Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2018	Feb. 06, 2019	Jun. 30, 2018
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, 2018
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 Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 47,252,000,000
Entity Common Stock, Shares Outstanding		869,486,334
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fixed maturity securities:
Bonds available for sale, at fair value (amortized cost: 2018 - $225,780; 2017 - $225,461)	$ 229,391	$ 238,992
Other bond securities, at fair value (See Note 6)	11,415	12,772
Equity Securities:
Common and preferred stock available for sale, at fair value (cost: 2017 - $1,305)	0	1,708
Other common and preferred stock, at fair value (See Note 6)	1,253	589
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2018 - $0; 2017 - $5)	43,135	37,023
Other invested assets (portion measured at fair value: 2018 - $5,894; 2017 - $6,248)	19,341	20,822
Short-term investments, including restricted cash of 2018 - $142; 2017 - $58 (portion measured at fair value: 2018 - $3,015; 2017 - $2,615)	9,674	10,386
Total investments	314,209	322,292
Cash	2,873	2,362
Accrued investment income	2,389	2,356
Premiums and other receivables, net of allowance	11,011	10,248
Reinsurance assets, net of allowance	38,172	33,024
Deferred income taxes	15,221	14,033
Deferred policy acquisition costs	12,694	10,994
Other assets, including restricted cash of $343 in 2018 and $317 in 2017 (portion measured at fair value: 2018 - $973; 2017 - $922)	13,568	10,194
Separate account assets, at fair value	81,847	92,798
Total assets	491,984	498,301
Liabilities:
Liability for unpaid losses and loss adjustment expenses	83,639	78,393
Unearned premiums	19,248	19,030
Future policy benefits for life and accident and health insurance contracts	44,935	45,432
Policyholder contract deposits (portion measured at fair value: 2018 - $4,116; 2017 - $4,150)	142,262	135,602
Other policyholder funds	3,568	3,648
Other liabilities (portion measured at fair value: 2018 - $1,265; 2017 - $1,124)	24,636	26,050
Long-term debt (portion measured at fair value: 2018 - $2,213; 2017 - $2,888)	34,540	31,640
Separate account liabilities	81,847	92,798
Total liabilities	434,675	432,593
Contingencies, commitments and guarantees (see Note 11)
AIG shareholders' equity:
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2018 - 1,906,671,492 and 2017 - 1,906,671,492	4,766	4,766
Treasury stock, at cost; 2018 - 1,040,062,063 shares; 2017 - 1,007,626,835 shares of common stock	(49,144)	(47,595)
Additional paid-in capital	81,268	81,078
Retained earnings	20,884	21,457
Accumulated other comprehensive income (loss)	(1,413)	5,465
Total AIG shareholders' equity	56,361	65,171
Non-redeemable noncontrolling interests	948	537
Total equity	57,309	65,708
Total liabilities and equity	$ 491,984	$ 498,301

Consolidated Balance Sheets (Parenthetical - assets and liabilities) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Assets:
Bonds available for sale, amortized cost	$ 225,780	$ 225,461
Common and preferred stock available for sale, cost		1,305
Mortgage and other loans receivable, portion measured at fair value	0	5
Other invested assets, portion measured at fair value	5,894	6,248
Short-term investments, restricted cash	142	58
Short-term investments, portion measured at fair value	3,015	2,615
Other assets, restricted cash	343	317
Other assets, portion measured at fair value	973	922
Liabilities:
Policyholder contract deposits, portion measured at fair value	4,116	4,150
Other liabilities, portion measured at fair value	1,265	1,124
Long-term debt, portion measured at fair value	2,213	2,888
Other assets
Assets:
Short-term investments, restricted cash	343	317
Short-term investments
Assets:
Short-term investments, restricted cash	$ 142	$ 58

Consolidated Balance Sheets (Parenthetical - equity) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
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	1,040,062,063	1,007,626,835

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Premiums	$ 30,614	$ 31,374	$ 34,393
Policy fees	2,791	2,935	2,732
Net investment income	12,476	14,179	14,065
Net realized capital losses:
Total other-than-temporary impairments on available for sale securities	(190)	(196)	(458)
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss)	(61)	(31)	(29)
Net other-than-temporary impairments on available for sale securities recognized in net income (loss)	(251)	(227)	(487)
Other realized capital gains (losses)	121	(1,153)	(1,457)
Total net realized capital gains (losses)	(130)	(1,380)	(1,944)
Other income	1,638	2,412	3,121
Total revenues	47,389	49,520	52,367
Benefits, losses and expenses:
Policyholder benefits and losses incurred	27,412	29,972	32,437
Interest credited to policyholder account balances	3,754	3,592	3,705
Amortization of deferred policy acquisition costs	5,386	4,288	4,521
General operating and other expenses	9,302	9,107	10,989
Interest expense	1,309	1,168	1,260
(Gain) loss on extinguishment of debt	7	(5)	74
Net gain on sale of divested businesses	(38)	(68)	(545)
Total benefits, losses and expenses	47,132	48,054	52,441
Income (loss) from continuing operations before income tax expense	257	1,466	(74)
Income tax expense:
Current	336	636	576
Deferred	(182)	6,890	(391)
Income tax expense	154	7,526	185
Income (loss) from continuing operations	103	(6,060)	(259)
Income (loss) from discontinued operations, net of income tax expense	(42)	4	(90)
Net income (loss)	61	(6,056)	(349)
Less:
Net income from continuing operations attributable to noncontrolling interests	67	28	500
Net loss attributable to AIG	$ (6)	$ (6,084)	$ (849)
Basic:
Income (loss) from continuing operations	$ 0.04	$ (6.54)	$ (0.7)
Loss from discontinued operations	(0.05)	0	(0.08)
Net loss attributable to AIG	(0.01)	(6.54)	(0.78)
Diluted:
Income (loss) from continuing operations	0.04	(6.54)	(0.7)
Loss from discontinued operations	(0.05)	0	(0.08)
Net loss attributable to AIG	$ (0.01)	$ (6.54)	$ (0.78)
Weighted average shares outstanding:
Basic	898,405,537	930,561,286	1,091,085,131
Diluted	910,141,242	930,561,286	1,091,085,131

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 61	$ (6,056)	$ (349)
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	(1,000)	367	(270)
Change in unrealized appreciation (depreciation) of all other investments	(4,975)	1,288	839
Change in foreign currency translation adjustments	(349)	539	250
Change in retirement plan liabilities adjustment	28	41	(126)
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	3	0	0
Other comprehensive income (loss)	(6,293)	2,235	693
Comprehensive income (loss)	(6,232)	(3,821)	344
Comprehensive income attributable to noncontrolling interests	76	28	500
Comprehensive loss attributable to AIG	$ (6,308)	$ (3,849)	$ (156)

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 (Loss)	Non redeemable Non-controlling Interests
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 other 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 other 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)
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
Increase (Decrease) in Stockholders' Equity
Cumulative effect of change in accounting principle, net of tax	(8)	(8)				568	(576)
Common stock issued under stock plans	(155)	(155)		189	(344)
Purchase of common stock	(1,739)	(1,739)		(1,739)
Net income (loss) attributable to AIG or other noncontrolling interests	61	(6)				(6)		67
Dividends	(1,138)	(1,138)				(1,138)
Other comprehensive income (loss)	(6,293)	(6,302)					(6,302)	9
Current and deferred income taxes	0	0			0	0
Net increase due to acquisitions and consolidations	63							63
Contributions from noncontrolling interests	373							373
Distributions to noncontrolling interests	(96)							(96)
Other	533	538		1	534	3		(5)
Balance at Dec. 31, 2018	$ 57,309	$ 56,361	$ 4,766	$ (49,144)	$ 81,268	$ 20,884	$ (1,413)	$ 948

Consolidated Statements of Cash Flows $ in Millions	12 Months Ended
Consolidated Statements of Cash Flows $ in Millions	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Cash flows from operating activities:
Net income (loss)	$ 61	$ (6,056)	$ (349)
(Income) loss from discontinued operations	42	(4)	90
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gains) losses on sales of securities available for sale and other assets	98	(431)	(2,033)
Net gain on sale of divested businesses	(38)	(68)	(545)
(Gains) losses on extinguishment of debt	7	(5)	74
Unrealized losses in earnings - net	443	79	1,465
Equity in loss from equity method investments, net of dividends or distributions	363	350	1,053
Depreciation and other amortization	5,362	3,874	4,090
Impairments of assets	425	685	1,116
Changes in operating assets and liabilities:
Insurance reserves	1,065	2,637	5,325
Premiums and other receivables and payables - net	887	410	536
Reinsurance assets and funds held under reinsurance treaties	(3,289)	(10,870)	(1,804)
Capitalization of deferred policy acquisition costs	(5,832)	(4,819)	(5,216)
Current and deferred income taxes - net	0	6,981	(308)
Other, net	467	(581)	8
Total adjustments	(42)	(1,758)	3,761
Net cash provided by (used in) operating activities	61	(7,818)	3,502
Sales or distribution of:
Available for sale securities	25,143	31,082	30,103
Other securities	3,755	3,792	4,164
Other invested assets	4,365	6,913	8,447
Divested businesses, net	10	792	2,809
Maturities of fixed maturity securities available for sale	24,777	29,011	25,749
Principal payments received on and sales of mortgage and other loans receivable	4,272	5,742	6,074
Purchases of:
Available for sale securities	(44,109)	(49,856)	(54,978)
Other securities	(1,318)	(1,147)	(935)
Other invested assets	(2,839)	(2,874)	(3,421)
Mortgage and other loans receivable	(10,286)	(9,369)	(10,651)
Acquisition of businesses, net of cash and restricted cash acquired	(5,717)	0	0
Net change in short-term investments	1,524	2,098	(3,089)
Other, net	200	(2,143)	(1,020)
Net cash provided by (used in) investing activities	(223)	14,041	3,252
Proceeds from (payments for)
Policyholder contract deposits	24,178	17,908	18,100
Policyholder contract withdrawals	(17,999)	(15,785)	(14,041)
Issuance of long-term debt	4,734	3,356	5,954
Repayments of long-term debt	(3,672)	(3,698)	(4,082)
Purchase of common stock	(1,739)	(6,275)	(11,460)
Dividends paid	(1,138)	(1,172)	(1,372)
Other, net	(3,570)	(31)	68
Net cash provided by (used in) financing activities	794	(5,697)	(6,833)
Effect of exchange rate changes on cash and restricted cash	(11)	(29)	55
Net increase (decrease) in cash and restricted cash	621	497	(24)
Cash and restricted cash at beginning of year	2,737	2,107	2,238
Change in cash of businesses held for sale	0	133	(107)
Cash and restricted cash at end of year	$ 3,358	$ 2,737	$ 2,107

Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:
Cash	$ 2,873	$ 2,362	$ 1,868
Restricted cash included in Short-term investments	142	58	46
Restricted cash included in Other assets	343	317	193
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	3,358	2,737	2,107
Cash paid during the period for:
Interest	1,312	1,282	1,331
Taxes	154	544	493
Non-cash investing/financing activities:
Interest credited to policyholder contract deposits included in financing activities	3,392	3,309	3,430
Other assets
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:
Restricted cash included in Short-term investments	343	317
Short-term investments
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:
Restricted cash included in Short-term investments	142	58
United Guaranty Corporation
Non-cash investing/financing activities:
Non-cash consideration received from sale	$ 0	$ 0	$ 1,101

BASIS OF PRESENTATION	12 Months Ended
BASIS OF PRESENTATION	Dec. 31, 2018
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). On December 3, 2018, AIG’s Common Stock was voluntarily delisted from 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 fiscal-period ending November 30. 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. Acquisition of Businesses Validus On July 18, 2018, we completed the purchase of Validus Holdings, Ltd. (Validus), a leading provider of reinsurance, primary insurance, and asset management services, for $5.5 billion in cash. The results of Validus following the date of the acquisition are included in our General Insurance segment starting in the third quarter of 2018. Our North America results include the results of Validus Reinsurance, Ltd. and Western World Insurance Group, Inc., while our International results include the results of Talbot Holdings Ltd. For additional information relating to the acquisition of Validus, see Note 4. Glatfelter On November 6, 2018 AIG completed the purchase of Glatfelter Insurance Group, a full-service broker and insurance company providing services for specialty programs and retail operations. Ellipse On December 31, 2018, AIG Life Ltd., a U.K. AIG Life and Retirement company, completed the acquisition of Ellipse, a specialist provider of group life risk protection in the U.K. Sales of Businesses Sale of Certain Insurance Subsidiary Operations to Fairfax On October 18, 2016, we entered into an agreement to sell certain insurance operations to Fairfax Financial Holdings Limited (Fairfax). The agreement included the sale of our subsidiary operations in Argentina, Chile, Colombia, Uruguay, Venezuela and Turkey. Fairfax acquired 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. Substantially all of the operations and renewal rights that we agreed to sell to 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. In the first quarter of 2018, we sold our remaining interest in Arch, which we received as part of the consideration for selling United Guaranty to Arch in 2016. 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, which we subsequently sold on May 11, 2018 to White Mountains Catskill Holdings, Inc. We will continue to provide underwriting capacity to NSM. Non-controlling interest in Fortitude On November 13, 2018, we completed the sale of a 19.9 percent ownership interest in Fortitude Holdings to TCG, an affiliate of The Carlyle Group L.P. (Carlyle). Fortitude Holdings owns 100 percent of the outstanding common shares of Fortitude Re and AIG has an 80.1 percent ownership interest in Fortitude Holdings. We received $381 million in cash and will receive up to $95 million of deferred compensation which is subject to certain purchase price adjustments. To the extent we do not receive all or a portion of the planned distributions within 18 months of the Fortitude Re Closing, TCG will pay us up to an additional $100 million. In connection with the sale, we agreed to certain investment commitment targets into various Carlyle strategies and to certain minimum investment management fee payments within thirty-six months following the closing. We also will be required to pay a proportionate amount of an agreed make-whole fee to the extent we fail to satisfy such investment commitment targets. 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; valuation of embedded derivatives for fixed index annuity and life 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 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, 2018, our results include out of period adjustments relating to prior periods that decreased net income attributable to AIG by $77 million, and decreased Income from continuing operations before income taxes by $98 million. The out of period adjustments are primarily related to decreases in deferred policy acquisition costs and increases in policyholder contract deposits. We determined that these adjustments were not material to the current year or to any previously reported annual financial statements. Had these adjustments been recorded in their appropriate periods, Net income attributable to AIG for the years ended December 31, 2017, and December 31, 2016 would have increased by $95 million, and by $117 million, respectively. 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 and increased Loss from continuing operations before income taxes by $57 million. The out of period adjustments are primarily related to income tax liabilities and ceded loss adjustment expenses.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2018

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 and Other Intangible Assets

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.

Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences that arise regarding such estimates are recorded in the periods in which they are determined.

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 $11 million, $27 million and $44 million from legacy crisis and other matters in 2018, 2017 and 2016, 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 $216 million and $236 million at December 31, 2018 and 2017, 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 $752 million and $738 million at December 31, 2018 and 2017, 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 $156 million, $94 million and $77 million for the years ended December 31, 2018, 2017 and 2016, 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.

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 2018

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 adopted the standard using the modified retrospective approach on its required effective date of January 1, 2018. Our analysis of revenues indicated that substantially all of our revenues were from sources excluded from the scope of the standard. For those revenue sources within the scope of the standard, there were no material changes in the timing or measurement of revenues based upon the guidance. As substantially all of our revenue sources were excluded from the scope of the standard, the adoption of the standard did not have a material impact 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 requires 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 are 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 adopted the standard on its effective date of January 1, 2018 using the modified retrospective approach. The impact of the adoption is primarily related to the reclassification of unrealized gains of equity securities resulting in a net decrease to beginning Accumulated other comprehensive income and a corresponding net increase to beginning Retained earnings of $824 million.

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 adopted the standard retrospectively on its effective date of January 1, 2018. The standard addresses presentation in the statement of cash flows only and did not have a material impact 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 requires 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 adopted the standard on its effective date of January 1, 2018 using a modified retrospective approach. The adoption of this standard did 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 are 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 adopted the standard retrospectively on its effective date of January 1, 2018. The standard addresses presentation of restricted cash in the Consolidated Statement of Cash Flows only and had no impact on our reported consolidated financial condition, results of operations or required disclosures.

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 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 adopted this standard on its effective date of January 1, 2018 using the modified retrospective approach. Based on our evaluation, the adoption of this standard did not 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 adopted 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 did not 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 prospectively adopted this standard on its effective date of January 1, 2018 and the standard did not have a material impact on our reported consolidated financial condition, results of operations, cash flows or 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 impact 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 adopted the standard effective January 1, 2018. The impact of the adoption of the standard resulted in an increase to beginning Accumulated other comprehensive income and a corresponding decrease to beginning Retained earnings of $248 million. For more information on the adoption of the Tax Act, see Note 23.

Future Application of Accounting Standards

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. Lessor accounting remained largely the same, with the exception of certain specified changes. The standard is effective for annual periods beginning after December 15, 2018, and interim periods within those years, using a modified retrospective approach, and provides for certain practical expedients in transition. During 2018, the FASB issued several amendments and targeted improvements to ease with the application of the standard, including the addition of a transition approach that gives the Company the option of applying the standard at either the beginning of the earliest comparative period presented or the beginning of the period of adoption.

We plan to adopt the standard on its effective date of January 1, 2019, by recognizing a cumulative-effect adjustment to the opening balance of retained earnings for leases existing at the date of adoption. We will also elect certain practical expedients that allow us not to reassess existing leases under the new guidance. Based on our analysis, the vast majority of the Company’s lease obligation pertained to real estate utilized in the operation of our businesses. Consequently, the primary impact of adoption will result in the recognition of a right of use asset and a lease liability for operating leases pertaining to our real estate portfolio that are expected to represent less than one percent of the Company’s Total Assets and Total Liabilities, respectively. We do not expect the standard to have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. See Note 16, Contingencies, Commitments and Guarantees for additional information.

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.

We plan to adopt the standard on its effective date of January 1, 2020. 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.

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.

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 of 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.

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 will adopt the standard on its effective date. The standard’s impact is not material to our reported consolidated financial condition, results of operations, cash flows and required disclosures.

Targeted Improvements to the Accounting for Long-Duration Contracts

In August 2018, the FASB issued an accounting standard update with the objective of making targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The standard prescribes significant and comprehensive changes to recognition, measurement, presentation and disclosure as summarized below:

Requires the review and if necessary update of future policy benefit assumptions at least annually for traditional and limited pay long duration contracts, with the recognition and separate presentation of any resulting re-measurement gain or loss (except for discount rate changes as noted below) in the income statement.
Requires the discount rate assumption to be updated at the end of each reporting period using an upper medium grade (low-credit risk) fixed income instrument yield that maximizes the use of observable market inputs and recognizes the impact of changes to discount rates in other comprehensive income.
Simplifies the amortization of deferred acquisition costs (DAC) to a constant level basis over the expected term of the related contracts with adjustments for unexpected terminations, but no longer requires an impairment test.
Requires the measurement of all market risk benefits associated with deposit (or account balance) contracts at fair value through the income statement with the exception of instrument-specific credit risk changes, which will be recognized in other comprehensive income.
Increased disclosures of disaggregated roll-forwards of policy benefits, account balances, market risk benefits, separate account liabilities and information about significant inputs, judgments and methods used in measurement and changes thereto and impact of those changes.

We plan to adopt the standard on its effective date of January 1, 2021. We are evaluating the method of adoption and impact of the standard on our reported consolidated financial condition, results of operations, cash flows and required disclosures. The adoption of this standard is expected to have a significant impact on our consolidated financial condition, results of operations, cash flows and required disclosures, as well as systems, processes and controls.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2018

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, 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. This also includes the results of Validus Reinsurance, Ltd. and Western World Insurance Group, Inc. as of the acquisition date.
International — consists of insurance businesses in Japan, the United Kingdom, Europe, Asia Pacific, Latin America, Puerto Rico, Australia, the Middle East and Africa. This also includes the results of Talbot Holdings, Ltd. as of the acquisition date.

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

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 subsidiary focused on delivering commercial insurance 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

Legacy Portfolio represents exited or discontinued product lines, policy forms or distribution channels. Effective February 2018, our Bermuda domiciled composite reinsurer, Fortitude Reinsurance Company Ltd. (Fortitude Re), formerly known as DSA Reinsurance Company, Ltd., is included in our Legacy Portfolio.

Legacy Life and Retirement Run-Off Lines — Reserves consist of certain structured settlements, pension risk transfer annuities and single premium immediate annuities written prior to April 2012. Also includes exposures to whole life, long-term care and exited accident & health product lines.
Legacy General Insurance Run-Off Lines — Reserves consist of excess workers’ compensation, environmental exposures and exposures to other products within General Insurance that are no longer actively marketed. Also includes the remaining reserves in Eaglestone Reinsurance Company (Eaglestone).
Legacy Investments — Includes investment classes that we have placed into run-off including holdings in direct investments as well as investments in global capital markets and global real estate.

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)
2018
General Insurance
North America	$	14,619	$	2,305	$	-	$	1,859	$	(8)
International		15,554		363		-		2,737		(461)
Total General Insurance		30,173		2,668		-		4,596		(469)
Life and Retirement
Individual Retirement		5,338		3,827		82		630		1,681
Group Retirement		2,891		2,172		42		95		933
Life Insurance		4,007		1,137		25		(50)		330
Institutional Markets		1,900		786		13		5		246
Total Life and Retirement		14,136		7,922		162		680		3,190
Other Operations		636		45		1,066		10		(1,584)
Legacy Portfolio		3,039		2,325		30		105		213
AIG Consolidation and elimination		(171)		(232)		85		-		59
Total AIG Consolidated adjusted revenues and adjusted
pre-tax income	$	47,813	$	12,728	$	1,343	$	5,391	$	1,409
Reconciling Items from adjusted pre-tax income to
pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed
living benefits		(128)		(128)		-		-		(154)
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		-		-		(5)		6
Other income (expense) - net		(53)		-		-		-		-
Loss on extinguishment of debt		-		-		-		-		(7)
Net realized capital losses^*		(254)		(124)		(34)		-		(193)
Income from divested businesses		-		-		-		-		38
Non-operating litigation reserves and settlements		11		-		-		-		(19)
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		(675)
Net loss reserve discount benefit (charge)		-		-		-		-		371
Pension expense related to a one-time lump sum payment to
former employees		-		-		-		-		-
Integration and transaction costs associated with acquired businesses		-		-		-		-		(124)
Restructuring and other costs		-		-		-		-		(395)
Revenues and Pre-tax income (loss)	$	47,389	$	12,476	$	1,309	$	5,386	$	257
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:
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 (loss):
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)
Income 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 (loss)	$	52,367	$	14,065	$	1,260	$	4,521	$	(74)

* Includes all net realized capital gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication.

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)		2018		2017		2018		2017
General Insurance companies	$	110,007	$	114,841	$	171	$	239
Life and Retirement companies		247,219		289,457		94		88
Other		140,428		105,425		103		156
AIG Consolidation and Elimination		(5,670)		(11,422)		-		-
Total Assets	$	491,984	$	498,301	$	368	$	483

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)		2018		2017		2016		2018		2017		2016
North America	$	31,003	$	34,149	$	36,871	$	1,479	$	1,630	$	1,326
International		16,386		15,371		15,496		693		892		1,334
Consolidated	$	47,389	$	49,520	$	52,367	$	2,172	$	2,522	$	2,660

* 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.

BUSINESS COMBINATION

12 Months Ended

Dec. 31, 2018

BUSINESS COMBINATION

BUSINESS COMBINATION

4. Business Combination

On July 18, 2018, we completed the purchase of a 100 percent voting interest in Validus, a leading provider of reinsurance, primary insurance, and asset management services, for $5.5 billion in cash. This transaction was made with the intent to strengthen our global General Insurance business by expanding our current product portfolio through additional distribution channels and advancing the tools available to enhance underwriting. The impact of the acquisition on Total revenues, Net income (loss), and Net income (loss) attributable to AIG was $1.4 billion, $(206) million, and $(206) million, respectively, for 2018. Integration and transaction costs associated with the acquisition of Validus were $101 million for 2018 and are included in General operating and other expenses in our Consolidated Statement of Income.

As part of the purchase, we guaranteed 6,000 issued and outstanding 5.875% Non-Cumulative Preference Shares, Series A (the Series A Preference Shares) and 10,000 issued and outstanding 5.800% Non-Cumulative Preference Shares, Series B (together with the Series A Preference Shares, the Preference Shares). On October 30, 2018, Validus redeemed all of its outstanding Preference Shares at a redemption price of $26,000 per Preference Share for approximately $416 million in the aggregate.

The purchase was accounted for under the acquisition method. Accordingly, the total purchase price was allocated to the estimated fair values of assets acquired and liabilities assumed. This allocation resulted in the purchase price exceeding the fair value of net assets acquired, which results in a difference recorded as goodwill. Goodwill generated from the acquisition is attributable to expected synergies from future growth and potential future monetization opportunities. Goodwill related to the purchase of Validus assigned to our General Insurance operating segments was $1.8 billion for North America and $157 million for International.

In addition, Validus participates in the market for insurance-linked securities (ILS) primarily through AlphaCat Managers, Ltd (AlphaCat Manager). AlphaCat Manager is an asset manager primarily for third-party investors and in connection with the issuance of ILS invests in AlphaCat funds which are considered variable interest entities (VIEs). ILS are financial instruments for which the values are determined based on insurance losses caused primarily by natural catastrophes such as major earthquakes and hurricanes. We report the investment in AlphaCat funds, which is approximately $116 million at December 31, 2018, in Other Invested Assets in the Consolidated Balance Sheet.

The following table summarizes the estimated provisional fair values of major classes of identifiable assets acquired and liabilities assumed as of July 18, 2018:

(in millions)		July 18, 2018
Identifiable net assets:
Investments	$	6,613
Cash		330
Premiums and other receivables		2,130
Reinsurance assets		1,692
Value of business acquired*		298
Deferred income taxes		63
Other assets, including restricted cash of $93		1,008
Liability for unpaid claims and claims adjustment expense		(4,138)
Unearned premiums		(2,083)
Long-term debt		(1,106)
Other liabilities		(913)
Preference shares		(416)
Total identifiable net assets acquired		3,478
Cash consideration paid		5,475
Goodwill recognized from acquisition	$	1,997

* Reported in Deferred policy acquisition costs in the Consolidated Balance Sheet.

The following unaudited summarized pro forma consolidated income statement information assumes that the acquisition of Validus occurred as of January 1, 2017. The pro forma amounts are for comparative purposes only, may not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the applicable period and may not be indicative of the results that will be attained in the future.

Years Ended December 31,
(in millions)		2018*		2017*
Total revenues	$	48,588	$	52,009
Net income (loss)		16		(6,104)
Net income (loss) attributable to AIG		(51)		(6,132)

Income (loss) per common share attributable to AIG:
Basic:
Net income (loss) attributable to AIG		(0.06)		(6.59)
Diluted:
Net income (loss) attributable to AIG		(0.06)		(6.59)

* Pro forma adjustments were made to Validus external reporting results prior to the acquisition date for the deconsolidation of certain asset management entities consistent with AIG’s post acquisition accounting, which had no impact on Net income attributable to Validus.

The following table presents details of the identified intangible assets acquired:

			Estimated Weighted
(in millions, except years)		Fair Value	Average Useful Life
Definite lived intangibles
Value of distribution network acquired^(a)(b)	$	444	15 years
Value of business acquired^(c)		298	2 years
Indefinite lived intangibles^(a)
Syndicate capacity		193
Other		75
Total	$	1,010

(a) Reported in Other assets in the Consolidated Balance Sheet.

(b) Amortization is reported in General operating and other expenses in the Consolidated Statement of Income (Loss).

(c) Reported in Deferred policy acquisition costs in the Consolidated Balance Sheet and Amortization of deferred policy acquisition costs in the Consolidated Statement of Income (Loss).

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2018

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 policyholder behavior 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 assumptions 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, 2018							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(a)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	53	$	3,207	$	-	$	-	$	-	$	3,260
Obligations of states, municipalities and political subdivisions		-		14,001		2,000		-		-		16,001
Non-U.S. governments		69		14,445		11		-		-		14,525
Corporate debt		-		129,836		864		-		-		130,700
RMBS		-		20,178		14,199		-		-		34,377
CMBS		-		11,784		917		-		-		12,701
CDO/ABS		-		8,725		9,102		-		-		17,827
Total bonds available for sale		122		202,176		27,093		-		-		229,391
Other bond securities:
U.S. government and government sponsored entities		11		2,654		-		-		-		2,665
Non-U.S. governments		-		45		-		-		-		45
Corporate debt		-		1,671		-		-		-		1,671
RMBS		-		424		1,290		-		-		1,714
CMBS		-		311		77		-		-		388
CDO/ABS		-		454		4,478		-		-		4,932
Total other bond securities		11		5,559		5,845		-		-		11,415
Equity securities ^(b)		1,213		13		27		-		-		1,253
Mortgage and other loans receivable		-		-		-		-		-		-
Other invested assets^(c)		-		341		587		-		-		928
Derivative assets:
Interest rate contracts		2		2,888		-		-		-		2,890
Foreign exchange contracts		-		1,159		5		-		-		1,164
Equity contracts		133		190		75		-		-		398
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		15		-		-		15
Counterparty netting and cash collateral		-		-		-		(1,713)		(1,840)		(3,553)
Total derivative assets		135		4,237		96		(1,713)		(1,840)		915
Short-term investments		2,416		599		-		-		-		3,015
Separate account assets		77,202		4,645		-		-		-		81,847
Other assets		-		-		58		-		-		58
Total	$	81,099	$	217,570	$	33,706	$	(1,713)	$	(1,840)	$	328,822
Liabilities:
Policyholder contract deposits	$	-	$	-	$	4,116	$	-	$	-	$	4,116
Derivative liabilities:
Interest rate contracts		4		2,004		15		-		-		2,023
Foreign exchange contracts		-		858		-		-		-		858
Equity contracts		12		3		-		-		-		15
Credit contracts		-		8		228		-		-		236
Other contracts		-		-		6		-		-		6
Counterparty netting and cash collateral		-		-		-		(1,713)		(187)		(1,900)
Total derivative liabilities		16		2,873		249		(1,713)		(187)		1,238
Long-term debt		-		2,213		-		-		-		2,213
Other liabilities		16		11		-		-		-		27
Total	$	32	$	5,097	$	4,365	$	(1,713)	$	(187)	$	7,594

December 31, 2017							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(a)		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
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^(c)		-		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
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

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

(b) As a result of the adoption of the Recognition and Measurement of Financial Assets and Financial Liabilities standard on January 1, 2018 (Financial Instruments Recognition and Measurement Standard), equity securities are no longer classified and accounted for as available for sale securities.

(c) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $5.0 billion and $6.0 billion as of December 31, 2018 and December 31, 2017, respectively.

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 year ended December 31, 2017, we transferred $392 million of securities issued by non-U.S. government entities from Level 1 to Level 2, because they are no longer considered actively traded. We had no material transfers of securities issued by non-U.S. government entities from Level 1 to Level 2 during the year ended December 31, 2018. For similar reasons, during the years ended December 31, 2018 and 2017, we transferred $806 million and $113 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, 2018. There were no material transfers from Level 2 to Level 1 during the years ended December 31, 2018 and 2017.

Changes in Level 3 Recurring Fair Value Measurements

The following tables present changes during the years ended December 31, 2018 and 2017 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, 2018 and 2017:

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Acquisitions		of Year		at End of Year
December 31, 2018
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,404	$	-	$	(152)	$	(66)	$	54	$	(240)	$	-	$	2,000	$	-
Non-U.S. governments		8		(9)		5		(1)		13		(5)		-		11		-
Corporate debt		1,173		(74)		(2)		(207)		780		(806)		-		864		-
RMBS		16,136		838		(300)		(2,424)		8		(66)		7		14,199		-
CMBS		624		23		(29)		207		111		(20)		1		917		-
CDO/ABS		8,651		40		(42)		(371)		1,783		(1,123)		164		9,102		-
Total bonds available
for sale		28,996		818		(520)		(2,862)		2,749		(2,260)		172		27,093		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		-
RMBS		1,464		56		-		(280)		50		-		-		1,290		(10)
CMBS		74		(2)		-		(5)		10		-		-		77		(5)
CDO/ABS		4,956		428		-		(905)		-		(9)		8		4,478		208
Total other bond securities		6,512		482		-		(1,208)		60		(9)		8		5,845		193
Equity securities^(a)		-		(2)		-		24		5		-		-		27		-
Mortgage and other loans
receivable		5		-		-		(5)		-		-		-		-		-
Other invested assets		250		47		2		288		-		-		-		587		71
Other assets		-		-		-		58		-		-		-		58		-
Total	$	35,763	$	1,345	$	(518)	$	(3,705)	$	2,814	$	(2,269)	$	180	$	33,610	$	264
				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Acquisitions		of Year		at End of Year
Liabilities:
Policyholder contract deposits	$	4,136	$	(334)	$	-	$	314	$	-	$	-	$	-	$	4,116	$	495
Derivative liabilities, net:
Interest rate contracts		22		(1)		-		(6)		-		-		-		15		1
Foreign exchange
contracts		-		(10)		-		5		-		-		-		(5)		3
Equity contracts		(82)		(22)		-		27		-		2		-		(75)		(35)
Credit contracts		262		(31)		-		(4)		-		-		-		227		31
Other contracts		(15)		(64)		-		70		-		-		-		(9)		62
Total derivative
liabilities, net^(b)		187		(128)		-		92		-		2		-		153		62
Long-term debt^(c)		-		-		-		-		-		-		-		-		-
Total	$	4,323	$	(462)	$	-	$	406	$	-	$	2	$	-	$	4,269	$	557

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		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,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		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 derivatives
liabilities, net^(b)		309		(184)		-		65		(3)		-		187		181
Long-term debt^(c)		71		16		-		(87)		-		-		-		-
Total	$	3,413	$	639	$	-	$	274	$	(3)	$	-	$	4,323	$	(318)

(a) As a result of the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, equity securities are no longer classified and accounted for as available for sale securities.

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

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, 2018
Assets:
Bonds available for sale	$	987	$	(165)	$	(4)	$	818
Other bond securities		92		(3)		393		482
Equity securities		(2)		-		-		(2)
Other invested assets		57		-		(10)		47
December 31, 2017
Assets:
Bonds available for sale	$	1,127	$	(49)	$	2	$	1,080
Other bond securities		308		-		731		1,039
Other invested assets		9		6		(1)		14
		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
December 31, 2018
Liabilities:
Policyholder contract deposits		-		(334)		-		(334)
Derivative liabilities, net		-		5		(133)		(128)
Long-term debt		-		-		-		-
December 31, 2017
Liabilities:
Policyholder contract deposits		-		807		-		807
Derivative liabilities, net		-		(17)		(167)		(184)
Long-term debt		-		-		16		16

The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above for years ended December 31, 2018 and 2017 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, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	105	$	(8)	$	(163)	$	(66)
Non-U.S. governments		5		-		(6)		(1)
Corporate debt		280		(216)		(271)		(207)
RMBS		715		(20)		(3,119)		(2,424)
CMBS		277		(2)		(68)		207
CDO/ABS		1,865		(1,073)		(1,163)		(371)
Total bonds available for sale		3,247		(1,319)		(4,790)		(2,862)
Other bond securities:
Corporate debt		-		-		(18)		(18)
RMBS		1		(34)		(247)		(280)
CMBS		-		-		(5)		(5)
CDO/ABS		90		(4)		(991)		(905)
Total other bond securities		91		(38)		(1,261)		(1,208)
Equity securities		49		-		(25)		24
Mortgage and other loans receivable		-		(5)		-		(5)
Other invested assets		350		(29)		(33)		288
Other assets		-		-		58		58
Total assets	$	3,737	$	(1,391)	$	(6,051)	$	(3,705)
Liabilities:
Policyholder contract deposits	$	-	$	533	$	(219)	$	314
Derivative liabilities, net		(52)		80		64		92
Long-term debt^(b)		-		-		-		-
Total liabilities	$	(52)	$	613	$	(155)	$	406
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

(a) There were no issuances during the years ended December 31, 2018 and 2017.

(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, 2018 and 2017 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 $33 million of net gains and $64 million of net losses related to assets and liabilities transferred into Level 3 during 2018 and 2017, respectively, and includes $18 million and $36 million of net losses related to assets and liabilities transferred out of Level 3 during 2018 and 2017, respectively.

Transfers of Level 3 Assets

During the years ended December 31, 2018 and 2017, 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, 2018 and 2017, 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, 2018 and 2017.

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)		2018	Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states,
municipalities and
political subdivisions	$	1,473	Discounted cash flow	Yield	3.91% - 5.00% (4.46%)

Corporate debt		445	Discounted cash flow	Yield	4.35% - 5.99% (5.17%)

RMBS^(a)		13,608	Discounted cash flow	Constant prepayment rate	4.58% - 14.00% (9.29%)
				Loss severity	39.66% - 74.40% (57.03%)
				Constant default rate	2.46% - 7.39% (4.92%)
				Yield	3.31% - 5.50% (4.40%)

CDO/ABS^(a)		5,461	Discounted cash flow	Yield	3.65% - 5.10% (4.37%)

CMBS		447	Discounted cash flow	Yield	3.29% - 6.07% (4.68%)

Liabilities:

Embedded derivatives
within Policyholder
contract deposits:

Guaranteed minimum
withdrawal benefits
(GMWB)		1,943	Discounted cash flow	Equity volatility	6.05% - 47.65%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	20.00% - 180.00%
				Mortality multiplier^(c)	40.00% - 153.00%
				Utilization	90.00% - 100.00%
				Equity / interest rate correlation	20.00% - 40.00%

Index Annuities		1,778	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier^(c)	42.00% - 162.00%
				Option Budget	1.00% - 3.00%

Indexed Life		374	Discounted cash flow	Base lapse rate	0.00% - 13.00%
				Mortality rate	0.00% - 100.00%


		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%

(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, 2018				December 31, 2017
			Fair Value				Fair Value
			Using NAV				Using NAV
			Per Share (or		Unfunded		Per Share (or		Unfunded
(in millions)	Investment Category Includes		its equivalent)		Commitments		its equivalent)		Commitments
Investment Category^*
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	847	$	1,327	$	1,243	$	706

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		190		83		210		187

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		126		127		134		73

Growth Equity	Funds that make investments in established companies for the purpose of growing their businesses		362		28		215		73

Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		211		75		171		135

Other	Includes distressed funds that invest in securities of companies that are in default or under bankruptcy protection, as well as funds that have multi-strategy, and other strategies		514		307		155		53
Total private equity funds			2,250		1,947		2,128		1,227
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		787		-		1,128		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		863		-		1,233		-

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		887		-		1,011		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		21		8		266		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		158		1		231		4
Total hedge funds			2,716		9		3,869		12
Total		$	4,966	$	1,956	$	5,997	$	1,239

* Beginning in the third quarter of 2018, Growth Equity and Mezzanine private equity fund categories are shown separately. Prior periods were revised to conform to the current period presentation.

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, 2018, assuming average original expected lives of 10 years for the funds, 14 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, 43 percent between four and six years and 43 percent between seven and 10 years.

The hedge fund investments included above, which are carried at fair value, are generally redeemable monthly (35 percent), quarterly (32 percent), semi-annually (9 percent) and annually (24 percent), with redemption notices ranging from one day to 180 days. At December 31, 2018, investments representing approximately 51 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 2019.

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)		2018		2017		2016
Assets:
Bond and equity securities	$	343	$	1,646	$	447
Alternative investments^(a)		213		509		28
Other, including Short-term investments		-		1		-
Liabilities:
Long-term debt^(b)		(1)		(49)		(9)
Other liabilities		-		(2)		-
Total gain	$	555	$	2,105	$	466

(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 and 2016, we recognized gains of $4 million and $22 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.

As a result of the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, we are required to record unrealized gains and losses attributable to the observable effect of changes in credit spreads on our liabilities for which the fair value option was elected in Other Comprehensive Income. An unrealized gain of $4 million was recognized in Other Comprehensive Income for year ended December 31, 2018.

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, 2018						December 31, 2017
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	-	$	-	$	-	$	5	$	5	$	-
Liabilities:
Long-term debt^*	$	2,213	$	1,653	$	560	$	2,888	$	2,280	$	608

* 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, 2018 or 2017.

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, 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 for Other investments for the period ended December 31, 2018 primarily relate to real estate investments as well as commercial mortgage loans, the fair value determination for which is discussed above under the heading Valuation Methodologies of Financial Instruments Measured at Fair Value.
Impairments of Investments in Life Settlements were 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. We sold the remaining portion of our life settlements portfolio in 2017.

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^(a)
		Non-Recurring Basis							December 31,
(in millions)		Level 1		Level 2		Level 3		Total		2018		2017		2016
December 31, 2018
Other investments	$	-	$	-	$	315	$	315	$	97	$	77	$	76
Investments in life settlements		-		-		-		-		-		360		397
Other assets		-		-		11		11		64		157		19
Total	$	-	$	-	$	326	$	326	$	161	$	594	$	492
December 31, 2017
Other investments	$	-	$	-	$	55	$	55
Investments in life settlements		-		-		-		-
Other assets		-		-		-		-
Total	$	-	$	-	$	55	$	55

(a) Impairments in 2017 included $35 million related to Other assets of $179 million that were sold during the three-month period ended June 30, 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 and 2018 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, 2018
Assets:
Mortgage and other loans receivable	$	-	$	105	$	43,522	$	43,627	$	43,135
Other invested assets		-		731		6		737		737
Short-term investments		-		6,659		-		6,659		6,659
Cash		2,873		-		-		2,873		2,873
Other assets		308		35		-		343		343
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		339		121,035		121,374		120,602
Other liabilities		-		1,154		-		1,154		1,154
Long-term debt		-		22,822		8,775		31,597		32,327
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

- 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, 2018

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, 2018 or 2017.

On January 1, 2018, AIG adopted ASU 2016-01, the Financial Instruments Recognition and Measurement standard for equity securities which eliminates the available for sale classification and treatment for equity securities. As a result, equity securities that do not follow the equity method of accounting, are measured at fair value with changes in fair value recognized in earnings.

Prior to the adoption of this standard, unrealized gains and losses from available for sale investments in fixed maturity and equity securities carried at fair value were 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^(a):

										Other-Than-
		Amortized		Gross		Gross				Temporary
		Cost or		Unrealized		Unrealized		Fair		Impairments
(in millions)		Cost		Gains		Losses		Value		in AOCI^(b)
December 31, 2018
Bonds available for sale:
U.S. government and government sponsored entities	$	3,170	$	132	$	(42)	$	3,260	$	-
Obligations of states, municipalities and political subdivisions		15,421		701		(121)		16,001		4
Non-U.S. governments		14,376		451		(302)		14,525		-
Corporate debt		130,436		3,911		(3,647)		130,700		4
Mortgage-backed, asset-backed and collateralized:
RMBS		31,940		2,754		(317)		34,377		1,155
CMBS		12,673		242		(214)		12,701		31
CDO/ABS		17,764		228		(165)		17,827		17
Total mortgage-backed, asset-backed and collateralized		62,377		3,224		(696)		64,905		1,203
Total bonds available for sale^(c)	$	225,780	$	8,419	$	(4,808)	$	229,391	$	1,211
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^(c)		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

(b) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income (loss). 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.

(c) At December 31, 2018 and 2017, bonds available for sale held by us that were below investment grade or not rated totaled $28.8 billion and $31.5 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⁽^a):

	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, 2018
Bonds available for sale:
U.S. government and government sponsored entities	$	574	$	13	$	873	$	29	$	1,447	$	42
Obligations of states, municipalities and political
subdivisions		1,965		51		1,530		70		3,495		121
Non-U.S. governments		3,851		149		2,422		153		6,273		302
Corporate debt		47,364		2,181		20,056		1,466		67,420		3,647
RMBS		5,231		94		5,641		223		10,872		317
CMBS		2,646		47		4,264		167		6,910		214
CDO/ABS		9,169		144		1,324		21		10,493		165
Total bonds available for sale	$	70,800	$	2,679	$	36,110	$	2,129	$	106,910	$	4,808
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

At December 31, 2018, we held 16,876 individual fixed maturity securities that were in an unrealized loss position, of which 5,127 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, 2018 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
	Available for Sale				Position Available for Sale
(in millions)		Amortized Cost		Fair Value		Amortized Cost		Fair Value
December 31, 2018
Due in one year or less	$	9,539	$	9,674	$	2,322	$	2,294
Due after one year through five years		47,400		47,905		17,382		16,844
Due after five years through ten years		42,363		42,045		27,724		26,517
Due after ten years		64,101		64,862		35,319		32,980
Mortgage-backed, asset-backed and collateralized		62,377		64,905		28,971		28,275
Total	$	225,780	$	229,391	$	111,718	$	106,910
December 31, 2017
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

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,
		2018				2017				2016
		Gross		Gross		Gross		Gross	Gross		Gross
	Realized		Realized		Realized		Realized		Realized		Realized
(in millions)		Gains		Losses		Gains		Losses	Gains		Losses
Fixed maturity securities	$	331	$	476	$	725	$	300	$	801	$	800
Equity securities		16		-		107		19		1,072		15
Total	$	347	$	476	$	832	$	319	$	1,873	$	815

For the years ended December 31, 2018, 2017 and 2016, the aggregate fair value of available for sale securities sold was $25.1 billion, $31.3 billion and $30.2 billion, which resulted in net realized capital gains (losses) of $(129) million, $0.5 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, 2018				December 31, 2017
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	2,665	21	%	$	2,802	21	%
Non-U.S. governments		45	-			57	1
Corporate debt		1,671	13			1,909	14
Mortgage-backed, asset-backed and collateralized:
RMBS		1,714	14			1,885	14
CMBS		388	3			559	4
CDO/ABS and other collateralized^*		4,932	39			5,560	42
Total mortgage-backed, asset-backed and collateralized		7,034	56			8,004	60
Total fixed maturity securities		11,415	90			12,772	96
Equity securities		1,253	10			589	4
Total	$	12,668	100	%	$	13,361	100	%

* Includes $178 million and $251 million of U.S. government agency backed ABS at December 31, 2018 and 2017, respectively.

Other Invested Assets

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

December 31,
(in millions)		2018		2017
Alternative investments^{(a) (b)}	$	8,966	$	11,308
Investment real estate^(c)		8,935		8,258
All other investments		1,440		1,256
Total	$	19,341	$	20,822

(a) At December 31, 2018, included hedge funds of $4.2 billion, private equity funds of $4.3 billion, and affordable housing partnerships of $438 million. 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.

(b) At December 31, 2018, approximately 74 percent of our hedge fund portfolio is available for redemption in 2019. The remaining 26 percent will be available for redemption between 2020 and 2027.

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.

Prior to January 1, 2018, 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 were reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income. These investments were subject to other-than-temporary impairment evaluations. The gross unrealized loss recorded in Accumulated other comprehensive income on such investments was $45 million at December 31, 2017, the majority of which pertained to investments in private equity funds and hedge funds that have been in continuous unrealized loss positions for less than 12 months. Effective January 1, 2018, upon the adoption of the Financial Instruments Recognition and Measurement standard, these investments are no longer accounted for as available for sale securities. The new standard requires these investments to be measured at fair value with the change in fair value recognized in earnings. As a result, beginning in 2018, these investments are no longer subject to the other-than-temporary impairment evaluation.

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)		2018		2017		2016
Operating results:
Total revenues	$	15,310	$	13,066	$	9,512
Total expenses		(3,200)		(6,835)		(7,361)
Net income	$	12,110	$	6,231	$	2,151
At December 31,
(in millions)				2018		2017
Balance sheet:
Total assets			$	96,915	$	132,708
Total liabilities			$	(21,063)	$	(35,585)

The following table presents the carrying amount and ownership percentage of equity method investments at December 31, 2018 and 2017:

		2018			2017
		Carrying	Ownership		Carrying	Ownership
(in millions, except percentages)		Value	Percentage		Value	Percentage
Equity method investments	$	6,520	Various	$	9,050	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. 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 were accounted for under the investment method. Under the investment method, we recognized 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, increased the carrying amount of the investment. We recognized income on individual investments in life settlements upon the death of the insured, at an amount equal to the excess of the investment proceeds over the carrying amount of the investment at that time. These investments were subject to impairment review, as discussed below.

During 2017 and 2016, income recognized on investments in life settlements was $266 million and $453 million, respectively, and is included in Net investment income in the Consolidated Statements of Income. We sold the remaining portion of our life settlements portfolio in 2017.

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)		2018		2017		2016
Available for sale fixed maturity securities, including short-term investments	$	10,323	$	10,435	$	11,314
Other fixed maturity securities		7		660		331
Equity securities^(a)		(162)		34		(5)
Interest on mortgage and other loans		1,874		1,661		1,526
Alternative investments^(b)		655		1,475		693
Real estate		257		144		150
Other investments		15		290		509
Total investment income		12,969		14,699		14,518
Investment expenses		493		520		453
Net investment income	$	12,476	$	14,179	$	14,065

(a) Upon the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, the change in fair value of all equity securities is included in Net investment income.

(b) 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. 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)		2018		2017		2016
Sales of fixed maturity securities	$	(145)	$	425	$	1
Sales of equity securities^(a)		16		88		1,057
Other-than-temporary impairments:
Severity		-		(2)		(15)
Change in intent		(87)		(9)		(46)
Foreign currency declines		(15)		(11)		(18)
Issuer-specific credit events		(147)		(234)		(433)
Adverse projected cash flows		(2)		(4)		(47)
Provision for loan losses		(92)		(50)		10
Foreign exchange transactions		(182)		489		(1,226)
Variable annuity embedded derivatives, net of related hedges		304		(1,374)		(1,243)
All other derivatives and hedge accounting		338		(368)		299
Impairments on investments in life settlements		-		(360)		(397)
Loss on sale of private equity funds		(321)		-		-
Other^(b)		203		30		114
Net realized capital losses	$	(130)	$	(1,380)	$	(1,944)

(a) In 2016, 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 2018, primarily includes $96 million and $49 million of realized gains on the sale of shares of OneMain Holdings, Inc. and an investment in Castle Holdings LLC’s aircraft assets, respectively. 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.

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)		2018		2017
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	(9,920)	$	4,235
Equity securities^(a)		-		22
Other investments		(88)		(195)
Total increase (decrease) in unrealized appreciation (depreciation) of investments^(b)	$	(10,008)	$	4,062

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

The following table summarizes the unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date:

Year Ended December 31, 2018				Other Invested
(in millions)		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	(184)	$	342	$	158
Less: Net gains and losses recognized during the year on equity securities
sold during the year		56		23		79
Unrealized gains and losses recognized during the reporting period on equity
securities still held at the reporting date	$	(240)	$	319	$	79

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)		2018		2017		2016
Balance, beginning of year	$	526	$	1,098	$	1,747
Increases due to:
Credit impairments on new securities subject to impairment losses		59		122		204
Additional credit impairments on previously impaired securities		90		74		212
Reductions due to:
Credit impaired securities fully disposed for which there was no
prior intent or requirement to sell		(145)		(99)		(296)
Accretion on securities previously impaired due to credit^*		(530)		(669)		(767)
Divested businesses		-		-		(2)
Balance, end of year	$	-	$	526	$	1,098

* 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

On January 1, 2018, AIG adopted the Financial Instruments Recognition and Measurement standard for equity securities. The new standard requires equity securities to be measured at fair value with changes in fair value recognized in earnings each reporting period. As a result of the new standard, equity securities with readily determinable fair values are no longer required to be evaluated for other-than-temporary-impairment.

Prior to the adoption of the Recognition and Measurement standard on January 1, 2018, we evaluated 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 was other-than-temporarily impaired required 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 considered 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 method investments in private equity funds, hedge funds and other entities are evaluated for impairment each reporting period. 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 were monitored for impairment on a contract-by-contract basis quarterly. An investment in life settlements was considered impaired if the undiscounted cash flows resulting from the expected proceeds would not be sufficient to recover our estimated future carrying amount, which was 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 were written down to their estimated fair value which was 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 were 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 were based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. Mortality improvement factors were 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 were 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. We sold the remaining portion of our aircraft assets in 2018.

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)	$	36,519
Cash flows expected to be collected^*		29,980
Recorded investment in acquired securities		20,229

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

		December 31,		December 31,
(in millions)		2018		2017
Outstanding principal balance	$	12,495	$	14,718
Amortized cost		8,646		10,492
Fair value		10,280		12,293

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

Years Ended December 31,
(in millions)		2018		2017
Balance, beginning of year	$	7,501	$	7,498
Newly purchased PCI securities		33		190
Disposals		(21)		(18)
Accretion		(722)		(797)
Effect of changes in interest rate indices		207		(34)
Net reclassification from (to) non-accretable difference, including effects of prepayments		212		662
Balance, end of year	$	7,210	$	7,501

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, 2018		December 31, 2017
Fixed maturity securities available for sale	$	1,050	$	2,911
Other bond securities, at fair value	$	122	$	1,585

At December 31, 2018 and 2017, amounts borrowed under repurchase and securities lending agreements totaled $1.2 billion and $4.5 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, 2018
Bonds available for sale:
Non-U.S. governments	$	25	$	35	$	-	$	-	$	-	$	60
Corporate debt		51		55		-		-		-		106
Other bond securities:
U.S. government and government sponsored entities		11		-		-		-		-		11
Non-U.S. governments		-		3		-		-		-		3
Corporate debt		17		38		53		-		-		108
Total	$	104	$	131	$	53	$	-	$	-	$	288

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

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, 2018
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	50	$	130	$	-	$	-	$	180
Non-U.S. governments		-		21		8		-		-		29
Corporate debt		-		330		345		-		-		675
Other bond securities:
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		-		-		-		-		-
Total	$	-	$	401	$	483	$	-	$	-	$	884

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
Other bond securities:
Non-U.S. governments		-		-		22		-		-		22
Corporate debt		-		-		56		-		-		56
Total	$	-	$	588	$	2,327	$	-	$	-	$	2,915

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, 2018		December 31, 2017
Securities collateral pledged to us	$	426	$	2,227
Amount sold or repledged by us		106		46

At December 31, 2018 and December 31, 2017, amounts loaned under reverse repurchase agreements totaled $426 million and $2.2 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 $7.9 billion and $4.9 billion at December 31, 2018 and 2017, respectively.

Other Pledges and Restrictions

Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $202 million and $93 million of stock in FHLBs at December 31, 2018 and 2017, respectively. In addition, our subsidiaries have pledged securities available for sale and residential loans associated with borrowings and funding agreements from FHLBs, with a fair value of $4.2 billion and $2.1 billion, respectively, at December 31, 2018 and $2.7 billion and $471 million, respectively, at December 31, 2017.

Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations was approximately $1.6 billion and $2.0 billion at December 31, 2018 and 2017, 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 $273 million and $255 million, comprised of bonds available for sale and short term investments at December 31, 2018 and 2017, respectively.

LENDING ACTIVITIES

12 Months Ended

Dec. 31, 2018

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)		2018		2017
Commercial mortgages^*	$	32,882	$	28,596
Residential mortgages		6,532		5,398
Life insurance policy loans		2,147		2,295
Commercial loans, other loans and notes receivable		1,971		1,056
Total mortgage and other loans receivable		43,532		37,345
Allowance for credit losses		(397)		(322)
Mortgage and other loans receivable, net	$	43,135	$	37,023

* Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 22 percent and 11 percent, respectively, at December 31, 2018, and 23 percent and 12 percent, respectively, at December 31, 2017).

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, 2018
Loan-to-Value Ratios^(b)
Less than 65%	$	19,204	$	2,543	$	250	$	21,997
65% to 75%		9,060		300		203		9,563
76% to 80%		476		20		15		511
Greater than 80%		596		103		112		811
Total commercial mortgages	$	29,336	$	2,966	$	580	$	32,882

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

(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 1.9X and 2.1X at December 31, 2018 and 2017, 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 58 percent and 57 percent at December 31, 2018, and 2017, respectively.

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

	Number															Percent
	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total^(c)	Total $
December 31, 2018
Credit Quality Performance
Indicator:
In good standing	762	$	11,190	$	9,774	$	5,645	$	3,074	$	2,507	$	580	$	32,770	100	%
Restructured^(a)	2		-		96		-		-		16		-		112	-
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	764	$	11,190	$	9,870	$	5,645	$	3,074	$	2,523	$	580	$	32,882	100	%
Allowance for credit losses:
Specific			-		2		-		-		1		-		3	-	%
General			122		104		51		13		19		6		315	1
Total allowance for credit losses		$	122	$	106	$	51	$	13	$	20	$	6	$	318	1	%

December 31, 2017
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	%

(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:

	2018						2017						2016
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	$	247	$	75	$	322	$	194	$	103	$	297	$	171	$	137	$	308
Loans charged off		(17)		(2)		(19)		(22)		(3)		(25)		(13)		(2)		(15)
Recoveries of loans previously
charged off		-		1		1		-		1		1		11		-		11
Net charge-offs		(17)		(1)		(18)		(22)		(2)		(24)		(2)		(2)		(4)
Provision for loan losses		88		5		93		75		(26)		49		25		(32)		(7)
Other		-		-		-		-		-		-		-		-		-
Allowance, end of year	$	318 ^*	$	79	$	397	$	247 ^*	$	75	$	322	$	194 ^*	$	103	$	297

* Of the total allowance at the end of the year, $3 million, $5 million and $11 million relates to individually assessed credit losses on $54 million, $82 million and $280 million of commercial mortgages as of December 31, 2018, 2017 and 2016, 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.

Loans that had been modified in TDRs during the year ended December 31, 2018 have been fully paid off. During the year ended December 31, 2017, loans with a carrying value of $237 million were modified in troubled debt restructurings.

- Definition

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

+ References + Details

REINSURANCE

12 Months Ended

Dec. 31, 2018

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 $140 million and $187 million at December 31, 2018 and 2017, 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,		2018				2017
		As		Net of		As		Net of
(in millions)		Reported	Reinsurance			Reported	Reinsurance
Liability for unpaid losses and loss adjustment expenses	$	(83,639)	$	(51,949)	$	(78,393)	$	(51,685)
Future policy benefits for life and accident and health insurance contracts		(44,935)		(43,936)		(45,432)		(44,457)
Reserve for unearned premiums		(19,248)		(16,300)		(19,030)		(15,890)
Reinsurance assets^(a)		35,637				30,823

(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. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsurers. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. 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. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. 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)		2018		2017		2016
Premiums written:
Direct	$	30,335	$	30,205	$	33,970
Assumed		4,026		3,084		2,824
Ceded		(7,755)		(7,533)		(7,561)
Net	$	26,606	$	25,756	$	29,233
Premiums earned:
Direct	$	31,415	$	30,904	$	34,869
Assumed		4,593		3,373		2,962
Ceded		(8,163)		(7,902)		(7,284)
Net	$	27,845	$	26,375	$	30,547

For the years ended December 31, 2018, 2017 and 2016, reinsurance recoveries, which reduced losses and loss adjustment expenses incurred, amounted to $9.8 billion, $1.5 billion and $2.1 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 $13.8 billion and $13.4 billion, and the deferred gain liability was $1.8 billion and $1.6 billion, as of December 31, 2018 and 2017, respectively. The effect on income from amortization of the deferred gain was $394 million, $316 million and $30 million for the years ended December 31, 2018, 2017, and 2016, respectively.

In the first quarter of 2017, we entered into an adverse development reinsurance agreement with NICO, 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 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. We account for this transaction as retroactive reinsurance. This transaction resulted in a gain, which under U.S. GAAP retroactive reinsurance accounting is deferred and amortized into income over the settlement period. NICO created a collateral trust account as security for their claim payment obligations to us, into which they deposited the consideration paid under the agreement, and Berkshire Hathaway Inc. has provided a parental guarantee to secure NICO’s obligations 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)		2018		2017		2016
Gross premiums	$	3,893	$	5,338	$	4,732
Ceded premiums		(850)		(809)		(789)
Net	$	3,043	$	4,529	$	3,943

Long-duration reinsurance recoveries, which reduced Policyholder benefits and losses incurred, was $778 million for the year ended December 31, 2018 and approximately $1.0 billion for both the years ended December 31, 2017 and 2016.

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

At December 31,
(in millions)		2018		2017		2016
Long-duration insurance in force ceded	$	228,846	$	202,402	$	174,363

Long-duration insurance in-force assumed as a percentage of gross long-duration insurance in-force was 0.03 percent at December 31, 2018, 2017 and 2016; and premiums assumed represented 10 percent, 5 percent and 3 percent of gross premiums for the years ended December 31, 2018, 2017 and 2016, 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, 2018, this subsidiary had two bilateral letters of credit totaling $450 million, which were issued on February 7, 2014 and expire on February 7, 2022. 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 $18.9 billion and $18.0 billion at December 31, 2018 and 2017, respectively, of which approximately $3.7 billion and $7.6 billion at December 31, 2018 and 2017, respectively, was not secured by collateral.

DEFERRED POLICY ACQUISITION COSTS

12 Months Ended

Dec. 31, 2018

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: Certain 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 securities available for sale and prior to 2018, equity securities at fair value 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 securities available for sale and prior to 2018, equity securities at fair value in a manner similar to DAC.

The following table presents a rollforward of DAC and VOBA:

Years Ended December 31,
(in millions)		2018		2017		2016
Balance, beginning of year	$	10,994	$	11,042	$	11,115
Acquisitions		298		-		-
Dispositions		-		(35)		(110)
Acquisition costs deferred		5,832		4,820		5,216
Amortization expense		(5,386)		(4,288)		(4,521)
Change related to unrealized appreciation (depreciation) of investments		1,063		(505)		(259)
Other, including foreign exchange		(107)		(40)		72
Reclassified to Assets held for sale		-		-		(471)
Balance, end of year^(a)	$	12,694	$	10,994	$	11,042
Supplemental Information:
VOBA amortization expense included in DAC amortization	$	243	$	20	$	40
VOBA, end of year included in DAC balance^(b)		438		381		393

(a) Net of reductions in DAC of $1.0 billion, $1.3 billion, and $842 million at December 31, 2018, 2017 and 2016, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC).

(b) Includes $101 million of VOBA from the acquisition of Validus, the majority of which will be amortized within the next 12 to 18 months.

The percentage of the unamortized balance of VOBA at December 31, 2018 expected to be amortized in 2019 through 2023 by year is: 8.6 percent, 7.7 percent, 6.7 percent, 6.3 percent and 6.0 percent, respectively, with 64.8 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 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, 2018

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)		Affordable Housing Partnerships		Other		Total
December 31, 2018
Assets:
Bonds available for sale	$	-	$	7,662	$	-	$	-	$	7,662
Other bond securities		-		3,923		-		2		3,925
Mortgage and other loans receivable		-		3,693		-		-		3,693
Other invested assets		5,212		-		3,142		24		8,378
Other^(a)		580		1,581		394		70		2,625
Total assets^(b)	$	5,792	$	16,859	$	3,536	$	96	$	26,283
Liabilities:
Long-term debt	$	2,577	$	3,154	$	1,834	$	4	$	7,569
Other^(c)		227		165		159		24		575
Total liabilities	$	2,804	$	3,319	$	1,993	$	28	$	8,144
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

(a) Comprised primarily of Short-term investments and Other assets at December 31, 2018 and 2017.

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

(d) At December 31, 2018 and 2017, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $1.4 billion and $86 million, respectively.

