Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 25, 2019
Entity Listings [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	American International Group, Inc.
Entity Central Index Key	0000005272
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock Shares Outstanding		869,951,606
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity File Number	1-8787
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	13-2592361
Entity Address Address Line 1	175 Water Street
Entity Address City Or Town	New York
Entity Address State Or Province	NY
Entity Address Postal Zip Code	10038
City Area Code	212
Local Phone Number	770-7000
Document Quarterly Report	true
Document Transition Report	false
Common Stock
Entity Listings [Line Items]
Security 12b Title	Common Stock, Par Value $2.50 Per Share
Trading Symbol	AIG
Security Exchange Name	NYSE
Warrants
Entity Listings [Line Items]
Security 12b Title	Warrants (expiring January 19, 2021)
Trading Symbol	AIG WS
Security Exchange Name	NYSE
5.75% Series A-2 Junior Sebordinated Debentures
Entity Listings [Line Items]
Security 12b Title	5.75% Series A-2 Junior Subordinated Debentures
Trading Symbol	AIG 67BP
Security Exchange Name	NYSE
4.875% Series A-3 Junior Subordinated Debentures
Entity Listings [Line Items]
Security 12b Title	4.875% Series A-3 Junior Subordinated Debentures
Trading Symbol	AIG 67EU
Security Exchange Name	NYSE
Stock Purchase Rights
Entity Listings [Line Items]
Security 12b Title	Stock Purchase Rights
No Trading Symbol Flag	true
Security Exchange Name	NYSE
Depository Shares Each Representing 1/1,000th Interest in a Share of Series A 5.85% Non-Cumulative Perpetual Preferred Stock
Entity Listings [Line Items]
Security 12b Title	Depositary Shares
Trading Symbol	AIG PRA
Security Exchange Name	NYSE

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Fixed maturity securities:
Bonds available for sale, at fair value (amortized cost: 2019 - $233,345; 2018 - $225,780)	$ 253,221	$ 229,391
Other bond securities, at fair value (See Note 6)	8,327	11,415
Equity securities, at fair value (See Note 6)	771	1,253
Mortgage and other loans receivable, net of allowance	45,075	43,135
Other invested assets (portion measured at fair value: 2019 - $6,060; 2018 - $5,894)	19,486	19,341
Short-term investments, including restricted cash of $64 in 2019 and $142 in 2018 (portion measured at fair value: 2019 - $5,577; 2018 - $3,015)	14,113	9,674
Total investments	340,993	314,209
Cash	3,361	2,873
Accrued investment income	2,391	2,389
Premiums and other receivables, net of allowance	11,786	11,011
Reinsurance assets, net of allowance	39,483	38,172
Deferred income taxes	13,054	15,221
Deferred policy acquisition costs	11,000	12,694
Other assets, including restricted cash of $345 in 2019 and $343 in 2018 (portion measured at fair value: 2019 - $1,185; 2018 - $973)	13,929	13,568
Separate account assets, at fair value	89,125	81,847
Total assets	525,122	491,984
Liabilities:
Liability for unpaid losses and loss adjustment expenses	79,883	83,639
Unearned premiums	19,959	19,248
Future policy benefits for life and accident and health insurance contracts	50,747	44,935
Policyholder contract deposits (portion measured at fair value: 2019 - $7,166; 2018 - $4,116)	151,964	142,262
Other policyholder funds	3,440	3,568
Other liabilities (portion measured at fair value: 2019 - $1,140; 2018 - $1,265)	27,297	24,636
Long-term debt (portion measured at fair value: 2019 - $2,287; 2018 - $2,213)	35,262	34,540
Separate account liabilities	89,125	81,847
Total liabilities	457,677	434,675
Contingencies, commitments and guarantees (see Note 11)
AIG shareholders' equity:
Series A Non-cumulative preferred stock and additional paid in capital, $5.00 par value; 100,000,000 shares authorized; shares issued: 2019 - 20,000 and 2018 - 0; liquidation preference $500	485	0
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2019 - 1,906,671,492 and 2018 - 1,906,671,492	4,766	4,766
Treasury stock, at cost; 2019 - 1,036,722,246 shares; 2018 - 1,040,062,063 shares of common stock	(48,989)	(49,144)
Additional paid-in capital	81,287	81,268
Retained earnings	22,439	20,884
Accumulated other comprehensive income (loss)	5,615	(1,413)
Total AIG shareholders' equity	65,603	56,361
Non-redeemable noncontrolling interests	1,842	948
Total equity	67,445	57,309
Total liabilities and equity	$ 525,122	$ 491,984

