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

Short-term investments, restricted cash

Assets:

345

^[1]

343

Short-term investments, restricted cash

Assets:

$ 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:

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

$ 3,361

$ 2,741

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

Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:

Restricted cash included in Short-term investments

^[1]

345

354

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:
Bonds available for sale:
U.S. government and government sponsored entities	$	684	$	4,543	$	-	$	-	$	-	$	5,227
Obligations of states, municipalities and political subdivisions		-		13,638		2,107		-		-		15,745
Non-U.S. governments		94		15,269		13		-		-		15,376
Corporate debt		-		150,097		1,275		-		-		151,372
RMBS		-		19,235		13,560		-		-		32,795
CMBS		-		13,286		1,050		-		-		14,336
CDO/ABS		-		9,431		8,939		-		-		18,370
Total bonds available for sale		778		225,499		26,944		-		-		253,221
Other bond securities:
U.S. government and government sponsored entities		10		2,286		-		-		-		2,296
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		18		-		-		-		18
RMBS		-		482		815		-		-		1,297
CMBS		-		335		68		-		-		403
CDO/ABS		-		382		3,931		-		-		4,313
Total other bond securities		10		3,503		4,814		-		-		8,327
Equity securities		751		12		8		-		-		771
Other invested assets^(b)		-		73		589		-		-		662
Derivative assets:
Interest rate contracts		1		4,381		-		-		-		4,382
Foreign exchange contracts		-		1,661		1		-		-		1,662
Equity contracts		18		676		103		-		-		797
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		15		-		-		15
Counterparty netting and cash collateral		-		-		-		(2,795)		(2,937)		(5,732)
Total derivative assets		19		6,718		120		(2,795)		(2,937)		1,125
Short-term investments		2,988		2,589		-		-		-		5,577
Other assets		-		-		60		-		-		60
Separate account assets		84,707		4,418		-		-		-		89,125
Total	$	89,253	$	242,812	$	32,535	$	(2,795)	$	(2,937)	$	358,868
Liabilities:
Policyholder contract deposits	$	-	$	-	$	7,166	$	-	$	-	$	7,166
Derivative liabilities:
Interest rate contracts		3		2,853		-		-		-		2,856
Foreign exchange contracts		-		940		-		-		-		940
Equity contracts		12		74		2		-		-		88
Credit contracts		-		18		103		-		-		121
Other contracts		-		-		8		-		-		8
Counterparty netting and cash collateral		-		-		-		(2,795)		(133)		(2,928)
Total derivative liabilities		15		3,885		113		(2,795)		(133)		1,085
Other liabilities		-		55		-		-		-		55
Long-term debt		-		2,287		-		-		-		2,287
Total	$	15	$	6,227	$	7,279	$	(2,795)	$	(133)	$	10,593

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		1,213		13		27		-		-		1,253
Other invested assets^(b)		-		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
Other assets		-		-		58		-		-		58
Separate account assets		77,202		4,645		-		-		-		81,847
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
Other liabilities		16		11		-		-		-		27
Long-term debt		-		2,213		-		-		-		2,213
Total	$	32	$	5,097	$	4,365	$	(1,713)	$	(187)	$	7,594

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

(b)Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $5.4 billion and $5.0 billion as of September 30, 2019 and December 31, 2018, 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.

There were no transfers of securities issued by non-U.S. government entities from Level 1 to Level 2 in the three-month period ended September 30, 2019. During the nine-month period ended September 30, 2019, we transferred $62 million of securities issued by non-U.S. government entities from Level 1 to Level 2, because they are no longer considered actively traded. For similar reasons, during the three- and nine-month periods ended September 30, 2019, we transferred $111 million and $162 million, respectively, of securities issued by the U.S. government and government sponsored entities from Level 1 to Level 2. We had no material transfers from Level 2 to Level 1 during the three- and nine-month periods ended September 30, 2019.

There were no transfers of securities issued by non-U.S. government entities from Level 1 to Level 2 in the three-month period ended September 30, 2018. During the nine-month period ended September 30, 2018, we transferred $16 million of securities issued by non-U.S. government entities from Level 1 to Level 2, because they were no longer considered actively traded. For similar reasons, during the three- and nine-month periods ended September 30, 2018, we transferred $52 million and $733 million, respectively, of securities issued by the U.S. government and government sponsored entities from Level 1 to Level 2. We had no material transfers from Level 2 to Level 1 during the three- and nine-month periods ended September 30, 2018.

Changes in Level 3 Recurring Fair Value Measurements

The following tables present changes during the three- and nine-month periods ended September 30, 2019 and 2018 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at September 30, 2019 and 2018:

				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Three Months Ended September 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,162	$	(1)	$	119	$	92	$	-	$	(265)	$	2,107	$	-
Non-U.S. governments		2		6		-		-		5		-		13		-
Corporate debt		1,821		(36)		(2)		(535)		112		(85)		1,275		-
RMBS		13,863		166		15		(418)		16		(82)		13,560		-
CMBS		1,103		2		32		85		-		(172)		1,050		-
CDO/ABS		9,062		3		37		(170)		7		-		8,939		-
Total bonds available for sale		28,013		140		201		(946)		140		(604)		26,944		-
Other bond securities:
Corporate debt		-		-		-		-		-		-		-		-
RMBS		830		9		-		(24)		-		-		815		1
CMBS		88		1		-		(17)		-		(4)		68		(2)
CDO/ABS		4,150		115		-		(334)		-		-		3,931		28
Total other bond securities		5,068		125		-		(375)		-		(4)		4,814		27
Equity securities		35		-		-		(29)		2		-		8		(2)
Mortgage and other loans receivable		-		-		-		-		-		-		-		-
Other invested assets		605		6		-		(22)		-		-		589		7
Other assets		61		-		-		(1)		-		-		60		-
Total	$	33,782	$	271	$	201	$	(1,373)	$	142	$	(608)	$	32,415	$	32
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	6,065	$	861	$	-	$	240	$	-	$	-	$	7,166	$	(691)
Derivative liabilities, net:
Interest rate contracts		16		(3)		-		(13)		-		-		-		-
Foreign exchange contracts		(4)		6		-		(3)		-		-		(1)		-
Equity contracts		(113)		12		-		-		-		-		(101)		(13)
Credit contracts		173		(24)		-		(47)		-		-		102		14
Other contracts		(7)		(17)		-		17		-		-		(7)		15
Total derivative liabilities, net^(a)		65		(26)		-		(46)		-		-		(7)		16
Total	$	6,130	$	835	$	-	$	194	$	-	$	-	$	7,159	$	(675)

				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Nine Months Ended September 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,000	$	(2)	$	321	$	178	$	35	$	(425)	$	2,107	$	-
Non-U.S. governments		11		5		-		(4)		5		(4)		13		-
Corporate debt		864		(10)		79		(600)		1,155		(213)		1,275		-
RMBS		14,199		575		176		(1,234)		83		(239)		13,560		-
CMBS		917		8		62		381		58		(376)		1,050		-
CDO/ABS		9,102		15		204		(111)		103		(374)		8,939		-
Total bonds available for sale		27,093		591		842		(1,390)		1,439		(1,631)		26,944		-
Other bond securities:
Corporate debt		-		-		-		-		-		-		-		-
RMBS		1,290		69		-		(544)		-		-		815		(18)
CMBS		77		5		-		-		-		(14)		68		3
CDO/ABS		4,478		299		-		(749)		-		(97)		3,931		128
Total other bond securities		5,845		373		-		(1,293)		-		(111)		4,814		113
Equity securities		27		-		-		(20)		2		(1)		8		2
Mortgage and other loans receivable		-		-		-		-		-		-		-		-
Other invested assets		587		24		1		(23)		-		-		589		27
Other assets		58		-		-		2		-		-		60		-
Total	$	33,610	$	988	$	843	$	(2,724)	$	1,441	$	(1,743)	$	32,415	$	142
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,116	$	2,400	$	-	$	650	$	-	$	-	$	7,166	$	(2,044)
Derivative liabilities, net:
Interest rate contracts		15		-		-		(15)		-		-		-		1
Foreign exchange contracts		(5)		(4)		-		8		-		-		(1)		-
Equity contracts		(75)		(8)		-		(18)		-		-		(101)		19
Credit contracts		227		(51)		-		(74)		-		-		102		13
Other contracts		(9)		(50)		-		52		-		-		(7)		50
Total derivative liabilities, net^(a)		153		(113)		-		(47)		-		-		(7)		83
Total	$	4,269	$	2,287	$	-	$	603	$	-	$	-	$	7,159	$	(1,961)

				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Three Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,056	$	-	$	(37)	$	(46)	$	54	$	(31)	$	-	$	1,996	$	-
Non-U.S. governments		-		-		(1)		1		4		-		-		4		-
Corporate debt		884		7		(10)		(28)		133		(44)		-		942		-
RMBS		15,377		213		5		(725)		-		(16)		7		14,861		-
CMBS		605		14		(14)		31		64		-		1		701		-
CDO/ABS		6,856		15		(31)		320		1,508		-		164		8,832		-
Total bonds available for sale		25,778		249		(88)		(447)		1,763		(91)		172		27,336		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		(2)
RMBS		1,338		18		-		(57)		50		-		-		1,349		(29)
CMBS		71		(2)		-		-		4		-		-		73		(2)
CDO/ABS		4,641		76		-		(267)		-		-		8		4,458		(6)
Total other bond securities		6,068		92		-		(342)		54		-		8		5,880		(39)
Equity securities		-		1		-		24		-		-		-		25		-
Mortgage and other loans receivable		-		-		-		-		-		-		-		-		-
Other invested assets		399		-		-		(1)		-		-		-		398		-
Total	$	32,245	$	342	$	(88)	$	(766)	$	1,817	$	(91)	$	180	$	33,639	$	(39)
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,534	$	(242)	$	-	$	84	$	-	$	-	$	-	$	3,376	$	179
Derivative liabilities, net:
Interest rate contracts		14		(1)		-		(1)		-		-		-		12		1
Foreign exchange contracts		5		2		-		(2)		-		-		-		5		(5)
Equity contracts		(79)		(12)		-		(12)		-		-		-		(103)		10
Credit contracts		246		(9)		-		(1)		-		-		-		236		10
Other contracts		(10)		(19)		-		17		-		-		-		(12)		14
Total derivative liabilities, net^(a)		176		(39)		-		1		-		-		-		138		30
Total	$	3,710	$	(281)	$	-	$	85	$	-	$	-	$	-	$	3,514	$	209

				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Nine Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,404	$	1	$	(152)	$	(144)	$	54	$	(167)	$	-	$	1,996	$	-
Non-U.S. governments		8		(5)		5		(3)		4		(5)		-		4		-
Corporate debt		1,173		(58)		(7)		(174)		701		(693)		-		942		-
RMBS		16,136		632		5		(1,877)		8		(50)		7		14,861		-
CMBS		624		18		(35)		1		111		(19)		1		701		-
CDO/ABS		8,651		31		(116)		(334)		1,508		(1,072)		164		8,832		-
Total bonds available for sale		28,996		619		(300)		(2,531)		2,386		(2,006)		172		27,336		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		(1)
RMBS		1,464		73		-		(238)		50		-		-		1,349		124
CMBS		74		(5)		-		(1)		5		-		-		73		2
CDO/ABS		4,956		283		-		(780)		-		(9)		8		4,458		201
Total other bond securities		6,512		351		-		(1,037)		55		(9)		8		5,880		326
Equity securities		-		(2)		-		27		-		-		-		25		-
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-		-
Other invested assets		250		52		1		95		-		-		-		398		56
Total	$	35,763	$	1,020	$	(299)	$	(3,451)	$	2,441	$	(2,015)	$	180	$	33,639	$	382
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,136	$	(986)	$	-	$	226	$	-	$	-	$	-	$	3,376	$	1,081
Derivative liabilities, net:
Interest rate contracts		22		(5)		-		(5)		-		-		-		12		5
Foreign exchange contracts		-		(2)		-		7		-		-		-		5		(5)
Equity contracts		(82)		(3)		-		(20)		-		2		-		(103)		2
Credit contracts		262		(23)		-		(3)		-		-		-		236		23
Other contracts		(15)		(51)		-		54		-		-		-		(12)		42
Total derivative liabilities, net^(a)		187		(84)		-		33		-		2		-		138		67
Total	$	4,323	$	(1,070)	$	-	$	259	$	-	$	2	$	-	$	3,514	$	1,148

(a)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 Condensed Consolidated Statements of Income as follows:

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended September 30, 2019
Assets:
Bonds available for sale	$	164	$	(24)	$	-	$	140
Other bond securities		110		15		-		125
Equity securities		-		-		-		-
Other invested assets		7		(1)		-		6
Nine Months Ended September 30, 2019
Assets:
Bonds available for sale	$	651	$	(60)	$	-	$	591
Other bond securities		306		67		-		373
Equity securities		-		-		-		-
Other invested assets		25		(1)		-		24
Three Months Ended September 30, 2018
Assets:
Bonds available for sale	$	249	$	-	$	-	$	249
Other bond securities		35		1		56		92
Equity securities		1		-		-		1
Other invested assets		-		-		-		-
Nine Months Ended September 30, 2018
Assets:
Bonds available for sale	$	731	$	(112)	$	-	$	619
Other bond securities		92		(3)		262		351
Equity securities		(2)		-		-		(2)
Other invested assets		57		-		(5)		52

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
Three Months Ended September 30, 2019
Liabilities:
Policyholder contract deposits	$	-	$	861	$	-	$	861
Derivative liabilities, net		-		(11)		(15)		(26)
Nine Months Ended September 30, 2019
Liabilities:
Policyholder contract deposits	$	-	$	2,400	$	-	$	2,400
Derivative liabilities, net		-		(64)		(49)		(113)
Three Months Ended September 30, 2018
Liabilities:
Policyholder contract deposits	$	-	$	(242)	$	-	$	(242)
Derivative liabilities, net		-		(1)		(38)		(39)
Nine Months Ended September 30, 2018
Liabilities:
Policyholder contract deposits	$	-	$	(986)	$	-	$	(986)
Derivative liabilities, net		-		(3)		(81)		(84)

The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above, for the three- and nine-month periods ended September 30, 2019 and 2018 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets:

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements^(a)		Settlements, Net^(a)
Three Months Ended September 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	109	$	-	$	(17)	$	92
Non-U.S. governments		-		-		-		-
Corporate debt		1		(128)		(408)		(535)
RMBS		253		-		(671)		(418)
CMBS		92		-		(7)		85
CDO/ABS		458		(198)		(430)		(170)
Total bonds available for sale		913		(326)		(1,533)		(946)
Other bond securities:
RMBS		-		-		(24)		(24)
CMBS		-		(16)		(1)		(17)
CDO/ABS		-		(153)		(181)		(334)
Total other bond securities		-		(169)		(206)		(375)
Equity securities		-		-		(29)		(29)
Mortgage and other loans receivable		-		-		-		-
Other invested assets		21		-		(43)		(22)
Other assets		-		-		(1)		(1)
Total assets	$	934	$	(495)	$	(1,812)	$	(1,373)
Liabilities:
Policyholder contract deposits	$	-	$	240	$	-	$	240
Derivative liabilities, net		(7)		-		(39)		(46)
Total liabilities	$	(7)	$	240	$	(39)	$	194
Three Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	-	$	(8)	$	(38)	$	(46)
Non-U.S. governments		-		-		1		1
Corporate debt		25		-		(53)		(28)
RMBS		123		(2)		(846)		(725)
CMBS		58		(2)		(25)		31
CDO/ABS		394		(49)		(25)		320
Total bonds available for sale		600		(61)		(986)		(447)
Other bond securities:
Corporate debt		-		-		(18)		(18)
RMBS		-		-		(57)		(57)
CMBS		-		-		-		-
CDO/ABS		-		-		(267)		(267)
Total other bond securities		-		-		(342)		(342)
Equity securities		24		-		-		24
Mortgage and other loans receivable		-		-		-		-
Other invested assets		-		-		(1)		(1)
Other assets		-		-		-		-
Total assets	$	624	$	(61)	$	(1,329)	$	(766)
Liabilities:
Policyholder contract deposits	$	-	$	148	$	(64)	$	84
Derivative liabilities, net		(18)		-		19		1
Total liabilities	$	(18)	$	148	$	(45)	$	85

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements^(a)		Settlements, Net^(a)
Nine Months Ended September 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	243	$	(16)	$	(49)	$	178
Non-U.S. governments		-		-		(4)		(4)
Corporate debt		58		(129)		(529)		(600)
RMBS		860		(26)		(2,068)		(1,234)
CMBS		455		-		(74)		381
CDO/ABS		1,628		(508)		(1,231)		(111)
Total bonds available for sale		3,244		(679)		(3,955)		(1,390)
Other bond securities:
RMBS		-		(437)		(107)		(544)
CMBS		18		(16)		(2)		-
CDO/ABS		-		(153)		(596)		(749)
Total other bond securities		18		(606)		(705)		(1,293)
Equity securities		9		-		(29)		(20)
Mortgage and other loans receivable		-		-		-		-
Other invested assets		64		-		(87)		(23)
Other assets		-		-		2		2
Total assets	$	3,335	$	(1,285)	$	(4,774)	$	(2,724)
Liabilities:
Policyholder contract deposits	$	-	$	616	$	34	$	650
Derivative liabilities, net		(29)		-		(18)		(47)
Total liabilities	$	(29)	$	616	$	16	$	603
Nine Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	24	$	(8)	$	(160)	$	(144)
Non-U.S. governments		2		-		(5)		(3)
Corporate debt		280		(216)		(238)		(174)
RMBS		630		(12)		(2,495)		(1,877)
CMBS		70		(2)		(67)		1
CDO/ABS		1,364		(962)		(736)		(334)
Total bonds available for sale		2,370		(1,200)		(3,701)		(2,531)
Other bond securities:
Corporate debt		-		-		(18)		(18)
RMBS		1		(34)		(205)		(238)
CMBS		-		-		(1)		(1)
CDO/ABS		-		(4)		(776)		(780)
Total other bond securities		1		(38)		(1,000)		(1,037)
Equity securities		27		-		-		27
Mortgage and other loans receivable		-		(5)		-		(5)
Other invested assets		153		(29)		(29)		95
Other assets		-		-		-		-
Total assets	$	2,551	$	(1,272)	$	(4,730)	$	(3,451)
Liabilities:
Policyholder contract deposits	$	-	$	391	$	(165)	$	226
Derivative liabilities, net		(37)		-		70		33
Total liabilities	$	(37)	$	391	$	(95)	$	259

(a)There were no issuances during the three- and nine-month periods ended September 30, 2019 and 2018.

Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at September 30, 2019 and 2018 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 or Other comprehensive income (loss) as shown in the table above excludes $(40) million of net losses related to assets and liabilities transferred into Level 3 during the nine-month period ended September 30, 2019, and includes $24 million and $28 million of net gains related to assets and liabilities transferred out of Level 3 during the three- and nine-month periods ended September 30, 2019, respectively.

The Net realized and unrealized gains (losses) included in income or Other comprehensive income (loss) as shown in the table above excludes $17 million and $41 million of net gains related to assets and liabilities transferred into Level 3 during the three- and nine-month periods ended September 30, 2018, respectively, and includes $2 million and $(20) million of net gains (losses) related to assets and liabilities transferred out of Level 3 during the three- and nine-month periods ended September 30, 2018, respectively.

Transfers of Level 3 Assets

During the three- and nine-month periods ended September 30, 2019 and 2018, 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 diminished market transparency and liquidity for individual security types.

During the three- and nine-month periods ended September 30, 2019 and 2018, 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 three- and nine-month periods ended September 30, 2019 and 2018.

QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS

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

	Fair Value at
	September 30,		Valuation		Range
(in millions)	2019		Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states, municipalities
and political subdivisions	$	1,590	Discounted cash flow	Yield	3.12% - 3.74% (3.43%)

Corporate debt		781	Discounted cash flow	Yield	2.95% - 7.03% (4.99%)

RMBS^(a)		12,350	Discounted cash flow	Constant prepayment rate	3.87% - 12.23% (8.05%)
				Loss severity	36.65% - 78.25% (57.45%)
				Constant default rate	1.81% - 6.41% (4.11%)
				Yield	2.29% - 4.47% (3.38%)

CDO/ABS^(a)		5,903	Discounted cash flow	Yield	2.73% - 4.75% (3.74%)

CMBS		499	Discounted cash flow	Yield	2.48% - 4.82% (3.65%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

Guaranteed minimum withdrawal benefits (GMWB)		3,168	Discounted cash flow	Equity volatility	6.15% - 48.65%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	50.00% - 143.00%
				Mortality multiplier^(c)	38.00% - 155.00%
				Utilization	90.00% - 100.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		3,470	Discounted cash flow	Lapse rate	0.31% - 50.00%
				Mortality multiplier^(c)	24.00% - 180.00%
				Option Budget	1.00% - 4.00%

Indexed Life		502	Discounted cash flow	Base lapse rate	0.00% - 37.97%
				Mortality rate	0.00% - 100.00%


		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:

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%

(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.

(c)Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table.

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 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.

		September 30, 2019				December 31, 2018
			Fair Value			Fair Value
			Using NAV			Using NAV
			Per Share (or		Unfunded	Per Share (or			Unfunded
(in millions)	Investment Category Includes		its equivalent)		Commitments	its equivalent)			Commitments
Investment Category
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	1,152	$	1,326	$	847	$	1,327

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		341		387		190		83

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		102		122		126		127

Growth Equity	Funds that make investments in established companies for the purpose of growing their businesses		411		72		362		28

Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		341		472		211		75

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		739		249		514		307
Total private equity funds			3,086		2,628		2,250		1,947
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		753		-		787		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		548		-		863		-

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		848		-		887		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		1		-		21		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		162		1		158		1
Total hedge funds			2,312		1		2,716		9
Total		$	5,398	$	2,629	$	4,966	$	1,956

Private equity fund investments included above are not redeemable, because distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one or two-year increments. At September 30, 2019, assuming average original expected lives of 10 years for the funds, 15 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, 40 percent between four and six years and 45 percent between seven and 10 years.

The hedge fund investments included above, which are carried at fair value, are generally redeemable subject to the redemption notices period.

Fair Value Option

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

	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
(in millions)		2019		2018		2019		2018
Assets:
Bond and equity securities	$	333	$	122	$	971	$	274
Alternative investments^(a)		92		131		473		355
Liabilities:
Long-term debt^(b)		(75)		6		(228)		74
Total gain	$	350	$	259	$	1,216	$	703

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

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

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. We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, our observable credit spreads on these liabilities and other factors that mitigate the risk of nonperformance such as cash collateral posted.

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

	September 30, 2019						December 31, 2018
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Liabilities:
Long-term debt^*	$	2,287	$	1,652	$	635	$	2,213	$	1,653	$	560

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

FAIR VALUE MEASUREMENTS ON A NON-RECURRING BASIS

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

	Assets at Fair Value								Impairment Charges
	Non-Recurring Basis								Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	Level 1		Level 2		Level 3			Total		2019		2018		2019		2018
September 30, 2019
Other investments	$	-	$	-	$	253	$	253	$	7	$	-	$	65	$	89
Other assets		-		-		1		1		45		34		62		35
Total	$	-	$	-	$	254	$	254	$	52	$	34	$	127	$	124
December 31, 2018
Other investments	$	-	$	-	$	315	$	315
Other assets		-		-		11		11
Total	$	-	$	-	$	326	$	326

FAIR VALUE INFORMATION ABOUT FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE

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
September 30, 2019
Assets:
Mortgage and other loans receivable	$	-	$	104	$	47,682	$	47,786	$	45,075
Other invested assets		-		707		6		713		714
Short-term investments		-		8,536		-		8,536		8,536
Cash		3,361		-		-		3,361		3,361
Other assets		208		137		-		345		345
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		267		135,346		135,613		126,011
Other liabilities		-		2,787		-		2,787		2,787
Long-term debt		-		26,223		9,113		35,336		32,975
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

VARIABLE INTEREST ENTITIES

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

+ References + Details

INVESTMENTS

9 Months Ended

Sep. 30, 2019

INVESTMENTS

INVESTMENTS

6. Investments

Securities Available for Sale

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

										Other-Than-
		Amortized		Gross		Gross				Temporary
		Cost or		Unrealized		Unrealized		Fair		Impairments
(in millions)		Cost		Gains		Losses		Value		in AOCI^(a)
September 30, 2019
Bonds available for sale:
U.S. government and government sponsored entities	$	4,727	$	501	$	(1)	$	5,227	$	-
Obligations of states, municipalities and political subdivisions		14,122		1,640		(17)		15,745		-
Non-U.S. governments		14,456		999		(79)		15,376		-
Corporate debt		138,950		12,956		(534)		151,372		9
Mortgage-backed, asset-backed and collateralized:
RMBS		29,513		3,344		(62)		32,795		1,222
CMBS		13,577		771		(12)		14,336		34
CDO/ABS		18,000		449		(79)		18,370		17
Total mortgage-backed, asset-backed and collateralized		61,090		4,564		(153)		65,501		1,273
Total bonds available for sale^(b)	$	233,345	$	20,660	$	(784)	$	253,221	$	1,282
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^(b)	$	225,780	$	8,419	$	(4,808)	$	229,391	$	1,211

(a)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.

(b)At September 30, 2019 and December 31, 2018, bonds available for sale held by us that were below investment grade or not rated totaled $28.0 billion and $28.8 billion, respectively.

Securities Available for Sale in a Loss Position

The following table summarizes the fair value and gross unrealized losses on our available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position:

	Less than 12 Months				12 Months or More				Total
				Gross				Gross				Gross
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in millions)		Value		Losses		Value		Losses		Value		Losses
September 30, 2019
Bonds available for sale:
U.S. government and government sponsored entities	$	136	$	1	$	43	$	-	$	179	$	1
Obligations of states, municipalities and political
subdivisions		383		6		256		11		639		17
Non-U.S. governments		919		27		443		52		1,362		79
Corporate debt		8,794		294		3,244		240		12,038		534
RMBS		2,671		23		1,778		39		4,449		62
CMBS		640		4		343		8		983		12
CDO/ABS		3,979		51		1,892		28		5,871		79
Total bonds available for sale	$	17,522	$	406	$	7,999	$	378	$	25,521	$	784
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

At September 30, 2019, we held 5,266 individual fixed maturity securities that were in an unrealized loss position, of which 1,361 individual fixed maturity securities were in a continuous unrealized loss position for 12 months or more. We did not recognize the unrealized losses in earnings on these fixed maturity securities at September 30, 2019 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
September 30, 2019
Due in one year or less	$	10,910	$	11,107	$	1,373	$	1,339
Due after one year through five years		45,243		46,583		5,878		5,631
Due after five years through ten years		43,042		45,877		3,947		3,756
Due after ten years		73,060		84,153		3,651		3,492
Mortgage-backed, asset-backed and collateralized		61,090		65,501		11,456		11,303
Total	$	233,345	$	253,221	$	26,305	$	25,521
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

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.

The following table presents the gross realized gains and gross realized losses from sales or maturities of our available for sale securities:

	Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018			2019					2018
		Gross		Gross		Gross		Gross		Gross		Gross		Gross		Gross
	Realized		Realized		Realized		Realized		Realized		Realized		Realized		Realized
(in millions)		Gains		Losses		Gains		Losses		Gains		Losses		Gains		Losses
Fixed maturity securities	$	198	$	70	$	82	$	71	$	464	$	280	$	252	$	244
Equity securities		-		-		-		-		-		-		16		-
Total	$	198	$	70	$	82	$	71	$	464	$	280	$	268	$	244

For the three- and nine-month periods ended September 30, 2019, the aggregate fair value of available for sale securities sold was $4.5 billion and $17.3 billion, respectively, which resulted in net realized capital gains of $128 million and $184 million, respectively.

For the three- and nine-month periods ended September 30, 2018, the aggregate fair value of available for sale securities sold was $6.0 billion and $18.1 billion, respectively, which resulted in net realized capital gains of $11 million and $24 million, respectively.

Other Securities Measured at Fair Value

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

		September 30, 2019				December 31, 2018
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	2,296	25	%	$	2,665	21	%
Non-U.S. governments		-	-			45	-
Corporate debt		18	-			1,671	13
Mortgage-backed, asset-backed and collateralized:
RMBS		1,297	14			1,714	14
CMBS		403	5			388	3
CDO/ABS and other collateralized^*		4,313	47			4,932	39
Total mortgage-backed, asset-backed and collateralized		6,013	66			7,034	56
Total fixed maturity securities		8,327	91			11,415	90
Equity securities		771	9			1,253	10
Total	$	9,098	100	%	$	12,668	100	%

*There were no U.S. government agency-backed ABS at September 30, 2019. Includes $178 million of U.S. government agency-backed ABS at December 31, 2018.

Other Invested Assets

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

		September 30,		December 31,
(in millions)		2019		2018
Alternative investments^{(a) (b)}	$	8,532	$	8,966
Investment real estate^(c)		9,491		8,935
All other investments		1,463		1,440
Total	$	19,486	$	19,341

(a)At September 30, 2019, included hedge funds of $3.5 billion, private equity funds of $4.7 billion and affordable housing partnerships of $336 million. 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.

(b)At September 30, 2019, approximately 70 percent of our hedge fund portfolio is available for redemption in 2019. The remaining 30 percent will be available for redemption between 2020 and 2027.

(c)Net of accumulated depreciation of $710 million and $598 million at September 30, 2019 and December 31, 2018, respectively.

Net Investment Income

The following table presents the components of Net investment income:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Available for sale fixed maturity securities, including short-term investments	$	2,698	$	2,629	$	8,052	$	7,775
Other fixed maturity securities^(a)		333		60		941		29
Equity securities		(51)		(21)		6		(50)
Interest on mortgage and other loans		495		455		1,511		1,352
Alternative investments^(b)		115		329		879		837
Real estate		96		72		227		133
Other investments^(a)		(143)		(13)		(203)		11
Total investment income		3,543		3,511		11,413		10,087
Investment expenses		135		115		381		365
Net investment income	$	3,408	$	3,396	$	11,032	$	9,722

(a)In the third quarter of 2019, we reclassified $96 million in net investment income of bonds recorded at fair value from Other investments to Other fixed maturity securities.

(b)Includes income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag.

Net Realized Capital Gains and Losses

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Sales of fixed maturity securities	$	128	$	11	$	184	$	8
Sales of equity securities		-		-		-		16
Other-than-temporary impairments:
Change in intent		-		(3)		(3)		(52)
Foreign currency declines		(6)		(1)		(15)		(13)
Issuer-specific credit events		(17)		(30)		(113)		(92)
Adverse projected cash flows		(1)		(1)		(6)		(1)
Provision for loan losses		(25)		(23)		(35)		(73)
Foreign exchange transactions		(203)		(21)		(242)		(155)
Variable annuity embedded derivatives, net of related hedges		311		(185)		10		(2)
All other derivatives and hedge accounting		466		(1)		601		149
Loss on sale of private equity funds		-		(311)		-		(311)
Other		276		54		506		161
Net realized capital gains (losses)	$	929	$	(511)	$	887	$	(365)

Change in Unrealized Appreciation (Depreciation) of Investments

The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	4,377	$	(920)	$	16,265	$	(8,858)
Other investments		-		(31)		(68)		(59)
Total increase (decrease) in unrealized appreciation (depreciation) of investments	$	4,377	$	(951)	$	16,197	$	(8,917)

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

Three Months Ended September 30,	2019						2018
				Other						Other
			Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	(51)	$	105	$	54	$	(13)	$	183	$	170
Less: Net gains and losses recognized during the period on equity
securities sold during the period		18		13		31		28		18		46
Unrealized gains and losses recognized during the reporting
period on equity securities still held at the reporting date	$	(69)	$	92	$	23	$	(41)	$	165	$	124

Nine Months Ended September 30,	2019						2018
				Other						Other
			Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	6	$	615	$	621	$	(41)	$	497	$	456
Less: Net gains and losses recognized during the period on equity
securities sold during the period		30		169		199		34		45		79
Unrealized gains and losses recognized during the reporting
period on equity securities still held at the reporting date	$	(24)	$	446	$	422	$	(75)	$	452	$	377

Evaluating Investments for Other-Than-Temporary Impairments

For a discussion of our policy for evaluating investments for other-than-temporary impairments see Note 6 to the Consolidated Financial Statements in the 2018 Annual Report.

Credit Impairments

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Balance, beginning of period	$	34	$	188	$	-	$	526
Increases due to:
Credit impairments on new securities subject to impairment losses		10		15		105		32
Additional credit impairments on previously impaired securities		8		16		14		61
Reductions due to:
Credit impaired securities fully disposed for which there was no
prior intent or requirement to sell		(3)		(12)		(62)		(143)
Accretion on securities previously impaired due to credit^*		(7)		(164)		(15)		(433)
Balance, end of period	$	42	$	43	$	42	$	43

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

Purchased Credit Impaired (PCI) Securities

We purchase certain RMBS securities that have experienced deterioration in credit quality since their issuance. We determine 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)	$	35,522
Cash flows expected to be collected^*		29,095
Recorded investment in acquired securities		19,648

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

(in millions)	September 30, 2019		December 31, 2018
Outstanding principal balance	$	11,016	$	12,495
Amortized cost		7,434		8,646
Fair value		9,171		10,280

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Balance, beginning of period	$	6,402	$	7,461	$	7,210	$	7,501
Newly purchased PCI securities		4		5		17		32
Accretion		(172)		(176)		(495)		(553)
Effect of changes in interest rate indices		(278)		15		(678)		189
Net reclassification from (to) non-accretable difference,
including effects of prepayments		(162)		93		(260)		229
Balance, end of period	$	5,794	$	7,398	$	5,794	$	7,398

Pledged Investments

Secured Financing and Similar Arrangements

We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value.

Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transactions. In the event of a decline in the fair value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements. At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively.

The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements:

(in millions)		September 30, 2019		December 31, 2018
Fixed maturity securities available for sale	$	2,781	$	1,050
Other bond securities, at fair value	$	-	$	122

At September 30, 2019 and December 31, 2018, amounts borrowed under repurchase and securities lending agreements totaled $2.8 billion and $1.2 billion, respectively.

The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity:

	Remaining Contractual Maturity of the Agreements
(in millions)	Overnight and Continuous			up to 30 days		31 - 90 days		91 - 364 days		365 days or greater		Total
September 30, 2019
Bonds available for sale:
Non-U.S. governments	$	64	$	61	$	-	$	-	$	-	$	125
Corporate debt		28		104		-		-		-		132
Other bond securities:
U.S. government and government sponsored entities		-		-		-		-		-		-
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		-		-		-		-		-
Total	$	92	$	165	$	-	$	-	$	-	$	257

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

The following table presents the fair value of securities pledged under our securities lending agreements by collateral type and by remaining contractual maturity:

	Remaining Contractual Maturity of the Agreements
(in millions)		Overnight and Continuous		up to 30 days		31 - 90 days		91 - 364 days		365 days or greater		Total
September 30, 2019
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	-	$	262	$	128	$	-	$	390
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		1,062		635		437		-		2,134
Total	$	-	$	1,062	$	897	$	565	$	-	$	2,524

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
Total	$	-	$	401	$	483	$	-	$	-	$	884

We also enter into agreements in which securities are purchased by us under agreements to resell (reverse repurchase agreements), which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms. These agreements are recorded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the right to sell or repledge this collateral received.

The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements:

(in millions)		September 30, 2019		December 31, 2018
Securities collateral pledged to us	$	2,075	$	426
Amount sold or repledged by us		35		106

At September 30, 2019 and December 31, 2018, amounts loaned under reverse repurchase agreements totaled $2.1 billion and $426 million, 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 $8.4 billion and $7.9 billion at September 30, 2019 and December 31, 2018, 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 $194 million and $202 million of stock in FHLBs at September 30, 2019 and December 31, 2018, 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 $4.6 billion and $1.9 billion, respectively, at September 30, 2019 and $4.2 billion and $2.1 billion, respectively, at December 31, 2018.

