0001104659-20-122282 | 10-Q | XBRL Viewer | American International Group INC

3,800

3,408

9,674

11,032

Policyholder benefits and losses incurred

(1,122)

929

887

Other income

218

227

642

658

Total revenues

10,221

12,914

34,060

37,931

Benefits, losses and expenses:

5,872

6,892

18,718

19,373

Interest credited to policyholder account balances

882

966

2,757

2,873

Amortization of deferred policy acquisition costs

707

1,252

3,323

3,980

General operating and other expenses

1,991

2,187

6,231

6,380

Interest expense

379

348

1,099

1,057

(Gain) loss on extinguishment of debt

(2)

Net loss on sale of divested businesses

8,652

Total benefits, losses and expenses

9,853

11,654

40,795

33,680

Income (loss) from continuing operations before income tax expense (benefit)

368

1,260

(6,735)

4,251

Income tax expense (benefit)

287

(918)

950

Income (loss) from continuing operations

294

973

(5,817)

3,301

Income (loss) from discontinued operations, net of income taxes

(1)

Net income (loss)

299

973

(5,813)

3,300

Less:

Net income from continuing operations attributable to noncontrolling interests

317

881

Net income (loss) attributable to AIG

288

656

(5,891)

2,419

Less: Dividends on preferred stock

Net income (loss) attributable to AIG common shareholders

$ 281

$ 648

$ (5,913)

$ 2,404

Basic:

Income (loss) from continuing operations

$ 0.31

$ 0.74

$ (6.80)

$ 2.74

Income (loss) from discontinued operations

0.01

Net income (loss) attributable to AIG common shareholders

0.32

0.74

(6.80)

2.74

Diluted:

Income (loss) from continuing operations

0.31

0.72

(6.80)

2.71

Income (loss) from discontinued operations

0.01

Net income (loss) attributable to AIG common shareholders

$ 0.32

$ 0.72

$ (6.80)

$ 2.71

Weighted average shares outstanding:

Basic

867,713,308

877,009,495

869,627,926

876,262,372

Diluted

873,130,950

895,814,410

869,627,926

887,221,116

Excluding Fortitude Re funds withheld assets

Revenues:

$ 3,342

$ 3,408

$ 9,100

$ 11,032

Fortitude Re funds withheld assets

(498)

929

1,430

887

Revenues:

^[1]

458

574

Fortitude Re funds withheld embedded derivative

^[1]

128

Revenues:

Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:

^[1]

$ (656)

$ 0

$ (1,493)

$ 0

[1]	Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)	$ 299	$ 973	$ (5,813)	$ 3,300
Other comprehensive income, net of tax
Change in unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken	79	0	(154)	0
Change in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken	0	(2)	0	756
Change in unrealized appreciation of all other investments	1,385	656	5,925	6,278
Change in foreign currency translation adjustments	352	(34)	206	1
Change in retirement plan liabilities adjustment	(1)	7	1	14
Change in fair value of liabilities under fair value option attributable to changes in own credit risk	1	1	2	(1)
Other comprehensive income	1,816	628	5,980	7,048
Comprehensive income	2,115	1,601	167	10,348
Comprehensive income attributable to noncontrolling interests	18	321	62	901
Comprehensive income attributable to AIG	$ 2,097	$ 1,280	$ 105	$ 9,447

Condensed Consolidated Statements of Equity - USD ($) $ in Millions	Total	Cumulative effect of change in accounting principle	Total AIG Shareholders' Equity	Total AIG Shareholders' Equity Cumulative effect of change in accounting principle	Preferred Stock and Additional Paid-In Capital	Preferred Stock and Additional Paid-In Capital Cumulative effect of change in accounting principle	Common Stock	Common Stock Cumulative effect of change in accounting principle	Treasury Stock	Treasury Stock Cumulative effect of change in accounting principle	Additional Paid-in Capital	Additional Paid-in Capital Cumulative effect of change in accounting principle	Retained Earnings	Retained Earnings Cumulative effect of change in accounting principle	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative effect of change in accounting principle	Non redeemable Non-controlling Interests	Non redeemable Non-controlling Interests Cumulative effect of change in accounting principle
Balance at Dec. 31, 2018	$ 57,309		$ 56,361		$ 0		$ 4,766		$ (49,144)		$ 81,268		$ 20,884		$ (1,413)		$ 948
Preferred stock issued	485		485		485		0		0		0		0		0		0
Common stock issued under stock plans	(77)		(77)		0		0		154		(231)		0		0		0
Purchase of common stock	0		0		0		0		0		0		0		0		0
Net income (loss) attributable to AIG or noncontrolling interests	3,300		2,419		0		0		0		0		2,419		0		881
Dividends on preferred stock	(15)		(15)		0		0		0		0		(15)		0		0
Dividends on common stock	(835)		(835)		0		0		0		0		(835)		0		0
Other comprehensive income (loss)	7,048		7,028		0		0		0		0		0		7,028		20
Current and deferred income taxes	0		0		0		0		0		0		0		0		0
Net increase due to acquisitions and consolidations	78		0		0		0		0		0		0		0		78
Contributions from noncontrolling interests	13		0		0		0		0		0		0		0		13
Distributions to noncontrolling interests	(106)		0		0		0		0		0		0		0		(106)
Other	245		237		0		0		1		250		(14)		0		8
Balance at Sep. 30, 2019	67,445		65,603		485		4,766		(48,989)		81,287		22,439		5,615		1,842
Balance at Jun. 30, 2019	66,105		64,539		485		4,766		(48,991)		81,211		22,077		4,991		1,566
Preferred stock issued	0		0		0		0		0		0		0		0		0
Common stock issued under stock plans	1		1		0		0		1		0		0		0		0
Purchase of common stock	0		0		0		0		0		0		0		0		0
Net income (loss) attributable to AIG or noncontrolling interests	973		656		0		0		0		0		656		0		317
Dividends on preferred stock	(8)		(8)		0		0		0		0		(8)		0		0
Dividends on common stock	(278)		(278)		0		0		0		0		(278)		0		0
Other comprehensive income (loss)	628		624		0		0		0		0		0		624		4
Current and deferred income taxes	0		0		0		0		0		0		0		0		0
Net increase due to acquisitions and consolidations	(18)		0		0		0		0		0		0		0		(18)
Contributions from noncontrolling interests	11		0		0		0		0		0		0		0		11
Distributions to noncontrolling interests	(37)		0		0		0		0		0		0		0		(37)
Other	68		69		0		0		1		76		(8)		0		(1)
Balance at Sep. 30, 2019	67,445		65,603		485		4,766		(48,989)		81,287		22,439		5,615		1,842
Balance at Dec. 31, 2019	67,427	$ (487)	65,675	$ (487)	485	$ 0	4,766	$ 0	(48,987)	$ 0	81,345	$ 0	23,084	$ (487)	4,982	$ 0	1,752	$ 0
Preferred stock issued	0		0		0		0		0		0		0		0		0
Common stock issued under stock plans	(98)		(98)		0		0		167		(265)		0		0		0
Purchase of common stock	(500)		(500)		0		0		(500)		0		0		0		0
Net income (loss) attributable to AIG or noncontrolling interests	(5,813)		(5,891)		0		0		0		0		(5,891)		0		78
Dividends on preferred stock	(22)		(22)		0		0		0		0		(22)		0		0
Dividends on common stock	(827)		(827)		0		0		0		0		(827)		0		0
Other comprehensive income (loss)	5,980		5,996		0		0		0		0		0		5,996		(16)
Net decrease due to deconsolidation	(1,199)		0		0		0		0		0		0		0		(1,199)
Contributions from noncontrolling interests	4		0		0		0		0		0		0		0		4
Distributions to noncontrolling interests	(113)		0		0		0		0		0		0		0		(113)
Other	255		262		0		0		(7)		288		(19)		0		(7)
Balance at Sep. 30, 2020	64,607		64,108		485		4,766		(49,327)		81,368		15,838		10,978		499
Balance at Jun. 30, 2020	62,818	$ 0	62,234	$ 0	485	$ 0	4,766	$ 0	(49,327)	$ 0	81,294	$ 0	15,847	$ 0	9,169	$ 0	584	$ 0
Preferred stock issued	0		0		0		0		0		0		0		0		0
Common stock issued under stock plans	(1)		(1)		0		0		0		(1)		0		0		0
Purchase of common stock	0		0		0		0		0		0		0		0		0
Net income (loss) attributable to AIG or noncontrolling interests	299		288		0		0		0		0		288		0		11
Dividends on preferred stock	(7)		(7)		0		0		0		0		(7)		0		0
Dividends on common stock	(276)		(276)		0		0		0		0		(276)		0		0
Other comprehensive income (loss)	1,816		1,809		0		0		0		0		0		1,809		7
Net decrease due to deconsolidation	(28)		0		0		0		0		0		0		0		(28)
Contributions from noncontrolling interests	0		0		0		0		0		0		0		0		0
Distributions to noncontrolling interests	(71)		0		0		0		0		0		0		0		(71)
Other	57		61		0		0		0		75		(14)		0		(4)
Balance at Sep. 30, 2020	$ 64,607		$ 64,108		$ 485		$ 4,766		$ (49,327)		$ 81,368		$ 15,838		$ 10,978		$ 499

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ (5,813)	$ 3,300
(Income) loss from discontinued operations	(4)	1
Noncash revenues, expenses, gains and losses included in income (loss):
Net gain on sales of securities available for sale and other assets	(675)	(600)
Net loss on sale or disposal of divested businesses	8,652	4
Losses on extinguishment of debt	15	13
Unrealized (gains) losses in earnings - net	72	(273)
Equity in loss from equity method investments, net of dividends or distributions	210	90
Depreciation and other amortization	3,223	3,833
Impairments of assets	79	237
Changes in operating assets and liabilities:
Insurance reserves	1,818	(2,146)
Premiums and other receivables and payables - net	2,152	(42)
Reinsurance assets and funds held under reinsurance contracts	(2,148)	(1,200)
Capitalization of deferred policy acquisition costs	(3,256)	(4,181)
Current and deferred income taxes - net	(1,793)	757
Other, net	(300)	(582)
Total adjustments	8,049	(4,090)
Net cash provided by (used in) operating activities	2,232	(789)
Sales or distribution of:
Available for sale securities	17,303	17,498
Other securities	2,256	5,230
Other invested assets	3,159	3,345
Divested businesses, net	2,119	2
Maturities of fixed maturity securities available for sale	19,441	18,165
Principal payments received on and sales of mortgage and other loans receivable	5,177	4,233
Purchases of:
Available for sale securities	(43,228)	(41,612)
Other securities	(562)	(723)
Other invested assets	(2,197)	(2,662)
Mortgage and other loans receivable	(4,072)	(6,512)
Net change in short-term investments	(7,368)	(4,586)
Other, net	2,751	2,829
Net cash used in investing activities	(5,221)	(4,793)
Proceeds from (payments for)
Policyholder contract deposits	14,014	17,297
Policyholder contract withdrawals	(12,184)	(12,474)
Issuance of long-term debt and debt of consolidated investment entities	5,625	2,564
Repayments of long-term debt and debt of consolidated investment entities	(3,249)	(2,421)
Issuance of preferred stock, net of issuance costs	0	485
Purchase of common stock	(500)	0
Dividends paid on preferred stock	(22)	(15)
Dividends paid on common stock	(827)	(835)
Other, net	425	1,354
Net cash provided by financing activities	3,282	5,955
Effect of exchange rate changes on cash and restricted cash	27	39
Net increase in cash and restricted cash	320	412
Cash and restricted cash at beginning of year	3,287	3,358
Cash and restricted cash at end of year	$ 3,607	$ 3,770

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

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Dec. 31, 2019

Cash

$ 3,191

$ 3,361

$ 2,856

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

3,607

3,770

3,287

Cash paid during the period for:

Interest

829

1,012

Taxes

875

193

Cash Flow, Noncash Investing Activities Disclosure

Fixed maturity securities available for sale received in connection with pension risk transfer transactions

1,008

Fixed maturity securities received in connection with reinsurance transactions

336

Cash Flow, Noncash Financing Activities Disclosure

Interest credited to policyholder contract deposits included in financing activities

2,425

2,507

Other assets

Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:

Restricted cash

202

^[1]

345

^[1]

243

Short-term investments

Cash Equivalents, Restricted Cash and Restricted Cash Equivalents:

Restricted cash

$ 214

^[1]

$ 64

^[1]

$ 188

[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, 2020

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, 2019 (the 2019 Annual Report). The condensed consolidated financial information as of December 31, 2019 included herein has been derived from the audited Consolidated Financial Statements in the 2019 Annual Report.

Certain of our foreign subsidiaries included in the Condensed Consolidated Financial Statements report on the basis of a 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. Operating results for the nine months ended September 30, 2020, are not necessarily indicative of the results that may be expected for the year ended December 31, 2020, especially when considering the risks and uncertainties associated with COVID-19 and the impact it may have on our business, results of operations and financial condition.

We evaluated the need to recognize or disclose events that occurred subsequent to September 30, 2020 and prior to the issuance of these Condensed Consolidated Financial Statements.

Sales/disposals of Businesses

Fortitude Holdings

On June 2, 2020, we completed the sale of a majority of the interests in Fortitude Group Holdings, LLC (Fortitude Holdings) to Carlyle FRL, L.P. (Carlyle FRL), an investment fund advised by an affiliate of The Carlyle Group Inc. (Carlyle), and T&D United Capital Co., Ltd. (T&D), a subsidiary of T&D Holdings, Inc., under the terms of a membership interest purchase agreement entered into on November 25, 2019 by and among AIG, Fortitude Holdings, Carlyle FRL, Carlyle, T&D and T&D Holdings, Inc. (the Majority Interest Fortitude Sale). AIG established Fortitude Reinsurance Company Ltd. (Fortitude Re), a wholly owned subsidiary of Fortitude Holdings, in 2018 in a series of reinsurance transactions related to AIG’s Legacy Portfolio. As of September 30, 2020, approximately $30.6 billion of reserves from AIG’s Legacy Life and Retirement Run-Off Lines and approximately $4.1 billion of reserves from AIG’s Legacy General Insurance Run-Off Lines, related to business written by multiple wholly-owned AIG subsidiaries, had been ceded to Fortitude Re under these reinsurance transactions. As of closing of the Majority Interest Fortitude Sale, these reinsurance transactions are no longer considered affiliated transactions and Fortitude Re is the reinsurer of the majority of AIG’s Legacy Portfolio. As these reinsurance transactions are structured as modified coinsurance and loss portfolio transfers with funds withheld, following the closing of the Majority Interest Fortitude Sale, AIG continues to reflect the invested assets, which consist mostly of available for sale securities, supporting Fortitude Re’s obligations, in AIG’s financial statements.

AIG sold a 19.9 percent ownership interest in Fortitude Holdings to TC Group Cayman Investments Holdings, L.P. (TCG), an affiliate of Carlyle, in November 2018 (the 2018 Fortitude Sale). As a result of completion of the Majority Interest Fortitude Sale, Carlyle FRL purchased from AIG a 51.6 percent ownership interest in Fortitude Holdings and T&D purchased from AIG a 25 percent ownership interest in Fortitude Holdings; AIG retained a 3.5 percent ownership interest in Fortitude Holdings and one seat on its Board of Managers. The $2.2 billion of proceeds received by AIG at closing include (i) the $1.8 billion under the Majority Interest Fortitude Sale, which is subject to a post-closing purchase price adjustment pursuant to which AIG will pay Fortitude Re for certain adverse development in property casualty related reserves, based on an agreed methodology, that may occur on or prior to December 31, 2023, up to a maximum payment of $500 million; and (ii) a $383 million purchase price adjustment from Carlyle FRL and T&D, corresponding to their respective portions of a proposed $500 million non-pro rata distribution from Fortitude Holdings that was not received by AIG prior to the closing.

AIG recorded a total after-tax reduction to total AIG shareholders’ equity of $4.3 billion related to the sale of the majority interest in and deconsolidation of Fortitude Holdings in the second quarter of 2020. The impact to equity was primarily due to a $6.7 billion after-tax loss partially offset by a $2.4 billion increase in accumulated other comprehensive income (AOCI) due to the release of shadow adjustments primarily related to future policy benefits. The $6.7 billion after-tax loss was comprised of (i) a $2.7 billion loss related to the write-off of prepaid insurance assets and deferred policy acquisition costs (DAC) upon deconsolidation of Fortitude Holdings and (ii) $4.0 billion related to the loss on the sale primarily as a result of increases in Fortitude Holdings’ equity principally related to mark to market movements from the December 31, 2018 date as of which Fortitude Holdings’ equity was calculated for purposes of the purchase price determination, through the June 2, 2020 closing date.

In connection with the Majority Interest Fortitude Sale, AIG, Fortitude Holdings, and TCG agreed that, effective as of the closing, (i) AIG’s investment commitment targets under the 2018 Fortitude Sale (whereby AIG had agreed to invest certain amounts into various Carlyle strategies and to make certain minimum investment management fee payments by November 2021) were assumed by Fortitude Holdings and AIG was released therefrom, (ii) the purchase price adjustment that AIG had agreed to provide TCG in the 2018 Fortitude Sale (whereby AIG had agreed to reimburse TCG for adverse development in property casualty related reserves, based on an agreed methodology, that may occur on or prior to December 31, 2023, up to the value of TCG’s investment in Fortitude Holdings) has been terminated, and (iii) TCG remains obligated to pay AIG $115 million of deferred consideration upon settlement of the post-closing purchase price adjustment referred to above. This latter amount is composed of $95 million of deferred consideration contemplated as part of the 2018 Fortitude Sale, together with $19.9 million in respect of TCG’s 19.9 percent share of the unpaid portion of the $500 million non-pro rata dividend to be paid to AIG under the 2018 Fortitude Sale (TCG paid $79.6 million to AIG on May 26, 2020). In addition, the 2018 capital maintenance agreement between AIG and Fortitude Re and the letters of credit issued in support of Fortitude Re and subject to reimbursement by AIG in the event of a drawdown were terminated as of the closing of the Majority Interest Fortitude Sale. Upon closing of the Majority Interest Fortitude Sale, AIG entered into a transition services agreement with Fortitude Holdings for the provision of transition services for a period after closing, and letter of credit agreements with certain financial institutions, which issued letters of credit in support of certain General Insurance subsidiaries that have reinsurance agreements in place with Fortitude Re in the amount of $600 million. These letters of credit are subject to reimbursement by AIG in the event of a drawdown by these insurance subsidiaries.

Following closing, in the second quarter of 2020, AIG contributed $700 million of the proceeds of the Majority Interest Fortitude Sale to certain of its General Insurance subsidiaries and $135 million of the proceeds of the Majority Interest Fortitude Sale to certain of its Life and Retirement subsidiaries.

For further discussion on the sale of Fortitude Holdings see Note 7 to the Condensed Consolidated Financial Statements.

Blackboard

At the end of March 2020, Blackboard U.S. Holdings, Inc. (Blackboard), AIG’s technology-driven subsidiary, was placed into run-off. As a result of this decision, during the three months ended March 31, 2020 and the nine months ended September 30, 2020, AIG recognized a pre-tax loss of $210 million, primarily consisting of asset impairment charges.

Life and Retirement

On October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG. For further discussion see Note 16 to the 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);

 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;

 reinsurance assets;

 impairment charges, including impairments on other invested assets and goodwill;

 allowances for credit losses primarily on loans, available for sale fixed maturity securities, reinsurance assets and premiums and other receivables;

 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 Cuts and Jobs Act (the Tax Act).

These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. Summary of Significant Accounting Policies

Accounting Standards Adopted During 2020

Financial Instruments - Credit Losses

In June 2016, the FASB issued an accounting standard that changed how entities account for current expected credit losses (CECL) for most financial assets, premiums receivable, trade receivables, off-balance sheet exposures and reinsurance receivables (the Financial Instruments Credit Losses Standard). 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 (PCD) securities, is subject to the new guidance and is measured in a similar manner, except that losses are recognized as allowances rather than reductions in the amortized cost of the securities. The standard allows for reversals of credit impairments in the event that the credit of an issuer improves. The standard also requires additional disclosures.

We adopted the standard on its effective date of January 1, 2020 using a modified retrospective method, which requires a cumulative effect adjustment to retained earnings. As of January 1, 2020, the impact of the adoption of the standard was a reduction in opening retained earnings of $487 million (after-tax) primarily driven by commercial mortgage loans, and, to a lesser extent, reinsurance receivables and recoverables.

The following table provides a rollforward of our allowance, including credit losses, in connection with the adoption of the Financial Instruments Credit Losses Standard as well as cross references to the applicable notes herein for additional information:

Three Months Ended September 30, 2020		Balance,		Cumulative Effect		Purchased Credit		Incremental Increase		Write-offs and		Balance,
		Beginning		Adjustment as of		Deteriorated Initial		(Decrease) Recognized		Other Changes		End of
(in millions)		of Period		January 1, 2020		Allowance		in Income		in the Allowance^(h)		Period
Securities available for sale^(a)	$	198	$	-	$	-	$	81	$	(43)	$	236
Mortgage and other loan receivables^(b)		794		-		-		3		-		797
Reinsurance recoverables (inclusive of
deposit accounted assets)^(c)		364		-		-		-		6		370
Premiums and other receivables^(d)		212		-		-		7		(4)		215
Contractual deductible recoverables^(e)		14		-		-		-		-		14
Commercial mortgage loan commitments^(f)		58		-		-		8		-		66
Total	$	1,640	$	-	$	-	$	99	$	(41)	$	1,698

Nine Months Ended September 30, 2020
Securities available for sale^(a)	$	-	$	-	$	33	$	310	$	(107)	$	236
Mortgage and other loan receivables^(b)		438		318		-		53		(12)		797
Reinsurance recoverables (inclusive of
deposit accounted assets)^(c)		151		224		-		5		(10)		370
Premiums and other receivables^(d)		178		34		-		9		(6)		215
Contractual deductible recoverables^(e)		-		14		-		-		-		14
Commercial mortgage loan commitments^(f)		-		51		-		14		1		66
Total	$	767	$	641	$	33	$	391	$	(134)	$	1,698
Secondary impacts to certain long-duration
insurance contracts^(g)				(27)
Tax impact				(127)
Total cumulative effect adjustment			$	487

(a)The allowance for credit losses is reported in Bonds available for sale in the Condensed Consolidated Balance Sheets. Changes in the allowance for credit losses are reported in Net realized capital gains (losses) in the Condensed Consolidated Statements of Income. Refer to Note 5 for additional information.

(b) The allowance for credit losses is reported in Mortgage and other loans receivable in the Condensed Consolidated Balance Sheets. Changes in the allowance for credit losses are reported in Net realized capital gains (losses) in the Condensed Consolidated Statements of Income. Refer to Note 6 for additional information.

(c) The allowance for credit losses is reported in Reinsurance assets – other and Reinsurance assets – Fortitude Re for reinsurance contracts that contain sufficient insurance risk, and reported in Other assets for insurance and reinsurance contracts that do not contain sufficient insurance risk in the Condensed Consolidated Balance Sheets. Changes in the allowance for credit losses are reported in Policyholder benefits and losses incurred for reinsurance contracts that do contain sufficient insurance risk and premiums for contracts that do not contain sufficient insurance risk in the Condensed Consolidated Statements of Income. Refer to Note 7 for additional information.

(d) The allowance for credit losses is reported in Premiums and other receivables in the Condensed Consolidated Balance Sheets. Changes in the allowance for credit losses are reported in General operating and other expenses in the Condensed Consolidated Statements of Income. Refer to Note 2 for additional information.

(e) The allowance for credit losses is reported in Liability for unpaid losses and loss adjustment expenses in the Condensed Consolidated Balance Sheets. Changes in the allowance for credit losses are reported in Policyholder benefits and losses incurred in the Condensed Consolidated Statements of Income. Refer to Note 10 for additional information.

(f) The allowance for credit losses is reported in Other liabilities in the Condensed Consolidated Balance Sheets. Changes in the allowance for credit losses are reported in Net realized capital gains (losses) in the Condensed Consolidated Statements of Income. Refer to Note 6 for additional information.

(g) This reflects adjustments to the amortization of DAC, unearned revenue reserve and sales inducement assets as well as impacts on the future policy benefits for certain universal life and variable annuity contracts.

(h) A write-off does not generally result in an incremental loss to AIG. Prior to a write-off occurring, the allowance for the credit loss is increased or decreased to reflect AIG’s expectation of the credit loss to be incurred. Accordingly, when a write-off occurs, the allowance is reversed for the same amount, resulting in no incremental loss to AIG.

The following presents the impact of the adoption of the standard on premiums and other receivables.

Premiums and other receivables — Credit Losses

Premiums and other receivables, net of allowance for credit losses include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the Direct Investment book and Global Capital Markets (GCM) and other receivables. Trade receivables for GCM include cash collateral posted to derivative counterparties that is not eligible to be netted against derivative liabilities. The allowance for credit losses and disputes for premiums and other receivables was $215 million at September 30, 2020. Our allowance for credit losses for premium receivables considers a combination of internal and external information relating to past events, current conditions and reasonable and supportable forecasts. Our allowance contemplates our contractual provisions. Upon default or delinquency of the policyholder we may be able to cease coverage for the remaining period. In certain jurisdictions we are unable to cancel coverage even in the event of delinquency or default by the policyholder. We consider premium and other receivable balances to be past due if the payment is not received after 90 days from the contractual obligation due date and record an allowance for disputes when there is reasonable uncertainty of the collectability of a disputed amount during the reporting period.

For further information regarding the impacts of the adoption of this standard see Notes 4, 5, 6, 10 and 12 to the Condensed Consolidated Financial Statements.

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.

We adopted the standard on its effective date of January 1, 2020. The adoption of the standard did not have a material impact on our financial position, results of operations or cash flows.

Cloud Computing Arrangements

In August 2018, the FASB issued an accounting standard that aligns the requirements for capitalizing implementation costs incurred in a cloud computing (or hosting) arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Capitalized implementation costs must be amortized over the term of the hosting arrangement. The accounting for the service element is not affected by the amendments in this update.

We adopted the standard prospectively on its effective date of January 1, 2020. The adoption of the standard did not have a material impact on our consolidated financial position, results of operations or cash flows.

Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates

In March 2020, the Securities and Exchange Commission (SEC) adopted amendments to simplify and streamline the disclosure requirements for guarantors and issuers of guaranteed securities registered or being registered, and issuers’ affiliates whose securities collateralize securities registered or being registered. Currently, the SEC permits the omission of separate financial statements of subsidiary issuers and guarantors when certain conditions are met and the parent company provides summarized financial information of the subsidiary issuers and guarantors. The amendments, among other things, allow companies to cease providing summarized financial information if the subsidiary issuer’s or guarantor’s reporting obligation has been suspended.

The amendments are effective January 4, 2021, with early adoption permitted. Effective March 31, 2020, AIG early adopted the amendment and ceased providing the summarized information for the subsidiary issuers and guarantors because the subsidiaries issuer’s reporting obligations have been suspended.

Future Application of Accounting Standards

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 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 September 2020, the FASB affirmed its proposal to defer the effective date of the standard to January 1, 2023, which the FASB initially proposed in an exposure draft in July 2020. We are currently evaluating the change in the effective date on our implementation efforts. 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.

Income Tax

On December 18, 2019, the FASB issued an accounting standard that simplifies the accounting for income taxes by eliminating certain exceptions to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The amendments also simplified other areas including the accounting for franchise taxes and enacted tax laws or rates, and clarified the accounting for transactions that result in the step-up in the tax basis of goodwill. The standard is effective on January 1, 2021, with early adoption permitted. We do not expect the impact of the standard to be material to our consolidated financial condition, results of operations and cash flows.

Reference Rate Reform

On March 12, 2020, the FASB issued an accounting standard that provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The standard allows us to account for certain contract modifications that result from the discontinuation of the London Inter-Bank Offered Rate (LIBOR) or another reference rate as a continuation of the existing contract without additional analysis.

This standard may be elected and applied prospectively over time from March 12, 2020 through December 31, 2022 as reference rate reform activities occur. 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.

Clarification of Accounting for Certain Equity Method Investments

On January 16, 2020, the FASB issued an accounting standard to clarify how a previously issued standard regarding a company’s ability to measure the fair value of certain equity securities without a readily determinable fair value should interact with equity method investments standards. The previously issued standard provides that such equity securities could be measured at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs (measurement alternative). The new standard clarifies that a company should consider observable transactions that require the company to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with the equity method immediately before applying or upon discontinuing the equity method.

The standard further clarifies that, when determining the accounting for certain forward contracts and purchased options a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option.

The standard is effective for interim and annual reporting periods beginning after December 15, 2020. We are evaluating the impact adoption of this standard will have on our consolidated financial condition, results of operations, cash flows and required disclosures.

GOODWILL

We performed our annual goodwill impairment tests of all reporting units in the third quarter of 2020 using a combination of both qualitative and quantitative assessments and concluded that our goodwill was not impaired. Our goodwill balance was $4.0 billion at September 30, 2020. For further information on goodwill see Note 13 to the Consolidated Financial Statements in the 2019 Annual Report.

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2020

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. (Validus), Western World Insurance Group, Inc. and Glatfelter Insurance Group (Glatfelter).

 International — consists of regional insurance businesses in Japan, the UK, Europe, Asia Pacific, Latin America and Caribbean, Middle East and Africa, and China. This also includes the results of Talbot Holdings, Ltd.

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).

On October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG. For further discussion see Note 16 to the Condensed Consolidated Financial Statements.

Other Operations

Other Operations consists primarily of:

 Income from assets held by AIG Parent and other corporate subsidiaries.

 General operating expenses not attributable to AIG reporting segments.

 Certain compensation expenses attributable to Other Operations and reporting segments.

 Amortization of value of distribution network acquired related to the Validus and Glatfelter acquisitions.

 Interest expense attributable to AIG long-term debt as well as debt associated with consolidated investment entities.

 Results also include Blackboard and its subsidiaries which are focused on delivering commercial insurance solutions using digital technology, data analytics and automation. At the end of March 2020, Blackboard was placed into run-off.

Legacy Portfolio

Legacy Portfolio represents exited or discontinued product lines, policy forms or distribution channels. Effective February 2018, the Bermuda domiciled composite reinsurer, Fortitude Re, is included in our Legacy Portfolio. The sale of Fortitude Re was completed on June 2, 2020, and Fortitude Re is only included in the Legacy Portfolio through such date. As of closing of the Majority Interest Fortitude Sale, these reinsurance transactions between AIG and Fortitude Re are no longer considered affiliated transactions and Fortitude Re is the reinsurer of the majority of AIG’s Legacy Portfolio.

 Legacy Life and Retirement Run-Off Lines — Currently, the remaining legacy business not reinsured to Fortitude Holdings includes reserves that consist of certain structured settlements, pension risk transfer annuities, whole life and other small blocks of life and accident & health product lines.

 Legacy General Insurance Run-Off Lines — Currently, the remaining legacy business not reinsured to Fortitude Holdings includes reserves that 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.

 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. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and measures that we believe to be common to the industry. 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,	2020				2019
				Adjusted				Adjusted
		Total		Pre-tax		Total		Pre-tax
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
General Insurance
North America	$	3,417	$	399	$	3,878	$	435
International		3,275		17		3,537		72
Total General Insurance		6,692		416		7,415		507
Life and Retirement
Individual Retirement		1,480		533		1,416		387
Group Retirement		758		338		726		203
Life Insurance		1,076		5		1,037		(7)
Institutional Markets		556		99		654		63
Total Life and Retirement		3,870		975		3,833		646
Other Operations		128		(426)		139		(454)
Legacy Portfolio		214		89		751		93
AIG Consolidation and elimination		(148)		(136)		(81)		(46)
Total AIG Consolidated adjusted revenues and adjusted pre-tax income		10,756		918		12,057		746
Reconciling items from adjusted pre-tax income to pre-tax income:
Changes in fair value of securities used to hedge guaranteed
living benefits		14		15		25		12
Changes in benefit reserves and DAC, VOBA and SIA related to net
realized capital gains (losses)		-		78		-		(65)
Changes in the fair value of equity securities		119		119		(51)		(51)
Other income (expense) - net		23		-		16		-
Gain on extinguishment of debt		-		2		-		-
Net investment income on Fortitude Re funds withheld assets^(a)		458		458		-		-
Net realized capital gains (losses) on Fortitude Re funds withheld assets^(a)		32		32		-		-
Net realized capital gains (losses) on Fortitude Re funds withheld embedded
derivative^(a)		(656)		(656)		-		-
Net realized capital gains (losses)^(b)		(525)		(514)		867		881
Loss from divested businesses		-		(24)		-		(9)
Non-operating litigation reserves and settlements		-		(1)		-		(5)
Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		30		-		59
Net loss reserve discount benefit (charge)		-		31		-		(235)
Integration and transaction costs associated with acquired businesses		-		(1)		-		(3)
Restructuring and other costs		-		(100)		-		(67)
Non-recurring costs related to regulatory or accounting changes		-		(19)		-		(3)
Revenues and Pre-tax income	$	10,221	$	368	$	12,914	$	1,260

Nine Months Ended September 30,	2020				2019
				Adjusted				Adjusted
		Total		Pre-Tax		Total		Pre-Tax
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
General Insurance
North America	$	9,908	$	813	$	12,001	$	2,087
International		9,706		279		10,743		668
Total General Insurance		19,614		1,092		22,744		2,755
Life and Retirement
Individual Retirement		4,183		1,389		4,233		1,483
Group Retirement		2,164		695		2,225		728
Life Insurance		3,280		51		3,264		195
Institutional Markets		2,964		295		2,143		213
Total Life and Retirement		12,591		2,430		11,865		2,619
Other Operations		305		(1,436)		422		(1,256)
Legacy Portfolio		1,197		(22)		2,197		324
AIG Consolidation and elimination		(262)		(171)		(257)		(172)
Total AIG Consolidated adjusted revenues and adjusted pre-tax income		33,445		1,893		36,971		4,270
Reconciling items from adjusted pre-tax income to pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed
living benefits		42		24		214		183
Changes in benefit reserves and DAC, VOBA and SIA related to net
realized capital gains (losses)		-		(205)		-		(39)
Changes in the fair value of equity securities		(16)		(16)		6		6
Other income (expense) - net		46		-		27		-
Loss on extinguishment of debt		-		(15)		-		(13)
Net investment income on Fortitude Re funds withheld assets^(a)		574		574		-		-
Net realized capital gains (losses) on Fortitude Re funds withheld assets^(a)		128		128		-		-
Net realized capital gains (losses) on Fortitude Re funds withheld embedded
derivative^(a)		(1,493)		(1,493)		-		-
Net realized capital gains^(b)		1,328		1,369		713		758
loss from divested businesses		-		(8,652)		-		(4)
Non-operating litigation reserves and settlements		6		5		-		(6)
Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		71		-		211
Net loss reserve discount charge		-		(41)		-		(920)
Integration and transaction costs associated with acquired businesses		-		(7)		-		(16)
Restructuring and other costs		-		(324)		-		(174)
Non-recurring costs related to regulatory or accounting changes		-		(46)		-		(5)
Revenues and Pre-tax income (loss)	$	34,060	$	(6,735)	$	37,931	$	4,251

(a) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.

(b) 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 and net realized gains and losses on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets).

