at modification date	2,940,046	2,270,203	1,853,843	823,311	576,210	$	65.07	$	50.37	$	55.17	$	48.81	$	38.04
Cancelled at modification date	(1,082,417)	(2,951,417)	(2,229,873)	-	-		67.47		52.00		54.56		-		-
Granted at modification date	1,082,417	2,646,866	2,094,629	-	-		62.13		62.13		62.13		-		-
Sub-total, net impact of modification	-	(304,551)	(135,244)	-	-		-		55.01		56.33		-		-
Vested - post-modification^(c)	(766,931)	(495,222)	(424,788)	-	-		64.01		62.13		61.82		-		-
Forfeited - post-modification	-	(2,685)	(2,023)	-	-		-		62.13		62.13		-		-
Unvested, end of year^(d)	2,173,115	1,467,745	1,291,788	823,311	576,210	$	62.78	$	60.90	$	60.02	$	48.81	$	38.04

(a) Excludes stock options and DSUs, which are discussed under Stock Options and Non-Employee Plan, respectively.

(c) Also reflects units that vest as a result of an accelerated vesting event that occurred prior to the specified vesting date.

Schedule of stock option activity

The following table provides a rollforward of stock option activity:

				Weighted Average			Aggregate
As of or for the Year		Weighted Average			Remaining		Intrinsic Values
Ended December 31, 2017	Units	Exercise Price		Contractual Life		(in millions)

Outstanding, beginning of year	-	$	-
Granted	2,500,000		62.90
Exercised	-		-
Forfeited or expired	-		-
Outstanding, end of year	2,500,000	$	62.90		6.48	$	-
Exercisable, end of year	-	$	-		-	$	-

Schedule of weighted-average assumptions

The following weighted-average assumptions were used for stock options granted:

	2017
Expected annual dividend yield^(a)	2.03	%
Expected volatility^(b)	20.96	%
Risk-free interest rate^(c)	1.94	%
Expected term^(d)	4.5	years

(a) The dividend yield is based on the current quarterly dividend payment of $0.32 and the Valuation Date stock price.

(b) The expected volatility is the 1080-day implied volatility as seen in the open marketplace on the Valuation Date.

(d) The contractual term of the option is 7 years from the grant date.

EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

Schedule of funded status of the plans reconciled to the amount reported in the balance sheets

As of or for the Years Ended		Pension								Postretirement
December 31,		U.S. Plans^*			Non-U.S. Plans^*					U.S. Plans			Non-U.S. Plans
(in millions)		2017		2016		2017		2016		2017		2016		2017		2016
Change in projected benefit obligation:
Benefit obligation, beginning of year	$	4,948	$	5,324	$	1,246	$	1,146	$	196	$	208	$	80	$	75
Service cost		11		19		29		31		2		2		3		3
Interest cost		166		181		16		21		6		7		3		3
Actuarial (gain) loss		372		118		(29)		98		-		(2)		(2)		-
Benefits paid:
AIG assets		(19)		(24)		(10)		(12)		(13)		(14)		(1)		(1)
Plan assets		(161)		(332)		(26)		(35)		-		-		-		-
Plan amendment		-		-		-		1		-		-		(6)		-
Curtailments		-		-		(7)		(2)		-		(1)		-		-
Settlements		(226)		(338)		(12)		(16)		-		-		-		-
Foreign exchange effect		-		-		37		19		-		-		1		-
Other		-		-		(42)		(5)		(1)		(4)		(15)		-
Projected benefit obligation, end of year	$	5,091	$	4,948	$	1,202	$	1,246	$	190	$	196	$	63	$	80
Change in plan assets:
Fair value of plan assets, beginning
of year	$	3,843	$	4,359	$	803	$	773	$	-	$	-	$	-	$	-
Actual return on plan assets, net of expenses		584		154		67		19		-		-		-		-
AIG contributions		329		24		60		71		13		14		1		1
Benefits paid:
AIG assets		(19)		(24)		(10)		(12)		(13)		(14)		(1)		(1)
Plan assets		(161)		(332)		(26)		(35)		-		-		-		-
Settlements		(226)		(338)		(12)		(16)		-		-		-		-
Foreign exchange effect		-		-		19		6		-		-		-		-
Dispositions		-		-		-		(4)		-		-		-		-
Other		-		-		(26)		1		-		-		-		-
Fair value of plan assets, end of year	$	4,350	$	3,843	$	875	$	803	$	-	$	-	$	-	$	-
Funded status, end of year	$	(741)	$	(1,105)	$	(327)	$	(443)	$	(190)	$	(196)	$	(63)	$	(80)
Amounts recognized in the balance
sheet:
Assets	$	-	$	-	$	68	$	53	$	-	$	-	$	-	$	-
Liabilities		(741)		(1,105)		(395)		(496)		(190)		(196)		(63)		(80)
Total amounts recognized	$	(741)	$	(1,105)	$	(327)	$	(443)	$	(190)	$	(196)	$	(63)	$	(80)
Pre-tax amounts recognized in Accumulated
other comprehensive income:
Net gain (loss)	$	(1,373)	$	(1,405)	$	(170)	$	(251)	$	17	$	17	$	(11)	$	(15)
Prior service (cost) credit		-		-		(22)		(28)		1		2		5		-
Total amounts recognized	$	(1,373)	$	(1,405)	$	(192)	$	(279)	$	18	$	19	$	(6)	$	(15)

Schedule of accumulated benefit obligations

At December 31,
(in millions)		2017		2016
U.S. pension benefit plans	$	5,091	$	4,948
Non-U.S. pension benefit plans	$	1,188	$	1,215

Schedule of projected benefit obligation in excess of the plan assets and the accumulated benefit obligation in excess of the plan assets

At December 31,	PBO Exceeds Fair Value of Plan Assets								ABO Exceeds Fair Value of Plan Assets
		U.S. Plans				Non-U.S. Plans				U.S. Plans				Non-U.S. Plans
(in millions)		2017		2016		2017		2016		2017		2016		2017		2016
Projected benefit obligation	$	5,091	$	4,948	$	1,054	$	1,121	$	5,091	$	4,948	$	991	$	1,029
Accumulated benefit obligation		5,091		4,948		979		1,016		5,091		4,948		979		1,009
Fair value of plan assets		4,350		3,843		596		545		4,350		3,843		596		536

Schedule of components of net periodic benefit cost

Years Ended December 31,	Pension												Postretirement
	U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans
(in millions)		2017		2016		2015		2017		2016		2015		2017		2016		2015		2017		2016		2015
Components of net periodic benefit
cost:
Service cost^*	$	11	$	19	$	192	$	29	$	31	$	43	$	2	$	2	$	5	$	3	$	3	$	3
Interest cost		166		181		220		16		21		25		6		7		8		3		3		3
Expected return on assets		(266)		(292)		(295)		(24)		(26)		(25)		-		-		-		-		-		-
Amortization of prior service credit		-		-		(22)		-		-		(2)		(1)		(12)		(11)		(1)		-		(1)
Amortization of net (gain) loss		26		25		92		12		7		9		(1)		(1)		-		1		1		-
Net periodic benefit cost (credit)		(63)		(67)		187		33		33		50		6		(4)		2		6		7		5
Curtailment gain		-		-		(179)		(6)		(6)		(1)		-		(1)		-		(2)		-		-
Settlement loss		60		149		-		1		2		1		-		-		-		-		-		-
Net benefit cost (credit)	$	(3)	$	82	$	8	$	28	$	29	$	50	$	6	$	(5)	$	2	$	4	$	7	$	5
Total recognized in Accumulated other
comprehensive income (loss)	$	32	$	(82)	$	143	$	87	$	(101)	$	38	$	(2)	$	(7)	$	12	$	9	$	1	$	(9)
Total recognized in net periodic benefit
cost and other comprehensive
income (loss)	$	35	$	(164)	$	135	$	59	$	(130)	$	(12)	$	(8)	$	(2)	$	10	$	5	$	(6)	$	(14)

* Reflects administrative fees for the U.S. pension plans.

Schedule of weighted average assumptions used to determine the benefit obligations

	Pension						Postretirement
	U.S. Plans			Non-U.S. Plans^(a)			U.S. Plans		Non-U.S. Plans^(a)
December 31, 2017
Discount rate	3.61	%			1.60	%	3.53	%		3.59	%
Rate of compensation increase	N/A		^(b)		2.27	%	N/A			3.00	%
December 31, 2016
Discount rate	4.14	%			1.50	%	4.02	%		3.95	%
Rate of compensation increase	N/A		^(b)		2.50	%	N/A			3.38	%

(a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.

(b) Compensation increases are no longer applicable due to the plan freeze that became effective January 1, 2016.

Schedule of assumed health care cost trend rates

At December 31,	2017	2016
Following year:
Medical (before age 65)	6.12%	6.31%
Medical (age 65 and older)	5.00%	5.00%
Ultimate rate to which cost increase is assumed to decline	4.50%	4.50%
Year in which the ultimate trend rate is reached:
Medical (before age 65)	2038	2038
Medical (age 65 and older)	2038	2038

Schedule of A one percent point change in the assumed healthcare cost trend rate

	One Percent				One Percent
At December 31,	Increase				Decrease
(in millions)		2017		2016		2017		2016
U.S. plans	$	4	$	4	$	(4)	$	(3)
Non-U.S. plans	$	14	$	19	$	(10)	$	(14)

Schedule of weighted average assumptions used to determine the net periodic benefit costs

	Pension					Postretirement
	U.S. Plans		Non-U.S. Plans^*			U.S. Plans		Non-U.S. Plans^*
For the Year Ended December 31, 2017
Discount rate	4.15	%		1.50	%	4.01	%		3.95	%
Rate of compensation increase	N/A			2.50	%	N/A			3.38	%
Expected return on assets	7.00	%		2.92	%	N/A			N/A
For the Year Ended December 31, 2016
Discount rate	4.33	%		2.17	%	4.21	%		4.09	%
Rate of compensation increase	N/A			2.64	%	N/A			3.43	%
Expected return on assets	7.00	%		3.28	%	N/A			N/A
For the Year Ended December 31, 2015
Discount rate	3.94	%		2.33	%	3.77	%		4.04	%
Rate of compensation increase	3.40	%		2.89	%	N/A			3.29	%
Expected return on assets	7.25	%		3.33	%	N/A			N/A

* The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits.

Schedule of plan assets based on the level within the fair value hierarchy in which the fair value measurement falls

	U.S. Plans								Non-U.S. Plans
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
At December 31, 2017
Assets:
Cash and cash equivalents	$	397	$	-	$	-	$	397	$	51	$	-	$	-	$	51
Equity securities:
U.S.^(a)		1,300		-		-		1,300		-		-		-		-
International^(b)		265		-		-		265		362		64		-		426
Fixed maturity securities:
U.S. investment grade^(c)		-		1,006		12		1,018		-		-		-		-
International investment grade^(c)		-		204		-		204		-		97		-		97
U.S. and international high yield^(d)		-		212		-		212		-		171		-		171
Mortgage and other asset-backed
securities^(e)		-		142		-		142		-		-		-		-
Other fixed maturity securities		-		-		-		-		-		16		-		16
Other investment types^(g):
Direct private equity^(f)		-		-		15		15		-		-		-		-
Insurance contracts		-		20		-		20		-		-		113		113
Total	$	1,962	$	1,584	$	27	$	3,573	$	413	$	348	$	113	$	874
At December 31, 2016
Assets:
Cash and cash equivalents	$	228	$	-	$	-	$	228	$	50	$	-	$	-	$	50
Equity securities:
U.S.^(a)		838		1		-		839		-		-		-		-
International^(b)		377		-		-		377		298		58		-		356
Fixed maturity securities:
U.S. investment grade^(c)		-		1,174		2		1,176		-		-		-		-
International investment grade^(c)		-		-		-		-		-		90		-		90
U.S. and international high yield^(d)		-		218		-		218		-		186		-		186
Mortgage and other asset-backed
securities^(e)		-		-		-		-		-		-		-		-
Other fixed maturity securities		-		-		-		-		-		13		-		13
Other investment types^(g):
Direct private equity^(f)		-		-		24		24		-		-		-		-
Insurance contracts		-		21		-		21		-		-		108		108
Total	$	1,443	$	1,414	$	26	$	2,883	$	348	$	347	$	108	$	803

(a) Includes passive and active U.S. Large Cap and Small Cap strategies, as well as mutual funds, and exchange traded funds.

(b) Includes investments in companies in emerging and developed markets.

(c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade.

(e) Comprised primarily of investments in U.S. asset backed securities and collateralized loan obligations.

(f) Comprised of private capital financing including private debt and private equity securities.

(g) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $777 million and $960 million at December 31, 2017 and 2016, respectively.

Schedule of changes in Level 3 plan assets measured at fair value

																				Changes in
				Net																Unrealized Gains
		Balance		Realized and														Balance		(Losses) on
At December 31, 2017		Beginning		Unrealized										Transfers		Transfers		at End		Instruments Held
(in millions)		of year		Gains (Losses)		Purchases		Sales		Issuances		Settlements		In		Out		of year		at End of year
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade	$	2	$	-	$	17	$	(7)	$	-	$	-	$	-	$	-	$	12	$	2
Direct private equity		24		(3)		1		(7)		-		-		-		-		15		(1)
Total	$	26	$	(3)	$	18	$	(14)	$	-	$	-	$	-	$	-	$	27	$	1
Non-U.S. Plan Assets:
Other fixed maturity securities	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Insurance contracts		108		4		1		-		-		-		-		-		113		-
Total	$	108	$	4	$	1	$	-	$	-	$	-	$	-	$	-	$	113	$	-

																				Changes in
				Net																Unrealized Gains
		Balance		Realized and														Balance		(Losses) on
At December 31, 2016		Beginning		Unrealized										Transfers		Transfers		at End		Instruments Held
(in millions)		of year		Gains (Losses)		Purchases		Sales		Issuances		Settlements		In		Out		of year		at End of year
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade	$	9	$	1	$	2	$	(10)	$	-	$	-	$	-	$	-	$	2	$	-
Direct private equity		28		(4)		4		(4)		-		-		-		-		24		(4)
Total	$	37	$	(3)	$	6	$	(14)	$	-	$	-	$	-	$	-	$	26	$	(4)
Non-U.S. Plan Assets:
Other fixed maturity securities	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Insurance contracts		95		12		1		-		-		-		2		(2)		108		-
Total	$	95	$	12	$	1	$	-	$	-	$	-	$	2	$	(2)	$	108	$	-

Schedule of expected future benefit payments, net of participants' contributions

		Pension			Postretirement
		U.S.		Non-U.S.		U.S.		Non-U.S.
(in millions)		Plans		Plans		Plans		Plans
2018	$	291	$	36	$	13	$	1
2019		287		40		13		1
2020		297		42		13		1
2021		294		43		13		2
2022		291		41		13		2
2023-2027		1,407		235		60		11

U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Schedule of asset allocation percentage by major asset class and target allocation

	Target		Actual		Actual
At December 31,	2018		2017		2016
Asset class:
Equity securities	46	%	45	%	43	%
Fixed maturity securities	44	%	36	%	36	%
Other investments	10	%	19	%	21	%
Total	100	%	100	%	100	%

Non U.S. Plans

Defined Benefit Plan Disclosure [Line Items]

Schedule of asset allocation percentage by major asset class and target allocation

	Target		Actual		Actual
At December 31,	2018		2017		2016
Asset class:
Equity securities	30	%	49	%	44	%
Fixed maturity securities	52	%	32	%	36	%
Other investments	17	%	13	%	14	%
Cash and cash equivalents	1	%	6	%	6	%
Total	100	%	100	%	100	%

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location

Years Ended December 31,
(in millions)		2017		2016		2015
U.S.	$	1,940	$	1,041	$	1,950
Foreign		(474)		(1,115)		1,331
Total	$	1,466	$	(74)	$	3,281

Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations

Years Ended December 31,
(in millions)		2017		2016		2015
Foreign and U.S. components of actual income tax expense:
Foreign:
Current	$	209	$	436	$	391
Deferred		25		(121)		(95)
U.S.:
Current		427		140		429
Deferred		6,865		(270)		334
Total	$	7,526	$	185	$	1,059

Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate

	2017						2016							2015
		Pre-Tax		Tax	Percent of			Pre-Tax		Tax		Percent of					Tax	Percent of
Years Ended December 31,		Income		Expense/	Pre-Tax			Income		Expense/		Pre-Tax			Pre-Tax		Expense/	Pre-Tax
(dollars in millions)		(Loss)		(Benefit)	Income (Loss)			(Loss)		(Benefit)	Income (Loss)				Income		(Benefit)	Income
U.S. federal income tax at statutory
rate	$	1,476	$	517	35.0	%	$	(159)	$	(56)		35.0	%	$	3,281	$	1,148	35.0	%
Adjustments:
Tax exempt interest				(111)	(7.5)					(178)		111.9					(195)	(5.9)
Uncertain tax positions				660	44.7					268		(168.6)					195	5.9
Reclassifications from accumulated
other comprehensive income				(184)	(12.5)					(132)		83.0					(127)	(3.9)
Dispositions of Subsidiaries				17	1.2					118		(74.2)					-	-
Tax Attribute Restoration				-	-					(164)		103.1					-	-
Non-controlling Interest				(7)	(0.5)					(81)		50.9					-	-
Non-deductible transfer pricing
charges				35	2.4					102		(64.2)					97	3.0
Dividends received deduction				(90)	(6.1)					(75)		47.2					(72)	(2.2)
Effect of foreign operations				69	4.7					234		(147.2)					(58)	(1.8)
Share-based compensation
payments excess tax deduction				(40)	(2.7)					-		-					-	-
State income taxes				(9)	(0.6)					23		(14.5)					34	1.0
Impact of Tax Act				6,687	453.0					-		-					-	-
Other				(58)	(3.9)					13		(8.2)					(73)	(2.2)
Effect of discontinued operations				3	0.2					35		(22.0)					-	-
Valuation allowance:
Continuing operations				43	2.9					83		(52.2)					110	3.4
Consolidated total amounts		1,476		7,532	510.3			(159)		190		(119.5)			3,281		1,059	32.3
Amounts attributable to discontinued
operations		10		6	60.0			(85)		5		(5.9)			-		-	-
Amounts attributable to continuing
operations	$	1,466	$	7,526	513.4	%	$	(74)	$	185		(250.0)	%	$	3,281	$	1,059	32.3	%

Schedule of components of the net deferred tax asset

December 31,
(in millions)		2017		2016
Deferred tax assets:
Losses and tax credit carryforwards	$	11,931	$	16,448
Basis differences on investments		2,133		4,985
Life policy reserves		1,996		3,040
Accruals not currently deductible, and other		532		1,128
Investments in foreign subsidiaries		159		103
Loss reserve discount		526		1,151
Loan loss and other reserves		34		39
Unearned premium reserve reduction		566		924
Fixed assets and intangible assets		442		478
Other		731		710
Employee benefits		601		1,171
Total deferred tax assets		19,651		30,177
Deferred tax liabilities:
Deferred policy acquisition costs		(2,313)		(3,790)
Unrealized gains related to available for sale debt securities		(2,151)		(2,844)
Total deferred tax liabilities		(4,464)		(6,634)
Net deferred tax assets before valuation allowance		15,187		23,543
Valuation allowance		(1,374)		(2,831)
Net deferred tax assets (liabilities)	$	13,813	$	20,712

Schedule of consolidated income tax group credits carryforwards

December 31, 2017				Tax	Expiration
(in millions)		Gross		Effected	Periods
Net operating loss carryforwards	$	35,592	$	7,474	2028-2037
Capital loss carryforwards		305		64	2022
Foreign tax credit carryforwards				4,481	2018-2022
Other carryforwards				1,154	Various
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a tax return basis				13,173
Unrecognized tax benefit				(2,543)
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a U.S. GAAP basis^*			$	10,630

* Includes other carryforwards, e.g. general business credits, of $118 million on a U.S. GAAP basis.

Schedule of consolidated income tax group tax losses carryforwards

December 31, 2017				Tax	Expiration
(in millions)		Gross		Effected	Periods
Net operating loss carryforwards	$	35,592	$	7,474	2028-2037
Capital loss carryforwards		305		64	2022
Foreign tax credit carryforwards				4,481	2018-2022
Other carryforwards				1,154	Various
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a tax return basis				13,173
Unrecognized tax benefit				(2,543)
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a U.S. GAAP basis^*			$	10,630

* Includes other carryforwards, e.g. general business credits, of $118 million on a U.S. GAAP basis.

Schedule of net deferred tax assets (liabilities)

December 31,
(in millions)		2017		2016
Net U.S. consolidated return group deferred tax assets	$	15,603	$	24,134
Net deferred tax assets (liabilities) in accumulated other comprehensive income		(2,070)		(2,384)
Valuation allowance		(86)		(874)
Subtotal		13,447		20,876
Net foreign, state and local deferred tax assets		1,874		2,413
Valuation allowance		(1,288)		(1,957)
Subtotal		586		456
Subtotal - Net U.S., foreign, state and local deferred tax assets		14,033		21,332
Net foreign, state and local deferred tax liabilities		(220)		(620)
Total AIG net deferred tax assets (liabilities)	$	13,813	$	20,712

Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits

Years Ended December 31,
(in millions)		2017		2016		2015
Gross unrecognized tax benefits, beginning of year	$	4,530	$	4,331	$	4,395
Increases in tax positions for prior years		210		235		162
Decreases in tax positions for prior years		(33)		(39)		(209)
Increases in tax positions for current year		-		3		-
Lapse in statute of limitations		-		-		(4)
Settlements		-		-		(13)
Activity of discontinued operations		-		-		-
Gross unrecognized tax benefits, end of year	$	4,707	$	4,530	$	4,331

Schedule of tax years that remain subject to examination by major tax jurisdictions

At December 31, 2017	Open Tax Years
Major Tax Jurisdiction
United States	2000-2016
Australia	2013-2016
France	2015-2016
Japan	2011-2016
Korea	2012-2016
Singapore	2012-2016
United Kingdom	2015-2016

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2017

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

Consolidated Statements of Income (Loss)

	Three Months Ended
		March 31,				June 30,				September 30,				December 31,
(dollars in millions, except per share data)		2017		2016		2017		2016		2017		2016		2017		2016
Total revenues	$	12,632	$	11,779	$	12,502	$	14,724	$	11,751	$	12,854	$	12,635	$	13,010
Income (loss) from continuing
operations before income taxes^*		1,727		(214)		1,667		2,858		(2,803)		737		875		(3,455)
Income (loss) from discontinued
operations, net of income taxes		-		(47)		8		(10)		(1)		3		(3)		(36)
Net income (loss)		1,211		(203)		1,118		1,924		(1,713)		436		(6,672)		(2,506)
Net income (loss) from
continuing operations attributable
to noncontrolling interests		26		(20)		(12)		11		26		(26)		(12)		535
Net income (loss) attributable to AIG^*	$	1,185	$	(183)	$	1,130	$	1,913	$	(1,739)	$	462	$	(6,660)	$	(3,041)
Income (loss) per common share
attributable to AIG:
Basic:
Income (loss) from continuing
operations	$	1.21	$	(0.12)	$	1.21	$	1.73	$	(1.91)	$	0.43	$	(7.33)	$	(2.93)
Income (loss) from discontinued
operations	$	-	$	(0.04)	$	0.01	$	(0.01)	$	-	$	-	$	-	$	(0.03)
Diluted:
Income (loss) from continuing
operations	$	1.18	$	(0.12)	$	1.18	$	1.69	$	(1.91)	$	0.42	$	(7.33)	$	(2.93)
Income (loss) from discontinued
operations	$	-	$	(0.04)	$	0.01	$	(0.01)	$	-	$	-	$	-	$	(0.03)
Weighted average shares
outstanding:
Basic	980,777,243		1,156,548,459		925,751,084		1,113,587,927		908,667,044		1,071,295,892		908,115,499		1,023,886,592
Diluted	1,005,315,030		1,156,548,459		948,248,771		1,140,045,973		908,667,044		1,102,400,770		908,115,499		1,023,886,592
Noteworthy quarterly items -
(income) expense:
Other-than-temporary
impairments		68		204		67		108		88		102		37		145
Net (gain) loss on sale of
divested businesses		100		2		60		(225)		13		(128)		(241)		(194)
Federal and foreign valuation
allowance for deferred tax assets		(13)		(37)		(8)		35		24		(2)		40		87
Net (gain) loss on extinguishment of
debt		(1)		83		(4)		7		1		(14)		(1)		(2)
Prior year unfavorable (favorable)
development		61		(66)		391		7		901		273		212		5,574
Restructuring and other costs		181		188		47		90		31		210		154		206
Impact of Tax Act		-		-		-		-		-		-		6,687		-

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

12 Months Ended

Dec. 31, 2017

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
December 31, 2017
Assets:
Short-term investments	$	2,541	$	-	$	11,559	$	(3,714)	$	10,386
Other investments^(a)		6,004		-		305,902		-		311,906
Total investments		8,545		-		317,461		(3,714)		322,292
Cash		3		20		2,339		-		2,362
Loans to subsidiaries^(b)		35,004		-		517		(35,521)		-
Investment in consolidated subsidiaries^(b)		40,135		30,359		-		(70,494)		-
Other assets, including deferred income taxes		16,016		170		159,594		(2,133)		173,647
Assets held for sale		-		-		-		-		-
Total assets	$	99,703	$	30,549	$	479,911	$	(111,862)	$	498,301
Liabilities:
Insurance liabilities	$	-	$	-	$	282,105	$	-	$	282,105
Long-term debt		21,557		642		9,441		-		31,640
Other liabilities, including intercompany balances^(a)		12,458		143		112,275		(6,028)		118,848
Loans from subsidiaries^(b)		517		-		35,004		(35,521)		-
Liabilities held for sale		-		-		-		-		-
Total liabilities		34,532		785		438,825		(41,549)		432,593
Total AIG shareholders’ equity		65,171		29,764		40,549		(70,313)		65,171
Non-redeemable noncontrolling interests		-		-		537		-		537
Total equity		65,171		29,764		41,086		(70,313)		65,708
Total liabilities and equity	$	99,703	$	30,549	$	479,911	$	(111,862)	$	498,301

December 31, 2016
Assets:
Short-term investments	$	4,424	$	-	$	13,218	$	(5,340)	$	12,302
Other investments^(a)		7,154		-		308,719		-		315,873
Total investments		11,578		-		321,937		(5,340)		328,175
Cash		2		34		1,832		-		1,868
Loans to subsidiaries^(b)		34,692		-		576		(35,268)		-
Investment in consolidated subsidiaries^(b)		42,582		27,309		-		(69,891)		-
Other assets, including deferred income taxes		24,099		239		140,743		(4,059)		161,022
Assets held for sale		-		-		7,199		-		7,199
Total assets	$	112,953	$	27,582	$	472,287	$	(114,558)	$	498,264
Liabilities:
Insurance liabilities	$	-	$	-	$	275,120	$	-	$	275,120
Long-term debt		21,405		642		8,865		-		30,912
Other liabilities, including intercompany balances^(a)		14,671		194		103,975		(9,572)		109,268
Loans from subsidiaries^(b)		577		-		34,691		(35,268)		-
Liabilities held for sale		-		-		6,106		-		6,106
Total liabilities		36,653		836		428,757		(44,840)		421,406
Total AIG shareholders’ equity		76,300		26,746		42,972		(69,718)		76,300
Non-redeemable noncontrolling interests		-		-		558		-		558
Total equity		76,300		26,746		43,530		(69,718)		76,858
Total liabilities and equity	$	112,953	$	27,582	$	472,287	$	(114,558)	$	498,264

(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
Year Ended December 31, 2017
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	(149)	$	1,978	$	-	$	(1,829)	$	-
Other income		891		-		48,802		(173)		49,520
Total revenues		742		1,978		48,802		(2,002)		49,520
Expenses:
Interest expense		949		50		176		(7)		1,168
Loss on extinguishment of debt		2		-		(7)		-		(5)
Other expenses		952		2		46,116		(179)		46,891
Total expenses		1,903		52		46,285		(186)		48,054
Income (loss) from continuing operations before income tax
expense (benefit)		(1,161)		1,926		2,517		(1,816)		1,466
Income tax expense (benefit)		4,922		(3)		2,607		-		7,526
Income (loss) from continuing operations		(6,083)		1,929		(90)		(1,816)		(6,060)
Income (loss) from discontinued operations, net of income taxes		(1)		-		5		-		4
Net income (loss)		(6,084)		1,929		(85)		(1,816)		(6,056)
Less:
Net income from continuing operations attributable to
noncontrolling interests		-		-		28		-		28
Net income (loss) attributable to AIG	$	(6,084)	$	1,929	$	(113)	$	(1,816)	$	(6,084)
Year Ended December 31, 2016
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	(1,269)	$	(197)	$	-	$	1,466	$	-
Other income		516		5		52,875		(1,029)		52,367
Total revenues		(753)		(192)		52,875		437		52,367
Expenses:
Interest expense		988		51		227		(6)		1,260
Loss on extinguishment of debt		77		-		(3)		-		74
Other expenses		295		16		51,819		(1,023)		51,107
Total expenses		1,360		67		52,043		(1,029)		52,441
Income (loss) from continuing operations before income tax
expense (benefit)		(2,113)		(259)		832		1,466		(74)
Income tax expense (benefit)		(1,301)		(21)		1,507		-		185
Income (loss) from continuing operations		(812)		(238)		(675)		1,466		(259)
Loss from discontinued operations, net of income taxes		(37)		-		(53)		-		(90)
Net income (loss)		(849)		(238)		(728)		1,466		(349)
Less:
Net income (loss) from continuing operations attributable to
noncontrolling interests		-		-		500		-		500
Net income (loss) attributable to AIG	$	(849)	$	(238)	$	(1,228)	$	1,466	$	(849)

Year Ended December 31, 2015
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	3,954	$	1,936	$	-	$	(5,890)	$	-
Other income		88		-		58,953		(714)		58,327
Total revenues		4,042		1,936		58,953		(6,604)		58,327
Expenses:
Other interest expense		1,049		58		302		(128)		1,281
Loss on extinguishment of debt		703		-		46		7		756
Other expenses		1,178		44		52,374		(587)		53,009
Total expenses		2,930		102		52,722		(708)		55,046
Income (loss) from continuing operations before income tax
expense (benefit)		1,112		1,834		6,231		(5,896)		3,281
Income tax expense (benefit)		(1,086)		(73)		2,218		-		1,059
Income (loss) from continuing operations		2,198		1,907		4,013		(5,896)		2,222
Income (loss) from discontinued operations, net of income taxes		(2)		-		2		-		-
Net income (loss)		2,196		1,907		4,015		(5,896)		2,222
Less:
Net income from continuing operations attributable to
noncontrolling interests		-		-		26		-		26
Net income (loss) attributable to AIG	$	2,196	$	1,907	$	3,989	$	(5,896)	$	2,196

* 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
Year Ended December 31, 2017
Net income (loss)	$	(6,084)	$	1,929	$	(85)	$	(1,816)	$	(6,056)
Other comprehensive income (loss)		2,235		7,851		17,857		(25,708)		2,235
Comprehensive income (loss)		(3,849)		9,780		17,772		(27,524)		(3,821)
Total comprehensive income attributable to noncontrolling interests		-		-		28		-		28
Comprehensive income (loss) attributable to AIG	$	(3,849)	$	9,780	$	17,744	$	(27,524)	$	(3,849)
Year Ended December 31, 2016
Net income (loss)	$	(849)	$	(238)	$	(728)	$	1,466	$	(349)
Other comprehensive income (loss)		693		4,080		52,153		(56,233)		693
Comprehensive income (loss)		(156)		3,842		51,425		(54,767)		344
Total comprehensive income attributable to noncontrolling interests		-		-		500		-		500
Comprehensive income (loss) attributable to AIG	$	(156)	$	3,842	$	50,925	$	(54,767)	$	(156)
Year Ended December 31, 2015
Net income (loss)	$	2,196	$	1,907	$	4,015	$	(5,896)	$	2,222
Other comprehensive income (loss)		(8,080)		2,320		54,757		(57,083)		(8,086)
Comprehensive income (loss)		(5,884)		4,227		58,772		(62,979)		(5,864)
Total comprehensive income attributable to noncontrolling interests		-		-		20		-		20
Comprehensive income (loss) attributable to AIG	$	(5,884)	$	4,227	$	58,752	$	(62,979)	$	(5,884)