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 at both September 30, 2019 and December 31, 2018. 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, comprised of bonds available for sale and short term investments at both September 30, 2019 and December 31, 2018.

LENDING ACTIVITIES

9 Months Ended

Sep. 30, 2019

LENDING ACTIVITIES

LENDING ACTIVITIES

7. Lending Activities

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

	September 30,			December 31,
(in millions)		2019		2018
Commercial mortgages^*	$	34,954	$	32,882
Residential mortgages		6,525		6,532
Life insurance policy loans		2,096		2,147
Commercial loans, other loans and notes receivable		1,930		1,971
Total mortgage and other loans receivable		45,505		43,532
Allowance for credit losses		(430)		(397)
Mortgage and other loans receivable, net	$	45,075	$	43,135

*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 both September 30, 2019 and December 31, 2018).

Credit Quality of Commercial Mortgages

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

	Debt Service Coverage Ratios^(a)
(in millions)		>1.20X		1.00X - 1.20X		<1.00X		Total
September 30, 2019
Loan-to-Value Ratios^(b)
Less than 65%	$	20,822	$	2,771	$	173	$	23,766
65% to 75%		9,744		677		93		10,514
76% to 80%		173		19		13		205
Greater than 80%		182		143		144		469
Total commercial mortgages	$	30,921	$	3,610	$	423	$	34,954

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

(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 for both periods ended September 30, 2019 and December 31, 2018.

(b)The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 57 percent and 58 percent at September 30, 2019 and December 31, 2018, 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 $
September 30, 2019
Credit Quality Performance
Indicator:
In good standing	747	$	13,263	$	9,903	$	5,479	$	3,348	$	2,337	$	519	$	34,849	100	%
Restructured^(a)	2		-		90		-		-		15		-		105	-
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	749	$	13,263	$	9,993	$	5,479	$	3,348	$	2,352	$	519	$	34,954	100	%
Allowance for credit losses:
Specific		$	-	$	2	$	1	$	-	$	6	$	-	$	9	-	%
General			93		141		44		28		15		5		326	1
Total allowance for credit losses		$	93	$	143	$	45	$	28	$	21	$	5	$	335	1	%

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	%

(a)Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see Note 7 to the Consolidated Financial Statements in the 2018 Annual Report.

(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.

Allowance for Credit Losses

For a discussion of our accounting policy for evaluating Mortgage and other loans receivable for impairment see Note 7 to the Consolidated Financial Statements in the 2018 Annual Report.

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

Nine Months Ended September 30,	2019							2018
		Commercial			Other				Commercial			Other
(in millions)		Mortgages			Loans		Total		Mortgages			Loans		Total
Allowance, beginning of year	$	318		$	79	$	397	$	247		$	75	$	322
Loans charged off		(2)			-		(2)		(17)			-		(17)
Recoveries of loans previously charged off		-			-		-		-			-		-
Net charge-offs		(2)			-		(2)		(17)			-		(17)
Provision for loan losses		19			16		35		66			8		74
Allowance, end of period	$	335	*	$	95	$	430	$	296	*	$	83	$	379

*Of the total allowance, $10 million and $3 million relate to individually assessed credit losses on $151 million and $25 million of commercial mortgages at September 30, 2019 and 2018, respectively.

There were no loans modified in troubled debt restructurings during the nine-month period ended September 30, 2019. During the nine-month period ended September 30, 2018, loans with a carrying value of $15 million were modified in troubled debt restructurings.

VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2019

VARIABLE INTEREST ENTITIES

8. Variable Interest Entities

We enter into various arrangements with variable interest entities (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 Condensed Consolidated Balance Sheets:

		Real Estate and				Affordable
		Investment		Securitization		Housing
(in millions)		Entities^(d)		Vehicles^(e)		Partnerships		Other		Total
September 30, 2019
Assets:
Bonds available for sale	$	211	$	7,217	$	-	$	-	$	7,428
Other bond securities		-		3,641		-		-		3,641
Mortgage and other loans receivable		-		3,520		-		-		3,520
Other invested assets		5,774		-		3,518		33		9,325
Other^(a)		444		1,934		498		49		2,925
Total assets^(b)	$	6,429	$	16,312	$	4,016	$	82	$	26,839
Liabilities:
Long-term debt	$	3,194	$	3,720	$	2,121	$	4	$	9,039
Other^(c)		400		156		184		23		763
Total liabilities	$	3,594	$	3,876	$	2,305	$	27	$	9,802
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

(a) Comprised primarily of Short-term investments and Other assets at September 30, 2019 and December 31, 2018.

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

(d) At September 30, 2019 and December 31, 2018, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $2.7 billion and $1.4 billion, respectively.

(e) At September 30, 2019 and December 31, 2018, $15.5 billion and $16.0 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
September 30, 2019
Real estate and investment entities^(a)	$	278,064	$	6,537	$	3,553		$	10,090
Affordable housing partnerships		3,358		462		-			462
Other		5,387		326		-	^(c)		326
Total	$	286,809	$	7,325	$	3,553		$	10,878
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

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

(b) At September 30, 2019 and December 31, 2018, $7.0 billion and $7.4 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.

For additional information on VIEs see Note 10 to the Consolidated Financial Statements in the 2018 Annual Report.

DERIVATIVES AND HEDGE ACCOUNTING

9 Months Ended

Sep. 30, 2019

DERIVATIVES AND HEDGE ACCOUNTING

DERIVATIVES AND HEDGE ACCOUNTING

9. Derivatives and Hedge Accounting

We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations.

For a discussion of our accounting policies and procedures regarding derivatives and hedge accounting see Note 11 to the Consolidated Financial Statements in the 2018 Annual Report.

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 swaps) 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 and economically hedge certain investments. 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, credit default swaps (CDSs) and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds.

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

	September 30, 2019								December 31, 2018
	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	$	624	$	5	$	410	$	8	$	10	$	-	$	866	$	19
Foreign exchange contracts		6,614		558		2,212		78		6,357		363		2,536		147
Derivatives not designated
as hedging instruments:^(a)
Interest rate contracts		60,452		4,377		32,595		2,848		42,821		2,890		27,329		2,004
Foreign exchange contracts		11,360		1,104		6,469		862		11,134		801		5,434		711
Equity contracts		20,218		797		8,073		88		17,807		398		2,399		15
Credit contracts^(b)		44		1		943		121		8		1		1,406		236
Other contracts^(c)		40,804		15		58		8		39,070		15		58		6
Total derivatives, gross	$	140,116	$	6,857	$	50,760	$	4,013	$	117,207	$	4,468	$	40,028	$	3,138
Counterparty netting^(d)				(2,795)				(2,795)				(1,713)				(1,713)
Cash collateral^(e)				(2,937)				(133)				(1,840)				(187)
Total derivatives on condensed
consolidated balance sheets^(f)			$	1,125			$	1,085			$	915			$	1,238

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

(b)As of September 30, 2019 and December 31, 2018, included CDSs on super senior multi-sector CDOs with a net notional amount of $160 million and $592 million (fair value liability of $91 million and $224 million), respectively. The net notional amount represents the maximum exposure to loss on the portfolio.

(c)Consists primarily of stable value wraps and contracts with multiple underlying exposures.

(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 September 30, 2019 and December 31, 2018. Fair value of liabilities related to bifurcated embedded derivatives was $7.2 billion and $4.1 billion, respectively, at September 30, 2019 and December 31, 2018. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components.

Collateral

We engage in derivative transactions that are not subject to a clearing requirement directly with unaffiliated third parties, in most cases, under International Swaps and Derivatives Association, Inc. (ISDA) Master Agreements. Many of the ISDA Master Agreements also include Credit Support Annex 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 $1.9 billion at September 30, 2019 and $1.7 billion at December 31, 2018. 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 $3.3 billion and $2.1 billion at September 30, 2019 and December 31, 2018, respectively. In the case of collateral provided to us under derivative transactions that are not subject to clearing, we generally can repledge or resell collateral.

Offsetting

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

Hedge Accounting

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

We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.S. dollar functional currency foreign subsidiaries. For net investment hedge relationships where issued debt is used as a hedging instrument, we assess the hedge effectiveness and measure the amount of ineffectiveness based on changes in spot rates. For net investment hedge relationships that use derivatives as hedging instruments, we assess hedge effectiveness and measure hedge ineffectiveness using changes in forward rates. For the three- and nine-month periods ended September 30, 2019, we recognized gains of $89 million and $146 million, respectively, and for the three- and nine-month periods ended September 30, 2018, we recognized gains of $28 million and $27 million, respectively, included in Change in foreign currency translation adjustment in Other comprehensive income related to the net investment hedge relationships.

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

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

	Gains/(Losses) Recognized in Earnings for:
	Hedging		Excluded		Hedged
(in millions)	Derivatives^(a)		Components^(b)		Items		Net Impact
Three Months Ended September 30, 2019
Interest rate contracts:
Realized capital gains/(losses)	$	-	$	-	$	-	$	-
Interest credited to policyholder account balances		4		-		(4)		-
Net investment income		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		228		41		(228)		41
Three Months Ended September 30, 2018
Interest rate contracts:
Realized capital gains/(losses)	$	(1)	$	-	$	1	$	-
Interest credited to policyholder account balances		-		-		-		-
Net investment income		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		(16)		5		16		5
Nine Months Ended September 30, 2019
Interest rate contracts:
Realized capital gains/(losses)	$	-	$	-	$	-	$	-
Interest credited to policyholder account balances		18		-		(18)		-
Net investment income		(1)		-		1		-
Foreign exchange contracts:
Realized capital gains/(losses)		278		84		(278)		84
Nine Months Ended September 30, 2018
Interest rate contracts:
Realized capital gains/(losses)	$	(9)	$	-	$	10	$	1
Interest credited to policyholder account balances		-		-		-		-
Net investment income		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		175		9		(175)		9

(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness.

(b)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in earnings on a mark-to-market basis.

Derivatives Not Designated as Hedging Instruments

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

	Gains (Losses) Recognized in Earnings
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
By Derivative Type:
Interest rate contracts	$	1,078	$	(270)	$	2,052	$	(892)
Foreign exchange contracts		342		43		545		295
Equity contracts		96		(199)		(23)		(386)
Credit contracts		26		6		35		18
Other contracts		14		18		48		52
Embedded derivatives		(756)		229		(2,037)		1,164
Total	$	800	$	(173)	$	620	$	251
By Classification:
Policy fees	$	16	$	17	$	51	$	51
Net investment income		(3)		-		(58)		(3)
Net realized capital gains (losses)		780		(223)		611		133
Other income		-		35		-		76
Policyholder benefits and claims incurred		7		(2)		16		(6)
Total	$	800	$	(173)	$	620	$	251

CREDIT RISK-RELATED CONTINGENT FEATURES

We estimate that at September 30, 2019, 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 $65 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 $391 million and $423 million at September 30, 2019 and December 31, 2018, respectively. The aggregate fair value of assets posted as collateral under these contracts at September 30, 2019 and December 31, 2018, was approximately $408 million and $453 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 Condensed Consolidated Balance Sheets. The fair values of these hybrid securities were $3.7 billion and $3.9 billion at September 30, 2019 and December 31, 2018, respectively. These securities have par amounts of $8.1 billion and $8.5 billion at September 30, 2019 and December 31, 2018, respectively, and have remaining stated maturity dates that extend to 2052.

INSURANCE LIABILITIES

9 Months Ended

Sep. 30, 2019

Insurance Liabilites

INSURANCE LIABILITIES

10. 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 (IBNR) and loss adjustment expenses (LAE), 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, except to the extent such adjustment impacts a deferred gain under a retroactive reinsurance agreement, in which case the ceded portion would be amortized into pre-tax income in subsequent periods. 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 $12.4 billion and $12.3 billion at September 30, 2019 and December 31, 2018, 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 September 30, 2019 and December 31, 2018, we held collateral of approximately $9.0 billion and $9.2 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:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Liability for unpaid loss and loss adjustment expenses, beginning of period	$	81,057	$	76,713	$	83,639	$	78,393
Reinsurance recoverable		(31,333)		(27,406)		(31,690)		(26,708)
Net Liability for unpaid loss and loss adjustment expenses, beginning of period		49,724		49,307		51,949		51,685
Losses and loss adjustment expenses incurred:
Current year		5,150		6,670		14,750		15,800
Prior years, excluding discount and amortization of deferred gain		(74)		949		(221)		884
Prior years, discount charge (benefit)		276		3		1,017		(174)
Prior years, amortization of deferred gain on retroactive reinsurance^(a)		13		(175)		(129)		(283)
Total losses and loss adjustment expenses incurred		5,365		7,447		15,417		16,227
Losses and loss adjustment expenses paid:
Current year		(1,702)		(1,791)		(3,194)		(3,289)
Prior years		(4,652)		(4,526)		(15,334)		(14,312)
Total losses and loss adjustment expenses paid		(6,354)		(6,317)		(18,528)		(17,601)
Other changes:
Foreign exchange effect		(172)		(236)		(165)		(393)
Acquisitions^(b)		-		3,020		-		3,020
Retroactive reinsurance adjustment (net of discount)^(c)		96		(464)		(14)		(181)
Total other changes		(76)		2,320		(179)		2,446
Liability for unpaid loss and loss adjustment expenses, end of period:
Net liability for unpaid losses and loss adjustment expenses		48,659		52,757		48,659		52,757
Reinsurance recoverable		31,224		29,202		31,224		29,202
Total	$	79,883	$	81,959	$	79,883	$	81,959

(a) Includes $6 million and $9 million for the retroactive reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc. (Berkshire), covering U.S. asbestos exposures for the three-month periods ended September 30, 2019 and 2018, respectively, and $21 million and $22 million for the nine-month periods ended September 30, 2019 and 2018, respectively.

(b) Amounts relate to the acquisition of Validus in July 2018.

(c) Includes change in discount on retroactive reinsurance of $(43) million and $46 million for the three-month periods ended September 30, 2019 and 2018, respectively, and $(475) million and $154 million for the nine-month periods ended September 30, 2019 and 2018, respectively.

On January 20, 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 paid losses on subject business paid on or after January 1, 2016 in excess of $25 billion of net paid losses, up to an aggregate limit of $25 billion. At NICO’s 80 percent share, NICO’s limit of liability under the contract is $20 billion. We account for this transaction as retroactive reinsurance. We paid total consideration, including interest, of $10.2 billion. The consideration was placed into a collateral trust account as security for NICO’s claim payment obligations, and Berkshire has provided a parental guarantee to secure the obligations of NICO under the agreement. The total paid claims subject to the agreement as of September 30, 2019 were below the attachment point.

Discounting of Loss Reserves

At September 30, 2019 and December 31, 2018, the loss reserves reflect a net loss reserve discount of $1.6 billion and $2.0 billion, respectively, including tabular and non-tabular calculations based upon the following assumptions:

The discount for asbestos reserves has been fully amortized.

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

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

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

At September 30, 2019 and December 31, 2018, the discount consists of $505 million and $603 million of tabular discount, respectively, and $1.1 billion and $1.4 billion of non-tabular discount for workers’ compensation, respectively. During the nine-month periods ended September 30, 2019 and 2018, the benefit (charge) from changes in discount of $(920) million and $305 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:

	September 30, 2019						December 31, 2018
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio		Total	Insurance			Portfolio		Total
U.S. workers' compensation	$	2,138	$	698	$	2,836	$	2,782	$	973	$	3,755
Retroactive reinsurance		(1,246)		-		(1,246)		(1,720)		-		(1,720)
Total reserve discount^*	$	892	$	698	$	1,590	$	1,062	$	973	$	2,035

*Excludes $161 million and $163 million of discount related to certain long tail liabilities in the United Kingdom at September 30, 2019 and December 31, 2018, respectively.

The following tables present the net loss reserve discount benefit (charge):

Three Months Ended September 30,	2019						2018
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio		Total	Insurance			Portfolio		Total
Current accident year	$	41	$	-	$	41	$	89	$	-	$	89
Accretion and other adjustments
to prior year discount		(26)		(56)		(82)		(7)		(12)		(19)
Effect of interest rate changes		(136)		(58)		(194)		13		3		16
Net reserve discount
benefit (charge)		(121)		(114)		(235)		95		(9)		86
Change in discount on loss reserves
ceded under retroactive reinsurance		43		-		43		(46)		-		(46)
Net change in total reserve
discount^(a)	$	(78)	$	(114)	$	(192)	$	49	$	(9)	$	40

Nine Months Ended September 30,	2019						2018
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio		Total	Insurance			Portfolio		Total
Current accident year	$	97	$	-	$	97	$	131	$	-	$	131
Accretion and other adjustments
to prior year discount		(269)		(80)		(349)		(95)		(42)		(137)
Effect of interest rate changes		(473)		(195)		(668)		232		79		311
Net reserve discount
benefit (charge)		(645)		(275)		(920)		268		37		305
Change in discount on loss reserves
ceded under retroactive reinsurance		475		-		475		(154)		-		(154)
Net change in total reserve
discount^(b)	$	(170)	$	(275)	$	(445)	$	114	$	37	$	151

(a) Excludes $(27) million and $12 million discount related to certain long tail liabilities in the United Kingdom for the three-month periods ended September 30, 2019 and 2018, respectively.

(b) Excludes $(1) million and $10 million discount related to certain long tail liabilities in the United Kingdom for the nine-month periods ended September 30, 2019 and 2018, respectively.

During the three- and nine- month period ended September 30, 2019, effective interest rates declined due to a decrease in the forward yield curve component of the discount rates. This decrease reflects a decline in U.S. Treasury rates. The decrease together with certain changes in payout pattern assumptions resulted in a decrease in the loss reserve discount of $276 million and $1.0 billion in the three- and nine- month period ended September 30, 2019, respectively.

During the three- and nine-month period ended September 30, 2018, effective interest rates increased due to an increase in the forward yield curve component of the discount rates. This increase reflected an increase in U.S. Treasury rates. The increase together with changes in payout pattern assumptions resulted in a (decrease)/increase in the loss reserve discount of $(3) million and $174 million in the three- and nine- month period ended September 30, 2018, respectively.

CONTINGENCIES, COMMITMENTS AND GUARANTEES

9 Months Ended

Sep. 30, 2019

CONTINGENCIES, COMMITMENTS AND GUARANTEES

CONTINGENCIES, COMMITMENTS AND GUARANTEES

11. 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 as 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. Such investigations, inquiries or examinations could develop into administrative, civil or criminal proceedings or enforcement actions, in which remedies could include fines, penalties, restitution or alterations in our business practices, and could result in additional expenses, limitations on certain business activities and reputational damage. For example, among other matters, we are currently responding to governmental investigations and examinations pertaining to certain sales and compensation practices and payments and related disclosures in connection with financial planning services and the sale and distribution of related products, including 403(b) and similar retirement plans, by the Individual and Group Retirement business segments. We have cooperated, and will continue to cooperate, in producing documents and other information with respect to these matters.

Tax Litigation

We are party to pending tax litigation before the Southern District of New York. For additional information see Note 15 to the Condensed Consolidated Financial Statements.

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 $7.8 billion at September 30, 2019.

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 AIG Financial Products Corp. and related subsidiaries (collectively AIGFP) and of AIG Markets, Inc. (AIG Markets) arising from transactions entered into by AIG Markets.

In connection with AIGFP’s business activities, AIGFP has issued, in a limited number of transactions, standby letters of credit or similar facilities to equity investors of structured leasing transactions in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at September 30, 2019 was $81 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 Condensed Consolidated Balance Sheets.

Other

For additional discussion on commitments and guarantees associated with VIEs see Note 8.

For additional disclosures about derivatives see Note 9.

For additional disclosures about guarantees of outstanding debt of AIG Life Holdings, Inc. (AIGLH), see Note 16.

EQUITY

9 Months Ended

Sep. 30, 2019

EQUITY

EQUITY

12. Equity

Shares Outstanding

Preferred Stock

On March 14, 2019, we issued 20,000 shares of 5.85% Series A Non-Cumulative Preferred Stock (Series A Preferred Stock) (equivalent to 20,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of Series A Preferred Stock), $5.00 par value and $25,000 liquidation preference per share (equivalent to $25 per Depositary Share). After underwriting discounts and expenses, we received net proceeds of approximately $485 million.

We may redeem the Series A Preferred Stock at our option, (a) in whole, but not in part, at any time prior to March 15, 2024, within 90 days after the occurrence of a “Rating Agency Event,” at a redemption price equal to $25,500 per share of the Series A Preferred Stock (equivalent to $25.50 per Depositary Share), plus an amount equal to any dividends per share that have been declared but not paid prior to the redemption date (but no amount due in respect of any dividends that have not been declared prior to such date), or (b) (i) in whole, but not in part, at any time prior to March 15, 2024, within 90 days after the occurrence of a “Regulatory Capital Event,” or (ii) in whole or in part, from time to time, on or after March 15, 2024, in each case, at a redemption price equal to $25,000 per share of the Series A Preferred Stock (equivalent to $25.00 per Depositary Share), plus an amount equal to any dividends per share that have been declared but not paid prior to the redemption date (but no amount due in respect of any dividends that have not been declared prior to such date).

A “Rating Agency Event” is generally defined to mean that any nationally recognized statistical rating organization within the meaning of Section 3(a)(62) of the Exchange Act that then publishes a rating for us amends, clarifies or changes the criteria it uses to assign equity credit to securities such as the Series A Preferred Stock, which amendment, clarification or change results in the shortening of the length of time the Series A Preferred Stock is assigned a particular level of equity credit by that rating agency as compared to the length of time it would have been assigned that level of equity credit by that rating agency or its predecessor on the initial issuance of the Series A Preferred Stock, or the lowering of the equity credit (including up to a lesser amount) assigned to the Series A Preferred Stock by that rating agency as compared to the equity credit assigned by that rating agency or its predecessor on the initial issuance of the Series A Preferred Stock. A “Regulatory Capital Event” is generally defined to mean our good faith determination that as a result of a change in law, rule or regulation, or a proposed change or an official judicial or administrative pronouncement, there is more than an insubstantial risk that the full liquidation preference of the Series A Preferred Stock would not qualify as capital (or a substantially similar concept) for purposes of any group capital standard to which we are or will be subject.

Holders of the Series A Preferred Stock will be entitled to receive dividend payments only when, as and if declared by our board of directors (or a duly authorized committee of the board). Dividends will be payable from the original date of issue at a rate of 5.85% per annum, payable quarterly, in arrears, on the fifteenth day of March, June, September and December of each year, beginning on June 15, 2019. Dividends on the Series A Preferred Stock will be non-cumulative.

On May 21, 2019, our Board of Directors declared a cash dividend of $369.6875 per share on AIG’s Series A Preferred Stock. Holders of depositary shares each representing a 1/1,000th interest in a share of Series A Preferred Stock received $0.3696875 per depositary share. The dividend was paid on June 17, 2019 to holders of record at the close of business on May 31, 2019.

On August 7, 2019, our Board of Directors declared a cash dividend of $365.625 per share on AIG’s Series A Preferred Stock. Holders of depositary shares each representing a 1/1,000th interest in a share of Series A Preferred Stock received $0.365625 per depositary share. The dividend was paid on September 16, 2019 to holders of record at the close of business on August 30, 2019.

In the event of any liquidation, dissolution or winding-up of the affairs of AIG, whether voluntary or involuntary, before any distribution or payment out of our assets may be made to or set aside for the holders of any junior stock, holders of the Series A Preferred Stock will be entitled to receive out of our assets legally available for distribution to our stockholders, an amount equal to $25,000 per share of Series A Preferred Stock (equivalent to $25.00 per Depositary Share), together with an amount equal to all declared and unpaid dividends (if any), but no amount in respect of any undeclared dividends prior to such payment date. Distributions will be made only to the extent of our assets that are available for distribution to stockholders (i.e., after satisfaction of all our liabilities to creditors, if any).

The Series A Preferred Stock does not have voting rights, except in limited circumstances, including in the case of certain dividend non-payments.

Common Stock

The following table presents a rollforward of outstanding shares:

Nine Months Ended September 30, 2019	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Shares, beginning of year	1,906,671,492	(1,040,062,063)	866,609,429
Shares issued	-	3,339,817	3,339,817
Shares repurchased	-	-	-
Shares, end of period	1,906,671,492	(1,036,722,246)	869,949,246

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 payment of dividends is also subject to the terms of AIG’s outstanding Series A Preferred Stock, pursuant to which no dividends may be declared or paid on any AIG Common Stock unless the full dividends for the latest completed dividend period on all outstanding shares of Series A Preferred Stock have been declared and paid or provided for.

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 Common Share
August 7, 2019	September 17, 2019	September 30, 2019	$	0.32
May 6, 2019	June 14, 2019	June 28, 2019		0.32
February 13, 2019	March 15, 2019	March 29, 2019		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

For a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries see Note 19 to the Consolidated Financial Statements in the 2018 Annual Report.

Repurchase of AIG Common Stock

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

Nine Months Ended September 30,
(in millions)		2019		2018
Aggregate repurchases of common stock	$	-	$	994
Total number of common shares repurchased		-		18
Aggregate repurchases of warrants	$	-	$	6
Total number of warrants repurchased^*		-		-

*For the nine-month period ended September 30, 2019, we did not repurchase any warrants to purchase shares of AIG Common Stock. For the nine-month period ended September 30, 2018, we repurchased 366,253 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 February 13, 2019, our Board of Directors authorized an additional increase of approximately $1.5 billion to its previous share repurchase authorization. As of September 30, 2019, $2.0 billion remained under our share repurchase authorization. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise (including through the purchase of warrants). Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans.

We did not repurchase any shares of AIG Common Stock during the nine-month period ended September 30, 2019. 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. The repurchase of AIG Common Stock is also subject to the terms of AIG’s outstanding Series A Preferred Stock, pursuant to which AIG may not (other than in limited circumstances) purchase, redeem or otherwise acquire AIG Common Stock unless the full dividends for the latest completed dividend period on all outstanding shares of Series A Preferred Stock have been declared and paid or provided for.

Accumulated Other Comprehensive INCOME (LOSS)

The following table presents a rollforward of 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, June 30, 2019, net of tax	$	720	$	8,034	$	(2,692)	$	(1,079)	$	8	$	4,991
Change in unrealized appreciation (depreciation) of
investments		(9)		4,386		-		-		-		4,377
Change in deferred policy acquisition costs
adjustment and other		11		(522)		-		-		-		(511)
Change in future policy benefits		-		(3,042)		-		-		-		(3,042)
Change in foreign currency translation adjustments		-		-		(24)		-		-		(24)
Change in net actuarial loss		-		-		-		13		-		13
Change in prior service credit		-		-		-		(1)		-		(1)
Change in deferred tax liability		(4)		(166)		(10)		(5)		-		(185)
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		1		1
Total other comprehensive income (loss)		(2)		656		(34)		7		1		628
Noncontrolling interests		-		5		(1)		-		-		4
Balance, September 30, 2019, net of tax	$	718	$	8,685	$	(2,725)	$	(1,072)	$	9	$	5,615

Balance, December 31, 2018, net of tax	$	(38)	$	2,426	$	(2,725)	$	(1,086)	$	10	$	(1,413)
Change in unrealized appreciation of investments		935		15,262		-		-		-		16,197
Change in deferred policy acquisition costs
adjustment and other		(3)		(2,246)		-		-		-		(2,249)
Change in future policy benefits		-		(5,291)		-		-		-		(5,291)
Change in foreign currency translation adjustments		-		-		31		-		-		31
Change in net actuarial loss		-		-		-		29		-		29
Change in prior service credit		-		-		-		(2)		-		(2)
Change in deferred tax liability		(176)		(1,447)		(30)		(13)		-		(1,666)
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		(1)		(1)
Total other comprehensive income (loss)		756		6,278		1		14		(1)		7,048
Noncontrolling interests		-		19		1		-		-		20
Balance, September 30, 2019, net of tax	$	718	$	8,685	$	(2,725)	$	(1,072)	$	9	$	5,615

		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, June 30, 2018, net of tax	$	(234)	$	3,944	$	(2,426)	$	(1,062)	$	8	$	230
Cumulative effect of change in accounting
principles		-		-		-		-		-		-
Change in unrealized appreciation (depreciation) of
investments		350		(1,301)		-		-		-		(951)
Change in deferred policy acquisition costs
adjustment and other		(205)		216		-		-		-		11
Change in future policy benefits		-		340		-		-		-		340
Change in foreign currency translation adjustments		-		-		(131)		-		-		(131)
Change in net actuarial loss		-		-		-		16		-		16
Change in prior service cost		-		-		-		-		-		-
Change in deferred tax asset (liability)		(38)		(13)		2		(2)		-		(51)
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		-		-
Total other comprehensive income (loss)		107		(758)		(129)		14		-		(766)
Noncontrolling interests		-		-		-		-		-		-
Balance, September 30, 2018, net of tax	$	(127)	$	3,186	$	(2,555)	$	(1,048)	$	8	$	(536)

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		(1,258)		(7,659)		-		-		-		(8,917)
Change in deferred policy acquisition costs
adjustment and other		(91)		1,121		-		-		-		1,030
Change in future policy benefits		-		1,464		-		-		-		1,464
Change in foreign currency translation adjustments		-		-		(154)		-		-		(154)
Change in net actuarial loss		-		-		-		54		-		54
Change in prior service credit		-		-		-		(2)		-		(2)
Change in deferred tax asset (liability)		260		852		(27)		14		-		1,099
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		1		1
Total other comprehensive income (loss)		(1,089)		(4,222)		(181)		66		1		(5,425)
Noncontrolling interests		-		-		-		-		-		-
Balance, September 30, 2018, net of tax	$	(127)	$	3,186	$	(2,555)	$	(1,048)	$	8	$	(536)

The following table presents the other comprehensive income reclassification adjustments for the three- and nine-month periods ended September 30, 2019 and 2018, respectively:

		Unrealized Appreciation
		(Depreciation) of Fixed								Fair Value of
		Maturity Investments		Unrealized						Liabilities Under
		on Which Other-Than-		Appreciation		Foreign		Retirement		Fair Value Option
		Temporary Credit		(Depreciation)		Currency		Plan		Attributable to
		Impairments Were		of All Other		Translation		Liabilities		Changes in
(in millions)		Recognized		Investments		Adjustments		Adjustment		Own Credit Risk		Total
Three Months Ended September 30, 2019
Unrealized change arising during period	$	3	$	949	$	(24)	$	3	$	1	$	932
Less: Reclassification adjustments
included in net income		1		127		-		(9)		-		119
Total other comprehensive income (loss),
before income tax expense		2		822		(24)		12		1		813
Less: Income tax expense		4		166		10		5		-		185
Total other comprehensive income (loss),
net of income tax expense	$	(2)	$	656	$	(34)	$	7	$	1	$	628
Three Months Ended September 30, 2018
Unrealized change arising during period	$	146	$	(705)	$	(131)	$	7	$	-	$	(683)
Less: Reclassification adjustments
included in net income		1		40		-		(9)		-		32
Total other comprehensive income (loss),
before income tax expense (benefit)		145		(745)		(131)		16		-		(715)
Less: Income tax expense (benefit)		38		13		(2)		2		-		51
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	107	$	(758)	$	(129)	$	14	$	-	$	(766)
Nine Months Ended September 30, 2019
Unrealized change arising during period	$	929	$	7,912	$	31	$	3	$	(1)	$	8,874
Less: Reclassification adjustments
included in net income		(3)		187		-		(24)		-		160
Total other comprehensive income (loss),
before income tax expense		932		7,725		31		27		(1)		8,714
Less: Income tax expense		176		1,447		30		13		-		1,666
Total other comprehensive income (loss),
net of income tax expense	$	756	$	6,278	$	1	$	14	$	(1)	$	7,048
Nine Months Ended September 30, 2018
Unrealized change arising during period	$	(1,344)	$	(5,055)	$	(154)	$	26	$	1	$	(6,526)
Less: Reclassification adjustments
included in net income		5		19		-		(26)		-		(2)
Total other comprehensive income (loss),
before income tax expense (benefit)		(1,349)		(5,074)		(154)		52		1		(6,524)
Less: Income tax expense (benefit)		(260)		(852)		27		(14)		-		(1,099)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(1,089)	$	(4,222)	$	(181)	$	66	$	1	$	(5,425)

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

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

	Three Months Ended September 30,
(in millions)		2019		2018
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments		$	1	$	1		Other realized capital gains
Total			1		1
Unrealized appreciation (depreciation) of all other investments
Investments			127		10		Other realized capital gains
Deferred acquisition costs adjustment			-		30		Amortization of deferred policy acquisition costs
Future policy benefits			-		-		Policyholder benefits and losses incurred
Total			127		40
Change in retirement plan liabilities adjustment
Prior-service credit			-		-		*
Actuarial losses			(9)		(9)		*
Total			(9)		(9)
Total reclassifications for the period		$	119	$	32
	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income

	Nine Months Ended September 30,
(in millions)		2019		2018
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments		$	(3)	$	5		Other realized capital gains
Total			(3)		5
Unrealized appreciation (depreciation) of all other investments
Investments			187		19		Other realized capital gains
Deferred acquisition costs adjustment			-		-		Amortization of deferred policy acquisition costs
Future policy benefits			-		-		Policyholder benefits and losses incurred
Total			187		19
Change in retirement plan liabilities adjustment
Prior-service credit			-		1		*
Actuarial losses			(24)		(27)		*
Total			(24)		(26)
Total reclassifications for the period		$	160	$	(2)

*These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 14.

EARNINGS PER COMMON SHARE (EPS)

9 Months Ended

Sep. 30, 2019

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

13. Earnings Per Common 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 common shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions, except per common share data)		2019		2018		2019		2018
Numerator for EPS:
Income (loss) from continuing operations	$	973	$	(1,220)	$	3,301	$	661
Less: Net income from continuing operations attributable to noncontrolling interests		317		-		881		5
Less: Preferred stock dividends		8		-		15		-
Income (loss) attributable to AIG common shareholders
from continuing operations		648		(1,220)		2,405		656
Loss from discontinued operations, net of income tax expense		-		(39)		(1)		(40)
Net income (loss) attributable to AIG common shareholders	$	648	$	(1,259)	$	2,404	$	616
Denominator for EPS:
Weighted average common shares outstanding — basic		877,009,495		895,237,359		876,262,372		902,081,555
Dilutive common shares		18,804,915		-		10,958,744		14,736,714
Weighted average common shares outstanding — diluted^(a)(b)		895,814,410		895,237,359		887,221,116		916,818,269
Income (loss) per common share attributable to AIG common
shareholders:
Basic:
Income (loss) from continuing operations	$	0.74	$	(1.37)	$	2.74	$	0.72
Income (loss) from discontinued operations	$	-	$	(0.04)	$	-	$	(0.04)
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	$	-	$	(0.04)	$	-	$	(0.04)
Income (loss) attributable to AIG common shareholders	$	0.72	$	(1.41)	$	2.71	$	0.67

(a)Shares in the diluted EPS calculation represent basic common shares for the three-month period ended September 30, 2018 due to the net loss in that period. The number of common shares excluded from the calculation was 13,538,168 shares.

(b)Dilutive common shares include our share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of common shares excluded from diluted shares outstanding was 5.1 million and 24.9 million for the three- and nine-month periods ended September 30, 2019, respectively, and 5.8 million and 4.7 million for the three- and nine-month periods ended September 30, 2018, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive.

EMPLOYEE BENEFITS

9 Months Ended

Sep. 30, 2019

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

14. Employee Benefits

We sponsor various defined benefit pension plans, post-retirement medical and life insurance plans for eligible employees and retirees in the U.S. and certain non-U.S. countries.