Condensed Consolidated Balance Sheets (Parenthetical - assets and liabilities) - USD ($)
$ in Millions

Sep. 30, 2019

Dec. 31, 2018

Assets:

Bonds available for sale, amortized cost

$ 233,345

$ 225,780

Other invested assets, portion measured at fair value

6,060

5,894

Short-term investments, portion measured at fair value

5,577

3,015

Other assets, portion measured at fair value

1,185

973

Liabilities:

Policyholder contract deposits, portion measured at fair value

7,166

4,116

Other liabilities, portion measured at fair value

1,140

1,265

Long-term debt, portion measured at fair value

2,287

2,213

Other assets

Assets:

Short-term investments, restricted cash

345

^[1]

343

Short-term investments

Assets:

Short-term investments, restricted cash

$ 64

^[1]

$ 142

[1]	Includes funds held for tax sharing payments to AIG Parent, security deposits, and replacement reserve deposits related to our affordable housing investments.

Condensed Consolidated Balance Sheets (Parenthetical - equity) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
AIG shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 5.00	$ 0
Preferred stock, shares authorized	100,000,000	0
Preferred stock, shares issued	20,000	0
Preferred stock liquidation preference	$ 500	$ 0
Common stock, par value (in dollars per share)	$ 2.50	$ 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	1,036,722,246	1,040,062,063

Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Premiums	$ 7,617	$ 7,668	$ 23,117	$ 22,150
Policy fees	733	530	2,237	2,057
Net investment income	3,408	3,396	11,032	9,722
Net realized capital gains (losses):
Total other-than-temporary impairments on available for sale securities	(15)	(13)	(119)	(116)
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss)	(9)	(22)	(18)	(42)
Net other-than-temporary impairments on available for sale securities recognized in net income (loss)	(24)	(35)	(137)	(158)
Other realized capital gains (losses)	953	(476)	1,024	(207)
Net realized capital gains (losses)	929	(511)	887	(365)
Other income	227	403	658	1,265
Total revenues	12,914	11,486	37,931	34,829
Benefits, losses and expenses:
Policyholder benefits and losses incurred	6,892	8,312	19,373	19,484
Interest credited to policyholder account balances	966	933	2,873	2,784
Amortization of deferred policy acquisition costs	1,252	1,118	3,980	3,813
General operating and other expenses	2,187	2,325	6,380	6,919
Interest expense	348	326	1,057	902
(Gain) loss on extinguishment of debt	0	1	13	10
Net (gain) loss on sale of divested businesses	9	(2)	4	(35)
Total benefits, losses and expenses	11,654	13,013	33,680	33,877
Income (loss) from continuing operations before income tax expense (benefit)	1,260	(1,527)	4,251	952
Income tax expense (benefit)	287	(307)	950	291
Income (loss) from continuing operations	973	(1,220)	3,301	661
Loss from discontinued operations, net of income tax expense	0	(39)	(1)	(40)
Net income (loss)	973	(1,259)	3,300	621
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	317	0	881	5
Net income (loss) attributable to AIG	656	(1,259)	2,419	616
Less: Preferred stock dividends	8	0	15	0
Net income (loss) attributable to AIG common shareholders	$ 648	$ (1,259)	$ 2,404	$ 616
Basic:
Income (loss) from continuing operations	$ 0.74	$ (1.37)	$ 2.74	$ 0.72
Income (loss) from discontinued operations	0	(0.04)	0	(0.04)
Net income (loss) attributable to AIG common shareholders	0.74	(1.41)	2.74	0.68
Diluted:
Income (loss) from continuing operations	0.72	(1.37)	2.71	0.71
Income (loss) from discontinued operations	0	(0.04)	0	(0.04)
Net income (loss) attributable to AIG common shareholders	$ 0.72	$ (1.41)	$ 2.71	$ 0.67
Weighted average shares outstanding:
Basic	877,009,495	895,237,359	876,262,372	902,081,555
Diluted	895,814,410	895,237,359	887,221,116	916,818,269