Condensed Consolidating Statements of Cash Flows

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2017
Net cash (used in) provided by operating activities	$	36	$	1,413	$	(7,426)	$	(2,608)	$	(8,585)
Cash flows from investing activities:
Sales of investments		5,821		-		75,228		(3,758)		77,291
Sales of divested businesses, net		40		-		752		-		792
Purchase of investments		(2,465)		-		(64,539)		3,758		(63,246)
Loans to subsidiaries – net		199		-		63		(262)		-
Contributions from (to) subsidiaries - net		2,446		-		-		(2,446)		-
Net change in restricted cash		-		-		(121)		-		(121)
Net change in short-term investments		1,990		-		108		-		2,098
Other, net		(183)		(5)		(1,955)		-		(2,143)
Net cash (used in) provided by investing activities		7,848		(5)		9,536		(2,708)		14,671
Cash flows from financing activities:
Issuance of long-term debt		1,505		-		1,851		-		3,356
Repayments of long-term debt		(1,724)		-		(1,974)		-		(3,698)
Purchase of common stock		(6,275)		-		-		-		(6,275)
Intercompany loans - net		(63)		-		(199)		262		-
Cash dividends paid		(1,172)		(1,422)		(1,186)		2,608		(1,172)
Other, net		(154)		-		(200)		2,446		2,092
Net cash (used in) financing activities		(7,883)		(1,422)		(1,708)		5,316		(5,697)
Effect of exchange rate changes on cash		-		-		(28)		-		(28)
Change in cash		1		(14)		374		-		361
Cash at beginning of year		2		34		1,832		-		1,868
Change in cash of businesses held for sale		-		-		133		-		133
Cash at end of year	$	3	$	20	$	2,339	$	-	$	2,362

Year Ended December 31, 2016
Net cash (used in) provided by operating activities	$	2,112	$	1,707	$	2,515	$	(3,951)	$	2,383
Cash flows from investing activities:
Sales of investments		5,769		-		81,560		(11,685)		75,644
Sales of divested businesses, net		2,160		-		649		-		2,809
Purchase of investments		(1,002)		-		(80,668)		11,685		(69,985)
Loans to subsidiaries – net		1,525		-		(3)		(1,522)		-
Contributions from (to) subsidiaries - net		1,637		-		-		(1,637)		-
Net change in restricted cash		-		-		385		-		385
Net change in short-term investments		(789)		-		(2,300)		-		(3,089)
Other, net		(141)		-		(879)		-		(1,020)
Net cash (used in) provided by investing activities		9,159		-		(1,256)		(3,159)		4,744
Cash flows from financing activities:
Issuance of long-term debt		3,831		-		2,123		-		5,954
Repayments of long-term debt		(1,996)		(63)		(2,023)		-		(4,082)
Purchase of common stock		(11,460)		-		-		-		(11,460)
Intercompany loans - net		3		(3)		(1,522)		1,522		-
Cash dividends paid		(1,372)		(1,723)		(2,228)		3,951		(1,372)
Other, net		(309)		-		2,799		1,637		4,127
Net cash (used in) provided by financing activities		(11,303)		(1,789)		(851)		7,110		(6,833)
Effect of exchange rate changes on cash		-		-		52		-		52
Change in cash		(32)		(82)		460		-		346
Cash at beginning of year		34		116		1,479		-		1,629
Change in cash of businesses held for sale		-		-		(107)		-		(107)
Cash at end of year	$	2	$	34	$	1,832	$	-	$	1,868

Year Ended December 31, 2015
Net cash (used in) provided by operating activities	$	4,443	$	2,314	$	1,112	$	(4,992)	$	2,877
Cash flows from investing activities:
Sales of investments		7,767		-		69,726		(4,877)		72,616
Purchase of investments		(1,881)		-		(68,261)		4,877		(65,265)
Loans to subsidiaries – net		(83)		-		367		(284)		-
Contributions to subsidiaries		565		-		-		(565)		-
Net change in restricted cash		-		-		1,457		-		1,457
Net change in short-term investments		2,300		-		(1,137)		-		1,163
Other, net		(175)		-		(1,334)		-		(1,509)
Net cash (used in) provided by investing activities		8,493		-		818		(849)		8,462
Cash flows from financing activities:
Issuance of long-term debt		5,540		-		1,327		-		6,867
Repayments of long-term debt		(6,504)		(114)		(3,187)		-		(9,805)
Intercompany loans - net		(201)		3		(86)		284		-
Purchase of common stock		(10,691)		-		-		-		(10,691)
Cash dividends paid to shareholders		(1,028)		(2,178)		(2,814)		4,992		(1,028)
Other, net		(44)		-		2,707		565		3,228
Net cash (used in) provided by financing activities		(12,928)		(2,289)		(2,053)		5,841		(11,429)
Effect of exchange rate changes on cash		-		-		(39)		-		(39)
Change in cash		8		25		(162)		-		(129)
Cash at beginning of year		26		91		1,641		-		1,758
Cash at end of year	$	34	$	116	$	1,479	$	-	$	1,629

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 year ended December 31, 2017 for:
Interest:
Third party	$	(948)	$	(48)	$	(286)	$	-	$	(1,282)
Intercompany		-		(1)		1		-		-
Taxes:
Income tax authorities	$	(329)	$	-	$	(215)	$	-	$	(544)
Intercompany		614		-		(614)		-		-
Cash (paid) received during the year ended December 31, 2016 for:
Interest:
Third party	$	(975)	$	(52)	$	(304)	$	-	$	(1,331)
Intercompany		2		-		(2)		-		-
Taxes:
Income tax authorities	$	(15)	$	-	$	(478)	$	-	$	(493)
Intercompany		479		-		(479)		-		-
Cash (paid) received during the year ended December 31, 2015 for:
Interest:
Third party^*	$	(1,030)	$	(59)	$	(279)	$	-	$	(1,368)
Intercompany		-		-		-		-		-
Taxes:
Income tax authorities	$	(11)	$	-	$	(500)	$	-	$	(511)
Intercompany		829		-		(829)		-		-

Supplementary disclosure of non-cash activities

Years Ended December 31,
(in millions)		2017		2016		2015
Intercompany non-cash financing and investing activities:
Capital contributions	$	259	$	3,245	$	494
Dividends received in the form of securities		735		5,234		2,326
Return of capital		26		-		-
Fixed maturity securities received in exchange for equity securities		-		440		-
Non-cash financing/investing activities:
Non-cash consideration received from sale of shares of AerCap		-		-		500
Non-cash consideration received from sale of United Guaranty		-		1,101		-

BASIS OF PRESENTATION (Details 10K) $ / shares in Units, $ in Millions				3 Months Ended								12 Months Ended
	Nov. 14, 2016 USD ($)	Oct. 18, 2016 USD ($)	Sep. 16, 2016 USD ($)	Dec. 31, 2017 USD ($) item $ / shares	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) $ / shares	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) item $ / shares	Dec. 31, 2016 USD ($) $ / shares	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Nov. 17, 2016 USD ($)	Aug. 31, 2016 USD ($)
Basis of Presentation [Line Items]
Common stock, par value (in dollars per share) \| $ / shares				$ 2.5				$ 2.5				$ 2.5	$ 2.5
Net income (loss) attributable to AIG				$ (6,660)	$ (1,739)	$ 1,130	$ 1,185	$ (3,041)	$ 462	$ 1,913	$ (183)	$ (6,084)	$ (849)	$ 2,196
Income (loss) from continuing operations before income tax expense (benefit)				875	(2,803)	1,667	1,727	(3,455)	737	2,858	(214)	1,466	(74)	3,281
Net income (loss) on sale of divested businesses				(241)	13	60	100	(194)	(128)	(225)	2	68	545	(11)
Repayments of Long-term Debt												3,698	4,082	9,805
Other Income												2,412	3,121	4,088
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest				$ (12)	26	(12)	$ 26	535	(26)	11	(20)	28	500	26
Adjustment
Basis of Presentation [Line Items]
Net income (loss) attributable to AIG								(154)
Income (loss) from continuing operations before income tax expense (benefit)								(12)
Adjusted Pre-Tax Income (Loss)								(1)
Adjustments 2015
Basis of Presentation [Line Items]
Net income (loss) attributable to AIG														(156)	$ (51)
Income (loss) from continuing operations before income tax expense (benefit)														(376)
Adjusted Pre-Tax Income (Loss)														(235)
Adjustments 2016
Basis of Presentation [Line Items]
Net income (loss) attributable to AIG									(65)	$ 66	$ 19		(174)	(67)	$ (12)
Income (loss) from continuing operations before income tax expense (benefit)													(57)
Adjusted Pre-Tax Income (Loss)													(6)
ILFC
Basis of Presentation [Line Items]
Non-cash consideration received from sale												0	0	0
NSM
Basis of Presentation [Line Items]
Total consideration																	$ 201
Net income (loss) on sale of divested businesses									$ 105
Ascot
Basis of Presentation [Line Items]
Consideration in cash													244
Total consideration			$ 1,100
Net income (loss) on sale of divested businesses			$ 162
Voting interest in subsidiary, Percent			100.00%
Ownership reflecting consideration, Percent			20.00%
United Guaranty Asia
Basis of Presentation [Line Items]
Consideration in cash					40								2,200
Non-cash consideration received from sale												$ 0	1,101	$ 0
Total consideration								$ 3,300					3,300
Net income (loss) on sale of divested businesses													$ 697
Voting interest in subsidiary, Percent								100.00%					100.00%
Dividend-in-lieu													$ 261
Cash consideration retained by buyer													40
Korea Fund
Basis of Presentation [Line Items]
Income (loss) from continuing operations before income tax expense (benefit)													464
Total consideration																$ 2,500
Repayments of Long-term Debt													1,200
Other Income													$ 1,100
Certain insurance operations
Basis of Presentation [Line Items]
Consideration in cash		$ 234			$ 168	$ 48
AIG Fuji Life Insurance
Basis of Presentation [Line Items]
Consideration in cash	$ 333
Net income (loss) on sale of divested businesses	$ (591)
Minimum
Basis of Presentation [Line Items]
Number of Countries in which the entity operates \| item				80								80

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other significant accounting policies) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of Significant Accounting Policies [Line Items]
Earning pattern of a quota share reinsurance contract	24 months
Other income
Proceeds from legal settlements	$ 27	$ 44	$ 94
Premiums and other receivables
Allowance for doubtful accounts on premiums and other receivables	$ 236	$ 279	$ 333

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other Assets and PPE) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other assets
Deferred bonus interest and deferred sales inducement assets	$ 738	$ 808
Amortization expense associated with deferred bonus interest and deferred sales inducement assets	$ 94	$ 77	$ 88
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	40 years
Furniture and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Software Development \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years

SEGMENT INFORMATION (Details - Continuing operations by reportable segment) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment results
Total Revenues	$ 12,635	$ 11,751	$ 12,502	$ 12,632	$ 13,010	$ 12,854	$ 14,724	$ 11,779	$ 49,520	$ 52,367	$ 58,327
Net investment income									14,179	14,065	14,053
Interest Expense									1,168	1,260	1,281
Amortization of deferred acquisition costs									4,288	4,521	5,236
Pre-tax operating income (loss)	$ 875	$ (2,803)	$ 1,667	$ 1,727	$ (3,455)	$ 737	$ 2,858	$ (214)	1,466	(74)	3,281
Eliminations \| Total Revenues
Segment results
Pre-tax operating income (loss)									49,520	52,367	58,327
Eliminations \| Net investment income
Segment results
Pre-tax operating income (loss)									14,179	14,065	14,053
Eliminations \| Interest expense
Segment results
Pre-tax operating income (loss)									1,168	1,260	1,281
Eliminations \| Amortization of DAC
Segment results
Pre-tax operating income (loss)									4,288	4,521	5,236
Eliminations \| Adjusted Pre-Tax Income (loss)
Segment results
Pre-tax operating income (loss)									1,466	(74)	3,281
AIG Consolidation and Eliminations
Segment results
Total Revenues									(308)	(494)	(496)
Net investment income									(280)	(351)	(315)
Interest Expense									(53)	(120)	(103)
Amortization of deferred acquisition costs									4	(117)	(26)
Pre-tax operating income (loss)									75	42	(76)
Total AIG Consolidated adjusted revenues and adjusted pre-tax income (loss)
Segment results
Total Revenues									50,776	54,191	57,591
Net investment income									14,033	13,945	14,096
Interest Expense									1,168	1,260	1,281
Amortization of deferred acquisition costs									4,579	4,797	5,236
Pre-tax operating income (loss)									3,158	1,415	3,984
General Insurance \| Reportable Segments
Segment results
Total Revenues									29,694	33,140	34,668
Net investment income									3,668	3,554	3,746
Interest Expense									22	28	13
Amortization of deferred acquisition costs									3,765	4,121	4,319
Pre-tax operating income (loss)									(813)	(2,051)	628
General Insurance \| Reportable Segments \| North America
Segment results
Total Revenues									14,600	17,005	18,482
Net investment income									3,145	3,041	3,196
Interest Expense									31	28	13
Amortization of deferred acquisition costs									1,305	1,444	1,699
Pre-tax operating income (loss)									(232)	(2,399)	558
General Insurance \| Reportable Segments \| International
Segment results
Total Revenues									15,094	16,135	16,186
Net investment income									523	513	550
Interest Expense									(9)	0	0
Amortization of deferred acquisition costs									2,460	2,677	2,620
Pre-tax operating income (loss)									(581)	348	70
Life and Retirement \| Reportable Segments
Segment results
Total Revenues									15,586	13,778	15,322
Net investment income									7,816	7,622	7,541
Interest Expense									109	92	52
Amortization of deferred acquisition costs									743	613	794
Pre-tax operating income (loss)									3,831	3,428	3,124
Life and Retirement \| Reportable Segments \| Individual Retirement
Segment results
Total Revenues									5,514	5,758	6,450
Net investment income									4,013	3,878	3,805
Interest Expense									58	50	27
Amortization of deferred acquisition costs									415	298	431
Pre-tax operating income (loss)									2,289	2,269	1,812
Life and Retirement \| Reportable Segments \| Group Retirement
Segment results
Total Revenues									2,848	2,769	2,834
Net investment income									2,164	2,146	2,192
Interest Expense									32	26	15
Amortization of deferred acquisition costs									84	129	50
Pre-tax operating income (loss)									1,004	931	1,100
Life and Retirement \| Reportable Segments \| Life insurance
Segment results
Total Revenues									4,056	3,818	3,771
Net investment income									1,044	1,035	1,034
Interest Expense									13	12	7
Amortization of deferred acquisition costs									239	182	311
Pre-tax operating income (loss)									274	(37)	(51)
Life and Retirement \| Reportable Segments \| Institutional Markets
Segment results
Total Revenues									3,168	1,433	2,267
Net investment income									595	563	510
Interest Expense									6	4	3
Amortization of deferred acquisition costs									5	4	2
Pre-tax operating income (loss)									264	265	263
Other Operations \| Reportable Segments
Segment results
Total Revenues									1,413	2,517	2,326
Net investment income									53	207	196
Interest Expense									968	978	1,027
Amortization of deferred acquisition costs									(9)	72	47
Pre-tax operating income (loss)									(1,405)	(1,011)	(825)
Legacy Portfolio \| Reportable Segments
Segment results
Total Revenues									4,391	5,250	5,771
Net investment income									2,776	2,913	2,928
Interest Expense									122	282	292
Amortization of deferred acquisition costs									76	108	102
Pre-tax operating income (loss)									$ 1,470	$ 1,007	$ 1,133

SEGMENT INFORMATION (Details - Continuing operations by reportable segment - Pretax operating income to pre-tax income)) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income:
Gain (Loss) on extinguishment of debt	$ (1)	$ 1	$ (4)	$ (1)	$ (2)	$ (14)	$ 7	$ 83	$ 5	$ (74)	$ (756)
Income (loss) from divested businesses	(241)	13	60	100	(194)	(128)	(225)	2	68	545	(11)
Net reserve discount (benefit) charge									(187)	422	71
Restructuring and other costs	154	31	47	181	206	210	90	188
Pre-tax operating income (loss)	$ 875	$ (2,803)	$ 1,667	$ 1,727	$ (3,455)	$ 737	$ 2,858	$ (214)	1,466	(74)	3,281
Reconciling items from pre-tax operating income to pre-tax income \| Total Revenues
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									146	120	(43)
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains									0	0	0
Other income (expense) - net									(49)	(44)	(43)
Gain (Loss) on extinguishment of debt									0	0	0
Net realized capital gains (losses)									(1,380)	(1,944)	776
Income (loss) from divested businesses									0	0	(48)
Non-operating litigation reserves and settlements									27	44	94
Reserve development related to non-operating run-off insurance business									0	0	0
Net reserve discount (benefit) charge									0	0	0
Pension expense related to a one-time lump sum payment to former employees									0	0
Restructuring and other costs									0	0	0
Other									0	0	0
Pre-tax operating income (loss)									49,520	52,367	58,327
Reconciling items from pre-tax operating income to pre-tax income \| Net investment income
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									146	120	(43)
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains									0	0	0
Other income (expense) - net									0	0	0
Gain (Loss) on extinguishment of debt									0	0	0
Net realized capital gains (losses)									0	0	0
Income (loss) from divested businesses									0	0	0
Non-operating litigation reserves and settlements									0	0	0
Reserve development related to non-operating run-off insurance business									0	0	0
Net reserve discount (benefit) charge									0	0	0
Pension expense related to a one-time lump sum payment to former employees									0	0
Restructuring and other costs									0	0	0
Other									0	0	0
Pre-tax operating income (loss)									14,179	14,065	14,053
Reconciling items from pre-tax operating income to pre-tax income \| Interest expense
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									0	0	0
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains									0	0	0
Other income (expense) - net									0	0	0
Gain (Loss) on extinguishment of debt									0	0	0
Net realized capital gains (losses)									0	0	0
Income (loss) from divested businesses									0	0	0
Non-operating litigation reserves and settlements									0	0	0
Reserve development related to non-operating run-off insurance business									0	0	0
Net reserve discount (benefit) charge									0	0	0
Pension expense related to a one-time lump sum payment to former employees									0	0
Restructuring and other costs									0	0	0
Other									0	0	0
Pre-tax operating income (loss)									1,168	1,260	1,281
Reconciling items from pre-tax operating income to pre-tax income \| Amortization of DAC
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									0	0	0
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains									(291)	(276)	0
Other income (expense) - net									0	0	0
Gain (Loss) on extinguishment of debt									0	0	0
Net realized capital gains (losses)									0	0	0
Income (loss) from divested businesses									0	0	0
Non-operating litigation reserves and settlements									0	0	0
Reserve development related to non-operating run-off insurance business									0	0	0
Net reserve discount (benefit) charge									0	0	0
Pension expense related to a one-time lump sum payment to former employees									0	0
Restructuring and other costs									0	0	0
Other									0	0	0
Pre-tax operating income (loss)									4,288	4,521	5,236
Reconciling items from pre-tax operating income to pre-tax income \| Adjusted Pre-Tax 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									146	120	(43)
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains									303	195	(15)
Other income (expense) - net									0	0	0
Gain (Loss) on extinguishment of debt									5	(74)	(756)
Net realized capital gains (losses)									(1,380)	(1,944)	776
Income (loss) from divested businesses									68	545	(59)
Non-operating litigation reserves and settlements									129	41	82
Reserve development related to non-operating run-off insurance business									(303)	42	(263)
Net reserve discount (benefit) charge									(187)	427	71
Pension expense related to a one-time lump sum payment to former employees									(60)	(147)
Restructuring and other costs									(413)	(694)	(496)
Other									0	0	0
Pre-tax operating income (loss)									$ 1,466	$ (74)	$ 3,281

SEGMENT INFORMATION (Details - Identifiable assets and capital expenditures by reportable segment) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	$ 498,301	$ 498,264
Capital Expenditures	483	1,119
Reportable Segments \| General Insurance Companies
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	114,841	118,287
Capital Expenditures	239	685
Reportable Segments \| Life and Retirement Companies
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	289,457	269,813
Capital Expenditures	88	85
Reportable Segments \| Other
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	105,425	122,016
Capital Expenditures	156	349
Reclassification and Eliminations
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	(111,862)	(114,558)
AIG Consolidation and Eliminations
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	(11,422)	(11,852)
Capital Expenditures	$ 0	$ 0

SEGMENT INFORMATION (Details - Consolidated operations and long-lived assets by major geographic area) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues	$ 12,635	$ 11,751	$ 12,502	$ 12,632	$ 13,010	$ 12,854	$ 14,724	$ 11,779	$ 49,520	$ 52,367	$ 58,327
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation	2,522				2,660				2,522	2,660	3,135
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues									34,149	36,871	41,680
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation	1,630				1,326				1,630	1,326	1,819
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues									15,371	15,496	16,647
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation	$ 892				$ 1,334				$ 892	$ 1,334	$ 1,316

HELD-FOR-SALE CLASSIFICATION (Details) - USD ($) $ in Millions			3 Months Ended								12 Months Ended
	Nov. 14, 2016	Oct. 18, 2016	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Held-for-Sale Classification
Net income (loss) on sale of divested businesses			$ (241)	$ 13	$ 60	$ 100	$ (194)	$ (128)	$ (225)	$ 2	$ 68	$ 545	$ (11)
Assets:
Mortgage and other loans receivable, net			37,023				33,240				37,023	33,240
Other invested assets			20,822				24,538				20,822	24,538
Short-term investments			10,386				12,302				10,386	12,302
Cash			2,362				1,868				2,362	1,868	1,629	$ 1,758
Accrued investment income			2,356				2,495				2,356	2,495
Premiums and other receivables, net of allowance			10,248				10,465				10,248	10,465
Reinsurance assets, net of allowance			33,024				21,901				33,024	21,901
Deferred policy acquisition costs			10,994				11,042				10,994	11,042	11,115	9,828
Other assets			10,194				10,815				10,194	10,815
Total assets held for sale			0				7,199				0	7,199
Liabilities:
Liability for unpaid losses and loss adjustment expenses			78,393				77,077				78,393	77,077	74,942	$ 77,260
Unearned premiums			19,030				19,634				19,030	19,634
Future policy benefits for life and accident and health insurance contracts			45,432				42,204				45,432	42,204
Other policyholder funds			3,648				3,989				3,648	3,989
Long-term Debt			31,640				30,912				31,640	30,912
Other Liabilities			26,050				26,296				26,050	26,296
Total liabilities held for sale			$ 0				6,106				0	6,106
Held for sale [Member]
Assets:
Fixed maturity securities							6,045					6,045
Equity Securities							149					149
Mortgage and other loans receivable, net							137					137
Other invested assets							2					2
Short-term investments							130					130
Cash							133					133
Accrued investment income							21					21
Premiums and other receivables, net of allowance							351					351
Reinsurance assets, net of allowance							8					8
Deferred policy acquisition costs							471					471
Other assets							273					273
Assets of businesses held for sale							7,720					7,720
Less: Loss Accrual							(521)					(521)
Total assets held for sale							7,199					7,199
Liabilities:
Liability for unpaid losses and loss adjustment expenses							402					402
Unearned premiums							297					297
Future policy benefits for life and accident and health insurance contracts							4,579					4,579
Other policyholder funds							378					378
Long-term Debt							0					0
Other Liabilities							450					450
Total liabilities held for sale							$ 6,106					$ 6,106
United Guaranty Asia
Held-for-Sale Classification
Voting interest in subsidiary, Percent							100.00%					100.00%
Total consideration							$ 3,300					$ 3,300
Consideration in cash				40								2,200
Non-cash consideration received from sale											$ 0	1,101	$ 0
Cash consideration retained by buyer												40
Dividend-in-lieu												261
Net income (loss) on sale of divested businesses												$ 697
Certain insurance operations
Held-for-Sale Classification
Consideration in cash		$ 234		$ 168	$ 48
AIG Fuji Life Insurance
Held-for-Sale Classification
Consideration in cash	$ 333
Net income (loss) on sale of divested businesses	$ (591)

FAIR VALUE MEASUREMENTS (Details - Long Term Debt) - Borrowings supported by assets - GIAs	Dec. 31, 2017
Debt Instrument [Line Items]
Range of guaranteed minimum return rates (as a percent)	7.62%
Maximum
Debt Instrument [Line Items]
Range of guaranteed minimum return rates (as a percent)	7.62%
Minimum
Debt Instrument [Line Items]
Range of guaranteed minimum return rates (as a percent)	0.50%

FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	$ 238,992	$ 241,537
Other bond securities	12,772	13,998
Equity securities available for sale	1,708	2,078
Other equity securities	589	482
Other invested assets	6,248	6,946
Derivative Assets, Fair Value	3,545	3,977
Derivative assets, Counterparty netting	(1,464)	(1,265)
Derivative assets, Cash collateral	(1,159)	(903)
Short-term investments, portion measured at fair value	2,615	3,341
Separate account assets, at fair value	92,798	82,972
Other assets	922	1,809
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	4,150	3,058
Other policyholder funds	3,648	3,989
Derivative Liabilities, Fair Value	3,748	4,802
Derivative liabilities, Counterparty netting	(1,464)	(1,265)
Derivative liabilities, Cash collateral	(1,249)	(1,521)
Long-term debt, portion measured at fair value	2,888	3,428
Other liabilities	1,124	2,016
Preferred Stock
Fair Value, Liabilities Measured on Recurring Basis
Assets transferred from Level 1 to Level 2	126	0
Recurring Basis \| U.S. government and government sponsored entities
Fair Value, Liabilities Measured on Recurring Basis
Assets transferred from Level 1 to Level 2	113	34
Recurring Basis \| Non-U.S. governments
Fair Value, Liabilities Measured on Recurring Basis
Assets transferred from Level 1 to Level 2	392	1,074
Recurring Basis \| Level 1
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	221	115
Other bond securities	238	0
Equity securities available for sale	1,189	2,068
Other equity securities	589	482
Mortgage and other loans receivable		0
Other invested assets	0	0
Derivative Assets, Fair Value	189	188
Short-term investments, portion measured at fair value	2,078	2,660
Separate account assets, at fair value	87,141	77,318
Fair value assets measured on recurring basis, total	91,645	82,831
Fair Value, Liabilities Measured on Recurring Basis
Other policyholder funds	0	5
Derivative Liabilities, Fair Value	4	12
Other liabilities	46	0
Fair value liabilities measured on recurring basis, total	50	17
Recurring Basis \| Level 1 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	1	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	2
Recurring Basis \| Level 1 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	188	188
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	2	12
Recurring Basis \| Level 1 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	201	63
Other bond securities	238	0
Recurring Basis \| Level 1 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale		0
Other bond securities	0	0
Recurring Basis \| Level 1 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	20	52
Other bond securities	0	0
Recurring Basis \| Level 1 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale		0
Other bond securities	0	0
Recurring Basis \| Level 1 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale		0
Other bond securities	0	0
Recurring Basis \| Level 1 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale		0
Other bond securities	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
Other bond securities	0	0
Recurring Basis \| Level 1 \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	1,061	1,056
Recurring Basis \| Level 1 \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	18	752
Recurring Basis \| Level 1 \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	110	260
Recurring Basis \| Level 2
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	209,775	211,451
Other bond securities	6,022	6,518
Equity securities available for sale	519	10
Other equity securities	0	0
Mortgage and other loans receivable		0
Other invested assets	1	1
Derivative Assets, Fair Value	3,249	3,713
Short-term investments, portion measured at fair value	537	681
Separate account assets, at fair value	5,657	5,654
Other assets		0
Fair value assets measured on recurring basis, total	225,760	228,028
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	14	25
Other policyholder funds		0
Derivative Liabilities, Fair Value	3,450	4,405
Long-term debt, portion measured at fair value	2,888	3,357
Other liabilities	43	0
Fair value liabilities measured on recurring basis, total	6,395	7,787
Recurring Basis \| Level 2 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	2,170	2,328
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	2,176	3,039
Recurring Basis \| Level 2 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	827	1,320
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	1,241	1,358
Recurring Basis \| Level 2 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	252	59
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	19	7
Recurring Basis \| Level 2 \| Credit contracts
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	14
Recurring Basis \| Level 2 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0	6
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0	1
Recurring Basis \| Level 2 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	2,455	1,929
Other bond securities	2,564	2,939
Recurring Basis \| Level 2 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	16,240	22,732
Other bond securities	0	0
Recurring Basis \| Level 2 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	15,631	14,466
Other bond securities	57	51
Recurring Basis \| Level 2 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	133,003	131,047
Other bond securities	1,891	1,755
Recurring Basis \| Level 2 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	21,098	20,468
Other bond securities	421	420
Recurring Basis \| Level 2 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	13,217	12,231
Other bond securities	485	448
Recurring Basis \| Level 2 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	8,131	8,578
Other bond securities	604	905
Recurring Basis \| Level 2 \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	0	9
Recurring Basis \| Level 2 \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	515	0
Recurring Basis \| Level 2 \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	4	1
Recurring Basis \| Level 3
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	28,996	29,971
Other bond securities	6,512	7,480
Equity securities available for sale	0	0
Other equity securities	0	0
Mortgage and other loans receivable	5	11
Other invested assets	250	204
Derivative Assets, Fair Value	107	76
Fair value assets measured on recurring basis, total	35,870	37,742
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	4,136	3,033
Derivative Liabilities, Fair Value	294	385
Long-term debt, portion measured at fair value	0	71
Other liabilities		0
Fair value liabilities measured on recurring basis, total	4,430	3,489
Recurring Basis \| Level 3 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	22	38
Recurring Basis \| Level 3 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	4	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	4	11
Recurring Basis \| Level 3 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	82	58
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	0	0
Recurring Basis \| Level 3 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	1	2
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	263	331
Recurring Basis \| Level 3 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	20	16
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	5	5
Recurring Basis \| Level 3 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0	0
Other bond securities	0	0
Recurring Basis \| Level 3 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	2,404	2,040
Other bond securities	0	0
Recurring Basis \| Level 3 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	8	17
Other bond securities	0	0
Recurring Basis \| Level 3 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	1,173	1,133
Other bond securities	18	17
Recurring Basis \| Level 3 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	16,136	16,906
Other bond securities	1,464	1,605
Recurring Basis \| Level 3 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	624	2,040
Other bond securities	74	155
Recurring Basis \| Level 3 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	8,651	7,835
Other bond securities	4,956	5,703
Recurring Basis \| Level 3 \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		0
Recurring Basis \| Level 3 \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		0
Recurring Basis \| Level 3 \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		0
Recurring Basis \| Counterparty Netting
Fair Value, Assets Measured on Recurring Basis
Derivative assets, Counterparty netting	(1,464)	(1,265)
Fair value assets measured on recurring basis, total	(1,464)	(1,265)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, Counterparty netting	(1,464)	(1,265)
Other liabilities		0
Fair value liabilities measured on recurring basis, total	(1,464)	(1,265)
Recurring Basis \| Counterparty Netting \| Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, Counterparty netting	(1,464)	(1,265)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, Counterparty netting	(1,464)	(1,265)
Recurring Basis \| Cash Collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, Cash collateral	(1,159)	(903)
Fair value assets measured on recurring basis, total	(1,159)	(903)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, Cash collateral	(1,249)	(1,521)
Other liabilities		0
Fair value liabilities measured on recurring basis, total	(1,249)	(1,521)
Recurring Basis \| Cash Collateral \| Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, Cash collateral	(1,159)	(903)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, Cash collateral	(1,249)	(1,521)
Recurring Basis \| Total Fair Value
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	238,992	241,537
Other bond securities	12,772	13,998
Equity securities available for sale	1,708	2,078
Other equity securities	589	482
Mortgage and other loans receivable	5	11
Other invested assets	251	205
Derivative Assets, Fair Value	922	1,809
Short-term investments, portion measured at fair value	2,615	3,341
Separate account assets, at fair value	92,798	82,972
Other assets		0
Fair value assets measured on recurring basis, total	350,652	346,433
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	4,150	3,058
Other policyholder funds	0	5
Derivative Liabilities, Fair Value	1,035	2,016
Long-term debt, portion measured at fair value	2,888	3,428
Other liabilities	89	0
Fair value liabilities measured on recurring basis, total	8,162	8,507
Recurring Basis \| Total Fair Value \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	2,171	2,328
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	2,200	3,077
Recurring Basis \| Total Fair Value \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	831	1,320
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	1,245	1,369
Recurring Basis \| Total Fair Value \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	522	305
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	21	19
Recurring Basis \| Total Fair Value \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	1	2
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	277	331
Recurring Basis \| Total Fair Value \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	20	22
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	5	6
Recurring Basis \| Total Fair Value \| Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value	(2,623)	(2,168)
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value	(2,713)	(2,786)
Recurring Basis \| Total Fair Value \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	2,656	1,992
Other bond securities	2,802	2,939
Recurring Basis \| Total Fair Value \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	18,644	24,772
Other bond securities	0	0
Recurring Basis \| Total Fair Value \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	15,659	14,535
Other bond securities	57	51
Recurring Basis \| Total Fair Value \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	134,176	132,180
Other bond securities	1,909	1,772
Recurring Basis \| Total Fair Value \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	37,234	37,374
Other bond securities	1,885	2,025
Recurring Basis \| Total Fair Value \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	13,841	14,271
Other bond securities	559	603
Recurring Basis \| Total Fair Value \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	16,782	16,413
Other bond securities	5,560	6,608
Recurring Basis \| Total Fair Value \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	1,061	1,065
Recurring Basis \| Total Fair Value \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	533	752
Recurring Basis \| Total Fair Value \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	$ 114	$ 261

FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	$ 37,666	$ 38,020
Net Realized and Unrealized Gains (Losses) Included in Income	2,133	1,380
Other Comprehensive Income (Loss)	1,298	(321)
Purchases, Sales, Issues and Settlements, Net	(4,647)	(1,275)
Gross Transfers in, assets	956	1,364
Gross Transfers out, assets	(1,643)	(1,485)
Divested Businesses	0	(14)
Reclassified to Assets Held for Sale	0	(3)
Balance End of Period	35,763	37,666
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	487	(410)
Balance at the Beginning of the Period	3,413	3,028
Net realized and unrealized gains and losses related to Level 3 items, liabilities	639	341
Accumulated Other Comprehensive Income (loss)		0
Purchases, Sales, Issues and Settlements-Net	274	153
Gross Transfers in, liabilities	(3)	0
Gross Transfers out, liabilities	0	(109)
Balance at the End of the Period	4,323	3,413
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	(318)	(156)
Policyholder contract deposits
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	3,033	2,289
Net realized and unrealized gains and losses related to Level 3 items, liabilities	807	441
Accumulated Other Comprehensive Income (loss)	0	0
Purchases, Sales, Issues and Settlements-Net	296	303
Gross Transfers in, liabilities	0	0
Gross Transfers out, liabilities	0	0
Balance at the End of the Period	4,136	3,033
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	(499)	(366)
Derivative liabilities, net
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	309	556
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(184)	(104)
Accumulated Other Comprehensive Income (loss)		0
Purchases, Sales, Issues and Settlements-Net	65	(147)
Gross Transfers in, liabilities	(3)	0
Gross Transfers out, liabilities	0	4
Balance at the End of the Period	187	309
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	181	211
Interest rate contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	38	50
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(5)	(8)
Accumulated Other Comprehensive Income (loss)	0	0
Purchases, Sales, Issues and Settlements-Net	(11)	(4)
Gross Transfers in, liabilities	0	0
Gross Transfers out, liabilities	0	0
Balance at the End of the Period	22	38
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	5	6
Foreign exchange contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	11	7
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(2)	5
Accumulated Other Comprehensive Income (loss)	0	0
Purchases, Sales, Issues and Settlements-Net	(9)	(1)
Gross Transfers in, liabilities	0	0
Gross Transfers out, liabilities	0	0
Balance at the End of the Period	0	11
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	3	(4)
Equity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(58)	(54)
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(41)	(10)
Accumulated Other Comprehensive Income (loss)	0	0
Purchases, Sales, Issues and Settlements-Net	17	6
Gross Transfers in, liabilities	0	0
Gross Transfers out, liabilities	0	0
Balance at the End of the Period	(82)	(58)
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	35	10
Commodity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	0	0
Net realized and unrealized gains and losses related to Level 3 items, liabilities	0	0
Accumulated Other Comprehensive Income (loss)	0	0
Purchases, Sales, Issues and Settlements-Net	0	0
Gross Transfers in, liabilities	0	0
Gross Transfers out, liabilities	0	0
Balance at the End of the Period	0	0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	0	0
Credit contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	329	505
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(62)	(81)
Accumulated Other Comprehensive Income (loss)	0	0
Purchases, Sales, Issues and Settlements-Net	(5)	(95)
Gross Transfers in, liabilities	0	0
Gross Transfers out, liabilities	0	0
Balance at the End of the Period	262	329
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	61	71
Other contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(11)	48
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(74)	(10)
Accumulated Other Comprehensive Income (loss)	0	0
Purchases, Sales, Issues and Settlements-Net	73	(53)
Gross Transfers in, liabilities	(3)	0
Gross Transfers out, liabilities	0	4
Balance at the End of the Period	(15)	(11)
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	77	128
Long-term debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	71	183
Net realized and unrealized gains and losses related to Level 3 items, liabilities	16	4
Accumulated Other Comprehensive Income (loss)		0
Purchases, Sales, Issues and Settlements-Net	(87)	(3)
Gross Transfers in, liabilities		0
Gross Transfers out, liabilities	0	(113)
Balance at the End of the Period	0	71
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	0	(1)
Bonds available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	29,971	28,817
Net Realized and Unrealized Gains (Losses) Included in Income	1,080	1,065
Other Comprehensive Income (Loss)	1,304	(321)
Purchases, Sales, Issues and Settlements, Net	(2,820)	476
Gross Transfers in, assets	933	1,299
Gross Transfers out, assets	(1,472)	(1,348)
Divested Businesses	0	(14)
Reclassified to Assets Held for Sale	0	(3)
Balance End of Period	28,996	29,971
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		0
Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	2,040	2,124
Net Realized and Unrealized Gains (Losses) Included in Income	5	5
Other Comprehensive Income (Loss)	167	0
Purchases, Sales, Issues and Settlements, Net	216	61
Gross Transfers in, assets	8	2
Gross Transfers out, assets	(32)	(152)
Balance End of Period	2,404	2,040
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		0
Bonds available for sale \| Non-U.S. governments
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	17	32
Net Realized and Unrealized Gains (Losses) Included in Income	(9)	(3)
Other Comprehensive Income (Loss)	9	(12)
Purchases, Sales, Issues and Settlements, Net	(9)	7
Gross Transfers in, assets	0	1
Gross Transfers out, assets	0	(5)
Divested Businesses		0
Reclassified to Assets Held for Sale	0	(3)
Balance End of Period	8	17
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		0
Bonds available for sale \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	1,133	1,370
Net Realized and Unrealized Gains (Losses) Included in Income	(3)	(13)
Other Comprehensive Income (Loss)	20	(42)
Purchases, Sales, Issues and Settlements, Net	(259)	(111)
Gross Transfers in, assets	886	920
Gross Transfers out, assets	(604)	(977)
Divested Businesses	0	(14)
Reclassified to Assets Held for Sale		0
Balance End of Period	1,173	1,133
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		0
Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	16,906	16,537
Net Realized and Unrealized Gains (Losses) Included in Income	1,071	970
Other Comprehensive Income (Loss)	942	(24)
Purchases, Sales, Issues and Settlements, Net	(2,763)	(878)
Gross Transfers in, assets	19	330
Gross Transfers out, assets	(39)	(29)
Balance End of Period	16,136	16,906
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		0
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	2,040	2,585
Net Realized and Unrealized Gains (Losses) Included in Income	35	72
Other Comprehensive Income (Loss)	11	(132)
Purchases, Sales, Issues and Settlements, Net	(748)	(323)
Gross Transfers in, assets	20	23
Gross Transfers out, assets	(734)	(185)
Balance End of Period	624	2,040
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		0
Bonds available for sale \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	7,835	6,169
Net Realized and Unrealized Gains (Losses) Included in Income	(19)	34
Other Comprehensive Income (Loss)	155	(111)
Purchases, Sales, Issues and Settlements, Net	743	1,720
Gross Transfers in, assets	0	23
Gross Transfers out, assets	(63)	0
Balance End of Period	8,651	7,835
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		0
Other bond securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	7,480	8,846
Net Realized and Unrealized Gains (Losses) Included in Income	1,039	314
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issues and Settlements, Net	(1,861)	(1,662)
Gross Transfers in, assets	23	65
Gross Transfers out, assets	(169)	(83)
Balance End of Period	6,512	7,480
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	481	(418)
Other bond securities \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	17	17
Net Realized and Unrealized Gains (Losses) Included in Income	3	0
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issues and Settlements, Net	10	0
Gross Transfers in, assets	0	0
Gross Transfers out, assets	(12)	0
Balance End of Period	18	17
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	1	0
Other bond securities \| Residential mortgage-backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	1,605	1,581
Net Realized and Unrealized Gains (Losses) Included in Income	191	43
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issues and Settlements, Net	(313)	(1)
Gross Transfers in, assets	14	0
Gross Transfers out, assets	(33)	(18)
Balance End of Period	1,464	1,605
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	113	(24)
Other bond securities \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	155	193
Net Realized and Unrealized Gains (Losses) Included in Income	4	0
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issues and Settlements, Net	24	(38)
Gross Transfers in, assets	9	0
Gross Transfers out, assets	(118)	0
Balance End of Period	74	155
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	5	(1)
Other bond securities \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	5,703	7,055
Net Realized and Unrealized Gains (Losses) Included in Income	841	271
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issues and Settlements, Net	(1,582)	(1,623)
Gross Transfers in, assets	0	65
Gross Transfers out, assets	(6)	(65)
Balance End of Period	4,956	5,703
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	362	(393)
Equity securities available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	0	0
Net Realized and Unrealized Gains (Losses) Included in Income	0	0
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issues and Settlements, Net	1	0
Gross Transfers in, assets	0	0
Gross Transfers out, assets	(1)	0
Balance End of Period	0	0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0
Equity securities available for sale \| Common Stock
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	0	0
Net Realized and Unrealized Gains (Losses) Included in Income	0	0
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issues and Settlements, Net	1	0
Gross Transfers in, assets	0	0
Gross Transfers out, assets	(1)	0
Balance End of Period	0	0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0
Mortgage and other loans receivable
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	11	11
Net Realized and Unrealized Gains (Losses) Included in Income	0	0
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issues and Settlements, Net	(6)	0
Gross Transfers in, assets	0	0
Gross Transfers out, assets	0	0
Balance End of Period	5	11
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0
Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	204	332
Net Realized and Unrealized Gains (Losses) Included in Income	14	1
Other Comprehensive Income (Loss)	(6)	0
Purchases, Sales, Issues and Settlements, Net	39	(75)
Gross Transfers in, assets	0	0
Gross Transfers out, assets	(1)	(54)
Balance End of Period	250	204
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	6	8
Other equity securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	0	14
Net Realized and Unrealized Gains (Losses) Included in Income	0	0
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issues and Settlements, Net	0	(14)
Gross Transfers in, assets	0	0
Gross Transfers out, assets	0	0
Balance End of Period	0	0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	$ 0	$ 0

FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issues and settlements) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	$ 4,053	$ 5,974
Sales, assets	(1,071)	(971)
Settlements, assets	(7,629)	(6,278)
Purchases, Sales, Issues and Settlements, Net, assets	(4,647)	(1,275)
Purchases, Sales, Issues and Settlements, Net, liabilities	274	153
Issuances	0	0
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	(64)	(188)
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.	(36)	(189)
Liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	(4)	(6)
Sales, liabilities	344	437
Settlements, liabilities	(66)	(278)
Policyholder contract deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Sales, liabilities	344	437
Settlements, liabilities	(48)	(134)
Purchases, Sales, Issues and Settlements, Net, liabilities	296	303
Derivative liabilities, net
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	(4)	(6)
Sales, liabilities	0	0
Settlements, liabilities	69	(141)
Purchases, Sales, Issues and Settlements, Net, liabilities	65	(147)
Long-term debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Settlements, liabilities	(87)	(3)
Purchases, Sales, Issues and Settlements, Net, liabilities	(87)	(3)
Bonds available for sale
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	3,704	5,457
Sales, assets	(725)	(311)
Settlements, assets	(5,799)	(4,670)
Purchases, Sales, Issues and Settlements, Net, assets	(2,820)	476
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	286	164
Sales, assets	(16)	(8)
Settlements, assets	(54)	(95)
Purchases, Sales, Issues and Settlements, Net, assets	216	61
Bonds available for sale \| Non-U.S. governments
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	9	13
Sales, assets	(1)	0
Settlements, assets	(17)	(6)
Purchases, Sales, Issues and Settlements, Net, assets	(9)	7
Bonds available for sale \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	36	29
Sales, assets	(59)	(25)
Settlements, assets	(236)	(115)
Purchases, Sales, Issues and Settlements, Net, assets	(259)	(111)
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	1,199	2,635
Sales, assets	(260)	(81)
Settlements, assets	(3,702)	(3,432)
Purchases, Sales, Issues and Settlements, Net, assets	(2,763)	(878)
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	75	156
Sales, assets	(146)	(98)
Settlements, assets	(677)	(381)
Purchases, Sales, Issues and Settlements, Net, assets	(748)	(323)
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	2,099	2,460
Sales, assets	(243)	(99)
Settlements, assets	(1,113)	(641)
Purchases, Sales, Issues and Settlements, Net, assets	743	1,720
Other bond securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	229	465
Sales, assets	(294)	(648)
Settlements, assets	(1,796)	(1,479)
Purchases, Sales, Issues and Settlements, Net, assets	(1,861)	(1,662)
Other bond securities \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	11
Sales, assets	0
Settlements, assets	(1)	0
Purchases, Sales, Issues and Settlements, Net, assets	10	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	167	343
Sales, assets	(218)	(104)
Settlements, assets	(262)	(240)
Purchases, Sales, Issues and Settlements, Net, assets	(313)	(1)
Other bond securities \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	42	53
Sales, assets	(11)	(86)
Settlements, assets	(7)	(5)
Purchases, Sales, Issues and Settlements, Net, assets	24	(38)
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	9	69
Sales, assets	(65)	(458)
Settlements, assets	(1,526)	(1,234)
Purchases, Sales, Issues and Settlements, Net, assets	(1,582)	(1,623)
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	13	0
Sales, assets	0	0
Settlements, assets	(12)	0
Purchases, Sales, Issues and Settlements, Net, assets	1	0
Other equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	14
Sales, assets	0	0
Settlements, assets	0	(28)
Purchases, Sales, Issues and Settlements, Net, assets	0	(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	0	1
Sales, assets	(6)	(2)
Settlements, assets	0	1
Purchases, Sales, Issues and Settlements, Net, assets	(6)	0
Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	107	37
Sales, assets	(46)	(10)
Settlements, assets	(22)	(102)
Purchases, Sales, Issues and Settlements, Net, assets	$ 39	$ (75)

FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets)) - Level 3 - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Corporate debt
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,086	$ 498
Corporate debt \| Discounted cash flow \| Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	3.26%	3.41%
Corporate debt \| Discounted cash flow \| Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	12.22%	6.38%
Corporate debt \| Discounted cash flow \| Weighted-average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	7.74%	4.90%
Residential mortgage-backed securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 16,156	$ 17,412
Residential mortgage-backed securities \| Discounted cash flow \| Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	2.73%	3.28%
Constant prepayment rate	3.97%	3.95%
Loss severity	43.15%	47.51%
Constant default rate	3.31%	3.28%
Residential mortgage-backed securities \| Discounted cash flow \| Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	5.19%	5.87%
Constant prepayment rate	13.42%	6.54%
Loss severity	77.15%	80.98%
Constant default rate	8.30%	8.64%
Residential mortgage-backed securities \| Discounted cash flow \| Weighted-average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	3.96%	4.57%
Constant prepayment rate	8.69%	5.25%
Loss severity	60.15%	64.24%
Constant default rate	5.80%	5.96%
Certain CDO/ABS
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 5,254	$ 4,368
Certain CDO/ABS \| Discounted cash flow \| Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	3.38%	3.67%
Certain CDO/ABS \| Discounted cash flow \| Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	4.78%	5.85%
Certain CDO/ABS \| Discounted cash flow \| Weighted-average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	4.08%	4.76%
Commercial mortgage backed securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 487	$ 1,511
Commercial mortgage backed securities \| Discounted cash flow \| Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	2.22%	0.48%
Commercial mortgage backed securities \| Discounted cash flow \| Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	7.77%	10.21%
Commercial mortgage backed securities \| Discounted cash flow \| Weighted-average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	4.99%	5.34%
Obligations of states, municipalities and political subdivisions
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,620	$ 1,248
Obligations of states, municipalities and political subdivisions \| Discounted cash flow \| Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	3.55%	4.12%
Obligations of states, municipalities and political subdivisions \| Discounted cash flow \| Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	4.32%	4.91%
Obligations of states, municipalities and political subdivisions \| Discounted cash flow \| Weighted-average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Yield	3.94%	4.52%

FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
GMWB \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 1,994	$ 1,777
GMWB \| Discounted cash flow \| Minimum \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Equity volatility	6.45%	13.00%
Base lapse rates	0.35%	0.50%
Dynamic lapse rates	30.00%	30.00%
Utilization rates	90.00%	100.00%
Mortality multiplier	40.00%	42.00%
Equity/Interest-rate Correlation	20.00%	20.00%
GMWB \| Discounted cash flow \| Maximum \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Equity volatility	51.25%	50.00%
Base lapse rates	14.00%	20.00%
Dynamic lapse rates	170.00%	170.00%
Utilization rates	100.00%	100.00%
Mortality multiplier	153.00%	161.00%
Equity/Interest-rate Correlation	40.00%	40.00%
Index Annuities \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 1,603	$ 859
Index Annuities \| Discounted cash flow \| Minimum \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Lapse rates	0.50%	1.00%
Mortality multiplier	42.00%	101.00%
Options Budget	1.00%	1.00%
Index Annuities \| Discounted cash flow \| Maximum \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Lapse rates	40.00%	66.00%
Mortality multiplier	162.00%	103.00%
Options Budget	4.00%	4.00%
Index Life \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 515	$ 381
Index Life \| Discounted cash flow \| Minimum \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Base lapse rates	2.00%	2.00%
Mortality rates	0.00%	0.00%
Index Life \| Discounted cash flow \| Maximum \| Level 3
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]
Change in equity volatilities assumption	$ 0
Change in equity/interest rate correlation assumption	$ 0

FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	$ 5,997	$ 6,741
Unfunded Commitments	1,239	1,279
Direct private equity
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	2,128	2,254
Unfunded Commitments	$ 1,227	1,248
Average original expected lives	10 years
Direct private equity \| Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Average original expected lives, Increments	2 years
Direct private equity \| Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Average original expected lives, Increments	1 year
Direct private equity \| 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	58.00%
Direct private equity \| 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	0 years
Direct private equity \| 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	17.00%
Direct private equity \| 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	0 years
Direct private equity \| 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	0 years
Direct private equity \| 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	25.00%
Direct private equity \| 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	0 years
Direct private equity \| 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	0 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	$ 1,243	1,424
Unfunded Commitments	706	750
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	210	258
Unfunded Commitments	187	208
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	134	137
Unfunded Commitments	73	31
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	113	123
Unfunded Commitments	42	44
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	428	312
Unfunded Commitments	219	215
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	3,869	4,487
Unfunded Commitments	$ 12	31
Hedge fund investments redeemable monthly (as a percent)	22.00%
Hedge fund investments redeemable quarterly (as a percent)	43.00%
Hedge fund investments redeemable semi-annually (as a percent)	12.00%
Hedge fund investments redeemable annually (as a percent)	23.00%
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	49.00%
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	$ 1,128	1,453
Unfunded Commitments	0	9
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	1,233	1,429
Unfunded Commitments	0	0
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	1,011	992
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	266	416
Unfunded Commitments	8	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	0	0
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	231	197
Unfunded Commitments	$ 4	$ 14

FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments for which we elected the fair value option) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option credit risk gains (losses) on liabilities	$ 4	$ 22	$ (4)
Fair Value Option
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Options Changes in Fair Value Gain (loss)	2,105	466	613
Fair Value Option \| Long-term debt
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option credit risk gains (losses) on liabilities	(49)	(9)	(38)
Fair Value Option \| Other liabilities
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option credit risk gains (losses) on liabilities	(2)	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)	1,646	447	616
Fair Value Option \| Alternative investments
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Options Changes in Fair Value Gain (loss)	509	28	36
Fair Value Option \| Other, Including Short Term Investments
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Options Changes in Fair Value Gain (loss)	$ 1	$ 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	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage and other loans receivable, Fair Value	$ 5	$ 11
Mortgage and other loans receivable, Outstanding Principal Amount	37,345	33,537
Long-term debt, Fair Value	2,888	3,428
Long-term debt, Outstanding Principal Amount	31,640	30,912
Fair Value Option
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage and other loans receivable, Fair Value	5	11
Mortgage and other loans receivable, Outstanding Principal Amount	5	8
Mortgage and other loans receivable, Difference	0	3
Long-term debt, Fair Value	2,888	3,428
Long-term debt, Outstanding Principal Amount	2,280	2,628
Long-term debt, Difference	$ 608	$ 800
Disclosure level, past due mortgage or other loans receivable for which the fair value option was elected, number of days past due threshold	0 days

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) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	$ 594	$ 492	$ 809
Fair value on a non-recurring basis \| Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	77	76	189
Fair value on a non-recurring basis \| Investments in life settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	360	397	540
Fair value on a non-recurring basis \| Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	157	19	$ 80
Fair value on a non-recurring basis \| Other assets \| Divested Businesses
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	35
Fair value on a non-recurring basis \| Level 1 \| Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0	0
Fair value on a non-recurring basis \| Level 1 \| Investments in life settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0	0
Fair value on a non-recurring basis \| Level 1 \| Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0	0
Fair value on a non-recurring basis \| Level 2 \| Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0	0
Fair value on a non-recurring basis \| Level 2 \| Investments in life settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0	0
Fair value on a non-recurring basis \| Level 2 \| Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0	0
Fair value on a non-recurring basis \| 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	55	1,102
Fair value on a non-recurring basis \| Level 3 \| Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	55	364
Fair value on a non-recurring basis \| Level 3 \| Investments in life settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0	736
Fair value on a non-recurring basis \| Level 3 \| Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0	2
Fair value on a non-recurring basis \| 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	55	1,102
Fair value on a non-recurring basis \| Total Fair Value \| Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	55	364
Fair value on a non-recurring basis \| Total Fair Value \| Investments in life settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0	736
Fair value on a non-recurring basis \| Total Fair Value \| Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	$ 0	$ 2

FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets:
Mortgage and other loans receivable	$ 37,023	$ 33,240
Short-term investments	10,386	12,302
Cash	2,362	1,868	$ 1,629	$ 1,758
Liabilities:
Other liabilities	26,050	26,296
Long-term Debt	31,640	30,912
Total Fair Value
Assets:
Mortgage and other loans receivable	37,761	33,736
Other invested assets	596	3,008
Short-term investments	7,771	8,961
Cash	2,362	1,868
Liabilities:
Policyholder contract deposits associated with investment-type contracts	122,196	122,124
Other liabilities	4,494	4,196
Long-term Debt	28,243	26,450
Level 1
Assets:
Mortgage and other loans receivable	0	0
Other invested assets	0	0
Short-term investments	0	0
Cash	2,362	1,868
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	117	161
Other invested assets	590	955
Short-term investments	7,771	8,961
Cash	0	0
Liabilities:
Policyholder contract deposits associated with investment-type contracts	387	382
Other liabilities	4,494	4,196
Long-term Debt	23,930	23,117
Level 3
Assets:
Mortgage and other loans receivable	37,644	33,575
Other invested assets	6	2,053
Short-term investments	0	0
Cash	0	0
Liabilities:
Policyholder contract deposits associated with investment-type contracts	121,809	121,742
Other liabilities	0	0
Long-term Debt	4,313	3,333
Carrying Value
Assets:
Mortgage and other loans receivable	37,018	33,229
Other invested assets	593	3,474
Short-term investments	7,771	8,961
Cash	2,362	1,868
Liabilities:
Policyholder contract deposits associated with investment-type contracts	114,326	112,705
Other liabilities	4,494	4,196
Long-term Debt	$ 28,752	$ 27,484

INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	$ 226,766	$ 233,938
Available for sale securities, Gross Unrealized Gains	15,315	12,817
Available for sale securities, Gross Unrealized Losses	(1,381)	(3,140)
Available-for-sale Securities	240,700	243,615
AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,656	1,265
Bonds available for sale
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	225,461	232,241
Available for sale securities, Gross Unrealized Gains	14,891	12,421
Available for sale securities, Gross Unrealized Losses	(1,360)	(3,125)
Available-for-sale Securities	238,992	241,537
Other details of available for sale securities
Available for sale securities not rated or rated below investment grade	31,500	33,600
Bonds available for sale \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,656	1,265
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	2,532	1,870
Available for sale securities, Gross Unrealized Gains	160	148
Available for sale securities, Gross Unrealized Losses	(36)	(26)
Available-for-sale Securities	2,656	1,992
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	17,377	24,025
Available for sale securities, Gross Unrealized Gains	1,297	1,001
Available for sale securities, Gross Unrealized Losses	(30)	(254)
Available-for-sale Securities	18,644	24,772
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	0
Bonds available for sale \| Non-U.S. governments
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	15,059	14,018
Available for sale securities, Gross Unrealized Gains	717	773
Available for sale securities, Gross Unrealized Losses	(117)	(256)
Available-for-sale Securities	15,659	14,535
Bonds available for sale \| Non-U.S. governments \| 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	126,310	126,648
Available for sale securities, Gross Unrealized Gains	8,666	7,271
Available for sale securities, Gross Unrealized Losses	(800)	(1,739)
Available-for-sale Securities	134,176	132,180
Bonds available for sale \| Corporate debt \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	17	(31)
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	64,183	65,680
Available for sale securities, Gross Unrealized Gains	4,051	3,228
Available for sale securities, Gross Unrealized Losses	(377)	(850)
Available-for-sale Securities	67,857	68,058
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	1,639	1,296
Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	34,181	35,311
Available for sale securities, Gross Unrealized Gains	3,273	2,541
Available for sale securities, Gross Unrealized Losses	(220)	(478)
Available-for-sale Securities	37,234	37,374
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	1,568	1,212
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	13,538	14,054
Available for sale securities, Gross Unrealized Gains	408	409
Available for sale securities, Gross Unrealized Losses	(105)	(192)
Available-for-sale Securities	13,841	14,271
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	42	45
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	16,464	16,315
Available for sale securities, Gross Unrealized Gains	370	278
Available for sale securities, Gross Unrealized Losses	(52)	(180)
Available-for-sale Securities	16,782	16,413
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	29	39
Equity securities available for sale
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	1,305	1,697
Available for sale securities, Gross Unrealized Gains	424	396
Available for sale securities, Gross Unrealized Losses	(21)	(15)
Available-for-sale Securities	1,708	2,078
Equity securities available for sale \| Common Stock
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	703	708
Available for sale securities, Gross Unrealized Gains	379	369
Available for sale securities, Gross Unrealized Losses	(21)	(12)
Available-for-sale Securities	1,061	1,065
Equity securities available for sale \| Preferred Stock
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	504	748
Available for sale securities, Gross Unrealized Gains	29	4
Available for sale securities, Gross Unrealized Losses	0	0
Available-for-sale Securities	533	752
Equity securities available for sale \| Mutual Funds
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	98	241
Available for sale securities, Gross Unrealized Gains	16	23
Available for sale securities, Gross Unrealized Losses	0	(3)
Available-for-sale Securities	$ 114	$ 261

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	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	$ 31,657	$ 57,397
Gross Unrealized Losses, Less than 12 Months	726	1,943
Fair Value, 12 Months or More	15,127	13,285
Gross Unrealized Losses, 12 Months or More	655	1,197
Fair Value, Total	46,784	70,682
Gross Unrealized Losses, Total	1,381	3,140
Bonds available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	31,520	57,208
Gross Unrealized Losses, Less than 12 Months	705	1,928
Fair Value, 12 Months or More	15,127	13,285
Gross Unrealized Losses, 12 Months or More	655	1,197
Fair Value, Total	46,647	70,493
Gross Unrealized Losses, Total	$ 1,360	3,125
Number of securities in an unrealized loss position \| item	7,448
Number of individual securities in continuous unrealized loss position for longer than twelve months \| item	1,920
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	$ 770	720
Gross Unrealized Losses, Less than 12 Months	23	26
Fair Value, 12 Months or More	332	0
Gross Unrealized Losses, 12 Months or More	13	0
Fair Value, Total	1,102	720
Gross Unrealized Losses, Total	36	26
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	586	5,814
Gross Unrealized Losses, Less than 12 Months	6	221
Fair Value, 12 Months or More	646	231
Gross Unrealized Losses, 12 Months or More	24	33
Fair Value, Total	1,232	6,045
Gross Unrealized Losses, Total	30	254
Bonds available for sale \| Non-U.S. governments
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	3,511	3,865
Gross Unrealized Losses, Less than 12 Months	54	162
Fair Value, 12 Months or More	857	489
Gross Unrealized Losses, 12 Months or More	63	94
Fair Value, Total	4,368	4,354
Gross Unrealized Losses, Total	117	256
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	15,578	28,184
Gross Unrealized Losses, Less than 12 Months	453	1,013
Fair Value, 12 Months or More	7,291	6,080
Gross Unrealized Losses, 12 Months or More	347	726
Fair Value, Total	22,869	34,264
Gross Unrealized Losses, Total	800	1,739
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	6,212	8,794
Gross Unrealized Losses, Less than 12 Months	99	252
Fair Value, 12 Months or More	3,790	4,045
Gross Unrealized Losses, 12 Months or More	121	226
Fair Value, Total	10,002	12,839
Gross Unrealized Losses, Total	220	478
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	3,408	4,469
Gross Unrealized Losses, Less than 12 Months	46	152
Fair Value, 12 Months or More	1,389	479
Gross Unrealized Losses, 12 Months or More	59	40
Fair Value, Total	4,797	4,948
Gross Unrealized Losses, Total	105	192
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	1,455	5,362
Gross Unrealized Losses, Less than 12 Months	24	102
Fair Value, 12 Months or More	822	1,961
Gross Unrealized Losses, 12 Months or More	28	78
Fair Value, Total	2,277	7,323
Gross Unrealized Losses, Total	52	180
Equity securities available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	137	189
Gross Unrealized Losses, Less than 12 Months	21	15
Fair Value, 12 Months or More	0	0
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	137	189
Gross Unrealized Losses, Total	$ 21	15
Number of securities in an unrealized loss position \| item	74
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	$ 136	125
Gross Unrealized Losses, Less than 12 Months	21	12
Fair Value, 12 Months or More	0	0
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	136	125
Gross Unrealized Losses, Total	21	12
Equity securities available for sale \| Preferred Stock
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	0	0
Gross Unrealized Losses, Less than 12 Months	0	0
Fair Value, 12 Months or More	0	0
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	0	0
Gross Unrealized Losses, Total	0	0
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	1	64
Gross Unrealized Losses, Less than 12 Months	0	3
Fair Value, 12 Months or More	0	0
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	1	64
Gross Unrealized Losses, Total	$ 0	$ 3

INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	$ 226,766	$ 233,938
Fixed Maturity Securities Available for Sale, Fair Value, Total	238,992	241,537
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	1,526	604
Due after one year through five years, Amortized Cost	7,764	6,002
Due after five years through ten years, Amortized Cost	11,559	16,045
Due after ten years, Amortized Cost	9,705	25,007
Mortgage-backed, asset-backed and collateralized, Amortized Cost	17,453	25,960
Available for sale securities, Amortized Cost, Total	48,007	73,618
Due in one year or less, Fair Value	1,515	581
Due after one year through five years, Fair Value	7,571	5,841
Due after five years through ten years, Fair Value	11,143	15,332
Due after ten years, Fair Value	9,342	23,629
Mortgage-backed, asset-backed and collateralized, Fair Value	17,076	25,110
Fixed Maturity Securities Available for Sale, Fair Value, Total	46,647	70,493
Bonds available for sale
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost	7,932	7,796
Due after one year through five years, Amortized Cost	47,179	49,200
Due after five years through ten years, Amortized Cost	42,617	43,308
Due after ten years, Amortized Cost	63,550	66,257
Mortgage-backed, asset-backed and collateralized, Amortized Cost	64,183	65,680
Available for sale securities, Amortized Cost, Total	225,461	232,241
Due in one year or less, Fair Value	8,071	7,994
Due after one year through five years, Fair Value	49,093	51,958
Due after five years through ten years, Fair Value	43,944	44,226
Due after ten years, Fair Value	70,027	69,301
Mortgage-backed, asset-backed and collateralized, Fair Value	67,857	68,058
Fixed Maturity Securities Available for Sale, Fair Value, Total	$ 238,992	$ 241,537

INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	$ 832	$ 1,873	$ 1,577
Gross Realized Losses	319	815	451
Aggregate fair value of available for sale securities sold	31,300	30,200	28,700
Net realized capital gains (losses)	500	1,100	1,100
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	725	801	517
Gross Realized Losses	300	800	423
Equity securities available for sale
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	107	1,072	1,060
Gross Realized Losses	$ 19	$ 15	$ 28

INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 13,361	$ 14,480
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	$ 251	$ 421
Fixed maturity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 12,772	$ 13,998
Other Securities, Percent of Total	96.00%	97.00%
Fixed maturity securities \| U.S. government and government sponsored entities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 2,802	$ 2,939
Other Securities, Percent of Total	21.00%	20.00%
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	$ 0
Other Securities, Percent of Total	0.00%	0.00%
Fixed maturity securities \| Non-U.S. governments
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 57	$ 51
Other Securities, Percent of Total	1.00%	0.00%
Fixed maturity securities \| Corporate debt
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 1,909	$ 1,772
Other Securities, Percent of Total	14.00%	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	$ 8,004	$ 9,236
Other Securities, Percent of Total	60.00%	65.00%
Fixed maturity securities \| Residential mortgage-backed securities (RMBS)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 1,885	$ 2,025
Other Securities, Percent of Total	14.00%	14.00%
Fixed maturity securities \| Commercial mortgage-backed securities (CMBS)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 559	$ 603
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	$ 5,560	$ 6,608
Other Securities, Percent of Total	42.00%	47.00%
Fixed maturity securities \| Other
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 0	$ 0
Other Securities, Percent of Total	0.00%	0.00%
Equity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 589	$ 482
Other Securities, Percent of Total	4.00%	3.00%