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

	Pension						Postretirement
		U.S.		Non-U.S.				U.S.		Non-U.S.
(in millions)		Plans		Plans		Total		Plans		Plans		Total
Three Months Ended September 30, 2019
Components of net periodic benefit cost:
Service cost	$	2	$	6	$	8	$	-	$	-	$	-
Interest cost		44		3		47		2		-		2
Expected return on assets		(58)		(5)		(63)		-		-		-
Amortization of prior service cost		-		-		-		-		-		-
Amortization of net loss		9		1		10		-		-		-
Net periodic benefit cost (credit)		(3)		5		2		2		-		2
Settlement charges		-		-		-		-		-		-
Net benefit cost (credit)	$	(3)	$	5	$	2	$	2	$	-	$	2
Three Months Ended September 30, 2018
Components of net periodic benefit cost:
Service cost	$	-	$	6	$	6	$	-	$	-	$	-
Interest cost		41		4		45		1		1		2
Expected return on assets		(72)		(6)		(78)		-		-		-
Amortization of prior service cost		-		-		-		-		-		-
Amortization of net loss		7		2		9		-		-		-
Net periodic benefit cost (credit)		(24)		6		(18)		1		1		2
Settlement charges		-		-		-		-		-		-
Net benefit cost (credit)	$	(24)	$	6	$	(18)	$	1	$	1	$	2
Nine Months Ended September 30, 2019
Components of net periodic benefit cost:
Service cost	$	7	$	16	$	23	$	1	$	-	$	1
Interest cost		131		11		142		5		1		6
Expected return on assets		(172)		(16)		(188)		-		-		-
Amortization of prior service cost (credit)		-		1		1		-		(1)		(1)
Amortization of net (gain) loss		25		4		29		(1)		-		(1)
Net periodic benefit cost (credit)		(9)		16		7		5		-		5
Settlement credit		-		(3)		(3)		-		-		-
Net benefit cost (credit)	$	(9)	$	13	$	4	$	5	$	-	$	5
Nine Months Ended September 30, 2018
Components of net periodic benefit cost:
Service cost	$	4	$	17	$	21	$	1	$	1	$	2
Interest cost		122		12		134		4		2		6
Expected return on assets		(213)		(19)		(232)		-		-		-
Amortization of prior service cost (credit)		-		1		1		(1)		(1)		(2)
Amortization of net loss		21		6		27		-		-		-
Net periodic benefit cost (credit)		(66)		17		(49)		4		2		6
Settlement charges		-		-		-		-		-		-
Net benefit cost (credit)	$	(66)	$	17	$	(49)	$	4	$	2	$	6

For the nine-month period ended September 30, 2019, we contributed $160 million to the U.S. AIG Retirement Plan.

INCOME TAXES

9 Months Ended

Sep. 30, 2019

INCOME TAXES

INCOME TAXES

15. 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.

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 later 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.

Interim Tax Calculation Method

We use the estimated annual effective tax rate method in computing our interim tax provision. Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions, and are recorded in the period in which the change occurs. While certain impacts of the Tax Act are included in our annual effective tax rate, we continue to refine our calculations as additional information becomes available, which may result in changes to the estimated annual effective tax rate.

Interim Tax Expense (Benefit)

For the three-month period ended September 30, 2019, the effective tax rate on income from continuing operations was 22.8 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax charges associated with the effect of foreign operations, changes in reserves for uncertain tax positions, a net tax charge due to the accrual of interest associated with IRS and other tax authority matters, state and local income taxes, non-deductible transfer pricing charges, and U.S. tax imposed on GILTI earned by certain foreign subsidiaries, partially offset by tax benefits associated with tax exempt income, reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities, and valuation allowance activity related to certain foreign subsidiaries. The effect of foreign operations is primarily related to income in our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S. taxation.

For the nine-month period ended September 30, 2019, the effective tax rate on income from continuing operations was 22.3 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax charges associated with the accrual of interest associated with IRS and other tax authority matters, the effect of foreign operations, changes in reserves for uncertain tax positions, state and local income taxes, excess tax charges related to share based compensation payments recorded through the income statement, non-deductible transfer pricing charges, and U.S. tax imposed on GILTI earned by certain foreign subsidiaries, partially offset by tax benefits associated with tax exempt income, reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities, and valuation allowance activity related to certain foreign subsidiaries. The effect of foreign operations is primarily related to income in our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S. taxation.

For the three-month period ended September 30, 2018, the effective tax rate on income from continuing operations was 20.1 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax charges related to income in our foreign operations taxed at statutory tax rates higher than 21 percent, additional U.S. taxes imposed on income of our foreign subsidiaries under international provisions of the Tax Act, valuation allowance activity related to certain foreign subsidiaries and state jurisdictions and non-deductible transfer pricing charges, partially offset by tax benefits associated with tax exempt income, and reclassifications from accumulated other comprehensive income to income from continuing operations

related to the disposal of available for sale securities. We also recorded a measurement period tax charge of $62 million related to the effects of the deemed repatriation tax.

For the nine-month period ended September 30, 2018, the effective tax rate on income from continuing operations was 30.6 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax charges related to income in our foreign operations taxed at statutory tax rates higher than 21 percent, additional U.S. taxes imposed on income of our foreign subsidiaries under international provisions of the Tax Act, valuation allowance activity related to certain foreign subsidiaries and state jurisdictions and non-deductible transfer pricing charges, partially offset by tax benefits associated with tax exempt income, reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities and excess tax deductions related to share based compensation payments recorded through the income statement.

As a result of the Tax Act, the majority of accumulated foreign earnings that were previously untaxed are 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 nine-month period ended September 30, 2019, 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. Deferred taxes, if necessary, have been provided on earnings of non-U.S. affiliates whose earnings are not indefinitely reinvested.

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 foreign tax credit carryforwards. Accordingly, we utilize both the net operating loss and foreign tax credit carryforwards concurrently which enables us to realize our tax attributes prior to expiration. As of September 30, 2019, 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 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 nine-month period ended September 30, 2019, recent changes in market conditions, including interest rate fluctuations, impacted the unrealized tax gains and losses in the U.S. Life Insurance Companies’ available for sale securities portfolio, resulting in an increase to the deferred tax liability related to net unrealized tax capital gains. As of September 30, 2019, based on all available evidence, we concluded that no valuation allowance is required. For the nine-month period ended September 30, 2019, we released $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. We released the full amount of valuation allowance previously recorded during the three-month period ended March 31, 2019 and no additional activity was recorded for the three-month periods ended June 30, 2019 and September 30, 2019.

For the three- and nine-month periods ended September 30, 2019, we recognized net decreases of $9 million and $40 million, respectively, in our deferred tax asset valuation allowance associated with certain foreign subsidiaries, primarily attributable to changes in projections and current year activity.

Tax Examinations and Litigation

On August 1, 2012, we filed a motion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions in the Southern District of New York. 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

At both September 30, 2019 and December 31, 2018, our unrecognized tax benefits, excluding interest and penalties, were $4.8 billion and $4.7 billion, respectively. At September 30, 2019 and December 31, 2018, 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 $43 million and $38 million, respectively. Accordingly, at both September 30, 2019 and December 31, 2018, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $4.7 billion.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At September 30, 2019 and December 31, 2018, we had accrued liabilities of $2.4 billion and $2.2 billion, respectively, for the payment of interest (net of the federal benefit) and penalties. For the nine-month periods ended September 30, 2019 and 2018, we accrued expense (benefit) of $181 million and $148 million, respectively, for the payment of interest and penalties.

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.

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

9 Months Ended

Sep. 30, 2019

INFORMATION PROVIDED IN CONNECTION WITH OUTSTADING DEBT

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

16. Information Provided in Connection with Outstanding Debt

The following Condensed Consolidating Financial Statements reflect the results of Validus Holdings, Ltd. and AIG Life Holdings, Inc. (AIGLH), each a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of the senior notes of Validus and 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
September 30, 2019
Assets:
Short-term investments^(a)	$	3,229	$	2	$	-	$	13,374	$	(2,492)	$	14,113
Other investments^(b)		4,505		-		-		322,375		-		326,880
Total investments		7,734		2		-		335,749		(2,492)		340,993
Cash		3		20		1		3,337		-		3,361
Loans to subsidiaries^(c)		35,142		-		-		752		(35,894)		-
Investment in consolidated subsidiaries^(c)		40,115		3,814		33,315		-		(77,244)		-
Other assets, including deferred income taxes^(d)		15,583		1,792		18		165,222		(1,847)		180,768
Total assets	$	98,577	$	5,628	$	33,334	$	505,060	$	(117,477)	$	525,122
Liabilities:
Insurance liabilities	$	-	$	-	$	-	$	305,993	$	-	$	305,993
Long-term debt		21,905		355		643		12,359		-		35,262
Other liabilities, including intercompany balances^(b)		10,321		8		23		110,413		(4,343)		116,422
Loans from subsidiaries^(c)		748		-		-		35,142		(35,890)		-
Total liabilities		32,974		363		666		463,907		(40,233)		457,677
Total AIG shareholders’ equity		65,603		5,265		32,668		39,311		(77,244)		65,603
Non-redeemable noncontrolling interests		-		-		-		1,842		-		1,842
Total equity		65,603		5,265		32,668		41,153		(77,244)		67,445
Total liabilities and equity	$	98,577	$	5,628	$	33,334	$	505,060	$	(117,477)	$	525,122

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

(a) At September 30, 2019, includes restricted cash of $1 million and $63 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively. At December 31, 2018, includes restricted cash of $124 million and $18 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 September 30, 2019, includes restricted cash of $1 million and $344 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively. At December 31, 2018, includes restricted cash of $1 million and $342 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively.

Condensed Consolidating Statements of Income

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended September 30, 2019
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	998	$	28	$	1,011	$	-	$	(2,037)	$	-
Other income		279		4		-		12,710		(79)		12,914
Total revenues		1,277		32		1,011		12,710		(2,116)		12,914
Expenses:
Interest expense		245		13		12		81		(3)		348
(Gain) loss on extinguishment of debt		-		(9)		-		9		-		-
Other expenses		188		7		1		11,185		(75)		11,306
Total expenses		433		11		13		11,275		(78)		11,654
Income (loss) from continuing operations before income
tax expense (benefit)		844		21		998		1,435		(2,038)		1,260
Income tax expense (benefit)		187		-		(2)		102		-		287
Income (loss) from continuing operations		657		21		1,000		1,333		(2,038)		973
Income (loss) from discontinued operations,
net of income taxes		(1)		-		-		1		-		-
Net income (loss)		656		21		1,000		1,334		(2,038)		973
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		317		-		317
Net income (loss) attributable to AIG	$	656	$	21	$	1,000	$	1,017	$	(2,038)	$	656
Three Months Ended September 30, 2018
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	(989)	$	(93)	$	1,316	$	-	$	(234)	$	-
Other income		183		23		1		11,412		(133)		11,486
Total revenues		(806)		(70)		1,317		11,412		(367)		11,486
Expenses:
Interest expense		244		10		12		63		(3)		326
Loss on extinguishment of debt		-		-		-		1		-		1
Other expenses		132		2		1		12,513		38		12,686
Total expenses		376		12		13		12,577		35		13,013
Income (loss) from continuing operations before income
tax expense (benefit)		(1,182)		(82)		1,304		(1,165)		(402)		(1,527)
Income tax expense (benefit)		38		-		(2)		(343)		-		(307)
Income (loss) from continuing operations		(1,220)		(82)		1,306		(822)		(402)		(1,220)
Loss from discontinued operations,
net of income taxes		(39)		-		-		-		-		(39)
Net income (loss)		(1,259)		(82)		1,306		(822)		(402)		(1,259)
Less:
Net income (loss) from continuing operations
attributable to noncontrolling interests		-		-		-		-		-		-
Net income (loss) attributable to AIG	$	(1,259)	$	(82)	$	1,306	$	(822)	$	(402)	$	(1,259)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Nine Months Ended September 30, 2019
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	2,873	$	344	$	2,989	$	-	$	(6,206)	$	-
Other income		843		9		-		37,234		(155)		37,931
Total revenues		3,716		353		2,989		37,234		(6,361)		37,931
Expenses:
Interest expense		741		13		37		277		(11)		1,057
Loss on extinguishment of debt		-		-		-		13		-		13
Other expenses		556		12		2		32,183		(143)		32,610
Total expenses		1,297		25		39		32,473		(154)		33,680
Income (loss) from continuing operations before income
tax expense (benefit)		2,419		328		2,950		4,761		(6,207)		4,251
Income tax expense (benefit)		(2)		-		(4)		956		-		950
Income (loss) from continuing operations		2,421		328		2,954		3,805		(6,207)		3,301
Income (loss) from discontinued operations,
net of income taxes		(2)		-		-		1		-		(1)
Net income (loss)		2,419		328		2,954		3,806		(6,207)		3,300
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		881		-		881
Net income (loss) attributable to AIG	$	2,419	$	328	$	2,954	$	2,925	$	(6,207)	$	2,419
Nine Months Ended September 30, 2018
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	889	$	(93)	$	2,497	$	-	$	(3,293)	$	-
Other income		750		23		1		34,103		(48)		34,829
Total revenues		1,639		(70)		2,498		34,103		(3,341)		34,829
Expenses:
Interest expense		710		10		37		154		(9)		902
Loss on extinguishment of debt		-		-		-		10		-		10
Other expenses		643		2		2		32,357		(39)		32,965
Total expenses		1,353		12		39		32,521		(48)		33,877
Income (loss) from continuing operations before income
tax expense (benefit)		286		(82)		2,459		1,582		(3,293)		952
Income tax expense (benefit)		(370)		-		-		661		-		291
Income (loss) from continuing operations		656		(82)		2,459		921		(3,293)		661
Loss from discontinued operations,
net of income taxes		(40)		-		-		-		-		(40)
Net income (loss)		616		(82)		2,459		921		(3,293)		621
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		5		-		5
Net income (loss) attributable to AIG	$	616	$	(82)	$	2,459	$	916	$	(3,293)	$	616

*Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income

		American
		International		Validus								Reclassifications
		Group, Inc.		Holdings,					Other			and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH			Subsidiaries			Eliminations		AIG
Three Months Ended September 30, 2019
Net income (loss)	$	656	$	21	$	1,000		$	1,334		$	(2,038)	$	973
Other comprehensive income (loss)		624		-		303			(1,436)			1,137		628
Comprehensive income (loss)		1,280		21		1,303			(102)			(901)		1,601
Total comprehensive income attributable to
noncontrolling interests		-		-		-			321			-		321
Comprehensive income (loss) attributable to AIG	$	1,280	$	21	$	1,303		$	(423)		$	(901)	$	1,280
Three Months Ended September 30, 2018
Net income (loss)	$	(1,259)	$	(82)	$	1,306		$	(822)		$	(402)	$	(1,259)
Other comprehensive income (loss)		(766)		-		(301)			(2,229)	^(a)		2,530	^(a)	(766)
Comprehensive income (loss)		(2,025)		(82)		1,005			(3,051)			2,128		(2,025)
Total comprehensive income attributable to
noncontrolling interests		-		-		-			-			-		-
Comprehensive income (loss) attributable to AIG	$	(2,025)	$	(82)	$	1,005		$	(3,051)		$	2,128	$	(2,025)
Nine Months Ended September 30, 2019
Net income (loss)	$	2,419	$	328	$	2,954		$	3,806		$	(6,207)	$	3,300
Other comprehensive income (loss)		7,028		1		5,521			3,593			(9,095)		7,048
Comprehensive income (loss)		9,447		329		8,475			7,399			(15,302)		10,348
Total comprehensive income attributable to
noncontrolling interests		-		-		-			901			-		901
Comprehensive income (loss) attributable to AIG	$	9,447	$	329	$	8,475		$	6,498		$	(15,302)	$	9,447
Nine Months Ended September 30, 2018
Net income (loss)	$	616	$	(82)	$	2,459		$	921		$	(3,293)	$	621
Other comprehensive income (loss)		(5,425)		-		(3,766)	^(a)		(6,650)	^(a)		10,416	^(a)	(5,425)
Comprehensive income (loss)		(4,809)		(82)		(1,307)			(5,729)			7,123		(4,804)
Total comprehensive income attributable to
noncontrolling interests		-		-		-			5			-		5
Comprehensive income (loss) attributable to AIG	$	(4,809)	$	(82)	$	(1,307)		$	(5,734)		$	7,123	$	(4,809)

(a)The Other comprehensive income (loss) amounts for Other Subsidiaries and Reclassifications and Eliminations in the three months ended September 30, 2018, have been revised from $(1.4) billion to $(2.2) billion and from $1.7 billion to $2.5 billion, respectively, to correct Comprehensive income (loss) in the three months ended September 30, 2018. The Other comprehensive income (loss) amounts for AIGLH, Other Subsidiaries and Reclassifications and Eliminations in the nine months ended September 30, 2018, have been revised from $3.1 billion to $(3.8) billion, from $12.6 billion to $(6.7) billion and from $(15.7) billion to $10.4 billion, respectively, to correct Comprehensive income (loss) in the nine months ended September 30, 2018. These corrections in the three-and nine-month periods ended September 30, 2018 have no impact on AIG’s consolidated financial statements and is not considered material to previously issued financial statements.

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
Nine Months Ended September 30, 2019
Net cash (used in) provided by operating activities	$	2,755	$	101	$	1,462	$	(1,068)	$	(4,039)	$	(789)
Cash flows from investing activities:
Sales of investments		2,090		-		-		46,921		(540)		48,471
Sales of divested businesses, net		-		-		-		2		-		2
Purchase of investments		(2,395)		-		-		(49,654)		540		(51,509)
Loans to subsidiaries - net		534		-		-		(127)		(407)		-
Contributions from (to) subsidiaries - net		(239)		-		-		-		239		-
Net change in short-term investments		(2,242)		-		-		(2,344)		-		(4,586)
Other, net		87		-		-		2,742		-		2,829
Net cash (used in) investing activities		(2,165)		-		-		(2,460)		(168)		(4,793)
Cash flows from financing activities:
Issuance of long-term debt		595		-		-		1,969		-		2,564
Repayments of long-term debt		(1,006)		-		-		(1,415)		-		(2,421)
Issuance of preferred stock		485		-		-		-		-		485
Purchase of common stock		-		-		-		-		-		-
Intercompany loans - net		127		-		-		(534)		407		-
Cash dividends paid on preferred stock		(15)		-		-		-		-		(15)
Cash dividends paid on common stock		(835)		(90)		(1,470)		(2,479)		4,039		(835)
Other, net		(63)		-		-		6,479		(239)		6,177
Net cash (used in) provided by financing activities		(712)		(90)		(1,470)		4,020		4,207		5,955
Effect of exchange rate changes on cash and
restricted cash		-		-		-		39		-		39
Change in cash and restricted cash		(122)		11		(8)		531		-		412
Cash and restricted cash at beginning of year		127		9		9		3,213		-		3,358
Cash and restricted cash at end of period	$	5	$	20	$	1	$	3,744	$	-	$	3,770

Nine Months Ended September 30, 2018
Net cash (used in) provided by operating activities	$	1,389	$	(40)	$	2,003	$	(433)	$	(2,957)	$	(38)
Cash flows from investing activities:
Sales of investments		4,641		-		-		45,218		(3,326)		46,533
Sales of divested businesses, net		-		-		-		10		-		10
Purchase of investments		(1,680)		-		-		(45,574)		3,326		(43,928)
Loans to subsidiaries - net		878		-		-		(50)		(828)		-
Contributions from (to) subsidiaries - net		22		-		-		-		(22)		-
Acquisition of businesses, net of cash and
restricted cash acquired		(5,475)		112		-		311		-		(5,052)
Net change in short-term investments		1,267		-		-		1,144		-		2,411
Other, net		(55)		-		-		(836)		-		(891)
Net cash (used in) provided by investing activities		(402)		112		-		223		(850)		(917)
Cash flows from financing activities:
Issuance of long-term debt		2,470		-		-		1,589		-		4,059
Repayments of long-term debt		(1,493)		-		-		(1,295)		-		(2,788)
Purchase of common stock		(994)		-		-		-		-		(994)
Intercompany loans - net		50		-		-		(878)		828		-
Cash dividends paid on common stock		(858)		(6)		(2,020)		(931)		2,957		(858)
Other, net		(165)		-		-		2,057		22		1,914
Net cash (used in) provided by financing activities		(990)		(6)		(2,020)		542		3,807		1,333
Effect of exchange rate changes on cash and
restricted cash		-		-		-		8		-		8
Change in cash and restricted cash		(3)		66		(17)		340		-		386
Cash and restricted cash at beginning of year		8		-		20		2,709		-		2,737
Cash and restricted cash at end of period	$	5	$	66	$	3	$	3,049	$	-	$	3,123

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
September 30, 2019
Cash	$	3	$	20	$	1	$	3,337	$	-	$	3,361
Restricted cash included in Short-term investments		1		-		-		63		-		64
Restricted cash included in Other assets		1		-		-		344		-		345
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	5	$	20	$	1	$	3,744	$	-	$	3,770

Cash (paid) received during the 2019 period for:
Interest:
Third party	$	(735)	$	(22)	$	(48)	$	(207)	$	-	$	(1,012)
Intercompany		(2)		31		-		(29)		-		-
Taxes:
Income tax authorities	$	(12)	$	-	$	-	$	(181)	$	-	$	(193)
Intercompany		1,035		2		-		(1,037)		-		-

September 30, 2018
Cash	$	3	$	66	$	3	$	2,669	$	-	$	2,741
Restricted cash included in Short-term investments		1		-		-		27		-		28
Restricted cash included in Other assets		1		-		-		353		-		354
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	5	$	66	$	3	$	3,049	$	-	$	3,123

Cash (paid) received during the 2018 period for:
Interest:
Third party	$	(706)	$	14	$	(47)	$	(279)	$	-	$	(1,018)
Intercompany		(1)		-		(1)		2		-		-
Taxes:
Income tax authorities	$	(23)	$	-	$	-	$	(44)	$	-	$	(67)
Intercompany		1,084		-		-		(1,084)		-		-

American International Group, Inc. (As Guarantor) Supplementary Disclosure of Non-Cash Activities:

Nine Months Ended September 30,
(in millions)		2019		2018
Intercompany non-cash financing and investing activities:
Capital contributions	$	15	$	2,339
Dividends received in the form of securities		659		745
Return of capital		15		2,706

BASIS OF PRESENTATION (Policies)

9 Months Ended

Sep. 30, 2019

BASIS OF PRESENTATION

Use of Estimates

•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;

•allowances for loan losses;

•liability for legal contingencies;

•fair value measurements of certain financial assets and liabilities; and

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Goodwill	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.
Accounting Standards Adopted	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	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.

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

SEGMENT INFORMATION

Schedule of 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

BUSINESS COMBINATION (Tables)

9 Months Ended

Sep. 30, 2019

BUSINESS COMBINATION

Pro Forma Income Statement Information

	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

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2019

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

September 30, 2019							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	$	684	$	4,543	$	-	$	-	$	-	$	5,227
Obligations of states, municipalities and political subdivisions		-		13,638		2,107		-		-		15,745
Non-U.S. governments		94		15,269		13		-		-		15,376
Corporate debt		-		150,097		1,275		-		-		151,372
RMBS		-		19,235		13,560		-		-		32,795
CMBS		-		13,286		1,050		-		-		14,336
CDO/ABS		-		9,431		8,939		-		-		18,370
Total bonds available for sale		778		225,499		26,944		-		-		253,221
Other bond securities:
U.S. government and government sponsored entities		10		2,286		-		-		-		2,296
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		18		-		-		-		18
RMBS		-		482		815		-		-		1,297
CMBS		-		335		68		-		-		403
CDO/ABS		-		382		3,931		-		-		4,313
Total other bond securities		10		3,503		4,814		-		-		8,327
Equity securities		751		12		8		-		-		771
Other invested assets^(b)		-		73		589		-		-		662
Derivative assets:
Interest rate contracts		1		4,381		-		-		-		4,382
Foreign exchange contracts		-		1,661		1		-		-		1,662
Equity contracts		18		676		103		-		-		797
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		15		-		-		15
Counterparty netting and cash collateral		-		-		-		(2,795)		(2,937)		(5,732)
Total derivative assets		19		6,718		120		(2,795)		(2,937)		1,125
Short-term investments		2,988		2,589		-		-		-		5,577
Other assets		-		-		60		-		-		60
Separate account assets		84,707		4,418		-		-		-		89,125
Total	$	89,253	$	242,812	$	32,535	$	(2,795)	$	(2,937)	$	358,868
Liabilities:
Policyholder contract deposits	$	-	$	-	$	7,166	$	-	$	-	$	7,166
Derivative liabilities:
Interest rate contracts		3		2,853		-		-		-		2,856
Foreign exchange contracts		-		940		-		-		-		940
Equity contracts		12		74		2		-		-		88
Credit contracts		-		18		103		-		-		121
Other contracts		-		-		8		-		-		8
Counterparty netting and cash collateral		-		-		-		(2,795)		(133)		(2,928)
Total derivative liabilities		15		3,885		113		(2,795)		(133)		1,085
Other liabilities		-		55		-		-		-		55
Long-term debt		-		2,287		-		-		-		2,287
Total	$	15	$	6,227	$	7,279	$	(2,795)	$	(133)	$	10,593

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		1,213		13		27		-		-		1,253
Other invested assets^(b)		-		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
Other assets		-		-		58		-		-		58
Separate account assets		77,202		4,645		-		-		-		81,847
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
Other liabilities		16		11		-		-		-		27
Long-term debt		-		2,213		-		-		-		2,213
Total	$	32	$	5,097	$	4,365	$	(1,713)	$	(187)	$	7,594

(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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Three Months Ended September 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,162	$	(1)	$	119	$	92	$	-	$	(265)	$	2,107	$	-
Non-U.S. governments		2		6		-		-		5		-		13		-
Corporate debt		1,821		(36)		(2)		(535)		112		(85)		1,275		-
RMBS		13,863		166		15		(418)		16		(82)		13,560		-
CMBS		1,103		2		32		85		-		(172)		1,050		-
CDO/ABS		9,062		3		37		(170)		7		-		8,939		-
Total bonds available for sale		28,013		140		201		(946)		140		(604)		26,944		-
Other bond securities:
Corporate debt		-		-		-		-		-		-		-		-
RMBS		830		9		-		(24)		-		-		815		1
CMBS		88		1		-		(17)		-		(4)		68		(2)
CDO/ABS		4,150		115		-		(334)		-		-		3,931		28
Total other bond securities		5,068		125		-		(375)		-		(4)		4,814		27
Equity securities		35		-		-		(29)		2		-		8		(2)
Mortgage and other loans receivable		-		-		-		-		-		-		-		-
Other invested assets		605		6		-		(22)		-		-		589		7
Other assets		61		-		-		(1)		-		-		60		-
Total	$	33,782	$	271	$	201	$	(1,373)	$	142	$	(608)	$	32,415	$	32
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	6,065	$	861	$	-	$	240	$	-	$	-	$	7,166	$	(691)
Derivative liabilities, net:
Interest rate contracts		16		(3)		-		(13)		-		-		-		-
Foreign exchange contracts		(4)		6		-		(3)		-		-		(1)		-
Equity contracts		(113)		12		-		-		-		-		(101)		(13)
Credit contracts		173		(24)		-		(47)		-		-		102		14
Other contracts		(7)		(17)		-		17		-		-		(7)		15
Total derivative liabilities, net^(a)		65		(26)		-		(46)		-		-		(7)		16
Total	$	6,130	$	835	$	-	$	194	$	-	$	-	$	7,159	$	(675)

				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Nine Months Ended September 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,000	$	(2)	$	321	$	178	$	35	$	(425)	$	2,107	$	-
Non-U.S. governments		11		5		-		(4)		5		(4)		13		-
Corporate debt		864		(10)		79		(600)		1,155		(213)		1,275		-
RMBS		14,199		575		176		(1,234)		83		(239)		13,560		-
CMBS		917		8		62		381		58		(376)		1,050		-
CDO/ABS		9,102		15		204		(111)		103		(374)		8,939		-
Total bonds available for sale		27,093		591		842		(1,390)		1,439		(1,631)		26,944		-
Other bond securities:
Corporate debt		-		-		-		-		-		-		-		-
RMBS		1,290		69		-		(544)		-		-		815		(18)
CMBS		77		5		-		-		-		(14)		68		3
CDO/ABS		4,478		299		-		(749)		-		(97)		3,931		128
Total other bond securities		5,845		373		-		(1,293)		-		(111)		4,814		113
Equity securities		27		-		-		(20)		2		(1)		8		2
Mortgage and other loans receivable		-		-		-		-		-		-		-		-
Other invested assets		587		24		1		(23)		-		-		589		27
Other assets		58		-		-		2		-		-		60		-
Total	$	33,610	$	988	$	843	$	(2,724)	$	1,441	$	(1,743)	$	32,415	$	142
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,116	$	2,400	$	-	$	650	$	-	$	-	$	7,166	$	(2,044)
Derivative liabilities, net:
Interest rate contracts		15		-		-		(15)		-		-		-		1
Foreign exchange contracts		(5)		(4)		-		8		-		-		(1)		-
Equity contracts		(75)		(8)		-		(18)		-		-		(101)		19
Credit contracts		227		(51)		-		(74)		-		-		102		13
Other contracts		(9)		(50)		-		52		-		-		(7)		50
Total derivative liabilities, net^(a)		153		(113)		-		(47)		-		-		(7)		83
Total	$	4,269	$	2,287	$	-	$	603	$	-	$	-	$	7,159	$	(1,961)

				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Three Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,056	$	-	$	(37)	$	(46)	$	54	$	(31)	$	-	$	1,996	$	-
Non-U.S. governments		-		-		(1)		1		4		-		-		4		-
Corporate debt		884		7		(10)		(28)		133		(44)		-		942		-
RMBS		15,377		213		5		(725)		-		(16)		7		14,861		-
CMBS		605		14		(14)		31		64		-		1		701		-
CDO/ABS		6,856		15		(31)		320		1,508		-		164		8,832		-
Total bonds available for sale		25,778		249		(88)		(447)		1,763		(91)		172		27,336		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		(2)
RMBS		1,338		18		-		(57)		50		-		-		1,349		(29)
CMBS		71		(2)		-		-		4		-		-		73		(2)
CDO/ABS		4,641		76		-		(267)		-		-		8		4,458		(6)
Total other bond securities		6,068		92		-		(342)		54		-		8		5,880		(39)
Equity securities		-		1		-		24		-		-		-		25		-
Mortgage and other loans receivable		-		-		-		-		-		-		-		-		-
Other invested assets		399		-		-		(1)		-		-		-		398		-
Total	$	32,245	$	342	$	(88)	$	(766)	$	1,817	$	(91)	$	180	$	33,639	$	(39)
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,534	$	(242)	$	-	$	84	$	-	$	-	$	-	$	3,376	$	179
Derivative liabilities, net:
Interest rate contracts		14		(1)		-		(1)		-		-		-		12		1
Foreign exchange contracts		5		2		-		(2)		-		-		-		5		(5)
Equity contracts		(79)		(12)		-		(12)		-		-		-		(103)		10
Credit contracts		246		(9)		-		(1)		-		-		-		236		10
Other contracts		(10)		(19)		-		17		-		-		-		(12)		14
Total derivative liabilities, net^(a)		176		(39)		-		1		-		-		-		138		30
Total	$	3,710	$	(281)	$	-	$	85	$	-	$	-	$	-	$	3,514	$	209

				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Nine Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,404	$	1	$	(152)	$	(144)	$	54	$	(167)	$	-	$	1,996	$	-
Non-U.S. governments		8		(5)		5		(3)		4		(5)		-		4		-
Corporate debt		1,173		(58)		(7)		(174)		701		(693)		-		942		-
RMBS		16,136		632		5		(1,877)		8		(50)		7		14,861		-
CMBS		624		18		(35)		1		111		(19)		1		701		-
CDO/ABS		8,651		31		(116)		(334)		1,508		(1,072)		164		8,832		-
Total bonds available for sale		28,996		619		(300)		(2,531)		2,386		(2,006)		172		27,336		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		(1)
RMBS		1,464		73		-		(238)		50		-		-		1,349		124
CMBS		74		(5)		-		(1)		5		-		-		73		2
CDO/ABS		4,956		283		-		(780)		-		(9)		8		4,458		201
Total other bond securities		6,512		351		-		(1,037)		55		(9)		8		5,880		326
Equity securities		-		(2)		-		27		-		-		-		25		-
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-		-
Other invested assets		250		52		1		95		-		-		-		398		56
Total	$	35,763	$	1,020	$	(299)	$	(3,451)	$	2,441	$	(2,015)	$	180	$	33,639	$	382
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,136	$	(986)	$	-	$	226	$	-	$	-	$	-	$	3,376	$	1,081
Derivative liabilities, net:
Interest rate contracts		22		(5)		-		(5)		-		-		-		12		5
Foreign exchange contracts		-		(2)		-		7		-		-		-		5		(5)
Equity contracts		(82)		(3)		-		(20)		-		2		-		(103)		2
Credit contracts		262		(23)		-		(3)		-		-		-		236		23
Other contracts		(15)		(51)		-		54		-		-		-		(12)		42
Total derivative liabilities, net^(a)		187		(84)		-		33		-		2		-		138		67
Total	$	4,323	$	(1,070)	$	-	$	259	$	-	$	2	$	-	$	3,514	$	1,148

(a)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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Three Months Ended September 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,162	$	(1)	$	119	$	92	$	-	$	(265)	$	2,107	$	-
Non-U.S. governments		2		6		-		-		5		-		13		-
Corporate debt		1,821		(36)		(2)		(535)		112		(85)		1,275		-
RMBS		13,863		166		15		(418)		16		(82)		13,560		-
CMBS		1,103		2		32		85		-		(172)		1,050		-
CDO/ABS		9,062		3		37		(170)		7		-		8,939		-
Total bonds available for sale		28,013		140		201		(946)		140		(604)		26,944		-
Other bond securities:
Corporate debt		-		-		-		-		-		-		-		-
RMBS		830		9		-		(24)		-		-		815		1
CMBS		88		1		-		(17)		-		(4)		68		(2)
CDO/ABS		4,150		115		-		(334)		-		-		3,931		28
Total other bond securities		5,068		125		-		(375)		-		(4)		4,814		27
Equity securities		35		-		-		(29)		2		-		8		(2)
Mortgage and other loans receivable		-		-		-		-		-		-		-		-
Other invested assets		605		6		-		(22)		-		-		589		7
Other assets		61		-		-		(1)		-		-		60		-
Total	$	33,782	$	271	$	201	$	(1,373)	$	142	$	(608)	$	32,415	$	32
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	6,065	$	861	$	-	$	240	$	-	$	-	$	7,166	$	(691)
Derivative liabilities, net:
Interest rate contracts		16		(3)		-		(13)		-		-		-		-
Foreign exchange contracts		(4)		6		-		(3)		-		-		(1)		-
Equity contracts		(113)		12		-		-		-		-		(101)		(13)
Credit contracts		173		(24)		-		(47)		-		-		102		14
Other contracts		(7)		(17)		-		17		-		-		(7)		15
Total derivative liabilities, net^(a)		65		(26)		-		(46)		-		-		(7)		16
Total	$	6,130	$	835	$	-	$	194	$	-	$	-	$	7,159	$	(675)

				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Nine Months Ended September 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,000	$	(2)	$	321	$	178	$	35	$	(425)	$	2,107	$	-
Non-U.S. governments		11		5		-		(4)		5		(4)		13		-
Corporate debt		864		(10)		79		(600)		1,155		(213)		1,275		-
RMBS		14,199		575		176		(1,234)		83		(239)		13,560		-
CMBS		917		8		62		381		58		(376)		1,050		-
CDO/ABS		9,102		15		204		(111)		103		(374)		8,939		-
Total bonds available for sale		27,093		591		842		(1,390)		1,439		(1,631)		26,944		-
Other bond securities:
Corporate debt		-		-		-		-		-		-		-		-
RMBS		1,290		69		-		(544)		-		-		815		(18)
CMBS		77		5		-		-		-		(14)		68		3
CDO/ABS		4,478		299		-		(749)		-		(97)		3,931		128
Total other bond securities		5,845		373		-		(1,293)		-		(111)		4,814		113
Equity securities		27		-		-		(20)		2		(1)		8		2
Mortgage and other loans receivable		-		-		-		-		-		-		-		-
Other invested assets		587		24		1		(23)		-		-		589		27
Other assets		58		-		-		2		-		-		60		-
Total	$	33,610	$	988	$	843	$	(2,724)	$	1,441	$	(1,743)	$	32,415	$	142
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,116	$	2,400	$	-	$	650	$	-	$	-	$	7,166	$	(2,044)
Derivative liabilities, net:
Interest rate contracts		15		-		-		(15)		-		-		-		1
Foreign exchange contracts		(5)		(4)		-		8		-		-		(1)		-
Equity contracts		(75)		(8)		-		(18)		-		-		(101)		19
Credit contracts		227		(51)		-		(74)		-		-		102		13
Other contracts		(9)		(50)		-		52		-		-		(7)		50
Total derivative liabilities, net^(a)		153		(113)		-		(47)		-		-		(7)		83
Total	$	4,269	$	2,287	$	-	$	603	$	-	$	-	$	7,159	$	(1,961)