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 973	$ (1,259)	$ 3,300	$ 621
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	(2)	107	756	(1,089)
Change in unrealized appreciation (depreciation) of all other investments	656	(758)	6,278	(4,222)
Change in foreign currency translation adjustments	(34)	(129)	1	(181)
Change in retirement plan liabilities adjustment	7	14	14	66
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	1	0	(1)	1
Other comprehensive income (loss)	628	(766)	7,048	(5,425)
Comprehensive income (loss)	1,601	(2,025)	10,348	(4,804)
Comprehensive income (loss) attributable to noncontrolling interests	321	0	901	5
Comprehensive income (loss) attributable to AIG	$ 1,280	$ (2,025)	$ 9,447	$ (4,809)

Condensed Consolidated Statements of Equity - USD ($)	Total	Total AIG Shareholders' Equity	Preferred Stock and Additional Paid-In Capital	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Non redeemable Non-controlling Interests
Cumulative effect of change in accounting principle, net of tax	$ (8,000,000)	$ (8,000,000)	$ 0	$ 0	$ 0	$ 0	$ 568,000,000	$ (576,000,000)	$ 0
Balance at Dec. 31, 2017	65,708,000,000	65,171,000,000	0	4,766,000,000	(47,595,000,000)	81,078,000,000	21,457,000,000	5,465,000,000	537,000,000
Common stock issued under stock plans	(150,000,000)	(150,000,000)	0	0	187,000,000	(337,000,000)	0	0	0
Purchase of common stock	(994,000,000)	(994,000,000)	0	0	(994,000,000)	0	0	0	0
Net income (loss) attributable to AIG or other noncontrolling interests	621,000,000	616,000,000	0	0	0	0	616,000,000	0	5,000,000
Dividends on common stock	(858,000,000)	(858,000,000)	0	0	0	0	(858,000,000)	0	0
Other comprehensive income (loss)	(5,425,000,000)	(5,425,000,000)	0	0	0	0	0	(5,425,000,000)	0
Net increase (decrease) due to acquisitions and consolidations	99,000,000	0	0	0	0	0	0	0	99,000,000
Contributions from noncontrolling interests	21,000,000	0	0	0	0	0	0	0	21,000,000
Distributions to noncontrolling interests	(65,000,000)	0	0	0	0	0	0	0	(65,000,000)
Other	228,000,000	234,000,000	0	0	1,000,000	267,000,000	(34,000,000)	0	(6,000,000)
Balance at Sep. 30, 2018	59,177,000,000	58,586,000,000	0	4,766,000,000	(48,401,000,000)	81,008,000,000	21,749,000,000	(536,000,000)	591,000,000
Cumulative effect of change in accounting principle, net of tax	0	0	0	0	0	0	0	0	0
Balance at Jun. 30, 2018	61,797,000,000	61,186,000,000	0	4,766,000,000	(48,052,000,000)	80,924,000,000	23,318,000,000	230,000,000	611,000,000
Common stock issued under stock plans	0	0	0	0	0	0	0	0	0
Purchase of common stock	(348,000,000)	(348,000,000)	0	0	(348,000,000)	0	0	0	0
Net income (loss) attributable to AIG or other noncontrolling interests	(1,259,000,000)	(1,259,000,000)	0	0	0	0	(1,259,000,000)	0	0
Dividends on common stock	(283,000,000)	(283,000,000)	0	0	0	0	(283,000,000)	0	0
Other comprehensive income (loss)	(766,000,000)	(766,000,000)	0	0	0	0	0	(766,000,000)	0
Net increase (decrease) due to acquisitions and consolidations	1,000,000	0	0	0	0	0	0	0	1,000,000
Contributions from noncontrolling interests	18,000,000	0	0	0	0	0	0	0	18,000,000
Distributions to noncontrolling interests	(38,000,000)	0	0	0	0	0	0	0	(38,000,000)
Other	55,000,000	56,000,000	0	0	(1,000,000)	84,000,000	(27,000,000)	0	(1,000,000)
Balance at Sep. 30, 2018	59,177,000,000	58,586,000,000	0	4,766,000,000	(48,401,000,000)	81,008,000,000	21,749,000,000	(536,000,000)	591,000,000
Balance at Dec. 31, 2018	57,309,000,000	56,361,000,000	0	4,766,000,000	(49,144,000,000)	81,268,000,000	20,884,000,000	(1,413,000,000)	948,000,000
Preferred stock issued	485,000,000	485,000,000	485,000,000	0	0	0	0	0	0
Common stock issued under stock plans	(77,000,000)	(77,000,000)	0	0	154,000,000	(231,000,000)	0	0	0
Purchase of common stock	0	0	0	0	0	0	0	0	0
Net income (loss) attributable to AIG or other noncontrolling interests	3,300,000,000	2,419,000,000	0	0	0	0	2,419,000,000	0	881,000,000
Dividends on preferred stock	(15,000,000)	(15,000,000)	0	0	0	0	(15,000,000)	0	0
Dividends on common stock	(835,000,000)	(835,000,000)	0	0	0	0	(835,000,000)	0	0
Other comprehensive income (loss)	7,048,000,000	7,028,000,000	0	0	0	0	0	7,028,000,000	20,000,000
Current and deferred income taxes	0	0	0	0	0	0	0	0	0
Net increase (decrease) due to acquisitions and consolidations	78,000,000	0	0	0	0	0	0	0	78,000,000
Contributions from noncontrolling interests	13,000,000	0	0	0	0	0	0	0	13,000,000
Distributions to noncontrolling interests	(106,000,000)	0	0	0	0	0	0	0	(106,000,000)
Other	245,000,000	237,000,000	0	0	1,000,000	250,000,000	(14,000,000)	0	8,000,000
Balance at Sep. 30, 2019	67,445,000,000	65,603,000,000	485,000,000	4,766,000,000	(48,989,000,000)	81,287,000,000	22,439,000,000	5,615,000,000	1,842,000,000
Balance at Jun. 30, 2019	66,105,000,000	64,539,000,000	485,000,000	4,766,000,000	(48,991,000,000)	81,211,000,000	22,077,000,000	4,991,000,000	1,566,000,000
Preferred stock issued	0	0	0	0	0	0	0	0	0
Common stock issued under stock plans	1,000,000	1,000,000	0	0	1,000,000	0	0	0	0
Purchase of common stock	0	0	0	0	0	0	0	0	0
Net income (loss) attributable to AIG or other noncontrolling interests	973,000,000	656,000,000	0	0	0	0	656,000,000	0	317,000,000
Dividends on preferred stock	(8,000,000)	(8,000,000)	0	0	0	0	(8,000,000)	0	0
Dividends on common stock	(278,000,000)	(278,000,000)	0	0	0	0	(278,000,000)	0	0
Other comprehensive income (loss)	628,000,000	624,000,000	0	0	0	0	0	624,000,000	4,000,000
Current and deferred income taxes	0	0	0	0	0	0	0	0	0
Net increase (decrease) due to acquisitions and consolidations	(18,000,000)	0	0	0	0	0	0	0	(18,000,000)
Contributions from noncontrolling interests	11,000,000	0	0	0	0	0	0	0	11,000,000
Distributions to noncontrolling interests	(37,000,000)	0	0	0	0	0	0	0	(37,000,000)
Other	68,000,000	69,000,000	0	0	1,000,000	76,000,000	(8,000,000)	0	(1,000,000)
Balance at Sep. 30, 2019	67,445,000,000	$ 65,603,000,000	$ 485,000,000	$ 4,766,000,000	$ (48,989,000,000)	$ 81,287,000,000	$ 22,439,000,000	$ 5,615,000,000	$ 1,842,000,000
Cumulative effect of change in accounting principle, net of tax	$ 625,000,000