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

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FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2020

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

4. 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, 2020							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	$	33	$	5,102	$	-	$	-	$	-	$	5,135
Obligations of states, municipalities and political subdivisions		-		13,990		2,183		-		-		16,173
Non-U.S. governments		41		15,126		7		-		-		15,174
Corporate debt		-		159,991		2,115		-		-		162,106
RMBS		-		20,759		12,655		-		-		33,414
CMBS		-		14,796		981		-		-		15,777
CDO/ABS		-		8,833		9,353		-		-		18,186
Total bonds available for sale		74		238,597		27,294		-		-		265,965
Other bond securities:
U.S. government and government sponsored entities		-		1,870		-		-		-		1,870
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		12		-		-		-		12
RMBS		-		320		168		-		-		488
CMBS		-		274		48		-		-		322
CDO/ABS		-		168		2,555		-		-		2,723
Total other bond securities		-		2,644		2,771		-		-		5,415
Equity securities		827		18		26		-		-		871
Other invested assets^(b)		-		94		1,583		-		-		1,677
Derivative assets:
Interest rate contracts		3		5,051		-		-		-		5,054
Foreign exchange contracts		-		1,585		3		-		-		1,588
Equity contracts		6		841		110		-		-		957
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		13		-		-		13
Counterparty netting and cash collateral		-		-		-		(3,695)		(3,129)		(6,824)
Total derivative assets		9		7,477		127		(3,695)		(3,129)		789
Short-term investments		3,195		4,019		-		-		-		7,214
Other assets		-		-		112		-		-		112
Separate account assets		88,023		4,013		-		-		-		92,036
Total	$	92,128	$	256,862	$	31,913	$	(3,695)	$	(3,129)	$	374,079
Liabilities:
Policyholder contract deposits	$	-	$	-	$	9,322	$	-	$	-	$	9,322
Derivative liabilities:
Interest rate contracts		-		4,559		-		-		-		4,559
Foreign exchange contracts		-		619		-		-		-		619
Equity contracts		12		84		5		-		-		101
Credit contracts		-		24		45		-		-		69
Other contracts		-		-		7		-		-		7
Counterparty netting and cash collateral		-		-		-		(3,695)		(1,060)		(4,755)
Total derivative liabilities		12		5,286		57		(3,695)		(1,060)		600
Fortitude Re funds withheld payable		-		-		5,136		-		-		5,136
Other liabilities		-		-		-		-		-		-
Long-term debt		-		2,169		-		-		-		2,169
Total	$	12	$	7,455	$	14,515	$	(3,695)	$	(1,060)	$	17,227

December 31, 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	$	135	$	5,245	$	-	$	-	$	-	$	5,380
Obligations of states, municipalities and political subdivisions		-		13,197		2,121		-		-		15,318
Non-U.S. governments		60		14,809		-		-		-		14,869
Corporate debt		-		147,973		1,663		-		-		149,636
RMBS		-		19,397		13,408		-		-		32,805
CMBS		-		13,377		1,053		-		-		14,430
CDO/ABS		-		10,962		7,686		-		-		18,648
Total bonds available for sale		195		224,960		25,931		-		-		251,086
Other bond securities:
U.S. government and government sponsored entities		-		2,121		-		-		-		2,121
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		18		-		-		-		18
RMBS		-		346		143		-		-		489
CMBS		-		272		50		-		-		322
CDO/ABS		-		187		3,545		-		-		3,732
Total other bond securities		-		2,944		3,738		-		-		6,682
Equity securities		756		77		8		-		-		841
Other invested assets^(b)		-		86		1,192		-		-		1,278
Derivative assets:
Interest rate contracts		1		3,199		-		-		-		3,200
Foreign exchange contracts		-		1,034		6		-		-		1,040
Equity contracts		5		593		171		-		-		769
Credit contracts		-		-		3		-		-		3
Other contracts		-		-		14		-		-		14
Counterparty netting and cash collateral		-		-		-		(2,427)		(1,806)		(4,233)
Total derivative assets		6		4,826		194		(2,427)		(1,806)		793
Short-term investments		2,299		3,044		-		-		-		5,343
Other assets		57		2,212		89		-		-		2,358
Separate account assets		89,069		4,203		-		-		-		93,272
Total	$	92,382	$	242,352	$	31,152	$	(2,427)	$	(1,806)	$	361,653
Liabilities:
Policyholder contract deposits	$	-	$	-	$	6,910	$	-	$	-	$	6,910
Derivative liabilities:
Interest rate contracts		4		2,745		-		-		-		2,749
Foreign exchange contracts		-		1,025		-		-		-		1,025
Equity contracts		8		111		20		-		-		139
Credit contracts		-		24		65		-		-		89
Other contracts		-		-		7		-		-		7
Counterparty netting and cash collateral		-		-		-		(2,427)		(527)		(2,954)
Total derivative liabilities		12		3,905		92		(2,427)		(527)		1,055
Other liabilities		-		45		-		-		-		45
Long-term debt		-		2,062		-		-		-		2,062
Total	$	12	$	6,012	$	7,002	$	(2,427)	$	(527)	$	10,072

(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 $5.5 billion as of September 30, 2020 and December 31, 2019, respectively.

Changes in Level 3 Recurring Fair Value Measurements

The following tables present changes during the three- and nine-month periods ended September 30, 2020 and 2019 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, 2020 and 2019:

				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				Gains				Issuances										(Losses) Included		Income (Loss) for
		Fair Value	(Losses)			Other		and		Gross		Gross			Fair Value			in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses		of Period			at End of Period		at End of Period
Three Months Ended September 30, 2020
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,279	$	3	$	(4)	$	(30)	$	-	$	(65)	$	-	$	2,183	$	-	$	-
Non-U.S. governments		5		-		1		-		1		-		-		7		-		-
Corporate debt		1,900		(33)		52		(25)		452		(231)		-		2,115		-		38
RMBS		12,678		192		301		(412)		3		(107)		-		12,655		-		335
CMBS		1,149		3		36		(11)		-		(196)		-		981		-		27
CDO/ABS		9,461		5		180		(174)		125		(244)		-		9,353		-		172
Total bonds available for sale^(a)		27,472		170		566		(652)		581		(843)		-		27,294		-		572
Other bond securities:
RMBS		168		16		-		(16)		-		-		-		168		4		-
CMBS		47		1		-		-		-		-		-		48		1		-
CDO/ABS		2,531		124		-		(100)		-		-		-		2,555		34		-
Total other bond securities		2,746		141		-		(116)		-		-		-		2,771		39		-
Equity securities		43		-		2		1		7		(27)		-		26		1		-
Other invested assets		1,486		74		(2)		25		-		-		-		1,583		-		-
Other assets		111		-		-		2		-		-		(1)		112		-		-
Total	$	31,858	$	385	$	566	$	(740)	$	588	$	(870)	$	(1)	$	31,786	$	40	$	572
				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				(Gains)				Issuances										(Losses) Included		Income (Loss) for
		Fair Value	Losses			Other		and		Gross		Gross			Fair Value			in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses		of Period			at End of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	9,233	$	19	$	-	$	70	$	-	$	-	$	-	$	9,322	$	273	$	-
Derivative liabilities, net:
Interest rate contracts		-		-		-		-		-		-		-		-		-		-
Foreign exchange contracts		(1)		(2)		-		-		-		-		-		(3)		2		-
Equity contracts		(53)		9		-		(65)		(1)		5		-		(105)		-		-
Credit contracts		45		1		-		(2)		-		-		-		44		(7)		-
Other contracts		(3)		(19)		-		16		-		-		-		(6)		18		-
Total derivative liabilities, net^(b)		(12)		(11)		-		(51)		(1)		5		-		(70)		13		-
Fortitude Re funds withheld
payable		4,510		656		-		(30)		-		-		-		5,136		(256)		-
Total	$	13,731	$	664	$	-	$	(11)	$	(1)	$	5	$	-	$	14,388	$	30	$	-

				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				Gains				Issuances										(Losses) Included		Income (Loss) for
		Fair Value		(Losses)		Other		and		Gross		Gross			Fair Value			in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses		of Period			at End of Period		at End of Period
Nine Months Ended September 30, 2020
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,121	$	8	$	195	$	127	$	27	$	(295)	$	-	$	2,183	$	-	$	193
Non-U.S. governments		-		-		1		5		7		(6)		-		7		-		-
Corporate debt		1,663		(101)		43		95		1,074		(659)		-		2,115		-		59
RMBS		13,408		532		(375)		(806)		29		(133)		-		12,655		-		(213)
CMBS		1,053		14		70		17		23		(196)		-		981		-		66
CDO/ABS		7,686		25		55		(19)		2,062		(456)		-		9,353		-		38
Total bonds available for sale^(a)		25,931		478		(11)		(581)		3,222		(1,745)		-		27,294		-		143
Other bond securities:
RMBS		143		16		-		9		-		-		-		168		3		-
CMBS		50		-		-		(2)		-		-		-		48		(1)		-
CDO/ABS		3,545		225		-		(1,215)		-		-		-		2,555		25		-
Total other bond securities		3,738		241		-		(1,208)		-		-		-		2,771		27		-
Equity securities		8		(1)		3		11		33		(28)		-		26		1		-
Other invested assets		1,192		11		(2)		232		150		-		-		1,583		(13)		-
Other assets		89		-		-		61		-		-		(38)		112		-		-
Total	$	30,958	$	729	$	(10)	$	(1,485)	$	3,405	$	(1,773)	$	(38)	$	31,786	$	15	$	143
				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				(Gains)				Issuances										(Losses) Included		Income (Loss) for
		Fair Value		Losses		Other		and		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses			of Period		at End of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	6,910	$	2,250	$	-	$	162	$	-	$	-	$	-	$	9,322	$	(1,436)	$	-
Derivative liabilities, net:
Interest rate contracts		-		(1)		-		1		-		-		-		-		1		-
Foreign exchange contracts		(6)		2		-		1		-		-		-		(3)		2		-
Equity contracts		(151)		19		-		23		(1)		5		-		(105)		(62)		-
Credit contracts		62		(59)		-		41		-		-		-		44		8		-
Other contracts		(7)		(46)		-		47		-		-		-		(6)		45		-
Total derivative liabilities, net^(b)		(102)		(85)		-		113		(1)		5		-		(70)		(6)		-
Fortitude Re funds withheld
payable		-		1,493		-		(30)		-		-		3,673		5,136		(919)		-
Total	$	6,808	$	3,658	$	-	$	245	$	(1)	$	5	$	3,673	$	14,388	$	(2,361)	$	-

				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out	Businesses			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:
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)
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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		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^(b)		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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out	Businesses			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:
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
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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		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^(b)		153		(113)		-		(47)		-		-		-		(7)		83
Total	$	4,269	$	2,287	$	-	$	603	$	-	$	-	$	-	$	7,159	$	(1,961)

(a) As a result of the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020, credit losses are included in net realized and unrealized (gains) losses included in income.

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

Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities shown above are reported in the 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, 2020
Assets:
Bonds available for sale^*	$	177	$	(7)	$	-	$	170
Other bond securities		143		(2)		-		141
Equity securities		-		-		-		-
Other invested assets		74		-		-		74
Nine Months Ended September 30, 2020
Assets:
Bonds available for sale^*	$	557	$	(79)	$	-	$	478
Other bond securities		(25)		266		-		241
Equity securities		-		(1)		-		(1)
Other invested assets		11		-		-		11
Three Months Ended September 30, 2019
Assets:
Bonds available for sale	$	164	$	(24)	$	-	$	140
Other bond securities		110		15		-		125
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
Other invested assets		25		(1)		-		24

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
Three Months Ended September 30, 2020
Liabilities:
Policyholder contract deposits	$	-	$	19	$	-	$	19
Derivative liabilities, net		-		5		(16)		(11)
Fortitude Re funds withheld payable		-		656		-		656
Nine Months Ended September 30, 2020
Liabilities:
Policyholder contract deposits	$	-	$	2,250	$	-	$	2,250
Derivative liabilities, net		-		(41)		(44)		(85)
Fortitude Re funds withheld payable		-		1,493		-		1,493
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)

*As a result of the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020, credit losses are included in net realized capital gains (losses).

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, 2020 and 2019 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, 2020
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	34	$	(18)	$	(46)	$	(30)
Non-U.S. governments		-		-		-		-
Corporate debt		23		(2)		(46)		(25)
RMBS		182		-		(594)		(412)
CMBS		2		(10)		(3)		(11)
CDO/ABS		234		(78)		(330)		(174)
Total bonds available for sale		475		(108)		(1,019)		(652)
Other bond securities:
RMBS		-		-		(16)		(16)
CMBS		-		-		-		-
CDO/ABS		-		-		(100)		(100)
Total other bond securities		-		-		(116)		(116)
Equity securities		1		-		-		1
Other invested assets		25		-		-		25
Other assets		-		-		2		2
Total assets	$	501	$	(108)	$	(1,133)	$	(740)
Liabilities:
Policyholder contract deposits	$	-	$	170	$	(100)	$	70
Derivative liabilities, net		(19)		-		(32)		(51)
Fortitude Re funds withheld payable		-		-		(30)		(30)
Other liabilities		-		-		-		-
Total liabilities	$	(19)	$	170	$	(162)	$	(11)
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)
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

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements^(a)		Settlements, Net^(a)
Nine Months Ended September 30, 2020
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	201	$	(20)	$	(54)	$	127
Non-U.S. governments		5		-		-		5
Corporate debt		256		(7)		(154)		95
RMBS		883		-		(1,689)		(806)
CMBS		56		(17)		(22)		17
CDO/ABS		715		(103)		(631)		(19)
Total bonds available for sale		2,116		(147)		(2,550)		(581)
Other bond securities:
RMBS		37		-		(28)		9
CMBS		-		-		(2)		(2)
CDO/ABS		35		(579)		(671)		(1,215)
Total other bond securities		72		(579)		(701)		(1,208)
Equity securities		11		-		-		11
Other invested assets		277		-		(45)		232
Other assets		55		-		6		61
Total assets	$	2,531	$	(726)	$	(3,290)	$	(1,485)
Liabilities:
Policyholder contract deposits	$	-	$	514	$	(352)	$	162
Derivative liabilities, net		(43)		8		148		113
Fortitude Re funds withheld payable		-		-		(30)		(30)
Other liabilities		-		-		-		-
Total liabilities	$	(43)	$	522	$	(234)	$	245
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)
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

(a)There were no issuances during the three- and nine-month periods ended September 30, 2020 and 2019.

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, 2020 and 2019 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

The Net realized and unrealized gains (losses) included in income (loss) or Other comprehensive income (loss) as shown in the table above excludes $(79) million and $(207) million of net gains (losses) related to assets and liabilities transferred into Level 3 during the three- and nine-month periods ended September 30, 2020, respectively, and includes $18 million and $(13) 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, 2020, respectively.

The Net realized and unrealized gains (losses) included in income (loss) 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.

Transfers of Level 3 Assets

During the three- and nine-month periods ended September 30, 2020 and 2019, 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, 2020 and 2019, 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, 2020 and 2019.

Divested Businesses

The Level 3 liabilities for the three- and nine-month periods ended September 30, 2020 includes an embedded derivative associated with the funds withheld payable to Fortitude Re that was established as a result of the Majority Interest Fortitude Sale.

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)	2020		Technique	Unobservable Input^(b)	(Weighted Average)^(c)
Assets:

Obligations of states, municipalities
and political subdivisions	$	1,731	Discounted cash flow	Yield	2.87% - 3.39% (3.13%)

Corporate debt		1,672	Discounted cash flow	Yield	2.99% - 6.03% (4.51%)

RMBS^(a)		11,810	Discounted cash flow	Constant prepayment rate	3.81% - 12.15% (7.98%)
				Loss severity	28.62% - 77.94% (53.28%)
				Constant default rate	1.30% - 6.14% (3.72%)
				Yield	1.74% - 4.41% (3.08%)

CDO/ABS^(a)		8,704	Discounted cash flow	Yield	2.01% - 5.53% (3.77%)

CMBS		561	Discounted cash flow	Yield	0.78% - 5.68% (3.23%)
Liabilities^(d):

Embedded derivatives within
Policyholder contract deposits:

Variable annuity guaranteed minimum withdrawal benefits (GMWB)		3,832	Discounted cash flow	Equity volatility	7.15% - 56.25%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	50.00% - 143.00%
				Mortality multiplier^(e)	38.00% - 147.00%
				Utilization	90.00% - 100.00%
				Equity / interest rate correlation	20.00% - 40.00%
				NPA^(f)	0.14% - 2.07%

Index annuities including certain GMWB		4,881	Discounted cash flow	Lapse rate	0.38% - 50.00%
				Mortality multiplier^(e)	24.00% - 180.00%
				Utilization^(g)	80.00% - 100.00%
				Option budget	0.00% - 4.00%
				NPA^(f)	0.14% - 2.07%

Indexed life		577	Discounted cash flow	Base lapse rate	0.00% - 37.97%
				Mortality rate	0.00% - 100.00%
				NPA^(f)	0.14% - 2.07%

		Fair Value at
		December 31,	Valuation		Range
(in millions)		2019	Technique	Unobservable Input^(b)	(Weighted Average)^(c)
Assets:

Obligations of states, municipalities
and political subdivisions	$	1,633	Discounted cash flow	Yield	3.35% - 3.95% (3.65%)

Corporate debt		1,087	Discounted cash flow	Yield	3.48% - 6.22% (4.85%)

RMBS^(a)		11,746	Discounted cash flow	Constant prepayment rate	4.00% - 12.89% (8.44%)
				Loss severity	33.68% - 76.91% (55.29%)
				Constant default rate	1.68% - 6.17% (3.93%)
				Yield	2.52% - 4.53% (3.52%)

CDO/ABS^(a)		6,025	Discounted cash flow	Yield	2.92% - 4.91% (3.91%)

CMBS		476	Discounted cash flow	Yield	2.77% - 5.18% (3.97%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

GMWB		2,474	Discounted cash flow	Equity volatility	6.15% - 48.85%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	50.00% - 143.00%
				Mortality multiplier^(d)	38.00% - 147.00%
				Utilization	90.00% - 100.00%
				Equity / interest rate correlation	20.00% - 40.00%
				NPA^(e)	0.12% - 1.53%

Index annuities		3,895	Discounted cash flow	Lapse rate	0.31% - 50.00%
				Mortality multiplier^(d)	24.00% - 180.00%
				Option budget	1.00% - 4.00%
				NPA^(e)	0.12% - 1.53%

Indexed life		510	Discounted cash flow	Base lapse rate	0.00% - 37.97%
				Mortality rate	0.00% - 100.00%
				NPA^(e)	0.12% - 1.53%

(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) The weighted averaging for fixed maturity securities is based on the estimated fair value of the securities. Because the valuation methodology for embedded derivatives within Policyholder contract deposits uses a range of inputs that vary at the contract level over the cash flow projection period, management believes that presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(d) The Fortitude Re funds withheld payable has been excluded from the above table. As discussed in Note 7, the Fortitude Re funds withheld payable is created through modified coinsurance (modco) and funds withheld reinsurance arrangements where the investments supporting the reinsurance agreements are withheld by, and continue to reside on AIG’s balance sheet. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by AIG. Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the reinsurance agreements that are held on AIG’s balance sheet.

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

(f) The non-performance risk adjustment (NPA) applied as a spread over risk-free curve for discounting.

(g) The partial withdrawal utilization unobservable input range shown applies only to policies with guaranteed minimum withdrawal benefit riders that are accounted for as an embedded derivative. The total embedded derivative liability at September 30, 2020 is approximately $611 million. The remaining guaranteed minimum riders on the Index Annuities are valued under the accounting guidance for certain nontraditional long-duration contracts.

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.

Interrelationships between 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 significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. 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.

Fixed Maturity Securities

The significant unobservable input used in the fair value measurement of fixed maturity securities is yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. The yield may be affected by other factors including constant prepayment rates, loss severity, and constant default rates. In general, increases in the yield would decrease the fair value of investments, and conversely, decreases in the yield would increase the fair value of investments.

Embedded derivatives within Policyholder contract deposits

Embedded derivatives reported within Policyholder contract deposits include interest crediting rates based on market indices within index annuities, indexed life, and GICs as well as GMWB within variable annuity and certain index annuity products. 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.

Embedded derivatives within reinsurance contracts

The fair value of embedded derivatives associated with funds withheld reinsurance contracts is determined based upon a total return swap technique with reference to the fair value of the investments held by AIG related to AIG’s funds withheld payable. The fair value of the underlying assets is generally based on market observable inputs using industry standard valuation techniques. The valuation also requires certain significant inputs, which are generally not observable and accordingly, the valuation is considered Level 3 in the fair value hierarchy.

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, 2020				December 31, 2019
			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	$	1,382	$	1,697	$	1,189	$	1,543

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		429		450		400		290

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		143		166		111		155

Growth equity	Funds that make investments in established companies for the purpose of growing their businesses		523		54		422		57

Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		349		282		325		414

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		821		441		773		206
Total private equity funds			3,647		3,090		3,220		2,665
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		353		-		727		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		364		-		539		-

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		751		-		894		-

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		272		1		169		1
Total hedge funds			1,740		1		2,329		1
Total		$	5,387	$	3,091	$	5,549	$	2,666

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.

The hedge fund investments included above, which are carried at fair value, are generally redeemable subject to the redemption notices period. The majority of our hedge fund investments are redeemable monthly or quarterly.

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)		2020		2019		2020		2019
Assets:
Bonds	$	171	$	333	$	485	$	971
Alternative investments^(a)		407		92		242		473
Liabilities:
Long-term debt^(b)		18		(75)		(203)		(228)
Total gain	$	596	$	350	$	524	$	1,216

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

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

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 value and the aggregate contractual principal amount of long-term debt for which the fair value option was elected:

	September 30, 2020						December 31, 2019
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Liabilities:
Long-term debt^*	$	2,169	$	1,506	$	663	$	2,062	$	1,502	$	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		2020		2019		2020		2019
September 30, 2020
Other investments	$	-	$	-	$	268	$	268	$	12	$	7	$	60	$	65
Other assets		-		-		31		31		2		45		14		62
Total	$	-	$	-	$	299	$	299	$	14	$	52	$	74	$	127
December 31, 2019
Other investments	$	-	$	-	$	329	$	329
Other assets		-		-		1		1
Total	$	-	$	-	$	330	$	330

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, 2020
Assets:
Mortgage and other loans receivable	$	-	$	99	$	48,118	$	48,217	$	45,590
Other invested assets		-		798		6		804		804
Short-term investments		-		13,434		-		13,434		13,434
Cash		3,191		-		-		3,191		3,191
Other assets		188		14		-		202		202
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		224		143,873		144,097		129,170
Fortitude Re funds withheld payable		-		-		37,407		37,407		37,407
Other liabilities		-		3,823		-		3,823		3,823
Long-term debt and debt of consolidated investment entities		-		31,391		8,281		39,672		36,068
Separate account liabilities - investment contracts		-		87,564		-		87,564		87,564
December 31, 2019
Assets:
Mortgage and other loans receivable	$	-	$	101	$	48,904	$	49,005	$	46,984
Other invested assets		-		735		6		741		742
Short-term investments		-		7,887		-		7,887		7,887
Cash		2,856		-		-		2,856		2,856
Other assets		291		20		-		311		311
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		255		132,991		133,246		126,137
Other liabilities		15		3,048		-		3,063		3,063
Long-term debt and debt of consolidated investment entities		-		27,024		8,883		35,907		33,288
Separate account liabilities - investment contracts		-		88,770		-		88,770		88,770

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, 2020

INVESTMENTS

INVESTMENTS

5. Investments

Fixed Maturity Securities

Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or are measured at fair value at our election.

Unrealized gains and losses from available for sale investments in fixed maturity securities carried at fair value were reported as a separate component of AOCI, net of policy related amounts and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity securities measured at fair value at our election are reflected in Net investment income. Investments in fixed maturity securities are recorded on a trade-date basis.

Interest income is recognized using the effective yield method and reflects amortization of premium and accretion of discount. Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain structured securities, recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, the structured securities yields are based on expected cash flows which take into account both expected credit losses and prepayments.

An allowance for credit losses is not established upon initial recognition of the asset (unless the security is determined to be a PCD asset which is discussed in more detail below). Subsequently, differences between actual and expected cash flows and changes in expected cash flows are recognized as adjustments to the allowance for credit losses. Changes that cannot be reflected as adjustments to the allowance for credit losses are accounted for as prospective adjustments to yield.

Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

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

Securities Available for Sale

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

		Amortized		Allowance		Gross		Gross
		Cost or		for Credit		Unrealized		Unrealized		Fair
(in millions)		Cost		Losses^(a)		Gains		Losses		Value
September 30, 2020
Bonds available for sale:
U.S. government and government sponsored entities	$	4,319	$	-	$	840	$	(24)	$	5,135
Obligations of states, municipalities and political subdivisions		14,027		-		2,162		(16)		16,173
Non-U.S. governments		14,240		(5)		1,046		(107)		15,174
Corporate debt		146,595		(206)		16,897		(1,180)		162,106
Mortgage-backed, asset-backed and collateralized:
RMBS		30,427		(24)		3,088		(77)		33,414
CMBS		14,841		(1)		1,017		(80)		15,777
CDO/ABS		18,021		-		390		(225)		18,186
Total mortgage-backed, asset-backed and collateralized		63,289		(25)		4,495		(382)		67,377
Total bonds available for sale^(c)	$	242,470	$	(236)	$	25,440	$	(1,709)	$	265,965

										Other-Than-
		Amortized		Gross		Gross				Temporary
		Cost or		Unrealized		Unrealized		Fair		Impairments
(in millions)		Cost		Gains		Losses		Value		in AOCI^(b)
December 31, 2019
Bonds available for sale:
U.S. government and government sponsored entities	$	5,108	$	316	$	(44)	$	5,380	$	-
Obligations of states, municipalities and political subdivisions		13,960		1,390		(32)		15,318		-
Non-U.S. governments		14,042		884		(57)		14,869		(18)
Corporate debt		138,046		12,090		(500)		149,636		7
Mortgage-backed, asset-backed and collateralized:
RMBS		29,802		3,067		(64)		32,805		1,149
CMBS		13,879		576		(25)		14,430		34
CDO/ABS		18,393		348		(93)		18,648		14
Total mortgage-backed, asset-backed and collateralized		62,074		3,991		(182)		65,883		1,197
Total bonds available for sale^(c)	$	233,230	$	18,671	$	(815)	$	251,086	$	1,186

(a) Represents the allowance for credit losses that has been recognized. Changes in the allowance for credit losses are recorded through the statements of income and are not recognized in other comprehensive income.

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

(c) At September 30, 2020 and December 31, 2019, bonds available for sale held by us that were below investment grade or not rated totaled $27.5 billion and $27.8 billion, respectively.

Securities Available for Sale in a Loss Position for Which No Allowance for Credit Loss Has Been Recorded

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 for which no allowance for credit loss has been recorded:

	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, 2020
Bonds available for sale:
U.S. government and government sponsored entities	$	366	$	24	$	-	$	-	$	366	$	24
Obligations of states, municipalities and political
subdivisions		419		11		103		5		522		16
Non-U.S. governments		1,756		56		291		51		2,047		107
Corporate debt		20,936		872		1,096		110		22,032		982
RMBS		3,594		43		163		17		3,757		60
CMBS		2,068		71		185		9		2,253		80
CDO/ABS		5,939		144		3,153		81		9,092		225
Total bonds available for sale	$	35,078	$	1,221	$	4,991	$	273	$	40,069	$	1,494

Securities Available for Sale in a Loss Position

	Less than 12 Months				12 Months or More				Total
				Gross				Gross				Gross
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in millions)		Value		Losses		Value		Losses		Value		Losses
December 31, 2019
Bonds available for sale:
U.S. government and government sponsored entities	$	1,461	$	44	$	63	$	-	$	1,524	$	44
Obligations of states, municipalities and political
subdivisions		672		21		246		11		918		32
Non-U.S. governments		1,105		12		343		45		1,448		57
Corporate debt		11,868		319		2,405		181		14,273		500
RMBS		3,428		28		1,367		36		4,795		64
CMBS		1,877		16		367		9		2,244		25
CDO/ABS		3,920		53		2,571		40		6,491		93
Total bonds available for sale	$	24,331	$	493	$	7,362	$	322	$	31,693	$	815

At September 30, 2020, we held 7,335 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 940 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). At December 31, 2019, we held 5,695 individual fixed maturity securities that were in an unrealized loss position, of which 1,254 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, 2020 because it was determined that such losses were due to non-credit factors. Additionally, 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, liquidity position, expected defaults, industry and sector analysis, forecasts and 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
	Available for Sale
		Amortized Cost,
(in millions)		Net of Allowance		Fair Value
September 30, 2020
Due in one year or less	$	11,186	$	11,298
Due after one year through five years		42,513		43,869
Due after five years through ten years		41,049		44,725
Due after ten years		84,222		98,696
Mortgage-backed, asset-backed and collateralized		63,264		67,377
Total	$	242,234	$	265,965

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,
		2020				2019				2020				2019
		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	$	258	$	83	$	198	$	70	$	1,179	$	641	$	464	$	280

For the three- and nine-month periods ended September 30, 2020, the aggregate fair value of available for sale securities sold was $3.1 billion and $17.0 billion, respectively, which resulted in net realized capital gains (losses) of $175 million and $538 million, respectively. Included within the net realized capital gains (losses) are $147 million and $269 million of realized capital gains for the three- and nine-month periods ended September 30, 2020, respectively, which relate to the Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets) for the period after deconsolidation of Fortitude Re. These realized capital gains are included in Net realized capital gains (losses) on Fortitude Re funds withheld assets.

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.

Other Securities Measured at Fair Value

The following table presents the fair value of fixed maturity securities measured at fair value based on our election of the fair value option and equity securities measured at fair value:

		September 30, 2020				December 31, 2019
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	1,870	30	%	$	2,121	28	%
Corporate debt		12	-			18	-
Mortgage-backed, asset-backed and collateralized:
RMBS		488	8			489	7
CMBS		322	5			322	4
CDO/ABS and other collateralized		2,723	43			3,732	50
Total mortgage-backed, asset-backed and collateralized		3,533	56			4,543	61
Total fixed maturity securities		5,415	86			6,682	89
Equity securities		871	14			841	11
Total	$	6,286	100	%	$	7,523	100	%

Other Invested Assets

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

		September 30,		December 31,
(in millions)		2020		2019
Alternative investments^{(a) (b)}	$	8,391	$	8,845
Investment real estate^(c)		8,010		8,491
All other investments^(d)		1,514		1,456
Total	$	17,915	$	18,792

(a) At September 30, 2020, included hedge funds of $2.2 billion, private equity funds of $5.9 billion and affordable housing partnerships of $270 million. At December 31, 2019, included hedge funds of $3.3 billion, private equity funds of $5.2 billion and affordable housing partnerships of $331 million.

(b) At September 30, 2020, approximately 63 percent of our hedge fund portfolio is available for redemption in 2020. The remaining 37 percent will be available for redemption between 2021 and 2027.

(c) Net of accumulated depreciation of $780 million and $703 million at September 30, 2020 and December 31, 2019, respectively.

(d) Includes AIG’s 3.5 percent ownership interest in Fortitude Holdings which is recorded using the measurement alternative for equity securities and is carried at cost, which was $100 million as of September 30, 2020.

Net Investment Income

The following table presents the components of Net investment income:

Three Months Ended September 30,	2020						2019
	Excluding Fortitude		Fortitude Re
	Re Funds		Funds Withheld
(in millions)	Withheld Assets		Assets		Total
Available for sale fixed maturity securities, including short-term investments	$	2,209	$	373	$	2,582	$	2,698
Other fixed maturity securities^(a)		164		7		171		333
Equity securities		119		-		119		(51)
Interest on mortgage and other loans		443		46		489		495
Alternative investments^(b)		455		40		495		115
Real estate		22		-		22		96
Other investments^(c)		55		-		55		(143)
Total investment income		3,467		466		3,933		3,543
Investment expenses		125		8		133		135
Net investment income	$	3,342	$	458	$	3,800	$	3,408

Nine Months Ended September 30,	2020						2019
	Excluding Fortitude		Fortitude Re
	Re Funds		Funds Withheld
(in millions)	Withheld Assets		Assets^(d)		Total
Available for sale fixed maturity securities, including short-term investments	$	7,320	$	459	$	7,779	$	8,052
Other fixed maturity securities^(a)		475		10		485		941
Equity securities		(16)		-		(16)		6
Interest on mortgage and other loans		1,441		59		1,500		1,511
Alternative investments^(b)		309		54		363		879
Real estate		142		-		142		227
Other investments^(c)		(159)		-		(159)		(203)
Total investment income		9,512		582		10,094		11,413
Investment expenses		412		8		420		381
Net investment income	$	9,100	$	574	$	9,674	$	11,032

(a) Included in the three- and nine-month periods ended September 30, 2020 were income of $8 million and $206 million, respectively, related to fixed maturity securities measured at fair value that economically hedge liabilities described in (c) below. Included in the three- and nine-month periods ended September 30, 2019 were income of $146 million and $195 million, respectively, for fixed maturity securities measured at fair value through income that economically hedge liabilities as described in (c) below.

(b) Included 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.

(c) Included in the three- and nine-month periods ended September 30, 2020 were income of $21 million and a loss of $195 million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above. Included in the three- and nine-month periods ended September 30, 2019 were losses of $174 million and $220 million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above.

(d) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.

Net Realized Capital Gains and Losses

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

 Sales or full redemptions of available for sale fixed maturity securities, real estate and other alternative investments.

 Reductions to the amortized cost basis of available for sale fixed maturity securities that have been written down due to our intent to sell them or it being more likely than not that we will be required to sell them.

 Changes in the allowance for credit losses on bonds available for sale, mortgage and other loans receivable, and loans commitments.

 Changes in fair value of free standing and embedded derivatives, including changes in the non-performance adjustment, except for those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses).

 Foreign exchange gains and losses resulting from foreign currency transactions.

 Changes in fair value of the embedded derivative related to the Fortitude Re funds withheld assets.

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

Three Months Ended September 30,	2020						2019
	Excluding		Fortitude Re
	Fortitude Re			Funds
	Funds		Withheld
(in millions)	Withheld Assets			Assets		Total
Sales of fixed maturity securities	$	28	$	147	$	175	$	128
Other-than-temporary impairments		-		-		-		(24)
Change in intent^(a)		-		-		-		-
Change in allowance for credit losses on fixed maturity securities		(77)		(4)		(81)		-
Change in allowance for credit losses on loans		(13)		2		(11)		(25)
Foreign exchange transactions		250		7		257		(203)
Variable annuity embedded derivatives, net of related hedges		(148)		-		(148)		311
All other derivatives and hedge accounting		(626)		(120)		(746)		466
Other		88		-		88		276
Net realized capital gains (losses) – excluding Fortitude Re funds
withheld embedded derivative		(498)		32		(466)		929
Net realized capital gains (losses) on Fortitude Re funds withheld embedded
derivative		-		(656)		(656)		-
Net realized capital gains (losses)	$	(498)	$	(624)	$	(1,122)	$	929


Nine Months Ended September 30,	2020						2019
	Excluding		Fortitude Re
	Fortitude Re			Funds
	Funds		Withheld
(in millions)	Withheld Assets		Assets^(b)			Total
Sales of fixed maturity securities	$	269	$	269	$	538	$	184
Other-than-temporary impairments		-		-		-		(137)
Change in intent^(a)		(3)		-		(3)		-
Change in allowance for credit losses on fixed maturity securities		(299)		(11)		(310)		-
Change in allowance for credit losses on loans		(73)		6		(67)		(35)
Foreign exchange transactions		40		10		50		(242)
Variable annuity embedded derivatives, net of related hedges		1,034		-		1,034		10
All other derivatives and hedge accounting		365		(146)		219		601
Other		97		-		97		506
Net realized capital gains – excluding Fortitude Re funds
withheld embedded derivative		1,430		128		1,558		887
Net realized capital gains (losses) on Fortitude Re funds withheld embedded
derivative		-		(1,493)		(1,493)		-
Net realized capital gains (losses)	$	1,430	$	(1,365)	$	65	$	887

(a) For the three- and nine-month periods ended September 30, 2019, the change in intent was included in Other-than-temporary impairments.

(b) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.

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)		2020		2019		2020		2019
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	2,373	$	4,377	$	5,875	$	16,265
Other investments		1		-		1		(68)
Total increase (decrease) in unrealized appreciation (depreciation) of investments	$	2,374	$	4,377	$	5,876	$	16,197

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,	2020						2019
				Other						Other
			Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	119	$	464	$	583	$	(51)	$	105	$	54
Less: Net gains and losses recognized during the period on equity
securities sold during the period		(3)		(5)		(8)		18		13		31
Unrealized gains and losses recognized during the reporting
period on equity securities still held at the reporting date	$	122	$	469	$	591	$	(69)	$	92	$	23

Nine Months Ended September 30,	2020						2019
				Other						Other
			Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	(16)	$	264	$	248	$	6	$	615	$	621
Less: Net gains and losses recognized during the period on equity
securities sold during the period		14		10		24		30		169		199
Unrealized gains and losses recognized during the reporting
period on equity securities still held at the reporting date	$	(30)	$	254	$	224	$	(24)	$	446	$	422

Evaluating Investments for AN ALLOWANCE FOR CREDIT LOSSES/OTHER-than-TEMPORARY IMPAIRMENTS

Fixed Maturity Securities

Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized capital losses. No allowance is established in these situations and any previously recorded allowance is reversed. The new cost basis is not adjusted for subsequent increases in estimated fair value. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing.

For fixed maturity securities for which a decline in the fair value below the amortized cost is due to credit related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to realized capital losses. The allowance for credit losses is limited to the difference between amortized cost and fair value. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not associated with credit related factors is presented in unrealized appreciation (depreciation) of fixed maturity securities on which an allowance for credit losses were recognized (a separate component of accumulated other comprehensive income). Accrued interest is excluded from the measurement of the allowance for credit losses.

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

 Current delinquency rates;

 Expected default rates and the timing of such defaults;

 Loss severity and the timing of any recovery; and

 Expected prepayment speeds.

When estimating future cash flows for corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers:

 Expected default rates and the timing of such defaults;

 Loss severity and the timing of any recovery; and

 Scenarios specific to the issuer and the security, which may also include estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets.

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

Credit losses are reassessed each period. The allowance for credit losses and the corresponding charge to realized capital losses can be reversed if conditions change, however, the allowance for credit losses will never be reduced below zero. When we determine that all or a portion of a fixed maturity security is uncollectable, the uncollectable amortized cost amount is written off with a corresponding reduction to the allowance for credit losses. If we collect cash flows that were previously written off the recovery is recognized by decreasing realized capital losses.

Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

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

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

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

Credit Impairments

The following table presents a rollforward of the changes in allowance for credit losses on available for sale fixed maturity securities by major investment category:

	Three Months Ended						Nine Months Ended
	September 30, 2020						September 30, 2020
				Non-						Non-
(in millions)	Structured		Structured			Total	Structured		Structured			Total
Balance, beginning of period*	$	37	$	161	$	198	$	7	$	-	$	7
Additions:
Securities for which allowance for credit losses were not
previously recorded		1		30		31		36		294		330
Purchases of available for sale debt securities accounted for
as purchased credit deteriorated assets		-		-		-		26		-		26
Accretion of available for sale debt securities accounted for
as purchased credit deteriorated assets		-		-		-		1		-		1
Reductions:
Securities sold during the period		(2)		(5)		(7)		(3)		(10)		(13)
Intent to sell security or more likely than not will be required to
sell the security before recovery of its amortized cost basis		-		-		-		-		-		-
Additional net increases or decreases to the allowance for
credit losses on securities that had an allowance recorded
in a previous period, for which there was no intent to sell
before recovery amortized cost basis		(10)		67		57		(41)		34		(7)
Write-offs charged against the allowance		-		(43)		(43)		-		(108)		(108)
Recoveries of amounts previously written off		-		-		-		-		-		-
Other		-		-		-		-		-		-
Balance, end of period	$	26	$	210	$	236	$	26	$	210	$	236

* The beginning balance incorporates the Day 1 gross up on PCD assets held as of January 1, 2020.

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
(in millions)	September 30, 2019		September 30, 2019
Balance, beginning of period	$	34	$	-
Increases due to:
Credit impairments on new securities subject to impairment losses		10		105
Additional credit impairments on previously impaired securities		8		14
Reductions due to:
Credit impaired securities fully disposed for which there was no
prior intent or requirement to sell		(3)		(62)
Accretion on securities previously impaired due to credit^*		(7)		(15)
Balance, end of period	$	42	$	42

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 Deteriorated/Impaired Securities

Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

We purchase certain RMBS securities that have experienced more-than-insignificant deterioration in credit quality since origination. Subsequent to the adoption of the Financial Instruments Credit Losses Standard these are referred to as PCD assets. At the time of purchase an allowance is recognized for these PCD assets by adding it to the purchase price to arrive at the initial amortized cost. There is no credit loss expense recognized upon acquisition of a PCD asset. When determining the initial allowance for credit losses, management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs:

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

Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality.

During the three- and nine-month periods ended September 30, 2020, we purchased certain securities which had more than insignificant credit deterioration since their origination. These PCD securities are held in the portfolio of bonds available for sale in their natural classes at September 30, 2020.

The following table presents a reconciliation of the purchase price to the unpaid principal balance at the acquisition date of the PCD securities that were purchased with credit deterioration during the nine-month period ended September 30, 2020:

(in millions)	September 30, 2020
Unpaid principal balance	$	644
Allowance for expected credit losses at acquisition		(26)
Purchase (discount) premium		(149)
Purchase price	$	469

Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

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 as of December 31, 2019:

(in millions)	At Date of Acquisition
Contractually required payments (principal and interest)	$	35,139
Cash flows expected to be collected^*		28,720
Recorded investment in acquired securities		19,382

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

(in millions)	December 31, 2019
Outstanding principal balance	$	10,476
Amortized cost		6,970
Fair value		8,664

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

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

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, 2020		December 31, 2019
Fixed maturity securities available for sale	$	3,664	$	3,030

At September 30, 2020 and December 31, 2019, amounts borrowed under repurchase and securities lending agreements totaled $3.7 billion and $3.1 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, 2020
Bonds available for sale:
Non-U.S. governments	$	107	$	-	$	-	$	-	$	-	$	107
Corporate debt		147		98		-		-		-		245
Total	$	254	$	98	$	-	$	-	$	-	$	352

December 31, 2019
Bonds available for sale:
Non-U.S. governments	$	2	$	71	$	-	$	-	$	-	$	73
Corporate debt		22		55		82		-		-		159
Total	$	24	$	126	$	82	$	-	$	-	$	232

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, 2020
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	102	$	-	$	-	$	-	$	102
Corporate debt		-		1,428		1,379		-		-		2,807
RMBS		-		403		-		-		-		403
Total	$	-	$	1,933	$	1,379	$	-	$	-	$	3,312

December 31, 2019
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	-	$	386	$	-	$	-	$	386
Corporate debt		-		1,071		947		-		-		2,018
RMBS		-		-		-		394		-		394
Total	$	-	$	1,071	$	1,333	$	394	$	-	$	2,798

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, 2020		December 31, 2019
Securities collateral pledged to us	$	5,076	$	2,567
Amount sold or repledged by us		-		121

At September 30, 2020 and December 31, 2019, amounts loaned under reverse repurchase agreements totaled $5.1 billion and $2.6 billion, respectively.

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

Insurance – Statutory and Other Deposits

The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance contracts, was $10.8 billion and $8.7 billion at September 30, 2020 and December 31, 2019, 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 $191 million and $194 million of stock in FHLBs at September 30, 2020 and December 31, 2019, 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 $5.7 billion and $1.5 billion, respectively, at September 30, 2020 and $4.3 billion and $1.8 billion, respectively, at December 31, 2019.

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 $1.5 billion at both September 30, 2020 and December 31, 2019. 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 $476 million and $330 million, comprised of bonds available for sale and short term investments at September 30, 2020 and December 31, 2019, respectively.

Reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld. Following closing of the Majority Interest Fortitude Sale, a portion of the proceeds were contributed to AIG subsidiaries.

For further discussion on the sale of Fortitude Holdings see Note 1 and Note 7 to the Condensed Consolidated Financial Statements.

LENDING ACTIVITIES

9 Months Ended

Sep. 30, 2020

LENDING ACTIVITIES

LENDING ACTIVITIES

6. Lending Activities

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

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

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

Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is generally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is repaid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period. As of September 30, 2020, $8 million and $282 million of residential mortgage loans and commercial mortgage loans, respectively, were placed on nonaccrual status.

Accrued interest is presented separately and is included in Other assets on the Condensed Consolidated Balance Sheets. As of September 30, 2020, accrued interest receivable was $16 million and $125 million associated with residential mortgage loans and commercial mortgage loans, respectively.

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

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

	September 30,			December 31,
(in millions)		2020		2019
Commercial mortgages^(a)	$	36,359	$	36,170
Residential mortgages		5,202		6,683
Life insurance policy loans		2,072		2,065
Commercial loans, other loans and notes receivable		2,754		2,504
Total mortgage and other loans receivable		46,387		47,422
Allowance for credit losses^(b)		(797)		(438)
Mortgage and other loans receivable, net	$	45,590	$	46,984

(b)Does not include $66 million of expected credit loss liability at September 30, 2020 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

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

Credit Quality of Commercial Mortgages

The following table presents debt service coverage ratios^(a) for commercial mortgages by year of vintage:

September 30, 2020
(in millions)		2020		2019		2018		2017		2016		Prior		Total
>1.2X	$	1,577	$	5,452	$	5,506	$	4,008	$	5,002	$	11,150	$	32,695
1.00 - 1.20X		157		393		457		108		162		1,382		2,659
<1.00X		2		79		346		86		94		398		1,005
Total commercial mortgages	$	1,736	$	5,924	$	6,309	$	4,202	$	5,258	$	12,930	$	36,359

The following table presents loan-to-value ratios^(b) for commercial mortgages by year of vintage:

September 30, 2020
(in millions)		2020		2019		2018		2017		2016		Prior		Total
Less than 65%	$	1,571	$	3,594	$	4,796	$	3,050	$	3,251	$	10,136	$	26,398
65% to 75%		163		1,858		1,513		974		1,292		1,751		7,551
76% to 80%		-		88		-		124		98		500		810
Greater than 80%		2		384		-		54		617		543		1,600
Total commercial mortgages	$	1,736	$	5,924	$	6,309	$	4,202	$	5,258	$	12,930	$	36,359

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

December 31, 2019	Debt Service Coverage Ratios^(a)
(in millions)		>1.20X		1.00X - 1.20X		<1.00X		Total
Loan-to-Value Ratios^(b)
Less than 65%	$	23,013	$	2,440	$	245	$	25,698
65% to 75%		9,007		899		40		9,946
76% to 80%		200		6		-		206
Greater than 80%		184		2		134		320
Total commercial mortgages	$	32,404	$	3,347	$	419	$	36,170

(a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 2.2X at September 30, 2020 and 2.0X at December 31, 2019. The debt service coverage ratios have been updated within the last three months.

(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 at September 30, 2020 and was 56 percent at December 31, 2019. The loan-to-value ratios have been updated within the last three to nine months.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, 2020
Credit Quality Performance
Indicator:
In good standing	700	$	13,704	$	10,843	$	5,124	$	3,746	$	2,080	$	448	$	35,945	99	%
Restructured^(a)	3		-		-		50		-		-		-		50	-
90 days or less delinquent	1		-		-		-		-		108		-		108	-
>90 days delinquent or in
process of foreclosure	5		-		116		54		-		86		-		256	1
Total^(b)	709	$	13,704	$	10,959	$	5,228	$	3,746	$	2,274	$	448	$	36,359	100	%
Allowance for credit losses		$	123	$	281	$	141	$	55	$	52	$	7	$	659	2	%

December 31, 2019
Credit Quality Performance
Indicator:
In good standing	736	$	13,698	$	10,553	$	5,332	$	3,663	$	2,211	$	522	$	35,979	99	%
Restructured^(a)	3		-		89		-		-		101		-		190	1
90 days or less delinquent	1		1		-		-		-		-		-		1	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	740	$	13,699	$	10,642	$	5,332	$	3,663	$	2,312	$	522	$	36,170	100	%
Allowance for credit losses:
Specific		$	-	$	2	$	1	$	-	$	6	$	-	$	9	-	%
General			81		153		44		30		14		5		327	1
Total allowance for credit losses		$	81	$	155	$	45	$	30	$	20	$	5	$	336	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 8 to the Consolidated Financial Statements in the 2019 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.

The following table presents credit quality performance indicators for residential mortgages by year of vintage:

September 30, 2020
(in millions)		2020		2019		2018		2017		2016		Prior		Total
FICO*:
780 and greater	$	309	$	764	$	364	$	627	$	688	$	650	$	3,402
720 - 779		326		411		123		182		221		197		1,460
660 - 719		10		67		33		48		56		73		287
600 - 659		1		6		6		7		5		13		38
Less than 600		-		-		1		2		3		9		15
Total residential mortgages	$	646	$	1,248	$	527	$	866	$	973	$	942	$	5,202

*Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last three months.

Methodology Used to Estimate the Allowance for Credit Losses

Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

At the time of origination or purchase, an allowance for credit losses is established for mortgage and other loan receivables and is updated each reporting period. Changes in the allowance for credit losses are recorded in realized capital losses. This allowance reflects the risk of loss, even when that risk is remote, and reflects losses expected over the remaining contractual life of the loan. The allowance for credit losses considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions. We revert to historical information when we determine that we can no longer reliably forecast future economic assumptions.

The allowances for the commercial mortgage loans and residential mortgage loans are estimated utilizing a probability of default and loss given default model. Loss rate factors are determined based on historical data and adjusted for current and forecasted information. The loss rates are applied based on individual loan attributes and considering such data points as loan-to-value ratios, FICO scores, and debt service coverage.

The estimate of credit losses also reflects management’s assumptions on certain macroeconomic factors that include, but are not limited to, gross domestic product growth, employment, inflation, housing price index, interest rates and credit spreads.

Accrued interest is excluded from the measurement of the allowance for credit losses and accrued interest is reversed through interest income once a loan is placed on nonaccrual.

When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance.

We also have off-balance sheet commitments related to our commercial mortgage loans. The liability for expected credit losses related to these commercial mortgage loan commitments is reported in Other liabilities in the Condensed Consolidated Balance Sheets. When a commitment is funded, we record a loan receivable and reclassify the liability for expected credit losses related to the commitment into loan allowance for expected credit losses. Other changes in the liability for expected credit losses on loan commitments are recorded in Net realized capital gains (losses) in the Condensed Consolidated Statements of Income.

Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

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

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

Three Months Ended September 30,	2020						2019
		Commercial		Other				Commercial			Other
(in millions)		Mortgages		Loans		Total		Mortgages			Loans		Total
Allowance, beginning of period	$	667	$	127	$	794	$	310		$	97	$	407
Initial allowance upon CECL adoption		-		-		-		-			-		-
Loans charged off		-		-		-		(2)			-		(2)
Recoveries of loans previously charged off		-		-		-		-			-		-
Net charge-offs		-		-		-		(2)			-		(2)
Provision for loan losses		(8)		11		3		27			(2)		25
Allowance, end of period	$	659	$	138	$	797	$	335	^(b)	$	95	$	430
Nine Months Ended September 30,	2020						2019
		Commercial		Other				Commercial			Other
(in millions)		Mortgages		Loans		Total		Mortgages			Loans		Total
Allowance, beginning of year	$	336	$	102	$	438	$	318		$	79	$	397
Initial allowance upon CECL adoption		311		7		318		-			-		-
Loans charged off		(12)		-		(12)		(2)			-		(2)
Recoveries of loans previously charged off		-		-		-		-			-		-
Net charge-offs		(12)		-		(12)		(2)			-		(2)
Provision for loan losses		24		29		53		19			16		35
Allowance, end of period	$	659	$	138	$	797	$	335	^(b)	$	95	$	430

(a) Does not include $66 million of expected credit loss liability at September 30, 2020 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

(b) The September 30, 2019 total allowance was calculated prior to the adoption of ASC 326 on January 1, 2020. Of the total allowance, $10 million relates to individually assessed credit losses on $151 million of commercial mortgages at September 30, 2019.

As a result of the COVID-19 crisis, including the significant global economic slowdown and general market decline, our expectations and models used to estimate the allowance for losses on commercial and residential mortgage loans have been updated to reflect the current economic environment. The full impact of COVID-19 on real estate valuations remains uncertain and we will continue to review our valuations as further information becomes available.

TROUBLED DEBT RESTRUCTURINGS

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

In response to the COVID-19 pandemic, there was an increase in the volume of loan modifications in our commercial mortgage, residential mortgage and leveraged loan portfolios. The COVID-19 related modifications were primarily in the form of short term payment deferrals (one to six months). Short-term payment deferrals are not considered a concession and therefore these modifications are not considered a TDR.

During the nine-month period ended September 30, 2020, loans with a carrying value of $50 million were modified in troubled debt restructurings. There were no loans modified in trouble debt restructurings during the nine-month period ended September 30, 2019.

REINSURANCE

9 Months Ended

Sep. 30, 2020

REINSURANCE

REINSURANCE

7. Reinsurance

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

Sale of Fortitude Holdings

On June 2, 2020, we completed the Majority Interest Fortitude Sale. AIG established Fortitude Re, a wholly owned subsidiary of Fortitude Holdings, in 2018 in a series of reinsurance transactions related to AIG’s Legacy Portfolio. As of September 30, 2020, approximately $30.6 billion of reserves from AIG’s Legacy Life and Retirement Run-Off Lines and approximately $4.1 billion of reserves from AIG’s Legacy General Insurance Run-Off Lines, related to business written by multiple wholly-owned AIG subsidiaries, had been ceded to Fortitude Re under these reinsurance transactions. As of closing of the Majority Interest Fortitude Sale, these reinsurance transactions are no longer considered affiliated transactions and Fortitude Re is the reinsurer of the majority of AIG’s Legacy Portfolio.

These reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld (funds withheld). In modco and funds withheld arrangements, the investments supporting the reinsurance agreements, and which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., AIG) thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date. Additionally, as AIG maintains ownership of these investments, AIG will maintain its existing accounting for these assets (e.g., the changes in fair value of available for sale securities will be recognized within other comprehensive income). As a result of the deconsolidation resulting from the Majority Interest Fortitude Sale, AIG has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing reserves for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through realized capital gains (losses). This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements.

There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets as of September 30, 2020:

September 30, 2020		Carrying		Fair
(in millions)		Value		Value	Corresponding Accounting Policy
Fixed maturity securities - available for sale^(a)	$	35,775	$	35,775	Fair value through other comprehensive income
Fixed maturity securities - fair value option		204		204	Fair value through net investment income
Commercial mortgage loans		3,577		3,866	Amortized cost
Real estate investments		366		595	Amortized cost
Private equity funds / hedge funds		992		992	Fair value through net investment income
Policy loans		423		423	Amortized cost
Derivative assets, net^(b)		-		-	Fair value through realized capital gains (losses)
Other		687		687	Amortized cost
Total	$	42,024	$	42,542

(a)The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $722 million ($570 million after-tax) during the post deconsolidation period (June 2, 2020-September 30, 2020).(b)The derivative assets have been presented net of collateral. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $471 million as of September 30, 2020. These derivative assets are fully collateralized.The impact of the funds withheld arrangements with Fortitude Re for the period post June 2, 2020 deconsolidation was as follows:

	Three Months Ended		Nine Months Ended
(in millions)	September 30, 2020		September 30, 2020
Net underwriting income	$	-	$	-
Net investment income - Fortitude Re funds withheld assets		458		574
Net realized capital losses on Fortitude Re funds withheld assets:
Net realized capital gains - Fortitude Re funds withheld assets		32		128
Net realized capital losses - Fortitude Re embedded derivatives		(656)		(1,493)
Net realized capital losses on Fortitude Re funds withheld assets		(624)		(1,365)
Loss from continuing operations before income tax benefit		(166)		(791)
Income tax benefit^(a)		(35)		(166)
Net loss		(131)		(625)
Change in unrealized appreciation of all other investments^(a)		132		570
Comprehensive income (loss)	$	1	$	(55)

(a) The income tax expense (benefit) and the tax impact in accumulated other comprehensive income was computed using AIG’s U.S. statutory tax rate of 21 percent.

Various assets supporting the Fortitude Re funds withheld arrangements are reported at amortized cost, and as such, changes in the fair value of these assets are not reflected in the financial statements. However, changes in the fair value of these assets are included in the embedded derivative in the Fortitude Re funds withheld arrangements. During the three-month period ended September 30, 2020 and the period from June 2, 2020 to September 30, 2020, these assets appreciated by $(1) million and $55 million, respectively, on an after-tax basis.

Reinsurance — Credit Losses

The estimation of reinsurance recoverables involves a significant amount of judgment, particularly for latent exposures, such as asbestos, due to their long-tail nature. Reinsurance assets include reinsurance recoverables on unpaid losses and loss adjustment expenses that are estimated as part of our loss reserving process and, consequently, are subject to similar judgments and uncertainties as the estimation of gross loss reserves. Similarly, Other assets include reinsurance recoverables for contracts which are accounted for as deposits.

We assess the collectability of reinsurance recoverable balances in each reporting period, through either historical trends of disputes and credit events or financial analysis of the credit quality of the reinsurer. We record adjustments to reflect the results of these assessments through an allowance for credit losses and disputes on uncollectable reinsurance that reduces the carrying amount of reinsurance and other assets on the consolidated balance sheets (collectively, the reinsurance recoverable balances). This estimate requires significant judgment for which key considerations include:

paid and unpaid amounts recoverable;whether the balance is in dispute or subject to legal collection;the relative financial health of the reinsurer as determined by the Obligor Risk Ratings (ORRs) we assign to each reinsurer based upon our financial reviews; insurers that are financially troubled (i.e., in run-off, have voluntarily or involuntarily been placed in receivership, are insolvent, are in the process of liquidation or otherwise subject to formal or informal regulatory restriction) are assigned ORRs that will generate a significant allowance; andwhether collateral and collateral arrangements exist.

An estimate of the reinsurance recoverable’s lifetime expected credit losses is established utilizing a probability of default and loss given default method, which reflects the reinsurer’s ORR rating. The allowance for credit losses excludes disputed amounts. An allowance for disputes is established for a reinsurance recoverable using the losses incurred model for contingencies.

The total reinsurance recoverables as of September 30, 2020 were $77.5 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 93 percent of the reinsurance recoverables were investment grade, of which 52 percent related to General Insurance and 41 percent related to Life and Retirement; (ii) approximately 7 percent of the reinsurance recoverables were non-investment grade, the majority of which related to General Insurance; (iii) less than one percent of the non-investment grade reinsurance recoverables related to Life and Retirement and (iv) approximately one percent of the reinsurance recoverables related to entities that were not rated by AIG.

As of September 30, 2020, approximately 75 percent of our non-investment grade reinsurance exposure related to captive insurers. These arrangements are typically collateralized by letters of credit, funds held or trust agreements.

Reinsurance Recoverable Allowance

The following table presents a rollforward of the reinsurance recoverable allowance:

	Three Months Ended						Nine Months Ended
	September 30, 2020						September 30, 2020
		General		Life and				General		Life and
(in millions)	Insurance		Retirement			Total	Insurance		Retirement			Total
Balance, beginning of period	$	305	$	59	$	364	$	111	$	40	$	151
Initial allowance upon CECL adoption		-		-		-		202		22		224
Current period provision for expected credit losses and disputes		(2)		2		-		-		5		5
Write-offs charged against the allowance for credit losses and
disputes		-		-		-		(5)		(5)		(10)
Other changes		5		1		6		-		-		-
Balance, end of period	$	308	$	62	$	370	$	308	$	62	$	370

There were no recoveries of credit losses previously written off for either of the three- and nine-month periods ended September 30, 2020.

Past-Due Status

We consider a reinsurance asset to be past due when it is 90 days past due and record an allowance for disputes when there is reasonable uncertainty of the collectability of a disputed amount during the reporting period. Past due balances were not significant for any of the periods presented.

VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2020

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 (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) 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, 2020
Assets:
Bonds available for sale	$	-	$	6,075	$	-	$	-	$	6,075
Other bond and equity securities		281		2,416		-		6		2,703
Mortgage and other loans receivable		-		3,247		-		-		3,247
Other invested assets		5,975		-		3,549		18		9,542
Other^(a)		461		1,635		520		23		2,639
Total assets^(b)	$	6,717	$	13,373	$	4,069	$	47	$	24,206
Liabilities:
Long-term debt	$	2,509	$	4,054	$	2,317	$	-	$	8,880
Other^(c)		165		159		197		9		530
Total liabilities	$	2,674	$	4,213	$	2,514	$	9	$	9,410
December 31, 2019
Assets:
Bonds available for sale	$	177	$	7,239	$	-	$	-	$	7,416
Other bond securities		-		3,324		-		1		3,325
Mortgage and other loans receivable		-		3,860		-		-		3,860
Other invested assets		5,231		-		3,464		42		8,737
Other^(a)		615		1,996		469		42		3,122
Total assets^(b)	$	6,023	$	16,419	$	3,933	$	85	$	26,460
Liabilities:
Long-term debt	$	2,810	$	4,356	$	2,074	$	4	$	9,244
Other^(c)		236		359		195		24		814
Total liabilities	$	3,046	$	4,715	$	2,269	$	28	$	10,058

(a)Comprised primarily of Short-term investments and Other assets at September 30, 2020 and December 31, 2019.

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

(d) At September 30, 2020 and December 31, 2019, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $2.3 billion and $2.6 billion, respectively.

(e) At September 30, 2020 and December 31, 2019, the company had contributed total assets of $12.6 billion and $15.6 billion, respectively, into consolidated securitization vehicles.

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, 2020
Real estate and investment entities^(a)	$	293,428	$	5,260	$	3,238		$	8,498
Affordable housing partnerships		3,045		384		-			384
Other		5,033		461		562	^(c)		1,023
Total	$	301,506	$	6,105	$	3,800		$	9,905
December 31, 2019
Real estate and investment entities^(a)	$	283,349	$	6,519	$	3,286		$	9,805
Affordable housing partnerships		3,351		453		-			453
Other		5,320		310		561	^(c)		871
Total	$	292,020	$	7,282	$	3,847		$	11,129

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

(b) At September 30, 2020 and December 31, 2019, $5.7 billion and $7.0 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 11 to the Consolidated Financial Statements in the 2019 Annual Report.

DERIVATIVES AND HEDGE ACCOUNTING

9 Months Ended

Sep. 30, 2020

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 12 to the Consolidated Financial Statements in the 2019 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, foreign currency transactions, and foreign denominated investments. 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, 2020								December 31, 2019
	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	$	690	$	19	$	299	$	13	$	495	$	3	$	410	$	7
Foreign exchange contracts		6,146		494		3,910		159		4,328		342		5,230		162
Derivatives not designated
as hedging instruments:^(a)
Interest rate contracts		66,938		5,035		39,057		4,546		52,437		3,197		35,231		2,742
Foreign exchange contracts		15,771		1,094		6,345		460		8,133		698		12,093		863
Equity contracts		21,461		957		4,268		101		18,533		769		7,539		139
Credit contracts^(b)		2,797		1		970		69		8,457		3		923		89
Other contracts^(c)		43,069		13		55		7		40,582		14		56		7
Total derivatives, gross	$	156,872	$	7,613	$	54,904	$	5,355	$	132,965	$	5,026	$	61,482	$	4,009
Counterparty netting^(d)				(3,695)				(3,695)				(2,427)				(2,427)
Cash collateral^(e)				(3,129)				(1,060)				(1,806)				(527)
Total derivatives on condensed
consolidated balance sheets^(f)			$	789			$	600			$	793			$	1,055

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

(b) As of September 30, 2020 and December 31, 2019, included CDSs on super senior multi-sector CDOs with a net notional amount of $137 million and $152 million (fair value liability of $45 million and $48 million), respectively. The net notional amount represents the maximum exposure to loss on the portfolio.

(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 Other liabilities, respectively. Fair value of assets related to bifurcated embedded derivatives was zero at both September 30, 2020 and December 31, 2019. Fair value of liabilities related to bifurcated embedded derivatives was $14.5 billion and $6.9 billion, respectively, at September 30, 2020 and December 31, 2019. 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, and the funds withheld arrangement with Fortitude Re. For additional information see Note 7 to the Condensed Consolidated Financial Statements..

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 $2.6 billion at September 30, 2020 and $2.2 billion at December 31, 2019. 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 $3.4 billion and $2.2 billion at September 30, 2020 and December 31, 2019, 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, 2020, we recognized losses of $(107) million and $(5) million, respectively, and for the three- and nine-month periods ended September 30, 2019, we recognized gains of $89 million and $146 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, 2020
Interest rate contracts:
Interest credited to policyholder account balances	$	(2)	$	-	$	5	$	3
Net investment income		1		-		-		1
Foreign exchange contracts:
Realized capital gains/(losses)		(250)		(50)		250		(50)
Three Months Ended September 30, 2019
Interest rate contracts:
Interest credited to policyholder account balances	$	4	$	-	$	(4)	$	-
Net investment income		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		228		41		(228)		41
Nine Months Ended September 30, 2020
Interest rate contracts:
Interest credited to policyholder account balances	$	16	$	-	$	(15)	$	1
Net investment income		(6)		-		6		-
Foreign exchange contracts:
Realized capital gains/(losses)		(77)		155		77		155
Nine Months Ended September 30, 2019
Interest rate contracts:
Interest credited to policyholder account balances	$	18	$	-	$	(18)	$	-
Net investment income		(1)		-		1		-
Foreign exchange contracts:
Realized capital gains/(losses)		278		84		(278)		84

(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)		2020		2019		2020		2019
By Derivative Type:
Interest rate contracts	$	(462)	$	1,078	$	2,104	$	2,052
Foreign exchange contracts		(535)		342		366		545
Equity contracts		(46)		96		586		(23)
Credit contracts		(1)		26		55		35
Other contracts		18		14		44		48
Embedded derivatives		(507)		(756)		(3,333)		(2,037)
Total	$	(1,533)	$	800	$	(178)	$	620
By Classification:
Policy fees	$	16	$	16	$	46	$	51
Net investment income		4		(3)		1		(58)
Net realized capital gains (losses) - excluding
Fortitude Re funds withheld assets		(775)		780		1,398		611
Net realized capital gains (losses) on Fortitude Re
funds withheld assets		(776)		-		(1,639)		-
Policyholder benefits and claims incurred		(2)		7		16		16
Total	$	(1,533)	$	800	$	(178)	$	620

CREDIT RISK-RELATED CONTINGENT FEATURES

We estimate that at September 30, 2020, 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 $46 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 $255 million and $336 million at September 30, 2020 and December 31, 2019, respectively. The aggregate fair value of assets posted as collateral under these contracts at September 30, 2020 and December 31, 2019, was approximately $305 million and $381 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 $2.5 billion and $3.3 billion at September 30, 2020 and December 31, 2019, respectively. These securities have par amounts of $5.2 billion and $7.4 billion at September 30, 2020 and December 31, 2019, respectively, and have remaining stated maturity dates that extend to 2052.

INSURANCE LIABILITIES

9 Months Ended

Sep. 30, 2020

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 and loss adjustment expenses, 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. Given the uncertainties around the impact from the COVID-19 crisis, including the significant global economic slowdown and general market decline, the full impact of COVID-19 and how it may ultimately impact the results of our insurance operations remains uncertain. In addition, in response to the crisis, new governmental, legislative and regulatory initiatives have been put in place and continue to be developed that could result in additional restrictions and requirements relating to our policies that may have a negative impact on our business operations. However, we have recorded our estimate of the ultimate liability for claims that have occurred as of the balance sheet date associated with COVID-19 which reflects our expectations given the current facts and circumstances. We will continue to monitor and review the impact. 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 $12.7 billion and $12.2 billion at September 30, 2020 and December 31, 2019, 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, 2020 and December 31, 2019, we held collateral of approximately $9.2 billion and $8.9 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements. Allowance for credit losses for the unsecured portion of these recoverable amounts was $14 million at September 30, 2020.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2020		2019		2020		2019
Liability for unpaid loss and loss adjustment expenses, beginning of period	$	77,853	$	81,057	$	78,328	$	83,639
Reinsurance recoverable		(35,458)		(31,333)		(31,069)		(31,690)
Initial allowance upon CECL adoption		-		-		164		-
Net Liability for unpaid loss and loss adjustment expenses, beginning of period		42,395		49,724		47,423		51,949
Losses and loss adjustment expenses incurred:
Current year		4,324		4,612		12,683		13,181
Prior years, excluding discount and amortization of deferred gain		20		(74)		(6)		(221)
Prior years, discount charge (benefit)		25		276		135		1,017
Prior years, amortization of deferred gain on retroactive reinsurance^(a)		(36)		13		(187)		(129)
Total losses and loss adjustment expenses incurred		4,333		4,827		12,625		13,848
Losses and loss adjustment expenses paid:
Current year		(1,316)		(1,572)		(2,568)		(2,949)
Prior years		(3,115)		(4,244)		(11,256)		(14,010)
Total losses and loss adjustment expenses paid		(4,431)		(5,816)		(13,824)		(16,959)
Other changes:
Foreign exchange effect		925		(172)		656		(165)
Allowance for credit losses		-		-		-		-
Retroactive reinsurance adjustment (net of discount)^(b)		80		96		240		(14)
Fortitude sale and reinsurance adjustment^(c)		-		-		(3,818)		-
Total other changes		1,005		(76)		(2,922)		(179)
Liability for unpaid loss and loss adjustment expenses, end of period:
Net liability for unpaid losses and loss adjustment expenses		43,302		48,659		43,302		48,659
Reinsurance recoverable		35,282		31,224		35,282		31,224
Total	$	78,584	$	79,883	$	78,584	$	79,883

(a)Includes $6 million and $6 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, 2020 and 2019, respectively, and $26 million and $21 million for the nine-month periods ended September 30, 2020 and 2019, respectively.(b)Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $20 million and $43 million for the three-month periods ended September 30, 2020 and 2019, respectively, and $78 million and $475 million for the nine-month periods ended September 30, 2020 and 2019, respectively.(c)On June 2, 2020, AIG completed the Majority Interest Fortitude Sale. Concurrent with the Majority Interest Fortitude Sale, AIG established a reinsurance recoverable. Refer to Note 1 for additional information.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, 2020 were below the attachment point.

Discounting of Loss Reserves

At September 30, 2020 and December 31, 2019, the loss reserves reflect a net loss reserve discount of $938 million and $1.5 billion, respectively, including tabular and non-tabular calculations based upon the following assumptions:

The discount for asbestos reserves has been fully accreted.

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 and in 2014, our Pennsylvania and Delaware regulators, respectively, 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 and Delaware domiciled companies, as well as our use of updated payout patterns specific to our primary and excess workers compensation portfolios. In 2020, these regulators also approved that the discount rate will be updated on an annual basis, with the next update being performed in the fourth quarter of 2020.

At September 30, 2020 and December 31, 2019, the discount consists of $289 million and $582 million of tabular discount, respectively, and $649 million and $967 million of non-tabular discount for workers’ compensation, respectively. During the nine-month periods ended September 30, 2020 and 2019, the benefit (charge) from changes in discount of $(41) million and $(920) million, respectively, recorded as part of the policyholder benefits and losses incurred in the Condensed Consolidated Statements of Income.

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

	September 30, 2020						December 31, 2019
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio^(b)		Total	Insurance			Portfolio		Total
U.S. workers' compensation	$	2,111	$	-	$	2,111	$	2,134	$	666	$	2,800
Retroactive reinsurance		(1,173)		-		(1,173)		(1,251)		-		(1,251)
Total reserve discount^(a)	$	938	$	-	$	938	$	883	$	666	$	1,549

(a)Excludes $151 million and $172 million of discount related to certain long tail liabilities in the UK at September 30, 2020 and December 31, 2019, respectively.

(b)On June 2, 2020, we completed the Majority Interest Fortitude Sale. Refer to Note 1 for additional information.

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

Three Months Ended September 30,	2020						2019
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio^(c)		Total	Insurance			Portfolio		Total
Current accident year	$	56	$	-	$	56	$	41	$	-	$	41
Accretion and other adjustments to prior year discount		(25)		-		(25)		(26)		(56)		(82)
Effect of interest rate changes		-		-		-		(136)		(58)		(194)
Net reserve discount benefit (charge)		31		-		31		(121)		(114)		(235)
Change in discount on loss reserves ceded under retroactive
reinsurance		20		-		20		43		-		43
Net change in total reserve discount^(a)	$	51	$	-	$	51	$	(78)	$	(114)	$	(192)

Nine Months Ended September 30,	2020						2019
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio^(c)		Total	Insurance			Portfolio		Total
Current accident year	$	94	$	-	$	94	$	97	$	-	$	97
Accretion and other adjustments to prior year discount		(117)		(18)		(135)		(269)		(80)		(349)
Effect of interest rate changes		-		-		-		(473)		(195)		(668)
Net reserve discount benefit (charge)		(23)		(18)		(41)		(645)		(275)		(920)
Change in discount on loss reserves ceded under retroactive
reinsurance		78		-		78		475		-		475
Net change in total reserve discount^(b)	$	55	$	(18)	$	37	$	(170)	$	(275)	$	(445)

(a) Excludes $(12) million and $(27) million discount related to certain long tail liabilities in the UK for the three-month periods ended September 30, 2020 and 2019, respectively.

(b) Excludes $(20) million and $(1) million discount related to certain long tail liabilities in the UK for the nine-month periods ended September 30, 2020 and 2019, respectively.

CONTINGENCIES, COMMITMENTS AND GUARANTEES

9 Months Ended

Sep. 30, 2020

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 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 may 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, indemnification 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 operating segments. On July 28, 2020, VALIC Financial Advisors, Inc. (VFA), an indirect subsidiary of AIG, agreed to settle two separate proceedings brought by the SEC to resolve certain of these matters. VFA consented to the entry of both orders without admitting or denying the findings therein. In the first matter, the SEC found that VFA violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 (the Advisers Act) and Rules 206(4)-3 and 206(4)-7 thereunder, by failing to disclose to certain Florida teachers who were potential and actual clients that VFA’s parent, VALIC, made payments and provided other financial benefits to a company owned by Florida K-12 teachers’ unions for referrals. As part of the settlement VFA agreed to pay a $20 million penalty and to comply with certain undertakings. In the second settled proceeding, the SEC found that VFA violated Sections 206(2) and 206(4) of the Advisers Act and Rule 206(4)-7 thereunder, in connection with certain mutual fund share class selection practices. These practices included conflicts of interest associated with VFA’s receipt of revenue sharing, avoidance of transaction fees, and receipt of compensation paid by mutual funds in accordance with Rule 12b-1 under the Investment Company Act of 1940, without appropriate disclosure, and in violation of its duty to seek best execution. VFA agreed as part of the settlement to pay disgorgement of $13.2 million, prejudgment interest of $2.2 million, and a civil monetary penalty of $4.5 million, as well as to comply with certain undertakings. 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 tax litigation before the Southern District of New York. In October 2020, the Southern District of New York dismissed the case based upon the settlement reached between AIG and the government. 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 $7.2 billion at September 30, 2020.