				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Three Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,056	$	-	$	(37)	$	(46)	$	54	$	(31)	$	-	$	1,996	$	-
Non-U.S. governments		-		-		(1)		1		4		-		-		4		-
Corporate debt		884		7		(10)		(28)		133		(44)		-		942		-
RMBS		15,377		213		5		(725)		-		(16)		7		14,861		-
CMBS		605		14		(14)		31		64		-		1		701		-
CDO/ABS		6,856		15		(31)		320		1,508		-		164		8,832		-
Total bonds available for sale		25,778		249		(88)		(447)		1,763		(91)		172		27,336		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		(2)
RMBS		1,338		18		-		(57)		50		-		-		1,349		(29)
CMBS		71		(2)		-		-		4		-		-		73		(2)
CDO/ABS		4,641		76		-		(267)		-		-		8		4,458		(6)
Total other bond securities		6,068		92		-		(342)		54		-		8		5,880		(39)
Equity securities		-		1		-		24		-		-		-		25		-
Mortgage and other loans receivable		-		-		-		-		-		-		-		-		-
Other invested assets		399		-		-		(1)		-		-		-		398		-
Total	$	32,245	$	342	$	(88)	$	(766)	$	1,817	$	(91)	$	180	$	33,639	$	(39)
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,534	$	(242)	$	-	$	84	$	-	$	-	$	-	$	3,376	$	179
Derivative liabilities, net:
Interest rate contracts		14		(1)		-		(1)		-		-		-		12		1
Foreign exchange contracts		5		2		-		(2)		-		-		-		5		(5)
Equity contracts		(79)		(12)		-		(12)		-		-		-		(103)		10
Credit contracts		246		(9)		-		(1)		-		-		-		236		10
Other contracts		(10)		(19)		-		17		-		-		-		(12)		14
Total derivative liabilities, net^(a)		176		(39)		-		1		-		-		-		138		30
Total	$	3,710	$	(281)	$	-	$	85	$	-	$	-	$	-	$	3,514	$	209

				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Nine Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,404	$	1	$	(152)	$	(144)	$	54	$	(167)	$	-	$	1,996	$	-
Non-U.S. governments		8		(5)		5		(3)		4		(5)		-		4		-
Corporate debt		1,173		(58)		(7)		(174)		701		(693)		-		942		-
RMBS		16,136		632		5		(1,877)		8		(50)		7		14,861		-
CMBS		624		18		(35)		1		111		(19)		1		701		-
CDO/ABS		8,651		31		(116)		(334)		1,508		(1,072)		164		8,832		-
Total bonds available for sale		28,996		619		(300)		(2,531)		2,386		(2,006)		172		27,336		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		(1)
RMBS		1,464		73		-		(238)		50		-		-		1,349		124
CMBS		74		(5)		-		(1)		5		-		-		73		2
CDO/ABS		4,956		283		-		(780)		-		(9)		8		4,458		201
Total other bond securities		6,512		351		-		(1,037)		55		(9)		8		5,880		326
Equity securities		-		(2)		-		27		-		-		-		25		-
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-		-
Other invested assets		250		52		1		95		-		-		-		398		56
Total	$	35,763	$	1,020	$	(299)	$	(3,451)	$	2,441	$	(2,015)	$	180	$	33,639	$	382
				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 Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,136	$	(986)	$	-	$	226	$	-	$	-	$	-	$	3,376	$	1,081
Derivative liabilities, net:
Interest rate contracts		22		(5)		-		(5)		-		-		-		12		5
Foreign exchange contracts		-		(2)		-		7		-		-		-		5		(5)
Equity contracts		(82)		(3)		-		(20)		-		2		-		(103)		2
Credit contracts		262		(23)		-		(3)		-		-		-		236		23
Other contracts		(15)		(51)		-		54		-		-		-		(12)		42
Total derivative liabilities, net^(a)		187		(84)		-		33		-		2		-		138		67
Total	$	4,323	$	(1,070)	$	-	$	259	$	-	$	2	$	-	$	3,514	$	1,148

(a)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
Three Months Ended September 30, 2019
Assets:
Bonds available for sale	$	164	$	(24)	$	-	$	140
Other bond securities		110		15		-		125
Equity securities		-		-		-		-
Other invested assets		7		(1)		-		6
Nine Months Ended September 30, 2019
Assets:
Bonds available for sale	$	651	$	(60)	$	-	$	591
Other bond securities		306		67		-		373
Equity securities		-		-		-		-
Other invested assets		25		(1)		-		24
Three Months Ended September 30, 2018
Assets:
Bonds available for sale	$	249	$	-	$	-	$	249
Other bond securities		35		1		56		92
Equity securities		1		-		-		1
Other invested assets		-		-		-		-
Nine Months Ended September 30, 2018
Assets:
Bonds available for sale	$	731	$	(112)	$	-	$	619
Other bond securities		92		(3)		262		351
Equity securities		(2)		-		-		(2)
Other invested assets		57		-		(5)		52

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
Three Months Ended September 30, 2019
Liabilities:
Policyholder contract deposits	$	-	$	861	$	-	$	861
Derivative liabilities, net		-		(11)		(15)		(26)
Nine Months Ended September 30, 2019
Liabilities:
Policyholder contract deposits	$	-	$	2,400	$	-	$	2,400
Derivative liabilities, net		-		(64)		(49)		(113)
Three Months Ended September 30, 2018
Liabilities:
Policyholder contract deposits	$	-	$	(242)	$	-	$	(242)
Derivative liabilities, net		-		(1)		(38)		(39)
Nine Months Ended September 30, 2018
Liabilities:
Policyholder contract deposits	$	-	$	(986)	$	-	$	(986)
Derivative liabilities, net		-		(3)		(81)		(84)

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

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements^(a)		Settlements, Net^(a)
Three Months Ended September 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	109	$	-	$	(17)	$	92
Non-U.S. governments		-		-		-		-
Corporate debt		1		(128)		(408)		(535)
RMBS		253		-		(671)		(418)
CMBS		92		-		(7)		85
CDO/ABS		458		(198)		(430)		(170)
Total bonds available for sale		913		(326)		(1,533)		(946)
Other bond securities:
RMBS		-		-		(24)		(24)
CMBS		-		(16)		(1)		(17)
CDO/ABS		-		(153)		(181)		(334)
Total other bond securities		-		(169)		(206)		(375)
Equity securities		-		-		(29)		(29)
Mortgage and other loans receivable		-		-		-		-
Other invested assets		21		-		(43)		(22)
Other assets		-		-		(1)		(1)
Total assets	$	934	$	(495)	$	(1,812)	$	(1,373)
Liabilities:
Policyholder contract deposits	$	-	$	240	$	-	$	240
Derivative liabilities, net		(7)		-		(39)		(46)
Total liabilities	$	(7)	$	240	$	(39)	$	194
Three Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	-	$	(8)	$	(38)	$	(46)
Non-U.S. governments		-		-		1		1
Corporate debt		25		-		(53)		(28)
RMBS		123		(2)		(846)		(725)
CMBS		58		(2)		(25)		31
CDO/ABS		394		(49)		(25)		320
Total bonds available for sale		600		(61)		(986)		(447)
Other bond securities:
Corporate debt		-		-		(18)		(18)
RMBS		-		-		(57)		(57)
CMBS		-		-		-		-
CDO/ABS		-		-		(267)		(267)
Total other bond securities		-		-		(342)		(342)
Equity securities		24		-		-		24
Mortgage and other loans receivable		-		-		-		-
Other invested assets		-		-		(1)		(1)
Other assets		-		-		-		-
Total assets	$	624	$	(61)	$	(1,329)	$	(766)
Liabilities:
Policyholder contract deposits	$	-	$	148	$	(64)	$	84
Derivative liabilities, net		(18)		-		19		1
Total liabilities	$	(18)	$	148	$	(45)	$	85

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements^(a)		Settlements, Net^(a)
Nine Months Ended September 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	243	$	(16)	$	(49)	$	178
Non-U.S. governments		-		-		(4)		(4)
Corporate debt		58		(129)		(529)		(600)
RMBS		860		(26)		(2,068)		(1,234)
CMBS		455		-		(74)		381
CDO/ABS		1,628		(508)		(1,231)		(111)
Total bonds available for sale		3,244		(679)		(3,955)		(1,390)
Other bond securities:
RMBS		-		(437)		(107)		(544)
CMBS		18		(16)		(2)		-
CDO/ABS		-		(153)		(596)		(749)
Total other bond securities		18		(606)		(705)		(1,293)
Equity securities		9		-		(29)		(20)
Mortgage and other loans receivable		-		-		-		-
Other invested assets		64		-		(87)		(23)
Other assets		-		-		2		2
Total assets	$	3,335	$	(1,285)	$	(4,774)	$	(2,724)
Liabilities:
Policyholder contract deposits	$	-	$	616	$	34	$	650
Derivative liabilities, net		(29)		-		(18)		(47)
Total liabilities	$	(29)	$	616	$	16	$	603
Nine Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	24	$	(8)	$	(160)	$	(144)
Non-U.S. governments		2		-		(5)		(3)
Corporate debt		280		(216)		(238)		(174)
RMBS		630		(12)		(2,495)		(1,877)
CMBS		70		(2)		(67)		1
CDO/ABS		1,364		(962)		(736)		(334)
Total bonds available for sale		2,370		(1,200)		(3,701)		(2,531)
Other bond securities:
Corporate debt		-		-		(18)		(18)
RMBS		1		(34)		(205)		(238)
CMBS		-		-		(1)		(1)
CDO/ABS		-		(4)		(776)		(780)
Total other bond securities		1		(38)		(1,000)		(1,037)
Equity securities		27		-		-		27
Mortgage and other loans receivable		-		(5)		-		(5)
Other invested assets		153		(29)		(29)		95
Other assets		-		-		-		-
Total assets	$	2,551	$	(1,272)	$	(4,730)	$	(3,451)
Liabilities:
Policyholder contract deposits	$	-	$	391	$	(165)	$	226
Derivative liabilities, net		(37)		-		70		33
Total liabilities	$	(37)	$	391	$	(95)	$	259

(a)There were no issuances during the three- and nine-month periods ended September 30, 2019 and 2018.

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	September 30,		Valuation		Range
(in millions)	2019		Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states, municipalities
and political subdivisions	$	1,590	Discounted cash flow	Yield	3.12% - 3.74% (3.43%)

Corporate debt		781	Discounted cash flow	Yield	2.95% - 7.03% (4.99%)

RMBS^(a)		12,350	Discounted cash flow	Constant prepayment rate	3.87% - 12.23% (8.05%)
				Loss severity	36.65% - 78.25% (57.45%)
				Constant default rate	1.81% - 6.41% (4.11%)
				Yield	2.29% - 4.47% (3.38%)

CDO/ABS^(a)		5,903	Discounted cash flow	Yield	2.73% - 4.75% (3.74%)

CMBS		499	Discounted cash flow	Yield	2.48% - 4.82% (3.65%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

Guaranteed minimum withdrawal benefits (GMWB)		3,168	Discounted cash flow	Equity volatility	6.15% - 48.65%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	50.00% - 143.00%
				Mortality multiplier^(c)	38.00% - 155.00%
				Utilization	90.00% - 100.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		3,470	Discounted cash flow	Lapse rate	0.31% - 50.00%
				Mortality multiplier^(c)	24.00% - 180.00%
				Option Budget	1.00% - 4.00%

Indexed Life		502	Discounted cash flow	Base lapse rate	0.00% - 37.97%
				Mortality rate	0.00% - 100.00%


		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:

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%

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

(c)Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table.

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

		September 30, 2019				December 31, 2018
			Fair Value			Fair Value
			Using NAV			Using NAV
			Per Share (or		Unfunded	Per Share (or			Unfunded
(in millions)	Investment Category Includes		its equivalent)		Commitments	its equivalent)			Commitments
Investment Category
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	1,152	$	1,326	$	847	$	1,327

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		341		387		190		83

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		102		122		126		127

Growth Equity	Funds that make investments in established companies for the purpose of growing their businesses		411		72		362		28

Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		341		472		211		75

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		739		249		514		307
Total private equity funds			3,086		2,628		2,250		1,947
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		753		-		787		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		548		-		863		-

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		848		-		887		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		1		-		21		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		162		1		158		1
Total hedge funds			2,312		1		2,716		9
Total		$	5,398	$	2,629	$	4,966	$	1,956

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

	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
(in millions)		2019		2018		2019		2018
Assets:
Bond and equity securities	$	333	$	122	$	971	$	274
Alternative investments^(a)		92		131		473		355
Liabilities:
Long-term debt^(b)		(75)		6		(228)		74
Total gain	$	350	$	259	$	1,216	$	703

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

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

Difference between fair values and aggregate contractual principal amounts, fair value option

	September 30, 2019						December 31, 2018
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Liabilities:
Long-term debt^*	$	2,287	$	1,652	$	635	$	2,213	$	1,653	$	560

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

Fair value assets measured on nonrecurring basis and impairment charges

	Assets at Fair Value								Impairment Charges
	Non-Recurring Basis								Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	Level 1		Level 2		Level 3			Total		2019		2018		2019		2018
September 30, 2019
Other investments	$	-	$	-	$	253	$	253	$	7	$	-	$	65	$	89
Other assets		-		-		1		1		45		34		62		35
Total	$	-	$	-	$	254	$	254	$	52	$	34	$	127	$	124
December 31, 2018
Other investments	$	-	$	-	$	315	$	315
Other assets		-		-		11		11
Total	$	-	$	-	$	326	$	326

Carrying values and estimated fair values of AIG's financial instruments

	Estimated Fair Value									Carrying
(in millions)		Level 1		Level 2		Level 3		Total		Value
September 30, 2019
Assets:
Mortgage and other loans receivable	$	-	$	104	$	47,682	$	47,786	$	45,075
Other invested assets		-		707		6		713		714
Short-term investments		-		8,536		-		8,536		8,536
Cash		3,361		-		-		3,361		3,361
Other assets		208		137		-		345		345
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		267		135,346		135,613		126,011
Other liabilities		-		2,787		-		2,787		2,787
Long-term debt		-		26,223		9,113		35,336		32,975
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

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Investments [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^(a)
September 30, 2019
Bonds available for sale:
U.S. government and government sponsored entities	$	4,727	$	501	$	(1)	$	5,227	$	-
Obligations of states, municipalities and political subdivisions		14,122		1,640		(17)		15,745		-
Non-U.S. governments		14,456		999		(79)		15,376		-
Corporate debt		138,950		12,956		(534)		151,372		9
Mortgage-backed, asset-backed and collateralized:
RMBS		29,513		3,344		(62)		32,795		1,222
CMBS		13,577		771		(12)		14,336		34
CDO/ABS		18,000		449		(79)		18,370		17
Total mortgage-backed, asset-backed and collateralized		61,090		4,564		(153)		65,501		1,273
Total bonds available for sale^(b)	$	233,345	$	20,660	$	(784)	$	253,221	$	1,282
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^(b)	$	225,780	$	8,419	$	(4,808)	$	229,391	$	1,211

(b)At September 30, 2019 and December 31, 2018, bonds available for sale held by us that were below investment grade or not rated totaled $28.0 billion and $28.8 billion, respectively.

The fair value and gross unrealized losses on AIG's available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position

	Less than 12 Months				12 Months or More				Total
				Gross				Gross				Gross
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in millions)		Value		Losses		Value		Losses		Value		Losses
September 30, 2019
Bonds available for sale:
U.S. government and government sponsored entities	$	136	$	1	$	43	$	-	$	179	$	1
Obligations of states, municipalities and political
subdivisions		383		6		256		11		639		17
Non-U.S. governments		919		27		443		52		1,362		79
Corporate debt		8,794		294		3,244		240		12,038		534
RMBS		2,671		23		1,778		39		4,449		62
CMBS		640		4		343		8		983		12
CDO/ABS		3,979		51		1,892		28		5,871		79
Total bonds available for sale	$	17,522	$	406	$	7,999	$	378	$	25,521	$	784
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

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
September 30, 2019
Due in one year or less	$	10,910	$	11,107	$	1,373	$	1,339
Due after one year through five years		45,243		46,583		5,878		5,631
Due after five years through ten years		43,042		45,877		3,947		3,756
Due after ten years		73,060		84,153		3,651		3,492
Mortgage-backed, asset-backed and collateralized		61,090		65,501		11,456		11,303
Total	$	233,345	$	253,221	$	26,305	$	25,521
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

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

	Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018			2019					2018
		Gross		Gross		Gross		Gross		Gross		Gross		Gross		Gross
	Realized		Realized		Realized		Realized		Realized		Realized		Realized		Realized
(in millions)		Gains		Losses		Gains		Losses		Gains		Losses		Gains		Losses
Fixed maturity securities	$	198	$	70	$	82	$	71	$	464	$	280	$	252	$	244
Equity securities		-		-		-		-		-		-		16		-
Total	$	198	$	70	$	82	$	71	$	464	$	280	$	268	$	244

The fair value of AIG's other securities

		September 30, 2019				December 31, 2018
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	2,296	25	%	$	2,665	21	%
Non-U.S. governments		-	-			45	-
Corporate debt		18	-			1,671	13
Mortgage-backed, asset-backed and collateralized:
RMBS		1,297	14			1,714	14
CMBS		403	5			388	3
CDO/ABS and other collateralized^*		4,313	47			4,932	39
Total mortgage-backed, asset-backed and collateralized		6,013	66			7,034	56
Total fixed maturity securities		8,327	91			11,415	90
Equity securities		771	9			1,253	10
Total	$	9,098	100	%	$	12,668	100	%

*There were no U.S. government agency-backed ABS at September 30, 2019. Includes $178 million of U.S. government agency-backed ABS at December 31, 2018.

Components of other invested assets

		September 30,		December 31,
(in millions)		2019		2018
Alternative investments^{(a) (b)}	$	8,532	$	8,966
Investment real estate^(c)		9,491		8,935
All other investments		1,463		1,440
Total	$	19,486	$	19,341

(b)At September 30, 2019, approximately 70 percent of our hedge fund portfolio is available for redemption in 2019. The remaining 30 percent will be available for redemption between 2020 and 2027.

(c)Net of accumulated depreciation of $710 million and $598 million at September 30, 2019 and December 31, 2018, respectively.

Components of net investment income

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Available for sale fixed maturity securities, including short-term investments	$	2,698	$	2,629	$	8,052	$	7,775
Other fixed maturity securities^(a)		333		60		941		29
Equity securities		(51)		(21)		6		(50)
Interest on mortgage and other loans		495		455		1,511		1,352
Alternative investments^(b)		115		329		879		837
Real estate		96		72		227		133
Other investments^(a)		(143)		(13)		(203)		11
Total investment income		3,543		3,511		11,413		10,087
Investment expenses		135		115		381		365
Net investment income	$	3,408	$	3,396	$	11,032	$	9,722

(a)In the third quarter of 2019, we reclassified $96 million in net investment income of bonds recorded at fair value from Other investments to Other fixed maturity securities.

Net Realized Capital Gains and Losses

Components of net realized capital gains (losses)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Sales of fixed maturity securities	$	128	$	11	$	184	$	8
Sales of equity securities		-		-		-		16
Other-than-temporary impairments:
Change in intent		-		(3)		(3)		(52)
Foreign currency declines		(6)		(1)		(15)		(13)
Issuer-specific credit events		(17)		(30)		(113)		(92)
Adverse projected cash flows		(1)		(1)		(6)		(1)
Provision for loan losses		(25)		(23)		(35)		(73)
Foreign exchange transactions		(203)		(21)		(242)		(155)
Variable annuity embedded derivatives, net of related hedges		311		(185)		10		(2)
All other derivatives and hedge accounting		466		(1)		601		149
Loss on sale of private equity funds		-		(311)		-		(311)
Other		276		54		506		161
Net realized capital gains (losses)	$	929	$	(511)	$	887	$	(365)

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

The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	4,377	$	(920)	$	16,265	$	(8,858)
Other investments		-		(31)		(68)		(59)
Total increase (decrease) in unrealized appreciation (depreciation) of investments	$	4,377	$	(951)	$	16,197	$	(8,917)

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

Three Months Ended September 30,	2019						2018
				Other						Other
			Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	(51)	$	105	$	54	$	(13)	$	183	$	170
Less: Net gains and losses recognized during the period on equity
securities sold during the period		18		13		31		28		18		46
Unrealized gains and losses recognized during the reporting
period on equity securities still held at the reporting date	$	(69)	$	92	$	23	$	(41)	$	165	$	124

Nine Months Ended September 30,	2019						2018
				Other						Other
			Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	6	$	615	$	621	$	(41)	$	497	$	456
Less: Net gains and losses recognized during the period on equity
securities sold during the period		30		169		199		34		45		79
Unrealized gains and losses recognized during the reporting
period on equity securities still held at the reporting date	$	(24)	$	446	$	422	$	(75)	$	452	$	377

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Balance, beginning of period	$	34	$	188	$	-	$	526
Increases due to:
Credit impairments on new securities subject to impairment losses		10		15		105		32
Additional credit impairments on previously impaired securities		8		16		14		61
Reductions due to:
Credit impaired securities fully disposed for which there was no
prior intent or requirement to sell		(3)		(12)		(62)		(143)
Accretion on securities previously impaired due to credit^*		(7)		(164)		(15)		(433)
Balance, end of period	$	42	$	43	$	42	$	43

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

(in millions)	At Date of Acquisition
Contractually required payments (principal and interest)	$	35,522
Cash flows expected to be collected^*		29,095
Recorded investment in acquired securities		19,648

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

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

(in millions)	September 30, 2019		December 31, 2018
Outstanding principal balance	$	11,016	$	12,495
Amortized cost		7,434		8,646
Fair value		9,171		10,280

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

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Balance, beginning of period	$	6,402	$	7,461	$	7,210	$	7,501
Newly purchased PCI securities		4		5		17		32
Accretion		(172)		(176)		(495)		(553)
Effect of changes in interest rate indices		(278)		15		(678)		189
Net reclassification from (to) non-accretable difference,
including effects of prepayments		(162)		93		(260)		229
Balance, end of period	$	5,794	$	7,398	$	5,794	$	7,398

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

(in millions)		September 30, 2019		December 31, 2018
Fixed maturity securities available for sale	$	2,781	$	1,050
Other bond securities, at fair value	$	-	$	122

Transfer of Certain Financial Assets Accounted for as Secured Borrowings

	Remaining Contractual Maturity of the Agreements
(in millions)	Overnight and Continuous			up to 30 days		31 - 90 days		91 - 364 days		365 days or greater		Total
September 30, 2019
Bonds available for sale:
Non-U.S. governments	$	64	$	61	$	-	$	-	$	-	$	125
Corporate debt		28		104		-		-		-		132
Other bond securities:
U.S. government and government sponsored entities		-		-		-		-		-		-
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		-		-		-		-		-
Total	$	92	$	165	$	-	$	-	$	-	$	257

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

	Remaining Contractual Maturity of the Agreements
(in millions)		Overnight and Continuous		up to 30 days		31 - 90 days		91 - 364 days		365 days or greater		Total
September 30, 2019
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	-	$	262	$	128	$	-	$	390
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		1,062		635		437		-		2,134
Total	$	-	$	1,062	$	897	$	565	$	-	$	2,524

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
Total	$	-	$	401	$	483	$	-	$	-	$	884

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

(in millions)		September 30, 2019		December 31, 2018
Securities collateral pledged to us	$	2,075	$	426
Amount sold or repledged by us		35		106

LENDING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2019

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable

	September 30,			December 31,
(in millions)		2019		2018
Commercial mortgages^*	$	34,954	$	32,882
Residential mortgages		6,525		6,532
Life insurance policy loans		2,096		2,147
Commercial loans, other loans and notes receivable		1,930		1,971
Total mortgage and other loans receivable		45,505		43,532
Allowance for credit losses		(430)		(397)
Mortgage and other loans receivable, net	$	45,075	$	43,135

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

	Debt Service Coverage Ratios^(a)
(in millions)		>1.20X		1.00X - 1.20X		<1.00X		Total
September 30, 2019
Loan-to-Value Ratios^(b)
Less than 65%	$	20,822	$	2,771	$	173	$	23,766
65% to 75%		9,744		677		93		10,514
76% to 80%		173		19		13		205
Greater than 80%		182		143		144		469
Total commercial mortgages	$	30,921	$	3,610	$	423	$	34,954

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

Schedule of credit quality indicators for the commercial mortgage loans

	Number															Percent
	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total^(c)	Total $
September 30, 2019
Credit Quality Performance
Indicator:
In good standing	747	$	13,263	$	9,903	$	5,479	$	3,348	$	2,337	$	519	$	34,849	100	%
Restructured^(a)	2		-		90		-		-		15		-		105	-
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	749	$	13,263	$	9,993	$	5,479	$	3,348	$	2,352	$	519	$	34,954	100	%
Allowance for credit losses:
Specific		$	-	$	2	$	1	$	-	$	6	$	-	$	9	-	%
General			93		141		44		28		15		5		326	1
Total allowance for credit losses		$	93	$	143	$	45	$	28	$	21	$	5	$	335	1	%

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	%

(b)Does not reflect allowance for credit losses.

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

Nine Months Ended September 30,	2019							2018
		Commercial			Other				Commercial			Other
(in millions)		Mortgages			Loans		Total		Mortgages			Loans		Total
Allowance, beginning of year	$	318		$	79	$	397	$	247		$	75	$	322
Loans charged off		(2)			-		(2)		(17)			-		(17)
Recoveries of loans previously charged off		-			-		-		-			-		-
Net charge-offs		(2)			-		(2)		(17)			-		(17)
Provision for loan losses		19			16		35		66			8		74
Allowance, end of period	$	335	*	$	95	$	430	$	296	*	$	83	$	379

*Of the total allowance, $10 million and $3 million relate to individually assessed credit losses on $151 million and $25 million of commercial mortgages at September 30, 2019 and 2018, respectively.

VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2019

Variable Interest Entity Primary Beneficiary

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities

		Real Estate and				Affordable
		Investment		Securitization		Housing
(in millions)		Entities^(d)		Vehicles^(e)		Partnerships		Other		Total
September 30, 2019
Assets:
Bonds available for sale	$	211	$	7,217	$	-	$	-	$	7,428
Other bond securities		-		3,641		-		-		3,641
Mortgage and other loans receivable		-		3,520		-		-		3,520
Other invested assets		5,774		-		3,518		33		9,325
Other^(a)		444		1,934		498		49		2,925
Total assets^(b)	$	6,429	$	16,312	$	4,016	$	82	$	26,839
Liabilities:
Long-term debt	$	3,194	$	3,720	$	2,121	$	4	$	9,039
Other^(c)		400		156		184		23		763
Total liabilities	$	3,594	$	3,876	$	2,305	$	27	$	9,802
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

(a) Comprised primarily of Short-term investments and Other assets at September 30, 2019 and December 31, 2018.

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

(d) At September 30, 2019 and December 31, 2018, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $2.7 billion and $1.4 billion, respectively.

Variable Interest Entity Not Primary Beneficiary

Variable Interest Entity [Line Items]

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

			Maximum Exposure to Loss
		Total VIE		On-Balance		Off-Balance
(in millions)		Assets		Sheet^(b)		Sheet			Total
September 30, 2019
Real estate and investment entities^(a)	$	278,064	$	6,537	$	3,553		$	10,090
Affordable housing partnerships		3,358		462		-			462
Other		5,387		326		-	^(c)		326
Total	$	286,809	$	7,325	$	3,553		$	10,878
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

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

(b) At September 30, 2019 and December 31, 2018, $7.0 billion and $7.4 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

Notional amounts and fair values of derivative instruments

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

+ References + Details

DERIVATIVES AND HEDGE ACCOUNTING (Tables)

9 Months Ended

Sep. 30, 2019

DERIVATIVES AND HEDGE ACCOUNTING

	September 30, 2019								December 31, 2018
	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	$	624	$	5	$	410	$	8	$	10	$	-	$	866	$	19
Foreign exchange contracts		6,614		558		2,212		78		6,357		363		2,536		147
Derivatives not designated
as hedging instruments:^(a)
Interest rate contracts		60,452		4,377		32,595		2,848		42,821		2,890		27,329		2,004
Foreign exchange contracts		11,360		1,104		6,469		862		11,134		801		5,434		711
Equity contracts		20,218		797		8,073		88		17,807		398		2,399		15
Credit contracts^(b)		44		1		943		121		8		1		1,406		236
Other contracts^(c)		40,804		15		58		8		39,070		15		58		6
Total derivatives, gross	$	140,116	$	6,857	$	50,760	$	4,013	$	117,207	$	4,468	$	40,028	$	3,138
Counterparty netting^(d)				(2,795)				(2,795)				(1,713)				(1,713)
Cash collateral^(e)				(2,937)				(133)				(1,840)				(187)
Total derivatives on condensed
consolidated balance sheets^(f)			$	1,125			$	1,085			$	915			$	1,238

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

(c)Consists primarily of stable value wraps and contracts with multiple underlying exposures.

(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:
	Hedging		Excluded		Hedged
(in millions)	Derivatives^(a)		Components^(b)		Items		Net Impact
Three Months Ended September 30, 2019
Interest rate contracts:
Realized capital gains/(losses)	$	-	$	-	$	-	$	-
Interest credited to policyholder account balances		4		-		(4)		-
Net investment income		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		228		41		(228)		41
Three Months Ended September 30, 2018
Interest rate contracts:
Realized capital gains/(losses)	$	(1)	$	-	$	1	$	-
Interest credited to policyholder account balances		-		-		-		-
Net investment income		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		(16)		5		16		5
Nine Months Ended September 30, 2019
Interest rate contracts:
Realized capital gains/(losses)	$	-	$	-	$	-	$	-
Interest credited to policyholder account balances		18		-		(18)		-
Net investment income		(1)		-		1		-
Foreign exchange contracts:
Realized capital gains/(losses)		278		84		(278)		84
Nine Months Ended September 30, 2018
Interest rate contracts:
Realized capital gains/(losses)	$	(9)	$	-	$	10	$	1
Interest credited to policyholder account balances		-		-		-		-
Net investment income		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		175		9		(175)		9

(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness.

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

	Gains (Losses) Recognized in Earnings
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
By Derivative Type:
Interest rate contracts	$	1,078	$	(270)	$	2,052	$	(892)
Foreign exchange contracts		342		43		545		295
Equity contracts		96		(199)		(23)		(386)
Credit contracts		26		6		35		18
Other contracts		14		18		48		52
Embedded derivatives		(756)		229		(2,037)		1,164
Total	$	800	$	(173)	$	620	$	251
By Classification:
Policy fees	$	16	$	17	$	51	$	51
Net investment income		(3)		-		(58)		(3)
Net realized capital gains (losses)		780		(223)		611		133
Other income		-		35		-		76
Policyholder benefits and claims incurred		7		(2)		16		(6)
Total	$	800	$	(173)	$	620	$	251

Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense

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
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-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
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-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
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-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
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-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

INSURANCE LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2019

Claims Development [Line Items]

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2019		2018		2019		2018
Liability for unpaid loss and loss adjustment expenses, beginning of period	$	81,057	$	76,713	$	83,639	$	78,393
Reinsurance recoverable		(31,333)		(27,406)		(31,690)		(26,708)
Net Liability for unpaid loss and loss adjustment expenses, beginning of period		49,724		49,307		51,949		51,685
Losses and loss adjustment expenses incurred:
Current year		5,150		6,670		14,750		15,800
Prior years, excluding discount and amortization of deferred gain		(74)		949		(221)		884
Prior years, discount charge (benefit)		276		3		1,017		(174)
Prior years, amortization of deferred gain on retroactive reinsurance^(a)		13		(175)		(129)		(283)
Total losses and loss adjustment expenses incurred		5,365		7,447		15,417		16,227
Losses and loss adjustment expenses paid:
Current year		(1,702)		(1,791)		(3,194)		(3,289)
Prior years		(4,652)		(4,526)		(15,334)		(14,312)
Total losses and loss adjustment expenses paid		(6,354)		(6,317)		(18,528)		(17,601)
Other changes:
Foreign exchange effect		(172)		(236)		(165)		(393)
Acquisitions^(b)		-		3,020		-		3,020
Retroactive reinsurance adjustment (net of discount)^(c)		96		(464)		(14)		(181)
Total other changes		(76)		2,320		(179)		2,446
Liability for unpaid loss and loss adjustment expenses, end of period:
Net liability for unpaid losses and loss adjustment expenses		48,659		52,757		48,659		52,757
Reinsurance recoverable		31,224		29,202		31,224		29,202
Total	$	79,883	$	81,959	$	79,883	$	81,959

(b) Amounts relate to the acquisition of Validus in July 2018.

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

	September 30, 2019						December 31, 2018
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio		Total	Insurance			Portfolio		Total
U.S. workers' compensation	$	2,138	$	698	$	2,836	$	2,782	$	973	$	3,755
Retroactive reinsurance		(1,246)		-		(1,246)		(1,720)		-		(1,720)
Total reserve discount^*	$	892	$	698	$	1,590	$	1,062	$	973	$	2,035

*Excludes $161 million and $163 million of discount related to certain long tail liabilities in the United Kingdom at September 30, 2019 and December 31, 2018, respectively.

Three Months Ended September 30,	2019						2018
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio		Total	Insurance			Portfolio		Total
Current accident year	$	41	$	-	$	41	$	89	$	-	$	89
Accretion and other adjustments
to prior year discount		(26)		(56)		(82)		(7)		(12)		(19)
Effect of interest rate changes		(136)		(58)		(194)		13		3		16
Net reserve discount
benefit (charge)		(121)		(114)		(235)		95		(9)		86
Change in discount on loss reserves
ceded under retroactive reinsurance		43		-		43		(46)		-		(46)
Net change in total reserve
discount^(a)	$	(78)	$	(114)	$	(192)	$	49	$	(9)	$	40

Nine Months Ended September 30,	2019						2018
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio		Total	Insurance			Portfolio		Total
Current accident year	$	97	$	-	$	97	$	131	$	-	$	131
Accretion and other adjustments
to prior year discount		(269)		(80)		(349)		(95)		(42)		(137)
Effect of interest rate changes		(473)		(195)		(668)		232		79		311
Net reserve discount
benefit (charge)		(645)		(275)		(920)		268		37		305
Change in discount on loss reserves
ceded under retroactive reinsurance		475		-		475		(154)		-		(154)
Net change in total reserve
discount^(b)	$	(170)	$	(275)	$	(445)	$	114	$	37	$	151

(a) Excludes $(27) million and $12 million discount related to certain long tail liabilities in the United Kingdom for the three-month periods ended September 30, 2019 and 2018, respectively.

(b) Excludes $(1) million and $10 million discount related to certain long tail liabilities in the United Kingdom for the nine-month periods ended September 30, 2019 and 2018, respectively.