(e) At December 31, 2018 and 2017, $16.0 billion and $17.6 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, 2018
Real estate and investment entities^(a)	$	309,598	$	6,820	$	2,501		$	9,321
Affordable housing partnerships		4,116		607		-			607
Other		2,813		284		1,222	^(c)		1,506
Total	$	316,527	$	7,711	$	3,723		$	11,434
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

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

(b) At December 31, 2018 and 2017, $7.4 billion and $9.8 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 $16.9 billion, of which $16.0 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, 2018

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, 2018								December 31, 2017
	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	$	10	$	-	$	866	$	19	$	-	$	-	$	838	$	15
Foreign exchange contracts		6,357		363		2,536		147		2,823		173		4,783		350
Equity contracts		-		-		-		-		-		-		159		19
Derivatives not designated
as hedging instruments:^(a)
Interest rate contracts		42,821		2,890		27,329		2,004		37,751		2,171		26,461		2,185
Foreign exchange contracts		11,134		801		5,434		711		6,305		658		11,093		895
Equity contracts		17,807		398		2,399		15		19,975		522		1,130		2
Credit contracts^(b)		8		1		1,406		236		4		1		1,365		277
Other contracts^(c)		39,070		15		58		6		39,829		20		59		5
Total derivatives, gross	$	117,207	$	4,468	$	40,028	$	3,138	$	106,687	$	3,545	$	45,888	$	3,748
Counterparty netting^(d)				(1,713)				(1,713)				(1,464)				(1,464)
Cash collateral^(e)				(1,840)				(187)				(1,159)				(1,249)
Total derivatives on
consolidated balance sheets^(f)			$	915			$	1,238			$	922			$	1,035

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

(b) As of December 31, 2018 and 2017, included CDSs on super senior multi-sector CDOs with a net notional amount of $592 million and $685 million (fair value liability of $224 million and $254 million), respectively. The net notional amount represents the maximum exposure to loss on the portfolio. As of December 31, 2018 and 2017, 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, 2018 and December 31, 2017. Fair value of liabilities related to bifurcated embedded derivatives was $4.1 billion and $4.1 billion, respectively, at December 31, 2018 and December 31, 2017. 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 $1.7 billion and $2.9 billion at December 31, 2018 and 2017, respectively. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $2.1 billion and $1.3 billion at December 31, 2018 and 2017, 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, 2018, 2017, and 2016 we recognized gains (losses) of $34 million, $(106) million and $123 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, 2018
Interest rate contracts:
Realized capital gains/(losses)	$	(2)	$	2	$	-	$	-	$	-
Other income		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		471		(365)		-		106		-
Other income		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		-		-		-		-		-
Year ended December 31, 2017
Interest rate contracts:
Realized capital gains/(losses)	$	(4)	$	4	$	-	$	-	$	-
Other income		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		(420)		393		-		(26)		-
Other income		-		4		-		-		4
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
Foreign exchange contracts:
Realized capital gains/(losses)		294		(335)		-		(41)		-
Other income		-		24		-		-		24
Equity contracts:
Realized capital gains/(losses)		10		(11)		-		(1)		-

(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)		2018		2017		2016
By Derivative Type:
Interest rate contracts	$	(509)	$	56	$	(229)
Foreign exchange contracts		543		(277)		293
Equity contracts		(56)		(964)		(902)
Commodity contracts		-		-		-
Credit contracts		32		58		81
Other contracts		65		75		80
Embedded derivatives		629		(449)		(48)
Total	$	704	$	(1,501)	$	(725)
By Classification:
Policy fees	$	67	$	77	$	80
Net investment income		(3)		(11)		26
Net realized capital gains (losses)		561		(1,709)		(895)
Other income		81		139		63
Policyholder benefits and claims incurred		(2)		3		1
Total	$	704	$	(1,501)	$	(725)

Credit Risk-Related Contingent Features

We estimate that at December 31, 2018, 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 $61 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 $423 million and $572 million at December 31, 2018 and 2017, respectively. The aggregate fair value of assets posted as collateral under these contracts at December 31, 2018 and 2017, was approximately $453 million and $676 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 $3.9 billion and $4.4 billion at December 31, 2018 and 2017, respectively. These securities have par amounts of $8.5 billion and $9.1 billion at December 31, 2018 and 2017, respectively, and have remaining stated maturity dates that extend to 2052.

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2018

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

12. Goodwill and Other Intangible Assets

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, 2018, the operating segments with goodwill are 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.

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, 2018 based on the results of the goodwill impairment test.

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

	General Insurance
	North				Life			Other		Legacy
(in millions)	America		International		Insurance		Operations		Portfolio			Total
Balance at January 1, 2016:
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:
Acquisitions		-		-		-		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
Increase (decrease) due to:
Acquisitions^*		2,332		157		46		9		-		2,544
Other		(12)		(48)		(5)		9		-		(56)
Balance at December 31, 2018:
Goodwill - gross		4,188		2,983		125		49		214		7,559
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill	$	2,924	$	847	$	125	$	49	$	137	$	4,082

* Includes goodwill of $2.0 billion, $492 million and $46 million relating to the acquisitions of Validus, Glatfelter and Ellipse, respectively.

The following table presents the changes in other intangible assets and the value of distribution network acquired by operating segment:

	General Insurance
Year Ended December 31, 2018	North				Life			Other		Legacy
(in millions)	America		International		Insurance		Operations		Portfolio			Total
Other intangible assets, beginning of year	$	27	$	8	$	34	$	37	$	-	$	106
Increase (decrease) due to:
Acquisitions		61		207		16		-		-		284
Amortization		(2)		(3)		(4)		(2)		-		(11)
Other		-		-		-		(19)		-		(19)
Other intangible assets, end of year	$	86	$	212	$	46	$	16	$	-	$	360

Value of distribution network acquired, beginning of year	$	-	$	-	$	-	$	-	$	-	$	-
Increase (decrease) due to:
Acquisitions		-		-		-		582		-		582
Amortization		-		-		-		(15)		-		(15)
Other		-		-		-		2		-		2
Value of distribution network acquired, end of year	$	-	$	-	$	-	$	569	$	-	$	569

INSURANCE LIABILITIES

12 Months Ended

Dec. 31, 2018

Insurance Liabilites

INSURANCE LIABILITIES

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 $12.3 billion and $12.6 billion at December 31, 2018 and 2017, 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, 2018 and 2017, we held collateral of approximately $9.2 billion and $9.5 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)		2018		2017		2016
Liability for unpaid loss and loss adjustment expenses, beginning of year	$	78,393	$	77,077	$	74,942
Reinsurance recoverable		(26,708)		(15,532)		(14,339)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year		51,685		61,545		60,603
Losses and loss adjustment expenses incurred:
Current year		22,501		21,079		20,232
Prior years, excluding discount and amortization of deferred gain		1,429		1,565		5,788
Prior years, discount charge (benefit)		(252)		187		(422)
Prior years, amortization of deferred gain on retroactive reinsurance^(a)		(395)		(284)		-
Total losses and loss adjustment expenses incurred		23,283		22,547		25,598
Losses and loss adjustment expenses paid:
Current year		(6,235)		(5,323)		(5,825)
Prior years		(19,254)		(16,241)		(16,908)
Total losses and loss adjustment expenses paid		(25,489)		(21,564)		(22,733)
Other changes:
Foreign exchange effect		(677)		788		(463)
Acquisitions^(b)		3,284		23		-
Dispositions^(c)		-		(360)		(1,058)
Retroactive reinsurance adjustment (net of discount)^(d)		(137)		(11,294)		-
Reclassified to liabilities held for sale^(e)		-		-		(402)
Total other changes		2,470		(10,843)		(1,923)
Liability for unpaid loss and loss adjustment expenses, end of year:
Net liability for unpaid losses and loss adjustment expenses		51,949		51,685		61,545
Reinsurance recoverable		31,690		26,708		15,532
Total	$	83,639	$	78,393	$	77,077

(a) Includes $51 million and $25 million for the retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the year ended December 31, 2018 and 2017, respectively.

(b) Includes amounts related to the acquisition of Glatfelter in October 2018, Validus in July 2018 and 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 $180 million and $1.5 billion for the periods ended December 31, 2018 and 2017, respectively.

(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.

Prior Year Development

During 2018, we recognized adverse prior year loss reserve development of $1.4 billion before impact of the Adverse Development Cover and the asbestos cession to NICO. The key components of this development were as follows:

Unfavorable development in US Excess Casualty, driven by the combination of construction defect and construction wrap claims from accident year 2015 and prior where we reacted to significant increases in severity and longer claim reporting patterns, as well as higher than expected loss severity in accident years 2016 and 2017, which led to an increase in estimates for these accident years;
Unfavorable development in U.S. Financial Lines, primarily from Directors & Officers (D&O) and Employment Practices Liability (EPLI) policies covering Corporate and National Insureds as well as Private and Not-for-Profit insureds. This development was predominantly in accident years 2014-2017 and resulted largely from increases in severity associated with an increase in frequency of class action lawsuits from those years.
Favorable development in US Commercial Property and Specialty Lines due to reductions in our estimates for 2017 Catastrophes , favorable attritional losses in Commercial Property and favorable Specialty emergence.
Unfavorable development in US Personal Lines reflecting the adverse development on the 2017 California Wildfires and Hurricane Irma in 2017.
Unfavorable development in International Financial Lines driven by increased large loss activity in recent accident years, particularly related to directors and officers class action suits against insureds with global exposure.

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 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 UK/Europe Casualty and Financial Lines. We observed a significant increase in large claims activity in our UK/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 UK/Europe property and special risks business driven by unexpected development on various large claims across the property, aviation, marine, and trade credit segments.

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.

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, 2018:

	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)	$	5,834	$	7,038	$	12,872
U.S. Excess Casualty		4,715		4,576		9,291
U.S. Other Casualty		4,288		4,661		8,949
U.S. Financial Lines		5,315		1,960		7,275
U.S. Property and Special risks		6,534		2,748		9,282
U.S. Personal Insurance		1,706		1,001		2,707
UK/Europe Casualty and Financial lines		7,022		1,789		8,811
UK/Europe Property and Special risks		2,988		1,251		4,239
UK/Europe and Japan Personal Insurance		2,264		553		2,817
U.S. Run-Off Long Tail Insurance Lines (before
discount)		4,835		3,689		8,524
Total	$	45,501	$	29,266	$	74,767

Reconciling Items
Discount on workers' compensation lines						(3,755)
Other product lines						8,974
Unallocated loss adjustment expenses						3,653
Total Loss Reserves					$	83,639

Loss Development Information

The following is information about incurred and paid loss developments as of December 31, 2018, 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. Historically we have leveraged facultative and treaty reinsurance, both on a pro-rata and excess of loss basis. Our reinsurance program may change from year to year, which may affect the comparability of the data presented in our tables.
Adverse Development Reinsurance Agreement: We have provided the impact of the Adverse Development Reinsurance Agreement (ADC) in an additional table below our Incurred Losses and Allocated Loss Adjustment Expenses (ALAE) tables. The impact of the ADC is shown beginning in 2016 given the retroactive date of the contract and coincides with the effective date of the contract. For the lines of business covered by the agreement (U.S. Workers' Compensation, U.S. Excess Casualty, U.S. Other Casualty, U.S. Financial Lines, U.S. Property and Special Risks and U.S. Personal Insurance or collectively, the "Covered Lines"), an attribution of the loss recoveries to the line of business by calendar year and accident year is performed based on the underlying distribution of the losses subject to the agreement. Specifically, the future claim payments for all subject incurred losses were projected into future years based on the same actuarial assumptions underlying the related reserves. Also, refer to the additional table presented after discussion of prior year development by line of business, which reconciles the changes in net ultimates to our overall prior year development and provides the reattribution of loss recoveries for the Covered Lines. The reinsurance terms of the ADC were then used to identify the future claims payments for which 80% will be reimbursed by NICO. At each reporting period, the attribution of the ADC recoveries is performed. The factors that could cause the attribution to lines of business and accident year to change include changes in underlying actuarial assumptions as to timing and amount of future claim payments.

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, 2018. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends.
Acquisitions: We include acquisitions from all accident years presented in the tables. For purposes of this disclosure, we have applied the retrospective method for the acquired reserves, including incurred and paid claim development histories throughout the relevant tables. It should be noted that historical reserves for the acquired businesses were established by the acquired companies using methods, assumptions and procedures then in effect which may differ from our current reserving bases. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on the aggregated historical results shown in the triangles.
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, 2018 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 2018, we recognized $51 million of unfavorable prior year development, net of external reinsurance but before ADC cessions.

During 2017, we recognized $31 million of favorable prior year development, net of external reinsurance but before ADC cessions.

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

	Years Ended December 31, (dollars in millions)																							December 31, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	3,466	$	3,633	$	3,608	$	3,666	$	3,639	$	3,616	$	3,606	$	3,708	$	3,714	$	3,697	$	(17)	$	421	147,504	$	(439)	$	3,258	$	(18)
2010				2,706		3,049		3,125		3,148		3,211		3,214		3,286		3,267		3,278		11		446	133,374		(467)		2,811		(21)
2011						2,901		2,953		3,091		3,158		3,113		3,152		3,156		3,177		21		490	124,855		(495)		2,682		(5)
2012								2,382		2,194		2,286		2,260		2,334		2,308		2,259		(49)		418	70,874		(466)		1,793		(48)
2013										1,932		1,880		1,950		2,060		2,032		1,974		(58)		452	46,768		(493)		1,481		(41)
2014												1,729		1,764		1,866		1,862		1,794		(68)		531	39,742		(485)		1,309		46
2015														1,708		1,864		1,866		1,814		(52)		712	35,439		(496)		1,318		216
2016																1,299		1,346		1,318		(28)		625	29,669		-		1,318		625
2017																		789		850		61		504	26,005		-		850		504
2018																				998				802	18,367		-		998		802
Total																			$	21,159	$	(179)				$	(3,341)	$	17,818
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(13,739)		-					-		(13,739)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				4,443		153					(2,688)		1,755
Unallocated loss adjustment expense prior year development																						77
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	11,863	$	51				$	(6,029)	$	5,834

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	3,297	$	3,298	$	3,258	$	(40)
2010		2,821		2,818		2,811		(7)
2011		2,676		2,677		2,682		5
2012		1,819		1,814		1,793		(21)
2013		1,499		1,494		1,481		(13)
2014		1,311		1,310		1,309		(1)
2015		1,278		1,279		1,318		39
2016		1,299		1,346		1,318		(28)
2017		-		789		850		61
2018		-		-		998		-
Total	$	16,000	$	16,825	$	17,818	$	(5)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below				-		(13,739)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				2,258		1,755		(503)
Unallocated loss adjustment expense prior year development				-		-		10
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	5,834	$	(498)

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	(411)	$	(416)	$	(439)	$	(23)
2010		(465)		(449)		(467)		(18)
2011		(476)		(479)		(495)		(16)
2012		(515)		(494)		(466)		28
2013		(561)		(538)		(493)		45
2014		(555)		(552)		(485)		67
2015		(586)		(587)		(496)		91
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(3,569)	$	(3,515)	$	(3,341)	$	174
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(2,032)		(2,688)		(656)
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(6,029)	$	(482)

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

	Years Ended December 31, (dollars in millions)
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	630	$	1,328	$	1,756	$	2,120	$	2,390	$	2,621	$	2,780	$	2,887	$	2,968	$	3,058	$	-
2010				550		1,093		1,537		1,855		2,126		2,288		2,426		2,532		2,597		-
2011						519		1,129		1,561		1,884		2,129		2,285		2,388		2,451		-
2012								415		804		1,089		1,272		1,440		1,563		1,632		-
2013										282		619		879		1,067		1,214		1,287		-
2014												231		558		786		930		1,030		-
2015														234		524		725		854		-
2016																147		378		521		-
2017																		93		224		-
2018																				85		-
Total																			$	13,739	$	-

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 2018, we recognized $51 million of adverse prior year development in US Workers Compensation business with higher claim development factors at older ages (tail factors) for non-California, non-New York and loss sensitive business in older accident years being offset by favorable emergence in recent years. Accident year 2017 was adversely impacted by a change in ceded reinsurance estimates. For our Defense Base Act (DBA) business, adverse development in recent years was offset by an expansion of the definition of reimbursable War Hazard claims by the US Government.

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.

U.S. Excess Casualty

During 2018, we recognized $1,274 million of unfavorable prior year development in Excess Casualty, net of external reinsurance but before ADC cessions, driven by higher than expected loss emergence for construction defect and construction wrap claims and increasing loss severity in more recent accident years.

During 2017, we recognized $254 million of unfavorable prior year development in Excess Casualty, net of external reinsurance but before ADC cessions, driven by 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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	1,831	$	1,897	$	1,797	$	1,638	$	1,457	$	1,321	$	1,407	$	1,518	$	1,522	$	1,599	$	77	$	254	3,935	$	(191)	$	1,408	$	63
2010				1,863		2,076		2,076		1,771		1,640		1,723		1,719		1,706		1,681		(25)		331	3,687		(255)		1,426		76
2011						1,766		1,807		1,581		1,416		1,521		1,606		1,623		1,726		103		370	3,651		(290)		1,436		80
2012								1,588		1,382		1,226		1,477		1,530		1,481		1,558		77		395	3,549		(304)		1,254		91
2013										1,073		973		1,113		1,258		1,178		1,226		48		397	2,908		(301)		925		96
2014												849		968		1,157		1,135		1,219		84		541	2,381		(424)		795		117
2015														892		1,334		1,320		1,478		158		580	2,185		(464)		1,014		116
2016																790		1,029		1,055		26		703	1,550		-		1,055		703
2017																		758		905		147		555	759		-		905		555
2018																				555				512	301		-		555		512
Total																			$	13,002	$	695				$	(2,229)	$	10,773
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(6,877)		-					-		(6,877)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				2,205		537					(1,386)		819
Unallocated loss adjustment expense prior year development																						42
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	8,330	$	1,274				$	(3,615)	$	4,715

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	1,352	$	1,353	$	1,408	$	55
2010		1,448		1,446		1,426		(20)
2011		1,364		1,367		1,436		69
2012		1,168		1,158		1,254		96
2013		885		869		925		56
2014		784		780		795		15
2015		898		895		1,014		119
2016		790		1,029		1,055		26
2017		-		758		905		147
2018		-		-		555		-
Total	$	8,689	$	9,655	$	10,773	$	563
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						(6,877)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				628		819		191
Unallocated loss adjustment expense prior year development						-		8
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	4,715	$	762

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	(166)	$	(169)	$	(191)	$	(22)
2010		(271)		(260)		(255)		5
2011		(242)		(256)		(290)		(34)
2012		(362)		(323)		(304)		19
2013		(373)		(309)		(301)		8
2014		(373)		(355)		(424)		(69)
2015		(436)		(425)		(464)		(39)
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(2,223)	$	(2,097)	$	(2,229)	$	(132)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(1,040)		(1,386)		(346)
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(3,615)	$	(478)

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

	Years Ended December 31, (dollars in millions)
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	8	$	69	$	249	$	449	$	624	$	788	$	965	$	1,174	$	1,212	$	1,309	$	-
2010				10		197		475		654		795		946		1,052		1,217		1,265		-
2011						5		63		225		386		716		921		1,069		1,214		-
2012								3		106		288		495		649		887		1,022		-
2013										15		104		204		382		546		661		-
2014												3		68		202		397		531		-
2015														9		192		361		668		-
2016																14		66		178		-
2017																		1		29		-
2018																				-		-
Total																			$	6,877	$	-

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 2018, we recognized $1,274 million of adverse development driven largely by construction defect and construction wrap claims where actual emergence was significantly worse than expected and our updated analysis significantly increased the severity assumptions and lengthened the claim reporting pattern to recognize the significant deterioration seen in recent calendar periods. We also increased the expected loss ratio assumptions in recent accident years to reflect the high initial reported loss ratios for those years and the incidence of several unusually large claims.

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.

U.S. Other Casualty

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

In 2018, we recognized $127 million of favorable prior year development in Other Casualty, net of external reinsurance but before ADC cessions, primarily as a result of favorable loss emergence in accident years 2011-2016.

In 2017, we recognized $216 million of unfavorable prior year development in Other Casualty, net of external reinsurance but before ADC cessions, primarily as a result of increased loss severity in recent accident years.

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

	Years Ended December 31, (dollars in millions)																							December 31, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	2,416	$	2,517	$	2,586	$	2,582	$	2,697	$	2,818	$	2,880	$	2,863	$	2,855	$	2,884	$	29	$	166	90,390	$	(111)	$	2,773	$	55
2010				2,132		2,109		2,243		2,192		2,341		2,384		2,503		2,494		2,504		10		248	96,333		(155)		2,349		93
2011						2,052		2,222		2,321		2,458		2,601		2,639		2,596		2,533		(63)		161	75,432		(103)		2,430		58
2012								2,012		2,162		2,218		2,229		2,371		2,430		2,363		(67)		243	42,226		(168)		2,195		75
2013										1,662		1,739		1,918		2,152		2,183		2,159		(24)		316	37,105		(235)		1,924		81
2014												1,756		1,729		1,973		2,017		1,920		(97)		351	35,222		(276)		1,644		75
2015														1,340		1,778		1,847		1,749		(98)		388	32,422		(313)		1,436		75
2016																1,348		1,352		1,330		(22)		627	25,409		-		1,330		627
2017																		616		649		33		423	18,223		-		649		423
2018																				813				703	11,372		-		813		703
Total																			$	18,904	$	(299)				$	(1,361)	$	17,543
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(14,044)		-					-		(14,044)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				1,556		129					(767)		789
Unallocated loss adjustment expense prior year development																						43
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	6,416	$	(127)				$	(2,128)	$	4,288

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	2,714	$	2,712	$	2,773	$	61
2010		2,363		2,361		2,349		(12)
2011		2,417		2,409		2,430		21
2012		2,208		2,220		2,195		(25)
2013		1,952		1,958		1,924		(34)
2014		1,677		1,686		1,644		(42)
2015		1,377		1,391		1,436		45
2016		1,348		1,352		1,330		(22)
2017		-		616		649		33
2018		-		-		813		-
Total	$	16,056	$	16,705	$	17,543	$	25
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						(14,044)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				812		789		(23)
Unallocated loss adjustment expense prior year development						-		56
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	4,288	$	58

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	(149)	$	(143)	$	(111)	$	32
2010		(140)		(133)		(155)		(22)
2011		(222)		(187)		(103)		84
2012		(163)		(210)		(168)		42
2013		(200)		(225)		(235)		(10)
2014		(296)		(331)		(276)		55
2015		(401)		(456)		(313)		143
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(1,571)	$	(1,685)	$	(1,361)	$	324
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(616)		(767)		(151)
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(2,128)	$	173

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

	Years Ended December 31, (dollars in millions)
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	393	$	842	$	1,253	$	1,650	$	2,002	$	2,241	$	2,386	$	2,607	$	2,664	$	2,687	$	-
2010				295		661		985		1,358		1,640		1,824		1,972		2,087		2,196		-
2011						235		726		1,109		1,488		1,822		2,048		2,220		2,303		-
2012								413		743		1,048		1,395		1,690		1,882		2,023		-
2013										169		592		956		1,243		1,483		1,687		-
2014												210		621		871		1,157		1,398		-
2015														111		321		783		1,103		-
2016																77		299		491		-
2017																		51		113		-
2018																				43		-
Total																			$	14,044	$	-

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 2018, we increased our ultimate loss estimates for prior accident years by $214 million mainly due to Construction Casualty business, particularly construction defect (CD) claims. Our updated analyses for the construction casualty business reacted to increased severity of claims for both CD and non-CD claims and lengthened the claim reporting pattern for CD claims.

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.

Primary Commercial Auto Liability

In 2018, we reduced our ultimate loss estimates for prior accident years by $142 million mainly due to favorable emergence in recent accident years. Our updated analyses for the auto business reacted to this experience in older years as loss trends have stabilized in the more recent years.

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.

Medical Malpractice

During 2018, we recognized favorable loss development of approximately $158 million as loss emergence was less than expected in older years due to several large cases settling for less than we expected. Severity in recent years continues to be higher than historical norms.

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.

Other Lines

During 2018, we recognized favorable loss development of approximately $41 million largely due to our environmental impairment liability business where loss activity was better than expected.

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.

U.S. Financial Lines

During 2018, we recognized $298 million of unfavorable prior year development in U.S. Financial Lines, net of external reinsurance but before ADC cessions, due to adverse experience in the Directors and Officers (D&O) subset of business

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

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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	1,693	$	1,780	$	1,845	$	1,904	$	2,097	$	2,189	$	2,183	$	2,273	$	2,310	$	2,322	$	12	$	62	22,621	$	(32)	$	2,290	$	30
2010				1,552		1,509		1,406		1,366		1,370		1,472		1,514		1,541		1,540		(1)		49	20,182		(37)		1,503		12
2011						1,816		1,734		1,902		1,902		1,935		1,965		1,997		1,991		(6)		36	20,078		(26)		1,965		10
2012								1,572		1,739		1,777		1,892		1,986		1,987		2,011		24		150	20,122		(90)		1,921		60
2013										1,767		1,691		1,643		1,597		1,541		1,488		(53)		133	19,042		(89)		1,399		44
2014												1,767		1,736		1,849		1,898		1,932		34		309	17,330		(207)		1,725		102
2015														1,705		1,744		1,719		1,759		40		433	15,873		(326)		1,433		107
2016																1,593		1,841		1,967		126		688	15,734		-		1,967		688
2017																		1,560		1,662		102		1,017	14,702		-		1,662		1,017
2018																				1,637				1,402	12,936		-		1,637		1,402
Total																			$	18,309	$	278				$	(807)	$	17,502
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(12,253)		-					-		(12,253)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				79		(1)					(13)		66
Unallocated loss adjustment expense prior year development																						21
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	6,135	$	298				$	(820)	$	5,315

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	2,277	$	2,284	$	2,290	$	6
2010		1,505		1,510		1,503		(7)
2011		1,941		1,947		1,965		18
2012		1,904		1,904		1,921		17
2013		1,426		1,415		1,399		(16)
2014		1,690		1,700		1,725		25
2015		1,411		1,406		1,433		27
2016		1,593		1,841		1,967		126
2017		-		1,560		1,662		102
2018		-		-		1,637		-
Total	$	13,747	$	15,567	$	17,502	$	298
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						(12,253)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				36		66		30
Unallocated loss adjustment expense prior year development						-		27
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	5,315	$	355

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	4	$	(26)	$	(32)	$	(6)
2010		(9)		(31)		(37)		(6)
2011		(24)		(50)		(26)		24
2012		(82)		(83)		(90)		(7)
2013		(171)		(126)		(89)		37
2014		(159)		(198)		(207)		(9)
2015		(333)		(313)		(326)		(13)
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(774)	$	(827)	$	(807)	$	20
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(42)		(13)		29
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(820)	$	49

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

	Years Ended December 31, (dollars in millions)
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	129	$	499	$	887	$	1,273	$	1,614	$	1,838	$	1,964	$	2,056	$	2,092	$	2,129	$	-
2010				31		285		566		800		1,017		1,180		1,280		1,361		1,401		-
2011						165		494		886		1,210		1,528		1,732		1,862		1,888		-
2012								76		406		815		1,252		1,497		1,625		1,689		-
2013										43		333		686		945		1,142		1,238		-
2014												66		371		853		1,159		1,386		-
2015														66		393		792		1,051		-
2016																76		500		986		-
2017																		66		397		-
2018																				88		-
Total																			$	12,253	$	-

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 2018, we recognized $298 million of unfavorable prior year development particularly across accident years 2014-2017. The largest share of the unfavorable development came from D&O and EPLI for Corporate and National accounts and resulted largely from increases in severity as the costs of security class actions increased. Excess D&O also contributed adverse development due to similar causes.

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.

U.S. Property and Special Risks

During 2018, we recognized $497 million of favorable prior year development in U.S. Property and Special Risks, net of external reinsurance but before ADC cessions, mainly due to favorable development from the 2017 Catastrophes.

During 2017, we recognized $115 million of unfavorable prior year development in U.S. Property and Special Risks, net of external reinsurance but before ADC cessions, 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.

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

	Years Ended December 31, (dollars in millions)																							December 31, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	2,239	$	1,986	$	1,959	$	1,961	$	1,920	$	1,900	$	1,887	$	1,894	$	1,896	$	1,896	$	-	$	22	47,707	$	(11)	$	1,885	$	11
2010				2,786		2,533		2,489		2,561		2,578		2,558		2,567		2,579		2,569		(10)		68	47,645		(18)		2,551		50
2011						3,855		3,713		3,638		3,628		3,612		3,652		3,651		3,645		(6)		56	49,597		(15)		3,630		41
2012								4,191		4,302		4,278		4,234		4,346		4,343		4,325		(18)		95	48,782		(19)		4,306		76
2013										2,526		2,545		2,402		2,449		2,463		2,465		2		73	50,165		(27)		2,438		46
2014												2,931		2,684		2,746		2,738		2,756		18		140	60,612		(64)		2,692		76
2015														3,116		2,970		2,916		2,894		(22)		221	58,936		(87)		2,807		134
2016																3,168		3,193		3,117		(76)		366	53,727		-		3,117		366
2017																		5,246		4,796		(450)		866	77,335		-		4,796		866
2018																				3,712				1,609	56,580		-		3,712		1,609
Total																			$	32,175	$	(562)				$	(241)		31,934
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(25,689)		-					-		(25,689)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				362		39					(73)		289
Unallocated loss adjustment expense prior year development																						26
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	6,848	$	(497)				$	(314)		6,534

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	1,882	$	1,883	$	1,885	$	2
2010		2,558		2,561		2,551		(10)
2011		3,632		3,632		3,630		(2)
2012		4,319		4,318		4,306		(12)
2013		2,422		2,425		2,438		13
2014		2,679		2,677		2,692		15
2015		2,829		2,818		2,807		(11)
2016		3,168		3,193		3,117		(76)
2017		-		5,246		4,796		(450)
2018		-		-		3,712		-
Total	$	23,489	$	28,753	$	31,934	$	(531)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						(25,689)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				244		289		45
Unallocated loss adjustment expense prior year development						-		58
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	6,534	$	(428)

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	(12)	$	(13)	$	(11)	$	2
2010		(9)		(18)		(18)		-
2011		(20)		(19)		(15)		4
2012		(27)		(25)		(19)		6
2013		(27)		(38)		(27)		11
2014		(67)		(61)		(64)		(3)
2015		(141)		(98)		(87)		11
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(303)	$	(272)	$	(241)	$	31
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(79)		(73)		6
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(314)	$	37

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

	Years Ended December 31, (dollars in millions)
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	551	$	1,160	$	1,442	$	1,626	$	1,731	$	1,793	$	1,816	$	1,838	$	1,853	$	1,857	$	-
2010				757		1,574		1,911		2,113		2,247		2,371		2,440		2,476		2,492		-
2011						1,021		2,336		2,920		3,183		3,384		3,481		3,529		3,560		-
2012								842		2,716		3,420		3,785		4,001		4,137		4,170		-
2013										736		1,578		1,855		2,056		2,203		2,317		-
2014												901		1,748		2,083		2,296		2,434		-
2015														1,045		1,866		2,228		2,484		-
2016																1,018		2,039		2,367		-
2017																		1,356		2,941		-
2018																				1,067		-
Total																			$	25,689	$	-

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 2018, we recognized $497 million of favorable prior year development in U.S. Property and Special Risks driven largely by favorable development on the 2017 Catastrophes as well as favorable emergence on non-Catastrophe Commercial Property, and Program and Specialty classes.

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.

U.S. Personal Insurance

During 2018, we recognized $255 million of unfavorable prior year development in U.S. Personal Insurance, net of external reinsurance but before ADC cessions, mainly due to catastrophe development from accident year 2017.

During 2017, we recognized $16 million of unfavorable prior year development in U.S. Personal Insurance, net of external reinsurance but before ADC cessions, mainly due to homeowners business in accident year 2016. This was partially offset by favorable development in 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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	1,763	$	1,697	$	1,649	$	1,663	$	1,664	$	1,664	$	1,668	$	1,667	$	1,671	$	1,672	$	1	$	3	376,026	$	(1)	$	1,671	$	2
2010				1,843		1,809		1,819		1,819		1,820		1,819		1,817		1,817		1,815		(2)		1	422,639		(1)		1,814		-
2011						1,886		1,908		1,896		1,891		1,890		1,886		1,881		1,879		(2)		1	412,893		(1)		1,878		-
2012								2,208		2,128		2,109		2,083		2,077		2,094		2,095		1		2	403,738		(2)		2,093		-
2013										1,887		1,816		1,803		1,782		1,780		1,776		(4)		3	334,879		(2)		1,774		1
2014												1,552		1,562		1,572		1,572		1,583		11		20	274,205		(12)		1,571		8
2015														1,511		1,498		1,494		1,483		(11)		13	259,543		(11)		1,472		2
2016																1,536		1,533		1,533		-		38	244,935		-		1,533		38
2017																		2,028		2,287		259		359	213,741		-		2,287		359
2018																				2,188				723	73,321		-		2,188		723
Total																			$	18,311	$	253				$	(30)		18,281
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(16,500)		-					-		(16,500)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				(73)		2					(2)		(75)
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	1,738	$	255				$	(32)		1,706

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	1,670	$	1,671	$	1,671	$	-
2010		1,816		1,816		1,814		(2)
2011		1,881		1,880		1,878		(2)
2012		2,088		2,091		2,093		2
2013		1,774		1,774		1,774		-
2014		1,564		1,564		1,571		7
2015		1,476		1,475		1,472		(3)
2016		1,536		1,533		1,533		-
2017		-		2,028		2,287		259
2018		-		-		2,188		-
Total	$	13,805	$	15,832	$	18,281	$	261
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						(16,500)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(77)		(75)		2
Unallocated loss adjustment expense prior year development						-		1
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	1,706	$	264

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	3	$	-	$	(1)	$	(1)
2010		(1)		(1)		(1)		-
2011		(5)		(1)		(1)		-
2012		11		(3)		(2)		1
2013		(8)		(6)		(2)		4
2014		(8)		(8)		(12)		(4)
2015		(22)		(19)		(11)		8
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(30)	$	(38)	$	(30)	$	8
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(2)		(2)		-
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(32)	$	8

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

	Years Ended December 31, (dollars in millions)
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	1,129	$	1,563	$	1,567	$	1,618	$	1,639	$	1,650	$	1,658	$	1,663	$	1,664	$	1,667	$	-
2010				1,205		1,669		1,736		1,772		1,794		1,803		1,808		1,810		1,812		-
2011						1,204		1,752		1,814		1,840		1,860		1,869		1,873		1,874		-
2012								1,238		1,936		1,996		2,035		2,065		2,079		2,085		-
2013										1,109		1,634		1,705		1,744		1,759		1,766		-
2014												959		1,380		1,463		1,507		1,536		-
2015														931		1,320		1,411		1,439		-
2016																857		1,344		1,422		-
2017																		941		1,672		-
2018																				1,227		-
Total																			$	16,500	$	-

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 2018, we recognized $255 million of adverse prior year development in US Personal Insurance driven largely by development on the California Wildfires and Hurricane Irma in 2017.

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, we recognized $32 million of favorable development mainly driven by accident and health business.

UK/Europe Casualty and Financial Lines

During 2018, we recognized $58 million of unfavorable prior year development in Europe Casualty and Financial Lines driven by greater frequency of large losses than expected.

During 2017, we recognized $507 million of unfavorable prior year development in UK/Europe Casualty and Financial Lines, net of external reinsurance, 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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2009	$	1,825	$	1,741	$	1,721	$	1,786	$	1,822	$	1,833	$	1,841	$	1,923	$	1,957	$	1,952	$	(5)	$	86	237,608
2010				1,421		1,376		1,383		1,403		1,330		1,365		1,330		1,399		1,404		5		66	275,528
2011						1,361		1,307		1,375		1,409		1,493		1,494		1,540		1,557		17		71	265,751
2012								1,183		1,153		1,108		1,172		1,209		1,185		1,245		60		78	219,045
2013										1,190		1,241		1,211		1,182		1,237		1,223		(14)		116	186,848
2014												1,262		1,247		1,279		1,289		1,242		(47)		252	177,454
2015														1,321		1,484		1,514		1,514		-		453	191,382
2016																1,538		1,686		1,754		68		565	227,036
2017																		1,558		1,530		(28)		871	241,031
2018																				1,518				1,118	212,169
Total																			$	14,939	$	56
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(8,529)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				612		1
Unallocated loss adjustment expense prior year development																						1
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	7,022	$	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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	Unaudited
2009	$	180	$	430	$	689	$	924	$	1,088	$	1,220	$	1,383	$	1,519	$	1,621	$	1,680
2010				139		395		606		775		909		1,003		1,069		1,124		1,148
2011						133		362		543		779		923		1,063		1,177		1,242
2012								115		320		464		642		774		864		969
2013										100		363		525		676		823		954
2014												83		290		480		620		747
2015														83		285		501		671
2016																145		427		671
2017																		108		322
2018																				125
Total																			$	8,529

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

Reserving Process and Methodology

UK/Europe is our largest non-U.S. region for Liability and Financial Lines. UK/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 UK/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 2018, we recognized $58 million of unfavorable prior year development in UK/Europe Casualty and Financial Lines driven by increased large loss activity in recent accident years, particularly related to directors and officers class action suits against insureds with global exposure; and increased severity in excess casualty.

During 2017 we recognized $507 million of unfavorable prior year development in UK/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 UK/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 UK/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 UK/Europe Casualty and Financial Lines was more than expected.

UK/Europe Property and Special Risks

During 2018, we recognized $22 million of favorable prior year development in the UK/Europe Property and Special Risks segment, net of external reinsurance.

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

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

	Years Ended December 31, (dollars in millions)																							December 31, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2009	$	1,244	$	1,090	$	1,060	$	1,009	$	992	$	986	$	971	$	973	$	970	$	950	$	(20)	$	4	46,280
2010				1,679		1,544		1,388		1,327		1,304		1,283		1,280		1,281		1,282		1		1	50,111
2011						1,416		1,339		1,225		1,191		1,161		1,150		1,151		1,145		(6)		8	50,560
2012								1,323		1,226		1,161		1,137		1,118		1,128		1,117		(11)		3	45,379
2013										1,460		1,450		1,340		1,320		1,310		1,304		(6)		(3)	44,711
2014												1,564		1,578		1,566		1,553		1,564		11		27	53,009
2015														1,729		1,685		1,698		1,676		(22)		40	58,471
2016																1,644		1,698		1,738		40		58	59,513
2017																		1,923		1,913		(10)		148	54,052
2018																				1,564				570	34,370
Total																			$	14,253	$	(23)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(11,305)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				40		3
Unallocated loss adjustment expense prior year development																						(2)
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	2,988	$	(22)

* 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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	Unaudited
2009	$	272	$	624	$	780	$	854	$	896	$	910	$	927	$	931	$	933	$	935
2010				413		900		1,077		1,168		1,207		1,236		1,245		1,252		1,258
2011						339		778		969		1,045		1,068		1,085		1,094		1,101
2012								280		725		917		985		1,031		1,057		1,066
2013										334		839		1,079		1,158		1,209		1,229
2014												336		972		1,270		1,345		1,385
2015														402		1,035		1,335		1,449
2016																475		1,178		1,442
2017																		396		1,098
2018																				342
Total																			$	11,305

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

Reserving Process and Methodology

UK/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. UK/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 UK/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 2018, we recognized $22 million of favorable prior year development in the Europe Property and Special Risks segment driven by favorable development across most accident years with some adverse development in accident years 2014 and 2016.

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.

UK/Europe and Japan Personal Insurance

During 2018, we recognized $116 million of favorable prior year development in UK/Europe and Japan Personal Insurance, net of external reinsurance.

During 2017, we recognized $58 million of favorable prior year development in UK/Europe and Japan Personal Insurance, net of external reinsurance, 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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2009	$	3,037	$	2,979	$	2,973	$	2,992	$	2,980	$	2,976	$	2,971	$	2,972	$	2,973	$	2,971	$	(2)	$	2	1,606,155
2010				2,945		2,993		2,994		2,982		2,983		2,977		3,005		3,009		3,007		(2)		5	1,819,899
2011						3,241		3,301		3,267		3,269		3,258		3,262		3,261		3,261		-		5	1,777,851
2012								2,856		2,838		2,819		2,804		2,813		2,814		2,811		(3)		8	1,730,053
2013										2,705		2,706		2,671		2,672		2,669		2,663		(6)		12	1,736,129
2014												2,668		2,677		2,660		2,651		2,643		(8)		19	1,792,742
2015														2,738		2,714		2,702		2,694		(8)		38	1,771,419
2016																2,690		2,656		2,643		(13)		83	1,791,483
2017																		2,631		2,548		(83)		170	1,691,824
2018																				3,089				641	1,636,511
Total																			$	28,330	$	(125)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(26,111)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				45		9
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	2,264	$	(116)

* 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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	Unaudited
2009	$	1,714	$	2,491	$	2,732	$	2,840	$	2,894	$	2,923	$	2,939	$	2,951	$	2,957	$	2,959
2010				1,690		2,480		2,723		2,833		2,889		2,924		2,943		2,954		2,961
2011						1,971		2,766		2,999		3,111		3,174		3,203		3,219		3,228
2012								1,596		2,335		2,562		2,668		2,724		2,754		2,770
2013										1,483		2,217		2,432		2,537		2,593		2,623
2014												1,457		2,194		2,413		2,523		2,579
2015														1,478		2,235		2,456		2,574
2016																1,478		2,199		2,416
2017																		1,446		2,156
2018																				1,845
Total																			$	26,111

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

Reserving Process and Methodology

UK/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 UK/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 UK/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 2018, we recognized $116 million of favorable prior year development in UK/Europe and Japan Personal Insurance due to favorable emergence on catastrophes, accident and health business, and personal auto business.

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

U.S. Run-Off Long Tail Insurance Lines

During 2018, the U.S. Run-Off Long Tail Insurance Lines experienced favorable prior year development of $4 million, net of external reinsurance.

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

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

	Years Ended December 31, (dollars in millions)																							December 31, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2009	$	553	$	532	$	544	$	579	$	635	$	602	$	599	$	580	$	576	$	584	$	8	$	76	16,251
2010				640		528		534		557		585		582		611		565		559		(6)		52	8,530
2011						534		542		576		641		676		685		700		687		(13)		83	7,816
2012								629		678		741		786		751		752		702		(50)		49	4,070
2013										482		533		589		570		528		511		(17)		51	2,547
2014												379		475		453		459		383		(76)		76	2,346
2015														439		523		550		503		(47)		85	2,357
2016																294		285		274		(11)		53	1,646
2017																		197		238		41		147	640
2018																				76				35	282
Total																			$	4,517	$	(171)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(3,256)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				3,574		154
Unallocated loss adjustment expense prior year development																						13
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	4,835	$	(4)

* 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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	Unaudited
2009	$	42	$	134	$	231	$	286	$	368	$	409	$	429	$	447	$	461	$	472
2010				57		149		243		321		404		435		455		464		473
2011						21		140		259		385		449		532		549		559
2012								86		194		286		414		481		498		525
2013										87		154		261		321		368		390
2014												21		96		185		233		262
2015														35		132		238		320
2016																53		140		163
2017																		13		59
2018																				33
Total																			$	3,256

* 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 2018, the U.S. Run-Off Long Tail Insurance Lines recognized $4 million of favorable prior year development with adverse development on pre-1986 pollution business offset by favorable development in Excess Auto Liability, Environmental, and Healthcare Lines.

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 2018, we recognized no change on the retained portion of asbestos claims. The development on the portion of the asbestos business ceded to NICO was unfavorable by $96 million on a gross basis, but had no net impact. For environmental, we recognized $150 million in unfavorable prior year development as a result of adverse claim emergence and top-down actuarial analyses performed during the year.

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.

Excess Workers’ Compensation

We did not recognize any material development in this segment during 2018, 2017 or 2016. The proactive management of settlement negotiations and other claims mitigation strategies minimized the volatility observed during this period.

Other Casualty Run-Off

During 2018, prior year development was favorable by $154 million driven by favorable emergence on runoff excess trucking, Environmental and Healthcare segments and other runoff lines.

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 during 2016 to reflect updated assumptions about future loss development. The 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.

The table below presents the reconciliation of change in net ultimates from tables above to prior year development for the year ended December 31, 2018:


	Change in Loss and Loss Adjustment Expenses Net Ultimate^(a)		Re-Attribution of ADC Recovery^(b)		Amortization of Deferred Gain at Inception		Prior Year Development

(in millions)
U.S. Workers' Compensation	$	(498)	$	589	$	(73)	$	18
U.S. Excess Casualty		762		(370)		(56)		336
U.S. Other Casualty		58		(26)		(51)		(19)
U.S. Financial Lines		355		(109)		(37)		209
U.S. Property and Special risks		(401)		(69)		(13)		(483)
U.S. Personal Insurance		264		(14)		(2)		248
UK/Europe Casualty and Financial lines		63		-		-		63
UK/Europe Property and Special risks		(24)		-		-		(24)
UK/Europe and Japan Personal Insurance		(116)		-		-		(116)
U.S. Run-Off Long Tail Insurance Lines		(4)		-		-		(4)
Other product lines		136		(1)		(1)		134
Subtotal, adjusted pre-tax basis	$	595	$	-	$	(233)	$	362

Remove benefit of Retroactive Reinsurance
Amortization of deferred gain at inception								233
Prior year development ceded under the Asbestos LPT								96
Prior year development ceded under the ADC								738
Total, prior years, excluding discount and amortization of deferred gain							$	1,429

Change in net ultimate loss and LAE excludes the portion of prior year development for which we have ceded to the Asbestos Loss Portfolio Transfer (LPT) and the Adverse Development Cover (ADC), both of which are provided by NICO and are considered retroactive reinsurance under US GAAP. Amounts shown exclude $30 million of pre-acquisition prior year development from Validus. Validus' pre-acquisition development is included in the 10-year triangles shown above but is not included in AIG's financial results.
Reattribution of the ADC recovery takes place annually as we model the future payments on the subject reserves covered by the ADC to determine when the aggregate payments will exceed the attachment. ADC recoverables are then reallocated by line based on payments expected to be made after attachment point is exceeded.

Prior Year Development before 2009

The previous development tables include only accident years 2009 to 2018. The following table summarizes (favorable) unfavorable development, of incurred losses and loss adjustment expenses for accident year 2008 and prior by operating segment and major class of business:

Years Ended December 31,
(in millions)		2018		2017		2016
2008 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)	$	153	$	(7)	$	1,164
U.S. Excess casualty		537		164		72
U.S. Other casualty		129		(8)		398
U.S. Financial lines		(1)		(34)		54
U.S. Property and Special risks		39		11		6
U.S. Personal Insurance		2		9		(16)
UK/Europe Casualty and Financial lines		1		169		(9)
UK/Europe Property and Special risks		3		(6)		(1)
UK/Europe and Japan Personal Insurance		9		3		(4)
U.S. Run-Off Long Tail Insurance lines (before discount)		154		(44)		372
All Other including unallocated loss adjustment expenses		137		178		(7)
Total prior year unfavorable development	$	1,163	$	435	$	2,029

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	13.9	%	17.3	%	12.4	%	8.9	%	7.3	%	5.0	%	3.7	%	2.7	%	2.1	%	2.4	%
U.S. Excess casualty	0.5		6.4		11.3		13.9		12.1		11.2		8.7		10.5		2.6		6.1
U.S. Other casualty	9.6		15.8		15.7		15.0		12.1		8.4		5.9		5.8		2.2		0.8
U.S. Financial lines	4.3		17.8		21.4		16.8		13.6		8.7		5.4		3.5		2.1		1.6
U.S. Property and Special risks	29.5		33.6		13.3		8.3		5.4		3.7		1.5		1.1		0.7		0.2
U.S. Personal Insurance	58.6		28.9		3.8		2.1		1.3		0.5		0.3		0.2		0.1		0.1
UK/Europe Casualty and Financial lines	8.1		16.0		13.5		12.6		10.0		8.1		7.2		5.0		3.5		3.0
UK/Europe Property and Special risks	25.7		38.6		16.8		6.5		3.3		1.8		1.0		0.5		0.3		0.2
UK/Europe and Japan Personal Insurance	56.9		26.9		8.0		3.9		2.0		1.0		0.6		0.3		0.2		0.1
U.S. Run-Off Long Tail Insurance lines	13.0		18.7		17.2		14.3		10.8		6.3		3.4		2.0		2.0		1.9

Discounting of Loss Reserves

At December 31, 2018, the loss reserves reflect a net loss reserve discount of $2.0 billion, including tabular and non-tabular calculations based upon the following assumptions:

Certain asbestos claims are 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 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. In 2012, for Pennsylvania companies, the statute has specified 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 $603 million of tabular discount and $1.4 billion of non-tabular discount for workers’ compensation for 2018. During the years ended December 31, 2018, 2017, and 2016 the benefit/(charge) from changes in discount of $371 million, ($187) million and $422 million, respectively, were recorded as part of the policyholder benefits and losses incurred in the Condensed Consolidated Statement of Income.

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

	December 31, 2018						December 31, 2017
		North America						North America
		Commercial		Legacy				Commercial		Legacy
(in millions)		Insurance		Portfolio		Total		Insurance		Portfolio		Total
U.S. workers' compensation	$	2,782	$	973	$	3,755	$	2,465	$	918	$	3,383
Retroactive reinsurance		(1,720)		-		(1,720)		(1,539)		-		(1,539)
Total reserve discount^*	$	1,062	$	973	$	2,035	$	926	$	918	$	1,844

* Excludes $163 million and $173 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2018 and 2017, respectively.

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

Years Ended December 31,	2018						2017						2016
		North						North						North
		America						America						America
		Commercial		Legacy				Commercial		Legacy				Commercial		Legacy
(in millions)	Insurance			Portfolio		Total	Insurance			Portfolio		Total	Insurance			Portfolio		Total
Current accident year	$	119	$	-	$	119	$	114	$	-	$	114	$	177	$	-	$	177
Accretion and other
adjustments to prior
year discount		(108)		(58)		(166)		(186)		(44)		(230)		287		64		351
Effect of interest rate
changes		305		113		418		(46)		(25)		(71)		(58)		(48)		(106)
Net reserve discount
benefit (charge)		316		55		371		(118)		(69)		(187)		406		16		422
Change in discount on loss
reserves ceded under
retroactive reinsurance		(180)		-		(180)		(1,539)		-		(1,539)		-		-		-
Net change in total
reserve discount^*		136		55		191		(1,657)		(69)		(1,726)		406		16		422

* Excludes $(9) million and $8 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2018 and 2017, respectively.

During 2018, effective interest rates increased due to an increase in the forward yield curve component of the discount rates reflecting an incline in U.S. Treasury rates along with the changes in payout pattern assumptions. This resulted in an increase in the loss reserve discount by $418 million in 2018.

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 in U.S. Treasury rates along with 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.

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 securities available for sale and prior to 2018, equity securities at fair value, 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 14.6 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 0.3 percent to 10.0 percent at December 31, 2018, 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 securities available for sale and prior to 2018, equity securities at fair value 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)		2018		2017
Policyholder contract deposits:
Fixed Annuities	$	49,695	$	49,979
Group Retirement		41,212		40,422
Life Insurance		12,829		12,448
Variable and Index Annuities		24,378		19,690
Institutional Markets		9,497		8,077
Legacy Portfolio		4,651		4,986
Total Policyholder contract deposits	$	142,262	$	135,602

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 securities available for sale and also, prior to 2018, equity securities at fair value 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 1.7 percent of gross insurance in force at December 31, 2018 and 2.4 percent of gross domestic premiums and other considerations in 2018. 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, 2018

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 (GMDB) or guaranteed minimum withdrawal benefits (GMWB) 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 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 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)		2018		2017
Equity funds	$	43,059	$	48,594
Bond funds		7,231		7,793
Balanced funds		24,100		27,656
Money market funds		787		730
Total	$	75,177	$	84,773

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,	2018				2017
		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	$	89	$	15	$	99	$	17
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)		2018		2017		2016
Balance, beginning of year	$	352	$	402	$	491
Reserve increase (decrease)		93		(14)		(32)
Benefits paid		(43)		(42)		(57)
Changes in reserves related to unrealized appreciation of investments		(5)		6		-
Balance, end of year	$	397	$	352	$	402

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 $1.9 billion and $2.0 billion at December 31, 2018 and 2017, respectively.

For a 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 $41 billion and $45 billion at December 31, 2018 and 2017, 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 $215 million and $450 million at December 31, 2018 and 2017, 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, 2018

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, 2018 and 2017. The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2018, including fixed and variable-rates:

				Balance at		Balance at
At December 31, 2018	Range of	Maturity		December 31,		December 31,
(in millions)	Interest Rate(s)	Date(s)			2018		2017
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	0% - 8.13%		2019 - 2097	$	20,853	$	20,339
Junior subordinated debt	4.88% - 8.63%		2037 - 2058		1,548		841
AIG Japan Holdings Kabushiki Kaisha	0.28% - 0.44%		2020 - 2021		331		334
Validus notes and bonds payable	8.88%		2040		359		-
AIGLH notes and bonds payable	6.63% - 7.50%		2025 - 2029		282		281
AIGLH junior subordinated debt	7.57% - 8.50%		2030 - 2046		361		361
Total AIG general borrowings					23,734		22,156
AIG borrowings supported by assets:^(a)
MIP notes payable					-		356
Series AIGFP matched notes and bonds payable	2.69% - 2.75%		2046 - 2047		21		21
GIAs, at fair value	0.5% - 7.62%		2019 - 2053		2,164		2,707
Notes and bonds payable, at fair value	0.5% - 9.97%		2030 - 2040		49		181
Total AIG borrowings supported by assets					2,234		3,265
Total debt issued or guaranteed by AIG					25,968		25,421
Debt not guaranteed by AIG:
Other subsidiaries notes, bonds, loans and
mortgages payable	2.68% - 4.73%		2019 - 2024		168		190
Debt of consolidated investments^(b)	0% - 10.3%		2019 - 2067		8,404		6,029
Total debt not guaranteed by AIG					8,572		6,219
Total long term debt				$	34,540	$	31,640

(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 $1.5 billion and $2.0 billion at December 31, 2018 and December 31, 2017, 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, 2018, includes debt of consolidated investment vehicles related to real estate investments of $3.7 billion, affordable housing partnership investments of $1.8 billion and other securitization vehicles of $2.9 billion. 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.

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 $8.4 billion of debt of consolidated investments:

December 31, 2018			Year Ending
(in millions)		Total		2019		2020		2021		2022		2023		Thereafter
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	$	20,853	$	999	$	1,344	$	1,497	$	1,509	$	1,599	$	13,905
Junior subordinated debt		1,548		-		-		-		-		-		1,548
AIG Japan Holdings Kabushiki Kaisha		331		-		114		217		-		-		-
Validus notes and bonds payable		359		-		-		-		-		-		359
AIGLH notes and bonds payable		282		-		-		-		-		-		282
AIGLH junior subordinated debt		361		-		-		-		-		-		361
Total AIG general borrowings		23,734		999		1,458		1,714		1,509		1,599		16,455
AIG borrowings supported by assets:
MIP notes payable		-		-		-		-		-		-		-
Series AIGFP matched notes and
bonds payable		21		-		-		-		-		-		21
GIAs, at fair value		2,164		272		31		157		48		115		1,541
Notes and bonds payable, at fair value		49		-		-		-		-		-		49
Total AIG borrowings supported by assets		2,234		272		31		157		48		115		1,611
Total debt issued or guaranteed by AIG		25,968		1,271		1,489		1,871		1,557		1,714		18,066
Other subsidiaries notes, bonds, loans
and mortgages payable		168		117		1		42		1		1		6
Total	$	26,136	$	1,388	$	1,490	$	1,913	$	1,558	$	1,715	$	18,072

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

		Uncollateralized		Collateralized
At December 31, 2018		Notes/Bonds/Loans		Loans and
(in millions)		Payable		Mortgages Payable		Total
AIG general borrowings	$	331	$	-	$	331
Other subsidiaries notes, bonds, loans and mortgages payable^*		2		166		168
Total	$	333	$	166	$	499

* AIG does not guarantee any of these borrowings.

AIGLH Junior Subordinated Debentures

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, 2018, 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, 2018				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, 2018

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.

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 lease office space and equipment in various locations across jurisdictions in which the Company operates. Rent expense was $283 million, $269 million and $331 million for the years ended December 31, 2018, 2017 and 2016, respectively.

The following table presents the future minimum lease payments under operating leases at December 31, 2018:

(in millions)
2019	$	249
2020		185
2021		121
2022		87
2023		63
Remaining years after 2023		182
Total	$	887

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 $6.0 billion at December 31, 2018.

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, 2018 was $85 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 of AIG Life Holdings, Inc. (AIGLH), see Note 25 to the Consolidated Financial Statements.

EQUITY

12 Months Ended

Dec. 31, 2018

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, 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
Year Ended December 31, 2018
Shares, beginning of year	1,906,671,492	(1,007,626,835)	899,044,657
Shares issued	-	4,091,922	4,091,922
Shares repurchased	-	(36,527,150)	(36,527,150)
Shares, end of year	1,906,671,492	(1,040,062,063)	866,609,429

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 declaration date, record date, payment date and dividends paid per share on AIG Common Stock:

				Dividends Paid
Declaration Date	Record Date	Payment Date		Per Share
October 31, 2018	December 12, 2018	December 26, 2018	$	0.32
August 2, 2018	September 17, 2018	September 28, 2018		0.32
May 2, 2018	June 14, 2018	June 28, 2018		0.32
February 8, 2018	March 15, 2018	March 29, 2018		0.32

November 2, 2017	December 8, 2017	December 22, 2017		0.32
August 2, 2017	September 15, 2017	September 29, 2017		0.32
May 3, 2017	June 14, 2017	June 28, 2017		0.32
February 14, 2017	March 15, 2017	March 29, 2017		0.32

November 2, 2016	December 8, 2016	December 22, 2016		0.32
August 2, 2016	September 15, 2016	September 29, 2016		0.32
May 2, 2016	June 13, 2016	June 27, 2016		0.32
February 11, 2016	March 14, 2016	March 28, 2016		0.32

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)		2018		2017		2016
Aggregate repurchases of common stock	$	1,739	$	6,275	$	11,460
Total number of common shares repurchased		37		100		201
Aggregate repurchases of warrants	$	11	$	3	$	309
Total number of warrants repurchased^*		1		-		17

* 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 increase of $2.5 billion to its previous share repurchase authorization. As of December 31, 2018, approximately $512 million 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									Fair Value of
	(Depreciation) of Fixed			Unrealized						Liabilities Under
	Maturity Securities on			Appreciation		Foreign		Retirement		Fair Value Option
	Which Other-Than-			(Depreciation)		Currency		Plan		Attributable to
	Temporary Credit			of All Other		Translation		Liabilities		Changes in
(in millions)	Impairments Were Taken			Investments		Adjustments		Adjustment		Own Credit Risk		Total
Balance, January 1, 2016, 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
Cumulative effect of change in
accounting principles		169		(285)		(284)		(183)		7		(576)
Change in unrealized depreciation
of investments		(1,320)		(8,688)		-		-		-		(10,008)
Change in deferred policy acquisition costs
adjustment and other		(57)		1,300		-		-		-		1,243
Change in future policy benefits		-		1,711		-		-		-		1,711
Change in foreign currency translation adjustments		-		-		(314)		-		-		(314)
Change in net actuarial loss		-		-		-		(23)		-		(23)
Change in prior service credit		-		-		-		(4)		-		(4)
Change in deferred tax asset (liability)		377		702		(35)		55		-		1,099
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		3		3
Total other comprehensive income (loss)		(1,000)		(4,975)		(349)		28		3		(6,293)
Noncontrolling interests		-		7		2		-		-		9
Balance, December 31, 2018, net of tax	$	(38)	$	2,426	$	(2,725)	$	(1,086)	$	10	$	(1,413)

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

The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2018, 2017 and 2016:

		Unrealized Appreciation								Fair Value of
		(Depreciation) of Fixed		Unrealized						Liabilities Under
		Maturity Securities on		Appreciation		Foreign		Retirement		Fair Value Option
		Which Other-Than-		(Depreciation)		Currency		Plan		Attributable to
		Temporary Credit		of All Other		Translation		Liabilities		Changes in
(in millions)		Impairments Were Taken		Investments		Adjustments		Adjustment		Own Credit Risk		Total
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 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

December 31, 2018
Unrealized change arising during period	$	(1,372)	$	(5,811)	$	(314)	$	(61)	$	3	$	(7,555)
Less: Reclassification adjustments
included in net income		5		(134)		-		(34)		-		(163)
Total other comprehensive income (loss),
before income tax benefit		(1,377)		(5,677)		(314)		(27)		3		(7,392)
Less: Income tax expense (benefit)		(377)		(702)		35		(55)		-		(1,099)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(1,000)	$	(4,975)	$	(349)	$	28	$	3	$	(6,293)

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)	2018			2017		2016	Consolidated Statements of Income
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments	$	5	$	50	$	123	Other realized capital gains
Total		5		50		123
Unrealized appreciation (depreciation) of all other investments
Investments		(134)		463		935	Other realized capital gains
Deferred acquisition costs adjustment		-		305		293	Amortization of deferred policy acquisition costs
Future policy benefits		-		-		-	Policyholder benefits and losses incurred
Total		(134)		768		1,228
Change in retirement plan liabilities adjustment
Prior-service credit		1		5		15	*
Actuarial losses		(35)		(100)		(186)	*
Total		(34)		(95)		(171)
Total reclassifications for the year	$	(163)	$	723	$	1,180

* 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, 2018

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)		2018		2017		2016
Numerator for EPS:
Income (loss) from continuing operations	$	103	$	(6,060)	$	(259)
Less: Net income from continuing operations attributable to noncontrolling interests		67		28		500
Income (loss) attributable to AIG common shareholders from continuing operations		36		(6,088)		(759)
Income (loss) from discontinued operations, net of income tax expense		(42)		4		(90)
Net loss attributable to AIG common shareholders	$	(6)	$	(6,084)	$	(849)
Denominator for EPS:
Weighted average shares outstanding — basic		898,405,537		930,561,286		1,091,085,131
Dilutive shares		11,735,705		-		-
Weighted average shares outstanding — diluted^(a)(b)		910,141,242		930,561,286		1,091,085,131
Income (loss) per common share attributable to AIG:
Basic:
Income (loss) from continuing operations	$	0.04	$	(6.54)	$	(0.70)
Loss from discontinued operations	$	(0.05)	$	-	$	(0.08)
Loss attributable to AIG	$	(0.01)	$	(6.54)	$	(0.78)
Diluted:
Income (loss) from continuing operations	$	0.04	$	(6.54)	$	(0.70)
Loss from discontinued operations	$	(0.05)	$	-	$	(0.08)
Loss attributable to AIG	$	(0.01)	$	(6.54)	$	(0.78)

(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 19.6 million, 1.7 million and 0.2 million for the years ended December 31, 2018, 2017 and 2016, 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, 2018

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)		2018		2017		2016
Years Ended December 31,
Statutory net income (loss)^(a)(b):
General Insurance companies:
Domestic	$	(1,138)	$	(978)	$	260
Foreign		(348)		(318)		(1,326)
Total General Insurance companies	$	(1,486)	$	(1,296)	$	(1,066)
Life and Retirement companies:
Domestic	$	673	$	1,066	$	2,252
Foreign		(596)		21		47
Total Life and Retirement companies	$	77	$	1,087	$	2,299
At December 31,
Statutory capital and surplus^(a)(b):
General Insurance companies:
Domestic	$	18,172	$	20,938
Foreign		16,447		11,721
Total General Insurance companies	$	34,619	$	32,659
Life and Retirement companies:
Domestic	$	9,477	$	12,149
Foreign		1,744		446
Total Life and Retirement companies	$	11,221	$	12,595
Aggregate minimum required statutory capital and surplus:
General Insurance companies:
Domestic	$	4,307	$	5,134
Foreign		9,065		6,301
Total General Insurance companies	$	13,372	$	11,435
Life and Retirement companies:
Domestic	$	3,197	$	3,146
Foreign		1,338		121
Total Life and Retirement companies	$	4,535	$	3,267

(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 2017 General Insurance companies and Life and Retirement companies statutory net income increased by $207 million and the 2017 General Insurance companies and Life and Retirement companies statutory capital and surplus decreased by $273 million, compared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2017, due to finalization of statutory filings.

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, 2018 and 2017, 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, 2018 and 2017, 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 2018, 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 $438 million and $407 million at December 31, 2018 and 2017, respectively.
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 $41.6 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, 2018.