INVESTMENTS (Details - Carrying values of other invested assets) - USD ($) $ in Millions	12 Months Ended		72 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2024	Dec. 31, 2017	Dec. 31, 2016
Investment [Line Items]
Other invested assets				$ 20,822	$ 24,538
Other invested assets, gross unrealized losses				45	32
Hedge Funds
Investment [Line Items]
Hedge Fund Fair Value Redemption, Additional Percentage	15.00%	72.00%	7.00%
Alternative investments
Investment [Line Items]
Other invested assets				11,308	13,379
Alternative investments \| Hedge Funds
Investment [Line Items]
Other invested assets				5,800	7,200
Alternative investments \| Direct private equity
Investment [Line Items]
Other invested assets				5,000	5,500
Alternative investments \| Affordable Housing Partnerships
Investment [Line Items]
Other invested assets				543	625
Mutual Funds
Investment [Line Items]
Other invested assets					0
Investment real estate
Investment [Line Items]
Other invested assets				8,258	6,900
Net of accumulated depreciation on investment in real estate				515	451
Aircraft asset investments
Investment [Line Items]
Other invested assets				206	321
Investment In Aer Cap [Member]
Investment [Line Items]
Other invested assets				0	0
Investments in life settlements
Investment [Line Items]
Other invested assets				0	2,516
All other investments
Investment [Line Items]
Other invested assets				$ 1,050	$ 1,422

INVESTMENTS (Details - Summarized financial information of equity method investees) - All other equity method investments - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating results:
Total revenues	$ 13,066	$ 9,512	$ 22,055
Total expenses	(6,835)	(7,361)	(3,898)
Net income	6,231	2,151	$ 18,157
Balance sheet:
Total assets	132,708	158,306
Total liabilities	(35,585)	(37,336)
Equity method investments, Carrying Value	$ 9,050	$ 10,756

INVESTMENTS (Details - Life settlements) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
INVESTMENTS
Income recognized on life settlement contracts	$ 266	$ 453	$ 332
Investment in Life Settlements contracts	0
Anticipated life insurance premiums
2016	0
2017	0
2018	0
2019	0
2020	$ 0

INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investment [Line Items]
Total investment income	$ 14,699	$ 14,518	$ 14,581
Investment expenses	520	453	528
Net investment income	14,179	14,065	14,053
Fixed maturity securities, including short-term investments
Investment [Line Items]
Total investment income	10,435	11,314	11,331
Other fixed maturity securities
Investment [Line Items]
Total investment income	660	331	1
Equity securities
Investment [Line Items]
Total investment income	34	(5)	99
Interest on mortgage and other loans
Investment [Line Items]
Total investment income	1,661	1,526	1,417
Alternative investments
Investment [Line Items]
Total investment income	1,475	693	1,120
Real estate
Investment [Line Items]
Total investment income	144	150	181
Other investments
Investment [Line Items]
Total investment income	$ 290	$ 509	$ 432

INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other-than-temporary impairments:
Severity	$ (2)	$ (15)	$ (13)
Change in intent	(9)	(46)	(233)
Foreign currency declines	(11)	(18)	(57)
Issuer-specific credit events	(234)	(433)	(348)
Adverse projected cash flows	(4)	(47)	(20)
Provision for loan losses	(50)	10	(58)
Foreign exchange transactions	489	(1,226)	416
All other derivatives and hedge accounting	(368)	299	78
Impairments on investments in life settlements	(360)	(397)	(540)
Other	30	114	105
Total net realized capital gains (losses)	(1,380)	(1,944)	776
Net realized capital gains (losses)	(1,380)	(1,944)	776
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)
Investments in life settlements
Other-than-temporary impairments:
Total net realized capital gains (losses)		(253)
Net realized capital gains (losses)		(253)
Fixed maturity securities
Gain (Loss) on Investments [Line Items]
Sales of securities	425	1	94
Equity securities
Gain (Loss) on Investments [Line Items]
Sales of securities	$ 88	$ 1,057	$ 1,032

INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Increase (decrease) in unrealized appreciation (depreciation) of investments	$ 4,062	$ 605
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Increase (decrease) in unrealized appreciation (depreciation) of investments	4,235	2,019
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Increase (decrease) in unrealized appreciation (depreciation) of investments	22	(1,155)
Other investments
Schedule of Available-for-sale Securities [Line Items]
Increase (decrease) in unrealized appreciation (depreciation) of investments	$ (195)	$ (259)

INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fixed maturity securities
Other Than Temporary Impairment Credit Losses Recognized in Earnings
Balance, beginning of year	$ 1,098	$ 1,747	$ 2,659
Increases due to:
Credit impairments on new securities subject to impairment losses	122	204	111
Additional credit impairments on previously impaired securities	74	212	109
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell	(99)	(296)	(399)
Credit impaired securities for which there is a current intent or anticipated requirement to sell	0	0	2
Accretion on securities previously impaired due to credit	(669)	(767)	(735)
Divested Businesses	0	(2)
Other	0	0	0
Balance, end of year	$ 526	$ 1,098	$ 1,747
Equity securities
Reductions due to:
Percent discount to cost for purposes of evaluating other-than-temporary impairment	25.00%
Criteria for considering impairment, period over which securities have been in a continuous decline in a value below cost	12 months
Rapid and severe percent discount to cost for purposes of evaluating other-than-temporary impairment	50.00%
Criteria for considering impairment, period of time traded at discount	9 months

INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 225,461	$ 232,241
Fair value	240,700	243,615
Purchased Credit Impaired (PCI) Securities
Schedule of Available-for-sale Securities [Line Items]
Contractually required payments (principal and interest)	36,642
Cash flows expected to be collected	30,040
Recorded investment in acquired securities	20,267
Outstanding principal balance	14,718	16,728
Amortized cost	10,492	11,987
Fair value	12,293	12,922
Available for sale securities \| Purchased Credit Impaired (PCI) Securities
Changes in activity for the accretable yield on PCI securities:
Balance, beginning of period	7,498	6,846
Newly purchased PCI securities	190	707
Disposals	(18)	0
Accretion	(797)	(842)
Effect of changes in interest rate indices	(34)	39
Net reclassification from non-accretable difference, including effects of prepayments	662	748
Balance, end of period	$ 7,501	$ 7,498

INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Investment [Line Items]
Fair value of securities collateral pledged	$ 2,227	$ 1,434
Fair value of amount sold or repledged	46	11
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements	4,900	4,900
Short-term investments held in escrow		523
Bonds available for sale and Short-term investments held in escrow	255
FHLBs
Investment [Line Items]
Fair value of fixed maturities securities available for sale	2,700	3,400
Amount owned by subsidiaries	93	114
Residential loans pledged as collateral	471
Secured financing
Investment [Line Items]
Fair value of fixed maturities securities available for sale	2,911	2,389
Fair value of other bond securities	1,585	1,799
Amounts Borrowed Under Repurchase and Securities Lending Agreements	4,500	4,200
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	1,581
Securities Lending Agreements, Fair Value of Collateral	2,915	2,389
Amounts Loaned under Reverse Repurchase Agreements	2,200	1,400
Secured financing \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral		1,799
Secured financing \| Overnight and continuous
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	44
Secured financing \| Overnight and continuous \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral		0
Secured financing \| Up to 30 Days
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	407
Securities Lending Agreements, Fair Value of Collateral	588
Secured financing \| Up to 30 Days \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral		163
Secured financing \| 31 to 90 Days
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	1,130
Securities Lending Agreements, Fair Value of Collateral	2,327	1,577
Secured financing \| 31 to 90 Days \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral		860
Secured financing \| 91 to 364 Days
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Securities Lending Agreements, Fair Value of Collateral	0	0
Secured financing \| 91 to 364 Days \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral		776
Secured financing \| 365 Days or Greater
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| 365 Days or Greater \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral		0
Secured financing \| Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	26
Securities Lending Agreements, Fair Value of Collateral	18	50
Secured financing \| Bonds available for sale \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	48
Securities Lending Agreements, Fair Value of Collateral	2,819	2,257
Secured financing \| Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral		61
Secured financing \| Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| Overnight and continuous \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| Overnight and continuous \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| Up to 30 Days \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| Up to 30 Days \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	7
Secured financing \| Bonds available for sale \| Up to 30 Days \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	13
Securities Lending Agreements, Fair Value of Collateral	588
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	19
Securities Lending Agreements, Fair Value of Collateral	18	50
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	35
Securities Lending Agreements, Fair Value of Collateral	2,231	1,466
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Commercial mortgage-backed securities (CMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Corporate debt
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 \| 91 to 364 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 \| Commercial mortgage-backed securities (CMBS)
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| 365 Days or Greater \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| Bonds available for sale \| 365 Days or Greater \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| Other bond securities \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	44
Secured financing \| Other bond securities \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	11	51
Secured financing \| Other bond securities \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	1,452	1,748
Secured financing \| Other bond securities \| Overnight and continuous \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	44
Secured financing \| Other bond securities \| Overnight and continuous \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| Overnight and continuous \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| Up to 30 Days \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| Other bond securities \| Up to 30 Days \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	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	387	163
Secured financing \| Other bond securities \| 31 to 90 Days \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| Other bond securities \| 31 to 90 Days \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	11	0
Secured financing \| Other bond securities \| 31 to 90 Days \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	1,065	860
Secured financing \| Other bond securities \| 91 to 364 Days \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| Other bond securities \| 91 to 364 Days \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	51
Secured financing \| Other bond securities \| 91 to 364 Days \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	725
Secured financing \| Other bond securities \| 365 Days or Greater \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0
Secured financing \| Other bond securities \| 365 Days or Greater \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	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	0
GIAs
Investment [Line Items]
Fair value of other bond securities	$ 2,000	$ 2,200

LENDING ACTIVITIES (Details - Composition of Mortgages and other loans receivable) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 37,345	$ 33,537
Allowance for losses	(322)	(297)	$ (308)	$ (271)
Mortgage and other loans receivable, net	37,023	33,240
Commercial mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	28,596	25,042
Allowance for losses	$ (247)	$ (194)	$ (171)	$ (159)
Commercial mortgages \| California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of mortgage loans in geographic area	12.00%	12.00%
Commercial mortgages \| New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of mortgage loans in geographic area	23.00%	24.00%
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 5,398	$ 3,828
Life insurance policy loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	2,295	2,367
Commercial loans, other loans and notes receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 1,056	$ 2,300

LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) loan	Dec. 31, 2016 USD ($) loan	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Commercial Mortgage Recorded Investment [Line Items]
Mortgage and other loans receivable, net	$ 37,023	$ 33,240
Allowance for credit losses	322	297	$ 308	$ 271
Total mortgage and other loans receivable	37,345	33,537
Apartments
Commercial Mortgage Recorded Investment [Line Items]
In good standing	8,163	6,005
Restructured	0	0
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	8,163	6,005
Allowance for credit losses, Specific	0	0
Allowance for credit losses, General	72	35
Allowance for credit losses	72	35
Offices
Commercial Mortgage Recorded Investment [Line Items]
In good standing	8,585	7,830
Restructured	115	134
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	8,700	7,964
Allowance for credit losses, Specific	3	3
Allowance for credit losses, General	94	72
Allowance for credit losses	97	75
Retail
Commercial Mortgage Recorded Investment [Line Items]
In good standing	5,338	5,179
Restructured	23	18
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	5,361	5,197
Allowance for credit losses, Specific	1	1
Allowance for credit losses, General	37	41
Allowance for credit losses	38	42
Industrial
Commercial Mortgage Recorded Investment [Line Items]
In good standing	2,023	1,898
Restructured	0	0
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	2,023	1,898
Allowance for credit losses, Specific	0	6
Allowance for credit losses, General	6	7
Allowance for credit losses	6	13
Hotel
Commercial Mortgage Recorded Investment [Line Items]
In good standing	2,373	2,373
Restructured	16	16
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	2,389	2,389
Allowance for credit losses, Specific	1	1
Allowance for credit losses, General	15	13
Allowance for credit losses	16	14
Others
Commercial Mortgage Recorded Investment [Line Items]
In good standing	1,960	1,589
Restructured	0	0
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	1,960	1,589
Allowance for credit losses, Specific	0	0
Allowance for credit losses, General	18	15
Allowance for credit losses	$ 18	$ 15
Commercial mortgages
Commercial Mortgage Recorded Investment [Line Items]
Number of loans in good standing \| loan	778	784
Number of loans restructured \| loan	5	4
Number of loans 90 days or less delinquent \| loan	0	0
Number of loans greater than 90 days delinquent or in process of foreclosure \| loan	0	0
Number of Loans \| loan	783	788
In good standing	$ 28,442	$ 24,874
Restructured	154	168
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	28,596	25,042
Allowance for credit losses, Specific	5	11
Allowance for credit losses, General	242	183
Allowance for credit losses	$ 247	$ 194
Percentage of loans that are current as to payments of principal and interest	99.00%	99.00%
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%	0.00%
Percentage Total	100.00%	100.00%
Percentage of loans with valuation allowance, Genaral	1.00%	1.00%
Percentage of loans with valuation allowance, Specific	0.00%	0.00%
Percentage of loans with allowance for losses	1.00%	1.00%
Percentage of current commercial mortgages held	100.00%
Total mortgage and other loans receivable	$ 28,596	$ 25,042
Commercial mortgages \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	26,023	21,661
Commercial mortgages \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	1,964	2,835
Commercial mortgages \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	609	546
Commercial mortgages \| Less than 65%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	19,876	15,924
Commercial mortgages \| Less than 65% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	18,000	13,998
Commercial mortgages \| Less than 65% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	1,525	1,694
Commercial mortgages \| Less than 65% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	351	232
Commercial mortgages \| 65% to 75%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	6,415	6,583
Commercial mortgages \| 65% to 75% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	6,038	5,946
Commercial mortgages \| 65% to 75% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	193	575
Commercial mortgages \| 65% to 75% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	184	62
Commercial mortgages \| 76% to 80%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	609	1,467
Commercial mortgages \| 76% to 80% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	569	1,246
Commercial mortgages \| 76% to 80% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	40	174
Commercial mortgages \| 76% to 80% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	0	47
Commercial mortgages \| Greater than 80%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	1,696	1,068
Commercial mortgages \| Greater than 80% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	1,416	471
Commercial mortgages \| Greater than 80% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	206	392
Commercial mortgages \| Greater than 80% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	$ 74	$ 205

LENDING ACTIVITIES (Details - Rollforward of the changes in the allowance for losses on Mortgage and other loans receivable) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	$ 297	$ 308	$ 271
Loans charged off	(25)	(15)	(29)
Recoveries of loans previously charged off	1	11	5
Net charge-offs	(24)	(4)	(24)
Provision for loan losses	49	(7)	58
Other	0	0	3
Activity of discontinued operations	0	0	0
Allowance, end of period	322	297	308
Loans modified in a troubled debt restructuring	237	0
Commercial mortgages
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	194	171	159
Loans charged off	(22)	(13)	(23)
Recoveries of loans previously charged off	0	11	4
Net charge-offs	(22)	(2)	(19)
Provision for loan losses	75	25	31
Other	0	0	0
Activity of discontinued operations	0	0	0
Allowance, end of period	247	194	171
Allowance related to individually assessed credit losses	5	11	24
Commercial mortgage loans	82	280	507
Other Loans
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	103	137	112
Loans charged off	(3)	(2)	(6)
Recoveries of loans previously charged off	1	0	1
Net charge-offs	(2)	(2)	(5)
Provision for loan losses	(26)	(32)	27
Other	0	0	3
Activity of discontinued operations	0	0	0
Allowance, end of period	$ 75	$ 103	$ 137

REINSURANCE (Details - Supplemental information for loss and benefit reserves, gross and net of ceded reinsurance) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Effects of Reinsurance [Line Items]
Allowance for doubtful accounts on reinsurance assets	$ 187	$ 207	$ 0
Supplemental information for loss and benefit reserves
Liability for unpaid claims and claims adjustment expense, As Reported	(78,393)	(77,077)	(74,942)	$ (77,260)
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance	(51,685)	(61,545)	$ (60,603)	$ (61,612)
Future policy benefits for life and accident and health insurance contracts, as reported	(45,432)	(42,204)
Future policy benefits for life and accident and health insurance contracts, Net of Reinsurance	(44,457)	(41,140)
Reserve for unearned premiums, As Reported	(19,030)	(19,634)
Reserve for unearned premiums, Net of Reinsurance	(15,890)	(16,280)
Reinsurance assets	$ 30,823	$ 19,950

REINSURANCE (Details - Short-Duration Reinsurance) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Premiums earned:
Net	$ 31,374	$ 34,393	$ 36,655
Short-duration insurance
Premiums Written
Direct	30,205	33,970	37,698
Assumed	3,084	2,824	2,972
Ceded	(7,533)	(7,561)	(7,604)
Net Amount	25,756	29,233	33,066
Premiums earned:
Direct	30,904	34,869	37,105
Assumed	3,373	2,962	2,659
Ceded	(7,902)	(7,284)	(7,593)
Net	26,375	30,547	32,171
Reinsurance recoveries, which reduced policyholder benefits and claims incurred	1,500	2,100	4,100
Ceded loss reserves under retroactive agreements	13,400	1,700
Deferred Gain (Loss) Retroactive Reinsurance	1,600	384
Effect on income from amortization of the deferred gain	$ 316	$ 30	$ 8
Short-duration insurance \| NICO
Premiums earned:
Transfer of reserve, percent	80.00%
Ceded losses paid, percent	80.00%
Ceded losses paid aggregate limit, net	$ 20,000
Covered losses ceded	13,100
Unexpired Limit	6,900
Total consideration paid, including interest	10,200
Short-duration insurance \| NICO \| Maximum
Premiums earned:
Ceded losses paid in excess, net	25,000
Ceded losses paid aggregate limit, net	$ 25,000

REINSURANCE (Details - Long-Duration Reinsurance) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Jul. 01, 2016 USD ($)	Feb. 07, 2014 USD ($) item
Life insurance ratios
Assumed insurance as a percent of gross premiums	1.80%
Letters of credit
Letter of credit outstanding	$ 139
New letter of credit
Letters of credit
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions					$ 450
Number of new bilateral letters of credit \| item					2
Long-duration insurance in force
Premiums earned:
Reinsurance recoveries, which reduced policyholder benefits and claims incurred	1,000	$ 1,000	$ 1,000
Life insurance ratios
Long-duration insurance in force ceded	$ 202,402	$ 174,363	$ 177,025
Assumed insurance as a percentage of gross long-duration insurance in force	0.03%	0.03%	0.04%
Assumed insurance as a percent of gross premiums	5.00%	3.00%	0.10%
Life insurance companies
Premiums earned:
Direct	$ 5,338	$ 4,732	$ 5,240
Ceded	(809)	(789)	(756)
Net	$ 4,529	3,943	$ 4,484
Letters of credit
Ceded Statutory Reserves		$ 14,000		$ 5,000

REINSURANCE (Details - Reinsurance Security) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reinsurance Security
Reinsurance assets	$ 30,823	$ 19,950
Reinsurer Concentration Risk [Member]
Reinsurance Security
Gross reinsurance assets due from reinsurers, percent	5.00%
Secured \| Reinsurer Concentration Risk [Member]
Reinsurance Security
Reinsurance assets	$ 18,000	8,200	$ 0
Unsecured \| Reinsurer Concentration Risk [Member]
Reinsurance Security
Reinsurance assets	$ 7,600	$ 4,400	$ 0

DEFERRED POLICY ACQUISITION COSTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Rollforward of deferred policy acquisition costs
Balance, beginning of year	$ 11,042	$ 11,115	$ 9,828
Dispositions	(35)	(110)	0
Acquisition costs deferred	4,820	5,216	5,825
Amortization expense	(4,288)	(4,521)	(5,236)
Change in net unrealized gains (losses) on securities	(505)	(259)	848
Increase (decrease) due to foreign exchange and other	(40)	72	(150)
Reclassified to Assets held for sale	0	(471)	0
Balance, end of year	10,994	11,042	11,115
Value of business acquired
Amortization of VOBA	20	40	64
Unamortized balance of VOBA	$ 381	393	453
Percentage of unamortized balance of VOBA expected to be amortized in the next five years
Year one (as a percent)	8.40%
Year two (as a percent)	7.80%
Year three (as a percent)	7.20%
Year four (as a percent)	6.10%
Year five (as a percent)	5.90%
Years after five year (as a percent)	64.60%
Reportable Segments \| Life insurance companies
Rollforward of deferred policy acquisition costs
Increase (decrease) in deferred policy acquisition costs due to net unrealized gains and losses on available for sale securities	$ (1,300)	$ (842)	$ (583)

VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Assets:
Bonds available for sale	$ 238,992.0	$ 241,537.0
Other bond securities	12,772.0	13,998.0
Mortgage and other loans receivable	37,023.0	33,240.0
Other invested assets	20,822.0	24,538.0
Liabilities:
Long-term Debt	31,640.0	30,912.0
Held for sale [Member]
Assets:
Mortgage and other loans receivable		137.0
Other invested assets		2.0
Liabilities:
Long-term Debt		0.0
Real Estate and Investment Entities
Liabilities:
Off-balance sheet exposure	85.8	106.0
Securitization Vehicles
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	18,100.0
Total assets of consolidated securitization vehicles owed to Parent or its subsidiaries	17,600.0
Consolidated VIE
Assets:
Bonds available for sale	9,632.0	10,233.0
Other bond securities	4,521.0	5,129.0
Mortgage and other loans receivable	2,290.0	1,547.0
Other invested assets	4,683.0	4,222.0
Other assets	2,218.0	1,995.0
Total assets	23,344.0	23,126.0
Liabilities:
Long-term Debt	4,134.0	2,973.0
Other liabilities	595.0	677.0
Total liabilities	4,729.0	3,650.0
Consolidated VIE \| Real Estate and Investment Entities
Assets:
Bonds available for sale	0.0	0.0
Other bond securities	0.0	0.0
Mortgage and other loans receivable	0.0	1.0
Other invested assets	1,365.0	1,052.0
Other assets	302.0	365.0
Total assets	1,667.0	1,418.0
Liabilities:
Long-term Debt	680.0	444.0
Other liabilities	144.0	224.0
Total liabilities	824.0	668.0
Consolidated VIE \| Securitization Vehicles
Assets:
Bonds available for sale	9,632.0	10,233.0
Other bond securities	4,518.0	4,858.0
Mortgage and other loans receivable	2,290.0	1,442.0
Other invested assets	206.0	321.0
Other assets	1,481.0	1,104.0
Total assets	18,127.0	17,958.0
Liabilities:
Long-term Debt	1,624.0	771.0
Other liabilities	244.0	203.0
Total liabilities	1,868.0	974.0
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total assets of consolidated securitization vehicles owed to Parent or its subsidiaries	17,600.0	17,300.0
Consolidated VIE \| Structured Investment Vehicles
Assets:
Bonds available for sale	0.0	0.0
Other bond securities	0.0	266.0
Mortgage and other loans receivable	0.0	0.0
Other invested assets	0.0	0.0
Other assets	0.0	50.0
Total assets	0.0	316.0
Liabilities:
Long-term Debt	0.0	56.0
Other liabilities	0.0	1.0
Total liabilities	0.0	57.0
Consolidated VIE \| Affordable Housing Partnerships
Assets:
Bonds available for sale	0.0	0.0
Other bond securities	0.0	0.0
Mortgage and other loans receivable	0.0	0.0
Other invested assets	3,087.0	2,821.0
Other assets	350.0	384.0
Total assets	3,437.0	3,205.0
Liabilities:
Long-term Debt	1,825.0	1,696.0
Other liabilities	181.0	211.0
Total liabilities	2,006.0	1,907.0
Consolidated VIE \| Other
Assets:
Bonds available for sale	0.0	0.0
Other bond securities	3.0	5.0
Mortgage and other loans receivable	0.0	104.0
Other invested assets	25.0	28.0
Other assets	85.0	92.0
Total assets	113.0	229.0
Liabilities:
Long-term Debt	5.0	6.0
Other liabilities	26.0	38.0
Total liabilities	31.0	44.0
Unconsolidated VIE
Assets:
Other invested assets	9,800.0	11,700.0
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	387,201.0	416,665.0
Maximum Exposure to Loss, On-Balance Sheet	10,232.0	12,114.0
Maximum Exposure to Loss, Off-Balance Sheet	3,248.0	3,160.0
Total maximum exposure to loss	13,480.0	15,274.0
Unconsolidated VIE \| Real Estate and Investment Entities
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	380,030.0	409,087.0
Maximum Exposure to Loss, On-Balance Sheet	9,253.0	11,015.0
Maximum Exposure to Loss, Off-Balance Sheet	2,043.0	2,115.0
Total maximum exposure to loss	11,296.0	13,130.0
Unconsolidated VIE \| Affordable Housing Partnerships
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	4,468.0	4,709.0
Maximum Exposure to Loss, On-Balance Sheet	725.0	785.0
Maximum Exposure to Loss, Off-Balance Sheet	0.0	0.0
Total maximum exposure to loss	725.0	785.0
Unconsolidated VIE \| Other
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	2,703.0	2,869.0
Maximum Exposure to Loss, On-Balance Sheet	254.0	314.0
Maximum Exposure to Loss, Off-Balance Sheet	1,205.0	1,045.0
Total maximum exposure to loss	$ 1,459.0	$ 1,359.0

DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	$ 106,687	$ 115,897
Gross Derivative Assets, Fair Value	3,545	3,977
Gross Derivative Liabilities, Notional Amount	45,888	64,938
Gross Derivative Liabilities, Fair Value	3,748	4,802
Derivative assets, Counterparty netting	(1,464)	(1,265)
Derivative assets, Cash collateral	(1,159)	(903)
Total derivative assets on consolidated balance sheet	922	1,809
Derivative liabilities, Counterparty netting	(1,464)	(1,265)
Derivative liabilities, Cash collateral	(1,249)	(1,521)
Total derivative liabilities on consolidated balance sheet	1,035	2,016
Bifurcated embedded derivatives
Derivative [Line Items]
Gross Derivative Liabilities, Fair Value	4,100	3,100
Derivatives designated as hedging instruments \| Interest rate contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	0	175
Gross Derivative Assets, Fair Value	0	0
Gross Derivative Liabilities, Notional Amount	838	782
Gross Derivative Liabilities, Fair Value	15	11
Derivatives designated as hedging instruments \| Foreign exchange contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	2,823	3,527
Gross Derivative Assets, Fair Value	173	385
Gross Derivative Liabilities, Notional Amount	4,783	2,602
Gross Derivative Liabilities, Fair Value	350	184
Derivatives designated as hedging instruments \| Equity contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	0	0
Gross Derivative Assets, Fair Value	0	0
Gross Derivative Liabilities, Notional Amount	159	113
Gross Derivative Liabilities, Fair Value	19	7
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	37,751	51,030
Gross Derivative Assets, Fair Value	2,171	2,328
Gross Derivative Liabilities, Notional Amount	26,461	44,211
Gross Derivative Liabilities, Fair Value	2,185	3,066
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	6,305	9,468
Gross Derivative Assets, Fair Value	658	935
Gross Derivative Liabilities, Notional Amount	11,093	7,674
Gross Derivative Liabilities, Fair Value	895	1,185
Derivatives not designated as hedging instruments \| Equity contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	19,975	14,060
Gross Derivative Assets, Fair Value	522	305
Gross Derivative Liabilities, Notional Amount	1,130	8,633
Gross Derivative Liabilities, Fair Value	2	12
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	1	2
Gross Derivative Liabilities, Notional Amount	1,365	861
Gross Derivative Liabilities, Fair Value	277	331
Derivatives not designated as hedging instruments \| Other contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	39,829	37,633
Gross Derivative Assets, Fair Value	20	22
Gross Derivative Liabilities, Notional Amount	59	62
Gross Derivative Liabilities, Fair Value	5	6
Derivatives not designated as hedging instruments \| Bifurcated embedded derivatives
Derivative [Line Items]
Gross Derivative Liabilities, Notional Amount	685	801
Gross Derivative Liabilities, Fair Value	$ 254	$ 308

DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships	$ (106)	$ 123	$ 90
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	(4)	(7)	0
Gain (loss) recognized in earnings on hedged items	4	1	1
Gain (loss) recognized in earnings for ineffective portion	0	1	1
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	(7)	0
Derivatives designated as hedging instruments \| Interest rate contracts \| Fair value hedging \| Interest credited to policyholder account balances
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	0	0	0
Gain (loss) recognized in earnings on hedged items	0	0	0
Gain (loss) recognized in earnings for ineffective portion	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	0	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 derivatives	0	0	0
Gain (loss) recognized in earnings on hedged items	0	10	9
Gain (loss) recognized in earnings for ineffective portion	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	10	9
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
Gain (loss) recognized in earnings on hedged items	0	0	14
Gain (loss) recognized in earnings for ineffective portion	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	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	(420)	294	202
Gain (loss) recognized in earnings on hedged items	393	(335)	(167)
Gain (loss) recognized in earnings for ineffective portion	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	(26)	(41)	32
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	0	3
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 derivatives	0	0	0
Gain (loss) recognized in earnings on hedged items	0	0	(1)
Gain (loss) recognized in earnings for ineffective portion	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	0	(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 derivatives	0	0	0
Gain (loss) recognized in earnings on hedged items	4	24	17
Gain (loss) recognized in earnings for ineffective portion	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	4	24	17
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
Gain (loss) recognized in earnings on hedged items	0	0	17
Gain (loss) recognized in earnings for ineffective portion	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	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	(47)	10	(45)
Gain (loss) recognized in earnings on hedged items	42	(11)	45
Gain (loss) recognized in earnings for ineffective portion	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	(5)	(1)	0
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	0	0
Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(1,501)	(725)	876
Derivatives not designated as hedging instruments \| Net realized capital gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(1,709)	(895)	365
Derivatives not designated as hedging instruments \| Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(11)	26	26
Derivatives not designated as hedging instruments \| Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	139	63	401
Derivatives not designated as hedging instruments \| Policy fees
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	77	80	78
Derivatives not designated as hedging instruments \| Policyholder benefits and claims incurred
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	3	1	6
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	56	(229)	339
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(277)	293	416
Derivatives not designated as hedging instruments \| Equity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(964)	(902)	(182)
Derivatives not designated as hedging instruments \| Commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	0	0	(1)
Derivatives not designated as hedging instruments \| Credit contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	58	81	186
Derivatives not designated as hedging instruments \| Other contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	75	80	69
Derivatives not designated as hedging instruments \| Embedded derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	$ (449)	$ (48)	$ 49

DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Credit Derivatives [Line Items]
Collateral posted	$ 2,900	$ 4,500
Obligation to make payments on embedded credit derivatives	0
Fair value of hybrid securities	4,400	4,800
Par value of hybrid securities	9,100	10,100
Credit Risk Related Contingent Features [Member]
Credit Derivatives [Line Items]
Collateral posted	676	875
Aggregate fair value of net liability position	572	$ 848
Credit Risk Related Contingent Features [Member] \| Standard & Poor's, BBB Rating \| Moody's, Baa2 Rating
Credit Derivatives [Line Items]
Additional Collateral Aggregate Fair Value	$ 83
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Arbitrage \| Multi-sector CDOs
Credit Derivatives [Line Items]
Derivative weighted average maturity	6 years

GOODWILL (Details) $ in Millions	12 Months Ended
GOODWILL (Details) $ in Millions	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Goodwill Disclosure
Number of steps involved in process of impairment test \| item	2
Goodwill
Goodwill - gross	$ 5,005	$ 5,090	$ 4,931
Accumulated impairments	(3,477)	(3,477)	(3,477)
Net goodwill	1,528	1,613	1,454
Increase (decrease) due to:
Acquisition	4		208
Other	87	(73)	(49)
Dispositions	(25)	(12)
Goodwill - gross	5,071	5,005	5,090
Accumulated impairments	(3,477)	(3,477)	(3,477)
Net goodwill	1,594	1,528	1,613
Goodwill Reallocation	1,300
North America
Goodwill
Goodwill - gross	1,878	1,884	1,834
Accumulated impairments	(1,264)	(1,264)	(1,264)
Net goodwill	614	620	570
Increase (decrease) due to:
Acquisition	0		50
Other	0	0	0
Dispositions	(10)	(6)
Goodwill - gross	1,868	1,878	1,884
Accumulated impairments	(1,264)	(1,264)	(1,264)
Net goodwill	604	614	620
International
Goodwill
Goodwill - gross	2,807	2,883	2,887
Accumulated impairments	(2,136)	(2,136)	(2,136)
Net goodwill	671	747	751
Increase (decrease) due to:
Acquisition	0		46
Other	74	(70)	(50)
Dispositions	(7)	(6)
Goodwill - gross	2,874	2,807	2,883
Accumulated impairments	(2,136)	(2,136)	(2,136)
Net goodwill	738	671	747
Life insurance
Goodwill
Goodwill - gross	77	77	21
Accumulated impairments	0	0	0
Net goodwill	77	77	21
Increase (decrease) due to:
Acquisition	0		55
Other	13	0	1
Dispositions	(6)
Goodwill - gross	84	77	77
Accumulated impairments	0	0	0
Net goodwill	84	77	77
Other Operations
Goodwill
Goodwill - gross	27	27	7
Accumulated impairments	0	0	0
Net goodwill	27	27	7
Increase (decrease) due to:
Acquisition	4		20
Other	0	0	0
Dispositions	0
Goodwill - gross	31	27	27
Accumulated impairments	0	0	0
Net goodwill	31	27	27
Legacy Portfolio
Goodwill
Goodwill - gross	216	219	182
Accumulated impairments	(77)	(77)	(77)
Net goodwill	139	142	105
Increase (decrease) due to:
Acquisition	0		37
Other	0	(3)	0
Dispositions	(2)
Goodwill - gross	214	216	219
Accumulated impairments	(77)	(77)	(77)
Net goodwill	$ 137	$ 139	$ 142

INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016
Supplementary Insurance Information, by Segment [Line Items]
Gross loss reserves before reinsurance and discount, net of contractual deductible recoverable amounts due from policyholders												$ 12,600	$ 12,800
Collateral Held For Deductible Recoverable Amounts												9,500	9,700
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense:
Liability for unpaid loss and loss adjustment expenses, beginning of year				$ 77,077				$ 74,942	$ 77,077	$ 74,942	$ 77,260
Reinsurance recoverable, balance at the beginning of the year				(15,532)				(14,339)	(15,532)	(14,339)	(15,648)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year				61,545				60,603	61,545	60,603	61,612
Losses and loss adjustment expenses incurred
Current year									21,079	20,232	20,308
Prior years, other than accretion of discount	$ 212	$ 901	$ 391	61	$ 5,574	$ 273	$ 7	(66)
Prior years, excluding discount and amortization of deferred gain									1,565	5,788	4,119
Prior years, discount charge (benefit)									187	(422)	(71)
Prior years, amortization of deferred gain on retroactive reinsurance									(284)	0	0
Total losses and loss adjustment expenses incurred									22,547	25,598	24,356
Losses and loss adjustment expenses paid
Current year									(5,323)	(5,825)	(5,751)
Prior years									(16,241)	(16,908)	(18,205)
Total losses and loss adjustment expenses paid									(21,564)	(22,733)	(23,956)
Other changes
Foreign exchange effect									788	(463)	(1,429)
Acquisitions									23	0	0
Dispositions									(360)	(1,058)	0
Retroactive reinsurance adjustment (net of discount)									(11,294)	0	20
Reclassified to liabilities held for sale									0	402	0
Total other changes									(10,843)	(1,923)	(1,409)
Net liability for unpaid losses and loss adjustment expenses, balance at end of year	51,685				61,545				51,685	61,545	60,603
Reinsurance recoverable, balance at the end of the year	26,708				15,532				26,708	15,532	14,339
Total, balance at the end of the year	78,393				77,077				78,393	77,077	74,942
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	$ 51,685			$ 61,545	$ 61,545			$ 60,603	51,685	$ 61,545	$ 60,603	$ 51,685	$ 61,545
U.S. Asbestos \| NICO [Member]
Losses and loss adjustment expenses incurred
Prior years, discount charge (benefit)									$ 25

INSURANCE LIABILITIES (Details - Reconciliation of the Net Incurred and Paid Claims Development) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	$ 51,685	$ 61,545	$ 60,603	$ 61,612
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	26,708	15,532	14,339	15,648
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	78,393	$ 77,077	$ 74,942	$ 77,260
Reportable Segments
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	45,200
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	24,295
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	69,495
Reportable Segments \| U.S. Workers Compensation
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	6,616
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	6,513
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	13,129
Reportable Segments \| U.S. Excess Casualty
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	4,802
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	4,053
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	8,855
Reportable Segments \| U.S. Other Casualty
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	5,149
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	4,793
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	9,942
Reportable Segments \| U.S. Financial Lines
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	5,104
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	1,962
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	7,066
Reportable Segments \| U.S. Property and Specialty Risks
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	5,410
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	968
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	6,378
Reportable Segments \| U.S. Personal Insurance
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	1,380
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	194
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	1,574
Reportable Segments \| Europe Casualty and Financial Lines
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	6,986
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	1,156
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	8,142
Reportable Segments \| Europe Property and Special Risks
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	2,022
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	632
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	2,654
Reportable Segments \| Europe and Japan Personal Insurance
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	2,348
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	349
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	2,697
Reportable Segments \| U.S. Run-Off Long Tail Insurance Lines
Liability For Claims And Claims Adjustment Expense [LineItems]
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	5,383
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	3,675
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	9,058
Reconciling Items \| Discount On Workers Compensation Lines
Liability For Claims And Claims Adjustment Expense [LineItems]
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	(3,383)
Reconciling Items \| Other Product Lines
Liability For Claims And Claims Adjustment Expense [LineItems]
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	8,568
Reconciling Items \| Unallocated Loss Adjustment Expenses
Liability For Claims And Claims Adjustment Expense [LineItems]
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	$ 3,713

INSURANCE LIABILITIES (Details - Annual Percentage Claims Payout)	Dec. 31, 2017
U.S. Workers Compensation
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	14.70%
Year 2	17.60%
Year 3	12.40%
Year 4	9.10%
Year 5	7.70%
Year 6	5.30%
Year 7	4.10%
Year 8	3.00%
Year 9	2.20%
Year 10	1.80%
U.S. Excess Casualty
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	0.60%
Year 2	7.00%
Year 3	13.00%
Year 4	13.40%
Year 5	12.50%
Year 6	11.00%
Year 7	8.40%
Year 8	10.00%
Year 9	2.80%
Year 10	8.30%
U.S. Other Casualty
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	9.90%
Year 2	16.30%
Year 3	15.40%
Year 4	14.50%
Year 5	11.80%
Year 6	8.20%
Year 7	5.90%
Year 8	5.60%
Year 9	2.60%
Year 10	1.90%
U.S. Financial Lines
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	4.00%
Year 2	17.90%
Year 3	21.10%
Year 4	16.70%
Year 5	13.20%
Year 6	9.30%
Year 7	6.10%
Year 8	6.00%
Year 9	3.00%
Year 10	1.20%
U.S. Property and Special Risks
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	30.20%
Year 2	35.70%
Year 3	13.00%
Year 4	7.20%
Year 5	4.60%
Year 6	2.50%
Year 7	1.00%
Year 8	0.90%
Year 9	0.70%
Year 10	0.30%
U.S. Personal Insurance
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	61.40%
Year 2	27.60%
Year 3	3.80%
Year 4	2.20%
Year 5	1.20%
Year 6	0.60%
Year 7	0.40%
Year 8	0.20%
Year 9	0.10%
Year 10	0.20%
Europe Casualty and Financial Lines
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	7.90%
Year 2	17.00%
Year 3	13.70%
Year 4	13.70%
Year 5	9.80%
Year 6	7.50%
Year 7	6.30%
Year 8	4.60%
Year 9	5.00%
Year 10	1.00%
Europe and Japan Personal Insurance
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	24.00%
Year 2	41.60%
Year 3	17.20%
Year 4	6.30%
Year 5	4.00%
Year 6	1.50%
Year 7	1.00%
Year 8	0.20%
Year 9	0.20%
Year 10	0.20%
Europe Property and Special Risks
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	56.00%
Year 2	26.90%
Year 3	8.00%
Year 4	3.80%
Year 5	2.00%
Year 6	1.10%
Year 7	0.60%
Year 8	0.30%
Year 9	0.30%
Year 10	0.10%
U.S. Run-Off Long Tail Insurance Lines
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	9.80%
Year 2	18.30%
Year 3	16.90%
Year 4	12.50%
Year 5	10.70%
Year 6	6.70%
Year 7	4.00%
Year 8	3.10%
Year 9	1.90%
Year 10	2.00%

INSURANCE LIABILITIES (Details - Narratives) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Insurance Liabilities Disclosure [Line Items]
Gross Loss Reserves Before Reinsurance and Discount Net of Subrogation	$ 12,600				$ 12,800				$ 12,600	$ 12,800
Collateral Held For Deductible Recoverable Amounts	9,500				9,700				9,500	9,700
Total prior year (favourable) unfavorable development	212	$ 901	$ 391	$ 61	5,574	$ 273	$ 7	$ (66)
Liability for Claims and Claims Adjustment Expense	78,393				77,077				78,393	77,077	$ 74,942	$ 77,260
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	51,685				61,545				51,685	61,545	60,603	$ 61,612
Discounting Of Loss Reserves [Abstract]
Loss Reserve Discount	1,844				3,570				1,844	$ 3,570
Tabular Discount Rate										3.50%
Workers Compensation Tabular Discount Amount	622								622
Workers Compensation Non Tabular Discount Amount	1,222								1,222
(Increase) Decrease in Loss Reserve Discount									(187)	$ 422	71
Effective Interest Rates
Discounting Of Loss Reserves [Abstract]
(Increase) Decrease in Loss Reserve Discount									71	106	(225)
U.S. Workers Compensation
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(31)	1,900	234
Discounting Of Loss Reserves [Abstract]
(Increase) Decrease in Loss Reserve Discount									(1,657)
U.S. Workers Compensation \| Risk sharing programs
Insurance Liabilities Disclosure [Line Items]
Actual loss emergence and development coverage in excess of large deductibles										1
U.S. Workers Compensation \| Florida Court Ruling
Insurance Liabilities Disclosure [Line Items]
Increase (Decrease) in loss reserves, net										100
U.S. Workers Compensation \| US and Non US Military Program
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development											100
U.S. Workers Compensation \| Ultimate Losses
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development										440
U.S. Excess Casualty
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									254	1,100	1,400
Analysis of loss reserves using traditional loss development and expected loss ratio methods									10
Analysis of Loss reserves for expected losses above threshold									10
U.S. Excess Casualty \| Commercial Auto Liability
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development										250	411
U.S. Excess Casualty \| Bad-Faith claims
Insurance Liabilities Disclosure [Line Items]
Liability for Claims and Claims Adjustment Expense											120
U.S. Other Casualty
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									216	1,600	1,400
U.S. Other Casualty \| Commercial Auto Liability
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									42	352	105
U.S. Other Casualty \| General Liability
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									330	754	172
U.S. Other Casualty \| Medical Malpractice
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(23)	428	202
U.S. Other Casualty \| Other Product Lines
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(133)	50	514
U.S. Other Casualty \| Ultimate loss Expense Estimate
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development											214
U.S. Other Casualty \| General Liability Ultimate loss Expense Estimate
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development											100
U.S. Financial Lines
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									345	306	502
U.S. Property and Special Risks
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									115	396	(132)
U.S. Property and Special Risks \| U.S. program business
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development										350
U.S. Personal Insurance
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									16	(32)	(69)
Europe Casualty and Financial Lines
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									507	320	142
Europe Casualty and Financial Lines \| Europe Casualty Lines
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development										123
Europe Casualty and Financial Lines \| D&O line UK and Continental Europe
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development										232
Europe Property and Special Risks
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									157	11	4
Europe and Japan Personal Insurance
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(58)	(82)	15
U.S. Run-Off Long Tail Insurance Lines
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(30)	390
U.S. Run-Off Long Tail Insurance Lines \| Asbestos
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(37)
Increase (Decrease) in loss reserves, gross										106	13
Increase (Decrease) in loss reserves, net										(20)	164
U.S. Run-Off Long Tail Insurance Lines \| Asbestos \| NICO
Insurance Liabilities Disclosure [Line Items]
Increase (Decrease) in loss reserves, gross									50
Increase (Decrease) in loss reserves, net									0
U.S. Run-Off Long Tail Insurance Lines \| Environmental
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									22
Increase (Decrease) in loss reserves, gross										211	214
Increase (Decrease) in loss reserves, net											117
U.S. Run-Off Long Tail Insurance Lines \| Run-off excess workers compensation lines
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									0	0	0
U.S. Run-Off Long Tail Insurance Lines \| Other Casualty Run-Off
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(15)	190	636
Legacy General Insrance Run-Off Lines
Discounting Of Loss Reserves [Abstract]
Loss Reserve Discount	$ 918				$ 987				918	987
(Increase) Decrease in Loss Reserve Discount									$ (69)	$ 16	$ 3

INSURANCE LIABILITIES (Details - Discounting of Reserves) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Discounting of Reserves [Line Items]
Tabular Discount Rate		3.50%
Workers Compensation Tabular Discount Amount	$ 622
Workers Compensation Non Tabular Discount Amount	1,222
U.S. Workers' compensation	3,383	$ 3,570
Retroactive Reinsurance	(1,539)	0
Total reserve discount	1,844	3,570
Current accident year	114	177	$ 182
Accretion and other adjustments to prior year discount	(230)	351	(336)
Effect of interest rate changes	(71)	(106)	225
Net reserve discount (benefit) charge	(187)	422	71
Amount transferred to run-off insurance lines	0	0	0
Change in discount on loss reserves ceded under retroactive reinsurance	(1,539)	0	0
Net change in total reserve discount	(1,726)	422	71
U.S Workers' compensation	(1,726)	429	75
Asbestos	0	(7)	(4)
North America Commerical Insurance
Discounting of Reserves [Line Items]
U.S. Workers' compensation	2,465	2,583
Retroactive Reinsurance	(1,539)	0
Total reserve discount	926	2,583
Current accident year	114	177	182
Accretion and other adjustments to prior year discount	(186)	287	(262)
Effect of interest rate changes	(46)	(58)	148
Net reserve discount (benefit) charge	(118)	406	68
Amount transferred to run-off insurance lines	0	0	(39)
Change in discount on loss reserves ceded under retroactive reinsurance	(1,539)	0	0
Net change in total reserve discount	(1,657)	406	29
U.S Workers' compensation	(1,657)	406	29
Asbestos	0	0	0
Legacy General Insrance Run-Off Lines
Discounting of Reserves [Line Items]
U.S. Workers' compensation	918	987
Retroactive Reinsurance	0	0
Total reserve discount	918	987
Current accident year	0	0	0
Accretion and other adjustments to prior year discount	(44)	64	(74)
Effect of interest rate changes	(25)	(48)	77
Net reserve discount (benefit) charge	(69)	16	3
Amount transferred to run-off insurance lines	0	0	39
Change in discount on loss reserves ceded under retroactive reinsurance	0	0	0
Net change in total reserve discount	(69)	16	42
U.S Workers' compensation	(69)	23	46
Asbestos	$ 0	(7)	$ (4)
New York
Discounting of Reserves [Line Items]
Nontabular discount rate	5.00%
Pennsylvania \| Accident Year 2001 And prior
Discounting of Reserves [Line Items]
Nontabular discount rate	6.00%
United Kingdom
Discounting of Reserves [Line Items]
Total reserve discount	$ 173	181
Net change in total reserve discount	$ 8	$ 20

INSURANCE LIABILITIES (Details - Future Policy Benefits) - Life insurance	Dec. 31, 2017
Maximum
Assumptions for liability for future life policy benefits
Liability for Future Policy Benefits, Interest Rate	14.00%
Minimum
Assumptions for liability for future life policy benefits
Liability for Future Policy Benefits, Interest Rate	0.10%

INSURANCE LIABILITIES (Details - Policyholder contract deposits) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	$ 135,602	$ 132,216
Assumptions for liability for policyholder contract deposits
Percentage of gross insurance in force	1.90%
Percentage of gross premiums and other consideration	1.80%
Maximum
Assumptions for liability for policyholder contract deposits
Withdrawal charges, high end of range (as a percent)		9.00%
Minimum
Assumptions for liability for policyholder contract deposits
Withdrawal charges, low end of range (as a percent)		0.20%
Fixed Annuities
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	$ 49,979	$ 51,278
Group Retirement
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	40,422	39,578
Life insurance
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	12,448	11,855
Variable and Index Annuities
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	19,690	16,934
Institutional Markets
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	8,077	7,286
Legacy Portfolio
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	$ 4,986	$ 5,285

VARIABLE LIFE AND ANNUITY CONTRACTS (Details - Annuity contracts with guarantees were invested in separate account investment options) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Account balances of variable annuity contract, Total	$ 84,773	$ 76,269
Equity Funds
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Account balances of variable annuity contract, Total	48,594	42,266
Bonds Funds
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Account balances of variable annuity contract, Total	7,793	7,798
Balanced Funds
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Account balances of variable annuity contract, Total	27,656	25,365
Money Market Funds
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Account balances of variable annuity contract, Total	$ 730	$ 840

VARIABLE LIFE AND ANNUITY CONTRACTS (Details - GMDB, GMIB, GMWB and GMAV) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assumptions and methodology used to determine the GMDB liability
Fair value of embedded derivatives, liability	$ 3,748	$ 4,802
Embedded derivatives
Assumptions and methodology used to determine the GMDB liability
Fair value of embedded derivatives, liability	4,100	3,100
Guaranteed minimum death benefits (GMDB)
Changes in GMDB for guarantees on variable contracts reflected in the general account
Balance at the beginning of the period	402	491	$ 420
Benefits paid	(42)	(57)	(56)
Reserve increase (decrease)	(14)	(32)	127
Changes in reserves related to unrealized appreciation of investments	6	0	0
Balance at the end of the period	352	402	$ 491
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB)
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Account value	45,000	41,000
Net amount at risk	450	834
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) \| Embedded derivatives
Assumptions and methodology used to determine the GMDB liability
Fair value of embedded derivatives, liability	2,000	1,800
Variable contract, net deposits plus a minimum return \| Guaranteed minimum death benefits (GMDB)
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Account value	99	91
Net amount at risk	$ 1	$ 1
Average attained age of contract holders by product	63 years	63 years
Variable contract, net deposits plus a minimum return \| Guaranteed minimum death benefits (GMDB) \| Minimum
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Range of guaranteed minimum return rates (as a percent)	0.00%	0.00%
Variable annuity contract, highest contract value attained \| Guaranteed minimum death benefits (GMDB)
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Account value	$ 17	$ 16
Net amount at risk	$ 0	$ 1
Average attained age of contract holders by product	68 years	68 years
Variable annuity contract, highest contract value attained \| Guaranteed minimum death benefits (GMDB) \| Maximum
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Range of guaranteed minimum return rates (as a percent)	4.50%	4.50%

DEBT (Details - Total debt outstanding) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term Debt	$ 31,640	$ 30,912
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	31,640	30,912
2018	2,285
2019	1,263
2020	1,488
2021	1,917
2022	1,554
Thereafter	17,104
Long-term debt excluding borrowings of consolidated investments	25,611
Uncollateralized and collateralized notes, bonds, loans and mortgages payable	524
Collateral posted	2,900	4,500
Uncollateralized Notes/Bonds/Loans Payable
Debt Instrument [Line Items]
Long-term Debt	334
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	334
Collateralized Loans and Mortgages Payable
Debt Instrument [Line Items]
Long-term Debt	190
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	190
AIGLH
Debt Instrument [Line Items]
Long-term Debt	642	642
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	642	642
AIG
Debt Instrument [Line Items]
Long-term Debt	21,557	21,405
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	21,557	21,405
AIG \| Series AIGFP
Debt Instrument [Line Items]
Long-term Debt	21	31
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	21	31
AIG \| MIP
Debt Instrument [Line Items]
Long-term Debt	356	1,099
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	356	1,099
Other Subsidiaries
Debt Instrument [Line Items]
Long-term Debt	9,441	8,865
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	9,441	8,865
Notes and bonds payable \| AIG
Debt Instrument [Line Items]
Long-term Debt	20,339	19,432
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	20,339	19,432
Junior subordinated debt \| AIG
Debt Instrument [Line Items]
Long-term Debt	841	843
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	841	843
Other subsidiaries notes, bonds, loans and mortgages payable
Debt Instrument [Line Items]
Long-term Debt	190
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	190
2018	190
2019	0
2020	0
2021	0
2022	0
Thereafter	0
Other subsidiaries notes, bonds, loans and mortgages payable \| Other Subsidiaries
Maturities of long-term debt, excluding borrowings of consolidated investments
Uncollateralized and collateralized notes, bonds, loans and mortgages payable	190
Other subsidiaries notes, bonds, loans and mortgages payable \| Other Subsidiaries \| Uncollateralized Notes/Bonds/Loans Payable
Debt Instrument [Line Items]
Long-term Debt	0
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	0
Other subsidiaries notes, bonds, loans and mortgages payable \| Other Subsidiaries \| Collateralized Loans and Mortgages Payable
Debt Instrument [Line Items]
Long-term Debt	190
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	190
Debt issued or guaranteed
Debt Instrument [Line Items]
Long-term Debt	25,421	25,806
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	25,421	25,806
2018	2,095
2019	1,263
2020	1,488
2021	1,917
2022	1,554
Thereafter	17,104
Uncollateralized Notes/Bonds/Loans Payable
Debt Instrument [Line Items]
Long-term Debt	22,156	21,247
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	22,156	21,247
2018	1,107
2019	998
2020	1,458
2021	1,715
2022	1,507
Thereafter	15,371
Uncollateralized Notes/Bonds/Loans Payable \| AIG
Maturities of long-term debt, excluding borrowings of consolidated investments
Uncollateralized and collateralized notes, bonds, loans and mortgages payable	334
Uncollateralized Notes/Bonds/Loans Payable \| AIG \| Uncollateralized Notes/Bonds/Loans Payable
Debt Instrument [Line Items]
Long-term Debt	334
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	334
Uncollateralized Notes/Bonds/Loans Payable \| AIG \| Collateralized Loans and Mortgages Payable
Debt Instrument [Line Items]
Long-term Debt	0
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	0
Uncollateralized Notes/Bonds/Loans Payable \| Notes and bonds payable
Debt Instrument [Line Items]
Long-term Debt	$ 20,339	19,432
Debt Instrument, Maturity, Start year	2018
Debt Instrument, Maturity, End Year	2097
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 20,339	19,432
2018	1,107
2019	998
2020	1,343
2021	1,496
2022	1,507
Thereafter	$ 13,888
Uncollateralized Notes/Bonds/Loans Payable \| Notes and bonds payable \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	8.13%
Uncollateralized Notes/Bonds/Loans Payable \| Notes and bonds payable \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	0.00%
Uncollateralized Notes/Bonds/Loans Payable \| Notes and bonds payable \| AIGLH
Debt Instrument [Line Items]
Long-term Debt	$ 281	281
Debt Instrument, Maturity, Start year	2025
Debt Instrument, Maturity, End Year	2029
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 281	281
Thereafter	$ 281
Uncollateralized Notes/Bonds/Loans Payable \| Notes and bonds payable \| AIGLH \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	7.50%
Uncollateralized Notes/Bonds/Loans Payable \| Notes and bonds payable \| AIGLH \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	6.63%
Uncollateralized Notes/Bonds/Loans Payable \| Subordinated debt
Debt Instrument [Line Items]
Long-term Debt	$ 0	0
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	0	0
2018	0
2019	0
Uncollateralized Notes/Bonds/Loans Payable \| Junior subordinated debt
Debt Instrument [Line Items]
Long-term Debt	$ 841	843
Debt Instrument, Maturity, Start year	2037
Debt Instrument, Maturity, End Year	2058
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 841	843
Thereafter	$ 841
Uncollateralized Notes/Bonds/Loans Payable \| Junior subordinated debt \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	8.63%
Uncollateralized Notes/Bonds/Loans Payable \| Junior subordinated debt \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	4.88%
Uncollateralized Notes/Bonds/Loans Payable \| Junior subordinated debt \| AIGLH
Debt Instrument [Line Items]
Long-term Debt	$ 361	361
Debt Instrument, Maturity, Start year	2030
Debt Instrument, Maturity, End Year	2046
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 361	361
Thereafter	$ 361
Uncollateralized Notes/Bonds/Loans Payable \| Junior subordinated debt \| AIGLH \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	8.50%
Uncollateralized Notes/Bonds/Loans Payable \| Junior subordinated debt \| AIGLH \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	7.57%
Uncollateralized Notes/Bonds/Loans Payable \| AIG Japan Holdings Kabushiki Kaisha
Debt Instrument [Line Items]
Long-term Debt	$ 334	330
Debt Instrument, Maturity, Start year	2020
Debt Instrument, Maturity, End Year	2021
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 334	330
2018	0
2019	0
2020	115
2021	219
2022	$ 0
Uncollateralized Notes/Bonds/Loans Payable \| AIG Japan Holdings Kabushiki Kaisha \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	0.44%
Uncollateralized Notes/Bonds/Loans Payable \| AIG Japan Holdings Kabushiki Kaisha \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	0.28%
Borrowings supported by assets
Debt Instrument [Line Items]
Long-term Debt	$ 3,265	4,559
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	3,265	4,559
2018	988
2019	265
2020	30
2021	202
2022	47
Thereafter	1,733
Collateral posted	2,000	2,200
Borrowings supported by assets \| Notes and bonds payable
Debt Instrument [Line Items]
Long-term Debt	$ 181	494
Debt Instrument, Maturity, Start year	2018
Debt Instrument, Maturity, End Year	2040
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 181	494
2018	126
2019	0
2020	0
2021	0
2022	0
Thereafter	$ 55
Borrowings supported by assets \| Notes and bonds payable \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	9.97%
Borrowings supported by assets \| Notes and bonds payable \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	0.50%
Borrowings supported by assets \| Notes and bonds payable \| Series AIGFP
Debt Instrument [Line Items]
Long-term Debt	$ 21	32
Debt Instrument, Maturity, Start year	2046
Debt Instrument, Maturity, End Year	2047
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 21	32
2018	0
2019	0
2020	0
2021	0
2022	0
Thereafter	$ 21
Borrowings supported by assets \| Notes and bonds payable \| Series AIGFP \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	1.30%
Borrowings supported by assets \| Notes and bonds payable \| Series AIGFP \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	1.21%
Borrowings supported by assets \| MIP notes payable
Debt Instrument [Line Items]
Long-term Debt	$ 356	1,099
Debt Instrument, Maturity, End Year	2018
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 356	1,099
2018	$ 356
Borrowings supported by assets \| MIP notes payable \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	2.95%
Borrowings supported by assets \| MIP notes payable \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	2.72%
Borrowings supported by assets \| GIAs
Debt Instrument [Line Items]
Long-term Debt	$ 2,707	2,934
Debt Instrument, Maturity, Start year	2018
Debt Instrument, Maturity, End Year	2053
Interest rate (as a percent)	7.62%
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 2,707	2,934
2018	506
2019	265
2020	30
2021	202
2022	47
Thereafter	$ 1,657
Borrowings supported by assets \| GIAs \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	7.62%
Borrowings supported by assets \| GIAs \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	0.50%
Debt not guaranteed
Debt Instrument [Line Items]
Long-term Debt	$ 6,219	5,106
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	6,219	5,106
Debt not guaranteed \| Other subsidiaries notes, bonds, loans and mortgages payable
Debt Instrument [Line Items]
Long-term Debt	$ 190	735
Debt Instrument, Maturity, End Year	2018
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 190	735
Debt not guaranteed \| Other subsidiaries notes, bonds, loans and mortgages payable \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	1.57%
Debt not guaranteed \| Other subsidiaries notes, bonds, loans and mortgages payable \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	1.40%
Debt not guaranteed \| Debt of consolidated investments
Debt Instrument [Line Items]
Long-term Debt	$ 6,029	4,371
Debt Instrument, Maturity, Start year	2018
Debt Instrument, Maturity, End Year	2065
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 6,029	4,371
Debt not guaranteed \| Debt of consolidated investments \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	9.31%
Debt not guaranteed \| Debt of consolidated investments \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	0.00%
Debt not guaranteed \| Debt of consolidated investments \| Real Estate and Investment Funds [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 2,500	1,900
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	2,500	1,900
Debt not guaranteed \| Debt of consolidated investments \| Affordable Housing Partnership [Member]
Debt Instrument [Line Items]
Long-term Debt	1,800	1,700
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	1,800	1,700
Debt not guaranteed \| Debt of consolidated investments \| Other
Debt Instrument [Line Items]
Long-term Debt	1,700	771
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 1,700	$ 771

DEBT (Details - AIGLH Junior subordinated debentures) - Borrowings supported by assets - AIGLH $ in Millions	Jul. 11, 2013 USD ($)
8.5 percent Junior subordinated debentures due July 2030
Debt Instrument [Line Items]
Junior subordinated debentures liquidation value	$ 113
8.125 percent Junior subordinated debentures due March 2046
Debt Instrument [Line Items]
Junior subordinated debentures liquidation value	211
7.57 percent Junior subordinated debentures due December 2045
Debt Instrument [Line Items]
Junior subordinated debentures liquidation value	$ 37

DEBT (Details - Credit facilities) - 5-Year Syndicated Facility $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Schedule of Debt Instruments [Line Items]
Maximum borrowing capacity	$ 4,500
Remaining borrowing capacity	$ 4,500
Debt Instrument, Maturity Date	June 2022
Debt Instrument Effective Date	Jun. 27, 2017

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Loss Contingencies) $ in Millions						9 Months Ended	12 Months Ended	39 Months Ended
	Jun. 15, 2015 USD ($)	Oct. 22, 2014 USD ($)	Sep. 16, 2013 item	Mar. 11, 2013 class	Nov. 21, 2011	Jan. 31, 2009 complaint	Dec. 31, 2017 USD ($) complaint	Feb. 09, 2015 complaint
Other Commitments
Other Commitments \| $							$ 3,200
Consolidated 2008 Securities Litigation
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of separate proceedings filed						8
Payment for legal settlement \| $		$ 960
Starr International Litigation
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of separate proceedings filed \| class				2
Damages claimed \| $	$ 40,000
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 \| item			286,908
Individual Securities Litigations [Member]
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of funds that are plaintiffs in similar actions								11
Number of cases that have been settled							9
Number of claims dismissed							2

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Long term purchase commitments) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Future minimum lease payments under operating leases
2018	$ 243
2019	179
2020	137
2021	95
2022	59
Remaining years after 2022	120
Total	833
Rent expense	269	$ 331	$ 327
Other Commitments
Other Commitments	$ 3,200

EQUITY (Details - Shares Outstanding) - USD ($) $ / shares in Units, $ in Millions													12 Months Ended
	Dec. 22, 2017	Sep. 29, 2017	Jun. 28, 2017	Mar. 29, 2017	Dec. 22, 2016	Sep. 29, 2016	Jun. 27, 2016	Mar. 28, 2016	Dec. 21, 2015	Sep. 28, 2015	Jun. 25, 2015	Mar. 26, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	May 03, 2017
The following table presents a roll forward of outstanding shares:
Shares, beginning of year													(911,335,651)
Shares, beginning of year													1,906,671,492
Shares, beginning of year													995,335,841	1,193,916,617	1,375,926,971
Issuances (in shares)													3,386,462	2,069,110	371,806
Shares repurchased													(99,677,646)	(200,649,886)	(182,382,160)
Shares, end of period													(1,007,626,835)	(911,335,651)
Shares, end of period													1,906,671,492	1,906,671,492
Shares, end of period													899,044,657	995,335,841	1,193,916,617
The following table presents record date, payment date and dividends paid per share on AIG Common Stock:
Dividend paid (in dollars per share)	$ 0.32	$ 0.32	$ 0.32	$ 0.32	$ 0.32	$ 0.32	$ 0.32	$ 0.32	$ 0.28	$ 0.28	$ 0.125	$ 0.125
Date of Shareholders of Record	Dec. 08, 2017	Sep. 15, 2017	Jun. 14, 2017	Mar. 15, 2017	Dec. 08, 2016	Sep. 15, 2016	Jun. 13, 2016	Mar. 14, 2016	Dec. 07, 2015	Sep. 14, 2015	Jun. 11, 2015	Mar. 12, 2015
Authorized amount of common Stock share repurchase																$ 2,500
Aggregate remaining authorization amount of common Stock share repurchase													$ 2,300
Shares repurchased (in shares)													99,677,646	200,649,886	182,382,160
Payments for Repurchase of Common Stock													$ 6,275	$ 11,460	$ 10,691
Amount paid to purchase warrants													$ 3	$ 309	$ 0
Warrants repurchased													185,000	17,000,000	0
Subsequent event
The following table presents record date, payment date and dividends paid per share on AIG Common Stock:
Date of Shareholders of Record													Mar. 15, 2018
Common Stock Issued
The following table presents a roll forward of outstanding shares:
Shares, beginning of year													1,906,671,492	1,906,671,492	1,906,671,492
Issuances (in shares)													0	0	0
Shares repurchased													0	0	0
Shares, end of period													1,906,671,492	1,906,671,492	1,906,671,492
The following table presents record date, payment date and dividends paid per share on AIG Common Stock:
Shares repurchased (in shares)													0	0	0
Treasury Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year													(911,335,651)	(712,754,875)	(530,744,521)
Issuances (in shares)													3,386,462	2,069,110	371,806
Shares repurchased													(99,677,646)	(200,649,886)	(182,382,160)
Shares, end of period													(1,007,626,835)	(911,335,651)	(712,754,875)
The following table presents record date, payment date and dividends paid per share on AIG Common Stock:
Shares repurchased (in shares)													99,677,646	200,649,886	182,382,160