EQUITY (Tables)

9 Months Ended

Sep. 30, 2019

EQUITY

Rollforward of common stock outstanding

Nine Months Ended September 30, 2019	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Shares, beginning of year	1,906,671,492	(1,040,062,063)	866,609,429
Shares issued	-	3,339,817	3,339,817
Shares repurchased	-	-	-
Shares, end of period	1,906,671,492	(1,036,722,246)	869,949,246

Dividends Paid

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 Common Share
August 7, 2019	September 17, 2019	September 30, 2019	$	0.32
May 6, 2019	June 14, 2019	June 28, 2019		0.32
February 13, 2019	March 15, 2019	March 29, 2019		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

Repurchases Of Common Stock and Warrant

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

Nine Months Ended September 30,
(in millions)		2019		2018
Aggregate repurchases of common stock	$	-	$	994
Total number of common shares repurchased		-		18
Aggregate repurchases of warrants	$	-	$	6
Total number of warrants repurchased^*		-		-

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, June 30, 2019, net of tax	$	720	$	8,034	$	(2,692)	$	(1,079)	$	8	$	4,991
Change in unrealized appreciation (depreciation) of
investments		(9)		4,386		-		-		-		4,377
Change in deferred policy acquisition costs
adjustment and other		11		(522)		-		-		-		(511)
Change in future policy benefits		-		(3,042)		-		-		-		(3,042)
Change in foreign currency translation adjustments		-		-		(24)		-		-		(24)
Change in net actuarial loss		-		-		-		13		-		13
Change in prior service credit		-		-		-		(1)		-		(1)
Change in deferred tax liability		(4)		(166)		(10)		(5)		-		(185)
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		1		1
Total other comprehensive income (loss)		(2)		656		(34)		7		1		628
Noncontrolling interests		-		5		(1)		-		-		4
Balance, September 30, 2019, net of tax	$	718	$	8,685	$	(2,725)	$	(1,072)	$	9	$	5,615

Balance, December 31, 2018, net of tax	$	(38)	$	2,426	$	(2,725)	$	(1,086)	$	10	$	(1,413)
Change in unrealized appreciation of investments		935		15,262		-		-		-		16,197
Change in deferred policy acquisition costs
adjustment and other		(3)		(2,246)		-		-		-		(2,249)
Change in future policy benefits		-		(5,291)		-		-		-		(5,291)
Change in foreign currency translation adjustments		-		-		31		-		-		31
Change in net actuarial loss		-		-		-		29		-		29
Change in prior service credit		-		-		-		(2)		-		(2)
Change in deferred tax liability		(176)		(1,447)		(30)		(13)		-		(1,666)
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		(1)		(1)
Total other comprehensive income (loss)		756		6,278		1		14		(1)		7,048
Noncontrolling interests		-		19		1		-		-		20
Balance, September 30, 2019, net of tax	$	718	$	8,685	$	(2,725)	$	(1,072)	$	9	$	5,615

		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, June 30, 2018, net of tax	$	(234)	$	3,944	$	(2,426)	$	(1,062)	$	8	$	230
Cumulative effect of change in accounting
principles		-		-		-		-		-		-
Change in unrealized appreciation (depreciation) of
investments		350		(1,301)		-		-		-		(951)
Change in deferred policy acquisition costs
adjustment and other		(205)		216		-		-		-		11
Change in future policy benefits		-		340		-		-		-		340
Change in foreign currency translation adjustments		-		-		(131)		-		-		(131)
Change in net actuarial loss		-		-		-		16		-		16
Change in prior service cost		-		-		-		-		-		-
Change in deferred tax asset (liability)		(38)		(13)		2		(2)		-		(51)
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		-		-
Total other comprehensive income (loss)		107		(758)		(129)		14		-		(766)
Noncontrolling interests		-		-		-		-		-		-
Balance, September 30, 2018, net of tax	$	(127)	$	3,186	$	(2,555)	$	(1,048)	$	8	$	(536)

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		(1,258)		(7,659)		-		-		-		(8,917)
Change in deferred policy acquisition costs
adjustment and other		(91)		1,121		-		-		-		1,030
Change in future policy benefits		-		1,464		-		-		-		1,464
Change in foreign currency translation adjustments		-		-		(154)		-		-		(154)
Change in net actuarial loss		-		-		-		54		-		54
Change in prior service credit		-		-		-		(2)		-		(2)
Change in deferred tax asset (liability)		260		852		(27)		14		-		1,099
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		1		1
Total other comprehensive income (loss)		(1,089)		(4,222)		(181)		66		1		(5,425)
Noncontrolling interests		-		-		-		-		-		-
Balance, September 30, 2018, net of tax	$	(127)	$	3,186	$	(2,555)	$	(1,048)	$	8	$	(536)

Other comprehensive income (loss) reclassification adjustments

		Unrealized Appreciation
		(Depreciation) of Fixed								Fair Value of
		Maturity Investments		Unrealized						Liabilities Under
		on Which Other-Than-		Appreciation		Foreign		Retirement		Fair Value Option
		Temporary Credit		(Depreciation)		Currency		Plan		Attributable to
		Impairments Were		of All Other		Translation		Liabilities		Changes in
(in millions)		Recognized		Investments		Adjustments		Adjustment		Own Credit Risk		Total
Three Months Ended September 30, 2019
Unrealized change arising during period	$	3	$	949	$	(24)	$	3	$	1	$	932
Less: Reclassification adjustments
included in net income		1		127		-		(9)		-		119
Total other comprehensive income (loss),
before income tax expense		2		822		(24)		12		1		813
Less: Income tax expense		4		166		10		5		-		185
Total other comprehensive income (loss),
net of income tax expense	$	(2)	$	656	$	(34)	$	7	$	1	$	628
Three Months Ended September 30, 2018
Unrealized change arising during period	$	146	$	(705)	$	(131)	$	7	$	-	$	(683)
Less: Reclassification adjustments
included in net income		1		40		-		(9)		-		32
Total other comprehensive income (loss),
before income tax expense (benefit)		145		(745)		(131)		16		-		(715)
Less: Income tax expense (benefit)		38		13		(2)		2		-		51
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	107	$	(758)	$	(129)	$	14	$	-	$	(766)
Nine Months Ended September 30, 2019
Unrealized change arising during period	$	929	$	7,912	$	31	$	3	$	(1)	$	8,874
Less: Reclassification adjustments
included in net income		(3)		187		-		(24)		-		160
Total other comprehensive income (loss),
before income tax expense		932		7,725		31		27		(1)		8,714
Less: Income tax expense		176		1,447		30		13		-		1,666
Total other comprehensive income (loss),
net of income tax expense	$	756	$	6,278	$	1	$	14	$	(1)	$	7,048
Nine Months Ended September 30, 2018
Unrealized change arising during period	$	(1,344)	$	(5,055)	$	(154)	$	26	$	1	$	(6,526)
Less: Reclassification adjustments
included in net income		5		19		-		(26)		-		(2)
Total other comprehensive income (loss),
before income tax expense (benefit)		(1,349)		(5,074)		(154)		52		1		(6,524)
Less: Income tax expense (benefit)		(260)		(852)		27		(14)		-		(1,099)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(1,089)	$	(4,222)	$	(181)	$	66	$	1	$	(5,425)

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

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

	Three Months Ended September 30,
(in millions)		2019		2018
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments		$	1	$	1		Other realized capital gains
Total			1		1
Unrealized appreciation (depreciation) of all other investments
Investments			127		10		Other realized capital gains
Deferred acquisition costs adjustment			-		30		Amortization of deferred policy acquisition costs
Future policy benefits			-		-		Policyholder benefits and losses incurred
Total			127		40
Change in retirement plan liabilities adjustment
Prior-service credit			-		-		*
Actuarial losses			(9)		(9)		*
Total			(9)		(9)
Total reclassifications for the period		$	119	$	32
	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income

	Nine Months Ended September 30,
(in millions)		2019		2018
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments		$	(3)	$	5		Other realized capital gains
Total			(3)		5
Unrealized appreciation (depreciation) of all other investments
Investments			187		19		Other realized capital gains
Deferred acquisition costs adjustment			-		-		Amortization of deferred policy acquisition costs
Future policy benefits			-		-		Policyholder benefits and losses incurred
Total			187		19
Change in retirement plan liabilities adjustment
Prior-service credit			-		1		*
Actuarial losses			(24)		(27)		*
Total			(24)		(26)
Total reclassifications for the period		$	160	$	(2)

*These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 14.

Computation of basic and diluted EPS

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

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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 210
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-Subparagraph (SX 210.5-02(28))
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.5-02(27))
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+ Details

EARNINGS PER COMMON SHARE (EPS) (Tables)

9 Months Ended

Sep. 30, 2019

EARNINGS PER SHARE (EPS)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions, except per common share data)		2019		2018		2019		2018
Numerator for EPS:
Income (loss) from continuing operations	$	973	$	(1,220)	$	3,301	$	661
Less: Net income from continuing operations attributable to noncontrolling interests		317		-		881		5
Less: Preferred stock dividends		8		-		15		-
Income (loss) attributable to AIG common shareholders
from continuing operations		648		(1,220)		2,405		656
Loss from discontinued operations, net of income tax expense		-		(39)		(1)		(40)
Net income (loss) attributable to AIG common shareholders	$	648	$	(1,259)	$	2,404	$	616
Denominator for EPS:
Weighted average common shares outstanding — basic		877,009,495		895,237,359		876,262,372		902,081,555
Dilutive common shares		18,804,915		-		10,958,744		14,736,714
Weighted average common shares outstanding — diluted^(a)(b)		895,814,410		895,237,359		887,221,116		916,818,269
Income (loss) per common share attributable to AIG common
shareholders:
Basic:
Income (loss) from continuing operations	$	0.74	$	(1.37)	$	2.74	$	0.72
Income (loss) from discontinued operations	$	-	$	(0.04)	$	-	$	(0.04)
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	$	-	$	(0.04)	$	-	$	(0.04)
Income (loss) attributable to AIG common shareholders	$	0.72	$	(1.41)	$	2.71	$	0.67

EMPLOYEE BENEFITS (Tables)

9 Months Ended

Sep. 30, 2019

Defined Benefit Plan Disclosure [Line Items]

Components of net periodic benefit cost

	Pension						Postretirement
		U.S.		Non-U.S.				U.S.		Non-U.S.
(in millions)		Plans		Plans		Total		Plans		Plans		Total
Three Months Ended September 30, 2019
Components of net periodic benefit cost:
Service cost	$	2	$	6	$	8	$	-	$	-	$	-
Interest cost		44		3		47		2		-		2
Expected return on assets		(58)		(5)		(63)		-		-		-
Amortization of prior service cost		-		-		-		-		-		-
Amortization of net loss		9		1		10		-		-		-
Net periodic benefit cost (credit)		(3)		5		2		2		-		2
Settlement charges		-		-		-		-		-		-
Net benefit cost (credit)	$	(3)	$	5	$	2	$	2	$	-	$	2
Three Months Ended September 30, 2018
Components of net periodic benefit cost:
Service cost	$	-	$	6	$	6	$	-	$	-	$	-
Interest cost		41		4		45		1		1		2
Expected return on assets		(72)		(6)		(78)		-		-		-
Amortization of prior service cost		-		-		-		-		-		-
Amortization of net loss		7		2		9		-		-		-
Net periodic benefit cost (credit)		(24)		6		(18)		1		1		2
Settlement charges		-		-		-		-		-		-
Net benefit cost (credit)	$	(24)	$	6	$	(18)	$	1	$	1	$	2
Nine Months Ended September 30, 2019
Components of net periodic benefit cost:
Service cost	$	7	$	16	$	23	$	1	$	-	$	1
Interest cost		131		11		142		5		1		6
Expected return on assets		(172)		(16)		(188)		-		-		-
Amortization of prior service cost (credit)		-		1		1		-		(1)		(1)
Amortization of net (gain) loss		25		4		29		(1)		-		(1)
Net periodic benefit cost (credit)		(9)		16		7		5		-		5
Settlement credit		-		(3)		(3)		-		-		-
Net benefit cost (credit)	$	(9)	$	13	$	4	$	5	$	-	$	5
Nine Months Ended September 30, 2018
Components of net periodic benefit cost:
Service cost	$	4	$	17	$	21	$	1	$	1	$	2
Interest cost		122		12		134		4		2		6
Expected return on assets		(213)		(19)		(232)		-		-		-
Amortization of prior service cost (credit)		-		1		1		(1)		(1)		(2)
Amortization of net loss		21		6		27		-		-		-
Net periodic benefit cost (credit)		(66)		17		(49)		4		2		6
Settlement charges		-		-		-		-		-		-
Net benefit cost (credit)	$	(66)	$	17	$	(49)	$	4	$	2	$	6

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

9 Months Ended

Sep. 30, 2019

INFORMATION PROVIDED IN CONNECTION WITH OUTSTADING DEBT

Condensed Consolidating Balance Sheets

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and	Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
September 30, 2019
Assets:
Short-term investments^(a)	$	3,229	$	2	$	-	$	13,374	$	(2,492)	$	14,113
Other investments^(b)		4,505		-		-		322,375		-		326,880
Total investments		7,734		2		-		335,749		(2,492)		340,993
Cash		3		20		1		3,337		-		3,361
Loans to subsidiaries^(c)		35,142		-		-		752		(35,894)		-
Investment in consolidated subsidiaries^(c)		40,115		3,814		33,315		-		(77,244)		-
Other assets, including deferred income taxes^(d)		15,583		1,792		18		165,222		(1,847)		180,768
Total assets	$	98,577	$	5,628	$	33,334	$	505,060	$	(117,477)	$	525,122
Liabilities:
Insurance liabilities	$	-	$	-	$	-	$	305,993	$	-	$	305,993
Long-term debt		21,905		355		643		12,359		-		35,262
Other liabilities, including intercompany balances^(b)		10,321		8		23		110,413		(4,343)		116,422
Loans from subsidiaries^(c)		748		-		-		35,142		(35,890)		-
Total liabilities		32,974		363		666		463,907		(40,233)		457,677
Total AIG shareholders’ equity		65,603		5,265		32,668		39,311		(77,244)		65,603
Non-redeemable noncontrolling interests		-		-		-		1,842		-		1,842
Total equity		65,603		5,265		32,668		41,153		(77,244)		67,445
Total liabilities and equity	$	98,577	$	5,628	$	33,334	$	505,060	$	(117,477)	$	525,122

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

(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
Three Months Ended September 30, 2019
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	998	$	28	$	1,011	$	-	$	(2,037)	$	-
Other income		279		4		-		12,710		(79)		12,914
Total revenues		1,277		32		1,011		12,710		(2,116)		12,914
Expenses:
Interest expense		245		13		12		81		(3)		348
(Gain) loss on extinguishment of debt		-		(9)		-		9		-		-
Other expenses		188		7		1		11,185		(75)		11,306
Total expenses		433		11		13		11,275		(78)		11,654
Income (loss) from continuing operations before income
tax expense (benefit)		844		21		998		1,435		(2,038)		1,260
Income tax expense (benefit)		187		-		(2)		102		-		287
Income (loss) from continuing operations		657		21		1,000		1,333		(2,038)		973
Income (loss) from discontinued operations,
net of income taxes		(1)		-		-		1		-		-
Net income (loss)		656		21		1,000		1,334		(2,038)		973
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		317		-		317
Net income (loss) attributable to AIG	$	656	$	21	$	1,000	$	1,017	$	(2,038)	$	656
Three Months Ended September 30, 2018
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	(989)	$	(93)	$	1,316	$	-	$	(234)	$	-
Other income		183		23		1		11,412		(133)		11,486
Total revenues		(806)		(70)		1,317		11,412		(367)		11,486
Expenses:
Interest expense		244		10		12		63		(3)		326
Loss on extinguishment of debt		-		-		-		1		-		1
Other expenses		132		2		1		12,513		38		12,686
Total expenses		376		12		13		12,577		35		13,013
Income (loss) from continuing operations before income
tax expense (benefit)		(1,182)		(82)		1,304		(1,165)		(402)		(1,527)
Income tax expense (benefit)		38		-		(2)		(343)		-		(307)
Income (loss) from continuing operations		(1,220)		(82)		1,306		(822)		(402)		(1,220)
Loss from discontinued operations,
net of income taxes		(39)		-		-		-		-		(39)
Net income (loss)		(1,259)		(82)		1,306		(822)		(402)		(1,259)
Less:
Net income (loss) from continuing operations
attributable to noncontrolling interests		-		-		-		-		-		-
Net income (loss) attributable to AIG	$	(1,259)	$	(82)	$	1,306	$	(822)	$	(402)	$	(1,259)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Nine Months Ended September 30, 2019
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	2,873	$	344	$	2,989	$	-	$	(6,206)	$	-
Other income		843		9		-		37,234		(155)		37,931
Total revenues		3,716		353		2,989		37,234		(6,361)		37,931
Expenses:
Interest expense		741		13		37		277		(11)		1,057
Loss on extinguishment of debt		-		-		-		13		-		13
Other expenses		556		12		2		32,183		(143)		32,610
Total expenses		1,297		25		39		32,473		(154)		33,680
Income (loss) from continuing operations before income
tax expense (benefit)		2,419		328		2,950		4,761		(6,207)		4,251
Income tax expense (benefit)		(2)		-		(4)		956		-		950
Income (loss) from continuing operations		2,421		328		2,954		3,805		(6,207)		3,301
Income (loss) from discontinued operations,
net of income taxes		(2)		-		-		1		-		(1)
Net income (loss)		2,419		328		2,954		3,806		(6,207)		3,300
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		881		-		881
Net income (loss) attributable to AIG	$	2,419	$	328	$	2,954	$	2,925	$	(6,207)	$	2,419
Nine Months Ended September 30, 2018
Revenues:
Equity in earnings of consolidated subsidiaries^*	$	889	$	(93)	$	2,497	$	-	$	(3,293)	$	-
Other income		750		23		1		34,103		(48)		34,829
Total revenues		1,639		(70)		2,498		34,103		(3,341)		34,829
Expenses:
Interest expense		710		10		37		154		(9)		902
Loss on extinguishment of debt		-		-		-		10		-		10
Other expenses		643		2		2		32,357		(39)		32,965
Total expenses		1,353		12		39		32,521		(48)		33,877
Income (loss) from continuing operations before income
tax expense (benefit)		286		(82)		2,459		1,582		(3,293)		952
Income tax expense (benefit)		(370)		-		-		661		-		291
Income (loss) from continuing operations		656		(82)		2,459		921		(3,293)		661
Loss from discontinued operations,
net of income taxes		(40)		-		-		-		-		(40)
Net income (loss)		616		(82)		2,459		921		(3,293)		621
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		5		-		5
Net income (loss) attributable to AIG	$	616	$	(82)	$	2,459	$	916	$	(3,293)	$	616

*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
Three Months Ended September 30, 2019
Net income (loss)	$	656	$	21	$	1,000		$	1,334		$	(2,038)	$	973
Other comprehensive income (loss)		624		-		303			(1,436)			1,137		628
Comprehensive income (loss)		1,280		21		1,303			(102)			(901)		1,601
Total comprehensive income attributable to
noncontrolling interests		-		-		-			321			-		321
Comprehensive income (loss) attributable to AIG	$	1,280	$	21	$	1,303		$	(423)		$	(901)	$	1,280
Three Months Ended September 30, 2018
Net income (loss)	$	(1,259)	$	(82)	$	1,306		$	(822)		$	(402)	$	(1,259)
Other comprehensive income (loss)		(766)		-		(301)			(2,229)	^(a)		2,530	^(a)	(766)
Comprehensive income (loss)		(2,025)		(82)		1,005			(3,051)			2,128		(2,025)
Total comprehensive income attributable to
noncontrolling interests		-		-		-			-			-		-
Comprehensive income (loss) attributable to AIG	$	(2,025)	$	(82)	$	1,005		$	(3,051)		$	2,128	$	(2,025)
Nine Months Ended September 30, 2019
Net income (loss)	$	2,419	$	328	$	2,954		$	3,806		$	(6,207)	$	3,300
Other comprehensive income (loss)		7,028		1		5,521			3,593			(9,095)		7,048
Comprehensive income (loss)		9,447		329		8,475			7,399			(15,302)		10,348
Total comprehensive income attributable to
noncontrolling interests		-		-		-			901			-		901
Comprehensive income (loss) attributable to AIG	$	9,447	$	329	$	8,475		$	6,498		$	(15,302)	$	9,447
Nine Months Ended September 30, 2018
Net income (loss)	$	616	$	(82)	$	2,459		$	921		$	(3,293)	$	621
Other comprehensive income (loss)		(5,425)		-		(3,766)	^(a)		(6,650)	^(a)		10,416	^(a)	(5,425)
Comprehensive income (loss)		(4,809)		(82)		(1,307)			(5,729)			7,123		(4,804)
Total comprehensive income attributable to
noncontrolling interests		-		-		-			5			-		5
Comprehensive income (loss) attributable to AIG	$	(4,809)	$	(82)	$	(1,307)		$	(5,734)		$	7,123	$	(4,809)

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
Nine Months Ended September 30, 2019
Net cash (used in) provided by operating activities	$	2,755	$	101	$	1,462	$	(1,068)	$	(4,039)	$	(789)
Cash flows from investing activities:
Sales of investments		2,090		-		-		46,921		(540)		48,471
Sales of divested businesses, net		-		-		-		2		-		2
Purchase of investments		(2,395)		-		-		(49,654)		540		(51,509)
Loans to subsidiaries - net		534		-		-		(127)		(407)		-
Contributions from (to) subsidiaries - net		(239)		-		-		-		239		-
Net change in short-term investments		(2,242)		-		-		(2,344)		-		(4,586)
Other, net		87		-		-		2,742		-		2,829
Net cash (used in) investing activities		(2,165)		-		-		(2,460)		(168)		(4,793)
Cash flows from financing activities:
Issuance of long-term debt		595		-		-		1,969		-		2,564
Repayments of long-term debt		(1,006)		-		-		(1,415)		-		(2,421)
Issuance of preferred stock		485		-		-		-		-		485
Purchase of common stock		-		-		-		-		-		-
Intercompany loans - net		127		-		-		(534)		407		-
Cash dividends paid on preferred stock		(15)		-		-		-		-		(15)
Cash dividends paid on common stock		(835)		(90)		(1,470)		(2,479)		4,039		(835)
Other, net		(63)		-		-		6,479		(239)		6,177
Net cash (used in) provided by financing activities		(712)		(90)		(1,470)		4,020		4,207		5,955
Effect of exchange rate changes on cash and
restricted cash		-		-		-		39		-		39
Change in cash and restricted cash		(122)		11		(8)		531		-		412
Cash and restricted cash at beginning of year		127		9		9		3,213		-		3,358
Cash and restricted cash at end of period	$	5	$	20	$	1	$	3,744	$	-	$	3,770

Nine Months Ended September 30, 2018
Net cash (used in) provided by operating activities	$	1,389	$	(40)	$	2,003	$	(433)	$	(2,957)	$	(38)
Cash flows from investing activities:
Sales of investments		4,641		-		-		45,218		(3,326)		46,533
Sales of divested businesses, net		-		-		-		10		-		10
Purchase of investments		(1,680)		-		-		(45,574)		3,326		(43,928)
Loans to subsidiaries - net		878		-		-		(50)		(828)		-
Contributions from (to) subsidiaries - net		22		-		-		-		(22)		-
Acquisition of businesses, net of cash and
restricted cash acquired		(5,475)		112		-		311		-		(5,052)
Net change in short-term investments		1,267		-		-		1,144		-		2,411
Other, net		(55)		-		-		(836)		-		(891)
Net cash (used in) provided by investing activities		(402)		112		-		223		(850)		(917)
Cash flows from financing activities:
Issuance of long-term debt		2,470		-		-		1,589		-		4,059
Repayments of long-term debt		(1,493)		-		-		(1,295)		-		(2,788)
Purchase of common stock		(994)		-		-		-		-		(994)
Intercompany loans - net		50		-		-		(878)		828		-
Cash dividends paid on common stock		(858)		(6)		(2,020)		(931)		2,957		(858)
Other, net		(165)		-		-		2,057		22		1,914
Net cash (used in) provided by financing activities		(990)		(6)		(2,020)		542		3,807		1,333
Effect of exchange rate changes on cash and
restricted cash		-		-		-		8		-		8
Change in cash and restricted cash		(3)		66		(17)		340		-		386
Cash and restricted cash at beginning of year		8		-		20		2,709		-		2,737
Cash and restricted cash at end of period	$	5	$	66	$	3	$	3,049	$	-	$	3,123

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
September 30, 2019
Cash	$	3	$	20	$	1	$	3,337	$	-	$	3,361
Restricted cash included in Short-term investments		1		-		-		63		-		64
Restricted cash included in Other assets		1		-		-		344		-		345
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	5	$	20	$	1	$	3,744	$	-	$	3,770

Cash (paid) received during the 2019 period for:
Interest:
Third party	$	(735)	$	(22)	$	(48)	$	(207)	$	-	$	(1,012)
Intercompany		(2)		31		-		(29)		-		-
Taxes:
Income tax authorities	$	(12)	$	-	$	-	$	(181)	$	-	$	(193)
Intercompany		1,035		2		-		(1,037)		-		-

September 30, 2018
Cash	$	3	$	66	$	3	$	2,669	$	-	$	2,741
Restricted cash included in Short-term investments		1		-		-		27		-		28
Restricted cash included in Other assets		1		-		-		353		-		354
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	5	$	66	$	3	$	3,049	$	-	$	3,123

Cash (paid) received during the 2018 period for:
Interest:
Third party	$	(706)	$	14	$	(47)	$	(279)	$	-	$	(1,018)
Intercompany		(1)		-		(1)		2		-		-
Taxes:
Income tax authorities	$	(23)	$	-	$	-	$	(44)	$	-	$	(67)
Intercompany		1,084		-		-		(1,084)		-		-

Supplementary disclosure of non-cash activities

Nine Months Ended September 30,
(in millions)		2019		2018
Intercompany non-cash financing and investing activities:
Capital contributions	$	15	$	2,339
Dividends received in the form of securities		659		745
Return of capital		15		2,706

BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($) item $ / shares	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) item $ / shares	Sep. 30, 2018 USD ($)	Dec. 31, 2018 $ / shares
Basis of Presentation [Line Items]
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 2.50		$ 2.50		$ 2.5
Net income (loss) attributable to AIG	$ 656	$ (1,259)	$ 2,419	$ 616
Income from continuing operations before income tax expense	1,260	$ (1,527)	4,251	$ 952
Adjustments 2018 [Member]
Basis of Presentation [Line Items]
Net income (loss) attributable to AIG	(134)		(138)
Income from continuing operations before income tax expense	$ (169)		$ (170)
Minimum
Basis of Presentation [Line Items]
Number of Countries in which Entity Operates \| item	80		80

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

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2019	Jan. 01, 2019	Jun. 30, 2018	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Lease liability		$ 823,000,000
Right of use asset		$ 724,000,000
Goodwill	$ 4,100,000,000
Cumulative effect of change in accounting principles	$ 625,000,000		$ 0	$ (8,000,000)

SEGMENT INFORMATION (Details - Continuing operations by operating segment) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Total Revenues	$ 12,914	$ 11,486	$ 37,931	$ 34,829
Adjusted pre-tax income (loss)	1,260	(1,527)	4,251	952
AIG Consolidation and Eliminations
Segment Reporting Information [Line Items]
Total Revenues	(153)	(42)	(460)	(214)
Adjusted pre-tax income (loss)	(46)	29	(172)	28
Total AIG Consolidated adjusted revenues and adjusted pre-tax income (loss)
Segment Reporting Information [Line Items]
Total Revenues	12,057	12,035	36,971	35,395
Adjusted pre-tax income (loss)	746	(416)	4,270	2,078
General Insurance \| Reportable Segments
Segment Reporting Information [Line Items]
Total Revenues	7,415	7,982	22,744	22,653
Adjusted pre-tax income (loss)	507	(825)	2,755	253
General Insurance \| Reportable Segments \| North America
Segment Reporting Information [Line Items]
Total Revenues	3,878	4,129	12,001	10,895
Adjusted pre-tax income (loss)	435	(160)	2,087	567
General Insurance \| Reportable Segments \| International
Segment Reporting Information [Line Items]
Total Revenues	3,537	3,853	10,743	11,758
Adjusted pre-tax income (loss)	72	(665)	668	(314)
Life and Retirement \| Reportable Segments
Segment Reporting Information [Line Items]
Total Revenues	3,833	3,146	11,865	10,071
Adjusted pre-tax income (loss)	646	713	2,619	2,567
Life and Retirement \| Reportable Segments \| Individual Retirement
Segment Reporting Information [Line Items]
Total Revenues	1,416	1,335	4,233	4,062
Adjusted pre-tax income (loss)	387	393	1,483	1,354
Life and Retirement \| Reportable Segments \| Group Retirement
Segment Reporting Information [Line Items]
Total Revenues	726	718	2,225	2,209
Adjusted pre-tax income (loss)	203	242	728	774
Life and Retirement \| Reportable Segments \| Life Insurance
Segment Reporting Information [Line Items]
Total Revenues	1,037	809	3,264	2,962
Adjusted pre-tax income (loss)	(7)	16	195	243
Life and Retirement \| Reportable Segments \| Institutional Markets
Segment Reporting Information [Line Items]
Total Revenues	654	284	2,143	838
Adjusted pre-tax income (loss)	63	62	213	196
Other Operations
Segment Reporting Information [Line Items]
Total Revenues	211	135	625	454
Adjusted pre-tax income (loss)	(454)	(417)	(1,256)	(1,133)
Legacy Portfolio
Segment Reporting Information [Line Items]
Total Revenues	751	814	2,197	2,431
Adjusted pre-tax income (loss)	$ 93	$ 84	$ 324	$ 363

SEGMENT INFORMATION (Details - Continuing operations by operating segment - Pretax operating income to pre-tax income) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Reconciling items from adjusted pre-tax income (loss) to pre-tax income (loss):
Changes in fair value of equity securities	$ 350	$ 259	$ 1,216	$ 703
Gain (Loss) on extinguishment of debt	0	(1)	(13)	(10)
Income (loss) from divested businesses	(9)	2	(4)	35
Net reserve discount benefit (charge)	(235)	86	(920)	305
Revenues	12,914	11,486	37,931	34,829
Adjusted pre-tax income (loss)	1,260	(1,527)	4,251	952
Reconciling items from adjusted pre-tax income to pre-tax income \| Total Revenues
Reconciling items from adjusted pre-tax income (loss) to pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed living benefits	25	(5)	214	(109)
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses)	0	0	0	0
Changes in fair value of equity securities	(51)	0	6	0
Professional fees related to regulatory or accounting changes	0	0	0	0
Other income (expense) - net	16	(4)	27	(29)
Gain (Loss) on extinguishment of debt	0	0	0	0
Net realized capital gains (losses)	867	(540)	713	(430)
Income (loss) from divested businesses	0	0	0	0
Non-operating litigation reserves and settlements	0	0	0	2
(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements	0	0	0	0
Net reserve discount benefit (charge)	0	0	0	0
Integration and transaction costs associated with acquired business	0	0	0	0
Restructuring and other costs	0	0	0	0
Reconciling items from adjusted pre-tax income to pre-tax income \| Adjusted Pre-Tax Income (loss)
Reconciling items from adjusted pre-tax income (loss) to pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed living benefits	12	(14)	183	(127)
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses)	(65)	76	(39)	46
Changes in fair value of equity securities	(51)	0	6	0
Professional fees related to regulatory or accounting changes	(3)	0	(5)	0
Other income (expense) - net	0	0	0	0
Gain (Loss) on extinguishment of debt	0	(1)	(13)	(10)
Net realized capital gains (losses)	881	(524)	758	(388)
Income (loss) from divested businesses	(9)	2	(4)	35
Non-operating litigation reserves and settlements	(5)	(5)	(6)	(30)
(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements	59	(605)	211	(607)
Net reserve discount benefit (charge)	(235)	86	(920)	305
Integration and transaction costs associated with acquired business	(3)	(91)	(16)	(91)
Restructuring and other costs	$ (67)	$ (35)	$ (174)	$ (259)

BUSINESS COMBINATION (Details - Pro Forma Income Statement Information) - Validus Holding Ltd [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
BUSINESS COMBINATION
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
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

BUSINESS COMBINATION (Details - Narrative) - USD ($) $ in Millions	Jul. 18, 2018	Sep. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill		$ 4,100
Other invested assets		19,486	$ 19,341
Validus Holding Ltd [Member]
Business Acquisition [Line Items]
Interest acquired	100.00%
Cash consideration paid	$ 5,500
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		$ 128

FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	$ 253,221,000,000		$ 253,221,000,000		$ 229,391,000,000
Other bond securities	8,327,000,000		8,327,000,000		11,415,000,000
Equity securities	771,000,000		771,000,000		1,253,000,000
Other invested assets	6,060,000,000		6,060,000,000		5,894,000,000
Derivative Assets, Fair Value, Gross	6,857,000,000		6,857,000,000		4,468,000,000
Derivative assets, Counterparty netting	(2,795,000,000)		(2,795,000,000)		(1,713,000,000)
Derivative assets, Cash collateral	(2,937,000,000)		(2,937,000,000)		(1,840,000,000)
Derivative assets	1,125,000,000		1,125,000,000		915,000,000
Short-term investments, portion measured at fair value	5,577,000,000		5,577,000,000		3,015,000,000
Other assets	1,185,000,000		1,185,000,000		973,000,000
Separate account assets, at fair value	89,125,000,000		89,125,000,000		81,847,000,000
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	7,166,000,000		7,166,000,000		4,116,000,000
Other policyholder funds	3,440,000,000		3,440,000,000		3,568,000,000
Derivative Liabilities, Fair Value, Gross	4,013,000,000		4,013,000,000		3,138,000,000
Derivative liabilities, Counterparty netting	(2,795,000,000)		(2,795,000,000)		(1,713,000,000)
Derivative liabilities, Cash collateral	(133,000,000)		(133,000,000)		(187,000,000)
Derivative liabilities	1,085,000,000		1,085,000,000		1,238,000,000
Other liabilities	1,140,000,000		1,140,000,000		1,265,000,000
Long-term debt, portion measured at fair value	2,287,000,000		2,287,000,000		2,213,000,000
Fair Value Using Net Asset Value Per Share or its equivalent	5,398,000,000		5,398,000,000		4,966,000,000
U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Assets transferred from Level 1 to Level 2	111,000,000	$ 52,000,000	162,000,000	$ 733,000,000
Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Assets transferred from Level 1 to Level 2	0	$ 0	62,000,000	$ 16,000,000
Recurring Basis
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	253,221,000,000		253,221,000,000		229,391,000,000
Other bond securities	8,327,000,000		8,327,000,000		11,415,000,000
Equity securities	771,000,000		771,000,000		1,253,000,000
Other invested assets	662,000,000		662,000,000		928,000,000
Derivative assets, Counterparty netting	(2,795,000,000)		(2,795,000,000)		(1,713,000,000)
Derivative assets, Cash collateral	(2,937,000,000)		(2,937,000,000)		(1,840,000,000)
Derivative assets, Counterparty netting and cash collateral	(5,732,000,000)		(5,732,000,000)		(3,553,000,000)
Derivative assets	1,125,000,000		1,125,000,000		915,000,000
Short-term investments, portion measured at fair value	5,577,000,000		5,577,000,000		3,015,000,000
Other assets	60,000,000		60,000,000		58,000,000
Separate account assets, at fair value	89,125,000,000		89,125,000,000		81,847,000,000
Fair value assets measured on recurring basis, total	358,868,000,000		358,868,000,000		328,822,000,000
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	7,166,000,000		7,166,000,000		4,116,000,000
Derivative liabilities, Counterparty netting	(2,795,000,000)		(2,795,000,000)		(1,713,000,000)
Derivative liabilities, Cash collateral	(133,000,000)		(133,000,000)		(187,000,000)
Derivative liabilities, Counterparty netting and cash collateral	(2,928,000,000)		(2,928,000,000)		(1,900,000,000)
Derivative liabilities	1,085,000,000		1,085,000,000		1,238,000,000
Other liabilities	55,000,000		55,000,000		27,000,000
Long-term debt, portion measured at fair value	2,287,000,000		2,287,000,000		2,213,000,000
Fair value liabilities measured on recurring basis, total	10,593,000,000		10,593,000,000		7,594,000,000
Recurring Basis \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	4,382,000,000		4,382,000,000		2,890,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	2,856,000,000		2,856,000,000		2,023,000,000
Recurring Basis \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1,662,000,000		1,662,000,000		1,164,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	940,000,000		940,000,000		858,000,000
Recurring Basis \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	797,000,000		797,000,000		398,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	88,000,000		88,000,000		15,000,000
Recurring Basis \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1,000,000		1,000,000		1,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	121,000,000		121,000,000		236,000,000
Recurring Basis \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	15,000,000		15,000,000		15,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	8,000,000		8,000,000		6,000,000
Recurring Basis \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	5,227,000,000		5,227,000,000		3,260,000,000
Other bond securities	2,296,000,000		2,296,000,000		2,665,000,000
Recurring Basis \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	15,745,000,000		15,745,000,000		16,001,000,000
Recurring Basis \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	15,376,000,000		15,376,000,000		14,525,000,000
Other bond securities	0		0		45,000,000
Recurring Basis \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	151,372,000,000		151,372,000,000		130,700,000,000
Other bond securities	18,000,000		18,000,000		1,671,000,000
Recurring Basis \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	32,795,000,000		32,795,000,000		34,377,000,000
Other bond securities	1,297,000,000		1,297,000,000		1,714,000,000
Recurring Basis \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	14,336,000,000		14,336,000,000		12,701,000,000
Other bond securities	403,000,000		403,000,000		388,000,000
Recurring Basis \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	18,370,000,000		18,370,000,000		17,827,000,000
Other bond securities	4,313,000,000		4,313,000,000		4,932,000,000
Recurring Basis \| Level 1
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	778,000,000		778,000,000		122,000,000
Other bond securities	10,000,000		10,000,000		11,000,000
Equity securities	751,000,000		751,000,000		1,213,000,000
Other invested assets	0		0		0
Derivative Assets, Fair Value, Gross	19,000,000		19,000,000		135,000,000
Short-term investments, portion measured at fair value	2,988,000,000		2,988,000,000		2,416,000,000
Other assets	0		0		0
Separate account assets, at fair value	84,707,000,000		84,707,000,000		77,202,000,000
Fair value assets measured on recurring basis, total	89,253,000,000		89,253,000,000		81,099,000,000
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	0		0		0
Derivative Liabilities, Fair Value, Gross	15,000,000		15,000,000		16,000,000
Other liabilities	0		0		16,000,000
Long-term debt, portion measured at fair value	0		0		0
Fair value liabilities measured on recurring basis, total	15,000,000		15,000,000		32,000,000
Recurring Basis \| Level 1 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1,000,000		1,000,000		2,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	3,000,000		3,000,000		4,000,000
Recurring Basis \| Level 1 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0		0		0
Recurring Basis \| Level 1 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	18,000,000		18,000,000		133,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	12,000,000		12,000,000		12,000,000
Recurring Basis \| Level 1 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0		0		0
Recurring Basis \| Level 1 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0		0		0
Recurring Basis \| Level 1 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	684,000,000		684,000,000		53,000,000
Other bond securities	10,000,000		10,000,000		11,000,000
Recurring Basis \| Level 1 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Recurring Basis \| Level 1 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	94,000,000		94,000,000		69,000,000
Other bond securities	0		0		0
Recurring Basis \| Level 1 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 1 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 1 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 1 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 2
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	225,499,000,000		225,499,000,000		202,176,000,000
Other bond securities	3,503,000,000		3,503,000,000		5,559,000,000
Equity securities	12,000,000		12,000,000		13,000,000
Other invested assets	73,000,000		73,000,000		341,000,000
Derivative Assets, Fair Value, Gross	6,718,000,000		6,718,000,000		4,237,000,000
Short-term investments, portion measured at fair value	2,589,000,000		2,589,000,000		599,000,000
Other assets	0		0		0
Separate account assets, at fair value	4,418,000,000		4,418,000,000		4,645,000,000
Fair value assets measured on recurring basis, total	242,812,000,000		242,812,000,000		217,570,000,000
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	0		0		0
Derivative Liabilities, Fair Value, Gross	3,885,000,000		3,885,000,000		2,873,000,000
Other liabilities	55,000,000		55,000,000		11,000,000
Long-term debt, portion measured at fair value	2,287,000,000		2,287,000,000		2,213,000,000
Fair value liabilities measured on recurring basis, total	6,227,000,000		6,227,000,000		5,097,000,000
Recurring Basis \| Level 2 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	4,381,000,000		4,381,000,000		2,888,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	2,853,000,000		2,853,000,000		2,004,000,000
Recurring Basis \| Level 2 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1,661,000,000		1,661,000,000		1,159,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	940,000,000		940,000,000		858,000,000
Recurring Basis \| Level 2 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	676,000,000		676,000,000		190,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	74,000,000		74,000,000		3,000,000
Recurring Basis \| Level 2 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	18,000,000		18,000,000		8,000,000
Recurring Basis \| Level 2 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0		0		0
Recurring Basis \| Level 2 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	4,543,000,000		4,543,000,000		3,207,000,000
Other bond securities	2,286,000,000		2,286,000,000		2,654,000,000
Recurring Basis \| Level 2 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	13,638,000,000		13,638,000,000		14,001,000,000
Recurring Basis \| Level 2 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	15,269,000,000		15,269,000,000		14,445,000,000
Other bond securities	0		0		45,000,000
Recurring Basis \| Level 2 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	150,097,000,000		150,097,000,000		129,836,000,000
Other bond securities	18,000,000		18,000,000		1,671,000,000
Recurring Basis \| Level 2 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	19,235,000,000		19,235,000,000		20,178,000,000
Other bond securities	482,000,000		482,000,000		424,000,000
Recurring Basis \| Level 2 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	13,286,000,000		13,286,000,000		11,784,000,000
Other bond securities	335,000,000		335,000,000		311,000,000
Recurring Basis \| Level 2 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	9,431,000,000		9,431,000,000		8,725,000,000
Other bond securities	382,000,000		382,000,000		454,000,000
Recurring Basis \| Level 3
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	26,944,000,000		26,944,000,000		27,093,000,000
Other bond securities	4,814,000,000		4,814,000,000		5,845,000,000
Equity securities	8,000,000		8,000,000		27,000,000
Other invested assets	589,000,000		589,000,000		587,000,000
Derivative Assets, Fair Value, Gross	120,000,000		120,000,000		96,000,000
Short-term investments, portion measured at fair value	0		0		0
Other assets	60,000,000		60,000,000		58,000,000
Separate account assets, at fair value	0		0		0
Fair value assets measured on recurring basis, total	32,535,000,000		32,535,000,000		33,706,000,000
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	7,166,000,000		7,166,000,000		4,116,000,000
Derivative Liabilities, Fair Value, Gross	113,000,000		113,000,000		249,000,000
Other liabilities	0		0		0
Long-term debt, portion measured at fair value	0		0		0
Fair value liabilities measured on recurring basis, total	7,279,000,000		7,279,000,000		4,365,000,000
Recurring Basis \| Level 3 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0		0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0		0		15,000,000
Recurring Basis \| Level 3 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1,000,000		1,000,000		5,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0		0		0
Recurring Basis \| Level 3 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	103,000,000		103,000,000		75,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	2,000,000		2,000,000		0
Recurring Basis \| Level 3 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1,000,000		1,000,000		1,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	103,000,000		103,000,000		228,000,000
Recurring Basis \| Level 3 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	15,000,000		15,000,000		15,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	8,000,000		8,000,000		6,000,000
Recurring Basis \| Level 3 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0		0		0
Other bond securities	0		0		0
Recurring Basis \| Level 3 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	2,107,000,000		2,107,000,000		2,000,000,000
Recurring Basis \| Level 3 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	13,000,000		13,000,000		11,000,000
Other bond securities	0		0		0
Recurring Basis \| Level 3 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	1,275,000,000		1,275,000,000		864,000,000
Other bond securities	0		0		0
Recurring Basis \| Level 3 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	13,560,000,000		13,560,000,000		14,199,000,000
Other bond securities	815,000,000		815,000,000		1,290,000,000
Recurring Basis \| Level 3 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	1,050,000,000		1,050,000,000		917,000,000
Other bond securities	68,000,000		68,000,000		77,000,000
Recurring Basis \| Level 3 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	8,939,000,000		8,939,000,000		9,102,000,000
Other bond securities	$ 3,931,000,000		$ 3,931,000,000		$ 4,478,000,000

FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	$ 33,782	$ 32,245	$ 33,610	$ 35,763
Net Realized and Unrealized Gains (Losses) Included in Income	271	342	988	1,020
Other Comprehensive Income (Loss)	201	(88)	843	(299)
Purchases, Sales, Issuances and Settlements, Net	(1,373)	(766)	(2,724)	(3,451)
Gross Transfers In, assets	142	1,817	1,441	2,441
Gross Transfers Out, assets	(608)	(91)	(1,743)	(2,015)
Acquisitions		180		180
Balance End of Period	32,415	33,639	32,415	33,639
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	32	(39)	142	382
Liabilities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	6,130	3,710	4,269	4,323
Net realized and unrealized gains and losses related to Level 3 items, liabilities	835	(281)	2,287	(1,070)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	194	85	603	259
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	2
Acquisitions, Liabilities		0		0
Balance at the End of the Period	7,159	3,514	7,159	3,514
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	(675)	209	(1,961)	1,148
Policyholder contract deposits
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	6,065	3,534	4,116	4,136
Net realized and unrealized gains and losses related to Level 3 items, liabilities	861	(242)	2,400	(986)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	240	84	650	226
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	0
Acquisitions, Liabilities		0		0
Balance at the End of the Period	7,166	3,376	7,166	3,376
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	(691)	179	(2,044)	1,081
Derivative liabilities, net
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	65	176	153	187
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(26)	(39)	(113)	(84)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	(46)	1	(47)	33
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	2
Acquisitions, Liabilities		0		0
Balance at the End of the Period	(7)	138	(7)	138
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	16	30	83	67
Interest rate contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	16	14	15	22
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(3)	(1)	0	(5)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	(13)	(1)	(15)	(5)
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	0
Acquisitions, Liabilities		0		0
Balance at the End of the Period	0	12	0	12
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	0	1	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	(4)	5	(5)	0
Net realized and unrealized gains and losses related to Level 3 items, liabilities	6	2	(4)	(2)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	(3)	(2)	8	7
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	0
Acquisitions, Liabilities		0		0
Balance at the End of the Period	(1)	5	(1)	5
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	0	(5)	0	(5)
Equity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(113)	(79)	(75)	(82)
Net realized and unrealized gains and losses related to Level 3 items, liabilities	12	(12)	(8)	(3)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	0	(12)	(18)	(20)
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	2
Acquisitions, Liabilities		0		0
Balance at the End of the Period	(101)	(103)	(101)	(103)
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	(13)	10	19	2
Credit contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	173	246	227	262
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(24)	(9)	(51)	(23)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	(47)	(1)	(74)	(3)
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	0
Acquisitions, Liabilities		0		0
Balance at the End of the Period	102	236	102	236
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	14	10	13	23
Other contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(7)	(10)	(9)	(15)
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(17)	(19)	(50)	(51)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	17	17	52	54
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	0
Acquisitions, Liabilities		0		0
Balance at the End of the Period	(7)	(12)	(7)	(12)
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities	15	14	50	42
Bonds available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	28,013	25,778	27,093	28,996
Net Realized and Unrealized Gains (Losses) Included in Income	140	249	591	619
Other Comprehensive Income (Loss)	201	(88)	842	(300)
Purchases, Sales, Issuances and Settlements, Net	(946)	(447)	(1,390)	(2,531)
Gross Transfers In, assets	140	1,763	1,439	2,386
Gross Transfers Out, assets	(604)	(91)	(1,631)	(2,006)
Acquisitions		172		172
Balance End of Period	26,944	27,336	26,944	27,336
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	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	2,162	2,056	2,000	2,404
Net Realized and Unrealized Gains (Losses) Included in Income	(1)	0	(2)	1
Other Comprehensive Income (Loss)	119	(37)	321	(152)
Purchases, Sales, Issuances and Settlements, Net	92	(46)	178	(144)
Gross Transfers In, assets	0	54	35	54
Gross Transfers Out, assets	(265)	(31)	(425)	(167)
Acquisitions		0		0
Balance End of Period	2,107	1,996	2,107	1,996
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	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	2	0	11	8
Net Realized and Unrealized Gains (Losses) Included in Income	6	0	5	(5)
Other Comprehensive Income (Loss)	0	(1)	0	5
Purchases, Sales, Issuances and Settlements, Net	0	1	(4)	(3)
Gross Transfers In, assets	5	4	5	4
Gross Transfers Out, assets	0	0	(4)	(5)
Acquisitions		0		0
Balance End of Period	13	4	13	4
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	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	1,821	884	864	1,173
Net Realized and Unrealized Gains (Losses) Included in Income	(36)	7	(10)	(58)
Other Comprehensive Income (Loss)	(2)	(10)	79	(7)
Purchases, Sales, Issuances and Settlements, Net	(535)	(28)	(600)	(174)
Gross Transfers In, assets	112	133	1,155	701
Gross Transfers Out, assets	(85)	(44)	(213)	(693)
Acquisitions		0		0
Balance End of Period	1,275	942	1,275	942
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	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	13,863	15,377	14,199	16,136
Net Realized and Unrealized Gains (Losses) Included in Income	166	213	575	632
Other Comprehensive Income (Loss)	15	5	176	5
Purchases, Sales, Issuances and Settlements, Net	(418)	(725)	(1,234)	(1,877)
Gross Transfers In, assets	16	0	83	8
Gross Transfers Out, assets	(82)	(16)	(239)	(50)
Acquisitions		7		7
Balance End of Period	13,560	14,861	13,560	14,861
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	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	1,103	605	917	624
Net Realized and Unrealized Gains (Losses) Included in Income	2	14	8	18
Other Comprehensive Income (Loss)	32	(14)	62	(35)
Purchases, Sales, Issuances and Settlements, Net	85	31	381	1
Gross Transfers In, assets	0	64	58	111
Gross Transfers Out, assets	(172)	0	(376)	(19)
Acquisitions		1		1
Balance End of Period	1,050	701	1,050	701
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	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	9,062	6,856	9,102	8,651
Net Realized and Unrealized Gains (Losses) Included in Income	3	15	15	31
Other Comprehensive Income (Loss)	37	(31)	204	(116)
Purchases, Sales, Issuances and Settlements, Net	(170)	320	(111)	(334)
Gross Transfers In, assets	7	1,508	103	1,508
Gross Transfers Out, assets	0	0	(374)	(1,072)
Acquisitions		164		164
Balance End of Period	8,939	8,832	8,939	8,832
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Other bond securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	5,068	6,068	5,845	6,512
Net Realized and Unrealized Gains (Losses) Included in Income	125	92	373	351
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	(375)	(342)	(1,293)	(1,037)
Gross Transfers In, assets	0	54	0	55
Gross Transfers Out, assets	(4)	0	(111)	(9)
Acquisitions		8		8
Balance End of Period	4,814	5,880	4,814	5,880
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	27	(39)	113	326
Other bond securities \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	0	18	0	18
Net Realized and Unrealized Gains (Losses) Included in Income	0	0	0	0
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	0	(18)	0	(18)
Gross Transfers In, assets	0	0	0	0
Gross Transfers Out, assets	0	0	0	0
Acquisitions		0		0
Balance End of Period	0	0	0	0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	(2)	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	830	1,338	1,290	1,464
Net Realized and Unrealized Gains (Losses) Included in Income	9	18	69	73
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	(24)	(57)	(544)	(238)
Gross Transfers In, assets	0	50	0	50
Gross Transfers Out, assets	0	0	0	0
Acquisitions		0		0
Balance End of Period	815	1,349	815	1,349
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	1	(29)	(18)	124
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	88	71	77	74
Net Realized and Unrealized Gains (Losses) Included in Income	1	(2)	5	(5)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	(17)	0	0	(1)
Gross Transfers In, assets	0	4	0	5
Gross Transfers Out, assets	(4)	0	(14)	0
Acquisitions		0		0
Balance End of Period	68	73	68	73
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	(2)	(2)	3	2
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	4,150	4,641	4,478	4,956
Net Realized and Unrealized Gains (Losses) Included in Income	115	76	299	283
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	(334)	(267)	(749)	(780)
Gross Transfers In, assets	0	0	0	0
Gross Transfers Out, assets	0	0	(97)	(9)
Acquisitions		8		8
Balance End of Period	3,931	4,458	3,931	4,458
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	28	(6)	128	201
Equity securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	35	0	27	0
Net Realized and Unrealized Gains (Losses) Included in Income	0	1	0	(2)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	(29)	24	(20)	27
Gross Transfers In, assets	2	0	2	0
Gross Transfers Out, assets	0	0	(1)	0
Acquisitions		0		0
Balance End of Period	8	25	8	25
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	(2)	0	2	0
Mortgage and other loans receivable
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	0	0	0	5
Net Realized and Unrealized Gains (Losses) Included in Income	0	0	0	0
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net	0	0	0	(5)
Gross Transfers In, assets	0	0	0	0
Gross Transfers Out, assets	0	0	0	0
Acquisitions		0		0
Balance End of Period	0	0	0	0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	605	399	587	250
Net Realized and Unrealized Gains (Losses) Included in Income	6	0	24	52
Other Comprehensive Income (Loss)	0	0	1	1
Purchases, Sales, Issuances and Settlements, Net	(22)	(1)	(23)	95
Gross Transfers In, assets	0	0	0	0
Gross Transfers Out, assets	0	0	0	0
Acquisitions		0		0
Balance End of Period	589	398	589	398
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	7	0	27	56
Other assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	61		58
Net Realized and Unrealized Gains (Losses) Included in Income	0		0
Other Comprehensive Income (Loss)	0		0
Purchases, Sales, Issuances and Settlements, Net	(1)	$ 0	2	$ 0
Gross Transfers In, assets	0		0
Gross Transfers Out, assets	0		0
Balance End of Period	60		60
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	$ 0		$ 0

FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issuances and settlements) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, Sales, Issuances and Settlements, Net, assets	$ (1,373,000,000)	$ (766,000,000)	$ (2,724,000,000)	$ (3,451,000,000)
Issuances	0	0	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		17,000,000	(40,000,000)	41,000,000
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.	24,000,000	2,000,000	28,000,000	(20,000,000)
Liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	(7,000,000)	(18,000,000)	(29,000,000)	(37,000,000)
Sales, liabilities	240,000,000	148,000,000	616,000,000	391,000,000
Settlements, liabilities	(39,000,000)	(45,000,000)	16,000,000	(95,000,000)
Purchases, Sales, Issuances and Settlements, Net, liabilities	194,000,000	85,000,000	603,000,000	259,000,000
Policyholder contract deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	0	0	0	0
Sales, liabilities	240,000,000	148,000,000	616,000,000	391,000,000
Settlements, liabilities	0	(64,000,000)	34,000,000	(165,000,000)
Purchases, Sales, Issuances and Settlements, Net, liabilities	240,000,000	84,000,000	650,000,000	226,000,000
Derivative liabilities, net
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	(7,000,000)	(18,000,000)	(29,000,000)	(37,000,000)
Sales, liabilities	0	0	0	0
Settlements, liabilities	(39,000,000)	19,000,000	(18,000,000)	70,000,000
Purchases, Sales, Issuances and Settlements, Net, liabilities	(46,000,000)	1,000,000	(47,000,000)	33,000,000
Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	934,000,000	624,000,000	3,335,000,000	2,551,000,000
Sales, assets	(495,000,000)	(61,000,000)	(1,285,000,000)	(1,272,000,000)
Settlements, assets	(1,812,000,000)	(1,329,000,000)	(4,774,000,000)	(4,730,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(1,373,000,000)	(766,000,000)	(2,724,000,000)	(3,451,000,000)
Bonds available for sale
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	913,000,000	600,000,000	3,244,000,000	2,370,000,000
Sales, assets	(326,000,000)	(61,000,000)	(679,000,000)	(1,200,000,000)
Settlements, assets	(1,533,000,000)	(986,000,000)	(3,955,000,000)	(3,701,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(946,000,000)	(447,000,000)	(1,390,000,000)	(2,531,000,000)
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	109,000,000	0	243,000,000	24,000,000
Sales, assets	0	(8,000,000)	(16,000,000)	(8,000,000)
Settlements, assets	(17,000,000)	(38,000,000)	(49,000,000)	(160,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	92,000,000	(46,000,000)	178,000,000	(144,000,000)
Bonds available for sale \| Non-U.S. governments
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0	0	2,000,000
Sales, assets	0	0	0	0
Settlements, assets	0	1,000,000	(4,000,000)	(5,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	0	1,000,000	(4,000,000)	(3,000,000)
Bonds available for sale \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	1,000,000	25,000,000	58,000,000	280,000,000
Sales, assets	(128,000,000)	0	(129,000,000)	(216,000,000)
Settlements, assets	(408,000,000)	(53,000,000)	(529,000,000)	(238,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(535,000,000)	(28,000,000)	(600,000,000)	(174,000,000)
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	253,000,000	123,000,000	860,000,000	630,000,000
Sales, assets	0	(2,000,000)	(26,000,000)	(12,000,000)
Settlements, assets	(671,000,000)	(846,000,000)	(2,068,000,000)	(2,495,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(418,000,000)	(725,000,000)	(1,234,000,000)	(1,877,000,000)
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	92,000,000	58,000,000	455,000,000	70,000,000
Sales, assets	0	(2,000,000)	0	(2,000,000)
Settlements, assets	(7,000,000)	(25,000,000)	(74,000,000)	(67,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	85,000,000	31,000,000	381,000,000	1,000,000
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	458,000,000	394,000,000	1,628,000,000	1,364,000,000
Sales, assets	(198,000,000)	(49,000,000)	(508,000,000)	(962,000,000)
Settlements, assets	(430,000,000)	(25,000,000)	(1,231,000,000)	(736,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(170,000,000)	320,000,000	(111,000,000)	(334,000,000)
Other bond securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0	18,000,000	1,000,000
Sales, assets	(169,000,000)	0	(606,000,000)	(38,000,000)
Settlements, assets	(206,000,000)	(342,000,000)	(705,000,000)	(1,000,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(375,000,000)	(342,000,000)	(1,293,000,000)	(1,037,000,000)
Other bond securities \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets		0		0
Sales, assets		0		0
Settlements, assets		(18,000,000)		(18,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	0	(18,000,000)	0	(18,000,000)
Other bond securities \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0	0	1,000,000
Sales, assets	0	0	(437,000,000)	(34,000,000)
Settlements, assets	(24,000,000)	(57,000,000)	(107,000,000)	(205,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(24,000,000)	(57,000,000)	(544,000,000)	(238,000,000)
Other bond securities \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0	18,000,000	0
Sales, assets	(16,000,000)	0	(16,000,000)	0
Settlements, assets	(1,000,000)	0	(2,000,000)	(1,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(17,000,000)	0	0	(1,000,000)
Other bond securities \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0	0	0
Sales, assets	(153,000,000)	0	(153,000,000)	(4,000,000)
Settlements, assets	(181,000,000)	(267,000,000)	(596,000,000)	(776,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(334,000,000)	(267,000,000)	(749,000,000)	(780,000,000)
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	24,000,000	9,000,000	27,000,000
Sales, assets	0	0	0	0
Settlements, assets	(29,000,000)	0	(29,000,000)	0
Purchases, Sales, Issuances and Settlements, Net, assets	(29,000,000)	24,000,000	(20,000,000)	27,000,000
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	0	0
Sales, assets	0	0	0	(5,000,000)
Settlements, assets	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, assets	0	0	0	(5,000,000)
Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	21,000,000	0	64,000,000	153,000,000
Sales, assets	0	0	0	(29,000,000)
Settlements, assets	(43,000,000)	(1,000,000)	(87,000,000)	(29,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(22,000,000)	(1,000,000)	(23,000,000)	95,000,000
Other assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0	0	0
Sales, assets	0	0	0	0
Settlements, assets	(1,000,000)	0	2,000,000	0
Purchases, Sales, Issuances and Settlements, Net, assets	$ (1,000,000)	$ 0	$ 2,000,000	$ 0

FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) $ in Millions	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
GMWB \| Minimum \| Measurement Input Equity Volatility [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.0615	0.0605
GMWB \| Minimum \| Measurement Input Base Lapse Rates [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.0016	0.0016
GMWB \| Minimum \| Measurement Input Dynamic Lapse Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.5000	0.2000
GMWB \| Minimum \| Measurement Input Mortality Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.3800	0.4000
GMWB \| Minimum \| Measurement Input Utilization Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.9000	0.9000
GMWB \| Minimum \| Measurement Input Equity Interest Rate Correlation [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.2000	0.2000
GMWB \| Maximum \| Measurement Input Equity Volatility [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.4865	0.4765
GMWB \| Maximum \| Measurement Input Base Lapse Rates [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.1260	0.1260
GMWB \| Maximum \| Measurement Input Dynamic Lapse Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	1.4300	1.8000
GMWB \| Maximum \| Measurement Input Mortality Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	1.5500	1.5300
GMWB \| Maximum \| Measurement Input Utilization Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	1.0000	1.0000
GMWB \| Maximum \| Measurement Input Equity Interest Rate Correlation [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.4000	0.4000
GMWB \| Discounted cash flow \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 3,168	$ 1,943
Index Annuities \| Minimum \| Measurement Input Mortality Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.2400	0.4200
Index Annuities \| Minimum \| Measurement Input Lapse Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.0031	0.0050
Index Annuities \| Minimum \| Measurement Input Options Budget [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.0100	0.0100
Index Annuities \| Maximum \| Measurement Input Mortality Multiplier [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	1.8000	1.6200
Index Annuities \| Maximum \| Measurement Input Lapse Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.5000	0.4000
Index Annuities \| Maximum \| Measurement Input Options Budget [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.0400	0.0300
Index Annuities \| Discounted cash flow \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 3,470	$ 1,778
Indexed Life \| Minimum \| Measurement Input Base Lapse Rates [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.0000	0.0000
Indexed Life \| Minimum \| Measurement Input Mortality Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.0000	0.0000
Indexed Life \| Maximum \| Measurement Input Base Lapse Rates [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	0.3797	0.1300
Indexed Life \| Maximum \| Measurement Input Mortality Rate [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Embedded derivative liability, measurement input	1.0000	1.0000
Indexed Life \| Discounted cash flow \| Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value	$ 502	$ 374

FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	$ 5,398	$ 4,966
Unfunded Commitments	2,629	1,956
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	3,086	2,250
Unfunded Commitments	$ 2,628	1,947
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	15.00%
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	40.00%
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	45.00%
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	$ 1,152	847
Unfunded Commitments	1,326	1,327
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	341	190
Unfunded Commitments	387	83
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	102	126
Unfunded Commitments	122	127
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	411	362
Unfunded Commitments	72	28
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	341	211
Unfunded Commitments	472	75
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	739	514
Unfunded Commitments	249	307
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	2,312	2,716
Unfunded Commitments	1	9
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	753	787
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	548	863
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	848	887
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	1	21
Unfunded Commitments	0	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	162	158
Unfunded Commitments	$ 1	$ 1

FAIR VALUE MEASUREMENTS (Details - Difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term borrowings for which the fair value option was elected) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage and other loans receivable, Outstanding Principal Amount	$ 45,505	$ 43,532
Mortgage and other loans receivable, Difference	45,505	43,532
Long-term debt, Fair Value	2,287	2,213
Long-term debt, Outstanding Principal Amount	35,262	34,540
Fair Value Option
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, Fair Value	2,287	2,213
Long-term debt, Outstanding Principal Amount	1,652	1,653
Long-term debt, Difference	$ 635	$ 560

FAIR VALUE MEASUREMENTS (Details - Assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented) - Fair value on a non-recurring basis - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Impairment Charges	$ 52	$ 34	$ 127	$ 124
Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Impairment Charges	7	0	65	89
Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Impairment Charges	45	$ 34	62	$ 35
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		$ 0
Level 1 \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0		0		0
Level 1 \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0		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		0
Level 2 \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0		0		0
Level 2 \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0		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	254		254		326
Level 3 \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	253		253		315
Level 3 \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	1		1		11
Total Fair Value \| Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	254		254		326
Total Fair Value \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	253		253		315
Total Fair Value \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	$ 1		$ 1		$ 11

FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Assets:
Mortgage and other loans receivable	$ 45,075	$ 43,135
Short-term investments	14,113	9,674
Cash	3,361	2,873	$ 2,741
Other assets	13,929	13,568
Liabilities:
Other liabilities	27,297	24,636
Long-term Debt	35,262	34,540
Estimate of Fair Value Measurement [Member]
Assets:
Mortgage and other loans receivable	47,786	43,627
Other invested assets	713	737
Short-term investments	8,536	6,659
Cash	3,361	2,873
Other assets	345	343
Liabilities:
Policyholder contract deposits associated with investment-type contracts	135,613	121,374
Other liabilities	2,787	1,154
Long-term Debt	35,336	31,597
Carrying Value
Assets:
Mortgage and other loans receivable	45,075	43,135
Other invested assets	714	737
Short-term investments	8,536	6,659
Cash	3,361	2,873
Other assets	345	343
Liabilities:
Policyholder contract deposits associated with investment-type contracts	126,011	120,602
Other liabilities	2,787	1,154
Long-term Debt	32,975	32,327
Level 1 \| Estimate of Fair Value Measurement [Member]
Assets:
Mortgage and other loans receivable	0	0
Other invested assets	0	0
Short-term investments	0	0
Cash	3,361	2,873
Other assets	208	308
Liabilities:
Policyholder contract deposits associated with investment-type contracts	0	0
Other liabilities	0	0
Long-term Debt	0	0
Level 2 \| Estimate of Fair Value Measurement [Member]
Assets:
Mortgage and other loans receivable	104	105
Other invested assets	707	731
Short-term investments	8,536	6,659
Cash	0	0
Other assets	137	35
Liabilities:
Policyholder contract deposits associated with investment-type contracts	267	339
Other liabilities	2,787	1,154
Long-term Debt	26,223	22,822
Level 3 \| Estimate of Fair Value Measurement [Member]
Assets:
Mortgage and other loans receivable	47,682	43,522
Other invested assets	6	6
Short-term investments	0	0
Cash	0	0
Other assets	0	0
Liabilities:
Policyholder contract deposits associated with investment-type contracts	135,346	121,035
Other liabilities	0	0
Long-term Debt	$ 9,113	$ 8,775

INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - Bonds available for sale - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	$ 233,345	$ 225,780
Available for sale securities, Gross Unrealized Gains	20,660	8,419
Available for sale securities, Gross Unrealized Losses	(784)	(4,808)
Available-for-sale Securities	253,221	229,391
Other details of available for sale securities
Available for sale securities not rated or rated below investment grade	28,000	28,800
AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,282	1,211
U.S. government and government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	4,727	3,170
Available for sale securities, Gross Unrealized Gains	501	132
Available for sale securities, Gross Unrealized Losses	(1)	(42)
Available-for-sale Securities	5,227	3,260
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
Obligations of states, municipalities and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	14,122	15,421
Available for sale securities, Gross Unrealized Gains	1,640	701
Available for sale securities, Gross Unrealized Losses	(17)	(121)
Available-for-sale Securities	15,745	16,001
Obligations of states, municipalities and political subdivisions \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	0	4
Non-U.S. governments
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	14,456	14,376
Available for sale securities, Gross Unrealized Gains	999	451
Available for sale securities, Gross Unrealized Losses	(79)	(302)
Available-for-sale Securities	15,376	14,525
Non-U.S. governments \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	0	0
Corporate debt
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	138,950	130,436
Available for sale securities, Gross Unrealized Gains	12,956	3,911
Available for sale securities, Gross Unrealized Losses	(534)	(3,647)
Available-for-sale Securities	151,372	130,700
Corporate debt \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	9	4
Mortgage-backed, asset-backed and collateralized
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	61,090	62,377
Available for sale securities, Gross Unrealized Gains	4,564	3,224
Available for sale securities, Gross Unrealized Losses	(153)	(696)
Available-for-sale Securities	65,501	64,905
Mortgage-backed, asset-backed and collateralized \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,273	1,203
Residential mortgage-backed securities (RMBS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	29,513	31,940
Available for sale securities, Gross Unrealized Gains	3,344	2,754
Available for sale securities, Gross Unrealized Losses	(62)	(317)
Available-for-sale Securities	32,795	34,377
Residential mortgage-backed securities (RMBS) \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	1,222	1,155
Commercial mortgage-backed securities (CMBS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	13,577	12,673
Available for sale securities, Gross Unrealized Gains	771	242
Available for sale securities, Gross Unrealized Losses	(12)	(214)
Available-for-sale Securities	14,336	12,701
Commercial mortgage-backed securities (CMBS) \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Total, Other-Than-Temporary Impairments in AOCI	34	31
Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost, Total	18,000	17,764
Available for sale securities, Gross Unrealized Gains	449	228
Available for sale securities, Gross Unrealized Losses	(79)	(165)
Available-for-sale Securities	18,370	17,827
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	$ 17

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) - Bonds available for sale $ in Millions	Sep. 30, 2019 USD ($) item	Dec. 31, 2018 USD ($)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	$ 17,522	$ 70,800
Gross Unrealized Losses, Less than 12 Months	406	2,679
Fair Value, 12 Months or More	7,999	36,110
Gross Unrealized Losses, 12 Months or More	378	2,129
Fair Value, Total	25,521	106,910
Gross Unrealized Losses, Total	$ 784	4,808
Number of securities in an unrealized loss position \| item	5,266
Number of individual securities in continuous unrealized loss position for longer than twelve months \| item	1,361
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	$ 136	574
Gross Unrealized Losses, Less than 12 Months	1	13
Fair Value, 12 Months or More	43	873
Gross Unrealized Losses, 12 Months or More	0	29
Fair Value, Total	179	1,447
Gross Unrealized Losses, Total	1	42
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	383	1,965
Gross Unrealized Losses, Less than 12 Months	6	51
Fair Value, 12 Months or More	256	1,530
Gross Unrealized Losses, 12 Months or More	11	70
Fair Value, Total	639	3,495
Gross Unrealized Losses, Total	17	121
Non-U.S. governments
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	919	3,851
Gross Unrealized Losses, Less than 12 Months	27	149
Fair Value, 12 Months or More	443	2,422
Gross Unrealized Losses, 12 Months or More	52	153
Fair Value, Total	1,362	6,273
Gross Unrealized Losses, Total	79	302
Corporate debt
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	8,794	47,364
Gross Unrealized Losses, Less than 12 Months	294	2,181
Fair Value, 12 Months or More	3,244	20,056
Gross Unrealized Losses, 12 Months or More	240	1,466
Fair Value, Total	12,038	67,420
Gross Unrealized Losses, Total	534	3,647
Residential mortgage-backed securities (RMBS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	2,671	5,231
Gross Unrealized Losses, Less than 12 Months	23	94
Fair Value, 12 Months or More	1,778	5,641
Gross Unrealized Losses, 12 Months or More	39	223
Fair Value, Total	4,449	10,872
Gross Unrealized Losses, Total	62	317
Commercial mortgage-backed securities (CMBS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	640	2,646
Gross Unrealized Losses, Less than 12 Months	4	47
Fair Value, 12 Months or More	343	4,264
Gross Unrealized Losses, 12 Months or More	8	167
Fair Value, Total	983	6,910
Gross Unrealized Losses, Total	12	214
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	3,979	9,169
Gross Unrealized Losses, Less than 12 Months	51	144
Fair Value, 12 Months or More	1,892	1,324
Gross Unrealized Losses, 12 Months or More	28	21
Fair Value, Total	5,871	10,493
Gross Unrealized Losses, Total	$ 79	$ 165

INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Fixed Maturity Securities Available for Sale, Fair Value, Total	$ 253,221	$ 229,391
Fixed Maturity Securities Available for Sale in a Loss Position
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost	1,373	2,322
Due after one year through five years, Amortized Cost	5,878	17,382
Due after five years through ten years, Amortized Cost	3,947	27,724
Due after ten years, Amortized Cost	3,651	35,319
Mortgage-backed, asset-backed and collateralized, Amortized Cost	11,456	28,971
Available for sale securities, Amortized Cost, Total	26,305	111,718
Due in one year or less, Fair Value	1,339	2,294
Due after one year through five years, Fair Value	5,631	16,844
Due after five years through ten years, Fair Value	3,756	26,517
Due after ten years, Fair Value	3,492	32,980
Mortgage-backed, asset-backed and collateralized, Fair Value	11,303	28,275
Fixed Maturity Securities Available for Sale, Fair Value, Total	25,521	106,910
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost	10,910	9,539
Due after one year through five years, Amortized Cost	45,243	47,400
Due after five years through ten years, Amortized Cost	43,042	42,363
Due after ten years, Amortized Cost	73,060	64,101
Mortgage-backed, asset-backed and collateralized, Amortized Cost	61,090	62,377
Available for sale securities, Amortized Cost, Total	233,345	225,780
Due in one year or less, Fair Value	11,107	9,674
Due after one year through five years, Fair Value	46,583	47,905
Due after five years through ten years, Fair Value	45,877	42,045
Due after ten years, Fair Value	84,153	64,862
Mortgage-backed, asset-backed and collateralized, Fair Value	65,501	64,905
Fixed Maturity Securities Available for Sale, Fair Value, Total	$ 253,221	$ 229,391

INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	$ 198	$ 82	$ 464	$ 268
Gross Realized Losses	70	71	280	244
Aggregate fair value of available for sale securities sold	4,500	6,000	17,300	18,100
Net realized capital gains (losses)	128	11	184	24
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	198	82	464	252
Gross Realized Losses	70	71	280	244
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	0	0	0	16
Gross Realized Losses	$ 0	$ 0	$ 0	$ 0

INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 9,098,000,000	$ 12,668,000,000
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	$ 0	$ 178,000,000
Fixed maturity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 8,327,000,000	$ 11,415,000,000
Other Securities, Percent of Total	91.00%	90.00%
Fixed maturity securities \| U.S. government and government sponsored entities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 2,296,000,000	$ 2,665,000,000
Other Securities, Percent of Total	25.00%	21.00%
Fixed maturity securities \| Non-U.S. governments
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 0	$ 45,000,000
Other Securities, Percent of Total	0.00%	0.00%
Fixed maturity securities \| Corporate debt
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 18,000,000	$ 1,671,000,000
Other Securities, Percent of Total	0.00%	13.00%
Fixed maturity securities \| Mortgage-backed, asset-backed and collateralized
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 6,013,000,000	$ 7,034,000,000
Other Securities, Percent of Total	66.00%	56.00%
Fixed maturity securities \| Residential mortgage-backed securities (RMBS)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 1,297,000,000	$ 1,714,000,000
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	$ 403,000,000	$ 388,000,000
Other Securities, Percent of Total	5.00%	3.00%
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	$ 4,313,000,000	$ 4,932,000,000
Other Securities, Percent of Total	47.00%	39.00%
Equity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 771,000,000	$ 1,253,000,000
Other Securities, Percent of Total	9.00%	10.00%

INVESTMENTS (Details - Carrying values of other invested assets) - USD ($) $ in Millions	12 Months Ended	96 Months Ended
	Dec. 31, 2019	Dec. 31, 2027	Sep. 30, 2019	Dec. 31, 2018
Investments [Line Items]
Other invested assets			$ 19,486	$ 19,341
Alternative investments
Investments [Line Items]
Other invested assets			8,532	8,966
Investment real estate
Investments [Line Items]
Other invested assets			9,491	8,935
Net of accumulated depreciation on investment in real estate			710	598
All other investments
Investments [Line Items]
Other invested assets			1,463	1,440
Hedge Funds
Investments [Line Items]
Other invested assets			3,500	4,200
Hedge Fund Fair Value Redemption, Additional Percentage	70.00%	30.00%
Direct private equity
Investments [Line Items]
Other invested assets			4,700	4,300
Affordable Housing Partnerships
Investments [Line Items]
Other invested assets			$ 336	$ 438

INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net Investment Income [Line Items]
Total investment income	$ 3,543	$ 3,511	$ 11,413	$ 10,087
Investment expenses	135	115	381	365
Net investment income	3,408	3,396	11,032	9,722
Fixed maturity securities, including short-term investments
Net Investment Income [Line Items]
Total investment income	2,698	2,629	8,052	7,775
Other fixed maturity securities
Net Investment Income [Line Items]
Total investment income	333	60	941	29
Other fixed maturity securities \| Reclassification [Member]
Net Investment Income [Line Items]
Total investment income	96
Equity securities
Net Investment Income [Line Items]
Total investment income	(51)	(21)	6	(50)
Interest on mortgage and other loans
Net Investment Income [Line Items]
Total investment income	495	455	1,511	1,352
Alternative investments
Net Investment Income [Line Items]
Total investment income	115	329	879	837
Real estate
Net Investment Income [Line Items]
Total investment income	96	72	227	133
Other investments
Net Investment Income [Line Items]
Total investment income	(143)	$ (13)	$ (203)	$ 11
Other investments \| Reclassification [Member]
Net Investment Income [Line Items]
Total investment income	$ (96)

INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Other-than-temporary impairments:
Change in intent	$ 0	$ (3)	$ (3)	$ (52)
Foreign currency declines	(6)	(1)	(15)	(13)
Issuer-specific credit events	(17)	(30)	(113)	(92)
Adverse projected cash flows	(1)	(1)	(6)	(1)
Provision for loan losses	(25)	(23)	(35)	(73)
Foreign exchange transactions	(203)	(21)	(242)	(155)
Variable annuity embedded derivatives, net of related hedges	311	(185)	10	(2)
All other derivatives and hedge accounting	466	(1)	601	149
Loss on sale of private equity funds	0	(311)	0	(311)
Other	276	54	506	161
Net realized capital gains (losses)	929	(511)	887	(365)
Fixed maturity securities
Gain (Loss) on Investments [Line Items]
Sales of securities	128	11	184	8
Equity securities
Gain (Loss) on Investments [Line Items]
Sales of securities	$ 0	$ 0	$ 0	$ 16

INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Increase (decrase) in unrealized appreciation (depreciation) of investments
Net gains and losses recognized securities during the period on equity securities	$ 54	$ 170	$ 621	$ 456
Less: Net gains and losses recognized during the period on equity securities sold during the period	31	46	199	79
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	23	124	422	377
Change in unrealized appreciation (depreciation) of investments	4,377	(951)	16,197	(8,917)
Fixed maturity securities
Increase (decrase) in unrealized appreciation (depreciation) of investments
Change in unrealized appreciation (depreciation) of investments	4,377	(920)	16,265	(8,858)
Equity securities
Increase (decrase) in unrealized appreciation (depreciation) of investments
Net gains and losses recognized securities during the period on equity securities	(51)	(13)	6	(41)
Less: Net gains and losses recognized during the period on equity securities sold during the period	18	28	30	34
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	(69)	(41)	(24)	(75)
Other investments
Increase (decrase) in unrealized appreciation (depreciation) of investments
Change in unrealized appreciation (depreciation) of investments	0	(31)	(68)	(59)
Other invested assets
Increase (decrase) in unrealized appreciation (depreciation) of investments
Net gains and losses recognized securities during the period on equity securities	105	183	615	497
Less: Net gains and losses recognized during the period on equity securities sold during the period	13	18	169	45
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	$ 92	$ 165	$ 446	$ 452

INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) - Fixed maturity securities - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Other Than Temporary Impairment Credit Losses Recognized in Earnings
Balance, beginning of year	$ 34	$ 188	$ 0	$ 526
Increases due to:
Credit impairments on new securities subject to impairment losses	10	15	105	32
Additional credit impairments on previously impaired securities	8	16	14	61
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell	(3)	(12)	(62)	(143)
Accretion on securities previously impaired due to credit	(7)	(164)	(15)	(433)
Balance, end of year	$ 42	$ 43	$ 42	$ 43

INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 233,345		$ 233,345		$ 225,780
Purchased Credit Impaired (PCI) Securities
Schedule of Available-for-sale Securities [Line Items]
Contractually required payments (principal and interest)	35,522		35,522
Cash flows expected to be collected	29,095		29,095
Recorded investment in acquired securities	19,648		19,648
Outstanding principal balance	11,016		11,016		12,495
Amortized cost	7,434		7,434		8,646
Fair value	9,171		9,171		$ 10,280
Available for sale securities \| Purchased Credit Impaired (PCI) Securities
Changes in activity for the accretable yield on PCI securities:
Balance, beginning of period	6,402	$ 7,461	7,210	$ 7,501
Newly purchased PCI securities	4	5	17	32
Accretion	(172)	(176)	(495)	(553)
Effect of changes in interest rate indices	(278)	15	(678)	189
Net reclassification from (to) non-accretable difference, including effects of prepayments	(162)	93	(260)	229
Balance, end of period	$ 5,794	$ 7,398	$ 5,794	$ 7,398

INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Investments [Line Items]
Fair value of securities collateral pledged	$ 2,075	$ 426
Fair value of amount sold or repledged	35	106
Securities Lending Agreements, Fair Value of Collateral	2,524	884
Short-term investments held in escrow	273	273
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements	8,400	7,900
Overnight and continuous
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0	0
Up to 30 Days
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	1,062	401
31 to 90 Days
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	897	483
91 to 364 Days
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	565	0
365 Days or Greater
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0	0
FHLBs
Investments [Line Items]
Fair value of fixed maturities securities available for sale	4,600	4,200
Amount owned by subsidiaries	194	202
Residential loans pledged as collateral	1,900	2,100
Secured financing
Investments [Line Items]
Amounts Borrowed Under Repurchase and Securities Lending Agreements	2,800	1,200
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	257	288
Amounts Loaned under Reverse Repurchase Agreements	2,100	426
Secured financing \| Fixed Maturities [Member]
Investments [Line Items]
Fair value of fixed maturities securities available for sale	2,781	1,050
Fair value of other bond securities	0	122
Secured financing \| Overnight and continuous
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	92	104
Secured financing \| Up to 30 Days
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	165	131
Secured financing \| 31 to 90 Days
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	53
Secured financing \| 91 to 364 Days
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| 365 Days or Greater
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	390	180
Secured financing \| Bonds available for sale \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	125	60
Securities Lending Agreements, Fair Value of Collateral	0	29
Secured financing \| Bonds available for sale \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	132	106
Securities Lending Agreements, Fair Value of Collateral	2,134	675
Secured financing \| Bonds available for sale \| Overnight and continuous \| Obligations of states, municipalities and political subdivisions
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0	0
Secured financing \| Bonds available for sale \| Overnight and continuous \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	64	25
Securities Lending Agreements, Fair Value of Collateral	0	0
Secured financing \| Bonds available for sale \| Overnight and continuous \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	28	51
Securities Lending Agreements, Fair Value of Collateral	0	0
Secured financing \| Bonds available for sale \| Up to 30 Days \| Obligations of states, municipalities and political subdivisions
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0	50
Secured financing \| Bonds available for sale \| Up to 30 Days \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	61	35
Securities Lending Agreements, Fair Value of Collateral	0	21
Secured financing \| Bonds available for sale \| Up to 30 Days \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	104	55
Securities Lending Agreements, Fair Value of Collateral	1,062	330
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Obligations of states, municipalities and political subdivisions
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	262	130
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Securities Lending Agreements, Fair Value of Collateral	0	8
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Securities Lending Agreements, Fair Value of Collateral	635	345
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Obligations of states, municipalities and political subdivisions
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	128	0
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Securities Lending Agreements, Fair Value of Collateral	0	0
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Securities Lending Agreements, Fair Value of Collateral	437	0
Secured financing \| Bonds available for sale \| 365 Days or Greater \| Obligations of states, municipalities and political subdivisions
Investments [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
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Securities Lending Agreements, Fair Value of Collateral	0	0
Secured financing \| Bonds available for sale \| 365 Days or Greater \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Securities Lending Agreements, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	3
Secured financing \| Other bond securities \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	108
Secured financing \| Other bond securities \| U.S. government and government sponsored entities
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	11
Secured financing \| Other bond securities \| Overnight and continuous \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| Overnight and continuous \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	17
Secured financing \| Other bond securities \| Overnight and continuous \| U.S. government and government sponsored entities
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	11
Secured financing \| Other bond securities \| Up to 30 Days \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	3
Secured financing \| Other bond securities \| Up to 30 Days \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	38
Secured financing \| Other bond securities \| Up to 30 Days \| U.S. government and government sponsored entities
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| 31 to 90 Days \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| 31 to 90 Days \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	53
Secured financing \| Other bond securities \| 31 to 90 Days \| U.S. government and government sponsored entities
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| 91 to 364 Days \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| 91 to 364 Days \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| 91 to 364 Days \| U.S. government and government sponsored entities
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| 365 Days or Greater \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| 365 Days or Greater \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
Secured financing \| Other bond securities \| 365 Days or Greater \| U.S. government and government sponsored entities
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	0
GIAs
Investments [Line Items]
Fair value of other bond securities	$ 1,600	$ 1,600

LENDING ACTIVITIES (Details - Composition of Mortgages and other loans receivable) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 45,505	$ 43,532
Allowance for losses	(430)	(397)	$ (379)	$ (322)
Mortgage and other loans receivable, net	45,075	43,135
Commercial mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	34,954	32,882
Allowance for losses	$ (335)	$ (318)	$ (296)	$ (247)
Commercial mortgages \| California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of mortgage loans in geographic area	11.00%	11.00%
Commercial mortgages \| New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of mortgage loans in geographic area	22.00%	22.00%
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 6,525	$ 6,532
Life insurance policy loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	2,096	2,147
Commercial loans, other loans and notes receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 1,930	$ 1,971

LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($) loan	Dec. 31, 2018 USD ($) loan	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Commercial Mortgage Recorded Investment [Line Items]
Mortgage and other loans receivable, net	$ 45,075	$ 43,135
Allowance for credit losses	430	397	$ 379	$ 322
Total mortgage and other loans receivable	$ 45,505	$ 43,532
Debt Coverage Ratio	1.9	1.9
Average Loan to Value Ratio	57.00%	58.00%
Apartments
Commercial Mortgage Recorded Investment [Line Items]
In good standing	$ 13,263	$ 11,190
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	13,263	11,190
Allowance for credit losses, Specific	0	0
Allowance for credit losses, General	93	122
Allowance for credit losses	93	122
Offices
Commercial Mortgage Recorded Investment [Line Items]
In good standing	9,903	9,774
Restructured	90	96
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	9,993	9,870
Allowance for credit losses, Specific	2	2
Allowance for credit losses, General	141	104
Allowance for credit losses	143	106
Retail
Commercial Mortgage Recorded Investment [Line Items]
In good standing	5,479	5,645
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	5,479	5,645
Allowance for credit losses, Specific	1	0
Allowance for credit losses, General	44	51
Allowance for credit losses	45	51
Industrial
Commercial Mortgage Recorded Investment [Line Items]
In good standing	3,348	3,074
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	3,348	3,074
Allowance for credit losses, Specific	0	0
Allowance for credit losses, General	28	13
Allowance for credit losses	28	13
Hotel
Commercial Mortgage Recorded Investment [Line Items]
In good standing	2,337	2,507
Restructured	15	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	2,352	2,523
Allowance for credit losses, Specific	6	1
Allowance for credit losses, General	15	19
Allowance for credit losses	21	20
Others
Commercial Mortgage Recorded Investment [Line Items]
In good standing	519	580
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	519	580
Allowance for credit losses, Specific	0	0
Allowance for credit losses, General	5	6
Allowance for credit losses	$ 5	$ 6
Commercial mortgages
Commercial Mortgage Recorded Investment [Line Items]
Number of loans in good standing \| loan	747	762
Number of loans restructured \| loan	2	2
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	749	764
In good standing	$ 34,849	$ 32,770
Restructured	105	112
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	34,954	32,882
Allowance for credit losses, Specific	9	3
Allowance for credit losses, General	326	315
Allowance for credit losses	$ 335	$ 318
Percentage of loans that are current as to payments of principal and interest	100.00%	100.00%
Percentage restructured	0.00%	0.00%
Percentage 90 days or less delinquent	0.00%	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%
Commercial mortgages \| Less than 65% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	$ 20,822	$ 19,204
Commercial mortgages \| Less than 65% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	2,771	2,543
Commercial mortgages \| Less than 65% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	173	250
Commercial mortgages \| Less than 65% \| Total
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	23,766	21,997
Commercial mortgages \| 65% to 75% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	9,744	9,060
Commercial mortgages \| 65% to 75% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	677	300
Commercial mortgages \| 65% to 75% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	93	203
Commercial mortgages \| 65% to 75% \| Total
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	10,514	9,563
Commercial mortgages \| 76% to 80% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	173	476
Commercial mortgages \| 76% to 80% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	19	20
Commercial mortgages \| 76% to 80% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	13	15
Commercial mortgages \| 76% to 80% \| Total
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	205	511
Commercial mortgages \| Greater than 80% \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	182	596
Commercial mortgages \| Greater than 80% \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	143	103
Commercial mortgages \| Greater than 80% \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	144	112
Commercial mortgages \| Greater than 80% \| Total
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	469	811
Commercial mortgages \| Total \| Greater than 1.2x
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	30,921	29,336
Commercial mortgages \| Total \| 1.00X - 1.20X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	3,610	2,966
Commercial mortgages \| Total \| Less than 1.00X
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	423	580
Commercial mortgages \| Total \| Total
Commercial Mortgage Recorded Investment [Line Items]
Total mortgage and other loans receivable	$ 34,954	$ 32,882

LENDING ACTIVITIES (Details - Rollforward of the changes in the allowance for losses on Mortgage and other loans receivable) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	$ 397,000,000	$ 322,000,000
Loans charged off	(2,000,000)	(17,000,000)
Recoveries of loans previously charged off	0	0
Net charge-offs	(2,000,000)	(17,000,000)
Provision for loan losses	35,000,000	74,000,000
Allowance, end of period	430,000,000	379,000,000
Loans modified in a troubled debt restructuring	0	15,000,000
Commercial mortgages
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	318,000,000	247,000,000
Loans charged off	(2,000,000)	(17,000,000)
Recoveries of loans previously charged off	0	0
Net charge-offs	(2,000,000)	(17,000,000)
Provision for loan losses	19,000,000	66,000,000
Allowance, end of period	335,000,000	296,000,000
Allowance related to individually assessed credit losses	10,000,000	3,000,000
Commercial mortgage loans	151,000,000	25,000,000
Other Loans
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	79,000,000	75,000,000
Loans charged off	0	0
Recoveries of loans previously charged off	0	0
Net charge-offs	0	0
Provision for loan losses	16,000,000	8,000,000
Allowance, end of period	$ 95,000,000	$ 83,000,000

VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Assets:
Bonds available for sale	$ 253,221	$ 229,391
Other bond securities	8,327	11,415
Mortgage and other loans receivable	45,075	43,135
Other invested assets	19,486	19,341
Liabilities:
Long-term Debt	35,262	34,540
Real Estate and Investment Entities
Liabilities:
Off-balance sheet exposure	2,700	1,400
Consolidated VIE
Assets:
Bonds available for sale	7,428	7,662
Other bond securities	3,641	3,925
Mortgage and other loans receivable	3,520	3,693
Other invested assets	9,325	8,378
Other assets	2,925	2,625
Total assets	26,839	26,283
Liabilities:
Long-term Debt	9,039	7,569
Other liabilities	763	575
Total liabilities	9,802	8,144
Consolidated VIE \| Real Estate and Investment Entities
Assets:
Bonds available for sale	211	0
Other bond securities	0	0
Mortgage and other loans receivable	0	0
Other invested assets	5,774	5,212
Other assets	444	580
Total assets	6,429	5,792
Liabilities:
Long-term Debt	3,194	2,577
Other liabilities	400	227
Total liabilities	3,594	2,804
Consolidated VIE \| Securitization Vehicles
Assets:
Bonds available for sale	7,217	7,662
Other bond securities	3,641	3,923
Mortgage and other loans receivable	3,520	3,693
Other invested assets	0	0
Other assets	1,934	1,581
Total assets	16,312	16,859
Liabilities:
Long-term Debt	3,720	3,154
Other liabilities	156	165
Total liabilities	3,876	3,319
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total assets of consolidated securitization vehicles owed to Parent or its subsidiaries	15,500	16,000
Consolidated VIE \| Affordable Housing Partnerships
Assets:
Bonds available for sale	0	0
Other bond securities	0	0
Mortgage and other loans receivable	0	0
Other invested assets	3,518	3,142
Other assets	498	394
Total assets	4,016	3,536
Liabilities:
Long-term Debt	2,121	1,834
Other liabilities	184	159
Total liabilities	2,305	1,993
Consolidated VIE \| Other
Assets:
Bonds available for sale	0	0
Other bond securities	0	2
Mortgage and other loans receivable	0	0
Other invested assets	33	24
Other assets	49	70
Total assets	82	96
Liabilities:
Long-term Debt	4	4
Other liabilities	23	24
Total liabilities	27	28
Unconsolidated VIE
Assets:
Other invested assets	7,000	7,400
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	286,809	316,527
Maximum Exposure to Loss, On-Balance Sheet	7,325	7,711
Maximum Exposure to Loss, Off-Balance Sheet	3,553	3,723
Total maximum exposure to loss	10,878	11,434
Unconsolidated VIE \| Real Estate and Investment Entities
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	278,064	309,598
Maximum Exposure to Loss, On-Balance Sheet	6,537	6,820
Maximum Exposure to Loss, Off-Balance Sheet	3,553	2,501
Total maximum exposure to loss	10,090	9,321
Unconsolidated VIE \| Affordable Housing Partnerships
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	3,358	4,116
Maximum Exposure to Loss, On-Balance Sheet	462	607
Maximum Exposure to Loss, Off-Balance Sheet	0	0
Total maximum exposure to loss	462	607
Unconsolidated VIE \| Other
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	5,387	2,813
Maximum Exposure to Loss, On-Balance Sheet	326	284
Maximum Exposure to Loss, Off-Balance Sheet	0	1,222
Total maximum exposure to loss	$ 326	$ 1,506

DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	$ 140,116,000,000	$ 117,207,000,000
Gross Derivative Assets, Fair Value	6,857,000,000	4,468,000,000
Gross Derivative Liabilities, Notional Amount	50,760,000,000	40,028,000,000
Gross Derivative Liabilities, Fair Value	4,013,000,000	3,138,000,000
Derivative assets, Counterparty netting	(2,795,000,000)	(1,713,000,000)
Derivative assets, Cash collateral	(2,937,000,000)	(1,840,000,000)
Total derivative assets on consolidated balance sheet	1,125,000,000	915,000,000
Derivative liabilities, Counterparty netting	(2,795,000,000)	(1,713,000,000)
Derivative liabilities, Cash collateral	(133,000,000)	(187,000,000)
Total derivative liabilities on consolidated balance sheet	1,085,000,000	1,238,000,000
Bifurcated embedded derivatives
Derivative [Line Items]
Bifurcated embedded derivatives assets, fair value	0	0
Bifurcated embedded derivative liabilities, fair value	7,200,000,000	4,100,000,000
Derivatives designated as hedging instruments \| Interest rate contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	624,000,000	10,000,000
Gross Derivative Assets, Fair Value	5,000,000	0
Gross Derivative Liabilities, Notional Amount	410,000,000	866,000,000
Gross Derivative Liabilities, Fair Value	8,000,000	19,000,000
Derivatives designated as hedging instruments \| Foreign exchange contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	6,614,000,000	6,357,000,000
Gross Derivative Assets, Fair Value	558,000,000	363,000,000
Gross Derivative Liabilities, Notional Amount	2,212,000,000	2,536,000,000
Gross Derivative Liabilities, Fair Value	78,000,000	147,000,000
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	60,452,000,000	42,821,000,000
Gross Derivative Assets, Fair Value	4,377,000,000	2,890,000,000
Gross Derivative Liabilities, Notional Amount	32,595,000,000	27,329,000,000
Gross Derivative Liabilities, Fair Value	2,848,000,000	2,004,000,000
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	11,360,000,000	11,134,000,000
Gross Derivative Assets, Fair Value	1,104,000,000	801,000,000
Gross Derivative Liabilities, Notional Amount	6,469,000,000	5,434,000,000
Gross Derivative Liabilities, Fair Value	862,000,000	711,000,000
Derivatives not designated as hedging instruments \| Equity contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	20,218,000,000	17,807,000,000
Gross Derivative Assets, Fair Value	797,000,000	398,000,000
Gross Derivative Liabilities, Notional Amount	8,073,000,000	2,399,000,000
Gross Derivative Liabilities, Fair Value	88,000,000	15,000,000
Derivatives not designated as hedging instruments \| Credit contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	44,000,000	8,000,000
Gross Derivative Assets, Fair Value	1,000,000	1,000,000
Gross Derivative Liabilities, Notional Amount	943,000,000	1,406,000,000
Gross Derivative Liabilities, Fair Value	121,000,000	236,000,000
Derivatives not designated as hedging instruments \| Credit contracts \| CDS
Derivative [Line Items]
Gross Derivative Liabilities, Notional Amount	160,000,000	592,000,000
Gross Derivative Liabilities, Fair Value	91,000,000	224,000,000
Derivatives not designated as hedging instruments \| Other contracts
Derivative [Line Items]
Gross Derivative Assets, Notional Amount	40,804,000,000	39,070,000,000
Gross Derivative Assets, Fair Value	15,000,000	15,000,000
Gross Derivative Liabilities, Notional Amount	58,000,000	58,000,000
Gross Derivative Liabilities, Fair Value	$ 8,000,000	$ 6,000,000

DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships	$ 89	$ 28	$ 146	$ 27
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	0	(1)	0	(9)
Gain (loss) recognized in earnings on hedged items	0	1	0	10
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing	0	0	0	0
Net Impact	0	0	0	1
Derivatives designated as hedging instruments \| Interest rate contracts \| Fair value hedging \| Interest credited to policyholder account balances
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	4	0	18	0
Gain (loss) recognized in earnings on hedged items	(4)	0	(18)	0
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing	0	0	0	0
Net Impact	0	0	0	0
Derivatives designated as hedging instruments \| Interest rate contracts \| Fair value hedging \| Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	0	0	(1)	0
Gain (loss) recognized in earnings on hedged items	0	0	1	0
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing	0	0	0	0
Net Impact	0	0	0	0
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	228	(16)	278	175
Gain (loss) recognized in earnings on hedged items	(228)	16	(278)	(175)
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing	41	5	84	9
Net Impact	41	5	84	9
Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	800	(173)	620	251
Derivatives not designated as hedging instruments \| Net realized capital gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	780	(223)	611	133
Derivatives not designated as hedging instruments \| Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	(3)	0	(58)	(3)
Derivatives not designated as hedging instruments \| Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	0	35	0	76
Derivatives not designated as hedging instruments \| Policy fees
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	16	17	51	51
Derivatives not designated as hedging instruments \| Policyholder benefits and claims incurred
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	7	(2)	16	(6)
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	1,078	(270)	2,052	(892)
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	342	43	545	295
Derivatives not designated as hedging instruments \| Equity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	96	(199)	(23)	(386)
Derivatives not designated as hedging instruments \| Credit contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	26	6	35	18
Derivatives not designated as hedging instruments \| Other contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	14	18	48	52
Derivatives not designated as hedging instruments \| Embedded derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in earnings on derivatives	$ (756)	$ 229	$ (2,037)	$ 1,164

DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Credit Derivatives [Line Items]
Collateral posted	$ 1,900	$ 1,700
Fair value of hybrid securities	3,700	3,900
Par value of hybrid securities	8,100	8,500
Credit Risk Related Contingent Features [Member]
Credit Derivatives [Line Items]
Collateral posted	408	453
Aggregate fair value of net liability position	391	$ 423
Additional collateral postings and termination payments	$ 65

INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Jan. 20, 2017
Supplementary Insurance Information, by Segment [Line Items]
Collateral Held For Deductible Recoverable Amounts	$ 9,000.0		$ 9,000.0		$ 9,200.0
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense:
Liability for unpaid loss and loss adjustment expenses, beginning of year	81,057.0	$ 76,713.0	83,639.0	$ 78,393.0
Reinsurance recoverable, balance at the beginning of the year	(31,333.0)	(27,406.0)	(31,690.0)	(26,708.0)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year	49,724.0	49,307.0	51,949.0	51,685.0
Losses and loss adjustment expenses incurred
Current year	5,150.0	6,670.0	14,750.0	15,800.0
Prior years, excluding discount and amortization of deferred gain	(74.0)	949.0	(221.0)	884.0
Prior years, discount charge (benefit)	276.0	3.0	1,017.0	(174.0)
Prior years, amortization of deferred gain on retroactive reinsurance	13.0	(175.0)	(129.0)	(283.0)
Total losses and loss adjustment expenses incurred	5,365.0	7,447.0	15,417.0	16,227.0
Losses and loss adjustment expenses paid
Current year	(1,702.0)	(1,791.0)	(3,194.0)	(3,289.0)
Prior years	(4,652.0)	(4,526.0)	(15,334.0)	(14,312.0)
Total losses and loss adjustment expenses paid	(6,354.0)	(6,317.0)	(18,528.0)	(17,601.0)
Other changes
Foreign exchange effect	(172.0)	(236.0)	(165.0)	(393.0)
Acquisitions	0.0	3,020.0	0.0	3,020.0
Retroactive reinsurance adjustment (net of discount)	96.0	(464.0)	(14.0)	(181.0)
Total other changes	(76.0)	2,320.0	(179.0)	2,446.0
Net liability for unpaid losses and loss adjustment expenses, balance at end of year	48,659.0	52,757.0	48,659.0	52,757.0
Reinsurance recoverable, balance at the end of the year	31,224.0	29,202.0	31,224.0	29,202.0
Total, balance at the end of the year	79,883.0	81,959.0	79,883.0	81,959.0
Change in discount on loss reserves ceded under retroactive reinsurance	(43.0)	46.0	(475.0)	154.0
U.S. Commercial long-tail exposures \| NICO \| Accident Years 2015 and Prior
Other changes
Discount on retroactive reinsurance	$ 6.0	$ 9.0	$ 21.0	$ 22.0
Risk Transferred - U.S. Commercial long-tail exposures for accident years 2015 and prior, percent						80.00%
Reinsurance Percent Ceded on Paid Losses Percent						80.00%
Ceded to NICO net paid losses in excess						$ 25,000.0
Ceded to NICO net paid losses in excess, aggregate limit						25,000.0
NICO's limit of liability under the contract						20,000.0
Consideration paid, including interest						$ 10,200.0

INSURANCE LIABILITIES (Details - Narratives) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Insurance Liabilities Disclosure [Line Items]
Collateral Held For Deductible Recoverable Amounts	$ 9,000		$ 9,000			$ 9,200
Liability for Claims and Claims Adjustment Expense	79,883	$ 81,959	79,883	$ 81,959	$ 81,057	83,639	$ 76,713	$ 78,393
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years)	48,659	52,757	48,659	52,757	$ 49,724	51,949	$ 49,307	$ 51,685
Contractual deductible recoverable amount	12,400		12,400			12,300
Discounting Of Loss Reserves [Abstract]
Loss Reserve Discount	1,590		$ 1,590			2,035
Tabular Discount Rate			3.50%
Workers Compensation Tabular Discount Amount	505		$ 505			603
Workers Compensation Non Tabular Discount Amount	1,100		1,100			1,400
(Increase) Decrease in Loss Reserve Discount	(235)	86	$ (920)	305
New York
Discounting Of Loss Reserves [Abstract]
Non Tabular Discount Rate			5.00%
Pennsylvania
Discounting Of Loss Reserves [Abstract]
Non Tabular Discount Rate			6.00%
Legacy General Insurance Run-Off Lines
Discounting Of Loss Reserves [Abstract]
Loss Reserve Discount	698		$ 698			$ 973
(Increase) Decrease in Loss Reserve Discount	$ (114)	$ (9)	$ (275)	$ 37

INSURANCE LIABILITIES (Details - Discounting of Reserves) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Discounting of Reserves [Line Items]
Tabular Discount Rate			3.50%
Workers Compensation Tabular Discount Amount	$ 505.0		$ 505.0		$ 603.0
Workers Compensation Non Tabular Discount Amount	1,100.0		1,100.0		1,400.0
U.S. Workers' compensation	2,836.0		2,836.0		3,755.0
Retroactive Reinsurance	(1,246.0)		(1,246.0)		(1,720.0)
Total reserve discount	1,590.0		1,590.0		2,035.0
Current accident year	41.0	$ 89.0	97.0	$ 131.0
Accretion and other adjustments to prior year discount	(82.0)	(19.0)	(349.0)	(137.0)
Effect of interest rate changes	(194.0)	16.0	(668.0)	311.0
Net reserve discount benefit (charge)	(235.0)	86.0	(920.0)	305.0
Change in discount on loss reserves ceded under retroactive reinsurance	43.0	(46.0)	475.0	(154.0)
Net change in total reserve discount	(192.0)	40.0	(445.0)	151.0
Prior years, discount charge (benefit)	276.0	3.0	1,017.0	(174.0)
North America Commerical Insurance
Discounting of Reserves [Line Items]
U.S. Workers' compensation	2,138.0		2,138.0		2,782.0
Retroactive Reinsurance	(1,246.0)		(1,246.0)		(1,720.0)
Total reserve discount	892.0		892.0		1,062.0
Current accident year	41.0	89.0	97.0	131.0
Accretion and other adjustments to prior year discount	(26.0)	(7.0)	(269.0)	(95.0)
Effect of interest rate changes	(136.0)	13.0	(473.0)	232.0
Net reserve discount benefit (charge)	(121.0)	95.0	(645.0)	268.0
Change in discount on loss reserves ceded under retroactive reinsurance	43.0	(46.0)	475.0	(154.0)
Net change in total reserve discount	(78.0)	49.0	(170.0)	114.0
Legacy General Insurance Run-Off Lines
Discounting of Reserves [Line Items]
U.S. Workers' compensation	698.0		698.0		973.0
Retroactive Reinsurance	0.0		0.0		0.0
Total reserve discount	698.0		698.0		973.0
Current accident year	0.0	0.0	0.0	0.0
Accretion and other adjustments to prior year discount	(56.0)	(12.0)	(80.0)	(42.0)
Effect of interest rate changes	(58.0)	3.0	(195.0)	79.0
Net reserve discount benefit (charge)	(114.0)	(9.0)	(275.0)	37.0
Change in discount on loss reserves ceded under retroactive reinsurance	0.0	0.0	0.0	0.0
Net change in total reserve discount	(114.0)	(9.0)	(275.0)	37.0
United Kingdom
Discounting of Reserves [Line Items]
Net reserve discount benefit (charge)			161.0		$ 163.0
Net change in total reserve discount	$ (27.0)	$ 12.0	$ (1.0)	$ 10.0