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 3,300,000,000	$ 621,000,000
Loss from discontinued operations	1,000,000	40,000,000
Noncash revenues, expenses, gains and losses included in income (loss):
Net gains on sales of securities available for sale and other assets	(600,000,000)	(71,000,000)
Net (gain) loss on sale of divested businesses	4,000,000	(35,000,000)
Losses on extinguishment of debt	13,000,000	10,000,000
Unrealized (gains) losses in earnings - net	(273,000,000)	601,000,000
Equity in loss from equity method investments, net of dividends or distributions	90,000,000	141,000,000
Depreciation and other amortization	3,833,000,000	3,813,000,000
Impairments of assets	237,000,000	269,000,000
Changes in operating assets and liabilities:
Insurance reserves	(2,146,000,000)	96,000,000
Premiums and other receivables and payables - net	(42,000,000)	968,000,000
Reinsurance assets and funds held under reinsurance treaties	(1,200,000,000)	(2,057,000,000)
Capitalization of deferred policy acquisition costs	(4,181,000,000)	(4,366,000,000)
Current and deferred income taxes - net	757,000,000	224,000,000
Other, net	(582,000,000)	(292,000,000)
Total adjustments	(4,090,000,000)	(699,000,000)
Net cash used in operating activities	(789,000,000)	(38,000,000)
Sales or distribution of:
Available for sale securities	17,498,000,000	18,103,000,000
Other securities	5,230,000,000	3,258,000,000
Other invested assets	3,345,000,000	3,799,000,000
Divested businesses, net	2,000,000	10,000,000
Maturities of fixed maturity securities available for sale	18,165,000,000	18,305,000,000
Principal payments received on and sales of mortgage and other loans receivable	4,233,000,000	3,068,000,000
Purchases of:
Available for sale securities	(41,612,000,000)	(32,807,000,000)
Other securities	(723,000,000)	(940,000,000)
Other invested assets	(2,662,000,000)	(2,263,000,000)
Mortgage and other loans receivable	(6,512,000,000)	(7,918,000,000)
Acquisition of businesses, net of cash and restricted cash acquired	0	(5,052,000,000)
Net change in short-term investments	(4,586,000,000)	2,411,000,000
Other, net	2,829,000,000	(891,000,000)
Net cash used in investing activities	(4,793,000,000)	(917,000,000)
Proceeds from (payments for)
Policyholder contract deposits	17,297,000,000	18,150,000,000
Policyholder contract withdrawals	(12,474,000,000)	(13,004,000,000)
Issuance of long-term debt	2,564,000,000	4,059,000,000
Repayments of long-term debt	(2,421,000,000)	(2,788,000,000)
Issuance of preferred stock	485,000,000	0
Purchase of common stock	0	(994,000,000)
Dividends paid on preferred stock	(15,000,000)	0
Dividends paid on common stock	(835,000,000)	(858,000,000)
Other, net	1,354,000,000	(3,232,000,000)
Net cash provided by financing activities	5,955,000,000	1,333,000,000
Effect of exchange rate changes on cash and restricted cash	39,000,000	8,000,000
Net increase in cash and restricted cash	412,000,000	386,000,000
Cash and restricted cash at beginning of year	3,358,000,000	2,737,000,000
Cash and restricted cash at end of period	$ 3,770,000,000	$ 3,123,000,000