EQUITY (Details - Rollforward of Accumulated other comprehensive income) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax	$ 3,230	$ 2,537	$ 10,617
Change in unrealized appreciation (depreciation) of investments	4,062	605	(11,007)
Change in deferred acquisition costs adjustment and other	(1,259)	267	1,119
Change in future policy benefits	(1,102)	(676)	1,204
Changes in foreign currency translation adjustments	547	93	(1,129)
Net actuarial gain (loss)	110	(151)	413
Prior service cost (credit)	9	(22)	(239)
Deferred tax asset (liability)	(132)	577	1,553
Other Comprehensive Income (Loss)	2,235	693	(8,086)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment	539	250	(1,100)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment	41	(126)	123
Noncontrolling interests	0	0	(6)
Balance, end of period, net of tax	5,465	3,230	2,537
Accumulated Other Comprehensive Income
A rollforward of Accumulated Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss)	2,235	693	(8,080)
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Other-Than-Temporary Credit Impairments Were Taken
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax	426	696	1,043
Change in unrealized appreciation (depreciation) of investments	394	(326)	(488)
Change in deferred acquisition costs adjustment and other	23	(19)	(146)
Change in future policy benefits	0	0	92
Deferred tax asset (liability)	(50)	75	195
Other Comprehensive Income (Loss)	367	(270)	(347)
Balance, end of period, net of tax	793	426	696
Unrealized Appreciation (Depreciation) of All Other Investments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax	6,405	5,566	12,327
Change in unrealized appreciation (depreciation) of investments	3,668	931	(10,519)
Change in deferred acquisition costs adjustment and other	(1,282)	286	1,265
Change in future policy benefits	(1,102)	(676)	1,112
Deferred tax asset (liability)	4	298	1,380
Other Comprehensive Income (Loss)	1,288	839	(6,762)
Noncontrolling interests	0	0	(1)
Balance, end of period, net of tax	7,693	6,405	5,566
Foreign Currency Translation Adjustments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax	(2,629)	(2,879)	(1,784)
Changes in foreign currency translation adjustments	547	93	(1,129)
Deferred tax asset (liability)	(8)	157	29
Other Comprehensive Income (Loss)	539	250	(1,100)
Noncontrolling interests	0	0	(5)
Balance, end of period, net of tax	(2,090)	(2,629)	(2,879)
Retirement Plan Liabilities Adjustment
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax	(972)	(846)	(969)
Net actuarial gain (loss)	110	(151)	413
Prior service cost (credit)	9	(22)	(239)
Deferred tax asset (liability)	(78)	47	(51)
Other Comprehensive Income (Loss)	41	(126)	123
Balance, end of period, net of tax	$ (931)	$ (972)	$ (846)

EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	$ 3,090	$ 1,296	$ (8,383)
Less: Reclassification adjustments included in net income	723	1,180	1,256
Total other comprehensive income (loss), before income tax expense (benefit)	2,367	116	(9,639)
Less: Income tax expense (benefit)	132	(577)	(1,553)
Other comprehensive income	2,235	693	(8,086)
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Other-Than-Temporary Credit Impairments Were Taken
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	467	(222)	(471)
Less: Reclassification adjustments included in net income	50	123	71
Total other comprehensive income (loss), before income tax expense (benefit)	417	(345)	(542)
Less: Income tax expense (benefit)	50	(75)	(195)
Other comprehensive income	367	(270)	(347)
Unrealized Appreciation (Depreciation) of All Other Investments
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	2,052	1,769	(7,068)
Less: Reclassification adjustments included in net income	768	1,228	1,074
Total other comprehensive income (loss), before income tax expense (benefit)	1,284	541	(8,142)
Less: Income tax expense (benefit)	(4)	(298)	(1,380)
Other comprehensive income	1,288	839	(6,762)
Foreign Currency Translation Adjustments
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	547	93	(1,129)
Less: Reclassification adjustments included in net income	0	0	0
Total other comprehensive income (loss), before income tax expense (benefit)	547	93	(1,129)
Less: Income tax expense (benefit)	8	(157)	(29)
Other comprehensive income	539	250	(1,100)
Retirement Plan Liabilities Adjustment
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	24	(344)	285
Less: Reclassification adjustments included in net income	(95)	(171)	111
Total other comprehensive income (loss), before income tax expense (benefit)	119	(173)	174
Less: Income tax expense (benefit)	78	(47)	51
Other comprehensive income	$ 41	$ (126)	$ 123

EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other realized capital gains (losses)									$ (1,153)	$ (1,457)	$ 1,367
Amortization of deferred acquisition costs									4,288	4,521	5,236
Policyholder benefits and losses incurred									29,972	32,437	31,345
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax									723	1,180	1,256
Income from continuing operations before income tax expense (benefit)	$ 875	$ (2,803)	$ 1,667	$ 1,727	$ (3,455)	$ 737	$ 2,858	$ (214)	1,466	(74)	3,281
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)									723	1,180	1,256
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax									50	123	71
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other realized capital gains (losses)									50	123	71
Income from continuing operations before income tax expense (benefit)									50	123	71
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									768	1,228	1,074
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 (losses)									463	935	1,054
Amortization of deferred acquisition costs									305	293	3
Policyholder benefits and losses incurred									0	0	17
Income from continuing operations before income tax expense (benefit)									768	1,228	1,074
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									(95)	(171)	111
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									(95)	(171)	111
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									5	15	214
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									$ (100)	$ (186)	$ (103)

EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerator for EPS:
Income (Loss) from Continuing Operations									$ (6,060)	$ (259)	$ 2,222
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	$ (12)	$ 26	$ (12)	$ 26	$ 535	$ (26)	$ 11	$ (20)	28	500	26
Net income (loss) attributable to AIG common shareholders from continuing operations									(6,088)	(759)	2,196
Income (loss) from discontinued operations, net of income tax expense	$ (3)	$ (1)	$ 8	$ 0	$ (36)	$ 3	$ (10)	$ (47)	4	(90)	0
Net income (loss) attributable to AIG common shareholders									$ (6,084)	$ (849)	$ 2,196
Denominator for EPS:
Weighted average shares outstanding - basic	908,115,499	908,667,044	925,751,084	980,777,243	1,023,886,592	1,071,295,892	1,113,587,927	1,156,548,459	930,561,286	1,091,085,131	1,299,825,350
Dilutive shares									0	0	34,639,533
Weighted average shares outstanding - diluted	908,115,499	908,667,044	948,248,771	1,005,315,030	1,023,886,592	1,102,400,770	1,140,045,973	1,156,548,459	930,561,286	1,091,085,131	1,334,464,883
Basic:
Income (loss) from continuing operations	$ (7.33)	$ (1.91)	$ 1.21	$ 1.21	$ (2.93)	$ 0.43	$ 1.73	$ (0.12)	$ (6.54)	$ (0.7)	$ 1.69
Income (loss) from discontinued operations	0	0	0.01	0	(0.03)	0	(0.01)	(0.04)	0	(0.08)	0
Net income (loss) attributable to AIG									(6.54)	(0.78)	1.69
Diluted:
Income (loss) from continuing operations	(7.33)	(1.91)	1.18	1.18	(2.93)	0.42	1.69	(0.12)	(6.54)	(0.7)	1.65
Income (loss) from discontinued operations	$ 0	$ 0	$ 0.01	$ 0	$ (0.03)	$ 0	$ (0.01)	$ (0.04)	0	(0.08)	0
Net Income (loss) attributable to AIG									$ (6.54)	$ (0.78)	$ 1.65
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive									1,700,000	200,000	200,000
Dilutive Shares Excluded From Computation Of Diluted Earnings Per Share									22,412,682	30,326,772

STATUTORY FINANCIAL DATA AND RESTRICTIONS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statutory capital and surplus and net income (loss)
Increase (decrease) in the previously reported amount of statutory net income as a result of the finalization of statutory filings		$ 479
Increase (decrease) in the previously reported amount of statutory surplus as a result of the finalization of statutory filings		305
Subsidiary Dividend Restrictions
Statutory capital and surplus of consolidated insurance subsidiaries companies restricted from transfer to parent	$ 44,800
New York
Subsidiary Dividend Restrictions
Dividend restrictions, as percentage of statutory policyholders' surplus	10.00%
Dividend restrictions, as percentage of adjusted net investment income, as defined	100.00%
General Insurance Companies
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	$ (955)	(1,066)	$ 2,038
Statutory capital and surplus	33,209	34,252
Aggregate minimum required statutory capital and surplus	11,473	12,440
Statutory surplus and net income (loss)
Capital Contribution To Affiliates		200
General Insurance Companies \| Domestic
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	(622)	260	1,444
Statutory capital and surplus	21,514	21,665
Aggregate minimum required statutory capital and surplus	5,307	5,183
General Insurance Companies \| Foreign
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	(333)	(1,326)	594
Statutory capital and surplus	11,695	12,587
Aggregate minimum required statutory capital and surplus	6,166	7,257
Life and Retirement companies
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	953	2,299	2,195
Statutory capital and surplus	12,318	12,804
Aggregate minimum required statutory capital and surplus	3,269	3,322
Statutory surplus and net income (loss)
Permitted practice	407	645
Life and Retirement companies \| Domestic
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	932	2,252	2,200
Statutory capital and surplus	11,872	12,314
Aggregate minimum required statutory capital and surplus	3,148	3,088
Life and Retirement companies \| Foreign
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	21	47	$ (5)
Statutory capital and surplus	446	490
Aggregate minimum required statutory capital and surplus	$ 121	234
Property Casualty Insurance Companies
Statutory surplus and net income (loss)
Permitted practice		$ 1,100

SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share based compensation expense) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
SHARE-BASED AND OTHER COMPENSATION PLANS
Share-based compensation expense - pre-tax	$ 353	$ 237	$ 365
Share-based compensation expense - after tax	229	154	237
Vested stock-settled awards issued to retirement eligible employees	141	$ 105	$ 147
Excess Tax Benefit from Share-based Compensation, Financing Activities	$ 40

SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Employee Plans, Share-settled Awards - assumptions used to estimate the fair value of PSUs) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) item shares	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($) shares	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense \| $	$ 353.0	$ 237.0	$ 365.0
Performance share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weight used to calculate performance measure (as a percent)			75.00%	25.00%	50.00%
Assumptions used to estimate the fair value of PSUs based on AIG's TSR
Expected dividend yield (as a percent)	2.37%	2.17%	1.78%
Expected volatility (as a percent)	17.58%	24.55%	22.71%
Risk-free interest rate (as a percent)	2.00%	1.30%	1.01%
Deferred stock units (DSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted under the plans	32,067	41,974	32,342
Compensation expense \| $	$ 2.0	$ 2.4	$ 1.9
2013 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future grant	45,000,000
Number of shares reserved for future grants	42,780,716
Reduction in the number of shares available for grants	1
AIG 2013 Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years
Number of installments \| item	3
AIG 2013 Long Term Incentive Plan \| Vesting on January 1 from the next three years of immediately following the end of the performance period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, from date of grant	2 years
AIG 2013 Long Term Incentive Plan \| Performance share units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of performance period depending on which actual number of awards can be earned	200.00%	150.00%
AIG 2013 Long Term Incentive Plan \| Performance share units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of performance period depending on which actual number of awards can be earned	0.00%	0.00%
AIG 2010 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future grant	60,000,000
Reduction in the number of shares available for grants	0
SICO Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Completion of age of the employee after which the awards can be vested	65 years
Payments for various benefits provided under the plan \| $	$ 0.0

SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share-settled Awards - Outstanding share-settled awards) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incurred incremental compensation expense		$ 71
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized
Unrecognized Compensation Cost	$ 0	$ 0
Expected Period		3 years
RSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incurred incremental compensation expense		$ 142
SICO Plans
Change in number of shares
Unvested at the end of the period (in shares)	0	0
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized
Weighted-Average Period		5 years 29 days
Expected Period		21 years
2013 LTI \| PSUs
Change in number of shares
Unvested at the beginning of the period (in shares)	576,210	1,581,904
Net impact of modification		0
Granted (in shares)	0
Vested (in shares)	968,930	0
Forfeited (in shares)	36,764	0
Cancelled at modification date (in shares)	0
Granted at modification date (in shares)	0
Unvested at the end of the period (in shares)	576,210	576,210	1,581,904
Change in Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 38.04	$ 38.03
Net impact of modification		0
Granted (in dollars per share)	0
Vested (in dollars per share)	37.98	0
Forfeited (in dollars per share)	39.14	0
Cancelled at modification date (in dollars per share)	0
Granted at modification date (in dollars per share)	0
Unvested at the end of the period (in dollars per share)	$ 38.04	$ 38.04	$ 38.03
2014 LTI \| PSUs
Change in number of shares
Unvested at the beginning of the period (in shares)	823,311	1,732,616
Net impact of modification		0
Granted (in shares)	122,378
Vested (in shares)	957,045	0
Forfeited (in shares)	74,638	0
Cancelled at modification date (in shares)	0
Granted at modification date (in shares)	0
Unvested at the end of the period (in shares)	823,311	823,311	1,732,616
Change in Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 48.81	$ 48.88
Net impact of modification		0
Granted (in dollars per share)	48.57
Vested (in dollars per share)	48.89	0
Forfeited (in dollars per share)	49.02	0
Cancelled at modification date (in dollars per share)	0
Granted at modification date (in dollars per share)	0
Unvested at the end of the period (in dollars per share)	$ 48.81	$ 48.81	$ 48.88
2015 LTI \| PSUs
Change in number of shares
Unvested at the beginning of the period (in shares)	1,853,843	2,176,555
Net impact of modification		(135,244)
Granted (in shares)	0
Vested (in shares)	201,256	424,788
Forfeited (in shares)	121,456	2,023
Cancelled at modification date (in shares)	(2,229,873)
Granted at modification date (in shares)	2,094,629
Unvested at the end of the period (in shares)	1,291,788	1,291,788	2,176,555
Change in Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 55.17	$ 55.52
Net impact of modification		56.33
Granted (in dollars per share)	0
Vested (in dollars per share)	59.04	61.82
Forfeited (in dollars per share)	55.01	62.13
Cancelled at modification date (in dollars per share)	54.56
Granted at modification date (in dollars per share)	62.13
Unvested at the end of the period (in dollars per share)	$ 60.02	$ 60.02	$ 55.52
2016 LTI \| PSUs
Change in number of shares
Unvested at the beginning of the period (in shares)	2,270,203	2,588,598
Net impact of modification		(304,551)
Granted (in shares)	2,806
Vested (in shares)	182,938	495,222
Forfeited (in shares)	138,263	2,685
Cancelled at modification date (in shares)	(2,951,417)
Granted at modification date (in shares)	2,646,866
Unvested at the end of the period (in shares)	1,467,745	1,467,745	2,588,598
Change in Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 50.37	$ 51.12
Net impact of modification		55.01
Granted (in dollars per share)	36.49
Vested (in dollars per share)	60.29	62.13
Forfeited (in dollars per share)	51.1	62.13
Cancelled at modification date (in dollars per share)	52
Granted at modification date (in dollars per share)	62.13
Unvested at the end of the period (in dollars per share)	$ 60.9	$ 60.9	$ 51.12
2017 LTI \| PSUs
Change in number of shares
Unvested at the beginning of the period (in shares)	2,940,046	0
Net impact of modification		0
Granted (in shares)	3,996,978
Vested (in shares)	971,945	766,931
Forfeited (in shares)	84,987	0
Cancelled at modification date (in shares)	(1,082,417)
Granted at modification date (in shares)	1,082,417
Unvested at the end of the period (in shares)	2,173,115	2,173,115	0
Change in Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 65.07	$ 0
Net impact of modification		0
Granted (in dollars per share)	64.83
Vested (in dollars per share)	64.09	64.01
Forfeited (in dollars per share)	65.24	0
Cancelled at modification date (in dollars per share)	67.47
Granted at modification date (in dollars per share)	62.13
Unvested at the end of the period (in dollars per share)	$ 62.78	$ 62.78	$ 0
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized
Unrecognized Compensation Cost			$ 237
Weighted-Average Period		1 year 7 days
Expected Period		3 years

SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Roll forward of stock option activity) - USD ($) $ / shares in Units, $ in Millions													12 Months Ended
	Dec. 22, 2017	Sep. 29, 2017	Jun. 28, 2017	Mar. 29, 2017	Dec. 22, 2016	Sep. 29, 2016	Jun. 27, 2016	Mar. 28, 2016	Dec. 21, 2015	Sep. 28, 2015	Jun. 25, 2015	Mar. 26, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted under the plans													2,500,000
Weighted average assumptions used to estimate the fair value
Dividend paid (in dollars per share)	$ 0.32	$ 0.32	$ 0.32	$ 0.32	$ 0.32	$ 0.32	$ 0.32	$ 0.32	$ 0.28	$ 0.28	$ 0.125	$ 0.125
Stock options activity
Outstanding at beginning of year (in shares)													0
Granted (in shares)													2,500,000
Exercised (in shares)													0
Forfeited or expired (in shares)													0
Outstanding at end of year (in shares)													2,500,000	0
Units, Exercisable, end of year (in shares)													0
Stock options, Weighted Average Exercise Price
Outstanding at beginning of year (in dollars per share)													$ 0
Granted (in dollars per share)													62.9
Exercised (in dollars per share)													0
Forfeited or expired (in dollars per share)													0
Outstanding at end of year (in dollars per share)													62.9	$ 0
Excercisable, end of year (in dollars per share)													$ 0
Stock options, Weighted Average Remaining Contractual Life
Weighted Average Remaining Contractual Life, Outstanding End of year													6 years 5 months 23 days
Weighted Average Remaining Contractual Life, Exercisable, End of year													0 years
Aggregate intrinsic value, Outstanding, end of year													$ 0.0
Aggregate intrinsic value, Excerciable, end of year													0.0
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized
Compensation expense													353.0	$ 237.0	$ 365.0
Deferred stock units (DSUs)
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized
Compensation expense													$ 2.0	$ 2.4	$ 1.9
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted under the plans													2,500,000
Vesting period													3 years
Weighted average assumptions used to estimate the fair value
Expected annual dividend yield (as a percent)													2.03%
Expected volatility (as a percent)													20.96%
Risk-free interest rate (as a percent)													1.94%
Expected term													4 years 6 months
Dividend paid (in dollars per share)													$ 0.32
Number of Days Implied volatility as seen in the open marketplace on the Valuation Date													2 years 11 months 15 days
Risk-free interest rate, Maximum													2.14%
Risk-free interest rate, Minimum													1.76%
Contractual term of the option													7 Years
Shares issued in connection with previous exercises of options with delivery deferred													0
Stock options activity
Granted (in shares)													2,500,000
Stock options, Weighted Average Remaining Contractual Life
Weighted average grant-date fair value of stock options granted													$ 10.54
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized
Compensation expense													$ 7.3
Unrecognized Compensation Cost													$ 19.0
Expected Period													2 years 9 months

SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Cash-settled Awards) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) item shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash paid to settle awards	$ 141	$ 105	$ 147
Compensation expense	353	237	365
Long Term Incentive Plans 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 0	19	57
Percentage of outstanding awards that will vest once the service requirements are satisfied	100.00%
Contingent performance measurement period	2 years
Long Term Incentive Plans 2012 [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contingent performance target amount \| item	2
Contingent performance cash portion maximum period	2 years
Long Term Incentive Plans 2012 [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contingent performance target amount \| item	0
Stock Salary Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash paid to settle awards	$ 29	101	155
Compensation expense	$ 0	$ 2	$ 7
Number of vested but unsettled RSUs \| shares	0
SARs \| Long Term Incentive Plans 2012 [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contingent performance cash portion maximum period	2 years

EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016
Change in plan assets:
AIG contributions		$ 209	$ 236	$ 166
Pensions \| U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Annual pay credit percentage to be applied to participant's cash balance		6.00%
Change in projected benefit obligation:
Benefit obligation, beginning of year	$ 5,091	$ 4,948	5,324
Service cost		11	19	192
Interest cost		166	181	220
Actuarial (gain) loss		372	118
Benefits paid:
AIG assets		(19)	(24)
Plan assets		(161)	(332)
Plan amendment		0	0
Curtailments		0	0
Settlements		(226)	(338)
Foreign exchange effect		0	0
Other		0	0
Projected benefit obligation, end of year		5,091	4,948	5,324
Change in plan assets:
Fair value of plan assets, beginning of year	4,350	3,843	4,359
Actual return on plan assets, net of expenses		584	154
AIG contributions	64	329	24
AIG assets		(19)	(24)
Plan assets		(161)	(332)
Settlements		(226)	(338)
Foreign exchange effect		0	0
Dispositions		0	0
Other		0	0
Fair value of plan assets, end of year		4,350	3,843	4,359
Funded status, end of year					$ (741)	$ (1,105)
Amounts recognized in the consolidated balance sheet:
Assets					0	0
Liabilities					(741)	(1,105)
Total amounts recognized					(741)	(1,105)
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Net gain (loss)		(1,373)	(1,405)
Prior service (cost) credit		0	0
Total amounts recognized		(1,373)	(1,405)
Projected benefit obligation	5,091	4,948	4,948	5,324	5,091	4,948
Pensions \| U.S. Plans \| Non-qualified unfunded plans
Change in projected benefit obligation:
Benefit obligation, beginning of year	272	278
Benefits paid:
Projected benefit obligation, end of year		272	278
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Projected benefit obligation	272	$ 272	278		272	278
Pensions \| U.S. Plans \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Requisite service period to participate in the plan		12 months
Period of service after which plan gets vested		3 years
Pensions \| U.S. Plans \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Unreduced benefits, maximum services credited		44 years
Pensions \| Non U.S. Plans
Change in projected benefit obligation:
Benefit obligation, beginning of year	1,202	$ 1,246	1,146
Service cost		29	31	43
Interest cost		16	21	25
Actuarial (gain) loss		(29)	98
Benefits paid:
AIG assets		(10)	(12)
Plan assets		(26)	(35)
Plan amendment		0	1
Curtailments		(7)	(2)
Settlements		(12)	(16)
Foreign exchange effect		37	19
Other		(42)	(5)
Projected benefit obligation, end of year		1,202	1,246	1,146
Change in plan assets:
Fair value of plan assets, beginning of year	875	803	773
Actual return on plan assets, net of expenses		67	19
AIG contributions	64	60	71
AIG assets		(10)	(12)
Plan assets		(26)	(35)
Settlements		(12)	(16)
Foreign exchange effect		19	6
Dispositions		0	(4)
Other		(26)	1
Fair value of plan assets, end of year		875	803	773
Funded status, end of year					(327)	(443)
Amounts recognized in the consolidated balance sheet:
Assets					68	53
Liabilities					(395)	(496)
Total amounts recognized					(327)	(443)
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Net gain (loss)		(170)	(251)
Prior service (cost) credit		(22)	(28)
Total amounts recognized		(192)	(279)
Projected benefit obligation	1,202	1,246	1,246	1,146	1,202	1,246
Pensions \| Non U.S. Plans \| Non-qualified unfunded plans
Change in projected benefit obligation:
Benefit obligation, beginning of year	211	199
Benefits paid:
Projected benefit obligation, end of year		211	199
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Projected benefit obligation	211	$ 211	199		211	199
Postretirement Plans \| U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Eligibility age		55 years
Change in projected benefit obligation:
Benefit obligation, beginning of year	190	$ 196	208
Service cost		2	2	5
Interest cost		6	7	8
Actuarial (gain) loss		0	(2)
Benefits paid:
AIG assets		(13)	(14)
Plan assets		0	0
Plan amendment		0	0
Curtailments		0	(1)
Settlements		0	0
Foreign exchange effect		0	0
Other		(1)	(4)
Projected benefit obligation, end of year		190	196	208
Change in plan assets:
Fair value of plan assets, beginning of year	0	0	0
Actual return on plan assets, net of expenses		0	0
AIG contributions		13	14
AIG assets		(13)	(14)
Plan assets		0	0
Settlements		0	0
Foreign exchange effect		0	0
Dispositions		0	0
Other		0	0
Fair value of plan assets, end of year		0	0	0
Funded status, end of year					(190)	(196)
Amounts recognized in the consolidated balance sheet:
Assets					0	0
Liabilities					(190)	(196)
Total amounts recognized					(190)	(196)
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Net gain (loss)		17	17
Prior service (cost) credit		1	2
Total amounts recognized		18	19
Projected benefit obligation	190	$ 196	196	208	190	196
Postretirement Plans \| U.S. Plans \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Minimum requisite service period to participate in the plan		10 years
Postretirement Plans \| Non U.S. Plans
Change in projected benefit obligation:
Benefit obligation, beginning of year	63	$ 80	75
Service cost		3	3	3
Interest cost		3	3	3
Actuarial (gain) loss		(2)	0
Benefits paid:
AIG assets		(1)	(1)
Plan assets		0	0
Plan amendment		(6)	0
Curtailments		0	0
Settlements		0	0
Foreign exchange effect		1	0
Other		(15)	0
Projected benefit obligation, end of year		63	80	75
Change in plan assets:
Fair value of plan assets, beginning of year	0	0	0
Actual return on plan assets, net of expenses		0	0
AIG contributions		1	1
AIG assets		(1)	(1)
Plan assets		0	0
Settlements		0	0
Foreign exchange effect		0	0
Dispositions		0	0
Other		0	0
Fair value of plan assets, end of year		0	0	0
Funded status, end of year					(63)	(80)
Amounts recognized in the consolidated balance sheet:
Assets					0	0
Liabilities					(63)	(80)
Total amounts recognized					(63)	(80)
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Net gain (loss)		(11)	(15)
Prior service (cost) credit		5	0
Total amounts recognized		(6)	(15)
Projected benefit obligation	$ 63	$ 80	$ 80	$ 75	$ 63	$ 80

EMPLOYEE BENEFITS (Details - Accumulated benefit obligations for U.S. and non-U.S. pension benefit plans) - Pensions - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	$ 5,091	$ 4,948
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets
Projected benefit obligation	5,091	4,948
Accumulated benefit obligation	5,091	4,948
Fair value of plan assets	4,350	3,843
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets
Projected benefit obligation	5,091	4,948
Accumulated benefit obligation	5,091	4,948
Fair value of plan assets	4,350	3,843
Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	1,188	1,215
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets
Projected benefit obligation	1,054	1,121
Accumulated benefit obligation	979	1,016
Fair value of plan assets	596	545
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets
Projected benefit obligation	991	1,029
Accumulated benefit obligation	979	1,009
Fair value of plan assets	$ 596	$ 536

EMPLOYEE BENEFITS (Details - Projected benefit obligation and the accumulated benefit obligation was in excess of the related plan assets and components of net periodic benefit cost ) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pensions
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year
Prior service credit	$ 2
Aggregate net loss and prior service credit	35
Pension expense and effect of change in pension expense due to change in discount rate or expected long-term rate of return
Increase in expense due to decrease of 100 basis point in discount rate	23
Increase in expense due to decrease of 100 basis point in expected long-term rate of return	51
Decrease in expense due to increase of 100 basis point in discount rate	4
Decrease in expense due to increase of 100 basis point in expected long-term rate of return	51
Pensions \| U.S. Plans
Components of net periodic benefit cost:
Service cost	11	$ 19	$ 192
Interest cost	166	181	220
Expected return on assets	(266)	(292)	(295)
Amortization of prior service (credit) cost	0	0	(22)
Amortization of net (gain) loss	26	25	92
Net periodic benefit cost (credit)	(63)	(67)	187
Curtailment (gain) loss	0	0	(179)
Settlement (Credit)/Charges	60	149	0
Net benefit cost (credit)	(3)	82	8
Total recognized in Accumulated other comprehensive income (loss)	32	(82)	143
Total recognized in net periodic benefit cost and other comprehensive income (loss)	35	(164)	135
Pensions \| Non U.S. Plans
Components of net periodic benefit cost:
Service cost	29	31	43
Interest cost	16	21	25
Expected return on assets	(24)	(26)	(25)
Amortization of prior service (credit) cost	0	0	(2)
Amortization of net (gain) loss	12	7	9
Net periodic benefit cost (credit)	33	33	50
Curtailment (gain) loss	(6)	(6)	(1)
Settlement (Credit)/Charges	1	2	1
Net benefit cost (credit)	28	29	50
Total recognized in Accumulated other comprehensive income (loss)	87	(101)	38
Total recognized in net periodic benefit cost and other comprehensive income (loss)	59	(130)	(12)
Postretirement Plans
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year
Prior service credit	3
Postretirement Plans \| U.S. Plans
Components of net periodic benefit cost:
Service cost	2	2	5
Interest cost	6	7	8
Expected return on assets	0	0	0
Amortization of prior service (credit) cost	(1)	(12)	(11)
Amortization of net (gain) loss	(1)	(1)	0
Net periodic benefit cost (credit)	6	(4)	2
Curtailment (gain) loss	0	(1)	0
Settlement (Credit)/Charges	0	0	0
Net benefit cost (credit)	6	(5)	2
Total recognized in Accumulated other comprehensive income (loss)	(2)	(7)	12
Total recognized in net periodic benefit cost and other comprehensive income (loss)	(8)	(2)	10
Postretirement Plans \| Non U.S. Plans
Components of net periodic benefit cost:
Service cost	3	3	3
Interest cost	3	3	3
Expected return on assets	0	0	0
Amortization of prior service (credit) cost	(1)	0	(1)
Amortization of net (gain) loss	1	1	0
Net periodic benefit cost (credit)	6	7	5
Curtailment (gain) loss	(2)	0	0
Settlement (Credit)/Charges	0	0	0
Net benefit cost (credit)	4	7	5
Total recognized in Accumulated other comprehensive income (loss)	9	1	(9)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$ 5	$ (6)	$ (14)

EMPLOYEE BENEFITS (Details - Weighted average assumptions used to determine the benefit obligations) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension \| U.S. Plans
Weighted average assumptions used to determine the benefit obligations:
Discount rate (as a percent)	3.61%	4.14%
Assumed health care cost trend rates
Ultimate rate to which cost increase is assumed to decline (as a percent)	4.50%	4.50%
Weighted average assumptions used to determine the net periodic benefit costs:
Discount rate (as a percent)	4.15%	4.33%	3.94%
Rate of compensation increase (as a percent)			3.40%
Expected return on assets (as a percent)	7.00%	7.00%	7.25%
Discount Rate Methodology
Discount rate (as a percent)	3.61%	4.15%
Pension \| U.S. Plans \| Medical (before age 65)
Assumed health care cost trend rates
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year	6.12%	6.31%
Year in which the ultimate trend rate is reached:	2038	2038
Pension \| U.S. Plans \| Medical (age 65 and older)
Assumed health care cost trend rates
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year	5.00%	5.00%
Year in which the ultimate trend rate is reached:	2038	2038
Pension \| Non U.S. Plans
Weighted average assumptions used to determine the benefit obligations:
Discount rate (as a percent)	1.60%	1.50%
Rate of compensation increase (as a percent)	2.27%	2.50%
Weighted average assumptions used to determine the net periodic benefit costs:
Discount rate (as a percent)	1.50%	2.17%	2.33%
Rate of compensation increase (as a percent)	2.50%	2.64%	2.89%
Expected return on assets (as a percent)	2.92%	3.28%	3.33%
Pension \| AIG Japan pension plans
Discount Rate Methodology
Projected benefit obligation to total projected benefit obligations (as a percent)	50.00%	54.00%
Weighted average discount rate (as a percent)	0.66%	0.47%
Postretirement Plans \| U.S. Plans
Weighted average assumptions used to determine the benefit obligations:
Discount rate (as a percent)	3.53%	4.02%
Effect of one percent point change in the assumed healthcare cost trend rate on postretirement benefit obligations
One percent increase	$ 4	$ 4
One percent decrease	$ (4)	$ (3)
Weighted average assumptions used to determine the net periodic benefit costs:
Discount rate (as a percent)	4.01%	4.21%	3.77%
Postretirement Plans \| Non U.S. Plans
Weighted average assumptions used to determine the benefit obligations:
Discount rate (as a percent)	3.59%	3.95%
Rate of compensation increase (as a percent)	3.00%	3.38%
Effect of one percent point change in the assumed healthcare cost trend rate on postretirement benefit obligations
One percent increase	$ 14	$ 19
One percent decrease	$ (10)	$ (14)
Weighted average assumptions used to determine the net periodic benefit costs:
Discount rate (as a percent)	3.95%	4.09%	4.04%
Rate of compensation increase (as a percent)	3.38%	3.43%	3.29%

EMPLOYEE BENEFITS (Details - Assumed health care cost trend rates) - Pensions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)			100.00%
Actual allocation (as a percent)	100.00%	100.00%
Expected weighted average long-term rate of return plan assets (as a percent)	7.00%	7.00%
U.S. Plans \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)			46.00%
Actual allocation (as a percent)	45.00%	43.00%
U.S. Plans \| Fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)			44.00%
Actual allocation (as a percent)	36.00%	36.00%
U.S. Plans \| Other Investments
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)			10.00%
Actual allocation (as a percent)	19.00%	21.00%
Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)			100.00%
Actual allocation (as a percent)	100.00%	100.00%
Expected weighted average long-term rate of return plan assets (as a percent)	2.92%	3.28%
Non U.S. Plans \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)			30.00%
Actual allocation (as a percent)	49.00%	44.00%
Non U.S. Plans \| Fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)			52.00%
Actual allocation (as a percent)	32.00%	36.00%
Non U.S. Plans \| Other Investments
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)			17.00%
Actual allocation (as a percent)	13.00%	14.00%
Non U.S. Plans \| Cash & cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)			1.00%
Actual allocation (as a percent)	6.00%	6.00%
AIG Japan pension plans
Defined Benefit Plan Disclosure [Line Items]
Actual allocation (as a percent)	56.00%	56.00%
Expected weighted average long-term rate of return plan assets (as a percent)	2.43%	2.61%

EMPLOYEE BENEFITS (Details - Changes in Level 3 fair value measurements) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Changes in Level 3 fair value measurements
Purchases	$ 4,053	$ 5,974
Sales	(1,071)	(971)
Settlements	(7,629)	(6,278)
Issuances	0	0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	487	(410)
Pensions \| U.S. Plans
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	3,843	4,359
Net Realized and Unrealized Gains (Losses)	584	154
Fair value of plan assets, end of year	4,350	3,843
Pensions \| U.S. Plans \| Level 3
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	26	37
Net Realized and Unrealized Gains (Losses)	(3)	(3)
Purchases	18	6
Sales	(14)	(14)
Settlements	0	0
Issuances	0	0
Transfers In	0	0
Transfers Out	0	0
Fair value of plan assets, end of year	27	26
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	1	(4)
Pensions \| U.S. Plans \| Level 3 \| Fixed maturity securities: U.S. investment grade
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	2	9
Net Realized and Unrealized Gains (Losses)	0	1
Purchases	17	2
Sales	(7)	(10)
Settlements	0	0
Issuances	0	0
Transfers In	0	0
Transfers Out	0	0
Fair value of plan assets, end of year	12	2
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	2	0
Pensions \| U.S. Plans \| Level 3 \| Direct private equity
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	24	28
Net Realized and Unrealized Gains (Losses)	(3)	(4)
Purchases	1	4
Sales	(7)	(4)
Settlements	0	0
Issuances	0	0
Transfers In	0	0
Transfers Out	0	0
Fair value of plan assets, end of year	15	24
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	(1)	(4)
Pensions \| U.S. Plans \| Level 3 \| Hedge funds
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Pensions \| U.S. Plans \| Level 3 \| Mortgage-backed, asset-backed and collateralized
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Pensions \| U.S. Plans \| Level 3 \| Insurance contracts
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Pensions \| Non U.S. Plans
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	803	773
Net Realized and Unrealized Gains (Losses)	67	19
Fair value of plan assets, end of year	875	803
Pensions \| Non U.S. Plans \| Level 3
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	108	95
Net Realized and Unrealized Gains (Losses)	4	12
Purchases	1	1
Sales	0	0
Settlements	0	0
Issuances	0	0
Transfers In	0	2
Transfers Out	0	(2)
Fair value of plan assets, end of year	113	108
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Direct private equity
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Hedge funds
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Mortgage-backed, asset-backed and collateralized
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Other fixed maturity securities
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	0	0
Net Realized and Unrealized Gains (Losses)	0	0
Purchases	0	0
Sales	0	0
Settlements	0	0
Issuances	0	0
Transfers In	0	0
Transfers Out	0	0
Fair value of plan assets, end of year	0	0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Insurance contracts
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	108	95
Net Realized and Unrealized Gains (Losses)	4	12
Purchases	1	1
Sales	0	0
Settlements	0	0
Issuances	0	0
Transfers In	0	2
Transfers Out	0	(2)
Fair value of plan assets, end of year	113	108
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	$ 0	$ 0

EMPLOYEE BENEFITS (Details - Expected Cash Flows) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
AIG contributions		$ 209	$ 236	$ 166
Expected future benefit payments, net of participants' contributions
Pre tax expenses associated with contribution plans		$ 209	236	166
DEFINED CONTRIBUTION PLANS
Percentage of employer's contribution on employee's matching contribution		100.00%
Change in percentage of employer's contribution on employee's matching contribution		6.00%
Company's maximum contribution as percentage of employee's annual salary		3.00%
Defined Contribution Plan Pre Tax Expense		$ 209	236	$ 166
Pensions \| U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
AIG contributions	$ 64	329	24
Expected future benefit payments, net of participants' contributions
2018		291
2019		287
2020		297
2021		294
2022		291
2023-2027		1,407
Pre tax expenses associated with contribution plans	64	329	24
Pensions \| Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
AIG contributions	64	60	71
Expected future benefit payments, net of participants' contributions
2018		36
2019		40
2020		42
2021		43
2022		41
2023-2027		235
Pre tax expenses associated with contribution plans	$ 64	60	71
Postretirement Plans \| U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
AIG contributions		13	14
Expected future benefit payments, net of participants' contributions
2018		13
2019		13
2020		13
2021		13
2022		13
2023-2027		60
Pre tax expenses associated with contribution plans		13	14
Postretirement Plans \| Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
AIG contributions		1	1
Expected future benefit payments, net of participants' contributions
2018		1
2019		1
2020		1
2021		2
2022		2
2023-2027		11
Pre tax expenses associated with contribution plans		$ 1	$ 1

OWNERSHIP (Details)	Dec. 31, 2017 shares
The Vanguard Group
Beneficial Ownership [Line Items]
Ownership interest (as a percent)	6.80%
Common stock deemed to be beneficially owned (in shares)	61,323,039
Blackrock, Inc
Beneficial Ownership [Line Items]
Ownership interest (as a percent)	7.20%
Common stock deemed to be beneficially owned (in shares)	64,406,363
Capital Research Global Investors
Beneficial Ownership [Line Items]
Ownership interest (as a percent)	6.40%
Common stock deemed to be beneficially owned (in shares)	57,556,990

INCOME TAXES (Details - U.S. TAX REFORM OVERVIEW) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax [Line Items]
U.S. federal income tax at statutory rate (as a percent)		21.00%	35.00%	35.00%	35.00%
Impact of Tax Act	$ 6,687		$ 6,687	$ 0	$ 0
Tax charge attributable to the reduction in the U.S. corporate income tax			6,700
Tax benefit related to the deemed repatriation tax			38
New deferred tax liabilities	4,464		4,464	$ 6,634
General Insurance Companies
Income Tax [Line Items]
New deferred tax liabilities	$ 1,900		$ 1,900
Long-tail lines of business
Income Tax [Line Items]
Tax Act Discount Period Extension, Minimum			10 years
Tax Act Discount Period Extension, Maximum			24 years

INCOME TAXES (Details - EFFECTIVE TAX RATE) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income (loss) from continuing operations before income tax expense (benefit)
U.S.										$ 1,940	$ 1,041	$ 1,950
Foreign										(474)	(1,115)	1,331
Income (loss) from continuing operations before income tax expense (benefit)	$ 875	$ (2,803)	$ 1,667	$ 1,727	$ (3,455)	$ 737	$ 2,858	$ (214)		1,466	(74)	3,281
Foreign:
Current										209	436	391
Deferred										25	(121)	(95)
U.S.:
Current										427	140	429
Deferred										6,865	(270)	334
Income tax expense (benefit)										7,526	185	1,059
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)
Consolidated total amounts										1,476	(159)	3,281
Amounts attributable to discontinued operations										10	(85)	0
Income (loss) from continuing operations before income tax expense (benefit)	875	(2,803)	1,667	1,727	(3,455)	737	2,858	(214)		1,466	(74)	3,281
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, tax expense/benefit
U.S. federal income tax at statutory rate										517	(56)	1,148
Consolidated total amounts										7,532	190	1,059
Amounts attributable to discontinued operations										6	5	0
Income tax expense (benefit)										7,526	185	1,059
Adjustments:
Tax exempt interest										(111)	(178)	(195)
Uncertain tax positions										660	268	195
Reclassifications from accumulated other comprehensive income										(184)	(132)	(127)
Partial completion of Internal Revenue Service examination											116	109
Tax exempt income										201	253	195
Cross Border Financing Transactions										660	216	324
Dispositions of Subsidiaries										17	118	0
Tax Attribute Restoration										0	(164)	0
Non-controlling Interest										(7)	(81)	0
Non-deductible transfer pricing charges										35	102	97
Dividends received deduction										(90)	(75)	(72)
Effect of foreign operations										69	234	(58)
Share-based compensation payments excess tax deduction										(40)	0	0
State income taxes										(9)	23	34
Impact of Tax Act	6,687									6,687	0	0
Other										(58)	13	(73)
Effect of discontinued operations										3	35	0
Valuation allowance
Continuing operations										43	$ 83	$ 110
Increase (Decrease) in certain other valuation allowances associated with foreign jurisdictions										43
Increase (Decrease) in certain other valuation allowances associated with certain state jurisdictions.		(26)								(634)
Valuation allowance related to unrealized losses that are no more-likely-than-not to be realized										$ 43
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)									21.00%	35.00%	35.00%	35.00%
Consolidated total amounts (as a percent)										510.30%	(119.50%)	32.30%
Amounts attributable to discontinued operations (as a percent)										60.00%	(5.90%)	0.00%
Adjustments:
Amounts attributable to continuing operations (as a percent)										513.40%	(250.00%)	32.30%
Tax exempt interest (as a percent)										(7.50%)	111.90%	(5.90%)
Uncertain Tax Positions (as a percent)										44.70%	(168.60%)	5.90%
Reclassification from accumulated other comprehensive income (as a percent)										(12.50%)	83.00%	(3.90%)
Dispositions of Subsidiaries (as a percent)										1.20%	(74.20%)
Tax Attribute Restoration (as a percent)										0.00%	103.10%	0.00%
Non-controlling Interest (as a percent)										(0.50%)	50.90%
Non-deductible transfer pricing charges (as a percent)										2.40%	(64.20%)	3.00%
Dividends received deduction (as a percent)										(6.10%)	47.20%	(2.20%)
Effect of foreign operations (as a percent)										4.70%	(147.20%)	(1.80%)
Share-based compensation payments excess tax deduction (as a percent)										(2.70%)	0.00%	0.00%
State income taxes (as a percent)										(0.60%)	(14.50%)	1.00%
Impact of Tax Act (as a percent)										453.00%	0.00%	0.00%
Other (as a percent)										(3.90%)	(8.20%)	(2.20%)
Effect of discontinued operations (as a percent)										0.20%	(22.00%)	0.00%
Valuation allowance (as a percent):
Continuing operations (as a percent)										2.90%	(52.20%)	3.40%
Undistributed Earnings of Foreign Subsidiaries	0									$ 0
Accounting for Uncertainty in Income Taxes
Unrecognized tax benefits, excluding interest and penalties	4,707				4,530					4,707	$ 4,530	$ 4,331	$ 4,395
Unrecognized tax benefits, if recognized would not affect the effective tax rate	28				66					28	66	115
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate	4,700				4,400					4,700	4,400	4,200
Unrecognized tax benefits, interest and penalties accrued	2,000				1,200					2,000	1,200	1,200
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties										$ 776	26	156
Deferred tax asset valuation allowance recognized	$ 40	$ 24	$ (8)	$ (13)	$ 87	$ (2)	$ 35	$ (37)
US Life companies capital loss carryforward
Valuation allowance
Continuing operations												$ 0
Other valuation allowance associated with foreign jurisdictions \| Residential mortgages dispute resolution
Adjustments:
Other											$ 0

INCOME TAXES (Details - Components of the net deferred tax assets (liabilities) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Life policy reserves	$ 1,996	$ 3,040
Losses and tax credit carryforwards	11,931	16,448
Basis differences on investments	2,133	4,985
Accruals not currently deductible, and other	532	1,128
Deferred Tax Assets, Investments in foreign subsidiaries	159	103
Loss reserve discount	526	1,151
Loan loss and other reserves	34	39
Unearned premium reserve reduction	566	924
Fixed assets and intangible assets	442	478
Other	731	710
Employee benefits	601	1,171
Total deferred tax assets	19,651	30,177
Deferred tax liabilities:
Deferred policy acquisition costs	(2,313)	(3,790)
Unrealized gains related to available for sale debt securities	(2,151)	(2,844)
Total deferred tax liabilities	(4,464)	(6,634)
Net deferred tax assets before valuation allowance	15,187	23,543
Valuation allowance	(1,374)	(2,831)
Net deferred tax assets (liabilities)	$ 13,813	$ 20,712

INCOME TAXES (Details - U.S. consolidated income tax group tax losses and credits carryforwards) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
AIG U.S. consolidated income tax group tax losses and credits carryforwards, gross
Net operating loss carryforwards	$ 35,592
Capital Loss Carryforwards	305
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected
Net operating loss carryforwards	7,474
Capital Loss Carryforwards	64
Foreign tax credit carryforwards	4,481
Other carryforwards	1,154
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis	13,173
Unrecognized tax benefit	(2,543)
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis	10,630
Other carryforwards include general business credits	$ 118
Other Operating Loss Carryforward
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected
Expiration periods	Various
Capital Loss Carryforward
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected
Expiration periods	2022
Maximum \| Operating loss carryforward
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected
Expiration periods	2037
Maximum \| Foreign tax credit carryforwards
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected
Expiration periods	2022
Minimum \| Operating loss carryforward
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected
Expiration periods	2028
Minimum \| Foreign tax credit carryforwards
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected
Expiration periods	2018

INCOME TAXES (Details - Assessment of Deferred Tax Asset (liabilities) Valuation Allowance) - USD ($) $ in Millions		3 Months Ended								12 Months Ended
	Feb. 26, 2009	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets, Liabilities [Line Items]
Change in valuation allowance		$ 40	$ 24	$ (8)	$ (13)	$ 87	$ (2)	$ 35	$ (37)
Continuing operations										$ 43	$ 83	$ 110
Deferred tax asset valuation allowance related to tax attributes that expired										0
Net deferred tax assets (liabilities) on a U.S. GAAP basis
Valuation allowance		(1,374)				(2,831)				(1,374)	(2,831)
Net deferred tax assets (liabilities)		13,813				20,712				13,813	20,712
Net foreign, state & local deferred tax assets		15,187				23,543				15,187	23,543
Net U.S, foreign, state & local deferred tax assets		14,033				21,332				14,033	21,332
Net foreign, state & local deferred tax liabilities		(4,464)				(6,634)				(4,464)	(6,634)
Non-Life Companies [Member]
Deferred Tax Assets, Liabilities [Line Items]
Deferred tax asset valuation allowance allocated to other comprehensive income										260
Life Insurance Companies [Member]
Deferred Tax Assets, Liabilities [Line Items]
Deferred tax asset valuation allowance allocated to other comprehensive income										468
Deferred tax asset - U.S. consolidated income tax group
Deferred Tax Assets, Liabilities [Line Items]
Change in valuation allowance										13,400	20,900
Continuing operations										10,600
Deferred tax asset valuation allowance recognized related to certain state, local and foreign jurisdictions										0
Net deferred tax assets (liabilities) on a U.S. GAAP basis
Net U.S. consolidated return group deferred tax assets		15,603				24,134				15,603	24,134
Net deferred tax assets (liabilities) in Accumulated other comprehensive income		(2,070)				(2,384)				(2,070)	(2,384)
Valuation allowance		(86)				(874)				(86)	(874)
Net deferred tax assets (liabilities)		13,447				20,876				13,447	20,876
Refund of taxes, interest and penalties sought	$ 306
Deferred tax liability - foreign, state and local
Net deferred tax assets (liabilities) on a U.S. GAAP basis
Valuation allowance		(1,288)				(1,957)				(1,288)	(1,957)
Net deferred tax assets (liabilities)		586				456				586	456
Net foreign, state & local deferred tax assets		1,874				2,413				1,874	2,413
Net foreign, state & local deferred tax liabilities		(220)				(620)				(220)	(620)
Net foreign, state & local deferred tax liabilities		$ 366				$ (164)				$ 366	$ (164)

INCOME TAXES (Details - Accounting For Uncertainty in Income Taxes) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Rollforward of the beginning and ending balances of the total amounts of gross unrecognized tax benefits
Gross unrecognized tax benefits, beginning of year	$ 4,530	$ 4,331	$ 4,395
Increases in tax positions for prior years	210	235	162
Decreases in tax positions for prior years	(33)	(39)	(209)
Increases in tax positions for current year	0	3	0
Lapse in statute of limitations	0	0	(4)
Settlements	0	0	(13)
Activity of discontinued operations	0	0	0
Gross unrecognized tax benefits, end of year	4,707	4,530	4,331
Unrecognized tax benefits, if recognized would not affect the effective tax rate	28	66	115
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate	4,700	4,400	4,200
Unrecognized tax benefits, interest and penalties accrued	2,000	1,200	1,200
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties	776	$ 26	$ 156
Decrease in Unrecognized Tax Benefits is Reasonably Possible in the next twelve months	$ 3,900

INCOME TAXES (Details - Tax Years that remain open in Income Taxes)	12 Months Ended
	Dec. 31, 2017
UNITED STATES \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2000
UNITED STATES \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2016
Australia [Member] \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2013
Australia [Member] \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2016
FRANCE [Member] \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2015
FRANCE [Member] \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2016
JAPAN [Member} \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2011
JAPAN [Member} \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2016
KOREA [Member] \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2012
KOREA [Member] \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2016
SINGAPORE [Member] \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2012
SINGAPORE [Member] \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2016
United Kingdom \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2015
United Kingdom \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2016

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details - Consolidated Statements of Income (Loss)) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Total revenues	$ 12,635	$ 11,751	$ 12,502	$ 12,632	$ 13,010	$ 12,854	$ 14,724	$ 11,779	$ 49,520	$ 52,367	$ 58,327
Income (loss) from continuing operations before income tax expense (benefit)	875	(2,803)	1,667	1,727	(3,455)	737	2,858	(214)	1,466	(74)	3,281
Income (loss) from discontinued operations, net of income tax expense	(3)	(1)	8	0	(36)	3	(10)	(47)	4	(90)	0
Net income (loss)	(6,672)	(1,713)	1,118	1,211	(2,506)	436	1,924	(203)	(6,056)	(349)	2,222
Net income (loss) from continuing operations attributable to noncontrolling interests	(12)	26	(12)	26	535	(26)	11	(20)	28	500	26
Net income (loss) attributable to AIG	$ (6,660)	$ (1,739)	$ 1,130	$ 1,185	$ (3,041)	$ 462	$ 1,913	$ (183)	$ (6,084)	$ (849)	$ 2,196
Basic:
Income (loss) from continuing operations	$ (7.33)	$ (1.91)	$ 1.21	$ 1.21	$ (2.93)	$ 0.43	$ 1.73	$ (0.12)	$ (6.54)	$ (0.7)	$ 1.69
Income (loss) from discontinued operations	0	0	0.01	0	(0.03)	0	(0.01)	(0.04)	0	(0.08)	0
Diluted:
Income (loss) from continuing operations	(7.33)	(1.91)	1.18	1.18	(2.93)	0.42	1.69	(0.12)	(6.54)	(0.7)	1.65
Income (loss) from discontinued operations	$ 0	$ 0	$ 0.01	$ 0	$ (0.03)	$ 0	$ (0.01)	$ (0.04)	$ 0	$ (0.08)	$ 0
Weighted average shares outstanding:
Basic	908,115,499	908,667,044	925,751,084	980,777,243	1,023,886,592	1,071,295,892	1,113,587,927	1,156,548,459	930,561,286	1,091,085,131	1,299,825,350
Diluted	908,115,499	908,667,044	948,248,771	1,005,315,030	1,023,886,592	1,102,400,770	1,140,045,973	1,156,548,459	930,561,286	1,091,085,131	1,334,464,883
Noteworthy quarterly items income (expense):
Other-than-temporary impairments	$ 37	$ 88	$ 67	$ 68	$ 145	$ 102	$ 108	$ 204	$ 227	$ 487	$ 591
Income (loss) from divested businesses	(241)	13	60	100	(194)	(128)	(225)	2	68	545	(11)
Federal and foreign valuation allowance for deferred tax assets	40	24	(8)	(13)	87	(2)	35	(37)
Gain (Loss) on extinguishment of debt	(1)	1	(4)	(1)	(2)	(14)	7	83	5	(74)	(756)
Total prior year (favourable) unfavorable development	212	901	391	61	5,574	273	7	(66)
Restructuring and other costs	154	$ 31	$ 47	$ 181	206	210	90	188
Impact of Tax Act	$ 6,687								$ 6,687	0	0
Adjustment
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Income (loss) from continuing operations before income tax expense (benefit)					(12)
Net income (loss) attributable to AIG					(154)
Adjusted Pre-Tax Income (Loss)					$ (1)
Adjustments 2016 [Member]
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Income (loss) from continuing operations before income tax expense (benefit)										(57)
Net income (loss) attributable to AIG						$ (65)	$ 66	$ 19		(174)	$ (67)	$ (12)
Adjusted Pre-Tax Income (Loss)										$ (6)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets:
Short-term investments	$ 10,386	$ 12,302
Other investments	311,906	315,873
Total investments	322,292	328,175
Cash	2,362	1,868	$ 1,629	$ 1,758
Loans to subsidiaries	0
Investment in consolidated subsidiaries	0
Other assets, including deferred income taxes	173,647	161,022
Assets held for sale	0	7,199
Total assets	498,301	498,264
Liabilities:
Insurance liabilities	282,105	275,120
Long-term Debt	31,640	30,912
Other liabilities, including intercompany balances	118,848	109,268
Loans from subsidiaries	0
Liabilities held for sale	0	6,106
Total liabilities	432,593	421,406
Total AIG shareholders' equity	65,171	76,300
Non-redeemable noncontrolling interests	537	558
Total equity	65,708	76,858	90,210	107,272
Total liabilities and equity	498,301	498,264
AIG (As Guarantor)
Assets:
Short-term investments	2,541	4,424
Other investments	6,004	7,154
Total investments	8,545	11,578
Cash	3	2	34	26
Loans to subsidiaries	35,004	34,692
Investment in consolidated subsidiaries	40,135	42,582
Other assets, including deferred income taxes	16,016	24,099
Assets held for sale	0
Total assets	99,703	112,953
Liabilities:
Insurance liabilities	0
Long-term Debt	21,557	21,405
Other liabilities, including intercompany balances	12,458	14,671
Loans from subsidiaries	517	577
Liabilities held for sale	0
Total liabilities	34,532	36,653
Total AIG shareholders' equity	65,171	76,300
Non-redeemable noncontrolling interests	0
Total equity	65,171	76,300
Total liabilities and equity	99,703	112,953
AIGLH
Assets:
Short-term investments	0
Other investments	0
Total investments	0
Cash	20	34	116	91
Loans to subsidiaries	0
Investment in consolidated subsidiaries	30,359	27,309
Other assets, including deferred income taxes	170	239
Assets held for sale	0
Total assets	30,549	27,582
Liabilities:
Insurance liabilities	0
Long-term Debt	642	642
Other liabilities, including intercompany balances	143	194
Loans from subsidiaries	0	0
Liabilities held for sale	0
Total liabilities	785	836
Total AIG shareholders' equity	29,764	26,746
Non-redeemable noncontrolling interests	0
Total equity	29,764	26,746
Total liabilities and equity	30,549	27,582
Other Subsidiaries
Assets:
Short-term investments	11,559	13,218
Other investments	305,902	308,719
Total investments	317,461	321,937
Cash	2,339	1,832	1,479	1,641
Loans to subsidiaries	517	576
Investment in consolidated subsidiaries	0
Other assets, including deferred income taxes	159,594	140,743
Assets held for sale	0
Total assets	479,911	472,287
Liabilities:
Insurance liabilities	282,105	275,120
Long-term Debt	9,441	8,865
Other liabilities, including intercompany balances	112,275	103,975
Loans from subsidiaries	35,004	34,691
Liabilities held for sale	0
Total liabilities	438,825	428,757
Total AIG shareholders' equity	40,549	42,972
Non-redeemable noncontrolling interests	537	558
Total equity	41,086	43,530
Total liabilities and equity	479,911	472,287
Reclassification and Eliminations
Assets:
Short-term investments	(3,714)	(5,340)
Other investments	0
Total investments	(3,714)	(5,340)
Cash	0	0	$ 0	$ 0
Loans to subsidiaries	(35,521)	(35,268)
Investment in consolidated subsidiaries	(70,494)	(69,891)
Other assets, including deferred income taxes	(2,133)	(4,059)
Assets held for sale	0
Total assets	(111,862)	(114,558)
Liabilities:
Insurance liabilities	0	0
Long-term Debt	0
Other liabilities, including intercompany balances	(6,028)	(9,572)
Loans from subsidiaries	(35,521)	(35,268)
Liabilities held for sale	0
Total liabilities	(41,549)	(44,840)
Total AIG shareholders' equity	(70,313)	(69,718)
Non-redeemable noncontrolling interests	0
Total equity	(70,313)	(69,718)
Total liabilities and equity	$ (111,862)	$ (114,558)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income (Loss)) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Equity in earnings of consolidated subsidiaries									$ 0	$ 0	$ 0
Other income									49,520	52,367	58,327
Total revenues	$ 12,635	$ 11,751	$ 12,502	$ 12,632	$ 13,010	$ 12,854	$ 14,724	$ 11,779	49,520	52,367	58,327
Expenses:
Interest expense									1,168	1,260	1,281
(Gains) losses on extinguishment of debt	1	(1)	4	1	2	14	(7)	(83)	(5)	74	756
Other expenses									46,891	51,107	53,009
Total benefits, losses and expenses									48,054	52,441	55,046
Income (loss) from continuing operations before income tax expense (benefit)									1,466	(74)	3,281
Income tax expense (benefit)									7,526	185	1,059
Income (loss) from continuing operations									(6,060)	(259)	2,222
Income (loss) from discontinued operations	(3)	(1)	8	0	(36)	3	(10)	(47)	4	(90)	0
Net income (loss)	(6,672)	(1,713)	1,118	1,211	(2,506)	436	1,924	(203)	(6,056)	(349)	2,222
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	(12)	26	(12)	26	535	(26)	11	(20)	28	500	26
Net income (loss) attributable to AIG	$ (6,660)	$ (1,739)	$ 1,130	$ 1,185	$ (3,041)	$ 462	$ 1,913	$ (183)	(6,084)	(849)	2,196
AIG (As Guarantor)
Revenues:
Equity in earnings of consolidated subsidiaries									(149)	(1,269)	3,954
Other income									891	516	88
Total revenues									742	(753)	4,042
Expenses:
Interest expense									949	988	1,049
(Gains) losses on extinguishment of debt									2	77	703
Other expenses									952	295	1,178
Total benefits, losses and expenses									1,903	1,360	2,930
Income (loss) from continuing operations before income tax expense (benefit)									(1,161)	(2,113)	1,112
Income tax expense (benefit)									4,922	(1,301)	(1,086)
Income (loss) from continuing operations									(6,083)	(812)	2,198
Income (loss) from discontinued operations									(1)	(37)	(2)
Net income (loss)									(6,084)	(849)	2,196
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to AIG									(6,084)	(849)	2,196
AIGLH
Revenues:
Equity in earnings of consolidated subsidiaries									1,978	(197)	1,936
Other income									0	5	0
Total revenues									1,978	(192)	1,936
Expenses:
Interest expense									50	51	58
(Gains) losses on extinguishment of debt									0	0	0
Other expenses									2	16	44
Total benefits, losses and expenses									52	67	102
Income (loss) from continuing operations before income tax expense (benefit)									1,926	(259)	1,834
Income tax expense (benefit)									(3)	(21)	(73)
Income (loss) from continuing operations									1,929	(238)	1,907
Income (loss) from discontinued operations									0	0	0
Net income (loss)									1,929	(238)	1,907
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to AIG									1,929	(238)	1,907
Other Subsidiaries
Revenues:
Equity in earnings of consolidated subsidiaries									0	0	0
Other income									48,802	52,875	58,953
Total revenues									48,802	52,875	58,953
Expenses:
Interest expense									176	227	302
(Gains) losses on extinguishment of debt									(7)	(3)	46
Other expenses									46,116	51,819	52,374
Total benefits, losses and expenses									46,285	52,043	52,722
Income (loss) from continuing operations before income tax expense (benefit)									2,517	832	6,231
Income tax expense (benefit)									2,607	1,507	2,218
Income (loss) from continuing operations									(90)	(675)	4,013
Income (loss) from discontinued operations									5	(53)	2
Net income (loss)									(85)	(728)	4,015
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests									28	500	26
Net income (loss) attributable to AIG									(113)	(1,228)	3,989
Reclassification and Eliminations
Revenues:
Equity in earnings of consolidated subsidiaries									(1,829)	1,466	(5,890)
Other income									(173)	(1,029)	(714)
Total revenues									(2,002)	437	(6,604)
Expenses:
Interest expense									(7)	(6)	(128)
(Gains) losses on extinguishment of debt									0	0	7
Other expenses									(179)	(1,023)	(587)
Total benefits, losses and expenses									(186)	(1,029)	(708)
Income (loss) from continuing operations before income tax expense (benefit)									(1,816)	1,466	(5,896)
Income tax expense (benefit)									0	0	0
Income (loss) from continuing operations									(1,816)	1,466	(5,896)
Income (loss) from discontinued operations									0	0	0
Net income (loss)									(1,816)	1,466	(5,896)
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to AIG									$ (1,816)	$ 1,466	$ (5,896)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	$ (6,672)	$ (1,713)	$ 1,118	$ 1,211	$ (2,506)	$ 436	$ 1,924	$ (203)	$ (6,056)	$ (349)	$ 2,222
Other Comprehensive Income (Loss)									2,235	693	(8,086)
Comprehensive income (loss)									(3,821)	344	(5,864)
Total comprehensive income (loss) attributable to noncontrolling interests									28	500	20
Comprehensive income (loss) attributable to AIG									(3,849)	(156)	(5,884)
AIG (As Guarantor)
Condensed Financial Statements, Captions [Line Items]
Net income (loss)									(6,084)	(849)	2,196
Other Comprehensive Income (Loss)									2,235	693	(8,080)
Comprehensive income (loss)									(3,849)	(156)	(5,884)
Total comprehensive income (loss) attributable to noncontrolling interests									0	0	0
Comprehensive income (loss) attributable to AIG									(3,849)	(156)	(5,884)
AIGLH
Condensed Financial Statements, Captions [Line Items]
Net income (loss)									1,929	(238)	1,907
Other Comprehensive Income (Loss)									7,851	4,080	2,320
Comprehensive income (loss)									9,780	3,842	4,227
Total comprehensive income (loss) attributable to noncontrolling interests									0	0	0
Comprehensive income (loss) attributable to AIG									9,780	3,842	4,227
Other Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net income (loss)									(85)	(728)	4,015
Other Comprehensive Income (Loss)									17,857	52,153	54,757
Comprehensive income (loss)									17,772	51,425	58,772
Total comprehensive income (loss) attributable to noncontrolling interests									28	500	20
Comprehensive income (loss) attributable to AIG									17,744	50,925	58,752
Reclassification and Eliminations
Condensed Financial Statements, Captions [Line Items]
Net income (loss)									(1,816)	1,466	(5,896)
Other Comprehensive Income (Loss)									(25,708)	(56,233)	(57,083)
Comprehensive income (loss)									(27,524)	(54,767)	(62,979)
Total comprehensive income (loss) attributable to noncontrolling interests									0	0	0
Comprehensive income (loss) attributable to AIG									$ (27,524)	$ (54,767)	$ (62,979)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ (8,585)	$ 2,383	$ 2,877
Cash flows from investing activities:
Sales of investments	77,291	75,644	72,616
Sale of divested businesses, net	792	2,809	0
Purchase of investments	(63,246)	(69,985)	(65,265)
Loans to subsidiaries - net	0	0
Contributions from (to) subsidiaries - net	0	0
Net change in restricted cash	(121)	385	1,457
Net change in short-term investments	2,098	(3,089)	1,163
Other, net	(2,143)	(1,020)	(1,509)
Net cash provided by (used in) investing activities	14,671	4,744	8,462
Cash flows from financing activities:
Issuance of long-term debt	3,356	5,954	6,867
Repayments of long-term debt	(3,698)	(4,082)	(9,805)
Purchase of Common Stock	(6,275)	(11,460)	(10,691)
Cash dividends paid	(1,172)	(1,372)	(1,028)
Other, net	2,092	4,127	3,228
Net cash provided by (used in) financing activities	(5,697)	(6,833)	(11,429)
Effect of exchange rate changes on cash	(28)	52	(39)
Net increase (decrease) in cash	361	346	(129)
Cash at beginning of year	1,868	1,629	1,758
Change in cash of businesses held for sale	133	(107)	0
Cash at end of Period	2,362	1,868	1,629
Interest:
Third party	(1,282)	(1,331)	(1,368)
Intercompany	0	0	0
Taxes:
Income tax authorities	(544)	(493)	(511)
Intercompany	0	0	0
Aer Cap
Non-cash financing and investing activities:
Non-cash consideration received from sale	0	0	500
United Guaranty Corporation [Member]
Non-cash financing and investing activities:
Non-cash consideration received from sale	0	1,101	0
AIG (As Guarantor)
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	36	2,112	4,443
Cash flows from investing activities:
Sales of investments	5,821	5,769	7,767
Sale of divested businesses, net	40	2,160	0
Purchase of investments	(2,465)	(1,002)	(1,881)
Loans to subsidiaries - net	199	1,525	(83)
Contributions from (to) subsidiaries - net	2,446	1,637	565
Net change in short-term investments	1,990	(789)	2,300
Other, net	(183)	(141)	(175)
Net cash provided by (used in) investing activities	7,848	9,159	8,493
Cash flows from financing activities:
Issuance of long-term debt	1,505	3,831	5,540
Repayments of long-term debt	(1,724)	(1,996)	(6,504)
Purchase of Common Stock	(6,275)	(11,460)	(10,691)
Intercompany loans - net	(63)	3	(201)
Cash dividends paid	(1,172)	(1,372)	(1,028)
Other, net	(154)	(309)	(44)
Net cash provided by (used in) financing activities	(7,883)	(11,303)	(12,928)
Net increase (decrease) in cash	1	(32)	8
Cash at beginning of year	2	34	26
Cash at end of Period	3	2	34
Interest:
Third party	(948)	(975)	(1,030)
Intercompany	0	2	0
Taxes:
Income tax authorities	(329)	(15)	(11)
Intercompany	614	479	829
Non-cash financing and investing activities:
Return of capital	26	0	0
Dividends received in the form of securities	735	5,234	2,326
Capital contributions	259	3,245	494
Fixed maturity securities received in exchange for equity securities	0	440	0
AIGLH
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	1,413	1,707	2,314
Cash flows from investing activities:
Sales of investments	0	0	0
Sale of divested businesses, net	0		0
Purchase of investments	0	0	0
Loans to subsidiaries - net	0	0	0
Contributions from (to) subsidiaries - net	0	0	0
Net change in restricted cash	0	0	0
Net change in short-term investments	0	0	0
Other, net	(5)	0	0
Net cash provided by (used in) investing activities	(5)	0	0
Cash flows from financing activities:
Issuance of long-term debt	0	0	0
Repayments of long-term debt	0	(63)	(114)
Issuance of Common Stock			0
Purchase of Common Stock	0		0
Intercompany loans - net	0	(3)	3
Cash dividends paid	(1,422)	(1,723)	(2,178)
Other, net	0	0	0
Net cash provided by (used in) financing activities - continuing operations		(1,789)	(2,289)
Net cash provided by (used in) financing activities	(1,422)	(1,789)	(2,289)
Net increase (decrease) in cash	(14)	(82)	25
Cash at beginning of year	34	116	91
Cash at end of Period	20	34	116
Interest:
Third party	(48)	(52)	(59)
Intercompany	(1)	0	0
Taxes:
Intercompany	0	0	0
Other Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(7,426)	2,515	1,112
Cash flows from investing activities:
Sales of investments	75,228	81,560	69,726
Sale of divested businesses, net	752		0
Purchase of investments	(64,539)	(80,668)	(68,261)
Loans to subsidiaries - net	63	(3)	367
Contributions from (to) subsidiaries - net	0	0	0
Net change in restricted cash	(121)	385	1,457
Net change in short-term investments	108	(2,300)	(1,137)
Other, net	(1,955)	(879)	(1,334)
Net cash provided by (used in) investing activities	9,536	(1,256)	818
Cash flows from financing activities:
Issuance of long-term debt	1,851	2,123	1,327
Repayments of long-term debt	(1,974)	(2,023)	(3,187)
Issuance of Common Stock			0
Purchase of Common Stock	0		0
Intercompany loans - net	(199)	(1,522)	(86)
Cash dividends paid	(1,186)	(2,228)	(2,814)
Other, net	(200)	2,799	2,707
Net cash provided by (used in) financing activities	(1,708)	(851)	(2,053)
Effect of exchange rate changes on cash	(28)	52	(39)
Net increase (decrease) in cash	374	460	(162)
Cash at beginning of year	1,832	1,479	1,641
Change in cash of businesses held for sale	133	(107)
Cash at end of Period	2,339	1,832	1,479
Interest:
Third party	(286)	(304)	(279)
Intercompany	1	(2)	0
Taxes:
Income tax authorities	(215)	(478)	(500)
Intercompany	(614)	(479)	(829)
Reclassification and Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(2,608)	(3,951)	(4,992)
Cash flows from investing activities:
Sales of investments	(3,758)	(11,685)	(4,877)
Sale of divested businesses, net	0	0	0
Purchase of investments	3,758	11,685	4,877
Loans to subsidiaries - net	(262)	(1,522)	(284)
Contributions from (to) subsidiaries - net	(2,446)	(1,637)	(565)
Net change in restricted cash	0	0	0
Net change in short-term investments	0	0	0
Other, net	0	0	0
Net cash provided by (used in) investing activities	(2,708)	(3,159)	(849)
Cash flows from financing activities:
Issuance of long-term debt	0	0	0
Repayments of long-term debt	0	0	0
Issuance of Common Stock			0
Purchase of Common Stock	0	0	0
Intercompany loans - net	262	1,522	284
Cash dividends paid	2,608	3,951	4,992
Other, net	2,446	1,637	565
Net cash provided by (used in) financing activities	5,316	7,110	5,841
Effect of exchange rate changes on cash	0	0	0
Net increase (decrease) in cash	0	0
Cash at beginning of year	0	0	0
Cash at end of Period	0	0	0
Interest:
Third party	0	0	0
Intercompany	0	0	0
Taxes:
Income tax authorities	0	0	0
Intercompany	$ 0	$ 0	$ 0

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Billions															12 Months Ended
	Feb. 08, 2018	Jan. 21, 2018	Dec. 22, 2017	Sep. 29, 2017	Jun. 28, 2017	Mar. 29, 2017	Dec. 22, 2016	Sep. 29, 2016	Jun. 27, 2016	Mar. 28, 2016	Dec. 21, 2015	Sep. 28, 2015	Jun. 25, 2015	Mar. 26, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	May 03, 2017
Subsequent Event [Line Items]
Dividends declared per common share															$ 1.28	$ 1.28	$ 0.81
Authorized amount of common Stock share repurchase																		$ 2.5
Aggregate remaining authorization amount of common Stock share repurchase															$ 2.3
Date of Shareholders of Record			Dec. 08, 2017	Sep. 15, 2017	Jun. 14, 2017	Mar. 15, 2017	Dec. 08, 2016	Sep. 15, 2016	Jun. 13, 2016	Mar. 14, 2016	Dec. 07, 2015	Sep. 14, 2015	Jun. 11, 2015	Mar. 12, 2015
Subsequent event
Subsequent Event [Line Items]
Dividends declared per common share	$ 0.32
Date Dividends Declared															Feb. 08, 2018
Date Dividends To Be Paid															Mar. 29, 2018
Date of Shareholders of Record															Mar. 15, 2018
Subsequent event \| Validus Holdings, Ltd
Subsequent Event [Line Items]
Payments to Acquire Business		$ 5.6
Transaction is expected to close		mid-2018
Subsequent event \| DSA Reinsurance Company, Ltd.
Subsequent Event [Line Items]
AIG Ownership Percent	100.00%
Subsequent event \| DSA Reinsurance Company, Ltd. \| Life and Retirement Companies
Subsequent Event [Line Items]
Transfer of reserves from various segment run off lines	$ 32.0
Subsequent event \| DSA Reinsurance Company, Ltd. \| General Insurance Companies
Subsequent Event [Line Items]
Transfer of reserves from various segment run off lines	5.0
Subsequent event \| DSA Reinsurance Company, Ltd. \| Legacy reporting segment
Subsequent Event [Line Items]
Percent of Insurance reserves in the Legacy reporting segment transferred															80.00%
Subsequent event \| DSA Reinsurance Company, Ltd. \| AIG Asset Management
Subsequent Event [Line Items]
Invested Assets the Licensed reinsurer will have	$ 40.0

Schedule I Summary of Investments - Other than Investments in Related Parties (Details) $ in Millions	Dec. 31, 2017 USD ($)
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	$ 309,140
Fair Value	323,959
Amount at which shown in the Balance Sheet	323,214
Fixed maturity securities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	238,233
Fair Value	251,764
Amount at which shown in the Balance Sheet	251,764
U.S. government and government sponsored entities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	5,334
Fair Value	5,458
Amount at which shown in the Balance Sheet	5,458
Obligations of states, municipalities and political subdivisions
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	17,377
Fair Value	18,644
Amount at which shown in the Balance Sheet	18,644
Non-U.S. government
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	15,116
Fair Value	15,716
Amount at which shown in the Balance Sheet	15,716
Public utilities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	17,654
Fair Value	18,870
Amount at which shown in the Balance Sheet	18,870
All other corporate and debt securities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	110,565
Fair Value	117,215
Amount at which shown in the Balance Sheet	117,215
Mortgage-backed, asset-backed and collateralized
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	72,187
Fair Value	75,861
Amount at which shown in the Balance Sheet	75,861
Equity securities and mutual funds
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	1,894
Fair Value	2,297
Amount at which shown in the Balance Sheet	2,297
Common Stock
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	1,251
Fair Value	1,610
Amount at which shown in the Balance Sheet	1,610
Public utilities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	1
Fair Value	1
Amount at which shown in the Balance Sheet	1
Banks, trust and insurance companies
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	924
Fair Value	1,126
Amount at which shown in the Balance Sheet	1,126
Industrial, miscellaneous and all other
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	326
Fair Value	483
Amount at which shown in the Balance Sheet	483
Preferred stock
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	504
Fair Value	533
Amount at which shown in the Balance Sheet	533
Mutual funds
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	139
Fair Value	154
Amount at which shown in the Balance Sheet	154
Mortgage and other loans receivable, net of allowance
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	37,023
Fair Value	37,766
Amount at which shown in the Balance Sheet	37,023
Other invested assets
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	20,682
Fair Value	20,824
Amount at which shown in the Balance Sheet	20,822
Short-term investments, at cost
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	10,386
Fair Value	10,386
Amount at which shown in the Balance Sheet	10,386
Derivative assets
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	922
Fair Value	922
Amount at which shown in the Balance Sheet	$ 922

Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Balance Sheets) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets:
Short-term investments	$ 10,386	$ 12,302
Other Investments	20,822	24,538
Total investments	322,292	328,175
Cash	2,362	1,868	$ 1,629	$ 1,758
Loans to subsidiaries	0
Deferred income taxes	14,033	21,332
Investment in consolidated subsidiaries	0
Other assets	10,194	10,815
Total assets	498,301	498,264
Liabilities:
Outstanding debt	31,640	30,912
Loans from subsidiaries	0
Total liabilities	432,593	421,406
AIG Shareholders' equity:
Common stock	4,766	4,766
Treasury stock	(47,595)	(41,471)
Additional paid-in capital	81,078	81,064
Retained earnings	21,457	28,711
Accumulated other comprehensive income (loss)	5,465	3,230	2,537	10,617
Total AIG shareholders' equity	65,171	76,300
Total liabilities and equity	498,301	498,264
Parent Company [Member]
Assets:
Short-term investments	2,541	4,424
Other Investments	6,004	7,154
Total investments	8,545	11,578
Cash	3	2	$ 34	$ 26
Loans to subsidiaries	35,004	34,692
Due from affiliates - net	1,585	3,460
Intercompany tax receivable	3,058	5,129
Deferred income taxes	11,030	15,169
Investment in consolidated subsidiaries	40,135	42,582
Other assets	343	341
Total assets	99,703	112,953
Liabilities:
Due to affiliate	4,340	6,083
Intercompany tax payable	4,577	4,152
Outstanding debt	21,557	21,405
Loans from subsidiaries	517	577
Other liabilities (includes intercompany derivative liabilities of $63 in 2017 and $419 in 2016)	3,541	4,436
Total liabilities	34,532	36,653
AIG Shareholders' equity:
Common stock	4,766	4,766
Treasury stock	(47,595)	(41,471)
Additional paid-in capital	81,078	81,064
Retained earnings	21,457	28,711
Accumulated other comprehensive income (loss)	5,465	3,230
Total AIG shareholders' equity	65,171	76,300
Total liabilities and equity	99,703	112,953
Intercompany derivative liabilities	63	419
Parent Company [Member] \| Series AIGFP
Liabilities:
Outstanding debt	21	31
Parent Company [Member] \| MIP
Liabilities:
Outstanding debt	356	1,099
Parent Company [Member] \| Notes and bonds payable
Liabilities:
Outstanding debt	20,339	19,432
Parent Company [Member] \| Junior subordinated debt
Liabilities:
Outstanding debt	$ 841	$ 843

Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Income) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Net realized capital gains (losses)									$ (1,380)	$ (1,944)	$ 776
Other income									2,412	3,121	4,088
Expenses
Interest expense									1,168	1,260	1,281
(Gains) losses on extinguishment of debt	$ 1	$ (1)	$ 4	$ 1	$ 2	$ 14	$ (7)	$ (83)	(5)	74	756
Net (gain) loss on sale of divested businesses	241	(13)	(60)	(100)	194	128	225	(2)	(68)	(545)	11
Income from continuing operations before income tax expense (benefit)	875	(2,803)	1,667	1,727	(3,455)	737	2,858	(214)	1,466	(74)	3,281
Income tax expense (benefit)									7,526	185	1,059
Net income (loss) attributable to AIG common shareholders from continuing operations									(6,088)	(759)	2,196
Income (loss) from discontinued operations	(3)	(1)	8	0	(36)	3	(10)	(47)	4	(90)	0
Net income (loss) attributable to AIG	$ (6,660)	$ (1,739)	$ 1,130	$ 1,185	$ (3,041)	$ 462	$ 1,913	$ (183)	(6,084)	(849)	2,196
United Guaranty Asia
Expenses
Net (gain) loss on sale of divested businesses										(697)
Parent Company [Member]
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries									(2,375)	(8,633)	(2,929)
Dividend income from consolidated subsidiaries									2,226	7,364	6,883
Interest income									656	411	342
Net realized capital gains (losses)									46	2	(587)
Other income									189	103	333
Expenses
Interest expense									949	988	1,049
(Gains) losses on extinguishment of debt									2	77	703
Net (gain) loss on sale of divested businesses									30	(690)	11
Other expenses									922	985	1,167
Income from continuing operations before income tax expense (benefit)									(1,161)	(2,113)	1,112
Income tax expense (benefit)									4,922	(1,301)	(1,086)
Net income (loss) attributable to AIG common shareholders from continuing operations									(6,083)	(812)	2,198
Income (loss) from discontinued operations									(1)	(37)	(2)
Net income (loss) attributable to AIG									$ (6,084)	$ (849)	$ 2,196

Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
Net income	$ (6,660)	$ (1,739)	$ 1,130	$ 1,185	$ (3,041)	$ 462	$ 1,913	$ (183)	$ (6,084)	$ (849)	$ 2,196
Other Comprehensive Income (Loss)									2,235	693	(8,086)
Comprehensive income (loss) attributable to AIG									(3,849)	(156)	(5,884)
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net income									(6,084)	(849)	2,196
Other Comprehensive Income (Loss)									2,235	693	(8,080)
Comprehensive income (loss) attributable to AIG									$ (3,849)	$ (156)	$ (5,884)

Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Cash Flows) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ (8,585)	$ 2,383	$ 2,877
Cash flows from investing activities:
Sale of divested businesses, net	792	2,809	0
Purchase of investments	(63,246)	(69,985)	(65,265)
Net change in restricted cash	(121)	385	1,457
Net change in short-term investments	2,098	(3,089)	1,163
Contributions from (to) subsidiaries - net	0	0
Mortgage and other loans receivable	(9,369)	(10,651)	(10,140)
Payments received on mortgages and other loan receivables	5,742	6,074	5,104
Loans to subsidiaries - net	0	0
Other, net	(2,143)	(1,020)	(1,509)
Net cash provided by (used in) investing activities	14,671	4,744	8,462
Cash flows from financing activities:
Issuance of long-term debt	3,356	5,954	6,867
Repayments of long-term debt	(3,698)	(4,082)	(9,805)
Cash dividends paid	(1,172)	(1,372)	(1,028)
Purchase of Common Stock	(6,275)	(11,460)	(10,691)
Other, net	31	(68)	(818)
Net cash provided by (used in) financing activities	(5,697)	(6,833)	(11,429)
Net increase (decrease) in cash	361	346	(129)
Cash at beginning of year	1,868	1,629	1,758
Cash at end of Period	2,362	1,868	1,629
Interest:
Third party	(1,282)	(1,331)	(1,368)
Intercompany	0	0	0
Taxes:
Income tax authorities	(544)	(493)	(511)
Intercompany	0	0	0
Aer Cap
Non-cash investing/financing activities:
Non-cash consideration received from sale	0	0	500
United Guaranty Corporation
Non-cash investing/financing activities:
Non-cash consideration received from sale	0	1,101	0
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	36	2,112	4,443
Cash flows from investing activities:
Sales and maturities of investments	5,714	5,598	7,609
Sale of divested businesses, net	40	2,160	0
Purchase of investments	(2,465)	(1,002)	(1,881)
Net change in short-term investments	1,990	(789)	2,300
Contributions from (to) subsidiaries - net	2,446	1,637	565
Mortgage and other loans receivable	0	(85)	0
Payments received on mortgages and other loan receivables	107	171	158
Loans to subsidiaries - net	199	1,525	(83)
Other, net	(183)	(56)	(175)
Net cash provided by (used in) investing activities	7,848	9,159	8,493
Cash flows from financing activities:
Issuance of long-term debt	1,505	3,831	5,540
Repayments of long-term debt	(1,724)	(1,996)	(6,504)
Cash dividends paid	(1,172)	(1,372)	(1,028)
Loans from subsidiaries - net	(63)	3	(201)
Purchase of Common Stock	(6,275)	(11,460)	(10,691)
Other, net	(154)	(309)	(44)
Net cash provided by (used in) financing activities	(7,883)	(11,303)	(12,928)
Net increase (decrease) in cash	1	(32)	8
Cash at beginning of year	2	34	26
Cash at end of Period	3	2	34
Interest:
Third party	(948)	(975)	(1,030)
Intercompany	0	2	0
Taxes:
Income tax authorities	(329)	(15)	(11)
Intercompany	614	479	829
Non-cash investing/financing activities:
Other capital contributions - net	259	3,245	494
Return of capital	26	0	0
Dividends received in the form of securities	735	5,234	2,326
Fixed maturity securities received in exchange for equity securities	$ 0	$ 440	$ 0

Schedule III Supplementary Insurance Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	$ 10,994	$ 11,042
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits	123,825	119,281
Unearned Premiums	19,030	19,634
Policy and Contract Claims	860	847
Premiums and Policy Fees	34,309	37,125	$ 39,410
Net Investment Income	14,179	14,065	14,053
Losses and Loss Expenses Incurred, Benefits	33,564	36,142	35,076
Amortization of Deferred Policy Acquisition Costs	4,288	4,521	5,236
Other Operating Expenses	7,396	8,667	10,455
Net Premiums Written	25,756	29,233	33,066
General Insurance
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	2,587	2,563
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits	73,530	71,926
Unearned Premiums	18,795	19,348
Policy and Contract Claims	0	0
Premiums and Policy Fees	26,026	29,586	30,922
Net Investment Income	3,668	3,554	3,746
Losses and Loss Expenses Incurred, Benefits	21,642	25,103	22,873
Amortization of Deferred Policy Acquisition Costs	3,765	4,121	4,319
Other Operating Expenses	5,100	5,967	6,848
Net Premiums Written	25,438	28,393	32,199
Life and Retirement
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	8,407	8,466
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits	44,615	41,383
Unearned Premiums	0	0
Policy and Contract Claims	851	836
Premiums and Policy Fees	6,844	4,878	5,677
Net Investment Income	7,816	7,622	7,541
Losses and Loss Expenses Incurred, Benefits	8,607	6,945	7,745
Amortization of Deferred Policy Acquisition Costs	743	613	794
Other Operating Expenses	2,296	2,700	3,607
Net Premiums Written	0	0	0
Other Operations
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	0	13
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits	5,680	5,972
Unearned Premiums	235	286
Policy and Contract Claims	9	11
Premiums and Policy Fees	712	1,845	1,641
Net Investment Income	(81)	(24)	(162)
Losses and Loss Expenses Incurred, Benefits	1,076	743	854
Amortization of Deferred Policy Acquisition Costs	(296)	(321)	21
Other Operating Expenses	0	0	0
Net Premiums Written	314	819	668
Legacy Portfolio
Supplementary Insurance Information, by Segment [Line Items]
Premiums and Policy Fees	727	816	1,170
Net Investment Income	2,776	2,913	2,928
Losses and Loss Expenses Incurred, Benefits	2,239	3,351	3,604
Amortization of Deferred Policy Acquisition Costs	76	108	102
Other Operating Expenses	0	0	0
Net Premiums Written	$ 4	$ 21	$ 199

Schedule IV Reinsurance (Details) - USD ($) $ in Millions	12 Months Ended
Schedule IV Reinsurance (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reportable Segments
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Gross Amount	$ 35,258	$ 38,579	$ 42,931
Ceded to Other Companies	8,342	8,350	8,360
Assumed from Other Companies	3,369	2,947	2,979
Net Amount	$ 30,285	$ 33,176	$ 37,550
Percent of Amount Assumed to Net	11.10%	8.90%	7.90%
Reportable Segments \| General Insurance Companies
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Gross Amount	$ 30,205	$ 33,970	$ 37,698
Ceded to Other Companies	7,533	7,561	7,604
Assumed from Other Companies	3,084	2,824	2,972
Net Amount	$ 25,756	$ 29,233	$ 33,066
Percent of Amount Assumed to Net	12.00%	9.70%	9.00%
Reportable Segments \| Life and Retirement Companies
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Gross Amount	$ 5,053	$ 4,609	$ 5,233
Ceded to Other Companies	809	789	756
Assumed from Other Companies	285	123	7
Net Amount	$ 4,529	$ 3,943	$ 4,484
Percent of Amount Assumed to Net	6.30%	3.10%	0.20%
Reportable Segments \| Other
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Gross Amount	$ 0	$ 0	$ 0
Ceded to Other Companies	0	0	0
Assumed from Other Companies	0	0	0
Net Amount	$ 0	$ 0	$ 0
Percent of Amount Assumed to Net	0.00%	0.00%	0.00%
Long-duration insurance in force
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Gross Amount	$ 1,061,095	$ 1,025,653	$ 1,051,571
Ceded to Other Companies	202,402	174,363	177,025
Assumed from Other Companies	321	339	372
Net Amount	$ 859,014	$ 851,629	$ 874,918
Percent of Amount Assumed to Net	0.00%	0.00%	0.00%

Schedule V Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for mortgage and other loans receivable
Valuation and Qualifying Accounts
Balance at the beginning of the year	$ 297	$ 308	$ 271
Charged to costs and expenses	49	(7)	58
Charge offs	(25)	(15)	(29)
Reclassified to assets of businesses held-for-sale	0	0	0
Divested Business	0	0	3
Other changes	1	11	5
Balance at the end of the year	322	297	308
Allowance for mortgage and other loans receivable \| Segment Discontinued Operations
Valuation and Qualifying Accounts
Net change		0	0
Allowance for premiums and insurances balances receivable
Valuation and Qualifying Accounts
Balance at the beginning of the year	262	333	431
Charged to costs and expenses	36	26	35
Charge offs	(58)	(88)	(120)
Reclassified to assets of businesses held-for-sale	0	(2)	0
Divested Business	(8)	(7)	0
Other changes	4	0	(13)
Balance at the end of the year	236	262	333
Allowance for reinsurance assets
Valuation and Qualifying Accounts
Balance at the beginning of the year	207	272	258
Charged to costs and expenses	33	(23)	90
Charge offs	(50)	(34)	(67)
Reclassified to assets of businesses held-for-sale	0	(8)	0
Divested Business	0	0	0
Other changes	(3)	0	(9)
Balance at the end of the year	187	207	272
Federal and foreign valuation allowance for deferred tax assets
Valuation and Qualifying Accounts
Balance at the beginning of the year	2,831	3,012	1,739
Charged to costs and expenses	43	83	110
Charge offs	0	0	0
Reclassified to assets of businesses held-for-sale	0	0	0
Divested Business	0	0	0
Other changes	(1,500)	(264)	1,163
Balance at the end of the year	1,374	2,831	3,012
Federal and foreign valuation allowance for deferred tax assets \| Segment Discontinued Operations
Valuation and Qualifying Accounts
Net change	$ 0	$ 0	$ 0

FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	$ 2,133	$ 1,380
Net realized and unrealized gains and losses related to Level 3 items, liabilities	639	341
Policyholder contract deposits
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, liabilities	807	441
Policyholder contract deposits \| Investment Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, liabilities	0	0
Policyholder contract deposits \| Net realized capital gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, liabilities	807	441
Policyholder contract deposits \| Other Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, liabilities	0	0
Derivative liabilities, net
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(184)	(104)
Derivative liabilities, net \| Investment Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, liabilities	0	0
Derivative liabilities, net \| Net realized capital gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(17)	(8)
Derivative liabilities, net \| Other Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(167)	(96)
Long-term debt
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, liabilities	16	4
Long-term debt \| Other Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, liabilities	16	4
Bonds available for sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	1,080	1,065
Bonds available for sale \| Investment Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	1,127	1,180
Bonds available for sale \| Net realized capital gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	(49)	(118)
Bonds available for sale \| Other Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	2	3
Other bond securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	1,039	314
Other bond securities \| Investment Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	308	110
Other bond securities \| Net realized capital gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	0	44
Other bond securities \| Other Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	731	160
Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	0	0
Equity securities \| Investment Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	0
Equity securities \| Net realized capital gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	0	0
Equity securities \| Other Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	0
Other equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	0	0
Other equity securities \| Investment Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	0
Other equity securities \| Net realized capital gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	0
Other equity securities \| Other Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	0	0
Other invested assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	14	1
Other invested assets \| Investment Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	9	13
Other invested assets \| Net realized capital gains (losses)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	6	39
Other invested assets \| Other Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net realized and unrealized gains and losses related to Level 3 items, assets	$ (1)	$ (51)

INVESTMENTS (Details - Equity method investments)	12 Months Ended
INVESTMENTS (Details - Equity method investments)	Dec. 31, 2017
Minimum
Other Invested Assets - Equity Method Investments
Investee's reporting period prior to the end of entity's reporting period	1 month
Maximum
Other Invested Assets - Equity Method Investments
Investee's reporting period prior to the end of entity's reporting period	3 months

BASIS OF PRESENTATION (Details) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
BASIS OF PRESENTATION
Common Stock, Par or Stated Value Per Share	$ 2.5	$ 2.5

DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Billions	Dec. 31, 2017	Dec. 31, 2016
Collateral
Collateral posted to third parties for derivative transactions	$ 2.9	$ 4.5
Collateral obtained from third parties for derivative transactions	$ 1.3	$ 1.5

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) $ in Millions	Dec. 31, 2017 USD ($)
Guarantor Obligations [Line Items]
Amount outstanding under standby letters of credit at end of period	$ 139

EQUITY (Details - Share repurchases) shares in Millions	1 Months Ended
EQUITY (Details - Share repurchases) shares in Millions	Jan. 31, 2015 shares
Common Stock \| Accelerated Share Repurchase Agreement [Member]
Rollforward of preferred stock
Additional shares received from financial institution	3.5

EMPLOYEE BENEFITS (Details - Assets Measured at Fair Value) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Investments measured at Fair Value	$ 5,997	$ 6,741
Pensions \| Other Investment Types
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	777	960
Pensions \| U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	4,350	3,843	$ 4,359
Pensions \| U.S. Plans \| Other investment types: Annuity contracts \| US Life
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	20	21
Pensions \| U.S. Plans \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,962	1,443
Pensions \| U.S. Plans \| Level 1 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	397	228
Pensions \| U.S. Plans \| Level 1 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,300	838
Pensions \| U.S. Plans \| Level 1 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	265	377
Pensions \| U.S. Plans \| Level 1 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 1 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 1 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 1 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 1 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 1 \| Other investment types - Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 1 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 1 \| Other investment types - Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 1 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 1 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,584	1,414
Pensions \| U.S. Plans \| Level 2 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 2 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	1
Pensions \| U.S. Plans \| Level 2 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 2 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,006	1,174
Pensions \| U.S. Plans \| Level 2 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	204	0
Pensions \| U.S. Plans \| Level 2 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	212	218
Pensions \| U.S. Plans \| Level 2 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	142	0
Pensions \| U.S. Plans \| Level 2 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 2 \| Other investment types - Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 2 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 2 \| Other investment types - Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 2 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 2 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	20	21
Pensions \| U.S. Plans \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	27	26	37
Pensions \| U.S. Plans \| Level 3 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 3 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 3 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 3 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	12	2
Pensions \| U.S. Plans \| Level 3 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 3 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 3 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 3 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 3 \| Other investment types - Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 3 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 3 \| Other investment types - Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Level 3 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	15	24	28
Pensions \| U.S. Plans \| Level 3 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Total Fair Value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3,573	2,883
Pensions \| U.S. Plans \| Total Fair Value \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	397	228
Pensions \| U.S. Plans \| Total Fair Value \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,300	839
Pensions \| U.S. Plans \| Total Fair Value \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	265	377
Pensions \| U.S. Plans \| Total Fair Value \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,018	1,176
Pensions \| U.S. Plans \| Total Fair Value \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	204	0
Pensions \| U.S. Plans \| Total Fair Value \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	212	218
Pensions \| U.S. Plans \| Total Fair Value \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	142	0
Pensions \| U.S. Plans \| Total Fair Value \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Total Fair Value \| Other investment types - Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Total Fair Value \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Total Fair Value \| Other investment types - Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| U.S. Plans \| Total Fair Value \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	15	24
Pensions \| U.S. Plans \| Total Fair Value \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	20	21
Pensions \| Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	875	803	773
Pensions \| Non U.S. Plans \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	413	348
Pensions \| Non U.S. Plans \| Level 1 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	51	50
Pensions \| Non U.S. Plans \| Level 1 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 1 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	362	298
Pensions \| Non U.S. Plans \| Level 1 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 1 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 1 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 1 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 1 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 1 \| Other investment types - Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 1 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 1 \| Other investment types - Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 1 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 1 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	348	347
Pensions \| Non U.S. Plans \| Level 2 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 2 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 2 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	64	58
Pensions \| Non U.S. Plans \| Level 2 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 2 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	97	90
Pensions \| Non U.S. Plans \| Level 2 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	171	186
Pensions \| Non U.S. Plans \| Level 2 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 2 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	16	13
Pensions \| Non U.S. Plans \| Level 2 \| Other investment types - Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 2 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 2 \| Other investment types - Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 2 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 2 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	113	108	95
Pensions \| Non U.S. Plans \| Level 3 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Other investment types - Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Other investment types - Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Level 3 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	113	108	$ 95
Pensions \| Non U.S. Plans \| Total Fair Value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	874	803
Pensions \| Non U.S. Plans \| Total Fair Value \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	51	50
Pensions \| Non U.S. Plans \| Total Fair Value \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Total Fair Value \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	426	356
Pensions \| Non U.S. Plans \| Total Fair Value \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Total Fair Value \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	97	90
Pensions \| Non U.S. Plans \| Total Fair Value \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	171	186
Pensions \| Non U.S. Plans \| Total Fair Value \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Total Fair Value \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	16	13
Pensions \| Non U.S. Plans \| Total Fair Value \| Other investment types - Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Total Fair Value \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Total Fair Value \| Other investment types - Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Total Fair Value \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Pensions \| Non U.S. Plans \| Total Fair Value \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 113	$ 108