EQUITY (Details - Preferred Stock) - USD ($) $ / shares in Units, $ in Millions										9 Months Ended
	Sep. 30, 2019	Sep. 16, 2019	Jun. 28, 2019	Jun. 17, 2019	Mar. 29, 2019	Mar. 14, 2019	Sep. 28, 2018	Jun. 28, 2018	Mar. 29, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Class of Stock [Line Items]
Issuances (in shares)										3,339,817
Preferred stock, par value (in dollars per share)	$ 5.00									$ 5.00		$ 0
Preferred stock liquidation preference	$ 500									$ 500		$ 0
Issuance of preferred stock										$ 485	$ 0
Date dividends declared	Aug. 07, 2019		May 06, 2019		Feb. 13, 2019		Aug. 02, 2018	May 02, 2018	Feb. 08, 2018
Date dividends paid	Sep. 30, 2019		Jun. 28, 2019		Mar. 29, 2019		Sep. 28, 2018	Jun. 28, 2018	Mar. 29, 2018
Date of record	Sep. 17, 2019		Jun. 14, 2019		Mar. 15, 2019		Sep. 17, 2018	Jun. 14, 2018	Mar. 15, 2018
Series A Preferred Stock
Class of Stock [Line Items]
Issuances (in shares)						20,000
Preferred stock, dividend rate (as a percent)						5.85%				5.85%
Preferred stock, par value (in dollars per share)						$ 5.00
Preferred stock liquidation preference						$ 25,000
Issuance of preferred stock						$ 485
Date dividends declared		Aug. 07, 2019		May 21, 2019
Preferred Stock Dividends Per Share Cash Paid		$ 365.625		$ 369.6875
Date dividends paid		Sep. 16, 2019		Jun. 17, 2019
Date of record		Aug. 30, 2019		May 31, 2019
Series A Preferred Stock \| Rating Agency Event [Member]
Class of Stock [Line Items]
Preferred stock redemption terms										90 days
Preferred stock redemption price per share						$ 25,500
Series A Preferred Stock \| Regulatory Capital Event [Member]
Class of Stock [Line Items]
Preferred stock redemption terms										90 days
Preferred stock redemption price per share						$ 25,000
Depositary Shares
Class of Stock [Line Items]
Issuances (in shares)						20,000,000
Preferred stock liquidation preference						$ 25.00
Preferred Stock Dividends Per Share Cash Paid		$ 0.365625		$ 0.3696875
Depositary Shares \| Rating Agency Event [Member]
Class of Stock [Line Items]
Preferred stock redemption price per share						25.50
Depositary Shares \| Regulatory Capital Event [Member]
Class of Stock [Line Items]
Preferred stock redemption price per share						$ 25.00

EQUITY (Details - Shares Outstanding) - USD ($) $ / shares in Units, $ in Millions							9 Months Ended
	Sep. 30, 2019	Jun. 28, 2019	Mar. 29, 2019	Sep. 28, 2018	Jun. 28, 2018	Mar. 29, 2018	Sep. 30, 2019	Sep. 30, 2018	Feb. 13, 2019
The following table presents a roll forward of outstanding shares:
Shares, beginning of year							(1,040,062,063)
Shares, beginning of year							1,906,671,492
Shares, beginning of year							866,609,429
Issuances (in shares)							3,339,817
Shares repurchased							0	(18,000,000)
Shares, end of period	(1,036,722,246)						(1,036,722,246)
Shares, end of period	1,906,671,492						1,906,671,492
Shares, end of period	869,949,246						869,949,246
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
Date of Shareholders of Record	Sep. 17, 2019	Jun. 14, 2019	Mar. 15, 2019	Sep. 17, 2018	Jun. 14, 2018	Mar. 15, 2018
Date Dividends Declared	Aug. 07, 2019	May 06, 2019	Feb. 13, 2019	Aug. 02, 2018	May 02, 2018	Feb. 08, 2018
Date Dividends To Be Paid	Sep. 30, 2019	Jun. 28, 2019	Mar. 29, 2019	Sep. 28, 2018	Jun. 28, 2018	Mar. 29, 2018
Authorized amount of common Stock share repurchase									$ 1,500
Aggregate remaining authorization amount of common Stock share repurchase	$ 2,000						$ 2,000
Payments for Repurchase of Common Stock							0	$ 994
Amount paid to purchase warrants							$ 0	$ 6
Warrants repurchased							0	366,253
Common Stock Issued
The following table presents a roll forward of outstanding shares:
Shares, beginning of year							1,906,671,492
Issuances (in shares)							0
Shares repurchased							0
Shares, end of period	1,906,671,492						1,906,671,492
Treasury Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year							(1,040,062,063)
Issuances (in shares)							3,339,817
Shares repurchased							0
Shares, end of period	(1,036,722,246)						(1,036,722,246)

EQUITY (Details - Rollforward of Accumulated other comprehensive income) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period, net of tax	$ 4,991,000,000	$ 230,000,000	$ (1,413,000,000)	$ 5,465,000,000
Cumulative effect of change in accounting principles	625,000,000		625,000,000		$ 0	$ (8,000,000)
Change in unrealized appreciation (depreciation) of investments	4,377,000,000	(951,000,000)	16,197,000,000	(8,917,000,000)
Change in deferred acquisition costs adjustment and other	(511,000,000)	11,000,000	(2,249,000,000)	1,030,000,000
Change in future policy benefits	(3,042,000,000)	340,000,000	(5,291,000,000)	1,464,000,000
Changes in foreign currency translation adjustments	(24,000,000)	(131,000,000)	31,000,000	(154,000,000)
Change in net actuarial gain (loss)	13,000,000	16,000,000	29,000,000	54,000,000
Change in prior service cost (credit)	(1,000,000)	0	(2,000,000)	(2,000,000)
Deferred tax asset (liability)	(185,000,000)	(51,000,000)	(1,666,000,000)	1,099,000,000
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	1,000,000	0	(1,000,000)	1,000,000
Other comprehensive income (loss)	628,000,000	(766,000,000)	7,048,000,000	(5,425,000,000)
Noncontrolling interests	4,000,000	0	20,000,000	0
Balance, end of period, net of tax	5,615,000,000	(536,000,000)	5,615,000,000	(536,000,000)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of change in accounting principles					$ 0	(576,000,000)
Other comprehensive income (loss)	624,000,000	(766,000,000)	7,028,000,000	(5,425,000,000)
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Other-Than-Temporary Credit Impairments Were Taken
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period, net of tax	720,000,000	(234,000,000)	(38,000,000)	793,000,000
Cumulative effect of change in accounting principles						169,000,000
Change in unrealized appreciation (depreciation) of investments	(9,000,000)	350,000,000	935,000,000	(1,258,000,000)
Change in deferred acquisition costs adjustment and other	11,000,000	(205,000,000)	(3,000,000)	(91,000,000)
Change in future policy benefits	0	0	0	0
Changes in foreign currency translation adjustments	0	0	0	0
Change in net actuarial gain (loss)	0	0	0	0
Change in prior service cost (credit)	0	0	0	0
Deferred tax asset (liability)	(4,000,000)	(38,000,000)	(176,000,000)	260,000,000
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	0	0	0	0
Other comprehensive income (loss)	(2,000,000)	107,000,000	756,000,000	(1,089,000,000)
Noncontrolling interests	0	0	0	0
Balance, end of period, net of tax	718,000,000	(127,000,000)	718,000,000	(127,000,000)
Unrealized Appreciation (Depreciation) of All Other Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period, net of tax	8,034,000,000	3,944,000,000	2,426,000,000	7,693,000,000
Cumulative effect of change in accounting principles						(285,000,000)
Change in unrealized appreciation (depreciation) of investments	4,386,000,000	(1,301,000,000)	15,262,000,000	(7,659,000,000)
Change in deferred acquisition costs adjustment and other	(522,000,000)	216,000,000	(2,246,000,000)	1,121,000,000
Change in future policy benefits	(3,042,000,000)	340,000,000	(5,291,000,000)	1,464,000,000
Changes in foreign currency translation adjustments	0	0	0	0
Change in net actuarial gain (loss)	0	0	0	0
Change in prior service cost (credit)	0	0	0	0
Deferred tax asset (liability)	(166,000,000)	(13,000,000)	(1,447,000,000)	852,000,000
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	0	0	0	0
Other comprehensive income (loss)	656,000,000	(758,000,000)	6,278,000,000	(4,222,000,000)
Noncontrolling interests	5,000,000	0	19,000,000	0
Balance, end of period, net of tax	8,685,000,000	3,186,000,000	8,685,000,000	3,186,000,000
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period, net of tax	(2,692,000,000)	(2,426,000,000)	(2,725,000,000)	(2,090,000,000)
Cumulative effect of change in accounting principles						(284,000,000)
Change in unrealized appreciation (depreciation) of investments	0	0	0	0
Change in deferred acquisition costs adjustment and other	0	0	0	0
Change in future policy benefits	0	0	0	0
Changes in foreign currency translation adjustments	(24,000,000)	(131,000,000)	31,000,000	(154,000,000)
Change in net actuarial gain (loss)	0	0	0	0
Change in prior service cost (credit)	0	0	0	0
Deferred tax asset (liability)	(10,000,000)	2,000,000	(30,000,000)	(27,000,000)
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	0	0	0	0
Other comprehensive income (loss)	(34,000,000)	(129,000,000)	1,000,000	(181,000,000)
Noncontrolling interests	(1,000,000)	0	1,000,000	0
Balance, end of period, net of tax	(2,725,000,000)	(2,555,000,000)	(2,725,000,000)	(2,555,000,000)
Retirement Plan Liabilities Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period, net of tax	(1,079,000,000)	(1,062,000,000)	(1,086,000,000)	(931,000,000)
Cumulative effect of change in accounting principles						(183,000,000)
Change in unrealized appreciation (depreciation) of investments	0	0	0	0
Change in deferred acquisition costs adjustment and other	0	0	0	0
Change in future policy benefits	0	0	0	0
Changes in foreign currency translation adjustments	0	0	0	0
Change in net actuarial gain (loss)	13,000,000	16,000,000	29,000,000	54,000,000
Change in prior service cost (credit)	(1,000,000)	0	(2,000,000)	(2,000,000)
Deferred tax asset (liability)	(5,000,000)	(2,000,000)	(13,000,000)	14,000,000
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	0	0	0	0
Other comprehensive income (loss)	7,000,000	14,000,000	14,000,000	66,000,000
Noncontrolling interests	0	0	0	0
Balance, end of period, net of tax	(1,072,000,000)	(1,048,000,000)	(1,072,000,000)	(1,048,000,000)
Fair Value of Liabilities Under Fair Value Option Attributable to Changes in Own Credit Risk
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period, net of tax	8,000,000	8,000,000	10,000,000	0
Cumulative effect of change in accounting principles						$ 7,000,000
Change in unrealized appreciation (depreciation) of investments	0	0	0	0
Change in deferred acquisition costs adjustment and other	0	0	0	0
Change in future policy benefits	0	0	0	0
Changes in foreign currency translation adjustments	0	0	0	0
Change in net actuarial gain (loss)	0	0	0	0
Change in prior service cost (credit)	0	0	0	0
Deferred tax asset (liability)	0	0	0	0
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	1,000,000	0	(1,000,000)	1,000,000
Other comprehensive income (loss)	1,000,000	0	(1,000,000)	1,000,000
Noncontrolling interests	0	0	0	0
Balance, end of period, net of tax	$ 9,000,000	$ 8,000,000	$ 9,000,000	$ 8,000,000

EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	$ 932,000,000	$ (683,000,000)	$ 8,874,000,000	$ (6,526,000,000)
Less: Reclassification adjustments included in net income	119,000,000	32,000,000	160,000,000	(2,000,000)
Total other comprehensive income (loss), before income tax expense (benefit)	813,000,000	(715,000,000)	8,714,000,000	(6,524,000,000)
Less: Income tax expense (benefit)	185,000,000	51,000,000	1,666,000,000	(1,099,000,000)
Other comprehensive income (loss)	628,000,000	(766,000,000)	7,048,000,000	(5,425,000,000)
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	3,000,000	146,000,000	929,000,000	(1,344,000,000)
Less: Reclassification adjustments included in net income	1,000,000	1,000,000	(3,000,000)	5,000,000
Total other comprehensive income (loss), before income tax expense (benefit)	2,000,000	145,000,000	932,000,000	(1,349,000,000)
Less: Income tax expense (benefit)	4,000,000	38,000,000	176,000,000	(260,000,000)
Other comprehensive income (loss)	(2,000,000)	107,000,000	756,000,000	(1,089,000,000)
Unrealized Appreciation (Depreciation) of All Other Investments
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	949,000,000	(705,000,000)	7,912,000,000	(5,055,000,000)
Less: Reclassification adjustments included in net income	127,000,000	40,000,000	187,000,000	19,000,000
Total other comprehensive income (loss), before income tax expense (benefit)	822,000,000	(745,000,000)	7,725,000,000	(5,074,000,000)
Less: Income tax expense (benefit)	166,000,000	13,000,000	1,447,000,000	(852,000,000)
Other comprehensive income (loss)	656,000,000	(758,000,000)	6,278,000,000	(4,222,000,000)
Foreign Currency Translation Adjustments
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	(24,000,000)	(131,000,000)	31,000,000	(154,000,000)
Less: Reclassification adjustments included in net income	0	0	0	0
Total other comprehensive income (loss), before income tax expense (benefit)	(24,000,000)	(131,000,000)	31,000,000	(154,000,000)
Less: Income tax expense (benefit)	10,000,000	(2,000,000)	30,000,000	27,000,000
Other comprehensive income (loss)	(34,000,000)	(129,000,000)	1,000,000	(181,000,000)
Retirement Plan Liabilities Adjustment
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	3,000,000	7,000,000	3,000,000	26,000,000
Less: Reclassification adjustments included in net income	(9,000,000)	(9,000,000)	(24,000,000)	(26,000,000)
Total other comprehensive income (loss), before income tax expense (benefit)	12,000,000	16,000,000	27,000,000	52,000,000
Less: Income tax expense (benefit)	5,000,000	2,000,000	13,000,000	(14,000,000)
Other comprehensive income (loss)	7,000,000	14,000,000	14,000,000	66,000,000
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	1,000,000	0	(1,000,000)	1,000,000
Less: Reclassification adjustments included in net income	0	0	0	0
Total other comprehensive income (loss), before income tax expense (benefit)	1,000,000	0	(1,000,000)	1,000,000
Less: Income tax expense (benefit)	0	0	0	0
Other comprehensive income (loss)	$ 1,000,000	$ 0	$ (1,000,000)	$ 1,000,000

EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investments	$ 953	$ (476)	$ 1,024	$ (207)
Deferred acquisition costs adjustment	1,252	1,118	3,980	3,813
Future policy benefits	6,892	8,312	19,373	19,484
Total	119	32	160	(2)
Income (loss) from continuing operations before income tax expense (benefit)	1,260	(1,527)	4,251	952
Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from continuing operations before income tax expense (benefit)	119	32	160	(2)
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	1	1	(3)	5
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	1	1	(3)	5
Total	1	1	(3)	5
Unrealized appreciation (depreciation) of all other investments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total	127	40	187	19
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	127	10	187	19
Deferred acquisition costs adjustment	0	30	0	0
Future policy benefits	0	0	0	0
Total	127	40	187	19
Change in retirement plan liabilities adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total	(9)	(9)	(24)	(26)
Change in retirement plan liabilities adjustment \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Prior-service credit	0	0	0	1
Actuarial gains (losses)	(9)	(9)	(24)	(27)
Total	$ (9)	$ (9)	$ (24)	$ (26)

EARNINGS PER COMMON SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator for EPS:
Income (loss) from continuing operations	$ 973	$ (1,220)	$ 3,301	$ 661
Less: Net income from continuing operations attributable to noncontrolling interests	317	0	881	5
Less: Preferred stock dividends	8	0	15	0
Net income (loss) attributable to AIG common shareholders from continuing operations	648	(1,220)	2,405	656
Loss from discontinued operations, net of income tax expense	0	(39)	(1)	(40)
Net income (loss) attributable to AIG common shareholders	$ 648	$ (1,259)	$ 2,404	$ 616
Denominator for EPS:
Weighted average common shares outstanding - basic	877,009,495	895,237,359	876,262,372	902,081,555
Dilutive common shares	18,804,915	0	10,958,744	14,736,714
Weighted average common shares outstanding - diluted	895,814,410	895,237,359	887,221,116	916,818,269
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)
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)
Income (loss) attributable to AIG common shareholders	$ 0.72	$ (1.41)	$ 2.71	$ 0.67
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive	5,100,000	5,800,000	24,900,000	4,700,000
Dilutive Shares Excluded From Computation Of Diluted Earnings Per Share		13,538,168

EMPLOYEE BENEFITS (Details - Components of net periodic benefit cost with respect to pensions and other postretirement benefits) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pensions
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 8	$ 6	$ 23	$ 21
Interest cost	47	45	142	134
Expected return on assets	(63)	(78)	(188)	(232)
Amortization of prior service cost (credit)	0	0	1	1
Amortization of net (gain) loss	10	9	29	27
Net periodic benefit cost (credit)	2	(18)	7	(49)
Settlement charges	0	0	(3)	0
Net benefit cost (credit)	2	(18)	4	(49)
Pensions \| U.S.
Defined Benefit Plan Disclosure [Line Items]
Service cost	2	0	7	4
Interest cost	44	41	131	122
Expected return on assets	(58)	(72)	(172)	(213)
Amortization of prior service cost (credit)	0	0	0	0
Amortization of net (gain) loss	9	7	25	21
Net periodic benefit cost (credit)	(3)	(24)	(9)	(66)
Settlement charges	0	0	0	0
Net benefit cost (credit)	(3)	(24)	(9)	(66)
Pensions \| Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	6	6	16	17
Interest cost	3	4	11	12
Expected return on assets	(5)	(6)	(16)	(19)
Amortization of prior service cost (credit)	0	0	1	1
Amortization of net (gain) loss	1	2	4	6
Net periodic benefit cost (credit)	5	6	16	17
Settlement charges	0	0	(3)	0
Net benefit cost (credit)	5	6	13	17
Postretirement Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	1	2
Interest cost	2	2	6	6
Expected return on assets	0	0	0	0
Amortization of prior service cost (credit)	0	0	(1)	(2)
Amortization of net (gain) loss	0	0	(1)	0
Net periodic benefit cost (credit)	2	2	5	6
Settlement charges	0	0	0	0
Net benefit cost (credit)	2	2	5	6
Postretirement Plans \| U.S.
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	1	1
Interest cost	2	1	5	4
Expected return on assets	0	0	0	0
Amortization of prior service cost (credit)	0	0	0	(1)
Amortization of net (gain) loss	0	0	(1)	0
Net periodic benefit cost (credit)	2	1	5	4
Settlement charges	0	0	0	0
Net benefit cost (credit)	2	1	5	4
AIG contributions			160
Postretirement Plans \| Non U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	1
Interest cost	0	1	1	2
Expected return on assets	0	0	0	0
Amortization of prior service cost (credit)	0	0	(1)	(1)
Amortization of net (gain) loss	0	0	0	0
Net periodic benefit cost (credit)	0	1	0	2
Settlement charges	0	0	0	0
Net benefit cost (credit)	$ 0	$ 1	$ 0	$ 2

INCOME TAXES (Details - EFFECTIVE TAX RATE) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Income (loss) from continuing operations before income tax expense (benefit)
Income from continuing operations before income tax expense	$ 1,260	$ (1,527)	$ 4,251	$ 952
U.S.:
Income tax expense	287	(307)	950	291
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, pre-tax income (loss)
Income from continuing operations before income tax expense	1,260	(1,527)	4,251	952
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, tax expense/benefit
Income tax expense	287	$ (307)	950	$ 291
Valuation allowance
Increase (Decrease) in certain other valuation allowances associated with foreign jurisdictions	$ (9)		$ (40)
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%	21.00%	21.00%
Adjustments:
Amounts attributable to continuing operations (as a percent)	22.80%	20.10%	22.30%	30.60%
Accounting for Uncertainty in Income Taxes
Unrecognized tax benefits, excluding interest and penalties	$ 4,800		$ 4,800		$ 4,700
Unrecognized tax benefits, if recognized would not affect the effective tax rate	43		43		38
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate	4,700		4,700		4,700
Unrecognized tax benefits, interest and penalties accrued	2,400		2,400		$ 2,200
Unrecognized tax benefits, interest net of the federal (benefit) expense and penalties			181	$ 148
Decrease in Unrecognized Tax Benefits is Reasonably Possible in the next twelve months	$ 3,900		$ 3,900
U.S. taxable income from life companies offset by those net operating loss carryforwards			35.00%

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($)
$ in Millions

Sep. 30, 2019

Jun. 30, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Dec. 31, 2017

Assets:

$ 14,113

$ 9,674

326,880

304,535

340,993

314,209

3,361

2,873

$ 2,741

180,768

174,902

525,122

491,984

305,993

293,652

35,262

34,540

116,422

106,483

457,677

434,675

65,603

56,361

1,842

948

67,445

$ 66,105

57,309

59,177

$ 61,797

$ 65,708

525,122

491,984

AIG (As Guarantor)

Assets:

3,229

1,141

4,505

3,377

7,734

4,518

35,142

34,963

40,115

33,300

15,583

15,389

98,577

88,172

21,905

22,422

10,321

8,774

748

615

32,974

31,811

65,603

56,361

65,603

56,361

98,577

88,172

Validus Holdings, Ltd

Assets:

3,814

4,029

1,792

1,798

5,628

5,838

355

359

228

363

587

5,265

5,251

5,265

5,251

5,628

5,838

AIGLH

Assets:

33,315

26,321

124

33,334

26,454

643

144

666

787

32,668

25,667

32,668

25,667

33,334

26,454

Other Subsidiaries

Assets:

13,374

10,329

322,375

301,158

335,749

311,487

3,337

2,853

2,669

752

615

165,222

159,430

505,060

474,385

305,993

293,652

12,359

11,116

110,413

100,974

35,142

34,963

463,907

440,705

39,311

32,732

1,842

948

41,153

33,680

505,060

474,385

Assets:

Other assets | AIG (As Guarantor)

345

^[1]

343

354

^[1]

Assets:

Other assets | Validus Holdings, Ltd

Assets:

Other assets | AIGLH

Assets:

Other assets | Other Subsidiaries

Assets:

344

342

353

Assets:

Short-term investments | AIG (As Guarantor)

^[1]

142

^[1]

Assets:

Short-term investments | Validus Holdings, Ltd

124

Assets:

Short-term investments | AIGLH

Assets:

Short-term investments | Other Subsidiaries

Assets:

Reclassification and Eliminations

Assets:

(2,492)

(1,798)

(2,492)

(1,798)

(35,894)

(35,578)

(77,244)

(63,650)

(1,847)

(1,839)

(117,477)

(102,865)

(4,343)

(3,637)

(35,890)

(35,578)

(40,233)

(39,215)

(77,244)

(63,650)

(77,244)

(63,650)

Reclassification and Eliminations | Other assets

(117,477)

$ (102,865)

Assets:

Reclassification and Eliminations | Short-term investments

Assets:

Condensed Financial Statements, Captions [Line Items]

$ 0

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

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income (Loss)) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Equity in earnings of consolidated subsidiaries	$ 0	$ 0	$ 0	$ 0
Other income	12,914	11,486	37,931	34,829
Total revenues	12,914	11,486	37,931	34,829
Expenses:
Interest expense	348	326	1,057	902
Losses on extinguishment of debt	0	1	13	10
Other expenses	11,306	12,686	32,610	32,965
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
Income (loss) from discontinued operations	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
AIG (As Guarantor)
Revenues:
Equity in earnings of consolidated subsidiaries	998	(989)	2,873	889
Other income	279	183	843	750
Total revenues	1,277	(806)	3,716	1,639
Expenses:
Interest expense	245	244	741	710
Losses on extinguishment of debt	0	0	0	0
Other expenses	188	132	556	643
Total benefits, losses and expenses	433	376	1,297	1,353
Income (loss) from continuing operations before income tax expense (benefit)	844	(1,182)	2,419	286
Income tax expense (benefit)	187	38	(2)	(370)
Income (loss) from continuing operations	657	(1,220)	2,421	656
Income (loss) from discontinued operations	(1)	(39)	(2)	(40)
Net income (loss)	656	(1,259)	2,419	616
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to AIG	656	(1,259)	2,419	616
Validus Holdings, Ltd
Revenues:
Equity in earnings of consolidated subsidiaries	28	(93)	344	(93)
Other income	4	23	9	23
Total revenues	32	(70)	353	(70)
Expenses:
Interest expense	13	10	13	10
Losses on extinguishment of debt	(9)	0	0	0
Other expenses	7	2	12	2
Total benefits, losses and expenses	11	12	25	12
Income (loss) from continuing operations before income tax expense (benefit)	21	(82)	328	(82)
Income tax expense (benefit)	0	0	0	0
Income (loss) from continuing operations	21	(82)	328	(82)
Income (loss) from discontinued operations	0	0	0	0
Net income (loss)	21	(82)	328	(82)
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to AIG	21	(82)	328	(82)
AIGLH
Revenues:
Equity in earnings of consolidated subsidiaries	1,011	1,316	2,989	2,497
Other income	0	1	0	1
Total revenues	1,011	1,317	2,989	2,498
Expenses:
Interest expense	12	12	37	37
Losses on extinguishment of debt	0	0	0	0
Other expenses	1	1	2	2
Total benefits, losses and expenses	13	13	39	39
Income (loss) from continuing operations before income tax expense (benefit)	998	1,304	2,950	2,459
Income tax expense (benefit)	(2)	(2)	(4)	0
Income (loss) from continuing operations	1,000	1,306	2,954	2,459
Income (loss) from discontinued operations	0	0	0	0
Net income (loss)	1,000	1,306	2,954	2,459
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to AIG	1,000	1,306	2,954	2,459
Other Subsidiaries
Revenues:
Equity in earnings of consolidated subsidiaries	0	0	0	0
Other income	12,710	11,412	37,234	34,103
Total revenues	12,710	11,412	37,234	34,103
Expenses:
Interest expense	81	63	277	154
Losses on extinguishment of debt	9	1	13	10
Other expenses	11,185	12,513	32,183	32,357
Total benefits, losses and expenses	11,275	12,577	32,473	32,521
Income (loss) from continuing operations before income tax expense (benefit)	1,435	(1,165)	4,761	1,582
Income tax expense (benefit)	102	(343)	956	661
Income (loss) from continuing operations	1,333	(822)	3,805	921
Income (loss) from discontinued operations	1	0	1	0
Net income (loss)	1,334	(822)	3,806	921
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	317	0	881	5
Net income (loss) attributable to AIG	1,017	(822)	2,925	916
Reclassification and Eliminations
Revenues:
Equity in earnings of consolidated subsidiaries	(2,037)	(234)	(6,206)	(3,293)
Other income	(79)	(133)	(155)	(48)
Total revenues	(2,116)	(367)	(6,361)	(3,341)
Expenses:
Interest expense	(3)	(3)	(11)	(9)
Losses on extinguishment of debt	0	0	0	0
Other expenses	(75)	38	(143)	(39)
Total benefits, losses and expenses	(78)	35	(154)	(48)
Income (loss) from continuing operations before income tax expense (benefit)	(2,038)	(402)	(6,207)	(3,293)
Income tax expense (benefit)	0	0	0	0
Income (loss) from continuing operations	(2,038)	(402)	(6,207)	(3,293)
Income (loss) from discontinued operations	0	0	0	0
Net income (loss)	(2,038)	(402)	(6,207)	(3,293)
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to AIG	$ (2,038)	$ (402)	$ (6,207)	$ (3,293)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	$ 973	$ (1,259)	$ 3,300	$ 621
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)
AIG (As Guarantor)
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	656	(1,259)	2,419	616
Other comprehensive income (loss)	624	(766)	7,028	(5,425)
Comprehensive income (loss)	1,280	(2,025)	9,447	(4,809)
Comprehensive income (loss) attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to AIG	1,280	(2,025)	9,447	(4,809)
Validus Holdings, Ltd
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	21	(82)	328	(82)
Other comprehensive income (loss)	0	0	1	0
Comprehensive income (loss)	21	(82)	329	(82)
Comprehensive income (loss) attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to AIG	21	(82)	329	(82)
AIGLH
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	1,000	1,306	2,954	2,459
Other comprehensive income (loss)	303	(301)	5,521	(3,766)
Comprehensive income (loss)	1,303	1,005	8,475	(1,307)
Comprehensive income (loss) attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to AIG	1,303	1,005	8,475	(1,307)
AIGLH \| Scenario, Previously Reported [Member]
Condensed Financial Statements, Captions [Line Items]
Other comprehensive income (loss)				3,100
Other Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	1,334	(822)	3,806	921
Other comprehensive income (loss)	(1,436)	(2,229)	3,593	(6,650)
Comprehensive income (loss)	(102)	(3,051)	7,399	(5,729)
Comprehensive income (loss) attributable to noncontrolling interests	321	0	901	5
Comprehensive income (loss) attributable to AIG	(423)	(3,051)	6,498	(5,734)
Other Subsidiaries \| Scenario, Previously Reported [Member]
Condensed Financial Statements, Captions [Line Items]
Other comprehensive income (loss)		(1,400)		12,600
Reclassification and Eliminations
Condensed Financial Statements, Captions [Line Items]
Net income (loss)	(2,038)	(402)	(6,207)	(3,293)
Other comprehensive income (loss)	1,137	2,530	(9,095)	10,416
Comprehensive income (loss)	(901)	2,128	(15,302)	7,123
Comprehensive income (loss) attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to AIG	$ (901)	2,128	$ (15,302)	7,123
Reclassification and Eliminations \| Scenario, Previously Reported [Member]
Condensed Financial Statements, Captions [Line Items]
Other comprehensive income (loss)		$ 1,700		$ (15,700)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($)

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Dec. 31, 2018

Sep. 30, 2018

Net cash provided by (used in) operating activities

$ (789,000,000)

$ (38,000,000)

48,471,000,000

46,533,000,000

2,000,000

10,000,000

(51,509,000,000)

(43,928,000,000)

Acquisition of businesses, net of cash and restricted cash acquired

(5,052,000,000)

(4,586,000,000)

2,411,000,000

Net cash provided by (used in) investing activities

2,829,000,000

(891,000,000)

(4,793,000,000)

(917,000,000)

2,564,000,000

4,059,000,000

(2,421,000,000)

(2,788,000,000)

485,000,000

(994,000,000)

(15,000,000)

(835,000,000)

(858,000,000)

6,177,000,000

1,914,000,000

Effect of exchange rate changes on cash and restricted cash

5,955,000,000

1,333,000,000

39,000,000

8,000,000

412,000,000

386,000,000

3,358,000,000

2,737,000,000

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

3,770,000,000

3,123,000,000

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

$ 3,361,000,000

$ 2,873,000,000

$ 2,741,000,000

3,770,000,000

2,737,000,000

3,770,000,000

3,358,000,000

3,123,000,000

Interest:

(1,012,000,000)

(1,018,000,000)

Taxes:

(193,000,000)

(67,000,000)

Condensed Financial Statements, Captions [Line Items]

AIG (As Guarantor)

Net cash provided by (used in) operating activities

2,755,000,000

1,389,000,000

2,090,000,000

4,641,000,000

(2,395,000,000)

(1,680,000,000)

534,000,000

878,000,000

Acquisition of businesses, net of cash and restricted cash acquired

(239,000,000)

22,000,000

(5,475,000,000)

(2,242,000,000)

1,267,000,000

Net cash provided by (used in) investing activities

87,000,000

(55,000,000)

(2,165,000,000)

(402,000,000)

595,000,000

2,470,000,000

(1,006,000,000)

(1,493,000,000)

485,000,000

(994,000,000)

127,000,000

50,000,000

(15,000,000)

(835,000,000)

(858,000,000)

(63,000,000)

(165,000,000)

Effect of exchange rate changes on cash and restricted cash

(712,000,000)

(990,000,000)

(122,000,000)

(3,000,000)

127,000,000

8,000,000

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

5,000,000

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

3,000,000

2,000,000

3,000,000

127,000,000

8,000,000

5,000,000

127,000,000

5,000,000

Interest:

(735,000,000)

(706,000,000)

(2,000,000)

(1,000,000)

Taxes:

(12,000,000)

(23,000,000)

Non-cash financing and investing activities:

1,035,000,000

1,084,000,000

Return of capital

15,000,000

2,706,000,000

Dividends received in the form of securities

659,000,000

745,000,000

Capital contributions

15,000,000

2,339,000,000

Validus Holdings, Ltd

Condensed Financial Statements, Captions [Line Items]

Net cash provided by (used in) operating activities

101,000,000

(40,000,000)

Acquisition of businesses, net of cash and restricted cash acquired

112,000,000

Net cash provided by (used in) investing activities

112,000,000

(90,000,000)

(6,000,000)

Effect of exchange rate changes on cash and restricted cash

(90,000,000)

(6,000,000)

11,000,000

66,000,000

9,000,000

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

20,000,000

66,000,000

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

20,000,000

9,000,000

66,000,000

9,000,000

20,000,000

9,000,000

66,000,000

Interest:

(22,000,000)

14,000,000

(31,000,000)

Taxes:

Condensed Financial Statements, Captions [Line Items]

2,000,000

AIGLH

Net cash provided by (used in) operating activities

1,462,000,000

2,003,000,000

Acquisition of businesses, net of cash and restricted cash acquired

Net cash provided by (used in) investing activities

(1,470,000,000)

(2,020,000,000)

Effect of exchange rate changes on cash and restricted cash

(1,470,000,000)

(2,020,000,000)

(8,000,000)

(17,000,000)

9,000,000

20,000,000

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

1,000,000

3,000,000

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

1,000,000

9,000,000

3,000,000

9,000,000

20,000,000

1,000,000

9,000,000

3,000,000

Interest:

(48,000,000)

(47,000,000)

1,000,000

Taxes:

Condensed Financial Statements, Captions [Line Items]

Other Subsidiaries

Net cash provided by (used in) operating activities

(1,068,000,000)

(433,000,000)

46,921,000,000

45,218,000,000

2,000,000

10,000,000

(49,654,000,000)

(45,574,000,000)

(127,000,000)

(50,000,000)

Acquisition of businesses, net of cash and restricted cash acquired

311,000,000

(2,344,000,000)

1,144,000,000

Net cash provided by (used in) investing activities

2,742,000,000

(836,000,000)

(2,460,000,000)

223,000,000

1,969,000,000

1,589,000,000

(1,415,000,000)

(1,295,000,000)

(534,000,000)

(878,000,000)

(2,479,000,000)

(931,000,000)

6,479,000,000

2,057,000,000

Effect of exchange rate changes on cash and restricted cash

4,020,000,000

542,000,000

39,000,000

8,000,000

531,000,000

340,000,000

3,213,000,000

2,709,000,000

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

3,744,000,000

3,049,000,000

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

3,337,000,000

2,853,000,000

2,669,000,000

3,213,000,000

2,709,000,000

3,744,000,000

3,213,000,000

3,049,000,000

Interest:

(207,000,000)

(279,000,000)

(29,000,000)

2,000,000

Taxes:

(181,000,000)

(44,000,000)

(1,037,000,000)

(1,084,000,000)

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

Other assets | AIG (As Guarantor)

345,000,000

^[1]

343,000,000

354,000,000

^[1]

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

Other assets | Validus Holdings, Ltd

1,000,000

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

Other assets | AIGLH

Other assets | Other Subsidiaries

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

344,000,000

342,000,000

353,000,000

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

Short-term investments | AIG (As Guarantor)

64,000,000

^[1]

142,000,000

28,000,000

^[1]

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

Short-term investments | Validus Holdings, Ltd

1,000,000

124,000,000

1,000,000

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

Short-term investments | AIGLH

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

Short-term investments | Other Subsidiaries

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

Reclassification and Eliminations

63,000,000

18,000,000

27,000,000

Condensed Financial Statements, Captions [Line Items]

Net cash provided by (used in) operating activities

(4,039,000,000)

(2,957,000,000)

(540,000,000)

(3,326,000,000)

540,000,000

3,326,000,000

(407,000,000)

(828,000,000)

Acquisition of businesses, net of cash and restricted cash acquired

239,000,000

(22,000,000)

Net cash provided by (used in) investing activities

(168,000,000)

(850,000,000)

407,000,000

828,000,000

4,039,000,000

2,957,000,000

(239,000,000)

22,000,000

Effect of exchange rate changes on cash and restricted cash

4,207,000,000

3,807,000,000

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

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

$ 0

Interest:

Taxes:

Reclassification and Eliminations | Other assets

$ 0

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]

Reclassification and Eliminations | Short-term investments

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]