Supplementary Disclosure of Condensed Consolidated Cash Flow Information - USD ($)
$ in Millions

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:

Cash

$ 3,361

$ 2,741

Total cash and restricted cash shown in the Condensed Consolidated Cash Flows

3,770

3,123

Cash paid during the period for:

Interest

1,012

1,018

Taxes

193

Non-cash investing/financing activities:

Interest credited to policyholder contract deposits included in financing activities

2,507

2,525

Other assets

Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:

Restricted cash included in Short-term investments

^[1]

345

354

Short-term investments

Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:

Restricted cash included in Short-term investments

^[1]

$ 64

$ 28

[1]	Includes funds held for tax sharing payments to AIG Parent, security deposits, and replacement reserve deposits related to our affordable housing investments.

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2019

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). Unless the context indicates otherwise, the terms “AIG,” “we,” “us” or “our” mean American International Group, Inc. and its consolidated subsidiaries and the term “AIG Parent” means American International Group, Inc. and not any of its consolidated subsidiaries.

These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the 2018 Annual Report). The condensed consolidated financial information as of December 31, 2018 included herein has been derived from the audited Consolidated Financial Statements in the 2018 Annual Report.

Certain of our foreign subsidiaries included in the Condensed Consolidated Financial Statements report on the basis of 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 Condensed Consolidated Financial Statements has been considered for adjustment and/or disclosure. In the opinion of management, these Condensed Consolidated Financial Statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein.

Interim-period operating results may not be indicative of the operating results for a full year. We evaluated the need to recognize or disclose events that occurred subsequent to September 30, 2019 and prior to the issuance of these Condensed Consolidated Financial Statements.

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 three- and nine-month periods ended September 30, 2019, our results include out of period adjustments relating to prior periods that decreased net income attributable to AIG common shareholders by $134 million and $138 million, respectively, and decreased Income from continuing operations before income tax expense by $169 million and $170 million, respectively. The out of period adjustments for the three-month period are primarily related to increases in policyholder benefits and losses incurred reflecting updated actuarial assumptions.

We determined that these adjustments were not material to the current quarter or to any previously reported quarterly or annual financial statements.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. Summary of Significant Accounting Policies

Accounting Standards Adopted During 2019

Leases

In February 2016, the Financial Accounting Standards Board (FASB) issued an accounting standard that requires 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.