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. arising from transactions entered into by AIG Markets, Inc.

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, 2020 was $78 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. 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. The Majority Interest Fortitude Sale is subject to a post-closing purchase price adjustment pursuant to which AIG will pay Fortitude Re for certain adverse development in property casualty related reserves, based on an agreed methodology, that may occur on or prior to December 31, 2023, up to a maximum of $500 million.

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.

For additional discussion on the Fortitude Re transaction, see Note 1 to the Condensed Consolidated Financial Statements.

Other

 For additional discussion on commitments and guarantees associated with VIEs see Note 8 to the Condensed Consolidated Financial Statements.

 For additional disclosures about derivatives see Note 9 to the Condensed Consolidated Financial Statements.

EQUITY

9 Months Ended

Sep. 30, 2020

EQUITY

EQUITY

12. Equity

Shares Outstanding

Preferred Stock

On March 14, 2019, we issued 20,000 shares of Series A 5.85% Non-Cumulative Perpetual 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 Securities Exchange Act of 1934, as amended (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.

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.

The following table presents declaration date, record date, payment date and dividends paid per preferred share and per depository share on the Series A Preferred Stock in the nine months ended September 30, 2020 and 2019:

			Dividends Paid
Declaration Date	Record Date	Payment Date		Per Preferred Share		Per Depositary Share
August 3, 2020	August 31, 2020	September 15, 2020	$	365.625	$	0.365625
May 4, 2020	May 29, 2020	June 15, 2020		365.625		0.365625
February 12, 2020	February 28, 2020	March 16, 2020		365.625		0.365625
August 7, 2019	August 30, 2019	September 16, 2019	$	365.625	$	0.365625
May 21, 2019	May 31, 2019	June 17, 2019		369.6875		0.3696875

Common Stock

The following table presents a rollforward of outstanding shares:

Nine Months Ended September 30, 2020	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Shares, beginning of year	1,906,671,492	(1,036,672,461)	869,999,031
Shares issued	-	3,610,496	3,610,496
Shares repurchased	-	(12,160,952)	(12,160,952)
Shares, end of period	1,906,671,492	(1,045,222,917)	861,448,575

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 common share on AIG Common Stock in the nine months ended September 30, 2020 and 2019:

				Dividends Paid
Declaration Date	Record Date	Payment Date		Per Common Share
August 3, 2020	September 17, 2020	September 30, 2020	$	0.32
May 4, 2020	June 15, 2020	June 29, 2020		0.32
February 12, 2020	March 16, 2020	March 30, 2020		0.32
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

For a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries see Note 20 to the Consolidated Financial Statements in the 2019 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)		2020		2019
Aggregate repurchases of common stock	$	500	$	-
Total number of common shares repurchased		12		-
Aggregate repurchases of warrants	$	-	$	-
Total number of warrants repurchased		-		-

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, 2020, $1.5 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.

In February 2020, we executed an accelerated stock repurchase (ASR) agreement with a third-party financial institution. The total number of shares of AIG Common Stock repurchased in the nine months ended September 30, 2020, and the aggregate purchase price of those shares, reflect our payment of $500 million in the aggregate under the ASR agreement and the receipt of approximately 12 million shares of AIG Common Stock in the aggregate.

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 Allowance		(Depreciation)		Currency		Plan		Attributable to
		for Credit Losses		of All Other		Translation		Liabilities		Changes in
(in millions)		Was Taken		Investments		Adjustments		Adjustment		Own Credit Risk		Total
Balance, June 30, 2020, net of tax	$	(233)	$	13,281	$	(2,767)	$	(1,120)	$	8	$	9,169
Change in unrealized appreciation of investments		101		2,273		-		-		-		2,374
Change in deferred policy acquisition costs
adjustment and other		(5)		(296)		-		-		-		(301)
Change in future policy benefits		-		(147)		-		-		-		(147)
Change in foreign currency translation adjustments		-		-		297		-		-		297
Change in net actuarial loss		-		-		-		2		-		2
Change in prior service credit		-		-		-		-		-		-
Change in deferred tax asset (liability)		(17)		(445)		55		(3)		-		(410)
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		1		1
Total other comprehensive income (loss)		79		1,385		352		(1)		1		1,816
Noncontrolling interests		-		2		5		-		-		7
Balance, September 30, 2020, net of tax	$	(154)	$	14,664	$	(2,420)	$	(1,121)	$	9	$	10,978

Balance, December 31, 2019, net of tax	$	-	$	8,722	$	(2,625)	$	(1,122)	$	7	$	4,982
Change in unrealized appreciation (depreciation)
of investments		(212)		6,088		-		-		-		5,876
Change in deferred policy acquisition costs
adjustment and other		14		(655)		-		-		-		(641)
Change in future policy benefits		-		2,187		-		-		-		2,187
Change in foreign currency translation adjustments		-		-		169		-		-		169
Change in net actuarial loss		-		-		-		18		-		18
Change in prior service credit		-		-		-		(1)		-		(1)
Change in deferred tax asset (liability)		44		(1,695)		37		(16)		-		(1,630)
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		2		2
Total other comprehensive income (loss)		(154)		5,925		206		1		2		5,980
Noncontrolling interests		-		(17)		1		-		-		(16)
Balance, September 30, 2020, net of tax	$	(154)	$	14,664	$	(2,420)	$	(1,121)	$	9	$	10,978

		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

The following table presents the other comprehensive income (loss) reclassification adjustments for the three- and nine-month periods ended September 30, 2020 and 2019, respectively:

		Unrealized Appreciation								Fair Value of
		(Depreciation) of Fixed		Unrealized						Liabilities Under
		Maturity Securities on		Appreciation		Foreign		Retirement		Fair Value Option
		Which Allowance		(Depreciation)		Currency		Plan		Attributable to
		for Credit Losses		of All Other		Translation		Liabilities		Changes in
(in millions)		Was Taken		Investments		Adjustments		Adjustment		Own Credit Risk		Total
Three Months Ended September 30, 2020
Unrealized change arising during period	$	99	$	2,002	$	297	$	(9)	$	1	$	2,390
Less: Reclassification adjustments
included in net income		3		172		-		(11)		-		164
Total other comprehensive income (loss),
before income tax expense (benefit)		96		1,830		297		2		1		2,226
Less: Income tax expense (benefit)		17		445		(55)		3		-		410
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	79	$	1,385	$	352	$	(1)	$	1	$	1,816
Nine Months Ended September 30, 2020
Unrealized change arising during period	$	(198)	$	8,158	$	169	$	(15)	$	2	$	8,116
Less: Reclassification adjustments
included in net income		-		538		-		(32)		-		506
Total other comprehensive income (loss),
before income tax expense (benefit)		(198)		7,620		169		17		2		7,610
Less: Income tax expense (benefit)		(44)		1,695		(37)		16		-		1,630
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(154)	$	5,925	$	206	$	1	$	2	$	5,980

		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
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
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

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)		2020		2019
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken
Investments		$	3	$	-		Other realized capital gains
Total			3		-
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments			-		1		Other realized capital gains
Total			-		1
Unrealized appreciation (depreciation) of all other investments
Investments			172		127		Other realized capital gains
Total			172		127
Change in retirement plan liabilities adjustment
Prior-service credit			-		-		*
Actuarial losses			(11)		(9)		*
Total			(11)		(9)
Total reclassifications for the period		$	164	$	119
	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income

	Nine Months Ended September 30,
(in millions)		2020		2019
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken
Investments		$	-	$	-		Other realized capital gains
Total			-		-
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments			-		(3)		Other realized capital gains
Total			-		(3)
Unrealized appreciation (depreciation) of all other investments
Investments			538		187		Other realized capital gains
Total			538		187
Change in retirement plan liabilities adjustment
Prior-service credit			(1)		-		*
Actuarial losses			(31)		(24)		*
Total			(32)		(24)
Total reclassifications for the period		$	506	$	160

*These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. For additional information see Note 14 to the Condensed Consolidated Financial Statements.

EARNINGS PER COMMON SHARE (EPS)

9 Months Ended

Sep. 30, 2020

EARNINGS PER COMMON SHARE (EPS)

EARNINGS PER COMMON 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)		2020		2019		2020		2019
Numerator for EPS:
Income (loss) from continuing operations	$	294	$	973	$	(5,817)	$	3,301
Less: Net income from continuing operations attributable to noncontrolling interests		11		317		78		881
Less: Preferred stock dividends		7		8		22		15
Income (loss) attributable to AIG common shareholders
from continuing operations		276		648		(5,917)		2,405
Income (loss) from discontinued operations, net of income tax expense		5		-		4		(1)
Net income (loss) attributable to AIG common shareholders	$	281	$	648	$	(5,913)	$	2,404
Denominator for EPS:
Weighted average common shares outstanding — basic		867,713,308		877,009,495		869,627,926		876,262,372
Dilutive common shares		5,417,642		18,804,915		-		10,958,744
Weighted average common shares outstanding — diluted^(a)(b)		873,130,950		895,814,410		869,627,926		887,221,116
Income (loss) per common share attributable to AIG common
shareholders:
Basic:
Income (loss) from continuing operations	$	0.31	$	0.74	$	(6.80)	$	2.74
Income from discontinued operations	$	0.01	$	-	$	-	$	-
Income (loss) attributable to AIG common shareholders	$	0.32	$	0.74	$	(6.80)	$	2.74
Diluted:
Income (loss) from continuing operations	$	0.31	$	0.72	$	(6.80)	$	2.71
Income from discontinued operations	$	0.01	$	-	$	-	$	-
Income (loss) attributable to AIG common shareholders	$	0.32	$	0.72	$	(6.80)	$	2.71

(a) Shares in the diluted EPS calculation represent basic shares for the nine-month period ended September 30, 2020 due to the net loss in that period. The number of common shares excluded from the calculation was 4,432,369 shares for the nine-month period ended September 30, 2020.

(b) Dilutive common shares included our share-based employee compensation plans and a weighted average portion of the 10-year warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011 and expire in January 2021. The number of common shares excluded from diluted shares outstanding was 70.9 million and 68.9 million for the three- and nine-month periods ended September 30, 2020, respectively, and 5.1 million and 24.9 million for the three- and nine-month periods ended September 30, 2019, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive.

For information about our repurchases of AIG Common Stock see Note 12 to the Condensed Consolidated Financial Statements.

EMPLOYEE BENEFITS

9 Months Ended

Sep. 30, 2020

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

14. Employee Benefits

We sponsor various defined benefit 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 pension benefits:

	Pension
		U.S.		Non-U.S.
(in millions)		Plans		Plans		Total
Three Months Ended September 30, 2020
Components of net periodic benefit cost:
Service cost	$	1	$	5	$	6
Interest cost		33		3		36
Expected return on assets		(60)		(5)		(65)
Amortization of prior service cost		-		1		1
Amortization of net loss		9		1		10
Net periodic benefit cost (credit)		(17)		5		(12)
Settlement charges		-		-		-
Net benefit cost (credit)	$	(17)	$	5	$	(12)
Three Months Ended September 30, 2019
Components of net periodic benefit cost:
Service cost	$	2	$	6	$	8
Interest cost		44		3		47
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
Settlement charges		-		-		-
Net benefit cost (credit)	$	(3)	$	5	$	2
Nine Months Ended September 30, 2020
Components of net periodic benefit cost:
Service cost	$	4	$	15	$	19
Interest cost		100		8		108
Expected return on assets		(179)		(15)		(194)
Amortization of prior service cost		-		2		2
Amortization of net loss		25		5		30
Net periodic benefit cost (credit)		(50)		15		(35)
Settlement charges		-		-		-
Net benefit cost (credit)	$	(50)	$	15	$	(35)
Nine Months Ended September 30, 2019
Components of net periodic benefit cost:
Service cost	$	7	$	16	$	23
Interest cost		131		11		142
Expected return on assets		(172)		(16)		(188)
Amortization of prior service cost		-		1		1
Amortization of net loss		25		4		29
Net periodic benefit cost (credit)		(9)		16		7
Settlement credit		-		(3)		(3)
Net benefit cost (credit)	$	(9)	$	13	$	4

The service cost for our U.S. defined benefit plans only reflects administrative fees as the plans are frozen and no longer accrue benefits. We recognized net expense of $2 million and $6 million for our U.S. and non-U.S. postretirement benefit plans for the three- and nine-month periods ended September 30, 2020, respectively. We recognized net expense of $2 million and $5 million for our U.S. and non-U.S. postretirement benefit plans for the three- and nine-month periods ended September 30, 2019, respectively.

The entire disclosure for retirement benefits.

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INCOME TAXES

9 Months Ended

Sep. 30, 2020

INCOME TAXES

INCOME TAXES

15. Income Taxes

RECENT U.S. Tax law changes

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 includes provisions for Global Intangible Low-Taxed Income (GILTI) under which taxes 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. While the U.S. tax authorities issued formal guidance, including recently issued proposed and final regulations for BEAT and other provisions of the Tax Act, there are still certain aspects of the Tax Act that remain unclear and subject to substantial uncertainties. Additional guidance is expected in future periods. 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.

On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act to mitigate the economic impacts of the COVID-19 crisis. The tax provisions of the CARES Act have not had and are currently not expected to have a material impact on AIG’s U.S. federal tax liabilities.

RECLASSIFICATION OF CERTAIN TAX EFFECTS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME

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

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. As of September 30, 2020, the annual effective tax rate includes the tax effects of actual and projected COVID-19 related losses and market developments. The tax effects of the Majority Interest Fortitude Sale were excluded from the estimated annual effective tax rate and reported in the second quarter interim period.

Interim Tax Expense (Benefit)

For the three-month period ended September 30, 2020, 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 the effect of foreign operations, accrual of interest associated with IRS and other tax authority matters, state and local income taxes, 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. 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, 2020, the effective tax rate on loss from continuing operations was 13.6 percent. The effective tax rate on loss from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax effects of the Majority Interest Fortitude Sale, tax charges associated with the establishment of U.S. federal valuation allowance related to certain tax attribute carryforwards, accrual of interest associated with IRS and other tax authority matters, the effect of foreign operations, excess tax charges related to share based compensation payments recorded through the income statement, state and local income taxes, 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. 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, 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, 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 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, 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 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, 2020, 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. Given the uncertainties around the impact from the COVID-19 crisis, including the significant global economic slowdown and general market decline, we continue to monitor and review the impact on our reinvestment considerations, including regulatory oversight in the relevant jurisdictions.

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, including forecasts of future income for each of our businesses and actual and planned business and operational changes;

 the carryforward periods for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and

 prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset.

In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operating loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though the carryforward period for the foreign tax credit is shorter than for the net operating loss. Our U.S. federal consolidated income tax

group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can be offset by our net operating loss carryforwards, only a portion (no more than 35 percent) of the U.S. taxable income of our life companies can be offset by those net operating loss carryforwards. The remaining tax liability of our life companies can be offset by the foreign tax credit carryforwards. Accordingly, we are able to utilize both the net operating loss and foreign tax credit carryforwards concurrently.

Recent events, including the COVID-19 crisis, multiple reductions in target interest rates by the Board of Governors of the Federal Reserve System, and significant market volatility, continue to impact actual and projected results of our business operations as well as our views on potential effectiveness of certain prudent and feasible tax planning strategies. In order to demonstrate the predictability and sufficiency of future taxable income necessary to support the realizability of the net operating losses and foreign tax credit carryforwards, we have considered forecasts of future income for each of our businesses, including assumptions about future macro-economic and AIG-specific conditions and events, and any impact these conditions and events may have on our prudent and feasible tax planning strategies. We also subjected the forecasts to a variety of stresses of key assumptions and evaluated the effect on tax attribute utilization.

The carryforward periods of our foreign tax credit carryforwards range from tax years 2020 through 2023. Carryforward periods for our net operating losses extend from 2028 forward. However, utilization of a portion of our net operating losses is limited under separate return limitation year rules. Based on 2020 events and our analysis of their potential impact on utilization of our tax attributes, we concluded in the first quarter of 2020 that a valuation allowance should be established on a portion of our foreign tax credit carryforwards and net operating losses that are no longer more-likely-than-not to be realized. To the extent that the valuation allowance is attributed to changes in forecast of current year taxable income, the impact is included in our estimated annualized effective tax rate. The valuation allowance related to changes in forecasts of income in future periods as well as other items not related to the current year was recorded discretely in the nine-month period ended September 30, 2020. Accordingly, as of September 30, 2020, we have recorded a $286 million valuation allowance through continuing operations. No additional activity was recorded for the three-month period ended September 30, 2020.

Estimates of future taxable income, including income generated from prudent and feasible actions and tax planning strategies, impact of settlements with taxing authorities, and any changes to interpretations and assumptions related to the impact of the Tax Act could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Additionally, estimates of future taxable income, including prudent and feasible tax planning strategies, may be further impacted by market developments arising from the COVID-19 crisis and uncertainty regarding its outcome. 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, 2020, recent changes in market conditions, including the COVID-19 crisis and interest rate fluctuations, impacted the unrealized tax gains and losses in the U.S. Life Insurance Companies’ available for sale securities portfolio, resulting in a deferred tax liability related to net unrealized tax capital gains. As of September 30, 2020, based on all available evidence, we concluded that no valuation allowance is necessary in the U.S. Life Insurance Companies’ available for sale securities portfolio.

For the nine-month period ended September 30, 2020, recent changes in market conditions, including interest rate fluctuations, impacted the unrealized tax gains and losses in the U.S. non-life companies’ available for sale securities portfolio, resulting in a deferred tax liability related to net unrealized tax capital gains. As of September 30, 2020, based on all available evidence, we concluded that no valuation allowance is necessary in the U.S. non-life companies’ available for sale securities portfolio.

For the three- and nine-month periods ended September 30, 2020, we recognized a net increase (decrease) of $(8) million and $12 million, respectively, in deferred tax asset valuation allowance associated with certain foreign and state jurisdictions, primarily attributable to current year activity. For the nine-month period ended September 30, 2020, we also recognized a $206 million decrease in deferred tax asset valuation allowance associated with certain foreign jurisdictions, primarily attributable to a corresponding reduction in foreign net operating loss deferred tax assets as a result of restructuring of our European business and the expiration of a portion of net operating losses prior to utilization in Japan which was recorded during the three-month period ended June 30, 2020.

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 (SDNY). The SDNY 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 was remanded back to the SDNY for a jury trial.

In January 2018, the parties reached non-binding agreements in principle on issues presented in the dispute. In 2019, we agreed with the IRS to execute an agreement for the tax years at issue in which AIG would waive restrictions on the assessment of additional tax related to the settlement of the underlying issues in those tax years. The litigation was stayed pending the outcome of the review process.

In October 2020, the review process concluded and the parties executed a binding settlement agreement on the underlying issues in those tax years. On October 22, 2020, the SDNY dismissed the case based upon the settlement reached between AIG and the government. The parties continue to review the related interest calculations based on the settlement agreement. We have adequate reserves for the potential liabilities that may result from these matters.

In September 2020, we received the IRS Revenue Agent Report containing agreed and disagreed issues for the audit of tax years 2007-2010. In October 2020, we filed a protest of the disagreed issues with IRS Appeals.

Accounting for Uncertainty in Income Taxes

At September 30, 2020 and December 31, 2019, our unrecognized tax benefits, excluding interest and penalties, were $4.8 billion. At September 30, 2020 and December 31, 2019, 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 $45 million and $43 million, respectively. Accordingly, at both September 30, 2020 and December 31, 2019, 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, 2020 and December 31, 2019, we had accrued liabilities of $2.6 billion and $2.4 billion, respectively, for the payment of interest (net of the federal benefit) and penalties. For the nine-month periods ended September 30, 2020 and 2019, we accrued expense (benefit) of $126 million and $181 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 $3.6 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.

In October 2020, AIG and the IRS entered into a binding settlement agreement related to tax years 1991-2006. Pursuant to relevant accounting guidance, developments that occur after the balance sheet date but before issuance of the financial statements should be recognized in the period in which they occur (i.e., the subsequent interim period, which in this case will be the three months ending December 31, 2020). Accordingly, no impact of this agreement is reflected in the current period ended September 30, 2020. We have adequate reserves for the potential liabilities that may result from these matters.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2020

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

16. Subsequent Events

announcement of intent to separate LIFE AND RETIREMENT

On October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG. No decisions have yet been made regarding the structure of the proposed separation. In addition, any separation transaction will be subject to the satisfaction of various conditions and approvals, including approval by the AIG Board of Directors, receipt of insurance and other required regulatory approvals, and satisfaction of any applicable requirements of the SEC. No assurance can be given regarding the form that a separation transaction may take or the specific terms or timing thereof, or that a separation will in fact occur.

Dividends Declared

On November 5, 2020, our Board of Directors declared a cash dividend on AIG Common Stock of $0.32 per share, payable on December 28, 2020 to shareholders of record on December 14, 2020. On November 5, 2020, our Board of Directors declared a cash dividend on AIG’s Series A Preferred Stock of $365.625 per share, payable on December 15, 2020 to holders of record on November 30, 2020.

BASIS OF PRESENTATION (Policies)

9 Months Ended

Sep. 30, 2020

BASIS OF PRESENTATION

Use of Estimates

 liability for unpaid losses and loss adjustment expenses (loss reserves);

 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;

 reinsurance assets;

 impairment charges, including impairments on other invested assets and goodwill;

 allowances for credit losses primarily on loans, available for sale fixed maturity securities, reinsurance assets and premiums and other receivables;

 liability for legal contingencies;

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

SUMMARY OF SIGNICFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Standards Adopted During 2020

Financial Instruments - Credit Losses

Three Months Ended September 30, 2020		Balance,		Cumulative Effect		Purchased Credit		Incremental Increase		Write-offs and		Balance,
		Beginning		Adjustment as of		Deteriorated Initial		(Decrease) Recognized		Other Changes		End of
(in millions)		of Period		January 1, 2020		Allowance		in Income		in the Allowance^(h)		Period
Securities available for sale^(a)	$	198	$	-	$	-	$	81	$	(43)	$	236
Mortgage and other loan receivables^(b)		794		-		-		3		-		797
Reinsurance recoverables (inclusive of
deposit accounted assets)^(c)		364		-		-		-		6		370
Premiums and other receivables^(d)		212		-		-		7		(4)		215
Contractual deductible recoverables^(e)		14		-		-		-		-		14
Commercial mortgage loan commitments^(f)		58		-		-		8		-		66
Total	$	1,640	$	-	$	-	$	99	$	(41)	$	1,698

Nine Months Ended September 30, 2020
Securities available for sale^(a)	$	-	$	-	$	33	$	310	$	(107)	$	236
Mortgage and other loan receivables^(b)		438		318		-		53		(12)		797
Reinsurance recoverables (inclusive of
deposit accounted assets)^(c)		151		224		-		5		(10)		370
Premiums and other receivables^(d)		178		34		-		9		(6)		215
Contractual deductible recoverables^(e)		-		14		-		-		-		14
Commercial mortgage loan commitments^(f)		-		51		-		14		1		66
Total	$	767	$	641	$	33	$	391	$	(134)	$	1,698
Secondary impacts to certain long-duration
insurance contracts^(g)				(27)
Tax impact				(127)
Total cumulative effect adjustment			$	487

The following presents the impact of the adoption of the standard on premiums and other receivables.

Premiums and other receivables — Credit Losses

For further information regarding the impacts of the adoption of this standard see Notes 4, 5, 6, 10 and 12 to the Condensed Consolidated Financial Statements.

Simplifying the Test for Goodwill Impairment

We adopted the standard on its effective date of January 1, 2020. The adoption of the standard did not have a material impact on our financial position, results of operations or cash flows.

Cloud Computing Arrangements

Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates

Future Application of Accounting Standards

Targeted Improvements to the Accounting for Long-Duration Contracts

Income Tax

Reference Rate Reform

Clarification of Accounting for Certain Equity Method Investments

Credit Losses

Financial Instruments - Credit Losses

Three Months Ended September 30, 2020		Balance,		Cumulative Effect		Purchased Credit		Incremental Increase		Write-offs and		Balance,
		Beginning		Adjustment as of		Deteriorated Initial		(Decrease) Recognized		Other Changes		End of
(in millions)		of Period		January 1, 2020		Allowance		in Income		in the Allowance^(h)		Period
Securities available for sale^(a)	$	198	$	-	$	-	$	81	$	(43)	$	236
Mortgage and other loan receivables^(b)		794		-		-		3		-		797
Reinsurance recoverables (inclusive of
deposit accounted assets)^(c)		364		-		-		-		6		370
Premiums and other receivables^(d)		212		-		-		7		(4)		215
Contractual deductible recoverables^(e)		14		-		-		-		-		14
Commercial mortgage loan commitments^(f)		58		-		-		8		-		66
Total	$	1,640	$	-	$	-	$	99	$	(41)	$	1,698

Nine Months Ended September 30, 2020
Securities available for sale^(a)	$	-	$	-	$	33	$	310	$	(107)	$	236
Mortgage and other loan receivables^(b)		438		318		-		53		(12)		797
Reinsurance recoverables (inclusive of
deposit accounted assets)^(c)		151		224		-		5		(10)		370
Premiums and other receivables^(d)		178		34		-		9		(6)		215
Contractual deductible recoverables^(e)		-		14		-		-		-		14
Commercial mortgage loan commitments^(f)		-		51		-		14		1		66
Total	$	767	$	641	$	33	$	391	$	(134)	$	1,698
Secondary impacts to certain long-duration
insurance contracts^(g)				(27)
Tax impact				(127)
Total cumulative effect adjustment			$	487

Premiums and other receivables — Credit Losses

For further information regarding the impacts of the adoption of this standard see Notes 4, 5, 6, 10 and 12 to the Condensed Consolidated Financial Statements.

Reinsurance — Credit Losses

Reinsurance Recoverable Allowance

The following table presents a rollforward of the reinsurance recoverable allowance:

	Three Months Ended						Nine Months Ended
	September 30, 2020						September 30, 2020
		General		Life and				General		Life and
(in millions)	Insurance		Retirement			Total	Insurance		Retirement			Total
Balance, beginning of period	$	305	$	59	$	364	$	111	$	40	$	151
Initial allowance upon CECL adoption		-		-		-		202		22		224
Current period provision for expected credit losses and disputes		(2)		2		-		-		5		5
Write-offs charged against the allowance for credit losses and
disputes		-		-		-		(5)		(5)		(10)
Other changes		5		1		6		-		-		-
Balance, end of period	$	308	$	62	$	370	$	308	$	62	$	370

There were no recoveries of credit losses previously written off for either of the three- and nine-month periods ended September 30, 2020.

Past-Due Status

Investments

Fixed Maturity Securities

Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

Evaluating Investments for AN ALLOWANCE FOR CREDIT LOSSES/OTHER-than-TEMPORARY IMPAIRMENTS

Fixed Maturity Securities

Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

 Current delinquency rates;

 Expected default rates and the timing of such defaults;

 Loss severity and the timing of any recovery; and

 Expected prepayment speeds.

When estimating future cash flows for corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers:

 Expected default rates and the timing of such defaults;

 Loss severity and the timing of any recovery; and

Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

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

Credit Impairments

Purchased Credit Deteriorated/Impaired Securities

Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

Current delinquency rates;Expected default rates and the timing of such defaults;Loss severity and the timing of any recovery; andExpected prepayment speeds.Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality.

Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

Methodology Used to Estimate the Allowance for Credit Losses

Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

Accrued interest is excluded from the measurement of the allowance for credit losses and accrued interest is reversed through interest income once a loan is placed on nonaccrual.

When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance.

Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020

Reinsurance

7. Reinsurance

Sale of Fortitude Holdings

There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets as of September 30, 2020:

September 30, 2020		Carrying		Fair
(in millions)		Value		Value	Corresponding Accounting Policy
Fixed maturity securities - available for sale^(a)	$	35,775	$	35,775	Fair value through other comprehensive income
Fixed maturity securities - fair value option		204		204	Fair value through net investment income
Commercial mortgage loans		3,577		3,866	Amortized cost
Real estate investments		366		595	Amortized cost
Private equity funds / hedge funds		992		992	Fair value through net investment income
Policy loans		423		423	Amortized cost
Derivative assets, net^(b)		-		-	Fair value through realized capital gains (losses)
Other		687		687	Amortized cost
Total	$	42,024	$	42,542

(b)The derivative assets have been presented net of collateral. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $471 million as of September 30, 2020. These derivative assets are fully collateralized.

The impact of the funds withheld arrangements with Fortitude Re for the period post June 2, 2020 deconsolidation was as follows:

	Three Months Ended		Nine Months Ended
(in millions)	September 30, 2020		September 30, 2020
Net underwriting income	$	-	$	-
Net investment income - Fortitude Re funds withheld assets		458		574
Net realized capital losses on Fortitude Re funds withheld assets:
Net realized capital gains - Fortitude Re funds withheld assets		32		128
Net realized capital losses - Fortitude Re embedded derivatives		(656)		(1,493)
Net realized capital losses on Fortitude Re funds withheld assets		(624)		(1,365)
Loss from continuing operations before income tax benefit		(166)		(791)
Income tax benefit^(a)		(35)		(166)
Net loss		(131)		(625)
Change in unrealized appreciation of all other investments^(a)		132		570
Comprehensive income (loss)	$	1	$	(55)

(a) The income tax expense (benefit) and the tax impact in accumulated other comprehensive income was computed using AIG’s U.S. statutory tax rate of 21 percent.

Reinsurance — Credit Losses

Liability for unpaid claims and claims adjustment expense

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

Disclosure of accounting policy for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security. Includes, but is not limited to, methodology used to estimate allowance for credit loss, how writeoff of uncollectible amount is recognized, and determination of past due status and nonaccrual status.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2020

Rollforward of allowance for credit losses related to the adoption of the Financial Instruments Credit Losses Standard

Three Months Ended September 30, 2020		Balance,		Cumulative Effect		Purchased Credit		Incremental Increase		Write-offs and		Balance,
		Beginning		Adjustment as of		Deteriorated Initial		(Decrease) Recognized		Other Changes		End of
(in millions)		of Period		January 1, 2020		Allowance		in Income		in the Allowance^(h)		Period
Securities available for sale^(a)	$	198	$	-	$	-	$	81	$	(43)	$	236
Mortgage and other loan receivables^(b)		794		-		-		3		-		797
Reinsurance recoverables (inclusive of
deposit accounted assets)^(c)		364		-		-		-		6		370
Premiums and other receivables^(d)		212		-		-		7		(4)		215
Contractual deductible recoverables^(e)		14		-		-		-		-		14
Commercial mortgage loan commitments^(f)		58		-		-		8		-		66
Total	$	1,640	$	-	$	-	$	99	$	(41)	$	1,698

Nine Months Ended September 30, 2020
Securities available for sale^(a)	$	-	$	-	$	33	$	310	$	(107)	$	236
Mortgage and other loan receivables^(b)		438		318		-		53		(12)		797
Reinsurance recoverables (inclusive of
deposit accounted assets)^(c)		151		224		-		5		(10)		370
Premiums and other receivables^(d)		178		34		-		9		(6)		215
Contractual deductible recoverables^(e)		-		14		-		-		-		14
Commercial mortgage loan commitments^(f)		-		51		-		14		1		66
Total	$	767	$	641	$	33	$	391	$	(134)	$	1,698
Secondary impacts to certain long-duration
insurance contracts^(g)				(27)
Tax impact				(127)
Total cumulative effect adjustment			$	487

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2020

SEGMENT INFORMATION

Schedule of continuing operations by operating segment including reconciling items

Three Months Ended September 30,	2020				2019
				Adjusted				Adjusted
		Total		Pre-tax		Total		Pre-tax
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
General Insurance
North America	$	3,417	$	399	$	3,878	$	435
International		3,275		17		3,537		72
Total General Insurance		6,692		416		7,415		507
Life and Retirement
Individual Retirement		1,480		533		1,416		387
Group Retirement		758		338		726		203
Life Insurance		1,076		5		1,037		(7)
Institutional Markets		556		99		654		63
Total Life and Retirement		3,870		975		3,833		646
Other Operations		128		(426)		139		(454)
Legacy Portfolio		214		89		751		93
AIG Consolidation and elimination		(148)		(136)		(81)		(46)
Total AIG Consolidated adjusted revenues and adjusted pre-tax income		10,756		918		12,057		746
Reconciling items from adjusted pre-tax income to pre-tax income:
Changes in fair value of securities used to hedge guaranteed
living benefits		14		15		25		12
Changes in benefit reserves and DAC, VOBA and SIA related to net
realized capital gains (losses)		-		78		-		(65)
Changes in the fair value of equity securities		119		119		(51)		(51)
Other income (expense) - net		23		-		16		-
Gain on extinguishment of debt		-		2		-		-
Net investment income on Fortitude Re funds withheld assets^(a)		458		458		-		-
Net realized capital gains (losses) on Fortitude Re funds withheld assets^(a)		32		32		-		-
Net realized capital gains (losses) on Fortitude Re funds withheld embedded
derivative^(a)		(656)		(656)		-		-
Net realized capital gains (losses)^(b)		(525)		(514)		867		881
Loss from divested businesses		-		(24)		-		(9)
Non-operating litigation reserves and settlements		-		(1)		-		(5)
Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		30		-		59
Net loss reserve discount benefit (charge)		-		31		-		(235)
Integration and transaction costs associated with acquired businesses		-		(1)		-		(3)
Restructuring and other costs		-		(100)		-		(67)
Non-recurring costs related to regulatory or accounting changes		-		(19)		-		(3)
Revenues and Pre-tax income	$	10,221	$	368	$	12,914	$	1,260

Nine Months Ended September 30,	2020				2019
				Adjusted				Adjusted
		Total		Pre-Tax		Total		Pre-Tax
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
General Insurance
North America	$	9,908	$	813	$	12,001	$	2,087
International		9,706		279		10,743		668
Total General Insurance		19,614		1,092		22,744		2,755
Life and Retirement
Individual Retirement		4,183		1,389		4,233		1,483
Group Retirement		2,164		695		2,225		728
Life Insurance		3,280		51		3,264		195
Institutional Markets		2,964		295		2,143		213
Total Life and Retirement		12,591		2,430		11,865		2,619
Other Operations		305		(1,436)		422		(1,256)
Legacy Portfolio		1,197		(22)		2,197		324
AIG Consolidation and elimination		(262)		(171)		(257)		(172)
Total AIG Consolidated adjusted revenues and adjusted pre-tax income		33,445		1,893		36,971		4,270
Reconciling items from adjusted pre-tax income to pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed
living benefits		42		24		214		183
Changes in benefit reserves and DAC, VOBA and SIA related to net
realized capital gains (losses)		-		(205)		-		(39)
Changes in the fair value of equity securities		(16)		(16)		6		6
Other income (expense) - net		46		-		27		-
Loss on extinguishment of debt		-		(15)		-		(13)
Net investment income on Fortitude Re funds withheld assets^(a)		574		574		-		-
Net realized capital gains (losses) on Fortitude Re funds withheld assets^(a)		128		128		-		-
Net realized capital gains (losses) on Fortitude Re funds withheld embedded
derivative^(a)		(1,493)		(1,493)		-		-
Net realized capital gains^(b)		1,328		1,369		713		758
loss from divested businesses		-		(8,652)		-		(4)
Non-operating litigation reserves and settlements		6		5		-		(6)
Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		71		-		211
Net loss reserve discount charge		-		(41)		-		(920)
Integration and transaction costs associated with acquired businesses		-		(7)		-		(16)
Restructuring and other costs		-		(324)		-		(174)
Non-recurring costs related to regulatory or accounting changes		-		(46)		-		(5)
Revenues and Pre-tax income (loss)	$	34,060	$	(6,735)	$	37,931	$	4,251

(a) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2020

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

September 30, 2020							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	$	33	$	5,102	$	-	$	-	$	-	$	5,135
Obligations of states, municipalities and political subdivisions		-		13,990		2,183		-		-		16,173
Non-U.S. governments		41		15,126		7		-		-		15,174
Corporate debt		-		159,991		2,115		-		-		162,106
RMBS		-		20,759		12,655		-		-		33,414
CMBS		-		14,796		981		-		-		15,777
CDO/ABS		-		8,833		9,353		-		-		18,186
Total bonds available for sale		74		238,597		27,294		-		-		265,965
Other bond securities:
U.S. government and government sponsored entities		-		1,870		-		-		-		1,870
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		12		-		-		-		12
RMBS		-		320		168		-		-		488
CMBS		-		274		48		-		-		322
CDO/ABS		-		168		2,555		-		-		2,723
Total other bond securities		-		2,644		2,771		-		-		5,415
Equity securities		827		18		26		-		-		871
Other invested assets^(b)		-		94		1,583		-		-		1,677
Derivative assets:
Interest rate contracts		3		5,051		-		-		-		5,054
Foreign exchange contracts		-		1,585		3		-		-		1,588
Equity contracts		6		841		110		-		-		957
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		13		-		-		13
Counterparty netting and cash collateral		-		-		-		(3,695)		(3,129)		(6,824)
Total derivative assets		9		7,477		127		(3,695)		(3,129)		789
Short-term investments		3,195		4,019		-		-		-		7,214
Other assets		-		-		112		-		-		112
Separate account assets		88,023		4,013		-		-		-		92,036
Total	$	92,128	$	256,862	$	31,913	$	(3,695)	$	(3,129)	$	374,079
Liabilities:
Policyholder contract deposits	$	-	$	-	$	9,322	$	-	$	-	$	9,322
Derivative liabilities:
Interest rate contracts		-		4,559		-		-		-		4,559
Foreign exchange contracts		-		619		-		-		-		619
Equity contracts		12		84		5		-		-		101
Credit contracts		-		24		45		-		-		69
Other contracts		-		-		7		-		-		7
Counterparty netting and cash collateral		-		-		-		(3,695)		(1,060)		(4,755)
Total derivative liabilities		12		5,286		57		(3,695)		(1,060)		600
Fortitude Re funds withheld payable		-		-		5,136		-		-		5,136
Other liabilities		-		-		-		-		-		-
Long-term debt		-		2,169		-		-		-		2,169
Total	$	12	$	7,455	$	14,515	$	(3,695)	$	(1,060)	$	17,227

December 31, 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	$	135	$	5,245	$	-	$	-	$	-	$	5,380
Obligations of states, municipalities and political subdivisions		-		13,197		2,121		-		-		15,318
Non-U.S. governments		60		14,809		-		-		-		14,869
Corporate debt		-		147,973		1,663		-		-		149,636
RMBS		-		19,397		13,408		-		-		32,805
CMBS		-		13,377		1,053		-		-		14,430
CDO/ABS		-		10,962		7,686		-		-		18,648
Total bonds available for sale		195		224,960		25,931		-		-		251,086
Other bond securities:
U.S. government and government sponsored entities		-		2,121		-		-		-		2,121
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		18		-		-		-		18
RMBS		-		346		143		-		-		489
CMBS		-		272		50		-		-		322
CDO/ABS		-		187		3,545		-		-		3,732
Total other bond securities		-		2,944		3,738		-		-		6,682
Equity securities		756		77		8		-		-		841
Other invested assets^(b)		-		86		1,192		-		-		1,278
Derivative assets:
Interest rate contracts		1		3,199		-		-		-		3,200
Foreign exchange contracts		-		1,034		6		-		-		1,040
Equity contracts		5		593		171		-		-		769
Credit contracts		-		-		3		-		-		3
Other contracts		-		-		14		-		-		14
Counterparty netting and cash collateral		-		-		-		(2,427)		(1,806)		(4,233)
Total derivative assets		6		4,826		194		(2,427)		(1,806)		793
Short-term investments		2,299		3,044		-		-		-		5,343
Other assets		57		2,212		89		-		-		2,358
Separate account assets		89,069		4,203		-		-		-		93,272
Total	$	92,382	$	242,352	$	31,152	$	(2,427)	$	(1,806)	$	361,653
Liabilities:
Policyholder contract deposits	$	-	$	-	$	6,910	$	-	$	-	$	6,910
Derivative liabilities:
Interest rate contracts		4		2,745		-		-		-		2,749
Foreign exchange contracts		-		1,025		-		-		-		1,025
Equity contracts		8		111		20		-		-		139
Credit contracts		-		24		65		-		-		89
Other contracts		-		-		7		-		-		7
Counterparty netting and cash collateral		-		-		-		(2,427)		(527)		(2,954)
Total derivative liabilities		12		3,905		92		(2,427)		(527)		1,055
Other liabilities		-		45		-		-		-		45
Long-term debt		-		2,062		-		-		-		2,062
Total	$	12	$	6,012	$	7,002	$	(2,427)	$	(527)	$	10,072

(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 $5.5 billion as of September 30, 2020 and December 31, 2019, respectively.

Changes in Level 3 recurring fair value measurements (Assets)

				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				Gains				Issuances										(Losses) Included		Income (Loss) for
		Fair Value	(Losses)			Other		and		Gross		Gross			Fair Value			in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses		of Period			at End of Period		at End of Period
Three Months Ended September 30, 2020
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,279	$	3	$	(4)	$	(30)	$	-	$	(65)	$	-	$	2,183	$	-	$	-
Non-U.S. governments		5		-		1		-		1		-		-		7		-		-
Corporate debt		1,900		(33)		52		(25)		452		(231)		-		2,115		-		38
RMBS		12,678		192		301		(412)		3		(107)		-		12,655		-		335
CMBS		1,149		3		36		(11)		-		(196)		-		981		-		27
CDO/ABS		9,461		5		180		(174)		125		(244)		-		9,353		-		172
Total bonds available for sale^(a)		27,472		170		566		(652)		581		(843)		-		27,294		-		572
Other bond securities:
RMBS		168		16		-		(16)		-		-		-		168		4		-
CMBS		47		1		-		-		-		-		-		48		1		-
CDO/ABS		2,531		124		-		(100)		-		-		-		2,555		34		-
Total other bond securities		2,746		141		-		(116)		-		-		-		2,771		39		-
Equity securities		43		-		2		1		7		(27)		-		26		1		-
Other invested assets		1,486		74		(2)		25		-		-		-		1,583		-		-
Other assets		111		-		-		2		-		-		(1)		112		-		-
Total	$	31,858	$	385	$	566	$	(740)	$	588	$	(870)	$	(1)	$	31,786	$	40	$	572
				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				(Gains)				Issuances										(Losses) Included		Income (Loss) for
		Fair Value	Losses			Other		and		Gross		Gross			Fair Value			in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses		of Period			at End of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	9,233	$	19	$	-	$	70	$	-	$	-	$	-	$	9,322	$	273	$	-
Derivative liabilities, net:
Interest rate contracts		-		-		-		-		-		-		-		-		-		-
Foreign exchange contracts		(1)		(2)		-		-		-		-		-		(3)		2		-
Equity contracts		(53)		9		-		(65)		(1)		5		-		(105)		-		-
Credit contracts		45		1		-		(2)		-		-		-		44		(7)		-
Other contracts		(3)		(19)		-		16		-		-		-		(6)		18		-
Total derivative liabilities, net^(b)		(12)		(11)		-		(51)		(1)		5		-		(70)		13		-
Fortitude Re funds withheld
payable		4,510		656		-		(30)		-		-		-		5,136		(256)		-
Total	$	13,731	$	664	$	-	$	(11)	$	(1)	$	5	$	-	$	14,388	$	30	$	-

				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				Gains				Issuances										(Losses) Included		Income (Loss) for
		Fair Value		(Losses)		Other		and		Gross		Gross			Fair Value			in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses		of Period			at End of Period		at End of Period
Nine Months Ended September 30, 2020
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,121	$	8	$	195	$	127	$	27	$	(295)	$	-	$	2,183	$	-	$	193
Non-U.S. governments		-		-		1		5		7		(6)		-		7		-		-
Corporate debt		1,663		(101)		43		95		1,074		(659)		-		2,115		-		59
RMBS		13,408		532		(375)		(806)		29		(133)		-		12,655		-		(213)
CMBS		1,053		14		70		17		23		(196)		-		981		-		66
CDO/ABS		7,686		25		55		(19)		2,062		(456)		-		9,353		-		38
Total bonds available for sale^(a)		25,931		478		(11)		(581)		3,222		(1,745)		-		27,294		-		143
Other bond securities:
RMBS		143		16		-		9		-		-		-		168		3		-
CMBS		50		-		-		(2)		-		-		-		48		(1)		-
CDO/ABS		3,545		225		-		(1,215)		-		-		-		2,555		25		-
Total other bond securities		3,738		241		-		(1,208)		-		-		-		2,771		27		-
Equity securities		8		(1)		3		11		33		(28)		-		26		1		-
Other invested assets		1,192		11		(2)		232		150		-		-		1,583		(13)		-
Other assets		89		-		-		61		-		-		(38)		112		-		-
Total	$	30,958	$	729	$	(10)	$	(1,485)	$	3,405	$	(1,773)	$	(38)	$	31,786	$	15	$	143
				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				(Gains)				Issuances										(Losses) Included		Income (Loss) for
		Fair Value		Losses		Other		and		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses			of Period		at End of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	6,910	$	2,250	$	-	$	162	$	-	$	-	$	-	$	9,322	$	(1,436)	$	-
Derivative liabilities, net:
Interest rate contracts		-		(1)		-		1		-		-		-		-		1		-
Foreign exchange contracts		(6)		2		-		1		-		-		-		(3)		2		-
Equity contracts		(151)		19		-		23		(1)		5		-		(105)		(62)		-
Credit contracts		62		(59)		-		41		-		-		-		44		8		-
Other contracts		(7)		(46)		-		47		-		-		-		(6)		45		-
Total derivative liabilities, net^(b)		(102)		(85)		-		113		(1)		5		-		(70)		(6)		-
Fortitude Re funds withheld
payable		-		1,493		-		(30)		-		-		3,673		5,136		(919)		-
Total	$	6,808	$	3,658	$	-	$	245	$	(1)	$	5	$	3,673	$	14,388	$	(2,361)	$	-

				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out	Businesses			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:
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)
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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		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^(b)		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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out	Businesses			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:
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
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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		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^(b)		153		(113)		-		(47)		-		-		-		(7)		83
Total	$	4,269	$	2,287	$	-	$	603	$	-	$	-	$	-	$	7,159	$	(1,961)

(a) As a result of the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020, credit losses are included in net realized and unrealized (gains) losses included in income.

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

Changes in Level 3 recurring fair value measurements (Liabilities)

				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				Gains				Issuances										(Losses) Included		Income (Loss) for
		Fair Value	(Losses)			Other		and		Gross		Gross			Fair Value			in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses		of Period			at End of Period		at End of Period
Three Months Ended September 30, 2020
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,279	$	3	$	(4)	$	(30)	$	-	$	(65)	$	-	$	2,183	$	-	$	-
Non-U.S. governments		5		-		1		-		1		-		-		7		-		-
Corporate debt		1,900		(33)		52		(25)		452		(231)		-		2,115		-		38
RMBS		12,678		192		301		(412)		3		(107)		-		12,655		-		335
CMBS		1,149		3		36		(11)		-		(196)		-		981		-		27
CDO/ABS		9,461		5		180		(174)		125		(244)		-		9,353		-		172
Total bonds available for sale^(a)		27,472		170		566		(652)		581		(843)		-		27,294		-		572
Other bond securities:
RMBS		168		16		-		(16)		-		-		-		168		4		-
CMBS		47		1		-		-		-		-		-		48		1		-
CDO/ABS		2,531		124		-		(100)		-		-		-		2,555		34		-
Total other bond securities		2,746		141		-		(116)		-		-		-		2,771		39		-
Equity securities		43		-		2		1		7		(27)		-		26		1		-
Other invested assets		1,486		74		(2)		25		-		-		-		1,583		-		-
Other assets		111		-		-		2		-		-		(1)		112		-		-
Total	$	31,858	$	385	$	566	$	(740)	$	588	$	(870)	$	(1)	$	31,786	$	40	$	572
				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				(Gains)				Issuances										(Losses) Included		Income (Loss) for
		Fair Value	Losses			Other		and		Gross		Gross			Fair Value			in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses		of Period			at End of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	9,233	$	19	$	-	$	70	$	-	$	-	$	-	$	9,322	$	273	$	-
Derivative liabilities, net:
Interest rate contracts		-		-		-		-		-		-		-		-		-		-
Foreign exchange contracts		(1)		(2)		-		-		-		-		-		(3)		2		-
Equity contracts		(53)		9		-		(65)		(1)		5		-		(105)		-		-
Credit contracts		45		1		-		(2)		-		-		-		44		(7)		-
Other contracts		(3)		(19)		-		16		-		-		-		(6)		18		-
Total derivative liabilities, net^(b)		(12)		(11)		-		(51)		(1)		5		-		(70)		13		-
Fortitude Re funds withheld
payable		4,510		656		-		(30)		-		-		-		5,136		(256)		-
Total	$	13,731	$	664	$	-	$	(11)	$	(1)	$	5	$	-	$	14,388	$	30	$	-

				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				Gains				Issuances										(Losses) Included		Income (Loss) for
		Fair Value		(Losses)		Other		and		Gross		Gross			Fair Value			in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses		of Period			at End of Period		at End of Period
Nine Months Ended September 30, 2020
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,121	$	8	$	195	$	127	$	27	$	(295)	$	-	$	2,183	$	-	$	193
Non-U.S. governments		-		-		1		5		7		(6)		-		7		-		-
Corporate debt		1,663		(101)		43		95		1,074		(659)		-		2,115		-		59
RMBS		13,408		532		(375)		(806)		29		(133)		-		12,655		-		(213)
CMBS		1,053		14		70		17		23		(196)		-		981		-		66
CDO/ABS		7,686		25		55		(19)		2,062		(456)		-		9,353		-		38
Total bonds available for sale^(a)		25,931		478		(11)		(581)		3,222		(1,745)		-		27,294		-		143
Other bond securities:
RMBS		143		16		-		9		-		-		-		168		3		-
CMBS		50		-		-		(2)		-		-		-		48		(1)		-
CDO/ABS		3,545		225		-		(1,215)		-		-		-		2,555		25		-
Total other bond securities		3,738		241		-		(1,208)		-		-		-		2,771		27		-
Equity securities		8		(1)		3		11		33		(28)		-		26		1		-
Other invested assets		1,192		11		(2)		232		150		-		-		1,583		(13)		-
Other assets		89		-		-		61		-		-		(38)		112		-		-
Total	$	30,958	$	729	$	(10)	$	(1,485)	$	3,405	$	(1,773)	$	(38)	$	31,786	$	15	$	143
				Net																Changes in
				Realized																Unrealized Gains
				and				Purchases,										Changes in		(Losses) Included in
				Unrealized				Sales,										Unrealized Gains		Other Comprehensive
				(Gains)				Issuances										(Losses) Included		Income (Loss) for
		Fair Value		Losses		Other		and		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive		Settlements,		Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out	Businesses			of Period		at End of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	6,910	$	2,250	$	-	$	162	$	-	$	-	$	-	$	9,322	$	(1,436)	$	-
Derivative liabilities, net:
Interest rate contracts		-		(1)		-		1		-		-		-		-		1		-
Foreign exchange contracts		(6)		2		-		1		-		-		-		(3)		2		-
Equity contracts		(151)		19		-		23		(1)		5		-		(105)		(62)		-
Credit contracts		62		(59)		-		41		-		-		-		44		8		-
Other contracts		(7)		(46)		-		47		-		-		-		(6)		45		-
Total derivative liabilities, net^(b)		(102)		(85)		-		113		(1)		5		-		(70)		(6)		-
Fortitude Re funds withheld
payable		-		1,493		-		(30)		-		-		3,673		5,136		(919)		-
Total	$	6,808	$	3,658	$	-	$	245	$	(1)	$	5	$	3,673	$	14,388	$	(2,361)	$	-

				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out	Businesses			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:
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)
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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		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^(b)		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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out	Businesses			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:
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
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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		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^(b)		153		(113)		-		(47)		-		-		-		(7)		83
Total	$	4,269	$	2,287	$	-	$	603	$	-	$	-	$	-	$	7,159	$	(1,961)

(a) As a result of the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020, credit losses are included in net realized and unrealized (gains) losses included in income.

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

Schedule of net realized and unrealized gains and losses related to Level 3 items

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended September 30, 2020
Assets:
Bonds available for sale^*	$	177	$	(7)	$	-	$	170
Other bond securities		143		(2)		-		141
Equity securities		-		-		-		-
Other invested assets		74		-		-		74
Nine Months Ended September 30, 2020
Assets:
Bonds available for sale^*	$	557	$	(79)	$	-	$	478
Other bond securities		(25)		266		-		241
Equity securities		-		(1)		-		(1)
Other invested assets		11		-		-		11
Three Months Ended September 30, 2019
Assets:
Bonds available for sale	$	164	$	(24)	$	-	$	140
Other bond securities		110		15		-		125
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
Other invested assets		25		(1)		-		24

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
Three Months Ended September 30, 2020
Liabilities:
Policyholder contract deposits	$	-	$	19	$	-	$	19
Derivative liabilities, net		-		5		(16)		(11)
Fortitude Re funds withheld payable		-		656		-		656
Nine Months Ended September 30, 2020
Liabilities:
Policyholder contract deposits	$	-	$	2,250	$	-	$	2,250
Derivative liabilities, net		-		(41)		(44)		(85)
Fortitude Re funds withheld payable		-		1,493		-		1,493
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)

*As a result of the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020, credit losses are included in net realized capital gains (losses).

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, 2020
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	34	$	(18)	$	(46)	$	(30)
Non-U.S. governments		-		-		-		-
Corporate debt		23		(2)		(46)		(25)
RMBS		182		-		(594)		(412)
CMBS		2		(10)		(3)		(11)
CDO/ABS		234		(78)		(330)		(174)
Total bonds available for sale		475		(108)		(1,019)		(652)
Other bond securities:
RMBS		-		-		(16)		(16)
CMBS		-		-		-		-
CDO/ABS		-		-		(100)		(100)
Total other bond securities		-		-		(116)		(116)
Equity securities		1		-		-		1
Other invested assets		25		-		-		25
Other assets		-		-		2		2
Total assets	$	501	$	(108)	$	(1,133)	$	(740)
Liabilities:
Policyholder contract deposits	$	-	$	170	$	(100)	$	70
Derivative liabilities, net		(19)		-		(32)		(51)
Fortitude Re funds withheld payable		-		-		(30)		(30)
Other liabilities		-		-		-		-
Total liabilities	$	(19)	$	170	$	(162)	$	(11)
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)
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

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements^(a)		Settlements, Net^(a)
Nine Months Ended September 30, 2020
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	201	$	(20)	$	(54)	$	127
Non-U.S. governments		5		-		-		5
Corporate debt		256		(7)		(154)		95
RMBS		883		-		(1,689)		(806)
CMBS		56		(17)		(22)		17
CDO/ABS		715		(103)		(631)		(19)
Total bonds available for sale		2,116		(147)		(2,550)		(581)
Other bond securities:
RMBS		37		-		(28)		9
CMBS		-		-		(2)		(2)
CDO/ABS		35		(579)		(671)		(1,215)
Total other bond securities		72		(579)		(701)		(1,208)
Equity securities		11		-		-		11
Other invested assets		277		-		(45)		232
Other assets		55		-		6		61
Total assets	$	2,531	$	(726)	$	(3,290)	$	(1,485)
Liabilities:
Policyholder contract deposits	$	-	$	514	$	(352)	$	162
Derivative liabilities, net		(43)		8		148		113
Fortitude Re funds withheld payable		-		-		(30)		(30)
Other liabilities		-		-		-		-
Total liabilities	$	(43)	$	522	$	(234)	$	245
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)
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

(a)There were no issuances during the three- and nine-month periods ended September 30, 2020 and 2019.

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	September 30,		Valuation		Range
(in millions)	2020		Technique	Unobservable Input^(b)	(Weighted Average)^(c)
Assets:

Obligations of states, municipalities
and political subdivisions	$	1,731	Discounted cash flow	Yield	2.87% - 3.39% (3.13%)

Corporate debt		1,672	Discounted cash flow	Yield	2.99% - 6.03% (4.51%)

RMBS^(a)		11,810	Discounted cash flow	Constant prepayment rate	3.81% - 12.15% (7.98%)
				Loss severity	28.62% - 77.94% (53.28%)
				Constant default rate	1.30% - 6.14% (3.72%)
				Yield	1.74% - 4.41% (3.08%)

CDO/ABS^(a)		8,704	Discounted cash flow	Yield	2.01% - 5.53% (3.77%)

CMBS		561	Discounted cash flow	Yield	0.78% - 5.68% (3.23%)
Liabilities^(d):

Embedded derivatives within
Policyholder contract deposits:

Variable annuity guaranteed minimum withdrawal benefits (GMWB)		3,832	Discounted cash flow	Equity volatility	7.15% - 56.25%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	50.00% - 143.00%
				Mortality multiplier^(e)	38.00% - 147.00%
				Utilization	90.00% - 100.00%
				Equity / interest rate correlation	20.00% - 40.00%
				NPA^(f)	0.14% - 2.07%

Index annuities including certain GMWB		4,881	Discounted cash flow	Lapse rate	0.38% - 50.00%
				Mortality multiplier^(e)	24.00% - 180.00%
				Utilization^(g)	80.00% - 100.00%
				Option budget	0.00% - 4.00%
				NPA^(f)	0.14% - 2.07%

Indexed life		577	Discounted cash flow	Base lapse rate	0.00% - 37.97%
				Mortality rate	0.00% - 100.00%
				NPA^(f)	0.14% - 2.07%

		Fair Value at
		December 31,	Valuation		Range
(in millions)		2019	Technique	Unobservable Input^(b)	(Weighted Average)^(c)
Assets:

Obligations of states, municipalities
and political subdivisions	$	1,633	Discounted cash flow	Yield	3.35% - 3.95% (3.65%)

Corporate debt		1,087	Discounted cash flow	Yield	3.48% - 6.22% (4.85%)

RMBS^(a)		11,746	Discounted cash flow	Constant prepayment rate	4.00% - 12.89% (8.44%)
				Loss severity	33.68% - 76.91% (55.29%)
				Constant default rate	1.68% - 6.17% (3.93%)
				Yield	2.52% - 4.53% (3.52%)

CDO/ABS^(a)		6,025	Discounted cash flow	Yield	2.92% - 4.91% (3.91%)

CMBS		476	Discounted cash flow	Yield	2.77% - 5.18% (3.97%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

GMWB		2,474	Discounted cash flow	Equity volatility	6.15% - 48.85%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	50.00% - 143.00%
				Mortality multiplier^(d)	38.00% - 147.00%
				Utilization	90.00% - 100.00%
				Equity / interest rate correlation	20.00% - 40.00%
				NPA^(e)	0.12% - 1.53%

Index annuities		3,895	Discounted cash flow	Lapse rate	0.31% - 50.00%
				Mortality multiplier^(d)	24.00% - 180.00%
				Option budget	1.00% - 4.00%
				NPA^(e)	0.12% - 1.53%

Indexed life		510	Discounted cash flow	Base lapse rate	0.00% - 37.97%
				Mortality rate	0.00% - 100.00%
				NPA^(e)	0.12% - 1.53%

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

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

(f) The non-performance risk adjustment (NPA) applied as a spread over risk-free curve for discounting.

Investments in certain entities carried at fair value using net asset value per share

		September 30, 2020				December 31, 2019
			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	$	1,382	$	1,697	$	1,189	$	1,543

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		429		450		400		290

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		143		166		111		155

Growth equity	Funds that make investments in established companies for the purpose of growing their businesses		523		54		422		57

Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		349		282		325		414

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		821		441		773		206
Total private equity funds			3,647		3,090		3,220		2,665
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		353		-		727		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		364		-		539		-

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		751		-		894		-

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		272		1		169		1
Total hedge funds			1,740		1		2,329		1
Total		$	5,387	$	3,091	$	5,549	$	2,666

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)		2020		2019		2020		2019
Assets:
Bonds	$	171	$	333	$	485	$	971
Alternative investments^(a)		407		92		242		473
Liabilities:
Long-term debt^(b)		18		(75)		(203)		(228)
Total gain	$	596	$	350	$	524	$	1,216

(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, 2020						December 31, 2019
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Liabilities:
Long-term debt^*	$	2,169	$	1,506	$	663	$	2,062	$	1,502	$	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		2020		2019		2020		2019
September 30, 2020
Other investments	$	-	$	-	$	268	$	268	$	12	$	7	$	60	$	65
Other assets		-		-		31		31		2		45		14		62
Total	$	-	$	-	$	299	$	299	$	14	$	52	$	74	$	127
December 31, 2019
Other investments	$	-	$	-	$	329	$	329
Other assets		-		-		1		1
Total	$	-	$	-	$	330	$	330

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, 2020
Assets:
Mortgage and other loans receivable	$	-	$	99	$	48,118	$	48,217	$	45,590
Other invested assets		-		798		6		804		804
Short-term investments		-		13,434		-		13,434		13,434
Cash		3,191		-		-		3,191		3,191
Other assets		188		14		-		202		202
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		224		143,873		144,097		129,170
Fortitude Re funds withheld payable		-		-		37,407		37,407		37,407
Other liabilities		-		3,823		-		3,823		3,823
Long-term debt and debt of consolidated investment entities		-		31,391		8,281		39,672		36,068
Separate account liabilities - investment contracts		-		87,564		-		87,564		87,564
December 31, 2019
Assets:
Mortgage and other loans receivable	$	-	$	101	$	48,904	$	49,005	$	46,984
Other invested assets		-		735		6		741		742
Short-term investments		-		7,887		-		7,887		7,887
Cash		2,856		-		-		2,856		2,856
Other assets		291		20		-		311		311
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		255		132,991		133,246		126,137
Other liabilities		15		3,048		-		3,063		3,063
Long-term debt and debt of consolidated investment entities		-		27,024		8,883		35,907		33,288
Separate account liabilities - investment contracts		-		88,770		-		88,770		88,770

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2020

Investments [Line Items]

Amortized cost or cost and fair value of available for sale securities

		Amortized		Allowance		Gross		Gross
		Cost or		for Credit		Unrealized		Unrealized		Fair
(in millions)		Cost		Losses^(a)		Gains		Losses		Value
September 30, 2020
Bonds available for sale:
U.S. government and government sponsored entities	$	4,319	$	-	$	840	$	(24)	$	5,135
Obligations of states, municipalities and political subdivisions		14,027		-		2,162		(16)		16,173
Non-U.S. governments		14,240		(5)		1,046		(107)		15,174
Corporate debt		146,595		(206)		16,897		(1,180)		162,106
Mortgage-backed, asset-backed and collateralized:
RMBS		30,427		(24)		3,088		(77)		33,414
CMBS		14,841		(1)		1,017		(80)		15,777
CDO/ABS		18,021		-		390		(225)		18,186
Total mortgage-backed, asset-backed and collateralized		63,289		(25)		4,495		(382)		67,377
Total bonds available for sale^(c)	$	242,470	$	(236)	$	25,440	$	(1,709)	$	265,965

										Other-Than-
		Amortized		Gross		Gross				Temporary
		Cost or		Unrealized		Unrealized		Fair		Impairments
(in millions)		Cost		Gains		Losses		Value		in AOCI^(b)
December 31, 2019
Bonds available for sale:
U.S. government and government sponsored entities	$	5,108	$	316	$	(44)	$	5,380	$	-
Obligations of states, municipalities and political subdivisions		13,960		1,390		(32)		15,318		-
Non-U.S. governments		14,042		884		(57)		14,869		(18)
Corporate debt		138,046		12,090		(500)		149,636		7
Mortgage-backed, asset-backed and collateralized:
RMBS		29,802		3,067		(64)		32,805		1,149
CMBS		13,879		576		(25)		14,430		34
CDO/ABS		18,393		348		(93)		18,648		14
Total mortgage-backed, asset-backed and collateralized		62,074		3,991		(182)		65,883		1,197
Total bonds available for sale^(c)	$	233,230	$	18,671	$	(815)	$	251,086	$	1,186

(c) At September 30, 2020 and December 31, 2019, bonds available for sale held by us that were below investment grade or not rated totaled $27.5 billion and $27.8 billion, respectively.

Securities available for sale in a 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, 2020
Bonds available for sale:
U.S. government and government sponsored entities	$	366	$	24	$	-	$	-	$	366	$	24
Obligations of states, municipalities and political
subdivisions		419		11		103		5		522		16
Non-U.S. governments		1,756		56		291		51		2,047		107
Corporate debt		20,936		872		1,096		110		22,032		982
RMBS		3,594		43		163		17		3,757		60
CMBS		2,068		71		185		9		2,253		80
CDO/ABS		5,939		144		3,153		81		9,092		225
Total bonds available for sale	$	35,078	$	1,221	$	4,991	$	273	$	40,069	$	1,494

	Less than 12 Months				12 Months or More				Total
				Gross				Gross				Gross
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in millions)		Value		Losses		Value		Losses		Value		Losses
December 31, 2019
Bonds available for sale:
U.S. government and government sponsored entities	$	1,461	$	44	$	63	$	-	$	1,524	$	44
Obligations of states, municipalities and political
subdivisions		672		21		246		11		918		32
Non-U.S. governments		1,105		12		343		45		1,448		57
Corporate debt		11,868		319		2,405		181		14,273		500
RMBS		3,428		28		1,367		36		4,795		64
CMBS		1,877		16		367		9		2,244		25
CDO/ABS		3,920		53		2,571		40		6,491		93
Total bonds available for sale	$	24,331	$	493	$	7,362	$	322	$	31,693	$	815

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

	Total Fixed Maturity Securities
	Available for Sale
		Amortized Cost,
(in millions)		Net of Allowance		Fair Value
September 30, 2020
Due in one year or less	$	11,186	$	11,298
Due after one year through five years		42,513		43,869
Due after five years through ten years		41,049		44,725
Due after ten years		84,222		98,696
Mortgage-backed, asset-backed and collateralized		63,264		67,377
Total	$	242,234	$	265,965

Gross realized gains and gross realized losses from sales or maturities of available for sale securities

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
		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	$	258	$	83	$	198	$	70	$	1,179	$	641	$	464	$	280

Value of other securities measured at fair value based on election of the fair value option

		September 30, 2020				December 31, 2019
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	1,870	30	%	$	2,121	28	%
Corporate debt		12	-			18	-
Mortgage-backed, asset-backed and collateralized:
RMBS		488	8			489	7
CMBS		322	5			322	4
CDO/ABS and other collateralized		2,723	43			3,732	50
Total mortgage-backed, asset-backed and collateralized		3,533	56			4,543	61
Total fixed maturity securities		5,415	86			6,682	89
Equity securities		871	14			841	11
Total	$	6,286	100	%	$	7,523	100	%

Carrying amounts values of other invested assets

		September 30,		December 31,
(in millions)		2020		2019
Alternative investments^{(a) (b)}	$	8,391	$	8,845
Investment real estate^(c)		8,010		8,491
All other investments^(d)		1,514		1,456
Total	$	17,915	$	18,792

(b) At September 30, 2020, approximately 63 percent of our hedge fund portfolio is available for redemption in 2020. The remaining 37 percent will be available for redemption between 2021 and 2027.

(c) Net of accumulated depreciation of $780 million and $703 million at September 30, 2020 and December 31, 2019, respectively.

Components of net investment income

Three Months Ended September 30,	2020						2019
	Excluding Fortitude		Fortitude Re
	Re Funds		Funds Withheld
(in millions)	Withheld Assets		Assets		Total
Available for sale fixed maturity securities, including short-term investments	$	2,209	$	373	$	2,582	$	2,698
Other fixed maturity securities^(a)		164		7		171		333
Equity securities		119		-		119		(51)
Interest on mortgage and other loans		443		46		489		495
Alternative investments^(b)		455		40		495		115
Real estate		22		-		22		96
Other investments^(c)		55		-		55		(143)
Total investment income		3,467		466		3,933		3,543
Investment expenses		125		8		133		135
Net investment income	$	3,342	$	458	$	3,800	$	3,408

Nine Months Ended September 30,	2020						2019
	Excluding Fortitude		Fortitude Re
	Re Funds		Funds Withheld
(in millions)	Withheld Assets		Assets^(d)		Total
Available for sale fixed maturity securities, including short-term investments	$	7,320	$	459	$	7,779	$	8,052
Other fixed maturity securities^(a)		475		10		485		941
Equity securities		(16)		-		(16)		6
Interest on mortgage and other loans		1,441		59		1,500		1,511
Alternative investments^(b)		309		54		363		879
Real estate		142		-		142		227
Other investments^(c)		(159)		-		(159)		(203)
Total investment income		9,512		582		10,094		11,413
Investment expenses		412		8		420		381
Net investment income	$	9,100	$	574	$	9,674	$	11,032

(d) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.

Components of net realized capital gains (losses)

Three Months Ended September 30,	2020						2019
	Excluding		Fortitude Re
	Fortitude Re			Funds
	Funds		Withheld
(in millions)	Withheld Assets			Assets		Total
Sales of fixed maturity securities	$	28	$	147	$	175	$	128
Other-than-temporary impairments		-		-		-		(24)
Change in intent^(a)		-		-		-		-
Change in allowance for credit losses on fixed maturity securities		(77)		(4)		(81)		-
Change in allowance for credit losses on loans		(13)		2		(11)		(25)
Foreign exchange transactions		250		7		257		(203)
Variable annuity embedded derivatives, net of related hedges		(148)		-		(148)		311
All other derivatives and hedge accounting		(626)		(120)		(746)		466
Other		88		-		88		276
Net realized capital gains (losses) – excluding Fortitude Re funds
withheld embedded derivative		(498)		32		(466)		929
Net realized capital gains (losses) on Fortitude Re funds withheld embedded
derivative		-		(656)		(656)		-
Net realized capital gains (losses)	$	(498)	$	(624)	$	(1,122)	$	929


Nine Months Ended September 30,	2020						2019
	Excluding		Fortitude Re
	Fortitude Re			Funds
	Funds		Withheld
(in millions)	Withheld Assets		Assets^(b)			Total
Sales of fixed maturity securities	$	269	$	269	$	538	$	184
Other-than-temporary impairments		-		-		-		(137)
Change in intent^(a)		(3)		-		(3)		-
Change in allowance for credit losses on fixed maturity securities		(299)		(11)		(310)		-
Change in allowance for credit losses on loans		(73)		6		(67)		(35)
Foreign exchange transactions		40		10		50		(242)
Variable annuity embedded derivatives, net of related hedges		1,034		-		1,034		10
All other derivatives and hedge accounting		365		(146)		219		601
Other		97		-		97		506
Net realized capital gains – excluding Fortitude Re funds
withheld embedded derivative		1,430		128		1,558		887
Net realized capital gains (losses) on Fortitude Re funds withheld embedded
derivative		-		(1,493)		(1,493)		-
Net realized capital gains (losses)	$	1,430	$	(1,365)	$	65	$	887

(a) For the three- and nine-month periods ended September 30, 2019, the change in intent was included in Other-than-temporary impairments.

(b) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.

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)		2020		2019		2020		2019
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	2,373	$	4,377	$	5,875	$	16,265
Other investments		1		-		1		(68)
Total increase (decrease) in unrealized appreciation (depreciation) of investments	$	2,374	$	4,377	$	5,876	$	16,197

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,	2020						2019
				Other						Other
			Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	119	$	464	$	583	$	(51)	$	105	$	54
Less: Net gains and losses recognized during the period on equity
securities sold during the period		(3)		(5)		(8)		18		13		31
Unrealized gains and losses recognized during the reporting
period on equity securities still held at the reporting date	$	122	$	469	$	591	$	(69)	$	92	$	23

Nine Months Ended September 30,	2020						2019
				Other						Other
			Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains and losses recognized during the period on equity securities	$	(16)	$	264	$	248	$	6	$	615	$	621
Less: Net gains and losses recognized during the period on equity
securities sold during the period		14		10		24		30		169		199
Unrealized gains and losses recognized during the reporting
period on equity securities still held at the reporting date	$	(30)	$	254	$	224	$	(24)	$	446	$	422

Rollforward of changes in allowance for credit losses on available for sale fixed maturity securities by major ivnvestment category

	Three Months Ended						Nine Months Ended
	September 30, 2020						September 30, 2020
				Non-						Non-
(in millions)	Structured		Structured			Total	Structured		Structured			Total
Balance, beginning of period*	$	37	$	161	$	198	$	7	$	-	$	7
Additions:
Securities for which allowance for credit losses were not
previously recorded		1		30		31		36		294		330
Purchases of available for sale debt securities accounted for
as purchased credit deteriorated assets		-		-		-		26		-		26
Accretion of available for sale debt securities accounted for
as purchased credit deteriorated assets		-		-		-		1		-		1
Reductions:
Securities sold during the period		(2)		(5)		(7)		(3)		(10)		(13)
Intent to sell security or more likely than not will be required to
sell the security before recovery of its amortized cost basis		-		-		-		-		-		-
Additional net increases or decreases to the allowance for
credit losses on securities that had an allowance recorded
in a previous period, for which there was no intent to sell
before recovery amortized cost basis		(10)		67		57		(41)		34		(7)
Write-offs charged against the allowance		-		(43)		(43)		-		(108)		(108)
Recoveries of amounts previously written off		-		-		-		-		-		-
Other		-		-		-		-		-		-
Balance, end of period	$	26	$	210	$	236	$	26	$	210	$	236

* The beginning balance incorporates the Day 1 gross up on PCD assets held as of January 1, 2020.

Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings

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

Reconciliation of purchase price to unpaid principal balance of securities purchased with credit deterioration

(in millions)	September 30, 2020
Unpaid principal balance	$	644
Allowance for expected credit losses at acquisition		(26)
Purchase (discount) premium		(149)
Purchase price	$	469

Schedule of purchased credit impaired (PCI) securities, at acquisition date

(in millions)	At Date of Acquisition
Contractually required payments (principal and interest)	$	35,139
Cash flows expected to be collected^*		28,720
Recorded investment in acquired securities		19,382

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

Schedule of purchased credit impaired (PCI) securities, at reporting date

(in millions)	December 31, 2019
Outstanding principal balance	$	10,476
Amortized cost		6,970
Fair value		8,664

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
(in millions)	September 30, 2019		September 30, 2019
Balance, beginning of period	$	6,402		$	7,210
Newly purchased PCI securities		4			17
Accretion		(172)			(495)
Effect of changes in interest rate indices		(278)			(678)
Net reclassification from (to) non-accretable difference,
including effects of prepayments		(162)			(260)
Balance, end of period	$	5,794		$	5,794

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

(in millions)		September 30, 2020		December 31, 2019
Fixed maturity securities available for sale	$	3,664	$	3,030

Schedule of fair value of securities pledged under 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, 2020
Bonds available for sale:
Non-U.S. governments	$	107	$	-	$	-	$	-	$	-	$	107
Corporate debt		147		98		-		-		-		245
Total	$	254	$	98	$	-	$	-	$	-	$	352

December 31, 2019
Bonds available for sale:
Non-U.S. governments	$	2	$	71	$	-	$	-	$	-	$	73
Corporate debt		22		55		82		-		-		159
Total	$	24	$	126	$	82	$	-	$	-	$	232

	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, 2020
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	102	$	-	$	-	$	-	$	102
Corporate debt		-		1,428		1,379		-		-		2,807
RMBS		-		403		-		-		-		403
Total	$	-	$	1,933	$	1,379	$	-	$	-	$	3,312

December 31, 2019
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	-	$	386	$	-	$	-	$	386
Corporate debt		-		1,071		947		-		-		2,018
RMBS		-		-		-		394		-		394
Total	$	-	$	1,071	$	1,333	$	394	$	-	$	2,798

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

(in millions)		September 30, 2020		December 31, 2019
Securities collateral pledged to us	$	5,076	$	2,567
Amount sold or repledged by us		-		121

LENDING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2020

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable

	September 30,			December 31,
(in millions)		2020		2019
Commercial mortgages^(a)	$	36,359	$	36,170
Residential mortgages		5,202		6,683
Life insurance policy loans		2,072		2,065
Commercial loans, other loans and notes receivable		2,754		2,504
Total mortgage and other loans receivable		46,387		47,422
Allowance for credit losses^(b)		(797)		(438)
Mortgage and other loans receivable, net	$	45,590	$	46,984

(a)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 25 percent and 10 percent, respectively, at September 30, 2020 and 23 percent and 10 percent, respectively, at December 31, 2019).(b)Does not include $66 million of expected credit loss liability at September 30, 2020 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

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

September 30, 2020
(in millions)		2020		2019		2018		2017		2016		Prior		Total
>1.2X	$	1,577	$	5,452	$	5,506	$	4,008	$	5,002	$	11,150	$	32,695
1.00 - 1.20X		157		393		457		108		162		1,382		2,659
<1.00X		2		79		346		86		94		398		1,005
Total commercial mortgages	$	1,736	$	5,924	$	6,309	$	4,202	$	5,258	$	12,930	$	36,359

September 30, 2020
(in millions)		2020		2019		2018		2017		2016		Prior		Total
Less than 65%	$	1,571	$	3,594	$	4,796	$	3,050	$	3,251	$	10,136	$	26,398
65% to 75%		163		1,858		1,513		974		1,292		1,751		7,551
76% to 80%		-		88		-		124		98		500		810
Greater than 80%		2		384		-		54		617		543		1,600
Total commercial mortgages	$	1,736	$	5,924	$	6,309	$	4,202	$	5,258	$	12,930	$	36,359

December 31, 2019	Debt Service Coverage Ratios^(a)
(in millions)		>1.20X		1.00X - 1.20X		<1.00X		Total
Loan-to-Value Ratios^(b)
Less than 65%	$	23,013	$	2,440	$	245	$	25,698
65% to 75%		9,007		899		40		9,946
76% to 80%		200		6		-		206
Greater than 80%		184		2		134		320
Total commercial mortgages	$	32,404	$	3,347	$	419	$	36,170

Schedule of credit quality performance indicators for the commercial mortgages

	Number															Percent
	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total^(c)	Total
September 30, 2020
Credit Quality Performance
Indicator:
In good standing	700	$	13,704	$	10,843	$	5,124	$	3,746	$	2,080	$	448	$	35,945	99	%
Restructured^(a)	3		-		-		50		-		-		-		50	-
90 days or less delinquent	1		-		-		-		-		108		-		108	-
>90 days delinquent or in
process of foreclosure	5		-		116		54		-		86		-		256	1
Total^(b)	709	$	13,704	$	10,959	$	5,228	$	3,746	$	2,274	$	448	$	36,359	100	%
Allowance for credit losses		$	123	$	281	$	141	$	55	$	52	$	7	$	659	2	%

December 31, 2019
Credit Quality Performance
Indicator:
In good standing	736	$	13,698	$	10,553	$	5,332	$	3,663	$	2,211	$	522	$	35,979	99	%
Restructured^(a)	3		-		89		-		-		101		-		190	1
90 days or less delinquent	1		1		-		-		-		-		-		1	-
>90 days delinquent or in
process of foreclosure	-		-		-		-		-		-		-		-	-
Total^(b)	740	$	13,699	$	10,642	$	5,332	$	3,663	$	2,312	$	522	$	36,170	100	%
Allowance for credit losses:
Specific		$	-	$	2	$	1	$	-	$	6	$	-	$	9	-	%
General			81		153		44		30		14		5		327	1
Total allowance for credit losses		$	81	$	155	$	45	$	30	$	20	$	5	$	336	1	%

(b) Does not reflect allowance for credit losses.

The following table presents credit quality performance indicators for residential mortgages by year of vintage:

September 30, 2020
(in millions)		2020		2019		2018		2017		2016		Prior		Total
FICO*:
780 and greater	$	309	$	764	$	364	$	627	$	688	$	650	$	3,402
720 - 779		326		411		123		182		221		197		1,460
660 - 719		10		67		33		48		56		73		287
600 - 659		1		6		6		7		5		13		38
Less than 600		-		-		1		2		3		9		15
Total residential mortgages	$	646	$	1,248	$	527	$	866	$	973	$	942	$	5,202

*Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last three months.

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

Three Months Ended September 30,	2020						2019
		Commercial		Other				Commercial			Other
(in millions)		Mortgages		Loans		Total		Mortgages			Loans		Total
Allowance, beginning of period	$	667	$	127	$	794	$	310		$	97	$	407
Initial allowance upon CECL adoption		-		-		-		-			-		-
Loans charged off		-		-		-		(2)			-		(2)
Recoveries of loans previously charged off		-		-		-		-			-		-
Net charge-offs		-		-		-		(2)			-		(2)
Provision for loan losses		(8)		11		3		27			(2)		25
Allowance, end of period	$	659	$	138	$	797	$	335	^(b)	$	95	$	430
Nine Months Ended September 30,	2020						2019
		Commercial		Other				Commercial			Other
(in millions)		Mortgages		Loans		Total		Mortgages			Loans		Total
Allowance, beginning of year	$	336	$	102	$	438	$	318		$	79	$	397
Initial allowance upon CECL adoption		311		7		318		-			-		-
Loans charged off		(12)		-		(12)		(2)			-		(2)
Recoveries of loans previously charged off		-		-		-		-			-		-
Net charge-offs		(12)		-		(12)		(2)			-		(2)
Provision for loan losses		24		29		53		19			16		35
Allowance, end of period	$	659	$	138	$	797	$	335	^(b)	$	95	$	430

REINSURANCE (Tables)

9 Months Ended

Sep. 30, 2020

Summary of the composition of pool of assets

September 30, 2020		Carrying		Fair
(in millions)		Value		Value	Corresponding Accounting Policy
Fixed maturity securities - available for sale^(a)	$	35,775	$	35,775	Fair value through other comprehensive income
Fixed maturity securities - fair value option		204		204	Fair value through net investment income
Commercial mortgage loans		3,577		3,866	Amortized cost
Real estate investments		366		595	Amortized cost
Private equity funds / hedge funds		992		992	Fair value through net investment income
Policy loans		423		423	Amortized cost
Derivative assets, net^(b)		-		-	Fair value through realized capital gains (losses)
Other		687		687	Amortized cost
Total	$	42,024	$	42,542

Summary of the impact of modco and funds withheld

	Three Months Ended		Nine Months Ended
(in millions)	September 30, 2020		September 30, 2020
Net underwriting income	$	-	$	-
Net investment income - Fortitude Re funds withheld assets		458		574
Net realized capital losses on Fortitude Re funds withheld assets:
Net realized capital gains - Fortitude Re funds withheld assets		32		128
Net realized capital losses - Fortitude Re embedded derivatives		(656)		(1,493)
Net realized capital losses on Fortitude Re funds withheld assets		(624)		(1,365)
Loss from continuing operations before income tax benefit		(166)		(791)
Income tax benefit^(a)		(35)		(166)
Net loss		(131)		(625)
Change in unrealized appreciation of all other investments^(a)		132		570
Comprehensive income (loss)	$	1	$	(55)

(a) The income tax expense (benefit) and the tax impact in accumulated other comprehensive income was computed using AIG’s U.S. statutory tax rate of 21 percent.

Schedule of rollfoward of allowance for credit losses

	Three Months Ended						Nine Months Ended
	September 30, 2020						September 30, 2020
		General		Life and				General		Life and
(in millions)	Insurance		Retirement			Total	Insurance		Retirement			Total
Balance, beginning of period	$	305	$	59	$	364	$	111	$	40	$	151
Initial allowance upon CECL adoption		-		-		-		202		22		224
Current period provision for expected credit losses and disputes		(2)		2		-		-		5		5
Write-offs charged against the allowance for credit losses and
disputes		-		-		-		(5)		(5)		(10)
Other changes		5		1		6		-		-		-
Balance, end of period	$	308	$	62	$	370	$	308	$	62	$	370

VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2020

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, 2020
Assets:
Bonds available for sale	$	-	$	6,075	$	-	$	-	$	6,075
Other bond and equity securities		281		2,416		-		6		2,703
Mortgage and other loans receivable		-		3,247		-		-		3,247
Other invested assets		5,975		-		3,549		18		9,542
Other^(a)		461		1,635		520		23		2,639
Total assets^(b)	$	6,717	$	13,373	$	4,069	$	47	$	24,206
Liabilities:
Long-term debt	$	2,509	$	4,054	$	2,317	$	-	$	8,880
Other^(c)		165		159		197		9		530
Total liabilities	$	2,674	$	4,213	$	2,514	$	9	$	9,410
December 31, 2019
Assets:
Bonds available for sale	$	177	$	7,239	$	-	$	-	$	7,416
Other bond securities		-		3,324		-		1		3,325
Mortgage and other loans receivable		-		3,860		-		-		3,860
Other invested assets		5,231		-		3,464		42		8,737
Other^(a)		615		1,996		469		42		3,122
Total assets^(b)	$	6,023	$	16,419	$	3,933	$	85	$	26,460
Liabilities:
Long-term debt	$	2,810	$	4,356	$	2,074	$	4	$	9,244
Other^(c)		236		359		195		24		814
Total liabilities	$	3,046	$	4,715	$	2,269	$	28	$	10,058

(a)Comprised primarily of Short-term investments and Other assets at September 30, 2020 and December 31, 2019.

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

(d) At September 30, 2020 and December 31, 2019, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $2.3 billion and $2.6 billion, respectively.

(e) At September 30, 2020 and December 31, 2019, the company had contributed total assets of $12.6 billion and $15.6 billion, respectively, into consolidated securitization vehicles.

Variable Interest Entity Not Primary Beneficiary

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities

			Maximum Exposure to Loss
		Total VIE		On-Balance		Off-Balance
(in millions)		Assets		Sheet^(b)		Sheet			Total
September 30, 2020
Real estate and investment entities^(a)	$	293,428	$	5,260	$	3,238		$	8,498
Affordable housing partnerships		3,045		384		-			384
Other		5,033		461		562	^(c)		1,023
Total	$	301,506	$	6,105	$	3,800		$	9,905
December 31, 2019
Real estate and investment entities^(a)	$	283,349	$	6,519	$	3,286		$	9,805
Affordable housing partnerships		3,351		453		-			453
Other		5,320		310		561	^(c)		871
Total	$	292,020	$	7,282	$	3,847		$	11,129

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

(b) At September 30, 2020 and December 31, 2019, $5.7 billion and $7.0 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, 2020

DERIVATIVES AND HEDGE ACCOUNTING

	September 30, 2020								December 31, 2019
	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	$	690	$	19	$	299	$	13	$	495	$	3	$	410	$	7
Foreign exchange contracts		6,146		494		3,910		159		4,328		342		5,230		162
Derivatives not designated
as hedging instruments:^(a)
Interest rate contracts		66,938		5,035		39,057		4,546		52,437		3,197		35,231		2,742
Foreign exchange contracts		15,771		1,094		6,345		460		8,133		698		12,093		863
Equity contracts		21,461		957		4,268		101		18,533		769		7,539		139
Credit contracts^(b)		2,797		1		970		69		8,457		3		923		89
Other contracts^(c)		43,069		13		55		7		40,582		14		56		7
Total derivatives, gross	$	156,872	$	7,613	$	54,904	$	5,355	$	132,965	$	5,026	$	61,482	$	4,009
Counterparty netting^(d)				(3,695)				(3,695)				(2,427)				(2,427)
Cash collateral^(e)				(3,129)				(1,060)				(1,806)				(527)
Total derivatives on condensed
consolidated balance sheets^(f)			$	789			$	600			$	793			$	1,055

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

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

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

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

	Gains/(Losses) Recognized in Earnings for:
	Hedging		Excluded		Hedged
(in millions)	Derivatives^(a)		Components^(b)		Items		Net Impact
Three Months Ended September 30, 2020
Interest rate contracts:
Interest credited to policyholder account balances	$	(2)	$	-	$	5	$	3
Net investment income		1		-		-		1
Foreign exchange contracts:
Realized capital gains/(losses)		(250)		(50)		250		(50)
Three Months Ended September 30, 2019
Interest rate contracts:
Interest credited to policyholder account balances	$	4	$	-	$	(4)	$	-
Net investment income		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		228		41		(228)		41
Nine Months Ended September 30, 2020
Interest rate contracts:
Interest credited to policyholder account balances	$	16	$	-	$	(15)	$	1
Net investment income		(6)		-		6		-
Foreign exchange contracts:
Realized capital gains/(losses)		(77)		155		77		155
Nine Months Ended September 30, 2019
Interest rate contracts:
Interest credited to policyholder account balances	$	18	$	-	$	(18)	$	-
Net investment income		(1)		-		1		-
Foreign exchange contracts:
Realized capital gains/(losses)		278		84		(278)		84

(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)		2020		2019		2020		2019
By Derivative Type:
Interest rate contracts	$	(462)	$	1,078	$	2,104	$	2,052
Foreign exchange contracts		(535)		342		366		545
Equity contracts		(46)		96		586		(23)
Credit contracts		(1)		26		55		35
Other contracts		18		14		44		48
Embedded derivatives		(507)		(756)		(3,333)		(2,037)
Total	$	(1,533)	$	800	$	(178)	$	620
By Classification:
Policy fees	$	16	$	16	$	46	$	51
Net investment income		4		(3)		1		(58)
Net realized capital gains (losses) - excluding
Fortitude Re funds withheld assets		(775)		780		1,398		611
Net realized capital gains (losses) on Fortitude Re
funds withheld assets		(776)		-		(1,639)		-
Policyholder benefits and claims incurred		(2)		7		16		16
Total	$	(1,533)	$	800	$	(178)	$	620

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.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense

INSURANCE LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2020

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)		2020		2019		2020		2019
Liability for unpaid loss and loss adjustment expenses, beginning of period	$	77,853	$	81,057	$	78,328	$	83,639
Reinsurance recoverable		(35,458)		(31,333)		(31,069)		(31,690)
Initial allowance upon CECL adoption		-		-		164		-
Net Liability for unpaid loss and loss adjustment expenses, beginning of period		42,395		49,724		47,423		51,949
Losses and loss adjustment expenses incurred:
Current year		4,324		4,612		12,683		13,181
Prior years, excluding discount and amortization of deferred gain		20		(74)		(6)		(221)
Prior years, discount charge (benefit)		25		276		135		1,017
Prior years, amortization of deferred gain on retroactive reinsurance^(a)		(36)		13		(187)		(129)
Total losses and loss adjustment expenses incurred		4,333		4,827		12,625		13,848
Losses and loss adjustment expenses paid:
Current year		(1,316)		(1,572)		(2,568)		(2,949)
Prior years		(3,115)		(4,244)		(11,256)		(14,010)
Total losses and loss adjustment expenses paid		(4,431)		(5,816)		(13,824)		(16,959)
Other changes:
Foreign exchange effect		925		(172)		656		(165)
Allowance for credit losses		-		-		-		-
Retroactive reinsurance adjustment (net of discount)^(b)		80		96		240		(14)
Fortitude sale and reinsurance adjustment^(c)		-		-		(3,818)		-
Total other changes		1,005		(76)		(2,922)		(179)
Liability for unpaid loss and loss adjustment expenses, end of period:
Net liability for unpaid losses and loss adjustment expenses		43,302		48,659		43,302		48,659
Reinsurance recoverable		35,282		31,224		35,282		31,224
Total	$	78,584	$	79,883	$	78,584	$	79,883

Schedule of components of the loss reserve discount

	September 30, 2020						December 31, 2019
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio^(b)		Total	Insurance			Portfolio		Total
U.S. workers' compensation	$	2,111	$	-	$	2,111	$	2,134	$	666	$	2,800
Retroactive reinsurance		(1,173)		-		(1,173)		(1,251)		-		(1,251)
Total reserve discount^(a)	$	938	$	-	$	938	$	883	$	666	$	1,549

(a)Excludes $151 million and $172 million of discount related to certain long tail liabilities in the UK at September 30, 2020 and December 31, 2019, respectively.(b)On June 2, 2020, we completed the Majority Interest Fortitude Sale. Refer to Note 1 for additional information.

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

Three Months Ended September 30,	2020						2019
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio^(c)		Total	Insurance			Portfolio		Total
Current accident year	$	56	$	-	$	56	$	41	$	-	$	41
Accretion and other adjustments to prior year discount		(25)		-		(25)		(26)		(56)		(82)
Effect of interest rate changes		-		-		-		(136)		(58)		(194)
Net reserve discount benefit (charge)		31		-		31		(121)		(114)		(235)
Change in discount on loss reserves ceded under retroactive
reinsurance		20		-		20		43		-		43
Net change in total reserve discount^(a)	$	51	$	-	$	51	$	(78)	$	(114)	$	(192)

Nine Months Ended September 30,	2020						2019
	North						North
	America						America
	Commercial			Legacy			Commercial			Legacy
(in millions)	Insurance			Portfolio^(c)		Total	Insurance			Portfolio		Total
Current accident year	$	94	$	-	$	94	$	97	$	-	$	97
Accretion and other adjustments to prior year discount		(117)		(18)		(135)		(269)		(80)		(349)
Effect of interest rate changes		-		-		-		(473)		(195)		(668)
Net reserve discount benefit (charge)		(23)		(18)		(41)		(645)		(275)		(920)
Change in discount on loss reserves ceded under retroactive
reinsurance		78		-		78		475		-		475
Net change in total reserve discount^(b)	$	55	$	(18)	$	37	$	(170)	$	(275)	$	(445)

(a) Excludes $(12) million and $(27) million discount related to certain long tail liabilities in the UK for the three-month periods ended September 30, 2020 and 2019, respectively.

(b) Excludes $(20) million and $(1) million discount related to certain long tail liabilities in the UK for the nine-month periods ended September 30, 2020 and 2019, respectively.

EQUITY (Tables)

9 Months Ended

Sep. 30, 2020

Class of Stock [Line Items]

Rollforward of common stock outstanding

Nine Months Ended September 30, 2020	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Shares, beginning of year	1,906,671,492	(1,036,672,461)	869,999,031
Shares issued	-	3,610,496	3,610,496
Shares repurchased	-	(12,160,952)	(12,160,952)
Shares, end of period	1,906,671,492	(1,045,222,917)	861,448,575

Dividends Paid

The following table presents declaration date, record date, payment date and dividends paid per common share on AIG Common Stock in the nine months ended September 30, 2020 and 2019:

				Dividends Paid
Declaration Date	Record Date	Payment Date		Per Common Share
August 3, 2020	September 17, 2020	September 30, 2020	$	0.32
May 4, 2020	June 15, 2020	June 29, 2020		0.32
February 12, 2020	March 16, 2020	March 30, 2020		0.32
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

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)		2020		2019
Aggregate repurchases of common stock	$	500	$	-
Total number of common shares repurchased		12		-
Aggregate repurchases of warrants	$	-	$	-
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 Allowance		(Depreciation)		Currency		Plan		Attributable to
		for Credit Losses		of All Other		Translation		Liabilities		Changes in
(in millions)		Was Taken		Investments		Adjustments		Adjustment		Own Credit Risk		Total
Balance, June 30, 2020, net of tax	$	(233)	$	13,281	$	(2,767)	$	(1,120)	$	8	$	9,169
Change in unrealized appreciation of investments		101		2,273		-		-		-		2,374
Change in deferred policy acquisition costs
adjustment and other		(5)		(296)		-		-		-		(301)
Change in future policy benefits		-		(147)		-		-		-		(147)
Change in foreign currency translation adjustments		-		-		297		-		-		297
Change in net actuarial loss		-		-		-		2		-		2
Change in prior service credit		-		-		-		-		-		-
Change in deferred tax asset (liability)		(17)		(445)		55		(3)		-		(410)
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		1		1
Total other comprehensive income (loss)		79		1,385		352		(1)		1		1,816
Noncontrolling interests		-		2		5		-		-		7
Balance, September 30, 2020, net of tax	$	(154)	$	14,664	$	(2,420)	$	(1,121)	$	9	$	10,978

Balance, December 31, 2019, net of tax	$	-	$	8,722	$	(2,625)	$	(1,122)	$	7	$	4,982
Change in unrealized appreciation (depreciation)
of investments		(212)		6,088		-		-		-		5,876
Change in deferred policy acquisition costs
adjustment and other		14		(655)		-		-		-		(641)
Change in future policy benefits		-		2,187		-		-		-		2,187
Change in foreign currency translation adjustments		-		-		169		-		-		169
Change in net actuarial loss		-		-		-		18		-		18
Change in prior service credit		-		-		-		(1)		-		(1)
Change in deferred tax asset (liability)		44		(1,695)		37		(16)		-		(1,630)
Change in fair value of liabilities under fair value
option attributable to changes in own credit risk		-		-		-		-		2		2
Total other comprehensive income (loss)		(154)		5,925		206		1		2		5,980
Noncontrolling interests		-		(17)		1		-		-		(16)
Balance, September 30, 2020, net of tax	$	(154)	$	14,664	$	(2,420)	$	(1,121)	$	9	$	10,978

		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

Other comprehensive income (loss) reclassification adjustments

		Unrealized Appreciation								Fair Value of
		(Depreciation) of Fixed		Unrealized						Liabilities Under
		Maturity Securities on		Appreciation		Foreign		Retirement		Fair Value Option
		Which Allowance		(Depreciation)		Currency		Plan		Attributable to
		for Credit Losses		of All Other		Translation		Liabilities		Changes in
(in millions)		Was Taken		Investments		Adjustments		Adjustment		Own Credit Risk		Total
Three Months Ended September 30, 2020
Unrealized change arising during period	$	99	$	2,002	$	297	$	(9)	$	1	$	2,390
Less: Reclassification adjustments
included in net income		3		172		-		(11)		-		164
Total other comprehensive income (loss),
before income tax expense (benefit)		96		1,830		297		2		1		2,226
Less: Income tax expense (benefit)		17		445		(55)		3		-		410
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	79	$	1,385	$	352	$	(1)	$	1	$	1,816
Nine Months Ended September 30, 2020
Unrealized change arising during period	$	(198)	$	8,158	$	169	$	(15)	$	2	$	8,116
Less: Reclassification adjustments
included in net income		-		538		-		(32)		-		506
Total other comprehensive income (loss),
before income tax expense (benefit)		(198)		7,620		169		17		2		7,610
Less: Income tax expense (benefit)		(44)		1,695		(37)		16		-		1,630
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(154)	$	5,925	$	206	$	1	$	2	$	5,980

		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
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
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

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)		2020		2019
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken
Investments		$	3	$	-		Other realized capital gains
Total			3		-
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments			-		1		Other realized capital gains
Total			-		1
Unrealized appreciation (depreciation) of all other investments
Investments			172		127		Other realized capital gains
Total			172		127
Change in retirement plan liabilities adjustment
Prior-service credit			-		-		*
Actuarial losses			(11)		(9)		*
Total			(11)		(9)
Total reclassifications for the period		$	164	$	119
	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income

	Nine Months Ended September 30,
(in millions)		2020		2019
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken
Investments		$	-	$	-		Other realized capital gains
Total			-		-
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments			-		(3)		Other realized capital gains
Total			-		(3)
Unrealized appreciation (depreciation) of all other investments
Investments			538		187		Other realized capital gains
Total			538		187
Change in retirement plan liabilities adjustment
Prior-service credit			(1)		-		*
Actuarial losses			(31)		(24)		*
Total			(32)		(24)
Total reclassifications for the period		$	506	$	160

Preferred Stock

Class of Stock [Line Items]

Dividends Paid

			Dividends Paid
Declaration Date	Record Date	Payment Date		Per Preferred Share		Per Depositary Share
August 3, 2020	August 31, 2020	September 15, 2020	$	365.625	$	0.365625
May 4, 2020	May 29, 2020	June 15, 2020		365.625		0.365625
February 12, 2020	February 28, 2020	March 16, 2020		365.625		0.365625
August 7, 2019	August 30, 2019	September 16, 2019	$	365.625	$	0.365625
May 21, 2019	May 31, 2019	June 17, 2019		369.6875		0.3696875

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.

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Computation of basic and diluted EPS

EARNINGS PER COMMON SHARE (EPS) (Tables)

9 Months Ended

Sep. 30, 2020

EARNINGS PER COMMON SHARE (EPS)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in millions, except per common share data)		2020		2019		2020		2019
Numerator for EPS:
Income (loss) from continuing operations	$	294	$	973	$	(5,817)	$	3,301
Less: Net income from continuing operations attributable to noncontrolling interests		11		317		78		881
Less: Preferred stock dividends		7		8		22		15
Income (loss) attributable to AIG common shareholders
from continuing operations		276		648		(5,917)		2,405
Income (loss) from discontinued operations, net of income tax expense		5		-		4		(1)
Net income (loss) attributable to AIG common shareholders	$	281	$	648	$	(5,913)	$	2,404
Denominator for EPS:
Weighted average common shares outstanding — basic		867,713,308		877,009,495		869,627,926		876,262,372
Dilutive common shares		5,417,642		18,804,915		-		10,958,744
Weighted average common shares outstanding — diluted^(a)(b)		873,130,950		895,814,410		869,627,926		887,221,116
Income (loss) per common share attributable to AIG common
shareholders:
Basic:
Income (loss) from continuing operations	$	0.31	$	0.74	$	(6.80)	$	2.74
Income from discontinued operations	$	0.01	$	-	$	-	$	-
Income (loss) attributable to AIG common shareholders	$	0.32	$	0.74	$	(6.80)	$	2.74
Diluted:
Income (loss) from continuing operations	$	0.31	$	0.72	$	(6.80)	$	2.71
Income from discontinued operations	$	0.01	$	-	$	-	$	-
Income (loss) attributable to AIG common shareholders	$	0.32	$	0.72	$	(6.80)	$	2.71

EMPLOYEE BENEFITS (Tables)

9 Months Ended

Sep. 30, 2020

Defined Benefit Plan Disclosure [Line Items]

Components of net periodic benefit cost

	Pension
		U.S.		Non-U.S.
(in millions)		Plans		Plans		Total
Three Months Ended September 30, 2020
Components of net periodic benefit cost:
Service cost	$	1	$	5	$	6
Interest cost		33		3		36
Expected return on assets		(60)		(5)		(65)
Amortization of prior service cost		-		1		1
Amortization of net loss		9		1		10
Net periodic benefit cost (credit)		(17)		5		(12)
Settlement charges		-		-		-
Net benefit cost (credit)	$	(17)	$	5	$	(12)
Three Months Ended September 30, 2019
Components of net periodic benefit cost:
Service cost	$	2	$	6	$	8
Interest cost		44		3		47
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
Settlement charges		-		-		-
Net benefit cost (credit)	$	(3)	$	5	$	2
Nine Months Ended September 30, 2020
Components of net periodic benefit cost:
Service cost	$	4	$	15	$	19
Interest cost		100		8		108
Expected return on assets		(179)		(15)		(194)
Amortization of prior service cost		-		2		2
Amortization of net loss		25		5		30
Net periodic benefit cost (credit)		(50)		15		(35)
Settlement charges		-		-		-
Net benefit cost (credit)	$	(50)	$	15	$	(35)
Nine Months Ended September 30, 2019
Components of net periodic benefit cost:
Service cost	$	7	$	16	$	23
Interest cost		131		11		142
Expected return on assets		(172)		(16)		(188)
Amortization of prior service cost		-		1		1
Amortization of net loss		25		4		29
Net periodic benefit cost (credit)		(9)		16		7
Settlement credit		-		(3)		(3)
Net benefit cost (credit)	$	(9)	$	13	$	4

BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Millions			3 Months Ended			9 Months Ended
	Jun. 02, 2020 USD ($)	May 26, 2020 USD ($)	Sep. 30, 2020 USD ($) item $ / shares	Mar. 31, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) item $ / shares	Sep. 30, 2019 USD ($)	Dec. 31, 2019 $ / shares	Nov. 13, 2018
Basis of Presentation [Line Items]
Common stock, par value (in dollars per share) \| $ / shares			$ 2.50			$ 2.50		$ 2.5
Net income (loss) on sale of divested businesses			$ (24.0)		$ (9.0)	$ (8,652.0)	$ (4.0)
American International Group, Inc. \| Fortitude Holdings
Basis of Presentation [Line Items]
Percentage of common stock held after closing of transaction	3.50%
Carlyle FRL \| Fortitude Holdings
Basis of Presentation [Line Items]
Voting interest in subsidiary, percent	51.60%
T&D \| Fortitude Holdings
Basis of Presentation [Line Items]
Voting interest in subsidiary, percent	25.00%
Fortitude Holdings
Basis of Presentation [Line Items]
Total consideration	$ 2,200.0
Consideration in cash	1,800.0
Contingent consideration receivable			95.0			95.0
Contingent consideration receivable, maximum	500.0
Maximum borrowing capacity			600.0			600.0
After tax loss on disposal	(6,700.0)
Decrease to stockholders' equity related to disposal	4,300.0
AOCI adjustment related to release of shadow adjustments	2,400.0
Write off of prepaid insurance	(2,700.0)
Gain (loss) on disposal related to mark to market adjustments	(4,000.0)
Fortitude Holdings \| General insurance subsidiaries
Basis of Presentation [Line Items]
Consideration contributed to subsidiaries	700.0
Fortitude Holdings \| Life and retirement subsidiaries
Basis of Presentation [Line Items]
Consideration contributed to subsidiaries	135.0
Fortitude Holdings \| Legacy life and retirement run-off lines
Basis of Presentation [Line Items]
Cession of reserves			30,600.0			30,600.0
Fortitude Holdings \| Legacy general insurance run-off lines
Basis of Presentation [Line Items]
Cession of reserves			$ 4,100.0			$ 4,100.0
Fortitude Holdings \| TC Group Cayman
Basis of Presentation [Line Items]
Voting interest in subsidiary, percent			19.90%			19.90%			19.90%
Contingent consideration receivable			$ 115.0			$ 115.0
Additional contingent consideration receivable			$ 19.9			19.9
Contingent consideration received		$ 79.6
Fortitude Holdings \| Carlyle FRL and T&D
Basis of Presentation [Line Items]
Purchase price adjustment	383.0
Blackboard U.S. Holdings, Inc
Basis of Presentation [Line Items]
Net income (loss) on sale of divested businesses				$ (210.0)		$ (210.0)
Minimum
Basis of Presentation [Line Items]
Number of countries in which the entity operates \| item			80			80
Maximum \| Fortitude Holdings
Basis of Presentation [Line Items]
Purchase price adjustment	$ 500.0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Rollforward of allowance for credit losses related to the adoption of the Financial Instruments Credit Losses Standard) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Summary of Significant Accounting Policies [Line Items]
Securities available for sale, balance, beginning of year	$ 198		$ 0
Securities available for sale, purchased credit deteriorated initial allowance and purchases of available for sale debt securities accounted for as PCD assets	0		33
Securities available for sale, incremental increase (decrease) recognized in income	81		310
Securities available for sale, write-offs and other changes in the allowance	(43)		(107)
Securities available for sale, balance, end of period	236		236
Mortgage and other loan receivables, balance, beginning of year	794	$ 407	438	$ 397
Mortgage and other loan receivables, incremental increase (decrease) recognized in income	3	25	53	35
Mortgage and other loans receivable, write-offs and other changes in the allowance	0	(2)	(12)	(2)
Mortgage and other loan receivables, balance, end of period	797	$ 430	797	$ 430
Reinsurance recoverables, balance, beginning of year	364		151
Reinsurance recoverables, incremental increase (decrease) recognized in income	0		5
Reinsurance recoverables, write-offs and other changes in allowance	6		(10)
Reinsurance recoverables, balance, end of period	370		370
Premiums and other receivables, balance, beginning of year	212		178
Premiums and other receivables, incremental increase (decrease) recognized in income	7		9
Premiums and other receivables, write-offs and other changes in the allowance	(4)		(6)
Premiums and other receivables, balance, end of period	215		215
Contractual deductible recoverables, balance, beginning of year	14		0
Contractual deductible recoverables, incremental increase (decrease) recognized in income	0		0
Contractual deductible recoverables, write-offs and other changes in the allowance	0		0
Contractual deductible recoverables, balance, end of period	14		14
Commercial mortgage loan commitments, balance, beginning of year	58		0
Commercial mortgage loan commitments, incremental increase (decrease) recognized in income	8		14
Commercial mortgage loan commitments, write-offs and other changes in the allowance	0		1
Commercial mortgage loan commitments, balance, end of period	66		66
Total, beginning of year	1,640		767
Total, incremental increase (decrease) recognized in income	99		391
Total, write-offs and other changes in the allowance	(41)		(134)
Total, end of period	1,698		1,698
Retained earnings	(15,838)		(15,838)		$ (23,084)
Cumulative effect of change in accounting principle
Summary of Significant Accounting Policies [Line Items]
Securities available for sale, balance, beginning of year	0		0
Mortgage and other loan receivables, balance, beginning of year	0		318
Reinsurance recoverables, balance, beginning of year	0		224
Premiums and other receivables, balance, beginning of year	0		34
Contractual deductible recoverables, balance, beginning of year	0		14
Commercial mortgage loan commitments, balance, beginning of year	0		51
Total, beginning of year	$ 0		641
Secondary impacts to certain long-duration insurance contracts			(27)
Tax impact			$ (127)
Retained earnings					$ 487

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Narratives) - USD ($) $ in Millions	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies [Line Items]
Retained earnings	$ 15,838		$ 23,084
Premiums and other receivables, allowance for credit losses	215	$ 212	178
Goodwill	$ 4,000
Cumulative effect of change in accounting principle
Summary of Significant Accounting Policies [Line Items]
Retained earnings			(487)
Premiums and other receivables, allowance for credit losses		$ 0	$ 34

SEGMENT INFORMATION (Details - Schedule of continuing operations by operating segment) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Total Revenues	$ 10,221	$ 12,914	$ 34,060	$ 37,931
Adjusted Pre-tax Income (Loss)	368	1,260	(6,735)	4,251
AIG Consolidation and Eliminations
Segment Reporting Information [Line Items]
Total Revenues	(148)	(81)	(262)	(257)
Adjusted Pre-tax Income (Loss)	(136)	(46)	(171)	(172)
Total AIG Consolidated adjusted revenues and adjusted pre-tax income (loss)
Segment Reporting Information [Line Items]
Total Revenues	10,756	12,057	33,445	36,971
Adjusted Pre-tax Income (Loss)	918	746	1,893	4,270
General Insurance \| Reportable Segments
Segment Reporting Information [Line Items]
Total Revenues	6,692	7,415	19,614	22,744
Adjusted Pre-tax Income (Loss)	416	507	1,092	2,755
General Insurance \| Reportable Segments \| North America
Segment Reporting Information [Line Items]
Total Revenues	3,417	3,878	9,908	12,001
Adjusted Pre-tax Income (Loss)	399	435	813	2,087
General Insurance \| Reportable Segments \| International
Segment Reporting Information [Line Items]
Total Revenues	3,275	3,537	9,706	10,743
Adjusted Pre-tax Income (Loss)	17	72	279	668
Life and Retirement \| Reportable Segments
Segment Reporting Information [Line Items]
Total Revenues	3,870	3,833	12,591	11,865
Adjusted Pre-tax Income (Loss)	975	646	2,430	2,619
Life and Retirement \| Reportable Segments \| Individual Retirement
Segment Reporting Information [Line Items]
Total Revenues	1,480	1,416	4,183	4,233
Adjusted Pre-tax Income (Loss)	533	387	1,389	1,483
Life and Retirement \| Reportable Segments \| Group Retirement
Segment Reporting Information [Line Items]
Total Revenues	758	726	2,164	2,225
Adjusted Pre-tax Income (Loss)	338	203	695	728
Life and Retirement \| Reportable Segments \| Life Insurance
Segment Reporting Information [Line Items]
Total Revenues	1,076	1,037	3,280	3,264
Adjusted Pre-tax Income (Loss)	5	(7)	51	195
Life and Retirement \| Reportable Segments \| Institutional Markets
Segment Reporting Information [Line Items]
Total Revenues	556	654	2,964	2,143
Adjusted Pre-tax Income (Loss)	99	63	295	213
Other Operations
Segment Reporting Information [Line Items]
Total Revenues	128	139	305	422
Adjusted Pre-tax Income (Loss)	(426)	(454)	(1,436)	(1,256)
Legacy Portfolio
Segment Reporting Information [Line Items]
Total Revenues	214	751	1,197	2,197
Adjusted Pre-tax Income (Loss)	$ 89	$ 93	$ (22)	$ 324

SEGMENT INFORMATION (Details - Schedule of continuing operations by operating segment, reconciling items) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

Sep. 30, 2019

Reconciling items from adjusted pre-tax income to pre-tax income (loss):

Changes in fair value of equity securities

$ 596

$ 350

$ 524

$ 1,216

Gains (loss) on extinguishment of debt

(15)

(13)

Net realized capital gains (losses) on embedded derivative

3,800

3,408

9,674

11,032

(1,122)

929

887

Loss from divested businesses

(24)

(9)

(8,652)

(4)

Net reserve discount benefit (charge)

(235)

(41)

(920)

Revenues

10,221

12,914

34,060

37,931

Adjusted Pre-tax Income (Loss)

368

1,260

(6,735)

4,251

Excluding Fortitude Re funds withheld assets

Reconciling items from adjusted pre-tax income to pre-tax income (loss):

Net realized capital gains (losses) on embedded derivative

3,342

3,408

9,100

11,032

(498)

929

1,430

887

Fortitude Re funds withheld assets

Reconciling items from adjusted pre-tax income to pre-tax income (loss):

Net realized capital gains (losses) on embedded derivative

^[1]

458

574

^[1]

128

Fortitude Re funds withheld embedded derivative

Reconciling items from adjusted pre-tax income to pre-tax income (loss):

Net realized capital gains (losses) on embedded derivative

^[1]

(656)

(1,493)

Total Revenues

Reconciling items from adjusted pre-tax income to pre-tax income (loss):

Changes in fair values of securities used to hedge guaranteed living benefits

214

Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses)

Changes in fair value of equity securities

119

(51)

(16)

Other income (expense) - net

Gains (loss) on extinguishment of debt

Loss from divested businesses

(525)

867

1,328

713

Non-operating litigation reserves and settlements

(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements

Net reserve discount benefit (charge)

Integration and transaction costs associated with acquired business

Restructuring and other costs

Non-recurring costs related to regulatory or accounting changes

Total Revenues | Fortitude Re funds withheld assets

Reconciling items from adjusted pre-tax income to pre-tax income (loss):

Net realized capital gains (losses) on embedded derivative

458

574

128

Total Revenues | Fortitude Re funds withheld embedded derivative

Reconciling items from adjusted pre-tax income to pre-tax income (loss):

Net realized capital gains (losses) on embedded derivative

(656)

(1,493)

Adjusted Pre-tax Income (Loss)

Reconciling items from adjusted pre-tax income to pre-tax income (loss):

Changes in fair values of securities used to hedge guaranteed living benefits

183

Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses)

(65)

(205)

(39)

Changes in fair value of equity securities

119

(51)

(16)

Other income (expense) - net

Gains (loss) on extinguishment of debt

(15)

(13)

Loss from divested businesses

(514)

881

1,369

758

(24)

(9)

(8,652)

(4)

Non-operating litigation reserves and settlements

(1)

(5)

(6)

(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements

211

Net reserve discount benefit (charge)

(235)

(41)

(920)

Integration and transaction costs associated with acquired business

(1)

(3)

(7)

(16)

Restructuring and other costs

(100)

(67)

(324)

(174)

Non-recurring costs related to regulatory or accounting changes

(19)

(3)

(46)

(5)

Adjusted Pre-tax Income (Loss) | Fortitude Re funds withheld assets

Reconciling items from adjusted pre-tax income to pre-tax income (loss):

Net realized capital gains (losses) on embedded derivative

458

574

128

Adjusted Pre-tax Income (Loss) | Fortitude Re funds withheld embedded derivative

Reconciling items from adjusted pre-tax income to pre-tax income (loss):

Net realized capital gains (losses) on embedded derivative

$ (656)

$ 0

$ (1,493)

$ 0

[1]	Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.

SEGMENT INFORMATION (Details - Narrative)	9 Months Ended
SEGMENT INFORMATION (Details - Narrative)	Sep. 30, 2020 segment
General Insurance
Segment Reporting Information [Line Items]
Number of operating segments	2
Life and Retirement
Segment Reporting Information [Line Items]
Number of operating segments	4

FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	$ 265,965	$ 251,086
Other bond securities	5,415	6,682
Equity securities	871	841
Other invested assets	7,064	6,827
Derivative Assets, Fair Value, Gross	7,613	5,026
Derivative assets, Counterparty netting	(3,695)	(2,427)
Derivative assets, Cash collateral	(3,129)	(1,806)
Derivative assets	789	793
Short-term investments	7,214	5,343
Other assets	901	3,151
Separate account assets, at fair value	92,036	93,272
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	9,322	6,910
Other policyholder funds	3,571	3,428
Derivative Liabilities, Fair Value, Gross	5,355	4,009
Derivative liabilities, Counterparty netting	(3,695)	(2,427)
Derivative liabilities, Cash collateral	(1,060)	(527)
Derivative liabilities	600	1,055
Fortitude Re funds withheld payable	42,543	0
Other liabilities	600	1,100
Long-term debt	2,169	2,062
Fair Value Using Net Asset Value Per Share or its equivalent	5,387	5,549
Level 1
Fair Value, Liabilities Measured on Recurring Basis
Fortitude Re funds withheld payable	0
Level 2
Fair Value, Liabilities Measured on Recurring Basis
Fortitude Re funds withheld payable	0
Level 3
Fair Value, Liabilities Measured on Recurring Basis
Fortitude Re funds withheld payable	37,407
Recurring Basis
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	265,965	251,086
Other bond securities	5,415	6,682
Equity securities	871	841
Other invested assets	1,677	1,278
Derivative assets, Counterparty netting	(3,695)	(2,427)
Derivative assets, Cash collateral	(3,129)	(1,806)
Derivative assets, Counterparty netting and cash collateral	(6,824)	(4,233)
Derivative assets	789	793
Short-term investments	7,214	5,343
Other assets	112	2,358
Separate account assets, at fair value	92,036	93,272
Fair value assets measured on recurring basis, total	374,079	361,653
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	9,322	6,910
Derivative liabilities, Counterparty netting	(3,695)	(2,427)
Derivative liabilities, Cash collateral	(1,060)	(527)
Derivative liabilities, Counterparty netting and cash collateral	(4,755)	(2,954)
Derivative liabilities	600	1,055
Fortitude Re funds withheld payable	5,136
Other liabilities	0	45
Long-term debt	2,169	2,062
Fair value liabilities measured on recurring basis, total	17,227	10,072
Recurring Basis \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	5,054	3,200
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	4,559	2,749
Recurring Basis \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1,588	1,040
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	619	1,025
Recurring Basis \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	957	769
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	101	139
Recurring Basis \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1	3
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	69	89
Recurring Basis \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	13	14
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	7	7
Recurring Basis \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	5,135	5,380
Other bond securities	1,870	2,121
Recurring Basis \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	16,173	15,318
Recurring Basis \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	15,174	14,869
Other bond securities	0	0
Recurring Basis \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	162,106	149,636
Other bond securities	12	18
Recurring Basis \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	33,414	32,805
Other bond securities	488	489
Recurring Basis \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	15,777	14,430
Other bond securities	322	322
Recurring Basis \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	18,186	18,648
Other bond securities	2,723	3,732
Recurring Basis \| Level 1
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	74	195
Other bond securities	0	0
Equity securities	827	756
Other invested assets	0	0
Derivative Assets, Fair Value, Gross	9	6
Short-term investments	3,195	2,299
Other assets	0	57
Separate account assets, at fair value	88,023	89,069
Fair value assets measured on recurring basis, total	92,128	92,382
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	0	0
Derivative Liabilities, Fair Value, Gross	12	12
Fortitude Re funds withheld payable	0
Other liabilities	0	0
Long-term debt	0	0
Fair value liabilities measured on recurring basis, total	12	12
Recurring Basis \| Level 1 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	3	1
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	4
Recurring Basis \| Level 1 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 1 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	6	5
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	12	8
Recurring Basis \| Level 1 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 1 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 1 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	33	135
Other bond securities	0	0
Recurring Basis \| Level 1 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0	0
Recurring Basis \| Level 1 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	41	60
Other bond securities	0	0
Recurring Basis \| Level 1 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0	0
Other bond securities	0	0
Recurring Basis \| Level 1 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0	0
Other bond securities	0	0
Recurring Basis \| Level 1 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0	0
Other bond securities	0	0
Recurring Basis \| Level 1 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0	0
Other bond securities	0	0
Recurring Basis \| Level 2
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	238,597	224,960
Other bond securities	2,644	2,944
Equity securities	18	77
Other invested assets	94	86
Derivative Assets, Fair Value, Gross	7,477	4,826
Short-term investments	4,019	3,044
Other assets	0	2,212
Separate account assets, at fair value	4,013	4,203
Fair value assets measured on recurring basis, total	256,862	242,352
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	0	0
Derivative Liabilities, Fair Value, Gross	5,286	3,905
Fortitude Re funds withheld payable	0
Other liabilities	0	45
Long-term debt	2,169	2,062
Fair value liabilities measured on recurring basis, total	7,455	6,012
Recurring Basis \| Level 2 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	5,051	3,199
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	4,559	2,745
Recurring Basis \| Level 2 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1,585	1,034
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	619	1,025
Recurring Basis \| Level 2 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	841	593
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	84	111
Recurring Basis \| Level 2 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	24	24
Recurring Basis \| Level 2 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 2 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	5,102	5,245
Other bond securities	1,870	2,121
Recurring Basis \| Level 2 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	13,990	13,197
Recurring Basis \| Level 2 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	15,126	14,809
Other bond securities	0	0
Recurring Basis \| Level 2 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	159,991	147,973
Other bond securities	12	18
Recurring Basis \| Level 2 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	20,759	19,397
Other bond securities	320	346
Recurring Basis \| Level 2 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	14,796	13,377
Other bond securities	274	272
Recurring Basis \| Level 2 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	8,833	10,962
Other bond securities	168	187
Recurring Basis \| Level 3
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	27,294	25,931
Other bond securities	2,771	3,738
Equity securities	26	8
Other invested assets	1,583	1,192
Derivative Assets, Fair Value, Gross	127	194
Short-term investments	0	0
Other assets	112	89
Separate account assets, at fair value	0	0
Fair value assets measured on recurring basis, total	31,913	31,152
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	9,322	6,910
Derivative Liabilities, Fair Value, Gross	57	92
Fortitude Re funds withheld payable	5,136
Other liabilities	0	0
Long-term debt	0	0
Fair value liabilities measured on recurring basis, total	14,515	7,002
Recurring Basis \| Level 3 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	0	0
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 3 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	3	6
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	0	0
Recurring Basis \| Level 3 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	110	171
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	5	20
Recurring Basis \| Level 3 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	1	3
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	45	65
Recurring Basis \| Level 3 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative Assets, Fair Value, Gross	13	14
Fair Value, Liabilities Measured on Recurring Basis
Derivative Liabilities, Fair Value, Gross	7	7
Recurring Basis \| Level 3 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	0	0
Other bond securities	0	0
Recurring Basis \| Level 3 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	2,183	2,121
Recurring Basis \| Level 3 \| Non-U.S. governments
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	7	0
Other bond securities	0	0
Recurring Basis \| Level 3 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	2,115	1,663
Other bond securities	0	0
Recurring Basis \| Level 3 \| Residential mortgage-backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	12,655	13,408
Other bond securities	168	143
Recurring Basis \| Level 3 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	981	1,053
Other bond securities	48	50
Recurring Basis \| Level 3 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	9,353	7,686
Other bond securities	$ 2,555	$ 3,545

FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	$ 31,858	$ 33,782	$ 30,958	$ 33,610
Net Realized and Unrealized Gains (Losses) Included in Income, assets	385	271	729	988
Other Comprehensive Income (Loss), assets	566	201	(10)	843
Purchases, Sales, Issuances and Settlements, Net, assets	(740)	(1,373)	(1,485)	(2,724)
Gross Transfers In, assets	588	142	3,405	1,441
Gross Transfers Out, assets	(870)	(608)	(1,773)	(1,743)
Divested Businesses	(1)	0	(38)	0
Fair Value End of Period, assets	31,786	32,415	31,786	32,415
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	40	32	15	142
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	572		143
Liabilities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, liabilities	13,731	6,130	6,808	4,269
Net realized and unrealized gains (losses) included in income, liabilities	664	835	3,658	2,287
Other Comprehensive Income (Loss), liabilities	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, liabilities	(11)	194	245	603
Gross Transfers In, liabilities	(1)	0	(1)	0
Gross Transfers Out, liabilities	5	0	5	0
Divested Businesses	0	0	3,673	0
Fair Value End of Year, liabilities	14,388	7,159	14,388	7,159
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities	30	(675)	(2,361)	(1,961)
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities	0		0
Policyholder contract deposits
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, liabilities	9,233	6,065	6,910	4,116
Net realized and unrealized gains (losses) included in income, liabilities	19	861	2,250	2,400
Other Comprehensive Income (Loss), liabilities	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, liabilities	70	240	162	650
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	0
Divested Businesses	0	0	0	0
Fair Value End of Year, liabilities	9,322	7,166	9,322	7,166
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities	273	(691)	(1,436)	(2,044)
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities	0		0
Derivative liabilities, net
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, liabilities	(12)	65	(102)	153
Net realized and unrealized gains (losses) included in income, liabilities	(11)	(26)	(85)	(113)
Other Comprehensive Income (Loss), liabilities	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, liabilities	(51)	(46)	113	(47)
Gross Transfers In, liabilities	(1)	0	(1)	0
Gross Transfers Out, liabilities	5	0	5	0
Divested Businesses	0	0	0	0
Fair Value End of Year, liabilities	(70)	(7)	(70)	(7)
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities	13	16	(6)	83
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities	0		0
Interest rate contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, liabilities	0	16	0	15
Net realized and unrealized gains (losses) included in income, liabilities	0	(3)	(1)	0
Other Comprehensive Income (Loss), liabilities	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, liabilities	0	(13)	1	(15)
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	0
Divested Businesses	0	0	0	0
Fair Value End of Year, liabilities	0	0	0	0
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities	0	0	1	1
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities	0		0
Foreign exchange contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, liabilities	(1)	(4)	(6)	(5)
Net realized and unrealized gains (losses) included in income, liabilities	(2)	6	2	(4)
Other Comprehensive Income (Loss), liabilities	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, liabilities	0	(3)	1	8
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	0
Divested Businesses	0	0	0	0
Fair Value End of Year, liabilities	(3)	(1)	(3)	(1)
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities	2	0	2	0
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities	0		0
Equity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, liabilities	(53)	(113)	(151)	(75)
Net realized and unrealized gains (losses) included in income, liabilities	9	12	19	(8)
Other Comprehensive Income (Loss), liabilities	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, liabilities	(65)	0	23	(18)
Gross Transfers In, liabilities	(1)	0	(1)	0
Gross Transfers Out, liabilities	5	0	5	0
Divested Businesses	0	0	0	0
Fair Value End of Year, liabilities	(105)	(101)	(105)	(101)
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities	0	(13)	(62)	19
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities	0		0
Credit contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, liabilities	45	173	62	227
Net realized and unrealized gains (losses) included in income, liabilities	1	(24)	(59)	(51)
Other Comprehensive Income (Loss), liabilities	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, liabilities	(2)	(47)	41	(74)
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	0
Divested Businesses	0	0	0	0
Fair Value End of Year, liabilities	44	102	44	102
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities	(7)	14	8	13
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities	0		0
Other contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, liabilities	(3)	(7)	(7)	(9)
Net realized and unrealized gains (losses) included in income, liabilities	(19)	(17)	(46)	(50)
Other Comprehensive Income (Loss), liabilities	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, liabilities	16	17	47	52
Gross Transfers In, liabilities	0	0	0	0
Gross Transfers Out, liabilities	0	0	0	0
Divested Businesses	0	0	0	0
Fair Value End of Year, liabilities	(6)	(7)	(6)	(7)
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities	18	15	45	50
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities	0		0
Fortitude Re funds withheld payable
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, liabilities	4,510		0
Net realized and unrealized gains (losses) included in income, liabilities	656		1,493
Other Comprehensive Income (Loss), liabilities	0		0
Purchases, Sales, Issuances and Settlements, Net, liabilities	(30)		(30)
Gross Transfers In, liabilities	0		0
Gross Transfers Out, liabilities	0		0
Divested Businesses	0		3,673
Fair Value End of Year, liabilities	5,136		5,136
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities	(256)		(919)
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities	0		0
Other liabilities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Purchases, Sales, Issuances and Settlements, Net, liabilities	0		0
Bonds available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	27,472	28,013	25,931	27,093
Net Realized and Unrealized Gains (Losses) Included in Income, assets	170	140	478	591
Other Comprehensive Income (Loss), assets	566	201	(11)	842
Purchases, Sales, Issuances and Settlements, Net, assets	(652)	(946)	(581)	(1,390)
Gross Transfers In, assets	581	140	3,222	1,439
Gross Transfers Out, assets	(843)	(604)	(1,745)	(1,631)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	27,294	26,944	27,294	26,944
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	0	0	0	0
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	572		143
Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	2,279	2,162	2,121	2,000
Net Realized and Unrealized Gains (Losses) Included in Income, assets	3	(1)	8	(2)
Other Comprehensive Income (Loss), assets	(4)	119	195	321
Purchases, Sales, Issuances and Settlements, Net, assets	(30)	92	127	178
Gross Transfers In, assets	0	0	27	35
Gross Transfers Out, assets	(65)	(265)	(295)	(425)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	2,183	2,107	2,183	2,107
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	0	0	0	0
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	0		193
Bonds available for sale \| Non-U.S. governments
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	5	2	0	11
Net Realized and Unrealized Gains (Losses) Included in Income, assets	0	6	0	5
Other Comprehensive Income (Loss), assets	1	0	1	0
Purchases, Sales, Issuances and Settlements, Net, assets	0	0	5	(4)
Gross Transfers In, assets	1	5	7	5
Gross Transfers Out, assets	0	0	(6)	(4)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	7	13	7	13
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	0	0	0	0
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	0		0
Bonds available for sale \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	1,900	1,821	1,663	864
Net Realized and Unrealized Gains (Losses) Included in Income, assets	(33)	(36)	(101)	(10)
Other Comprehensive Income (Loss), assets	52	(2)	43	79
Purchases, Sales, Issuances and Settlements, Net, assets	(25)	(535)	95	(600)
Gross Transfers In, assets	452	112	1,074	1,155
Gross Transfers Out, assets	(231)	(85)	(659)	(213)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	2,115	1,275	2,115	1,275
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	0	0	0	0
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	38		59
Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	12,678	13,863	13,408	14,199
Net Realized and Unrealized Gains (Losses) Included in Income, assets	192	166	532	575
Other Comprehensive Income (Loss), assets	301	15	(375)	176
Purchases, Sales, Issuances and Settlements, Net, assets	(412)	(418)	(806)	(1,234)
Gross Transfers In, assets	3	16	29	83
Gross Transfers Out, assets	(107)	(82)	(133)	(239)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	12,655	13,560	12,655	13,560
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	0	0	0	0
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	335		(213)
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	1,149	1,103	1,053	917
Net Realized and Unrealized Gains (Losses) Included in Income, assets	3	2	14	8
Other Comprehensive Income (Loss), assets	36	32	70	62
Purchases, Sales, Issuances and Settlements, Net, assets	(11)	85	17	381
Gross Transfers In, assets	0	0	23	58
Gross Transfers Out, assets	(196)	(172)	(196)	(376)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	981	1,050	981	1,050
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	0	0	0	0
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	27		66
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
Fair Value Beginning of Period, assets	9,461	9,062	7,686	9,102
Net Realized and Unrealized Gains (Losses) Included in Income, assets	5	3	25	15
Other Comprehensive Income (Loss), assets	180	37	55	204
Purchases, Sales, Issuances and Settlements, Net, assets	(174)	(170)	(19)	(111)
Gross Transfers In, assets	125	7	2,062	103
Gross Transfers Out, assets	(244)	0	(456)	(374)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	9,353	8,939	9,353	8,939
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	0	0	0	0
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	172		38
Other bond securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	2,746	5,068	3,738	5,845
Net Realized and Unrealized Gains (Losses) Included in Income, assets	141	125	241	373
Other Comprehensive Income (Loss), assets	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, assets	(116)	(375)	(1,208)	(1,293)
Gross Transfers In, assets	0	0	0	0
Gross Transfers Out, assets	0	(4)	0	(111)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	2,771	4,814	2,771	4,814
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	39	27	27	113
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	0		0
Other bond securities \| Residential mortgage-backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	168	830	143	1,290
Net Realized and Unrealized Gains (Losses) Included in Income, assets	16	9	16	69
Other Comprehensive Income (Loss), assets	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, assets	(16)	(24)	9	(544)
Gross Transfers In, assets	0	0	0	0
Gross Transfers Out, assets	0	0	0	0
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	168	815	168	815
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	4	1	3	(18)
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	0		0
Other bond securities \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	47	88	50	77
Net Realized and Unrealized Gains (Losses) Included in Income, assets	1	1	0	5
Other Comprehensive Income (Loss), assets	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, assets	0	(17)	(2)	0
Gross Transfers In, assets	0	0	0	0
Gross Transfers Out, assets	0	(4)	0	(14)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	48	68	48	68
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	1	(2)	(1)	3
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	0		0
Other bond securities \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	2,531	4,150	3,545	4,478
Net Realized and Unrealized Gains (Losses) Included in Income, assets	124	115	225	299
Other Comprehensive Income (Loss), assets	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, assets	(100)	(334)	(1,215)	(749)
Gross Transfers In, assets	0	0	0	0
Gross Transfers Out, assets	0	0	0	(97)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	2,555	3,931	2,555	3,931
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	34	28	25	128
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	0		0
Equity securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	43	35	8	27
Net Realized and Unrealized Gains (Losses) Included in Income, assets	0	0	(1)	0
Other Comprehensive Income (Loss), assets	2	0	3	0
Purchases, Sales, Issuances and Settlements, Net, assets	1	(29)	11	(20)
Gross Transfers In, assets	7	2	33	2
Gross Transfers Out, assets	(27)	0	(28)	(1)
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	26	8	26	8
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	1	(2)	1	2
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	0		0
Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	1,486	605	1,192	587
Net Realized and Unrealized Gains (Losses) Included in Income, assets	74	6	11	24
Other Comprehensive Income (Loss), assets	(2)	0	(2)	1
Purchases, Sales, Issuances and Settlements, Net, assets	25	(22)	232	(23)
Gross Transfers In, assets	0	0	150	0
Gross Transfers Out, assets	0	0	0	0
Divested Businesses	0	0	0	0
Fair Value End of Period, assets	1,583	589	1,583	589
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	0	7	(13)	27
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets	0		0
Other assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Fair Value Beginning of Period, assets	111	61	89	58
Net Realized and Unrealized Gains (Losses) Included in Income, assets	0	0	0	0
Other Comprehensive Income (Loss), assets	0	0	0	0
Purchases, Sales, Issuances and Settlements, Net, assets	2	(1)	61	2
Gross Transfers In, assets	0	0	0	0
Gross Transfers Out, assets	0	0	0	0
Divested Businesses	(1)	0	(38)	0
Fair Value End of Period, assets	112	60	112	60
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets	0	$ 0	0	$ 0
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, Sales, Issuances and Settlements, Net, assets	$ (740,000,000)	$ (1,373,000,000)	$ (1,485,000,000)	$ (2,724,000,000)
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	(79,000,000)		(207,000,000)	(40,000,000)
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.	18,000,000	24,000,000	(13,000,000)	28,000,000
Liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	(19,000,000)	(7,000,000)	(43,000,000)	(29,000,000)
Sales, liabilities	170,000,000	240,000,000	522,000,000	616,000,000
Issuances and Settlements, liabilities	(162,000,000)	(39,000,000)	(234,000,000)	16,000,000
Purchases, Sales, Issuances and Settlements, Net, liabilities	(11,000,000)	194,000,000	245,000,000	603,000,000
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	170,000,000	240,000,000	514,000,000	616,000,000
Issuances and Settlements, liabilities	(100,000,000)	0	(352,000,000)	34,000,000
Purchases, Sales, Issuances and Settlements, Net, liabilities	70,000,000	240,000,000	162,000,000	650,000,000
Derivative liabilities, net
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	(19,000,000)	(7,000,000)	(43,000,000)	(29,000,000)
Sales, liabilities	0	0	8,000,000	0
Issuances and Settlements, liabilities	(32,000,000)	(39,000,000)	148,000,000	(18,000,000)
Purchases, Sales, Issuances and Settlements, Net, liabilities	(51,000,000)	(46,000,000)	113,000,000	(47,000,000)
Fortitude Re funds withheld payable
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	0		0
Sales, liabilities	0		0
Issuances and Settlements, liabilities	(30,000,000)		(30,000,000)
Purchases, Sales, Issuances and Settlements, Net, liabilities	(30,000,000)		(30,000,000)
Other liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	0		0
Sales, liabilities	0		0
Issuances and Settlements, liabilities	0		0
Purchases, Sales, Issuances and Settlements, Net, liabilities	0		0
Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	501,000,000	934,000,000	2,531,000,000	3,335,000,000
Sales, assets	(108,000,000)	(495,000,000)	(726,000,000)	(1,285,000,000)
Issuances and Settlements, assets	(1,133,000,000)	(1,812,000,000)	(3,290,000,000)	(4,774,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(740,000,000)	(1,373,000,000)	(1,485,000,000)	(2,724,000,000)
Bonds available for sale
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	475,000,000	913,000,000	2,116,000,000	3,244,000,000
Sales, assets	(108,000,000)	(326,000,000)	(147,000,000)	(679,000,000)
Issuances and Settlements, assets	(1,019,000,000)	(1,533,000,000)	(2,550,000,000)	(3,955,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(652,000,000)	(946,000,000)	(581,000,000)	(1,390,000,000)
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	34,000,000	109,000,000	201,000,000	243,000,000
Sales, assets	(18,000,000)	0	(20,000,000)	(16,000,000)
Issuances and Settlements, assets	(46,000,000)	(17,000,000)	(54,000,000)	(49,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(30,000,000)	92,000,000	127,000,000	178,000,000
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	5,000,000	0
Sales, assets	0	0	0	0
Issuances and Settlements, assets	0	0	0	(4,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	0	0	5,000,000	(4,000,000)
Bonds available for sale \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	23,000,000	1,000,000	256,000,000	58,000,000
Sales, assets	(2,000,000)	(128,000,000)	(7,000,000)	(129,000,000)
Issuances and Settlements, assets	(46,000,000)	(408,000,000)	(154,000,000)	(529,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(25,000,000)	(535,000,000)	95,000,000	(600,000,000)
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	182,000,000	253,000,000	883,000,000	860,000,000
Sales, assets	0	0	0	(26,000,000)
Issuances and Settlements, assets	(594,000,000)	(671,000,000)	(1,689,000,000)	(2,068,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(412,000,000)	(418,000,000)	(806,000,000)	(1,234,000,000)
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	2,000,000	92,000,000	56,000,000	455,000,000
Sales, assets	(10,000,000)	0	(17,000,000)	0
Issuances and Settlements, assets	(3,000,000)	(7,000,000)	(22,000,000)	(74,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(11,000,000)	85,000,000	17,000,000	381,000,000
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	234,000,000	458,000,000	715,000,000	1,628,000,000
Sales, assets	(78,000,000)	(198,000,000)	(103,000,000)	(508,000,000)
Issuances and Settlements, assets	(330,000,000)	(430,000,000)	(631,000,000)	(1,231,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(174,000,000)	(170,000,000)	(19,000,000)	(111,000,000)
Other bond securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0	72,000,000	18,000,000
Sales, assets	0	(169,000,000)	(579,000,000)	(606,000,000)
Issuances and Settlements, assets	(116,000,000)	(206,000,000)	(701,000,000)	(705,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(116,000,000)	(375,000,000)	(1,208,000,000)	(1,293,000,000)
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	37,000,000	0
Sales, assets	0	0	0	(437,000,000)
Issuances and Settlements, assets	(16,000,000)	(24,000,000)	(28,000,000)	(107,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(16,000,000)	(24,000,000)	9,000,000	(544,000,000)
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	0	18,000,000
Sales, assets	0	(16,000,000)	0	(16,000,000)
Issuances and Settlements, assets	0	(1,000,000)	(2,000,000)	(2,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	0	(17,000,000)	(2,000,000)	0
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	35,000,000	0
Sales, assets	0	(153,000,000)	(579,000,000)	(153,000,000)
Issuances and Settlements, assets	(100,000,000)	(181,000,000)	(671,000,000)	(596,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	(100,000,000)	(334,000,000)	(1,215,000,000)	(749,000,000)
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	1,000,000	0	11,000,000	9,000,000
Sales, assets	0	0	0	0
Issuances and Settlements, assets	0	(29,000,000)	0	(29,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	1,000,000	(29,000,000)	11,000,000	(20,000,000)
Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	25,000,000	21,000,000	277,000,000	64,000,000
Sales, assets	0	0	0	0
Issuances and Settlements, assets	0	(43,000,000)	(45,000,000)	(87,000,000)
Purchases, Sales, Issuances and Settlements, Net, assets	25,000,000	(22,000,000)	232,000,000	(23,000,000)
Other assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0	55,000,000	0
Sales, assets	0	0	0	0
Issuances and Settlements, assets	2,000,000	(1,000,000)	6,000,000	2,000,000
Purchases, Sales, Issuances and Settlements, Net, assets	$ 2,000,000	$ (1,000,000)	$ 61,000,000	$ 2,000,000

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, 2020	Dec. 31, 2019
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value Using Net Asset Value Per Share or its equivalent	$ 5,387	$ 5,549
Unfunded Commitments	3,091	2,666
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	3,647	3,220
Unfunded Commitments	$ 3,090	2,665
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
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	$ 1,382	1,189
Unfunded Commitments	1,697	1,543
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	429	400
Unfunded Commitments	450	290
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	143	111
Unfunded Commitments	166	155
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	523	422
Unfunded Commitments	54	57
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	349	325
Unfunded Commitments	282	414
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	821	773
Unfunded Commitments	441	206
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	1,740	2,329
Unfunded Commitments	1	1
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	353	727
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	364	539
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	751	894
Unfunded Commitments	0	0
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	272	169
Unfunded Commitments	$ 1	$ 1

FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments for which we elected the fair value option) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option gain (loss)	$ 596	$ 350	$ 524	$ 1,216
Bonds
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option gain (loss)	171	333	485	971
Alternative investments
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option gain (loss)	407	92	242	473
Long-term debt
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value option gain (loss)	$ 18	$ (75)	$ (203)	$ (228)

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, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage and other loans receivable, Difference	$ 46,387	$ 47,422
Long-term debt, Fair Value	2,169	2,062
Long-term debt, Outstanding Principal Amount	28,731	25,479
Fair Value Option
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, Fair Value	2,169	2,062
Long-term debt, Outstanding Principal Amount	1,506	1,502
Long-term debt, Difference	$ 663	$ 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) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	$ 268		$ 268		$ 329
Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	31		31		1
Fair value on a non-recurring basis \| Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	299		299		330
Impairment Charges	14	$ 52	74	$ 127
Fair value on a non-recurring basis \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Impairment Charges	12	7	60	65
Fair value on a non-recurring basis \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Impairment Charges	2	$ 45	14	$ 62
Fair value on a non-recurring basis \| 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
Fair value on a non-recurring basis \| Level 1 \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0		0		0
Fair value on a non-recurring basis \| Level 1 \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0		0		0
Fair value on a non-recurring basis \| 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
Fair value on a non-recurring basis \| Level 2 \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0		0		0
Fair value on a non-recurring basis \| Level 2 \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	0		0		0
Fair value on a non-recurring basis \| Level 3 \| Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain]
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	299		299		330
Fair value on a non-recurring basis \| Level 3 \| Other investments
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	268		268		329
Fair value on a non-recurring basis \| Level 3 \| Other assets
Fair Value Assets Measured on Nonrecurring Basis [Line Items]
Fair Value	$ 31		$ 31		$ 1

FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Assets:
Mortgage and other loans receivable	$ 45,590	$ 46,984
Short-term investments	20,648	13,230
Cash	3,191	2,856	$ 3,361
Other assets	13,270	16,383
Liabilities:
Fortitude Re funds withheld payable	42,543	0
Other liabilities	28,264	26,609
Long-term debt and debt of consolidated investment entities	28,731	25,479
Carrying Value
Assets:
Mortgage and other loans receivable	45,590	46,984
Other invested assets	804	742
Short-term investments	13,434	7,887
Cash	3,191	2,856
Other assets	202	311
Liabilities:
Policyholder contract deposits associated with investment-type contracts	129,170	126,137
Fortitude Re funds withheld payable	37,407
Other liabilities	3,823	3,063
Long-term debt and debt of consolidated investment entities	36,068	33,288
Separate account liabilities - investment contracts	87,564	88,770
Total Fair Value
Assets:
Mortgage and other loans receivable	48,217	49,005
Other invested assets	804	741
Short-term investments	13,434	7,887
Cash	3,191	2,856
Other assets	202	311
Liabilities:
Policyholder contract deposits associated with investment-type contracts	144,097	133,246
Fortitude Re funds withheld payable	37,407
Other liabilities	3,823	3,063
Long-term debt and debt of consolidated investment entities	39,672	35,907
Separate account liabilities - investment contracts	87,564	88,770
Level 1
Assets:
Mortgage and other loans receivable	0	0
Other invested assets	0	0
Short-term investments	0	0
Cash	3,191	2,856
Other assets	188	291
Liabilities:
Policyholder contract deposits associated with investment-type contracts	0	0
Fortitude Re funds withheld payable	0
Other liabilities	0	15
Long-term debt and debt of consolidated investment entities	0	0
Separate account liabilities - investment contracts	0	0
Level 2
Assets:
Mortgage and other loans receivable	99	101
Other invested assets	798	735
Short-term investments	13,434	7,887
Cash	0	0
Other assets	14	20
Liabilities:
Policyholder contract deposits associated with investment-type contracts	224	255
Fortitude Re funds withheld payable	0
Other liabilities	3,823	3,048
Long-term debt and debt of consolidated investment entities	31,391	27,024
Separate account liabilities - investment contracts	87,564	88,770
Level 3
Assets:
Mortgage and other loans receivable	48,118	48,904
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	143,873	132,991
Fortitude Re funds withheld payable	37,407
Other liabilities	0	0
Long-term debt and debt of consolidated investment entities	8,281	8,883
Separate account liabilities - investment contracts	$ 0	$ 0

INVESTMENTS (Details - Amortized cost or cost and fair value of available for sale securities) - USD ($) $ in Millions	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost or Cost, Net of Allowance	$ 242,470		$ 233,230
Available for sale securities, Allowance for Credit Losses	(236)	$ (198)	0
Available for sale securities, Fair Value	265,965		251,086
Bonds available for sale
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost or Cost, Net of Allowance	242,470		233,230
Available for sale securities, Allowance for Credit Losses	(236)
Available for sale securities, Gross Unrealized Gains	25,440		18,671
Available for sale securities, Gross Unrealized Losses	(1,709)		(815)
Available for sale securities, Fair Value	265,965		251,086
Other details of available for sale securities
Available for sale securities not rated or rated below investment grade	27,500		27,800
Bonds available for sale \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Other-Than-Temporary Impairments in AOCI			1,186
Bonds available for sale \| U.S. government and government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost or Cost, Net of Allowance	4,319		5,108
Available for sale securities, Allowance for Credit Losses	0
Available for sale securities, Gross Unrealized Gains	840		316
Available for sale securities, Gross Unrealized Losses	(24)		(44)
Available for sale securities, Fair Value	5,135		5,380
Bonds available for sale \| U.S. government and government sponsored entities \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Other-Than-Temporary Impairments in AOCI			0
Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost or Cost, Net of Allowance	14,027		13,960
Available for sale securities, Allowance for Credit Losses	0
Available for sale securities, Gross Unrealized Gains	2,162		1,390
Available for sale securities, Gross Unrealized Losses	(16)		(32)
Available for sale securities, Fair Value	16,173		15,318
Bonds available for sale \| Obligations of states, municipalities and political subdivisions \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Other-Than-Temporary Impairments in AOCI			0
Bonds available for sale \| Non-U.S. governments
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost or Cost, Net of Allowance	14,240		14,042
Available for sale securities, Allowance for Credit Losses	(5)
Available for sale securities, Gross Unrealized Gains	1,046		884
Available for sale securities, Gross Unrealized Losses	(107)		(57)
Available for sale securities, Fair Value	15,174		14,869
Bonds available for sale \| Non-U.S. governments \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Other-Than-Temporary Impairments in AOCI			(18)
Bonds available for sale \| Corporate debt
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost or Cost, Net of Allowance	146,595		138,046
Available for sale securities, Allowance for Credit Losses	(206)
Available for sale securities, Gross Unrealized Gains	16,897		12,090
Available for sale securities, Gross Unrealized Losses	(1,180)		(500)
Available for sale securities, Fair Value	162,106		149,636
Bonds available for sale \| Corporate debt \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Other-Than-Temporary Impairments in AOCI			7
Bonds available for sale \| Mortgage-backed, asset-backed and collateralized
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost or Cost, Net of Allowance	63,289		62,074
Available for sale securities, Allowance for Credit Losses	(25)
Available for sale securities, Gross Unrealized Gains	4,495		3,991
Available for sale securities, Gross Unrealized Losses	(382)		(182)
Available for sale securities, Fair Value	67,377		65,883
Bonds available for sale \| Mortgage-backed, asset-backed and collateralized \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Other-Than-Temporary Impairments in AOCI			1,197
Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost or Cost, Net of Allowance	30,427		29,802
Available for sale securities, Allowance for Credit Losses	(24)
Available for sale securities, Gross Unrealized Gains	3,088		3,067
Available for sale securities, Gross Unrealized Losses	(77)		(64)
Available for sale securities, Fair Value	33,414		32,805
Bonds available for sale \| Residential mortgage-backed securities (RMBS) \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Other-Than-Temporary Impairments in AOCI			1,149
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost or Cost, Net of Allowance	14,841		13,879
Available for sale securities, Allowance for Credit Losses	(1)
Available for sale securities, Gross Unrealized Gains	1,017		576
Available for sale securities, Gross Unrealized Losses	(80)		(25)
Available for sale securities, Fair Value	15,777		14,430
Bonds available for sale \| Commercial mortgage-backed securities (CMBS) \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Other-Than-Temporary Impairments in AOCI			34
Bonds available for sale \| Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS)
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Amortized Cost or Cost, Net of Allowance	18,021		18,393
Available for sale securities, Allowance for Credit Losses	0
Available for sale securities, Gross Unrealized Gains	390		348
Available for sale securities, Gross Unrealized Losses	(225)		(93)
Available for sale securities, Fair Value	$ 18,186		18,648
Bonds available for sale \| Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) \| AOCI- OTTI
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Other-Than-Temporary Impairments in AOCI			$ 14

INVESTMENTS (Details - Securities available for sale in a loss position) - Bonds available for sale $ in Millions	Sep. 30, 2020 USD ($) security	Dec. 31, 2019 USD ($) security
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less than 12 Months	$ 35,078	$ 24,331
Gross Unrealized Losses, Less than 12 Months	1,221	493
Fair Value, 12 Months or More	4,991	7,362
Gross Unrealized Losses, 12 Months or More	273	322
Fair Value, Total	40,069	31,693
Gross Unrealized Losses, Total	$ 1,494	$ 815
Number of securities in an unrealized loss position \| security	7,335	5,695
Number of individual securities in continuous unrealized loss position for longer than twelve months \| security	940	1,254
U.S. government and government sponsored entities
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less than 12 Months	$ 366	$ 1,461
Gross Unrealized Losses, Less than 12 Months	24	44
Fair Value, 12 Months or More	0	63
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	366	1,524
Gross Unrealized Losses, Total	24	44
Obligations of states, municipalities and political subdivisions
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less than 12 Months	419	672
Gross Unrealized Losses, Less than 12 Months	11	21
Fair Value, 12 Months or More	103	246
Gross Unrealized Losses, 12 Months or More	5	11
Fair Value, Total	522	918
Gross Unrealized Losses, Total	16	32
Non-U.S. governments
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less than 12 Months	1,756	1,105
Gross Unrealized Losses, Less than 12 Months	56	12
Fair Value, 12 Months or More	291	343
Gross Unrealized Losses, 12 Months or More	51	45
Fair Value, Total	2,047	1,448
Gross Unrealized Losses, Total	107	57
Corporate debt
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less than 12 Months	20,936	11,868
Gross Unrealized Losses, Less than 12 Months	872	319
Fair Value, 12 Months or More	1,096	2,405
Gross Unrealized Losses, 12 Months or More	110	181
Fair Value, Total	22,032	14,273
Gross Unrealized Losses, Total	982	500
Residential mortgage-backed securities (RMBS)
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less than 12 Months	3,594	3,428
Gross Unrealized Losses, Less than 12 Months	43	28
Fair Value, 12 Months or More	163	1,367
Gross Unrealized Losses, 12 Months or More	17	36
Fair Value, Total	3,757	4,795
Gross Unrealized Losses, Total	60	64
Commercial mortgage-backed securities (CMBS)
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less than 12 Months	2,068	1,877
Gross Unrealized Losses, Less than 12 Months	71	16
Fair Value, 12 Months or More	185	367
Gross Unrealized Losses, 12 Months or More	9	9
Fair Value, Total	2,253	2,244
Gross Unrealized Losses, Total	80	25
Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS)
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Fair Value, Less than 12 Months	5,939	3,920
Gross Unrealized Losses, Less than 12 Months	144	53
Fair Value, 12 Months or More	3,153	2,571
Gross Unrealized Losses, 12 Months or More	81	40
Fair Value, Total	9,092	6,491
Gross Unrealized Losses, Total	$ 225	$ 93

INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Fixed Maturity Securities Available for Sale, Fair Value, Total	$ 265,965	$ 251,086
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost Net of Allowance	11,186
Due after one year through five years, Amortized Cost Net of Allowance	42,513
Due after five years through ten years, Amortized Cost Net of Allowance	41,049
Due after ten years, Amortized Cost Net of Allowance	84,222
Mortgage-backed, asset-backed and collateralized, Amortized Cost Net of Allowance	63,264
Available for sale securities, Amortized Cost or Cost, Net of Allowance	242,234
Due in one year or less, Fair Value	11,298
Due after one year through five years, Fair Value	43,869
Due after five years through ten years, Fair Value	44,725
Due after ten years, Fair Value	98,696
Mortgage-backed, asset-backed and collateralized, Fair Value	67,377
Fixed Maturity Securities Available for Sale, Fair Value, Total	$ 265,965	$ 251,086

INVESTMENTS (Details - Gross realized gains and gross realized losses from sales or maturities of available for sale securities) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Schedule of Available-for-sale Securities [Line Items]
Aggregate fair value of available for sale securities sold	$ 3,100	$ 4,500	$ 17,000	$ 17,300
Net realized capital gains (losses)	175	128	538	184
Fortitude
Schedule of Available-for-sale Securities [Line Items]
Net realized capital gains (losses)	147		269
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Gross Realized Gains	258	198	1,179	464
Gross Realized Losses	$ 83	$ 70	$ 641	$ 280

INVESTMENTS (Details - Carrying amounts of other invested assets) - USD ($) $ in Millions	9 Months Ended	84 Months Ended
	Sep. 30, 2020	Dec. 31, 2027	Dec. 31, 2019
Investments [Line Items]
Other invested assets	$ 17,915		$ 18,792
Alternative investments
Investments [Line Items]
Other invested assets	8,391		8,845
Investment real estate
Investments [Line Items]
Other invested assets	8,010		8,491
Net of accumulated depreciation on investment in real estate	780		703
All other investments
Investments [Line Items]
Other invested assets	1,514		1,456
All other investments \| Fortitude
Investments [Line Items]
Other invested assets	100
Hedge Funds
Investments [Line Items]
Other invested assets	$ 2,200		3,300
Hedge Fund Fair Value Redemption, Additional Percentage	63.00%	37.00%
Direct private equity
Investments [Line Items]
Other invested assets	$ 5,900		5,200
Affordable Housing Partnerships
Investments [Line Items]
Other invested assets	$ 270		$ 331

INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Jun. 02, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Investment Income [Line Items]
Total investment income		$ 3,933	$ 3,543	$ 10,094	$ 11,413
Investment expenses		133	135	420	381
Net investment income		3,800	3,408	9,674	11,032
Fortitude
Net Investment Income [Line Items]
Total investment income		466		582
Investment expenses		8		8
Net investment income		458		574
American International Group, Inc. \| Fortitude
Net Investment Income [Line Items]
Percentage of common stock held after closing of transaction	3.50%
Excluding Fortitude Re funds withheld assets
Net Investment Income [Line Items]
Total investment income		3,467		9,512
Investment expenses		125		412
Net investment income		3,342		9,100
Fixed maturity securities, including short-term investments
Net Investment Income [Line Items]
Total investment income		2,582	2,698	7,779	8,052
Fixed maturity securities, including short-term investments \| Fortitude
Net Investment Income [Line Items]
Total investment income		373		459
Fixed maturity securities, including short-term investments \| Excluding Fortitude Re funds withheld assets
Net Investment Income [Line Items]
Total investment income		2,209		7,320
Other fixed maturity securities
Net Investment Income [Line Items]
Total investment income		171	333	485	941
Derivative Fair Value Hedge Included In Effectiveness Gain Loss		8	146	206	195
Other fixed maturity securities \| Fortitude
Net Investment Income [Line Items]
Total investment income		7		10
Other fixed maturity securities \| Excluding Fortitude Re funds withheld assets
Net Investment Income [Line Items]
Total investment income		164		475
Equity securities
Net Investment Income [Line Items]
Total investment income		119	(51)	(16)	6
Equity securities \| Fortitude
Net Investment Income [Line Items]
Total investment income		0		0
Equity securities \| Excluding Fortitude Re funds withheld assets
Net Investment Income [Line Items]
Total investment income		119		(16)
Interest on mortgage and other loans
Net Investment Income [Line Items]
Total investment income		489	495	1,500	1,511
Interest on mortgage and other loans \| Fortitude
Net Investment Income [Line Items]
Total investment income		46		59
Interest on mortgage and other loans \| Excluding Fortitude Re funds withheld assets
Net Investment Income [Line Items]
Total investment income		443		1,441
Alternative investments
Net Investment Income [Line Items]
Total investment income		495	115	363	879
Alternative investments \| Fortitude
Net Investment Income [Line Items]
Total investment income		40		54
Alternative investments \| Excluding Fortitude Re funds withheld assets
Net Investment Income [Line Items]
Total investment income		455		309
Real estate
Net Investment Income [Line Items]
Total investment income		22	96	142	227
Real estate \| Fortitude
Net Investment Income [Line Items]
Total investment income		0		0
Real estate \| Excluding Fortitude Re funds withheld assets
Net Investment Income [Line Items]
Total investment income		22		142
Other investments
Net Investment Income [Line Items]
Total investment income		55	(143)	(159)	(203)
Derivative Fair Value Hedge Included In Effectiveness Gain Loss		21	$ 174	(195)	$ 220
Other investments \| Fortitude
Net Investment Income [Line Items]
Total investment income		0		0
Other investments \| Excluding Fortitude Re funds withheld assets
Net Investment Income [Line Items]
Total investment income		$ 55		$ (159)

INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($)

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

Sep. 30, 2019

Other-than-temporary impairments

$ 0

$ (24,000,000)

$ 0

$ (137,000,000)

Change in intent

(3,000,000)

Change in allowance for credit losses on fixed maturity securities

(81,000,000)

(310,000,000)

Change in allowance for credit losses on loans

(11,000,000)

(25,000,000)

(67,000,000)

(35,000,000)

Foreign exchange transactions

257,000,000

(203,000,000)

50,000,000

(242,000,000)

Variable annuity embedded derivatives, net of related hedges

(148,000,000)

311,000,000

1,034,000,000

10,000,000

All other derivatives and hedge accounting

(746,000,000)

466,000,000

219,000,000

601,000,000

Other

88,000,000

276,000,000

97,000,000

506,000,000

Excluding Fortitude Re funds withheld assets

(1,122,000,000)

929,000,000

65,000,000

887,000,000

Other-than-temporary impairments

Change in intent

(3,000,000)

Change in allowance for credit losses on fixed maturity securities

(77,000,000)

(299,000,000)

Change in allowance for credit losses on loans

(13,000,000)

(73,000,000)

Foreign exchange transactions

250,000,000

40,000,000

Variable annuity embedded derivatives, net of related hedges

(148,000,000)

1,034,000,000

All other derivatives and hedge accounting

(626,000,000)

365,000,000

Other

88,000,000

97,000,000

(498,000,000)

1,430,000,000

Fortitude

Other-than-temporary impairments

Change in intent

Change in allowance for credit losses on fixed maturity securities

(4,000,000)

(11,000,000)

Change in allowance for credit losses on loans

2,000,000

6,000,000

Foreign exchange transactions

7,000,000

10,000,000

Variable annuity embedded derivatives, net of related hedges

All other derivatives and hedge accounting

(120,000,000)

(146,000,000)

Other

Fixed maturity securities

(624,000,000)

(1,365,000,000)

Sales of fixed maturity securities

175,000,000

128,000,000

538,000,000

184,000,000

Fixed maturity securities | Excluding Fortitude Re funds withheld assets

Sales of fixed maturity securities

28,000,000

269,000,000

Fixed maturity securities | Fortitude

Sales of fixed maturity securities

147,000,000

269,000,000

Excluding Fortitude Re funds withheld embedded derivative

Excluding Fortitude Re funds withheld embedded derivative | Excluding Fortitude Re funds withheld assets

(466,000,000)

929,000,000

1,558,000,000

887,000,000

Excluding Fortitude Re funds withheld embedded derivative | Fortitude

(498,000,000)

1,430,000,000

Fortitude Re funds withheld embedded derivative

32,000,000

128,000,000

Fortitude Re funds withheld embedded derivative | Excluding Fortitude Re funds withheld assets

^[1]

(656,000,000)

$ 0

(1,493,000,000)

$ 0

Fortitude Re funds withheld embedded derivative | Fortitude

$ (656,000,000)

$ (1,493,000,000)

[1]	Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.

INVESTMENTS (Details - Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Increase (decrease) in unrealized appreciation (depreciation) of investments
Net gains and losses recognized during the year on equity securities	$ 583	$ 54	$ 248	$ 621
Less: Net gains and losses recognized during the year on equity securities sold during the year	(8)	31	24	199
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	591	23	224	422
Change in unrealized appreciation (depreciation) of investments	2,374	4,377	5,876	16,197
Fixed maturity securities
Increase (decrease) in unrealized appreciation (depreciation) of investments
Change in unrealized appreciation (depreciation) of investments	2,373	4,377	5,875	16,265
Equity securities
Increase (decrease) in unrealized appreciation (depreciation) of investments
Net gains and losses recognized during the year on equity securities	119	(51)	(16)	6
Less: Net gains and losses recognized during the year on equity securities sold during the year	(3)	18	14	30
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	122	(69)	(30)	(24)
Other investments
Increase (decrease) in unrealized appreciation (depreciation) of investments
Change in unrealized appreciation (depreciation) of investments	1	0	1	(68)
Other invested assets
Increase (decrease) in unrealized appreciation (depreciation) of investments
Net gains and losses recognized during the year on equity securities	464	105	264	615
Less: Net gains and losses recognized during the year on equity securities sold during the year	(5)	13	10	169
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date	$ 469	$ 92	$ 254	$ 446

INVESTMENTS (Details - Rollforward of changes in allowance for credit losses on available for sale fixed maturity securities by major investment category) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, balance, beginning of year	$ 198	$ 0
Securities for which allowance for credit losses were not previously recorded	31	330
Purchases of available for sale debt securities accounted for as PCD assets	0	26
Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets	0	1
Securities sold during the period	(7)	(13)
Intent to sell security or more like than not will be required to sell the security before recovery of its amortized cost basis	0	0
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intention to sell before recovery amortized cost basis	57	(7)
Write-offs charged against the allowance	(43)	(108)
Recoveries of amounts previously written off	0	0
Other	0	0
Securities available for sale, balance, end of period	236	236
Adjusted balance
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, balance, beginning of year		7
Structured Finance [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, balance, beginning of year	37
Securities for which allowance for credit losses were not previously recorded	1	36
Purchases of available for sale debt securities accounted for as PCD assets	0	26
Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets	0	1
Securities sold during the period	(2)	(3)
Intent to sell security or more like than not will be required to sell the security before recovery of its amortized cost basis	0	0
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intention to sell before recovery amortized cost basis	(10)	(41)
Write-offs charged against the allowance	0	0
Recoveries of amounts previously written off	0	0
Other	0	0
Securities available for sale, balance, end of period	26	26
Structured Finance [Member] \| Adjusted balance
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, balance, beginning of year		7
Non-structured [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, balance, beginning of year	161
Securities for which allowance for credit losses were not previously recorded	30	294
Purchases of available for sale debt securities accounted for as PCD assets	0	0
Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets	0	0
Securities sold during the period	(5)	(10)
Intent to sell security or more like than not will be required to sell the security before recovery of its amortized cost basis	0	0
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intention to sell before recovery amortized cost basis	67	34
Write-offs charged against the allowance	(43)	(108)
Recoveries of amounts previously written off	0	0
Other	0	0
Securities available for sale, balance, end of period	$ 210	210
Non-structured [Member] \| Adjusted balance
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, balance, beginning of year		$ 0

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, 2019
Other Than Temporary Impairment Credit Losses Recognized in Earnings
Balance, beginning of year	$ 34	$ 0
Increases due to:
Credit impairments on new securities subject to impairment losses	10	105
Additional credit impairments on previously impaired securities	8	14
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell	(3)	(62)
Accretion on securities previously impaired due to credit	(7)	(15)
Balance, end of year	$ 42	$ 42

INVESTMENTS (Details - Reconciliation of purchase price to unpaid principal balance of securities purchased with credit deterioration) $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($)
INVESTMENTS
Unpaid principal balance	$ 644
Allowance for expected credit losses at acquisition	(26)
Purchase (discount) premium	(149)
Purchase price	$ 469

INVESTMENTS (Details - Schedule of purchased credit impaired (PCI) securities) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Amortized cost			$ 242,470	$ 233,230
Bonds available for sale			$ 265,965	251,086
Purchased Credit Impaired (PCI) Securities
Schedule of Available-for-sale Securities [Line Items]
Contractually required payments (principal and interest)				35,139
Cash flows expected to be collected				28,720
Recorded investment in acquired securities				19,382
Outstanding principal balance				10,476
Amortized cost				6,970
Bonds available for sale				$ 8,664
Available for sale securities \| Purchased Credit Impaired (PCI) Securities
Changes in activity for the accretable yield on PCI securities:
Balance, beginning of year	$ 6,402	$ 7,210
Newly purchased PCI securities	4	17
Accretion	(172)	(495)
Effect of changes in interest rate indices	(278)	(678)
Net reclassification from (to) non-accretable difference, including effects of prepayments	(162)	(260)
Balance, end of year	$ 5,794	$ 5,794

INVESTMENTS (Details - Pledged investments) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Investments [Line Items]
Fair value of securities collateral pledged	$ 5,076	$ 2,567
Fair value of amount sold or repledged	0	121
Securities Lending Agreements, Fair Value of Collateral	3,312	2,798
Short-term investments held in escrow	476	330
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements	10,800	8,700
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	1,933	1,071
31 to 90 Days
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	1,379	1,333
91 to 364 Days
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0	394
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	5,700	4,300
Amount owned by subsidiaries	191	194
Residential loans pledged as collateral	1,500	1,800
Secured financing
Investments [Line Items]
Amounts Borrowed Under Repurchase and Securities Lending Agreements	3,700	3,100
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	352	232
Amounts Loaned under Reverse Repurchase Agreements	5,100	2,600
Secured financing \| Fixed Maturities [Member]
Investments [Line Items]
Fair value of fixed maturities securities available for sale	3,664	3,030
Secured financing \| Overnight and continuous
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	254	24
Secured financing \| Up to 30 Days
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	98	126
Secured financing \| 31 to 90 Days
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	0	82
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	102	386
Secured financing \| Bonds available for sale \| Non-U.S. governments
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	107	73
Secured financing \| Bonds available for sale \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	245	159
Securities Lending Agreements, Fair Value of Collateral	2,807	2,018
Secured financing \| Bonds available for sale \| Residential mortgage-backed securities (RMBS)
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	403	394
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	107	2
Secured financing \| Bonds available for sale \| Overnight and continuous \| Corporate debt
Investments [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	147	22
Securities Lending Agreements, Fair Value of Collateral	0	0
Secured financing \| Bonds available for sale \| Overnight and continuous \| Residential mortgage-backed securities (RMBS)
Investments [Line Items]
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	102	0
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	0	71
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	98	55
Securities Lending Agreements, Fair Value of Collateral	1,428	1,071
Secured financing \| Bonds available for sale \| Up to 30 Days \| Residential mortgage-backed securities (RMBS)
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	403	0
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	0	386
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
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	82
Securities Lending Agreements, Fair Value of Collateral	1,379	947
Secured financing \| Bonds available for sale \| 31 to 90 Days \| Residential mortgage-backed securities (RMBS)
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0	0
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	0	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
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	0	0
Secured financing \| Bonds available for sale \| 91 to 364 Days \| Residential mortgage-backed securities (RMBS)
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0	394
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
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 \| Bonds available for sale \| 365 Days or Greater \| Residential mortgage-backed securities (RMBS)
Investments [Line Items]
Securities Lending Agreements, Fair Value of Collateral	0	0
GIAs
Investments [Line Items]
Fair value of other bond securities	$ 1,500	$ 1,500

INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 6,286	$ 7,523
Other Securities, Percent of Total	100.00%	100.00%
Fixed maturity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 5,415	$ 6,682
Other Securities, Percent of Total	86.00%	89.00%
Fixed maturity securities \| U.S. government and government sponsored entities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 1,870	$ 2,121
Other Securities, Percent of Total	30.00%	28.00%
Fixed maturity securities \| Corporate debt
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 12	$ 18
Other Securities, Percent of Total	0.00%	0.00%
Fixed maturity securities \| Mortgage-backed, asset-backed and collateralized
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 3,533	$ 4,543
Other Securities, Percent of Total	56.00%	61.00%
Fixed maturity securities \| Residential mortgage-backed securities (RMBS)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 488	$ 489
Other Securities, Percent of Total	8.00%	7.00%
Fixed maturity securities \| Commercial mortgage-backed securities (CMBS)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 322	$ 322
Other Securities, Percent of Total	5.00%	4.00%
Fixed maturity securities \| Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 2,723	$ 3,732
Other Securities, Percent of Total	43.00%	50.00%
Equity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Securities, Fair Value	$ 871	$ 841
Other Securities, Percent of Total	14.00%	11.00%

LENDING ACTIVITIES (Details - Composition of mortgages and other loans receivable) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Jun. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 46,387	$ 47,422
Allowance for credit losses	(797)	(438)	$ (794)	$ (430)	$ (407)	$ (397)
Mortgage and other loans receivable, net	$ 45,590	46,984
Accrued interest receivable, balance sheet location	us-gaap:OtherAssets
Off-balance-sheet commitments	$ 66	0	58
Commercial mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	36,359	36,170
Allowance for credit losses	(659)	$ (336)	$ (667)	$ (335)	$ (310)	$ (318)
Loans on nonaccrual status	282
Accrued interest receivable	125
Off-balance-sheet commitments	$ 66
Commercial mortgages \| Geographic Concentration Risk \| Total Assets \| California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of mortgage loans in geographic area	10.00%	10.00%
Commercial mortgages \| Geographic Concentration Risk \| Total Assets \| New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of mortgage loans in geographic area	25.00%	23.00%
Residential mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 5,202	$ 6,683
Mortgage and other loans receivable, net	5,202
Loans on nonaccrual status	8
Accrued interest receivable	16
Life insurance policy loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	2,072	2,065
Commercial loans, other loans and notes receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage and other loans receivable	$ 2,754	$ 2,504

LENDING ACTIVITIES (Details - Credit quality of commercial mortgages) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 646
2019	1,248
2018	527
2017	866
2016	973
Prior	942
Mortgage and other loans receivable, net	46,387	$ 47,422
Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
2020	1,736
2019	5,924
2018	6,309
2017	4,202
2016	5,258
Prior	12,930
Mortgage and other loans receivable, net	36,359	36,170
Less than 65% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
2020	1,571
2019	3,594
2018	4,796
2017	3,050
2016	3,251
Prior	10,136
Mortgage and other loans receivable, net	26,398
65% to 75% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
2020	163
2019	1,858
2018	1,513
2017	974
2016	1,292
Prior	1,751
Mortgage and other loans receivable, net	7,551
76% to 80% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	88
2018	0
2017	124
2016	98
Prior	500
Mortgage and other loans receivable, net	810
Greater than 80% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
2020	2
2019	384
2018	0
2017	54
2016	617
Prior	543
Mortgage and other loans receivable, net	1,600
Greater than 1.2x \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
2020	1,577
2019	5,452
2018	5,506
2017	4,008
2016	5,002
Prior	11,150
Mortgage and other loans receivable, net	32,695
Greater than 1.2x \| Less than 65% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		23,013
Greater than 1.2x \| 65% to 75% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		9,007
Greater than 1.2x \| 76% to 80% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		200
Greater than 1.2x \| Greater than 80% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		184
Greater than 1.2x \| Total \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		32,404
1.00X - 1.20X \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
2020	157
2019	393
2018	457
2017	108
2016	162
Prior	1,382
Mortgage and other loans receivable, net	2,659
1.00X - 1.20X \| Less than 65% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		2,440
1.00X - 1.20X \| 65% to 75% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		899
1.00X - 1.20X \| 76% to 80% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		6
1.00X - 1.20X \| Greater than 80% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		2
1.00X - 1.20X \| Total \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		3,347
Less than 1.00X \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
2020	2
2019	79
2018	346
2017	86
2016	94
Prior	398
Mortgage and other loans receivable, net	$ 1,005
Less than 1.00X \| Less than 65% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		245
Less than 1.00X \| 65% to 75% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		40
Less than 1.00X \| 76% to 80% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		0
Less than 1.00X \| Greater than 80% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		134
Less than 1.00X \| Total \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		419
Total \| Less than 65% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		25,698
Total \| 65% to 75% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		9,946
Total \| 76% to 80% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		206
Total \| Greater than 80% \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		320
Total \| Total \| Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net		$ 36,170

LENDING ACTIVITIES (Details - Credit quality performance indicators for commercial mortgages) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($) loan	Dec. 31, 2019 USD ($) loan	Jun. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net	$ 45,590	$ 46,984
Allowance for credit losses	$ 797	$ 438	$ 794	$ 430	$ 407	$ 397
Debt Coverage Ratio	2.2	2.0
Average Loan to Value Ratio	57.00%	56.00%
Apartments
Financing Receivable, Credit Quality Indicator [Line Items]
In good standing	$ 13,704	$ 13,698
Restructured	0	0
90 days or less delinquent	0	1
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	13,704	13,699
Allowance for credit losses, Specific		0
Allowance for credit losses, General		81
Allowance for credit losses	123	81
Offices
Financing Receivable, Credit Quality Indicator [Line Items]
In good standing	10,843	10,553
Restructured	0	89
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	116	0
Mortgage and other loans receivable, net	10,959	10,642
Allowance for credit losses, Specific		2
Allowance for credit losses, General		153
Allowance for credit losses	281	155
Retail
Financing Receivable, Credit Quality Indicator [Line Items]
In good standing	5,124	5,332
Restructured	50	0
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	54	0
Mortgage and other loans receivable, net	5,228	5,332
Allowance for credit losses, Specific		1
Allowance for credit losses, General		44
Allowance for credit losses	141	45
Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
In good standing	3,746	3,663
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	3,746	3,663
Allowance for credit losses, Specific		0
Allowance for credit losses, General		30
Allowance for credit losses	55	30
Hotel
Financing Receivable, Credit Quality Indicator [Line Items]
In good standing	2,080	2,211
Restructured	0	101
90 days or less delinquent	108	0
Greater than 90 days delinquent or in process of foreclosure	86	0
Mortgage and other loans receivable, net	2,274	2,312
Allowance for credit losses, Specific		6
Allowance for credit losses, General		14
Allowance for credit losses	52	20
Others
Financing Receivable, Credit Quality Indicator [Line Items]
In good standing	448	522
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	448	522
Allowance for credit losses, Specific		0
Allowance for credit losses, General		5
Allowance for credit losses	$ 7	$ 5
Commercial mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Number of loans in good standing \| loan	700	736
Number of loans restructured \| loan	3	3
Number of loans 90 days or less delinquent \| loan	1	1
Number of loans greater than 90 days delinquent or in process of foreclosure \| loan	5	0
Number of Loans \| loan	709	740
In good standing	$ 35,945	$ 35,979
Restructured	50	190
90 days or less delinquent	108	1
Greater than 90 days delinquent or in process of foreclosure	256	0
Mortgage and other loans receivable, net	36,359	36,170
Allowance for credit losses, Specific		9
Allowance for credit losses, General		327
Allowance for credit losses	$ 659	$ 336
Percentage of loans that are current as to payments of principal and interest	99.00%	99.00%
Percentage restructured	0.00%	1.00%
Percentage 90 days or less delinquent	0.00%	0.00%
Percentage greater than 90 days delinquent or in foreclosure	1.00%	0.00%
Percentage Total	100.00%	100.00%
Percentage of loans with valuation allowance, Specific		0.00%
Percentage of loans with valuation allowance, General		1.00%
Percentage of loans with allowance for losses	2.00%	1.00%

LENDING ACTIVITIES (Details - Credit quality of residential mortgages by year of vintage) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 646
2019	1,248
2018	527
2017	866
2016	973
Prior	942
Mortgage and other loans receivable, net	45,590	$ 46,984
Residential mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Mortgage and other loans receivable, net	5,202
780 and greater
Financing Receivable, Credit Quality Indicator [Line Items]
2020	309
2019	764
2018	364
2017	627
2016	688
Prior	650
Mortgage and other loans receivable, net	3,402
720 - 779
Financing Receivable, Credit Quality Indicator [Line Items]
2020	326
2019	411
2018	123
2017	182
2016	221
Prior	197
Mortgage and other loans receivable, net	1,460
660 - 719
Financing Receivable, Credit Quality Indicator [Line Items]
2020	10
2019	67
2018	33
2017	48
2016	56
Prior	73
Mortgage and other loans receivable, net	287
600 - 659
Financing Receivable, Credit Quality Indicator [Line Items]
2020	1
2019	6
2018	6
2017	7
2016	5
Prior	13
Mortgage and other loans receivable, net	38
Less than 600
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	1
2017	2
2016	3
Prior	9
Mortgage and other loans receivable, net	$ 15

LENDING ACTIVITIES (Details - Rollforward of the changes in the allowance for losses on Mortgage and other loans receivable) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Dec. 31, 2019
Changes in the allowance for losses on Mortgage and other loans receivable
Mortgage and other loan receivables, balance, beginning of year	$ 794,000,000	$ 407,000,000	$ 438,000,000	$ 397,000,000
Initial allowance upon adoption	0	0	318,000,000	0
Loans charged off	0	(2,000,000)	(12,000,000)	(2,000,000)
Recoveries of loans previously charged off	0	0	0	0
Net charge-offs	0	(2,000,000)	(12,000,000)	(2,000,000)
Provision for loan losses	3,000,000	25,000,000	53,000,000	35,000,000
Mortgage and other loan receivables, balance, end of period	797,000,000	430,000,000	797,000,000	430,000,000
Loans modified in a troubled debt restructuring	50,000,000	0	50,000,000	0
Off-balance-sheet commitments	66,000,000		66,000,000		$ 58,000,000	$ 0
Commercial mortgages
Changes in the allowance for losses on Mortgage and other loans receivable
Mortgage and other loan receivables, balance, beginning of year	667,000,000	310,000,000	336,000,000	318,000,000
Initial allowance upon adoption	0	0	311,000,000	0
Loans charged off	0	(2,000,000)	(12,000,000)	(2,000,000)
Recoveries of loans previously charged off	0	0	0	0
Net charge-offs	0	(2,000,000)	(12,000,000)	(2,000,000)
Provision for loan losses	(8,000,000)	27,000,000	24,000,000	19,000,000
Mortgage and other loan receivables, balance, end of period	659,000,000	335,000,000	659,000,000	335,000,000
Allowance related to individually assessed credit losses		10,000,000		10,000,000
Commercial mortgage loans		151,000,000		151,000,000
Off-balance-sheet commitments	66,000,000		66,000,000
Other Loans
Changes in the allowance for losses on Mortgage and other loans receivable
Mortgage and other loan receivables, balance, beginning of year	127,000,000	97,000,000	102,000,000	79,000,000
Initial allowance upon adoption	0	0	7,000,000	0
Loans charged off	0	0	0	0
Recoveries of loans previously charged off	0	0	0	0
Net charge-offs	0	0	0	0
Provision for loan losses	11,000,000	(2,000,000)	29,000,000	16,000,000
Mortgage and other loan receivables, balance, end of period	$ 138,000,000	$ 95,000,000	$ 138,000,000	$ 95,000,000

REINSURANCE (Details - Summary of the composition of pool of assets) - USD ($) $ in Millions	4 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Effects of Reinsurance [Line Items]
Available for sale securities, Fair Value	$ 265,965	$ 251,086
Fixed maturity securities - fair value option	5,415	6,682
Investments	17,915	18,792
Policy Loans	46,387	47,422
Derivative assets, net	789	793
Other	13,270	16,383
Fixed maturity securities - available for sale	265,965	251,086
Fixed maturity securities - fair value option	5,415	6,682
Real estate investments	7,064	6,827
Derivative assets, net	7,613	5,026
Other	901	3,151
Commercial mortgages
Effects of Reinsurance [Line Items]
Policy Loans	36,359	$ 36,170
Fortitude Holdings
Effects of Reinsurance [Line Items]
Available for sale securities, Fair Value	35,775
Fixed maturity securities - fair value option	204
Derivative assets, net	0
Other	687
Total	42,024
Fixed maturity securities - available for sale	35,775
Fixed maturity securities - fair value option	204
Derivative assets, net	0
Other	687
Total	42,542
Sale securities, Gross	722
Sale securities, Net	570
Derivative asset, Fair value	471
Fortitude Holdings \| Real Estate Funds
Effects of Reinsurance [Line Items]
Investments	366
Real estate investments	595
Fortitude Holdings \| Direct private equity
Effects of Reinsurance [Line Items]
Investments	992
Real estate investments	992
Fortitude Holdings \| Policy Loans
Effects of Reinsurance [Line Items]
Policy Loans	423
Commercial mortgage loans	423
Fortitude Holdings \| Commercial mortgages
Effects of Reinsurance [Line Items]
Policy Loans	3,577
Commercial mortgage loans	$ 3,866

REINSURANCE (Details - Summary of the impact of modco and funds withheld) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

Sep. 30, 2019

$ 3,800

$ 3,408

$ 9,674

$ 11,032

Loss from continuing operations before income tax benefit

(1,122)

929

887

368

1,260

(6,735)

4,251

Income tax benefit

287

(918)

950

Net loss

$ 299

$ 973

$ (5,813)

$ 3,300

U.S. federal income tax at statutory rate (as a percent)

21.00%

Fortitude Re funds withheld assets

^[1]

$ 458

$ 0

$ 574

$ 0

^[1]

$ 0

128

$ 0

Fortitude Holdings

Net underwriting income

458

574

Loss from continuing operations before income tax benefit

(624)

(1,365)

(166)

(791)

Income tax benefit

(35)

(166)

Net loss

(131)

(625)

Change in net unrealized gains (losses) on real estate investments

132

570

Total economic impact to AIG

(55)

Fortitude Holdings | Fortitude Re funds withheld assets

Fortitude Holdings | Fortitude Re funds withheld assets | Embedded derivatives

128