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, 2018, 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 COMPENSATION PLANS

12 Months Ended

Dec. 31, 2018

SHARE-BASED COMPENSATION PLANS

SHARE-BASED COMPENSATION PLANS

20. Share-Based Compensation Plans

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

Years Ended December 31,
(in millions)		2018		2017		2016
Share-based compensation expense - pre-tax^(a)	$	337	$	353	$	237
Share-based compensation expense - after tax^(b)		266		229		154

(a) We recognized $48 million, $141 million and $105 million for immediately vested stock-settled awards issued to retirement eligible employees in 2018, 2017 and 2016, on their respective grant dates. It is our policy to reverse compensation expense for forfeited awards when they occur.

(b) We also recognized $9 million of excess tax benefits due to share settlements occurring in 2018.

Employee Plans

The Company sponsors several stock compensation programs under the AIG Long Term Incentive Plan and its predecessor plan, the AIG 2013 Long Term Incentive Plan (each as applicable, the LTIP), which are governed by the AIG 2013 Omnibus Incentive Plan (Omnibus Plan). Our share-settled awards are settled with previously acquired shares held in AIG’s treasury.

AIG 2013 Omnibus Incentive Plan

The Omnibus Plan, which replaced the AIG 2010 Stock Incentive Plan (2010 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 2018, performance share units (PSUs), restricted stock units (RSUs), stock options and deferred stock units (DSUs) (collectively, units) were granted under the Omnibus Plan and 37,211,710 shares are available for future grants as of December 31, 2018. 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 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 that may be comprised of PSUs, RSUs and/or stock options.

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 and 2018 awards or zero to 150 percent of the target for the 2014 through 2016 awards, depending on AIG’s performance relative to a specified peer group or against pre-established financial goals, as applicable.

RSUs and stock options are earned based solely on continued service by the participant.

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 fair value of time-vesting RSUs as well as PSUs that are earned based on certain company-specific metrics was based on the closing price of AIG Common Stock on the grant date; while the fair value of PSUs that are earned based on AIG’s relative total shareholder return (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
Expected dividend yield^(a)	2.37	%	2.17	%
Expected volatility^(b)	17.58	%	24.55	%
Risk-free interest rate^(c)	2.00	%	1.30	%

(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 the LTI awards by issuing time-vesting RSUs and canceling some performance based units. The modification applied to most recipients who participate in the 2015, 2016 and 2017 LTI awards, excluding the Company’s senior executives. The newly granted RSUs 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, $48 million in 2018 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, 2018^(b)	2018 LTI	2017 LTI	2016 LTI	2015 LTI	2014 LTI	2018 LTI		2017 LTI		2016 LTI		2015 LTI		2014 LTI
Unvested, beginning of year	-	2,173,115	1,467,745	1,291,788	823,311	$	-	$	62.78	$	60.90	$	60.02	$	48.81
Granted	4,640,722	43,792	-	-	-		55.47		58.52		-		-		-
Vested^(c)	(1,205,653)	(530,388)	(728,576)	(266,184)	(793,955)		55.85		63.67		60.28		57.87		48.81
Forfeited	(113,041)	(106,524)	(98,509)	(753,272)	(29,356)		55.92		63.13		62.13		54.46		48.84
Unvested, end of year^(d)	3,322,028	1,579,995	640,660	272,332	-	$	55.32	$	62.32	$	61.55	$	60.51	$	-

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

(b) Except for the 2014 LTI and 2015 LTI awards, 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, 2018, the total unrecognized compensation cost for outstanding RSUs and PSUs was $215 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 0.96 year and 2 years.

Stock Options

Stock options were issued in 2018 as part of the 2018 LTI awards and in 2017 and 2018 to certain newly hired senior executives. The fair value of the options was 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

	2018		2017
Expected annual dividend yield^(a)	2.32	%	2.03	%
Expected volatility^(b)	23.29	%	20.96	%
Risk-free interest rate^(c)	2.83	%	1.94	%
Expected term^(d)	4.50 - 6.47	years	4.5	years

(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 implied volatility of 24 months stock option estimated by the Bloomberg Professional service as of the valuation date.

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

(d) The contractual terms are 7 and 10 years.

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, 2018	Units		Exercise Price	Contractual Life		(in millions)
Outstanding, beginning of year	2,500,000	$	62.90		6.48
Granted	2,752,098		55.38
Exercised	-		-
Forfeited or expired	(46,299)		55.94
Outstanding, end of year	5,205,799	$	58.99		7.38	$	-
Exercisable, end of year	486,229	$	59.90		4.07	$	-

The weighted average grant-date fair value of stock options granted during 2018 was $11.08. As of December 31, 2018, we recognized $26.4 million of expense, while $24 million was unrecognized and is expected to be amortized up to 2.75 years.

Other RSU Grants

We granted 1,385,929 off-cycle time-vesting RSUs in 2018 primarily pertaining to replacement awards granted to Validus employees. We recognized $43.3 million of expense related to these RSU grants in 2018. Total unrecognized compensation cost related to these grants was $57 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 1.14 years and 4.25 years at December 31, 2018.

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 2018, 2017 and 2016 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 2018, 2017 and 2016, we granted to non-employee directors 39,092, 32,067 and 41,974 DSUs, respectively, under the 2013 Plan, and recognized expense of $2.1 million, $2.0 million and $2.4 million, respectively.

EMPLOYEE BENEFITS

12 Months Ended

Dec. 31, 2018

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)		2018		2017		2018		2017		2018		2017		2018		2017
Change in projected benefit obligation:
Benefit obligation, beginning of year	$	5,091	$	4,948	$	1,202	$	1,246	$	190	$	196	$	63	$	80
Service cost		5		11		22		29		1		2		1		3
Interest cost		162		166		16		16		6		6		2		3
Actuarial (gain) loss		(383)		372		(28)		(29)		(10)		-		(14)		(2)
Benefits paid:
AIG assets		(16)		(19)		(9)		(10)		(15)		(13)		(1)		(1)
Plan assets		(306)		(161)		(32)		(26)		-		-		-		-
Plan amendment		-		-		3		-		-		-		-		(6)
Curtailments		-		-		-		(7)		-		-		-		-
Settlements		-		(226)		(5)		(12)		-		-		-		-
Foreign exchange effect		-		-		(31)		37		-		-		(1)		1
Other		-		-		-		(42)		-		(1)		-		(15)
Projected benefit obligation, end of year	$	4,553	$	5,091	$	1,138	$	1,202	$	172	$	190	$	50	$	63
Change in plan assets:
Fair value of plan assets, beginning
of year	$	4,350	$	3,843	$	875	$	803	$	-	$	-	$	-	$	-
Actual return on plan assets, net of expenses		(204)		584		6		67		-		-		-		-
AIG contributions		16		329		51		60		15		13		1		1
Benefits paid:
AIG assets		(16)		(19)		(9)		(10)		(15)		(13)		(1)		(1)
Plan assets		(306)		(161)		(32)		(26)		-		-		-		-
Settlements		-		(226)		(5)		(12)		-		-		-		-
Foreign exchange effect		-		-		(25)		19		-		-		-		-
Other		-		-		-		(26)		-		-		-		-
Fair value of plan assets, end of year	$	3,840	$	4,350	$	861	$	875	$	-	$	-	$	-	$	-
Funded status, end of year	$	(713)	$	(741)	$	(277)	$	(327)	$	(172)	$	(190)	$	(50)	$	(63)
Amounts recognized in the balance
sheet:
Assets	$	-	$	-	$	72	$	68	$	-	$	-	$	-	$	-
Liabilities		(713)		(741)		(349)		(395)		(172)		(190)		(50)		(63)
Total amounts recognized	$	(713)	$	(741)	$	(277)	$	(327)	$	(172)	$	(190)	$	(50)	$	(63)
Pre-tax amounts recognized in Accumulated
other comprehensive income:
Net gain (loss)	$	(1,450)	$	(1,373)	$	(149)	$	(170)	$	26	$	17	$	3	$	(11)
Prior service (cost) credit		-		-		(23)		(22)		-		1		3		5
Total amounts recognized	$	(1,450)	$	(1,373)	$	(172)	$	(192)	$	26	$	18	$	6	$	(6)

* Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $250 million and $272 million for the U.S. at December 31, 2018 and 2017, respectively, and $201 million and $211 million for the non-U.S at December 31, 2018 and 2017, respectively.

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

At December 31,
(in millions)		2018		2017
U.S. pension benefit plans	$	4,553	$	5,091
Non-U.S. pension benefit plans	$	1,125	$	1,188

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)		2018		2017		2018		2017		2018		2017		2018		2017
Projected benefit obligation	$	4,553	$	5,091	$	994	$	1,054	$	4,553	$	5,091	$	943	$	991
Accumulated benefit obligation		4,553		5,091		932		979		4,553		5,091		932		979
Fair value of plan assets		3,840		4,350		594		596		3,840		4,350		594		596

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)		2018		2017		2016		2018		2017		2016		2018		2017		2016		2018		2017		2016
Components of net periodic benefit
cost:
Service cost^*	$	5	$	11	$	19	$	22	$	29	$	31	$	1	$	2	$	2	$	1	$	3	$	3
Interest cost		162		166		181		16		16		21		6		6		7		2		3		3
Expected return on assets		(283)		(266)		(292)		(25)		(24)		(26)		-		-		-		-		-		-
Amortization of prior service cost (credit)		-		-		-		2		-		-		(1)		(1)		(12)		(2)		(1)		-
Amortization of net (gain) loss		28		26		25		7		12		7		-		(1)		(1)		1		1		1
Net periodic benefit cost (credit)		(88)		(63)		(67)		22		33		33		6		6		(4)		2		6		7
Curtailment gain		-		-		-		-		(6)		(6)		-		-		(1)		-		(2)		-
Settlement charges		-		60		149		-		1		2		-		-		-		-		-		-
Net benefit cost (credit)	$	(88)	$	(3)	$	82	$	22	$	28	$	29	$	6	$	6	$	(5)	$	2	$	4	$	7
Total recognized in Accumulated other
comprehensive income (loss)	$	(77)	$	32	$	(82)	$	20	$	87	$	(101)	$	9	$	(2)	$	(7)	$	12	$	9	$	1
Total recognized in net periodic benefit
cost and other comprehensive
income (loss)	$	11	$	35	$	(164)	$	(2)	$	59	$	(130)	$	3	$	(8)	$	(2)	$	10	$	5	$	(6)

* 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 $38 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 gain 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 $5 million and $45 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 $24 million and $45 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, 2018
Discount rate	4.22	%			1.71	%	4.17	%		4.12	%
Rate of compensation increase	N/A		^(b)		2.27	%	N/A			3.00	%
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	%

(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,	2018	2017
Following year:
Medical (before age 65)	5.93%	6.12%
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)		2018		2017		2018		2017
U.S. plans	$	4	$	4	$	(3)	$	(4)
Non-U.S. plans	$	10	$	14	$	(8)	$	(10)

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, 2018
Discount rate	3.61	%		1.60	%	3.53	%		3.59	%
Rate of compensation increase	N/A			2.27	%	N/A			3.00	%
Expected return on assets	6.75	%		2.78	%	N/A			N/A
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

* 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, 2018 and 2017, which resulted in a single discount rate that would produce the same liability at the respective measurement dates. The discount rates were 4.22 percent at December 31, 2018 and 3.61 percent at December 31, 2017. 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 52 percent and 50 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2018 and 2017, respectively. The weighted average discount rate of 0.72 percent and 0.66 percent at December 31, 2018 and 2017, 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, 2018 or 2017.

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. The investment strategy is focused on de-risking the Plan via regular monitoring through liability driven investing and 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 2019 based on the plan’s funded status at December 31, 2018:

	Target		Actual		Actual
At December 31,	2019		2018		2017
Asset class:
Equity securities	26	%	25	%	45	%
Fixed maturity securities	60	%	47	%	36	%
Other investments	14	%	28	%	19	%
Total	100	%	100	%	100	%

The expected long-term rate of return for the plan was 6.75 percent and 7.0 percent for 2018 and 2017, respectively. 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,	2019		2018		2017
Asset class:
Equity securities	30	%	35	%	49	%
Fixed maturity securities	51	%	37	%	32	%
Other investments	18	%	17	%	13	%
Cash and cash equivalents	1	%	11	%	6	%
Total	100	%	100	%	100	%

The assets of AIG’s Japan pension plans represent approximately 59 percent and 56 percent of total non-U.S. assets at December 31, 2018 and 2017, respectively. The expected long term rate of return was 2.22 percent and 2.43 percent, for 2018 and 2017, 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 2.78 percent and 2.92 percent for the years ended December 31, 2018 and 2017, 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, 2018
Assets:
Cash and cash equivalents	$	501	$	-	$	-	$	501	$	97	$	-	$	-	$	97
Equity securities:
U.S.^(a)		240		-		-		240		-		-		-		-
International^(b)		137		-		-		137		218		84		-		302
Fixed maturity securities:
U.S. investment grade^(c)		-		1,463		13		1,476		-		-		-		-
International investment grade^(c)		-		157		-		157		-		130		-		130
U.S. and international high yield^(d)		-		96		-		96		-		185		-		185
Mortgage and other asset-backed
securities^(e)		-		36		-		36		-		-		-		-
Other fixed maturity securities		-		-		-		-		-		2		-		2
Other investment types^(g):
Futures		27		-		-		27		-		-		-		-
Direct private equity^(f)		-		-		14		14		-		-		-		-
Insurance contracts		-		18		-		18		-		-		145		145
Total	$	905	$	1,770	$	27	$	2,702	$	315	$	401	$	145	$	861
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

(a) Includes passive and active U.S. equity strategies.

(b) Includes passive and active international equity strategies.

(c) Includes 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) Represents investments in collateralized loan obligations. As of December 31, 2017, the plan held additional asset-backed securities.

(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 $1,138 million and $777 million at December 31, 2018 and 2017, 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, 2018.

The U.S. pension plan holds a group annuity contract with U.S. Life, one of our subsidiaries, which totaled $18 million and $20 million at December 31, 2018 and 2017, 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, 2018		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	$	12	$	(2)	$	5	$	(3)	$	-	$	-	$	1	$	-	$	13	$	1
Direct private equity		15		(2)		3		(2)		-		-		-		-		14		(1)
Total	$	27	$	(4)	$	8	$	(5)	$	-	$	-	$	1	$	-	$	27	$	-
Non-U.S. Plan Assets:
Insurance contracts		113		31		1		-		-		-		-		-		145		-
Total	$	113	$	31	$	1	$	-	$	-	$	-	$	-	$	-	$	145	$	-

																				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:
Insurance contracts		108		4		1		-		-		-		-		-		113		-
Total	$	108	$	4	$	1	$	-	$	-	$	-	$	-	$	-	$	113	$	-

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, 2018 and 2017.

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, 2018, we had no material 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 2019 is expected to be approximately $79 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
2019	$	274	$	77	$	13	$	1
2020		270		42		13		1
2021		281		41		13		1
2022		279		41		13		1
2023		276		42		13		2
2024-2028		1,361		245		56		10

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 $210 million, $209 million and $236 million in 2018, 2017 and 2016, respectively.

OWNERSHIP	12 Months Ended
OWNERSHIP	Dec. 31, 2018
OWNERSHIP
OWNERSHIP	22. Ownership A Schedule 13G/A filed on February 14, 2019 reports aggregate ownership of 47,237,956 shares, or approximately 5.5 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2018, by Capital Research Global Investors, a division of Capital Research and Management Company. A Schedule 13G/A filed on February 11, 2019 reports aggregate ownership of 67,664,554 shares, or approximately 7.8 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2018, by The Vanguard Group, Inc. and various subsidiaries thereof. A Schedule 13G/A filed on February 11, 2019 reports aggregate ownership of 64,768,700 shares, or approximately 7.5 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2018, 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, 2018

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 reduced the statutory rate of U.S. federal corporate income tax to 21 percent and enacted numerous other changes impacting AIG and the insurance industry.

During December 2017, the SEC staff issued Staff Accounting Bulletin 118 (SAB 118), which provided guidance on accounting for the tax effects of the Tax Act. SAB 118 addressed 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 was required to 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.

At December 31, 2017, we originally recorded 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. Our provisional estimate of $6.7 billion was based in part on a reasonable estimate of the effects of the statutory income tax rate reduction on existing deferred tax balances and of certain provisions of the Tax Act. We filed our 2017 consolidated U.S. income tax return and have completed our review of the primary impact of the Tax Act provisions on our deferred taxes. As a result, we consider the accounting for the effects of the rate change on deferred tax balances to be complete and no material measurement period changes were recorded for this item. As further guidance is issued by the U.S. tax authority, any resulting changes in our estimates will be treated in accordance with the relevant accounting guidance.

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 payments to affiliated foreign companies. There are substantial uncertainties in the interpretation of BEAT and GILTI and while certain formal guidance was issued by the U.S. tax authority, there are still aspects of the Tax Act that remain unclear and additional guidance is expected in 2019. Such guidance may result in changes to the interpretations and assumptions we made and actions we may take, which may impact amounts recorded with respect to international provisions of the Tax Act, possibly materially. Consistent with accounting guidance, we treat BEAT as a period tax charge in the period the tax is incurred and have made an accounting policy election to treat GILTI taxes in a similar manner.

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 of certain of our foreign subsidiaries. We were able to reasonably estimate the deemed repatriation tax and originally recorded a provisional estimated tax benefit of $38 million at December 31, 2017. We have completed our review of post-1986 earnings and profits of our foreign affiliates. Incorporating additional IRS guidance issued with respect to the deemed repatriation tax, as well as the relevant basis adjustments, we recognized a measurement period tax charge of $62 million. The effect of the deemed repatriation tax, which has been determined to be complete, resulted in a liability of $24 million.

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, these changes give rise to new deferred tax liabilities. At December 31, 2017, we recorded a provisional estimate of $1.9 billion with respect to such deferred tax liabilities. This increase in deferred tax liabilities was 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.

As of December 31, 2018, we have completed our review of the tax reserve computations for both life and general insurance companies, and recorded offsetting decreases of $1.4 billion to both our deferred tax liabilities and deferred tax assets.

Provisions Impacting Projections of Taxable Income and Valuation Allowance Considerations

During 2018, we completed our review of the impact of the Tax Act on our forecasts of taxable income, made certain assumptions related to interpretation of relevant new rules, and incorporated guidance issued by the U.S. tax authority. While the prescribed SAB 118 measurement period has ended, there are still certain aspects of the Tax Act that remain unclear, including the complex interplay of the new tax rules with the rules governing the utilization of our tax attributes, and formal guidance from the U.S. tax authority is still pending. We will continue to review the impact of any additional guidance issued by the U.S. tax authority on our valuation allowance analysis in accordance with the relevant accounting guidance. Accordingly, as of December 31, 2018, we consider the determination of the need for a valuation allowance related to the Tax Act to be complete based on our analysis of existing tax law and relevant tax guidance, and no measurement period adjustment was recorded.

Tax effects for which no estimate can be determined

At December 31, 2017, our accounting for the following elements of the Tax Act was 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. At December 31, 2017, the information needed to determine a provisional estimate was not available (such as for interest deduction limitations in those entities and the changed definition of a U.S. Shareholder), and accordingly, no provisional estimates were recorded. We have since completed our review of these investments and partnerships. We consider the accounting for this item to be complete and no measurement period change was recorded.

At December 31, 2017, due to minimal formal guidance issued by state and local jurisdictions, provisional estimates were not recorded for the impact of any state and local corporate income tax implications of the Tax Act. Guidance from state and local jurisdictions has varied and most have not formally passed law specific to the treatment of the Tax Act. While we have not identified any material impact at this point in time, we continue to review any guidance issued by those states that have passed tax legislation related to the Tax Act and continue to work through the state and local corporate income tax implications of the Tax Act. We expect further guidance throughout 2019, and the impact, if any, will be recorded when the related guidance is issued. We consider the accounting for this item to be complete and no measurement period adjustment was recorded.

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 (AOCI) that arise due to the enactment of the Tax Act to retained earnings. We elected to early adopt the standard for the three-month period ended March 31, 2018. As a result of adopting this standard, we reclassified $248 million from AOCI to retained earnings. The amount reclassified includes stranded effects related to the change in the U.S. federal corporate income tax rate on the gross temporary differences and related valuation allowances.

We use an item-by-item approach to release the stranded or disproportionate income tax effects in AOCI related to our available-for-sale securities. Under this approach, a portion of the disproportionate tax effects is assigned to each individual security lot at the date the amount becomes lodged. When the individual securities are sold, mature, or are otherwise impaired on an other-than-temporary basis, the assigned portion of the disproportionate tax effect is reclassified from AOCI to income from continuing operations.

U.S. Tax Reform – SAB 118 Measurement Period Completion

As of December 31, 2018, we have completed our accounting for the tax effects of the Tax Act. Although the prescribed measurement period has ended, there are aspects of the Tax Act that remain unclear and additional guidance from the U.S. tax authority is pending. As further guidance is issued by the U.S. tax authority, any resulting changes in our estimates will be treated in accordance with the relevant accounting guidance.

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)		2018		2017		2016
U.S.	$	(12)	$	1,940	$	1,041
Foreign		269		(474)		(1,115)
Total	$	257	$	1,466	$	(74)

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

Years Ended December 31,
(in millions)		2018		2017		2016
Foreign and U.S. components of actual income tax expense:
U.S.:
Current	$	134	$	427	$	140
Deferred		(175)		6,865		(270)
Foreign:
Current		202		209		436
Deferred		(7)		25		(121)
Total	$	154	$	7,526	$	185

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:

	2018						2017							2016
		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	$	255	$	54	21.0	%	$	1,476	$	517		35.0	%	$	(159)	$	(56)	35.0	%
Adjustments:
Tax exempt interest				(37)	(14.5)					(111)		(7.5)					(178)	111.9
Uncertain tax positions				176	69.0					660		44.7					268	(168.6)
Reclassifications from accumulated
other comprehensive income				(72)	(28.2)					(184)		(12.5)					(132)	83.0
Dispositions of Subsidiaries				-	-					17		1.2					118	(74.2)
Tax Attribute Restoration				-	-					-		-					(164)	103.1
Non-controlling Interest				(1)	(0.4)					(7)		(0.5)					(81)	50.9
Non-deductible transfer pricing
charges				29	11.4					35		2.4					102	(64.2)
Dividends received deduction				(38)	(14.8)					(90)		(6.1)					(75)	47.2
Effect of foreign operations				44	17.3					69		4.7					234	(147.2)
Share-based compensation
payments excess tax deduction				(13)	(5.1)					(40)		(2.7)					-	-
State income taxes				10	3.9					(9)		(0.6)					23	(14.5)
Impact of Tax Act				62	24.3					6,687		453.0					-	-
Global intangible low-taxed income				21	8.2					-		-					-	-
Other				(102)	(40.0)					(58)		(3.9)					13	(8.2)
Effect of discontinued operations				40	15.7					3		0.2					35	(22.0)
Valuation allowance:
Continuing operations				21	8.2					43		2.9					83	(52.2)
Consolidated total amounts		255		194	76.0			1,476		7,532		510.3			(159)		190	(119.5)
Amounts attributable to discontinued
operations		(2)		40	NM			10		6		60.0			(85)		5	(5.9)
Amounts attributable to continuing
operations	$	257	$	154	59.9	%	$	1,466	$	7,526		513.4	%	$	(74)	$	185	(250.0)	%

For the year ended December 31, 2018, the effective tax rate on income from continuing operations was 59.9 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to a $62 million measurement period adjustment related to the deemed repatriation tax, $48 million net charge primarily related to the accrual of IRS interest (including interest related to uncertain tax positions), $44 million associated with the effect of foreign operations, $29 million of non-deductible transfer pricing charges, $21 million of additional U.S. taxes imposed on income of our foreign subsidiaries under international provisions of the Tax Act, and $21 million of valuation allowance activity related to certain foreign subsidiaries and state jurisdictions, partially offset by tax benefits of $75 million associated with tax exempt income, and $72 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 income and losses in our foreign operations taxed at statutory tax rates different than 21 percent and foreign income subject to U.S. taxation.

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.

As a result of the Tax Act, the majority of accumulated foreign earnings that were previously untaxed were 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, 2018, we consider our foreign earnings with respect to certain operations in Canada, South Africa, the Far East, Latin America, Bermuda as well as the European, Asia Pacific and Middle East regions to be indefinitely reinvested. These earnings relate to ongoing operations and have been reinvested in active business operations. While, following the enactment of the Tax Act, distributions from foreign affiliates are, generally, not subject to U.S. income tax, such distributions may be subject to non-U.S. withholding taxes. A deferred tax liability of approximately $100 million to $150 million related to such withholding taxes has not been recorded for those foreign subsidiaries whose earnings are considered to be indefinitely reinvested. Deferred taxes, if necessary, 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)		2018		2017
Deferred tax assets:
Losses and tax credit carryforwards	$	11,792	$	11,931
Basis differences on investments		2,038		2,133
Life policy reserves		2,200		1,996
Accruals not currently deductible, and other		608		532
Investments in foreign subsidiaries		173		159
Loss reserve discount		272		526
Loan loss and other reserves		-		34
Unearned premium reserve reduction		504		566
Fixed assets and intangible assets		531		442
Other		962		731
Employee benefits		604		601
Total deferred tax assets		19,684		19,651
Deferred tax liabilities:
Deferred policy acquisition costs		(2,342)		(2,313)
Unrealized gains related to available for sale debt securities		(490)		(2,151)
Loan loss and other reserves		(20)		-
Total deferred tax liabilities		(2,852)		(4,464)
Net deferred tax assets before valuation allowance		16,832		15,187
Valuation allowance		(1,780)		(1,374)
Net deferred tax assets (liabilities)	$	15,052	$	13,813

The following table presents our U.S. consolidated income tax group tax losses and credits carryforwards as of December 31, 2018.

December 31, 2018				Tax	Expiration
(in millions)		Gross		Effected	Periods
Net operating loss carryforwards	$	36,268	$	7,616	2028 - 2037
Capital loss carryforwards		82		17	2023
Foreign tax credit carryforwards				3,516	2019 - 2023
Other carryforwards				814	Various
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a tax return basis				11,963
Unrecognized tax benefit				(1,733)
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a U.S. GAAP basis^*			$	10,230

* Includes other carryforwards, i.e. general business credits of $30 million and refundable Alternative Minimum Tax Credits of $39 million on a U.S. GAAP basis.

We have U.S. federal consolidated net operating loss and tax credit carryforwards of approximately $10.2 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 our 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, 2018, 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 and any changes to interpretations and assumptions related to the impact of the Tax Act 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, 2018, recent changes in market conditions, including rising interest rates, impacted the unrealized tax gains and losses in the U.S. Life Insurance Companies’ available for sale securities portfolio, resulting in a deferred tax asset related to net unrealized tax capital losses. The deferred tax asset relates to the unrealized losses for which the carryforward period has not yet begun, and as such, when assessing its recoverability, we consider our ability and intent to hold the underlying securities to recovery. As of December 31, 2018, based on all available evidence, we concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses that are not more-likely-than-not to be realized. For the year ended December 31, 2018, we established $290 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.

For the year ended December 31, 2018, recent changes in market conditions, including rising interest rates, impacted the unrealized tax gains and losses in the U.S. Non-Life Companies’ available for sale securities portfolio, resulting in a decrease to the deferred tax liability related to net unrealized tax capital gains. As of December 31, 2018, 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.

For the year ended December 31, 2018, we recognized a net increase of $21 million in our deferred tax asset valuation allowance associated with certain foreign subsidiaries and state jurisdictions, primarily attributable to current year activity.

The following table presents the net deferred tax assets (liabilities) at December 31, 2018 and 2017 on a U.S. GAAP basis:

December 31,
(in millions)		2018		2017
Net U.S. consolidated return group deferred tax assets	$	15,479	$	15,603
Net deferred tax assets (liabilities) in accumulated other comprehensive income		(510)		(2,070)
Valuation allowance		(405)		(86)
Subtotal		14,564		13,447
Net foreign, state and local deferred tax assets		2,031		1,874
Valuation allowance		(1,374)		(1,288)
Subtotal		657		586
Subtotal - Net U.S., foreign, state and local deferred tax assets		15,221		14,033
Net foreign, state and local deferred tax liabilities		(169)		(220)
Total AIG net deferred tax assets (liabilities)	$	15,052	$	13,813

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

At December 31, 2018 and 2017, our U.S. consolidated income tax group had net deferred tax assets after valuation allowance of $14.6 billion and $13.4 billion, respectively. At December 31, 2018 and 2017, our U.S. consolidated income tax group had valuation allowances of $405 million and $86 million, respectively.

Deferred Tax ASSET — Foreign, State and Local

At December 31, 2018 and 2017, we had net deferred tax assets (liabilities) of $488 million and $366 million, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns.

At December 31, 2018 and 2017, we had deferred tax asset valuation allowances of $1.4 billion and $1.3 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 2013.

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)		2018		2017		2016
Gross unrecognized tax benefits, beginning of year	$	4,707	$	4,530	$	4,331
Increases in tax positions for prior years		14		210		235
Decreases in tax positions for prior years		(6)		(33)		(39)
Increases in tax positions for current year		-		-		3
Lapse in statute of limitations		-		-		-
Settlements		(6)		-		-
Activity of discontinued operations		-		-		-
Gross unrecognized tax benefits, end of year	$	4,709	$	4,707	$	4,530

At December 31, 2018, 2017 and 2016, our unrecognized tax benefits, excluding interest and penalties, were $4.7 billion, $4.7 billion and $4.5 billion, respectively. The activity for the year ended December 31, 2018 is not material. The activity for the years ended December 31, 2017 and 2016, 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 increases are the result of consideration of court decisions upholding the disallowance of foreign tax credits claimed by other corporate entities not affiliated with AIG. In addition, the year ended December 31, 2017 reflects 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, 2018, 2017 and 2016, 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 $38 million, $28 million and $66 million, respectively. Accordingly, at December 31, 2018, 2017 and 2016, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $4.7 billion, $4.7 billion and $4.4 billion, respectively.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At December 31, 2018, 2017, and 2016, we had accrued liabilities of $2.2 billion, $2.0 billion, and $1.2 billion, respectively, for the payment of interest (net of the federal benefit) and penalties. For the years ended December 31, 2018, 2017, and 2016, we accrued expense of $190 million, $776 million and $26 million, respectively, for the payment of interest and penalties. The activity for the period ended December 31, 2017, 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, 2018	Open Tax Years
Major Tax Jurisdiction
United States	2000-2017
Australia	2014-2017
France	2017-2018
Japan	2012-2017
Korea	2013-2017
Singapore	2014-2017
United Kingdom	2017-2018

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 31, 2018

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)		2018		2017		2018		2017		2018		2017		2018		2017
Total revenues	$	11,712	$	12,632	$	11,631	$	12,502	$	11,486	$	11,751	$	12,560	$	12,635
Income (loss) from continuing
operations before income taxes^*		1,227		1,727		1,252		1,667		(1,527)		(2,803)		(695)		875
Income (loss) from discontinued
operations, net of income taxes		(1)		-		-		8		(39)		(1)		(2)		(3)
Net income (loss)		949		1,211		931		1,118		(1,259)		(1,713)		(560)		(6,672)
Net income (loss) from
continuing operations attributable
to noncontrolling interests		11		26		(6)		(12)		-		26		62		(12)
Net income (loss) attributable to AIG^*	$	938	$	1,185	$	937	$	1,130	$	(1,259)	$	(1,739)	$	(622)	$	(6,660)
Income (loss) per common share
attributable to AIG:
Basic:
Income (loss) from continuing
operations	$	1.03	$	1.21	$	1.04	$	1.21	$	(1.37)	$	(1.91)	$	(0.70)	$	(7.33)
Income (loss) from discontinued
operations	$	-	$	-	$	-	$	0.01	$	(0.04)	$	-	$	(0.70)	$	-
Diluted:
Income (loss) from continuing
operations	$	1.01	$	1.18	$	1.02	$	1.18	$	(1.37)	$	(1.91)	$	(0.70)	$	(7.33)
Income (loss) from discontinued
operations	$	-	$	-	$	-	$	0.01	$	(0.04)	$	-	$	(0.70)	$	-
Weighted average shares
outstanding:
Basic	907,951,597		980,777,243		903,215,488		925,751,084		895,237,359		908,667,044		887,508,718		908,115,499
Diluted	925,266,577		1,005,315,030		916,572,481		948,248,771		895,237,359		908,667,044		887,508,718		908,115,499
Noteworthy quarterly items -
(income) expense:
Other-than-temporary
impairments		87		68		36		67		35		88		93		37
Net (gain) loss on sale of
divested businesses		(8)		100		(25)		60		(2)		13		(3)		(241)
Federal and foreign valuation
allowance for deferred tax assets		30		(13)		7		(8)		5		24		(21)		40
Net (gain) loss on extinguishment of
debt		4		(1)		5		(4)		1		1		(3)		(1)
Prior year unfavorable (favorable)
development		(40)		61		(26)		391		949		901		546		212
Restructuring and other costs		24		181		200		47		35		31		136		154
Impact of Tax Act		-		-		-		-		62		-		-		6,687

* For the three-month period ended December 31, 2018, our results include out of period adjustments relating to prior periods that decreased Net income attributable to AIG by $87 million, and decreased Income from continuing operations before income taxes by $132 million. The out of period adjustments for the three-month period are primarily related to decreases in Premiums and decreases in Net realized capital gains and losses. We determined that these adjustments were not material to the current quarter or to any previously reported quarterly financial statements. Had these adjustments been recorded in their appropriate periods, Net income attributable to AIG for the three-month period ended September 30, 2018 would have decreased by $40 million with no impact to the three-month periods ended June 30, 2018 and March 31, 2018, respectively.

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

12 Months Ended

Dec. 31, 2018

Schedule II Condensed Financial Information of Registrant - Parent Company Only

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		Validus					Reclassifications
		Group, Inc.		Holdings,				Other		and	Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
December 31, 2018
Assets:
Short-term investments^(a)	$	1,141	$	2	$	-	$	10,329	$	(1,798)	$	9,674
Other investments^(b)		3,377		-		-		301,158		-		304,535
Total investments		4,518		2		-		311,487		(1,798)		314,209
Cash		2		9		9		2,853		-		2,873
Loans to subsidiaries^(c)		34,963		-		-		615		(35,578)		-
Investment in consolidated subsidiaries^(c)		33,300		4,029		26,321		-		(63,650)		-
Other assets, including deferred income taxes^(d)		15,389		1,798		124		159,430		(1,839)		174,902
Total assets	$	88,172	$	5,838	$	26,454	$	474,385	$	(102,865)	$	491,984
Liabilities:
Insurance liabilities	$	-	$	-	$	-	$	293,652	$	-	$	293,652
Long-term debt		22,422		359		643		11,116		-		34,540
Other liabilities, including intercompany balances^(b)		8,774		228		144		100,974		(3,637)		106,483
Loans from subsidiaries^(c)		615		-		-		34,963		(35,578)		-
Total liabilities		31,811		587		787		440,705		(39,215)		434,675
Total AIG shareholders’ equity		56,361		5,251		25,667		32,732		(63,650)		56,361
Non-redeemable noncontrolling interests		-		-		-		948		-		948
Total equity		56,361		5,251		25,667		33,680		(63,650)		57,309
Total liabilities and equity	$	88,172	$	5,838	$	26,454	$	474,385	$	(102,865)	$	491,984

December 31, 2017
Assets:
Short-term investments^(a)	$	2,541	$	-	$	-	$	11,559	$	(3,714)	$	10,386
Other investments^(b)		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^(c)		35,004		-		-		517		(35,521)		-
Investment in consolidated subsidiaries^(c)		40,135		-		30,359		-		(70,494)		-
Other assets, including deferred income taxes^(d)		16,016		-		170		159,594		(2,133)		173,647
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^(b)		12,458		-		143		112,275		(6,028)		118,848
Loans from subsidiaries^(c)		517		-		-		35,004		(35,521)		-
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

(a) At December 31, 2018, includes restricted cash of $124 million and $18 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively. At December 31, 2017, includes restricted cash of $4 million and $54 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively.

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

(d) At December 31, 2018, includes restricted cash of $1 million and $342 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively. At December 31, 2017, includes restricted cash of $1 million and $316 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively.

Condensed Consolidating Statements of Income (Loss)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2018
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	(580)	$	(240)	$	2,847	$	-	$	(2,027)	$	-
Other income		938		23		1		46,506		(79)		47,389
Total revenues		358		(217)		2,848		46,506		(2,106)		47,389
Expenses:
Interest expense		954		18		50		302		(15)		1,309
Loss on extinguishment of debt		-		-		-		7		-		7
Other expenses		803		27		3		45,048		(65)		45,816
Total expenses		1,757		45		53		45,357		(80)		47,132
Income (loss) from continuing operations before income tax
expense (benefit)		(1,399)		(262)		2,795		1,149		(2,026)		257
Income tax expense (benefit)		(1,433)		-		39		1,548		-		154
Income (loss) from continuing operations		34		(262)		2,756		(399)		(2,026)		103
Loss from discontinued operations, net
of income taxes		(40)		-		-		(2)		-		(42)
Net income (loss)		(6)		(262)		2,756		(401)		(2,026)		61
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		67		-		67
Net income (loss) attributable to AIG	$	(6)	$	(262)	$	2,756	$	(468)	$	(2,026)	$	(6)
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
(Gain) 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 (loss) from continuing operations
attributable to noncontrolling interests		-		-		-		28		-		28
Net income (loss) attributable to AIG	$	(6,084)	$	-	$	1,929	$	(113)	$	(1,816)	$	(6,084)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
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
(Gain) 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 from continuing operations
attributable to noncontrolling interests		-		-		-		500		-		500
Net income (loss) attributable to AIG	$	(849)	$	-	$	(238)	$	(1,228)	$	1,466	$	(849)

* Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income (Loss)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2018
Net income (loss)	$	(6)	$	(262)	$	2,756	$	(401)	$	(2,026)	$	61
Other comprehensive income (loss)		(6,302)		-		2,508		12,298		(14,797)		(6,293)
Comprehensive income (loss)		(6,308)		(262)		5,264		11,897		(16,823)		(6,232)
Total comprehensive income attributable to
noncontrolling interests		-		-		-		76		-		76
Comprehensive income (loss) attributable to AIG	$	(6,308)	$	(262)	$	5,264	$	11,821	$	(16,823)	$	(6,308)
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)

Condensed Consolidating Statements of Cash Flows

		American
		International		Validus					Reclassifications
		Group, Inc.		Holdings,				Other		and	Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2018
Net cash (used in) provided by operating activities	$	1,256	$	656	$	2,445	$	1,651	$	(5,947)	$	61
Cash flows from investing activities:
Sales of investments		5,587		13		-		59,918		(3,206)		62,312
Sales of divested businesses, net		-		-		-		10		-		10
Purchase of investments		(1,980)		-		-		(59,778)		3,206		(58,552)
Loans to subsidiaries – net		868		-		-		(90)		(778)		-
Contributions from (to) subsidiaries - net		1		-		-		-		(1)		-
Acquisition of businesses, net of cash and
restricted cash acquired		(5,475)		112		-		(354)		-		(5,717)
Net change in short-term investments		1,533		-		-		(9)		-		1,524
Other, net		(73)		-		-		273		-		200
Net cash (used in) provided by investing activities		461		125		-		(30)		(779)		(223)
Cash flows from financing activities:
Issuance of long-term debt		2,470		-		-		2,264		-		4,734
Repayments of long-term debt		(1,493)		(350)		-		(1,829)		-		(3,672)
Purchase of common stock		(1,739)		-		-		-		-		(1,739)
Intercompany loans - net		90		-		-		(868)		778		-
Cash dividends paid		(1,138)		(6)		(2,456)		(3,485)		5,947		(1,138)
Other, net		212		(416)		-		2,812		1		2,609
Net cash (used in) provided by financing activities		(1,598)		(772)		(2,456)		(1,106)		6,726		794
Effect of exchange rate changes on cash and
restricted cash		-		-		-		(11)		-		(11)
Change in cash and restricted cash		119		9		(11)		504		-		621
Cash and restricted cash at beginning of year		8		-		20		2,709		-		2,737
Cash and restricted cash at end of year	$	127	$	9	$	9	$	3,213	$	-	$	3,358

Year Ended December 31, 2017
Net cash (used in) provided by operating activities	$	36	$	-	$	1,413	$	(6,659)	$	(2,608)	$	(7,818)
Cash flows from investing activities:
Sales of investments		5,821		-		-		74,477		(3,758)		76,540
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 short-term investments		1,994		-		-		104		-		2,098
Other, net		(183)		-		(5)		(1,955)		-		(2,143)
Net cash (used in) provided by investing activities		7,852		-		(5)		8,902		(2,708)		14,041
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) provided by financing activities		(7,883)		-		(1,422)		(1,708)		5,316		(5,697)
Effect of exchange rate changes on cash and
restricted cash		-		-		-		(29)		-		(29)
Change in cash and restricted cash		5		-		(14)		506		-		497
Cash and restricted cash at beginning of year		3		-		34		2,070		-		2,107
Change in cash of businesses held for sale		-		-		-		133		-		133
Cash and restricted cash at end of year	$	8	$	-	$	20	$	2,709	$	-	$	2,737

		American
		International		Validus					Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2016
Net cash (used in) provided by operating activities	$	2,112	$	-	$	1,707	$	3,634	$	(3,951)	$	3,502
Cash flows from investing activities:
Sales of investments		5,769		-		-		80,453		(11,685)		74,537
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 short-term investments		(1,170)		-		-		(1,919)		-		(3,089)
Other, net		(141)		-		-		(879)		-		(1,020)
Net cash (used in) provided by investing activities		8,778		-		-		(2,367)		(3,159)		3,252
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 and
restricted cash		-		-		-		55		-		55
Change in cash and restricted cash		(413)		-		(82)		471		-		(24)
Cash and restricted cash at beginning of year		416		-		116		1,706		-		2,238
Change in cash of businesses held for sale		-		-		-		(107)		-		(107)
Cash and restricted cash at end of year	$	3	$	-	$	34	$	2,070	$	-	$	2,107

Supplementary Disclosure of Condensed Consolidating Cash Flow Information

		American
		International		Validus					Reclassifications
		Group, Inc.		Holdings,				Other		and	Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2018
Cash	$	2	$	9	$	9	$	2,853	$	-	$	2,873
Restricted cash included in Short-term investments		124		-		-		18		-		142
Restricted cash included in Other assets		1		-		-		342		-		343
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	127	$	9	$	9	$	3,213	$	-	$	3,358
Cash (paid) received during the year ended
December 31, 2018 for:
Interest:
Third party	$	(914)	$	(17)	$	(48)	$	(333)	$	-	$	(1,312)
Intercompany		1		-		(1)		-		-		-
Taxes:
Income tax authorities	$	(32)	$	-	$	-	$	(122)	$	-	$	(154)
Intercompany		895		-		-		(895)		-		-

Year Ended December 31, 2017
Cash	$	3	$	-	$	20	$	2,339	$	-	$	2,362
Restricted cash included in Short-term investments		4		-		-		54		-		58
Restricted cash included in Other assets		1		-		-		316		-		317
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	8	$	-	$	20	$	2,709	$	-	$	2,737
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)		-		-

Year Ended December 31, 2016
Cash	$	2	$	-	$	34	$	1,832	$	-	$	1,868
Restricted cash included in Short-term investments		-		-		-		46		-		46
Restricted cash included in Other assets		1		-		-		192		-		193
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	3	$	-	$	34	$	2,070	$	-	$	2,107
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)		-		-

AMERICAN INTERNATIONAL GROUP, INC. (AS GUARANTOR) SUPPLEMENTARY DISCLOSURE OF NON-CASH ACTIVITIES:

Years Ended December 31,
(in millions)		2018		2017		2016
Intercompany non-cash financing and investing activities:
Capital contributions	$	2,369	$	259	$	3,245
Dividends received in the form of securities		745		735		5,234
Return of capital		2,706		26		-
Fixed maturity securities received in exchange for equity securities		-		-		440
Non-cash financing/investing activities:
Non-cash consideration received from sale of United Guaranty		-		-		1,101

Schedule I Summary of Investments - Other than Investments in Related Parties

12 Months Ended

Dec. 31, 2018

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, 2018						which shown in
(in millions)		Cost^(a)		Fair Value		the Balance Sheet
Fixed maturities:
U.S. government and government sponsored entities	$	5,835	$	5,925	$	5,925
Obligations of states, municipalities and political subdivisions		15,421		16,001		16,001
Non-U.S. governments		14,421		14,570		14,570
Public utilities		17,431		17,628		17,628
All other corporate debt securities		114,676		114,743		114,743
Mortgage-backed, asset-backed and collateralized		69,411		71,939		71,939
Total fixed maturity securities		237,195		240,806		240,806
Equity securities and mutual funds:
Common stock:
Public utilities		1		1		1
Banks, trust and insurance companies		784		784		784
Industrial, miscellaneous and all other		320		320		320
Total common stock		1,105		1,105		1,105
Preferred stock		13		13		13
Mutual funds		135		135		135
Total equity securities and mutual funds^(b)		1,253		1,253		1,253
Mortgage and other loans receivable, net of allowance		43,135		43,627		43,135
Other invested assets		19,938		19,341		19,341
Short-term investments, at cost (approximates fair value)		9,674		9,674		9,674
Derivative assets^(c)		916		916		916
Total investments	$	312,111	$	315,617	$	315,125

(a) Original cost of fixed maturities is reduced by other-than-temporary impairment charges and by repayments and adjusted for amortization of premiums or accretion of discounts.

(b) As a result of the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, equity securities are no longer classified and accounted for as available for sale securities.

Schedule II Condensed Financial Information of Registrant - Parent Company Only

12 Months Ended

Dec. 31, 2018

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)		2018		2017
Assets:
Short-term investments^(a)	$	1,141	$	2,541
Other investments		3,377		6,004
Total investments		4,518		8,545
Cash		2		3
Loans to subsidiaries^(b)		34,963		35,004
Due from affiliates - net^(b)		1,206		1,585
Intercompany tax receivable^(b)		3,053		3,058
Deferred income taxes		10,747		11,030
Investments in consolidated subsidiaries^(b)		33,300		40,135
Other assets^(c)		383		343
Total assets	$	88,172	$	99,703
Liabilities:
Due to affiliate^(b)	$	2,329	$	4,340
Intercompany tax payable^(b)		2,954		4,577
Deferred tax liabilities		-		-
Notes and bonds payable		20,853		20,339
Junior subordinated debt		1,548		841
MIP notes payable		-		356
Series AIGFP matched notes and bonds payable		21		21
Loans from subsidiaries^(b)		615		517
Other liabilities (includes intercompany derivative liabilities of $105 in 2018 and $63 in 2017)		3,491		3,541
Total liabilities		31,811		34,532
AIG Shareholders’ equity:
Common stock		4,766		4,766
Treasury stock		(49,144)		(47,595)
Additional paid-in capital		81,268		81,078
Retained earnings		20,884		21,457
Accumulated other comprehensive income		(1,413)		5,465
Total AIG shareholders’ equity		56,361		65,171
Total liabilities and equity	$	88,172	$	99,703

(a) At December 31, 2018 and 2017, included restricted cash of $124 million and $4 million, respectively.

(b) 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)		2018		2017		2016
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries^(a)	$	(5,160)	$	(2,375)	$	(8,633)
Dividend income from consolidated subsidiaries^(a)		4,580		2,226		7,364
Interest income^(b)		961		656		411
Net realized capital gains (losses)		(49)		46		2
Other income		26		189		103
Expenses:
Interest expense		954		949		988
Net loss on extinguishment of debt		-		2		77
Net (gain) loss on sale of divested businesses^(c)		3		30		(690)
Other expenses		800		922		985
Loss from continuing operations before income tax expense (benefit)		(1,399)		(1,161)		(2,113)
Income tax expense (benefit)		(1,433)		4,922		(1,301)
Net income (loss)		34		(6,083)		(812)
Loss from discontinued operations		(40)		(1)		(37)
Net income (loss) attributable to AIG Parent Company	$	(6)	$	(6,084)	$	(849)
(a) Eliminated in consolidation.
(b) Includes interest income on intercompany borrowings of $840 million, $512 million and $294 million on December 31, 2018, 2017 and 2016, 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)		2018		2017		2016
Net income	$	(6)	$	(6,084)	$	(849)
Other comprehensive income		(6,302)		2,235		693
Total comprehensive loss attributable to AIG	$	(6,308)	$	(3,849)	$	(156)

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)		2018		2017		2016
Net cash provided by operating activities	$	1,256	$	36	$	2,112
Cash flows from investing activities:
Sales and maturities of investments		5,587		5,714		5,598
Sales of divested businesses		-		40		2,160
Purchase of investments		(1,980)		(2,465)		(1,002)
Net change in short-term investments		1,533		1,994		(1,170)
Contributions to subsidiaries - net		1		2,446		1,637
Acquisition of business		(5,475)		-		-
Mortgage and other loan receivables - originations and purchases		-		-		(85)
Payments received on mortgages and other loan receivables		-		107		171
Loans to subsidiaries - net		868		199		1,525
Other, net		(73)		(183)		(56)
Net cash provided by investing activities		461		7,852		8,778
Cash flows from financing activities:
Issuance of long-term debt		2,470		1,505		3,831
Repayment of long-term debt		(1,493)		(1,724)		(1,996)
Cash dividends paid		(1,138)		(1,172)		(1,372)
Loans from subsidiaries - net		90		(63)		3
Purchase of Common Stock		(1,739)		(6,275)		(11,460)
Other, net		212		(154)		(309)
Net cash used in financing activities		(1,598)		(7,883)		(11,303)
Change in cash and restricted cash		119		5		(413)
Cash and restricted cash at beginning of year		8		3		416
Cash and restricted cash at end of year	$	127	$	8	$	3

Supplementary disclosure of cash flow information:
	Years Ended December 31,
(in millions)		2018		2017		2016
Cash	$	2		3		2
Restricted cash included in Short-term investments		124	$	4	$	-
Restricted cash included in Other assets		1		1		1
Total cash and restricted cash shown in Statements of Cash Flows — Parent Company Only	$	127	$	8	$	3

Cash (paid) received during the period for:
Interest:
Third party	$	(914)	$	(948)	$	(975)
Intercompany		1		-		2
Taxes:
Income tax authorities		(32)		(329)		(15)
Intercompany		895		614		479
Intercompany non-cash financing and investing activities:
Capital contributions		2,369		259		3,245
Return of capital		2,706		26		-
Dividends received in the form of securities		745		735		5,234
Fixed maturity securities received in exchange for equity securities		-		-		440
Non-cash financing/investing activities
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 2018 Annual Report on Form 10-K for the year ended December 31, 2018 (Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 15, 2019.

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.

Schedule III Supplementary Insurance Information

12 Months Ended

Dec. 31, 2018

Schedule III Supplementary Insurance Information

Schedule III Supplementary Insurance Information

Supplementary Insurance Information

											Schedule III

At December 31, 2018 and 2017

								Liability
								for Unpaid
								Losses and
								Loss
						Deferred		Adjustment				Policy
						Policy		Expenses,				and
						Acquisition		Future Policy		Unearned		Contract
Segment (in millions)						Costs		Benefits		Premiums		Claims
2018
General Insurance companies					$	2,890	$	113,696	$	19,235	$	14
Life and Retirement companies						9,804		13,431		13		843
Other^(a)						-		1,447		-		7
					$	12,694	$	128,574	$	19,248	$	864
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


For the years ended December 31, 2018, 2017 and 2016

						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)
2018
General Insurance	$	27,505	$	2,668	$	20,824	$	4,596	$	5,222	$	26,407
Life and Retirement		5,261		7,922		7,692		680		2,412		-
Other Operations^(a)		39		(439)		357		5		-		199
Legacy Operations		600		2,325		2,293		105		-		-
	$	33,405	$	12,476	$	31,166	$	5,386	$	7,634	$	26,606
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

(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, 2018

Schedule IV Reinsurance

Schedule IV Reinsurance

Reinsurance

									Schedule IV

At December 31, 2018, 2017 and 2016 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
2018
Long-duration insurance in force	$	1,094,774	$	228,846	$	300	$	866,228	-	%
Premiums:
General Insurance companies	$	30,335	$	7,755	$	4,026	$	26,606	15.1	%
Life and Retirement companies		3,488		850		405		3,043	13.3
Other		-		-		-		-	-
Total	$	33,823	$	8,605	$	4,431	$	29,649	14.9	%
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	%

Schedule V Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2018

Valuation and Qualifying Accounts [Abstract]

Schedule V Valuation and Qualifying Accounts

Valuation and Qualifying Accounts

														Schedule V

For the years ended December 31, 2018, 2017 and 2016

				Additions					Reclassified
		Balance,		Charged to					to Assets of
		Beginning		Costs and					Businesses			Divested		Other		Balance,
(in millions)		of year		Expenses		Charge Offs	Acquisitions		Held for Sale		Businesses			Changes^*		End of year
2018
Allowance for mortgage and
other loans receivable	$	322	$	93	$	(19)	$	-	$	-	$	-	$	1	$	397
Allowance for premiums and
insurances balances receivable		236		2		(20)		-		-		-		(2)		216
Allowance for reinsurance assets		187		(8)		(45)		8		-		-		(2)		140
Federal and foreign valuation
allowance for deferred tax assets		1,374		21		-		82		-		-		302		1,779
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

* 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, 2018
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; valuation of embedded derivatives for fixed index annuity and life 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 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, 2018

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Investments

Fixed Maturity and Equity Securities

Other Invested Assets Carried at Fair Value

Other Invested Assets – Equity Method Investments

Other Investments

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

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)		2018		2017		2016
Balance, beginning of year	$	526	$	1,098	$	1,747
Increases due to:
Credit impairments on new securities subject to impairment losses		59		122		204
Additional credit impairments on previously impaired securities		90		74		212
Reductions due to:
Credit impaired securities fully disposed for which there was no
prior intent or requirement to sell		(145)		(99)		(296)
Accretion on securities previously impaired due to credit^*		(530)		(669)		(767)
Divested businesses		-		-		(2)
Balance, end of year	$	-	$	526	$	1,098

Equity Securities

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, 2018 based on the results of the goodwill impairment test.

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

	General Insurance
	North				Life			Other		Legacy
(in millions)	America		International		Insurance		Operations		Portfolio			Total
Balance at January 1, 2016:
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:
Acquisitions		-		-		-		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
Increase (decrease) due to:
Acquisitions^*		2,332		157		46		9		-		2,544
Other		(12)		(48)		(5)		9		-		(56)
Balance at December 31, 2018:
Goodwill - gross		4,188		2,983		125		49		214		7,559
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill	$	2,924	$	847	$	125	$	49	$	137	$	4,082

Separate accounts

Long-Duration Contracts

Other liabilities

Foreign currency

Future Application of Accounting Standards

Leases

Financial Instruments - Credit Losses

Simplifying the Test for Goodwill Impairment

Premium Amortization on Purchased Callable Debt Securities

Derivatives and Hedging

Targeted Improvements to the Accounting for Long-Duration Contracts

Requires the review and if necessary update of future policy benefit assumptions at least annually for traditional and limited pay long duration contracts, with the recognition and separate presentation of any resulting re-measurement gain or loss (except for discount rate changes as noted below) in the income statement.
Requires the discount rate assumption to be updated at the end of each reporting period using an upper medium grade (low-credit risk) fixed income instrument yield that maximizes the use of observable market inputs and recognizes the impact of changes to discount rates in other comprehensive income.
Simplifies the amortization of deferred acquisition costs (DAC) to a constant level basis over the expected term of the related contracts with adjustments for unexpected terminations, but no longer requires an impairment test.
Requires the measurement of all market risk benefits associated with deposit (or account balance) contracts at fair value through the income statement with the exception of instrument-specific credit risk changes, which will be recognized in other comprehensive income.
Increased disclosures of disaggregated roll-forwards of policy benefits, account balances, market risk benefits, separate account liabilities and information about significant inputs, judgments and methods used in measurement and changes thereto and impact of those changes.

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Adopted

Accounting Standards Adopted During 2018

Revenue Recognition

Recognition and Measurement of Financial Assets and Financial Liabilities

Classification of Certain Cash Receipts and Cash Payments

Intra-Entity Transfers of Assets Other than Inventory

Restricted Cash

Gains and Losses from the Derecognition of Nonfinancial Assets

Improving the Presentation of Net Periodic Pension and Postretirement Benefit Cost

Modification of Share-Based Payment Awards

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

SEGMENT INFORMATION

Schedule of continuing operations by operating segment

				Net						Adjusted
		Total		Investment		Interest	Amortization			Pre-Tax
(in millions)		Revenues		Income		Expense		of DAC		Income (Loss)
2018
General Insurance
North America	$	14,619	$	2,305	$	-	$	1,859	$	(8)
International		15,554		363		-		2,737		(461)
Total General Insurance		30,173		2,668		-		4,596		(469)
Life and Retirement
Individual Retirement		5,338		3,827		82		630		1,681
Group Retirement		2,891		2,172		42		95		933
Life Insurance		4,007		1,137		25		(50)		330
Institutional Markets		1,900		786		13		5		246
Total Life and Retirement		14,136		7,922		162		680		3,190
Other Operations		636		45		1,066		10		(1,584)
Legacy Portfolio		3,039		2,325		30		105		213
AIG Consolidation and elimination		(171)		(232)		85		-		59
Total AIG Consolidated adjusted revenues and adjusted
pre-tax income	$	47,813	$	12,728	$	1,343	$	5,391	$	1,409
Reconciling Items from adjusted pre-tax income to
pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed
living benefits		(128)		(128)		-		-		(154)
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		-		-		(5)		6
Other income (expense) - net		(53)		-		-		-		-
Loss on extinguishment of debt		-		-		-		-		(7)
Net realized capital losses^*		(254)		(124)		(34)		-		(193)
Income from divested businesses		-		-		-		-		38
Non-operating litigation reserves and settlements		11		-		-		-		(19)
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		(675)
Net loss reserve discount benefit (charge)		-		-		-		-		371
Pension expense related to a one-time lump sum payment to
former employees		-		-		-		-		-
Integration and transaction costs associated with acquired businesses		-		-		-		-		(124)
Restructuring and other costs		-		-		-		-		(395)
Revenues and Pre-tax income (loss)	$	47,389	$	12,476	$	1,309	$	5,386	$	257
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:
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 (loss):
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)
Income 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 (loss)	$	52,367	$	14,065	$	1,260	$	4,521	$	(74)

Schedule of year-end identifiable assets and capital expenditures by legal entity

	Year-End Identifiable Assets				Capital Expenditures
(in millions)		2018		2017		2018		2017
General Insurance companies	$	110,007	$	114,841	$	171	$	239
Life and Retirement companies		247,219		289,457		94		88
Other		140,428		105,425		103		156
AIG Consolidation and Elimination		(5,670)		(11,422)		-		-
Total Assets	$	491,984	$	498,301	$	368	$	483

Schedule of entity's consolidated total revenues and real estate and other fixed assets by major geographic area

							Real Estate and Other Fixed Assets,
	Total Revenues^*						Net of Accumulated Depreciation
(in millions)		2018		2017		2016		2018		2017		2016
North America	$	31,003	$	34,149	$	36,871	$	1,479	$	1,630	$	1,326
International		16,386		15,371		15,496		693		892		1,334
Consolidated	$	47,389	$	49,520	$	52,367	$	2,172	$	2,522	$	2,660

* 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.

BUSINESS COMBINATION (Tables)

12 Months Ended

Dec. 31, 2018

BUSINESS COMBINATION

Identifiable Assets Acquired and Liabilities Assumed

(in millions)		July 18, 2018
Identifiable net assets:
Investments	$	6,613
Cash		330
Premiums and other receivables		2,130
Reinsurance assets		1,692
Value of business acquired*		298
Deferred income taxes		63
Other assets, including restricted cash of $93		1,008
Liability for unpaid claims and claims adjustment expense		(4,138)
Unearned premiums		(2,083)
Long-term debt		(1,106)
Other liabilities		(913)
Preference shares		(416)
Total identifiable net assets acquired		3,478
Cash consideration paid		5,475
Goodwill recognized from acquisition	$	1,997

* Reported in Deferred policy acquisition costs in the Consolidated Balance Sheet.

Pro Forma Income Statement Information

Years Ended December 31,
(in millions)		2018*		2017*
Total revenues	$	48,588	$	52,009
Net income (loss)		16		(6,104)
Net income (loss) attributable to AIG		(51)		(6,132)

Income (loss) per common share attributable to AIG:
Basic:
Net income (loss) attributable to AIG		(0.06)		(6.59)
Diluted:
Net income (loss) attributable to AIG		(0.06)		(6.59)

Identified Intangible Assets Acquired

			Estimated Weighted
(in millions, except years)		Fair Value	Average Useful Life
Definite lived intangibles
Value of distribution network acquired^(a)(b)	$	444	15 years
Value of business acquired^(c)		298	2 years
Indefinite lived intangibles^(a)
Syndicate capacity		193
Other		75
Total	$	1,010

(a) Reported in Other assets in the Consolidated Balance Sheet.

(b) Amortization is reported in General operating and other expenses in the Consolidated Statement of Income (Loss).

(c) Reported in Deferred policy acquisition costs in the Consolidated Balance Sheet and Amortization of deferred policy acquisition costs in the Consolidated Statement of Income (Loss).

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

December 31, 2018							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(a)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	53	$	3,207	$	-	$	-	$	-	$	3,260
Obligations of states, municipalities and political subdivisions		-		14,001		2,000		-		-		16,001
Non-U.S. governments		69		14,445		11		-		-		14,525
Corporate debt		-		129,836		864		-		-		130,700
RMBS		-		20,178		14,199		-		-		34,377
CMBS		-		11,784		917		-		-		12,701
CDO/ABS		-		8,725		9,102		-		-		17,827
Total bonds available for sale		122		202,176		27,093		-		-		229,391
Other bond securities:
U.S. government and government sponsored entities		11		2,654		-		-		-		2,665
Non-U.S. governments		-		45		-		-		-		45
Corporate debt		-		1,671		-		-		-		1,671
RMBS		-		424		1,290		-		-		1,714
CMBS		-		311		77		-		-		388
CDO/ABS		-		454		4,478		-		-		4,932
Total other bond securities		11		5,559		5,845		-		-		11,415
Equity securities ^(b)		1,213		13		27		-		-		1,253
Mortgage and other loans receivable		-		-		-		-		-		-
Other invested assets^(c)		-		341		587		-		-		928
Derivative assets:
Interest rate contracts		2		2,888		-		-		-		2,890
Foreign exchange contracts		-		1,159		5		-		-		1,164
Equity contracts		133		190		75		-		-		398
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		15		-		-		15
Counterparty netting and cash collateral		-		-		-		(1,713)		(1,840)		(3,553)
Total derivative assets		135		4,237		96		(1,713)		(1,840)		915
Short-term investments		2,416		599		-		-		-		3,015
Separate account assets		77,202		4,645		-		-		-		81,847
Other assets		-		-		58		-		-		58
Total	$	81,099	$	217,570	$	33,706	$	(1,713)	$	(1,840)	$	328,822
Liabilities:
Policyholder contract deposits	$	-	$	-	$	4,116	$	-	$	-	$	4,116
Derivative liabilities:
Interest rate contracts		4		2,004		15		-		-		2,023
Foreign exchange contracts		-		858		-		-		-		858
Equity contracts		12		3		-		-		-		15
Credit contracts		-		8		228		-		-		236
Other contracts		-		-		6		-		-		6
Counterparty netting and cash collateral		-		-		-		(1,713)		(187)		(1,900)
Total derivative liabilities		16		2,873		249		(1,713)		(187)		1,238
Long-term debt		-		2,213		-		-		-		2,213
Other liabilities		16		11		-		-		-		27
Total	$	32	$	5,097	$	4,365	$	(1,713)	$	(187)	$	7,594

December 31, 2017							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(a)		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
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^(c)		-		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
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

(a) 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,										(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Acquisitions		of Year		at End of Year
December 31, 2018
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,404	$	-	$	(152)	$	(66)	$	54	$	(240)	$	-	$	2,000	$	-
Non-U.S. governments		8		(9)		5		(1)		13		(5)		-		11		-
Corporate debt		1,173		(74)		(2)		(207)		780		(806)		-		864		-
RMBS		16,136		838		(300)		(2,424)		8		(66)		7		14,199		-
CMBS		624		23		(29)		207		111		(20)		1		917		-
CDO/ABS		8,651		40		(42)		(371)		1,783		(1,123)		164		9,102		-
Total bonds available
for sale		28,996		818		(520)		(2,862)		2,749		(2,260)		172		27,093		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		-
RMBS		1,464		56		-		(280)		50		-		-		1,290		(10)
CMBS		74		(2)		-		(5)		10		-		-		77		(5)
CDO/ABS		4,956		428		-		(905)		-		(9)		8		4,478		208
Total other bond securities		6,512		482		-		(1,208)		60		(9)		8		5,845		193
Equity securities^(a)		-		(2)		-		24		5		-		-		27		-
Mortgage and other loans
receivable		5		-		-		(5)		-		-		-		-		-
Other invested assets		250		47		2		288		-		-		-		587		71
Other assets		-		-		-		58		-		-		-		58		-
Total	$	35,763	$	1,345	$	(518)	$	(3,705)	$	2,814	$	(2,269)	$	180	$	33,610	$	264
				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Acquisitions		of Year		at End of Year
Liabilities:
Policyholder contract deposits	$	4,136	$	(334)	$	-	$	314	$	-	$	-	$	-	$	4,116	$	495
Derivative liabilities, net:
Interest rate contracts		22		(1)		-		(6)		-		-		-		15		1
Foreign exchange
contracts		-		(10)		-		5		-		-		-		(5)		3
Equity contracts		(82)		(22)		-		27		-		2		-		(75)		(35)
Credit contracts		262		(31)		-		(4)		-		-		-		227		31
Other contracts		(15)		(64)		-		70		-		-		-		(9)		62
Total derivative
liabilities, net^(b)		187		(128)		-		92		-		2		-		153		62
Long-term debt^(c)		-		-		-		-		-		-		-		-		-
Total	$	4,323	$	(462)	$	-	$	406	$	-	$	2	$	-	$	4,269	$	557

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		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,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		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 derivatives
liabilities, net^(b)		309		(184)		-		65		(3)		-		187		181
Long-term debt^(c)		71		16		-		(87)		-		-		-		-
Total	$	3,413	$	639	$	-	$	274	$	(3)	$	-	$	4,323	$	(318)

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

Changes in Level 3 recurring fair value measurements (Liabilities)

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Acquisitions		of Year		at End of Year
December 31, 2018
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,404	$	-	$	(152)	$	(66)	$	54	$	(240)	$	-	$	2,000	$	-
Non-U.S. governments		8		(9)		5		(1)		13		(5)		-		11		-
Corporate debt		1,173		(74)		(2)		(207)		780		(806)		-		864		-
RMBS		16,136		838		(300)		(2,424)		8		(66)		7		14,199		-
CMBS		624		23		(29)		207		111		(20)		1		917		-
CDO/ABS		8,651		40		(42)		(371)		1,783		(1,123)		164		9,102		-
Total bonds available
for sale		28,996		818		(520)		(2,862)		2,749		(2,260)		172		27,093		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		-
RMBS		1,464		56		-		(280)		50		-		-		1,290		(10)
CMBS		74		(2)		-		(5)		10		-		-		77		(5)
CDO/ABS		4,956		428		-		(905)		-		(9)		8		4,478		208
Total other bond securities		6,512		482		-		(1,208)		60		(9)		8		5,845		193
Equity securities^(a)		-		(2)		-		24		5		-		-		27		-
Mortgage and other loans
receivable		5		-		-		(5)		-		-		-		-		-
Other invested assets		250		47		2		288		-		-		-		587		71
Other assets		-		-		-		58		-		-		-		58		-
Total	$	35,763	$	1,345	$	(518)	$	(3,705)	$	2,814	$	(2,269)	$	180	$	33,610	$	264
				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Acquisitions		of Year		at End of Year
Liabilities:
Policyholder contract deposits	$	4,136	$	(334)	$	-	$	314	$	-	$	-	$	-	$	4,116	$	495
Derivative liabilities, net:
Interest rate contracts		22		(1)		-		(6)		-		-		-		15		1
Foreign exchange
contracts		-		(10)		-		5		-		-		-		(5)		3
Equity contracts		(82)		(22)		-		27		-		2		-		(75)		(35)
Credit contracts		262		(31)		-		(4)		-		-		-		227		31
Other contracts		(15)		(64)		-		70		-		-		-		(9)		62
Total derivative
liabilities, net^(b)		187		(128)		-		92		-		2		-		153		62
Long-term debt^(c)		-		-		-		-		-		-		-		-		-
Total	$	4,323	$	(462)	$	-	$	406	$	-	$	2	$	-	$	4,269	$	557

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		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,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		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 derivatives
liabilities, net^(b)		309		(184)		-		65		(3)		-		187		181
Long-term debt^(c)		71		16		-		(87)		-		-		-		-
Total	$	3,413	$	639	$	-	$	274	$	(3)	$	-	$	4,323	$	(318)

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

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, 2018
Assets:
Bonds available for sale	$	987	$	(165)	$	(4)	$	818
Other bond securities		92		(3)		393		482
Equity securities		(2)		-		-		(2)
Other invested assets		57		-		(10)		47
December 31, 2017
Assets:
Bonds available for sale	$	1,127	$	(49)	$	2	$	1,080
Other bond securities		308		-		731		1,039
Other invested assets		9		6		(1)		14
		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
December 31, 2018
Liabilities:
Policyholder contract deposits		-		(334)		-		(334)
Derivative liabilities, net		-		5		(133)		(128)
Long-term debt		-		-		-		-
December 31, 2017
Liabilities:
Policyholder contract deposits		-		807		-		807
Derivative liabilities, net		-		(17)		(167)		(184)
Long-term debt		-		-		16		16

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

								Purchases, Sales,
						Issuances and		Issuances and
(in millions)		Purchases		Sales		Settlements^(a)		Settlements, Net^(a)
December 31, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	105	$	(8)	$	(163)	$	(66)
Non-U.S. governments		5		-		(6)		(1)
Corporate debt		280		(216)		(271)		(207)
RMBS		715		(20)		(3,119)		(2,424)
CMBS		277		(2)		(68)		207
CDO/ABS		1,865		(1,073)		(1,163)		(371)
Total bonds available for sale		3,247		(1,319)		(4,790)		(2,862)
Other bond securities:
Corporate debt		-		-		(18)		(18)
RMBS		1		(34)		(247)		(280)
CMBS		-		-		(5)		(5)
CDO/ABS		90		(4)		(991)		(905)
Total other bond securities		91		(38)		(1,261)		(1,208)
Equity securities		49		-		(25)		24
Mortgage and other loans receivable		-		(5)		-		(5)
Other invested assets		350		(29)		(33)		288
Other assets		-		-		58		58
Total assets	$	3,737	$	(1,391)	$	(6,051)	$	(3,705)
Liabilities:
Policyholder contract deposits	$	-	$	533	$	(219)	$	314
Derivative liabilities, net		(52)		80		64		92
Long-term debt^(b)		-		-		-		-
Total liabilities	$	(52)	$	613	$	(155)	$	406
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

(a) There were no issuances during the years ended December 31, 2018 and 2017.

(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)		2018	Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states,
municipalities and
political subdivisions	$	1,473	Discounted cash flow	Yield	3.91% - 5.00% (4.46%)

Corporate debt		445	Discounted cash flow	Yield	4.35% - 5.99% (5.17%)

RMBS^(a)		13,608	Discounted cash flow	Constant prepayment rate	4.58% - 14.00% (9.29%)
				Loss severity	39.66% - 74.40% (57.03%)
				Constant default rate	2.46% - 7.39% (4.92%)
				Yield	3.31% - 5.50% (4.40%)

CDO/ABS^(a)		5,461	Discounted cash flow	Yield	3.65% - 5.10% (4.37%)

CMBS		447	Discounted cash flow	Yield	3.29% - 6.07% (4.68%)

Liabilities:

Embedded derivatives
within Policyholder
contract deposits:

Guaranteed minimum
withdrawal benefits
(GMWB)		1,943	Discounted cash flow	Equity volatility	6.05% - 47.65%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	20.00% - 180.00%
				Mortality multiplier^(c)	40.00% - 153.00%
				Utilization	90.00% - 100.00%
				Equity / interest rate correlation	20.00% - 40.00%

Index Annuities		1,778	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier^(c)	42.00% - 162.00%
				Option Budget	1.00% - 3.00%

Indexed Life		374	Discounted cash flow	Base lapse rate	0.00% - 13.00%
				Mortality rate	0.00% - 100.00%


		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%

(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, 2018				December 31, 2017
			Fair Value				Fair Value
			Using NAV				Using NAV
			Per Share (or		Unfunded		Per Share (or		Unfunded
(in millions)	Investment Category Includes		its equivalent)		Commitments		its equivalent)		Commitments
Investment Category^*
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	847	$	1,327	$	1,243	$	706

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		190		83		210		187

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		126		127		134		73

Growth Equity	Funds that make investments in established companies for the purpose of growing their businesses		362		28		215		73

Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		211		75		171		135

Other	Includes distressed funds that invest in securities of companies that are in default or under bankruptcy protection, as well as funds that have multi-strategy, and other strategies		514		307		155		53
Total private equity funds			2,250		1,947		2,128		1,227
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		787		-		1,128		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		863		-		1,233		-

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		887		-		1,011		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		21		8		266		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		158		1		231		4
Total hedge funds			2,716		9		3,869		12
Total		$	4,966	$	1,956	$	5,997	$	1,239

* Beginning in the third quarter of 2018, Growth Equity and Mezzanine private equity fund categories are shown separately. Prior periods were revised to conform to the current period presentation.

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

Years Ended December 31,	Gain (Loss)
(in millions)		2018		2017		2016
Assets:
Bond and equity securities	$	343	$	1,646	$	447
Alternative investments^(a)		213		509		28
Other, including Short-term investments		-		1		-
Liabilities:
Long-term debt^(b)		(1)		(49)		(9)
Other liabilities		-		(2)		-
Total gain	$	555	$	2,105	$	466

(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, 2018						December 31, 2017
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	-	$	-	$	-	$	5	$	5	$	-
Liabilities:
Long-term debt^*	$	2,213	$	1,653	$	560	$	2,888	$	2,280	$	608

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

Fair value assets measured on nonrecurring basis and impairment charges

		Assets at Fair Value							Impairment Charges^(a)
		Non-Recurring Basis							December 31,
(in millions)		Level 1		Level 2		Level 3		Total		2018		2017		2016
December 31, 2018
Other investments	$	-	$	-	$	315	$	315	$	97	$	77	$	76
Investments in life settlements		-		-		-		-		-		360		397
Other assets		-		-		11		11		64		157		19
Total	$	-	$	-	$	326	$	326	$	161	$	594	$	492
December 31, 2017
Other investments	$	-	$	-	$	55	$	55
Investments in life settlements		-		-		-		-
Other assets		-		-		-		-
Total	$	-	$	-	$	55	$	55

(a) Impairments in 2017 included $35 million related to Other assets of $179 million that were sold during the three-month period ended June 30, 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, 2018
Assets:
Mortgage and other loans receivable	$	-	$	105	$	43,522	$	43,627	$	43,135
Other invested assets		-		731		6		737		737
Short-term investments		-		6,659		-		6,659		6,659
Cash		2,873		-		-		2,873		2,873
Other assets		308		35		-		343		343
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		339		121,035		121,374		120,602
Other liabilities		-		1,154		-		1,154		1,154
Long-term debt		-		22,822		8,775		31,597		32,327
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

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Investment [Line Items]

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^(b)
December 31, 2018
Bonds available for sale:
U.S. government and government sponsored entities	$	3,170	$	132	$	(42)	$	3,260	$	-
Obligations of states, municipalities and political subdivisions		15,421		701		(121)		16,001		4
Non-U.S. governments		14,376		451		(302)		14,525		-
Corporate debt		130,436		3,911		(3,647)		130,700		4
Mortgage-backed, asset-backed and collateralized:
RMBS		31,940		2,754		(317)		34,377		1,155
CMBS		12,673		242		(214)		12,701		31
CDO/ABS		17,764		228		(165)		17,827		17
Total mortgage-backed, asset-backed and collateralized		62,377		3,224		(696)		64,905		1,203
Total bonds available for sale^(c)	$	225,780	$	8,419	$	(4,808)	$	229,391	$	1,211
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^(c)		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

(c) At December 31, 2018 and 2017, bonds available for sale held by us that were below investment grade or not rated totaled $28.8 billion and $31.5 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, 2018
Bonds available for sale:
U.S. government and government sponsored entities	$	574	$	13	$	873	$	29	$	1,447	$	42
Obligations of states, municipalities and political
subdivisions		1,965		51		1,530		70		3,495		121
Non-U.S. governments		3,851		149		2,422		153		6,273		302
Corporate debt		47,364		2,181		20,056		1,466		67,420		3,647
RMBS		5,231		94		5,641		223		10,872		317
CMBS		2,646		47		4,264		167		6,910		214
CDO/ABS		9,169		144		1,324		21		10,493		165
Total bonds available for sale	$	70,800	$	2,679	$	36,110	$	2,129	$	106,910	$	4,808
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

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
	Available for Sale				Position Available for Sale
(in millions)		Amortized Cost		Fair Value		Amortized Cost		Fair Value
December 31, 2018
Due in one year or less	$	9,539	$	9,674	$	2,322	$	2,294
Due after one year through five years		47,400		47,905		17,382		16,844
Due after five years through ten years		42,363		42,045		27,724		26,517
Due after ten years		64,101		64,862		35,319		32,980
Mortgage-backed, asset-backed and collateralized		62,377		64,905		28,971		28,275
Total	$	225,780	$	229,391	$	111,718	$	106,910
December 31, 2017
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

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

	Years Ended December 31,
		2018				2017				2016
		Gross		Gross		Gross		Gross	Gross		Gross
	Realized		Realized		Realized		Realized		Realized		Realized
(in millions)		Gains		Losses		Gains		Losses	Gains		Losses
Fixed maturity securities	$	331	$	476	$	725	$	300	$	801	$	800
Equity securities		16		-		107		19		1,072		15
Total	$	347	$	476	$	832	$	319	$	1,873	$	815

The fair value of AIG's other securities

		December 31, 2018				December 31, 2017
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	2,665	21	%	$	2,802	21	%
Non-U.S. governments		45	-			57	1
Corporate debt		1,671	13			1,909	14
Mortgage-backed, asset-backed and collateralized:
RMBS		1,714	14			1,885	14
CMBS		388	3			559	4
CDO/ABS and other collateralized^*		4,932	39			5,560	42
Total mortgage-backed, asset-backed and collateralized		7,034	56			8,004	60
Total fixed maturity securities		11,415	90			12,772	96
Equity securities		1,253	10			589	4
Total	$	12,668	100	%	$	13,361	100	%

* Includes $178 million and $251 million of U.S. government agency backed ABS at December 31, 2018 and 2017, respectively.

Components of other invested assets

December 31,
(in millions)		2018		2017
Alternative investments^{(a) (b)}	$	8,966	$	11,308
Investment real estate^(c)		8,935		8,258
All other investments		1,440		1,256
Total	$	19,341	$	20,822

(b) At December 31, 2018, approximately 74 percent of our hedge fund portfolio is available for redemption in 2019. The remaining 26 percent will be available for redemption between 2020 and 2027.

The carrying value and ownership percentage of AIA and equity method investments

		2018			2017
		Carrying	Ownership		Carrying	Ownership
(in millions, except percentages)		Value	Percentage		Value	Percentage
Equity method investments	$	6,520	Various	$	9,050	Various

Components of net investment income

Years Ended December 31,
(in millions)		2018		2017		2016
Available for sale fixed maturity securities, including short-term investments	$	10,323	$	10,435	$	11,314
Other fixed maturity securities		7		660		331
Equity securities^(a)		(162)		34		(5)
Interest on mortgage and other loans		1,874		1,661		1,526
Alternative investments^(b)		655		1,475		693
Real estate		257		144		150
Other investments		15		290		509
Total investment income		12,969		14,699		14,518
Investment expenses		493		520		453
Net investment income	$	12,476	$	14,179	$	14,065

(a) Upon the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, the change in fair value of all equity securities is included in Net investment income.

Components of net realized capital gains (losses)

Years Ended December 31,
(in millions)		2018		2017		2016
Sales of fixed maturity securities	$	(145)	$	425	$	1
Sales of equity securities^(a)		16		88		1,057
Other-than-temporary impairments:
Severity		-		(2)		(15)
Change in intent		(87)		(9)		(46)
Foreign currency declines		(15)		(11)		(18)
Issuer-specific credit events		(147)		(234)		(433)
Adverse projected cash flows		(2)		(4)		(47)
Provision for loan losses		(92)		(50)		10
Foreign exchange transactions		(182)		489		(1,226)
Variable annuity embedded derivatives, net of related hedges		304		(1,374)		(1,243)
All other derivatives and hedge accounting		338		(368)		299
Impairments on investments in life settlements		-		(360)		(397)
Loss on sale of private equity funds		(321)		-		-
Other^(b)		203		30		114
Net realized capital losses	$	(130)	$	(1,380)	$	(1,944)

Summarized financial information of AIG's equity method investees

Years Ended December 31,
(in millions)		2018		2017		2016
Operating results:
Total revenues	$	15,310	$	13,066	$	9,512
Total expenses		(3,200)		(6,835)		(7,361)
Net income	$	12,110	$	6,231	$	2,151
At December 31,
(in millions)				2018		2017
Balance sheet:
Total assets			$	96,915	$	132,708
Total liabilities			$	(21,063)	$	(35,585)

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

Years Ended December 31,
(in millions)		2018		2017		2016
Balance, beginning of year	$	526	$	1,098	$	1,747
Increases due to:
Credit impairments on new securities subject to impairment losses		59		122		204
Additional credit impairments on previously impaired securities		90		74		212
Reductions due to:
Credit impaired securities fully disposed for which there was no
prior intent or requirement to sell		(145)		(99)		(296)
Accretion on securities previously impaired due to credit^*		(530)		(669)		(767)
Divested businesses		-		-		(2)
Balance, end of year	$	-	$	526	$	1,098

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

(in millions)	At Date of Acquisition
Contractually required payments (principal and interest)	$	36,519
Cash flows expected to be collected^*		29,980
Recorded investment in acquired securities		20,229

* 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)		2018		2017
Outstanding principal balance	$	12,495	$	14,718
Amortized cost		8,646		10,492
Fair value		10,280		12,293

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

Years Ended December 31,
(in millions)		2018		2017
Balance, beginning of year	$	7,501	$	7,498
Newly purchased PCI securities		33		190
Disposals		(21)		(18)
Accretion		(722)		(797)
Effect of changes in interest rate indices		207		(34)
Net reclassification from (to) non-accretable difference, including effects of prepayments		212		662
Balance, end of year	$	7,210	$	7,501

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

(in millions)		December 31, 2018		December 31, 2017
Fixed maturity securities available for sale	$	1,050	$	2,911
Other bond securities, at fair value	$	122	$	1,585

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, 2018
Bonds available for sale:
Non-U.S. governments	$	25	$	35	$	-	$	-	$	-	$	60
Corporate debt		51		55		-		-		-		106
Other bond securities:
U.S. government and government sponsored entities		11		-		-		-		-		11
Non-U.S. governments		-		3		-		-		-		3
Corporate debt		17		38		53		-		-		108
Total	$	104	$	131	$	53	$	-	$	-	$	288

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

	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, 2018
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	50	$	130	$	-	$	-	$	180
Non-U.S. governments		-		21		8		-		-		29
Corporate debt		-		330		345		-		-		675
Other bond securities:
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		-		-		-		-		-
Total	$	-	$	401	$	483	$	-	$	-	$	884

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
Other bond securities:
Non-U.S. governments		-		-		22		-		-		22
Corporate debt		-		-		56		-		-		56
Total	$	-	$	588	$	2,327	$	-	$	-	$	2,915

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

(in millions)		December 31, 2018		December 31, 2017
Securities collateral pledged to us	$	426	$	2,227
Amount sold or repledged by us		106		46

Available-for-sale Securities [Member]

Investment [Line Items]

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

	Years Ended
	December 31,
(in millions)		2018		2017
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	(9,920)	$	4,235
Equity securities^(a)		-		22
Other investments		(88)		(195)
Total increase (decrease) in unrealized appreciation (depreciation) of investments^(b)	$	(10,008)	$	4,062

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

Equity Securities [Member]

Investment [Line Items]

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

Year Ended December 31, 2018				Other Invested
(in millions)		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	(184)	$	342	$	158
Less: Net gains and losses recognized during the year on equity securities
sold during the year		56		23		79
Unrealized gains and losses recognized during the reporting period on equity
securities still held at the reporting date	$	(240)	$	319	$	79

LENDING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2018

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable

	December 31,			December 31,
(in millions)		2018		2017
Commercial mortgages^*	$	32,882	$	28,596
Residential mortgages		6,532		5,398
Life insurance policy loans		2,147		2,295
Commercial loans, other loans and notes receivable		1,971		1,056
Total mortgage and other loans receivable		43,532		37,345
Allowance for credit losses		(397)		(322)
Mortgage and other loans receivable, net	$	43,135	$	37,023

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, 2018
Loan-to-Value Ratios^(b)
Less than 65%	$	19,204	$	2,543	$	250	$	21,997
65% to 75%		9,060		300		203		9,563
76% to 80%		476		20		15		511
Greater than 80%		596		103		112		811
Total commercial mortgages	$	29,336	$	2,966	$	580	$	32,882

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

Schedule of credit quality indicators for the commercial mortgage loans

	Number															Percent
	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total^(c)	Total $
December 31, 2018
Credit Quality Performance
Indicator:
In good standing	762	$	11,190	$	9,774	$	5,645	$	3,074	$	2,507	$	580	$	32,770	100	%
Restructured^(a)	2		-		96		-		-		16		-		112	-
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	764	$	11,190	$	9,870	$	5,645	$	3,074	$	2,523	$	580	$	32,882	100	%
Allowance for credit losses:
Specific			-		2		-		-		1		-		3	-	%
General			122		104		51		13		19		6		315	1
Total allowance for credit losses		$	122	$	106	$	51	$	13	$	20	$	6	$	318	1	%

December 31, 2017
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	%

(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

	2018						2017						2016
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	$	247	$	75	$	322	$	194	$	103	$	297	$	171	$	137	$	308
Loans charged off		(17)		(2)		(19)		(22)		(3)		(25)		(13)		(2)		(15)
Recoveries of loans previously
charged off		-		1		1		-		1		1		11		-		11
Net charge-offs		(17)		(1)		(18)		(22)		(2)		(24)		(2)		(2)		(4)
Provision for loan losses		88		5		93		75		(26)		49		25		(32)		(7)
Other		-		-		-		-		-		-		-		-		-
Allowance, end of year	$	318 ^*	$	79	$	397	$	247 ^*	$	75	$	322	$	194 ^*	$	103	$	297

REINSURANCE (Tables)

12 Months Ended

Dec. 31, 2018

Effects of Reinsurance [Line Items]

Supplemental information for gross loss and benefit reserves net of ceded reinsurance

At December 31,		2018				2017
		As		Net of		As		Net of
(in millions)		Reported	Reinsurance			Reported	Reinsurance
Liability for unpaid losses and loss adjustment expenses	$	(83,639)	$	(51,949)	$	(78,393)	$	(51,685)
Future policy benefits for life and accident and health insurance contracts		(44,935)		(43,936)		(45,432)		(44,457)
Reserve for unearned premiums		(19,248)		(16,300)		(19,030)		(15,890)
Reinsurance assets^(a)		35,637				30,823

(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)		2018		2017		2016
Long-duration insurance in force ceded	$	228,846	$	202,402	$	174,363

Short-Duration Reinsurance

Effects of Reinsurance [Line Items]

Schedule of insurance premiums written and earned

	Years Ended December 31,
(in millions)		2018		2017		2016
Premiums written:
Direct	$	30,335	$	30,205	$	33,970
Assumed		4,026		3,084		2,824
Ceded		(7,755)		(7,533)		(7,561)
Net	$	26,606	$	25,756	$	29,233
Premiums earned:
Direct	$	31,415	$	30,904	$	34,869
Assumed		4,593		3,373		2,962
Ceded		(8,163)		(7,902)		(7,284)
Net	$	27,845	$	26,375	$	30,547

Long-Duration Reinsurance

Effects of Reinsurance [Line Items]

Schedule of insurance premiums written and earned

Years Ended December 31,
(in millions)		2018		2017		2016
Gross premiums	$	3,893	$	5,338	$	4,732
Ceded premiums		(850)		(809)		(789)
Net	$	3,043	$	4,529	$	3,943

DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2018

DEFERRED POLICY ACQUISITION COSTS

Rollforward of DAC

Years Ended December 31,
(in millions)		2018		2017		2016
Balance, beginning of year	$	10,994	$	11,042	$	11,115
Acquisitions		298		-		-
Dispositions		-		(35)		(110)
Acquisition costs deferred		5,832		4,820		5,216
Amortization expense		(5,386)		(4,288)		(4,521)
Change related to unrealized appreciation (depreciation) of investments		1,063		(505)		(259)
Other, including foreign exchange		(107)		(40)		72
Reclassified to Assets held for sale		-		-		(471)
Balance, end of year^(a)	$	12,694	$	10,994	$	11,042
Supplemental Information:
VOBA amortization expense included in DAC amortization	$	243	$	20	$	40
VOBA, end of year included in DAC balance^(b)		438		381		393

(b) Includes $101 million of VOBA from the acquisition of Validus, the majority of which will be amortized within the next 12 to 18 months.

VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2018

Variable Interest Entity Primary Beneficiary

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities

(in millions)		Real Estate and Investment Entities^(d)		Securitization Vehicles^(e)		Affordable Housing Partnerships		Other		Total
December 31, 2018
Assets:
Bonds available for sale	$	-	$	7,662	$	-	$	-	$	7,662
Other bond securities		-		3,923		-		2		3,925
Mortgage and other loans receivable		-		3,693		-		-		3,693
Other invested assets		5,212		-		3,142		24		8,378
Other^(a)		580		1,581		394		70		2,625
Total assets^(b)	$	5,792	$	16,859	$	3,536	$	96	$	26,283
Liabilities:
Long-term debt	$	2,577	$	3,154	$	1,834	$	4	$	7,569
Other^(c)		227		165		159		24		575
Total liabilities	$	2,804	$	3,319	$	1,993	$	28	$	8,144
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

(a) Comprised primarily of Short-term investments and Other assets at December 31, 2018 and 2017.

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

(d) At December 31, 2018 and 2017, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $1.4 billion and $86 million, respectively.

(e) At December 31, 2018 and 2017, $16.0 billion and $17.6 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 Entity [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, 2018
Real estate and investment entities^(a)	$	309,598	$	6,820	$	2,501		$	9,321
Affordable housing partnerships		4,116		607		-			607
Other		2,813		284		1,222	^(c)		1,506
Total	$	316,527	$	7,711	$	3,723		$	11,434
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

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

(b) At December 31, 2018 and 2017, $7.4 billion and $9.8 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, 2018

DERIVATIVES AND HEDGE ACCOUNTING

Notional amounts and fair values of derivative instruments

	December 31, 2018								December 31, 2017
	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	$	10	$	-	$	866	$	19	$	-	$	-	$	838	$	15
Foreign exchange contracts		6,357		363		2,536		147		2,823		173		4,783		350
Equity contracts		-		-		-		-		-		-		159		19
Derivatives not designated
as hedging instruments:^(a)
Interest rate contracts		42,821		2,890		27,329		2,004		37,751		2,171		26,461		2,185
Foreign exchange contracts		11,134		801		5,434		711		6,305		658		11,093		895
Equity contracts		17,807		398		2,399		15		19,975		522		1,130		2
Credit contracts^(b)		8		1		1,406		236		4		1		1,365		277
Other contracts^(c)		39,070		15		58		6		39,829		20		59		5
Total derivatives, gross	$	117,207	$	4,468	$	40,028	$	3,138	$	106,687	$	3,545	$	45,888	$	3,748
Counterparty netting^(d)				(1,713)				(1,713)				(1,464)				(1,464)
Cash collateral^(e)				(1,840)				(187)				(1,159)				(1,249)
Total derivatives on
consolidated balance sheets^(f)			$	915			$	1,238			$	922			$	1,035

(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, 2018
Interest rate contracts:
Realized capital gains/(losses)	$	(2)	$	2	$	-	$	-	$	-
Other income		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		471		(365)		-		106		-
Other income		-		-		-		-		-
Equity contracts:
Realized capital gains/(losses)		-		-		-		-		-
Year ended December 31, 2017
Interest rate contracts:
Realized capital gains/(losses)	$	(4)	$	4	$	-	$	-	$	-
Other income		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		(420)		393		-		(26)		-
Other income		-		4		-		-		4
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
Foreign exchange contracts:
Realized capital gains/(losses)		294		(335)		-		(41)		-
Other income		-		24		-		-		24
Equity contracts:
Realized capital gains/(losses)		10		(11)		-		(1)		-

(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)		2018		2017		2016
By Derivative Type:
Interest rate contracts	$	(509)	$	56	$	(229)
Foreign exchange contracts		543		(277)		293
Equity contracts		(56)		(964)		(902)
Commodity contracts		-		-		-
Credit contracts		32		58		81
Other contracts		65		75		80
Embedded derivatives		629		(449)		(48)
Total	$	704	$	(1,501)	$	(725)
By Classification:
Policy fees	$	67	$	77	$	80
Net investment income		(3)		(11)		26
Net realized capital gains (losses)		561		(1,709)		(895)
Other income		81		139		63
Policyholder benefits and claims incurred		(2)		3		1
Total	$	704	$	(1,501)	$	(725)

- 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-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

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2018

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of changes in goodwill by reportable segment

	General Insurance
	North				Life			Other		Legacy
(in millions)	America		International		Insurance		Operations		Portfolio			Total
Balance at January 1, 2016:
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:
Acquisitions		-		-		-		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
Increase (decrease) due to:
Acquisitions^*		2,332		157		46		9		-		2,544
Other		(12)		(48)		(5)		9		-		(56)
Balance at December 31, 2018:
Goodwill - gross		4,188		2,983		125		49		214		7,559
Accumulated impairments		(1,264)		(2,136)		-		-		(77)		(3,477)
Net goodwill	$	2,924	$	847	$	125	$	49	$	137	$	4,082

* Includes goodwill of $2.0 billion, $492 million and $46 million relating to the acquisitions of Validus, Glatfelter and Ellipse, respectively.

Changes in other intangible assets

	General Insurance
Year Ended December 31, 2018	North				Life			Other		Legacy
(in millions)	America		International		Insurance		Operations		Portfolio			Total
Other intangible assets, beginning of year	$	27	$	8	$	34	$	37	$	-	$	106
Increase (decrease) due to:
Acquisitions		61		207		16		-		-		284
Amortization		(2)		(3)		(4)		(2)		-		(11)
Other		-		-		-		(19)		-		(19)
Other intangible assets, end of year	$	86	$	212	$	46	$	16	$	-	$	360

Value of distribution network acquired, beginning of year	$	-	$	-	$	-	$	-	$	-	$	-
Increase (decrease) due to:
Acquisitions		-		-		-		582		-		582
Amortization		-		-		-		(15)		-		(15)
Other		-		-		-		2		-		2
Value of distribution network acquired, end of year	$	-	$	-	$	-	$	569	$	-	$	569

INSURANCE LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2018

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)		2018		2017		2016
Liability for unpaid loss and loss adjustment expenses, beginning of year	$	78,393	$	77,077	$	74,942
Reinsurance recoverable		(26,708)		(15,532)		(14,339)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year		51,685		61,545		60,603
Losses and loss adjustment expenses incurred:
Current year		22,501		21,079		20,232
Prior years, excluding discount and amortization of deferred gain		1,429		1,565		5,788
Prior years, discount charge (benefit)		(252)		187		(422)
Prior years, amortization of deferred gain on retroactive reinsurance^(a)		(395)		(284)		-
Total losses and loss adjustment expenses incurred		23,283		22,547		25,598
Losses and loss adjustment expenses paid:
Current year		(6,235)		(5,323)		(5,825)
Prior years		(19,254)		(16,241)		(16,908)
Total losses and loss adjustment expenses paid		(25,489)		(21,564)		(22,733)
Other changes:
Foreign exchange effect		(677)		788		(463)
Acquisitions^(b)		3,284		23		-
Dispositions^(c)		-		(360)		(1,058)
Retroactive reinsurance adjustment (net of discount)^(d)		(137)		(11,294)		-
Reclassified to liabilities held for sale^(e)		-		-		(402)
Total other changes		2,470		(10,843)		(1,923)
Liability for unpaid loss and loss adjustment expenses, end of year:
Net liability for unpaid losses and loss adjustment expenses		51,949		51,685		61,545
Reinsurance recoverable		31,690		26,708		15,532
Total	$	83,639	$	78,393	$	77,077

(a) Includes $51 million and $25 million for the retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the year ended December 31, 2018 and 2017, respectively.

(b) Includes amounts related to the acquisition of Glatfelter in October 2018, Validus in July 2018 and Blackboard U.S. Holdings Inc. in 2017.

(d) Includes discount on retroactive insurance in the amount of $180 million and $1.5 billion for the periods ended December 31, 2018 and 2017, respectively.

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)	$	5,834	$	7,038	$	12,872
U.S. Excess Casualty		4,715		4,576		9,291
U.S. Other Casualty		4,288		4,661		8,949
U.S. Financial Lines		5,315		1,960		7,275
U.S. Property and Special risks		6,534		2,748		9,282
U.S. Personal Insurance		1,706		1,001		2,707
UK/Europe Casualty and Financial lines		7,022		1,789		8,811
UK/Europe Property and Special risks		2,988		1,251		4,239
UK/Europe and Japan Personal Insurance		2,264		553		2,817
U.S. Run-Off Long Tail Insurance Lines (before
discount)		4,835		3,689		8,524
Total	$	45,501	$	29,266	$	74,767

Reconciling Items
Discount on workers' compensation lines						(3,755)
Other product lines						8,974
Unallocated loss adjustment expenses						3,653
Total Loss Reserves					$	83,639

Reconciliation of change in net ultimate loss and loss adjustment expense to prior year development

The table below presents the reconciliation of change in net ultimates from tables above to prior year development for the year ended December 31, 2018:


	Change in Loss and Loss Adjustment Expenses Net Ultimate^(a)		Re-Attribution of ADC Recovery^(b)		Amortization of Deferred Gain at Inception		Prior Year Development

(in millions)
U.S. Workers' Compensation	$	(498)	$	589	$	(73)	$	18
U.S. Excess Casualty		762		(370)		(56)		336
U.S. Other Casualty		58		(26)		(51)		(19)
U.S. Financial Lines		355		(109)		(37)		209
U.S. Property and Special risks		(401)		(69)		(13)		(483)
U.S. Personal Insurance		264		(14)		(2)		248
UK/Europe Casualty and Financial lines		63		-		-		63
UK/Europe Property and Special risks		(24)		-		-		(24)
UK/Europe and Japan Personal Insurance		(116)		-		-		(116)
U.S. Run-Off Long Tail Insurance Lines		(4)		-		-		(4)
Other product lines		136		(1)		(1)		134
Subtotal, adjusted pre-tax basis	$	595	$	-	$	(233)	$	362

Remove benefit of Retroactive Reinsurance
Amortization of deferred gain at inception								233
Prior year development ceded under the Asbestos LPT								96
Prior year development ceded under the ADC								738
Total, prior years, excluding discount and amortization of deferred gain							$	1,429

Change in net ultimate loss and LAE excludes the portion of prior year development for which we have ceded to the Asbestos Loss Portfolio Transfer (LPT) and the Adverse Development Cover (ADC), both of which are provided by NICO and are considered retroactive reinsurance under US GAAP. Amounts shown exclude $30 million of pre-acquisition prior year development from Validus. Validus' pre-acquisition development is included in the 10-year triangles shown above but is not included in AIG's financial results.
Reattribution of the ADC recovery takes place annually as we model the future payments on the subject reserves covered by the ADC to determine when the aggregate payments will exceed the attachment. ADC recoverables are then reallocated by line based on payments expected to be made after attachment point is exceeded.

Schedule of development, (favorable) unfavorable, of incurred losses and loss adjustment expenses for accident year 2008 and prior by operating segment and major class of business

Years Ended December 31,
(in millions)		2018		2017		2016
2008 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)	$	153	$	(7)	$	1,164
U.S. Excess casualty		537		164		72
U.S. Other casualty		129		(8)		398
U.S. Financial lines		(1)		(34)		54
U.S. Property and Special risks		39		11		6
U.S. Personal Insurance		2		9		(16)
UK/Europe Casualty and Financial lines		1		169		(9)
UK/Europe Property and Special risks		3		(6)		(1)
UK/Europe and Japan Personal Insurance		9		3		(4)
U.S. Run-Off Long Tail Insurance lines (before discount)		154		(44)		372
All Other including unallocated loss adjustment expenses		137		178		(7)
Total prior year unfavorable development	$	1,163	$	435	$	2,029

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	13.9	%	17.3	%	12.4	%	8.9	%	7.3	%	5.0	%	3.7	%	2.7	%	2.1	%	2.4	%
U.S. Excess casualty	0.5		6.4		11.3		13.9		12.1		11.2		8.7		10.5		2.6		6.1
U.S. Other casualty	9.6		15.8		15.7		15.0		12.1		8.4		5.9		5.8		2.2		0.8
U.S. Financial lines	4.3		17.8		21.4		16.8		13.6		8.7		5.4		3.5		2.1		1.6
U.S. Property and Special risks	29.5		33.6		13.3		8.3		5.4		3.7		1.5		1.1		0.7		0.2
U.S. Personal Insurance	58.6		28.9		3.8		2.1		1.3		0.5		0.3		0.2		0.1		0.1
UK/Europe Casualty and Financial lines	8.1		16.0		13.5		12.6		10.0		8.1		7.2		5.0		3.5		3.0
UK/Europe Property and Special risks	25.7		38.6		16.8		6.5		3.3		1.8		1.0		0.5		0.3		0.2
UK/Europe and Japan Personal Insurance	56.9		26.9		8.0		3.9		2.0		1.0		0.6		0.3		0.2		0.1
U.S. Run-Off Long Tail Insurance lines	13.0		18.7		17.2		14.3		10.8		6.3		3.4		2.0		2.0		1.9

Schedule of components of the loss reserve discount

	December 31, 2018						December 31, 2017
		North America						North America
		Commercial		Legacy				Commercial		Legacy
(in millions)		Insurance		Portfolio		Total		Insurance		Portfolio		Total
U.S. workers' compensation	$	2,782	$	973	$	3,755	$	2,465	$	918	$	3,383
Retroactive reinsurance		(1,720)		-		(1,720)		(1,539)		-		(1,539)
Total reserve discount^*	$	1,062	$	973	$	2,035	$	926	$	918	$	1,844

* Excludes $163 million and $173 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2018 and 2017, respectively.

Schedule of loss reserve discount and loss reserve discount benefit (charge)

Years Ended December 31,	2018						2017						2016
		North						North						North
		America						America						America
		Commercial		Legacy				Commercial		Legacy				Commercial		Legacy
(in millions)	Insurance			Portfolio		Total	Insurance			Portfolio		Total	Insurance			Portfolio		Total
Current accident year	$	119	$	-	$	119	$	114	$	-	$	114	$	177	$	-	$	177
Accretion and other
adjustments to prior
year discount		(108)		(58)		(166)		(186)		(44)		(230)		287		64		351
Effect of interest rate
changes		305		113		418		(46)		(25)		(71)		(58)		(48)		(106)
Net reserve discount
benefit (charge)		316		55		371		(118)		(69)		(187)		406		16		422
Change in discount on loss
reserves ceded under
retroactive reinsurance		(180)		-		(180)		(1,539)		-		(1,539)		-		-		-
Net change in total
reserve discount^*		136		55		191		(1,657)		(69)		(1,726)		406		16		422

Excludes $(9) million and $8 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2018 and 2017, respectively.

Schedule of Policyholder contract deposits by product type

At December 31,
(in millions)		2018		2017
Policyholder contract deposits:
Fixed Annuities	$	49,695	$	49,979
Group Retirement		41,212		40,422
Life Insurance		12,829		12,448
Variable and Index Annuities		24,378		19,690
Institutional Markets		9,497		8,077
Legacy Portfolio		4,651		4,986
Total Policyholder contract deposits	$	142,262	$	135,602

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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	3,466	$	3,633	$	3,608	$	3,666	$	3,639	$	3,616	$	3,606	$	3,708	$	3,714	$	3,697	$	(17)	$	421	147,504	$	(439)	$	3,258	$	(18)
2010				2,706		3,049		3,125		3,148		3,211		3,214		3,286		3,267		3,278		11		446	133,374		(467)		2,811		(21)
2011						2,901		2,953		3,091		3,158		3,113		3,152		3,156		3,177		21		490	124,855		(495)		2,682		(5)
2012								2,382		2,194		2,286		2,260		2,334		2,308		2,259		(49)		418	70,874		(466)		1,793		(48)
2013										1,932		1,880		1,950		2,060		2,032		1,974		(58)		452	46,768		(493)		1,481		(41)
2014												1,729		1,764		1,866		1,862		1,794		(68)		531	39,742		(485)		1,309		46
2015														1,708		1,864		1,866		1,814		(52)		712	35,439		(496)		1,318		216
2016																1,299		1,346		1,318		(28)		625	29,669		-		1,318		625
2017																		789		850		61		504	26,005		-		850		504
2018																				998				802	18,367		-		998		802
Total																			$	21,159	$	(179)				$	(3,341)	$	17,818
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(13,739)		-					-		(13,739)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				4,443		153					(2,688)		1,755
Unallocated loss adjustment expense prior year development																						77
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	11,863	$	51				$	(6,029)	$	5,834

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	3,297	$	3,298	$	3,258	$	(40)
2010		2,821		2,818		2,811		(7)
2011		2,676		2,677		2,682		5
2012		1,819		1,814		1,793		(21)
2013		1,499		1,494		1,481		(13)
2014		1,311		1,310		1,309		(1)
2015		1,278		1,279		1,318		39
2016		1,299		1,346		1,318		(28)
2017		-		789		850		61
2018		-		-		998		-
Total	$	16,000	$	16,825	$	17,818	$	(5)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below				-		(13,739)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				2,258		1,755		(503)
Unallocated loss adjustment expense prior year development				-		-		10
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	5,834	$	(498)

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	(411)	$	(416)	$	(439)	$	(23)
2010		(465)		(449)		(467)		(18)
2011		(476)		(479)		(495)		(16)
2012		(515)		(494)		(466)		28
2013		(561)		(538)		(493)		45
2014		(555)		(552)		(485)		67
2015		(586)		(587)		(496)		91
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(3,569)	$	(3,515)	$	(3,341)	$	174
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(2,032)		(2,688)		(656)
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(6,029)	$	(482)

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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	630	$	1,328	$	1,756	$	2,120	$	2,390	$	2,621	$	2,780	$	2,887	$	2,968	$	3,058	$	-
2010				550		1,093		1,537		1,855		2,126		2,288		2,426		2,532		2,597		-
2011						519		1,129		1,561		1,884		2,129		2,285		2,388		2,451		-
2012								415		804		1,089		1,272		1,440		1,563		1,632		-
2013										282		619		879		1,067		1,214		1,287		-
2014												231		558		786		930		1,030		-
2015														234		524		725		854		-
2016																147		378		521		-
2017																		93		224		-
2018																				85		-
Total																			$	13,739	$	-

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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	1,831	$	1,897	$	1,797	$	1,638	$	1,457	$	1,321	$	1,407	$	1,518	$	1,522	$	1,599	$	77	$	254	3,935	$	(191)	$	1,408	$	63
2010				1,863		2,076		2,076		1,771		1,640		1,723		1,719		1,706		1,681		(25)		331	3,687		(255)		1,426		76
2011						1,766		1,807		1,581		1,416		1,521		1,606		1,623		1,726		103		370	3,651		(290)		1,436		80
2012								1,588		1,382		1,226		1,477		1,530		1,481		1,558		77		395	3,549		(304)		1,254		91
2013										1,073		973		1,113		1,258		1,178		1,226		48		397	2,908		(301)		925		96
2014												849		968		1,157		1,135		1,219		84		541	2,381		(424)		795		117
2015														892		1,334		1,320		1,478		158		580	2,185		(464)		1,014		116
2016																790		1,029		1,055		26		703	1,550		-		1,055		703
2017																		758		905		147		555	759		-		905		555
2018																				555				512	301		-		555		512
Total																			$	13,002	$	695				$	(2,229)	$	10,773
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(6,877)		-					-		(6,877)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				2,205		537					(1,386)		819
Unallocated loss adjustment expense prior year development																						42
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	8,330	$	1,274				$	(3,615)	$	4,715

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	1,352	$	1,353	$	1,408	$	55
2010		1,448		1,446		1,426		(20)
2011		1,364		1,367		1,436		69
2012		1,168		1,158		1,254		96
2013		885		869		925		56
2014		784		780		795		15
2015		898		895		1,014		119
2016		790		1,029		1,055		26
2017		-		758		905		147
2018		-		-		555		-
Total	$	8,689	$	9,655	$	10,773	$	563
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						(6,877)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				628		819		191
Unallocated loss adjustment expense prior year development						-		8
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	4,715	$	762

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	(166)	$	(169)	$	(191)	$	(22)
2010		(271)		(260)		(255)		5
2011		(242)		(256)		(290)		(34)
2012		(362)		(323)		(304)		19
2013		(373)		(309)		(301)		8
2014		(373)		(355)		(424)		(69)
2015		(436)		(425)		(464)		(39)
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(2,223)	$	(2,097)	$	(2,229)	$	(132)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(1,040)		(1,386)		(346)
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(3,615)	$	(478)

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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	8	$	69	$	249	$	449	$	624	$	788	$	965	$	1,174	$	1,212	$	1,309	$	-
2010				10		197		475		654		795		946		1,052		1,217		1,265		-
2011						5		63		225		386		716		921		1,069		1,214		-
2012								3		106		288		495		649		887		1,022		-
2013										15		104		204		382		546		661		-
2014												3		68		202		397		531		-
2015														9		192		361		668		-
2016																14		66		178		-
2017																		1		29		-
2018																				-		-
Total																			$	6,877	$	-

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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	2,416	$	2,517	$	2,586	$	2,582	$	2,697	$	2,818	$	2,880	$	2,863	$	2,855	$	2,884	$	29	$	166	90,390	$	(111)	$	2,773	$	55
2010				2,132		2,109		2,243		2,192		2,341		2,384		2,503		2,494		2,504		10		248	96,333		(155)		2,349		93
2011						2,052		2,222		2,321		2,458		2,601		2,639		2,596		2,533		(63)		161	75,432		(103)		2,430		58
2012								2,012		2,162		2,218		2,229		2,371		2,430		2,363		(67)		243	42,226		(168)		2,195		75
2013										1,662		1,739		1,918		2,152		2,183		2,159		(24)		316	37,105		(235)		1,924		81
2014												1,756		1,729		1,973		2,017		1,920		(97)		351	35,222		(276)		1,644		75
2015														1,340		1,778		1,847		1,749		(98)		388	32,422		(313)		1,436		75
2016																1,348		1,352		1,330		(22)		627	25,409		-		1,330		627
2017																		616		649		33		423	18,223		-		649		423
2018																				813				703	11,372		-		813		703
Total																			$	18,904	$	(299)				$	(1,361)	$	17,543
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(14,044)		-					-		(14,044)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				1,556		129					(767)		789
Unallocated loss adjustment expense prior year development																						43
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	6,416	$	(127)				$	(2,128)	$	4,288

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	2,714	$	2,712	$	2,773	$	61
2010		2,363		2,361		2,349		(12)
2011		2,417		2,409		2,430		21
2012		2,208		2,220		2,195		(25)
2013		1,952		1,958		1,924		(34)
2014		1,677		1,686		1,644		(42)
2015		1,377		1,391		1,436		45
2016		1,348		1,352		1,330		(22)
2017		-		616		649		33
2018		-		-		813		-
Total	$	16,056	$	16,705	$	17,543	$	25
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						(14,044)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				812		789		(23)
Unallocated loss adjustment expense prior year development						-		56
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	4,288	$	58

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	(149)	$	(143)	$	(111)	$	32
2010		(140)		(133)		(155)		(22)
2011		(222)		(187)		(103)		84
2012		(163)		(210)		(168)		42
2013		(200)		(225)		(235)		(10)
2014		(296)		(331)		(276)		55
2015		(401)		(456)		(313)		143
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(1,571)	$	(1,685)	$	(1,361)	$	324
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(616)		(767)		(151)
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(2,128)	$	173

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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	393	$	842	$	1,253	$	1,650	$	2,002	$	2,241	$	2,386	$	2,607	$	2,664	$	2,687	$	-
2010				295		661		985		1,358		1,640		1,824		1,972		2,087		2,196		-
2011						235		726		1,109		1,488		1,822		2,048		2,220		2,303		-
2012								413		743		1,048		1,395		1,690		1,882		2,023		-
2013										169		592		956		1,243		1,483		1,687		-
2014												210		621		871		1,157		1,398		-
2015														111		321		783		1,103		-
2016																77		299		491		-
2017																		51		113		-
2018																				43		-
Total																			$	14,044	$	-

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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	1,693	$	1,780	$	1,845	$	1,904	$	2,097	$	2,189	$	2,183	$	2,273	$	2,310	$	2,322	$	12	$	62	22,621	$	(32)	$	2,290	$	30
2010				1,552		1,509		1,406		1,366		1,370		1,472		1,514		1,541		1,540		(1)		49	20,182		(37)		1,503		12
2011						1,816		1,734		1,902		1,902		1,935		1,965		1,997		1,991		(6)		36	20,078		(26)		1,965		10
2012								1,572		1,739		1,777		1,892		1,986		1,987		2,011		24		150	20,122		(90)		1,921		60
2013										1,767		1,691		1,643		1,597		1,541		1,488		(53)		133	19,042		(89)		1,399		44
2014												1,767		1,736		1,849		1,898		1,932		34		309	17,330		(207)		1,725		102
2015														1,705		1,744		1,719		1,759		40		433	15,873		(326)		1,433		107
2016																1,593		1,841		1,967		126		688	15,734		-		1,967		688
2017																		1,560		1,662		102		1,017	14,702		-		1,662		1,017
2018																				1,637				1,402	12,936		-		1,637		1,402
Total																			$	18,309	$	278				$	(807)	$	17,502
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(12,253)		-					-		(12,253)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				79		(1)					(13)		66
Unallocated loss adjustment expense prior year development																						21
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	6,135	$	298				$	(820)	$	5,315

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	2,277	$	2,284	$	2,290	$	6
2010		1,505		1,510		1,503		(7)
2011		1,941		1,947		1,965		18
2012		1,904		1,904		1,921		17
2013		1,426		1,415		1,399		(16)
2014		1,690		1,700		1,725		25
2015		1,411		1,406		1,433		27
2016		1,593		1,841		1,967		126
2017		-		1,560		1,662		102
2018		-		-		1,637		-
Total	$	13,747	$	15,567	$	17,502	$	298
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						(12,253)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				36		66		30
Unallocated loss adjustment expense prior year development						-		27
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	5,315	$	355

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	4	$	(26)	$	(32)	$	(6)
2010		(9)		(31)		(37)		(6)
2011		(24)		(50)		(26)		24
2012		(82)		(83)		(90)		(7)
2013		(171)		(126)		(89)		37
2014		(159)		(198)		(207)		(9)
2015		(333)		(313)		(326)		(13)
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(774)	$	(827)	$	(807)	$	20
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(42)		(13)		29
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(820)	$	49

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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	129	$	499	$	887	$	1,273	$	1,614	$	1,838	$	1,964	$	2,056	$	2,092	$	2,129	$	-
2010				31		285		566		800		1,017		1,180		1,280		1,361		1,401		-
2011						165		494		886		1,210		1,528		1,732		1,862		1,888		-
2012								76		406		815		1,252		1,497		1,625		1,689		-
2013										43		333		686		945		1,142		1,238		-
2014												66		371		853		1,159		1,386		-
2015														66		393		792		1,051		-
2016																76		500		986		-
2017																		66		397		-
2018																				88		-
Total																			$	12,253	$	-

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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	2,239	$	1,986	$	1,959	$	1,961	$	1,920	$	1,900	$	1,887	$	1,894	$	1,896	$	1,896	$	-	$	22	47,707	$	(11)	$	1,885	$	11
2010				2,786		2,533		2,489		2,561		2,578		2,558		2,567		2,579		2,569		(10)		68	47,645		(18)		2,551		50
2011						3,855		3,713		3,638		3,628		3,612		3,652		3,651		3,645		(6)		56	49,597		(15)		3,630		41
2012								4,191		4,302		4,278		4,234		4,346		4,343		4,325		(18)		95	48,782		(19)		4,306		76
2013										2,526		2,545		2,402		2,449		2,463		2,465		2		73	50,165		(27)		2,438		46
2014												2,931		2,684		2,746		2,738		2,756		18		140	60,612		(64)		2,692		76
2015														3,116		2,970		2,916		2,894		(22)		221	58,936		(87)		2,807		134
2016																3,168		3,193		3,117		(76)		366	53,727		-		3,117		366
2017																		5,246		4,796		(450)		866	77,335		-		4,796		866
2018																				3,712				1,609	56,580		-		3,712		1,609
Total																			$	32,175	$	(562)				$	(241)		31,934
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(25,689)		-					-		(25,689)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				362		39					(73)		289
Unallocated loss adjustment expense prior year development																						26
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	6,848	$	(497)				$	(314)		6,534

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	1,882	$	1,883	$	1,885	$	2
2010		2,558		2,561		2,551		(10)
2011		3,632		3,632		3,630		(2)
2012		4,319		4,318		4,306		(12)
2013		2,422		2,425		2,438		13
2014		2,679		2,677		2,692		15
2015		2,829		2,818		2,807		(11)
2016		3,168		3,193		3,117		(76)
2017		-		5,246		4,796		(450)
2018		-		-		3,712		-
Total	$	23,489	$	28,753	$	31,934	$	(531)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						(25,689)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				244		289		45
Unallocated loss adjustment expense prior year development						-		58
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	6,534	$	(428)

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	(12)	$	(13)	$	(11)	$	2
2010		(9)		(18)		(18)		-
2011		(20)		(19)		(15)		4
2012		(27)		(25)		(19)		6
2013		(27)		(38)		(27)		11
2014		(67)		(61)		(64)		(3)
2015		(141)		(98)		(87)		11
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(303)	$	(272)	$	(241)	$	31
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(79)		(73)		6
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(314)	$	37

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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	551	$	1,160	$	1,442	$	1,626	$	1,731	$	1,793	$	1,816	$	1,838	$	1,853	$	1,857	$	-
2010				757		1,574		1,911		2,113		2,247		2,371		2,440		2,476		2,492		-
2011						1,021		2,336		2,920		3,183		3,384		3,481		3,529		3,560		-
2012								842		2,716		3,420		3,785		4,001		4,137		4,170		-
2013										736		1,578		1,855		2,056		2,203		2,317		-
2014												901		1,748		2,083		2,296		2,434		-
2015														1,045		1,866		2,228		2,484		-
2016																1,018		2,039		2,367		-
2017																		1,356		2,941		-
2018																				1,067		-
Total																			$	25,689	$	-

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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 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		2018 (Net of Impact of Adverse Development Reinsurance Agreement)		Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	1,763	$	1,697	$	1,649	$	1,663	$	1,664	$	1,664	$	1,668	$	1,667	$	1,671	$	1,672	$	1	$	3	376,026	$	(1)	$	1,671	$	2
2010				1,843		1,809		1,819		1,819		1,820		1,819		1,817		1,817		1,815		(2)		1	422,639		(1)		1,814		-
2011						1,886		1,908		1,896		1,891		1,890		1,886		1,881		1,879		(2)		1	412,893		(1)		1,878		-
2012								2,208		2,128		2,109		2,083		2,077		2,094		2,095		1		2	403,738		(2)		2,093		-
2013										1,887		1,816		1,803		1,782		1,780		1,776		(4)		3	334,879		(2)		1,774		1
2014												1,552		1,562		1,572		1,572		1,583		11		20	274,205		(12)		1,571		8
2015														1,511		1,498		1,494		1,483		(11)		13	259,543		(11)		1,472		2
2016																1,536		1,533		1,533		-		38	244,935		-		1,533		38
2017																		2,028		2,287		259		359	213,741		-		2,287		359
2018																				2,188				723	73,321		-		2,188		723
Total																			$	18,311	$	253				$	(30)		18,281
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(16,500)		-					-		(16,500)
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				(73)		2					(2)		(75)
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	1,738	$	255				$	(32)		1,706

Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC)
	Calendar Years EndedDecember 31,(in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	1,670	$	1,671	$	1,671	$	-
2010		1,816		1,816		1,814		(2)
2011		1,881		1,880		1,878		(2)
2012		2,088		2,091		2,093		2
2013		1,774		1,774		1,774		-
2014		1,564		1,564		1,571		7
2015		1,476		1,475		1,472		(3)
2016		1,536		1,533		1,533		-
2017		-		2,028		2,287		259
2018		-		-		2,188		-
Total	$	13,805	$	15,832	$	18,281	$	261
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						(16,500)		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(77)		(75)		2
Unallocated loss adjustment expense prior year development						-		1
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	1,706	$	264

The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above):

	Calendar Years Ended December 31, (in millions)							Change in Incurred Loss and ALAE
Accident Year		2016		2017		2018		Change in Incurred Loss and ALAE
	Unaudited
2009	$	3	$	-	$	(1)	$	(1)
2010		(1)		(1)		(1)		-
2011		(5)		(1)		(1)		-
2012		11		(3)		(2)		1
2013		(8)		(6)		(2)		4
2014		(8)		(8)		(12)		(4)
2015		(22)		(19)		(11)		8
2016		-		-		-		-
2017		-		-		-		-
2018		-		-		-		-
Total	$	(30)	$	(38)	$	(30)	$	8
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below						-		-
Liabilities for losses and allocated loss adjustment expenses before 2009, net of reinsurance				(2)		(2)		-
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance					$	(32)	$	8

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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Paid Impact of Adverse Development Reinsurance Agreement
	Unaudited
2009	$	1,129	$	1,563	$	1,567	$	1,618	$	1,639	$	1,650	$	1,658	$	1,663	$	1,664	$	1,667	$	-
2010				1,205		1,669		1,736		1,772		1,794		1,803		1,808		1,810		1,812		-
2011						1,204		1,752		1,814		1,840		1,860		1,869		1,873		1,874		-
2012								1,238		1,936		1,996		2,035		2,065		2,079		2,085		-
2013										1,109		1,634		1,705		1,744		1,759		1,766		-
2014												959		1,380		1,463		1,507		1,536		-
2015														931		1,320		1,411		1,439		-
2016																857		1,344		1,422		-
2017																		941		1,672		-
2018																				1,227		-
Total																			$	16,500	$	-

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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2009	$	1,825	$	1,741	$	1,721	$	1,786	$	1,822	$	1,833	$	1,841	$	1,923	$	1,957	$	1,952	$	(5)	$	86	237,608
2010				1,421		1,376		1,383		1,403		1,330		1,365		1,330		1,399		1,404		5		66	275,528
2011						1,361		1,307		1,375		1,409		1,493		1,494		1,540		1,557		17		71	265,751
2012								1,183		1,153		1,108		1,172		1,209		1,185		1,245		60		78	219,045
2013										1,190		1,241		1,211		1,182		1,237		1,223		(14)		116	186,848
2014												1,262		1,247		1,279		1,289		1,242		(47)		252	177,454
2015														1,321		1,484		1,514		1,514		-		453	191,382
2016																1,538		1,686		1,754		68		565	227,036
2017																		1,558		1,530		(28)		871	241,031
2018																				1,518				1,118	212,169
Total																			$	14,939	$	56
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(8,529)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				612		1
Unallocated loss adjustment expense prior year development																						1
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	7,022	$	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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	Unaudited
2009	$	180	$	430	$	689	$	924	$	1,088	$	1,220	$	1,383	$	1,519	$	1,621	$	1,680
2010				139		395		606		775		909		1,003		1,069		1,124		1,148
2011						133		362		543		779		923		1,063		1,177		1,242
2012								115		320		464		642		774		864		969
2013										100		363		525		676		823		954
2014												83		290		480		620		747
2015														83		285		501		671
2016																145		427		671
2017																		108		322
2018																				125
Total																			$	8,529

* 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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2009	$	1,244	$	1,090	$	1,060	$	1,009	$	992	$	986	$	971	$	973	$	970	$	950	$	(20)	$	4	46,280
2010				1,679		1,544		1,388		1,327		1,304		1,283		1,280		1,281		1,282		1		1	50,111
2011						1,416		1,339		1,225		1,191		1,161		1,150		1,151		1,145		(6)		8	50,560
2012								1,323		1,226		1,161		1,137		1,118		1,128		1,117		(11)		3	45,379
2013										1,460		1,450		1,340		1,320		1,310		1,304		(6)		(3)	44,711
2014												1,564		1,578		1,566		1,553		1,564		11		27	53,009
2015														1,729		1,685		1,698		1,676		(22)		40	58,471
2016																1,644		1,698		1,738		40		58	59,513
2017																		1,923		1,913		(10)		148	54,052
2018																				1,564				570	34,370
Total																			$	14,253	$	(23)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(11,305)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				40		3
Unallocated loss adjustment expense prior year development																						(2)
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	2,988	$	(22)

* 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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	Unaudited
2009	$	272	$	624	$	780	$	854	$	896	$	910	$	927	$	931	$	933	$	935
2010				413		900		1,077		1,168		1,207		1,236		1,245		1,252		1,258
2011						339		778		969		1,045		1,068		1,085		1,094		1,101
2012								280		725		917		985		1,031		1,057		1,066
2013										334		839		1,079		1,158		1,209		1,229
2014												336		972		1,270		1,345		1,385
2015														402		1,035		1,335		1,449
2016																475		1,178		1,442
2017																		396		1,098
2018																				342
Total																			$	11,305

* 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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2009	$	3,037	$	2,979	$	2,973	$	2,992	$	2,980	$	2,976	$	2,971	$	2,972	$	2,973	$	2,971	$	(2)	$	2	1,606,155
2010				2,945		2,993		2,994		2,982		2,983		2,977		3,005		3,009		3,007		(2)		5	1,819,899
2011						3,241		3,301		3,267		3,269		3,258		3,262		3,261		3,261		-		5	1,777,851
2012								2,856		2,838		2,819		2,804		2,813		2,814		2,811		(3)		8	1,730,053
2013										2,705		2,706		2,671		2,672		2,669		2,663		(6)		12	1,736,129
2014												2,668		2,677		2,660		2,651		2,643		(8)		19	1,792,742
2015														2,738		2,714		2,702		2,694		(8)		38	1,771,419
2016																2,690		2,656		2,643		(13)		83	1,791,483
2017																		2,631		2,548		(83)		170	1,691,824
2018																				3,089				641	1,636,511
Total																			$	28,330	$	(125)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(26,111)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				45		9
Unallocated loss adjustment expense prior year development																						-
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	2,264	$	(116)

* 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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	Unaudited
2009	$	1,714	$	2,491	$	2,732	$	2,840	$	2,894	$	2,923	$	2,939	$	2,951	$	2,957	$	2,959
2010				1,690		2,480		2,723		2,833		2,889		2,924		2,943		2,954		2,961
2011						1,971		2,766		2,999		3,111		3,174		3,203		3,219		3,228
2012								1,596		2,335		2,562		2,668		2,724		2,754		2,770
2013										1,483		2,217		2,432		2,537		2,593		2,623
2014												1,457		2,194		2,413		2,523		2,579
2015														1,478		2,235		2,456		2,574
2016																1,478		2,199		2,416
2017																		1,446		2,156
2018																				1,845
Total																			$	26,111

* 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, 2018
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		2018 Prior Year Development		Total of IBNR Liabilities Plus Expected Development on Reported Losses	Cumulative Number of Reported Claims
	Unaudited
2009	$	553	$	532	$	544	$	579	$	635	$	602	$	599	$	580	$	576	$	584	$	8	$	76	16,251
2010				640		528		534		557		585		582		611		565		559		(6)		52	8,530
2011						534		542		576		641		676		685		700		687		(13)		83	7,816
2012								629		678		741		786		751		752		702		(50)		49	4,070
2013										482		533		589		570		528		511		(17)		51	2,547
2014												379		475		453		459		383		(76)		76	2,346
2015														439		523		550		503		(47)		85	2,357
2016																294		285		274		(11)		53	1,646
2017																		197		238		41		147	640
2018																				76				35	282
Total																			$	4,517	$	(171)
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of
Reinsurance from the table below																				(3,256)		-
Liabilities for losses and loss adjustment expenses and prior year development
before accident year 2009, net of reinsurance																				3,574		154
Unallocated loss adjustment expense prior year development																						13
Liabilities for losses and loss adjustment expenses and prior year loss
development, net of reinsurance																			$	4,835	$	(4)

* 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		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	Unaudited
2009	$	42	$	134	$	231	$	286	$	368	$	409	$	429	$	447	$	461	$	472
2010				57		149		243		321		404		435		455		464		473
2011						21		140		259		385		449		532		549		559
2012								86		194		286		414		481		498		525
2013										87		154		261		321		368		390
2014												21		96		185		233		262
2015														35		132		238		320
2016																53		140		163
2017																		13		59
2018																				33
Total																			$	3,256

* 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, 2018

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)		2018		2017
Equity funds	$	43,059	$	48,594
Bond funds		7,231		7,793
Balanced funds		24,100		27,656
Money market funds		787		730
Total	$	75,177	$	84,773

Schedule of details concerning entity's GMDB exposures, by benefit type

At December 31,	2018				2017
		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	$	89	$	15	$	99	$	17
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)		2018		2017		2016
Balance, beginning of year	$	352	$	402	$	491
Reserve increase (decrease)		93		(14)		(32)
Benefits paid		(43)		(42)		(57)
Changes in reserves related to unrealized appreciation of investments		(5)		6		-
Balance, end of year	$	397	$	352	$	402

DEBT (Tables)

12 Months Ended

Dec. 31, 2018

DEBT

Schedule of total debt outstanding

				Balance at		Balance at
At December 31, 2018	Range of	Maturity		December 31,		December 31,
(in millions)	Interest Rate(s)	Date(s)			2018		2017
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	0% - 8.13%		2019 - 2097	$	20,853	$	20,339
Junior subordinated debt	4.88% - 8.63%		2037 - 2058		1,548		841
AIG Japan Holdings Kabushiki Kaisha	0.28% - 0.44%		2020 - 2021		331		334
Validus notes and bonds payable	8.88%		2040		359		-
AIGLH notes and bonds payable	6.63% - 7.50%		2025 - 2029		282		281
AIGLH junior subordinated debt	7.57% - 8.50%		2030 - 2046		361		361
Total AIG general borrowings					23,734		22,156
AIG borrowings supported by assets:^(a)
MIP notes payable					-		356
Series AIGFP matched notes and bonds payable	2.69% - 2.75%		2046 - 2047		21		21
GIAs, at fair value	0.5% - 7.62%		2019 - 2053		2,164		2,707
Notes and bonds payable, at fair value	0.5% - 9.97%		2030 - 2040		49		181
Total AIG borrowings supported by assets					2,234		3,265
Total debt issued or guaranteed by AIG					25,968		25,421
Debt not guaranteed by AIG:
Other subsidiaries notes, bonds, loans and
mortgages payable	2.68% - 4.73%		2019 - 2024		168		190
Debt of consolidated investments^(b)	0% - 10.3%		2019 - 2067		8,404		6,029
Total debt not guaranteed by AIG					8,572		6,219
Total long term debt				$	34,540	$	31,640

Maturities of long-term debt, excluding borrowings of debt of consolidated investments

December 31, 2018			Year Ending
(in millions)		Total		2019		2020		2021		2022		2023		Thereafter
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	$	20,853	$	999	$	1,344	$	1,497	$	1,509	$	1,599	$	13,905
Junior subordinated debt		1,548		-		-		-		-		-		1,548
AIG Japan Holdings Kabushiki Kaisha		331		-		114		217		-		-		-
Validus notes and bonds payable		359		-		-		-		-		-		359
AIGLH notes and bonds payable		282		-		-		-		-		-		282
AIGLH junior subordinated debt		361		-		-		-		-		-		361
Total AIG general borrowings		23,734		999		1,458		1,714		1,509		1,599		16,455
AIG borrowings supported by assets:
MIP notes payable		-		-		-		-		-		-		-
Series AIGFP matched notes and
bonds payable		21		-		-		-		-		-		21
GIAs, at fair value		2,164		272		31		157		48		115		1,541
Notes and bonds payable, at fair value		49		-		-		-		-		-		49
Total AIG borrowings supported by assets		2,234		272		31		157		48		115		1,611
Total debt issued or guaranteed by AIG		25,968		1,271		1,489		1,871		1,557		1,714		18,066
Other subsidiaries notes, bonds, loans
and mortgages payable		168		117		1		42		1		1		6
Total	$	26,136	$	1,388	$	1,490	$	1,913	$	1,558	$	1,715	$	18,072

Schedule of detail for uncollateralized and collateralized notes, bonds, loans and mortgages payable

		Uncollateralized		Collateralized
At December 31, 2018		Notes/Bonds/Loans		Loans and
(in millions)		Payable		Mortgages Payable		Total
AIG general borrowings	$	331	$	-	$	331
Other subsidiaries notes, bonds, loans and mortgages payable^*		2		166		168
Total	$	333	$	166	$	499

* AIG does not guarantee any of these borrowings.

Summary of Credit Facility

At December 31, 2018				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, 2018

EQUITY

Rollforward of common stock outstanding

	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
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
Year Ended December 31, 2018
Shares, beginning of year	1,906,671,492	(1,007,626,835)	899,044,657
Shares issued	-	4,091,922	4,091,922
Shares repurchased	-	(36,527,150)	(36,527,150)
Shares, end of year	1,906,671,492	(1,040,062,063)	866,609,429

Dividends Paid

				Dividends Paid
Declaration Date	Record Date	Payment Date		Per Share
October 31, 2018	December 12, 2018	December 26, 2018	$	0.32
August 2, 2018	September 17, 2018	September 28, 2018		0.32
May 2, 2018	June 14, 2018	June 28, 2018		0.32
February 8, 2018	March 15, 2018	March 29, 2018		0.32

November 2, 2017	December 8, 2017	December 22, 2017		0.32
August 2, 2017	September 15, 2017	September 29, 2017		0.32
May 3, 2017	June 14, 2017	June 28, 2017		0.32
February 14, 2017	March 15, 2017	March 29, 2017		0.32

November 2, 2016	December 8, 2016	December 22, 2016		0.32
August 2, 2016	September 15, 2016	September 29, 2016		0.32
May 2, 2016	June 13, 2016	June 27, 2016		0.32
February 11, 2016	March 14, 2016	March 28, 2016		0.32

Repurchases Of Common Stock and Warrant

Years Ended December 31,
(in millions)		2018		2017		2016
Aggregate repurchases of common stock	$	1,739	$	6,275	$	11,460
Total number of common shares repurchased		37		100		201
Aggregate repurchases of warrants	$	11	$	3	$	309
Total number of warrants repurchased^*		1		-		17

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

Accumulated Other Comprehensive Income (Loss)

	Unrealized Appreciation									Fair Value of
	(Depreciation) of Fixed			Unrealized						Liabilities Under
	Maturity Securities on			Appreciation		Foreign		Retirement		Fair Value Option
	Which Other-Than-			(Depreciation)		Currency		Plan		Attributable to
	Temporary Credit			of All Other		Translation		Liabilities		Changes in
(in millions)	Impairments Were Taken			Investments		Adjustments		Adjustment		Own Credit Risk		Total
Balance, January 1, 2016, 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
Cumulative effect of change in
accounting principles		169		(285)		(284)		(183)		7		(576)
Change in unrealized depreciation
of investments		(1,320)		(8,688)		-		-		-		(10,008)
Change in deferred policy acquisition costs
adjustment and other		(57)		1,300		-		-		-		1,243
Change in future policy benefits		-		1,711		-		-		-		1,711
Change in foreign currency translation adjustments		-		-		(314)		-		-		(314)
Change in net actuarial loss		-		-		-		(23)		-		(23)
Change in prior service credit		-		-		-		(4)		-		(4)
Change in deferred tax asset (liability)		377		702		(35)		55		-		1,099
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		3		3
Total other comprehensive income (loss)		(1,000)		(4,975)		(349)		28		3		(6,293)
Noncontrolling interests		-		7		2		-		-		9
Balance, December 31, 2018, net of tax	$	(38)	$	2,426	$	(2,725)	$	(1,086)	$	10	$	(1,413)

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

Other comprehensive income (loss) reclassification adjustments

		Unrealized Appreciation								Fair Value of
		(Depreciation) of Fixed		Unrealized						Liabilities Under
		Maturity Securities on		Appreciation		Foreign		Retirement		Fair Value Option
		Which Other-Than-		(Depreciation)		Currency		Plan		Attributable to
		Temporary Credit		of All Other		Translation		Liabilities		Changes in
(in millions)		Impairments Were Taken		Investments		Adjustments		Adjustment		Own Credit Risk		Total
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 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

December 31, 2018
Unrealized change arising during period	$	(1,372)	$	(5,811)	$	(314)	$	(61)	$	3	$	(7,555)
Less: Reclassification adjustments
included in net income		5		(134)		-		(34)		-		(163)
Total other comprehensive income (loss),
before income tax benefit		(1,377)		(5,677)		(314)		(27)		3		(7,392)
Less: Income tax expense (benefit)		(377)		(702)		35		(55)		-		(1,099)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(1,000)	$	(4,975)	$	(349)	$	28	$	3	$	(6,293)

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)	2018			2017		2016	Consolidated Statements of Income
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments	$	5	$	50	$	123	Other realized capital gains
Total		5		50		123
Unrealized appreciation (depreciation) of all other investments
Investments		(134)		463		935	Other realized capital gains
Deferred acquisition costs adjustment		-		305		293	Amortization of deferred policy acquisition costs
Future policy benefits		-		-		-	Policyholder benefits and losses incurred
Total		(134)		768		1,228
Change in retirement plan liabilities adjustment
Prior-service credit		1		5		15	*
Actuarial losses		(35)		(100)		(186)	*
Total		(34)		(95)		(171)
Total reclassifications for the year	$	(163)	$	723	$	1,180

* 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65888546&loc=d3e21300-112643

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+ Details

EARNINGS PER SHARE (EPS) (Tables)

12 Months Ended

Dec. 31, 2018

EARNINGS PER SHARE (EPS)

Computation of basic and diluted EPS

Years Ended December 31,
(dollars in millions, except per share data)		2018		2017		2016
Numerator for EPS:
Income (loss) from continuing operations	$	103	$	(6,060)	$	(259)
Less: Net income from continuing operations attributable to noncontrolling interests		67		28		500
Income (loss) attributable to AIG common shareholders from continuing operations		36		(6,088)		(759)
Income (loss) from discontinued operations, net of income tax expense		(42)		4		(90)
Net loss attributable to AIG common shareholders	$	(6)	$	(6,084)	$	(849)
Denominator for EPS:
Weighted average shares outstanding — basic		898,405,537		930,561,286		1,091,085,131
Dilutive shares		11,735,705		-		-
Weighted average shares outstanding — diluted^(a)(b)		910,141,242		930,561,286		1,091,085,131
Income (loss) per common share attributable to AIG:
Basic:
Income (loss) from continuing operations	$	0.04	$	(6.54)	$	(0.70)
Loss from discontinued operations	$	(0.05)	$	-	$	(0.08)
Loss attributable to AIG	$	(0.01)	$	(6.54)	$	(0.78)
Diluted:
Income (loss) from continuing operations	$	0.04	$	(6.54)	$	(0.70)
Loss from discontinued operations	$	(0.05)	$	-	$	(0.08)
Loss attributable to AIG	$	(0.01)	$	(6.54)	$	(0.78)

STATUTORY FINANCIAL DATA AND RESTRICTIONS (Tables)

12 Months Ended

Dec. 31, 2018

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)		2018		2017		2016
Years Ended December 31,
Statutory net income (loss)^(a)(b):
General Insurance companies:
Domestic	$	(1,138)	$	(978)	$	260
Foreign		(348)		(318)		(1,326)
Total General Insurance companies	$	(1,486)	$	(1,296)	$	(1,066)
Life and Retirement companies:
Domestic	$	673	$	1,066	$	2,252
Foreign		(596)		21		47
Total Life and Retirement companies	$	77	$	1,087	$	2,299
At December 31,
Statutory capital and surplus^(a)(b):
General Insurance companies:
Domestic	$	18,172	$	20,938
Foreign		16,447		11,721
Total General Insurance companies	$	34,619	$	32,659
Life and Retirement companies:
Domestic	$	9,477	$	12,149
Foreign		1,744		446
Total Life and Retirement companies	$	11,221	$	12,595
Aggregate minimum required statutory capital and surplus:
General Insurance companies:
Domestic	$	4,307	$	5,134
Foreign		9,065		6,301
Total General Insurance companies	$	13,372	$	11,435
Life and Retirement companies:
Domestic	$	3,197	$	3,146
Foreign		1,338		121
Total Life and Retirement companies	$	4,535	$	3,267

(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 COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2018

SHARE-BASED COMPENSATION PLANS

Schedule of share-based compensation expense recognized in Consolidated Statements of Income

Years Ended December 31,
(in millions)		2018		2017		2016
Share-based compensation expense - pre-tax^(a)	$	337	$	353	$	237
Share-based compensation expense - after tax^(b)		266		229		154

(b) We also recognized $9 million of excess tax benefits due to share settlements occurring in 2018.

Schedule of assumptions used to estimate the fair value of PSUs based on AIG's TSR

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

(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, 2018^(b)	2018 LTI	2017 LTI	2016 LTI	2015 LTI	2014 LTI	2018 LTI		2017 LTI		2016 LTI		2015 LTI		2014 LTI
Unvested, beginning of year	-	2,173,115	1,467,745	1,291,788	823,311	$	-	$	62.78	$	60.90	$	60.02	$	48.81
Granted	4,640,722	43,792	-	-	-		55.47		58.52		-		-		-
Vested^(c)	(1,205,653)	(530,388)	(728,576)	(266,184)	(793,955)		55.85		63.67		60.28		57.87		48.81
Forfeited	(113,041)	(106,524)	(98,509)	(753,272)	(29,356)		55.92		63.13		62.13		54.46		48.84
Unvested, end of year^(d)	3,322,028	1,579,995	640,660	272,332	-	$	55.32	$	62.32	$	61.55	$	60.51	$	-

(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 weighted-average assumptions

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

	2018		2017
Expected annual dividend yield^(a)	2.32	%	2.03	%
Expected volatility^(b)	23.29	%	20.96	%
Risk-free interest rate^(c)	2.83	%	1.94	%
Expected term^(d)	4.50 - 6.47	years	4.5	years

(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 implied volatility of 24 months stock option estimated by the Bloomberg Professional service as of the valuation date.

(d) The contractual terms are 7 and 10 years.

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, 2018	Units		Exercise Price	Contractual Life		(in millions)
Outstanding, beginning of year	2,500,000	$	62.90		6.48
Granted	2,752,098		55.38
Exercised	-		-
Forfeited or expired	(46,299)		55.94
Outstanding, end of year	5,205,799	$	58.99		7.38	$	-
Exercisable, end of year	486,229	$	59.90		4.07	$	-

EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2018

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)		2018		2017		2018		2017		2018		2017		2018		2017
Change in projected benefit obligation:
Benefit obligation, beginning of year	$	5,091	$	4,948	$	1,202	$	1,246	$	190	$	196	$	63	$	80
Service cost		5		11		22		29		1		2		1		3
Interest cost		162		166		16		16		6		6		2		3
Actuarial (gain) loss		(383)		372		(28)		(29)		(10)		-		(14)		(2)
Benefits paid:
AIG assets		(16)		(19)		(9)		(10)		(15)		(13)		(1)		(1)
Plan assets		(306)		(161)		(32)		(26)		-		-		-		-
Plan amendment		-		-		3		-		-		-		-		(6)
Curtailments		-		-		-		(7)		-		-		-		-
Settlements		-		(226)		(5)		(12)		-		-		-		-
Foreign exchange effect		-		-		(31)		37		-		-		(1)		1
Other		-		-		-		(42)		-		(1)		-		(15)
Projected benefit obligation, end of year	$	4,553	$	5,091	$	1,138	$	1,202	$	172	$	190	$	50	$	63
Change in plan assets:
Fair value of plan assets, beginning
of year	$	4,350	$	3,843	$	875	$	803	$	-	$	-	$	-	$	-
Actual return on plan assets, net of expenses		(204)		584		6		67		-		-		-		-
AIG contributions		16		329		51		60		15		13		1		1
Benefits paid:
AIG assets		(16)		(19)		(9)		(10)		(15)		(13)		(1)		(1)
Plan assets		(306)		(161)		(32)		(26)		-		-		-		-
Settlements		-		(226)		(5)		(12)		-		-		-		-
Foreign exchange effect		-		-		(25)		19		-		-		-		-
Other		-		-		-		(26)		-		-		-		-
Fair value of plan assets, end of year	$	3,840	$	4,350	$	861	$	875	$	-	$	-	$	-	$	-
Funded status, end of year	$	(713)	$	(741)	$	(277)	$	(327)	$	(172)	$	(190)	$	(50)	$	(63)
Amounts recognized in the balance
sheet:
Assets	$	-	$	-	$	72	$	68	$	-	$	-	$	-	$	-
Liabilities		(713)		(741)		(349)		(395)		(172)		(190)		(50)		(63)
Total amounts recognized	$	(713)	$	(741)	$	(277)	$	(327)	$	(172)	$	(190)	$	(50)	$	(63)
Pre-tax amounts recognized in Accumulated
other comprehensive income:
Net gain (loss)	$	(1,450)	$	(1,373)	$	(149)	$	(170)	$	26	$	17	$	3	$	(11)
Prior service (cost) credit		-		-		(23)		(22)		-		1		3		5
Total amounts recognized	$	(1,450)	$	(1,373)	$	(172)	$	(192)	$	26	$	18	$	6	$	(6)

Schedule of accumulated benefit obligations

At December 31,
(in millions)		2018		2017
U.S. pension benefit plans	$	4,553	$	5,091
Non-U.S. pension benefit plans	$	1,125	$	1,188

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)		2018		2017		2018		2017		2018		2017		2018		2017
Projected benefit obligation	$	4,553	$	5,091	$	994	$	1,054	$	4,553	$	5,091	$	943	$	991
Accumulated benefit obligation		4,553		5,091		932		979		4,553		5,091		932		979
Fair value of plan assets		3,840		4,350		594		596		3,840		4,350		594		596

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)		2018		2017		2016		2018		2017		2016		2018		2017		2016		2018		2017		2016
Components of net periodic benefit
cost:
Service cost^*	$	5	$	11	$	19	$	22	$	29	$	31	$	1	$	2	$	2	$	1	$	3	$	3
Interest cost		162		166		181		16		16		21		6		6		7		2		3		3
Expected return on assets		(283)		(266)		(292)		(25)		(24)		(26)		-		-		-		-		-		-
Amortization of prior service cost (credit)		-		-		-		2		-		-		(1)		(1)		(12)		(2)		(1)		-
Amortization of net (gain) loss		28		26		25		7		12		7		-		(1)		(1)		1		1		1
Net periodic benefit cost (credit)		(88)		(63)		(67)		22		33		33		6		6		(4)		2		6		7
Curtailment gain		-		-		-		-		(6)		(6)		-		-		(1)		-		(2)		-
Settlement charges		-		60		149		-		1		2		-		-		-		-		-		-
Net benefit cost (credit)	$	(88)	$	(3)	$	82	$	22	$	28	$	29	$	6	$	6	$	(5)	$	2	$	4	$	7
Total recognized in Accumulated other
comprehensive income (loss)	$	(77)	$	32	$	(82)	$	20	$	87	$	(101)	$	9	$	(2)	$	(7)	$	12	$	9	$	1
Total recognized in net periodic benefit
cost and other comprehensive
income (loss)	$	11	$	35	$	(164)	$	(2)	$	59	$	(130)	$	3	$	(8)	$	(2)	$	10	$	5	$	(6)

* 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, 2018
Discount rate	4.22	%			1.71	%	4.17	%		4.12	%
Rate of compensation increase	N/A		^(b)		2.27	%	N/A			3.00	%
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	%

(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,	2018	2017
Following year:
Medical (before age 65)	5.93%	6.12%
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)		2018		2017		2018		2017
U.S. plans	$	4	$	4	$	(3)	$	(4)
Non-U.S. plans	$	10	$	14	$	(8)	$	(10)

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, 2018
Discount rate	3.61	%		1.60	%	3.53	%		3.59	%
Rate of compensation increase	N/A			2.27	%	N/A			3.00	%
Expected return on assets	6.75	%		2.78	%	N/A			N/A
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

* 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, 2018
Assets:
Cash and cash equivalents	$	501	$	-	$	-	$	501	$	97	$	-	$	-	$	97
Equity securities:
U.S.^(a)		240		-		-		240		-		-		-		-
International^(b)		137		-		-		137		218		84		-		302
Fixed maturity securities:
U.S. investment grade^(c)		-		1,463		13		1,476		-		-		-		-
International investment grade^(c)		-		157		-		157		-		130		-		130
U.S. and international high yield^(d)		-		96		-		96		-		185		-		185
Mortgage and other asset-backed
securities^(e)		-		36		-		36		-		-		-		-
Other fixed maturity securities		-		-		-		-		-		2		-		2
Other investment types^(g):
Futures		27		-		-		27		-		-		-		-
Direct private equity^(f)		-		-		14		14		-		-		-		-
Insurance contracts		-		18		-		18		-		-		145		145
Total	$	905	$	1,770	$	27	$	2,702	$	315	$	401	$	145	$	861
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

(a) Includes passive and active U.S. equity strategies.

(b) Includes passive and active international equity strategies.

(c) Includes 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) Represents investments in collateralized loan obligations. As of December 31, 2017, the plan held additional asset-backed securities.

(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 $1,138 million and $777 million at December 31, 2018 and 2017, 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, 2018		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	$	12	$	(2)	$	5	$	(3)	$	-	$	-	$	1	$	-	$	13	$	1
Direct private equity		15		(2)		3		(2)		-		-		-		-		14		(1)
Total	$	27	$	(4)	$	8	$	(5)	$	-	$	-	$	1	$	-	$	27	$	-
Non-U.S. Plan Assets:
Insurance contracts		113		31		1		-		-		-		-		-		145		-
Total	$	113	$	31	$	1	$	-	$	-	$	-	$	-	$	-	$	145	$	-

																				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:
Insurance contracts		108		4		1		-		-		-		-		-		113		-
Total	$	108	$	4	$	1	$	-	$	-	$	-	$	-	$	-	$	113	$	-

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
2019	$	274	$	77	$	13	$	1
2020		270		42		13		1
2021		281		41		13		1
2022		279		41		13		1
2023		276		42		13		2
2024-2028		1,361		245		56		10

U.S.

Defined Benefit Plan Disclosure [Line Items]

Schedule of asset allocation percentage by major asset class and target allocation

	Target		Actual		Actual
At December 31,	2019		2018		2017
Asset class:
Equity securities	26	%	25	%	45	%
Fixed maturity securities	60	%	47	%	36	%
Other investments	14	%	28	%	19	%
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,	2019		2018		2017
Asset class:
Equity securities	30	%	35	%	49	%
Fixed maturity securities	51	%	37	%	32	%
Other investments	18	%	17	%	13	%
Cash and cash equivalents	1	%	11	%	6	%
Total	100	%	100	%	100	%

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

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)		2018		2017		2016
U.S.	$	(12)	$	1,940	$	1,041
Foreign		269		(474)		(1,115)
Total	$	257	$	1,466	$	(74)

Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations

Years Ended December 31,
(in millions)		2018		2017		2016
Foreign and U.S. components of actual income tax expense:
U.S.:
Current	$	134	$	427	$	140
Deferred		(175)		6,865		(270)
Foreign:
Current		202		209		436
Deferred		(7)		25		(121)
Total	$	154	$	7,526	$	185

Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate

	2018						2017							2016
		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	$	255	$	54	21.0	%	$	1,476	$	517		35.0	%	$	(159)	$	(56)	35.0	%
Adjustments:
Tax exempt interest				(37)	(14.5)					(111)		(7.5)					(178)	111.9
Uncertain tax positions				176	69.0					660		44.7					268	(168.6)
Reclassifications from accumulated
other comprehensive income				(72)	(28.2)					(184)		(12.5)					(132)	83.0
Dispositions of Subsidiaries				-	-					17		1.2					118	(74.2)
Tax Attribute Restoration				-	-					-		-					(164)	103.1
Non-controlling Interest				(1)	(0.4)					(7)		(0.5)					(81)	50.9
Non-deductible transfer pricing
charges				29	11.4					35		2.4					102	(64.2)
Dividends received deduction				(38)	(14.8)					(90)		(6.1)					(75)	47.2
Effect of foreign operations				44	17.3					69		4.7					234	(147.2)
Share-based compensation
payments excess tax deduction				(13)	(5.1)					(40)		(2.7)					-	-
State income taxes				10	3.9					(9)		(0.6)					23	(14.5)
Impact of Tax Act				62	24.3					6,687		453.0					-	-
Global intangible low-taxed income				21	8.2					-		-					-	-
Other				(102)	(40.0)					(58)		(3.9)					13	(8.2)
Effect of discontinued operations				40	15.7					3		0.2					35	(22.0)
Valuation allowance:
Continuing operations				21	8.2					43		2.9					83	(52.2)
Consolidated total amounts		255		194	76.0			1,476		7,532		510.3			(159)		190	(119.5)
Amounts attributable to discontinued
operations		(2)		40	NM			10		6		60.0			(85)		5	(5.9)
Amounts attributable to continuing
operations	$	257	$	154	59.9	%	$	1,466	$	7,526		513.4	%	$	(74)	$	185	(250.0)	%

Schedule of components of the net deferred tax asset

December 31,
(in millions)		2018		2017
Deferred tax assets:
Losses and tax credit carryforwards	$	11,792	$	11,931
Basis differences on investments		2,038		2,133
Life policy reserves		2,200		1,996
Accruals not currently deductible, and other		608		532
Investments in foreign subsidiaries		173		159
Loss reserve discount		272		526
Loan loss and other reserves		-		34
Unearned premium reserve reduction		504		566
Fixed assets and intangible assets		531		442
Other		962		731
Employee benefits		604		601
Total deferred tax assets		19,684		19,651
Deferred tax liabilities:
Deferred policy acquisition costs		(2,342)		(2,313)
Unrealized gains related to available for sale debt securities		(490)		(2,151)
Loan loss and other reserves		(20)		-
Total deferred tax liabilities		(2,852)		(4,464)
Net deferred tax assets before valuation allowance		16,832		15,187
Valuation allowance		(1,780)		(1,374)
Net deferred tax assets (liabilities)	$	15,052	$	13,813

Schedule of consolidated income tax group credits carryforwards

December 31, 2018				Tax	Expiration
(in millions)		Gross		Effected	Periods
Net operating loss carryforwards	$	36,268	$	7,616	2028 - 2037
Capital loss carryforwards		82		17	2023
Foreign tax credit carryforwards				3,516	2019 - 2023
Other carryforwards				814	Various
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a tax return basis				11,963
Unrecognized tax benefit				(1,733)
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a U.S. GAAP basis^*			$	10,230

* Includes other carryforwards, i.e. general business credits of $30 million and refundable Alternative Minimum Tax Credits of $39 million on a U.S. GAAP basis.

Schedule of consolidated income tax group tax losses carryforwards

December 31, 2018				Tax	Expiration
(in millions)		Gross		Effected	Periods
Net operating loss carryforwards	$	36,268	$	7,616	2028 - 2037
Capital loss carryforwards		82		17	2023
Foreign tax credit carryforwards				3,516	2019 - 2023
Other carryforwards				814	Various
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a tax return basis				11,963
Unrecognized tax benefit				(1,733)
Total AIG U.S. consolidated income tax group tax losses and credits
carryforwards on a U.S. GAAP basis^*			$	10,230

* Includes other carryforwards, i.e. general business credits of $30 million and refundable Alternative Minimum Tax Credits of $39 million on a U.S. GAAP basis.

Schedule of net deferred tax assets (liabilities)

December 31,
(in millions)		2018		2017
Net U.S. consolidated return group deferred tax assets	$	15,479	$	15,603
Net deferred tax assets (liabilities) in accumulated other comprehensive income		(510)		(2,070)
Valuation allowance		(405)		(86)
Subtotal		14,564		13,447
Net foreign, state and local deferred tax assets		2,031		1,874
Valuation allowance		(1,374)		(1,288)
Subtotal		657		586
Subtotal - Net U.S., foreign, state and local deferred tax assets		15,221		14,033
Net foreign, state and local deferred tax liabilities		(169)		(220)
Total AIG net deferred tax assets (liabilities)	$	15,052	$	13,813

Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits

Years Ended December 31,
(in millions)		2018		2017		2016
Gross unrecognized tax benefits, beginning of year	$	4,707	$	4,530	$	4,331
Increases in tax positions for prior years		14		210		235
Decreases in tax positions for prior years		(6)		(33)		(39)
Increases in tax positions for current year		-		-		3
Lapse in statute of limitations		-		-		-
Settlements		(6)		-		-
Activity of discontinued operations		-		-		-
Gross unrecognized tax benefits, end of year	$	4,709	$	4,707	$	4,530

Schedule of tax years that remain subject to examination by major tax jurisdictions

At December 31, 2018	Open Tax Years
Major Tax Jurisdiction
United States	2000-2017
Australia	2014-2017
France	2017-2018
Japan	2012-2017
Korea	2013-2017
Singapore	2014-2017
United Kingdom	2017-2018

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2018

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)		2018		2017		2018		2017		2018		2017		2018		2017
Total revenues	$	11,712	$	12,632	$	11,631	$	12,502	$	11,486	$	11,751	$	12,560	$	12,635
Income (loss) from continuing
operations before income taxes^*		1,227		1,727		1,252		1,667		(1,527)		(2,803)		(695)		875
Income (loss) from discontinued
operations, net of income taxes		(1)		-		-		8		(39)		(1)		(2)		(3)
Net income (loss)		949		1,211		931		1,118		(1,259)		(1,713)		(560)		(6,672)
Net income (loss) from
continuing operations attributable
to noncontrolling interests		11		26		(6)		(12)		-		26		62		(12)
Net income (loss) attributable to AIG^*	$	938	$	1,185	$	937	$	1,130	$	(1,259)	$	(1,739)	$	(622)	$	(6,660)
Income (loss) per common share
attributable to AIG:
Basic:
Income (loss) from continuing
operations	$	1.03	$	1.21	$	1.04	$	1.21	$	(1.37)	$	(1.91)	$	(0.70)	$	(7.33)
Income (loss) from discontinued
operations	$	-	$	-	$	-	$	0.01	$	(0.04)	$	-	$	(0.70)	$	-
Diluted:
Income (loss) from continuing
operations	$	1.01	$	1.18	$	1.02	$	1.18	$	(1.37)	$	(1.91)	$	(0.70)	$	(7.33)
Income (loss) from discontinued
operations	$	-	$	-	$	-	$	0.01	$	(0.04)	$	-	$	(0.70)	$	-
Weighted average shares
outstanding:
Basic	907,951,597		980,777,243		903,215,488		925,751,084		895,237,359		908,667,044		887,508,718		908,115,499
Diluted	925,266,577		1,005,315,030		916,572,481		948,248,771		895,237,359		908,667,044		887,508,718		908,115,499
Noteworthy quarterly items -
(income) expense:
Other-than-temporary
impairments		87		68		36		67		35		88		93		37
Net (gain) loss on sale of
divested businesses		(8)		100		(25)		60		(2)		13		(3)		(241)
Federal and foreign valuation
allowance for deferred tax assets		30		(13)		7		(8)		5		24		(21)		40
Net (gain) loss on extinguishment of
debt		4		(1)		5		(4)		1		1		(3)		(1)
Prior year unfavorable (favorable)
development		(40)		61		(26)		391		949		901		546		212
Restructuring and other costs		24		181		200		47		35		31		136		154
Impact of Tax Act		-		-		-		-		62		-		-		6,687

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

12 Months Ended

Dec. 31, 2018

Schedule II Condensed Financial Information of Registrant - Parent Company Only

Condensed Consolidating Balance Sheets

		American
		International		Validus					Reclassifications
		Group, Inc.		Holdings,				Other		and	Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
December 31, 2018
Assets:
Short-term investments^(a)	$	1,141	$	2	$	-	$	10,329	$	(1,798)	$	9,674
Other investments^(b)		3,377		-		-		301,158		-		304,535
Total investments		4,518		2		-		311,487		(1,798)		314,209
Cash		2		9		9		2,853		-		2,873
Loans to subsidiaries^(c)		34,963		-		-		615		(35,578)		-
Investment in consolidated subsidiaries^(c)		33,300		4,029		26,321		-		(63,650)		-
Other assets, including deferred income taxes^(d)		15,389		1,798		124		159,430		(1,839)		174,902
Total assets	$	88,172	$	5,838	$	26,454	$	474,385	$	(102,865)	$	491,984
Liabilities:
Insurance liabilities	$	-	$	-	$	-	$	293,652	$	-	$	293,652
Long-term debt		22,422		359		643		11,116		-		34,540
Other liabilities, including intercompany balances^(b)		8,774		228		144		100,974		(3,637)		106,483
Loans from subsidiaries^(c)		615		-		-		34,963		(35,578)		-
Total liabilities		31,811		587		787		440,705		(39,215)		434,675
Total AIG shareholders’ equity		56,361		5,251		25,667		32,732		(63,650)		56,361
Non-redeemable noncontrolling interests		-		-		-		948		-		948
Total equity		56,361		5,251		25,667		33,680		(63,650)		57,309
Total liabilities and equity	$	88,172	$	5,838	$	26,454	$	474,385	$	(102,865)	$	491,984

December 31, 2017
Assets:
Short-term investments^(a)	$	2,541	$	-	$	-	$	11,559	$	(3,714)	$	10,386
Other investments^(b)		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^(c)		35,004		-		-		517		(35,521)		-
Investment in consolidated subsidiaries^(c)		40,135		-		30,359		-		(70,494)		-
Other assets, including deferred income taxes^(d)		16,016		-		170		159,594		(2,133)		173,647
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^(b)		12,458		-		143		112,275		(6,028)		118,848
Loans from subsidiaries^(c)		517		-		-		35,004		(35,521)		-
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

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

Condensed Consolidating Statements of Income (Loss)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2018
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	(580)	$	(240)	$	2,847	$	-	$	(2,027)	$	-
Other income		938		23		1		46,506		(79)		47,389
Total revenues		358		(217)		2,848		46,506		(2,106)		47,389
Expenses:
Interest expense		954		18		50		302		(15)		1,309
Loss on extinguishment of debt		-		-		-		7		-		7
Other expenses		803		27		3		45,048		(65)		45,816
Total expenses		1,757		45		53		45,357		(80)		47,132
Income (loss) from continuing operations before income tax
expense (benefit)		(1,399)		(262)		2,795		1,149		(2,026)		257
Income tax expense (benefit)		(1,433)		-		39		1,548		-		154
Income (loss) from continuing operations		34		(262)		2,756		(399)		(2,026)		103
Loss from discontinued operations, net
of income taxes		(40)		-		-		(2)		-		(42)
Net income (loss)		(6)		(262)		2,756		(401)		(2,026)		61
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		67		-		67
Net income (loss) attributable to AIG	$	(6)	$	(262)	$	2,756	$	(468)	$	(2,026)	$	(6)
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
(Gain) 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 (loss) from continuing operations
attributable to noncontrolling interests		-		-		-		28		-		28
Net income (loss) attributable to AIG	$	(6,084)	$	-	$	1,929	$	(113)	$	(1,816)	$	(6,084)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
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
(Gain) 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 from continuing operations
attributable to noncontrolling interests		-		-		-		500		-		500
Net income (loss) attributable to AIG	$	(849)	$	-	$	(238)	$	(1,228)	$	1,466	$	(849)

* Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income (Loss)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2018
Net income (loss)	$	(6)	$	(262)	$	2,756	$	(401)	$	(2,026)	$	61
Other comprehensive income (loss)		(6,302)		-		2,508		12,298		(14,797)		(6,293)
Comprehensive income (loss)		(6,308)		(262)		5,264		11,897		(16,823)		(6,232)
Total comprehensive income attributable to
noncontrolling interests		-		-		-		76		-		76
Comprehensive income (loss) attributable to AIG	$	(6,308)	$	(262)	$	5,264	$	11,821	$	(16,823)	$	(6,308)
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)

Condensed Consolidating Statements of Cash Flows

		American
		International		Validus					Reclassifications
		Group, Inc.		Holdings,				Other		and	Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2018
Net cash (used in) provided by operating activities	$	1,256	$	656	$	2,445	$	1,651	$	(5,947)	$	61
Cash flows from investing activities:
Sales of investments		5,587		13		-		59,918		(3,206)		62,312
Sales of divested businesses, net		-		-		-		10		-		10
Purchase of investments		(1,980)		-		-		(59,778)		3,206		(58,552)
Loans to subsidiaries – net		868		-		-		(90)		(778)		-
Contributions from (to) subsidiaries - net		1		-		-		-		(1)		-
Acquisition of businesses, net of cash and
restricted cash acquired		(5,475)		112		-		(354)		-		(5,717)
Net change in short-term investments		1,533		-		-		(9)		-		1,524
Other, net		(73)		-		-		273		-		200
Net cash (used in) provided by investing activities		461		125		-		(30)		(779)		(223)
Cash flows from financing activities:
Issuance of long-term debt		2,470		-		-		2,264		-		4,734
Repayments of long-term debt		(1,493)		(350)		-		(1,829)		-		(3,672)
Purchase of common stock		(1,739)		-		-		-		-		(1,739)
Intercompany loans - net		90		-		-		(868)		778		-
Cash dividends paid		(1,138)		(6)		(2,456)		(3,485)		5,947		(1,138)
Other, net		212		(416)		-		2,812		1		2,609
Net cash (used in) provided by financing activities		(1,598)		(772)		(2,456)		(1,106)		6,726		794
Effect of exchange rate changes on cash and
restricted cash		-		-		-		(11)		-		(11)
Change in cash and restricted cash		119		9		(11)		504		-		621
Cash and restricted cash at beginning of year		8		-		20		2,709		-		2,737
Cash and restricted cash at end of year	$	127	$	9	$	9	$	3,213	$	-	$	3,358

Year Ended December 31, 2017
Net cash (used in) provided by operating activities	$	36	$	-	$	1,413	$	(6,659)	$	(2,608)	$	(7,818)
Cash flows from investing activities:
Sales of investments		5,821		-		-		74,477		(3,758)		76,540
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 short-term investments		1,994		-		-		104		-		2,098
Other, net		(183)		-		(5)		(1,955)		-		(2,143)
Net cash (used in) provided by investing activities		7,852		-		(5)		8,902		(2,708)		14,041
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) provided by financing activities		(7,883)		-		(1,422)		(1,708)		5,316		(5,697)
Effect of exchange rate changes on cash and
restricted cash		-		-		-		(29)		-		(29)
Change in cash and restricted cash		5		-		(14)		506		-		497
Cash and restricted cash at beginning of year		3		-		34		2,070		-		2,107
Change in cash of businesses held for sale		-		-		-		133		-		133
Cash and restricted cash at end of year	$	8	$	-	$	20	$	2,709	$	-	$	2,737

		American
		International		Validus					Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2016
Net cash (used in) provided by operating activities	$	2,112	$	-	$	1,707	$	3,634	$	(3,951)	$	3,502
Cash flows from investing activities:
Sales of investments		5,769		-		-		80,453		(11,685)		74,537
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 short-term investments		(1,170)		-		-		(1,919)		-		(3,089)
Other, net		(141)		-		-		(879)		-		(1,020)
Net cash (used in) provided by investing activities		8,778		-		-		(2,367)		(3,159)		3,252
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 and
restricted cash		-		-		-		55		-		55
Change in cash and restricted cash		(413)		-		(82)		471		-		(24)
Cash and restricted cash at beginning of year		416		-		116		1,706		-		2,238
Change in cash of businesses held for sale		-		-		-		(107)		-		(107)
Cash and restricted cash at end of year	$	3	$	-	$	34	$	2,070	$	-	$	2,107

Supplementary Disclosure of Condensed Consolidating Cash Flow Information

		American
		International		Validus					Reclassifications
		Group, Inc.		Holdings,				Other		and	Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Year Ended December 31, 2018
Cash	$	2	$	9	$	9	$	2,853	$	-	$	2,873
Restricted cash included in Short-term investments		124		-		-		18		-		142
Restricted cash included in Other assets		1		-		-		342		-		343
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	127	$	9	$	9	$	3,213	$	-	$	3,358
Cash (paid) received during the year ended
December 31, 2018 for:
Interest:
Third party	$	(914)	$	(17)	$	(48)	$	(333)	$	-	$	(1,312)
Intercompany		1		-		(1)		-		-		-
Taxes:
Income tax authorities	$	(32)	$	-	$	-	$	(122)	$	-	$	(154)
Intercompany		895		-		-		(895)		-		-

Year Ended December 31, 2017
Cash	$	3	$	-	$	20	$	2,339	$	-	$	2,362
Restricted cash included in Short-term investments		4		-		-		54		-		58
Restricted cash included in Other assets		1		-		-		316		-		317
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	8	$	-	$	20	$	2,709	$	-	$	2,737
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)		-		-

Year Ended December 31, 2016
Cash	$	2	$	-	$	34	$	1,832	$	-	$	1,868
Restricted cash included in Short-term investments		-		-		-		46		-		46
Restricted cash included in Other assets		1		-		-		192		-		193
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	3	$	-	$	34	$	2,070	$	-	$	2,107
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)		-		-

Supplementary disclosure of non-cash activities

Years Ended December 31,
(in millions)		2018		2017		2016
Intercompany non-cash financing and investing activities:
Capital contributions	$	2,369	$	259	$	3,245
Dividends received in the form of securities		745		735		5,234
Return of capital		2,706		26		-
Fixed maturity securities received in exchange for equity securities		-		-		440
Non-cash financing/investing activities:
Non-cash consideration received from sale of United Guaranty		-		-		1,101

BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Millions					3 Months Ended										12 Months Ended
	Nov. 13, 2018 USD ($)	Jul. 18, 2018 USD ($)	Nov. 14, 2016 USD ($)	Sep. 16, 2016 USD ($)	Dec. 31, 2018 USD ($) item $ / shares	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($) $ / shares	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2018 USD ($) item $ / shares	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 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					$ (622)	$ (1,259)	$ 937	$ 938	$ (6,660)	$ (1,739)	$ 1,130	$ 1,185			$ (6)	$ (6,084)	$ (849)
Income (loss) from continuing operations before income tax expense					(695)	(1,527)	1,252	1,227	875	(2,803)	1,667	1,727			257	1,466	(74)
Net income (loss) on sale of divested businesses					(3)	(2)	(25)	(8)	$ (241)	13	$ 60	$ 100			38	68	545
Repayments of Long-term Debt															3,672	3,698	4,082
Other Income															$ 1,638	2,412	3,121
Fortitude Holdings
Basis of Presentation [Line Items]
Contingent consideration period															18 months
Validus Holding Ltd [Member]
Basis of Presentation [Line Items]
Payments to Acquire Business		$ 5,475
Net income (loss) attributable to AIG															$ (206)
Interest acquired		100.00%
Adjustment
Basis of Presentation [Line Items]
Net income (loss) attributable to AIG					(87)	$ (40)	$ 0	$ 0
Income (loss) from continuing operations before income tax expense					(132)
Adjustments 2016
Basis of Presentation [Line Items]
Net income (loss) attributable to AIG																	(174)
Income (loss) from continuing operations before income tax expense																	(57)
Adjustments 2018
Basis of Presentation [Line Items]
Net income (loss) attributable to AIG															(77)	95	117
Income (loss) from continuing operations before income tax expense															(98)
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	$ 0	1,101
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																	464
Total consideration																		$ 2,500
Repayments of Long-term Debt																	1,200
Other Income																	$ 1,100
AIG Fuji Life Insurance
Basis of Presentation [Line Items]
Consideration in cash			$ 333
Fortitude Holdings
Basis of Presentation [Line Items]
Consideration in cash	$ 381
Contingent consideration receivable, maximum					100										100
Contingent condieration receivable					$ 95										$ 95
Minimum
Basis of Presentation [Line Items]
Number of Countries in which the entity operates \| item					80										80
TC Group Cayman \| Fortitude Holdings
Basis of Presentation [Line Items]
Voting interest in subsidiary, Percent	19.90%
American International Group, Inc. \| Fortitude Holdings
Basis of Presentation [Line Items]
Percentage of common stock held after closing of transaction	80.10%
Fortitude Holdings \| Fortitude RE
Basis of Presentation [Line Items]
Parent owneship interest					100.00%										100.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other significant accounting policies) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Summary of Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle		$ (8)
Earning pattern of a quota share reinsurance contract	24 months
Other income
Proceeds from legal settlements	$ 11	27	$ 44
Premiums and other receivables
Allowance for doubtful accounts on premiums and other receivables	216	236
Accumulated Other Comprehensive Income (Loss)
Summary of Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle		(576)
Retained Earnings
Summary of Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle		$ 568
Accounting Standards Update - Recognition and Measurement of Financial Assets and Financial Liabilities \| Accumulated Other Comprehensive Income (Loss)
Summary of Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle	(824)
Accounting Standards Update - Recognition and Measurement of Financial Assets and Financial Liabilities \| Retained Earnings
Summary of Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle	824
Accounting Standards Update - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income \| Accumulated Other Comprehensive Income (Loss)
Summary of Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle	248
Accounting Standards Update - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income \| Retained Earnings
Summary of Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle	$ (248)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other Assets and PPE) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other assets
Deferred bonus interest and deferred sales inducement assets	$ 752	$ 738
Amortization expense associated with deferred bonus interest and deferred sales inducement assets	$ 156	$ 94	$ 77
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 operating segment) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total Revenues	$ 12,560	$ 11,486	$ 11,631	$ 11,712	$ 12,635	$ 11,751	$ 12,502	$ 12,632	$ 47,389	$ 49,520	$ 52,367
Net investment income									12,476	14,179	14,065
Interest Expense									1,309	1,168	1,260
Amortization of deferred policy acquisition costs									5,386	4,288	4,521
Adjusted pre-tax income (loss)	$ (695)	$ (1,527)	$ 1,252	$ 1,227	$ 875	$ (2,803)	$ 1,667	$ 1,727	257	1,466	(74)
AIG Consolidation and Eliminations
Segment Reporting Information [Line Items]
Total Revenues									(171)	(308)	(494)
Net investment income									(232)	(280)	(351)
Interest Expense									85	(53)	(120)
Amortization of deferred policy acquisition costs									0	4	(117)
Adjusted pre-tax income (loss)									59	75	42
Total AIG Consolidated adjusted revenues and adjusted pre-tax income (loss)
Segment Reporting Information [Line Items]
Total Revenues									47,813	50,776	54,191
Net investment income									12,728	14,033	13,945
Interest Expense									1,343	1,168	1,260
Amortization of deferred policy acquisition costs									5,391	4,579	4,797
Adjusted pre-tax income (loss)									1,409	3,158	1,415
General Insurance \| Reportable Segments
Segment Reporting Information [Line Items]
Total Revenues									30,173	29,694	33,140
Net investment income									2,668	3,668	3,554
Interest Expense									0	22	28
Amortization of deferred policy acquisition costs									4,596	3,765	4,121
Adjusted pre-tax income (loss)									(469)	(813)	(2,051)
General Insurance \| Reportable Segments \| North America
Segment Reporting Information [Line Items]
Total Revenues									14,619	14,600	17,005
Net investment income									2,305	3,145	3,041
Interest Expense									0	31	28
Amortization of deferred policy acquisition costs									1,859	1,305	1,444
Adjusted pre-tax income (loss)									(8)	(232)	(2,399)
General Insurance \| Reportable Segments \| International
Segment Reporting Information [Line Items]
Total Revenues									15,554	15,094	16,135
Net investment income									363	523	513
Interest Expense									0	(9)	0
Amortization of deferred policy acquisition costs									2,737	2,460	2,677
Adjusted pre-tax income (loss)									(461)	(581)	348
Life and Retirement \| Reportable Segments
Segment Reporting Information [Line Items]
Total Revenues									14,136	15,586	13,778
Net investment income									7,922	7,816	7,622
Interest Expense									162	109	92
Amortization of deferred policy acquisition costs									680	743	613
Adjusted pre-tax income (loss)									3,190	3,831	3,428
Life and Retirement \| Reportable Segments \| Individual Retirement
Segment Reporting Information [Line Items]
Total Revenues									5,338	5,514	5,758
Net investment income									3,827	4,013	3,878
Interest Expense									82	58	50
Amortization of deferred policy acquisition costs									630	415	298
Adjusted pre-tax income (loss)									1,681	2,289	2,269
Life and Retirement \| Reportable Segments \| Group Retirement
Segment Reporting Information [Line Items]
Total Revenues									2,891	2,848	2,769
Net investment income									2,172	2,164	2,146
Interest Expense									42	32	26
Amortization of deferred policy acquisition costs									95	84	129
Adjusted pre-tax income (loss)									933	1,004	931
Life and Retirement \| Reportable Segments \| Life Insurance
Segment Reporting Information [Line Items]
Total Revenues									4,007	4,056	3,818
Net investment income									1,137	1,044	1,035
Interest Expense									25	13	12
Amortization of deferred policy acquisition costs									(50)	239	182
Adjusted pre-tax income (loss)									330	274	(37)
Life and Retirement \| Reportable Segments \| Institutional Markets
Segment Reporting Information [Line Items]
Total Revenues									1,900	3,168	1,433
Net investment income									786	595	563
Interest Expense									13	6	4
Amortization of deferred policy acquisition costs									5	5	4
Adjusted pre-tax income (loss)									246	264	265
Other Operations
Segment Reporting Information [Line Items]
Total Revenues									636	1,413	2,517
Net investment income									45	53	207
Interest Expense									1,066	968	978
Amortization of deferred policy acquisition costs									10	(9)	72
Adjusted pre-tax income (loss)									(1,584)	(1,405)	(1,011)
Legacy Portfolio
Segment Reporting Information [Line Items]
Total Revenues									3,039	4,391	5,250
Net investment income									2,325	2,776	2,913
Interest Expense									30	122	282
Amortization of deferred policy acquisition costs									105	76	108
Adjusted pre-tax income (loss)									$ 213	$ 1,470	$ 1,007

SEGMENT INFORMATION (Details - Continuing operations by operating segment - Pretax operating income to pre-tax income)) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciling items to revenues and pre-tax income (loss):
Gain (Loss) on extinguishment of debt	$ (3)	$ 1	$ 5	$ 4	$ (1)	$ 1	$ (4)	$ (1)	$ (7)	$ 5	$ (74)
Income (loss) from divested businesses	(3)	(2)	(25)	(8)	(241)	13	60	100	38	68	545
Net reserve discount benefit (charge)									371	(187)	422
Restructuring and other costs	136	35	200	24	154	31	47	181
Adjusted pre-tax income (loss)	$ (695)	$ (1,527)	$ 1,252	$ 1,227	$ 875	$ (2,803)	$ 1,667	$ 1,727	257	1,466	(74)
Reconciling items from adjusted pre-tax income to pre-tax income \| Total Revenues
Reconciling items to revenues and pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed living benefits									(128)	146	120
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains									0	0	0
Other income (expense) - net									(53)	(49)	(44)
Gain (Loss) on extinguishment of debt									0	0	0
Net realized capital gains (losses)									(254)	(1,380)	(1,944)
Income (loss) from divested businesses									0	0	0
Non-operating litigation reserves and settlements									11	27	44
Prior Year Development And Change In Amortization Of Deferred Gain On Retroactive Reinsurance									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	0
Integration and transaction costs associated with acquired business									0
Restructuring and other costs									0	0	0
Reconciling items from adjusted pre-tax income to pre-tax income \| Net investment income
Reconciling items to revenues and pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed living benefits									(128)	146	120
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)									(124)	0	0
Income (loss) from divested businesses									0	0	0
Non-operating litigation reserves and settlements									0	0	0
Prior Year Development And Change In Amortization Of Deferred Gain On Retroactive Reinsurance									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	0
Integration and transaction costs associated with acquired business									0
Restructuring and other costs									0	0	0
Reconciling items from adjusted pre-tax income to pre-tax income \| Interest expense
Reconciling items to revenues and pre-tax income (loss):
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)									(34)	0	0
Income (loss) from divested businesses									0	0	0
Non-operating litigation reserves and settlements									0	0	0
Prior Year Development And Change In Amortization Of Deferred Gain On Retroactive Reinsurance									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	0
Integration and transaction costs associated with acquired business									0
Restructuring and other costs									0	0	0
Reconciling items from adjusted pre-tax income to pre-tax income \| Amortization of DAC
Reconciling items to revenues and pre-tax income (loss):
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									(5)	(291)	(276)
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
Prior Year Development And Change In Amortization Of Deferred Gain On Retroactive Reinsurance									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	0
Integration and transaction costs associated with acquired business									0
Restructuring and other costs									0	0	0
Reconciling items from adjusted pre-tax income to pre-tax income \| Adjusted Pre-Tax Income (loss)
Reconciling items to revenues and pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed living benefits									(154)	146	120
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains									6	303	195
Other income (expense) - net									0	0	0
Gain (Loss) on extinguishment of debt									(7)	5	(74)
Net realized capital gains (losses)									(193)	(1,380)	(1,944)
Income (loss) from divested businesses									38	68	545
Non-operating litigation reserves and settlements									(19)	129	41
Prior Year Development And Change In Amortization Of Deferred Gain On Retroactive Reinsurance									(675)	(303)	42
Net reserve discount benefit (charge)									371	(187)	427
Pension expense related to a one-time lump sum payment to former employees									0	(60)	(147)
Integration and transaction costs associated with acquired business									(124)
Restructuring and other costs									$ (395)	$ (413)	$ (694)

SEGMENT INFORMATION (Details - Identifiable assets and capital expenditures by legal entity - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	$ 491,984	$ 498,301
Capital Expenditures	368	483
Other
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	140,428	105,425
Capital Expenditures	103	156
Reportable Segments \| General Insurance Companies
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	110,007	114,841
Capital Expenditures	171	239
Reportable Segments \| Life and Retirement Companies
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	247,219	289,457
Capital Expenditures	94	88
AIG Consolidation and Eliminations
Segment Reporting Information [Line Items]
Year-End Identifiable Assets	(5,670)	(11,422)
Capital Expenditures	$ 0	$ 0

SEGMENT INFORMATION (Details - Consolidated total revenues and real estate and other fixed assets by major geographic area) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues	$ 12,560	$ 11,486	$ 11,631	$ 11,712	$ 12,635	$ 11,751	$ 12,502	$ 12,632	$ 47,389	$ 49,520	$ 52,367
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation	2,172				2,522				2,172	2,522	2,660
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues									31,003	34,149	36,871
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation	1,479				1,630				1,479	1,630	1,326
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Revenues									16,386	15,371	15,496
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation	$ 693				$ 892				$ 693	$ 892	$ 1,334

SEGMENT INFORMATION (Details - Narrative) - segment	3 Months Ended	12 Months Ended		24 Months Ended
SEGMENT INFORMATION (Details - Narrative) - segment	Jun. 30, 2015	Dec. 31, 2018	Dec. 31, 2014	Dec. 31, 2016
United Guaranty Corporation
Segment Reporting Information [Line Items]
Share reinsurance agreement percent quota	50.00%
Reinsurance Ceded, Percent			50.00%	50.00%
Commissions and reimbursements Ceded, Percent	30.00%
Losses and loss adjustment expenses incurred on covered policies, Percent	50.00%
General Insurance
Segment Reporting Information [Line Items]
Number of operating segments		2
Life and Retirement
Segment Reporting Information [Line Items]
Number of operating segments		4

BUSINESS COMBINATION (Details - Identifiable Assets Acquired and Liabilities Assumed) - USD ($) $ in Millions	Jul. 18, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
BUSINESS COMBINATION
Value of business acquired		$ 438	$ 381	$ 393
Goodwill recognized from acquisition		4,082	$ 1,594	$ 1,528	$ 1,613
Validus Holding Ltd [Member]
BUSINESS COMBINATION
Investments	$ 6,613
Cash	330
Premiums and other receivables	2,130
Reinsurance assets	1,692
Value of business acquired	298	$ 101
Deferred income taxes	63
Other assets, including restricted cash of $93	1,008
Liability for unpaid claims and claims adjustment expense	(4,138)
Unearned premiums	(2,083)
Long-term debt	(1,106)
Other liabilities	(913)
Preference shares	(416)
Total identifiable net assets acquired	3,478
Cash consideration paid	5,475
Goodwill recognized from acquisition	1,997
Restricted cash	$ 93

BUSINESS COMBINATION (Details - Pro Forma Income Statement Information) - Validus Holding Ltd [Member] - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
BUSINESS COMBINATION
Total revenues	$ 48,588	$ 52,009
Net income (loss)	16	(6,104)
Net income (loss) attributable to AIG	$ (51)	$ (6,132)
Basic net income (loss) per common share attributable to AIG	$ (0.06)	$ (6.59)
Diluted net income (loss) per common share attributable to AIG	$ (0.06)	$ (6.59)

BUSINESS COMBINATION (Details - Identified Intangible Assets Acquired) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Validus Holdings, Ltd
Business Acquisition [Line Items]
Definite and indefinite lived intangibles	$ 1,010
Syndicate Capacity \| Validus Holdings, Ltd
Business Acquisition [Line Items]
Indefinite lived intangibles	193
Other \| Validus Holdings, Ltd
Business Acquisition [Line Items]
Indefinite lived intangibles	75
Value of Distribution Network Acquired
Business Acquisition [Line Items]
Definite lived intangibles	582
Value of Distribution Network Acquired \| Validus Holdings, Ltd
Business Acquisition [Line Items]
Definite lived intangibles	$ 444
Definite lived intangibles, weighted average useful life	15 years
Value of Business Acquired \| Validus Holdings, Ltd
Business Acquisition [Line Items]
Definite lived intangibles	$ 298
Definite lived intangibles, weighted average useful life	2 years

BUSINESS COMBINATION (Details - Narrative) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended								12 Months Ended
	Oct. 30, 2018	Jul. 18, 2018	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Revenues			$ 12,560	$ 11,486	$ 11,631	$ 11,712	$ 12,635	$ 11,751	$ 12,502	$ 12,632	$ 47,389	$ 49,520	$ 52,367
Net income (loss)			(560)	(1,259)	931	949	(6,672)	(1,713)	1,118	1,211	61	(6,056)	(349)
Net income (loss) attributable to AIG			(622)	$ (1,259)	$ 937	$ 938	(6,660)	$ (1,739)	$ 1,130	$ 1,185	(6)	(6,084)	(849)
Goodwill			4,082				1,594				4,082	1,594	$ 1,528	$ 1,613
Other invested assets			19,341				$ 20,822				19,341	$ 20,822
Validus Holding Ltd [Member]
Business Acquisition [Line Items]
Interest acquired		100.00%
Cash consideration paid		$ 5,475
Revenues											1,400
Net income (loss)											(206)
Net income (loss) attributable to AIG											(206)
Integration and transaction costs associated with acquired business											101
Redemption price of preference shares acquired	$ 26,000
Payment to repurchase preference shares	$ 416
Goodwill		$ 1,997
Validus Holding Ltd [Member] \| Series A [Member]
Business Acquisition [Line Items]
Number of preference shares acquired		6,000
Dividend rate of preference shares acquired		5.875%
Validus Holding Ltd [Member] \| Series B [Member]
Business Acquisition [Line Items]
Number of preference shares acquired		10,000
Dividend rate of preference shares acquired		5.80%
Validus Holding Ltd [Member] \| North America Operating Segment [Member]
Business Acquisition [Line Items]
Goodwill		$ 1,800
Validus Holding Ltd [Member] \| International Operating Segment [Member]
Business Acquisition [Line Items]
Goodwill		$ 157
AlphaCat [Member]
Business Acquisition [Line Items]
Other invested assets			$ 116								$ 116

FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	$ 229,391	$ 238,992
Other bond securities	11,415	12,772
Equity securities available for sale	0	1,708
Other equity securities	1,253	589
Other invested assets	5,894	6,248
Derivative Assets, Fair Value, Gross	4,468	3,545
Derivative assets, Counterparty netting	(1,713)	(1,464)
Derivative assets, Cash collateral	(1,840)	(1,159)
Derivative assets	915	922
Short-term investments, portion measured at fair value	3,015	2,615
Separate account assets, at fair value	81,847	92,798
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	4,116	4,150
Other policyholder funds	3,568	3,648
Derivative Liabilities, Fair Value, Gross	3,138	3,748
Derivative liabilities, Counterparty netting	(1,713)	(1,464)
Derivative liabilities, Cash collateral	(187)	(1,249)
Derivative liabilities	1,238	1,035
Long-term debt, portion measured at fair value	2,213	2,888
Other liabilities	1,265	1,124
U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Assets transferred from Level 1 to Level 2	806	113
Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Assets transferred from Level 1 to Level 2		392
Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Assets transferred from Level 1 to Level 2	0	126
Recurring Basis
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	229,391	238,992
Other bond securities	11,415	12,772
Equity securities available for sale		1,708
Other equity securities	1,253	589
Mortgage and other loans receivable	0	5
Other invested assets	928	251
Derivative assets, Counterparty netting	(1,713)	(1,464)
Derivative assets, Cash collateral	(1,840)	(1,159)
Derivative assets, Counterparty netting and cash collateral	(3,553)	(2,623)
Derivative assets	915	922
Short-term investments, portion measured at fair value	3,015	2,615
Separate account assets, at fair value	81,847	92,798
Other assets	58
Fair value assets measured on recurring basis, total	328,822	350,652
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	4,116	4,150
Derivative liabilities, Counterparty netting	(1,713)	(1,464)
Derivative liabilities, Cash collateral	(187)	(1,249)
Derivative liabilities, Counterparty netting and cash collateral	(1,900)	(2,713)
Derivative liabilities	1,238	1,035
Long-term debt, portion measured at fair value	2,213	2,888
Other liabilities	27	89
Fair value liabilities measured on recurring basis, total	7,594	8,162
Recurring Basis \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	2,890	2,171
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	2,023	2,200
Recurring Basis \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1,164	831
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	858	1,245
Recurring Basis \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	398	522
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	15	21
Recurring Basis \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1	1
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	236	277
Recurring Basis \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	15	20
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	6	5
Recurring Basis \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	3,260	2,656
Other bond securities	2,665	2,802
Recurring Basis \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	16,001	18,644
Recurring Basis \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	14,525	15,659
Other bond securities	45	57
Recurring Basis \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	130,700	134,176
Other bond securities	1,671	1,909
Recurring Basis \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	34,377	37,234
Other bond securities	1,714	1,885
Recurring Basis \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	12,701	13,841
Other bond securities	388	559
Recurring Basis \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	17,827	16,782
Other bond securities	4,932	5,560
Recurring Basis \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		1,061
Recurring Basis \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		533
Recurring Basis \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		114
Recurring Basis \| Level 1
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	122	221
Other bond securities	11	238
Equity securities available for sale		1,189
Other equity securities	1,213	589
Mortgage and other loans receivable	0	0
Other invested assets	0	0
Derivative Assets, Fair Value, Gross	135	189
Short-term investments, portion measured at fair value	2,416	2,078
Separate account assets, at fair value	77,202	87,141
Other assets	0
Fair value assets measured on recurring basis, total	81,099	91,645
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	0	0
Derivative Liabilities, Fair Value, Gross	16	4
Long-term debt, portion measured at fair value	0	0
Other liabilities	16	46
Fair value liabilities measured on recurring basis, total	32	50
Recurring Basis \| Level 1 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	2	1
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	4	2
Recurring Basis \| Level 1 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 1 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	133	188
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	12	2
Recurring Basis \| Level 1 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 1 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 1 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	53	201
Other bond securities	11	238
Recurring Basis \| Level 1 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0	0
Recurring Basis \| Level 1 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	69	20
Other bond securities	0	0
Recurring Basis \| Level 1 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0	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	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	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	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
Recurring Basis \| Level 1 \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		18
Recurring Basis \| Level 1 \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		110
Recurring Basis \| Level 2
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	202,176	209,775
Other bond securities	5,559	6,022
Equity securities available for sale		519
Other equity securities	13	0
Mortgage and other loans receivable	0	0
Other invested assets	341	1
Derivative Assets, Fair Value, Gross	4,237	3,249
Short-term investments, portion measured at fair value	599	537
Separate account assets, at fair value	4,645	5,657
Other assets	0
Fair value assets measured on recurring basis, total	217,570	225,760
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	0	14
Derivative Liabilities, Fair Value, Gross	2,873	3,450
Long-term debt, portion measured at fair value	2,213	2,888
Other liabilities	11	43
Fair value liabilities measured on recurring basis, total	5,097	6,395
Recurring Basis \| Level 2 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	2,888	2,170
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	2,004	2,176
Recurring Basis \| Level 2 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1,159	827
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	858	1,241
Recurring Basis \| Level 2 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	190	252
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	3	19
Recurring Basis \| Level 2 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	8	14
Recurring Basis \| Level 2 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 2 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	3,207	2,455
Other bond securities	2,654	2,564
Recurring Basis \| Level 2 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	14,001	16,240
Recurring Basis \| Level 2 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	14,445	15,631
Other bond securities	45	57
Recurring Basis \| Level 2 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	129,836	133,003
Other bond securities	1,671	1,891
Recurring Basis \| Level 2 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	20,178	21,098
Other bond securities	424	421
Recurring Basis \| Level 2 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	11,784	13,217
Other bond securities	311	485
Recurring Basis \| Level 2 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	8,725	8,131
Other bond securities	454	604
Recurring Basis \| Level 2 \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		0
Recurring Basis \| Level 2 \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		515
Recurring Basis \| Level 2 \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale		4
Recurring Basis \| Level 3
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	27,093	28,996
Other bond securities	5,845	6,512
Equity securities available for sale		0
Other equity securities	27	0
Mortgage and other loans receivable	0	5
Other invested assets	587	250
Derivative Assets, Fair Value, Gross	96	107
Short-term investments, portion measured at fair value	0	0
Separate account assets, at fair value	0	0
Other assets	58
Fair value assets measured on recurring basis, total	33,706	35,870
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	4,116	4,136
Derivative Liabilities, Fair Value, Gross	249	294
Long-term debt, portion measured at fair value	0	0
Other liabilities	0	0
Fair value liabilities measured on recurring basis, total	4,365	4,430
Recurring Basis \| Level 3 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	15	22
Recurring Basis \| Level 3 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	5	4
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	4
Recurring Basis \| Level 3 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	75	82
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 3 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1	1
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	228	263
Recurring Basis \| Level 3 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	15	20
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	6	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	2,000	2,404
Recurring Basis \| Level 3 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	11	8
Other bond securities	0	0
Recurring Basis \| Level 3 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	864	1,173
Other bond securities	0	18
Recurring Basis \| Level 3 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	14,199	16,136
Other bond securities	1,290	1,464
Recurring Basis \| Level 3 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	917	624
Other bond securities	77	74
Recurring Basis \| Level 3 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	9,102	8,651
Other bond securities	$ 4,478	4,956
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

FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	$ 35,763	$ 37,666
Net Realized and Unrealized Gains (Losses) Included in Income	1,345	2,133
Other Comprehensive Income (Loss)	(518)	1,298
Purchases, Sales, Issuances and Settlements, Net	(3,705)	(4,647)
Gross Transfers In, assets	2,814	956
Gross Transfers Out, assets	(2,269)	(1,643)
Acquisitions	180
Balance End of Period	33,610	35,763
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	264	487
Liabilities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	4,323	3,413
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(462)	639
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	406	274
Gross Transfers In, liabilities	0	(3)
Gross Transfers Out, liabilities	2	0
Balance at the End of the Period	4,269	4,323
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	557	(318)
Policyholder contract deposits
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	4,136	3,033
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(334)	807
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	314	296
Gross Transfers In, liabilities	0	0
Gross Transfers Out, liabilities	0	0
Balance at the End of the Period	4,116	4,136
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	495	(499)
Derivative liabilities, net
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	187	309
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(128)	(184)
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	92	65
Gross Transfers In, liabilities	0	(3)
Gross Transfers Out, liabilities	2	0
Balance at the End of the Period	153	187
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	62	181
Interest rate contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	22	38
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(1)	(5)
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	(6)	(11)
Gross Transfers In, liabilities	0	0
Gross Transfers Out, liabilities	0	0
Balance at the End of the Period	15	22
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	1	5
Foreign exchange contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	0	11
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(10)	(2)
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	5	(9)
Gross Transfers In, liabilities	0	0
Gross Transfers Out, liabilities	0	0
Balance at the End of the Period	(5)	0
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	3	3
Equity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(82)	(58)
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(22)	(41)
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	27	17
Gross Transfers In, liabilities	0	0
Gross Transfers Out, liabilities	2	0
Balance at the End of the Period	(75)	(82)
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	(35)	35
Credit contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	262	329
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(31)	(62)
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	(4)	(5)
Gross Transfers In, liabilities	0	0
Gross Transfers Out, liabilities	0	0
Balance at the End of the Period	227	262
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	31	61
Other contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(15)	(11)
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(64)	(74)
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	70	73
Gross Transfers In, liabilities	0	(3)
Gross Transfers Out, liabilities	0	0
Balance at the End of the Period	(9)	(15)
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	62	77
Long-term debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	0	71
Net realized and unrealized gains and losses related to Level 3 items, liabilities	0	16
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	0	(87)
Gross Transfers In, liabilities		0
Gross Transfers Out, liabilities	0	0
Balance at the End of the Period	0	0
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	0	0
Bonds available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	28,996	29,971
Net Realized and Unrealized Gains (Losses) Included in Income	818	1,080
Other Comprehensive Income (Loss)	(520)	1,304
Purchases, Sales, Issuances and Settlements, Net	(2,862)	(2,820)
Gross Transfers In, assets	2,749	933
Gross Transfers Out, assets	(2,260)	(1,472)
Acquisitions	172
Balance End of Period	27,093	28,996
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	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	2,404	2,040
Net Realized and Unrealized Gains (Losses) Included in Income	0	5
Other Comprehensive Income (Loss)	(152)	167
Purchases, Sales, Issuances and Settlements, Net	(66)	216
Gross Transfers In, assets	54	8
Gross Transfers Out, assets	(240)	(32)
Acquisitions	0
Balance End of Period	2,000	2,404
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	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	8	17
Net Realized and Unrealized Gains (Losses) Included in Income	(9)	(9)
Other Comprehensive Income (Loss)	5	9
Purchases, Sales, Issuances and Settlements, Net	(1)	(9)
Gross Transfers In, assets	13	0
Gross Transfers Out, assets	(5)	0
Acquisitions	0
Balance End of Period	11	8
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0
Bonds available for sale \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	1,173	1,133
Net Realized and Unrealized Gains (Losses) Included in Income	(74)	(3)
Other Comprehensive Income (Loss)	(2)	20
Purchases, Sales, Issuances and Settlements, Net	(207)	(259)
Gross Transfers In, assets	780	886
Gross Transfers Out, assets	(806)	(604)
Acquisitions	0
Balance End of Period	864	1,173
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	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	16,136	16,906
Net Realized and Unrealized Gains (Losses) Included in Income	838	1,071
Other Comprehensive Income (Loss)	(300)	942
Purchases, Sales, Issuances and Settlements, Net	(2,424)	(2,763)
Gross Transfers In, assets	8	19
Gross Transfers Out, assets	(66)	(39)
Acquisitions	7
Balance End of Period	14,199	16,136
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	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	624	2,040
Net Realized and Unrealized Gains (Losses) Included in Income	23	35
Other Comprehensive Income (Loss)	(29)	11
Purchases, Sales, Issuances and Settlements, Net	207	(748)
Gross Transfers In, assets	111	20
Gross Transfers Out, assets	(20)	(734)
Acquisitions	1
Balance End of Period	917	624
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	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	8,651	7,835
Net Realized and Unrealized Gains (Losses) Included in Income	40	(19)
Other Comprehensive Income (Loss)	(42)	155
Purchases, Sales, Issuances and Settlements, Net	(371)	743
Gross Transfers In, assets	1,783	0
Gross Transfers Out, assets	(1,123)	(63)
Acquisitions	164
Balance End of Period	9,102	8,651
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0
Other bond securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	6,512	7,480
Net Realized and Unrealized Gains (Losses) Included in Income	482	1,039
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	(1,208)	(1,861)
Gross Transfers In, assets	60	23
Gross Transfers Out, assets	(9)	(169)
Acquisitions	8
Balance End of Period	5,845	6,512
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	193	481
Other bond securities \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	18	17
Net Realized and Unrealized Gains (Losses) Included in Income	0	3
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	(18)	10
Gross Transfers In, assets	0	0
Gross Transfers Out, assets	0	(12)
Acquisitions	0
Balance End of Period	0	18
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	1
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	1,464	1,605
Net Realized and Unrealized Gains (Losses) Included in Income	56	191
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	(280)	(313)
Gross Transfers In, assets	50	14
Gross Transfers Out, assets	0	(33)
Acquisitions	0
Balance End of Period	1,290	1,464
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	(10)	113
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	74	155
Net Realized and Unrealized Gains (Losses) Included in Income	(2)	4
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	(5)	24
Gross Transfers In, assets	10	9
Gross Transfers Out, assets	0	(118)
Acquisitions	0
Balance End of Period	77	74
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	(5)	5
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	4,956	5,703
Net Realized and Unrealized Gains (Losses) Included in Income	428	841
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	(905)	(1,582)
Gross Transfers In, assets	0	0
Gross Transfers Out, assets	(9)	(6)
Acquisitions	8
Balance End of Period	4,478	4,956
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	208	362
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
Other Comprehensive Income (Loss)		0
Purchases, Sales, Issuances and Settlements, Net		1
Gross Transfers In, assets		0
Gross Transfers Out, assets		(1)
Balance End of Period		0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		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
Other Comprehensive Income (Loss)		0
Purchases, Sales, Issuances and Settlements, Net		1
Gross Transfers In, assets		0
Gross Transfers Out, assets		(1)
Balance End of Period		0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		0
Other equity securities
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	(2)	0
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	24	0
Gross Transfers In, assets	5	0
Gross Transfers Out, assets	0	0
Acquisitions	0
Balance End of Period	27	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	5	11
Net Realized and Unrealized Gains (Losses) Included in Income	0	0
Other Comprehensive Income (Loss)	0	0
Purchases, Sales, Issuances and Settlements, Net	(5)	(6)
Gross Transfers In, assets	0	0
Gross Transfers Out, assets	0	0
Acquisitions	0
Balance End of Period	0	5
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0
Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	250	204
Net Realized and Unrealized Gains (Losses) Included in Income	47	14
Other Comprehensive Income (Loss)	2	(6)
Purchases, Sales, Issuances and Settlements, Net	288	39
Gross Transfers In, assets	0	0
Gross Transfers Out, assets	0	(1)
Acquisitions	0
Balance End of Period	587	250
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	71	6
Other assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	0
Net Realized and Unrealized Gains (Losses) Included in Income	0
Other Comprehensive Income (Loss)	0
Purchases, Sales, Issuances and Settlements, Net	58
Gross Transfers In, assets	0
Gross Transfers Out, assets	0
Acquisitions	0
Balance End of Period	58	$ 0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	$ 0

FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issuances and settlements) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, Sales, Issuances and Settlements, Net, assets	$ (3,705)	$ (4,647)
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	33	(64)
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.	(18)	(36)
Liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	(52)	(4)
Sales, liabilities	613	344
Settlements, liabilities	(155)	(66)
Purchases, Sales, Issuances and Settlements, Net, liabilities	406	274
Policyholder contract deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	0	0
Sales, liabilities	533	344
Settlements, liabilities	(219)	(48)
Purchases, Sales, Issuances and Settlements, Net, liabilities	314	296
Derivative liabilities, net
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	(52)	(4)
Sales, liabilities	80	0
Settlements, liabilities	64	69
Purchases, Sales, Issuances and Settlements, Net, liabilities	92	65
Long-term debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	0	0
Sales, liabilities	0	0
Settlements, liabilities	0	(87)
Purchases, Sales, Issuances and Settlements, Net, liabilities	0	(87)
Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	3,737	4,053
Sales, assets	(1,391)	(1,071)
Settlements, assets	(6,051)	(7,629)
Purchases, Sales, Issuances and Settlements, Net, assets	(3,705)	(4,647)
Bonds available for sale
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	3,247	3,704
Sales, assets	(1,319)	(725)
Settlements, assets	(4,790)	(5,799)
Purchases, Sales, Issuances and Settlements, Net, assets	(2,862)	(2,820)
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	105	286
Sales, assets	(8)	(16)
Settlements, assets	(163)	(54)
Purchases, Sales, Issuances and Settlements, Net, assets	(66)	216
Bonds available for sale \| Non-U.S. governments
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	5	9
Sales, assets	0	(1)
Settlements, assets	(6)	(17)
Purchases, Sales, Issuances and Settlements, Net, assets	(1)	(9)
Bonds available for sale \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	280	36
Sales, assets	(216)	(59)
Settlements, assets	(271)	(236)
Purchases, Sales, Issuances and Settlements, Net, assets	(207)	(259)
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	715	1,199
Sales, assets	(20)	(260)
Settlements, assets	(3,119)	(3,702)
Purchases, Sales, Issuances and Settlements, Net, assets	(2,424)	(2,763)
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	277	75
Sales, assets	(2)	(146)
Settlements, assets	(68)	(677)
Purchases, Sales, Issuances and Settlements, Net, assets	207	(748)
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	1,865	2,099
Sales, assets	(1,073)	(243)
Settlements, assets	(1,163)	(1,113)
Purchases, Sales, Issuances and Settlements, Net, assets	(371)	743
Other bond securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	91	229
Sales, assets	(38)	(294)
Settlements, assets	(1,261)	(1,796)
Purchases, Sales, Issuances and Settlements, Net, assets	(1,208)	(1,861)
Other bond securities \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	11
Sales, assets	0	0
Settlements, assets	(18)	(1)
Purchases, Sales, Issuances and Settlements, Net, assets	(18)	10
Other bond securities \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	1	167
Sales, assets	(34)	(218)
Settlements, assets	(247)	(262)
Purchases, Sales, Issuances and Settlements, Net, assets	(280)	(313)
Other bond securities \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	42
Sales, assets	0	(11)
Settlements, assets	(5)	(7)
Purchases, Sales, Issuances and Settlements, Net, assets	(5)	24
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	90	9
Sales, assets	(4)	(65)
Settlements, assets	(991)	(1,526)
Purchases, Sales, Issuances and Settlements, Net, assets	(905)	(1,582)
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets		13
Sales, assets		0
Settlements, assets		(12)
Purchases, Sales, Issuances and Settlements, Net, assets		1
Other equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	49	0
Sales, assets	0	0
Settlements, assets	(25)	0
Purchases, Sales, Issuances and Settlements, Net, assets	24	0
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	0
Sales, assets	(5)	(6)
Settlements, assets	0	0
Purchases, Sales, Issuances and Settlements, Net, assets	(5)	(6)
Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	350	107
Sales, assets	(29)	(46)
Settlements, assets	(33)	(22)
Purchases, Sales, Issuances and Settlements, Net, assets	288	$ 39
Other assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0
Sales, assets	0
Settlements, assets	58
Purchases, Sales, Issuances and Settlements, Net, assets	$ 58

FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
GMWB \| Minimum \| Measurement Input Equity Volatility [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.0605	0.0645
GMWB \| Minimum \| Measurement Input Base Lapse Rates [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.0016	0.0035
GMWB \| Minimum \| Measurement Input Dynamic Lapse Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.2	0.3
GMWB \| Minimum \| Measurement Input Mortality Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.4	0.4
GMWB \| Minimum \| Measurement Input Utilization Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.9	0.9
GMWB \| Minimum \| Measurement Input Equity Interest Rate Correlation [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.2	0.2
GMWB \| Maximum \| Measurement Input Equity Volatility [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.4765	0.5125
GMWB \| Maximum \| Measurement Input Base Lapse Rates [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.126	0.14
GMWB \| Maximum \| Measurement Input Dynamic Lapse Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	1.8	1.7
GMWB \| Maximum \| Measurement Input Mortality Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	1.53	1.53
GMWB \| Maximum \| Measurement Input Utilization Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	1	1
GMWB \| Maximum \| Measurement Input Equity Interest Rate Correlation [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.4	0.4
GMWB \| Discounted cash flow \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 1,943	$ 1,994
Index Annuities \| Minimum \| Measurement Input Mortality Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.42	0.42
Index Annuities \| Minimum \| Measurement Input Lapse Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.005	0.005
Index Annuities \| Minimum \| Measurement Input Options Budget [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.01	0.01
Index Annuities \| Maximum \| Measurement Input Mortality Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	1.62	1.62
Index Annuities \| Maximum \| Measurement Input Lapse Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.4	0.4
Index Annuities \| Maximum \| Measurement Input Options Budget [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.03	0.04
Index Annuities \| Discounted cash flow \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 1,778	$ 1,603
Indexed Life \| Minimum \| Measurement Input Base Lapse Rates [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0	0.02
Indexed Life \| Minimum \| Measurement Input Mortality Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0	0
Indexed Life \| Maximum \| Measurement Input Base Lapse Rates [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.13	0.19
Indexed Life \| Maximum \| Measurement Input Mortality Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	1	0.4
Indexed Life \| Discounted cash flow \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 374	$ 515
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, 2018	Dec. 31, 2017
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	$ 4,966	$ 5,997
Unfunded Commitments	1,956	1,239
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	2,250	2,128
Unfunded Commitments	$ 1,947	1,227
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	14.00%
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	3 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	43.00%
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	6 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	4 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	43.00%
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	10 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	7 years
Leveraged buyout
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	$ 847	1,243
Unfunded Commitments	1,327	706
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	190	210
Unfunded Commitments	83	187
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	126	134
Unfunded Commitments	127	73
Growth 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	362	215
Unfunded Commitments	28	73
Mezzanine
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	211	171
Unfunded Commitments	75	135
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	514	155
Unfunded Commitments	307	53
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	2,716	3,869
Unfunded Commitments	$ 9	12
Hedge fund investments redeemable monthly (as a percent)	35.00%
Hedge fund investments redeemable quarterly (as a percent)	32.00%
Hedge fund investments redeemable semi-annually (as a percent)	9.00%
Hedge fund investments redeemable annually (as a percent)	24.00%
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	51.00%
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	$ 787	1,128
Unfunded Commitments	0	0
Long-short
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	863	1,233
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	887	1,011
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	21	266
Unfunded Commitments	8	8
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	158	231
Unfunded Commitments	$ 1	$ 4

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, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option credit risk gains (losses) on liabilities	$ 4	$ 4	$ 22
Fair Value Option
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option gain (loss)	555	2,105	466
Fair Value Option \| Bond and equity securities
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option gain (loss)	343	1,646	447
Fair Value Option \| Alternative investments
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option gain (loss)	213	509	28
Fair Value Option \| Other, Including Short-term investments
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option gain (loss)	0	1	0
Fair Value Option \| Long-term debt
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option gain (loss)	(1)	(49)	(9)
Fair Value Option \| Other liabilities
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option gain (loss)	$ 0	$ (2)	$ 0

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	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage and other loans receivable, Fair Value	$ 0	$ 5
Mortgage and other loans receivable, Outstanding Principal Amount	43,532	37,345
Long-term debt, Fair Value	2,213	2,888
Long-term debt, Outstanding Principal Amount	34,540	31,640
Fair Value Option
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage and other loans receivable, Fair Value	0	5
Mortgage and other loans receivable, Outstanding Principal Amount	0	5
Mortgage and other loans receivable, Difference	0	0
Long-term debt, Fair Value	2,213	2,888
Long-term debt, Outstanding Principal Amount	1,653	2,280
Long-term debt, Difference	$ 560	$ 608

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, 2018	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	$ 326	$ 55
Impairment Charges	161	594	$ 492
Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	315	55
Investments in life settlements
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0	0
Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	11	0
Level 1 \| Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 1 \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 1 \| Investments in life settlements
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 1 \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 2 \| Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 2 \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 2 \| Investments in life settlements
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 2 \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 3 \| Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	326	55
Level 3 \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	315	55
Level 3 \| Investments in life settlements
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0	0
Level 3 \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	11	0
Fair value on a non-recurring basis \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Impairment Charges	97	77	76
Fair value on a non-recurring basis \| Investments in life settlements
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Impairment Charges	0	360	397
Fair value on a non-recurring basis \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Impairment Charges	$ 64	157	$ 19
Fair value on a non-recurring basis \| Other assets \| Divested Businesses
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value				$ 179
Impairment Charges		$ 35

FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets:
Mortgage and other loans receivable	$ 43,135	$ 37,023
Short-term investments	9,674	10,386
Cash	2,873	2,362	$ 1,868
Other assets	13,568	10,194
Liabilities:
Other liabilities	24,636	26,050
Long-term Debt	34,540	31,640
Total Fair Value
Assets:
Mortgage and other loans receivable	43,627	37,761
Other invested assets	737	596
Short-term investments	6,659	7,771
Cash	2,873	2,362
Other assets	343
Liabilities:
Policyholder contract deposits associated with investment-type contracts	121,374	122,196
Other liabilities	1,154	4,494
Long-term Debt	31,597	28,243
Level 1
Assets:
Mortgage and other loans receivable	0	0
Other invested assets	0	0
Short-term investments	0	0
Cash	2,873	2,362
Other assets	308
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	105	117
Other invested assets	731	590
Short-term investments	6,659	7,771
Cash	0	0
Other assets	35
Liabilities:
Policyholder contract deposits associated with investment-type contracts	339	387
Other liabilities	1,154	4,494
Long-term Debt	22,822	23,930
Level 3
Assets:
Mortgage and other loans receivable	43,522	37,644
Other invested assets	6	6
Short-term investments	0	0
Cash	0	0
Other assets	0
Liabilities:
Policyholder contract deposits associated with investment-type contracts	121,035	121,809
Other liabilities	0	0
Long-term Debt	8,775	4,313
Carrying Value
Assets:
Mortgage and other loans receivable	43,135	37,018
Other invested assets	737	593
Short-term investments	6,659	7,771
Cash	2,873	2,362
Other assets	343
Liabilities:
Policyholder contract deposits associated with investment-type contracts	120,602	114,326
Other liabilities	1,154	4,494
Long-term Debt	$ 32,327	$ 28,752

INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	$ 225,780	$ 226,766
Available for sale securities, Gross Unrealized Gains	8,419	15,315
Available for sale securities, Gross Unrealized Losses	(4,808)	(1,381)
Available-for-sale Securities	229,391	240,700
AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,211	1,656
Bonds available for sale
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	225,780	225,461
Available for sale securities, Gross Unrealized Gains	8,419	14,891
Available for sale securities, Gross Unrealized Losses	(4,808)	(1,360)
Available-for-sale Securities	229,391	238,992
Other details of available for sale securities
Available for sale securities not rated or rated below investment grade	28,800	31,500
Bonds available for sale \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,211	1,656
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	3,170	2,532
Available for sale securities, Gross Unrealized Gains	132	160
Available for sale securities, Gross Unrealized Losses	(42)	(36)
Available-for-sale Securities	3,260	2,656
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	15,421	17,377
Available for sale securities, Gross Unrealized Gains	701	1,297
Available for sale securities, Gross Unrealized Losses	(121)	(30)
Available-for-sale Securities	16,001	18,644
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	4	0
Bonds available for sale \| Non-U.S. governments
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	14,376	15,059
Available for sale securities, Gross Unrealized Gains	451	717
Available for sale securities, Gross Unrealized Losses	(302)	(117)
Available-for-sale Securities	14,525	15,659
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	130,436	126,310
Available for sale securities, Gross Unrealized Gains	3,911	8,666
Available for sale securities, Gross Unrealized Losses	(3,647)	(800)
Available-for-sale Securities	130,700	134,176
Bonds available for sale \| Corporate debt \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	4	17
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	62,377	64,183
Available for sale securities, Gross Unrealized Gains	3,224	4,051
Available for sale securities, Gross Unrealized Losses	(696)	(377)
Available-for-sale Securities	64,905	67,857
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	1,203	1,639
Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	31,940	34,181
Available for sale securities, Gross Unrealized Gains	2,754	3,273
Available for sale securities, Gross Unrealized Losses	(317)	(220)
Available-for-sale Securities	34,377	37,234
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	1,155	1,568
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	12,673	13,538
Available for sale securities, Gross Unrealized Gains	242	408
Available for sale securities, Gross Unrealized Losses	(214)	(105)
Available-for-sale Securities	12,701	13,841
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	31	42
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	17,764	16,464
Available for sale securities, Gross Unrealized Gains	228	370
Available for sale securities, Gross Unrealized Losses	(165)	(52)
Available-for-sale Securities	17,827	16,782
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	17	29
Equity securities available for sale
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	0	1,305
Available for sale securities, Gross Unrealized Gains	0	424
Available for sale securities, Gross Unrealized Losses	0	(21)
Available-for-sale Securities	0	1,708
Total, Other-Than-Temporary Impairments in AOCI	0	0
Equity securities available for sale \| Common Stock
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total		703
Available for sale securities, Gross Unrealized Gains		379
Available for sale securities, Gross Unrealized Losses		(21)
Available-for-sale Securities		1,061
Total, Other-Than-Temporary Impairments in AOCI	0	0
Equity securities available for sale \| Preferred Stock
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total		504
Available for sale securities, Gross Unrealized Gains		29
Available for sale securities, Gross Unrealized Losses		0
Available-for-sale Securities		533
Total, Other-Than-Temporary Impairments in AOCI	0	0
Equity securities available for sale \| Mutual Funds
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total		98
Available for sale securities, Gross Unrealized Gains		16
Available for sale securities, Gross Unrealized Losses		0
Available-for-sale Securities		114
Total, Other-Than-Temporary Impairments in AOCI	$ 0	$ 0

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, 2018 USD ($) item	Dec. 31, 2017 USD ($)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	$ 70,800	$ 31,657
Gross Unrealized Losses, Less than 12 Months	2,679	726
Fair Value, 12 Months or More	36,110	15,127
Gross Unrealized Losses, 12 Months or More	2,129	655
Fair Value, Total	106,910	46,784
Gross Unrealized Losses, Total	4,808	1,381
Bonds available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	70,800	31,520
Gross Unrealized Losses, Less than 12 Months	2,679	705
Fair Value, 12 Months or More	36,110	15,127
Gross Unrealized Losses, 12 Months or More	2,129	655
Fair Value, Total	106,910	46,647
Gross Unrealized Losses, Total	$ 4,808	1,360
Number of securities in an unrealized loss position \| item	16,876
Number of individual securities in continuous unrealized loss position for longer than twelve months \| item	5,127
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	$ 574	770
Gross Unrealized Losses, Less than 12 Months	13	23
Fair Value, 12 Months or More	873	332
Gross Unrealized Losses, 12 Months or More	29	13
Fair Value, Total	1,447	1,102
Gross Unrealized Losses, Total	42	36
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	1,965	586
Gross Unrealized Losses, Less than 12 Months	51	6
Fair Value, 12 Months or More	1,530	646
Gross Unrealized Losses, 12 Months or More	70	24
Fair Value, Total	3,495	1,232
Gross Unrealized Losses, Total	121	30
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	3,851	3,511
Gross Unrealized Losses, Less than 12 Months	149	54
Fair Value, 12 Months or More	2,422	857
Gross Unrealized Losses, 12 Months or More	153	63
Fair Value, Total	6,273	4,368
Gross Unrealized Losses, Total	302	117
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	47,364	15,578
Gross Unrealized Losses, Less than 12 Months	2,181	453
Fair Value, 12 Months or More	20,056	7,291
Gross Unrealized Losses, 12 Months or More	1,466	347
Fair Value, Total	67,420	22,869
Gross Unrealized Losses, Total	3,647	800
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	5,231	6,212
Gross Unrealized Losses, Less than 12 Months	94	99
Fair Value, 12 Months or More	5,641	3,790
Gross Unrealized Losses, 12 Months or More	223	121
Fair Value, Total	10,872	10,002
Gross Unrealized Losses, Total	317	220
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	2,646	3,408
Gross Unrealized Losses, Less than 12 Months	47	46
Fair Value, 12 Months or More	4,264	1,389
Gross Unrealized Losses, 12 Months or More	167	59
Fair Value, Total	6,910	4,797
Gross Unrealized Losses, Total	214	105
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	9,169	1,455
Gross Unrealized Losses, Less than 12 Months	144	24
Fair Value, 12 Months or More	1,324	822
Gross Unrealized Losses, 12 Months or More	21	28
Fair Value, Total	10,493	2,277
Gross Unrealized Losses, Total	165	52
Equity securities available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	0	137
Gross Unrealized Losses, Less than 12 Months	0	21
Fair Value, 12 Months or More	0	0
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	0	137
Gross Unrealized Losses, Total	$ 0	21
Number of securities in an unrealized loss position \| item	0
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
Gross Unrealized Losses, Less than 12 Months		21
Fair Value, 12 Months or More		0
Gross Unrealized Losses, 12 Months or More		0
Fair Value, Total		136
Gross Unrealized Losses, Total		21
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
Gross Unrealized Losses, Less than 12 Months		0
Fair Value, 12 Months or More		0
Gross Unrealized Losses, 12 Months or More		0
Fair Value, Total		1
Gross Unrealized Losses, Total		$ 0

INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	$ 225,780	$ 226,766
Fixed Maturity Securities Available for Sale, Fair Value, Total	229,391	238,992
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	2,322	1,526
Due after one year through five years, Amortized Cost	17,382	7,764
Due after five years through ten years, Amortized Cost	27,724	11,559
Due after ten years, Amortized Cost	35,319	9,705
Mortgage-backed, asset-backed and collateralized, Amortized Cost	28,971	17,453
Available for sale securities, Amortized Cost, Total	111,718	48,007
Due in one year or less, Fair Value	2,294	1,515
Due after one year through five years, Fair Value	16,844	7,571
Due after five years through ten years, Fair Value	26,517	11,143
Due after ten years, Fair Value	32,980	9,342
Mortgage-backed, asset-backed and collateralized, Fair Value	28,275	17,076
Fixed Maturity Securities Available for Sale, Fair Value, Total	106,910	46,647
Bonds available for sale
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost	9,539	7,932
Due after one year through five years, Amortized Cost	47,400	47,179
Due after five years through ten years, Amortized Cost	42,363	42,617
Due after ten years, Amortized Cost	64,101	63,550
Mortgage-backed, asset-backed and collateralized, Amortized Cost	62,377	64,183
Available for sale securities, Amortized Cost, Total	225,780	225,461
Due in one year or less, Fair Value	9,674	8,071
Due after one year through five years, Fair Value	47,905	49,093
Due after five years through ten years, Fair Value	42,045	43,944
Due after ten years, Fair Value	64,862	70,027
Mortgage-backed, asset-backed and collateralized, Fair Value	64,905	67,857
Fixed Maturity Securities Available for Sale, Fair Value, Total	$ 229,391	$ 238,992

INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	$ 347	$ 832	$ 1,873
Gross Realized Losses	476	319	815
Aggregate fair value of available for sale securities sold	25,100	31,300	30,200
Net realized capital gains (losses)	(129)	500	1,100
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	331	725	801
Gross Realized Losses	476	300	800
Equity securities available for sale
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	16	107	1,072
Gross Realized Losses	$ 0	$ 19	$ 15

INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 12,668	$ 13,361
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	$ 178	$ 251
Fixed maturity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 11,415	$ 12,772
Other Securities, Percent of Total	90.00%	96.00%
Fixed maturity securities \| U.S. government and government sponsored entities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 2,665	$ 2,802
Other Securities, Percent of Total	21.00%	21.00%
Fixed maturity securities \| Non-U.S. governments
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 45	$ 57
Other Securities, Percent of Total	0.00%	1.00%
Fixed maturity securities \| Corporate debt
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 1,671	$ 1,909
Other Securities, Percent of Total	13.00%	14.00%
Fixed maturity securities \| Mortgage-backed, asset-backed and collateralized
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 7,034	$ 8,004
Other Securities, Percent of Total	56.00%	60.00%
Fixed maturity securities \| Residential mortgage-backed securities (RMBS)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 1,714	$ 1,885
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	$ 388	$ 559
Other Securities, Percent of Total	3.00%	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	$ 4,932	$ 5,560
Other Securities, Percent of Total	39.00%	42.00%
Equity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 1,253	$ 589
Other Securities, Percent of Total	10.00%	4.00%

INVESTMENTS (Details - Carrying values of other invested assets) - USD ($) $ in Millions	12 Months Ended	96 Months Ended
	Dec. 31, 2019	Dec. 31, 2027	Dec. 31, 2018	Dec. 31, 2017
Investment [Line Items]
Other invested assets			$ 19,341	$ 20,822
Other invested assets, gross unrealized losses			0	45
Hedge Funds
Investment [Line Items]
Hedge Fund Fair Value Redemption, Additional Percentage	74.00%	26.00%
Alternative investments
Investment [Line Items]
Other invested assets			8,966	11,308
Alternative investments \| Hedge Funds
Investment [Line Items]
Other invested assets			4,200	5,800
Alternative investments \| Direct private equity
Investment [Line Items]
Other invested assets			4,300	5,000
Alternative investments \| Affordable Housing Partnerships
Investment [Line Items]
Other invested assets			438	543
Investment real estate
Investment [Line Items]
Other invested assets			8,935	8,258
Net of accumulated depreciation on investment in real estate			598	515
All other investments
Investment [Line Items]
Other invested assets			$ 1,440	$ 1,256

INVESTMENTS (Details - Summarized financial information of equity method investees) - All other equity method investments - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating results:
Total revenues	$ 15,310	$ 13,066	$ 9,512
Total expenses	(3,200)	(6,835)	(7,361)
Net income	12,110	6,231	$ 2,151
Balance sheet:
Total assets	96,915	132,708
Total liabilities	(21,063)	(35,585)
Equity method investments, Carrying Value	$ 6,520	$ 9,050

INVESTMENTS (Details - Life settlements) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
INVESTMENTS
Income recognized on life settlement contracts	$ 0	$ 266	$ 453
Investment in Life Settlements contracts	$ 0

INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investment [Line Items]
Total investment income	$ 12,969	$ 14,699	$ 14,518
Investment expenses	493	520	453
Net investment income	12,476	14,179	14,065
Fixed maturity securities, including short-term investments
Investment [Line Items]
Total investment income	10,323	10,435	11,314
Other fixed maturity securities
Investment [Line Items]
Total investment income	7	660	331
Equity securities
Investment [Line Items]
Total investment income	(162)	34	(5)
Interest on mortgage and other loans
Investment [Line Items]
Total investment income	1,874	1,661	1,526
Alternative investments
Investment [Line Items]
Total investment income	655	1,475	693
Real estate
Investment [Line Items]
Total investment income	257	144	150
Other investments
Investment [Line Items]
Total investment income	$ 15	$ 290	$ 509

INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other-than-temporary impairments:
Severity	$ 0	$ (2)	$ (15)
Change in intent	(87)	(9)	(46)
Foreign currency declines	(15)	(11)	(18)
Issuer-specific credit events	(147)	(234)	(433)
Adverse projected cash flows	(2)	(4)	(47)
Provision for loan losses	(92)	(50)	10
Foreign exchange transactions	(182)	489	(1,226)
Variable annuity embedded derivatives, net of related hedges	304	(1,374)	(1,243)
All other derivatives and hedge accounting	338	(368)	299
Impairments on investments in life settlements	0	(360)	(397)
Gain (loss) on sale of private equity funds	(321)	0	0
Other	203	30	114
Total net realized capital gains (losses)	(130)	(1,380)	(1,944)
OneMain Holdings
Other-than-temporary impairments:
Total net realized capital gains (losses)	96
Castle Holdings
Other-than-temporary impairments:
Total net realized capital gains (losses)	49
Prudential Financial
Other-than-temporary impairments:
Total net realized capital gains (losses)			107
Investments in life settlements
Other-than-temporary impairments:
Total net realized capital gains (losses)			(253)
Fixed maturity securities
Gain (Loss) on Investments [Line Items]
Sales of securities	(145)	425	1
Equity securities
Gain (Loss) on Investments [Line Items]
Sales of securities	$ 16	$ 88	$ 1,057

INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Increase (decrase) in unrealized appreciation (depreciation) of investments
Change in unrealized appreciation (depreciation) of investments	$ (10,008)	$ 4,062	$ 605
Unrealized gains and losses recognized during the reporting period on equity securities
Net gains and losses recognized during the period on equity securities	158
Less: Net gains and losses recognized durint the year on equity securities sold during the year	79
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	79
Equity securities
Unrealized gains and losses recognized during the reporting period on equity securities
Net gains and losses recognized during the period on equity securities	(184)
Less: Net gains and losses recognized durint the year on equity securities sold during the year	56
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	(240)
Other invested assets
Unrealized gains and losses recognized during the reporting period on equity securities
Net gains and losses recognized during the period on equity securities	342
Less: Net gains and losses recognized durint the year on equity securities sold during the year	23
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	319
Fixed maturity securities
Increase (decrase) in unrealized appreciation (depreciation) of investments
Change in unrealized appreciation (depreciation) of investments	(9,920)	4,235
Equity securities
Increase (decrase) in unrealized appreciation (depreciation) of investments
Change in unrealized appreciation (depreciation) of investments	0	22
Other investments
Increase (decrase) in unrealized appreciation (depreciation) of investments
Change in unrealized appreciation (depreciation) of investments	$ (88)	$ (195)

INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fixed maturity securities
Other Than Temporary Impairment Credit Losses Recognized in Earnings
Balance, beginning of year	$ 526	$ 1,098	$ 1,747
Increases due to:
Credit impairments on new securities subject to impairment losses	59	122	204
Additional credit impairments on previously impaired securities	90	74	212
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell	(145)	(99)	(296)
Credit impaired securities for which there is a current intent or anticipated requirement to sell	0	0	0
Accretion on securities previously impaired due to credit	(530)	(669)	(767)
Divested Businesses	0	0	(2)
Balance, end of year	$ 0	$ 526	$ 1,098
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, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 225,780	$ 225,461
Fair value	229,391	240,700
Purchased Credit Impaired (PCI) Securities
Schedule of Available-for-sale Securities [Line Items]
Contractually required payments (principal and interest)	36,519
Cash flows expected to be collected	29,980
Recorded investment in acquired securities	20,229
Outstanding principal balance	12,495	14,718
Amortized cost	8,646	10,492
Fair value	10,280	12,293
Available for sale securities \| Purchased Credit Impaired (PCI) Securities
Changes in activity for the accretable yield on PCI securities:
Balance, beginning of period	7,501	7,498
Newly purchased PCI securities	33	190
Disposals	(21)	(18)
Accretion	(722)	(797)
Effect of changes in interest rate indices	207	(34)
Net reclassification from (to) non-accretable difference, including effects of prepayments	212	662
Balance, end of period	$ 7,210	$ 7,501

INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Investment [Line Items]
Fair value of securities collateral pledged	$ 426.0	$ 2,227.0
Fair value of amount sold or repledged	106.0	46.0
Short-term investments held in escrow		255.0
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements	7,900.0	4,900.0
Bonds available for sale and Short-term investments held in escrow	273.0
FHLBs
Investment [Line Items]
Fair value of fixed maturities securities available for sale	4,200.0	2,700.0
Amount owned by subsidiaries	202.0	93.0
Residential loans pledged as collateral	2,100.0	471.0
Secured financing
Investment [Line Items]
Amounts Borrowed Under Repurchase and Securities Lending Agreements	1,200.0	4,500.0
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	288.0	1,581.0
Securities Lending Agreements, Fair Value of Collateral	884.0	2,915.0
Amounts Loaned under Reverse Repurchase Agreements	426.0	2,200.0
Secured financing \| Fixed Maturities [Member]
Investment [Line Items]
Fair value of fixed maturities securities available for sale	1,050.0	2,911.0
Fair value of other bond securities	122.0	1,585.0
Secured financing \| Overnight and continuous
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	104.0	44.0
Secured financing \| Up to 30 Days
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	131.0	407.0
Securities Lending Agreements, Fair Value of Collateral	401.0	588.0
Secured financing \| 31 to 90 Days
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	53.0	1,130.0
Securities Lending Agreements, Fair Value of Collateral	483.0	2,327.0
Secured financing \| 91 to 364 Days
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0.0	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
Secured financing \| 365 Days or Greater
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0.0	0.0
Secured financing \| Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	180.0
Secured financing \| Bonds available for sale \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	60.0	26.0
Securities Lending Agreements, Fair Value of Collateral	29.0	18.0
Secured financing \| Bonds available for sale \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	106.0	48.0
Securities Lending Agreements, Fair Value of Collateral	675.0	2,819.0
Secured financing \| Bonds available for sale \| Overnight and continuous \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0.0
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	25.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
Secured financing \| Bonds available for sale \| Overnight and continuous \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	51.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
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	50.0
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	35.0	7.0
Securities Lending Agreements, Fair Value of Collateral	21.0	0.0
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	55.0	13.0
Securities Lending Agreements, Fair Value of Collateral	330.0	588.0
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	130.0
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	0.0	19.0
Securities Lending Agreements, Fair Value of Collateral	8.0	18.0
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	0.0	35.0
Securities Lending Agreements, Fair Value of Collateral	345.0	2,231.0
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0.0
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	0.0	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
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	0.0	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
Secured financing \| Bonds available for sale \| 365 Days or Greater \| Obligations of states, municipalities and political subdivisions
Investment [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0.0
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	0.0	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
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	0.0	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
Secured financing \| Other bond securities \| Non-U.S. governments
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	3.0	11.0
Securities Lending Agreements, Fair Value of Collateral		22.0
Secured financing \| Other bond securities \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	108.0	1,452.0
Securities Lending Agreements, Fair Value of Collateral		56.0
Secured financing \| Other bond securities \| U.S. government and government sponsored entities
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	11.0	44.0
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	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	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	17.0	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
Secured financing \| Other bond securities \| Overnight and continuous \| U.S. government and government sponsored entities
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	11.0	44.0
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	3.0	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	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	38.0	387.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
Secured financing \| Other bond securities \| Up to 30 Days \| U.S. government and government sponsored entities
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0.0	0.0
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	0.0	11.0
Securities Lending Agreements, Fair Value of Collateral	0.0	22.0
Secured financing \| Other bond securities \| 31 to 90 Days \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	53.0	1,065.0
Securities Lending Agreements, Fair Value of Collateral	0.0	56.0
Secured financing \| Other bond securities \| 31 to 90 Days \| U.S. government and government sponsored entities
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0.0	0.0
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	0.0	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
Secured financing \| Other bond securities \| 91 to 364 Days \| Corporate debt
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0.0	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
Secured financing \| Other bond securities \| 91 to 364 Days \| U.S. government and government sponsored entities
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0.0	0.0
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	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	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	0.0
Securities Lending Agreements, Fair Value of Collateral	0.0	0.0
Secured financing \| Other bond securities \| 365 Days or Greater \| U.S. government and government sponsored entities
Investment [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0.0	0.0
GIAs
Investment [Line Items]
Fair value of other bond securities	$ 1,600.0	$ 2,000.0

LENDING ACTIVITIES (Details - Composition of Mortgages and other loans receivable) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 43,532	$ 37,345
Allowance for losses	(397)	(322)	$ (297)	$ (308)
Mortgage and other loans receivable, net	43,135	37,023
Commercial mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	32,882	28,596
Allowance for losses	$ (318)	$ (247)	$ (194)	$ (171)
Commercial mortgages \| California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of mortgage loans in geographic area	11.00%	12.00%
Commercial mortgages \| New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of mortgage loans in geographic area	22.00%	23.00%
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 6,532	$ 5,398
Life insurance policy loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	2,147	2,295
Commercial loans, other loans and notes receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 1,971	$ 1,056

LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) loan	Dec. 31, 2017 USD ($) loan	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Commercial Mortgage Recorded Investment [Line Items]
Mortgage and other loans receivable, net	$ 43,135	$ 37,023
Allowance for credit losses	397	322	$ 297	$ 308
Total mortgage and other loans receivable	$ 43,532	$ 37,345
Debt Coverage Ratio	1.9	2.1
Average Loan to Value Ratio	58.00%	57.00%
Apartments
Commercial Mortgage Recorded Investment [Line Items]
In good standing	$ 11,190	$ 8,163
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	11,190	8,163
Allowance for credit losses, Specific	0	0
Allowance for credit losses, General	122	72
Allowance for credit losses	122	72
Offices
Commercial Mortgage Recorded Investment [Line Items]
In good standing	9,774	8,585
Restructured	96	115
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	9,870	8,700
Allowance for credit losses, Specific	2	3
Allowance for credit losses, General	104	94
Allowance for credit losses	106	97
Retail
Commercial Mortgage Recorded Investment [Line Items]
In good standing	5,645	5,338
Restructured	0	23
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	5,645	5,361
Allowance for credit losses, Specific	0	1
Allowance for credit losses, General	51	37
Allowance for credit losses	51	38
Industrial
Commercial Mortgage Recorded Investment [Line Items]
In good standing	3,074	2,023
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	3,074	2,023
Allowance for credit losses, Specific	0	0
Allowance for credit losses, General	13	6
Allowance for credit losses	13	6
Hotel
Commercial Mortgage Recorded Investment [Line Items]
In good standing	2,507	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	2,523	2,389
Allowance for credit losses, Specific	1	1
Allowance for credit losses, General	19	15
Allowance for credit losses	20	16
Others
Commercial Mortgage Recorded Investment [Line Items]
In good standing	580	1,960
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	580	1,960
Allowance for credit losses, Specific	0	0
Allowance for credit losses, General	6	18
Allowance for credit losses	$ 6	$ 18
Commercial mortgages
Commercial Mortgage Recorded Investment [Line Items]
Number of loans in good standing \| loan	762	778
Number of loans restructured \| loan	2	5
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	764	783
In good standing	$ 32,770	$ 28,442
Restructured	112	154
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	32,882	28,596
Allowance for credit losses, Specific	3	5
Allowance for credit losses, General	315	242
Allowance for credit losses	$ 318	$ 247
Percentage of loans that are current as to payments of principal and interest	100.00%	99.00%
Percentage restructured	0.00%	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	$ 32,882	$ 28,596
Commercial mortgages \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	29,336	26,023
Commercial mortgages \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	2,966	1,964
Commercial mortgages \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	580	609
Commercial mortgages \| Less than 65%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	21,997	19,876
Commercial mortgages \| Less than 65% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	19,204	18,000
Commercial mortgages \| Less than 65% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	2,543	1,525
Commercial mortgages \| Less than 65% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	250	351
Commercial mortgages \| 65% to 75%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	9,563	6,415
Commercial mortgages \| 65% to 75% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	9,060	6,038
Commercial mortgages \| 65% to 75% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	300	193
Commercial mortgages \| 65% to 75% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	203	184
Commercial mortgages \| 76% to 80%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	511	609
Commercial mortgages \| 76% to 80% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	476	569
Commercial mortgages \| 76% to 80% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	20	40
Commercial mortgages \| 76% to 80% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	15	0
Commercial mortgages \| Greater than 80%
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	811	1,696
Commercial mortgages \| Greater than 80% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	596	1,416
Commercial mortgages \| Greater than 80% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	103	206
Commercial mortgages \| Greater than 80% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	$ 112	$ 74

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, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	$ 322	$ 297	$ 308
Loans charged off	(19)	(25)	(15)
Recoveries of loans previously charged off	1	1	11
Net charge-offs	(18)	(24)	(4)
Provision for loan losses	93	49	(7)
Other	0	0	0
Allowance, end of period	397	322	297
Loans modified in a troubled debt restructuring	0	237
Commercial mortgages
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	247	194	171
Loans charged off	(17)	(22)	(13)
Recoveries of loans previously charged off	0	0	11
Net charge-offs	(17)	(22)	(2)
Provision for loan losses	88	75	25
Other	0	0	0
Allowance, end of period	318	247	194
Allowance related to individually assessed credit losses	3	5	11
Commercial mortgage loans	54	82	280
Other Loans
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	75	103	137
Loans charged off	(2)	(3)	(2)
Recoveries of loans previously charged off	1	1	0
Net charge-offs	(1)	(2)	(2)
Provision for loan losses	5	(26)	(32)
Other	0	0	0
Allowance, end of period	$ 79	$ 75	$ 103

REINSURANCE (Details - Supplemental information for loss and benefit reserves, gross and net of ceded reinsurance) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effects of Reinsurance [Line Items]
Allowance for doubtful accounts on reinsurance assets	$ 140	$ 187
Supplemental information for loss and benefit reserves
Liability for unpaid claims and claims adjustment expense, As Reported	(83,639)	(78,393)	$ (77,077)	$ (74,942)
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance	(51,949)	(51,685)	$ (61,545)	$ (60,603)
Future policy benefits for life and accident and health insurance contracts, as reported	(44,935)	(45,432)
Future policy benefits for life and accident and health insurance contracts, Net of Reinsurance	(43,936)	(44,457)
Reserve for unearned premiums, As Reported	(19,248)	(19,030)
Reserve for unearned premiums, Net of Reinsurance	(16,300)	(15,890)
Reinsurance assets	$ 35,637	$ 30,823

REINSURANCE (Details - Short-Duration Reinsurance) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Premiums earned:
Net		$ 30,614	$ 31,374	$ 34,393
Short-duration insurance
Premiums Written
Direct		30,335	30,205	33,970
Assumed		4,026	3,084	2,824
Ceded		(7,755)	(7,533)	(7,561)
Net Amount		26,606	25,756	29,233
Premiums earned:
Direct		31,415	30,904	34,869
Assumed		4,593	3,373	2,962
Ceded		(8,163)	(7,902)	(7,284)
Net		27,845	26,375	30,547
Reinsurance recoveries, which reduced policyholder benefits and claims incurred		9,800	1,500	2,100
Ceded loss reserves under retroactive agreements		13,800	13,400
Deferred Gain (Loss) Retroactive Reinsurance		1,800	1,600
Effect on income from amortization of the deferred gain		394	$ 316	$ 30
Short-duration insurance \| NICO
Premiums earned:
Transfer of reserve, percent	80.00%
Ceded losses paid, percent	80.00%
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, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jul. 01, 2016 USD ($)	Feb. 07, 2014 USD ($) item
Life insurance ratios
Assumed insurance as a percent of gross premiums	2.40%
New letter of credit
Letters of credit
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions					$ 450.0
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	$ 778.0	$ 1,000.0	$ 1,000.0
Life insurance ratios
Long-duration insurance in force ceded	$ 228,846.0	$ 202,402.0	$ 174,363.0
Assumed insurance as a percentage of gross long-duration insurance in force	0.03%	0.03%	0.03%
Assumed insurance as a percent of gross premiums	10.00%	5.00%	3.00%
Life insurance companies
Premiums earned:
Gross	$ 3,893.0	$ 5,338.0	$ 4,732.0
Ceded	(850.0)	(809.0)	(789.0)
Net	$ 3,043.0	$ 4,529.0	3,943.0
Letters of credit
Ceded Statutory Reserves			$ 14,000.0	$ 5,000.0

REINSURANCE (Details - Reinsurance Security) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Reinsurance Security
Reinsurance assets	$ 35,637	$ 30,823
Reinsurer Concentration Risk [Member]
Reinsurance Security
Gross reinsurance assets due from reinsurers, percent	5.00%
Secured \| Reinsurer Concentration Risk [Member]
Reinsurance Security
Reinsurance assets	$ 18,900	18,000
Unsecured \| Reinsurer Concentration Risk [Member]
Reinsurance Security
Reinsurance assets	$ 3,700	$ 7,600

DEFERRED POLICY ACQUISITION COSTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jul. 18, 2018
Rollforward of deferred policy acquisition costs
Balance, beginning of year	$ 10,994	$ 11,042	$ 11,115
Acquisitions	298	0	0
Dispositions	0	(35)	(110)
Acquisition costs deferred	5,832	4,820	5,216
Amortization expense	(5,386)	(4,288)	(4,521)
Change in net unrealized gains (losses) on securities	1,063	(505)	(259)
Increase (decrease) due to foreign exchange and other	(107)	(40)	72
Reclassified to Assets held for sale	0	0	(471)
Balance, end of year	12,694	10,994	11,042
Value of business acquired
Amortization of VOBA	243	20	40
Unamortized balance of VOBA	$ 438	381	393
Percentage of unamortized balance of VOBA expected to be amortized in the next five years
Year one (as a percent)	8.60%
Year two (as a percent)	7.70%
Year three (as a percent)	6.70%
Year four (as a percent)	6.30%
Year five (as a percent)	6.00%
Years after five year (as a percent)	64.80%
Validus Holdings, Ltd
Value of business acquired
Unamortized balance of VOBA	$ 101			$ 298
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	$ (1,000)	$ (1,300)	$ (842)

VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Assets:
Bonds available for sale	$ 229,391.0	$ 238,992.0
Other bond securities	11,415.0	12,772.0
Mortgage and other loans receivable	43,135.0	37,023.0
Other invested assets	19,341.0	20,822.0
Liabilities:
Long-term Debt	34,540.0	31,640.0
Real Estate and Investment Entities
Liabilities:
Off-balance sheet exposure	1,400.0	86.0
Securitization Vehicles
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	16,900.0
Consolidated VIE
Assets:
Bonds available for sale	7,662.0	9,632.0
Other bond securities	3,925.0	4,521.0
Mortgage and other loans receivable	3,693.0	2,290.0
Other invested assets	8,378.0	4,683.0
Other assets	2,625.0	2,218.0
Total assets	26,283.0	23,344.0
Liabilities:
Long-term Debt	7,569.0	4,134.0
Other liabilities	575.0	595.0
Total liabilities	8,144.0	4,729.0
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	0.0
Other invested assets	5,212.0	1,365.0
Other assets	580.0	302.0
Total assets	5,792.0	1,667.0
Liabilities:
Long-term Debt	2,577.0	680.0
Other liabilities	227.0	144.0
Total liabilities	2,804.0	824.0
Consolidated VIE \| Securitization Vehicles
Assets:
Bonds available for sale	7,662.0	9,632.0
Other bond securities	3,923.0	4,518.0
Mortgage and other loans receivable	3,693.0	2,290.0
Other invested assets	0.0	206.0
Other assets	1,581.0	1,481.0
Total assets	16,859.0	18,127.0
Liabilities:
Long-term Debt	3,154.0	1,624.0
Other liabilities	165.0	244.0
Total liabilities	3,319.0	1,868.0
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total assets of consolidated securitization vehicles owed to Parent or its subsidiaries	16,000.0	17,600.0
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	3,142.0	3,087.0
Other assets	394.0	350.0
Total assets	3,536.0	3,437.0
Liabilities:
Long-term Debt	1,834.0	1,825.0
Other liabilities	159.0	181.0
Total liabilities	1,993.0	2,006.0
Consolidated VIE \| Other
Assets:
Bonds available for sale	0.0	0.0
Other bond securities	2.0	3.0
Mortgage and other loans receivable	0.0	0.0
Other invested assets	24.0	25.0
Other assets	70.0	85.0
Total assets	96.0	113.0
Liabilities:
Long-term Debt	4.0	5.0
Other liabilities	24.0	26.0
Total liabilities	28.0	31.0
Unconsolidated VIE
Assets:
Other invested assets	7,400.0	9,800.0
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	316,527.0	387,201.0
Maximum Exposure to Loss, On-Balance Sheet	7,711.0	10,232.0
Maximum Exposure to Loss, Off-Balance Sheet	3,723.0	3,248.0
Total maximum exposure to loss	11,434.0	13,480.0
Unconsolidated VIE \| Real Estate and Investment Entities
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	309,598.0	380,030.0
Maximum Exposure to Loss, On-Balance Sheet	6,820.0	9,253.0
Maximum Exposure to Loss, Off-Balance Sheet	2,501.0	2,043.0
Total maximum exposure to loss	9,321.0	11,296.0
Unconsolidated VIE \| Affordable Housing Partnerships
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	4,116.0	4,468.0
Maximum Exposure to Loss, On-Balance Sheet	607.0	725.0
Maximum Exposure to Loss, Off-Balance Sheet	0.0	0.0
Total maximum exposure to loss	607.0	725.0
Unconsolidated VIE \| Other
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	2,813.0	2,703.0
Maximum Exposure to Loss, On-Balance Sheet	284.0	254.0
Maximum Exposure to Loss, Off-Balance Sheet	1,222.0	1,205.0
Total maximum exposure to loss	$ 1,506.0	$ 1,459.0

DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	$ 117,207	$ 106,687
Gross Derivative Assets, Fair Value	4,468	3,545
Gross Derivative Liabilities, Notional Amount	40,028	45,888
Gross Derivative Liabilities, Fair Value	3,138	3,748
Derivative assets, Counterparty netting	(1,713)	(1,464)
Derivative assets, Cash collateral	(1,840)	(1,159)
Total derivative assets on consolidated balance sheet	915	922
Derivative liabilities, Counterparty netting	(1,713)	(1,464)
Derivative liabilities, Cash collateral	(187)	(1,249)
Total derivative liabilities on consolidated balance sheet	1,238	1,035
Bifurcated embedded derivatives
Derivative [Line Items]
Gross Derivative Liabilities, Fair Value	4,100	4,100
Derivatives designated as hedging instruments \| Interest rate contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	10	0
Gross Derivative Assets, Fair Value	0	0
Gross Derivative Liabilities, Notional Amount	866	838
Gross Derivative Liabilities, Fair Value	19	15
Derivatives designated as hedging instruments \| Foreign exchange contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	6,357	2,823
Gross Derivative Assets, Fair Value	363	173
Gross Derivative Liabilities, Notional Amount	2,536	4,783
Gross Derivative Liabilities, Fair Value	147	350
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	0	159
Gross Derivative Liabilities, Fair Value	0	19
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	42,821	37,751
Gross Derivative Assets, Fair Value	2,890	2,171
Gross Derivative Liabilities, Notional Amount	27,329	26,461
Gross Derivative Liabilities, Fair Value	2,004	2,185
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	11,134	6,305
Gross Derivative Assets, Fair Value	801	658
Gross Derivative Liabilities, Notional Amount	5,434	11,093
Gross Derivative Liabilities, Fair Value	711	895
Derivatives not designated as hedging instruments \| Equity contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	17,807	19,975
Gross Derivative Assets, Fair Value	398	522
Gross Derivative Liabilities, Notional Amount	2,399	1,130
Gross Derivative Liabilities, Fair Value	15	2
Derivatives not designated as hedging instruments \| Credit contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	8	4
Gross Derivative Assets, Fair Value	1	1
Gross Derivative Liabilities, Notional Amount	1,406	1,365
Gross Derivative Liabilities, Fair Value	236	277
Derivatives not designated as hedging instruments \| Other contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	39,070	39,829
Gross Derivative Assets, Fair Value	15	20
Gross Derivative Liabilities, Notional Amount	58	59
Gross Derivative Liabilities, Fair Value	6	5
Derivatives not designated as hedging instruments \| Bifurcated embedded derivatives
Derivative [Line Items]
Gross Derivative Liabilities, Notional Amount	592	685
Gross Derivative Liabilities, Fair Value	$ 224	$ 254

DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships	$ 34	$ (106)	$ 123
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	(2)	(4)	(7)
Gain (loss) recognized in earnings on hedged items	2	4	1
Gain (loss) recognized in earnings for ineffective portion	0	0	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	0	(7)
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	0	10
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	10
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	471	(420)	294
Gain (loss) recognized in earnings on hedged items	(365)	393	(335)
Gain (loss) recognized in earnings for ineffective portion	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	106	(26)	(41)
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other	0	0	0
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	0	4	24
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	4	24
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	0	(47)	10
Gain (loss) recognized in earnings on hedged items	0	42	(11)
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	(5)	(1)
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	704	(1,501)	(725)
Derivatives not designated as hedging instruments \| Net realized capital gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	561	(1,709)	(895)
Derivatives not designated as hedging instruments \| Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(3)	(11)	26
Derivatives not designated as hedging instruments \| Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	81	139	63
Derivatives not designated as hedging instruments \| Policy fees
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	67	77	80
Derivatives not designated as hedging instruments \| Policyholder benefits and claims incurred
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(2)	3	1
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(509)	56	(229)
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	543	(277)	293
Derivatives not designated as hedging instruments \| Equity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(56)	(964)	(902)
Derivatives not designated as hedging instruments \| Commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	0	0	0
Derivatives not designated as hedging instruments \| Credit contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	32	58	81
Derivatives not designated as hedging instruments \| Other contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	65	75	80
Derivatives not designated as hedging instruments \| Embedded derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	$ 629	$ (449)	$ (48)

DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Credit Derivatives [Line Items]
Collateral posted	$ 1,700	$ 2,900
Obligation to make payments on embedded credit derivatives	0
Fair value of hybrid securities	3,900	4,400
Par value of hybrid securities	8,500	9,100
Credit Risk Related Contingent Features [Member]
Credit Derivatives [Line Items]
Collateral posted	453	676
Aggregate fair value of net liability position	423	$ 572
Credit Risk Related Contingent Features [Member] \| Standard & Poor's, BBB Rating \| Moody's, Baa2 Rating
Credit Derivatives [Line Items]
Additional Collateral Aggregate Fair Value	$ 61

GOODWILL AND OTHER INTANGIBLE ASSETS (Details - Goodwill) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
GOODWILL AND OTHER INTANGIBLE ASSETS
Number of steps involved in process of impairment test \| item	2
Goodwill
Goodwill - gross	$ 5,071	$ 5,005	$ 5,090
Accumulated impairments	(3,477)	(3,477)	(3,477)
Net goodwill	1,594	1,528	1,613
Increase (decrease) due to:
Acquisition	2,544	4	0
Other	(56)	87	(73)
Dispositions	0	(25)	(12)
Goodwill - gross	7,559	5,071	5,005
Accumulated impairments	(3,477)	(3,477)	(3,477)
Net goodwill	4,082	1,594	1,528
Validus Holdings, Ltd
Increase (decrease) due to:
Acquisition	2,000
Glatfelter
Increase (decrease) due to:
Acquisition	492
Ellipse
Increase (decrease) due to:
Acquisition	46
North America
Goodwill
Goodwill - gross	1,868	1,878	1,884
Accumulated impairments	(1,264)	(1,264)	(1,264)
Net goodwill	604	614	620
Increase (decrease) due to:
Acquisition	2,332	0	0
Other	(12)	0	0
Dispositions	0	(10)	(6)
Goodwill - gross	4,188	1,868	1,878
Accumulated impairments	(1,264)	(1,264)	(1,264)
Net goodwill	2,924	604	614
International
Goodwill
Goodwill - gross	2,874	2,807	2,883
Accumulated impairments	(2,136)	(2,136)	(2,136)
Net goodwill	738	671	747
Increase (decrease) due to:
Acquisition	157	0	0
Other	(48)	74	(70)
Dispositions	0	(7)	(6)
Goodwill - gross	2,983	2,874	2,807
Accumulated impairments	(2,136)	(2,136)	(2,136)
Net goodwill	847	738	671
Life Insurance
Goodwill
Goodwill - gross	84	77	77
Accumulated impairments	0	0	0
Net goodwill	84	77	77
Increase (decrease) due to:
Acquisition	46	0	0
Other	(5)	13	0
Dispositions	0	(6)	0
Goodwill - gross	125	84	77
Accumulated impairments	0	0	0
Net goodwill	125	84	77
Other Operations
Goodwill
Goodwill - gross	31	27	27
Accumulated impairments	0	0	0
Net goodwill	31	27	27
Increase (decrease) due to:
Acquisition	9	4	0
Other	9	0	0
Dispositions	0	0	0
Goodwill - gross	49	31	27
Accumulated impairments	0	0	0
Net goodwill	49	31	27
Legacy Portfolio
Goodwill
Goodwill - gross	214	216	219
Accumulated impairments	(77)	(77)	(77)
Net goodwill	137	139	142
Increase (decrease) due to:
Acquisition	0	0	0
Other	0	0	(3)
Dispositions	0	(2)	0
Goodwill - gross	214	214	216
Accumulated impairments	(77)	(77)	(77)
Net goodwill	$ 137	$ 137	$ 139

GOODWILL AND OTHER INTANGIBLE ASSETS (Details - Intangible assets) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Intangible Assets [Line Items]
Other intangibles assets, beginning of year	$ 106
Acquisitions	284
Amortization	(11)
Other	(19)
Other intangibles assets, end of year	360
Value of Distribution Network Acquired
Intangible Assets [Line Items]
Value of distribution network acquried, beginning of year	0
Acquisitions	582
Amortization	(15)
Other	2
Value of distribution network acquried, end of year	569
General Insurance \| North America
Intangible Assets [Line Items]
Other intangibles assets, beginning of year	27
Acquisitions	61
Amortization	(2)
Other	0
Other intangibles assets, end of year	86
General Insurance \| North America \| Value of Distribution Network Acquired
Intangible Assets [Line Items]
Value of distribution network acquried, beginning of year	0
Acquisitions	0
Amortization	0
Other	0
Value of distribution network acquried, end of year	0
General Insurance \| International
Intangible Assets [Line Items]
Other intangibles assets, beginning of year	8
Acquisitions	207
Amortization	(3)
Other	0
Other intangibles assets, end of year	212
General Insurance \| International \| Value of Distribution Network Acquired
Intangible Assets [Line Items]
Value of distribution network acquried, beginning of year	0
Acquisitions	0
Amortization	0
Other	0
Value of distribution network acquried, end of year	0
Life Insurance
Intangible Assets [Line Items]
Other intangibles assets, beginning of year	34
Acquisitions	16
Amortization	(4)
Other	0
Other intangibles assets, end of year	46
Life Insurance \| Value of Distribution Network Acquired
Intangible Assets [Line Items]
Value of distribution network acquried, beginning of year	0
Acquisitions	0
Amortization	0
Other	0
Value of distribution network acquried, end of year	0
Other Operations
Intangible Assets [Line Items]
Other intangibles assets, beginning of year	37
Acquisitions	0
Amortization	(2)
Other	(19)
Other intangibles assets, end of year	16
Other Operations \| Value of Distribution Network Acquired
Intangible Assets [Line Items]
Value of distribution network acquried, beginning of year	0
Acquisitions	582
Amortization	(15)
Other	2
Value of distribution network acquried, end of year	569
Legacy Portfolio
Intangible Assets [Line Items]
Other intangibles assets, beginning of year	0
Acquisitions	0
Amortization	0
Other	0
Other intangibles assets, end of year	0
Legacy Portfolio \| Value of Distribution Network Acquired
Intangible Assets [Line Items]
Value of distribution network acquried, beginning of year	0
Acquisitions	0
Amortization	0
Other	0
Value of distribution network acquried, end of year	$ 0

INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	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	$ 12,300				$ 12,600				$ 12,300	$ 12,600
Collateral Held For Deductible Recoverable Amounts	9,200				9,500				9,200	9,500
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense:
Liability for unpaid loss and loss adjustment expenses, beginning of year				$ 78,393				$ 77,077	78,393	77,077	$ 74,942
Reinsurance recoverable, balance at the beginning of the year				(26,708)				(15,532)	(26,708)	(15,532)	(14,339)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year				51,685				61,545	51,685	61,545	60,603
Losses and loss adjustment expenses incurred
Current year									22,501	21,079	20,232
Prior years, other than accretion of discount	546	$ 949	$ (26)	$ (40)	212	$ 901	$ 391	$ 61
Prior years, excluding discount and amortization of deferred gain									1,429	1,565	5,788
Prior years, discount charge (benefit)									(252)	187	(422)
Prior years, amortization of deferred gain on retroactive reinsurance									(395)	(284)	0
Total losses and loss adjustment expenses incurred									23,283	22,547	25,598
Losses and loss adjustment expenses paid
Current year									(6,235)	(5,323)	(5,825)
Prior years									(19,254)	(16,241)	(16,908)
Total losses and loss adjustment expenses paid									(25,489)	(21,564)	(22,733)
Other changes
Foreign exchange effect									(677)	788	(463)
Acquisitions									3,284	23	0
Dispositions									0	(360)	(1,058)
Retroactive reinsurance adjustment (net of discount)									(137)	(11,294)	0
Reclassified to liabilities held for sale									0	0	(402)
Total other changes									2,470	(10,843)	(1,923)
Net liability for unpaid losses and loss adjustment expenses, balance at end of year	51,949				51,685				51,949	51,685	61,545
Reinsurance recoverable, balance at the end of the year	31,690				26,708				31,690	26,708	15,532
Total, balance at the end of the year	$ 83,639				$ 78,393				83,639	78,393	77,077
U.S. Asbestos \| NICO
Losses and loss adjustment expenses incurred
Prior years, discount charge (benefit)									51	25
U.S. Commercial long-tail exposures
Losses and loss adjustment expenses incurred
Prior years, other than accretion of discount									(4)	$ (30)	$ 390
Prior years, excluding discount and amortization of deferred gain									$ (171)

INSURANCE LIABILITIES (Details - Reconciliation of the Net Incurred and Paid Claims Development) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
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)	$ 51,949	$ 51,685	$ 61,545	$ 60,603
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	31,690	26,708	15,532	14,339
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	83,639	$ 78,393	$ 77,077	$ 74,942
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)	45,501
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	29,266
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	74,767
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)	5,834
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	7,038
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	12,872
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)	4,715
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	4,576
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	9,291
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)	4,288
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	4,661
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	8,949
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)	5,315
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	1,960
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	7,275
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)	6,534
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	2,748
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	9,282
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)	1,706
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	1,001
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	2,707
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)	7,022
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	1,789
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	8,811
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)	2,988
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	1,251
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	4,239
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)	2,264
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	553
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	2,817
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)	4,835
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years)	3,689
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years)	8,524
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)	(3,755)
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)	8,974
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)	$ 3,653

INSURANCE LIABILITIES (Details - Reconciliation of change in net ultimates to prior year development) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	$ 595
Re-Attribution of ADC Recovery	0
Amortization of Deferred Gain at Inception	(233)
Prior Year Development	362
Total, prior years, excluding discount and amortization of deferred gain	1,429	$ 1,565	$ 5,788
Validus Holdings, Ltd
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	30
U.S. Workers Compensation
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	(498)
Re-Attribution of ADC Recovery	589
Amortization of Deferred Gain at Inception	(73)
Prior Year Development	18
Total, prior years, excluding discount and amortization of deferred gain	(179)
U.S. Excess Casualty
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	762
Re-Attribution of ADC Recovery	(370)
Amortization of Deferred Gain at Inception	(56)
Prior Year Development	336
U.S. Other Casualty
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	58
Re-Attribution of ADC Recovery	(26)
Amortization of Deferred Gain at Inception	(51)
Prior Year Development	(19)
Total, prior years, excluding discount and amortization of deferred gain	(299)
U.S. Financial Lines
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	355
Re-Attribution of ADC Recovery	(109)
Amortization of Deferred Gain at Inception	(37)
Prior Year Development	209
Total, prior years, excluding discount and amortization of deferred gain	278
U.S. Property and Specialty Risks
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	(401)
Re-Attribution of ADC Recovery	(69)
Amortization of Deferred Gain at Inception	(13)
Prior Year Development	(483)
U.S. Personal Insurance
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	264
Re-Attribution of ADC Recovery	(14)
Amortization of Deferred Gain at Inception	(2)
Prior Year Development	248
Total, prior years, excluding discount and amortization of deferred gain	253
Europe Casualty and Financial Lines
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	63
Re-Attribution of ADC Recovery	0
Amortization of Deferred Gain at Inception	0
Prior Year Development	63
Total, prior years, excluding discount and amortization of deferred gain	56
Europe Property and Special Risks
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	(24)
Re-Attribution of ADC Recovery	0
Amortization of Deferred Gain at Inception	0
Prior Year Development	(24)
Total, prior years, excluding discount and amortization of deferred gain	(23)
Europe and Japan Personal Insurance
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	(116)
Re-Attribution of ADC Recovery	0
Amortization of Deferred Gain at Inception	0
Prior Year Development	(116)
Total, prior years, excluding discount and amortization of deferred gain	(125)
U.S. Run-Off Long Tail Insurance Lines
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	(4)
Re-Attribution of ADC Recovery	0
Amortization of Deferred Gain at Inception	0
Prior Year Development	(4)
Total, prior years, excluding discount and amortization of deferred gain	(171)
Other Product Lines
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	136
Re-Attribution of ADC Recovery	(1)
Amortization of Deferred Gain at Inception	(1)
Prior Year Development	134
Asbestos LPT
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Development Ceded	96
Adverse Development Reinsurance
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Development Ceded	738
Adverse Development Reinsurance \| U.S. Workers Compensation
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	(482)
Adverse Development Reinsurance \| U.S. Excess Casualty
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	(478)
Adverse Development Reinsurance \| U.S. Other Casualty
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	173
Adverse Development Reinsurance \| U.S. Financial Lines
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	49
Adverse Development Reinsurance \| U.S. Personal Insurance
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items]
Prior Year Claims and Claims Adjustment Expense	$ 8

INSURANCE LIABILITIES (Details - Annual Percentage Claims Payout)	Dec. 31, 2018
U.S. Workers Compensation
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	13.90%
Year 2	17.30%
Year 3	12.40%
Year 4	8.90%
Year 5	7.30%
Year 6	5.00%
Year 7	3.70%
Year 8	2.70%
Year 9	2.10%
Year 10	2.40%
U.S. Excess Casualty
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	0.50%
Year 2	6.40%
Year 3	11.30%
Year 4	13.90%
Year 5	12.10%
Year 6	11.20%
Year 7	8.70%
Year 8	10.50%
Year 9	2.60%
Year 10	6.10%
U.S. Other Casualty
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	9.60%
Year 2	15.80%
Year 3	15.70%
Year 4	15.00%
Year 5	12.10%
Year 6	8.40%
Year 7	5.90%
Year 8	5.80%
Year 9	2.20%
Year 10	0.80%
U.S. Financial Lines
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	4.30%
Year 2	17.80%
Year 3	21.40%
Year 4	16.80%
Year 5	13.60%
Year 6	8.70%
Year 7	5.40%
Year 8	3.50%
Year 9	2.10%
Year 10	1.60%
U.S. Property and Special Risks
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	29.50%
Year 2	33.60%
Year 3	13.30%
Year 4	8.30%
Year 5	5.40%
Year 6	3.70%
Year 7	1.50%
Year 8	1.10%
Year 9	0.70%
Year 10	0.20%
U.S. Personal Insurance
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	58.60%
Year 2	28.90%
Year 3	3.80%
Year 4	2.10%
Year 5	1.30%
Year 6	0.50%
Year 7	0.30%
Year 8	0.20%
Year 9	0.10%
Year 10	0.10%
Europe Casualty and Financial Lines
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	8.10%
Year 2	16.00%
Year 3	13.50%
Year 4	12.60%
Year 5	10.00%
Year 6	8.10%
Year 7	7.20%
Year 8	5.00%
Year 9	3.50%
Year 10	3.00%
Europe and Japan Personal Insurance
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	25.70%
Year 2	38.60%
Year 3	16.80%
Year 4	6.50%
Year 5	3.30%
Year 6	1.80%
Year 7	1.00%
Year 8	0.50%
Year 9	0.30%
Year 10	0.20%
Europe Property and Special Risks
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	56.90%
Year 2	26.90%
Year 3	8.00%
Year 4	3.90%
Year 5	2.00%
Year 6	1.00%
Year 7	0.60%
Year 8	0.30%
Year 9	0.20%
Year 10	0.10%
U.S. Run-Off Long Tail Insurance Lines
Shortduration Insurance Contracts Historical Claims Duration [Line Items]
Year 1	13.00%
Year 2	18.70%
Year 3	17.20%
Year 4	14.30%
Year 5	10.80%
Year 6	6.30%
Year 7	3.40%
Year 8	2.00%
Year 9	2.00%
Year 10	1.90%

INSURANCE LIABILITIES (Details - Narratives) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Insurance Liabilities Disclosure [Line Items]
Gross Loss Reserves Before Reinsurance and Discount Net of Subrogation	$ 12,300				$ 12,600				$ 12,300	$ 12,600
Collateral Held For Deductible Recoverable Amounts	9,200				9,500				9,200	9,500
Total prior year (favourable) unfavorable development	546	$ 949	$ (26)	$ (40)	212	$ 901	$ 391	$ 61
Liability for Claims and Claims Adjustment Expense	83,639				78,393				83,639	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)	51,949				51,685				51,949	51,685	61,545	$ 60,603
Discounting Of Loss Reserves [Abstract]
Loss Reserve Discount	2,035				1,844				$ 2,035	1,844
Tabular Discount Rate									3.50%
Workers Compensation Tabular Discount Amount	603								$ 603
Workers Compensation Non Tabular Discount Amount	1,400								1,400
(Increase) Decrease in Loss Reserve Discount									371	(187)	422
Effective Interest Rates
Discounting Of Loss Reserves [Abstract]
(Increase) Decrease in Loss Reserve Discount									(418)	71	106
U.S. Workers Compensation
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									51	(31)	1,900
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											0
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									1,274	254	1,100
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										0	250
U.S. Excess Casualty \| Bad-Faith claims
Insurance Liabilities Disclosure [Line Items]
Liability for Claims and Claims Adjustment Expense											0
U.S. Other Casualty
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(127)	216	1,600
U.S. Other Casualty \| Commercial Auto Liability
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(142)	42	352
U.S. Other Casualty \| General Liability
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									214	330	754
U.S. Other Casualty \| Medical Malpractice
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(158)	(23)	428
U.S. Other Casualty \| Other Product Lines
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(41)	(133)	50
U.S. Other Casualty \| Ultimate loss Expense Estimate
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development											0
U.S. Other Casualty \| General Liability Ultimate loss Expense Estimate
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development											0
U.S. Financial Lines
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									298	345	306
U.S. Property and Special Risks
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(497)	115	396
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									255	16	(32)
Europe Casualty and Financial Lines
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									58	507	320
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									(22)	157	11
Europe and Japan Personal Insurance
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(116)	(58)	(82)
U.S. Commercial long-tail exposures
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(4)	(30)	390
U.S. Commercial long-tail exposures \| Asbestos
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development										(37)
Increase (Decrease) in loss reserves, gross										0	106
Increase (Decrease) in loss reserves, net										0	(20)
U.S. Commercial long-tail exposures \| Asbestos \| NICO
Insurance Liabilities Disclosure [Line Items]
Increase (Decrease) in loss reserves, gross									96	50
Increase (Decrease) in loss reserves, net									0
U.S. Commercial long-tail exposures \| Environmental
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									150	22
Increase (Decrease) in loss reserves, gross										0	211
Increase (Decrease) in loss reserves, net											0
U.S. Commercial long-tail exposures \| Run-off excess workers compensation lines
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									0	0	0
U.S. Commercial long-tail exposures \| Other Casualty Run-Off
Insurance Liabilities Disclosure [Line Items]
Total prior year (favourable) unfavorable development									(154)	(15)	190
Legacy General Insrance Run-Off Lines
Discounting Of Loss Reserves [Abstract]
Loss Reserve Discount	$ 973				$ 918				973	918
(Increase) Decrease in Loss Reserve Discount									$ 55	$ (69)	$ 16

INSURANCE LIABILITIES (Details - Discounting of Reserves) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Discounting of Reserves [Line Items]
Tabular Discount Rate	3.50%
Workers Compensation Tabular Discount Amount	$ 603
Workers Compensation Non Tabular Discount Amount	1,400
U.S. Workers' compensation	3,755	$ 3,383
Retroactive Reinsurance	(1,720)	(1,539)
Total reserve discount	2,035	1,844
Current accident year	119	114	$ 177
Accretion and other adjustments to prior year discount	(166)	(230)	351
Effect of interest rate changes	418	(71)	(106)
Net reserve discount benefit (charge)	371	(187)	422
Amount transferred to run-off insurance lines	0	0	0
Change in discount on loss reserves ceded under retroactive reinsurance	(180)	(1,539)	0
Net change in total reserve discount	191	(1,726)	422
North America Commerical Insurance
Discounting of Reserves [Line Items]
U.S. Workers' compensation	2,782	2,465
Retroactive Reinsurance	(1,720)	(1,539)
Total reserve discount	1,062	926
Current accident year	119	114	177
Accretion and other adjustments to prior year discount	(108)	(186)	287
Effect of interest rate changes	305	(46)	(58)
Net reserve discount benefit (charge)	316	(118)	406
Amount transferred to run-off insurance lines	0	0	0
Change in discount on loss reserves ceded under retroactive reinsurance	(180)	(1,539)	0
Net change in total reserve discount	136	(1,657)	406
Legacy General Insrance Run-Off Lines
Discounting of Reserves [Line Items]
U.S. Workers' compensation	973	918
Retroactive Reinsurance	0	0
Total reserve discount	973	918
Current accident year	0	0	0
Accretion and other adjustments to prior year discount	(58)	(44)	64
Effect of interest rate changes	113	(25)	(48)
Net reserve discount benefit (charge)	55	(69)	16
Amount transferred to run-off insurance lines	0	0	0
Change in discount on loss reserves ceded under retroactive reinsurance	0	0	0
Net change in total reserve discount	$ 55	(69)	$ 16
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	$ 163	173
Net change in total reserve discount	$ (9)	$ 8

INSURANCE LIABILITIES (Details - Policyholder contract deposits) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	$ 142,262	$ 135,602
Assumptions for liability for policyholder contract deposits
Percentage of gross insurance in force	1.70%
Percentage of gross premiums and other consideration	2.40%
Maximum
Assumptions for liability for policyholder contract deposits
Withdrawal charges, high end of range (as a percent)		10.00%
Minimum
Assumptions for liability for policyholder contract deposits
Withdrawal charges, low end of range (as a percent)		0.30%
Fixed Annuities
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	$ 49,695	$ 49,979
Group Retirement
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	41,212	40,422
Life Insurance
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	12,829	12,448
Variable and Index Annuities
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	24,378	19,690
Institutional Markets
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	9,497	8,077
Legacy Portfolio
Policyholder Contract Deposits [Line Items]
Total policyholder contract deposits	$ 4,651	$ 4,986

VARIABLE LIFE AND ANNUITY CONTRACTS (Details - Annuity contracts with guarantees were invested in separate account investment options) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Account balances of variable annuity contract, Total	$ 75,177	$ 84,773
Equity Funds
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Account balances of variable annuity contract, Total	43,059	48,594
Bonds Funds
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Account balances of variable annuity contract, Total	7,231	7,793
Balanced Funds
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Account balances of variable annuity contract, Total	24,100	27,656
Money Market Funds
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Account balances of variable annuity contract, Total	$ 787	$ 730

VARIABLE LIFE AND ANNUITY CONTRACTS (Details - GMDB, GMIB, GMWB and GMAV) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assumptions and methodology used to determine the GMDB liability
Fair value of embedded derivatives, liability	$ 3,138	$ 3,748
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	352	402	$ 491
Reserve increase (decrease)	93	(14)	(32)
Benefits paid	(43)	(42)	(57)
Changes in reserves related to unrealized appreciation of investments	(5)	6	0
Balance at the end of the period	397	352	$ 402
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB)
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Account value	41,000	45,000
Net amount at risk	215	450
Embedded derivatives
Assumptions and methodology used to determine the GMDB liability
Fair value of embedded derivatives, liability	4,100	4,100
Embedded derivatives \| Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB)
Assumptions and methodology used to determine the GMDB liability
Fair value of embedded derivatives, liability	1,900	2,000
Variable contract, net deposits plus a minimum return \| Guaranteed minimum death benefits (GMDB)
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Account value	89	99
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 \| Minimum \| Guaranteed minimum death benefits (GMDB)
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Range of guaranteed minimum return rates (as a percent)	0.00%	0.00%
Variable contract, net deposits plus a minimum return \| Maximum \| Guaranteed minimum death benefits (GMDB)
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Range of guaranteed minimum return rates (as a percent)	4.50%	4.50%
Variable annuity contract, highest contract value attained \| Guaranteed minimum death benefits (GMDB)
Liabilities for Guarantees on Long-Duration Contracts [Line Items]
Account value	$ 15	$ 17
Net amount at risk	$ 1	$ 0
Average attained age of contract holders by product	68 years	68 years

DEBT (Details - Total debt outstanding) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Long-term Debt	$ 34,540	$ 31,640
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	34,540	31,640
2019	1,388
2020	1,490
2021	1,913
2022	1,558
2023	1,715
Thereafter	18,072
Long-term debt excluding borrowings of consolidated investments	26,136
Uncollateralized and collateralized notes, bonds, loans and mortgages payable	499
Collateral posted	1,700	2,900
Other Subsidiaries
Debt Instrument [Line Items]
Long-term Debt	11,116	9,441
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	11,116	9,441
Uncollateralized Notes/Bonds/Loans Payable
Debt Instrument [Line Items]
Long-term Debt	333
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	333
Collateralized Loans and Mortgages Payable
Debt Instrument [Line Items]
Long-term Debt	166
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	166
Notes and bonds payable \| Uncollateralized Notes/Bonds/Loans Payable \| AIGLH
Debt Instrument [Line Items]
Long-term Debt	$ 282	281
Debt Instrument, Maturity, Start year	2025
Debt Instrument, Maturity, End Year	2029
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 282	281
2019	0
2020	0
2021	0
2022	0
2023	0
Thereafter	282
Notes and bonds payable \| Uncollateralized Notes/Bonds/Loans Payable \| Validus Holdings, Ltd
Debt Instrument [Line Items]
Long-term Debt	$ 359	0
Debt Instrument, Maturity, End Year	2040
Interest rate (as a percent)	8.88%
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 359	0
2019	0
2020	0
2021	0
2022	0
2023	0
Thereafter	$ 359
Notes and bonds payable \| Uncollateralized Notes/Bonds/Loans Payable \| Maximum \| AIGLH
Debt Instrument [Line Items]
Interest rate (as a percent)	7.50%
Notes and bonds payable \| Uncollateralized Notes/Bonds/Loans Payable \| Minimum \| AIGLH
Debt Instrument [Line Items]
Interest rate (as a percent)	6.63%
Junior subordinated debt \| Uncollateralized Notes/Bonds/Loans Payable \| 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
2019	0
2020	0
2021	0
2022	0
2023	0
Thereafter	$ 361
Junior subordinated debt \| Uncollateralized Notes/Bonds/Loans Payable \| Maximum \| AIGLH
Debt Instrument [Line Items]
Interest rate (as a percent)	8.50%
Junior subordinated debt \| Uncollateralized Notes/Bonds/Loans Payable \| Minimum \| AIGLH
Debt Instrument [Line Items]
Interest rate (as a percent)	7.57%
Other subsidiaries notes, bonds, loans and mortgages payable
Debt Instrument [Line Items]
Long-term Debt	$ 168
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	168
2019	117
2020	1
2021	42
2022	1
2023	1
Thereafter	6
Debt issued or guaranteed
Debt Instrument [Line Items]
Long-term Debt	25,968	25,421
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	25,968	25,421
2019	1,271
2020	1,489
2021	1,871
2022	1,557
2023	1,714
Thereafter	18,066
Uncollateralized Notes/Bonds/Loans Payable
Debt Instrument [Line Items]
Long-term Debt	23,734	22,156
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	23,734	22,156
2019	999
2020	1,458
2021	1,714
2022	1,509
2023	1,599
Thereafter	16,455
Uncollateralized Notes/Bonds/Loans Payable \| Notes and bonds payable
Debt Instrument [Line Items]
Long-term Debt	$ 20,853	20,339
Debt Instrument, Maturity, Start year	2019
Debt Instrument, Maturity, End Year	2097
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 20,853	20,339
2019	999
2020	1,344
2021	1,497
2022	1,509
2023	1,599
Thereafter	$ 13,905
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 \| Subordinated debt
Debt Instrument [Line Items]
Long-term Debt	$ 0	0
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	0	0
2019	0
2020	0
Uncollateralized Notes/Bonds/Loans Payable \| Junior subordinated debt
Debt Instrument [Line Items]
Long-term Debt	$ 1,548	841
Debt Instrument, Maturity, Start year	2037
Debt Instrument, Maturity, End Year	2058
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 1,548	841
Thereafter	$ 1,548
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 \| AIG Japan Holdings Kabushiki Kaisha
Debt Instrument [Line Items]
Long-term Debt	$ 331	334
Debt Instrument, Maturity, Start year	2020
Debt Instrument, Maturity, End Year	2021
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 331	334
2019	0
2020	114
2021	217
2022	0
2023	$ 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	$ 2,234	3,265
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	2,234	3,265
2019	272
2020	31
2021	157
2022	48
2023	115
Thereafter	1,611
Collateral posted	1,500	2,000
Borrowings supported by assets \| Notes and bonds payable
Debt Instrument [Line Items]
Long-term Debt	$ 49	181
Debt Instrument, Maturity, Start year	2030
Debt Instrument, Maturity, End Year	2040
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 49	181
2019	0
2020	0
2021	0
2022	0
2023	0
Thereafter	$ 49
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	21
Debt Instrument, Maturity, Start year	2046
Debt Instrument, Maturity, End Year	2047
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 21	21
2019	0
2020	0
2021	0
2022	0
2023	0
Thereafter	$ 21
Borrowings supported by assets \| Notes and bonds payable \| Series AIGFP \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	2.75%
Borrowings supported by assets \| Notes and bonds payable \| Series AIGFP \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	2.69%
Borrowings supported by assets \| MIP notes payable
Debt Instrument [Line Items]
Long-term Debt	$ 0	356
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	0	356
2019	0
Borrowings supported by assets \| GIAs
Debt Instrument [Line Items]
Long-term Debt	$ 2,164	2,707
Debt Instrument, Maturity, Start year	2019
Debt Instrument, Maturity, End Year	2053
Interest rate (as a percent)	7.62%
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 2,164	2,707
2019	272
2020	31
2021	157
2022	48
2023	115
Thereafter	$ 1,541
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	$ 8,572	6,219
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	8,572	6,219
Debt not guaranteed \| Other subsidiaries notes, bonds, loans and mortgages payable
Debt Instrument [Line Items]
Long-term Debt	$ 168	190
Debt Instrument, Maturity, Start year	2019
Debt Instrument, Maturity, End Year	2024
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 168	190
Debt not guaranteed \| Other subsidiaries notes, bonds, loans and mortgages payable \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	4.73%
Debt not guaranteed \| Other subsidiaries notes, bonds, loans and mortgages payable \| Minimum
Debt Instrument [Line Items]
Interest rate (as a percent)	2.68%
Debt not guaranteed \| Debt of consolidated investments
Debt Instrument [Line Items]
Long-term Debt	$ 8,404	6,029
Debt Instrument, Maturity, Start year	2019
Debt Instrument, Maturity, End Year	2067
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 8,404	6,029
Debt not guaranteed \| Debt of consolidated investments \| Maximum
Debt Instrument [Line Items]
Interest rate (as a percent)	10.30%
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	$ 3,700	2,500
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	3,700	2,500
Debt not guaranteed \| Debt of consolidated investments \| Affordable Housing Partnership [Member]
Debt Instrument [Line Items]
Long-term Debt	1,800	1,800
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	1,800	1,800
Debt not guaranteed \| Debt of consolidated investments \| Other
Debt Instrument [Line Items]
Long-term Debt	2,900	1,700
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	$ 2,900	$ 1,700

DEBT (Details - AIGLH Junior subordinated debentures) - USD ($) $ in Millions	Dec. 31, 2018	Jul. 11, 2013
8.5 percent Junior subordinated debentures due July 2030
Debt Instrument [Line Items]
Junior subordinated debentures liquidation value		$ 113
Interest rate (as a percent)	8.50%
8.125 percent Junior subordinated debentures due March 2046
Debt Instrument [Line Items]
Junior subordinated debentures liquidation value		$ 211
Interest rate (as a percent)		8.125%
7.57 percent Junior subordinated debentures due December 2045
Debt Instrument [Line Items]
Junior subordinated debentures liquidation value		$ 37
Interest rate (as a percent)	7.57%

DEBT (Details - Credit facilities) - 5-Year Syndicated Facility $ in Millions	12 Months Ended
	Dec. 31, 2018 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, 2018 USD ($) complaint	Feb. 09, 2015 complaint
Other Commitments
Other Commitments \| $							$ 6,000
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, 2018	Dec. 31, 2017	Dec. 31, 2016
Future minimum lease payments under operating leases
2019	$ 249
2020	185
2021	121
2022	87
2023	63
Remaining years after 2023	182
Total	887
Rent expense	283	$ 269	$ 331
Other Commitments
Other Commitments	$ 6,000

EQUITY (Details - Shares Outstanding) - USD ($) $ / shares in Units, $ in Millions													12 Months Ended
	Dec. 26, 2018	Sep. 28, 2018	Jun. 28, 2018	Mar. 29, 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. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	May 03, 2017
The following table presents a roll forward of outstanding shares:
Shares, beginning of year													(1,007,626,835)
Shares, beginning of year													1,906,671,492
Shares, beginning of year													899,044,657	995,335,841	1,193,916,617
Issuances (in shares)													4,091,922	3,386,462	2,069,110
Shares repurchased													(36,527,150)	(99,677,646)	(200,649,886)
Shares, end of period													(1,040,062,063)	(1,007,626,835)
Shares, end of period													1,906,671,492	1,906,671,492
Shares, end of period													866,609,429	899,044,657	995,335,841
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	$ 0.32	$ 0.32	$ 0.32	$ 0.32
Date of Shareholders of Record	Dec. 12, 2018	Sep. 17, 2018	Jun. 14, 2018	Mar. 15, 2018	Dec. 08, 2017	Sep. 15, 2017	Jun. 14, 2017	Mar. 15, 2017	Dec. 08, 2016	Sep. 15, 2016	Jun. 13, 2016	Mar. 14, 2016
Date Dividends Declared	Oct. 31, 2018	Aug. 02, 2018	May 02, 2018	Feb. 08, 2018	Nov. 02, 2017	Aug. 02, 2017	May 03, 2017	Feb. 14, 2017	Nov. 02, 2016	Aug. 02, 2016	May 02, 2016	Feb. 11, 2016
Authorized amount of common Stock share repurchase																$ 2,500
Aggregate remaining authorization amount of common Stock share repurchase													$ 512
Payments for Repurchase of Common Stock													1,739	$ 6,275	$ 11,460
Amount paid to purchase warrants													$ 11	$ 3	$ 309
Warrants repurchased													1,000,000	185,000	17,000,000
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
Treasury Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year													(1,007,626,835)	(911,335,651)	(712,754,875)
Issuances (in shares)													4,091,922	3,386,462	2,069,110
Shares repurchased													(36,527,150)	(99,677,646)	(200,649,886)
Shares, end of period													(1,040,062,063)	(1,007,626,835)	(911,335,651)

EQUITY (Details - Rollforward of Accumulated other comprehensive income) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period, net of tax	$ 5,465	$ 3,230	$ 2,537
Cumulative effect of change in accounting principle		(8)
Change in unrealized appreciation (depreciation) of investments	(10,008)	4,062	605
Change in deferred acquisition costs adjustment and other	1,243	(1,259)	267
Change in future policy benefits	1,711	(1,102)	(676)
Changes in foreign currency translation adjustments	(314)	547	93
Change in net actuarial gain (loss)	(23)	110	(151)
Change in prior service cost (credit)	(4)	9	(22)
Deferred tax asset (liability)	1,099	(132)	577
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	3
Other comprehensive income (loss)	(6,293)	2,235	693
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment	(349)	539	250
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment	28	41	(126)
Noncontrolling interests	9	0	0
Balance, end of period, net of tax	(1,413)	5,465	3,230
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Cumulative effect of change in accounting principle		(576)
Other comprehensive income (loss)	(6,302)	2,235	693
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Other-Than-Temporary Credit Impairments Were Taken
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period, net of tax	793	426	696
Cumulative effect of change in accounting principle		169
Change in unrealized appreciation (depreciation) of investments	(1,320)	394	(326)
Change in deferred acquisition costs adjustment and other	(57)	23	(19)
Change in future policy benefits	0	0	0
Deferred tax asset (liability)	377	(50)	75
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	0
Other comprehensive income (loss)	(1,000)	367	(270)
Balance, end of period, net of tax	(38)	793	426
Unrealized Appreciation (Depreciation) of All Other Investments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period, net of tax	7,693	6,405	5,566
Cumulative effect of change in accounting principle		(285)
Change in unrealized appreciation (depreciation) of investments	(8,688)	3,668	931
Change in deferred acquisition costs adjustment and other	1,300	(1,282)	286
Change in future policy benefits	1,711	(1,102)	(676)
Deferred tax asset (liability)	702	4	298
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	0
Other comprehensive income (loss)	(4,975)	1,288	839
Noncontrolling interests	7	0	0
Balance, end of period, net of tax	2,426	7,693	6,405
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period, net of tax	(2,090)	(2,629)	(2,879)
Cumulative effect of change in accounting principle		(284)
Changes in foreign currency translation adjustments	(314)	547	93
Deferred tax asset (liability)	(35)	(8)	157
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	0
Other comprehensive income (loss)	(349)	539	250
Noncontrolling interests	2	0	0
Balance, end of period, net of tax	(2,725)	(2,090)	(2,629)
Retirement Plan Liabilities Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, beginning of period, net of tax	(931)	(972)	(846)
Cumulative effect of change in accounting principle		(183)
Change in net actuarial gain (loss)	(23)	110	(151)
Change in prior service cost (credit)	(4)	9	(22)
Deferred tax asset (liability)	55	(78)	47
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	0
Other comprehensive income (loss)	28	41	(126)
Balance, end of period, net of tax	(1,086)	(931)	(972)
Fair Value of Liabilities Under Fair Value Option Attributable to Changes in Own Credit Risk
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Cumulative effect of change in accounting principle		7
Deferred tax asset (liability)	0	0	0
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	3
Other comprehensive income (loss)	3	$ 0	$ 0
Balance, end of period, net of tax	$ 10

EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	$ (7,555)	$ 3,090	$ 1,296
Less: Reclassification adjustments included in net income	(163)	723	1,180
Total other comprehensive income (loss), before income tax expense (benefit)	(7,392)	2,367	116
Less: Income tax expense (benefit)	(1,099)	132	(577)
Other comprehensive income (loss)	(6,293)	2,235	693
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	(1,372)	467	(222)
Less: Reclassification adjustments included in net income	5	50	123
Total other comprehensive income (loss), before income tax expense (benefit)	(1,377)	417	(345)
Less: Income tax expense (benefit)	(377)	50	(75)
Other comprehensive income (loss)	(1,000)	367	(270)
Unrealized Appreciation (Depreciation) of All Other Investments
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	(5,811)	2,052	1,769
Less: Reclassification adjustments included in net income	(134)	768	1,228
Total other comprehensive income (loss), before income tax expense (benefit)	(5,677)	1,284	541
Less: Income tax expense (benefit)	(702)	(4)	(298)
Other comprehensive income (loss)	(4,975)	1,288	839
Foreign Currency Translation Adjustments
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	(314)	547	93
Less: Reclassification adjustments included in net income	0	0	0
Total other comprehensive income (loss), before income tax expense (benefit)	(314)	547	93
Less: Income tax expense (benefit)	35	8	(157)
Other comprehensive income (loss)	(349)	539	250
Retirement Plan Liabilities Adjustment
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	(61)	24	(344)
Less: Reclassification adjustments included in net income	(34)	(95)	(171)
Total other comprehensive income (loss), before income tax expense (benefit)	(27)	119	(173)
Less: Income tax expense (benefit)	(55)	78	(47)
Other comprehensive income (loss)	28	41	(126)
Fair Value of Liabilities Under Fair Value Option Attributable to Changes in Own Credit Risk
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	3	0	0
Less: Reclassification adjustments included in net income	0	0	0
Total other comprehensive income (loss), before income tax expense (benefit)	3	0	0
Less: Income tax expense (benefit)	0	0	0
Other comprehensive income (loss)	$ 3	$ 0	$ 0

EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investments									$ 121	$ (1,153)	$ (1,457)
Deferred acquisition costs adjustment									5,386	4,288	4,521
Future policy benefits									27,412	29,972	32,437
Total									(163)	723	1,180
Income from continuing operations before income tax expense (benefit)	$ (695)	$ (1,527)	$ 1,252	$ 1,227	$ 875	$ (2,803)	$ 1,667	$ 1,727	257	1,466	(74)
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)									(163)	723	1,180
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]
Total									5	50	123
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]
Investments									5	50	123
Income from continuing operations before income tax expense (benefit)									5	50	123
Unrealized appreciation (depreciation) of all other investments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total									(134)	768	1,228
Unrealized appreciation (depreciation) of all other investments \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investments									(134)	463	935
Deferred acquisition costs adjustment									0	305	293
Future policy benefits									0	0	0
Income from continuing operations before income tax expense (benefit)									(134)	768	1,228
Change in retirement plan liabilities adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total									(34)	(95)	(171)
Change in retirement plan liabilities adjustment \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total									(34)	(95)	(171)
Prior-Service Credit \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total									1	5	15
Actuarial Gains (Losses) \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total									$ (35)	$ (100)	$ (186)

EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Numerator for EPS:
Income (Loss) from Continuing Operations									$ 103	$ (6,060)	$ (259)
Less:
Net income from continuing operations attributable to noncontrolling interests	$ 62	$ 0	$ (6)	$ 11	$ (12)	$ 26	$ (12)	$ 26	67	28	500
Net income (loss) attributable to AIG common shareholders from continuing operations									36	(6,088)	(759)
Income (loss) from discontinued operations, net of income tax expense	$ (2)	$ (39)	$ 0	$ (1)	$ (3)	$ (1)	$ 8	$ 0	(42)	4	(90)
Net income (loss) attributable to AIG common shareholders									$ (6)	$ (6,084)	$ (849)
Denominator for EPS:
Weighted average shares outstanding - basic	887,508,718	895,237,359	903,215,488	907,951,597	908,115,499	908,667,044	925,751,084	980,777,243	898,405,537	930,561,286	1,091,085,131
Dilutive shares									11,735,705	0	0
Weighted average shares outstanding - diluted	887,508,718	895,237,359	916,572,481	925,266,577	908,115,499	908,667,044	948,248,771	1,005,315,030	910,141,242	930,561,286	1,091,085,131
Basic:
Income (loss) from continuing operations	$ (0.7)	$ (1.37)	$ 1.04	$ 1.03	$ (7.33)	$ (1.91)	$ 1.21	$ 1.21	$ 0.04	$ (6.54)	$ (0.7)
Income (loss) from discontinued operations	(0.7)	(0.04)	0	0	0	0	0.01	0	(0.05)	0	(0.08)
Net income (loss) attributable to AIG									(0.01)	(6.54)	(0.78)
Diluted:
Income (loss) from continuing operations	(0.7)	(1.37)	1.02	1.01	(7.33)	(1.91)	1.18	1.18	0.04	(6.54)	(0.7)
Loss from discontinued operations	$ (0.7)	$ (0.04)	$ 0	$ 0	$ 0	$ 0	$ 0.01	$ 0	(0.05)	0	(0.08)
Net Income (loss) attributable to AIG									$ (0.01)	$ (6.54)	$ (0.78)
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive									19,600,000	1,700,000	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, 2018	Dec. 31, 2017	Dec. 31, 2016
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		$ 207
Increase (decrease) in the previously reported amount of statutory surplus as a result of the finalization of statutory filings		(273)
Subsidiary Dividend Restrictions
Statutory capital and surplus of consolidated insurance subsidiaries companies restricted from transfer to parent	$ 41,600
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)	$ (1,486)	(1,296)	$ (1,066)
Statutory capital and surplus	34,619	32,659
Aggregate minimum required statutory capital and surplus	13,372	11,435
General Insurance Companies \| Domestic
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	(1,138)	(978)	260
Statutory capital and surplus	18,172	20,938
Aggregate minimum required statutory capital and surplus	4,307	5,134
General Insurance Companies \| Foreign
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	(348)	(318)	(1,326)
Statutory capital and surplus	16,447	11,721
Aggregate minimum required statutory capital and surplus	9,065	6,301
Life and Retirement companies
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	77	1,087	2,299
Statutory capital and surplus	11,221	12,595
Aggregate minimum required statutory capital and surplus	4,535	3,267
Statutory surplus and net income (loss)
Permitted practice	438	407
Life and Retirement companies \| Domestic
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	673	1,066	2,252
Statutory capital and surplus	9,477	12,149
Aggregate minimum required statutory capital and surplus	3,197	3,146
Life and Retirement companies \| Foreign
Statutory capital and surplus and net income (loss)
Statutory net income (loss)	(596)	21	$ 47
Statutory capital and surplus	1,744	446
Aggregate minimum required statutory capital and surplus	$ 1,338	$ 121

SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share based compensation expense) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
SHARE-BASED COMPENSATION PLANS
Share-based compensation expense - pre-tax	$ 337	$ 353	$ 237
Share-based compensation expense - after tax	266	229	154
Vested stock-settled awards issued to retirement eligible employees	48	$ 141	$ 105
Excess Tax Benefit from Share-based Compensation, Financing Activities	$ 9

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, 2018 USD ($) item shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense \| $	$ 337.0	$ 353.0	$ 237.0
Performance share units
Assumptions used to estimate the fair value of PSUs based on AIG's TSR
Expected dividend yield (as a percent)	0.00%	2.37%	2.17%
Expected volatility (as a percent)	0.00%	17.58%	24.55%
Risk-free interest rate (as a percent)	0.00%	2.00%	1.30%
Expected volatility is based on the historical volatility of the stock price for the most recent trading days	360 days
Deferred stock units (DSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted under the plans	39,092	32,067	41,974
Compensation expense \| $	$ 2.1	$ 2.0	$ 2.4
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	37,211,710
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 \| 2018
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%
AIG 2013 Long Term Incentive Plan \| Performance share units \| Maximum \| 2017
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%
AIG 2013 Long Term Incentive Plan \| Performance share units \| Maximum \| 2014 to 2016
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	150.00%
AIG 2013 Long Term Incentive Plan \| Performance share units \| Minimum \| 2018
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%
AIG 2013 Long Term Incentive Plan \| Performance share units \| Minimum \| 2017
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%
AIG 2013 Long Term Incentive Plan \| Performance share units \| Minimum \| 2014 to 2016
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%

SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share-settled Awards - Outstanding share-settled awards) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incurred/recognized incremental compensation expense	$ 48	$ 71
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized
Expected Period	3 years
RSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incurred/recognized incremental compensation expense	$ 142
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	4 years 3 months
2014 LTI \| PSUs
Change in number of shares
Unvested at the beginning of the period (in shares)	823,311
Granted (in shares)	0
Vested (in shares)	(793,955)
Forfeited (in shares)	(29,356)
Unvested at the end of the period (in shares)	0	823,311
Change in Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 48.81
Granted (in dollars per share)	0
Vested (in dollars per share)	48.81
Forfeited (in dollars per share)	48.84
Unvested at the end of the period (in dollars per share)	$ 0	$ 48.81
2015 LTI \| PSUs
Change in number of shares
Unvested at the beginning of the period (in shares)	1,291,788
Granted (in shares)	0
Vested (in shares)	(266,184)
Forfeited (in shares)	(753,272)
Unvested at the end of the period (in shares)	272,332	1,291,788
Change in Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 60.02
Granted (in dollars per share)	0
Vested (in dollars per share)	57.87
Forfeited (in dollars per share)	54.46
Unvested at the end of the period (in dollars per share)	$ 60.51	$ 60.02
2016 LTI \| PSUs
Change in number of shares
Unvested at the beginning of the period (in shares)	1,467,745
Granted (in shares)	0
Vested (in shares)	(728,576)
Forfeited (in shares)	(98,509)
Unvested at the end of the period (in shares)	640,660	1,467,745
Change in Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 60.9
Granted (in dollars per share)	0
Vested (in dollars per share)	60.28
Forfeited (in dollars per share)	62.13
Unvested at the end of the period (in dollars per share)	$ 61.55	$ 60.9
2017 LTI \| PSUs
Change in number of shares
Unvested at the beginning of the period (in shares)	2,173,115
Granted (in shares)	43,792
Vested (in shares)	(530,388)
Forfeited (in shares)	(106,524)
Unvested at the end of the period (in shares)	1,579,995	2,173,115
Change in Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 62.78
Granted (in dollars per share)	58.52
Vested (in dollars per share)	63.67
Forfeited (in dollars per share)	63.13
Unvested at the end of the period (in dollars per share)	$ 62.32	$ 62.78
2018 LTI \| PSUs
Change in number of shares
Unvested at the beginning of the period (in shares)	0
Granted (in shares)	4,640,722
Vested (in shares)	(1,205,653)
Forfeited (in shares)	(113,041)
Unvested at the end of the period (in shares)	3,322,028	0
Change in Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 0
Granted (in dollars per share)	55.47
Vested (in dollars per share)	55.85
Forfeited (in dollars per share)	55.92
Unvested at the end of the period (in dollars per share)	$ 55.32	$ 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	$ 215
Weighted-Average Period	11 months 16 days
Expected Period	2 years

SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Roll forward of stock option activity) - USD ($) $ / shares in Units, $ in Millions													12 Months Ended
	Dec. 26, 2018	Sep. 28, 2018	Jun. 28, 2018	Mar. 29, 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. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted under the plans													2,752,098
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	$ 0.32	$ 0.32	$ 0.32	$ 0.32
Stock options activity
Outstanding at beginning of year (in shares)													2,500,000
Granted (in shares)													2,752,098
Exercised (in shares)													0
Forfeited or expired (in shares)													(46,299)
Outstanding at end of year (in shares)													5,205,799	2,500,000
Units, Exercisable, end of year (in shares)													486,229
Stock options, Weighted Average Exercise Price
Outstanding at beginning of year (in dollars per share)													$ 62.9
Granted (in dollars per share)													55.38
Exercised (in dollars per share)													0
Forfeited or expired (in dollars per share)													55.94
Outstanding at end of year (in dollars per share)													58.99	$ 62.9
Excercisable, end of year (in dollars per share)													$ 59.9
Stock options, Weighted Average Remaining Contractual Life
Weighted Average Remaining Contractual Life, Outstanding End of year													7 years 4 months 17 days	6 years 5 months 23 days
Weighted Average Remaining Contractual Life, Exercisable, End of year													4 years 25 days
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													337.0	$ 353.0	$ 237.0
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													$ 2.1	$ 2.0	$ 2.4
Stock Options
Weighted average assumptions used to estimate the fair value
Expected annual dividend yield (as a percent)													2.32%	2.03%
Expected volatility (as a percent)													23.29%	20.96%
Risk-free interest rate (as a percent)													2.83%	1.94%
Dividend paid (in dollars per share)													$ 0.32
Trading Period on Which Historical Valuation is Based by Bloomberg Professional Service													24 months
Contractual term of the option													P7Y
Stock options, Weighted Average Remaining Contractual Life
Weighted average grant-date fair value of stock options granted													$ 11.08
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized
Compensation expense													$ 26.4
Unrecognized Compensation Cost													$ 24.0
Expected Period													2 years 9 months
Stock Options \| Minimum [Member]
Weighted average assumptions used to estimate the fair value
Contractual term of the option													P7Y
Stock Options \| Maximum [Member]
Weighted average assumptions used to estimate the fair value
Contractual term of the option													P10Y

SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Cash-settled Awards - Roll forward of SARs and cash-settled RSUs (excluding stock salary) as well as the related expenses) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) shares
Change in SARs (based on target amounts) as well as the related expenses
Restricted shares issued \| shares	1,385,929
Restricted stock expense	$ 43.3
Total unrecognized compensation costs	$ 57.0
RSUs \| Maximum
Change in SARs (based on target amounts) as well as the related expenses
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	4 years 3 months
RSUs \| Minimum
Change in SARs (based on target amounts) as well as the related expenses
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 1 month 20 days

EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
Change in plan assets:
AIG contributions	$ 210	$ 209	$ 236
Pensions \| U.S.
Change in projected benefit obligation:
Benefit obligation, beginning of year	5,091	4,948
Service cost	5	11	19
Interest cost	162	166	181
Actuarial (gain) loss	(383)	372
Benefits paid:
AIG assets	(16)	(19)
Benefits Paid AIG and Plan assets	(306)	(161)
Plan amendment	0	0
Curtailment loss	0	0
Settlement charges	0	(226)
Foreign exchange effect	0	0
Other	0	0
Projected benefit obligation, end of year	4,553	5,091	4,948
Change in plan assets:
Fair value of plan assets, beginning of year	4,350	3,843
Actual return on plan assets, net of expenses	(204)	584
AIG contributions	16	329
AIG assets	(16)	(19)
Plan assets	(306)	(161)
Settlements	0	(226)
Foreign exchange effect	0	0
Other	0	0
Fair value of plan assets, end of year	3,840	4,350	3,843
Funded status, end of year				$ (713)	$ (741)
Amounts recognized in the consolidated balance sheet:
Assets				0	0
Liabilities				(713)	(741)
Total amounts recognized				(713)	(741)
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Net gain (loss)	(1,450)	(1,373)
Prior service (cost) credit	0	0
Total amounts recognized	(1,450)	(1,373)
Projected benefit obligation	5,091	5,091	4,948	4,553	5,091
Pensions \| U.S. \| Non-qualified unfunded plans
Change in projected benefit obligation:
Benefit obligation, beginning of year	272
Benefits paid:
Projected benefit obligation, end of year	250	272
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Projected benefit obligation	250	272		250	272
Pensions \| Non U.S. Plans
Change in projected benefit obligation:
Benefit obligation, beginning of year	1,202	1,246
Service cost	22	29	31
Interest cost	16	16	21
Actuarial (gain) loss	(28)	(29)
Benefits paid:
AIG assets	(9)	(10)
Benefits Paid AIG and Plan assets	(32)	(26)
Plan amendment	3	0
Curtailment loss	0	(7)
Settlement charges	(5)	(12)
Foreign exchange effect	(31)	37
Other	0	(42)
Projected benefit obligation, end of year	1,138	1,202	1,246
Change in plan assets:
Fair value of plan assets, beginning of year	875	803
Actual return on plan assets, net of expenses	6	67
AIG contributions	51	60
AIG assets	(9)	(10)
Plan assets	(32)	(26)
Settlements	(5)	(12)
Foreign exchange effect	(25)	19
Other	0	(26)
Fair value of plan assets, end of year	861	875	803
Funded status, end of year				(277)	(327)
Amounts recognized in the consolidated balance sheet:
Assets				72	68
Liabilities				(349)	(395)
Total amounts recognized				(277)	(327)
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Net gain (loss)	(149)	(170)
Prior service (cost) credit	(23)	(22)
Total amounts recognized	(172)	(192)
Projected benefit obligation	1,202	1,202	1,246	1,138	1,202
Pensions \| Non U.S. Plans \| Non-qualified unfunded plans
Change in projected benefit obligation:
Benefit obligation, beginning of year	211
Benefits paid:
Projected benefit obligation, end of year	201	211
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Projected benefit obligation	201	211		201	211
Postretirement Plans \| U.S.
Change in projected benefit obligation:
Benefit obligation, beginning of year	190	196
Service cost	1	2	2
Interest cost	6	6	7
Actuarial (gain) loss	(10)	0
Benefits paid:
AIG assets	(15)	(13)
Benefits Paid AIG and Plan assets	0	0
Plan amendment	0	0
Curtailment loss	0	0
Settlement charges	0	0
Foreign exchange effect	0	0
Other	0	(1)
Projected benefit obligation, end of year	172	190	196
Change in plan assets:
Fair value of plan assets, beginning of year	0	0
Actual return on plan assets, net of expenses	0	0
AIG contributions	15	13
AIG assets	(15)	(13)
Plan assets	0	0
Settlements	0	0
Foreign exchange effect	0	0
Other	0	0
Fair value of plan assets, end of year	0	0	0
Funded status, end of year				(172)	(190)
Amounts recognized in the consolidated balance sheet:
Assets				0	0
Liabilities				(172)	(190)
Total amounts recognized				(172)	(190)
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Net gain (loss)	26	17
Prior service (cost) credit	0	1
Total amounts recognized	26	18
Projected benefit obligation	190	190	196	172	190
Postretirement Plans \| Non U.S. Plans
Change in projected benefit obligation:
Benefit obligation, beginning of year	63	80
Service cost	1	3	3
Interest cost	2	3	3
Actuarial (gain) loss	(14)	(2)
Benefits paid:
AIG assets	(1)	(1)
Benefits Paid AIG and Plan assets	0	0
Plan amendment	0	(6)
Curtailment loss	0	0
Settlement charges	0	0
Foreign exchange effect	(1)	1
Other	0	(15)
Projected benefit obligation, end of year	50	63	80
Change in plan assets:
Fair value of plan assets, beginning of year	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
Other	0	0
Fair value of plan assets, end of year	0	0	0
Funded status, end of year				(50)	(63)
Amounts recognized in the consolidated balance sheet:
Assets				0	0
Liabilities				(50)	(63)
Total amounts recognized				(50)	(63)
Pre tax amounts recognized in Accumulated other comprehensive income (loss):
Net gain (loss)	3	(11)
Prior service (cost) credit	3	5
Total amounts recognized	6	(6)
Projected benefit obligation	$ 63	$ 63	$ 80	$ 50	$ 63

EMPLOYEE BENEFITS (Details - Accumulated benefit obligations for U.S. and non-U.S. pension benefit plans) - Pensions - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
U.S.
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	$ 4,553	$ 5,091
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets
Projected benefit obligation	4,553	5,091
Accumulated benefit obligation	4,553	5,091
Fair value of plan assets	3,840	4,350
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets
Projected benefit obligation	4,553	5,091
Accumulated benefit obligation	4,553	5,091
Fair value of plan assets	3,840	4,350
Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	1,125	1,188
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets
Projected benefit obligation	994	1,054
Accumulated benefit obligation	932	979
Fair value of plan assets	594	596
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets
Projected benefit obligation	943	991
Accumulated benefit obligation	932	979
Fair value of plan assets	$ 594	$ 596

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, 2018	Dec. 31, 2017	Dec. 31, 2016
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	38
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	24
Increase in expense due to decrease of 100 basis point in expected long-term rate of return	45
Decrease in expense due to increase of 100 basis point in discount rate	5
Decrease in expense due to increase of 100 basis point in expected long-term rate of return	45
Pensions \| U.S.
Components of net periodic benefit cost:
Service cost	5	$ 11	$ 19
Interest cost	162	166	181
Expected return on assets	(283)	(266)	(292)
Amortization of prior service cost (credit)	0	0	0
Amortization of net (gain) loss	28	26	25
Net periodic benefit cost (credit)	(88)	(63)	(67)
Curtailment (gain) loss	0	0	0
Settlement (Credit)/Charges	0	60	149
Net benefit cost (credit)	(88)	(3)	82
Total recognized in Accumulated other comprehensive income (loss)	(77)	32	(82)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	11	35	(164)
Pensions \| Non U.S. Plans
Components of net periodic benefit cost:
Service cost	22	29	31
Interest cost	16	16	21
Expected return on assets	(25)	(24)	(26)
Amortization of prior service cost (credit)	2	0	0
Amortization of net (gain) loss	7	12	7
Net periodic benefit cost (credit)	22	33	33
Curtailment (gain) loss	0	(6)	(6)
Settlement (Credit)/Charges	0	1	2
Net benefit cost (credit)	22	28	29
Total recognized in Accumulated other comprehensive income (loss)	20	87	(101)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	(2)	59	(130)
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.
Components of net periodic benefit cost:
Service cost	1	2	2
Interest cost	6	6	7
Expected return on assets	0	0	0
Amortization of prior service cost (credit)	(1)	(1)	(12)
Amortization of net (gain) loss	0	(1)	(1)
Net periodic benefit cost (credit)	6	6	(4)
Curtailment (gain) loss	0	0	(1)
Settlement (Credit)/Charges	0	0	0
Net benefit cost (credit)	6	6	(5)
Total recognized in Accumulated other comprehensive income (loss)	9	(2)	(7)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	3	(8)	(2)
Postretirement Plans \| Non U.S. Plans
Components of net periodic benefit cost:
Service cost	1	3	3
Interest cost	2	3	3
Expected return on assets	0	0	0
Amortization of prior service cost (credit)	(2)	(1)	0
Amortization of net (gain) loss	1	1	1
Net periodic benefit cost (credit)	2	6	7
Curtailment (gain) loss	0	(2)	0
Settlement (Credit)/Charges	0	0	0
Net benefit cost (credit)	2	4	7
Total recognized in Accumulated other comprehensive income (loss)	12	9	1
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$ 10	$ 5	$ (6)

EMPLOYEE BENEFITS (Details - Weighted average assumptions used to determine the benefit obligations) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
U.S.
Weighted average assumptions used to determine the net periodic benefit costs:
Expected return on assets (as a percent)	6.75%	7.00%
Non U.S. Plans
Weighted average assumptions used to determine the net periodic benefit costs:
Expected return on assets (as a percent)	2.78%	2.92%
Pension \| U.S.
Weighted average assumptions used to determine the benefit obligations:
Discount rate (as a percent)	4.22%	3.61%
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)	3.61%	4.15%	4.33%
Expected return on assets (as a percent)	6.75%	7.00%	7.00%
Pension \| U.S. \| Medical (before age 65)
Assumed health care cost trend rates
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year	5.93%	6.12%
Year in which the ultimate trend rate is reached:	2038	2038
Pension \| U.S. \| 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)	1.71%	1.60%
Rate of compensation increase (as a percent)	2.27%	2.27%
Weighted average assumptions used to determine the net periodic benefit costs:
Discount rate (as a percent)	1.60%	1.50%	2.17%
Rate of compensation increase (as a percent)	2.27%	2.50%	2.64%
Expected return on assets (as a percent)	2.78%	2.92%	3.28%
Pension \| AIG Japan pension plans
Discount Rate Methodology
Projected benefit obligation to total projected benefit obligations (as a percent)	52.00%	50.00%
Weighted average discount rate (as a percent)	0.72%	0.66%
Postretirement Plans \| U.S.
Weighted average assumptions used to determine the benefit obligations:
Discount rate (as a percent)	4.17%	3.53%
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	$ (3)	$ (4)
Weighted average assumptions used to determine the net periodic benefit costs:
Discount rate (as a percent)	3.53%	4.01%	4.21%
Postretirement Plans \| Non U.S. Plans
Weighted average assumptions used to determine the benefit obligations:
Discount rate (as a percent)	4.12%	3.59%
Rate of compensation increase (as a percent)	3.00%	3.00%
Effect of one percent point change in the assumed healthcare cost trend rate on postretirement benefit obligations
One percent increase	$ 10	$ 14
One percent decrease	$ (8)	$ (10)
Weighted average assumptions used to determine the net periodic benefit costs:
Discount rate (as a percent)	3.59%	3.95%	4.09%
Rate of compensation increase (as a percent)	3.00%	3.38%	3.43%

EMPLOYEE BENEFITS (Details - Assumed health care cost trend rates)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
U.S.
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)	6.75%	7.00%
U.S. \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)	26.00%
Actual allocation (as a percent)	25.00%	45.00%
U.S. \| Fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)	60.00%
Actual allocation (as a percent)	47.00%	36.00%
U.S. \| Other Investments
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)	14.00%
Actual allocation (as a percent)	28.00%	19.00%
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)	2.78%	2.92%
Non U.S. Plans \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)	30.00%
Actual allocation (as a percent)	35.00%	49.00%
Non U.S. Plans \| Fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)	51.00%
Actual allocation (as a percent)	37.00%	32.00%
Non U.S. Plans \| Other Investments
Defined Benefit Plan Disclosure [Line Items]
Target allocation (as a percent)	18.00%
Actual allocation (as a percent)	17.00%	13.00%
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)	11.00%	6.00%
Pensions \| AIG Japan pension plans
Defined Benefit Plan Disclosure [Line Items]
Actual allocation (as a percent)	59.00%	56.00%
Expected weighted average long-term rate of return plan assets (as a percent)	2.22%	2.43%

EMPLOYEE BENEFITS (Details - Changes in Level 3 fair value measurements) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Changes in Level 3 fair value measurements
Issuances	$ 0	$ 0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	264	487
Pensions \| U.S.
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	4,350	3,843
Net Realized and Unrealized Gains (Losses)	(204)	584
Fair value of plan assets, end of year	3,840	4,350
Pensions \| U.S. \| Level 3
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	27	26
Net Realized and Unrealized Gains (Losses)	(4)	(3)
Purchases	8	18
Sales	(5)	(14)
Settlements	0	0
Issuances	0	0
Transfers In	1	0
Transfers Out	0	0
Fair value of plan assets, end of year	27	27
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	0	1
Pensions \| U.S. \| Level 3 \| Fixed maturity securities: U.S. investment grade
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	12	2
Net Realized and Unrealized Gains (Losses)	(2)	0
Purchases	5	17
Sales	(3)	(7)
Settlements	0	0
Issuances	0	0
Transfers In	1	0
Transfers Out	0	0
Fair value of plan assets, end of year	13	12
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	1	2
Pensions \| U.S. \| Level 3 \| Direct private equity
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	15	24
Net Realized and Unrealized Gains (Losses)	(2)	(3)
Purchases	3	1
Sales	(2)	(7)
Settlements	0	0
Issuances	0	0
Transfers In	0	0
Transfers Out	0	0
Fair value of plan assets, end of year	14	15
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year	(1)	(1)
Pensions \| U.S. \| 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. \| 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	875	803
Net Realized and Unrealized Gains (Losses)	6	67
Fair value of plan assets, end of year	861	875
Pensions \| Non U.S. Plans \| Level 3
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	113	108
Net Realized and Unrealized Gains (Losses)	31	4
Purchases	1	1
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	145	113
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 \| 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 \| Insurance contracts
Changes in Level 3 fair value measurements
Fair value of plan assets, beginning of year	113	108
Net Realized and Unrealized Gains (Losses)	31	4
Purchases	1	1
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	145	113
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
Defined Benefit Plan Disclosure [Line Items]
AIG contributions	$ 210	$ 209	$ 236
Expected future benefit payments, net of participants' contributions
Pre tax expenses associated with contribution plans	$ 210	209	236
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	$ 210	209	$ 236
Pensions
Defined Benefit Plan Disclosure [Line Items]
Estimated employer contribution	79
Pensions \| U.S.
Defined Benefit Plan Disclosure [Line Items]
AIG contributions	16	329
Expected future benefit payments, net of participants' contributions
2019	274
2020	270
2021	281
2022	279
2023	276
2024-2028	1,361
Pre tax expenses associated with contribution plans	16	329
Pensions \| Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
AIG contributions	51	60
Expected future benefit payments, net of participants' contributions
2019	77
2020	42
2021	41
2022	41
2023	42
2024-2028	245
Pre tax expenses associated with contribution plans	51	60
Postretirement Plans \| U.S.
Defined Benefit Plan Disclosure [Line Items]
AIG contributions	15	13
Expected future benefit payments, net of participants' contributions
2019	13
2020	13
2021	13
2022	13
2023	13
2024-2028	56
Pre tax expenses associated with contribution plans	15	13
Postretirement Plans \| Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
AIG contributions	1	1
Expected future benefit payments, net of participants' contributions
2019	1
2020	1
2021	1
2022	1
2023	2
2024-2028	10
Pre tax expenses associated with contribution plans	$ 1	$ 1

INCOME TAXES (Details - EFFECTIVE TAX RATE) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income (loss) from continuing operations before income tax expense (benefit)
U.S.										$ (12)	$ 1,940	$ 1,041
Foreign										269	(474)	(1,115)
Income (loss) from continuing operations before income tax expense	$ (695)	$ (1,527)	$ 1,252	$ 1,227	$ 875	$ (2,803)	$ 1,667	$ 1,727		257	1,466	(74)
Foreign:
Current										202	209	436
Deferred										(7)	25	(121)
U.S.:
Current										134	427	140
Deferred										(175)	6,865	(270)
Income tax expense										154	7,526	185
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										255	1,476	(159)
Amounts attributable to discontinued operations										(2)	10	(85)
Income (loss) from continuing operations before income tax expense	(695)	(1,527)	1,252	1,227	875	(2,803)	1,667	1,727		257	1,466	(74)
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										54	517	(56)
Consolidated total amounts										194	7,532	190
Amounts attributable to discontinued operations										40	6	5
Income tax expense										154	7,526	185
Adjustments:
Tax exempt interest										(37)	(111)	(178)
Uncertain tax positions										176	660	268
Reclassifications from accumulated other comprehensive income										(72)	(184)	(132)
Partial completion of Internal Revenue Service examination											0	116
Tax exempt income										75	201	253
Cross Border Financing Transactions										0	660	216
Dispositions of Subsidiaries										0	17	118
Tax Attribute Restoration										0	0	(164)
Non-controlling Interest										(1)	(7)	(81)
Non-deductible transfer pricing charges										29	35	102
Dividends received deduction										(38)	(90)	(75)
Effect of foreign operations										44	69	234
Share-based compensation payments excess tax deduction										(13)	(40)	0
State income taxes										10	(9)	23
Impact of Tax Act	0	62	0	0	6,687	0	0	0		62	6,687	0
Global intangible low-taxed income										21	0	0
Other										(102)	(58)	13
Effect of discontinued operations										40	3	35
Valuation allowance
Continuing operations										21	$ 43	$ 83
Increase (Decrease) in certain other valuation allowances associated with foreign jurisdictions										0
Increase (Decrease) in certain other valuation allowances associated with certain state jurisdictions.		0								0
Valuation allowance related to unrealized losses that are no more-likely-than-not to be realized										$ 0
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%	21.00%	35.00%	35.00%
Consolidated total amounts (as a percent)										76.00%	510.30%	(119.50%)
Amounts attributable to discontinued operations (as a percent)											60.00%	(5.90%)
Adjustments:
Amounts attributable to continuing operations (as a percent)										59.90%	513.40%	(250.00%)
Tax exempt interest (as a percent)										(14.50%)	(7.50%)	111.90%
Uncertain Tax Positions (as a percent)										69.00%	44.70%	(168.60%)
Reclassification from accumulated other comprehensive income (as a percent)										(28.20%)	(12.50%)	83.00%
Dispositions of Subsidiaries (as a percent)										0.00%	1.20%	(74.20%)
Tax Attribute Restoration (as a percent)										0.00%	0.00%	103.10%
Non-controlling Interest (as a percent)										(0.40%)	(0.50%)	50.90%
Non-deductible transfer pricing charges (as a percent)										11.40%	2.40%	(64.20%)
Dividends received deduction (as a percent)										(14.80%)	(6.10%)	47.20%
Effect of foreign operations (as a percent)										17.30%	4.70%	(147.20%)
Share-based compensation payments excess tax deduction (as a percent)										(5.10%)	(2.70%)	0.00%
State income taxes (as a percent)										3.90%	(0.60%)	(14.50%)
Impact of Tax Act (as a percent)										24.30%	453.00%	0.00%
Global intangible low-taxed income (as a percent)										8.20%	0.00%	0.00%
Other (as a percent)										(40.00%)	(3.90%)	(8.20%)
Effect of discontinued operations (as a percent)										15.70%	0.20%	(22.00%)
Valuation allowance (as a percent):
Continuing operations (as a percent)										8.20%	2.90%	(52.20%)
Undistributed Earnings of Foreign Subsidiaries	0									$ 0
Accounting for Uncertainty in Income Taxes
Unrecognized tax benefits, excluding interest and penalties	4,709				4,707					4,709	$ 4,707	$ 4,530	$ 4,331
Unrecognized tax benefits, if recognized would not affect the effective tax rate	38				28					38	28	66
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate	4,700				4,700					4,700	4,700	4,400
Unrecognized tax benefits, interest and penalties accrued	2,200				2,000					2,200	2,000	1,200
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties										(190)	(776)	(26)
Decrease in Unrecognized Tax Benefits is Reasonably Possible in the next twelve months	3,900									3,900
Deferred tax asset valuation allowance recognized	(21)	$ 5	$ 7	$ 30	$ 40	$ 24	$ (8)	$ (13)
Charges related to accrual of income tax interest	$ 48									48
Foreign and state
Accounting for Uncertainty in Income Taxes
Deferred tax asset valuation allowance recognized										21
US Life companies capital loss carryforward
Valuation allowance
Continuing operations												$ 0
Accounting for Uncertainty in Income Taxes
Deferred tax asset valuation allowance recognized										$ 290
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, 2018	Dec. 31, 2017
Deferred tax assets:
Life policy reserves	$ 2,200	$ 1,996
Losses and tax credit carryforwards	11,792	11,931
Basis differences on investments	2,038	2,133
Accruals not currently deductible, and other	608	532
Deferred Tax Assets, Investments in foreign subsidiaries	173	159
Loss reserve discount	272	526
Loan loss and other reserves	0	34
Unearned premium reserve reduction	504	566
Fixed assets and intangible assets	531	442
Other	962	731
Employee benefits	604	601
Total deferred tax assets	19,684	19,651
Deferred tax liabilities:
Deferred policy acquisition costs	(2,342)	(2,313)
Unrealized gains related to available for sale debt securities	(490)	(2,151)
Loan loss and other reserves	(20)	0
Total deferred tax liabilities	(2,852)	(4,464)
Net deferred tax assets before valuation allowance	16,832	15,187
Valuation allowance	(1,780)	(1,374)
Net deferred tax assets (liabilities)	$ 15,052	$ 13,813

INCOME TAXES (Details - U.S. consolidated income tax group tax losses and credits carryforwards) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
AIG U.S. consolidated income tax group tax losses and credits carryforwards, gross
Net operating loss carryforwards	$ 36,268
Capital Loss Carryforwards	82
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected
Net operating loss carryforwards	7,616
Capital Loss Carryforwards	17
Foreign tax credit carryforwards	3,516
Other carryforwards	814
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis	11,963
Unrecognized tax benefit	(1,733)
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis	10,230
General business credits	30
Alternative Minimum Tax Credit carryforward	$ 39
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	2023
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	2023
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	2019

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, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred Tax Assets, Liabilities [Line Items]
Change in valuation allowance		$ (21)	$ 5	$ 7	$ 30	$ 40	$ 24	$ (8)	$ (13)
Continuing operations										$ 21	$ 43	$ 83
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		(1,780)				(1,374)				(1,780)	(1,374)
Net deferred tax assets (liabilities)		15,052				13,813				15,052	13,813
Net foreign, state & local deferred tax assets		16,832				15,187				16,832	15,187
Net U.S, foreign, state & local deferred tax assets		15,221				14,033				15,221	14,033
Net foreign, state & local deferred tax liabilities		(2,852)				(4,464)				(2,852)	(4,464)
Deferred tax asset - U.S. consolidated income tax group
Deferred Tax Assets, Liabilities [Line Items]
Change in valuation allowance										14,600	13,400
Continuing operations										0
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		15,479				15,603				15,479	15,603
Net deferred tax assets (liabilities) in Accumulated other comprehensive income		(510)				(2,070)				(510)	(2,070)
Valuation allowance		(405)				(86)				(405)	(86)
Net deferred tax assets (liabilities)		14,564				13,447				14,564	13,447
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		(1,374)				(1,288)				(1,374)	(1,288)
Net deferred tax assets (liabilities)		488				366				488	366
Net foreign, state & local deferred tax assets		2,031				1,874				2,031	1,874
Net deferred tax assets (liabilities)		657				586				657	586
Net foreign, state & local deferred tax liabilities		$ (169)				$ (220)				$ (169)	$ (220)

INCOME TAXES (Details - Accounting For Uncertainty in Income Taxes) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Rollforward of the beginning and ending balances of the total amounts of gross unrecognized tax benefits
Gross unrecognized tax benefits, beginning of year	$ 4,707	$ 4,530	$ 4,331
Increases in tax positions for prior years	14	210	235
Decreases in tax positions for prior years	(6)	(33)	(39)
Increases in tax positions for current year	0	0	3
Lapse in statute of limitations	0	0	0
Settlements	(6)	0	0
Activity of discontinued operations	0	0	0
Gross unrecognized tax benefits, end of year	4,709	4,707	4,530
Unrecognized tax benefits, if recognized would not affect the effective tax rate	38	28	66
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate	4,700	4,700	4,400
Unrecognized tax benefits, interest and penalties accrued	2,200	2,000	1,200
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties	(190)	$ (776)	$ (26)
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, 2018
UNITED STATES [Member] \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2000
UNITED STATES [Member] \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2017
Australia [Member] \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2014
Australia [Member] \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2017
FRANCE [Member] \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2017
FRANCE [Member] \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2018
JAPAN [Member} \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2012
JAPAN [Member} \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2017
KOREA [Member] \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2013
KOREA [Member] \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2017
SINGAPORE [Member] \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2014
SINGAPORE [Member] \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2017
United Kingdom \| Minimum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2017
United Kingdom \| Maximum [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2018

INCOME TAXES (Details - U.S. TAX REFORM OVERVIEW) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax [Line Items]
U.S. federal income tax at statutory rate (as a percent)									21.00%	21.00%	35.00%	35.00%
Impact of Tax Act	$ 0.0	$ 62.0	$ 0.0	$ 0.0	$ 6,687.0	$ 0.0	$ 0.0	$ 0.0		$ 62.0	$ 6,687.0	$ 0.0
Tax charge attributable to the reduction in the U.S. corporate income tax											6,700.0
Tax benefit related to the deemed repatriation tax											38.0
New deferred tax liabilities	2,852.0				4,464.0					2,852.0	4,464.0
Tax Cuts And Jobs Act Of 2017 Transition Tax For Accumulated Foreign Earnings Income Tax Expense											62.0
Tax Cuts And Jobs Act Of 2017 Transition Tax For Accumulated Foreign Earnings Liability					24.0						24.0
Tax Cuts And Jobs Act Incomplete Accounting Insurance Reserve Calculation Changes Provisional Income Tax Expense Benefit											1,900.0
Tax Cuts And Jobs Act Of 2017 Measurement Period Adjustment Income Tax Expense Benefit										(1,400.0)
Cumulative effect of change in accounting principle					(8.0)						(8.0)
Minimum
Income Tax [Line Items]
Unrecognized deferred tax liabilities	100.0									100.0
Maximum
Income Tax [Line Items]
Unrecognized deferred tax liabilities	150.0									150.0
Accumulated Other Comprehensive Income (Loss)
Income Tax [Line Items]
Cumulative effect of change in accounting principle					(576.0)						(576.0)
Retained Earnings
Income Tax [Line Items]
Cumulative effect of change in accounting principle					$ 568.0						$ 568.0
Accounting Standards Update - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income \| Accumulated Other Comprehensive Income (Loss)
Income Tax [Line Items]
Cumulative effect of change in accounting principle	248.0									248.0
Accounting Standards Update - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income \| Retained Earnings
Income Tax [Line Items]
Cumulative effect of change in accounting principle	$ (248.0)									$ (248.0)
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

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details - Consolidated Statements of Income (Loss)) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Total revenues	$ 12,560	$ 11,486	$ 11,631	$ 11,712	$ 12,635	$ 11,751	$ 12,502	$ 12,632	$ 47,389	$ 49,520	$ 52,367
Income (loss) from continuing operations before income tax expense	(695)	(1,527)	1,252	1,227	875	(2,803)	1,667	1,727	257	1,466	(74)
Income (loss) from discontinued operations, net of income tax expense	(2)	(39)	0	(1)	(3)	(1)	8	0	(42)	4	(90)
Net income (loss)	(560)	(1,259)	931	949	(6,672)	(1,713)	1,118	1,211	61	(6,056)	(349)
Net income from continuing operations attributable to noncontrolling interests	62	0	(6)	11	(12)	26	(12)	26	67	28	500
Net income (loss) attributable to AIG	$ (622)	$ (1,259)	$ 937	$ 938	$ (6,660)	$ (1,739)	$ 1,130	$ 1,185	$ (6)	$ (6,084)	$ (849)
Basic:
Income (loss) from continuing operations	$ (0.7)	$ (1.37)	$ 1.04	$ 1.03	$ (7.33)	$ (1.91)	$ 1.21	$ 1.21	$ 0.04	$ (6.54)	$ (0.7)
Income (loss) from discontinued operations	(0.7)	(0.04)	0	0	0	0	0.01	0	(0.05)	0	(0.08)
Diluted:
Income (loss) from continuing operations	(0.7)	(1.37)	1.02	1.01	(7.33)	(1.91)	1.18	1.18	0.04	(6.54)	(0.7)
Loss from discontinued operations	$ (0.7)	$ (0.04)	$ 0	$ 0	$ 0	$ 0	$ 0.01	$ 0	$ (0.05)	$ 0	$ (0.08)
Weighted average shares outstanding:
Basic	887,508,718	895,237,359	903,215,488	907,951,597	908,115,499	908,667,044	925,751,084	980,777,243	898,405,537	930,561,286	1,091,085,131
Diluted	887,508,718	895,237,359	916,572,481	925,266,577	908,115,499	908,667,044	948,248,771	1,005,315,030	910,141,242	930,561,286	1,091,085,131
Noteworthy quarterly items income (expense):
Other-than-temporary impairments	$ 93	$ 35	$ 36	$ 87	$ 37	$ 88	$ 67	$ 68	$ 251	$ 227	$ 487
Income (loss) from divested businesses	(3)	(2)	(25)	(8)	(241)	13	60	100	38	68	545
Federal and foreign valuation allowance for deferred tax assets	(21)	5	7	30	40	24	(8)	(13)
Gain (Loss) on extinguishment of debt	(3)	1	5	4	(1)	1	(4)	(1)	(7)	5	(74)
Total prior year (favourable) unfavorable development	546	949	(26)	(40)	212	901	391	61
Restructuring and other costs	136	35	200	24	154	31	47	181
Impact of Tax Act	0	62	0	0	$ 6,687	$ 0	$ 0	$ 0	$ 62	$ 6,687	0
Adjustment
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Income (loss) from continuing operations before income tax expense	(132)
Net income (loss) attributable to AIG	$ (87)	$ (40)	$ 0	$ 0
Adjustments 2016 [Member]
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Income (loss) from continuing operations before income tax expense											(57)
Net income (loss) attributable to AIG											$ (174)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets:
Short-term investments	$ 9,674	$ 10,386
Other investments	304,535	311,906
Total investments	314,209	322,292
Cash	2,873	2,362	$ 1,868
Loans to subsidiaries	0
Investment in consolidated subsidiaries	0
Other assets, including deferred income taxes	174,902	173,647
Total assets	491,984	498,301
Short-term investments, restricted cash	142	58	46
Liabilities:
Insurance liabilities	293,652	282,105
Long-term Debt	34,540	31,640
Other liabilities, including intercompany balances	106,483	118,848
Loans from subsidiaries	0
Total liabilities	434,675	432,593
Total AIG shareholders' equity	56,361	65,171
Non-redeemable noncontrolling interests	948	537
Total equity	57,309	65,708	76,858	$ 90,210
Total liabilities and equity	491,984	498,301
AIG (As Guarantor)
Assets:
Short-term investments	1,141	2,541
Other investments	3,377	6,004
Total investments	4,518	8,545
Cash	2	3	2
Loans to subsidiaries	34,963	35,004
Investment in consolidated subsidiaries	33,300	40,135
Other assets, including deferred income taxes	15,389	16,016
Total assets	88,172	99,703
Short-term investments, restricted cash	124	4	0
Liabilities:
Insurance liabilities	0	0
Long-term Debt	22,422	21,557
Other liabilities, including intercompany balances	8,774	12,458
Loans from subsidiaries	615	517
Total liabilities	31,811	34,532
Total AIG shareholders' equity	56,361	65,171
Non-redeemable noncontrolling interests	0	0
Total equity	56,361	65,171
Total liabilities and equity	88,172	99,703
Validus Holdings, Ltd
Assets:
Short-term investments	2
Other investments	0
Total investments	2
Cash	9
Loans to subsidiaries	0
Investment in consolidated subsidiaries	4,029
Other assets, including deferred income taxes	1,798
Total assets	5,838
Short-term investments, restricted cash	0
Liabilities:
Insurance liabilities	0
Long-term Debt	359
Other liabilities, including intercompany balances	228
Loans from subsidiaries	0
Total liabilities	587
Total AIG shareholders' equity	5,251
Non-redeemable noncontrolling interests	0
Total equity	5,251
Total liabilities and equity	5,838
AIGLH
Assets:
Short-term investments	0	0
Other investments	0	0
Total investments	0	0
Cash	9	20	34
Loans to subsidiaries	0	0
Investment in consolidated subsidiaries	26,321	30,359
Other assets, including deferred income taxes	124	170
Total assets	26,454	30,549
Liabilities:
Insurance liabilities	0	0
Long-term Debt	643	642
Other liabilities, including intercompany balances	144	143
Loans from subsidiaries	0	0
Total liabilities	787	785
Total AIG shareholders' equity	25,667	29,764
Non-redeemable noncontrolling interests	0	0
Total equity	25,667	29,764
Total liabilities and equity	26,454	30,549
Other Subsidiaries
Assets:
Short-term investments	10,329	11,559
Other investments	301,158	305,902
Total investments	311,487	317,461
Cash	2,853	2,339	1,832
Loans to subsidiaries	615	517
Investment in consolidated subsidiaries	0	0
Other assets, including deferred income taxes	159,430	159,594
Total assets	474,385	479,911
Liabilities:
Insurance liabilities	293,652	282,105
Long-term Debt	11,116	9,441
Other liabilities, including intercompany balances	100,974	112,275
Loans from subsidiaries	34,963	35,004
Total liabilities	440,705	438,825
Total AIG shareholders' equity	32,732	40,549
Non-redeemable noncontrolling interests	948	537
Total equity	33,680	41,086
Total liabilities and equity	474,385	479,911
Other assets
Assets:
Short-term investments, restricted cash	343	317
Other assets \| AIG (As Guarantor)
Assets:
Short-term investments, restricted cash	1	1	1
Other assets \| AIGLH
Assets:
Short-term investments, restricted cash	0	0	0
Other assets \| Other Subsidiaries
Assets:
Short-term investments, restricted cash	342	316	192
Short-term investments
Assets:
Short-term investments, restricted cash	142	58
Short-term investments \| AIG (As Guarantor)
Assets:
Short-term investments, restricted cash	124	4	0
Short-term investments \| AIGLH
Assets:
Short-term investments, restricted cash	0	0	0
Short-term investments \| Other Subsidiaries
Assets:
Short-term investments, restricted cash	18	54	46
Reclassification and Eliminations
Assets:
Short-term investments	(1,798)	(3,714)
Other investments	0
Total investments	(1,798)	(3,714)
Cash	0	0	$ 0	$ 0
Loans to subsidiaries	(35,578)	(35,521)
Investment in consolidated subsidiaries	(63,650)	(70,494)
Other assets, including deferred income taxes	(1,839)	(2,133)
Assets held for sale	0
Total assets	(102,865)	(111,862)
Liabilities:
Insurance liabilities	0	0
Long-term Debt	0
Other liabilities, including intercompany balances	(3,637)	(6,028)
Loans from subsidiaries	(35,578)	(35,521)
Liabilities held for sale	0
Total liabilities	(39,215)	(41,549)
Total AIG shareholders' equity	(63,650)	(70,313)
Non-redeemable noncontrolling interests	0
Total equity	(63,650)	(70,313)
Total liabilities and equity	$ (102,865)	$ (111,862)

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, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Equity in earnings of consolidated subsidiaries									$ 0	$ 0	$ 0
Other income									47,389	49,520	52,367
Total revenues	$ 12,560	$ 11,486	$ 11,631	$ 11,712	$ 12,635	$ 11,751	$ 12,502	$ 12,632	47,389	49,520	52,367
Expenses:
Interest expense									1,309	1,168	1,260
(Gains) losses on extinguishment of debt	3	(1)	(5)	(4)	1	(1)	4	1	7	(5)	74
Other expenses									45,816	46,891	51,107
Total benefits, losses and expenses									47,132	48,054	52,441
Income (loss) from continuing operations before income tax expense (benefit)									257	1,466	(74)
Income tax expense (benefit)									154	7,526	185
Income (loss) from continuing operations									103	(6,060)	(259)
Income (loss) from discontinued operations	(2)	(39)	0	(1)	(3)	(1)	8	0	(42)	4	(90)
Net income (loss)	(560)	(1,259)	931	949	(6,672)	(1,713)	1,118	1,211	61	(6,056)	(349)
Less:
Net income from continuing operations attributable to noncontrolling interests	62	0	(6)	11	(12)	26	(12)	26	67	28	500
Net income (loss) attributable to AIG	$ (622)	$ (1,259)	$ 937	$ 938	$ (6,660)	$ (1,739)	$ 1,130	$ 1,185	(6)	(6,084)	(849)
AIG (As Guarantor)
Revenues:
Equity in earnings of consolidated subsidiaries									(580)	(149)	(1,269)
Other income									938	891	516
Total revenues									358	742	(753)
Expenses:
Interest expense									954	949	988
(Gains) losses on extinguishment of debt									0	2	77
Other expenses									803	952	295
Total benefits, losses and expenses									1,757	1,903	1,360
Income (loss) from continuing operations before income tax expense (benefit)									(1,399)	(1,161)	(2,113)
Income tax expense (benefit)									(1,433)	4,922	(1,301)
Income (loss) from continuing operations									34	(6,083)	(812)
Income (loss) from discontinued operations									(40)	(1)	(37)
Net income (loss)									(6)	(6,084)	(849)
Less:
Net income from continuing operations attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to AIG									(6)	(6,084)	(849)
Validus Holdings, Ltd
Revenues:
Equity in earnings of consolidated subsidiaries									(240)
Other income									23
Total revenues									(217)
Expenses:
Interest expense									18
(Gains) losses on extinguishment of debt									0
Other expenses									27
Total benefits, losses and expenses									45
Income (loss) from continuing operations before income tax expense (benefit)									(262)
Income tax expense (benefit)									0
Income (loss) from continuing operations									(262)
Income (loss) from discontinued operations									0
Net income (loss)									(262)
Less:
Net income from continuing operations attributable to noncontrolling interests									0
Net income (loss) attributable to AIG									(262)
AIGLH
Revenues:
Equity in earnings of consolidated subsidiaries									2,847	1,978	(197)
Other income									1	0	5
Total revenues									2,848	1,978	(192)
Expenses:
Interest expense									50	50	51
(Gains) losses on extinguishment of debt									0	0	0
Other expenses									3	2	16
Total benefits, losses and expenses									53	52	67
Income (loss) from continuing operations before income tax expense (benefit)									2,795	1,926	(259)
Income tax expense (benefit)									39	(3)	(21)
Income (loss) from continuing operations									2,756	1,929	(238)
Income (loss) from discontinued operations									0	0	0
Net income (loss)									2,756	1,929	(238)
Less:
Net income from continuing operations attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to AIG									2,756	1,929	(238)
Other Subsidiaries
Revenues:
Equity in earnings of consolidated subsidiaries									0	0	0
Other income									46,506	48,802	52,875
Total revenues									46,506	48,802	52,875
Expenses:
Interest expense									302	176	227
(Gains) losses on extinguishment of debt									7	(7)	(3)
Other expenses									45,048	46,116	51,819
Total benefits, losses and expenses									45,357	46,285	52,043
Income (loss) from continuing operations before income tax expense (benefit)									1,149	2,517	832
Income tax expense (benefit)									1,548	2,607	1,507
Income (loss) from continuing operations									(399)	(90)	(675)
Income (loss) from discontinued operations									(2)	5	(53)
Net income (loss)									(401)	(85)	(728)
Less:
Net income from continuing operations attributable to noncontrolling interests									67	28	500
Net income (loss) attributable to AIG									(468)	(113)	(1,228)
Reclassification and Eliminations
Revenues:
Equity in earnings of consolidated subsidiaries									(2,027)	(1,829)	1,466
Other income									(79)	(173)	(1,029)
Total revenues									(2,106)	(2,002)	437
Expenses:
Interest expense									(15)	(7)	(6)
(Gains) losses on extinguishment of debt									0	0	0
Other expenses									(65)	(179)	(1,023)
Total benefits, losses and expenses									(80)	(186)	(1,029)
Income (loss) from continuing operations before income tax expense (benefit)									(2,026)	(1,816)	1,466
Income tax expense (benefit)									0	0	0
Income (loss) from continuing operations									(2,026)	(1,816)	1,466
Income (loss) from discontinued operations									0	0	0
Net income (loss)									(2,026)	(1,816)	1,466
Less:
Net income from continuing operations attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to AIG									$ (2,026)	$ (1,816)	$ 1,466

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, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	$ (560)	$ (1,259)	$ 931	$ 949	$ (6,672)	$ (1,713)	$ 1,118	$ 1,211	$ 61	$ (6,056)	$ (349)
Other comprehensive income (loss)									(6,293)	2,235	693
Comprehensive income (loss)									(6,232)	(3,821)	344
Comprehensive income attributable to noncontrolling interests									76	28	500
Comprehensive income (loss) attributable to AIG									(6,308)	(3,849)	(156)
AIG (As Guarantor)
Condensed Financial Statements, Captions [Line Items]
Net income (loss)									(6)	(6,084)	(849)
Other comprehensive income (loss)									(6,302)	2,235	693
Comprehensive income (loss)									(6,308)	(3,849)	(156)
Comprehensive income attributable to noncontrolling interests									0	0	0
Comprehensive income (loss) attributable to AIG									(6,308)	(3,849)	(156)
Validus Holdings, Ltd
Condensed Financial Statements, Captions [Line Items]
Net income (loss)									(262)
Other comprehensive income (loss)									0
Comprehensive income (loss)									(262)
Comprehensive income attributable to noncontrolling interests									0
Comprehensive income (loss) attributable to AIG									(262)
AIGLH
Condensed Financial Statements, Captions [Line Items]
Net income (loss)									2,756	1,929	(238)
Other comprehensive income (loss)									2,508	7,851	4,080
Comprehensive income (loss)									5,264	9,780	3,842
Comprehensive income attributable to noncontrolling interests									0	0	0
Comprehensive income (loss) attributable to AIG									5,264	9,780	3,842
Other Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net income (loss)									(401)	(85)	(728)
Other comprehensive income (loss)									12,298	17,857	52,153
Comprehensive income (loss)									11,897	17,772	51,425
Comprehensive income attributable to noncontrolling interests									76	28	500
Comprehensive income (loss) attributable to AIG									11,821	17,744	50,925
Reclassification and Eliminations
Condensed Financial Statements, Captions [Line Items]
Net income (loss)									(2,026)	(1,816)	1,466
Other comprehensive income (loss)									(14,797)	(25,708)	(56,233)
Comprehensive income (loss)									(16,823)	(27,524)	(54,767)
Comprehensive income attributable to noncontrolling interests									0	0	0
Comprehensive income (loss) attributable to AIG									$ (16,823)	$ (27,524)	$ (54,767)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 61	$ (7,818)	$ 3,502
Cash flows from investing activities:
Sales of investments	62,312	76,540	74,537
Sale of divested businesses, net	10	792	2,809
Purchase of investments	(58,552)	(63,246)	(69,985)
Loans to subsidiaries - net	0	0	0
Contributions from (to) subsidiaries - net	0	0	0
Acquisition of businesses, net of cash and restricted cash acquired	(5,717)	0	0
Net change in restricted cash	0	0	0
Net change in short-term investments	1,524	2,098	(3,089)
Other, net	200	(2,143)	(1,020)
Net cash provided by (used in) investing activities	(223)	14,041	3,252
Cash flows from financing activities:
Issuance of long-term debt	4,734	3,356	5,954
Repayments of long-term debt	(3,672)	(3,698)	(4,082)
Purchase of common stock	(1,739)	(6,275)	(11,460)
Intercompany loans - net	0	0	0
Cash dividends paid	(1,138)	(1,172)	(1,372)
Other, net	2,609	2,092	4,127
Net cash provided by (used in) financing activities	794	(5,697)	(6,833)
Effect of exchange rate changes on cash and restricted cash	(11)	(29)	55
Change in cash and restricted cash	621	497	(24)
Cash and restricted cash at beginning of year	2,737	2,107	2,238
Change in cash of businesses held for sale				$ 0	$ 133	$ (107)
Cash and restricted cash at end of year	3,358	2,737	2,107
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Cash				2,873	2,362	1,868
Short-term investments, restricted cash				142	58	46
Restricted cash included in Other assets				343	317	193
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	3,358	2,737	2,107	3,358	2,737	2,107	$ 2,238
Interest:
Third party	(1,312)	(1,282)	(1,331)
Intercompany	0	0	0
Taxes:
Income tax authorities	(154)	(544)	(493)
Intercompany	0	0	0
Non-cash financing and investing activities:
Fixed maturity securities received in exchange for equity securities	0	0	440
AIG (As Guarantor)
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	1,256	36	2,112
Cash flows from investing activities:
Sales of investments	5,587	5,821	5,769
Sale of divested businesses, net	0	40	2,160
Purchase of investments	(1,980)	(2,465)	(1,002)
Loans to subsidiaries - net	868	199	1,525
Contributions from (to) subsidiaries - net	1	2,446	1,637
Acquisition of businesses, net of cash and restricted cash acquired	(5,475)
Net change in restricted cash	1,533	1,994	(1,170)
Net change in short-term investments	1,533	1,994	(1,170)
Other, net	(73)	(183)	(141)
Net cash provided by (used in) investing activities	461	7,852	8,778
Cash flows from financing activities:
Issuance of long-term debt	2,470	1,505	3,831
Repayments of long-term debt	(1,493)	(1,724)	(1,996)
Purchase of common stock	(1,739)	(6,275)	(11,460)
Intercompany loans - net	90	(63)	3
Cash dividends paid	(1,138)	(1,172)	(1,372)
Other, net	212	(154)	(309)
Net cash provided by (used in) financing activities	(1,598)	(7,883)	(11,303)
Effect of exchange rate changes on cash and restricted cash	0	0	0
Change in cash and restricted cash	119	5	(413)
Cash and restricted cash at beginning of year	8	3	416
Change in cash of businesses held for sale					0	0
Cash and restricted cash at end of year	127	8	3
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Cash				2	3	2
Short-term investments, restricted cash				124	4	0
Restricted cash included in Other assets				1	1	1
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	8	8	3	127	8	3	416
Interest:
Third party	(914)	(948)	(975)
Intercompany	1	0	2
Taxes:
Income tax authorities	(32)	(329)	(15)
Intercompany	895	614	479
Non-cash financing and investing activities:
Return of capital	2,706	26	0
Dividends received in the form of securities	745	735	5,234
Capital contributions	2,369	259	3,245
Fixed maturity securities received in exchange for equity securities	0	0	440
Non-cash consideration received from sale	0	0	1,101
Validus Holdings, Ltd
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	656
Cash flows from investing activities:
Sales of investments	13
Sale of divested businesses, net	0
Purchase of investments	0
Loans to subsidiaries - net	0
Contributions from (to) subsidiaries - net	0
Acquisition of businesses, net of cash and restricted cash acquired	112
Net change in short-term investments	0
Other, net	0
Net cash provided by (used in) investing activities	125
Cash flows from financing activities:
Issuance of long-term debt	0
Repayments of long-term debt	(350)
Purchase of common stock	0
Intercompany loans - net	0
Cash dividends paid	(6)
Other, net	(416)
Net cash provided by (used in) financing activities	(772)
Effect of exchange rate changes on cash and restricted cash	0
Change in cash and restricted cash	9
Cash and restricted cash at beginning of year	0
Cash and restricted cash at end of year	9	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Cash				9
Short-term investments, restricted cash				0
Restricted cash included in Other assets				0
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	0	0		9	0
Interest:
Third party	(17)	0	0
Intercompany	0
Taxes:
Income tax authorities	0
Intercompany	0
AIGLH
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	2,445	1,413	1,707
Cash flows from investing activities:
Sales of investments	0	0	0
Sale of divested businesses, net	0	0	0
Purchase of investments	0	0	0
Loans to subsidiaries - net	0	0	0
Contributions from (to) subsidiaries - net	0	0	0
Acquisition of businesses, net of cash and restricted cash acquired	0
Net change in short-term investments	0	0	0
Other, net	0	(5)	0
Net cash provided by (used in) investing activities	0	(5)	0
Cash flows from financing activities:
Issuance of long-term debt	0	0	0
Repayments of long-term debt	0	0	(63)
Purchase of common stock	0	0	0
Intercompany loans - net	0	0	(3)
Cash dividends paid	(2,456)	(1,422)	(1,723)
Other, net	0	0	0
Net cash provided by (used in) financing activities	(2,456)	(1,422)	(1,789)
Effect of exchange rate changes on cash and restricted cash	0	0	0
Change in cash and restricted cash	(11)	(14)	(82)
Cash and restricted cash at beginning of year	20	34	116
Change in cash of businesses held for sale					0	0
Cash and restricted cash at end of year	9	20	34
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Cash				9	20	34
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	20	20	34	9	20	34	116
Interest:
Third party	(48)	(48)	(52)
Intercompany	(1)	(1)	0
Taxes:
Income tax authorities	0	0	0
Intercompany	0	0	0
Other Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	1,651	(6,659)	3,634
Cash flows from investing activities:
Sales of investments	59,918	74,477	80,453
Sale of divested businesses, net	10	752	649
Purchase of investments	(59,778)	(64,539)	(80,668)
Loans to subsidiaries - net	(90)	63	(3)
Contributions from (to) subsidiaries - net	0	0	0
Acquisition of businesses, net of cash and restricted cash acquired	(354)
Net change in short-term investments	(9)	104	(1,919)
Other, net	273	(1,955)	(879)
Net cash provided by (used in) investing activities	(30)	8,902	(2,367)
Cash flows from financing activities:
Issuance of long-term debt	2,264	1,851	2,123
Repayments of long-term debt	(1,829)	(1,974)	(2,023)
Purchase of common stock	0	0	0
Intercompany loans - net	(868)	(199)	(1,522)
Cash dividends paid	(3,485)	(1,186)	(2,228)
Other, net	2,812	(200)	2,799
Net cash provided by (used in) financing activities	(1,106)	(1,708)	(851)
Effect of exchange rate changes on cash and restricted cash	(11)	(29)	55
Change in cash and restricted cash	504	506	471
Cash and restricted cash at beginning of year	2,709	2,070	1,706
Change in cash of businesses held for sale					133	(107)
Cash and restricted cash at end of year	3,213	2,709	2,070
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Cash				2,853	2,339	1,832
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	2,709	2,709	2,070	3,213	2,709	2,070	1,706
Interest:
Third party	(333)	(286)	(304)
Intercompany	0	1	(2)
Taxes:
Income tax authorities	(122)	(215)	(478)
Intercompany	(895)	(614)	(479)
Other assets
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Short-term investments, restricted cash				343	317
Other assets \| AIG (As Guarantor)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Short-term investments, restricted cash				1	1	1
Other assets \| AIGLH
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Short-term investments, restricted cash				0	0	0
Other assets \| Other Subsidiaries
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Short-term investments, restricted cash				342	316	192
Short-term investments
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Short-term investments, restricted cash				142	58
Short-term investments \| AIG (As Guarantor)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Short-term investments, restricted cash				124	4	0
Short-term investments \| AIGLH
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Short-term investments, restricted cash				0	0	0
Short-term investments \| Other Subsidiaries
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Short-term investments, restricted cash				18	54	46
United Guaranty Corporation [Member]
Non-cash financing and investing activities:
Non-cash consideration received from sale	0	0	1,101
Reclassification and Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(5,947)	(2,608)	(3,951)
Cash flows from investing activities:
Sales of investments	(3,206)	(3,758)	(11,685)
Sale of divested businesses, net	0	0	0
Purchase of investments	3,206	3,758	11,685
Loans to subsidiaries - net	(778)	(262)	(1,522)
Contributions from (to) subsidiaries - net	(1)	(2,446)	(1,637)
Net change in short-term investments	0	0	0
Other, net	0	0	0
Net cash provided by (used in) investing activities	(779)	(2,708)	(3,159)
Cash flows from financing activities:
Issuance of long-term debt	0
Repayments of long-term debt	0	0	0
Purchase of common stock	0	0	0
Intercompany loans - net	778	262	1,522
Cash dividends paid	5,947	2,608	3,951
Other, net	1	2,446	1,637
Net cash provided by (used in) financing activities	6,726	5,316	7,110
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Cash				$ 0	$ 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 Millions														12 Months Ended
	Feb. 13, 2019	Dec. 26, 2018	Sep. 28, 2018	Jun. 28, 2018	Mar. 29, 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. 31, 2018	May 03, 2017
Subsequent Event [Line Items]
Authorized amount of common Stock share repurchase															$ 2,500
Aggregate remaining authorization amount of common Stock share repurchase														$ 512
Date Dividends Declared		Oct. 31, 2018	Aug. 02, 2018	May 02, 2018	Feb. 08, 2018	Nov. 02, 2017	Aug. 02, 2017	May 03, 2017	Feb. 14, 2017	Nov. 02, 2016	Aug. 02, 2016	May 02, 2016	Feb. 11, 2016
Date of Shareholders of Record		Dec. 12, 2018	Sep. 17, 2018	Jun. 14, 2018	Mar. 15, 2018	Dec. 08, 2017	Sep. 15, 2017	Jun. 14, 2017	Mar. 15, 2017	Dec. 08, 2016	Sep. 15, 2016	Jun. 13, 2016	Mar. 14, 2016
Subsequent event
Subsequent Event [Line Items]
Dividends declared per common share	$ 0.32
Authorized amount of common Stock share repurchase	$ 1,500
Aggregate remaining authorization amount of common Stock share repurchase	$ 2,000
Date Dividends Declared														Feb. 13, 2019
Date Dividends To Be Paid														Mar. 29, 2019
Date of Shareholders of Record														Mar. 15, 2019

Schedule I Summary of Investments - Other than Investments in Related Parties (Details) $ in Millions	Dec. 31, 2018 USD ($)
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	$ 312,111
Fair Value	315,617
Amount at which shown in the Balance Sheet	315,125
Fixed maturity securities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	237,195
Fair Value	240,806
Amount at which shown in the Balance Sheet	240,806
U.S. government and government sponsored entities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	5,835
Fair Value	5,925
Amount at which shown in the Balance Sheet	5,925
Obligations of states, municipalities and political subdivisions
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	15,421
Fair Value	16,001
Amount at which shown in the Balance Sheet	16,001
Non-U.S. government
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	14,421
Fair Value	14,570
Amount at which shown in the Balance Sheet	14,570
Public utilities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	17,431
Fair Value	17,628
Amount at which shown in the Balance Sheet	17,628
All other corporate and debt securities
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	114,676
Fair Value	114,743
Amount at which shown in the Balance Sheet	114,743
Mortgage-backed, asset-backed and collateralized
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	69,411
Fair Value	71,939
Amount at which shown in the Balance Sheet	71,939
Equity securities and mutual funds
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	1,253
Fair Value	1,253
Amount at which shown in the Balance Sheet	1,253
Common Stock
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	1,105
Fair Value	1,105
Amount at which shown in the Balance Sheet	1,105
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	784
Fair Value	784
Amount at which shown in the Balance Sheet	784
Industrial, miscellaneous and all other
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	320
Fair Value	320
Amount at which shown in the Balance Sheet	320
Preferred stock
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	13
Fair Value	13
Amount at which shown in the Balance Sheet	13
Mutual funds
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	135
Fair Value	135
Amount at which shown in the Balance Sheet	135
Mortgage and other loans receivable, net of allowance
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	43,135
Fair Value	43,627
Amount at which shown in the Balance Sheet	43,135
Other invested assets
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	19,938
Fair Value	19,341
Amount at which shown in the Balance Sheet	19,341
Short-term investments, at cost
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	9,674
Fair Value	9,674
Amount at which shown in the Balance Sheet	9,674
Derivative assets
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Cost	916
Fair Value	916
Amount at which shown in the Balance Sheet	$ 916

Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Balance Sheets) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets:
Short-term investments	$ 9,674	$ 10,386
Other Investments	19,341	20,822
Total investments	314,209	322,292
Cash	2,873	2,362	$ 1,868
Loans to subsidiaries	0
Deferred income taxes	15,221	14,033
Investment in consolidated subsidiaries	0
Other assets	13,568	10,194
Total assets	491,984	498,301
Restricted cash	142	58	46
Liabilities:
Outstanding debt	34,540	31,640
Loans from subsidiaries	0
Total liabilities	434,675	432,593
AIG Shareholders' equity:
Common stock	4,766	4,766
Treasury stock	(49,144)	(47,595)
Additional paid-in capital	81,268	81,078
Retained earnings	20,884	21,457
Accumulated other comprehensive income (loss)	(1,413)	5,465	3,230	$ 2,537
Total AIG shareholders' equity	56,361	65,171
Total liabilities and equity	491,984	498,301
Short-term investments
Assets:
Restricted cash	142	58
Other assets
Assets:
Restricted cash	343	317
Parent Company [Member]
Assets:
Short-term investments	1,141	2,541
Other Investments	3,377	6,004
Total investments	4,518	8,545
Cash	2	3	2
Loans to subsidiaries	34,963	35,004
Due from affiliates - net	1,206	1,585
Intercompany tax receivable	3,053	3,058
Deferred income taxes	10,747	11,030
Investment in consolidated subsidiaries	33,300	40,135
Other assets	383	343
Total assets	88,172	99,703
Restricted cash	124	4	0
Liabilities:
Due to affiliate	2,329	4,340
Intercompany tax payable	2,954	4,577
Deferred tax liabilities	0	0
Outstanding debt	22,422	21,557
Loans from subsidiaries	615	517
Other liabilities (includes intercompany derivative liabilities of $63 in 2017 and $419 in 2016)	3,491	3,541
Total liabilities	31,811	34,532
AIG Shareholders' equity:
Common stock	4,766	4,766
Treasury stock	(49,144)	(47,595)
Additional paid-in capital	81,268	81,078
Retained earnings	20,884	21,457
Accumulated other comprehensive income (loss)	(1,413)	5,465
Total AIG shareholders' equity	56,361	65,171
Total liabilities and equity	88,172	99,703
Intercompany derivative liabilities	105	63
Parent Company [Member] \| Short-term investments
Assets:
Restricted cash	124	4	0
Parent Company [Member] \| Other assets
Assets:
Restricted cash	1	1	$ 1
Series AIGFP \| Parent Company [Member]
Liabilities:
Outstanding debt	21	21
MIP \| Parent Company [Member]
Liabilities:
Outstanding debt	0	356
Notes and bonds payable \| Parent Company [Member]
Liabilities:
Outstanding debt	20,853	20,339
Junior subordinated debt \| Parent Company [Member]
Liabilities:
Outstanding debt	$ 1,548	$ 841

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, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Net realized capital gains (losses)									$ (130)	$ (1,380)	$ (1,944)
Other income									1,638	2,412	3,121
Expenses
Interest expense									1,309	1,168	1,260
(Gains) losses on extinguishment of debt	$ 3	$ (1)	$ (5)	$ (4)	$ 1	$ (1)	$ 4	$ 1	7	(5)	74
Net gain on sale of divested businesses	3	2	25	8	241	(13)	(60)	(100)	(38)	(68)	(545)
Income from continuing operations before income tax expense (benefit)	(695)	(1,527)	1,252	1,227	875	(2,803)	1,667	1,727	257	1,466	(74)
Income tax expense (benefit)									154	7,526	185
Net income (loss) attributable to AIG common shareholders from continuing operations									36	(6,088)	(759)
Income (loss) from discontinued operations	(2)	(39)	0	(1)	(3)	(1)	8	0	(42)	4	(90)
Net loss attributable to AIG	$ (622)	$ (1,259)	$ 937	$ 938	$ (6,660)	$ (1,739)	$ 1,130	$ 1,185	(6)	(6,084)	(849)
Parent Company [Member]
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries									(5,160)	(2,375)	(8,633)
Dividend income from consolidated subsidiaries									4,580	2,226	7,364
Interest income									961	656	411
Net realized capital gains (losses)									(49)	46	2
Other income									26	189	103
Expenses
Interest expense									954	949	988
(Gains) losses on extinguishment of debt									0	2	77
Net gain on sale of divested businesses									3	30	(690)
Other expenses									800	922	985
Income from continuing operations before income tax expense (benefit)									(1,399)	(1,161)	(2,113)
Income tax expense (benefit)									(1,433)	4,922	(1,301)
Net income (loss) attributable to AIG common shareholders from continuing operations									34	(6,083)	(812)
Income (loss) from discontinued operations									(40)	(1)	(37)
Net loss attributable to AIG									(6)	(6,084)	(849)
Related party interest income									$ 840	$ 512	294
United Guaranty Asia
Expenses
Net gain on sale of divested businesses											$ (697)

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, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Financial Statements, Captions [Line Items]
Net income	$ (622)	$ (1,259)	$ 937	$ 938	$ (6,660)	$ (1,739)	$ 1,130	$ 1,185	$ (6)	$ (6,084)	$ (849)
Other comprehensive income (loss)									(6,293)	2,235	693
Comprehensive loss attributable to AIG									(6,308)	(3,849)	(156)
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net income									(6)	(6,084)	(849)
Other comprehensive income (loss)									(6,302)	2,235	693
Comprehensive loss attributable to AIG									$ (6,308)	$ (3,849)	$ (156)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Cash Flows) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 61	$ (7,818)	$ 3,502
Cash flows from investing activities:
Sale of divested businesses, net	10	792	2,809
Purchase of investments	(58,552)	(63,246)	(69,985)
Net change in short-term investments	1,524	2,098	(3,089)
Contributions from (to) subsidiaries - net	0	0	0
Acquisition of business	(5,717)	0	0
Mortgage and other loans receivable	(10,286)	(9,369)	(10,651)
Payments received on mortgages and other loan receivables	4,272	5,742	6,074
Loans to subsidiaries - net	0	0	0
Other, net	200	(2,143)	(1,020)
Net cash provided by (used in) investing activities	(223)	14,041	3,252
Cash flows from financing activities:
Issuance of long-term debt	4,734	3,356	5,954
Repayments of long-term debt	(3,672)	(3,698)	(4,082)
Cash dividends paid	(1,138)	(1,172)	(1,372)
Loans from subsidiaries - net	0	0	0
Purchase of common stock	(1,739)	(6,275)	(11,460)
Other, net	3,570	31	(68)
Net cash provided by (used in) financing activities	794	(5,697)	(6,833)
Net increase (decrease) in cash and restricted cash	621	497	(24)
Cash and restricted cash at beginning of year	2,737	2,107	2,238
Cash and restricted cash at end of year	3,358	2,737	2,107
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:
Cash				$ 2,873	$ 2,362	$ 1,868
Short-term investments, restricted cash				142	58	46
Restricted cash included in Other assets				343	317	193
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	3,358	2,737	2,107	3,358	2,737	2,107
Interest:
Intercompany	0	0	0
Taxes:
Income tax authorities	(154)	(544)	(493)
Intercompany	0	0	0
Non-cash investing/financing activities:
Fixed maturity securities received in exchange for equity securities	0	0	440
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	1,256	36	2,112
Cash flows from investing activities:
Sales and maturities of investments	5,587	5,714	5,598
Sale of divested businesses, net	0	40	2,160
Purchase of investments	(1,980)	(2,465)	(1,002)
Net change in short-term investments	1,533	1,994	(1,170)
Contributions from (to) subsidiaries - net	1	2,446	1,637
Acquisition of business	(5,475)
Mortgage and other loans receivable	0	0	(85)
Payments received on mortgages and other loan receivables	0	107	171
Loans to subsidiaries - net	868	199	1,525
Other, net	(73)	(183)	(56)
Net cash provided by (used in) investing activities	461	7,852	8,778
Cash flows from financing activities:
Issuance of long-term debt	2,470	1,505	3,831
Repayments of long-term debt	(1,493)	(1,724)	(1,996)
Cash dividends paid	(1,138)	(1,172)	(1,372)
Loans from subsidiaries - net	90	(63)	3
Purchase of common stock	(1,739)	(6,275)	(11,460)
Other, net	212	(154)	(309)
Net cash provided by (used in) financing activities	(1,598)	(7,883)	(11,303)
Net increase (decrease) in cash and restricted cash	119	5	(413)
Cash and restricted cash at beginning of year	8	3	416
Cash and restricted cash at end of year	127	8	3
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:
Cash				2	3	2
Short-term investments, restricted cash				124	4	0
Restricted cash included in Other assets				1	1	1
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	8	8	3	$ 127	$ 8	$ 3
Interest:
Third party	(914)	(948)	(975)
Intercompany	1	0	2
Taxes:
Income tax authorities	(32)	(329)	(15)
Intercompany	895	614	479
Non-cash investing/financing activities:
Other capital contributions - net	2,369	259	3,245
Return of capital	2,706	26	0
Dividends received in the form of securities	745	735	5,234
Paydown of FRBNY Credit Facility by subsidiary	2,369	259	3,245
Fixed maturity securities received in exchange for equity securities	0	0	440
Non-cash consideration received from sale	$ 0	$ 0	$ 1,101

Schedule III Supplementary Insurance Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	$ 12,694	$ 10,994
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits	128,574	123,825
Unearned Premiums	19,248	19,030
Policy and Contract Claims	864	860
Premiums and Policy Fees	33,405	34,309	$ 37,125
Net Investment Income	12,476	14,179	14,065
Losses and Loss Expenses Incurred, Benefits	31,166	33,564	36,142
Amortization of Deferred Policy Acquisition Costs	5,386	4,288	4,521
Other Operating Expenses	7,634	7,396	8,667
Net Premiums Written	26,606	25,756	29,233
General Insurance
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	2,890	2,587
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits	113,696	73,530
Unearned Premiums	19,235	18,795
Policy and Contract Claims	14	0
Premiums and Policy Fees	27,505	26,026	29,586
Net Investment Income	2,668	3,668	3,554
Losses and Loss Expenses Incurred, Benefits	20,824	21,642	25,103
Amortization of Deferred Policy Acquisition Costs	4,596	3,765	4,121
Other Operating Expenses	5,222	5,100	5,967
Net Premiums Written	26,407	25,438	28,393
Life and Retirement
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	9,804	8,407
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits	13,431	44,615
Unearned Premiums	13	0
Policy and Contract Claims	843	851
Premiums and Policy Fees	5,261	6,844	4,878
Net Investment Income	7,922	7,816	7,622
Losses and Loss Expenses Incurred, Benefits	7,692	8,607	6,945
Amortization of Deferred Policy Acquisition Costs	680	743	613
Other Operating Expenses	2,412	2,296	2,700
Net Premiums Written	0	0	0
Other Operations
Supplementary Insurance Information, by Segment [Line Items]
Deferred Policy Acquisition Costs	0	0
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits	1,447	5,680
Unearned Premiums	0	235
Policy and Contract Claims	7	9
Premiums and Policy Fees	39	712	1,845
Net Investment Income	(439)	(81)	(24)
Losses and Loss Expenses Incurred, Benefits	357	1,076	743
Amortization of Deferred Policy Acquisition Costs	5	(296)	(321)
Other Operating Expenses	0	0	0
Net Premiums Written	199	314	819
Legacy Portfolio
Supplementary Insurance Information, by Segment [Line Items]
Premiums and Policy Fees	600	727	816
Net Investment Income	2,325	2,776	2,913
Losses and Loss Expenses Incurred, Benefits	2,293	2,239	3,351
Amortization of Deferred Policy Acquisition Costs	105	76	108
Other Operating Expenses	0	0	0
Net Premiums Written	$ 0	$ 4	$ 21

Schedule IV Reinsurance (Details) - USD ($) $ in Millions	12 Months Ended
Schedule IV Reinsurance (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reportable Segments
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Gross Amount	$ 33,823	$ 35,258	$ 38,579
Ceded to Other Companies	8,605	8,342	8,350
Assumed from Other Companies	4,431	3,369	2,947
Net Amount	$ 29,649	$ 30,285	$ 33,176
Percent of Amount Assumed to Net	14.90%	11.10%	8.90%
Reportable Segments \| General Insurance Companies
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Gross Amount	$ 30,335	$ 30,205	$ 33,970
Ceded to Other Companies	7,755	7,533	7,561
Assumed from Other Companies	4,026	3,084	2,824
Net Amount	$ 26,606	$ 25,756	$ 29,233
Percent of Amount Assumed to Net	15.10%	12.00%	9.70%
Reportable Segments \| Life and Retirement Companies
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Gross Amount	$ 3,488	$ 5,053	$ 4,609
Ceded to Other Companies	850	809	789
Assumed from Other Companies	405	285	123
Net Amount	$ 3,043	$ 4,529	$ 3,943
Percent of Amount Assumed to Net	13.30%	6.30%	3.10%
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	$ 1,094,774	$ 1,061,095	$ 1,025,653
Ceded to Other Companies	228,846	202,402	174,363
Assumed from Other Companies	300	321	339
Net Amount	$ 866,228	$ 859,014	$ 851,629
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, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for mortgage and other loans receivable
Valuation and Qualifying Accounts
Balance at the beginning of the year	$ 322	$ 297	$ 308
Charged to costs and expenses	93	49	(7)
Charge offs	(19)	(25)	(15)
Acquisitions	0	0	0
Reclassified to assets of businesses held-for-sale	0	0	0
Divested Business	0	0	0
Other changes	1	1	11
Balance at the end of the year	397	322	297
Allowance for premiums and insurances balances receivable
Valuation and Qualifying Accounts
Balance at the beginning of the year	236	262	333
Charged to costs and expenses	2	36	26
Charge offs	(20)	(58)	(88)
Acquisitions	0	0	0
Reclassified to assets of businesses held-for-sale	0	0	(2)
Divested Business	0	(8)	(7)
Other changes	(2)	4	0
Balance at the end of the year	216	236	262
Allowance for reinsurance assets
Valuation and Qualifying Accounts
Balance at the beginning of the year	187	207	272
Charged to costs and expenses	(8)	33	(23)
Charge offs	(45)	(50)	(34)
Acquisitions	8	0	0
Reclassified to assets of businesses held-for-sale	0	0	(8)
Divested Business	0	0	0
Other changes	(2)	(3)	0
Balance at the end of the year	140	187	207
Federal and foreign valuation allowance for deferred tax assets
Valuation and Qualifying Accounts
Balance at the beginning of the year	1,374	2,831	3,012
Charged to costs and expenses	21	43	83
Charge offs	0	0	0
Acquisitions	82	0	0
Reclassified to assets of businesses held-for-sale	0	0	0
Divested Business	0	0	0
Other changes	302	(1,500)	(264)
Balance at the end of the year	$ 1,779	$ 1,374	$ 2,831

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2018
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	26. Subsequent Events DIVIDENDS DECLARED AND INCREASE IN SHARE REPURCHASE AUTHORIZATION On February 13, 2019, our Board of Directors declared a cash dividend on AIG Common Stock of $0.32 per share, payable on March 29, 2019 to shareholders of record on March 15, 2019. On February 13, 2019, our Board of Directors authorized an additional increase to its previous repurchase authorization of AIG Common Stock of $1.5 billion, resulting in an aggregate remaining authorization on such date of approximately $2.0 billion.

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, 2018	Dec. 31, 2017
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	$ 1,345	$ 2,133
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	(334)	807
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	(334)	807
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	(128)	(184)
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	5	(17)
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	(133)	(167)
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	0	16
Long-term debt \| 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
Long-term debt \| 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	0	0
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	0	16
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	818	1,080
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	987	1,127
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	(165)	(49)
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	(4)	2
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	482	1,039
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	92	308
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	(3)	0
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	393	731
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	(2)	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	(2)
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
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	47	14
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	57	9
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	0	6
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	$ (10)	$ (1)

FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets) $ in Millions	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Obligations of states, municipalities and political subdivisions \| Minimum \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0391	0.0355
Obligations of states, municipalities and political subdivisions \| Maximum \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.05	0.0432
Obligations of states, municipalities and political subdivisions \| Weighted-average \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0446	0.0394
Obligations of states, municipalities and political subdivisions \| Discounted cash flow \| Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,473	$ 1,620
Corporate debt \| Minimum \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0435	0.0326
Corporate debt \| Maximum \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0599	0.1222
Corporate debt \| Weighted-average \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0517	0.0774
Corporate debt \| Discounted cash flow \| Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 445	$ 1,086
Residential mortgage-backed securities \| Minimum \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0331	0.0273
Residential mortgage-backed securities \| Minimum \| Measurement Input Constant Prepayment Rate [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0458	0.0397
Residential mortgage-backed securities \| Minimum \| Measurement Input Loss Severity [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.3966	0.4315
Residential mortgage-backed securities \| Minimum \| Measurement Input Constant Default Rate [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0246	0.0331
Residential mortgage-backed securities \| Maximum \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.055	0.0519
Residential mortgage-backed securities \| Maximum \| Measurement Input Constant Prepayment Rate [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.14	0.1342
Residential mortgage-backed securities \| Maximum \| Measurement Input Loss Severity [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.744	0.7715
Residential mortgage-backed securities \| Maximum \| Measurement Input Constant Default Rate [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0739	0.083
Residential mortgage-backed securities \| Weighted-average \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.044	0.0396
Residential mortgage-backed securities \| Weighted-average \| Measurement Input Constant Prepayment Rate [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0929	0.0869
Residential mortgage-backed securities \| Weighted-average \| Measurement Input Loss Severity [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.5703	0.6015
Residential mortgage-backed securities \| Weighted-average \| Measurement Input Constant Default Rate [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0492	0.058
Residential mortgage-backed securities \| Discounted cash flow \| Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 13,608	$ 16,156
Certain CDO/ABS \| Minimum \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0365	0.0338
Certain CDO/ABS \| Maximum \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.051	0.0478
Certain CDO/ABS \| Weighted-average \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0437	0.0408
Certain CDO/ABS \| Discounted cash flow \| Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 5,461	$ 5,254
Commercial mortgage backed securities \| Minimum \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0329	0.0222
Commercial mortgage backed securities \| Maximum \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0607	0.0777
Commercial mortgage backed securities \| Weighted-average \| Measurement Input Yield [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Debt instrument, measurement input	0.0468	0.0499
Commercial mortgage backed securities \| Discounted cash flow \| Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 447	$ 487

INVESTMENTS (Details - Equity method investments)	12 Months Ended
INVESTMENTS (Details - Equity method investments)	Dec. 31, 2018
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

DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Billions	Dec. 31, 2018	Dec. 31, 2017
Collateral
Collateral posted to third parties for derivative transactions	$ 1.7	$ 2.9
Collateral obtained from third parties for derivative transactions	$ 2.1	$ 1.3

INSURANCE LIABILITIES (Details - Future Policy Benefits) - Life Insurance	Dec. 31, 2018
Maximum
Assumptions for liability for future life policy benefits
Liability for Future Policy Benefits, Interest Rate	14.60%
Minimum
Assumptions for liability for future life policy benefits
Liability for Future Policy Benefits, Interest Rate	0.10%

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) $ in Millions	Dec. 31, 2018 USD ($)
Guarantor Obligations [Line Items]
Amount outstanding under standby letters of credit at end of period	$ 85

EMPLOYEE BENEFITS (Details - Assets Measured at Fair Value) - Pensions - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Investment Types
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 1,138	$ 777
U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3,840	4,350	$ 3,843
U.S. \| Levels 1, 2 and 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2,702	3,573
U.S. \| Levels 1, 2 and 3 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	501	397
U.S. \| Levels 1, 2 and 3 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	240	1,300
U.S. \| Levels 1, 2 and 3 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	137	265
U.S. \| Levels 1, 2 and 3 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,476	1,018
U.S. \| Levels 1, 2 and 3 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	157	204
U.S. \| Levels 1, 2 and 3 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	96	212
U.S. \| Levels 1, 2 and 3 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	36	142
U.S. \| Levels 1, 2 and 3 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Levels 1, 2 and 3 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	27
U.S. \| Levels 1, 2 and 3 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	14	15
U.S. \| Levels 1, 2 and 3 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	18	20
U.S. \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	905	1,962
U.S. \| Level 1 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	501	397
U.S. \| Level 1 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	240	1,300
U.S. \| Level 1 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	137	265
U.S. \| Level 1 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 1 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 1 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 1 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 1 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 1 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	27
U.S. \| Level 1 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 1 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,770	1,584
U.S. \| Level 2 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 2 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 2 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 2 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,463	1,006
U.S. \| Level 2 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	157	204
U.S. \| Level 2 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	96	212
U.S. \| Level 2 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	36	142
U.S. \| Level 2 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 2 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0
U.S. \| Level 2 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 2 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	18	20
U.S. \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	27	27	26
U.S. \| Level 3 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 3 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 3 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 3 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	13	12
U.S. \| Level 3 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 3 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 3 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 3 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. \| Level 3 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0
U.S. \| Level 3 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	14	15	24
U.S. \| Level 3 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	861	875	803
Non U.S. Plans \| Levels 1, 2 and 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	861	874
Non U.S. Plans \| Levels 1, 2 and 3 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	97	51
Non U.S. Plans \| Levels 1, 2 and 3 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Levels 1, 2 and 3 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	302	426
Non U.S. Plans \| Levels 1, 2 and 3 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Levels 1, 2 and 3 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	130	97
Non U.S. Plans \| Levels 1, 2 and 3 \| Fixed maturity securities - U.S. and international high yield
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	185	171
Non U.S. Plans \| Levels 1, 2 and 3 \| Mortgage-backed, asset-backed and collateralized
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Levels 1, 2 and 3 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2	16
Non U.S. Plans \| Levels 1, 2 and 3 \| Other investment types - Direct private equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Levels 1, 2 and 3 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	145	113
Non U.S. Plans \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	315	413
Non U.S. Plans \| Level 1 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	97	51
Non U.S. Plans \| Level 1 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 1 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	218	362
Non U.S. Plans \| Level 1 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
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
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
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
Non U.S. Plans \| Level 1 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 1 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0
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
Non U.S. Plans \| Level 1 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	401	348
Non U.S. Plans \| Level 2 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 2 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 2 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	84	64
Non U.S. Plans \| Level 2 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 2 \| Fixed maturity securities - International investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	130	97
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	185	171
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
Non U.S. Plans \| Level 2 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2	16
Non U.S. Plans \| Level 2 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0
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
Non U.S. Plans \| Level 2 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	145	113	108
Non U.S. Plans \| Level 3 \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 3 \| Equity securities - U.S.
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 3 \| Equity securities - International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 3 \| U.S. investment grade
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
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
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
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
Non U.S. Plans \| Level 3 \| Other fixed maturity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non U.S. Plans \| Level 3 \| Other investment types - Futures
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0
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
Non U.S. Plans \| Level 3 \| Other investment types - Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 145	$ 113	$ 108

OWNERSHIP (Details)	Dec. 31, 2018 shares
The Vanguard Group
Beneficial Ownership [Line Items]
Ownership interest (as a percent)	7.80%
Common stock deemed to be beneficially owned (in shares)	67,664,554
Blackrock, Inc
Beneficial Ownership [Line Items]
Ownership interest (as a percent)	7.50%
Common stock deemed to be beneficially owned (in shares)	64,768,700
Capital Research Global Investors
Beneficial Ownership [Line Items]
Ownership interest (as a percent)	5.50%
Common stock deemed to be beneficially owned (in shares)	47,237,956