We adopted the standard on its effective date of January 1, 2019, using a modified retrospective approach and did not adjust prior comparative periods in accordance with the standard’s transition guidance. The majority of the Company’s lease obligations pertain to real estate utilized in the operation of our businesses. Consequently, the primary impact of adoption resulted in the recognition of discounted lease liabilities of $823 million and corresponding right-of-use assets of $724 million for operating leases pertaining to our real estate portfolio, which are reflected in Other Liabilities and Other Assets, respectively. The standard did not have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures.

Premium Amortization on Purchased Callable Debt Securities

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

We adopted the standard using a modified retrospective approach on its effective date of January 1, 2019. The standard did not 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 standard 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 disclosures, and simplify the application of hedge accounting treatment.

We adopted the standard on its effective date of January 1, 2019. The standard did not have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclosures.

Future Application of Accounting Standards

Financial Instruments - Credit Losses

In June 2016, the FASB issued an accounting standard that will change how entities account for current expected credit losses (CECL) for most financial assets, trade receivables, off-balance sheet exposures and reinsurance receivables. The standard requires an allowance for credit losses based on the expectation of lifetime credit losses related to such 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, is 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 allow for reversals of credit impairments in the event that the credit of an issuer improves. The standard also requires additional disclosures.

We plan to adopt the standard on its effective date of January 1, 2020 using a modified retrospective method, which requires a cumulative effect adjustment to retained earnings. We are finalizing the development of the credit loss models and related systems, processes and controls. As of September 30, 2019, we currently estimate the CECL allowance to be a reduction in opening retained earnings of approximately $625 million (pre-tax) primarily driven by commercial mortgage loans, and, to a lesser extent, reinsurance receivables and recoverables. This estimate will change, perhaps materially, as it is subject to further adjustments based upon ongoing reviews of models, methodologies and judgments. Moreover, the ultimate impact will be dependent on, among other things, our portfolios’ composition at the adoption date, as well as macroeconomic conditions and forecasts, and other management judgments 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 plan to adopt the standard on its effective date of January 1, 2020. Any impact of the standard will be dependent on the market conditions of the reporting units at the time of adoption.

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.

In October 2019, the FASB affirmed its decision to defer the effective date of the standard to January 1, 2022. We plan to adopt the standard on its updated effective date. We have started our implementation efforts and 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.

RECLASSIFICATIONS

In the first quarter of 2019, we began reporting investment income from our non-insurance subsidiaries in Net investment income instead of Other income on a prospective basis to be consistent with how we report investment income from our General Insurance and Life and Retirement reporting segments. This reclassification has no impact to our consolidated statements of operations.

goodwill

Effective July 1, 2019, we changed the date of our annual goodwill impairment testing from December 31 to July 1. This change does not represent a material change to our method of applying current accounting guidance and is preferable as it better aligns with our strategic planning and forecasting process. This change will not delay, accelerate or avoid any impairment charge and was applied prospectively. We performed our annual goodwill impairment tests of all reporting units using a combination of both qualitative and

quantitative assessments and concluded that our goodwill was not impaired. Our goodwill balance was $4.1 billion at September 30, 2019. For further information on goodwill see Note 12 to the Consolidated Financial Statements in the 2018 Annual Report.

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2019

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., Western World Insurance Group, Inc. and Glatfelter Insurance Group as of their respective acquisition dates.

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 its 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 annuities, individual annuity and investment products, and 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.

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), 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.

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. Beginning in the first quarter of 2019, on a prospective basis, the changes in the fair value of equity securities are excluded from adjusted pre-tax income (loss). 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:

Three Months Ended September 30,	2019				2018
				Adjusted				Adjusted
		Total		Pre-tax		Total		Pre-tax
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
General Insurance
North America	$	3,878	$	435	$	4,129	$	(160)
International		3,537		72		3,853		(665)
Total General Insurance		7,415		507		7,982		(825)
Life and Retirement
Individual Retirement		1,416		387		1,335		393
Group Retirement		726		203		718		242
Life Insurance		1,037		(7)		809		16
Institutional Markets		654		63		284		62
Total Life and Retirement		3,833		646		3,146		713
Other Operations		211		(454)		135		(417)
Legacy Portfolio		751		93		814		84
AIG Consolidation and elimination		(153)		(46)		(42)		29
Total AIG Consolidated adjusted revenues and adjusted pre-tax income (loss)		12,057		746		12,035		(416)
Reconciling items from adjusted pre-tax income to pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed
living benefits		25		12		(5)		(14)
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains (losses)		-		(65)		-		76
Changes in the fair value of equity securities		(51)		(51)		-		-
Professional fees related to regulatory or accounting changes		-		(3)		-		-
Other income (expense) - net		16		-		(4)		-
Gain (loss) on extinguishment of debt		-		-		-		(1)
Net realized capital gains (losses)^*		867		881		(540)		(524)
Income (loss) from divested businesses		-		(9)		-		2
Non-operating litigation reserves and settlements		-		(5)		-		(5)
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		59		-		(605)
Net loss reserve discount benefit (charge)		-		(235)		-		86
Integration and transaction costs associated with acquired businesses		-		(3)		-		(91)
Restructuring and other costs		-		(67)		-		(35)
Revenues and Pre-tax income (loss)	$	12,914	$	1,260	$	11,486	$	(1,527)

Nine Months Ended September 30,	2019				2018
				Adjusted				Adjusted
		Total		Pre-Tax		Total		Pre-Tax
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
General Insurance
North America	$	12,001	$	2,087	$	10,895	$	567
International		10,743		668		11,758		(314)
Total General Insurance		22,744		2,755		22,653		253
Life and Retirement
Individual Retirement		4,233		1,483		4,062		1,354
Group Retirement		2,225		728		2,209		774
Life Insurance		3,264		195		2,962		243
Institutional Markets		2,143		213		838		196
Total Life and Retirement		11,865		2,619		10,071		2,567
Other Operations		625		(1,256)		454		(1,133)
Legacy Portfolio		2,197		324		2,431		363
AIG Consolidation and elimination		(460)		(172)		(214)		28
Total AIG Consolidated adjusted revenues and adjusted pre-tax income		36,971		4,270		35,395		2,078
Reconciling items from adjusted pre-tax income to pre-tax income:
Changes in fair value of securities used to hedge guaranteed
living benefits		214		183		(109)		(127)
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains (losses)		-		(39)		-		46
Changes in the fair value of equity securities		6		6		-		-
Professional fees related to regulatory or accounting changes		-		(5)		-		-
Other income (expense) - net		27		-		(29)		-
Loss on extinguishment of debt		-		(13)		-		(10)
Net realized capital gains (losses)^*		713		758		(430)		(388)
Income (loss) from divested businesses		-		(4)		-		35
Non-operating litigation reserves and settlements		-		(6)		2		(30)
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		211		-		(607)
Net loss reserve discount benefit (charge)		-		(920)		-		305
Integration and transaction costs associated with acquired businesses		-		(16)		-		(91)
Restructuring and other costs		-		(174)		-		(259)
Revenues and Pre-tax income	$	37,931	$	4,251	$	34,829	$	952

*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.

BUSINESS COMBINATION

9 Months Ended

Sep. 30, 2019

BUSINESS COMBINATION

BUSINESS COMBINATION

4. Business Combination

On July 18, 2018, we completed the purchase of a 100 percent voting interest in Validus Holdings, Ltd. (Validus), a leading provider of reinsurance, primary insurance, and asset management services, for $5.5 billion in cash.

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 $128 million at September 30, 2019, in Other Invested Assets in the Condensed Consolidated Balance Sheet.

The following unaudited summarized pro forma consolidated income statement information assumes that the acquisition of Validus occurred as of January 1, 2018. The pro forma amounts are for comparative purposes only and 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.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018*		2019		2018*
Total revenues	$	12,914	$	11,486	$	37,931	$	36,028
Net income (loss)		973		(1,259)		3,300		576
Net income (loss) attributable to AIG common shareholders		648		(1,259)		2,404		571

Income (loss) per common share attributable to AIG common shareholders:
Basic:
Net income (loss) attributable to AIG common shareholders		0.74		(1.41)		2.74		0.63
Diluted:
Net income (loss) attributable to AIG common shareholders		0.72		(1.41)		2.71		0.62

*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.

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2019

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

5. Fair Value Measurements

Fair Value Measurements on a Recurring Basis

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

•Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments.

•Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

•Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability.

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

Assets and Liabilities Measured at Fair Value on a Recurring Basis

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

September 30, 2019

Counterparty

Cash

(in millions)

Level 1

Level 2

Level 3

Netting^(a)

Collateral

Total

Assets: