Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 29, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'AMERICAN INTERNATIONAL GROUP INC | ' |
Entity Central Index Key | '0000005272 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 1,399,912,329 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fixed maturity securities: | ' | ' |
Bonds available for sale, at fair value (amortized cost: 2014 - $249,920; 2013 - $248,531) | $265,786 | $258,274 |
Other bond securities, at fair value (See Note 6) | 20,381 | 22,623 |
Equity securities: | ' | ' |
Common and preferred stock available for sale, at fair value (cost: 2014 - $2,066; 2013 - $1,726) | 4,344 | 3,656 |
Other common and preferred stock, at fair value (See Note ##NInvestments) | 766 | 834 |
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2014 - $6; 2013 - $0) | 23,397 | 20,765 |
Other invested assets (portion measured at fair value: 2014 - $9,045; 2013 - $8,598) | 33,908 | 28,659 |
Short-term investments (portion measured at fair value: 2014 - $4,191; 2013 - $6,313) | 17,852 | 21,617 |
Total investments | 366,434 | 356,428 |
Cash | 1,933 | 2,241 |
Accrued investment income | 2,877 | 2,905 |
Premiums and other receivables, net of allowance | 13,236 | 12,939 |
Reinsurance assets, net of allowance | 23,864 | 23,829 |
Deferred income taxes | 19,606 | 21,925 |
Deferred policy acquisition costs | 9,603 | 9,436 |
Derivative assets, at fair value | 1,588 | 1,665 |
Other assets, including restricted cash of $1,238 in 2014 and $865 in 2013 (portion measured at fair value: 2014 - $0; 2013 - $418) | 10,239 | 9,366 |
Separate account assets, at fair value | 77,810 | 71,059 |
Assets held-for-sale | 0 | 29,536 |
Total assets | 527,190 | 541,329 |
Liabilities: | ' | ' |
Liability for unpaid claims and claims adjustment expense | 78,674 | 81,547 |
Unearned premiums | 23,695 | 21,953 |
Future policy benefits for life and accident and health insurance contracts | 42,431 | 40,653 |
Policyholder contract deposits (portion measured at fair value: 2014 - $1,044; 2013 - $384) | 123,744 | 122,016 |
Other policyholder funds (portion measured at fair value: 2014 - $8; 2013 - $0) | 4,718 | 5,083 |
Derivative liabilities, at fair value | 2,502 | 2,511 |
Other liabilities (portion measured at fair value: 2014 - $402; 2013 - $933) | 28,410 | 29,155 |
Long-term debt (portion measured at fair value: 2014 - $5,667; 2013 - $6,747) | 36,223 | 41,693 |
Separate account liabilities | 77,810 | 71,059 |
Liabilities held-for-sale | 0 | 24,548 |
Total liabilities | 418,207 | 440,218 |
Contingencies, commitments and guarantees (see Note 10) | ' | ' |
Redeemable noncontrolling interests (see Note 12) | 0 | 30 |
AIG shareholders' equity: | ' | ' |
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2014 - 1,906,671,492 and 2013 - 1,906,645,689 | 4,766 | 4,766 |
Treasury stock, at cost; 2014 - 502,898,541 shares; 2013 - 442,582,366 shares | -17,720 | -14,520 |
Additional paid-in capital | 80,904 | 80,899 |
Retained earnings | 29,300 | 22,965 |
Accumulated other comprehensive income | 11,331 | 6,360 |
Total AIG shareholders equity | 108,581 | 100,470 |
Non-redeemable noncontrolling interests (including $100 associated with businesses held for sale in 2013) | 402 | 611 |
Total equity | 108,983 | 101,081 |
Total liabilities and equity | $527,190 | $541,329 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical - assets and liabilities) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Bonds available for sale, amortized cost | $249,920 | $248,531 |
Common and preferred stocks available for sale, cost | 2,066 | 1,726 |
Mortgage and other loans receivable, portion measured at fair value | 6 | 0 |
Other invested assets, portion measured at fair value | 9,045 | 8,598 |
Short-term investments, portion measured at fair value | 4,191 | 6,313 |
Other assets, restriced cash | 1,238 | 865 |
Other assets, portion measured at fair value | 0 | 418 |
Liabilities: | ' | ' |
Policyholder contract deposits, portion measured at fair value | 1,044 | 384 |
Other Policyholder contract deposits, portion measured at fair value | 8 | 0 |
Other liabilities, portion measured at fair value | 402 | 933 |
Long-term debt, portion measured at fair value | $5,667 | $6,747 |
CONDENSED_CONSOLIDATED_BALANCE2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical - equity) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
AIG shareholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $2.50 | $2.50 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 1,906,671,492 | 1,906,645,689 |
Treasury stock, shares of common stock | 502,898,541 | 442,582,366 |
Non-redeemable noncontrolling interests, associated with businesses held for sale | $0 | $100 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Premiums | $9,453 | $9,352 | $27,949 | $27,924 |
Policy fees | 743 | 645 | 2,136 | 1,883 |
Net investment income | 4,028 | 3,573 | 12,108 | 11,581 |
Net realized capital gains (losses): | ' | ' | ' | ' |
Total other-than-temporary impairments on available for sale securities | -34 | -33 | -116 | -90 |
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss) | -1 | -6 | -21 | -17 |
Net other-than-temporary impairments on available for sale securities recognized in net income (loss) | -35 | -39 | -137 | -107 |
Other realized capital gains (losses) | 505 | 291 | 495 | 2,250 |
Total net realized capital gains (losses) | 470 | 252 | 358 | 2,143 |
Aircraft leasing revenue | 0 | 1,118 | 1,602 | 3,303 |
Other income | 1,960 | 1,004 | 4,718 | 4,498 |
Total revenues | 16,654 | 15,944 | 48,871 | 51,332 |
Benefits, claims and expenses: | ' | ' | ' | ' |
Policyholder benefits and claims incurred | 7,203 | 7,416 | 20,771 | 22,234 |
Interest credited to policyholder account balances | 882 | 924 | 2,800 | 2,913 |
Amortization of deferred acquisition costs | 1,288 | 1,220 | 3,989 | 3,859 |
Other acquisition and insurance expenses | 2,117 | 2,251 | 6,447 | 6,734 |
Interest expense | 430 | 516 | 1,372 | 1,628 |
Aircraft leasing expenses | 0 | 1,119 | 1,585 | 3,243 |
Loss on extinguishment of debt | 742 | 81 | 1,014 | 459 |
Net (gain) loss on sale of divested businesses | -18 | 0 | -2,196 | 47 |
Other expenses | 991 | 1,239 | 3,317 | 2,997 |
Total benefits, claims and expenses | 13,635 | 14,766 | 39,099 | 44,114 |
Income from continuing operations before income tax expense | 3,019 | 1,178 | 9,772 | 7,218 |
Income tax expense (benefit) | 820 | -970 | 2,908 | 172 |
Income from continuing operations | 2,199 | 2,148 | 6,864 | 7,046 |
Income (loss) from discontinued operations, net of income tax expense | 2 | -18 | -15 | 73 |
Net income | 2,201 | 2,130 | 6,849 | 7,119 |
Less: | ' | ' | ' | ' |
Net income (loss) from continuing operations attributable to noncontrolling interests | 9 | -40 | -25 | 12 |
Net income attributable to AIG | $2,192 | $2,170 | $6,874 | $7,107 |
Basic: | ' | ' | ' | ' |
Income from continuing operations | $1.54 | $1.48 | $4.78 | $4.77 |
Income (loss) from discontinued operations | $0 | ($0.01) | ($0.01) | $0.05 |
Net income attributable to AIG | $1.54 | $1.47 | $4.77 | $4.82 |
Diluted: | ' | ' | ' | ' |
Income from continuing operations | $1.52 | $1.47 | $4.72 | $4.75 |
Income (loss) from discontinued operations | $0 | ($0.01) | ($0.01) | $0.05 |
Net income attributable to AIG | $1.52 | $1.46 | $4.71 | $4.80 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 1,419,239,774 | 1,475,053,126 | 1,440,148,774 | 1,476,007,034 |
Diluted (in shares) | 1,442,067,842 | 1,485,322,858 | 1,459,483,233 | 1,481,410,873 |
Dividend declared per common share (in dollars per share) | $0.13 | $0.10 | $0.38 | $0.10 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income (loss) | $2,201 | $2,130 | $6,849 | $7,119 |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' |
Change in unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken | 59 | -23 | 174 | 172 |
Change in unrealized appreciation (depreciation) of all other investments | -168 | -434 | 4,972 | -5,668 |
Change in foreign currency translation adjustments | -78 | -49 | -189 | -627 |
Change in net derivative gains (losses) arising from cash flow hedging activities | 0 | 0 | 0 | 0 |
Change in retirement plan liabilities adjustment | 6 | -26 | 13 | 35 |
Other comprehensive income (loss) | -181 | -532 | 4,970 | -6,088 |
Comprehensive income (loss) | 2,020 | 1,598 | 11,819 | 1,031 |
Comprehensive income (loss) attributable to noncontrolling interests | 8 | -42 | -26 | -11 |
Comprehensive income (loss) attributable to AIG | $2,012 | $1,640 | $11,845 | $1,042 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Total AIG Shareholders' Equity | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Non redeemable Non-controlling Interests |
In Millions, unless otherwise specified | ||||||||
Balance at Dec. 31, 2012 | $98,669 | $98,002 | $4,766 | ($13,924) | $80,410 | $14,176 | $12,574 | $667 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of common stock | -192 | -192 | ' | -192 | ' | ' | ' | ' |
Net income (loss) attributable to AIG or other noncontrolling interests | 7,119 | 7,107 | 0 | 0 | 0 | 7,107 | 0 | 12 |
Dividends | -147 | -147 | ' | ' | ' | -147 | ' | ' |
Other comprehensive income (loss) | -6,071 | -6,065 | 0 | 0 | 0 | 0 | -6,065 | -6 |
Net increase (decrease) due to deconsolidation | 1 | ' | ' | ' | ' | ' | ' | 1 |
Contributions from noncontrolling interests | 25 | 0 | 0 | 0 | 0 | 0 | 0 | 25 |
Distributions to noncontrolling interests | -37 | 0 | 0 | 0 | 0 | 0 | 0 | -37 |
Other | 82 | 88 | 0 | 1 | 87 | 0 | 0 | -6 |
Balance at Sep. 30, 2013 | 99,449 | 98,793 | 4,766 | -14,115 | 80,497 | 21,136 | 6,509 | 656 |
Balance at Dec. 31, 2013 | 101,081 | 100,470 | 4,766 | -14,520 | 80,899 | 22,965 | 6,360 | 611 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of common stock | -3,200 | -3,200 | 0 | -3,200 | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AIG or other noncontrolling interests | 6,849 | 6,874 | 0 | 0 | 0 | 6,874 | 0 | -25 |
Dividends | -539 | -539 | 0 | 0 | 0 | -539 | 0 | 0 |
Other comprehensive income (loss) | 4,970 | 4,971 | 0 | 0 | 0 | 0 | 4,971 | -1 |
Net increase (decrease) due to deconsolidation | -123 | 0 | 0 | 0 | 0 | 0 | 0 | -123 |
Contributions from noncontrolling interests | 13 | 0 | 0 | 0 | 0 | 0 | 0 | 13 |
Distributions to noncontrolling interests | -78 | 0 | 0 | 0 | 0 | 0 | 0 | -78 |
Other | 10 | 5 | 0 | 0 | 5 | 0 | 0 | 5 |
Balance at Sep. 30, 2014 | $108,983 | $108,581 | $4,766 | ($17,720) | $80,904 | $29,300 | $11,331 | $402 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $6,849 | $7,119 |
(Income) loss from discontinued operations | 15 | -73 |
Noncash revenues, expenses, gains and losses included in income (loss): | ' | ' |
Net gains on sales of securities available for sale and other assets | -602 | -2,159 |
Net (gain) loss on sale of divested businesses | -2,196 | 47 |
Net losses on extinguishment of debt | 1,014 | 459 |
Unrealized (gains) losses in earnings - net | -797 | -7 |
Equity in income from equity method investments, net of dividends or distributions | -1,106 | -944 |
Depreciation and other amortization | 3,372 | 3,558 |
Impairments of assets | 415 | 408 |
Changes in operating assets and liabilities: | ' | ' |
Property casualty and life insurance reserves | 184 | 768 |
Premiums and other receivables and payables - net | 41 | -44 |
Reinsurance assets and funds held under reinsurance treaties | -64 | -336 |
Capitalization of deferred policy acquisition costs | -4,546 | -4,412 |
Current and deferred income taxes - net | 2,291 | -206 |
Other, net | -513 | -230 |
Total adjustments | -2,507 | -3,098 |
Net cash provided by operating activities | 4,357 | 3,948 |
Sales or distribution of: | ' | ' |
Available for sale investments | 16,063 | 27,961 |
Other securities | 3,936 | 4,174 |
Other invested assets | 3,034 | 4,111 |
Divested businesses, net | 2,348 | 0 |
Maturities of fixed maturity securities available for sale | 18,628 | 19,907 |
Principal payments received on and sales of mortgage and other loans receivable | 2,552 | 2,721 |
Purchases of: | ' | ' |
Available for sale investments | -34,630 | -50,639 |
Other securities | -301 | -1,880 |
Other invested assets | -3,205 | -5,214 |
Mortgage and other loans receivable | -4,945 | -3,109 |
Net change in restricted cash | -660 | 1,251 |
Net change in short-term investments | 2,342 | 8,114 |
Other, net | -295 | -879 |
Net cash provided by investing activities | 4,867 | 6,518 |
Proceeds from (payments for) | ' | ' |
Policyholder contract deposits | 12,311 | 11,348 |
Policyholder contract withdrawals | -11,036 | -12,481 |
Issuance of long-term debt | 5,827 | 3,633 |
Repayments of long-term debt | -11,561 | -11,355 |
Purchase of Common Stock | -3,403 | -192 |
Dividends paid | -539 | -147 |
Other, net | -1,200 | -278 |
Net cash used in financing activities | -9,601 | -9,472 |
Effect of exchange rate changes on cash | -19 | -79 |
Net increase (decrease) in cash | -396 | 915 |
Cash at beginning of year | 2,241 | 1,151 |
Change in cash of businesses held-for-sale | 88 | -8 |
Cash at end of period | $1,933 | $2,058 |
Supplementary_Disclosure_of_Co
Supplementary Disclosure of Condensed Consolidated Cash Flow Information (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash paid during the period for: | ' | ' |
Interest | $2,496 | $2,951 |
Taxes | 614 | 378 |
Non-cash investing/financing activities: | ' | ' |
Interest credited to policyholder contract deposits included in financing activities | 3,007 | 2,977 |
Non-cash consideration received from sale of ILFC | $4,586 | $0 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2014 | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | ' |
1. BASIS OF PRESENTATION | |
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock, par value $2.50 per share, (AIG Common Stock) is listed on the New York Stock Exchange (NYSE: AIG) and the Tokyo Stock Exchange. Unless the context indicates otherwise, the terms “AIG,” “we,” “us” or “our” mean American International Group, Inc. and its consolidated subsidiaries and the term “AIG Parent” means American International Group, Inc. and not any of its consolidated subsidiaries. | |
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, 2013 (2013 Annual Report). The condensed consolidated financial information as of December 31, 2013 included herein has been derived from audited consolidated financial statements in the 2013 Annual Report. | |
Certain of our foreign subsidiaries included in the condensed consolidated financial statements report on different fiscal-period bases. The effect on our condensed 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 recorded. In the opinion of management, these condensed consolidated financial statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein. | |
Interim period operating results may not be indicative of the operating results for a full year. We evaluated the need to recognize or disclose events that occurred subsequent to September 30, 2014 and prior to the issuance of these condensed consolidated financial statements. | |
Sale of ILFC | |
On May 14, 2014, we completed the sale of 100 percent of the common stock of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. (AerCap), in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares (the AerCap Transaction). The total value of the consideration was based in part on AerCap’s closing price per share of $47.01 on May 13, 2014. ILFC’s results of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Condensed Consolidated Statements of Income through the date of the completion of the sale. ILFC’s assets and liabilities were classified as held-for-sale at December 31, 2013 in the Condensed Consolidated Balance Sheets. See Note 4 herein for further discussion. | |
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: | |
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; | |
liability for unpaid claims and claims adjustment expense; | |
reinsurance assets; | |
valuation of future policy benefit liabilities and timing and extent of loss recognition; | |
valuation of liabilities for guaranteed benefit features of variable annuity products; | |
estimated gross profits to value deferred acquisition costs for investment-oriented products; | |
impairment charges, including other-than-temporary impairments on available for sale securities, impairments on investments in life settlements and goodwill impairment; | |
liability for legal contingencies; and | |
fair value measurements of certain financial assets and liabilities. | |
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_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Accounting Standards Adopted During 2014 | |
Certain Obligations Resulting from Joint and Several Liability Arrangements | |
In February 2013, the Financial Accounting Standards Board (FASB) issued an accounting standard that requires us to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the sum of (i) the amount we agreed to pay on the basis of our arrangement among our co-obligors and (ii) any additional amount we expect to pay on behalf of our co-obligors. | |
We adopted the standard on its required effective date of January 1, 2014. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of an Investment within a Foreign Entity or of an Investment in a Foreign Entity | |
In March 2013, the FASB issued an accounting standard addressing whether consolidation guidance or foreign currency guidance applies to the release of the cumulative translation adjustment into net income when a parent sells all or a part of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or net assets that are a business (other than a sale of in-substance real estate) within a foreign entity. The standard also resolves the diversity in practice for the cumulative translation adjustment treatment in business combinations achieved in stages involving foreign entities. | |
Under the standard, the entire amount of the cumulative translation adjustment associated with the foreign entity should be released into earnings when there has been: (i) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents a complete or substantially complete liquidation of the foreign entity in which the subsidiary or the net assets had resided; (ii) a loss of a controlling financial interest in an investment in a foreign entity; or (iii) a change in accounting method from applying the equity method to an investment in a foreign entity to consolidating the foreign entity. | |
We adopted the standard on its required effective date of January 1, 2014 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Investment Company Guidance | |
In June 2013, the FASB issued an accounting standard that amends the criteria a company must meet to qualify as an investment company, clarifies the measurement guidance, and requires new disclosures for investment companies. An entity that is regulated by the Securities and Exchange Commission under the Investment Company Act of 1940 (the 1940 Act) qualifies as an investment company. Entities that are not regulated under the 1940 Act must have certain fundamental characteristics and must consider other characteristics to determine whether they qualify as investment companies. An entity’s purpose and design must be considered when making the assessment. | |
An entity that no longer meets the requirements to be an investment company as a result of this standard should present the change in its status as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. An entity that is an investment company should apply the standard prospectively as an adjustment to opening net assets as of the | |
effective date. The adjustment to net assets represents both the difference between the fair value and the carrying amount of the entity’s investments and any amount previously recognized in Accumulated other comprehensive income. | |
We adopted the standard on its required effective date of January 1, 2014 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Presentation of Unrecognized Tax Benefits | |
In July 2013, the FASB issued an accounting standard that requires a liability related to unrecognized tax benefits to be presented as a reduction to the related deferred tax asset for a net operating loss carryforward or a tax credit carryforward. When the carryforwards are not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the applicable jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with the related deferred tax asset. | |
We adopted the standard on its required effective date of January 1, 2014 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Future Application of Accounting Standards | |
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | |
In January 2014, the FASB issued an accounting standard that clarifies that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, so that the loan is derecognized and the real estate property is recognized, when either (i) the creditor obtains legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveys all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2014. Early adoption is permitted. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Reporting Discontinued Operations | |
In April 2014, the FASB issued an accounting standard that changes the requirements for presenting a component or group of components of an entity as a discontinued operation and requires new disclosures. Under the standard, the disposal of a component or group of components of an entity should be reported as a discontinued operation if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Disposals of equity method investments, or those reported as held-for-sale, must be presented as a discontinued operation if they meet the new definition. The standard also requires entities to provide disclosures about the disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation. | |
The standard is effective prospectively for all disposals of components (or classification of components as held-for-sale) of an entity that occur within interim and annual periods beginning on or after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications of components as held-for-sale) that have not been reported in financial statements previously issued. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Revenue Recognition | |
In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and other agreements that are governed under other GAAP guidance, but affects the revenue recognition for certain of our other activities. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2016 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is not permitted. We plan to adopt the standard on its required effective date of January 1, 2017 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. | |
Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | |
In June 2014, the FASB issued an accounting standard that changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The standard aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements such that they all will be accounted for as secured borrowings. The standard eliminates sale accounting for repurchase-to-maturity transactions and supersedes the standard under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. | |
The accounting guidance and new disclosure requirements for certain transactions accounted for as sales are effective for interim and annual reporting periods beginning after December 15, 2014, while the disclosure requirements for transactions accounted for as secured borrowings are effective for annual reporting periods beginning after December 15, 2014 and for interim reporting periods beginning after March 15, 2015. Early adoption is not permitted. We plan to adopt the standard on its required effective dates and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Accounting for Share-Based Payments with Performance Targets | |
In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We plan to adopt the standard on its required effective date of January 1, 2016 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity | |
In August 2014, the FASB issued an accounting standard that allows a reporting entity to measure the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity using the fair value of either its financial assets or financial liabilities, whichever is more observable. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied retrospectively to all relevant prior periods presented starting with January 1, 2010 or through a cumulative effect adjustment to retained earnings at the date of adoption. We plan to adopt the standard on its required effective date of January 1, 2016 and are assessing the impact of the standard on our consolidated financial condition, results of operations or cash flows. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
SEGMENT INFORMATION | ' | |||||||||||
SEGMENT INFORMATION | ' | |||||||||||
3. SEGMENT INFORMATION | ||||||||||||
We report the results of our operations consistent with the manner in which our chief operating decision makers review the business to assess performance and to allocate resources through two reportable segments: AIG Property Casualty and AIG Life and Retirement. We evaluate performance based on revenues and pre-tax income (loss), excluding results from discontinued operations, because we believe this provides more meaningful information on how our operations are performing. | ||||||||||||
The following tables present our operations by reportable segment: | ||||||||||||
2014 | 2013 | |||||||||||
Three Months Ended September 30, | Pre-tax Income (Loss) | Pre-tax Income (Loss) | ||||||||||
(in millions) | Total Revenues | from continuing operations | Total Revenues | from continuing operations | ||||||||
AIG Property Casualty | ||||||||||||
Commercial Insurance | $ | 5,971 | $ | 573 | $ | 5,760 | $ | 610 | ||||
Consumer Insurance | 3,362 | 131 | 3,359 | 93 | ||||||||
Other | 674 | 503 | 585 | 423 | ||||||||
Total AIG Property Casualty | 10,007 | 1,207 | 9,704 | 1,126 | ||||||||
AIG Life and Retirement | ||||||||||||
Retail | 3,318 | 1,160 | 2,884 | 941 | ||||||||
Institutional | 1,756 | 771 | 1,760 | 300 | ||||||||
Total AIG Life and Retirement | 5,074 | 1,931 | 4,644 | 1,241 | ||||||||
Other Operations | ||||||||||||
Mortgage Guaranty | 262 | 135 | 236 | 43 | ||||||||
Global Capital Markets | 72 | 58 | 87 | 29 | ||||||||
Direct Investment book | 430 | 228 | 147 | 52 | ||||||||
Corporate & Other | 978 | -676 | 217 | -1,347 | ||||||||
Aircraft Leasing | - | - | 1,118 | -1 | ||||||||
Consolidation and elimination | -9 | -1 | -9 | 1 | ||||||||
Total Other Operations | 1,733 | -256 | 1,796 | -1,223 | ||||||||
AIG Consolidation and elimination | -160 | 137 | -200 | 34 | ||||||||
Total AIG Consolidated | $ | 16,654 | $ | 3,019 | $ | 15,944 | $ | 1,178 | ||||
2014 | 2013 | |||||||||||
Nine Months Ended September 30, | Pre-tax Income (Loss) | Pre-tax Income (Loss) | ||||||||||
(in millions) | Total Revenues | from continuing operations | Total Revenues | from continuing operations | ||||||||
AIG Property Casualty | ||||||||||||
Commercial Insurance | $ | 17,502 | $ | 2,149 | $ | 17,229 | $ | 2,186 | ||||
Consumer Insurance | 9,962 | 315 | 10,212 | 337 | ||||||||
Other | 2,159 | 1,542 | 2,032 | 1,422 | ||||||||
Total AIG Property Casualty | 29,623 | 4,006 | 29,473 | 3,945 | ||||||||
AIG Life and Retirement | ||||||||||||
Retail | 9,056 | 2,563 | 9,326 | 3,114 | ||||||||
Institutional | 4,939 | 1,849 | 6,106 | 1,416 | ||||||||
Total AIG Life and Retirement | 13,995 | 4,412 | 15,432 | 4,530 | ||||||||
Other Operations | ||||||||||||
Mortgage Guaranty | 771 | 423 | 710 | 162 | ||||||||
Global Capital Markets | 417 | 332 | 592 | 431 | ||||||||
Direct Investment book | 1,260 | 855 | 1,373 | 1,084 | ||||||||
Corporate & Other | 1,771 | -544 | 1,123 | -3,093 | ||||||||
Aircraft Leasing | 1,602 | 17 | 3,303 | 60 | ||||||||
Consolidation and elimination | -24 | 1 | -28 | 3 | ||||||||
Total Other Operations | 5,797 | 1,084 | 7,073 | -1,353 | ||||||||
AIG Consolidation and elimination | -544 | 270 | -646 | 96 | ||||||||
Total AIG Consolidated | $ | 48,871 | $ | 9,772 | $ | 51,332 | $ | 7,218 |
HELDFORSALE_CLASSIFICATION_AND
HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS | ' | ||||||||
HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS | ' | ||||||||
4. HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS | |||||||||
Held-For-Sale Classification | |||||||||
On May 14, 2014, we completed the sale of 100 percent of the common stock of ILFC to AerCap Ireland Limited, a wholly owned subsidiary of AerCap, in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares, valued at approximately $4.6 billion based on AerCap’s closing price per share of $47.01 on May 13, 2014. Net cash proceeds to AIG were $2.4 billion after the settlement of intercompany loans, and AIG recorded pre-tax and after-tax gains of approximately $2.2 billion and $1.4 billion, respectively, for the nine-month period ended September 30, 2014. In connection with the AerCap Transaction, we entered into a five-year credit agreement for a senior unsecured revolving credit facility between AerCap Ireland Capital Limited, as borrower, and AIG Parent as lender (the Revolving Credit Facility). The Revolving Credit Facility provides for an aggregate commitment of $1.0 billion and permits loans for general corporate purposes after the closing of the AerCap Transaction. At September 30, 2014, no amounts were outstanding under the Revolving Credit Facility. | |||||||||
As a result of the AerCap Transaction, we own approximately 46 percent of the outstanding common stock of AerCap. This common stock is subject to certain restrictions as to the amount and timing of potential sales as set forth in the Stockholders’ Agreement and Registration Rights Agreement between AIG and AerCap. We account for our interest in AerCap using the equity method of accounting. The difference between the carrying amount of our investment in AerCap common stock and our share of the underlying equity in the net assets of AerCap was approximately $1.4 billion at September 30, 2014. Approximately $0.4 billion of this difference was allocated to the assets and liabilities of AerCap based on their respective fair values and is being amortized into income over the estimated lives of the related assets and liabilities. The remainder was allocated to goodwill. | |||||||||
ILFC’s results of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Condensed Consolidated Statements of Income through the date of the completion of the sale. ILFC’s assets and liabilities were classified as held-for-sale at December 31, 2013 in the Condensed Consolidated Balance Sheets. | |||||||||
The following table summarizes the components of ILFC assets and liabilities held-for-sale: | |||||||||
December 31, | |||||||||
(in millions) | 2013 | ||||||||
Assets: | |||||||||
Equity securities | $ | 3 | |||||||
Mortgage and other loans receivable, net | 229 | ||||||||
Flight equipment primarily under operating leases, net of accumulated depreciation | 35,508 | ||||||||
Short-term investments | 658 | ||||||||
Cash | 88 | ||||||||
Premiums and other receivables, net of allowance | 318 | ||||||||
Other assets | 2,066 | ||||||||
Assets held-for-sale | 38,870 | ||||||||
Less: Loss accrual | -9,334 | ||||||||
Total assets held-for-sale | $ | 29,536 | |||||||
Liabilities: | |||||||||
Other liabilities | $ | 3,127 | |||||||
Long-term debt | 21,421 | ||||||||
Total liabilities held-for-sale | $ | 24,548 | |||||||
Discontinued Operations | |||||||||
In connection with the 2010 sale of American Life Insurance Company (ALICO) to MetLife, Inc. (MetLife), we recognized the following income (loss) from discontinued operations: | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | ||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||
Revenues: | |||||||||
Gain (loss) on sale | $ | 5 | $ | -27 | $ | 56 | $ | 119 | |
Income (loss) from discontinued operations, before income tax | |||||||||
(benefit) expense | 5 | -27 | 56 | 119 | |||||
Income tax (benefit) expense | 3 | -9 | 71 | 46 | |||||
Income (loss) from discontinued operations, net of income tax | $ | 2 | $ | -18 | $ | -15 | $ | 73 |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||||
5. FAIR VALUE MEASUREMENTS | |||||||||||||||||||
Fair Value Measurements on a Recurring Basis | |||||||||||||||||||
Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs: | |||||||||||||||||||
Level 1: Fair value measurements based on quoted prices 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: | |||||||||||||||||||
31-Dec-13 | 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 | $ | 133 | $ | 3,062 | $ | - | $ | - | $ | - | $ | 3,195 | |||||||
Obligations of states, municipalities and political subdivisions | - | 28,300 | 1,080 | - | - | 29,380 | |||||||||||||
Non-U.S. governments | 508 | 21,985 | 16 | - | - | 22,509 | |||||||||||||
Corporate debt | - | 143,297 | 1,255 | - | - | 144,552 | |||||||||||||
RMBS | - | 21,207 | 14,941 | - | - | 36,148 | |||||||||||||
CMBS | - | 5,747 | 5,735 | - | - | 11,482 | |||||||||||||
CDO/ABS | - | 4,034 | 6,974 | - | - | 11,008 | |||||||||||||
Total bonds available for sale | 641 | 227,632 | 30,001 | - | - | 258,274 | |||||||||||||
Other bond securities: | |||||||||||||||||||
U.S. government and government sponsored entities | 78 | 5,645 | - | - | - | 5,723 | |||||||||||||
Obligations of states, municipalities and political subdivisions | - | 121 | - | - | - | 121 | |||||||||||||
Non-U.S. governments | - | 2 | - | - | - | 2 | |||||||||||||
Corporate debt | - | 1,169 | - | - | - | 1,169 | |||||||||||||
RMBS | - | 1,326 | 937 | - | - | 2,263 | |||||||||||||
CMBS | - | 509 | 844 | - | - | 1,353 | |||||||||||||
CDO/ABS | - | 3,158 | 8,834 | - | - | 11,992 | |||||||||||||
Total other bond securities | 78 | 11,930 | 10,615 | - | - | 22,623 | |||||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | 3,218 | - | 1 | - | - | 3,219 | |||||||||||||
Preferred stock | - | 27 | - | - | - | 27 | |||||||||||||
Mutual funds | 408 | 2 | - | - | - | 410 | |||||||||||||
Total equity securities available for sale | 3,626 | 29 | 1 | - | - | 3,656 | |||||||||||||
Other equity securities | 750 | 84 | - | - | - | 834 | |||||||||||||
Mortgage and other loans receivable | - | - | - | - | - | - | |||||||||||||
Other invested assets | 1 | 2,667 | 5,930 | - | - | 8,598 | |||||||||||||
Derivative assets: | |||||||||||||||||||
Interest rate contracts | 14 | 3,716 | 41 | - | - | 3,771 | |||||||||||||
Foreign exchange contracts | - | 52 | - | - | - | 52 | |||||||||||||
Equity contracts | 151 | 106 | 49 | - | - | 306 | |||||||||||||
Commodity contracts | - | - | 1 | - | - | 1 | |||||||||||||
Credit contracts | - | - | 55 | - | - | 55 | |||||||||||||
Other contracts | - | 1 | 33 | - | - | 34 | |||||||||||||
Counterparty netting and cash collateral | - | - | - | -1,734 | -820 | -2,554 | |||||||||||||
Total derivative assets | 165 | 3,875 | 179 | -1,734 | -820 | 1,665 | |||||||||||||
Short-term investments | 332 | 5,981 | - | - | - | 6,313 | |||||||||||||
Separate account assets | 67,708 | 3,351 | - | - | - | 71,059 | |||||||||||||
Other assets | - | 418 | - | - | - | 418 | |||||||||||||
Total | $ | 73,301 | $ | 255,967 | $ | 46,726 | $ | -1,734 | $ | -820 | $ | 373,440 | |||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | 72 | $ | 312 | $ | - | $ | - | $ | 384 | |||||||
Other policyholder funds | - | - | - | - | - | - | |||||||||||||
Derivative liabilities: | |||||||||||||||||||
Interest rate contracts | - | 3,661 | 141 | - | - | 3,802 | |||||||||||||
Foreign exchange contracts | - | 319 | - | - | - | 319 | |||||||||||||
Equity contracts | - | 101 | - | - | - | 101 | |||||||||||||
Commodity contracts | - | 5 | - | - | - | 5 | |||||||||||||
Credit contracts | - | - | 1,335 | - | - | 1,335 | |||||||||||||
Other contracts | - | 25 | 142 | - | - | 167 | |||||||||||||
Counterparty netting and cash collateral | - | - | - | -1,734 | -1,484 | -3,218 | |||||||||||||
Total derivative liabilities | - | 4,111 | 1,618 | -1,734 | -1,484 | 2,511 | |||||||||||||
Long-term debt | - | 6,377 | 370 | - | - | 6,747 | |||||||||||||
Other liabilities | 42 | 891 | - | - | - | 933 | |||||||||||||
Total | $ | 42 | $ | 11,451 | $ | 2,300 | $ | -1,734 | $ | -1,484 | $ | 10,575 | |||||||
(a) Represents netting of derivative exposures covered by a qualifying master netting agreement. | |||||||||||||||||||
(b) Effective April 1, 2014, we reclassified cross-currency swaps from Interest rate contracts to Foreign exchange contracts. This change was applied prospectively. | |||||||||||||||||||
Transfers of Level 1 and Level 2 Assets and Liabilities | |||||||||||||||||||
Our policy is to record transfers of assets and liabilities between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. During the three- and nine-month periods ended September 30, 2014, we transferred $32 million and $330 million, respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2, as they are no longer considered actively traded. For similar reasons, during the three- and nine-month periods ended September 30, 2014, we transferred $4 million and $107 million, respectively, of securities issued by the U.S. government and government sponsored entities from Level 1 to Level 2. We had no material transfers from Level 2 to Level 1 during the three- and nine-month periods ended September 30, 2014. | |||||||||||||||||||
During the three- and nine-month periods ended September 30, 2013, we transferred $174 million and $731 million, respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2, as they are no longer considered actively traded. For similar reasons, during the three- and nine-month periods ended September 30, 2013, we transferred $263 million and $356 million of securities issued by the U.S. government and government sponsored entities from Level 1 to Level 2. We had no material transfers from Level 2 to Level 1 during the three- and nine-month periods ended September 30, 2013. | |||||||||||||||||||
Changes in Level 3 Recurring Fair Value Measurements | |||||||||||||||||||
The following tables present changes during the three- and nine-month periods ended September 30, 2014 and 2013 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, 2014 and 2013: | |||||||||||||||||||
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||||
(in millions) | of Period(a) | in Income | Income (Loss) | Settlements, Net | in | out | of Period | at End of Period | |||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||||
and political subdivisions | $ | 1,991 | $ | -1 | $ | -11 | $ | 43 | $ | - | $ | -8 | $ | 2,014 | $ | - | |||
Non-U.S. governments | 25 | - | - | 1 | - | -3 | 23 | - | |||||||||||
Corporate debt | 2,196 | 2 | -22 | -73 | 3 | -97 | 2,009 | - | |||||||||||
RMBS | 16,328 | 264 | -49 | 375 | - | - | 16,918 | - | |||||||||||
CMBS | 5,917 | 27 | -39 | 14 | - | -3 | 5,916 | - | |||||||||||
CDO/ABS | 7,431 | 18 | -2 | 692 | 53 | -35 | 8,157 | - | |||||||||||
Total bonds available for sale | 33,888 | 310 | -123 | 1,052 | 56 | -146 | 35,037 | - | |||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 1,062 | - | - | -39 | - | - | 1,023 | -9 | |||||||||||
CMBS | 757 | -24 | - | -20 | - | - | 713 | -21 | |||||||||||
CDO/ABS | 8,397 | 257 | - | -451 | - | -134 | 8,069 | 76 | |||||||||||
Total other bond securities | 10,216 | 233 | - | -510 | - | -134 | 9,805 | 46 | |||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | - | - | 1 | - | - | -1 | - | - | |||||||||||
Preferred stock | - | - | - | - | - | - | - | - | |||||||||||
Mutual funds | - | - | - | - | 1 | - | 1 | - | |||||||||||
Total equity securities available for sale | - | - | 1 | - | 1 | -1 | 1 | - | |||||||||||
Mortgage and other loans receivable | 6 | - | - | - | - | - | 6 | - | |||||||||||
Other invested assets | 5,824 | -7 | 90 | 65 | 83 | -246 | 5,809 | - | |||||||||||
Total | $ | 49,934 | $ | 536 | $ | -32 | $ | 607 | $ | 140 | $ | -527 | $ | 50,658 | $ | 46 | |||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | -842 | $ | -155 | $ | 8 | $ | -2 | $ | - | $ | - | $ | -991 | $ | -21 | |||
Derivative liabilities, net: | |||||||||||||||||||
Interest rate contracts | -67 | -3 | - | 1 | - | -2 | -71 | -3 | |||||||||||
Foreign exchange contracts | -9 | - | - | 2 | - | - | -7 | - | |||||||||||
Equity contracts | 91 | 6 | - | 2 | - | -53 | 46 | - | |||||||||||
Commodity contracts | 1 | -1 | - | - | - | - | - | - | |||||||||||
Credit contracts | -1,085 | 75 | - | -8 | - | - | -1,018 | 65 | |||||||||||
Other contracts | -53 | 14 | 4 | -20 | - | - | -55 | 17 | |||||||||||
Total derivative liabilities, net | -1,122 | 91 | 4 | -23 | - | -55 | -1,105 | 79 | |||||||||||
Long-term debt(c) | -394 | 21 | - | 1 | - | 75 | -297 | 16 | |||||||||||
Total | $ | -2,358 | $ | -43 | $ | 12 | $ | -24 | $ | - | $ | 20 | $ | -2,393 | $ | 74 | |||
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||||
(in millions) | of Period(a) | in Income | Income (Loss) | Settlements, Net | in | out | of Period | at End of Period | |||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||||
and political subdivisions(b) | $ | 1,080 | $ | -1 | $ | 180 | $ | 896 | $ | - | $ | -141 | $ | 2,014 | $ | - | |||
Non-U.S. governments | 16 | - | -1 | 7 | 4 | -3 | 23 | - | |||||||||||
Corporate debt | 1,255 | 8 | 31 | -140 | 1,358 | -503 | 2,009 | - | |||||||||||
RMBS | 14,941 | 759 | 211 | 999 | 119 | -111 | 16,918 | - | |||||||||||
CMBS | 5,735 | 50 | 201 | -43 | 69 | -96 | 5,916 | - | |||||||||||
CDO/ABS | 6,974 | 70 | 1 | 1,426 | 222 | -536 | 8,157 | - | |||||||||||
Total bonds available for sale | 30,001 | 886 | 623 | 3,145 | 1,772 | -1,390 | 35,037 | - | |||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 937 | 51 | - | 33 | 2 | - | 1,023 | 9 | |||||||||||
CMBS | 844 | 14 | - | -151 | 6 | - | 713 | 11 | |||||||||||
CDO/ABS | 8,834 | 926 | - | -1,338 | 1 | -354 | 8,069 | 341 | |||||||||||
Total other bond securities | 10,615 | 991 | - | -1,456 | 9 | -354 | 9,805 | 361 | |||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | 1 | - | 1 | - | - | -2 | - | - | |||||||||||
Preferred stock | - | - | - | - | - | - | - | - | |||||||||||
Mutual funds | - | - | - | - | 1 | - | 1 | - | |||||||||||
Total equity securities available for sale | 1 | - | 1 | - | 1 | -2 | 1 | - | |||||||||||
Mortgage and other loans receivable | - | - | - | 6 | - | - | 6 | - | |||||||||||
Other invested assets | 5,930 | 80 | 139 | 99 | 168 | -607 | 5,809 | - | |||||||||||
Total | $ | 46,547 | $ | 1,957 | $ | 763 | $ | 1,794 | $ | 1,950 | $ | -2,353 | $ | 50,658 | $ | 361 | |||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | -312 | $ | -687 | $ | -16 | $ | 24 | $ | - | $ | - | $ | -991 | $ | -140 | |||
Derivative liabilities, net: | |||||||||||||||||||
Interest rate contracts | -100 | -2 | - | 33 | - | -2 | -71 | - | |||||||||||
Foreign exchange contracts | - | 3 | - | -10 | - | - | -7 | 4 | |||||||||||
Equity contracts | 49 | 14 | - | -12 | 48 | -53 | 46 | 6 | |||||||||||
Commodity contracts | 1 | - | - | - | - | -1 | - | - | |||||||||||
Credit contracts | -1,280 | 229 | - | 33 | - | - | -1,018 | 229 | |||||||||||
Other contracts | -109 | 49 | 51 | -46 | - | - | -55 | 37 | |||||||||||
Total derivative liabilities, net | -1,439 | 293 | 51 | -2 | 48 | -56 | -1,105 | 276 | |||||||||||
Long-term debt(c) | -370 | 13 | - | 34 | -70 | 96 | -297 | 15 | |||||||||||
Total | $ | -2,121 | $ | -381 | $ | 35 | $ | 56 | $ | -22 | $ | 40 | $ | -2,393 | $ | 151 | |||
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||||
(in millions) | of Period(a) | in Income | Income (Loss) | Settlements, Net | In | Out | of Period | at End of Period | |||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||||
and political subdivisions | $ | 945 | $ | 4 | $ | -28 | $ | 160 | $ | - | $ | -27 | $ | 1,054 | $ | - | |||
Non-U.S. governments | 20 | - | - | 1 | - | - | 21 | - | |||||||||||
Corporate debt | 1,634 | -3 | 5 | - | 39 | -233 | 1,442 | - | |||||||||||
RMBS | 13,694 | 216 | -60 | 127 | 167 | -58 | 14,086 | - | |||||||||||
CMBS | 5,455 | 4 | 55 | 102 | - | - | 5,616 | - | |||||||||||
CDO/ABS | 6,142 | 37 | -47 | 363 | 289 | -133 | 6,651 | - | |||||||||||
Total bonds available for sale | 27,890 | 258 | -75 | 753 | 495 | -451 | 28,870 | - | |||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 782 | 14 | - | -8 | 27 | - | 815 | 13 | |||||||||||
CMBS | 820 | 33 | - | -53 | 31 | - | 831 | 29 | |||||||||||
CDO/ABS | 8,972 | 243 | - | -557 | 223 | - | 8,881 | 217 | |||||||||||
Total other bond securities | 10,574 | 290 | - | -618 | 281 | - | 10,527 | 259 | |||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | 76 | - | -1 | -48 | - | - | 27 | - | |||||||||||
Preferred stock | 48 | - | - | - | - | - | 48 | - | |||||||||||
Total equity securities available for sale | 124 | - | -1 | -48 | - | - | 75 | - | |||||||||||
Other invested assets | 5,639 | -25 | 78 | 55 | 1 | - | 5,748 | - | |||||||||||
Total | $ | 44,227 | $ | 523 | $ | 2 | $ | 142 | $ | 777 | $ | -451 | $ | 45,220 | $ | 259 | |||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | -586 | $ | 250 | $ | - | $ | -51 | $ | - | $ | - | $ | -387 | $ | 218 | |||
Derivative liabilities, net: | |||||||||||||||||||
Interest rate contracts | 779 | 6 | - | -912 | - | - | -127 | 3 | |||||||||||
Equity contracts | 70 | 12 | - | -1 | 1 | - | 82 | 10 | |||||||||||
Commodity contracts | 1 | - | - | - | - | - | 1 | - | |||||||||||
Credit contracts | -1,594 | 52 | - | 36 | - | - | -1,506 | 91 | |||||||||||
Other contracts | -105 | 16 | -25 | -16 | -1 | - | -131 | 8 | |||||||||||
Total derivatives liabilities, net | -849 | 86 | -25 | -893 | - | - | -1,681 | 112 | |||||||||||
Long-term debt(c) | -419 | -25 | - | 1 | - | - | -443 | -19 | |||||||||||
Total | $ | -1,854 | $ | 311 | $ | -25 | $ | -943 | $ | - | $ | - | $ | -2,511 | $ | 311 | |||
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||||
(in millions) | of Period(a) | in Income | Income (Loss) | Settlements, Net | In | Out | of Period | at End of Period | |||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||||
and political subdivisions | $ | 1,024 | $ | 29 | $ | -178 | $ | 365 | $ | - | $ | -186 | $ | 1,054 | $ | - | |||
Non-U.S. governments | 14 | - | - | 7 | 1 | -1 | 21 | - | |||||||||||
Corporate debt | 1,487 | -7 | -9 | 30 | 371 | -430 | 1,442 | - | |||||||||||
RMBS | 11,662 | 624 | 279 | 1,393 | 186 | -58 | 14,086 | - | |||||||||||
CMBS | 5,124 | 15 | 75 | 290 | 161 | -49 | 5,616 | - | |||||||||||
CDO/ABS | 4,841 | 134 | -47 | 1,383 | 668 | -328 | 6,651 | - | |||||||||||
Total bonds available for sale | 24,152 | 795 | 120 | 3,468 | 1,387 | -1,052 | 28,870 | - | |||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 396 | 24 | - | 130 | 265 | - | 815 | -27 | |||||||||||
CMBS | 812 | 44 | - | -193 | 282 | -114 | 831 | -13 | |||||||||||
CDO/ABS | 8,536 | 1,096 | - | -1,566 | 843 | -28 | 8,881 | 434 | |||||||||||
Total other bond securities | 9,744 | 1,164 | - | -1,629 | 1,390 | -142 | 10,527 | 394 | |||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | 24 | - | 4 | -1 | - | - | 27 | - | |||||||||||
Preferred stock | 44 | - | 4 | - | - | - | 48 | - | |||||||||||
Total equity securities available for sale | 68 | - | 8 | -1 | - | - | 75 | - | |||||||||||
Other invested assets | 5,389 | 144 | 88 | 95 | 345 | -313 | 5,748 | - | |||||||||||
Total | $ | 39,353 | $ | 2,103 | $ | 216 | $ | 1,933 | $ | 3,122 | $ | -1,507 | $ | 45,220 | $ | 394 | |||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | -1,257 | $ | 865 | $ | - | $ | 5 | $ | - | $ | - | $ | -387 | $ | 825 | |||
Derivative liabilities, net: | |||||||||||||||||||
Interest rate contracts | 732 | 20 | - | -879 | - | - | -127 | 33 | |||||||||||
Equity contracts | 47 | 49 | - | -14 | - | - | 82 | 40 | |||||||||||
Commodity contracts | 1 | - | - | -1 | - | 1 | 1 | -1 | |||||||||||
Credit contracts | -1,991 | 365 | - | 120 | - | - | -1,506 | 486 | |||||||||||
Other contracts | -162 | 35 | -16 | 13 | -1 | - | -131 | 8 | |||||||||||
Total derivatives liabilities, net | -1,373 | 469 | -16 | -761 | -1 | 1 | -1,681 | 566 | |||||||||||
Long-term debt(c) | -344 | -120 | - | 23 | -2 | - | -443 | -41 | |||||||||||
Total | $ | -2,974 | $ | 1,214 | $ | -16 | $ | -733 | $ | -3 | $ | 1 | $ | -2,511 | $ | 1,350 | |||
(a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. | |||||||||||||||||||
(b) Purchases, Sales, Issues and Settlements, Net primarily reflect the effect of consolidating previously unconsolidated securitization vehicles. | |||||||||||||||||||
(c) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable. | |||||||||||||||||||
Net realized and unrealized gains and losses related to Level 3 items 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, 2014 | |||||||||||||||||||
Bonds available for sale | $ | 320 | $ | -22 | $ | 12 | $ | 310 | |||||||||||
Other bond securities | -3 | - | 236 | 233 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Other invested assets | 18 | -20 | -5 | -7 | |||||||||||||||
Policyholder contract deposits | - | -155 | - | -155 | |||||||||||||||
Derivative liabilities, net | 18 | -1 | 74 | 91 | |||||||||||||||
Long-term debt | - | - | 21 | 21 | |||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||
Bonds available for sale | $ | 264 | $ | -21 | $ | 15 | $ | 258 | |||||||||||
Other bond securities | 86 | 7 | 197 | 290 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Other invested assets | -12 | -5 | -8 | -25 | |||||||||||||||
Policyholder contract deposits | - | 250 | - | 250 | |||||||||||||||
Derivative liabilities, net | 11 | 8 | 67 | 86 | |||||||||||||||
Long-term debt | - | - | -25 | -25 | |||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||
Bonds available for sale | $ | 922 | $ | -73 | $ | 37 | $ | 886 | |||||||||||
Other bond securities | 97 | 2 | 892 | 991 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Other invested assets | 107 | -33 | 6 | 80 | |||||||||||||||
Policyholder contract deposits | - | -687 | - | -687 | |||||||||||||||
Derivative liabilities, net | 49 | 4 | 240 | 293 | |||||||||||||||
Long-term debt | - | - | 13 | 13 | |||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||
Bonds available for sale | $ | 713 | $ | -8 | $ | 90 | $ | 795 | |||||||||||
Other bond securities | 114 | 8 | 1,042 | 1,164 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Other invested assets | 142 | -34 | 36 | 144 | |||||||||||||||
Policyholder contract deposits | - | 865 | - | 865 | |||||||||||||||
Derivative liabilities, net | 26 | 25 | 418 | 469 | |||||||||||||||
Long-term debt | - | - | -120 | -120 | |||||||||||||||
The following tables present the gross components of purchases, sales, issues and settlements, net, shown above, for the three- and nine-months ended September 30, 2014 and 2013 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets: | |||||||||||||||||||
Purchases, | |||||||||||||||||||
Sales, Issues and | |||||||||||||||||||
(in millions) | Purchases | Sales | Settlements | Settlements, Net(a) | |||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities and political subdivisions | $ | 66 | $ | -3 | $ | -20 | $ | 43 | |||||||||||
Non-U.S. governments | 1 | - | - | 1 | |||||||||||||||
Corporate debt | 22 | - | -95 | -73 | |||||||||||||||
RMBS | 1,062 | -62 | -625 | 375 | |||||||||||||||
CMBS | 276 | -167 | -95 | 14 | |||||||||||||||
CDO/ABS | 1,085 | -68 | -325 | 692 | |||||||||||||||
Total bonds available for sale | 2,512 | -300 | -1,160 | 1,052 | |||||||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | - | -3 | -36 | -39 | |||||||||||||||
CMBS | - | -9 | -11 | -20 | |||||||||||||||
CDO/ABS | 6 | -4 | -453 | -451 | |||||||||||||||
Total other bond securities | 6 | -16 | -500 | -510 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Other invested assets | 276 | - | -211 | 65 | |||||||||||||||
Total assets | $ | 2,794 | $ | -316 | $ | -1,871 | $ | 607 | |||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | -36 | $ | 34 | $ | -2 | |||||||||||
Derivative liabilities, net | - | -2 | -21 | -23 | |||||||||||||||
Long-term debt(c) | - | - | 1 | 1 | |||||||||||||||
Total liabilities | $ | - | $ | -38 | $ | 14 | $ | -24 | |||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities and political subdivisions | $ | 194 | $ | -34 | $ | - | $ | 160 | |||||||||||
Non-U.S. governments | 1 | - | - | 1 | |||||||||||||||
Corporate debt | 146 | - | -146 | - | |||||||||||||||
RMBS | 750 | - | -623 | 127 | |||||||||||||||
CMBS | 179 | -3 | -74 | 102 | |||||||||||||||
CDO/ABS | 628 | - | -265 | 363 | |||||||||||||||
Total bonds available for sale | 1,898 | -37 | -1,108 | 753 | |||||||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 31 | -12 | -27 | -8 | |||||||||||||||
CMBS | - | -9 | -44 | -53 | |||||||||||||||
CDO/ABS | - | -66 | -491 | -557 | |||||||||||||||
Total other bond securities | 31 | -87 | -562 | -618 | |||||||||||||||
Equity securities available for sale | - | - | -48 | -48 | |||||||||||||||
Other invested assets | 249 | -3 | -191 | 55 | |||||||||||||||
Total assets | $ | 2,178 | $ | -127 | $ | -1,909 | $ | 142 | |||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | -4 | $ | -47 | $ | -51 | |||||||||||
Derivative liabilities, net | 4 | - | -897 | -893 | |||||||||||||||
Long-term debt(c) | - | - | 1 | 1 | |||||||||||||||
Total liabilities | $ | 4 | $ | -4 | $ | -943 | $ | -943 | |||||||||||
Purchases, | |||||||||||||||||||
Sales, Issues and | |||||||||||||||||||
(in millions) | Purchases | Sales | Settlements | Settlements, Net(a) | |||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities and political subdivisions(b) | $ | 1,002 | $ | -35 | $ | -71 | $ | 896 | |||||||||||
Non-U.S. governments | 8 | - | -1 | 7 | |||||||||||||||
Corporate debt | 141 | -8 | -273 | -140 | |||||||||||||||
RMBS | 2,814 | -88 | -1,727 | 999 | |||||||||||||||
CMBS | 368 | -224 | -187 | -43 | |||||||||||||||
CDO/ABS | 2,307 | -70 | -811 | 1,426 | |||||||||||||||
Total bonds available for sale | 6,640 | -425 | -3,070 | 3,145 | |||||||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 162 | -22 | -107 | 33 | |||||||||||||||
CMBS | - | -15 | -136 | -151 | |||||||||||||||
CDO/ABS | 50 | -19 | -1,369 | -1,338 | |||||||||||||||
Total other bond securities | 212 | -56 | -1,612 | -1,456 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Mortgage and other loans receivable | 6 | - | - | 6 | |||||||||||||||
Other invested assets | 709 | -1 | -609 | 99 | |||||||||||||||
Total assets | $ | 7,567 | $ | -482 | $ | -5,291 | $ | 1,794 | |||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | -94 | $ | 118 | $ | 24 | |||||||||||
Derivative liabilities, net | 1 | -2 | -1 | -2 | |||||||||||||||
Long-term debt(c) | - | - | 34 | 34 | |||||||||||||||
Total liabilities | $ | 1 | $ | -96 | $ | 151 | $ | 56 | |||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities and political subdivisions | $ | 502 | $ | -137 | $ | - | $ | 365 | |||||||||||
Non-U.S. governments | 9 | - | -2 | 7 | |||||||||||||||
Corporate debt | 454 | -114 | -310 | 30 | |||||||||||||||
RMBS | 3,462 | -231 | -1,838 | 1,393 | |||||||||||||||
CMBS | 872 | -167 | -415 | 290 | |||||||||||||||
CDO/ABS | 2,099 | -159 | -557 | 1,383 | |||||||||||||||
Total bonds available for sale | 7,398 | -808 | -3,122 | 3,468 | |||||||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 244 | -12 | -102 | 130 | |||||||||||||||
CMBS | 19 | -67 | -145 | -193 | |||||||||||||||
CDO/ABS | 318 | -66 | -1,818 | -1,566 | |||||||||||||||
Total other bond securities | 581 | -145 | -2,065 | -1,629 | |||||||||||||||
Equity securities available for sale | 58 | -11 | -48 | -1 | |||||||||||||||
Other invested assets | 697 | -49 | -553 | 95 | |||||||||||||||
Total assets | $ | 8,734 | $ | -1,013 | $ | -5,788 | $ | 1,933 | |||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | -16 | $ | 21 | $ | 5 | |||||||||||
Derivative liabilities, net | 9 | -1 | -769 | -761 | |||||||||||||||
Long-term debt(c) | - | - | 23 | 23 | |||||||||||||||
Total liabilities | $ | 9 | $ | -17 | $ | -725 | $ | -733 | |||||||||||
(a) There were no issuances during the three- and nine-month periods ended September 30, 2014 and 2013. | |||||||||||||||||||
(b) Purchases primarily reflect the effect of consolidating previously unconsolidated securitization vehicles. | |||||||||||||||||||
(c) Includes GIAs, notes, bonds, loans and mortgages payable. | |||||||||||||||||||
Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at September 30, 2014 and 2013 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities). | |||||||||||||||||||
Transfers of Level 3 Assets and Liabilities | |||||||||||||||||||
We record transfers of assets and liabilities into or out of Level 3 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. As a result, the Net realized and unrealized gains (losses) included in income or other comprehensive income as shown in the table above excludes $2 million of net losses and $35 million of net gains related to assets and liabilities transferred into Level 3 during the three- and nine-month periods ended September 30, 2014, respectively, and includes $52 million and $50 million of net gains related to assets and liabilities transferred out of Level 3 during the three- and nine-month periods ended September 30, 2014, respectively. | |||||||||||||||||||
The Net realized and unrealized gains (losses) included in income or other comprehensive income as shown in the table above excludes $43 million of net gains and $12 million of net losses related to assets and liabilities transferred into Level 3 during the three- and nine-month periods ended September 30, 2013, respectively, and includes $18 million and $30 million of net gains related to assets and liabilities transferred out of Level 3 during the three- and nine-month periods ended September 30, 2013, respectively. | |||||||||||||||||||
Transfers of Level 3 Assets | |||||||||||||||||||
During the three- and nine-month periods ended September 30, 2014 and 2013, transfers into Level 3 assets primarily included certain investments in private placement corporate debt, RMBS, CMBS, CDO/ABS, and investments in hedge funds. Transfers of investments in private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity. The transfers of investments in RMBS, CMBS and CDO and certain ABS into Level 3 assets were due to decreases in market transparency and liquidity for individual security types. Certain investments in hedge funds were transferred into Level 3 due to these investments now being carried at fair value and no longer being accounted for using the equity method of accounting due to a change in percentage ownership, or as a result of limited market activity due to fund-imposed redemption restrictions. | |||||||||||||||||||
During the three- and nine-month periods ended September 30, 2014 and 2013, transfers out of Level 3 assets primarily related to certain investments in municipal securities, private placement and other corporate debt, RMBS, CMBS, CDO/ABS, and investments in hedge funds. 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 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. The transfers of certain hedge fund investments out of Level 3 assets were primarily the result of easing of certain fund-imposed redemption restrictions. | |||||||||||||||||||
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, 2014 and 2013. | |||||||||||||||||||
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 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) | 2014 | Technique | Unobservable Input | (Weighted Average ) | |||||||||||||||
Assets: | |||||||||||||||||||
Obligations of states, | $ | 1,141 | Discounted cash flow | Yield(b) | 4.15% - 4.93% (4.54%) | ||||||||||||||
municipalities and | |||||||||||||||||||
political subdivisions | |||||||||||||||||||
Corporate debt | 1,217 | Discounted cash flow | Yield(b) | 0.00% - 8.57% (6.19%) | |||||||||||||||
RMBS | 17,384 | Discounted cash flow | Constant prepayment rate(a)(c) | 0.36% - 9.74% (5.05%) | |||||||||||||||
Loss severity(a)(c) | 45.61% - 79.52% (62.57%) | ||||||||||||||||||
Constant default rate(a)(c) | 3.84% - 10.46% (7.15%) | ||||||||||||||||||
Yield(c) | 2.51% - 6.61% (4.56%) | ||||||||||||||||||
Certain CDO/ABS | 5,321 | Discounted cash flow | Constant prepayment rate(a)(c) | 6.40% - 13.40% (9.90%) | |||||||||||||||
Loss severity(a)(c) | 43.80% - 59.90% (52.00%) | ||||||||||||||||||
Constant default rate(a)(c) | 2.60% - 14.90% (8.00%) | ||||||||||||||||||
Yield(c) | 4.70% - 10.30% (7.70%) | ||||||||||||||||||
CMBS | 6,048 | Discounted cash flow | Yield(b) | 0.00% - 13.01% (4.50%) | |||||||||||||||
CDO/ABS - Direct | Binomial Expansion | Recovery rate(b) | 7.00% - 58.00% (26.00%) | ||||||||||||||||
Investment book | 425 | Technique (BET) | Diversity score(b) | 6 - 23 (14) | |||||||||||||||
Weighted average life(b) | 0.25 - 10.32 years (4.09 years) | ||||||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract | |||||||||||||||||||
deposits | 991 | Discounted cash flow | Equity implied volatility(b) | 6.00% - 39.00% | |||||||||||||||
Base lapse rate(b) | 1.00% - 40.00% | ||||||||||||||||||
Dynamic lapse rate(b) | 0.20% - 60.00% | ||||||||||||||||||
Mortality rate(b) | 0.10% - 35.00% | ||||||||||||||||||
Utilization rate(b) | 0.50% - 30.00% | ||||||||||||||||||
Total derivative | |||||||||||||||||||
liabilities, net | 813 | BET | Recovery rate(b) | 5.00% - 32.00% (17.00%) | |||||||||||||||
Diversity score(b) | 9 - 27 (14) | ||||||||||||||||||
Weighted average life(b) | 2.69 - 10.32 years (4.67 years) | ||||||||||||||||||
Fair Value at | |||||||||||||||||||
December 31, | Valuation | Range | |||||||||||||||||
(in millions) | 2013 | Technique | Unobservable Input | (Weighted Average ) | |||||||||||||||
Assets: | |||||||||||||||||||
Obligations of states, | $ | 920 | Discounted cash flow | Yield(b) | 4.94% - 5.86% (5.40%) | ||||||||||||||
municipalities and | |||||||||||||||||||
political subdivisions | |||||||||||||||||||
Corporate debt | 788 | Discounted cash flow | Yield(b) | 0.00% - 14.29% (6.64%) | |||||||||||||||
RMBS | 14,419 | Discounted cash flow | Constant prepayment rate(a)(c) | 0.00% - 10.35% (4.97%) | |||||||||||||||
Loss severity(a)(c) | 42.60% - 79.07% (60.84%) | ||||||||||||||||||
Constant default rate(a)(c) | 3.98% - 12.22% (8.10%) | ||||||||||||||||||
Yield(c) | 2.54% - 7.40% (4.97%) | ||||||||||||||||||
Certain CDO/ABS | 5,414 | Discounted cash flow | Constant prepayment rate(a)(c) | 5.20% - 10.80% (8.20%) | |||||||||||||||
Loss severity(a)(c) | 48.60% - 63.40% (56.40%) | ||||||||||||||||||
Constant default rate(a)(c) | 3.20% - 16.20% (9.00%) | ||||||||||||||||||
Yield(c) | 5.20% - 11.50% (9.40%) | ||||||||||||||||||
CMBS | 5,847 | Discounted cash flow | Yield(b) | 0.00% - 14.69% (5.58%) | |||||||||||||||
CDO/ABS - Direct | Binomial Expansion | Recovery rate(b) | 6.00% - 63.00% (25.00%) | ||||||||||||||||
Investment book | 557 | Technique (BET) | Diversity score(b) | 5 - 35 (12) | |||||||||||||||
Weighted average life(b) | 1.07 - 9.47 years (4.86 years) | ||||||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract | |||||||||||||||||||
deposits | 312 | Discounted cash flow | Equity implied volatility(b) | 6.00% - 39.00% | |||||||||||||||
Base lapse rate(b) | 1.00% - 40.00% | ||||||||||||||||||
Dynamic lapse rate(b) | 0.20% - 60.00% | ||||||||||||||||||
Mortality rate(b) | 0.50% - 40.00% | ||||||||||||||||||
Utilization rate(b) | 0.50% - 25.00% | ||||||||||||||||||
Total derivative | |||||||||||||||||||
liabilities, net | 996 | BET | Recovery rate(b) | 5.00% - 34.00% (17.00%) | |||||||||||||||
Diversity score(b) | 9 - 32 (13) | ||||||||||||||||||
Weighted average life(b) | 4.50 - 9.47 years (5.63 years) | ||||||||||||||||||
(a) The unobservable inputs and ranges for the 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) Information received from independent third-party valuation service providers. | |||||||||||||||||||
The ranges of reported inputs for Corporate debt, RMBS, CDO/ABS, and CMBS valued using a discounted cash flow technique consist of plus/minus 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 investments. | |||||||||||||||||||
Sensitivity to Changes in Unobservable Inputs | |||||||||||||||||||
We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following is a general description of sensitivities of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. The effect of a change in a particular assumption in the sensitivity analysis below is considered independently of changes in any other assumptions. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply. | |||||||||||||||||||
Obligations of States, Municipalities and Political Subdivisions | |||||||||||||||||||
The significant unobservable input used in fair value measurement of certain investments in obligations of states, municipalities and political subdivisions is yield. In general, increases in the yield would decrease the fair value of investments in obligations of states, municipalities and political subdivisions. | |||||||||||||||||||
Corporate Debt | |||||||||||||||||||
Corporate debt securities included in Level 3 are primarily private placement issuances that are not traded in active markets or that are subject to transfer restrictions. Fair value measurements consider illiquidity and non-transferability. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of publicly-traded debt of the issuer or other comparable securities, considering illiquidity and structure. The significant unobservable input used in the fair value measurement of corporate debt is the yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. In addition, the migration in credit quality of a given security generally has a corresponding effect on the fair value measurement of the security. For example, a downward migration of credit quality would increase spreads. Holding U.S. Treasury rates constant, an increase in corporate credit spreads would decrease the fair value of corporate debt. | |||||||||||||||||||
RMBS and Certain CDO/ABS | |||||||||||||||||||
The significant unobservable inputs used in fair value measurements of RMBS and certain CDO/ABS valued by third-party valuation service providers are constant prepayment rates (CPR), loss severity, constant default rates (CDR), and yield. A change in the assumptions used for the probability of default will generally be accompanied by a corresponding change in the assumption used for the loss severity and an inverse change in the assumption used for prepayment rates. In general, increases in CPR, loss severity, CDR, and yield, in isolation, would result in a decrease in the fair value measurement. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship between the directional change of each input is not usually linear. | |||||||||||||||||||
CMBS | |||||||||||||||||||
The significant unobservable input used in fair value measurements for CMBS is the yield. Prepayment assumptions for each mortgage pool are factored into the yield. CMBS generally feature a lower degree of prepayment risk than RMBS because commercial mortgages generally contain a penalty for prepayment. In general, increases in the yield would decrease the fair value of CMBS. | |||||||||||||||||||
CDO/ABS – Direct Investment book | |||||||||||||||||||
The significant unobservable inputs used for certain CDO/ABS securities valued using the BET are recovery rates, diversity score, and the weighted average life of the portfolio. An increase in recovery rates and diversity score will increase the fair value of the portfolio. An increase in the weighted average life will decrease the fair value. | |||||||||||||||||||
Policyholder contract deposits | |||||||||||||||||||
Embedded derivatives within Policyholder contract deposits relate to guaranteed minimum withdrawal benefits (GMWB) within variable annuity products and certain enhancements to interest crediting rates based on market indices within equity-indexed annuities and guaranteed investment contracts (GICs). GMWB represents our largest exposure of these embedded derivatives, although the carrying value of the liability fluctuates based on the performance of the equity markets and therefore, at a point in time, can be low relative to the exposure. The principal unobservable input used for GMWBs and embedded derivatives in equity-indexed annuities measured at fair value is equity implied volatility. For GMWBs, other significant unobservable inputs include base and dynamic lapse rates, mortality rates, and utilization rates. Lapse, mortality, and utilization rates may vary significantly depending upon age groups and duration. In general, increases in volatility and utilization rates will increase the fair value of the liability associated with GMWB, while increases in lapse rates and mortality rates will decrease the fair value of the liability. Significant unobservable inputs used in valuing embedded derivatives within GICs include long-term forward interest rates and foreign exchange rates. Generally, the embedded derivative liability for GICs will increase as interest rates decrease or if the U.S. dollar weakens compared to the euro. | |||||||||||||||||||
Total derivative liabilities, net | |||||||||||||||||||
The significant unobservable inputs used for derivative liabilities valued using the BET, which include certain credit contracts, are recovery rates, diversity scores, and the weighted average life of the portfolio. AIG non-performance risk is also considered in the measurement of the liability. | |||||||||||||||||||
An increase in recovery rates and diversity score will decrease the fair value of the liability. An increase in the weighted average life will increase the fair value measurement of the liability. | |||||||||||||||||||
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 and hedge funds 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 as a practical expedient to measure fair value. | |||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||
Fair Value Using Net Asset Value Per Share (or its equivalent) | Fair Value Using Net Asset Value Per Share (or its equivalent) | ||||||||||||||||||
Unfunded | Unfunded | ||||||||||||||||||
(in millions) | Investment Category Includes | Commitments | Commitments | ||||||||||||||||
Investment Category | |||||||||||||||||||
Private equity funds: | |||||||||||||||||||
Leveraged buyout | Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage | $ | 2,496 | $ | 474 | $ | 2,544 | $ | 578 | ||||||||||
Real Estate / Infrastructure | Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities | 427 | 209 | 346 | 86 | ||||||||||||||
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 | 136 | 10 | 140 | 13 | ||||||||||||||
Distressed | Securities of companies that are in default, under bankruptcy protection, or troubled | 174 | 44 | 183 | 34 | ||||||||||||||
Other | Includes multi-strategy and mezzanine strategies | 194 | 213 | 134 | 238 | ||||||||||||||
Total private equity funds | 3,427 | 950 | 3,347 | 949 | |||||||||||||||
Hedge funds: | |||||||||||||||||||
Event-driven | Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations | 1,188 | 2 | 976 | 2 | ||||||||||||||
Long-short | Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk | 2,096 | 4 | 1,759 | 11 | ||||||||||||||
Macro | Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions | 486 | - | 612 | - | ||||||||||||||
Distressed | Securities of companies that are in default, under bankruptcy protection or troubled | 659 | 5 | 594 | 15 | ||||||||||||||
Emerging markets | Investments in the financial markets of developing countries | 302 | - | 287 | - | ||||||||||||||
Other | Includes multi-strategy and relative value strategies | 238 | - | 157 | - | ||||||||||||||
Total hedge funds | 4,969 | 11 | 4,385 | 28 | |||||||||||||||
Total | $ | 8,396 | $ | 961 | $ | 7,732 | $ | 977 | |||||||||||
Private equity fund investments included above are not redeemable, as distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one or two-year increments. At September 30, 2014, assuming average original expected lives of 10 years for the funds, 74 percent of the total fair value using net asset value per share (or its equivalent) presented above would have expected remaining lives of three years or less, 18 percent between four and six years and 8 percent between seven and 10 years. | |||||||||||||||||||
The hedge fund investments included above are generally redeemable monthly (15 percent), quarterly (46 percent), semi-annually (16 percent) and annually (23 percent), with redemption notices ranging from one day to 180 days. At September 30, 2014, however, investments representing approximately 51 percent of the total fair value of the hedge fund investments cannot be redeemed, either in whole or in part, because the investments include various contractual restrictions. The majority of these contractual restrictions, which may have been put in place at the fund’s inception or thereafter, have pre-defined end dates and are generally expected to be lifted by the end of 2015. The fund investments for which redemption is restricted only in part generally relate to certain hedge funds that hold at least one investment that the fund manager deems to be illiquid. | |||||||||||||||||||
Fair Value Option | |||||||||||||||||||
The following table presents the gains and 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, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Assets: | |||||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 1 | $ | - | $ | 3 | |||||||||||
Bond and equity securities | 252 | 331 | 1,529 | 963 | |||||||||||||||
Alternative Investments(a) | 73 | 23 | 245 | 229 | |||||||||||||||
Other, including Short-term investments | 2 | 3 | 7 | 8 | |||||||||||||||
Liabilities: | |||||||||||||||||||
Long-term debt(b) | 23 | -51 | -186 | 271 | |||||||||||||||
Other liabilities | -4 | -4 | -10 | -10 | |||||||||||||||
Total gain | $ | 346 | $ | 303 | $ | 1,585 | $ | 1,464 | |||||||||||
(a) Includes hedge funds, private equity funds and other investment partnerships. | |||||||||||||||||||
(b) Includes GIAs, notes, bonds, loans and mortgages payable. | |||||||||||||||||||
We recognized gains of $8 million and losses of $14 million during the three- and nine-month periods ended September 30, 2014, respectively, and losses of $22 million and $37 million during the three- and nine-month periods ended September 30, 2013, respectively, attributable to the observable effect of changes in credit spreads on our own liabilities for which the fair value option was elected. We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, our observable credit spreads on these liabilities and other factors that mitigate the risk of nonperformance such as cash collateral posted. | |||||||||||||||||||
The following table presents the difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term debt for which the fair value option was elected: | |||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||
(in millions) | Fair Value | Principal Amount | Difference | Fair Value | Principal Amount | Difference | |||||||||||||
Assets: | |||||||||||||||||||
Mortgage and other loans receivable | $ | 6 | $ | 4 | $ | 2 | $ | - | $ | - | $ | - | |||||||
Liabilities: | |||||||||||||||||||
Long-term debt* | $ | 5,667 | $ | 4,344 | $ | 1,323 | $ | 6,747 | $ | 5,231 | $ | 1,516 | |||||||
* 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 | 2014 | 2013 | 2014 | 2013 | |||||||||||
30-Sep-14 | |||||||||||||||||||
Other investments | $ | - | $ | - | $ | 766 | $ | 766 | $ | 62 | $ | 9 | $ | 117 | $ | 82 | |||
Investments in life settlements | - | - | 473 | 473 | 52 | 61 | 139 | 139 | |||||||||||
Other assets | - | - | 1 | 1 | 1 | 2 | 2 | 26 | |||||||||||
Total | $ | - | $ | - | $ | 1,240 | $ | 1,240 | $ | 115 | $ | 72 | $ | 258 | $ | 247 | |||
31-Dec-13 | |||||||||||||||||||
Other investments | $ | - | $ | - | $ | 1,615 | $ | 1,615 | |||||||||||
Investments in life settlements | - | - | 896 | 896 | |||||||||||||||
Other assets | - | 11 | 48 | 59 | |||||||||||||||
Total | $ | - | $ | 11 | $ | 2,559 | $ | 2,570 | |||||||||||
Fair Value Information About Financial Instruments Not Measured at Fair Value | |||||||||||||||||||
The following table presents the carrying value and estimated fair value 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 | ||||||||||||||
30-Sep-14 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 217 | $ | 24,468 | $ | 24,685 | $ | 23,391 | |||||||||
Other invested assets | - | 626 | 2,839 | 3,465 | 4,357 | ||||||||||||||
Short-term investments | - | 13,661 | - | 13,661 | 13,661 | ||||||||||||||
Cash | 1,933 | - | - | 1,933 | 1,933 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits associated | |||||||||||||||||||
with investment-type contracts | - | 226 | 117,983 | 118,209 | 105,258 | ||||||||||||||
Other liabilities | - | 3,993 | - | 3,993 | 3,993 | ||||||||||||||
Long-term debt | - | 30,880 | 3,689 | 34,569 | 30,556 | ||||||||||||||
31-Dec-13 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 219 | $ | 21,418 | $ | 21,637 | $ | 20,765 | |||||||||
Other invested assets | - | 529 | 2,705 | 3,234 | 4,194 | ||||||||||||||
Short-term investments | - | 15,304 | - | 15,304 | 15,304 | ||||||||||||||
Cash | 2,241 | - | - | 2,241 | 2,241 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits associated | |||||||||||||||||||
with investment-type contracts | - | 199 | 114,361 | 114,560 | 105,093 | ||||||||||||||
Other liabilities | - | 4,869 | 1 | 4,870 | 4,869 | ||||||||||||||
Long-term debt | - | 36,239 | 2,394 | 38,633 | 34,946 | ||||||||||||||
30-Sep-14 | 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 | $ | 15 | $ | 2,783 | $ | - | $ | - | $ | - | $ | 2,798 | |||||||
Obligations of states, municipalities and political subdivisions | - | 26,158 | 2,014 | - | - | 28,172 | |||||||||||||
Non-U.S. governments | 772 | 21,867 | 23 | - | - | 22,662 | |||||||||||||
Corporate debt | - | 146,319 | 2,009 | - | - | 148,328 | |||||||||||||
RMBS | - | 21,786 | 16,918 | - | - | 38,704 | |||||||||||||
CMBS | - | 6,626 | 5,916 | - | - | 12,542 | |||||||||||||
CDO/ABS | - | 4,423 | 8,157 | - | - | 12,580 | |||||||||||||
Total bonds available for sale | 787 | 229,962 | 35,037 | - | - | 265,786 | |||||||||||||
Other bond securities: | |||||||||||||||||||
U.S. government and government sponsored entities | 128 | 5,130 | - | - | - | 5,258 | |||||||||||||
Obligations of states, municipalities and political subdivisions | - | 122 | - | - | - | 122 | |||||||||||||
Non-U.S. governments | - | 2 | - | - | - | 2 | |||||||||||||
Corporate debt | - | 948 | - | - | - | 948 | |||||||||||||
RMBS | - | 1,143 | 1,023 | - | - | 2,166 | |||||||||||||
CMBS | - | 507 | 713 | - | - | 1,220 | |||||||||||||
CDO/ABS | - | 2,596 | 8,069 | - | - | 10,665 | |||||||||||||
Total other bond securities | 128 | 10,448 | 9,805 | - | - | 20,381 | |||||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | 3,570 | 2 | - | - | - | 3,572 | |||||||||||||
Preferred stock | - | 29 | - | - | - | 29 | |||||||||||||
Mutual funds | 740 | 2 | 1 | - | - | 743 | |||||||||||||
Total equity securities available for sale | 4,310 | 33 | 1 | - | - | 4,344 | |||||||||||||
Other equity securities | 701 | 65 | - | - | - | 766 | |||||||||||||
Mortgage and other loans receivable | - | - | 6 | - | - | 6 | |||||||||||||
Other invested assets | 25 | 3,211 | 5,809 | - | - | 9,045 | |||||||||||||
Derivative assets: | |||||||||||||||||||
Interest rate contracts(b) | 7 | 2,805 | 11 | - | - | 2,823 | |||||||||||||
Foreign exchange contracts(b) | - | 1,061 | 3 | - | - | 1,064 | |||||||||||||
Equity contracts | 107 | 65 | 49 | - | - | 221 | |||||||||||||
Commodity contracts | - | - | - | - | - | - | |||||||||||||
Credit contracts | - | - | 20 | - | - | 20 | |||||||||||||
Other contracts | - | - | 34 | - | - | 34 | |||||||||||||
Counterparty netting and cash collateral | - | - | - | -1,769 | -805 | -2,574 | |||||||||||||
Total derivative assets | 114 | 3,931 | 117 | -1,769 | -805 | 1,588 | |||||||||||||
Short-term investments | 560 | 3,631 | - | - | - | 4,191 | |||||||||||||
Separate account assets | 72,592 | 5,218 | - | - | - | 77,810 | |||||||||||||
Other assets | - | - | - | - | - | - | |||||||||||||
Total | $ | 79,217 | $ | 256,499 | $ | 50,775 | $ | -1,769 | $ | -805 | $ | 383,917 | |||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | 53 | $ | 991 | $ | - | $ | - | $ | 1,044 | |||||||
Other policyholder funds | - | 8 | - | - | - | 8 | |||||||||||||
Derivative liabilities: | |||||||||||||||||||
Interest rate contracts(b) | - | 2,649 | 82 | - | - | 2,731 | |||||||||||||
Foreign exchange contracts(b) | - | 1,493 | 10 | - | - | 1,503 | |||||||||||||
Equity contracts | - | 88 | 3 | - | - | 91 | |||||||||||||
Commodity contracts | - | 5 | - | - | - | 5 | |||||||||||||
Credit contracts | - | - | 1,038 | - | - | 1,038 | |||||||||||||
Other contracts | - | - | 89 | - | - | 89 | |||||||||||||
Counterparty netting and cash collateral | - | - | - | -1,769 | -1,186 | -2,955 | |||||||||||||
Total derivative liabilities | - | 4,235 | 1,222 | -1,769 | -1,186 | 2,502 | |||||||||||||
Long-term debt | - | 5,370 | 297 | - | - | 5,667 | |||||||||||||
Other liabilities | 70 | 332 | - | - | - | 402 | |||||||||||||
Total | $ | 70 | $ | 9,998 | $ | 2,510 | $ | -1,769 | $ | -1,186 | $ | 9,623 |
INVESTMENTS
INVESTMENTS | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
INVESTMENTS | ' | |||||||||||||||||
INVESTMENTS | ' | |||||||||||||||||
6. INVESTMENTS | ||||||||||||||||||
Securities Available for Sale | ||||||||||||||||||
The following table presents the amortized cost or cost and fair value of our available for sale securities: | ||||||||||||||||||
Other-Than- | ||||||||||||||||||
Amortized | Gross | Gross | Temporary | |||||||||||||||
Cost or | Unrealized | Unrealized | Fair | Impairments | ||||||||||||||
(in millions) | Cost | Gains | Losses | Value | in AOCI(a) | |||||||||||||
30-Sep-14 | ||||||||||||||||||
Bonds available for sale: | ||||||||||||||||||
U.S. government and government sponsored entities | $ | 2,638 | $ | 180 | $ | -20 | $ | 2,798 | $ | - | ||||||||
Obligations of states, municipalities and political subdivisions | 26,699 | 1,557 | -84 | 28,172 | -11 | |||||||||||||
Non-U.S. governments | 21,889 | 955 | -182 | 22,662 | - | |||||||||||||
Corporate debt | 139,166 | 10,222 | -1,060 | 148,328 | 73 | |||||||||||||
Mortgage-backed, asset-backed and collateralized: | ||||||||||||||||||
RMBS | 35,511 | 3,507 | -314 | 38,704 | 1,862 | |||||||||||||
CMBS | 11,959 | 694 | -111 | 12,542 | 218 | |||||||||||||
CDO/ABS | 12,058 | 637 | -115 | 12,580 | 50 | |||||||||||||
Total mortgage-backed, asset-backed and collateralized | 59,528 | 4,838 | -540 | 63,826 | 2,130 | |||||||||||||
Total bonds available for sale(b) | 249,920 | 17,752 | -1,886 | 265,786 | 2,192 | |||||||||||||
Equity securities available for sale: | ||||||||||||||||||
Common stock | 1,323 | 2,268 | -19 | 3,572 | - | |||||||||||||
Preferred stock | 24 | 5 | - | 29 | - | |||||||||||||
Mutual funds | 719 | 41 | -17 | 743 | - | |||||||||||||
Total equity securities available for sale | 2,066 | 2,314 | -36 | 4,344 | - | |||||||||||||
Total | $ | 251,986 | $ | 20,066 | $ | -1,922 | $ | 270,130 | $ | 2,192 | ||||||||
31-Dec-13 | ||||||||||||||||||
Bonds available for sale: | ||||||||||||||||||
U.S. government and government sponsored entities | $ | 3,084 | $ | 150 | $ | -39 | $ | 3,195 | $ | - | ||||||||
Obligations of states, municipalities and political subdivisions | 28,704 | 1,122 | -446 | 29,380 | -15 | |||||||||||||
Non-U.S. governments | 22,045 | 822 | -358 | 22,509 | - | |||||||||||||
Corporate debt | 139,461 | 7,989 | -2,898 | 144,552 | 74 | |||||||||||||
Mortgage-backed, asset-backed and collateralized: | ||||||||||||||||||
RMBS | 33,520 | 3,101 | -473 | 36,148 | 1,670 | |||||||||||||
CMBS | 11,216 | 558 | -292 | 11,482 | 125 | |||||||||||||
CDO/ABS | 10,501 | 649 | -142 | 11,008 | 62 | |||||||||||||
Total mortgage-backed, asset-backed and collateralized | 55,237 | 4,308 | -907 | 58,638 | 1,857 | |||||||||||||
Total bonds available for sale(b) | 248,531 | 14,391 | -4,648 | 258,274 | 1,916 | |||||||||||||
Equity securities available for sale: | ||||||||||||||||||
Common stock | 1,280 | 1,953 | -14 | 3,219 | - | |||||||||||||
Preferred stock | 24 | 4 | -1 | 27 | - | |||||||||||||
Mutual funds | 422 | 12 | -24 | 410 | - | |||||||||||||
Total equity securities available for sale | 1,726 | 1,969 | -39 | 3,656 | - | |||||||||||||
Total | $ | 250,257 | $ | 16,360 | $ | -4,687 | $ | 261,930 | $ | 1,916 | ||||||||
(a) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date. | ||||||||||||||||||
(b) At September 30, 2014 and December 31, 2013, bonds available for sale held by us that were below investment grade or not rated totaled $35.0 billion and $32.6 billion, respectively. | ||||||||||||||||||
Securities Available for Sale in a Loss Position | ||||||||||||||||||
The following table summarizes the fair value and gross unrealized losses on our available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position: | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
(in millions) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||
30-Sep-14 | ||||||||||||||||||
Bonds available for sale: | ||||||||||||||||||
U.S. government and government sponsored entities | $ | 491 | $ | 5 | $ | 303 | $ | 15 | $ | 794 | $ | 20 | ||||||
Obligations of states, municipalities and political | ||||||||||||||||||
subdivisions | 924 | 20 | 1,183 | 64 | 2,107 | 84 | ||||||||||||
Non-U.S. governments | 2,074 | 34 | 2,213 | 148 | 4,287 | 182 | ||||||||||||
Corporate debt | 14,653 | 239 | 14,521 | 821 | 29,174 | 1,060 | ||||||||||||
RMBS | 3,849 | 72 | 4,432 | 242 | 8,281 | 314 | ||||||||||||
CMBS | 956 | 6 | 2,483 | 105 | 3,439 | 111 | ||||||||||||
CDO/ABS | 2,937 | 33 | 1,770 | 82 | 4,707 | 115 | ||||||||||||
Total bonds available for sale | 25,884 | 409 | 26,905 | 1,477 | 52,789 | 1,886 | ||||||||||||
Equity securities available for sale: | ||||||||||||||||||
Common stock | 116 | 13 | 7 | 6 | 123 | 19 | ||||||||||||
Preferred stock | 5 | - | - | - | 5 | - | ||||||||||||
Mutual funds | 282 | 12 | 70 | 5 | 352 | 17 | ||||||||||||
Total equity securities available for sale | 403 | 25 | 77 | 11 | 480 | 36 | ||||||||||||
Total | $ | 26,287 | $ | 434 | $ | 26,982 | $ | 1,488 | $ | 53,269 | $ | 1,922 | ||||||
31-Dec-13 | ||||||||||||||||||
Bonds available for sale: | ||||||||||||||||||
U.S. government and government sponsored entities | $ | 1,101 | $ | 34 | $ | 42 | $ | 5 | $ | 1,143 | $ | 39 | ||||||
Obligations of states, municipalities and political | ||||||||||||||||||
subdivisions | 6,134 | 379 | 376 | 67 | 6,510 | 446 | ||||||||||||
Non-U.S. governments | 4,102 | 217 | 710 | 141 | 4,812 | 358 | ||||||||||||
Corporate debt | 38,495 | 2,251 | 4,926 | 647 | 43,421 | 2,898 | ||||||||||||
RMBS | 8,543 | 349 | 1,217 | 124 | 9,760 | 473 | ||||||||||||
CMBS | 3,191 | 176 | 1,215 | 116 | 4,406 | 292 | ||||||||||||
CDO/ABS | 2,845 | 62 | 915 | 80 | 3,760 | 142 | ||||||||||||
Total bonds available for sale | 64,411 | 3,468 | 9,401 | 1,180 | 73,812 | 4,648 | ||||||||||||
Equity securities available for sale: | ||||||||||||||||||
Common stock | 96 | 14 | - | - | 96 | 14 | ||||||||||||
Preferred stock | 5 | 1 | - | - | 5 | 1 | ||||||||||||
Mutual funds | 369 | 24 | - | - | 369 | 24 | ||||||||||||
Total equity securities available for sale | 470 | 39 | - | - | 470 | 39 | ||||||||||||
Total | $ | 64,881 | $ | 3,507 | $ | 9,401 | $ | 1,180 | $ | 74,282 | $ | 4,687 | ||||||
At September 30, 2014, we held 6,689 and 137 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 2,399 individual fixed maturity securities were in a continuous unrealized loss position for longer than 12 months. We did not recognize the unrealized losses in earnings on these fixed maturity securities at September 30, 2014 because we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and other available market data. | ||||||||||||||||||
Contractual Maturities of Fixed Maturity Securities Available for Sale | ||||||||||||||||||
The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity: | ||||||||||||||||||
Total Fixed Maturity Securities | Fixed Maturity Securities in a Loss | |||||||||||||||||
30-Sep-14 | Available for Sale | Position Available for Sale | ||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||
Due in one year or less | $ | 10,843 | $ | 11,017 | $ | 857 | $ | 846 | ||||||||||
Due after one year through five years | 50,274 | 52,949 | 7,038 | 6,926 | ||||||||||||||
Due after five years through ten years | 65,793 | 69,252 | 14,788 | 14,353 | ||||||||||||||
Due after ten years | 63,482 | 68,742 | 15,025 | 14,237 | ||||||||||||||
Mortgage-backed, asset-backed and collateralized | 59,528 | 63,826 | 16,967 | 16,427 | ||||||||||||||
Total | $ | 249,920 | $ | 265,786 | $ | 54,675 | $ | 52,789 | ||||||||||
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, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
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 | $ | 118 | $ | 21 | $ | 516 | $ | 26 | $ | 528 | $ | 65 | $ | 2,216 | $ | 153 | ||
Equity securities | 33 | 4 | 18 | 6 | 102 | 10 | 101 | 15 | ||||||||||
Total | $ | 151 | $ | 25 | $ | 534 | $ | 32 | $ | 630 | $ | 75 | $ | 2,317 | $ | 168 | ||
For the three- and nine-month periods ended September 30, 2014, the aggregate fair value of available for sale securities sold was $4.2 billion and $16.2 billion, respectively, which resulted in net realized capital gains of $0.1 billion and $0.5 billion, respectively. | ||||||||||||||||||
For the three- and nine-month periods ended September 30, 2013, the aggregate fair value of available for sale securities sold was $8.4 billion and $27.7 billion, respectively, which resulted in net realized capital gains of $0.5 billion and $2.1 billion, respectively. | ||||||||||||||||||
Other Securities Measured at Fair Value | ||||||||||||||||||
The following table presents the fair value of other securities measured at fair value based on our election of the fair value option: | ||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||
Fair | Percent | Fair | Percent | |||||||||||||||
(in millions) | Value | of Total | Value | of Total | ||||||||||||||
Fixed maturity securities: | ||||||||||||||||||
U.S. government and government sponsored entities | $ | 5,258 | 25 | % | $ | 5,723 | 24 | % | ||||||||||
Obligations of states, municipalities and political subdivisions | 122 | 1 | 121 | 1 | ||||||||||||||
Non-U.S. governments | 2 | - | 2 | - | ||||||||||||||
Corporate debt | 948 | 4 | 1,169 | 5 | ||||||||||||||
Mortgage-backed, asset-backed and collateralized: | ||||||||||||||||||
RMBS | 2,166 | 10 | 2,263 | 10 | ||||||||||||||
CMBS | 1,220 | 6 | 1,353 | 6 | ||||||||||||||
CDO/ABS and other collateralized* | 10,665 | 50 | 11,985 | 51 | ||||||||||||||
Total mortgage-backed, asset-backed and collateralized | 14,051 | 66 | 15,601 | 67 | ||||||||||||||
Other | - | - | 7 | - | ||||||||||||||
Total fixed maturity securities | 20,381 | 96 | 22,623 | 97 | ||||||||||||||
Equity securities | 766 | 4 | 834 | 3 | ||||||||||||||
Total | $ | 21,147 | 100 | % | $ | 23,457 | 100 | % | ||||||||||
* Includes $0.9 billion and $1.0 billion of U.S. Government agency backed ABS at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||
Net Investment Income | ||||||||||||||||||
The following table presents the components of Net investment income: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Fixed maturity securities, including short-term investments | $ | 3,022 | $ | 3,005 | $ | 9,264 | $ | 8,969 | ||||||||||
Equity securities | 135 | 98 | 67 | 123 | ||||||||||||||
Interest on mortgage and other loans | 318 | 292 | 947 | 862 | ||||||||||||||
Alternative investments* | 636 | 288 | 2,108 | 1,892 | ||||||||||||||
Real estate | 25 | 32 | 86 | 99 | ||||||||||||||
Other investments | 25 | -22 | 34 | 59 | ||||||||||||||
Total investment income | 4,161 | 3,693 | 12,506 | 12,004 | ||||||||||||||
Investment expenses | 133 | 120 | 398 | 423 | ||||||||||||||
Net investment income | $ | 4,028 | $ | 3,573 | $ | 12,108 | $ | 11,581 | ||||||||||
* Includes hedge funds, private equity funds, affordable housing partnerships, investments in life settlements and other investment partnerships. | ||||||||||||||||||
Net Realized Capital Gains and Losses | ||||||||||||||||||
The following table presents the components of Net realized capital gains (losses): | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Sales of fixed maturity securities | $ | 97 | $ | 490 | $ | 463 | $ | 2,063 | ||||||||||
Sales of equity securities | 29 | 12 | 92 | 86 | ||||||||||||||
Other-than-temporary impairments: | ||||||||||||||||||
Severity | - | - | - | -5 | ||||||||||||||
Change in intent | -14 | -1 | -20 | -4 | ||||||||||||||
Foreign currency declines | -3 | - | -13 | - | ||||||||||||||
Issuer-specific credit events | -31 | -51 | -124 | -130 | ||||||||||||||
Adverse projected cash flows | -2 | - | -7 | -7 | ||||||||||||||
Provision for loan losses | -11 | -33 | 9 | -38 | ||||||||||||||
Foreign exchange transactions | 350 | -276 | 329 | 135 | ||||||||||||||
Derivative instruments | 36 | 192 | -302 | 209 | ||||||||||||||
Impairments on investments in life settlements | -52 | -61 | -139 | -139 | ||||||||||||||
Other | 71 | -20 | 70 | -27 | ||||||||||||||
Net realized capital gains | $ | 470 | $ | 252 | $ | 358 | $ | 2,143 | ||||||||||
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) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Increase (decrease) in unrealized appreciation (depreciation) of investments: | ||||||||||||||||||
Fixed maturity securities | $ | -1,515 | $ | -1,696 | $ | 6,123 | $ | -12,971 | ||||||||||
Equity securities | 303 | 189 | 348 | 180 | ||||||||||||||
Other investments | 94 | 50 | 127 | 57 | ||||||||||||||
Total Increase (decrease) in unrealized appreciation (depreciation) of investments* | $ | -1,118 | $ | -1,457 | $ | 6,598 | $ | -12,734 | ||||||||||
* Excludes net unrealized gains attributable to businesses held for sale. | ||||||||||||||||||
Evaluating Investments for Other-Than-Temporary Impairments | ||||||||||||||||||
For a discussion of our policy for evaluating investments for other-than-temporary impairments, see Note 6 to the Consolidated Financial Statements in the 2013 Annual Report. | ||||||||||||||||||
Credit Impairments | ||||||||||||||||||
The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance, beginning of period | $ | 3,166 | $ | 4,236 | $ | 3,872 | $ | 5,164 | ||||||||||
Increases due to: | ||||||||||||||||||
Credit impairments on new securities subject to impairment losses | 13 | 6 | 35 | 33 | ||||||||||||||
Additional credit impairments on previously impaired securities | 5 | 29 | 59 | 59 | ||||||||||||||
Reductions due to: | ||||||||||||||||||
Credit impaired securities fully disposed for which there was no | ||||||||||||||||||
prior intent or requirement to sell | -116 | -68 | -528 | -626 | ||||||||||||||
Accretion on securities previously impaired due to credit* | -183 | -184 | -544 | -611 | ||||||||||||||
Other | - | - | -9 | - | ||||||||||||||
Balance, end of period | $ | 2,885 | $ | 4,019 | $ | 2,885 | $ | 4,019 | ||||||||||
* Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time. | ||||||||||||||||||
Purchased Credit Impaired (PCI) Securities | ||||||||||||||||||
We purchase certain RMBS securities that have experienced deterioration in credit quality since their issuance. We determine, based on our expectations as to the timing and amount of cash flows expected to be received, whether it is probable at acquisition that we will not collect all contractually required payments for these PCI securities, including both principal and interest after considering the effects of prepayments. 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 a level-yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. The accretable yield and the non-accretable difference will change over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, which are discussed further below. | ||||||||||||||||||
On a quarterly basis, the undiscounted expected future cash flows associated with PCI securities are re-evaluated based on updates to key assumptions. Declines in undiscounted expected future cash flows due to further credit deterioration as well as changes in the expected timing of the cash flows can result in the recognition of an other-than-temporary impairment charge, as PCI securities are subject to our policy for evaluating investments for other-than-temporary impairment. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI securities will change the accretable yield prospectively. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as adjustments to the accretable yield. | ||||||||||||||||||
The following tables present information on our PCI securities, which are included in bonds available for sale: | ||||||||||||||||||
(in millions) | At Date of Acquisition | |||||||||||||||||
Contractually required payments (principal and interest) | $ | 29,851 | ||||||||||||||||
Cash flows expected to be collected* | 23,983 | |||||||||||||||||
Recorded investment in acquired securities | 15,896 | |||||||||||||||||
* Represents undiscounted expected cash flows, including both principal and interest. | ||||||||||||||||||
(in millions) | 30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Outstanding principal balance | $ | 16,883 | $ | 14,741 | ||||||||||||||
Amortized cost | 12,097 | 10,110 | ||||||||||||||||
Fair value | 13,489 | 11,338 | ||||||||||||||||
The following table presents activity for the accretable yield on PCI securities: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance, beginning of period | $ | 7,042 | $ | 5,901 | $ | 6,940 | $ | 4,766 | ||||||||||
Newly purchased PCI securities | 358 | 202 | 1,127 | 1,308 | ||||||||||||||
Disposals | - | - | - | -60 | ||||||||||||||
Accretion | -223 | -187 | -654 | -517 | ||||||||||||||
Effect of changes in interest rate indices | -96 | 282 | -327 | 388 | ||||||||||||||
Net reclassification from non-accretable difference, | ||||||||||||||||||
including effects of prepayments | 30 | 405 | 25 | 718 | ||||||||||||||
Balance, end of period | $ | 7,111 | $ | 6,603 | $ | 7,111 | $ | 6,603 | ||||||||||
Pledged Investments | ||||||||||||||||||
Secured Financing and Similar Arrangements | ||||||||||||||||||
We enter into financing transactions whereby certain securities are transferred to financial institutions in exchange for cash or other liquid collateral. Securities transferred by us under these financing transactions may be sold or repledged by the counterparties. As collateral for the securities transferred by us, counterparties transfer assets to us, such as cash or high quality fixed maturity securities. Collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the transferred securities during the life of the transactions. Where we receive fixed maturity securities as collateral, we do not have the right to sell or repledge the collateral unless an event of default occurs by the counterparties. At the termination of the transactions, we and our counterparties are obligated to return the collateral provided and the securities transferred, respectively. We treat these transactions as secured financing arrangements. | ||||||||||||||||||
Secured financing transactions also include securities 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. In the majority of these repurchase agreements, the securities transferred by us may be sold or repledged by the counterparties. Repurchase agreements entered into by the DIB are carried at fair value based on market-observable interest rates. All other repurchase agreements are recorded at their contracted repurchase amounts plus accrued interest. | ||||||||||||||||||
The following table presents the fair value of securities pledged to counterparties under secured financing transactions: | ||||||||||||||||||
(in millions) | 30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Securities available for sale | $ | 2,860 | $ | 3,837 | ||||||||||||||
Other securities | 2,187 | 2,766 | ||||||||||||||||
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. Such agreements entered into by the DIB are carried at fair value based on market observable interest rates. 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) | 30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Securities collateral pledged to us | $ | 7,347 | $ | 8,878 | ||||||||||||||
Amount sold or repledged by us | 106 | 71 | ||||||||||||||||
Insurance - Statutory and Other Deposits | ||||||||||||||||||
Total carrying values of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance treaties, were $6.2 billion and $6.7 billion at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||
Other Pledges | ||||||||||||||||||
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 $53 million and $57 million of stock in FHLBs at September 30, 2014 and December 31, 2013, respectively. In addition, our subsidiaries have pledged securities available for sale with a fair value of $530 million and $80 million at September 30, 2014 and December 31, 2013, respectively, associated with advances from the FHLBs. | ||||||||||||||||||
Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations approximated $3.6 billion and $4.2 billion at September 30, 2014 and December 31, 2013, respectively. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties. |
LENDING_ACTIVITIES
LENDING ACTIVITIES | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
LENDING ACTIVITIES | ' | |||||||||||||||||||
LENDING ACTIVITIES | ' | |||||||||||||||||||
7. LENDING ACTIVITIES | ||||||||||||||||||||
The following table presents the composition of Mortgage and other loans receivable: | ||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||
Commercial mortgages* | $ | 17,841 | $ | 16,195 | ||||||||||||||||
Life insurance policy loans | 2,756 | 2,830 | ||||||||||||||||||
Commercial loans, other loans and notes receivable | 3,084 | 2,052 | ||||||||||||||||||
Total mortgage and other loans receivable | 23,681 | 21,077 | ||||||||||||||||||
Allowance for losses | -284 | -312 | ||||||||||||||||||
Mortgage and other loans receivable, net | $ | 23,397 | $ | 20,765 | ||||||||||||||||
* Commercial mortgages primarily represent loans for office, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (aggregating approximately 14 percent and 16 percent, respectively, at September 30, 2014, and approximately 18 percent and 17 percent, respectively, at December 31, 2013). | ||||||||||||||||||||
The following table presents the credit quality indicators for commercial mortgages: | ||||||||||||||||||||
Number | Percent | |||||||||||||||||||
of | Class | of | ||||||||||||||||||
(dollars in millions) | Loans | Apartments | Offices | Retail | Industrial | Hotel | Others | Total(c) | Total $ | |||||||||||
30-Sep-14 | ||||||||||||||||||||
Credit Quality Indicator: | ||||||||||||||||||||
In good standing | 973 | $ | 3,231 | $ | 5,390 | $ | 3,868 | $ | 1,718 | $ | 1,469 | $ | 1,784 | $ | 17,460 | 98 | % | |||
Restructured(a) | 8 | 4 | 285 | 16 | - | - | 22 | 327 | 2 | |||||||||||
90 days or less delinquent | 1 | - | 14 | - | - | - | - | 14 | - | |||||||||||
>90 days delinquent or in | ||||||||||||||||||||
process of foreclosure | 3 | 40 | - | - | - | - | - | 40 | - | |||||||||||
Total(b) | 985 | $ | 3,275 | $ | 5,689 | $ | 3,884 | $ | 1,718 | $ | 1,469 | $ | 1,806 | $ | 17,841 | 100 | % | |||
Valuation allowance | $ | 9 | $ | 96 | $ | 14 | $ | 20 | $ | 6 | $ | 30 | $ | 175 | 1 | % | ||||
31-Dec-13 | ||||||||||||||||||||
Credit Quality Indicator: | ||||||||||||||||||||
In good standing | 978 | $ | 2,786 | $ | 4,636 | $ | 3,364 | $ | 1,607 | $ | 1,431 | $ | 1,970 | $ | 15,794 | 98 | % | |||
Restructured(a) | 9 | 53 | 210 | 6 | - | - | 85 | 354 | 2 | |||||||||||
90 days or less delinquent | 2 | - | - | 5 | - | - | - | 5 | - | |||||||||||
>90 days delinquent or in | ||||||||||||||||||||
process of foreclosure | 6 | - | 42 | - | - | - | - | 42 | - | |||||||||||
Total(b) | 995 | $ | 2,839 | $ | 4,888 | $ | 3,375 | $ | 1,607 | $ | 1,431 | $ | 2,055 | $ | 16,195 | 100 | % | |||
Allowance for losses | $ | 10 | $ | 109 | $ | 9 | $ | 19 | $ | 3 | $ | 51 | $ | 201 | 1 | % | ||||
(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see Note 7 to the Consolidated Financial Statements in the 2013 Annual Report. | ||||||||||||||||||||
(b) Does not reflect valuation allowances. | ||||||||||||||||||||
(c) Over 99 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest. | ||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
See Note 7 to the Consolidated Financial Statements in the 2013 Annual Report for a discussion of our accounting policy for evaluating mortgage and other loans receivable for impairment. | ||||||||||||||||||||
The following table presents a rollforward of the changes in the allowance for losses on Mortgage and other loans receivable: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Nine Months Ended September 30, | Commercial | Other | Commercial | Other | ||||||||||||||||
(in millions) | Mortgages | Loans | Total | Mortgages | Loans | Total | ||||||||||||||
Allowance, beginning of year | $ | 201 | $ | 111 | $ | 312 | $ | 159 | $ | 246 | $ | 405 | ||||||||
Loans charged off | -10 | -13 | -23 | -5 | -37 | -42 | ||||||||||||||
Recoveries of loans previously charged off | - | 16 | 16 | 3 | 6 | 9 | ||||||||||||||
Net charge-offs | -10 | 3 | -7 | -2 | -31 | -33 | ||||||||||||||
Provision for loan losses | -16 | -6 | -22 | 47 | -16 | 31 | ||||||||||||||
Other | - | 1 | 1 | -1 | -4 | -5 | ||||||||||||||
Allowance, end of period | $ | 175* | $ | 109 | $ | 284 | $ | 203* | $ | 195 | $ | 398 | ||||||||
* Of the total allowance at the end of the period, $86 million and $102 million relates to individually assessed credit losses on $246 million and $267 million of commercial mortgage loans at September 30, 2014 and 2013, respectively. | ||||||||||||||||||||
No significant loans were modified in a troubled debt restructuring during the nine-month periods ended September 30, 2014 and 2013. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
VARIABLE INTEREST ENTITIES | ' | ||||||||||||
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, 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. | |||||||||||||
For VIEs with attributes consistent with that of an investment company or a money market fund, the primary beneficiary is the party or group of related parties that absorbs a majority of the expected losses of the VIE, receives the majority of the expected residual returns of the VIE, or both. | |||||||||||||
For all other VIEs, the primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE. | |||||||||||||
Balance Sheet Classification and Exposure to Loss | |||||||||||||
The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Condensed Consolidated Balance Sheets: | |||||||||||||
(in millions) | Real Estate and Investment Funds(e) | Securitization Vehicles | Structured Investment Vehicles | Affordable Housing Partnerships | Other | Total | |||||||
30-Sep-14 | |||||||||||||
Assets: | |||||||||||||
Bonds available for sale | $ | - | $ | 11,320 | $ | - | $ | - | $ | 41 | $ | 11,361 | |
Other bond securities | - | 7,375 | 662 | - | 44 | 8,081 | |||||||
Mortgage and other loans receivable | - | 2,460 | - | - | 168 | 2,628 | |||||||
Other invested assets | 586 | - | - | 1,725 | 705 | 3,016 | |||||||
Other (a) | 41 | 697 | 90 | 46 | 561 | 1,435 | |||||||
Total assets(b)(c) | $ | 627 | $ | 21,852 | $ | 752 | $ | 1,771 | $ | 1,519 | $ | 26,521 | |
Liabilities: | |||||||||||||
Long-term debt | $ | 69 | $ | 1,371 | $ | 91 | $ | 184 | $ | 73 | $ | 1,788 | |
Other (d) | 32 | 91 | - | 88 | 201 | 412 | |||||||
Total liabilities | $ | 101 | $ | 1,462 | $ | 91 | $ | 272 | $ | 274 | $ | 2,200 | |
31-Dec-13 | |||||||||||||
Assets: | |||||||||||||
Bonds available for sale | $ | - | $ | 11,028 | $ | - | $ | - | $ | 70 | $ | 11,098 | |
Other bond securities | - | 7,449 | 748 | - | 113 | 8,310 | |||||||
Mortgage and other loans receivable | - | 1,508 | - | - | 189 | 1,697 | |||||||
Other invested assets | 849 | - | - | 1,986 | 793 | 3,628 | |||||||
Other (a) | 49 | 481 | 93 | 41 | 615 | 1,279 | |||||||
Total assets(b)(c) | $ | 898 | $ | 20,466 | $ | 841 | $ | 2,027 | $ | 1,780 | $ | 26,012 | |
Liabilities: | |||||||||||||
Long-term debt | $ | 71 | $ | 494 | $ | 87 | $ | 188 | $ | 154 | $ | 994 | |
Other(d) | 31 | 74 | - | 83 | 367 | 555 | |||||||
Total liabilities | $ | 102 | $ | 568 | $ | 87 | $ | 271 | $ | 521 | $ | 1,549 | |
(a) Comprised primarily of Short-term investments, Premiums and other receivables and Other assets at both September 30, 2014 and December 31, 2013. | |||||||||||||
(b) The assets of each VIE can be used only to settle specific obligations of that VIE. | |||||||||||||
(c) At September 30, 2014 and December 31, 2013, includes approximately $21.7 billion and $21.4 billion, respectively, of investment-grade debt securities, loans and other assets held by certain securitization vehicles that issued beneficial interests in these investments. The majority of the beneficial interests issued are held by AIG. | |||||||||||||
(d) Comprised primarily of Other liabilities and Derivative liabilities, at fair value, at both September 30, 2014 and December 31, 2013. | |||||||||||||
(e) At September 30, 2014 and December 31, 2013, off-balance sheet exposure, primarily consisting of commitments to real estate and investment funds, was $60.2 million and $50.8 million, respectively. | |||||||||||||
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* | Sheet | Total | |||||||||
30-Sep-14 | |||||||||||||
Real estate and investment funds | $ | 20,228 | $ | 2,741 | $ | 421 | $ | 3,162 | |||||
Affordable housing partnerships | 438 | 438 | - | 438 | |||||||||
Other | 615 | 31 | - | 31 | |||||||||
Total | $ | 21,281 | $ | 3,210 | $ | 421 | $ | 3,631 | |||||
31-Dec-13 | |||||||||||||
Real estate and investment funds | $ | 17,572 | $ | 2,343 | $ | 289 | $ | 2,632 | |||||
Affordable housing partnerships | 478 | 477 | - | 477 | |||||||||
Other | 708 | 37 | - | 37 | |||||||||
Total | $ | 18,758 | $ | 2,857 | $ | 289 | $ | 3,146 | |||||
* At September 30, 2014 and December 31, 2013, $3.2 billion and $2.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. | |||||||||||||
See Note 10 to the Consolidated Financial Statements in the 2013 Annual Report for additional information on VIEs. |
DERIVATIVES_AND_HEDGE_ACCOUNTI
DERIVATIVES AND HEDGE ACCOUNTING | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
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. See Note 11 to the Consolidated Financial Statements in the 2013 Annual Report for a discussion of our accounting policies and procedures regarding derivatives and hedge accounting. | ||||||||||||||||||||
Effective April 1, 2014, we reclassified cross-currency swaps from Interest rate contracts to Foreign exchange contracts. This change was applied prospectively. | ||||||||||||||||||||
The following table presents the notional amounts and fair values of our derivative instruments: | ||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||
Gross Derivative Assets | Gross Derivative Liabilities | Gross Derivative Assets | Gross Derivative Liabilities | |||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | |||||||||||||
(in millions) | Amount | Value(a) | Amount | Value(a) | Amount | Value(a) | Amount | Value(a) | ||||||||||||
Derivatives designated as | ||||||||||||||||||||
hedging instruments: | ||||||||||||||||||||
Interest rate contracts | $ | - | $ | - | $ | 25 | $ | 1 | $ | - | $ | - | $ | 112 | $ | 15 | ||||
Foreign exchange contracts | 327 | 12 | 1,645 | 164 | - | - | 1,857 | 190 | ||||||||||||
Equity contracts | 99 | 1 | 8 | 1 | - | - | - | - | ||||||||||||
Derivatives not designated | ||||||||||||||||||||
as hedging instruments: | ||||||||||||||||||||
Interest rate contracts | 47,090 | 2,823 | 37,613 | 2,783 | 50,897 | 3,771 | 59,585 | 3,849 | ||||||||||||
Foreign exchange contracts | 13,965 | 1,052 | 9,456 | 1,339 | 1,774 | 52 | 3,789 | 129 | ||||||||||||
Equity contracts(b) | 8,373 | 220 | 38,420 | 1,113 | 29,296 | 413 | 9,840 | 524 | ||||||||||||
Commodity contracts | 15 | - | 12 | 5 | 17 | 1 | 13 | 5 | ||||||||||||
Credit contracts | 30 | 20 | 5,688 | 1,038 | 70 | 55 | 15,459 | 1,335 | ||||||||||||
Other contracts(c) | 35,169 | 34 | 636 | 89 | 32,440 | 34 | 1,408 | 167 | ||||||||||||
Total derivatives not | ||||||||||||||||||||
designated as hedging | ||||||||||||||||||||
instruments | 104,642 | 4,149 | 91,825 | 6,367 | 114,494 | 4,326 | 90,094 | 6,009 | ||||||||||||
Total derivatives, gross | $ | 105,068 | $ | 4,162 | $ | 93,503 | $ | 6,533 | $ | 114,494 | $ | 4,326 | $ | 92,063 | $ | 6,214 | ||||
(a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. | ||||||||||||||||||||
(b) Notional amount of derivative assets and fair value of derivative assets were both zero at September 30, 2014 and were $23.2 billion and $107 million at December 31, 2013, respectively, related to bifurcated embedded derivatives. Notional amount of derivative liabilities and fair value of derivative liabilities include $35.6 billion and $1.0 billion, respectively, at September 30, 2014, and $6.7 billion and $424 million, respectively, at December 31, 2013, related to bifurcated embedded derivatives. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. | ||||||||||||||||||||
(c) Consists primarily of contracts with multiple underlying exposures. | ||||||||||||||||||||
The following table presents the fair values of derivative assets and liabilities in the Condensed Consolidated Balance Sheets: | ||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | |||||||||||||
(in millions) | Amount | Value | Amount | Value | Amount | Value | Amount | Value | ||||||||||||
Global Capital Markets derivatives: | ||||||||||||||||||||
AIG Financial Products | $ | 30,619 | $ | 2,331 | $ | 28,650 | $ | 3,020 | $ | 41,942 | $ | 2,567 | $ | 52,679 | $ | 3,506 | ||||
AIG Markets | 25,142 | 1,308 | 20,959 | 1,798 | 12,531 | 964 | 23,716 | 1,506 | ||||||||||||
Total Global Capital Markets derivatives | 55,761 | 3,639 | 49,609 | 4,818 | 54,473 | 3,531 | 76,395 | 5,012 | ||||||||||||
Non-Global Capital Markets derivatives(a) | 49,307 | 523 | 43,894 | 1,715 | 60,021 | 795 | 15,668 | 1,202 | ||||||||||||
Total derivatives, gross | $ | 105,068 | 4,162 | $ | 93,503 | 6,533 | $ | 114,494 | 4,326 | $ | 92,063 | 6,214 | ||||||||
Counterparty netting(b) | -1,769 | -1,769 | -1,734 | -1,734 | ||||||||||||||||
Cash collateral(c) | -805 | -1,186 | -820 | -1,484 | ||||||||||||||||
Total derivatives, net | 1,588 | 3,578 | 1,772 | 2,996 | ||||||||||||||||
Less: Bifurcated embedded derivatives | - | 1,076 | 107 | 485 | ||||||||||||||||
Total derivatives on consolidated | ||||||||||||||||||||
balance sheet | $ | 1,588 | $ | 2,502 | $ | 1,665 | $ | 2,511 | ||||||||||||
(a) Represents derivatives used to hedge the foreign currency and interest rate risk associated with insurance as well as embedded derivatives included in insurance contracts. Assets and liabilities include bifurcated embedded derivatives which are recorded in Policyholder contract deposits. | ||||||||||||||||||||
(b) Represents netting of derivative exposures covered by a qualifying master netting agreement. | ||||||||||||||||||||
(c) Represents cash collateral posted and received that is eligible for netting. | ||||||||||||||||||||
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 agreements also include Credit Support Annex (CSA) provisions, which provide for collateral postings that may vary at various ratings and threshold levels. We attempt to reduce our risk with certain counterparties by entering into agreements that enable collateral to be obtained from a counterparty on an upfront or contingent basis. We minimize the risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and generally requiring additional collateral to be posted upon the occurrence of certain events or circumstances. In addition, certain derivative transactions have provisions that require collateral to be posted upon a downgrade of our long-term debt ratings or give the counterparty the right to terminate the transaction. In the case of some of the derivative transactions, upon a downgrade of our long-term debt ratings, as an alternative to posting collateral and subject to certain conditions, we may assign the transaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action. The actual amount of collateral required to be posted to counterparties in the event of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. | ||||||||||||||||||||
Collateral posted by us to third parties for derivative transactions was $2.9 billion and $3.2 billion at September 30, 2014 and December 31, 2013, respectively. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $1.0 billion at both September 30, 2014 and December 31, 2013. We generally can repledge or resell this 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 by Global Capital Markets (GCM) 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 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 cross-currency interest rate swaps as hedges of the change in fair values of fixed-rate GICs attributable to changes in benchmark interest rates and foreign exchange rates. | ||||||||||||||||||||
We use foreign currency denominated debt and cross-currency interest rate 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. We assess the hedge effectiveness and measure the amount of ineffectiveness for these hedge relationships based on changes in spot exchange rates. For the three- and nine-month periods ended September 30, 2014, we recognized gains of $104 million and $107 million, respectively, and for the three- and nine-month periods ended September 30, 2013, we recognized losses of $108 million and $13 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: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||
Gain recognized in earnings on derivatives(a) | $ | - | $ | 2 | $ | 2 | $ | 2 | ||||||||||||
Gain recognized in earnings on hedged items(b) | 10 | 17 | 85 | 70 | ||||||||||||||||
Foreign exchange contracts:(c) | ||||||||||||||||||||
Loss recognized in earnings on derivatives(d) | -76 | -21 | -20 | -61 | ||||||||||||||||
Gain recognized in earnings on hedged items(e) | 97 | 19 | 37 | 66 | ||||||||||||||||
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | 9 | -2 | -3 | 5 | ||||||||||||||||
Equity contracts:(f) | ||||||||||||||||||||
Gain (loss) recognized in earnings on derivatives | 4 | - | -10 | - | ||||||||||||||||
Gain (loss) recognized in earnings on hedged items | -6 | - | 8 | - | ||||||||||||||||
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | -2 | - | -2 | - | ||||||||||||||||
(a) Includes gains of $1 million recorded in Interest credited to policyholder account balances and $1 million recorded in Net realized capital gains (losses) for the nine-month period ended September 30, 2014. | ||||||||||||||||||||
(b) Includes gains of $10 million and $17 million for the three-month periods ended September 30, 2014 and 2013, respectively, and $37 million and $72 million for the nine-month periods ended September 30, 2014 and 2013, respectively, representing the amortization of debt basis adjustment recorded in Other income and Net realized capital gains (losses) following the discontinuation of hedge accounting. Also includes gains of $50 million for the nine-month period ended September 30, 2014, recorded in Loss on extinguishment of debt, representing the release of debt basis following the repurchase of issued debt that was part of previously discontinued hedge accounting relationships. | ||||||||||||||||||||
(c) Gains and losses recognized in earnings for the ineffective portion and amounts excluded from effectiveness testing, if any, are recorded in Net realized capital gains (losses). | ||||||||||||||||||||
(d) Includes gains of $1 million recorded in Interest credited to policyholder account balances for the three- and nine-month periods ended September 30, 2014. All other gains and losses are recorded in Net realized capital gains (losses). | ||||||||||||||||||||
(e) Includes gains of $14 million and $22 million for the three- and nine-month periods ended September 30, 2014, respectively, representing the amortization of debt basis adjustment recorded in Other income and Net realized capital gains (losses) following the discontinuation of hedge accounting. Also includes losses of $2 million and $3 million for the three- and nine-month periods ended September 30, 2014, respectively, in Interest credited to policyholder account balances. All other gains and losses are recorded in Net realized capital gains (losses). | ||||||||||||||||||||
(f) Gains and losses recognized in earnings are recorded in Net realized capital gains (losses). | ||||||||||||||||||||
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) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
By Derivative Type: | ||||||||||||||||||||
Interest rate contracts | $ | 222 | $ | 35 | $ | 409 | $ | -250 | ||||||||||||
Foreign exchange contracts | 253 | -83 | 276 | 64 | ||||||||||||||||
Equity contracts* | -151 | 158 | -562 | 670 | ||||||||||||||||
Commodity contracts | -2 | -1 | -1 | -3 | ||||||||||||||||
Credit contracts | 75 | 52 | 229 | 365 | ||||||||||||||||
Other contracts | 44 | 14 | 83 | 74 | ||||||||||||||||
Total | $ | 441 | $ | 175 | $ | 434 | $ | 920 | ||||||||||||
By Classification: | ||||||||||||||||||||
Policy fees | $ | 74 | $ | 56 | $ | 210 | $ | 149 | ||||||||||||
Net investment income | 43 | -7 | 69 | 22 | ||||||||||||||||
Net realized capital gains (losses) | 13 | 200 | -302 | 200 | ||||||||||||||||
Other income (losses) | 309 | -71 | 447 | 560 | ||||||||||||||||
Policyholder benefits and claims incurred | 2 | -3 | 10 | -11 | ||||||||||||||||
Total | $ | 441 | $ | 175 | $ | 434 | $ | 920 | ||||||||||||
* Includes embedded derivative losses of $64 million and $406 million for the three- and nine-month periods ended September 30, 2014, respectively, and embedded derivative gains of $266 million and $1.0 billion for the three- and nine-month periods ended September 30, 2013, respectively. | ||||||||||||||||||||
Global Capital Markets Derivatives | ||||||||||||||||||||
Derivative transactions between AIG and its subsidiaries and third parties are generally centralized through GCM, specifically through the entity AIG Markets, Inc. (AIG Markets). The derivatives portfolio of AIG Markets consists primarily of interest rate and currency derivatives and also includes legacy credit derivatives that have been novated from AIG Financial Products Corp. and AIG Trading Group Inc. and their respective subsidiaries (collectively, AIGFP). AIGFP also enters into derivatives to mitigate market risk in its exposures (interest rates, currencies, credit, commodities and equities) arising from its portfolio of remaining transactions. | ||||||||||||||||||||
GCM follows a policy of minimizing interest rate, currency, commodity, and equity risks associated with investment securities by entering into offsetting positions, thereby offsetting a significant portion of the unrealized appreciation and depreciation. | ||||||||||||||||||||
Super Senior Credit Default Swaps | ||||||||||||||||||||
Credit default swap (CDS) transactions were entered into with the intention of earning revenue on credit exposure. In the majority of these transactions, we sold credit protection on a designated portfolio of loans or debt securities. Generally, such credit protection was provided on a “second loss” basis, meaning we would incur credit losses only after a shortfall of principal and/or interest, or other credit events, in respect of the protected loans and debt securities, exceeded a specified threshold amount or level of “first losses.” | ||||||||||||||||||||
The following table presents the net notional amount (net of all structural subordination below the covered tranches), fair value of derivative (asset) liability before the effects of counterparty netting adjustments and offsetting cash collateral and unrealized market valuation gain (loss) of the super senior credit default swap portfolio by asset class: | ||||||||||||||||||||
Fair Value of | Unrealized Market | |||||||||||||||||||
Net Notional Amount at | Derivative Liability at | Valuation Gain | ||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Arbitrage: | ||||||||||||||||||||
Multi-sector CDOs(a) | 2,769 | 3,257 | 989 | 1,249 | 63 | 49 | 201 | 330 | ||||||||||||
Corporate debt/CLOs(b)(c) | 2,715 | 11,832 | 6 | 28 | 12 | 5 | 22 | 26 | ||||||||||||
Total | $ | 5,484 | $ | 15,089 | $ | 995 | $ | 1,277 | $ | 75 | $ | 54 | $ | 223 | $ | 356 | ||||
(a) During the nine-month period ended September 30, 2014, we paid $59 million to counterparties with respect to multi-sector CDOs, which was previously included in the fair value of the derivative liability as an unrealized market valuation loss. Collateral postings with regards to multi-sector CDOs were $899 million and $1.1 billion at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
(b) Corporate debt/Collateralized Loan Obligations (CLOs) include $790 million and $1.0 billion in net notional amount of credit default swaps written on the super senior tranches of CLOs at September 30, 2014 and December 31, 2013, respectively. Collateral postings with regards to Corporate debt/CLOs were $182 million and $353 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
(c) On July 17, 2014, GCM terminated Corporate Debt Super Senior CDSs with a notional amount of $8.8 billion. | ||||||||||||||||||||
The expected weighted average maturity of the super senior credit derivative portfolios as of September 30, 2014 was five years for the multi-sector CDO arbitrage portfolio and three years for the corporate debt/CLO portfolio. | ||||||||||||||||||||
Because of long-term maturities of the CDSs in the arbitrage portfolio, we are unable to make reasonable estimates of the periods during which any payments would be made. However, the net notional amount represents the maximum exposure to loss on the super senior credit default swap portfolio. | ||||||||||||||||||||
Written Single Name Credit Default Swaps | ||||||||||||||||||||
We have legacy credit default swap contracts referencing single-name exposures written on corporate, index and asset-backed credits with the intention of earning spread income on credit exposure. Some of these transactions were entered into as part of a long-short strategy to earn the net spread between CDSs written and purchased. At September 30, 2014 and December 31, 2013, the net notional amounts of these written CDS contracts were $205 million and $373 million, respectively, including ABS CDS transactions purchased from a liquidated multi-sector super senior CDS transaction. These exposures were partially hedged by purchasing offsetting CDS contracts of $30 million and $50 million in net notional amounts at September 30, 2014 and December 31, 2013, respectively. The net unhedged positions of $175 million and $323 million at September 30, 2014 and December 31, 2013, respectively, represent the maximum exposure to loss on these CDS contracts. The average maturity of the written CDS contracts was three years at both September 30, 2014 and December 31, 2013. At September 30, 2014 and December 31, 2013, the fair values of derivative liabilities (which represents the carrying value) of the portfolio of CDS were $23 million and $32 million, respectively. | ||||||||||||||||||||
Upon a triggering event (e.g., a default) with respect to the underlying reference obligations, settlement is generally effected through the payment of the notional amount of the contract to the counterparty in exchange for the related principal amount of securities issued by the underlying credit obligor (physical settlement) or, in some cases, payment of an amount associated with the value of the notional amount of the reference obligations through a market quotation process (cash settlement). | ||||||||||||||||||||
These CDS contracts were written under ISDA Master Agreements. The majority of these ISDA Master Agreements include credit support annexes (CSAs) that provide for collateral postings that may vary at various ratings and threshold levels. At September 30, 2014 and December 31, 2013, net collateral posted by us under these contracts was $26 million and $38 million, respectively, prior to offsets for other transactions. | ||||||||||||||||||||
All Other Derivatives | ||||||||||||||||||||
Our businesses other than GCM also use derivatives and other instruments as part of their financial risk management. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium- and long-term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and options) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures, and foreign currency transactions. Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities. 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 and purchasing investments with embedded derivatives, such as equity-linked notes and convertible bonds. | ||||||||||||||||||||
Credit Risk-Related Contingent Features | ||||||||||||||||||||
The aggregate fair value of our derivative instruments that contain credit risk-related contingent features that were in a net liability position at September 30, 2014 and December 31, 2013, was approximately $2.8 billion and $2.6 billion, respectively. The aggregate fair value of assets posted as collateral under these contracts at September 30, 2014 and December 31, 2013, was $3.6 billion and $3.1 billion, respectively. | ||||||||||||||||||||
We estimate that at September 30, 2014, based on our outstanding financial derivative transactions, a one-notch downgrade of our long-term senior debt ratings to BBB+ by Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. (S&P), would permit counterparties to make additional collateral calls and permit certain counterparties to elect early termination of contracts, resulting in a negligible amount of corresponding collateral postings and termination payments; a one-notch downgrade to Baa2 by Moody’s Investors’ Service, Inc. (Moody’s) and an additional one-notch downgrade to BBB by S&P would result in approximately $48 million in additional collateral postings and termination payments, and a further one-notch downgrade to Baa3 by Moody’s and BBB- by S&P would result in approximately $190 million in additional collateral postings and termination payments. | ||||||||||||||||||||
Additional collateral postings upon downgrade are estimated based on the factors in the individual collateral posting provisions of the CSA with each counterparty and current exposure as of September 30, 2014. Factors considered in estimating the termination payments upon downgrade include current market conditions, the complexity of the derivative transactions, historical termination experience and other observable market events such as bankruptcy and downgrade events that have occurred at other companies. Our estimates are also based on the assumption that counterparties will terminate based on their net exposure to us. The actual termination payments could significantly differ from our estimates given market conditions at the time of downgrade and the level of uncertainty in estimating both the number of counterparties who may elect to exercise their right to terminate and the payment that may be triggered in connection with any such exercise. | ||||||||||||||||||||
Hybrid Securities with Embedded Credit Derivatives | ||||||||||||||||||||
We invest in hybrid securities (such as credit-linked notes) with the intent of generating income, and not specifically to acquire exposure to embedded derivative risk. As is the case with our other investments in RMBS, CMBS, CDOs and ABS, our investments in these hybrid securities are exposed to losses only up to the amount of our initial investment in the hybrid security. Other than our initial investment in the hybrid securities, we have no further obligation to make payments on the embedded credit derivatives in the related hybrid securities. | ||||||||||||||||||||
We elect to account for our investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recognized in Net investment income and Other income. Our investments in these hybrid securities are reported as Other bond securities in the Consolidated Balance Sheets. The fair values of these hybrid securities were $6.1 billion and $6.4 billion at September 30, 2014 and December 31, 2013, respectively. These securities have par amounts of $12.1 billion and $13.4 billion at September 30, 2014 and December 31, 2013, respectively, and have remaining stated maturity dates that extend to 2052. |
CONTINGENCIES_COMMITMENTS_AND_
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 9 Months Ended |
Sep. 30, 2014 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | ' |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | ' |
10. CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
In the normal course of business, various contingent liabilities and commitments are entered into by AIG and our subsidiaries. In addition, AIG Parent guarantees various obligations of certain subsidiaries. | |
Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on AIG’s consolidated financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period. | |
Legal Contingencies | |
Overview. In the normal course of business, AIG and our subsidiaries are, like others in the insurance and financial services industries in general, subject to litigation, including claims for punitive damages. In our insurance and mortgage guaranty operations, litigation arising from claims settlement activities is generally considered in the establishment of our liability for unpaid claims and claims adjustment expense. However, the potential for increasing jury awards and settlements makes it difficult to assess the ultimate outcome of such litigation. AIG is also subject to derivative, class action and other claims asserted by its shareholders and others alleging, among other things, breach of fiduciary duties by its directors and officers and violations of insurance laws and regulations, as well as federal and state securities laws. In the case of any derivative action brought on behalf of AIG, any recovery would accrue to the benefit of AIG. | |
Various regulatory and governmental agencies have been reviewing certain transactions and practices of AIG and our subsidiaries in connection with industry-wide and other inquiries into, among other matters, certain business practices of current and former operating insurance subsidiaries. We have cooperated, and will continue to cooperate, in producing documents and other information in response to subpoenas and other requests. | |
AIG’s Subprime Exposure, AIGFP Credit Default Swap Portfolio and Related Matters | |
AIG, AIGFP and certain directors and officers of AIG, AIGFP and other AIG subsidiaries have been named in various actions relating to our exposure to the U.S. residential subprime mortgage market, unrealized market valuation losses on AIGFP’s super senior credit default swap portfolio, losses and liquidity constraints relating to our securities lending program and related disclosure and other matters (Subprime Exposure Issues). | |
Consolidated 2008 Securities Litigation. Between May 21, 2008 and January 15, 2009, eight purported securities class action complaints were filed against AIG and certain directors and officers of AIG and AIGFP, AIG’s outside auditors, and the underwriters of various securities offerings in the United States District Court for the Southern District of New York (the Southern District of New York), alleging claims under the Securities Exchange Act of 1934, as amended (the Exchange Act), or claims under the Securities Act of 1933, as amended (the Securities Act). On March 20, 2009, the Court consolidated all eight of the purported securities class actions as In re American International Group, Inc. 2008 Securities Litigation (the Consolidated 2008 Securities Litigation). | |
On May 19, 2009, the lead plaintiff in the Consolidated 2008 Securities Litigation filed a consolidated complaint on behalf of purchasers of AIG Common Stock during the alleged class period of March 16, 2006 through September 16, 2008, and on behalf of purchasers of various AIG securities offered pursuant to AIG’s shelf registration statements. The consolidated complaint alleges that defendants made statements during the class period in press releases, AIG’s quarterly and year-end filings, during conference calls, and in various registration statements and prospectuses in connection with the various offerings that were materially false and misleading and that artificially inflated the price of AIG Common Stock. The alleged false and misleading statements relate to, among other things, the Subprime Exposure Issues. The consolidated complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act and Sections 11, 12(a)(2), and 15 of the Securities Act. On August 5, 2009, defendants filed motions to dismiss the consolidated complaint, and on September 27, 2010, the Court denied the motions to dismiss. | |
On April 26, 2013, the Court granted a motion for judgment on the pleadings brought by the defendants. The Court’s order dismissed all claims against the outside auditors in their entirety, and it also reduced the scope of the Securities Act claims against AIG and defendants other than the outside auditors. | |
On July 15, 2014, lead plaintiffs and all defendants except AIG’s outside auditors accepted a mediator’s proposal to settle the Consolidated 2008 Securities Litigation for a cash payment by AIG of $960 million (the AIG Settlement). On August 1, 2014, lead plaintiff and AIG’s outside auditors accepted a mediator’s proposal to resolve the Consolidated 2008 Securities Litigation for a cash payment by the outside auditors (the Auditor Settlement and, collectively with the AIG Settlement, the Settlement). On October 7, 2014, the Court granted lead plaintiff’s Motion for Preliminary Approval of Settlement and Approval of Notice to the Class and scheduled a final settlement approval hearing for March 20, 2015. The Settlement remains subject to notice to the class and final approval by the Court. On October 22, 2014, AIG made a cash payment of $960 million, which is being held in escrow pending final approval of the AIG Settlement and which will be returned if the AIG Settlement is not approved. The AIG Settlement amount has been accrued. | |
Individual Securities Litigations. Between November 18, 2011 and September 16, 2013, nine separate, though similar, securities actions were filed asserting claims substantially similar to those in the Consolidated 2008 Securities Litigation against AIG and certain directors and officers of AIG and AIGFP (one such action also names as defendants AIG’s outside auditors and the underwriters of various securities offerings). These actions are now pending in the Southern District of New York. | |
We have accrued our current estimate of probable loss with respect to these litigations and other potential related litigations. | |
ERISA Actions – Southern District of New York. Between June 25, 2008 and November 25, 2008, AIG, certain directors and officers of AIG, and members of AIG’s Retirement Board and Investment Committee were named as defendants in eight purported class action complaints asserting claims on behalf of participants in certain pension plans sponsored by AIG or its subsidiaries. The Court subsequently consolidated these eight actions as In re American International Group, Inc. ERISA Litigation II. On September 4, 2012, lead plaintiffs’ counsel filed a consolidated second amended complaint. The action purports to be brought as a class action under the Employee Retirement Income Security Act of 1974, as amended (ERISA), on behalf of all participants in or beneficiaries of certain benefit plans of AIG and its subsidiaries that offered shares of AIG Common Stock. In the consolidated second amended complaint, plaintiffs allege, among other things, that the defendants breached their fiduciary responsibilities to plan participants and their beneficiaries under ERISA, by continuing to offer the AIG Stock Fund as an investment option in the plans after it allegedly became imprudent to do so. The alleged ERISA violations relate to, among other things, the defendants’ purported failure to monitor and/or disclose certain matters, including the Subprime Exposure Issues. | |
On November 20, 2012, defendants filed motions to dismiss the consolidated second amended complaint. On June 26, 2014, the Court issued an order denying defendants’ motions to dismiss in light of the U.S. Supreme Court’s decision in Fifth Third Bancorp v. Dudenhoeffer, No. 12-751 (U.S. June 25, 2014), which rejected the presumption of prudence in favor of ERISA fiduciaries that many courts had previously applied. The Court’s order required the parties to meet and confer concerning the impact of the Fifth Third Bancorp case and the possibility of settlement. On September 10, 2014, plaintiffs’ counsel filed a letter with the Court on behalf of all parties, informing the Court that the parties had agreed to schedule a mediation to explore the possibility of settlement. The parties have scheduled a mediation in November 2014. On September 12, 2014, Judge Swain issued an order extending defendants’ time to respond to the second amended complaint to December 12, 2014. | |
As of November 3, 2014, discovery is ongoing, and the Court has not determined if a class action is appropriate or the size or scope of any class. As a result, we are unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation. | |
Canadian Securities Class Action – Ontario Superior Court of Justice. On November 12, 2008, an application was filed in the Ontario Superior Court of Justice for leave to bring a purported class action against AIG, AIGFP, certain directors and officers of AIG and Joseph Cassano, the former Chief Executive Officer of AIGFP, pursuant to the Ontario Securities Act. If the Court grants the application, a class plaintiff will be permitted to file a statement of claim against defendants. The proposed statement of claim would assert a class period of March 16, 2006 through September 16, 2008 and would allege that during this period defendants made false and misleading statements and omissions in quarterly and annual reports and during oral presentations in violation of the Ontario Securities Act. | |
On April 17, 2009, defendants filed a motion record in support of their motion to stay or dismiss for lack of jurisdiction and forum non conveniens. On July 12, 2010, the Court adjourned a hearing on the motion pending a decision by the Supreme Court of Canada in a pair of actions captioned Club Resorts Ltd. v. Van Breda 2012 SCC 17. On April 18, 2012, the Supreme Court of Canada clarified the standard for determining jurisdiction over foreign and out-of-province defendants, such as AIG, by holding that a defendant must have some form of “actual,” as opposed to a merely “virtual,” presence to be deemed to be “doing business” in the jurisdiction. The Supreme Court of Canada also suggested that in future cases, defendants may contest jurisdiction even when they are found to be doing business in a Canadian jurisdiction if their business activities in the jurisdiction are unrelated to the subject matter of the litigation. The matter has been stayed pending further developments in the Consolidated 2008 Securities Litigation. Plaintiff has not yet moved to lift the stay. | |
In plaintiff’s proposed statement of claim, plaintiff alleged general and special damages of $500 million and punitive damages of $50 million plus prejudgment interest or such other sums as the Court finds appropriate. As of November 3, 2014, the Court has not determined whether it has jurisdiction or granted plaintiff’s application to file a statement of claim, no merits discovery has occurred and the action has been stayed. As a result, we are unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation. | |
Starr International Litigation | |
On November 21, 2011, Starr International Company, Inc. (SICO) filed a complaint against the United States in the United States Court of Federal Claims (the Court of Federal Claims), bringing claims, both individually and on behalf of the classes defined below and derivatively on behalf of AIG (the SICO Treasury Action). The complaint challenges the government’s assistance of AIG, pursuant to which AIG entered into a credit facility with the Federal Reserve Bank of New York (the FRBNY, and such credit facility, the FRBNY Credit Facility) and the United States received an approximately 80 percent ownership in AIG. The complaint alleges that the interest rate imposed on AIG and the appropriation of approximately 80 percent of AIG’s equity was discriminatory, unprecedented, and inconsistent with liquidity assistance offered by the government to other comparable firms at the time and violated the Equal Protection, Due Process, and Takings Clauses of the U.S. Constitution. | |
In rulings dated July 2, 2012 and September 17, 2012, the Court of Federal Claims largely denied the United States’ motion to dismiss in the SICO Treasury Action. | |
In the SICO Treasury Action, the only claims naming AIG as a party (as a nominal defendant) are derivative claims on behalf of AIG. On September 21, 2012, SICO made a pre-litigation demand on our Board demanding that we pursue the derivative claims or allow SICO to pursue the claims on our behalf. On January 9, 2013, our Board unanimously refused SICO’s demand in its entirety and on January 23, 2013, counsel for the Board sent a letter to counsel for SICO describing the process by which our Board considered and refused SICO’s demand and stating the reasons for our Board’s determination. | |
On March 11, 2013, SICO filed a second amended complaint in the SICO Treasury Action alleging that its demand was wrongfully refused. On June 26, 2013, the Court of Federal Claims granted AIG’s and the United States’ motions to dismiss SICO’s derivative claims in the SICO Treasury Action and denied the United States’ motion to dismiss SICO’s direct claims. | |
On March 11, 2013, the Court of Federal Claims in the SICO Treasury Action granted SICO’s motion for class certification of two classes with respect to SICO’s non-derivative claims: (1) persons and entities who held shares of AIG Common Stock on or before September 16, 2008 and who owned those shares on September 22, 2008; and (2) persons and entities who owned shares of AIG Common Stock on June 30, 2009 and were eligible to vote those shares at AIG’s June 30, 2009 annual meeting of shareholders. SICO has provided notice of class certification to potential members of the classes, who, pursuant to a court order issued on April 25, 2013, had to return opt-in consent forms by September 16, 2013 to participate in either class. On November 15, 2013, SICO informed the Court that 286,892 holders of AIG Common Stock during the two class periods had opted into the classes. | |
While no longer a party to the SICO Treasury Action, AIG understands that SICO is seeking significant damages. Trial in the SICO Treasury Action began in the Court of Federal Claims on September 29, 2014. | |
The United States has alleged, as an affirmative defense in its answer, that AIG is obligated to indemnify the FRBNY and its representatives, including the Federal Reserve Board of Governors and the United States (as the FRBNY’s principal), for any recovery in the SICO Treasury Action, and seeks a contingent offset or recoupment for the value of net operating loss benefits the United States alleges that we received as a result of the government’s assistance. On November 8, 2013, the Court denied a motion by SICO to strike the United States’ affirmative defenses of indemnification and contingent offset or recoupment. | |
A determination that the United States is liable for damages, together with a determination that AIG is obligated to indemnify the United States for any such damages, could have a material adverse effect on our business, consolidated financial condition and results of operations. | |
False Claims Act Complaint | |
On February 25, 2010, a complaint was filed in the United States District Court for the Southern District of California by two individuals (Relators) seeking to assert claims on behalf of the United States against AIG and certain other defendants, including Goldman Sachs and Deutsche Bank, under the False Claims Act. Relators filed a first amended complaint on September 30, 2010, adding certain additional defendants, including Bank of America and Société Générale. The first amended complaint alleged that defendants engaged in fraudulent business practices in respect of their activities in the over-the-counter market for collateralized debt obligations, and submitted false claims to the United States in connection with the FRBNY Credit Facility and Maiden Lane II LLC (ML II) and Maiden Lane III LLC entities (the Maiden Lane Interests) through, among other things, misrepresenting AIG’s ability and intent to repay amounts drawn on the FRBNY Credit Facility, and misrepresenting the value of the securities that the Maiden Lane Interests acquired from AIG and certain of its counterparties. The first amended complaint sought unspecified damages pursuant to the False Claims Act in the amount of three times the damages allegedly sustained by the United States as well as interest, attorneys’ fees, costs and expenses. The complaint and the first amended complaint were initially filed and maintained under seal while the United States considered whether to intervene in the action. On or about April 28, 2011, after the United States declined to intervene, the District Court lifted the seal, and Relators served the first amended complaint on AIG on July 11, 2011. On April 19, 2013, the Court granted AIG’s motion to dismiss, dismissing the first amended complaint in its entirety, without prejudice, giving the Relators the opportunity to file a second amended complaint. On May 24, 2013, the Relators filed a second amended complaint, which attempted to plead the same claims as the prior complaints and did not specify an amount of alleged damages. AIG and its co-defendants filed motions to dismiss the second amended complaint on August 9, 2013. On March 29, 2014, the Court dismissed the second amended complaint with prejudice. On April 30, 2014, the Relators filed a Notice of Appeal to the Ninth Circuit. We are unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation. | |
Litigation Matters Relating to AIG’s Insurance Operations | |
Caremark. AIG and certain of its subsidiaries have been named defendants in two putative class actions in state court in Alabama that arise out of the 1999 settlement of class and derivative litigation involving Caremark Rx, Inc. (Caremark). The plaintiffs in the second-filed action intervened in the first-filed action, and the second-filed action was dismissed. An excess policy issued by a subsidiary of AIG with respect to the 1999 litigation was expressly stated to be without limit of liability. In the current actions, plaintiffs allege that the judge approving the 1999 settlement was misled as to the extent of available insurance coverage and would not have approved the settlement had he known of the existence and/or unlimited nature of the excess policy. They further allege that AIG, its subsidiaries, and Caremark are liable for fraud and suppression for misrepresenting and/or concealing the nature and extent of coverage. | |
The complaints filed by the plaintiffs and the intervenors request compensatory damages for the 1999 class in the amount of $3.2 billion, plus punitive damages. AIG and its subsidiaries deny the allegations of fraud and suppression, assert that information concerning the excess policy was publicly disclosed months prior to the approval of the settlement, that the claims are barred by the statute of limitations, and that the statute cannot be tolled in light of the public disclosure of the excess coverage. The plaintiffs and intervenors, in turn, have asserted that the disclosure was insufficient to inform them of the nature of the coverage and did not start the running of the statute of limitations. | |
On August 15, 2012, the trial court entered an order granting plaintiffs’ motion for class certification, and on September 12, 2014, the Alabama Supreme Court affirmed that order. AIG and the other defendants have petitioned for rehearing of that decision. Absent further review of the class certification order, the matter will return to the trial court for general discovery (which has not yet commenced) and adjudication of the merits. AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation. | |
Regulatory and Related Matters | |
In connection with a multi-state examination of certain accident and health products, including travel products, issued by National Union Fire Insurance Company of Pittsburgh, Pa. (National Union), AIG Property Casualty Inc. (formerly Chartis Inc.), on behalf of itself, National Union, and certain of AIG Property Casualty Inc.’s insurance and non-insurance companies (collectively, the AIG PC parties) entered into a Regulatory Settlement Agreement with regulators from 50 U.S. jurisdictions effective November 29, 2012. Under the agreement, and without admitting any liability for the issues raised in the examination, the AIG PC parties (i) paid a civil penalty of $50 million, (ii) entered into a corrective action plan describing agreed-upon specific steps and standards for evaluating the AIG PC parties’ ongoing compliance with laws and regulations governing the issues identified in the examination, and (iii) agreed to pay a contingent fine in the event that the AIG PC parties fail to satisfy certain terms of the corrective action plan. National Union and other AIG companies are also currently subject to civil litigation relating to the conduct of their accident and health business, and may be subject to additional litigation relating to the conduct of such business from time to time in the ordinary course. There can be no assurance that any regulatory action resulting from the issues identified will not have a material adverse effect on our ongoing operations of the business subject to the agreement, or on similar business written by other AIG carriers. | |
Industry-wide examinations conducted by the Minnesota Department of Insurance and the Department of Housing and Urban Development (HUD) on captive reinsurance practices by lenders and mortgage insurance companies, including UGC, have been ongoing for several years. In 2011, the Consumer Financial Protection Bureau (CFPB) assumed responsibility for violations of the Real Estate Settlement Procedures Act from HUD, and assumed HUD’s aforementioned ongoing investigation. UGC and the CFPB reached a settlement, entered on April 8, 2013 by the United States District Court for the Southern District of Florida, where UGC consented to discontinue its remaining captive reinsurance practices and to pay a civil monetary penalty of $4.5 million to the CFPB. The settlement includes a release for all liability related to UGC’s captive reinsurance practices and resolves the CFPB’s investigation. On January 31, 2014, PHH Corp. and various affiliates (all non-parties to the action and the consent order) filed a motion to reopen the case and to intervene therein for the limited purpose of obtaining a declaratory judgment enforcing the consent order. UGC opposed this request, and on March 10, 2014, the Court denied PHH Corp.’s motion. PHH Corp. has appealed to the Eleventh Circuit. | |
UGC has received a proposed consent order from the Minnesota Commissioner of Commerce (the MN Commissioner) which alleges that UGC violated the Real Estate Settlement Procedures Act and other state laws in connection with its practices with captive reinsurance companies owned by lenders. UGC is engaged in discussions with the MN Commissioner with respect to the terms of the proposed consent order. UGC cannot predict if or when a consent order may be entered into or, if entered into, what the terms of the final consent order will be. UGC is also currently subject to civil litigation relating to its placement of reinsurance with captives owned by lenders, and may be subject to additional litigation relating to the conduct of such business from time to time in the ordinary course. | |
AIG is responding to subpoenas from the New York Department of Financial Services (NYDFS) and the Manhattan District Attorney’s Office (NYDA) relating to AIG’s formerly wholly owned subsidiaries, ALICO and Delaware American Life Insurance Company (DelAm), and other related business units, which were sold by AIG to MetLife in November 2010. The inquiries relate to whether ALICO, DelAm and their representatives conducted insurance business in New York over an extended period of time without a license, and whether certain representations by ALICO concerning its activities in New York were accurate. On or about March 31, 2014, a consent order between MetLife and the NYDFS, whereby MetLife agreed to pay $50 million, and a deferred prosecution agreement with the NYDA, whereby MetLife agreed to pay $10 million, were announced. AIG was not a party to either settlement. The consent order between the NYDFS and MetLife made certain findings, including that former AIG subsidiaries and affiliates conducted insurance business in New York without a license and that ALICO, while operating as a subsidiary of AIG, made misrepresentations and omissions concerning its insurance business activities in New York to NYDFS’s predecessor agency, the New York State Department of Insurance. The NYDFS also found in the consent order that AIG had violated the New York Insurance Law. On April 3, 2014, AIG filed a complaint against the NYDFS and NYDFS Superintendent Benjamin Lawsky in the Southern District of New York, seeking declaratory and injunctive relief on the basis that the NYDFS’s interpretation of the New York Insurance Law is unconstitutional under the Due Process and Commerce Clauses, as well as the First Amendment, of the U.S. Constitution. Defendants filed a motion to dismiss the federal complaint on May 16, 2014. Thereafter, on June 2, 2014, AIG filed its First Amended Complaint to account for new statutory provisions raised for the first time in Defendants’ motion to dismiss. Defendants’ motion to dismiss the amended complaint was filed on June 20, 2014 and has been fully briefed. On October 31, 2014, AIG and NYDFS entered into a Consent Order, whereby AIG agreed to pay $35 million and dismiss the federal lawsuit in exchange for NYDFS’s agreement to discontinue its inquiry. | |
On May 12, 2010, a complaint was filed under seal in the Southern District of New York by an individual (Relator) seeking to assert claims on behalf of the United States against AIG under the False Claims Act. The Relator filed also under seal a first amended complaint on July 28, 2011. The complaint and the first amended complaint were initially filed and maintained under seal while the United States considered whether to intervene in the action, and on or about October 29, 2013, after the United States declined to intervene, the District Court ordered the complaint be unsealed 30 days after the entry of the order. The case, however, was not unsealed until May 9, 2014. The Relator thereafter served his second amended complaint on AIG on May 23, 2014. The second amended complaint alleges that AIG made false statements relevant to the valuation of two of its former subsidiaries, ALICO and American International Assurance Limited (AIA), in connection with agreements under which interests in those subsidiaries were transferred to the FRBNY in exchange for a $25 billion decrease in the amount owed to the FRBNY under the FRBNY Credit Facility. Specifically, it alleges that AIG falsely told the federal government that ALICO and AIA had the licenses they needed to conduct their business and were in compliance with applicable laws and regulations. AIG’s response to the second amended complaint is due on December 22, 2014. | |
As previously disclosed, a state regulatory agency has requested additional information relating to the unwinding of a position on which we realized gains of $196 million in the nine-month period ended September 30, 2014. | |
Legal Reserves | |
We recorded increases in our legal reserve liability of $5 million and $503 million in the three- and nine-month periods ended September 30, 2014, respectively. | |
Other Contingencies | |
Liability for unpaid claims and claims adjustment expense | |
Although we regularly review the adequacy of the established Liability for unpaid claims and claims adjustment expense, there can be no assurance that our loss reserves will not develop adversely and have a material adverse effect on our results of operations. Estimation of ultimate net losses, loss expenses and loss reserves is a complex process, particularly for long-tail casualty lines of business, which include, but are not limited to, general liability, commercial automobile liability, environmental, workers’ compensation, excess casualty and crisis management coverages, insurance and risk management programs for large corporate customers and other customized structured insurance products, as well as excess and umbrella liability, directors and officers and products liability. Generally, actual historical loss development factors are used to project future loss development. However, there can be no assurance that future loss development patterns will be the same as in the past. Moreover, any deviation in loss cost trends or in loss development factors might not be identified for an extended period of time subsequent to the recording of the initial loss reserve estimates for any accident year. There is the potential for reserves with respect to a number of years to be significantly affected by changes in loss cost trends or loss development factors that were relied upon in setting the reserves. These changes in loss cost trends or loss development factors could be attributable to changes in global economic conditions, changes in the legal, regulatory, judicial and social environment, changes in medical cost trends (inflation, intensity and utilization of medical services), underlying policy pricing, terms and conditions, and claims handling practices. | |
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 $2.5 billion at September 30, 2014. | |
Guarantees | |
Subsidiaries | |
We have issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP and of AIG Markets arising from transactions entered into by AIG Markets. | |
In connection with AIGFP’s business activities, AIGFP has issued, in a limited number of transactions, standby letters of credit or similar facilities to equity investors of structured leasing transactions in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at September 30, 2014 was $238 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. | |
Asset Dispositions | |
General | |
We are subject to financial guarantees and indemnity arrangements in connection with the completed sales of businesses pursuant to our asset disposition plan. The various arrangements may be triggered by, among other things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent liabilities, developments in litigation or breaches of representations, warranties or covenants provided by us. These arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable. | |
We are unable to develop a reasonable estimate of the maximum potential payout under certain of these arrangements. Overall, we believe that it is unlikely we will have to make any material payments related to completed sales under these arrangements, and no material liabilities related to these arrangements have been recorded in the Condensed Consolidated Balance Sheets. | |
ALICO Sale | |
Pursuant to the terms of the ALICO stock purchase agreement, we agreed to provide MetLife with certain indemnities. The most significant remaining indemnities include indemnifications related to specific product, investment, litigation and other matters that are excluded from the general representations and warranties indemnity. These indemnifications provide for various deductible amounts, which in certain cases are zero, and maximum exposures, which in certain cases are unlimited, and may extend for various periods after the completion of the sale. | |
In connection with the indemnity obligations described above, approximately $19 million of proceeds from the sale of ALICO remained in escrow as of September 30, 2014. | |
Other | |
See Note 4 for a discussion about the AerCap Revolving Credit Facility. | |
See Note 8 for commitments and guarantees associated with VIEs. | |
See Note 9 for disclosures about derivatives. | |
See Note 16 for additional disclosures about guarantees of outstanding debt. | |
EQUITY
EQUITY | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
EQUITY | ' | ||||||||||
EQUITY | ' | ||||||||||
11. EQUITY | |||||||||||
Shares Outstanding | |||||||||||
The following table presents a rollforward of outstanding shares: | |||||||||||
Common | Treasury | Common Stock | |||||||||
Stock Issued | Stock | Outstanding | |||||||||
Nine Months Ended September 30, 2014 | |||||||||||
Shares, beginning of year | 1,906,645,689 | -442,582,366 | 1,464,063,323 | ||||||||
Shares issued | 25,803 | 1,143 | 26,946 | ||||||||
Shares repurchased | - | -60,317,318 | -60,317,318 | ||||||||
Shares, end of period | 1,906,671,492 | -502,898,541 | 1,403,772,951 | ||||||||
Dividends | |||||||||||
Payment of future dividends to our shareholders and repurchases of AIG Common Stock depends in part on the regulatory framework that we are currently subject to and that will ultimately be applicable to us, including as a nonbank systemically important financial institution under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and a global systemically important insurer. In addition, 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 therefor. In considering whether to pay a dividend 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 core 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. | |||||||||||
On March 25, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on March 11, 2014. On June 24, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on June 10, 2014. On September 25, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on September 11, 2014. | |||||||||||
See Note 19 to the Consolidated Financial Statements in the 2013 Annual Report for a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries. | |||||||||||
Repurchase of AIG Common Stock | |||||||||||
On August 1, 2013, our Board of Directors authorized the repurchase of shares of AIG Common Stock, with an aggregate purchase price of up to $1.0 billion, from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise. On February 13, 2014, our Board of Directors authorized an increase to the August 1, 2013 repurchase authorization of AIG Common Stock of $1.0 billion. On June 5, 2014, our Board of Directors authorized an additional increase to the August 1, 2013 repurchase authorization of AIG Common Stock of $2.0 billion. | |||||||||||
We repurchased approximately 60 million shares of AIG Common Stock during the nine-month period ended September 30, 2014, for an aggregate purchase price of approximately $3.4 billion. As of September 30, 2014, less than $1 million remained under our repurchase authorization. | |||||||||||
In the second and third quarters of 2014, we executed three accelerated stock repurchase (ASR) agreements with third-party financial institutions. The total number of shares of AIG Common Stock repurchased in the nine-month period ended September 30, 2014, and the aggregate purchase price of those shares, each as set forth above, reflect our payment of approximately $1.7 billion in the aggregate under the ASR agreements and the receipt of approximately 27 million shares of AIG Common Stock in the aggregate, including the initial receipt of 70 percent of the total notional share equivalent, or approximately 8.8 million shares of AIG Common Stock, under an ASR agreement executed in September 2014. That ASR agreement settled in October 2014, at which time we received approximately 3.9 million additional shares of AIG Common Stock based on a formula specified by the terms of the ASR agreement. | |||||||||||
The timing of any future repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factors. | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
The following table presents a rollforward of Accumulated other comprehensive income: | |||||||||||
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Recognized | |||||||||||
Unrealized Appreciation (Depreciation) of All Other Investments | Foreign Currency Translation Adjustments | Change in Retirement Plan Liabilities Adjustment | |||||||||
(in millions) | Total | ||||||||||
Balance, December 31, 2013, net of tax | $ | 936 | $ | 6,789 | $ | -952 | $ | -413 | $ | 6,360 | |
Change in unrealized appreciation of investments | 268 | 6,330 | - | - | 6,598 | ||||||
Change in deferred acquisition costs adjustment and other | 61 | -433 | - | - | -372 | ||||||
Change in future policy benefits | -114 | -781 | - | - | -895 | ||||||
Change in foreign currency translation adjustments | - | - | -149 | - | -149 | ||||||
Net actuarial gain | - | - | - | 40 | 40 | ||||||
Prior service cost | - | - | - | -36 | -36 | ||||||
Change in deferred tax asset (liability) | -41 | -144 | -40 | 9 | -216 | ||||||
Total other comprehensive income (loss) | 174 | 4,972 | -189 | 13 | 4,970 | ||||||
Noncontrolling interests | - | -1 | - | - | -1 | ||||||
Balance, September 30, 2014, net of tax | $ | 1,110 | $ | 11,762 | $ | -1,141 | $ | -400 | $ | 11,331 | |
Balance, December 31, 2012, net of tax | $ | 575 | $ | 13,446 | $ | -403 | $ | -1,044 | $ | 12,574 | |
Change in unrealized appreciation (depreciation) of investments | 314 | -13,048 | - | - | -12,734 | ||||||
Change in deferred acquisition costs adjustment and other | -108 | 939 | - | - | 831 | ||||||
Change in future policy benefits | 80 | 2,727 | - | - | 2,807 | ||||||
Change in foreign currency translation adjustments | - | - | -709 | - | -709 | ||||||
Net actuarial gain | - | - | - | 94 | 94 | ||||||
Prior service cost | - | - | - | -39 | -39 | ||||||
Change in deferred tax asset (liability) | -114 | 3,714 | 82 | -20 | 3,662 | ||||||
Total other comprehensive income (loss) | 172 | -5,668 | -627 | 35 | -6,088 | ||||||
Noncontrolling interests | - | -16 | -7 | - | -23 | ||||||
Balance, September 30, 2013, net of tax | $ | 747 | $ | 7,794 | $ | -1,023 | $ | -1,009 | $ | 6,509 | |
The following table presents the other comprehensive income reclassification adjustments for the three- and nine-month periods ended September 30, 2014 and 2013: | |||||||||||
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Recognized | |||||||||||
Unrealized Appreciation (Depreciation) of All Other Investments | Foreign Currency Translation Adjustments | Change in Retirement Plan Liabilities Adjustment | |||||||||
(in millions) | Total | ||||||||||
Three Months Ended September 30, 2014 | |||||||||||
Unrealized change arising during period | $ | 132 | $ | -575 | $ | -120 | $ | -8 | $ | -571 | |
Less: Reclassification adjustments | |||||||||||
included in net income | 9 | 12 | - | 1 | 22 | ||||||
Total other comprehensive income (loss), | |||||||||||
before income tax expense (benefit) | 123 | -587 | -120 | -9 | -593 | ||||||
Less: Income tax expense (benefit) | 64 | -419 | -42 | -15 | -412 | ||||||
Total other comprehensive income (loss), | |||||||||||
net of income tax expense (benefit) | $ | 59 | $ | -168 | $ | -78 | $ | 6 | $ | -181 | |
Three Months Ended September 30, 2013 | |||||||||||
Unrealized change arising during period | $ | -30 | $ | -652 | $ | -143 | $ | -44 | $ | -869 | |
Less: Reclassification adjustments | |||||||||||
included in net income | 1 | 219 | - | -22 | 198 | ||||||
Total other comprehensive loss, | |||||||||||
before income tax benefit | -31 | -871 | -143 | -22 | -1,067 | ||||||
Less: Income tax expense (benefit) | -8 | -437 | -94 | 4 | -535 | ||||||
Total other comprehensive loss, | |||||||||||
net of income tax expense (benefit) | $ | -23 | $ | -434 | $ | -49 | $ | -26 | $ | -532 | |
Nine Months Ended September 30, 2014 | |||||||||||
Unrealized change arising during period | $ | 242 | $ | 5,522 | $ | -149 | $ | 3 | $ | 5,618 | |
Less: Reclassification adjustments | |||||||||||
included in net income | 27 | 406 | - | -1 | 432 | ||||||
Total other comprehensive income (loss), | |||||||||||
before income tax expense (benefit) | 215 | 5,116 | -149 | 4 | 5,186 | ||||||
Less: Income tax expense (benefit) | 41 | 144 | 40 | -9 | 216 | ||||||
Total other comprehensive income (loss), | |||||||||||
net of income tax expense (benefit) | $ | 174 | $ | 4,972 | $ | -189 | $ | 13 | $ | 4,970 | |
Nine Months Ended September 30, 2013 | |||||||||||
Unrealized change arising during period | $ | 342 | $ | -8,784 | $ | -709 | $ | -18 | $ | -9,169 | |
Less: Reclassification adjustments | |||||||||||
included in net income | 56 | 598 | - | -73 | 581 | ||||||
Total other comprehensive income (loss), | |||||||||||
before income tax expense (benefit) | 286 | -9,382 | -709 | 55 | -9,750 | ||||||
Less: Income tax expense (benefit) | 114 | -3,714 | -82 | 20 | -3,662 | ||||||
Total other comprehensive income (loss), | |||||||||||
net of income tax expense (benefit) | $ | 172 | $ | -5,668 | $ | -627 | $ | 35 | $ | -6,088 | |
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 Consolidated Statements of Income | ||||||||||
Three Months Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | |||||||||
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized | |||||||||||
Investments | $ | 9 | $ | 1 | Other realized capital gains | ||||||
Total | 9 | 1 | - | ||||||||
Unrealized appreciation (depreciation) of all other investments | |||||||||||
Investments | 117 | 501 | Other realized capital gains | ||||||||
Deferred acquisition costs adjustment | -40 | -39 | Amortization of deferred acquisition costs | ||||||||
Future policy benefits | -65 | -243 | Policyholder benefits and claims incurred | ||||||||
Total | 12 | 219 | |||||||||
Change in retirement plan liabilities adjustment | |||||||||||
Prior-service costs | 11 | 13 | * | ||||||||
Actuarial gains/(losses) | -10 | -35 | * | ||||||||
Total | 1 | -22 | |||||||||
Total reclassifications for the period | $ | 22 | $ | 198 | |||||||
Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||||
Nine Months Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | |||||||||
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized | |||||||||||
Investments | $ | 27 | $ | 56 | Other realized capital gains | ||||||
Total | 27 | 56 | |||||||||
Unrealized appreciation (depreciation) of all other investments | |||||||||||
Investments | 528 | 2,093 | Other realized capital gains | ||||||||
Deferred acquisition costs adjustment | -35 | -33 | Amortization of deferred acquisition costs | ||||||||
Future policy benefits | -87 | -1,462 | Policyholder benefits and claims incurred | ||||||||
Total | 406 | 598 | |||||||||
Change in retirement plan liabilities adjustment | |||||||||||
Prior-service costs | 35 | 35 | * | ||||||||
Actuarial gains/(losses) | -36 | -108 | * | ||||||||
Total | -1 | -73 | - | ||||||||
Total reclassifications for the period | $ | 432 | $ | 581 | - | ||||||
* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 14 to the Condensed Consolidated Financial Statements. |
NONCONTROLLING_INTERESTS
NONCONTROLLING INTERESTS | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
NONCONTROLLING INTERESTS | ' | |||||
NONCONTROLLING INTERESTS | ' | |||||
12. NONCONTROLLING INTERESTS | ||||||
The following table presents a rollforward of noncontrolling interests: | ||||||
Redeemable | Non-redeemable | |||||
Noncontrolling | Noncontrolling | |||||
(in millions) | Interests | Interests | ||||
Nine Months Ended September 30, 2014 | ||||||
Balance, beginning of year | $ | 30 | $ | 611 | ||
Contributions from noncontrolling interests | 1 | 13 | ||||
Distributions to noncontrolling interests | - | -78 | ||||
Deconsolidation | -31 | -123 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | - | -25 | ||||
Unrealized losses on investments | - | -1 | ||||
Total other comprehensive | ||||||
income (loss), net of tax | - | -1 | ||||
Total comprehensive income (loss) | - | -26 | ||||
Other | - | 5 | ||||
Balance, end of period | $ | - | $ | 402 | ||
Nine Months Ended September 30, 2013 | ||||||
Balance, beginning of year | $ | 334 | $ | 667 | ||
Contributions from noncontrolling interests | 48 | 25 | ||||
Distributions to noncontrolling interests | -153 | -37 | ||||
Consolidation (deconsolidation) | -146 | 1 | ||||
Comprehensive income (loss): | ||||||
Net income | - | 12 | ||||
Unrealized losses on investments | -15 | - | ||||
Foreign currency translation adjustments | -2 | -6 | ||||
Total other comprehensive | ||||||
loss, net of tax | -17 | -6 | ||||
Total comprehensive income (loss) | -17 | 6 | ||||
Other | - | -6 | ||||
Balance, end of period | $ | 66 | $ | 656 |
EARNINGS_PER_SHARE_EPS
EARNINGS PER SHARE (EPS) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
EARNINGS PER SHARE (EPS) | ' | |||||||||
EARNINGS PER SHARE (EPS) | ' | |||||||||
13. EARNINGS PER SHARE (EPS) | ||||||||||
The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding, and adjusted to reflect all stock dividends and stock splits. | ||||||||||
The following table presents the computation of basic and diluted EPS: | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
(dollars in millions, except per share data) | 2014 | 2013 | 2014 | 2013 | ||||||
Numerator for EPS: | ||||||||||
Income from continuing operations | $ | 2,199 | $ | 2,148 | $ | 6,864 | $ | 7,046 | ||
Less: Net income (loss) from continuing operations attributable to noncontrolling interests | 9 | -40 | -25 | 12 | ||||||
Income attributable to AIG common shareholders from continuing operations | 2,190 | 2,188 | 6,889 | 7,034 | ||||||
Income (loss) from discontinued operations, net of income tax expense | 2 | -18 | -15 | 73 | ||||||
Net income attributable to AIG common shareholders | 2,192 | 2,170 | 6,874 | 7,107 | ||||||
Denominator for EPS: | ||||||||||
Weighted average shares outstanding - basic | 1,419,239,774 | 1,475,053,126 | 1,440,148,774 | 1,476,007,034 | ||||||
Dilutive shares | 22,828,068 | 10,269,732 | 19,334,459 | 5,403,839 | ||||||
Weighted average shares outstanding - diluted* | 1,442,067,842 | 1,485,322,858 | 1,459,483,233 | 1,481,410,873 | ||||||
Income per common share attributable to AIG: | ||||||||||
Basic: | ||||||||||
Income from continuing operations | $ | 1.54 | $ | 1.48 | $ | 4.78 | $ | 4.77 | ||
Income (loss) from discontinued operations | $ | - | $ | -0.01 | $ | -0.01 | $ | 0.05 | ||
Net income attributable to AIG | $ | 1.54 | $ | 1.47 | $ | 4.77 | $ | 4.82 | ||
Diluted: | ||||||||||
Income from continuing operations | $ | 1.52 | $ | 1.47 | $ | 4.72 | $ | 4.75 | ||
Income (loss) from discontinued operations | $ | - | $ | -0.01 | $ | -0.01 | $ | 0.05 | ||
Net income attributable to AIG | $ | 1.52 | $ | 1.46 | $ | 4.71 | $ | 4.8 | ||
* Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans, a weighted average portion of the warrants issued to AIG shareholders as part of the recapitalization in January 2011 and a weighted average portion of the warrants issued to the Department of the Treasury in 2009 that we repurchased in the first quarter of 2013. The number of shares excluded from diluted shares outstanding was 0.3 million for both the three- and nine-month periods ended September 30, 2014, and 0.4 million and 51 million for the three- and nine-month periods ended September 30, 2013, respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EMPLOYEE BENEFITS | ' | |||||||||||||
EMPLOYEE BENEFITS | ' | |||||||||||||
14. EMPLOYEE BENEFITS | ||||||||||||||
The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits: | ||||||||||||||
Pension | Postretirement | |||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||
(in millions) | Plans | Plans | Total | Plans | Plans | Total | ||||||||
Three Months Ended September 30, 2014 | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 42 | $ | 11 | $ | 53 | $ | 1 | $ | - | $ | 1 | ||
Interest cost | 57 | 7 | 64 | 2 | 1 | 3 | ||||||||
Expected return on assets | -73 | -6 | -79 | - | - | - | ||||||||
Amortization of prior service (credit) cost | -8 | -1 | -9 | -3 | - | -3 | ||||||||
Amortization of net (gain) loss | 9 | 2 | 11 | - | - | - | ||||||||
Net periodic benefit cost | $ | 27 | $ | 13 | $ | 40 | $ | - | $ | 1 | $ | 1 | ||
Three Months Ended September 30, 2013 | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 71 | $ | 12 | $ | 83 | $ | 1 | $ | 1 | $ | 2 | ||
Interest cost | 53 | 7 | 60 | 2 | - | 2 | ||||||||
Expected return on assets | -64 | -4 | -68 | - | - | - | ||||||||
Amortization of prior service (credit) cost | -8 | -1 | -9 | -3 | - | -3 | ||||||||
Amortization of net (gain) loss | 40 | 3 | 43 | -1 | - | -1 | ||||||||
Net periodic benefit cost | $ | 92 | $ | 17 | $ | 109 | $ | -1 | $ | 1 | $ | - | ||
Nine Months Ended September 30, 2014 | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 130 | $ | 32 | $ | 162 | $ | 3 | $ | 1 | $ | 4 | ||
Interest cost | 171 | 22 | 193 | 7 | 2 | 9 | ||||||||
Expected return on assets | -215 | -17 | -232 | - | - | - | ||||||||
Amortization of prior service (credit) cost | -25 | -2 | -27 | -8 | - | -8 | ||||||||
Amortization of net (gain) loss | 31 | 6 | 37 | - | - | - | ||||||||
Net periodic benefit cost | $ | 92 | $ | 41 | $ | 133 | $ | 2 | $ | 3 | $ | 5 | ||
Nine Months Ended September 30, 2013 | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 159 | $ | 36 | $ | 195 | $ | 4 | $ | 3 | $ | 7 | ||
Interest cost | 151 | 22 | 173 | 6 | 1 | 7 | ||||||||
Expected return on assets | -193 | -14 | -207 | - | - | - | ||||||||
Amortization of prior service (credit) cost | -25 | -2 | -27 | -8 | - | -8 | ||||||||
Amortization of net (gain) loss | 106 | 9 | 115 | - | - | - | ||||||||
Net periodic benefit cost | $ | 198 | $ | 51 | $ | 249 | $ | 2 | $ | 4 | $ | 6 | ||
For the nine-month period ended September 30, 2014, we contributed $163 million to our U.S. and non-U.S. pension plans and estimate that we will contribute an additional $14 million for the remainder of 2014. These estimates are subject to change because contribution decisions are affected by various factors, including our liquidity, market performance and management discretion. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2014 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
15. INCOME TAXES | |
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. | |
Interim Tax Expense (Benefit) | |
For the three- and nine-month periods ended September 30, 2014, the effective tax rate on income from continuing operations was 27.2 percent and 29.8 percent, respectively. The effective tax rate for the three- and nine-month periods ended September 30, 2014 on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits associated with tax exempt interest income, income excludible from gross income related to the global resolution of certain residential mortgage-related disputes and a decrease in AIG Life and Retirement’s capital loss carryforward valuation allowance. | |
For the three- and nine-month periods ended September 30, 2013, the effective tax rate on income from continuing operations was (82.3) percent and 2.4 percent, respectively. The effective tax rate for the three- and nine-month periods ended September 30, 2013 on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax effects associated with tax exempt interest income, effective settlements of certain uncertain tax positions, and decreases primarily in AIG Life and Retirement’s capital loss carryforward valuation allowance and certain other valuation allowances associated with foreign jurisdictions. The decrease in the capital loss carryforward valuation allowance was primarily attributable to the actual and projected gains on sales of AIG Life and Retirement’s available-for-sale securities. For the nine-month period ended September 30, 2013, these items were partially offset by changes in uncertain tax positions. | |
Assessment of Deferred Tax Asset Valuation Allowance | |
The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. | |
Our framework for assessing the recoverability of the deferred tax asset requires us to consider all available evidence, including: | |
the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; | |
the sustainability of recent operating profitability of our subsidiaries; | |
the predictability of future operating profitability of the character necessary to realize the net deferred tax asset; | |
the carryforward period for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and | |
prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset. | |
As a result of sales in the ordinary course of business to manage our investment portfolio and the implementation of prudent and feasible tax planning strategies, during the three month period ended September 30, 2014, remaining AIG Life and Retirement capital loss carryforwards were realized prior to their expiration. This, together with the changes in market conditions, resulted in a conclusion that deferred tax assets related to unrealized tax losses in AIG Life and Retirement’s available for sale portfolio will more-likely-than-not be realized. Accordingly, the related deferred tax asset valuation allowance was released. | |
For the three-month period ended September 30, 2014, we recognized a $206 million decrease to our deferred tax asset valuation allowance associated with AIG Life and Retirement’s capital loss carryforwards and unrealized tax losses in AIG Life and Retirement’s available for sale portfolio, of which $22 million was allocated to income from continuing operations and $184 million was allocated to other comprehensive income. | |
For the nine-month period ended September 30, 2014, we recognized a $1.8 billion decrease to our deferred tax asset valuation allowance associated with AIG Life and Retirement’s capital loss carryforwards and unrealized tax losses in AIG Life and Retirement’s available for sale portfolio, of which $161 million was allocated to income from continuing operations and $1.7 billion was allocated to other comprehensive income. | |
Tax Examinations and Litigation | |
On March 29, 2013, the U.S District Court for the Southern District of New York denied our motion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions. On March 17, 2014, the U.S. Court of Appeals for the Second Circuit (the Second Circuit) granted our petition for an immediate appeal of the partial summary judgment decision. Accordingly, we are presenting our position to the Second Circuit. | |
We will vigorously defend our position and continue to believe that we have adequate reserves for any liability that could result from the IRS actions. | |
We continue to monitor legal and other developments in this area and evaluate the effect, if any, on our position, including recent decisions affecting other taxpayers. | |
Accounting for Uncertainty in Income Taxes | |
At September 30, 2014 and December 31, 2013, our unrecognized tax benefits, excluding interest and penalties, were $4.5 billion and $4.3 billion, respectively. At September 30, 2014 and December 31, 2013, our unrecognized tax benefits included $0.2 billion and $0.1 billion, respectively, related to tax positions that if recognized would not affect the effective tax rate because they relate to the timing, rather than the permissibility, of the deduction. Accordingly, at September 30, 2014 and December 31, 2013, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $4.3 billion and $4.2 billion, respectively. | |
Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At September 30, 2014 and December 31, 2013, we had accrued liabilities of $1.0 billion and $1.1 billion, respectively, for the payment of interest (net of the federal benefit) and penalties. For the nine-month periods ended September 30, 2014 and 2013, we accrued expense (benefit) of $(64) million and $(45) million, respectively, for the payment of interest (net of the federal benefit) and penalties. | |
We regularly evaluate adjustments proposed by taxing authorities. At September 30, 2014, such proposed adjustments would not have resulted in a material change to our consolidated financial condition, although it is possible that the effect could be material to our consolidated results of operations for an individual reporting period. Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next 12 months, based on the information currently available, we do not expect any change to be material to our consolidated financial condition. |
INFORMATION_PROVIDED_IN_CONNEC
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | ' | ||||||||||
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | ' | ||||||||||
16. INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | |||||||||||
The following condensed consolidating financial statements reflect the results of AIG Life Holdings, Inc. (AIGLH), a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH. | |||||||||||
Condensed Consolidating Balance Sheets | |||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
30-Sep-14 | |||||||||||
Assets: | |||||||||||
Short-term investments | $ | 9,290 | $ | - | $ | 8,930 | $ | -368 | $ | 17,852 | |
Other investments(a) | 11,785 | - | 336,797 | - | 348,582 | ||||||
Total investments | 21,075 | - | 345,727 | -368 | 366,434 | ||||||
Cash | 112 | 9 | 1,812 | - | 1,933 | ||||||
Loans to subsidiaries(b) | 33,081 | - | 630 | -33,711 | - | ||||||
Investment in consolidated subsidiaries(b) | 67,156 | 38,647 | - | -105,803 | - | ||||||
Other assets, including deferred income taxes | 23,939 | 725 | 138,999 | -4,840 | 158,823 | ||||||
Total assets | $ | 145,363 | $ | 39,381 | $ | 487,168 | $ | -144,722 | $ | 527,190 | |
Liabilities: | |||||||||||
Insurance liabilities | $ | - | $ | - | $ | 273,262 | $ | - | $ | 273,262 | |
Long-term debt | 25,613 | 1,132 | 9,478 | - | 36,223 | ||||||
Other liabilities, including intercompany balances(a)(c) | 9,852 | 708 | 103,401 | -5,239 | 108,722 | ||||||
Loans from subsidiaries(b) | 1,317 | - | 32,475 | -33,792 | - | ||||||
Total liabilities | 36,782 | 1,840 | 418,616 | -39,031 | 418,207 | ||||||
Redeemable noncontrolling interests (see Note 12) | - | - | - | - | - | ||||||
Total AIG shareholders’ equity | 108,581 | 37,541 | 68,150 | -105,691 | 108,581 | ||||||
Non-redeemable noncontrolling interests | - | - | 402 | - | 402 | ||||||
Total equity | 108,581 | 37,541 | 68,552 | -105,691 | 108,983 | ||||||
Total liabilities and equity | $ | 145,363 | $ | 39,381 | $ | 487,168 | $ | -144,722 | $ | 527,190 | |
31-Dec-13 | |||||||||||
Assets: | |||||||||||
Short-term investments | $ | 11,965 | $ | - | $ | 11,404 | $ | -1,752 | $ | 21,617 | |
Other investments(a) | 7,561 | - | 327,250 | - | 334,811 | ||||||
Total investments | 19,526 | - | 338,654 | -1,752 | 356,428 | ||||||
Cash | 30 | 51 | 2,160 | - | 2,241 | ||||||
Loans to subsidiaries(b) | 31,220 | - | 854 | -32,074 | - | ||||||
Investment in consolidated subsidiaries(b) | 66,201 | 39,103 | - | -105,304 | - | ||||||
Other assets, including deferred income taxes | 21,606 | 112 | 132,492 | -1,086 | 153,124 | ||||||
Assets held for sale | - | - | 29,536 | - | 29,536 | ||||||
Total assets | $ | 138,583 | $ | 39,266 | $ | 503,696 | $ | -140,216 | $ | 541,329 | |
Liabilities: | |||||||||||
Insurance liabilities | $ | - | $ | - | $ | 271,252 | $ | - | $ | 271,252 | |
Long-term debt | 30,839 | 1,352 | 9,502 | - | 41,693 | ||||||
Other liabilities, including intercompany balances(a)(c) | 6,422 | 161 | 98,908 | -2,766 | 102,725 | ||||||
Loans from subsidiaries(b) | 852 | 200 | 31,173 | -32,225 | - | ||||||
Liabilities held for sale | - | - | 24,548 | - | 24,548 | ||||||
Total liabilities | 38,113 | 1,713 | 435,383 | -34,991 | 440,218 | ||||||
Redeemable noncontrolling interests (see Note 12) | - | - | 30 | - | 30 | ||||||
Total AIG shareholders’ equity | 100,470 | 37,553 | 67,672 | -105,225 | 100,470 | ||||||
Non-redeemable noncontrolling interests | - | - | 611 | - | 611 | ||||||
Total equity | 100,470 | 37,553 | 68,283 | -105,225 | 101,081 | ||||||
Total liabilities and equity | $ | 138,583 | $ | 39,266 | $ | 503,696 | $ | -140,216 | $ | 541,329 | |
(a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment. | |||||||||||
(b) Eliminated in consolidation. | |||||||||||
(c) For September 30, 2014 and December 31, 2013, includes intercompany tax payable of $3.3 billion and $1.4 billion, respectively, and intercompany derivative liabilities of $302 million and $249 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivable of $83 million and $98 million, respectively, for AIGLH. | |||||||||||
Condensed Consolidating Statements of Income | |||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Three Months Ended September 30, 2014 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 2,661 | $ | 1,315 | $ | - | $ | -3,976 | $ | - | |
Other income | 615 | - | 16,118 | -79 | 16,654 | ||||||
Total revenues | 3,276 | 1,315 | 16,118 | -4,055 | 16,654 | ||||||
Expenses: | |||||||||||
Interest expense | 378 | 22 | 62 | -32 | 430 | ||||||
Loss on extinguishment of debt | 682 | - | 60 | - | 742 | ||||||
Other expenses | 284 | 61 | 12,153 | -35 | 12,463 | ||||||
Total expenses | 1,344 | 83 | 12,275 | -67 | 13,635 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 1,932 | 1,232 | 3,843 | -3,988 | 3,019 | ||||||
Income tax expense (benefit) | -261 | -33 | 1,117 | -3 | 820 | ||||||
Income (loss) from continuing operations | 2,193 | 1,265 | 2,726 | -3,985 | 2,199 | ||||||
Income (loss) from discontinued operations, net of income taxes | -1 | - | 3 | - | 2 | ||||||
Net income (loss) | 2,192 | 1,265 | 2,729 | -3,985 | 2,201 | ||||||
Less: | |||||||||||
Net income from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | 9 | - | 9 | ||||||
Net income (loss) attributable to AIG | $ | 2,192 | $ | 1,265 | $ | 2,720 | $ | -3,985 | $ | 2,192 | |
Three Months Ended September 30, 2013 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 1,992 | $ | 1,368 | $ | - | $ | -3,360 | $ | - | |
Other income | 64 | 1 | 15,984 | -105 | 15,944 | ||||||
Total revenues | 2,056 | 1,369 | 15,984 | -3,465 | 15,944 | ||||||
Expenses: | |||||||||||
Interest expense | 465 | 29 | 59 | -37 | 516 | ||||||
Loss on extinguishment of debt | 81 | - | - | - | 81 | ||||||
Other expenses | 668 | 3 | 13,529 | -31 | 14,169 | ||||||
Total expenses | 1,214 | 32 | 13,588 | -68 | 14,766 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 842 | 1,337 | 2,396 | -3,397 | 1,178 | ||||||
Income tax expense (benefit) | -1,328 | -13 | 384 | -13 | -970 | ||||||
Income (loss) from continuing operations | 2,170 | 1,350 | 2,012 | -3,384 | 2,148 | ||||||
Loss from discontinued operations, net of income taxes | - | - | -18 | - | -18 | ||||||
Net income (loss) | 2,170 | 1,350 | 1,994 | -3,384 | 2,130 | ||||||
Less: | |||||||||||
Net loss from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | -40 | - | -40 | ||||||
Net income (loss) attributable to AIG | $ | 2,170 | $ | 1,350 | $ | 2,034 | $ | -3,384 | $ | 2,170 | |
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Nine Months Ended September 30, 2014 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 8,149 | $ | 2,789 | $ | - | $ | -10,938 | $ | - | |
Other income | 1,094 | - | 48,040 | -263 | 48,871 | ||||||
Total revenues | 9,243 | 2,789 | 48,040 | -11,201 | 48,871 | ||||||
Expenses: | |||||||||||
Interest expense | 1,210 | 80 | 180 | -98 | 1,372 | ||||||
Loss on extinguishment of debt | 987 | - | 77 | -50 | 1,014 | ||||||
Other expenses | 1,310 | 79 | 35,439 | -115 | 36,713 | ||||||
Total expenses | 3,507 | 159 | 35,696 | -263 | 39,099 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 5,736 | 2,630 | 12,344 | -10,938 | 9,772 | ||||||
Income tax expense (benefit) | -1,137 | -54 | 4,121 | -22 | 2,908 | ||||||
Income (loss) from continuing operations | 6,873 | 2,684 | 8,223 | -10,916 | 6,864 | ||||||
Income (loss) from discontinued operations, net of income taxes | 1 | - | -16 | - | -15 | ||||||
Net income (loss) | 6,874 | 2,684 | 8,207 | -10,916 | 6,849 | ||||||
Less: | |||||||||||
Net loss from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | -25 | - | -25 | ||||||
Net income (loss) attributable to AIG | $ | 6,874 | $ | 2,684 | $ | 8,232 | $ | -10,916 | $ | 6,874 | |
Nine Months Ended September 30, 2013 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 6,257 | $ | 2,792 | $ | - | $ | -9,049 | $ | - | |
Other income | 1,031 | 1 | 50,558 | -258 | 51,332 | ||||||
Total revenues | 7,288 | 2,793 | 50,558 | -9,307 | 51,332 | ||||||
Expenses: | |||||||||||
Interest expense | 1,475 | 97 | 177 | -121 | 1,628 | ||||||
Loss on extinguishment of debt | 388 | - | 71 | - | 459 | ||||||
Other expenses | 1,261 | 74 | 40,780 | -88 | 42,027 | ||||||
Total expenses | 3,124 | 171 | 41,028 | -209 | 44,114 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 4,164 | 2,622 | 9,530 | -9,098 | 7,218 | ||||||
Income tax expense (benefit) | -2,946 | -27 | 3,162 | -17 | 172 | ||||||
Income (loss) from continuing operations | 7,110 | 2,649 | 6,368 | -9,081 | 7,046 | ||||||
Income (loss) from discontinued operations, net of income taxes | -3 | - | 76 | - | 73 | ||||||
Net income (loss) | 7,107 | 2,649 | 6,444 | -9,081 | 7,119 | ||||||
Less: | |||||||||||
Net income from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | 12 | - | 12 | ||||||
Net income (loss) attributable to AIG | $ | 7,107 | $ | 2,649 | $ | 6,432 | $ | -9,081 | $ | 7,107 | |
* Eliminated in consolidation. | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Three Months Ended September 30, 2014 | |||||||||||
Net income (loss) | $ | 2,192 | $ | 1,265 | $ | 2,729 | $ | -3,985 | $ | 2,201 | |
Other comprehensive income (loss) | -180 | -259 | -1,885 | 2,143 | -181 | ||||||
Comprehensive income (loss) | 2,012 | 1,006 | 844 | -1,842 | 2,020 | ||||||
Total comprehensive income attributable to noncontrolling interests | - | - | 8 | - | 8 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 2,012 | $ | 1,006 | $ | 836 | $ | -1,842 | $ | 2,012 | |
Three Months Ended September 30, 2013 | |||||||||||
Net income (loss) | $ | 2,170 | $ | 1,350 | $ | 1,994 | $ | -3,384 | $ | 2,130 | |
Other comprehensive income (loss) | -530 | -299 | -498 | 795 | -532 | ||||||
Comprehensive income (loss) | 1,640 | 1,051 | 1,496 | -2,589 | 1,598 | ||||||
Total comprehensive loss attributable to noncontrolling interests | - | - | -42 | - | -42 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 1,640 | $ | 1,051 | $ | 1,538 | $ | -2,589 | $ | 1,640 | |
Nine Months Ended September 30, 2014 | |||||||||||
Net income (loss) | $ | 6,874 | $ | 2,684 | $ | 8,207 | $ | -10,916 | $ | 6,849 | |
Other comprehensive income (loss) | 4,971 | 2,522 | 1,848 | -4,371 | 4,970 | ||||||
Comprehensive income (loss) | 11,845 | 5,206 | 10,055 | -15,287 | 11,819 | ||||||
Total comprehensive loss attributable to noncontrolling interests | - | - | -26 | - | -26 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 11,845 | $ | 5,206 | $ | 10,081 | $ | -15,287 | $ | 11,845 | |
Nine Months Ended September 30, 2013 | |||||||||||
Net income (loss) | $ | 7,107 | $ | 2,649 | $ | 6,444 | $ | -9,081 | $ | 7,119 | |
Other comprehensive income (loss) | -6,065 | -4,289 | -6,125 | 10,391 | -6,088 | ||||||
Comprehensive income (loss) | 1,042 | -1,640 | 319 | 1,310 | 1,031 | ||||||
Total comprehensive loss attributable to noncontrolling interests | - | - | -11 | - | -11 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 1,042 | $ | -1,640 | $ | 330 | $ | 1,310 | $ | 1,042 | |
Condensed Consolidating Statements of Cash Flows | |||||||||||
American | Other | ||||||||||
International | Subsidiaries | ||||||||||
Group, Inc. | and | Consolidated | |||||||||
(in millions) | (As Guarantor) | AIGLH | Eliminations | AIG | |||||||
Nine Months Ended September 30, 2014 | |||||||||||
Net cash (used in) provided by operating activities | 7,228 | 4,333 | -7,204 | 4,357 | |||||||
Cash flows from investing activities: | |||||||||||
Sales of investments | 2,032 | - | 44,529 | 46,561 | |||||||
Purchase of investments | -1,257 | - | -41,824 | -43,081 | |||||||
Loans to subsidiaries - net | -1,687 | - | 1,687 | - | |||||||
Contributions to subsidiaries - net | 77 | - | -77 | - | |||||||
Net change in restricted cash | -5 | - | -655 | -660 | |||||||
Net change in short-term investments | 2,947 | - | -605 | 2,342 | |||||||
Other, net | -61 | - | -234 | -295 | |||||||
Net cash provided by investing activities | 2,046 | - | 2,821 | 4,867 | |||||||
Cash flows from financing activities: | |||||||||||
Issuance of long-term debt | 2,489 | - | 3,338 | 5,827 | |||||||
Repayments of long-term debt | -7,368 | -165 | -4,028 | -11,561 | |||||||
Purchase of Common Stock | -3,403 | - | - | -3,403 | |||||||
Intercompany loans - net | -47 | -279 | 326 | - | |||||||
Cash dividends paid | -539 | -3,931 | 3,931 | -539 | |||||||
Other, net | -324 | - | 399 | 75 | |||||||
Net cash (used in) provided by financing activities | -9,192 | -4,375 | 3,966 | -9,601 | |||||||
Effect of exchange rate changes on cash | - | - | -19 | -19 | |||||||
Change in cash | 82 | -42 | -436 | -396 | |||||||
Cash at beginning of year | 30 | 51 | 2,160 | 2,241 | |||||||
Reclassification to assets held for sale | - | - | 88 | 88 | |||||||
Cash at end of period | $ | 112 | $ | 9 | $ | 1,812 | $ | 1,933 | |||
Nine Months Ended September 30, 2013 | |||||||||||
Net cash (used in) provided by operating activities | 3,078 | 3,082 | -2,212 | 3,948 | |||||||
Cash flows from investing activities: | |||||||||||
Sales of investments | 1,065 | - | 57,809 | 58,874 | |||||||
Purchase of investments | -4,981 | - | -55,861 | -60,842 | |||||||
Loans to subsidiaries - net | 3,491 | - | -3,491 | - | |||||||
Contributions to subsidiaries - net | -240 | -1 | 241 | - | |||||||
Net change in restricted cash | 428 | - | 823 | 1,251 | |||||||
Net change in short-term investments | 2,552 | - | 5,562 | 8,114 | |||||||
Other, net | 194 | - | -1,073 | -879 | |||||||
Net cash (used in) provided by investing activities | 2,509 | -1 | 4,010 | 6,518 | |||||||
Cash flows from financing activities: | |||||||||||
Issuance of long-term debt | 1,020 | - | 2,613 | 3,633 | |||||||
Repayments of long-term debt | -5,866 | -245 | -5,244 | -11,355 | |||||||
Intercompany loans - net | -89 | -205 | 294 | - | |||||||
Purchase of common stock | -192 | - | - | -192 | |||||||
Cash dividends paid to shareholders | -147 | -2,699 | 2,699 | -147 | |||||||
Other, net | -332 | - | -1,079 | -1,411 | |||||||
Net cash (used in) financing activities | -5,606 | -3,149 | -717 | -9,472 | |||||||
Effect of exchange rate changes on cash | - | - | -79 | -79 | |||||||
Change in cash | -19 | -68 | 1,002 | 915 | |||||||
Cash at beginning of year | 81 | 73 | 997 | 1,151 | |||||||
Change in cash of businesses held for sale | - | - | -8 | -8 | |||||||
Cash at end of period | $ | 62 | $ | 5 | $ | 1,991 | $ | 2,058 | |||
Supplementary Disclosure of Condensed Consolidating Cash Flow Information | |||||||||||
American | Other | ||||||||||
International | Subsidiaries | ||||||||||
Group, Inc. | and | Consolidated | |||||||||
(in millions) | (As Guarantor) | AIGLH | Eliminations | AIG | |||||||
Cash (paid) received during the 2014 period for: | |||||||||||
Interest: | |||||||||||
Third party | $ | -1,238 | $ | -87 | $ | -1,171 | $ | -2,496 | |||
Intercompany | -1 | -7 | 8 | - | |||||||
Taxes: | |||||||||||
Income tax authorities | $ | -18 | $ | - | $ | -596 | $ | -614 | |||
Intercompany | 1,348 | - | -1,348 | - | |||||||
Cash (paid) received during the 2013 period for: | |||||||||||
Interest: | |||||||||||
Third party | $ | -1,473 | $ | -98 | $ | -1,380 | $ | -2,951 | |||
Intercompany | -9 | -21 | 30 | - | |||||||
Taxes: | |||||||||||
Income tax authorities | $ | -160 | $ | - | $ | -218 | $ | -378 | |||
Intercompany | 1,116 | -78 | -1,038 | - | |||||||
American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities: | |||||||||||
Nine Months Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | |||||||||
Intercompany non-cash financing and investing activities: | |||||||||||
Capital contributions | |||||||||||
to subsidiaries through forgiveness of loans | $ | 993 | $ | 341 | |||||||
Other capital contributions - net | - | 523 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2014 | |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | ' |
17. SUBSEQUENT EVENTS | |
Debt Redemptions and Repurchases | |
On October 27, 2014, we further reduced DIB debt through a redemption of approximately $2.0 billion aggregate principal amount of its 8.250% Notes due 2018 using cash allocated to the DIB. | |
In addition, since September 30, 2014, we repurchased approximately $2.0 billion aggregate principal amount of debt, including (i) approximately $1.6 billion aggregate principal amount of 8.175% Series A-6 Junior Subordinated Debentures and (ii) approximately $405 million aggregate principal amount of 5.450% Medium-Term Notes, Series MP, Matched Investment Program Due May 18, 2017, which were part of the DIB and were repaid using cash allocated to the DIB. | |
We paid an aggregate purchase price of approximately $5.1 billion in connection with our redemptions and repurchases of debt since September 30, 2014. | |
Debt Offering | |
On October 15, 2014, we issued an additional $750 million aggregate principal amount of 4.500% Notes due 2044. | |
Dividends Declared and Increase in Share Repurchase Authorization | |
On November 3, 2014, our Board of Directors declared a cash dividend on AIG Common Stock of $0.125 per share, payable on December 18, 2014 to shareholders of record on December 4, 2014. The payment of any future dividends will be at the discretion of our Board of Directors and will depend on various factors, including the regulatory framework applicable to us. | |
On October 31, 2014, our Board of Directors increased the aggregate purchase amount authorized under AIG’s August 1, 2013 AIG Common Stock share repurchase authorization by an additional $1.5 billion, resulting in an aggregate remaining authorization of approximately $1.5 billion. | |
See Note 11 for further discussion. | |
Legal Settlements | |
On October 22, 2014, we made a cash payment of $960 million, which is being held in escrow pending final approval of the settlement of the Consolidated 2008 Securities Class Action. See Note 10 for further discussion. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
BASIS OF PRESENTATION | ' |
Sale of ILFC | ' |
Sale of ILFC | |
On May 14, 2014, we completed the sale of 100 percent of the common stock of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. (AerCap), in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares (the AerCap Transaction). The total value of the consideration was based in part on AerCap’s closing price per share of $47.01 on May 13, 2014. ILFC’s results of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Condensed Consolidated Statements of Income through the date of the completion of the sale. ILFC’s assets and liabilities were classified as held-for-sale at December 31, 2013 in the Condensed Consolidated Balance Sheets. See Note 4 herein for further discussion. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: | |
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; | |
liability for unpaid claims and claims adjustment expense; | |
reinsurance assets; | |
valuation of future policy benefit liabilities and timing and extent of loss recognition; | |
valuation of liabilities for guaranteed benefit features of variable annuity products; | |
estimated gross profits to value deferred acquisition costs for investment-oriented products; | |
impairment charges, including other-than-temporary impairments on available for sale securities, impairments on investments in life settlements and goodwill impairment; | |
liability for legal contingencies; and | |
fair value measurements of certain financial assets and liabilities. | |
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_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle | ' |
Future Application of Accounting Standards | ' |
Future Application of Accounting Standards | |
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | |
In January 2014, the FASB issued an accounting standard that clarifies that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, so that the loan is derecognized and the real estate property is recognized, when either (i) the creditor obtains legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveys all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2014. Early adoption is permitted. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Reporting Discontinued Operations | ' |
Reporting Discontinued Operations | |
In April 2014, the FASB issued an accounting standard that changes the requirements for presenting a component or group of components of an entity as a discontinued operation and requires new disclosures. Under the standard, the disposal of a component or group of components of an entity should be reported as a discontinued operation if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Disposals of equity method investments, or those reported as held-for-sale, must be presented as a discontinued operation if they meet the new definition. The standard also requires entities to provide disclosures about the disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation. | |
The standard is effective prospectively for all disposals of components (or classification of components as held-for-sale) of an entity that occur within interim and annual periods beginning on or after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications of components as held-for-sale) that have not been reported in financial statements previously issued. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Revenue Recognition | ' |
Revenue Recognition | |
In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and other agreements that are governed under other GAAP guidance, but affects the revenue recognition for certain of our other activities. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2016 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is not permitted. We plan to adopt the standard on its required effective date of January 1, 2017 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. | |
Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | ' |
Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | |
In June 2014, the FASB issued an accounting standard that changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The standard aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements such that they all will be accounted for as secured borrowings. The standard eliminates sale accounting for repurchase-to-maturity transactions and supersedes the standard under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. | |
The accounting guidance and new disclosure requirements for certain transactions accounted for as sales are effective for interim and annual reporting periods beginning after December 15, 2014, while the disclosure requirements for transactions accounted for as secured borrowings are effective for annual reporting periods beginning after December 15, 2014 and for interim reporting periods beginning after March 15, 2015. Early adoption is not permitted. We plan to adopt the standard on its required effective dates and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Accounting for Share-Based Payments with Performance Targets | ' |
Accounting for Share-Based Payments with Performance Targets | |
In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We plan to adopt the standard on its required effective date of January 1, 2016 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity | ' |
Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity | |
In August 2014, the FASB issued an accounting standard that allows a reporting entity to measure the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity using the fair value of either its financial assets or financial liabilities, whichever is more observable. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied retrospectively to all relevant prior periods presented starting with January 1, 2010 or through a cumulative effect adjustment to retained earnings at the date of adoption. We plan to adopt the standard on its required effective date of January 1, 2016 and are assessing the impact of the standard on our consolidated financial condition, results of operations or cash flows. | |
2014 | ' |
New Accounting Pronouncements or Change in Accounting Principle | ' |
Accounting Standards Adopted | ' |
Accounting Standards Adopted During 2014 | |
Certain Obligations Resulting from Joint and Several Liability Arrangements | |
In February 2013, the Financial Accounting Standards Board (FASB) issued an accounting standard that requires us to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the sum of (i) the amount we agreed to pay on the basis of our arrangement among our co-obligors and (ii) any additional amount we expect to pay on behalf of our co-obligors. | |
We adopted the standard on its required effective date of January 1, 2014. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of an Investment within a Foreign Entity or of an Investment in a Foreign Entity | |
In March 2013, the FASB issued an accounting standard addressing whether consolidation guidance or foreign currency guidance applies to the release of the cumulative translation adjustment into net income when a parent sells all or a part of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or net assets that are a business (other than a sale of in-substance real estate) within a foreign entity. The standard also resolves the diversity in practice for the cumulative translation adjustment treatment in business combinations achieved in stages involving foreign entities. | |
Under the standard, the entire amount of the cumulative translation adjustment associated with the foreign entity should be released into earnings when there has been: (i) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents a complete or substantially complete liquidation of the foreign entity in which the subsidiary or the net assets had resided; (ii) a loss of a controlling financial interest in an investment in a foreign entity; or (iii) a change in accounting method from applying the equity method to an investment in a foreign entity to consolidating the foreign entity. | |
We adopted the standard on its required effective date of January 1, 2014 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Investment Company Guidance | |
In June 2013, the FASB issued an accounting standard that amends the criteria a company must meet to qualify as an investment company, clarifies the measurement guidance, and requires new disclosures for investment companies. An entity that is regulated by the Securities and Exchange Commission under the Investment Company Act of 1940 (the 1940 Act) qualifies as an investment company. Entities that are not regulated under the 1940 Act must have certain fundamental characteristics and must consider other characteristics to determine whether they qualify as investment companies. An entity’s purpose and design must be considered when making the assessment. | |
An entity that no longer meets the requirements to be an investment company as a result of this standard should present the change in its status as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. An entity that is an investment company should apply the standard prospectively as an adjustment to opening net assets as of the | |
effective date. The adjustment to net assets represents both the difference between the fair value and the carrying amount of the entity’s investments and any amount previously recognized in Accumulated other comprehensive income. | |
We adopted the standard on its required effective date of January 1, 2014 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Presentation of Unrecognized Tax Benefits | |
In July 2013, the FASB issued an accounting standard that requires a liability related to unrecognized tax benefits to be presented as a reduction to the related deferred tax asset for a net operating loss carryforward or a tax credit carryforward. When the carryforwards are not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the applicable jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with the related deferred tax asset. | |
We adopted the standard on its required effective date of January 1, 2014 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
SEGMENT INFORMATION | ' | |||||||||||
Schedule of operations by reportable segment | ' | |||||||||||
2014 | 2013 | |||||||||||
Three Months Ended September 30, | Pre-tax Income (Loss) | Pre-tax Income (Loss) | ||||||||||
(in millions) | Total Revenues | from continuing operations | Total Revenues | from continuing operations | ||||||||
AIG Property Casualty | ||||||||||||
Commercial Insurance | $ | 5,971 | $ | 573 | $ | 5,760 | $ | 610 | ||||
Consumer Insurance | 3,362 | 131 | 3,359 | 93 | ||||||||
Other | 674 | 503 | 585 | 423 | ||||||||
Total AIG Property Casualty | 10,007 | 1,207 | 9,704 | 1,126 | ||||||||
AIG Life and Retirement | ||||||||||||
Retail | 3,318 | 1,160 | 2,884 | 941 | ||||||||
Institutional | 1,756 | 771 | 1,760 | 300 | ||||||||
Total AIG Life and Retirement | 5,074 | 1,931 | 4,644 | 1,241 | ||||||||
Other Operations | ||||||||||||
Mortgage Guaranty | 262 | 135 | 236 | 43 | ||||||||
Global Capital Markets | 72 | 58 | 87 | 29 | ||||||||
Direct Investment book | 430 | 228 | 147 | 52 | ||||||||
Corporate & Other | 978 | -676 | 217 | -1,347 | ||||||||
Aircraft Leasing | - | - | 1,118 | -1 | ||||||||
Consolidation and elimination | -9 | -1 | -9 | 1 | ||||||||
Total Other Operations | 1,733 | -256 | 1,796 | -1,223 | ||||||||
AIG Consolidation and elimination | -160 | 137 | -200 | 34 | ||||||||
Total AIG Consolidated | $ | 16,654 | $ | 3,019 | $ | 15,944 | $ | 1,178 | ||||
2014 | 2013 | |||||||||||
Nine Months Ended September 30, | Pre-tax Income (Loss) | Pre-tax Income (Loss) | ||||||||||
(in millions) | Total Revenues | from continuing operations | Total Revenues | from continuing operations | ||||||||
AIG Property Casualty | ||||||||||||
Commercial Insurance | $ | 17,502 | $ | 2,149 | $ | 17,229 | $ | 2,186 | ||||
Consumer Insurance | 9,962 | 315 | 10,212 | 337 | ||||||||
Other | 2,159 | 1,542 | 2,032 | 1,422 | ||||||||
Total AIG Property Casualty | 29,623 | 4,006 | 29,473 | 3,945 | ||||||||
AIG Life and Retirement | ||||||||||||
Retail | 9,056 | 2,563 | 9,326 | 3,114 | ||||||||
Institutional | 4,939 | 1,849 | 6,106 | 1,416 | ||||||||
Total AIG Life and Retirement | 13,995 | 4,412 | 15,432 | 4,530 | ||||||||
Other Operations | ||||||||||||
Mortgage Guaranty | 771 | 423 | 710 | 162 | ||||||||
Global Capital Markets | 417 | 332 | 592 | 431 | ||||||||
Direct Investment book | 1,260 | 855 | 1,373 | 1,084 | ||||||||
Corporate & Other | 1,771 | -544 | 1,123 | -3,093 | ||||||||
Aircraft Leasing | 1,602 | 17 | 3,303 | 60 | ||||||||
Consolidation and elimination | -24 | 1 | -28 | 3 | ||||||||
Total Other Operations | 5,797 | 1,084 | 7,073 | -1,353 | ||||||||
AIG Consolidation and elimination | -544 | 270 | -646 | 96 | ||||||||
Total AIG Consolidated | $ | 48,871 | $ | 9,772 | $ | 51,332 | $ | 7,218 |
HELDFORSALE_CLASSIFICATION_AND1
HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Held-for-Sale Classification and Discontinued Operations | ' | ||||||||
Summary of assets and liabilities held for sale | ' | ||||||||
December 31, | |||||||||
(in millions) | 2013 | ||||||||
Assets: | |||||||||
Equity securities | $ | 3 | |||||||
Mortgage and other loans receivable, net | 229 | ||||||||
Flight equipment primarily under operating leases, net of accumulated depreciation | 35,508 | ||||||||
Short-term investments | 658 | ||||||||
Cash | 88 | ||||||||
Premiums and other receivables, net of allowance | 318 | ||||||||
Other assets | 2,066 | ||||||||
Assets held-for-sale | 38,870 | ||||||||
Less: Loss accrual | -9,334 | ||||||||
Total assets held-for-sale | $ | 29,536 | |||||||
Liabilities: | |||||||||
Other liabilities | $ | 3,127 | |||||||
Long-term debt | 21,421 | ||||||||
Total liabilities held-for-sale | $ | 24,548 | |||||||
Discontinued operations | ' | ||||||||
Held-for-Sale Classification and Discontinued Operations | ' | ||||||||
Summary of income (loss) from discontinued operations | ' | ||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | ||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||
Revenues: | |||||||||
Gain (loss) on sale | $ | 5 | $ | -27 | $ | 56 | $ | 119 | |
Income (loss) from discontinued operations, before income tax | |||||||||
(benefit) expense | 5 | -27 | 56 | 119 | |||||
Income tax (benefit) expense | 3 | -9 | 71 | 46 | |||||
Income (loss) from discontinued operations, net of income tax | $ | 2 | $ | -18 | $ | -15 | $ | 73 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||
31-Dec-13 | 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 | $ | 133 | $ | 3,062 | $ | - | $ | - | $ | - | $ | 3,195 | |||||||
Obligations of states, municipalities and political subdivisions | - | 28,300 | 1,080 | - | - | 29,380 | |||||||||||||
Non-U.S. governments | 508 | 21,985 | 16 | - | - | 22,509 | |||||||||||||
Corporate debt | - | 143,297 | 1,255 | - | - | 144,552 | |||||||||||||
RMBS | - | 21,207 | 14,941 | - | - | 36,148 | |||||||||||||
CMBS | - | 5,747 | 5,735 | - | - | 11,482 | |||||||||||||
CDO/ABS | - | 4,034 | 6,974 | - | - | 11,008 | |||||||||||||
Total bonds available for sale | 641 | 227,632 | 30,001 | - | - | 258,274 | |||||||||||||
Other bond securities: | |||||||||||||||||||
U.S. government and government sponsored entities | 78 | 5,645 | - | - | - | 5,723 | |||||||||||||
Obligations of states, municipalities and political subdivisions | - | 121 | - | - | - | 121 | |||||||||||||
Non-U.S. governments | - | 2 | - | - | - | 2 | |||||||||||||
Corporate debt | - | 1,169 | - | - | - | 1,169 | |||||||||||||
RMBS | - | 1,326 | 937 | - | - | 2,263 | |||||||||||||
CMBS | - | 509 | 844 | - | - | 1,353 | |||||||||||||
CDO/ABS | - | 3,158 | 8,834 | - | - | 11,992 | |||||||||||||
Total other bond securities | 78 | 11,930 | 10,615 | - | - | 22,623 | |||||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | 3,218 | - | 1 | - | - | 3,219 | |||||||||||||
Preferred stock | - | 27 | - | - | - | 27 | |||||||||||||
Mutual funds | 408 | 2 | - | - | - | 410 | |||||||||||||
Total equity securities available for sale | 3,626 | 29 | 1 | - | - | 3,656 | |||||||||||||
Other equity securities | 750 | 84 | - | - | - | 834 | |||||||||||||
Mortgage and other loans receivable | - | - | - | - | - | - | |||||||||||||
Other invested assets | 1 | 2,667 | 5,930 | - | - | 8,598 | |||||||||||||
Derivative assets: | |||||||||||||||||||
Interest rate contracts | 14 | 3,716 | 41 | - | - | 3,771 | |||||||||||||
Foreign exchange contracts | - | 52 | - | - | - | 52 | |||||||||||||
Equity contracts | 151 | 106 | 49 | - | - | 306 | |||||||||||||
Commodity contracts | - | - | 1 | - | - | 1 | |||||||||||||
Credit contracts | - | - | 55 | - | - | 55 | |||||||||||||
Other contracts | - | 1 | 33 | - | - | 34 | |||||||||||||
Counterparty netting and cash collateral | - | - | - | -1,734 | -820 | -2,554 | |||||||||||||
Total derivative assets | 165 | 3,875 | 179 | -1,734 | -820 | 1,665 | |||||||||||||
Short-term investments | 332 | 5,981 | - | - | - | 6,313 | |||||||||||||
Separate account assets | 67,708 | 3,351 | - | - | - | 71,059 | |||||||||||||
Other assets | - | 418 | - | - | - | 418 | |||||||||||||
Total | $ | 73,301 | $ | 255,967 | $ | 46,726 | $ | -1,734 | $ | -820 | $ | 373,440 | |||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | 72 | $ | 312 | $ | - | $ | - | $ | 384 | |||||||
Other policyholder funds | - | - | - | - | - | - | |||||||||||||
Derivative liabilities: | |||||||||||||||||||
Interest rate contracts | - | 3,661 | 141 | - | - | 3,802 | |||||||||||||
Foreign exchange contracts | - | 319 | - | - | - | 319 | |||||||||||||
Equity contracts | - | 101 | - | - | - | 101 | |||||||||||||
Commodity contracts | - | 5 | - | - | - | 5 | |||||||||||||
Credit contracts | - | - | 1,335 | - | - | 1,335 | |||||||||||||
Other contracts | - | 25 | 142 | - | - | 167 | |||||||||||||
Counterparty netting and cash collateral | - | - | - | -1,734 | -1,484 | -3,218 | |||||||||||||
Total derivative liabilities | - | 4,111 | 1,618 | -1,734 | -1,484 | 2,511 | |||||||||||||
Long-term debt | - | 6,377 | 370 | - | - | 6,747 | |||||||||||||
Other liabilities | 42 | 891 | - | - | - | 933 | |||||||||||||
Total | $ | 42 | $ | 11,451 | $ | 2,300 | $ | -1,734 | $ | -1,484 | $ | 10,575 | |||||||
(a) Represents netting of derivative exposures covered by a qualifying master netting agreement. | |||||||||||||||||||
(b) Effective April 1, 2014, we reclassified cross-currency swaps from Interest rate contracts to Foreign exchange contracts. This change was applied prospectively. | |||||||||||||||||||
30-Sep-14 | 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 | $ | 15 | $ | 2,783 | $ | - | $ | - | $ | - | $ | 2,798 | |||||||
Obligations of states, municipalities and political subdivisions | - | 26,158 | 2,014 | - | - | 28,172 | |||||||||||||
Non-U.S. governments | 772 | 21,867 | 23 | - | - | 22,662 | |||||||||||||
Corporate debt | - | 146,319 | 2,009 | - | - | 148,328 | |||||||||||||
RMBS | - | 21,786 | 16,918 | - | - | 38,704 | |||||||||||||
CMBS | - | 6,626 | 5,916 | - | - | 12,542 | |||||||||||||
CDO/ABS | - | 4,423 | 8,157 | - | - | 12,580 | |||||||||||||
Total bonds available for sale | 787 | 229,962 | 35,037 | - | - | 265,786 | |||||||||||||
Other bond securities: | |||||||||||||||||||
U.S. government and government sponsored entities | 128 | 5,130 | - | - | - | 5,258 | |||||||||||||
Obligations of states, municipalities and political subdivisions | - | 122 | - | - | - | 122 | |||||||||||||
Non-U.S. governments | - | 2 | - | - | - | 2 | |||||||||||||
Corporate debt | - | 948 | - | - | - | 948 | |||||||||||||
RMBS | - | 1,143 | 1,023 | - | - | 2,166 | |||||||||||||
CMBS | - | 507 | 713 | - | - | 1,220 | |||||||||||||
CDO/ABS | - | 2,596 | 8,069 | - | - | 10,665 | |||||||||||||
Total other bond securities | 128 | 10,448 | 9,805 | - | - | 20,381 | |||||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | 3,570 | 2 | - | - | - | 3,572 | |||||||||||||
Preferred stock | - | 29 | - | - | - | 29 | |||||||||||||
Mutual funds | 740 | 2 | 1 | - | - | 743 | |||||||||||||
Total equity securities available for sale | 4,310 | 33 | 1 | - | - | 4,344 | |||||||||||||
Other equity securities | 701 | 65 | - | - | - | 766 | |||||||||||||
Mortgage and other loans receivable | - | - | 6 | - | - | 6 | |||||||||||||
Other invested assets | 25 | 3,211 | 5,809 | - | - | 9,045 | |||||||||||||
Derivative assets: | |||||||||||||||||||
Interest rate contracts(b) | 7 | 2,805 | 11 | - | - | 2,823 | |||||||||||||
Foreign exchange contracts(b) | - | 1,061 | 3 | - | - | 1,064 | |||||||||||||
Equity contracts | 107 | 65 | 49 | - | - | 221 | |||||||||||||
Commodity contracts | - | - | - | - | - | - | |||||||||||||
Credit contracts | - | - | 20 | - | - | 20 | |||||||||||||
Other contracts | - | - | 34 | - | - | 34 | |||||||||||||
Counterparty netting and cash collateral | - | - | - | -1,769 | -805 | -2,574 | |||||||||||||
Total derivative assets | 114 | 3,931 | 117 | -1,769 | -805 | 1,588 | |||||||||||||
Short-term investments | 560 | 3,631 | - | - | - | 4,191 | |||||||||||||
Separate account assets | 72,592 | 5,218 | - | - | - | 77,810 | |||||||||||||
Other assets | - | - | - | - | - | - | |||||||||||||
Total | $ | 79,217 | $ | 256,499 | $ | 50,775 | $ | -1,769 | $ | -805 | $ | 383,917 | |||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | 53 | $ | 991 | $ | - | $ | - | $ | 1,044 | |||||||
Other policyholder funds | - | 8 | - | - | - | 8 | |||||||||||||
Derivative liabilities: | |||||||||||||||||||
Interest rate contracts(b) | - | 2,649 | 82 | - | - | 2,731 | |||||||||||||
Foreign exchange contracts(b) | - | 1,493 | 10 | - | - | 1,503 | |||||||||||||
Equity contracts | - | 88 | 3 | - | - | 91 | |||||||||||||
Commodity contracts | - | 5 | - | - | - | 5 | |||||||||||||
Credit contracts | - | - | 1,038 | - | - | 1,038 | |||||||||||||
Other contracts | - | - | 89 | - | - | 89 | |||||||||||||
Counterparty netting and cash collateral | - | - | - | -1,769 | -1,186 | -2,955 | |||||||||||||
Total derivative liabilities | - | 4,235 | 1,222 | -1,769 | -1,186 | 2,502 | |||||||||||||
Long-term debt | - | 5,370 | 297 | - | - | 5,667 | |||||||||||||
Other liabilities | 70 | 332 | - | - | - | 402 | |||||||||||||
Total | $ | 70 | $ | 9,998 | $ | 2,510 | $ | -1,769 | $ | -1,186 | $ | 9,623 | |||||||
Changes in Level 3 recurring fair value measurements | ' | ||||||||||||||||||
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||||
(in millions) | of Period(a) | in Income | Income (Loss) | Settlements, Net | in | out | of Period | at End of Period | |||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||||
and political subdivisions | $ | 1,991 | $ | -1 | $ | -11 | $ | 43 | $ | - | $ | -8 | $ | 2,014 | $ | - | |||
Non-U.S. governments | 25 | - | - | 1 | - | -3 | 23 | - | |||||||||||
Corporate debt | 2,196 | 2 | -22 | -73 | 3 | -97 | 2,009 | - | |||||||||||
RMBS | 16,328 | 264 | -49 | 375 | - | - | 16,918 | - | |||||||||||
CMBS | 5,917 | 27 | -39 | 14 | - | -3 | 5,916 | - | |||||||||||
CDO/ABS | 7,431 | 18 | -2 | 692 | 53 | -35 | 8,157 | - | |||||||||||
Total bonds available for sale | 33,888 | 310 | -123 | 1,052 | 56 | -146 | 35,037 | - | |||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 1,062 | - | - | -39 | - | - | 1,023 | -9 | |||||||||||
CMBS | 757 | -24 | - | -20 | - | - | 713 | -21 | |||||||||||
CDO/ABS | 8,397 | 257 | - | -451 | - | -134 | 8,069 | 76 | |||||||||||
Total other bond securities | 10,216 | 233 | - | -510 | - | -134 | 9,805 | 46 | |||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | - | - | 1 | - | - | -1 | - | - | |||||||||||
Preferred stock | - | - | - | - | - | - | - | - | |||||||||||
Mutual funds | - | - | - | - | 1 | - | 1 | - | |||||||||||
Total equity securities available for sale | - | - | 1 | - | 1 | -1 | 1 | - | |||||||||||
Mortgage and other loans receivable | 6 | - | - | - | - | - | 6 | - | |||||||||||
Other invested assets | 5,824 | -7 | 90 | 65 | 83 | -246 | 5,809 | - | |||||||||||
Total | $ | 49,934 | $ | 536 | $ | -32 | $ | 607 | $ | 140 | $ | -527 | $ | 50,658 | $ | 46 | |||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | -842 | $ | -155 | $ | 8 | $ | -2 | $ | - | $ | - | $ | -991 | $ | -21 | |||
Derivative liabilities, net: | |||||||||||||||||||
Interest rate contracts | -67 | -3 | - | 1 | - | -2 | -71 | -3 | |||||||||||
Foreign exchange contracts | -9 | - | - | 2 | - | - | -7 | - | |||||||||||
Equity contracts | 91 | 6 | - | 2 | - | -53 | 46 | - | |||||||||||
Commodity contracts | 1 | -1 | - | - | - | - | - | - | |||||||||||
Credit contracts | -1,085 | 75 | - | -8 | - | - | -1,018 | 65 | |||||||||||
Other contracts | -53 | 14 | 4 | -20 | - | - | -55 | 17 | |||||||||||
Total derivative liabilities, net | -1,122 | 91 | 4 | -23 | - | -55 | -1,105 | 79 | |||||||||||
Long-term debt(c) | -394 | 21 | - | 1 | - | 75 | -297 | 16 | |||||||||||
Total | $ | -2,358 | $ | -43 | $ | 12 | $ | -24 | $ | - | $ | 20 | $ | -2,393 | $ | 74 | |||
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||||
(in millions) | of Period(a) | in Income | Income (Loss) | Settlements, Net | in | out | of Period | at End of Period | |||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||||
and political subdivisions(b) | $ | 1,080 | $ | -1 | $ | 180 | $ | 896 | $ | - | $ | -141 | $ | 2,014 | $ | - | |||
Non-U.S. governments | 16 | - | -1 | 7 | 4 | -3 | 23 | - | |||||||||||
Corporate debt | 1,255 | 8 | 31 | -140 | 1,358 | -503 | 2,009 | - | |||||||||||
RMBS | 14,941 | 759 | 211 | 999 | 119 | -111 | 16,918 | - | |||||||||||
CMBS | 5,735 | 50 | 201 | -43 | 69 | -96 | 5,916 | - | |||||||||||
CDO/ABS | 6,974 | 70 | 1 | 1,426 | 222 | -536 | 8,157 | - | |||||||||||
Total bonds available for sale | 30,001 | 886 | 623 | 3,145 | 1,772 | -1,390 | 35,037 | - | |||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 937 | 51 | - | 33 | 2 | - | 1,023 | 9 | |||||||||||
CMBS | 844 | 14 | - | -151 | 6 | - | 713 | 11 | |||||||||||
CDO/ABS | 8,834 | 926 | - | -1,338 | 1 | -354 | 8,069 | 341 | |||||||||||
Total other bond securities | 10,615 | 991 | - | -1,456 | 9 | -354 | 9,805 | 361 | |||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | 1 | - | 1 | - | - | -2 | - | - | |||||||||||
Preferred stock | - | - | - | - | - | - | - | - | |||||||||||
Mutual funds | - | - | - | - | 1 | - | 1 | - | |||||||||||
Total equity securities available for sale | 1 | - | 1 | - | 1 | -2 | 1 | - | |||||||||||
Mortgage and other loans receivable | - | - | - | 6 | - | - | 6 | - | |||||||||||
Other invested assets | 5,930 | 80 | 139 | 99 | 168 | -607 | 5,809 | - | |||||||||||
Total | $ | 46,547 | $ | 1,957 | $ | 763 | $ | 1,794 | $ | 1,950 | $ | -2,353 | $ | 50,658 | $ | 361 | |||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | -312 | $ | -687 | $ | -16 | $ | 24 | $ | - | $ | - | $ | -991 | $ | -140 | |||
Derivative liabilities, net: | |||||||||||||||||||
Interest rate contracts | -100 | -2 | - | 33 | - | -2 | -71 | - | |||||||||||
Foreign exchange contracts | - | 3 | - | -10 | - | - | -7 | 4 | |||||||||||
Equity contracts | 49 | 14 | - | -12 | 48 | -53 | 46 | 6 | |||||||||||
Commodity contracts | 1 | - | - | - | - | -1 | - | - | |||||||||||
Credit contracts | -1,280 | 229 | - | 33 | - | - | -1,018 | 229 | |||||||||||
Other contracts | -109 | 49 | 51 | -46 | - | - | -55 | 37 | |||||||||||
Total derivative liabilities, net | -1,439 | 293 | 51 | -2 | 48 | -56 | -1,105 | 276 | |||||||||||
Long-term debt(c) | -370 | 13 | - | 34 | -70 | 96 | -297 | 15 | |||||||||||
Total | $ | -2,121 | $ | -381 | $ | 35 | $ | 56 | $ | -22 | $ | 40 | $ | -2,393 | $ | 151 | |||
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||||
(in millions) | of Period(a) | in Income | Income (Loss) | Settlements, Net | In | Out | of Period | at End of Period | |||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||||
and political subdivisions | $ | 945 | $ | 4 | $ | -28 | $ | 160 | $ | - | $ | -27 | $ | 1,054 | $ | - | |||
Non-U.S. governments | 20 | - | - | 1 | - | - | 21 | - | |||||||||||
Corporate debt | 1,634 | -3 | 5 | - | 39 | -233 | 1,442 | - | |||||||||||
RMBS | 13,694 | 216 | -60 | 127 | 167 | -58 | 14,086 | - | |||||||||||
CMBS | 5,455 | 4 | 55 | 102 | - | - | 5,616 | - | |||||||||||
CDO/ABS | 6,142 | 37 | -47 | 363 | 289 | -133 | 6,651 | - | |||||||||||
Total bonds available for sale | 27,890 | 258 | -75 | 753 | 495 | -451 | 28,870 | - | |||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 782 | 14 | - | -8 | 27 | - | 815 | 13 | |||||||||||
CMBS | 820 | 33 | - | -53 | 31 | - | 831 | 29 | |||||||||||
CDO/ABS | 8,972 | 243 | - | -557 | 223 | - | 8,881 | 217 | |||||||||||
Total other bond securities | 10,574 | 290 | - | -618 | 281 | - | 10,527 | 259 | |||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | 76 | - | -1 | -48 | - | - | 27 | - | |||||||||||
Preferred stock | 48 | - | - | - | - | - | 48 | - | |||||||||||
Total equity securities available for sale | 124 | - | -1 | -48 | - | - | 75 | - | |||||||||||
Other invested assets | 5,639 | -25 | 78 | 55 | 1 | - | 5,748 | - | |||||||||||
Total | $ | 44,227 | $ | 523 | $ | 2 | $ | 142 | $ | 777 | $ | -451 | $ | 45,220 | $ | 259 | |||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | -586 | $ | 250 | $ | - | $ | -51 | $ | - | $ | - | $ | -387 | $ | 218 | |||
Derivative liabilities, net: | |||||||||||||||||||
Interest rate contracts | 779 | 6 | - | -912 | - | - | -127 | 3 | |||||||||||
Equity contracts | 70 | 12 | - | -1 | 1 | - | 82 | 10 | |||||||||||
Commodity contracts | 1 | - | - | - | - | - | 1 | - | |||||||||||
Credit contracts | -1,594 | 52 | - | 36 | - | - | -1,506 | 91 | |||||||||||
Other contracts | -105 | 16 | -25 | -16 | -1 | - | -131 | 8 | |||||||||||
Total derivatives liabilities, net | -849 | 86 | -25 | -893 | - | - | -1,681 | 112 | |||||||||||
Long-term debt(c) | -419 | -25 | - | 1 | - | - | -443 | -19 | |||||||||||
Total | $ | -1,854 | $ | 311 | $ | -25 | $ | -943 | $ | - | $ | - | $ | -2,511 | $ | 311 | |||
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||||
(in millions) | of Period(a) | in Income | Income (Loss) | Settlements, Net | In | Out | of Period | at End of Period | |||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||||
and political subdivisions | $ | 1,024 | $ | 29 | $ | -178 | $ | 365 | $ | - | $ | -186 | $ | 1,054 | $ | - | |||
Non-U.S. governments | 14 | - | - | 7 | 1 | -1 | 21 | - | |||||||||||
Corporate debt | 1,487 | -7 | -9 | 30 | 371 | -430 | 1,442 | - | |||||||||||
RMBS | 11,662 | 624 | 279 | 1,393 | 186 | -58 | 14,086 | - | |||||||||||
CMBS | 5,124 | 15 | 75 | 290 | 161 | -49 | 5,616 | - | |||||||||||
CDO/ABS | 4,841 | 134 | -47 | 1,383 | 668 | -328 | 6,651 | - | |||||||||||
Total bonds available for sale | 24,152 | 795 | 120 | 3,468 | 1,387 | -1,052 | 28,870 | - | |||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 396 | 24 | - | 130 | 265 | - | 815 | -27 | |||||||||||
CMBS | 812 | 44 | - | -193 | 282 | -114 | 831 | -13 | |||||||||||
CDO/ABS | 8,536 | 1,096 | - | -1,566 | 843 | -28 | 8,881 | 434 | |||||||||||
Total other bond securities | 9,744 | 1,164 | - | -1,629 | 1,390 | -142 | 10,527 | 394 | |||||||||||
Equity securities available for sale: | |||||||||||||||||||
Common stock | 24 | - | 4 | -1 | - | - | 27 | - | |||||||||||
Preferred stock | 44 | - | 4 | - | - | - | 48 | - | |||||||||||
Total equity securities available for sale | 68 | - | 8 | -1 | - | - | 75 | - | |||||||||||
Other invested assets | 5,389 | 144 | 88 | 95 | 345 | -313 | 5,748 | - | |||||||||||
Total | $ | 39,353 | $ | 2,103 | $ | 216 | $ | 1,933 | $ | 3,122 | $ | -1,507 | $ | 45,220 | $ | 394 | |||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | -1,257 | $ | 865 | $ | - | $ | 5 | $ | - | $ | - | $ | -387 | $ | 825 | |||
Derivative liabilities, net: | |||||||||||||||||||
Interest rate contracts | 732 | 20 | - | -879 | - | - | -127 | 33 | |||||||||||
Equity contracts | 47 | 49 | - | -14 | - | - | 82 | 40 | |||||||||||
Commodity contracts | 1 | - | - | -1 | - | 1 | 1 | -1 | |||||||||||
Credit contracts | -1,991 | 365 | - | 120 | - | - | -1,506 | 486 | |||||||||||
Other contracts | -162 | 35 | -16 | 13 | -1 | - | -131 | 8 | |||||||||||
Total derivatives liabilities, net | -1,373 | 469 | -16 | -761 | -1 | 1 | -1,681 | 566 | |||||||||||
Long-term debt(c) | -344 | -120 | - | 23 | -2 | - | -443 | -41 | |||||||||||
Total | $ | -2,974 | $ | 1,214 | $ | -16 | $ | -733 | $ | -3 | $ | 1 | $ | -2,511 | $ | 1,350 | |||
(a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. | |||||||||||||||||||
(b) Purchases, Sales, Issues and Settlements, Net primarily reflect the effect of consolidating previously unconsolidated securitization vehicles. | |||||||||||||||||||
(c) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable. | |||||||||||||||||||
Schedule of net realized and unrealized gains and losses related to Level 3 items | ' | ||||||||||||||||||
Net | Net Realized | ||||||||||||||||||
Investment | Capital | Other | |||||||||||||||||
(in millions) | Income | Gains (Losses) | Income | Total | |||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||
Bonds available for sale | $ | 320 | $ | -22 | $ | 12 | $ | 310 | |||||||||||
Other bond securities | -3 | - | 236 | 233 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Other invested assets | 18 | -20 | -5 | -7 | |||||||||||||||
Policyholder contract deposits | - | -155 | - | -155 | |||||||||||||||
Derivative liabilities, net | 18 | -1 | 74 | 91 | |||||||||||||||
Long-term debt | - | - | 21 | 21 | |||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||
Bonds available for sale | $ | 264 | $ | -21 | $ | 15 | $ | 258 | |||||||||||
Other bond securities | 86 | 7 | 197 | 290 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Other invested assets | -12 | -5 | -8 | -25 | |||||||||||||||
Policyholder contract deposits | - | 250 | - | 250 | |||||||||||||||
Derivative liabilities, net | 11 | 8 | 67 | 86 | |||||||||||||||
Long-term debt | - | - | -25 | -25 | |||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||
Bonds available for sale | $ | 922 | $ | -73 | $ | 37 | $ | 886 | |||||||||||
Other bond securities | 97 | 2 | 892 | 991 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Other invested assets | 107 | -33 | 6 | 80 | |||||||||||||||
Policyholder contract deposits | - | -687 | - | -687 | |||||||||||||||
Derivative liabilities, net | 49 | 4 | 240 | 293 | |||||||||||||||
Long-term debt | - | - | 13 | 13 | |||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||
Bonds available for sale | $ | 713 | $ | -8 | $ | 90 | $ | 795 | |||||||||||
Other bond securities | 114 | 8 | 1,042 | 1,164 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Other invested assets | 142 | -34 | 36 | 144 | |||||||||||||||
Policyholder contract deposits | - | 865 | - | 865 | |||||||||||||||
Derivative liabilities, net | 26 | 25 | 418 | 469 | |||||||||||||||
Long-term debt | - | - | -120 | -120 | |||||||||||||||
Gross components of purchases, sales, issuances and settlements, net | ' | ||||||||||||||||||
Purchases, | |||||||||||||||||||
Sales, Issues and | |||||||||||||||||||
(in millions) | Purchases | Sales | Settlements | Settlements, Net(a) | |||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities and political subdivisions | $ | 66 | $ | -3 | $ | -20 | $ | 43 | |||||||||||
Non-U.S. governments | 1 | - | - | 1 | |||||||||||||||
Corporate debt | 22 | - | -95 | -73 | |||||||||||||||
RMBS | 1,062 | -62 | -625 | 375 | |||||||||||||||
CMBS | 276 | -167 | -95 | 14 | |||||||||||||||
CDO/ABS | 1,085 | -68 | -325 | 692 | |||||||||||||||
Total bonds available for sale | 2,512 | -300 | -1,160 | 1,052 | |||||||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | - | -3 | -36 | -39 | |||||||||||||||
CMBS | - | -9 | -11 | -20 | |||||||||||||||
CDO/ABS | 6 | -4 | -453 | -451 | |||||||||||||||
Total other bond securities | 6 | -16 | -500 | -510 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Other invested assets | 276 | - | -211 | 65 | |||||||||||||||
Total assets | $ | 2,794 | $ | -316 | $ | -1,871 | $ | 607 | |||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | -36 | $ | 34 | $ | -2 | |||||||||||
Derivative liabilities, net | - | -2 | -21 | -23 | |||||||||||||||
Long-term debt(c) | - | - | 1 | 1 | |||||||||||||||
Total liabilities | $ | - | $ | -38 | $ | 14 | $ | -24 | |||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities and political subdivisions | $ | 194 | $ | -34 | $ | - | $ | 160 | |||||||||||
Non-U.S. governments | 1 | - | - | 1 | |||||||||||||||
Corporate debt | 146 | - | -146 | - | |||||||||||||||
RMBS | 750 | - | -623 | 127 | |||||||||||||||
CMBS | 179 | -3 | -74 | 102 | |||||||||||||||
CDO/ABS | 628 | - | -265 | 363 | |||||||||||||||
Total bonds available for sale | 1,898 | -37 | -1,108 | 753 | |||||||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 31 | -12 | -27 | -8 | |||||||||||||||
CMBS | - | -9 | -44 | -53 | |||||||||||||||
CDO/ABS | - | -66 | -491 | -557 | |||||||||||||||
Total other bond securities | 31 | -87 | -562 | -618 | |||||||||||||||
Equity securities available for sale | - | - | -48 | -48 | |||||||||||||||
Other invested assets | 249 | -3 | -191 | 55 | |||||||||||||||
Total assets | $ | 2,178 | $ | -127 | $ | -1,909 | $ | 142 | |||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | -4 | $ | -47 | $ | -51 | |||||||||||
Derivative liabilities, net | 4 | - | -897 | -893 | |||||||||||||||
Long-term debt(c) | - | - | 1 | 1 | |||||||||||||||
Total liabilities | $ | 4 | $ | -4 | $ | -943 | $ | -943 | |||||||||||
Purchases, | |||||||||||||||||||
Sales, Issues and | |||||||||||||||||||
(in millions) | Purchases | Sales | Settlements | Settlements, Net(a) | |||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities and political subdivisions(b) | $ | 1,002 | $ | -35 | $ | -71 | $ | 896 | |||||||||||
Non-U.S. governments | 8 | - | -1 | 7 | |||||||||||||||
Corporate debt | 141 | -8 | -273 | -140 | |||||||||||||||
RMBS | 2,814 | -88 | -1,727 | 999 | |||||||||||||||
CMBS | 368 | -224 | -187 | -43 | |||||||||||||||
CDO/ABS | 2,307 | -70 | -811 | 1,426 | |||||||||||||||
Total bonds available for sale | 6,640 | -425 | -3,070 | 3,145 | |||||||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 162 | -22 | -107 | 33 | |||||||||||||||
CMBS | - | -15 | -136 | -151 | |||||||||||||||
CDO/ABS | 50 | -19 | -1,369 | -1,338 | |||||||||||||||
Total other bond securities | 212 | -56 | -1,612 | -1,456 | |||||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||||
Mortgage and other loans receivable | 6 | - | - | 6 | |||||||||||||||
Other invested assets | 709 | -1 | -609 | 99 | |||||||||||||||
Total assets | $ | 7,567 | $ | -482 | $ | -5,291 | $ | 1,794 | |||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | -94 | $ | 118 | $ | 24 | |||||||||||
Derivative liabilities, net | 1 | -2 | -1 | -2 | |||||||||||||||
Long-term debt(c) | - | - | 34 | 34 | |||||||||||||||
Total liabilities | $ | 1 | $ | -96 | $ | 151 | $ | 56 | |||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Bonds available for sale: | |||||||||||||||||||
Obligations of states, municipalities and political subdivisions | $ | 502 | $ | -137 | $ | - | $ | 365 | |||||||||||
Non-U.S. governments | 9 | - | -2 | 7 | |||||||||||||||
Corporate debt | 454 | -114 | -310 | 30 | |||||||||||||||
RMBS | 3,462 | -231 | -1,838 | 1,393 | |||||||||||||||
CMBS | 872 | -167 | -415 | 290 | |||||||||||||||
CDO/ABS | 2,099 | -159 | -557 | 1,383 | |||||||||||||||
Total bonds available for sale | 7,398 | -808 | -3,122 | 3,468 | |||||||||||||||
Other bond securities: | |||||||||||||||||||
RMBS | 244 | -12 | -102 | 130 | |||||||||||||||
CMBS | 19 | -67 | -145 | -193 | |||||||||||||||
CDO/ABS | 318 | -66 | -1,818 | -1,566 | |||||||||||||||
Total other bond securities | 581 | -145 | -2,065 | -1,629 | |||||||||||||||
Equity securities available for sale | 58 | -11 | -48 | -1 | |||||||||||||||
Other invested assets | 697 | -49 | -553 | 95 | |||||||||||||||
Total assets | $ | 8,734 | $ | -1,013 | $ | -5,788 | $ | 1,933 | |||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits | $ | - | $ | -16 | $ | 21 | $ | 5 | |||||||||||
Derivative liabilities, net | 9 | -1 | -769 | -761 | |||||||||||||||
Long-term debt(c) | - | - | 23 | 23 | |||||||||||||||
Total liabilities | $ | 9 | $ | -17 | $ | -725 | $ | -733 | |||||||||||
(a) There were no issuances during the three- and nine-month periods ended September 30, 2014 and 2013. | |||||||||||||||||||
(b) Purchases primarily reflect the effect of consolidating previously unconsolidated securitization vehicles. | |||||||||||||||||||
(c) Includes GIAs, notes, bonds, loans and mortgages payable. | |||||||||||||||||||
Significant unobservable inputs used for recurring fair value measurements | ' | ||||||||||||||||||
Fair Value at | |||||||||||||||||||
September 30, | Valuation | Range | |||||||||||||||||
(in millions) | 2014 | Technique | Unobservable Input | (Weighted Average ) | |||||||||||||||
Assets: | |||||||||||||||||||
Obligations of states, | $ | 1,141 | Discounted cash flow | Yield(b) | 4.15% - 4.93% (4.54%) | ||||||||||||||
municipalities and | |||||||||||||||||||
political subdivisions | |||||||||||||||||||
Corporate debt | 1,217 | Discounted cash flow | Yield(b) | 0.00% - 8.57% (6.19%) | |||||||||||||||
RMBS | 17,384 | Discounted cash flow | Constant prepayment rate(a)(c) | 0.36% - 9.74% (5.05%) | |||||||||||||||
Loss severity(a)(c) | 45.61% - 79.52% (62.57%) | ||||||||||||||||||
Constant default rate(a)(c) | 3.84% - 10.46% (7.15%) | ||||||||||||||||||
Yield(c) | 2.51% - 6.61% (4.56%) | ||||||||||||||||||
Certain CDO/ABS | 5,321 | Discounted cash flow | Constant prepayment rate(a)(c) | 6.40% - 13.40% (9.90%) | |||||||||||||||
Loss severity(a)(c) | 43.80% - 59.90% (52.00%) | ||||||||||||||||||
Constant default rate(a)(c) | 2.60% - 14.90% (8.00%) | ||||||||||||||||||
Yield(c) | 4.70% - 10.30% (7.70%) | ||||||||||||||||||
CMBS | 6,048 | Discounted cash flow | Yield(b) | 0.00% - 13.01% (4.50%) | |||||||||||||||
CDO/ABS - Direct | Binomial Expansion | Recovery rate(b) | 7.00% - 58.00% (26.00%) | ||||||||||||||||
Investment book | 425 | Technique (BET) | Diversity score(b) | 6 - 23 (14) | |||||||||||||||
Weighted average life(b) | 0.25 - 10.32 years (4.09 years) | ||||||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract | |||||||||||||||||||
deposits | 991 | Discounted cash flow | Equity implied volatility(b) | 6.00% - 39.00% | |||||||||||||||
Base lapse rate(b) | 1.00% - 40.00% | ||||||||||||||||||
Dynamic lapse rate(b) | 0.20% - 60.00% | ||||||||||||||||||
Mortality rate(b) | 0.10% - 35.00% | ||||||||||||||||||
Utilization rate(b) | 0.50% - 30.00% | ||||||||||||||||||
Total derivative | |||||||||||||||||||
liabilities, net | 813 | BET | Recovery rate(b) | 5.00% - 32.00% (17.00%) | |||||||||||||||
Diversity score(b) | 9 - 27 (14) | ||||||||||||||||||
Weighted average life(b) | 2.69 - 10.32 years (4.67 years) | ||||||||||||||||||
Fair Value at | |||||||||||||||||||
December 31, | Valuation | Range | |||||||||||||||||
(in millions) | 2013 | Technique | Unobservable Input | (Weighted Average ) | |||||||||||||||
Assets: | |||||||||||||||||||
Obligations of states, | $ | 920 | Discounted cash flow | Yield(b) | 4.94% - 5.86% (5.40%) | ||||||||||||||
municipalities and | |||||||||||||||||||
political subdivisions | |||||||||||||||||||
Corporate debt | 788 | Discounted cash flow | Yield(b) | 0.00% - 14.29% (6.64%) | |||||||||||||||
RMBS | 14,419 | Discounted cash flow | Constant prepayment rate(a)(c) | 0.00% - 10.35% (4.97%) | |||||||||||||||
Loss severity(a)(c) | 42.60% - 79.07% (60.84%) | ||||||||||||||||||
Constant default rate(a)(c) | 3.98% - 12.22% (8.10%) | ||||||||||||||||||
Yield(c) | 2.54% - 7.40% (4.97%) | ||||||||||||||||||
Certain CDO/ABS | 5,414 | Discounted cash flow | Constant prepayment rate(a)(c) | 5.20% - 10.80% (8.20%) | |||||||||||||||
Loss severity(a)(c) | 48.60% - 63.40% (56.40%) | ||||||||||||||||||
Constant default rate(a)(c) | 3.20% - 16.20% (9.00%) | ||||||||||||||||||
Yield(c) | 5.20% - 11.50% (9.40%) | ||||||||||||||||||
CMBS | 5,847 | Discounted cash flow | Yield(b) | 0.00% - 14.69% (5.58%) | |||||||||||||||
CDO/ABS - Direct | Binomial Expansion | Recovery rate(b) | 6.00% - 63.00% (25.00%) | ||||||||||||||||
Investment book | 557 | Technique (BET) | Diversity score(b) | 5 - 35 (12) | |||||||||||||||
Weighted average life(b) | 1.07 - 9.47 years (4.86 years) | ||||||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract | |||||||||||||||||||
deposits | 312 | Discounted cash flow | Equity implied volatility(b) | 6.00% - 39.00% | |||||||||||||||
Base lapse rate(b) | 1.00% - 40.00% | ||||||||||||||||||
Dynamic lapse rate(b) | 0.20% - 60.00% | ||||||||||||||||||
Mortality rate(b) | 0.50% - 40.00% | ||||||||||||||||||
Utilization rate(b) | 0.50% - 25.00% | ||||||||||||||||||
Total derivative | |||||||||||||||||||
liabilities, net | 996 | BET | Recovery rate(b) | 5.00% - 34.00% (17.00%) | |||||||||||||||
Diversity score(b) | 9 - 32 (13) | ||||||||||||||||||
Weighted average life(b) | 4.50 - 9.47 years (5.63 years) | ||||||||||||||||||
(a) The unobservable inputs and ranges for the 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) Information received from independent third-party valuation service providers. | |||||||||||||||||||
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share | ' | ||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||
Fair Value Using Net Asset Value Per Share (or its equivalent) | Fair Value Using Net Asset Value Per Share (or its equivalent) | ||||||||||||||||||
Unfunded | Unfunded | ||||||||||||||||||
(in millions) | Investment Category Includes | Commitments | Commitments | ||||||||||||||||
Investment Category | |||||||||||||||||||
Private equity funds: | |||||||||||||||||||
Leveraged buyout | Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage | $ | 2,496 | $ | 474 | $ | 2,544 | $ | 578 | ||||||||||
Real Estate / Infrastructure | Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities | 427 | 209 | 346 | 86 | ||||||||||||||
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 | 136 | 10 | 140 | 13 | ||||||||||||||
Distressed | Securities of companies that are in default, under bankruptcy protection, or troubled | 174 | 44 | 183 | 34 | ||||||||||||||
Other | Includes multi-strategy and mezzanine strategies | 194 | 213 | 134 | 238 | ||||||||||||||
Total private equity funds | 3,427 | 950 | 3,347 | 949 | |||||||||||||||
Hedge funds: | |||||||||||||||||||
Event-driven | Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations | 1,188 | 2 | 976 | 2 | ||||||||||||||
Long-short | Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk | 2,096 | 4 | 1,759 | 11 | ||||||||||||||
Macro | Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions | 486 | - | 612 | - | ||||||||||||||
Distressed | Securities of companies that are in default, under bankruptcy protection or troubled | 659 | 5 | 594 | 15 | ||||||||||||||
Emerging markets | Investments in the financial markets of developing countries | 302 | - | 287 | - | ||||||||||||||
Other | Includes multi-strategy and relative value strategies | 238 | - | 157 | - | ||||||||||||||
Total hedge funds | 4,969 | 11 | 4,385 | 28 | |||||||||||||||
Total | $ | 8,396 | $ | 961 | $ | 7,732 | $ | 977 | |||||||||||
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, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Assets: | |||||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 1 | $ | - | $ | 3 | |||||||||||
Bond and equity securities | 252 | 331 | 1,529 | 963 | |||||||||||||||
Alternative Investments(a) | 73 | 23 | 245 | 229 | |||||||||||||||
Other, including Short-term investments | 2 | 3 | 7 | 8 | |||||||||||||||
Liabilities: | |||||||||||||||||||
Long-term debt(b) | 23 | -51 | -186 | 271 | |||||||||||||||
Other liabilities | -4 | -4 | -10 | -10 | |||||||||||||||
Total gain | $ | 346 | $ | 303 | $ | 1,585 | $ | 1,464 | |||||||||||
(a) Includes hedge funds, private equity funds and other investment partnerships. | |||||||||||||||||||
(b) Includes GIAs, notes, bonds, loans and mortgages payable. | |||||||||||||||||||
Difference between fair values and aggregate contractual principal amounts, fair value option | ' | ||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||
(in millions) | Fair Value | Principal Amount | Difference | Fair Value | Principal Amount | Difference | |||||||||||||
Assets: | |||||||||||||||||||
Mortgage and other loans receivable | $ | 6 | $ | 4 | $ | 2 | $ | - | $ | - | $ | - | |||||||
Liabilities: | |||||||||||||||||||
Long-term debt* | $ | 5,667 | $ | 4,344 | $ | 1,323 | $ | 6,747 | $ | 5,231 | $ | 1,516 | |||||||
* 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 | 2014 | 2013 | 2014 | 2013 | |||||||||||
30-Sep-14 | |||||||||||||||||||
Other investments | $ | - | $ | - | $ | 766 | $ | 766 | $ | 62 | $ | 9 | $ | 117 | $ | 82 | |||
Investments in life settlements | - | - | 473 | 473 | 52 | 61 | 139 | 139 | |||||||||||
Other assets | - | - | 1 | 1 | 1 | 2 | 2 | 26 | |||||||||||
Total | $ | - | $ | - | $ | 1,240 | $ | 1,240 | $ | 115 | $ | 72 | $ | 258 | $ | 247 | |||
31-Dec-13 | |||||||||||||||||||
Other investments | $ | - | $ | - | $ | 1,615 | $ | 1,615 | |||||||||||
Investments in life settlements | - | - | 896 | 896 | |||||||||||||||
Other assets | - | 11 | 48 | 59 | |||||||||||||||
Total | $ | - | $ | 11 | $ | 2,559 | $ | 2,570 | |||||||||||
Carrying value and estimated fair value of AIG's financial instruments | ' | ||||||||||||||||||
Estimated Fair Value | Carrying | ||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Value | ||||||||||||||
30-Sep-14 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 217 | $ | 24,468 | $ | 24,685 | $ | 23,391 | |||||||||
Other invested assets | - | 626 | 2,839 | 3,465 | 4,357 | ||||||||||||||
Short-term investments | - | 13,661 | - | 13,661 | 13,661 | ||||||||||||||
Cash | 1,933 | - | - | 1,933 | 1,933 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits associated | |||||||||||||||||||
with investment-type contracts | - | 226 | 117,983 | 118,209 | 105,258 | ||||||||||||||
Other liabilities | - | 3,993 | - | 3,993 | 3,993 | ||||||||||||||
Long-term debt | - | 30,880 | 3,689 | 34,569 | 30,556 | ||||||||||||||
31-Dec-13 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 219 | $ | 21,418 | $ | 21,637 | $ | 20,765 | |||||||||
Other invested assets | - | 529 | 2,705 | 3,234 | 4,194 | ||||||||||||||
Short-term investments | - | 15,304 | - | 15,304 | 15,304 | ||||||||||||||
Cash | 2,241 | - | - | 2,241 | 2,241 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholder contract deposits associated | |||||||||||||||||||
with investment-type contracts | - | 199 | 114,361 | 114,560 | 105,093 | ||||||||||||||
Other liabilities | - | 4,869 | 1 | 4,870 | 4,869 | ||||||||||||||
Long-term debt | - | 36,239 | 2,394 | 38,633 | 34,946 |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
INVESTMENTS | ' | |||||||||||||||||
The amortized cost or cost and fair value of AIG's available for sale securities and other invested assets carried at fair value | ' | |||||||||||||||||
Other-Than- | ||||||||||||||||||
Amortized | Gross | Gross | Temporary | |||||||||||||||
Cost or | Unrealized | Unrealized | Fair | Impairments | ||||||||||||||
(in millions) | Cost | Gains | Losses | Value | in AOCI(a) | |||||||||||||
30-Sep-14 | ||||||||||||||||||
Bonds available for sale: | ||||||||||||||||||
U.S. government and government sponsored entities | $ | 2,638 | $ | 180 | $ | -20 | $ | 2,798 | $ | - | ||||||||
Obligations of states, municipalities and political subdivisions | 26,699 | 1,557 | -84 | 28,172 | -11 | |||||||||||||
Non-U.S. governments | 21,889 | 955 | -182 | 22,662 | - | |||||||||||||
Corporate debt | 139,166 | 10,222 | -1,060 | 148,328 | 73 | |||||||||||||
Mortgage-backed, asset-backed and collateralized: | ||||||||||||||||||
RMBS | 35,511 | 3,507 | -314 | 38,704 | 1,862 | |||||||||||||
CMBS | 11,959 | 694 | -111 | 12,542 | 218 | |||||||||||||
CDO/ABS | 12,058 | 637 | -115 | 12,580 | 50 | |||||||||||||
Total mortgage-backed, asset-backed and collateralized | 59,528 | 4,838 | -540 | 63,826 | 2,130 | |||||||||||||
Total bonds available for sale(b) | 249,920 | 17,752 | -1,886 | 265,786 | 2,192 | |||||||||||||
Equity securities available for sale: | ||||||||||||||||||
Common stock | 1,323 | 2,268 | -19 | 3,572 | - | |||||||||||||
Preferred stock | 24 | 5 | - | 29 | - | |||||||||||||
Mutual funds | 719 | 41 | -17 | 743 | - | |||||||||||||
Total equity securities available for sale | 2,066 | 2,314 | -36 | 4,344 | - | |||||||||||||
Total | $ | 251,986 | $ | 20,066 | $ | -1,922 | $ | 270,130 | $ | 2,192 | ||||||||
31-Dec-13 | ||||||||||||||||||
Bonds available for sale: | ||||||||||||||||||
U.S. government and government sponsored entities | $ | 3,084 | $ | 150 | $ | -39 | $ | 3,195 | $ | - | ||||||||
Obligations of states, municipalities and political subdivisions | 28,704 | 1,122 | -446 | 29,380 | -15 | |||||||||||||
Non-U.S. governments | 22,045 | 822 | -358 | 22,509 | - | |||||||||||||
Corporate debt | 139,461 | 7,989 | -2,898 | 144,552 | 74 | |||||||||||||
Mortgage-backed, asset-backed and collateralized: | ||||||||||||||||||
RMBS | 33,520 | 3,101 | -473 | 36,148 | 1,670 | |||||||||||||
CMBS | 11,216 | 558 | -292 | 11,482 | 125 | |||||||||||||
CDO/ABS | 10,501 | 649 | -142 | 11,008 | 62 | |||||||||||||
Total mortgage-backed, asset-backed and collateralized | 55,237 | 4,308 | -907 | 58,638 | 1,857 | |||||||||||||
Total bonds available for sale(b) | 248,531 | 14,391 | -4,648 | 258,274 | 1,916 | |||||||||||||
Equity securities available for sale: | ||||||||||||||||||
Common stock | 1,280 | 1,953 | -14 | 3,219 | - | |||||||||||||
Preferred stock | 24 | 4 | -1 | 27 | - | |||||||||||||
Mutual funds | 422 | 12 | -24 | 410 | - | |||||||||||||
Total equity securities available for sale | 1,726 | 1,969 | -39 | 3,656 | - | |||||||||||||
Total | $ | 250,257 | $ | 16,360 | $ | -4,687 | $ | 261,930 | $ | 1,916 | ||||||||
(a) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date. | ||||||||||||||||||
(b) At September 30, 2014 and December 31, 2013, bonds available for sale held by us that were below investment grade or not rated totaled $35.0 billion and $32.6 billion, respectively. | ||||||||||||||||||
The fair value and gross unrealized losses on AIG's available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position | ' | |||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
(in millions) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||
30-Sep-14 | ||||||||||||||||||
Bonds available for sale: | ||||||||||||||||||
U.S. government and government sponsored entities | $ | 491 | $ | 5 | $ | 303 | $ | 15 | $ | 794 | $ | 20 | ||||||
Obligations of states, municipalities and political | ||||||||||||||||||
subdivisions | 924 | 20 | 1,183 | 64 | 2,107 | 84 | ||||||||||||
Non-U.S. governments | 2,074 | 34 | 2,213 | 148 | 4,287 | 182 | ||||||||||||
Corporate debt | 14,653 | 239 | 14,521 | 821 | 29,174 | 1,060 | ||||||||||||
RMBS | 3,849 | 72 | 4,432 | 242 | 8,281 | 314 | ||||||||||||
CMBS | 956 | 6 | 2,483 | 105 | 3,439 | 111 | ||||||||||||
CDO/ABS | 2,937 | 33 | 1,770 | 82 | 4,707 | 115 | ||||||||||||
Total bonds available for sale | 25,884 | 409 | 26,905 | 1,477 | 52,789 | 1,886 | ||||||||||||
Equity securities available for sale: | ||||||||||||||||||
Common stock | 116 | 13 | 7 | 6 | 123 | 19 | ||||||||||||
Preferred stock | 5 | - | - | - | 5 | - | ||||||||||||
Mutual funds | 282 | 12 | 70 | 5 | 352 | 17 | ||||||||||||
Total equity securities available for sale | 403 | 25 | 77 | 11 | 480 | 36 | ||||||||||||
Total | $ | 26,287 | $ | 434 | $ | 26,982 | $ | 1,488 | $ | 53,269 | $ | 1,922 | ||||||
31-Dec-13 | ||||||||||||||||||
Bonds available for sale: | ||||||||||||||||||
U.S. government and government sponsored entities | $ | 1,101 | $ | 34 | $ | 42 | $ | 5 | $ | 1,143 | $ | 39 | ||||||
Obligations of states, municipalities and political | ||||||||||||||||||
subdivisions | 6,134 | 379 | 376 | 67 | 6,510 | 446 | ||||||||||||
Non-U.S. governments | 4,102 | 217 | 710 | 141 | 4,812 | 358 | ||||||||||||
Corporate debt | 38,495 | 2,251 | 4,926 | 647 | 43,421 | 2,898 | ||||||||||||
RMBS | 8,543 | 349 | 1,217 | 124 | 9,760 | 473 | ||||||||||||
CMBS | 3,191 | 176 | 1,215 | 116 | 4,406 | 292 | ||||||||||||
CDO/ABS | 2,845 | 62 | 915 | 80 | 3,760 | 142 | ||||||||||||
Total bonds available for sale | 64,411 | 3,468 | 9,401 | 1,180 | 73,812 | 4,648 | ||||||||||||
Equity securities available for sale: | ||||||||||||||||||
Common stock | 96 | 14 | - | - | 96 | 14 | ||||||||||||
Preferred stock | 5 | 1 | - | - | 5 | 1 | ||||||||||||
Mutual funds | 369 | 24 | - | - | 369 | 24 | ||||||||||||
Total equity securities available for sale | 470 | 39 | - | - | 470 | 39 | ||||||||||||
Total | $ | 64,881 | $ | 3,507 | $ | 9,401 | $ | 1,180 | $ | 74,282 | $ | 4,687 | ||||||
The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity | ' | |||||||||||||||||
Total Fixed Maturity Securities | Fixed Maturity Securities in a Loss | |||||||||||||||||
30-Sep-14 | Available for Sale | Position Available for Sale | ||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||
Due in one year or less | $ | 10,843 | $ | 11,017 | $ | 857 | $ | 846 | ||||||||||
Due after one year through five years | 50,274 | 52,949 | 7,038 | 6,926 | ||||||||||||||
Due after five years through ten years | 65,793 | 69,252 | 14,788 | 14,353 | ||||||||||||||
Due after ten years | 63,482 | 68,742 | 15,025 | 14,237 | ||||||||||||||
Mortgage-backed, asset-backed and collateralized | 59,528 | 63,826 | 16,967 | 16,427 | ||||||||||||||
Total | $ | 249,920 | $ | 265,786 | $ | 54,675 | $ | 52,789 | ||||||||||
The gross realized gains and gross realized losses from sales of AIG's available for sale securities | ' | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
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 | $ | 118 | $ | 21 | $ | 516 | $ | 26 | $ | 528 | $ | 65 | $ | 2,216 | $ | 153 | ||
Equity securities | 33 | 4 | 18 | 6 | 102 | 10 | 101 | 15 | ||||||||||
Total | $ | 151 | $ | 25 | $ | 534 | $ | 32 | $ | 630 | $ | 75 | $ | 2,317 | $ | 168 | ||
The fair value of AIG's other securities | ' | |||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||
Fair | Percent | Fair | Percent | |||||||||||||||
(in millions) | Value | of Total | Value | of Total | ||||||||||||||
Fixed maturity securities: | ||||||||||||||||||
U.S. government and government sponsored entities | $ | 5,258 | 25 | % | $ | 5,723 | 24 | % | ||||||||||
Obligations of states, municipalities and political subdivisions | 122 | 1 | 121 | 1 | ||||||||||||||
Non-U.S. governments | 2 | - | 2 | - | ||||||||||||||
Corporate debt | 948 | 4 | 1,169 | 5 | ||||||||||||||
Mortgage-backed, asset-backed and collateralized: | ||||||||||||||||||
RMBS | 2,166 | 10 | 2,263 | 10 | ||||||||||||||
CMBS | 1,220 | 6 | 1,353 | 6 | ||||||||||||||
CDO/ABS and other collateralized* | 10,665 | 50 | 11,985 | 51 | ||||||||||||||
Total mortgage-backed, asset-backed and collateralized | 14,051 | 66 | 15,601 | 67 | ||||||||||||||
Other | - | - | 7 | - | ||||||||||||||
Total fixed maturity securities | 20,381 | 96 | 22,623 | 97 | ||||||||||||||
Equity securities | 766 | 4 | 834 | 3 | ||||||||||||||
Total | $ | 21,147 | 100 | % | $ | 23,457 | 100 | % | ||||||||||
* Includes $0.9 billion and $1.0 billion of U.S. Government agency backed ABS at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||
Components of net investment income | ' | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Fixed maturity securities, including short-term investments | $ | 3,022 | $ | 3,005 | $ | 9,264 | $ | 8,969 | ||||||||||
Equity securities | 135 | 98 | 67 | 123 | ||||||||||||||
Interest on mortgage and other loans | 318 | 292 | 947 | 862 | ||||||||||||||
Alternative investments* | 636 | 288 | 2,108 | 1,892 | ||||||||||||||
Real estate | 25 | 32 | 86 | 99 | ||||||||||||||
Other investments | 25 | -22 | 34 | 59 | ||||||||||||||
Total investment income | 4,161 | 3,693 | 12,506 | 12,004 | ||||||||||||||
Investment expenses | 133 | 120 | 398 | 423 | ||||||||||||||
Net investment income | $ | 4,028 | $ | 3,573 | $ | 12,108 | $ | 11,581 | ||||||||||
* Includes hedge funds, private equity funds, affordable housing partnerships, investments in life settlements and other investment partnerships. | ||||||||||||||||||
Components of net realized capital gains (losses) | ' | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Sales of fixed maturity securities | $ | 97 | $ | 490 | $ | 463 | $ | 2,063 | ||||||||||
Sales of equity securities | 29 | 12 | 92 | 86 | ||||||||||||||
Other-than-temporary impairments: | ||||||||||||||||||
Severity | - | - | - | -5 | ||||||||||||||
Change in intent | -14 | -1 | -20 | -4 | ||||||||||||||
Foreign currency declines | -3 | - | -13 | - | ||||||||||||||
Issuer-specific credit events | -31 | -51 | -124 | -130 | ||||||||||||||
Adverse projected cash flows | -2 | - | -7 | -7 | ||||||||||||||
Provision for loan losses | -11 | -33 | 9 | -38 | ||||||||||||||
Foreign exchange transactions | 350 | -276 | 329 | 135 | ||||||||||||||
Derivative instruments | 36 | 192 | -302 | 209 | ||||||||||||||
Impairments on investments in life settlements | -52 | -61 | -139 | -139 | ||||||||||||||
Other | 71 | -20 | 70 | -27 | ||||||||||||||
Net realized capital gains | $ | 470 | $ | 252 | $ | 358 | $ | 2,143 | ||||||||||
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investements | ' | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Increase (decrease) in unrealized appreciation (depreciation) of investments: | ||||||||||||||||||
Fixed maturity securities | $ | -1,515 | $ | -1,696 | $ | 6,123 | $ | -12,971 | ||||||||||
Equity securities | 303 | 189 | 348 | 180 | ||||||||||||||
Other investments | 94 | 50 | 127 | 57 | ||||||||||||||
Total Increase (decrease) in unrealized appreciation (depreciation) of investments* | $ | -1,118 | $ | -1,457 | $ | 6,598 | $ | -12,734 | ||||||||||
* Excludes net unrealized gains attributable to businesses held for sale. | ||||||||||||||||||
Credit impairments recognized in earnings for available for sale fixed maturity securities | ' | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance, beginning of period | $ | 3,166 | $ | 4,236 | $ | 3,872 | $ | 5,164 | ||||||||||
Increases due to: | ||||||||||||||||||
Credit impairments on new securities subject to impairment losses | 13 | 6 | 35 | 33 | ||||||||||||||
Additional credit impairments on previously impaired securities | 5 | 29 | 59 | 59 | ||||||||||||||
Reductions due to: | ||||||||||||||||||
Credit impaired securities fully disposed for which there was no | ||||||||||||||||||
prior intent or requirement to sell | -116 | -68 | -528 | -626 | ||||||||||||||
Accretion on securities previously impaired due to credit* | -183 | -184 | -544 | -611 | ||||||||||||||
Other | - | - | -9 | - | ||||||||||||||
Balance, end of period | $ | 2,885 | $ | 4,019 | $ | 2,885 | $ | 4,019 | ||||||||||
* 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. | ||||||||||||||||||
Schedule of Purchased Credit Impaired (PCI) Securities, at acquisition date | ' | |||||||||||||||||
* Represents undiscounted expected cash flows, including both principal and interest. | ||||||||||||||||||
(in millions) | At Date of Acquisition | |||||||||||||||||
Contractually required payments (principal and interest) | $ | 29,851 | ||||||||||||||||
Cash flows expected to be collected* | 23,983 | |||||||||||||||||
Recorded investment in acquired securities | 15,896 | |||||||||||||||||
Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date | ' | |||||||||||||||||
(in millions) | 30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Outstanding principal balance | $ | 16,883 | $ | 14,741 | ||||||||||||||
Amortized cost | 12,097 | 10,110 | ||||||||||||||||
Fair value | 13,489 | 11,338 | ||||||||||||||||
Activity for accretable yield on Purchased Credit Impaired (PCI) Securities | ' | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance, beginning of period | $ | 7,042 | $ | 5,901 | $ | 6,940 | $ | 4,766 | ||||||||||
Newly purchased PCI securities | 358 | 202 | 1,127 | 1,308 | ||||||||||||||
Disposals | - | - | - | -60 | ||||||||||||||
Accretion | -223 | -187 | -654 | -517 | ||||||||||||||
Effect of changes in interest rate indices | -96 | 282 | -327 | 388 | ||||||||||||||
Net reclassification from non-accretable difference, | ||||||||||||||||||
including effects of prepayments | 30 | 405 | 25 | 718 | ||||||||||||||
Balance, end of period | $ | 7,111 | $ | 6,603 | $ | 7,111 | $ | 6,603 | ||||||||||
Schedule of fair value of securities pledged to counterparties under secured financing transactions | ' | |||||||||||||||||
(in millions) | 30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Securities available for sale | $ | 2,860 | $ | 3,837 | ||||||||||||||
Other securities | 2,187 | 2,766 | ||||||||||||||||
Schedule of fair value of securities pledged to the entity under reverse repurchase agreements | ' | |||||||||||||||||
(in millions) | 30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Securities collateral pledged to us | $ | 7,347 | $ | 8,878 | ||||||||||||||
Amount sold or repledged by us | 106 | 71 |
LENDING_ACTIVITIES_Tables
LENDING ACTIVITIES (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
LENDING ACTIVITIES | ' | |||||||||||||||||||
Composition of Mortgages and other loans receivable | ' | |||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||
Commercial mortgages* | $ | 17,841 | $ | 16,195 | ||||||||||||||||
Life insurance policy loans | 2,756 | 2,830 | ||||||||||||||||||
Commercial loans, other loans and notes receivable | 3,084 | 2,052 | ||||||||||||||||||
Total mortgage and other loans receivable | 23,681 | 21,077 | ||||||||||||||||||
Allowance for losses | -284 | -312 | ||||||||||||||||||
Mortgage and other loans receivable, net | $ | 23,397 | $ | 20,765 | ||||||||||||||||
* Commercial mortgages primarily represent loans for office, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (aggregating approximately 14 percent and 16 percent, respectively, at September 30, 2014, and approximately 18 percent and 17 percent, respectively, at December 31, 2013). | ||||||||||||||||||||
Schedule of credit quality indicators for the commercial mortgage loans | ' | |||||||||||||||||||
Number | Percent | |||||||||||||||||||
of | Class | of | ||||||||||||||||||
(dollars in millions) | Loans | Apartments | Offices | Retail | Industrial | Hotel | Others | Total(c) | Total $ | |||||||||||
30-Sep-14 | ||||||||||||||||||||
Credit Quality Indicator: | ||||||||||||||||||||
In good standing | 973 | $ | 3,231 | $ | 5,390 | $ | 3,868 | $ | 1,718 | $ | 1,469 | $ | 1,784 | $ | 17,460 | 98 | % | |||
Restructured(a) | 8 | 4 | 285 | 16 | - | - | 22 | 327 | 2 | |||||||||||
90 days or less delinquent | 1 | - | 14 | - | - | - | - | 14 | - | |||||||||||
>90 days delinquent or in | ||||||||||||||||||||
process of foreclosure | 3 | 40 | - | - | - | - | - | 40 | - | |||||||||||
Total(b) | 985 | $ | 3,275 | $ | 5,689 | $ | 3,884 | $ | 1,718 | $ | 1,469 | $ | 1,806 | $ | 17,841 | 100 | % | |||
Valuation allowance | $ | 9 | $ | 96 | $ | 14 | $ | 20 | $ | 6 | $ | 30 | $ | 175 | 1 | % | ||||
31-Dec-13 | ||||||||||||||||||||
Credit Quality Indicator: | ||||||||||||||||||||
In good standing | 978 | $ | 2,786 | $ | 4,636 | $ | 3,364 | $ | 1,607 | $ | 1,431 | $ | 1,970 | $ | 15,794 | 98 | % | |||
Restructured(a) | 9 | 53 | 210 | 6 | - | - | 85 | 354 | 2 | |||||||||||
90 days or less delinquent | 2 | - | - | 5 | - | - | - | 5 | - | |||||||||||
>90 days delinquent or in | ||||||||||||||||||||
process of foreclosure | 6 | - | 42 | - | - | - | - | 42 | - | |||||||||||
Total(b) | 995 | $ | 2,839 | $ | 4,888 | $ | 3,375 | $ | 1,607 | $ | 1,431 | $ | 2,055 | $ | 16,195 | 100 | % | |||
Allowance for losses | $ | 10 | $ | 109 | $ | 9 | $ | 19 | $ | 3 | $ | 51 | $ | 201 | 1 | % | ||||
(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see Note 7 to the Consolidated Financial Statements in the 2013 Annual Report. | ||||||||||||||||||||
(b) Does not reflect valuation allowances. | ||||||||||||||||||||
(c) Over 99 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest. | ||||||||||||||||||||
Schedule of changes in the allowance for losses on Mortgage and other loans receivable | ' | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Nine Months Ended September 30, | Commercial | Other | Commercial | Other | ||||||||||||||||
(in millions) | Mortgages | Loans | Total | Mortgages | Loans | Total | ||||||||||||||
Allowance, beginning of year | $ | 201 | $ | 111 | $ | 312 | $ | 159 | $ | 246 | $ | 405 | ||||||||
Loans charged off | -10 | -13 | -23 | -5 | -37 | -42 | ||||||||||||||
Recoveries of loans previously charged off | - | 16 | 16 | 3 | 6 | 9 | ||||||||||||||
Net charge-offs | -10 | 3 | -7 | -2 | -31 | -33 | ||||||||||||||
Provision for loan losses | -16 | -6 | -22 | 47 | -16 | 31 | ||||||||||||||
Other | - | 1 | 1 | -1 | -4 | -5 | ||||||||||||||
Allowance, end of period | $ | 175* | $ | 109 | $ | 284 | $ | 203* | $ | 195 | $ | 398 | ||||||||
* Of the total allowance at the end of the period, $86 million and $102 million relates to individually assessed credit losses on $246 million and $267 million of commercial mortgage loans at September 30, 2014 and 2013, respectively. |
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
VARIABLE INTEREST ENTITIES | ' | ||||||||||||
Schedule of Consolidated Variable Interest Entities | ' | ||||||||||||
(in millions) | Real Estate and Investment Funds(e) | Securitization Vehicles | Structured Investment Vehicles | Affordable Housing Partnerships | Other | Total | |||||||
30-Sep-14 | |||||||||||||
Assets: | |||||||||||||
Bonds available for sale | $ | - | $ | 11,320 | $ | - | $ | - | $ | 41 | $ | 11,361 | |
Other bond securities | - | 7,375 | 662 | - | 44 | 8,081 | |||||||
Mortgage and other loans receivable | - | 2,460 | - | - | 168 | 2,628 | |||||||
Other invested assets | 586 | - | - | 1,725 | 705 | 3,016 | |||||||
Other (a) | 41 | 697 | 90 | 46 | 561 | 1,435 | |||||||
Total assets(b)(c) | $ | 627 | $ | 21,852 | $ | 752 | $ | 1,771 | $ | 1,519 | $ | 26,521 | |
Liabilities: | |||||||||||||
Long-term debt | $ | 69 | $ | 1,371 | $ | 91 | $ | 184 | $ | 73 | $ | 1,788 | |
Other (d) | 32 | 91 | - | 88 | 201 | 412 | |||||||
Total liabilities | $ | 101 | $ | 1,462 | $ | 91 | $ | 272 | $ | 274 | $ | 2,200 | |
31-Dec-13 | |||||||||||||
Assets: | |||||||||||||
Bonds available for sale | $ | - | $ | 11,028 | $ | - | $ | - | $ | 70 | $ | 11,098 | |
Other bond securities | - | 7,449 | 748 | - | 113 | 8,310 | |||||||
Mortgage and other loans receivable | - | 1,508 | - | - | 189 | 1,697 | |||||||
Other invested assets | 849 | - | - | 1,986 | 793 | 3,628 | |||||||
Other (a) | 49 | 481 | 93 | 41 | 615 | 1,279 | |||||||
Total assets(b)(c) | $ | 898 | $ | 20,466 | $ | 841 | $ | 2,027 | $ | 1,780 | $ | 26,012 | |
Liabilities: | |||||||||||||
Long-term debt | $ | 71 | $ | 494 | $ | 87 | $ | 188 | $ | 154 | $ | 994 | |
Other(d) | 31 | 74 | - | 83 | 367 | 555 | |||||||
Total liabilities | $ | 102 | $ | 568 | $ | 87 | $ | 271 | $ | 521 | $ | 1,549 | |
(a) Comprised primarily of Short-term investments, Premiums and other receivables and Other assets at both September 30, 2014 and December 31, 2013. | |||||||||||||
(b) The assets of each VIE can be used only to settle specific obligations of that VIE. | |||||||||||||
(c) At September 30, 2014 and December 31, 2013, includes approximately $21.7 billion and $21.4 billion, respectively, of investment-grade debt securities, loans and other assets held by certain securitization vehicles that issued beneficial interests in these investments. The majority of the beneficial interests issued are held by AIG. | |||||||||||||
(d) Comprised primarily of Other liabilities and Derivative liabilities, at fair value, at both September 30, 2014 and December 31, 2013. | |||||||||||||
(e) At September 30, 2014 and December 31, 2013, off-balance sheet exposure, primarily consisting of commitments to real estate and investment funds, was $60.2 million and $50.8 million, respectively. | |||||||||||||
Schedule of Unconsolidated Variable Interest Entities | ' | ||||||||||||
Maximum Exposure to Loss | |||||||||||||
Total VIE | On-Balance | Off-Balance | |||||||||||
(in millions) | Assets | Sheet* | Sheet | Total | |||||||||
30-Sep-14 | |||||||||||||
Real estate and investment funds | $ | 20,228 | $ | 2,741 | $ | 421 | $ | 3,162 | |||||
Affordable housing partnerships | 438 | 438 | - | 438 | |||||||||
Other | 615 | 31 | - | 31 | |||||||||
Total | $ | 21,281 | $ | 3,210 | $ | 421 | $ | 3,631 | |||||
31-Dec-13 | |||||||||||||
Real estate and investment funds | $ | 17,572 | $ | 2,343 | $ | 289 | $ | 2,632 | |||||
Affordable housing partnerships | 478 | 477 | - | 477 | |||||||||
Other | 708 | 37 | - | 37 | |||||||||
Total | $ | 18,758 | $ | 2,857 | $ | 289 | $ | 3,146 | |||||
* At September 30, 2014 and December 31, 2013, $3.2 billion and $2.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. |
DERIVATIVES_AND_HEDGE_ACCOUNTI1
DERIVATIVES AND HEDGE ACCOUNTING (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
DERIVATIVES AND HEDGE ACCOUNTING | ' | |||||||||||||||||||
Notional amounts and fair values of derivative instruments | ' | |||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||
Gross Derivative Assets | Gross Derivative Liabilities | Gross Derivative Assets | Gross Derivative Liabilities | |||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | |||||||||||||
(in millions) | Amount | Value(a) | Amount | Value(a) | Amount | Value(a) | Amount | Value(a) | ||||||||||||
Derivatives designated as | ||||||||||||||||||||
hedging instruments: | ||||||||||||||||||||
Interest rate contracts | $ | - | $ | - | $ | 25 | $ | 1 | $ | - | $ | - | $ | 112 | $ | 15 | ||||
Foreign exchange contracts | 327 | 12 | 1,645 | 164 | - | - | 1,857 | 190 | ||||||||||||
Equity contracts | 99 | 1 | 8 | 1 | - | - | - | - | ||||||||||||
Derivatives not designated | ||||||||||||||||||||
as hedging instruments: | ||||||||||||||||||||
Interest rate contracts | 47,090 | 2,823 | 37,613 | 2,783 | 50,897 | 3,771 | 59,585 | 3,849 | ||||||||||||
Foreign exchange contracts | 13,965 | 1,052 | 9,456 | 1,339 | 1,774 | 52 | 3,789 | 129 | ||||||||||||
Equity contracts(b) | 8,373 | 220 | 38,420 | 1,113 | 29,296 | 413 | 9,840 | 524 | ||||||||||||
Commodity contracts | 15 | - | 12 | 5 | 17 | 1 | 13 | 5 | ||||||||||||
Credit contracts | 30 | 20 | 5,688 | 1,038 | 70 | 55 | 15,459 | 1,335 | ||||||||||||
Other contracts(c) | 35,169 | 34 | 636 | 89 | 32,440 | 34 | 1,408 | 167 | ||||||||||||
Total derivatives not | ||||||||||||||||||||
designated as hedging | ||||||||||||||||||||
instruments | 104,642 | 4,149 | 91,825 | 6,367 | 114,494 | 4,326 | 90,094 | 6,009 | ||||||||||||
Total derivatives, gross | $ | 105,068 | $ | 4,162 | $ | 93,503 | $ | 6,533 | $ | 114,494 | $ | 4,326 | $ | 92,063 | $ | 6,214 | ||||
(a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. | ||||||||||||||||||||
(b) Notional amount of derivative assets and fair value of derivative assets were both zero at September 30, 2014 and were $23.2 billion and $107 million at December 31, 2013, respectively, related to bifurcated embedded derivatives. Notional amount of derivative liabilities and fair value of derivative liabilities include $35.6 billion and $1.0 billion, respectively, at September 30, 2014, and $6.7 billion and $424 million, respectively, at December 31, 2013, related to bifurcated embedded derivatives. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. | ||||||||||||||||||||
(c) Consists primarily of contracts with multiple underlying exposures. | ||||||||||||||||||||
Fair values of derivative assets and liabilities in the Condensed Consolidated Balance Sheets | ' | |||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | |||||||||||||
(in millions) | Amount | Value | Amount | Value | Amount | Value | Amount | Value | ||||||||||||
Global Capital Markets derivatives: | ||||||||||||||||||||
AIG Financial Products | $ | 30,619 | $ | 2,331 | $ | 28,650 | $ | 3,020 | $ | 41,942 | $ | 2,567 | $ | 52,679 | $ | 3,506 | ||||
AIG Markets | 25,142 | 1,308 | 20,959 | 1,798 | 12,531 | 964 | 23,716 | 1,506 | ||||||||||||
Total Global Capital Markets derivatives | 55,761 | 3,639 | 49,609 | 4,818 | 54,473 | 3,531 | 76,395 | 5,012 | ||||||||||||
Non-Global Capital Markets derivatives(a) | 49,307 | 523 | 43,894 | 1,715 | 60,021 | 795 | 15,668 | 1,202 | ||||||||||||
Total derivatives, gross | $ | 105,068 | 4,162 | $ | 93,503 | 6,533 | $ | 114,494 | 4,326 | $ | 92,063 | 6,214 | ||||||||
Counterparty netting(b) | -1,769 | -1,769 | -1,734 | -1,734 | ||||||||||||||||
Cash collateral(c) | -805 | -1,186 | -820 | -1,484 | ||||||||||||||||
Total derivatives, net | 1,588 | 3,578 | 1,772 | 2,996 | ||||||||||||||||
Less: Bifurcated embedded derivatives | - | 1,076 | 107 | 485 | ||||||||||||||||
Total derivatives on consolidated | ||||||||||||||||||||
balance sheet | $ | 1,588 | $ | 2,502 | $ | 1,665 | $ | 2,511 | ||||||||||||
(a) Represents derivatives used to hedge the foreign currency and interest rate risk associated with insurance as well as embedded derivatives included in insurance contracts. Assets and liabilities include bifurcated embedded derivatives which are recorded in Policyholder contract deposits. | ||||||||||||||||||||
(b) Represents netting of derivative exposures covered by a qualifying master netting agreement. | ||||||||||||||||||||
(c) 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 | ' | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||
Gain recognized in earnings on derivatives(a) | $ | - | $ | 2 | $ | 2 | $ | 2 | ||||||||||||
Gain recognized in earnings on hedged items(b) | 10 | 17 | 85 | 70 | ||||||||||||||||
Foreign exchange contracts:(c) | ||||||||||||||||||||
Loss recognized in earnings on derivatives(d) | -76 | -21 | -20 | -61 | ||||||||||||||||
Gain recognized in earnings on hedged items(e) | 97 | 19 | 37 | 66 | ||||||||||||||||
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | 9 | -2 | -3 | 5 | ||||||||||||||||
Equity contracts:(f) | ||||||||||||||||||||
Gain (loss) recognized in earnings on derivatives | 4 | - | -10 | - | ||||||||||||||||
Gain (loss) recognized in earnings on hedged items | -6 | - | 8 | - | ||||||||||||||||
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | -2 | - | -2 | - | ||||||||||||||||
(a) Includes gains of $1 million recorded in Interest credited to policyholder account balances and $1 million recorded in Net realized capital gains (losses) for the nine-month period ended September 30, 2014. | ||||||||||||||||||||
(b) Includes gains of $10 million and $17 million for the three-month periods ended September 30, 2014 and 2013, respectively, and $37 million and $72 million for the nine-month periods ended September 30, 2014 and 2013, respectively, representing the amortization of debt basis adjustment recorded in Other income and Net realized capital gains (losses) following the discontinuation of hedge accounting. Also includes gains of $50 million for the nine-month period ended September 30, 2014, recorded in Loss on extinguishment of debt, representing the release of debt basis following the repurchase of issued debt that was part of previously discontinued hedge accounting relationships. | ||||||||||||||||||||
(c) Gains and losses recognized in earnings for the ineffective portion and amounts excluded from effectiveness testing, if any, are recorded in Net realized capital gains (losses). | ||||||||||||||||||||
(d) Includes gains of $1 million recorded in Interest credited to policyholder account balances for the three- and nine-month periods ended September 30, 2014. All other gains and losses are recorded in Net realized capital gains (losses). | ||||||||||||||||||||
(e) Includes gains of $14 million and $22 million for the three- and nine-month periods ended September 30, 2014, respectively, representing the amortization of debt basis adjustment recorded in Other income and Net realized capital gains (losses) following the discontinuation of hedge accounting. Also includes losses of $2 million and $3 million for the three- and nine-month periods ended September 30, 2014, respectively, in Interest credited to policyholder account balances. All other gains and losses are recorded in Net realized capital gains (losses). | ||||||||||||||||||||
(f) Gains and losses recognized in earnings are recorded in Net realized capital gains (losses). | ||||||||||||||||||||
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) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
By Derivative Type: | ||||||||||||||||||||
Interest rate contracts | $ | 222 | $ | 35 | $ | 409 | $ | -250 | ||||||||||||
Foreign exchange contracts | 253 | -83 | 276 | 64 | ||||||||||||||||
Equity contracts* | -151 | 158 | -562 | 670 | ||||||||||||||||
Commodity contracts | -2 | -1 | -1 | -3 | ||||||||||||||||
Credit contracts | 75 | 52 | 229 | 365 | ||||||||||||||||
Other contracts | 44 | 14 | 83 | 74 | ||||||||||||||||
Total | $ | 441 | $ | 175 | $ | 434 | $ | 920 | ||||||||||||
By Classification: | ||||||||||||||||||||
Policy fees | $ | 74 | $ | 56 | $ | 210 | $ | 149 | ||||||||||||
Net investment income | 43 | -7 | 69 | 22 | ||||||||||||||||
Net realized capital gains (losses) | 13 | 200 | -302 | 200 | ||||||||||||||||
Other income (losses) | 309 | -71 | 447 | 560 | ||||||||||||||||
Policyholder benefits and claims incurred | 2 | -3 | 10 | -11 | ||||||||||||||||
Total | $ | 441 | $ | 175 | $ | 434 | $ | 920 | ||||||||||||
* Includes embedded derivative losses of $64 million and $406 million for the three- and nine-month periods ended September 30, 2014, respectively, and embedded derivative gains of $266 million and $1.0 billion for the three- and nine-month periods ended September 30, 2013, respectively. | ||||||||||||||||||||
Net notional amount (net of all structural subordination below the covered tranches), fair value of derivative (asset) liability before the effects of counterparty netting adjustments and offsetting cash collateral and unrealized market valuation gain (loss) of the super senior credit default swap portfolio by asset class | ' | |||||||||||||||||||
Fair Value of | Unrealized Market | |||||||||||||||||||
Net Notional Amount at | Derivative Liability at | Valuation Gain | ||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Arbitrage: | ||||||||||||||||||||
Multi-sector CDOs(a) | 2,769 | 3,257 | 989 | 1,249 | 63 | 49 | 201 | 330 | ||||||||||||
Corporate debt/CLOs(b)(c) | 2,715 | 11,832 | 6 | 28 | 12 | 5 | 22 | 26 | ||||||||||||
Total | $ | 5,484 | $ | 15,089 | $ | 995 | $ | 1,277 | $ | 75 | $ | 54 | $ | 223 | $ | 356 | ||||
(a) During the nine-month period ended September 30, 2014, we paid $59 million to counterparties with respect to multi-sector CDOs, which was previously included in the fair value of the derivative liability as an unrealized market valuation loss. Collateral postings with regards to multi-sector CDOs were $899 million and $1.1 billion at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
(b) Corporate debt/Collateralized Loan Obligations (CLOs) include $790 million and $1.0 billion in net notional amount of credit default swaps written on the super senior tranches of CLOs at September 30, 2014 and December 31, 2013, respectively. Collateral postings with regards to Corporate debt/CLOs were $182 million and $353 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
(c) On July 17, 2014, GCM terminated Corporate Debt Super Senior CDSs with a notional amount of $8.8 billion. |
EQUITY_Tables
EQUITY (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
EQUITY | ' | ||||||||||
Rollforward of common stock outstanding | ' | ||||||||||
Common | Treasury | Common Stock | |||||||||
Stock Issued | Stock | Outstanding | |||||||||
Nine Months Ended September 30, 2014 | |||||||||||
Shares, beginning of year | 1,906,645,689 | -442,582,366 | 1,464,063,323 | ||||||||
Shares issued | 25,803 | 1,143 | 26,946 | ||||||||
Shares repurchased | - | -60,317,318 | -60,317,318 | ||||||||
Shares, end of period | 1,906,671,492 | -502,898,541 | 1,403,772,951 | ||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Recognized | |||||||||||
Unrealized Appreciation (Depreciation) of All Other Investments | Foreign Currency Translation Adjustments | Change in Retirement Plan Liabilities Adjustment | |||||||||
(in millions) | Total | ||||||||||
Balance, December 31, 2013, net of tax | $ | 936 | $ | 6,789 | $ | -952 | $ | -413 | $ | 6,360 | |
Change in unrealized appreciation of investments | 268 | 6,330 | - | - | 6,598 | ||||||
Change in deferred acquisition costs adjustment and other | 61 | -433 | - | - | -372 | ||||||
Change in future policy benefits | -114 | -781 | - | - | -895 | ||||||
Change in foreign currency translation adjustments | - | - | -149 | - | -149 | ||||||
Net actuarial gain | - | - | - | 40 | 40 | ||||||
Prior service cost | - | - | - | -36 | -36 | ||||||
Change in deferred tax asset (liability) | -41 | -144 | -40 | 9 | -216 | ||||||
Total other comprehensive income (loss) | 174 | 4,972 | -189 | 13 | 4,970 | ||||||
Noncontrolling interests | - | -1 | - | - | -1 | ||||||
Balance, September 30, 2014, net of tax | $ | 1,110 | $ | 11,762 | $ | -1,141 | $ | -400 | $ | 11,331 | |
Balance, December 31, 2012, net of tax | $ | 575 | $ | 13,446 | $ | -403 | $ | -1,044 | $ | 12,574 | |
Change in unrealized appreciation (depreciation) of investments | 314 | -13,048 | - | - | -12,734 | ||||||
Change in deferred acquisition costs adjustment and other | -108 | 939 | - | - | 831 | ||||||
Change in future policy benefits | 80 | 2,727 | - | - | 2,807 | ||||||
Change in foreign currency translation adjustments | - | - | -709 | - | -709 | ||||||
Net actuarial gain | - | - | - | 94 | 94 | ||||||
Prior service cost | - | - | - | -39 | -39 | ||||||
Change in deferred tax asset (liability) | -114 | 3,714 | 82 | -20 | 3,662 | ||||||
Total other comprehensive income (loss) | 172 | -5,668 | -627 | 35 | -6,088 | ||||||
Noncontrolling interests | - | -16 | -7 | - | -23 | ||||||
Balance, September 30, 2013, net of tax | $ | 747 | $ | 7,794 | $ | -1,023 | $ | -1,009 | $ | 6,509 | |
Other comprehensive income (loss) reclassification adjustments | ' | ||||||||||
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Recognized | |||||||||||
Unrealized Appreciation (Depreciation) of All Other Investments | Foreign Currency Translation Adjustments | Change in Retirement Plan Liabilities Adjustment | |||||||||
(in millions) | Total | ||||||||||
Three Months Ended September 30, 2014 | |||||||||||
Unrealized change arising during period | $ | 132 | $ | -575 | $ | -120 | $ | -8 | $ | -571 | |
Less: Reclassification adjustments | |||||||||||
included in net income | 9 | 12 | - | 1 | 22 | ||||||
Total other comprehensive income (loss), | |||||||||||
before income tax expense (benefit) | 123 | -587 | -120 | -9 | -593 | ||||||
Less: Income tax expense (benefit) | 64 | -419 | -42 | -15 | -412 | ||||||
Total other comprehensive income (loss), | |||||||||||
net of income tax expense (benefit) | $ | 59 | $ | -168 | $ | -78 | $ | 6 | $ | -181 | |
Three Months Ended September 30, 2013 | |||||||||||
Unrealized change arising during period | $ | -30 | $ | -652 | $ | -143 | $ | -44 | $ | -869 | |
Less: Reclassification adjustments | |||||||||||
included in net income | 1 | 219 | - | -22 | 198 | ||||||
Total other comprehensive loss, | |||||||||||
before income tax benefit | -31 | -871 | -143 | -22 | -1,067 | ||||||
Less: Income tax expense (benefit) | -8 | -437 | -94 | 4 | -535 | ||||||
Total other comprehensive loss, | |||||||||||
net of income tax expense (benefit) | $ | -23 | $ | -434 | $ | -49 | $ | -26 | $ | -532 | |
Nine Months Ended September 30, 2014 | |||||||||||
Unrealized change arising during period | $ | 242 | $ | 5,522 | $ | -149 | $ | 3 | $ | 5,618 | |
Less: Reclassification adjustments | |||||||||||
included in net income | 27 | 406 | - | -1 | 432 | ||||||
Total other comprehensive income (loss), | |||||||||||
before income tax expense (benefit) | 215 | 5,116 | -149 | 4 | 5,186 | ||||||
Less: Income tax expense (benefit) | 41 | 144 | 40 | -9 | 216 | ||||||
Total other comprehensive income (loss), | |||||||||||
net of income tax expense (benefit) | $ | 174 | $ | 4,972 | $ | -189 | $ | 13 | $ | 4,970 | |
Nine Months Ended September 30, 2013 | |||||||||||
Unrealized change arising during period | $ | 342 | $ | -8,784 | $ | -709 | $ | -18 | $ | -9,169 | |
Less: Reclassification adjustments | |||||||||||
included in net income | 56 | 598 | - | -73 | 581 | ||||||
Total other comprehensive income (loss), | |||||||||||
before income tax expense (benefit) | 286 | -9,382 | -709 | 55 | -9,750 | ||||||
Less: Income tax expense (benefit) | 114 | -3,714 | -82 | 20 | -3,662 | ||||||
Total other comprehensive income (loss), | |||||||||||
net of income tax expense (benefit) | $ | 172 | $ | -5,668 | $ | -627 | $ | 35 | $ | -6,088 | |
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 Consolidated Statements of Income | ||||||||||
Three Months Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | |||||||||
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized | |||||||||||
Investments | $ | 9 | $ | 1 | Other realized capital gains | ||||||
Total | 9 | 1 | - | ||||||||
Unrealized appreciation (depreciation) of all other investments | |||||||||||
Investments | 117 | 501 | Other realized capital gains | ||||||||
Deferred acquisition costs adjustment | -40 | -39 | Amortization of deferred acquisition costs | ||||||||
Future policy benefits | -65 | -243 | Policyholder benefits and claims incurred | ||||||||
Total | 12 | 219 | |||||||||
Change in retirement plan liabilities adjustment | |||||||||||
Prior-service costs | 11 | 13 | * | ||||||||
Actuarial gains/(losses) | -10 | -35 | * | ||||||||
Total | 1 | -22 | |||||||||
Total reclassifications for the period | $ | 22 | $ | 198 | |||||||
Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||||
Nine Months Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | |||||||||
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized | |||||||||||
Investments | $ | 27 | $ | 56 | Other realized capital gains | ||||||
Total | 27 | 56 | |||||||||
Unrealized appreciation (depreciation) of all other investments | |||||||||||
Investments | 528 | 2,093 | Other realized capital gains | ||||||||
Deferred acquisition costs adjustment | -35 | -33 | Amortization of deferred acquisition costs | ||||||||
Future policy benefits | -87 | -1,462 | Policyholder benefits and claims incurred | ||||||||
Total | 406 | 598 | |||||||||
Change in retirement plan liabilities adjustment | |||||||||||
Prior-service costs | 35 | 35 | * | ||||||||
Actuarial gains/(losses) | -36 | -108 | * | ||||||||
Total | -1 | -73 | - | ||||||||
Total reclassifications for the period | $ | 432 | $ | 581 | - | ||||||
* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 14 to the Condensed Consolidated Financial Statements. |
NONCONTROLLING_INTERESTS_Table
NONCONTROLLING INTERESTS (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
NONCONTROLLING INTERESTS | ' | |||||
Rollforward of noncontrolling interests | ' | |||||
Redeemable | Non-redeemable | |||||
Noncontrolling | Noncontrolling | |||||
(in millions) | Interests | Interests | ||||
Nine Months Ended September 30, 2014 | ||||||
Balance, beginning of year | $ | 30 | $ | 611 | ||
Contributions from noncontrolling interests | 1 | 13 | ||||
Distributions to noncontrolling interests | - | -78 | ||||
Deconsolidation | -31 | -123 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | - | -25 | ||||
Unrealized losses on investments | - | -1 | ||||
Total other comprehensive | ||||||
income (loss), net of tax | - | -1 | ||||
Total comprehensive income (loss) | - | -26 | ||||
Other | - | 5 | ||||
Balance, end of period | $ | - | $ | 402 | ||
Nine Months Ended September 30, 2013 | ||||||
Balance, beginning of year | $ | 334 | $ | 667 | ||
Contributions from noncontrolling interests | 48 | 25 | ||||
Distributions to noncontrolling interests | -153 | -37 | ||||
Consolidation (deconsolidation) | -146 | 1 | ||||
Comprehensive income (loss): | ||||||
Net income | - | 12 | ||||
Unrealized losses on investments | -15 | - | ||||
Foreign currency translation adjustments | -2 | -6 | ||||
Total other comprehensive | ||||||
loss, net of tax | -17 | -6 | ||||
Total comprehensive income (loss) | -17 | 6 | ||||
Other | - | -6 | ||||
Balance, end of period | $ | 66 | $ | 656 |
EARNINGS_PER_SHARE_EPS_Tables
EARNINGS PER SHARE (EPS) (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
EARNINGS PER SHARE (EPS) | ' | |||||||||
Computation of basic and diluted EPS | ' | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
(dollars in millions, except per share data) | 2014 | 2013 | 2014 | 2013 | ||||||
Numerator for EPS: | ||||||||||
Income from continuing operations | $ | 2,199 | $ | 2,148 | $ | 6,864 | $ | 7,046 | ||
Less: Net income (loss) from continuing operations attributable to noncontrolling interests | 9 | -40 | -25 | 12 | ||||||
Income attributable to AIG common shareholders from continuing operations | 2,190 | 2,188 | 6,889 | 7,034 | ||||||
Income (loss) from discontinued operations, net of income tax expense | 2 | -18 | -15 | 73 | ||||||
Net income attributable to AIG common shareholders | 2,192 | 2,170 | 6,874 | 7,107 | ||||||
Denominator for EPS: | ||||||||||
Weighted average shares outstanding - basic | 1,419,239,774 | 1,475,053,126 | 1,440,148,774 | 1,476,007,034 | ||||||
Dilutive shares | 22,828,068 | 10,269,732 | 19,334,459 | 5,403,839 | ||||||
Weighted average shares outstanding - diluted* | 1,442,067,842 | 1,485,322,858 | 1,459,483,233 | 1,481,410,873 | ||||||
Income per common share attributable to AIG: | ||||||||||
Basic: | ||||||||||
Income from continuing operations | $ | 1.54 | $ | 1.48 | $ | 4.78 | $ | 4.77 | ||
Income (loss) from discontinued operations | $ | - | $ | -0.01 | $ | -0.01 | $ | 0.05 | ||
Net income attributable to AIG | $ | 1.54 | $ | 1.47 | $ | 4.77 | $ | 4.82 | ||
Diluted: | ||||||||||
Income from continuing operations | $ | 1.52 | $ | 1.47 | $ | 4.72 | $ | 4.75 | ||
Income (loss) from discontinued operations | $ | - | $ | -0.01 | $ | -0.01 | $ | 0.05 | ||
Net income attributable to AIG | $ | 1.52 | $ | 1.46 | $ | 4.71 | $ | 4.8 | ||
* Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans, a weighted average portion of the warrants issued to AIG shareholders as part of the recapitalization in January 2011 and a weighted average portion of the warrants issued to the Department of the Treasury in 2009 that we repurchased in the first quarter of 2013. The number of shares excluded from diluted shares outstanding was 0.3 million for both the three- and nine-month periods ended September 30, 2014, and 0.4 million and 51 million for the three- and nine-month periods ended September 30, 2013, respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
EMPLOYEE_BENEFITS_Tables
EMPLOYEE BENEFITS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EMPLOYEE BENEFITS | ' | |||||||||||||
Components of net periodic benefit cost | ' | |||||||||||||
Pension | Postretirement | |||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||
(in millions) | Plans | Plans | Total | Plans | Plans | Total | ||||||||
Three Months Ended September 30, 2014 | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 42 | $ | 11 | $ | 53 | $ | 1 | $ | - | $ | 1 | ||
Interest cost | 57 | 7 | 64 | 2 | 1 | 3 | ||||||||
Expected return on assets | -73 | -6 | -79 | - | - | - | ||||||||
Amortization of prior service (credit) cost | -8 | -1 | -9 | -3 | - | -3 | ||||||||
Amortization of net (gain) loss | 9 | 2 | 11 | - | - | - | ||||||||
Net periodic benefit cost | $ | 27 | $ | 13 | $ | 40 | $ | - | $ | 1 | $ | 1 | ||
Three Months Ended September 30, 2013 | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 71 | $ | 12 | $ | 83 | $ | 1 | $ | 1 | $ | 2 | ||
Interest cost | 53 | 7 | 60 | 2 | - | 2 | ||||||||
Expected return on assets | -64 | -4 | -68 | - | - | - | ||||||||
Amortization of prior service (credit) cost | -8 | -1 | -9 | -3 | - | -3 | ||||||||
Amortization of net (gain) loss | 40 | 3 | 43 | -1 | - | -1 | ||||||||
Net periodic benefit cost | $ | 92 | $ | 17 | $ | 109 | $ | -1 | $ | 1 | $ | - | ||
Nine Months Ended September 30, 2014 | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 130 | $ | 32 | $ | 162 | $ | 3 | $ | 1 | $ | 4 | ||
Interest cost | 171 | 22 | 193 | 7 | 2 | 9 | ||||||||
Expected return on assets | -215 | -17 | -232 | - | - | - | ||||||||
Amortization of prior service (credit) cost | -25 | -2 | -27 | -8 | - | -8 | ||||||||
Amortization of net (gain) loss | 31 | 6 | 37 | - | - | - | ||||||||
Net periodic benefit cost | $ | 92 | $ | 41 | $ | 133 | $ | 2 | $ | 3 | $ | 5 | ||
Nine Months Ended September 30, 2013 | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 159 | $ | 36 | $ | 195 | $ | 4 | $ | 3 | $ | 7 | ||
Interest cost | 151 | 22 | 173 | 6 | 1 | 7 | ||||||||
Expected return on assets | -193 | -14 | -207 | - | - | - | ||||||||
Amortization of prior service (credit) cost | -25 | -2 | -27 | -8 | - | -8 | ||||||||
Amortization of net (gain) loss | 106 | 9 | 115 | - | - | - | ||||||||
Net periodic benefit cost | $ | 198 | $ | 51 | $ | 249 | $ | 2 | $ | 4 | $ | 6 |
INFORMATION_PROVIDED_IN_CONNEC1
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | ' | ||||||||||
Condensed Consolidating Balance Sheets | ' | ||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
30-Sep-14 | |||||||||||
Assets: | |||||||||||
Short-term investments | $ | 9,290 | $ | - | $ | 8,930 | $ | -368 | $ | 17,852 | |
Other investments(a) | 11,785 | - | 336,797 | - | 348,582 | ||||||
Total investments | 21,075 | - | 345,727 | -368 | 366,434 | ||||||
Cash | 112 | 9 | 1,812 | - | 1,933 | ||||||
Loans to subsidiaries(b) | 33,081 | - | 630 | -33,711 | - | ||||||
Investment in consolidated subsidiaries(b) | 67,156 | 38,647 | - | -105,803 | - | ||||||
Other assets, including deferred income taxes | 23,939 | 725 | 138,999 | -4,840 | 158,823 | ||||||
Total assets | $ | 145,363 | $ | 39,381 | $ | 487,168 | $ | -144,722 | $ | 527,190 | |
Liabilities: | |||||||||||
Insurance liabilities | $ | - | $ | - | $ | 273,262 | $ | - | $ | 273,262 | |
Long-term debt | 25,613 | 1,132 | 9,478 | - | 36,223 | ||||||
Other liabilities, including intercompany balances(a)(c) | 9,852 | 708 | 103,401 | -5,239 | 108,722 | ||||||
Loans from subsidiaries(b) | 1,317 | - | 32,475 | -33,792 | - | ||||||
Total liabilities | 36,782 | 1,840 | 418,616 | -39,031 | 418,207 | ||||||
Redeemable noncontrolling interests (see Note 12) | - | - | - | - | - | ||||||
Total AIG shareholders’ equity | 108,581 | 37,541 | 68,150 | -105,691 | 108,581 | ||||||
Non-redeemable noncontrolling interests | - | - | 402 | - | 402 | ||||||
Total equity | 108,581 | 37,541 | 68,552 | -105,691 | 108,983 | ||||||
Total liabilities and equity | $ | 145,363 | $ | 39,381 | $ | 487,168 | $ | -144,722 | $ | 527,190 | |
31-Dec-13 | |||||||||||
Assets: | |||||||||||
Short-term investments | $ | 11,965 | $ | - | $ | 11,404 | $ | -1,752 | $ | 21,617 | |
Other investments(a) | 7,561 | - | 327,250 | - | 334,811 | ||||||
Total investments | 19,526 | - | 338,654 | -1,752 | 356,428 | ||||||
Cash | 30 | 51 | 2,160 | - | 2,241 | ||||||
Loans to subsidiaries(b) | 31,220 | - | 854 | -32,074 | - | ||||||
Investment in consolidated subsidiaries(b) | 66,201 | 39,103 | - | -105,304 | - | ||||||
Other assets, including deferred income taxes | 21,606 | 112 | 132,492 | -1,086 | 153,124 | ||||||
Assets held for sale | - | - | 29,536 | - | 29,536 | ||||||
Total assets | $ | 138,583 | $ | 39,266 | $ | 503,696 | $ | -140,216 | $ | 541,329 | |
Liabilities: | |||||||||||
Insurance liabilities | $ | - | $ | - | $ | 271,252 | $ | - | $ | 271,252 | |
Long-term debt | 30,839 | 1,352 | 9,502 | - | 41,693 | ||||||
Other liabilities, including intercompany balances(a)(c) | 6,422 | 161 | 98,908 | -2,766 | 102,725 | ||||||
Loans from subsidiaries(b) | 852 | 200 | 31,173 | -32,225 | - | ||||||
Liabilities held for sale | - | - | 24,548 | - | 24,548 | ||||||
Total liabilities | 38,113 | 1,713 | 435,383 | -34,991 | 440,218 | ||||||
Redeemable noncontrolling interests (see Note 12) | - | - | 30 | - | 30 | ||||||
Total AIG shareholders’ equity | 100,470 | 37,553 | 67,672 | -105,225 | 100,470 | ||||||
Non-redeemable noncontrolling interests | - | - | 611 | - | 611 | ||||||
Total equity | 100,470 | 37,553 | 68,283 | -105,225 | 101,081 | ||||||
Total liabilities and equity | $ | 138,583 | $ | 39,266 | $ | 503,696 | $ | -140,216 | $ | 541,329 | |
(a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment. | |||||||||||
(b) Eliminated in consolidation. | |||||||||||
(c) For September 30, 2014 and December 31, 2013, includes intercompany tax payable of $3.3 billion and $1.4 billion, respectively, and intercompany derivative liabilities of $302 million and $249 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivable of $83 million and $98 million, respectively, for AIGLH. | |||||||||||
Condensed Consolidating Statements of Income (loss) | ' | ||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Three Months Ended September 30, 2014 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 2,661 | $ | 1,315 | $ | - | $ | -3,976 | $ | - | |
Other income | 615 | - | 16,118 | -79 | 16,654 | ||||||
Total revenues | 3,276 | 1,315 | 16,118 | -4,055 | 16,654 | ||||||
Expenses: | |||||||||||
Interest expense | 378 | 22 | 62 | -32 | 430 | ||||||
Loss on extinguishment of debt | 682 | - | 60 | - | 742 | ||||||
Other expenses | 284 | 61 | 12,153 | -35 | 12,463 | ||||||
Total expenses | 1,344 | 83 | 12,275 | -67 | 13,635 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 1,932 | 1,232 | 3,843 | -3,988 | 3,019 | ||||||
Income tax expense (benefit) | -261 | -33 | 1,117 | -3 | 820 | ||||||
Income (loss) from continuing operations | 2,193 | 1,265 | 2,726 | -3,985 | 2,199 | ||||||
Income (loss) from discontinued operations, net of income taxes | -1 | - | 3 | - | 2 | ||||||
Net income (loss) | 2,192 | 1,265 | 2,729 | -3,985 | 2,201 | ||||||
Less: | |||||||||||
Net income from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | 9 | - | 9 | ||||||
Net income (loss) attributable to AIG | $ | 2,192 | $ | 1,265 | $ | 2,720 | $ | -3,985 | $ | 2,192 | |
Three Months Ended September 30, 2013 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 1,992 | $ | 1,368 | $ | - | $ | -3,360 | $ | - | |
Other income | 64 | 1 | 15,984 | -105 | 15,944 | ||||||
Total revenues | 2,056 | 1,369 | 15,984 | -3,465 | 15,944 | ||||||
Expenses: | |||||||||||
Interest expense | 465 | 29 | 59 | -37 | 516 | ||||||
Loss on extinguishment of debt | 81 | - | - | - | 81 | ||||||
Other expenses | 668 | 3 | 13,529 | -31 | 14,169 | ||||||
Total expenses | 1,214 | 32 | 13,588 | -68 | 14,766 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 842 | 1,337 | 2,396 | -3,397 | 1,178 | ||||||
Income tax expense (benefit) | -1,328 | -13 | 384 | -13 | -970 | ||||||
Income (loss) from continuing operations | 2,170 | 1,350 | 2,012 | -3,384 | 2,148 | ||||||
Loss from discontinued operations, net of income taxes | - | - | -18 | - | -18 | ||||||
Net income (loss) | 2,170 | 1,350 | 1,994 | -3,384 | 2,130 | ||||||
Less: | |||||||||||
Net loss from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | -40 | - | -40 | ||||||
Net income (loss) attributable to AIG | $ | 2,170 | $ | 1,350 | $ | 2,034 | $ | -3,384 | $ | 2,170 | |
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Nine Months Ended September 30, 2014 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 8,149 | $ | 2,789 | $ | - | $ | -10,938 | $ | - | |
Other income | 1,094 | - | 48,040 | -263 | 48,871 | ||||||
Total revenues | 9,243 | 2,789 | 48,040 | -11,201 | 48,871 | ||||||
Expenses: | |||||||||||
Interest expense | 1,210 | 80 | 180 | -98 | 1,372 | ||||||
Loss on extinguishment of debt | 987 | - | 77 | -50 | 1,014 | ||||||
Other expenses | 1,310 | 79 | 35,439 | -115 | 36,713 | ||||||
Total expenses | 3,507 | 159 | 35,696 | -263 | 39,099 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 5,736 | 2,630 | 12,344 | -10,938 | 9,772 | ||||||
Income tax expense (benefit) | -1,137 | -54 | 4,121 | -22 | 2,908 | ||||||
Income (loss) from continuing operations | 6,873 | 2,684 | 8,223 | -10,916 | 6,864 | ||||||
Income (loss) from discontinued operations, net of income taxes | 1 | - | -16 | - | -15 | ||||||
Net income (loss) | 6,874 | 2,684 | 8,207 | -10,916 | 6,849 | ||||||
Less: | |||||||||||
Net loss from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | -25 | - | -25 | ||||||
Net income (loss) attributable to AIG | $ | 6,874 | $ | 2,684 | $ | 8,232 | $ | -10,916 | $ | 6,874 | |
Nine Months Ended September 30, 2013 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 6,257 | $ | 2,792 | $ | - | $ | -9,049 | $ | - | |
Other income | 1,031 | 1 | 50,558 | -258 | 51,332 | ||||||
Total revenues | 7,288 | 2,793 | 50,558 | -9,307 | 51,332 | ||||||
Expenses: | |||||||||||
Interest expense | 1,475 | 97 | 177 | -121 | 1,628 | ||||||
Loss on extinguishment of debt | 388 | - | 71 | - | 459 | ||||||
Other expenses | 1,261 | 74 | 40,780 | -88 | 42,027 | ||||||
Total expenses | 3,124 | 171 | 41,028 | -209 | 44,114 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 4,164 | 2,622 | 9,530 | -9,098 | 7,218 | ||||||
Income tax expense (benefit) | -2,946 | -27 | 3,162 | -17 | 172 | ||||||
Income (loss) from continuing operations | 7,110 | 2,649 | 6,368 | -9,081 | 7,046 | ||||||
Income (loss) from discontinued operations, net of income taxes | -3 | - | 76 | - | 73 | ||||||
Net income (loss) | 7,107 | 2,649 | 6,444 | -9,081 | 7,119 | ||||||
Less: | |||||||||||
Net income from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | 12 | - | 12 | ||||||
Net income (loss) attributable to AIG | $ | 7,107 | $ | 2,649 | $ | 6,432 | $ | -9,081 | $ | 7,107 | |
* Eliminated in consolidation. | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (loss) | ' | ||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Three Months Ended September 30, 2014 | |||||||||||
Net income (loss) | $ | 2,192 | $ | 1,265 | $ | 2,729 | $ | -3,985 | $ | 2,201 | |
Other comprehensive income (loss) | -180 | -259 | -1,885 | 2,143 | -181 | ||||||
Comprehensive income (loss) | 2,012 | 1,006 | 844 | -1,842 | 2,020 | ||||||
Total comprehensive income attributable to noncontrolling interests | - | - | 8 | - | 8 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 2,012 | $ | 1,006 | $ | 836 | $ | -1,842 | $ | 2,012 | |
Three Months Ended September 30, 2013 | |||||||||||
Net income (loss) | $ | 2,170 | $ | 1,350 | $ | 1,994 | $ | -3,384 | $ | 2,130 | |
Other comprehensive income (loss) | -530 | -299 | -498 | 795 | -532 | ||||||
Comprehensive income (loss) | 1,640 | 1,051 | 1,496 | -2,589 | 1,598 | ||||||
Total comprehensive loss attributable to noncontrolling interests | - | - | -42 | - | -42 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 1,640 | $ | 1,051 | $ | 1,538 | $ | -2,589 | $ | 1,640 | |
Nine Months Ended September 30, 2014 | |||||||||||
Net income (loss) | $ | 6,874 | $ | 2,684 | $ | 8,207 | $ | -10,916 | $ | 6,849 | |
Other comprehensive income (loss) | 4,971 | 2,522 | 1,848 | -4,371 | 4,970 | ||||||
Comprehensive income (loss) | 11,845 | 5,206 | 10,055 | -15,287 | 11,819 | ||||||
Total comprehensive loss attributable to noncontrolling interests | - | - | -26 | - | -26 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 11,845 | $ | 5,206 | $ | 10,081 | $ | -15,287 | $ | 11,845 | |
Nine Months Ended September 30, 2013 | |||||||||||
Net income (loss) | $ | 7,107 | $ | 2,649 | $ | 6,444 | $ | -9,081 | $ | 7,119 | |
Other comprehensive income (loss) | -6,065 | -4,289 | -6,125 | 10,391 | -6,088 | ||||||
Comprehensive income (loss) | 1,042 | -1,640 | 319 | 1,310 | 1,031 | ||||||
Total comprehensive loss attributable to noncontrolling interests | - | - | -11 | - | -11 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 1,042 | $ | -1,640 | $ | 330 | $ | 1,310 | $ | 1,042 | |
Condensed Consolidating Statements of Cash Flows | ' | ||||||||||
American | Other | ||||||||||
International | Subsidiaries | ||||||||||
Group, Inc. | and | Consolidated | |||||||||
(in millions) | (As Guarantor) | AIGLH | Eliminations | AIG | |||||||
Nine Months Ended September 30, 2014 | |||||||||||
Net cash (used in) provided by operating activities | 7,228 | 4,333 | -7,204 | 4,357 | |||||||
Cash flows from investing activities: | |||||||||||
Sales of investments | 2,032 | - | 44,529 | 46,561 | |||||||
Purchase of investments | -1,257 | - | -41,824 | -43,081 | |||||||
Loans to subsidiaries - net | -1,687 | - | 1,687 | - | |||||||
Contributions to subsidiaries - net | 77 | - | -77 | - | |||||||
Net change in restricted cash | -5 | - | -655 | -660 | |||||||
Net change in short-term investments | 2,947 | - | -605 | 2,342 | |||||||
Other, net | -61 | - | -234 | -295 | |||||||
Net cash provided by investing activities | 2,046 | - | 2,821 | 4,867 | |||||||
Cash flows from financing activities: | |||||||||||
Issuance of long-term debt | 2,489 | - | 3,338 | 5,827 | |||||||
Repayments of long-term debt | -7,368 | -165 | -4,028 | -11,561 | |||||||
Purchase of Common Stock | -3,403 | - | - | -3,403 | |||||||
Intercompany loans - net | -47 | -279 | 326 | - | |||||||
Cash dividends paid | -539 | -3,931 | 3,931 | -539 | |||||||
Other, net | -324 | - | 399 | 75 | |||||||
Net cash (used in) provided by financing activities | -9,192 | -4,375 | 3,966 | -9,601 | |||||||
Effect of exchange rate changes on cash | - | - | -19 | -19 | |||||||
Change in cash | 82 | -42 | -436 | -396 | |||||||
Cash at beginning of year | 30 | 51 | 2,160 | 2,241 | |||||||
Reclassification to assets held for sale | - | - | 88 | 88 | |||||||
Cash at end of period | $ | 112 | $ | 9 | $ | 1,812 | $ | 1,933 | |||
Nine Months Ended September 30, 2013 | |||||||||||
Net cash (used in) provided by operating activities | 3,078 | 3,082 | -2,212 | 3,948 | |||||||
Cash flows from investing activities: | |||||||||||
Sales of investments | 1,065 | - | 57,809 | 58,874 | |||||||
Purchase of investments | -4,981 | - | -55,861 | -60,842 | |||||||
Loans to subsidiaries - net | 3,491 | - | -3,491 | - | |||||||
Contributions to subsidiaries - net | -240 | -1 | 241 | - | |||||||
Net change in restricted cash | 428 | - | 823 | 1,251 | |||||||
Net change in short-term investments | 2,552 | - | 5,562 | 8,114 | |||||||
Other, net | 194 | - | -1,073 | -879 | |||||||
Net cash (used in) provided by investing activities | 2,509 | -1 | 4,010 | 6,518 | |||||||
Cash flows from financing activities: | |||||||||||
Issuance of long-term debt | 1,020 | - | 2,613 | 3,633 | |||||||
Repayments of long-term debt | -5,866 | -245 | -5,244 | -11,355 | |||||||
Intercompany loans - net | -89 | -205 | 294 | - | |||||||
Purchase of common stock | -192 | - | - | -192 | |||||||
Cash dividends paid to shareholders | -147 | -2,699 | 2,699 | -147 | |||||||
Other, net | -332 | - | -1,079 | -1,411 | |||||||
Net cash (used in) financing activities | -5,606 | -3,149 | -717 | -9,472 | |||||||
Effect of exchange rate changes on cash | - | - | -79 | -79 | |||||||
Change in cash | -19 | -68 | 1,002 | 915 | |||||||
Cash at beginning of year | 81 | 73 | 997 | 1,151 | |||||||
Change in cash of businesses held for sale | - | - | -8 | -8 | |||||||
Cash at end of period | $ | 62 | $ | 5 | $ | 1,991 | $ | 2,058 | |||
Supplementary Disclosure of Condensed Consolidating Cash Flow Information | ' | ||||||||||
American | Other | ||||||||||
International | Subsidiaries | ||||||||||
Group, Inc. | and | Consolidated | |||||||||
(in millions) | (As Guarantor) | AIGLH | Eliminations | AIG | |||||||
Cash (paid) received during the 2014 period for: | |||||||||||
Interest: | |||||||||||
Third party | $ | -1,238 | $ | -87 | $ | -1,171 | $ | -2,496 | |||
Intercompany | -1 | -7 | 8 | - | |||||||
Taxes: | |||||||||||
Income tax authorities | $ | -18 | $ | - | $ | -596 | $ | -614 | |||
Intercompany | 1,348 | - | -1,348 | - | |||||||
Cash (paid) received during the 2013 period for: | |||||||||||
Interest: | |||||||||||
Third party | $ | -1,473 | $ | -98 | $ | -1,380 | $ | -2,951 | |||
Intercompany | -9 | -21 | 30 | - | |||||||
Taxes: | |||||||||||
Income tax authorities | $ | -160 | $ | - | $ | -218 | $ | -378 | |||
Intercompany | 1,116 | -78 | -1,038 | - | |||||||
Supplementary disclosure of non-cash activities | ' | ||||||||||
Nine Months Ended September 30, | |||||||||||
(in millions) | 2014 | 2013 | |||||||||
Intercompany non-cash financing and investing activities: | |||||||||||
Capital contributions | |||||||||||
to subsidiaries through forgiveness of loans | $ | 993 | $ | 341 | |||||||
Other capital contributions - net | - | 523 |
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | 14-May-14 | 14-May-14 | 5-May-14 | Sep. 30, 2014 | 13-May-14 | Sep. 30, 2014 |
In Billions, except Share data in Millions, unless otherwise specified | International Lease Finance Corporation (ILFC) | International Lease Finance Corporation (ILFC) | Aer Cap | Aer Cap | Aer Cap | Minimum | ||
item | ||||||||
Basis of Presentation | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Countries in which the entity operates | ' | ' | ' | ' | ' | ' | ' | 130 |
Common stock, par value (in dollars per share) | $2.50 | $2.50 | ' | ' | ' | ' | ' | ' |
Percentage of common stock agreed to be sold | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Consideration in cash | ' | ' | $7.60 | ' | ' | $7.60 | ' | ' |
Closing price per share (in dollars per share) | ' | ' | ' | ' | ' | ' | $47.01 | ' |
Number of shares received | ' | ' | 97.6 | ' | 97.6 | ' | ' | ' |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
segment | ||||
Segment results | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 2 | ' |
Total revenues | $16,654 | $15,944 | $48,871 | $51,332 |
Pre-tax Income (loss) from continuing operations | 3,019 | 1,178 | 9,772 | 7,218 |
Reportable Segments | Total AIG Property Casualty | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 10,007 | 9,704 | 29,623 | 29,473 |
Pre-tax Income (loss) from continuing operations | 1,207 | 1,126 | 4,006 | 3,945 |
Reportable Segments | Total AIG Property Casualty | Operating Segments | Commercial Insurance | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 5,971 | 5,760 | 17,502 | 17,229 |
Pre-tax Income (loss) from continuing operations | 573 | 610 | 2,149 | 2,186 |
Reportable Segments | Total AIG Property Casualty | Operating Segments | Consumer Insurance | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 3,362 | 3,359 | 9,962 | 10,212 |
Pre-tax Income (loss) from continuing operations | 131 | 93 | 315 | 337 |
Reportable Segments | Total AIG Property Casualty | Other | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 674 | 585 | 2,159 | 2,032 |
Pre-tax Income (loss) from continuing operations | 503 | 423 | 1,542 | 1,422 |
Reportable Segments | Total AIG Life and Retirement | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 5,074 | 4,644 | 13,995 | 15,432 |
Pre-tax Income (loss) from continuing operations | 1,931 | 1,241 | 4,412 | 4,530 |
Reportable Segments | Total AIG Life and Retirement | Operating Segments | Retail | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 3,318 | 2,884 | 9,056 | 9,326 |
Pre-tax Income (loss) from continuing operations | 1,160 | 941 | 2,563 | 3,114 |
Reportable Segments | Total AIG Life and Retirement | Operating Segments | Institutional | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 1,756 | 1,760 | 4,939 | 6,106 |
Pre-tax Income (loss) from continuing operations | 771 | 300 | 1,849 | 1,416 |
Consolidation and Eliminations | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | -160 | -200 | -544 | -646 |
Pre-tax Income (loss) from continuing operations | 137 | 34 | 270 | 96 |
Other Operations | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 1,733 | 1,796 | 5,797 | 7,073 |
Pre-tax Income (loss) from continuing operations | -256 | -1,223 | 1,084 | -1,353 |
Other Operations | Aircraft Leasing | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | ' | 1,118 | 1,602 | 3,303 |
Pre-tax Income (loss) from continuing operations | ' | -1 | 17 | 60 |
Other Operations | Consolidation and elimination of reconciling items | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | -9 | -9 | -24 | -28 |
Pre-tax Income (loss) from continuing operations | -1 | 1 | 1 | 3 |
Other Operations | Mortgage Guaranty | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 262 | 236 | 771 | 710 |
Pre-tax Income (loss) from continuing operations | 135 | 43 | 423 | 162 |
Other Operations | Global Capital Markets | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 72 | 87 | 417 | 592 |
Pre-tax Income (loss) from continuing operations | 58 | 29 | 332 | 431 |
Other Operations | Direct Investment Book | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 430 | 147 | 1,260 | 1,373 |
Pre-tax Income (loss) from continuing operations | 228 | 52 | 855 | 1,084 |
Other Operations | Corporate and Other | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' |
Total revenues | 978 | 217 | 1,771 | 1,123 |
Pre-tax Income (loss) from continuing operations | ($676) | ($1,347) | ($544) | ($3,093) |
HELDFORSALE_CLASSIFICATION_AND2
HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | 13-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | 14-May-14 | 14-May-14 | Dec. 31, 2013 |
Aer Cap | Aer Cap | AIG | AIG | AIG | AIG | Discontinued operations | Discontinued operations | Discontinued operations | Discontinued operations | International Lease Finance Corporation (ILFC) | International Lease Finance Corporation (ILFC) | Assets held-for-sale | |||||||
Aer Cap | Revolving Credit Facility | ||||||||||||||||||
Held-for-Sale Classification and Discontinued Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of common stock agreed to be sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Consideration in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,600,000,000 | ' | ' |
Number of shares received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97.6 | ' | ' |
Common stock value | 4,766,000,000 | ' | 4,766,000,000 | ' | 4,766,000,000 | ' | ' | 4,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Before Tax gain on sale after settlement of intercompany loans | ' | ' | ' | ' | ' | ' | ' | 2,200,000,000 | ' | ' | ' | ' | 5,000,000 | -27,000,000 | 56,000,000 | 119,000,000 | ' | ' | ' |
After-tax gain on sale on sale after settlement of intercompany loans | ' | ' | ' | ' | ' | ' | ' | 1,400,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate commitment under revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of common stock held after closing transaction | ' | ' | ' | ' | ' | ' | 46.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing price per share (in dollars per share) | ' | ' | ' | ' | ' | ' | $47.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Difference between carrying amount and equity of AerCap | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Difference between carrying amount and equity of AerCap amortized into income based on estimated lives of assets and liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash proceeds to AIG were after the settlement of intercompany loans | ' | ' | 2,348,000,000 | 0 | ' | ' | ' | ' | ' | 2,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity securities | 4,344,000,000 | ' | 4,344,000,000 | ' | 3,656,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 |
Mortgage and other loans receivable, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 229,000,000 |
Flight equipment primarily under operating leases, net of accumulated depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,508,000,000 |
Short-term investments | 17,852,000,000 | ' | 17,852,000,000 | ' | 21,617,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 658,000,000 |
Cash | 1,933,000,000 | 2,058,000,000 | 1,933,000,000 | 2,058,000,000 | 2,241,000,000 | 1,151,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,000,000 |
Premiums and other receivables, net of allowance | 13,236,000,000 | ' | 13,236,000,000 | ' | 12,939,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 318,000,000 |
Other assets | 10,239,000,000 | ' | 10,239,000,000 | ' | 9,366,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,066,000,000 |
Assets held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,870,000,000 |
Less: Loss Accrual | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9,334,000,000 |
Total assets held for sale | 0 | ' | 0 | ' | 29,536,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,536,000,000 |
Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities | 28,410,000,000 | ' | 28,410,000,000 | ' | 29,155,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,127,000,000 |
Long-term debt | 36,223,000,000 | ' | 36,223,000,000 | ' | 41,693,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,421,000,000 |
Total liabilities held for sale | 0 | ' | 0 | ' | 24,548,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,548,000,000 |
Income (loss) from divested business or operations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on sale | ' | ' | ' | ' | ' | ' | ' | 2,200,000,000 | ' | ' | ' | ' | 5,000,000 | -27,000,000 | 56,000,000 | 119,000,000 | ' | ' | ' |
Income (loss) from discontinued operations, before tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | -27,000,000 | 56,000,000 | 119,000,000 | ' | ' | ' |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | -9,000,000 | 71,000,000 | 46,000,000 | ' | ' | ' |
Income (loss) from discontinued operations, net of income tax expense | $2,000,000 | ($18,000,000) | ($15,000,000) | $73,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | ($18,000,000) | ($15,000,000) | $73,000,000 | ' | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details - Fair Value Measurements on a Recurring Basis) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
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U.S. government and government sponsored entities | U.S. government and government sponsored entities | U.S. government and government sponsored entities | Non-U.S. government | Non-U.S. government | Non-U.S. government | Non-U.S. government | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Counterparty Netting | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Cash Collateral | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | |||||
Interest rate contracts | Interest rate contracts | Foreign exchange contracts | Equity contracts | Equity contracts | Commodity contracts | Credit contracts | Other contracts | Counterparty netting and cash collateral | U.S. government and government sponsored entities | U.S. government and government sponsored entities | Obligations of states, municipalities and political subdivisions | Non-U.S. government | Non-U.S. government | Corporate debt | Residential mortgage backed securities (RMBS) | Commercial mortgage-backed securities (CMBS) | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Common Stock | Common Stock | Preferred Stock | Mutual Funds | Mutual Funds | Interest rate contracts | Interest rate contracts | Foreign exchange contracts | Foreign exchange contracts | Equity contracts | Equity contracts | Commodity contracts | Commodity contracts | Credit contracts | Other contracts | Other contracts | Counterparty netting and cash collateral | U.S. government and government sponsored entities | U.S. government and government sponsored entities | Obligations of states, municipalities and political subdivisions | Obligations of states, municipalities and political subdivisions | Non-U.S. government | Non-U.S. government | Corporate debt | Corporate debt | Residential mortgage backed securities (RMBS) | Residential mortgage backed securities (RMBS) | Commercial mortgage-backed securities (CMBS) | Commercial mortgage-backed securities (CMBS) | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Common Stock | Preferred Stock | Preferred Stock | Mutual Funds | Mutual Funds | Interest rate contracts | Interest rate contracts | Foreign exchange contracts | Equity contracts | Equity contracts | Commodity contracts | Commodity contracts | Credit contracts | Credit contracts | Other contracts | Other contracts | Counterparty netting and cash collateral | U.S. government and government sponsored entities | Obligations of states, municipalities and political subdivisions | Obligations of states, municipalities and political subdivisions | Non-U.S. government | Non-U.S. government | Corporate debt | Corporate debt | Residential mortgage backed securities (RMBS) | Residential mortgage backed securities (RMBS) | Commercial mortgage-backed securities (CMBS) | Commercial mortgage-backed securities (CMBS) | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Common Stock | Common Stock | Preferred Stock | Mutual Funds | Interest rate contracts | Foreign exchange contracts | Equity contracts | Commodity contracts | Credit contracts | Other contracts | Counterparty netting and cash collateral | Counterparty netting and cash collateral | U.S. government and government sponsored entities | Obligations of states, municipalities and political subdivisions | Non-U.S. government | Corporate debt | Residential mortgage backed securities (RMBS) | Commercial mortgage-backed securities (CMBS) | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Common Stock | Preferred Stock | Mutual Funds | Interest rate contracts | Foreign exchange contracts | Equity contracts | Commodity contracts | Credit contracts | Other contracts | Counterparty netting and cash collateral | Counterparty netting and cash collateral | U.S. government and government sponsored entities | Obligations of states, municipalities and political subdivisions | Non-U.S. government | Corporate debt | Residential mortgage backed securities (RMBS) | Commercial mortgage-backed securities (CMBS) | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Common Stock | Preferred Stock | Mutual Funds | Interest rate contracts | Interest rate contracts | Foreign exchange contracts | Foreign exchange contracts | Equity contracts | Equity contracts | Commodity contracts | Commodity contracts | Credit contracts | Credit contracts | Other contracts | Other contracts | Counterparty netting and cash collateral | Counterparty netting and cash collateral | U.S. government and government sponsored entities | U.S. government and government sponsored entities | Obligations of states, municipalities and political subdivisions | Obligations of states, municipalities and political subdivisions | Non-U.S. government | Non-U.S. government | Corporate debt | Corporate debt | Residential mortgage backed securities (RMBS) | Residential mortgage backed securities (RMBS) | Commercial mortgage-backed securities (CMBS) | Commercial mortgage-backed securities (CMBS) | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Common Stock | Common Stock | Preferred Stock | Preferred Stock | Mutual Funds | Mutual Funds | ||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bonds available for sale | $265,786 | $258,274 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $787 | $641 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15 | $133 | $0 | $772 | $508 | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | $229,962 | $227,632 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,783 | $3,062 | $26,158 | $28,300 | $21,867 | $21,985 | $146,319 | $143,297 | $21,786 | $21,207 | $6,626 | $5,747 | $4,423 | $4,034 | ' | ' | ' | ' | ' | $35,037 | $30,001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $2,014 | $1,080 | $23 | $16 | $2,009 | $1,255 | $16,918 | $14,941 | $5,916 | $5,735 | $8,157 | $6,974 | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ' | ' | ' | $265,786 | $258,274 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,798 | $3,195 | $28,172 | $29,380 | $22,662 | $22,509 | $148,328 | $144,552 | $38,704 | $36,148 | $12,542 | $11,482 | $12,580 | $11,008 | ' | ' | ' | ' | ' | ' |
Other bond securities, at fair value (See Note 6) | 20,381 | 22,623 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128 | 78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128 | 78 | 0 | 0 | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | 10,448 | 11,930 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,130 | 5,645 | 122 | 121 | 2 | 2 | 948 | 1,169 | 1,143 | 1,326 | 507 | 509 | 2,596 | 3,158 | ' | ' | ' | ' | ' | 9,805 | 10,615 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | 0 | ' | 0 | ' | 1,023 | 937 | 713 | 844 | 8,069 | 8,834 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | 20,381 | 22,623 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,258 | 5,723 | 122 | 121 | 2 | 2 | 948 | 1,169 | 2,166 | 2,263 | 1,220 | 1,353 | 10,665 | 11,992 | ' | ' | ' | ' | ' | ' |
Equity securities available for sale | 4,344 | 3,656 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,310 | 3,626 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,570 | 3,218 | 0 | 740 | 408 | 33 | 29 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 29 | 27 | 2 | 2 | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1 | 0 | 1 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 4,344 | 3,656 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,572 | 3,219 | 29 | 27 | 743 | 410 |
Other equity securities | 766 | 834 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 701 | 750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | 84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 766 | 834 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage and other loans receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other invested assets | 9,045 | 8,598 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,211 | 2,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,809 | 5,930 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,045 | 8,598 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative assets, at fair value | 1,588 | 1,665 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 114 | 165 | 7 | 14 | 0 | 107 | 151 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,931 | 3,875 | 2,805 | 3,716 | 1,061 | 52 | 65 | 106 | 0 | ' | 0 | 0 | 1 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117 | 179 | 11 | 41 | 3 | 49 | 49 | 0 | 1 | 20 | 55 | 34 | 33 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,769 | -1,734 | 0 | 0 | 0 | 0 | 0 | 0 | -1,769 | -1,734 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -805 | -820 | 0 | 0 | 0 | 0 | 0 | 0 | -805 | -820 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,588 | 1,665 | 2,823 | 3,771 | 1,064 | 52 | 221 | 306 | 0 | 1 | 20 | 55 | 34 | 34 | -2,574 | -2,554 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term investments, portion measured at fair value | 4,191 | 6,313 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 560 | 332 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,631 | 5,981 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,191 | 6,313 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Separate account assets, at fair value | 77,810 | 71,059 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,592 | 67,708 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,218 | 3,351 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 77,810 | 71,059 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | 0 | 418 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 418 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 418 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value assets measured on recurring basis, total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,217 | 73,301 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 256,499 | 255,967 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,775 | 46,726 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,769 | -1,734 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -805 | -820 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 383,917 | 373,440 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Policyholder contract deposits, portion measured at fair value | 1,044 | 384 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53 | 72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 991 | 312 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,044 | 384 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other policyholder funds | 4,718 | 5,083 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities, at fair value | 2,502 | 2,511 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 0 | 0 | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,235 | 4,111 | 2,649 | 3,661 | 1,493 | 319 | 88 | 101 | 5 | 5 | 0 | 0 | 25 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,222 | 1,618 | 82 | 141 | 10 | 3 | ' | 0 | ' | 1,038 | 1,335 | 89 | 142 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,769 | -1,734 | 0 | 0 | 0 | 0 | 0 | 0 | -1,769 | -1,734 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,186 | -1,484 | 0 | 0 | 0 | 0 | 0 | 0 | -1,186 | -1,484 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,502 | 2,511 | 2,731 | 3,802 | 1,503 | 319 | 91 | 101 | 5 | 5 | 1,038 | 1,335 | 89 | 167 | -2,955 | -3,218 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, portion measured at fair value | 5,667 | 6,747 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,370 | 6,377 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 297 | 370 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,667 | 6,747 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities | 402 | 933 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70 | 42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 332 | 891 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 402 | 933 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value liabilities measured on recurring basis, total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70 | 42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,998 | 11,451 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,510 | 2,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,769 | -1,734 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,186 | -1,484 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,623 | 10,575 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets transferred from Level 1 to Level 2 | ' | ' | 107 | ' | 4 | 263 | 356 | 32 | 174 | 330 | 731 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets transferred from Level 2 to Level 1 | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | $49,934 | $44,227 | $46,547 | $39,353 |
Net Realized and Unrealized Gains (Losses) Included in Income | 536 | 523 | 1,957 | 2,103 |
Other Comprehensive Income (Loss) | -32 | 2 | 763 | 216 |
Purchases, Sales, Issues and Settlements, Net | 607 | 142 | 1,794 | 1,933 |
Gross Transfers in, assets | 140 | 777 | 1,950 | 3,122 |
Gross Transfers out, assets | -527 | -451 | -2,353 | -1,507 |
Balance End of Period | 50,658 | 45,220 | 50,658 | 45,220 |
Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 46 | 259 | 361 | 394 |
Liabilities | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance at the Beginning of the Period | -2,358 | -1,854 | -2,121 | -2,974 |
Net Realized and Unrealized Gains (Losses) Included in Income | -43 | 311 | -381 | 1,214 |
Other Comprehensive Income (Loss) | 12 | -25 | 35 | -16 |
Purchases, Sales, Issues and Settlements-Net | -24 | -943 | 56 | -733 |
Gross Transfers in, liabilities | 0 | 0 | -22 | -3 |
Gross Transfers out, liabilities | 20 | 0 | 40 | 1 |
Balance at the End of the Period | -2,393 | -2,511 | -2,393 | -2,511 |
Liabilities | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 74 | 311 | 151 | 1,350 |
Policyholder contract deposits | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance at the Beginning of the Period | -842 | -586 | -312 | -1,257 |
Net Realized and Unrealized Gains (Losses) Included in Income | -155 | 250 | -687 | 865 |
Other Comprehensive Income (Loss) | 8 | 0 | -16 | 0 |
Purchases, Sales, Issues and Settlements-Net | -2 | -51 | 24 | 5 |
Gross Transfers in, liabilities | 0 | 0 | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 | 0 | 0 |
Balance at the End of the Period | -991 | -387 | -991 | -387 |
Policyholder contract deposits | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | -21 | 218 | -140 | 825 |
Derivative liabilities, net | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance at the Beginning of the Period | -1,122 | -849 | -1,439 | -1,373 |
Net Realized and Unrealized Gains (Losses) Included in Income | 91 | 86 | 293 | 469 |
Other Comprehensive Income (Loss) | 4 | -25 | 51 | -16 |
Purchases, Sales, Issues and Settlements-Net | -23 | -893 | -2 | -761 |
Gross Transfers in, liabilities | 0 | 0 | 48 | -1 |
Gross Transfers out, liabilities | -55 | 0 | -56 | 1 |
Balance at the End of the Period | -1,105 | -1,681 | -1,105 | -1,681 |
Derivative liabilities, net | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 79 | 112 | 276 | 566 |
Interest rate contracts | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance at the Beginning of the Period | -67 | 779 | -100 | 732 |
Net Realized and Unrealized Gains (Losses) Included in Income | -3 | 6 | -2 | 20 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 1 | -912 | 33 | -879 |
Gross Transfers in, liabilities | 0 | 0 | 0 | 0 |
Gross Transfers out, liabilities | -2 | 0 | -2 | 0 |
Balance at the End of the Period | -71 | -127 | -71 | -127 |
Interest rate contracts | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | -3 | 3 | 0 | 33 |
Foreign exchange contracts | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance at the Beginning of the Period | -9 | ' | 0 | ' |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | ' | 3 | ' |
Other Comprehensive Income (Loss) | 0 | ' | 0 | ' |
Purchases, Sales, Issues and Settlements-Net | 2 | ' | -10 | ' |
Gross Transfers in, liabilities | 0 | ' | 0 | ' |
Gross Transfers out, liabilities | 0 | ' | 0 | ' |
Balance at the End of the Period | -7 | ' | -7 | ' |
Foreign exchange contracts | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 0 | ' | 4 | ' |
Equity contracts | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance at the Beginning of the Period | 91 | 70 | 49 | 47 |
Net Realized and Unrealized Gains (Losses) Included in Income | 6 | 12 | 14 | 49 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 2 | -1 | -12 | -14 |
Gross Transfers in, liabilities | 0 | 1 | 48 | 0 |
Gross Transfers out, liabilities | -53 | 0 | -53 | 0 |
Balance at the End of the Period | 46 | 82 | 46 | 82 |
Equity contracts | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 0 | 10 | 6 | 40 |
Commodity contracts | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance at the Beginning of the Period | 1 | 1 | 1 | 1 |
Net Realized and Unrealized Gains (Losses) Included in Income | -1 | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 0 | 0 | 0 | -1 |
Gross Transfers in, liabilities | 0 | 0 | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 | -1 | 1 |
Balance at the End of the Period | 0 | 1 | 0 | 1 |
Commodity contracts | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Purchases, Sales, Issues and Settlements-Net | ' | 0 | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 0 | 0 | 0 | -1 |
Credit contracts | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance at the Beginning of the Period | -1,085 | -1,594 | -1,280 | -1,991 |
Net Realized and Unrealized Gains (Losses) Included in Income | 75 | 52 | 229 | 365 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | -8 | 36 | 33 | 120 |
Gross Transfers in, liabilities | 0 | 0 | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 | 0 | 0 |
Balance at the End of the Period | -1,018 | -1,506 | -1,018 | -1,506 |
Credit contracts | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 65 | 91 | 229 | 486 |
Other contracts | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance at the Beginning of the Period | -53 | -105 | -109 | -162 |
Net Realized and Unrealized Gains (Losses) Included in Income | 14 | 16 | 49 | 35 |
Other Comprehensive Income (Loss) | 4 | -25 | 51 | -16 |
Purchases, Sales, Issues and Settlements-Net | -20 | -16 | -46 | 13 |
Gross Transfers in, liabilities | 0 | -1 | 0 | -1 |
Gross Transfers out, liabilities | 0 | 0 | 0 | 0 |
Balance at the End of the Period | -55 | -131 | -55 | -131 |
Other contracts | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 17 | 8 | 37 | 8 |
Long-term debt | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance at the Beginning of the Period | -394 | -419 | -370 | -344 |
Net Realized and Unrealized Gains (Losses) Included in Income | 21 | -25 | 13 | -120 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 1 | 1 | 34 | 23 |
Gross Transfers in, liabilities | 0 | 0 | -70 | -2 |
Gross Transfers out, liabilities | 75 | ' | 96 | ' |
Balance at the End of the Period | -297 | -443 | -297 | -443 |
Long-term debt | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Gross Transfers out, liabilities | ' | 0 | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 16 | -19 | 15 | -41 |
Bonds available for sale | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 33,888 | 27,890 | 30,001 | 24,152 |
Net Realized and Unrealized Gains (Losses) Included in Income | 310 | 258 | 886 | 795 |
Other Comprehensive Income (Loss) | -123 | -75 | 623 | 120 |
Purchases, Sales, Issues and Settlements, Net | 1,052 | 753 | 3,145 | 3,468 |
Gross Transfers in, assets | 56 | 495 | 1,772 | 1,387 |
Gross Transfers out, assets | -146 | -451 | -1,390 | -1,052 |
Balance End of Period | 35,037 | 28,870 | 35,037 | 28,870 |
Bonds available for sale | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 | 0 | 0 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 1,991 | 945 | 1,080 | 1,024 |
Net Realized and Unrealized Gains (Losses) Included in Income | -1 | 4 | -1 | 29 |
Other Comprehensive Income (Loss) | -11 | -28 | 180 | -178 |
Purchases, Sales, Issues and Settlements, Net | 43 | 160 | 896 | 365 |
Gross Transfers in, assets | 0 | 0 | 0 | 0 |
Gross Transfers out, assets | -8 | -27 | -141 | -186 |
Balance End of Period | 2,014 | 1,054 | 2,014 | 1,054 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 | 0 | 0 |
Bonds available for sale | Non-U.S. government | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 25 | 20 | 16 | 14 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 | -1 | 0 |
Purchases, Sales, Issues and Settlements, Net | 1 | 1 | 7 | 7 |
Gross Transfers in, assets | 0 | 0 | 4 | 1 |
Gross Transfers out, assets | -3 | 0 | -3 | -1 |
Balance End of Period | 23 | 21 | 23 | 21 |
Bonds available for sale | Non-U.S. government | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 | 0 | 0 |
Bonds available for sale | Corporate debt | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 2,196 | 1,634 | 1,255 | 1,487 |
Net Realized and Unrealized Gains (Losses) Included in Income | 2 | -3 | 8 | -7 |
Other Comprehensive Income (Loss) | -22 | 5 | 31 | -9 |
Purchases, Sales, Issues and Settlements, Net | -73 | 0 | -140 | 30 |
Gross Transfers in, assets | 3 | 39 | 1,358 | 371 |
Gross Transfers out, assets | -97 | -233 | -503 | -430 |
Balance End of Period | 2,009 | 1,442 | 2,009 | 1,442 |
Bonds available for sale | Corporate debt | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 | 0 | 0 |
Bonds available for sale | Residential mortgage backed securities (RMBS) | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 16,328 | 13,694 | 14,941 | 11,662 |
Net Realized and Unrealized Gains (Losses) Included in Income | 264 | 216 | 759 | 624 |
Other Comprehensive Income (Loss) | -49 | -60 | 211 | 279 |
Purchases, Sales, Issues and Settlements, Net | 375 | 127 | 999 | 1,393 |
Gross Transfers in, assets | 0 | 167 | 119 | 186 |
Gross Transfers out, assets | 0 | -58 | -111 | -58 |
Balance End of Period | 16,918 | 14,086 | 16,918 | 14,086 |
Bonds available for sale | Residential mortgage backed securities (RMBS) | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 | 0 | 0 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 5,917 | 5,455 | 5,735 | 5,124 |
Net Realized and Unrealized Gains (Losses) Included in Income | 27 | 4 | 50 | 15 |
Other Comprehensive Income (Loss) | -39 | 55 | 201 | 75 |
Purchases, Sales, Issues and Settlements, Net | 14 | 102 | -43 | 290 |
Gross Transfers in, assets | 0 | 0 | 69 | 161 |
Gross Transfers out, assets | -3 | 0 | -96 | -49 |
Balance End of Period | 5,916 | 5,616 | 5,916 | 5,616 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 | 0 | 0 |
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 7,431 | 6,142 | 6,974 | 4,841 |
Net Realized and Unrealized Gains (Losses) Included in Income | 18 | 37 | 70 | 134 |
Other Comprehensive Income (Loss) | -2 | -47 | 1 | -47 |
Purchases, Sales, Issues and Settlements, Net | 692 | 363 | 1,426 | 1,383 |
Gross Transfers in, assets | 53 | 289 | 222 | 668 |
Gross Transfers out, assets | -35 | -133 | -536 | -328 |
Balance End of Period | 8,157 | 6,651 | 8,157 | 6,651 |
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 | 0 | 0 |
Other Bond securities | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 10,216 | 10,574 | 10,615 | 9,744 |
Net Realized and Unrealized Gains (Losses) Included in Income | 233 | 290 | 991 | 1,164 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | -510 | -618 | -1,456 | -1,629 |
Gross Transfers in, assets | 0 | 281 | 9 | 1,390 |
Gross Transfers out, assets | -134 | 0 | -354 | -142 |
Balance End of Period | 9,805 | 10,527 | 9,805 | 10,527 |
Other Bond securities | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 46 | 259 | 361 | 394 |
Other Bond securities | Residential mortgage backed securities (RMBS) | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 1,062 | 782 | 937 | 396 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 14 | 51 | 24 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | -39 | -8 | 33 | 130 |
Gross Transfers in, assets | 0 | 27 | 2 | 265 |
Gross Transfers out, assets | 0 | 0 | 0 | 0 |
Balance End of Period | 1,023 | 815 | 1,023 | 815 |
Other Bond securities | Residential mortgage backed securities (RMBS) | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | -9 | 13 | 9 | -27 |
Other Bond securities | Commercial mortgage-backed securities (CMBS) | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 757 | 820 | 844 | 812 |
Net Realized and Unrealized Gains (Losses) Included in Income | -24 | 33 | 14 | 44 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | -20 | -53 | -151 | -193 |
Gross Transfers in, assets | 0 | 31 | 6 | 282 |
Gross Transfers out, assets | 0 | 0 | 0 | -114 |
Balance End of Period | 713 | 831 | 713 | 831 |
Other Bond securities | Commercial mortgage-backed securities (CMBS) | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | -21 | 29 | 11 | -13 |
Other Bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 8,397 | 8,972 | 8,834 | 8,536 |
Net Realized and Unrealized Gains (Losses) Included in Income | 257 | 243 | 926 | 1,096 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | -451 | -557 | -1,338 | -1,566 |
Gross Transfers in, assets | 0 | 223 | 1 | 843 |
Gross Transfers out, assets | -134 | 0 | -354 | -28 |
Balance End of Period | 8,069 | 8,881 | 8,069 | 8,881 |
Other Bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 76 | 217 | 341 | 434 |
Equity securities available for sale | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 0 | 124 | 1 | 68 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 1 | -1 | 1 | 8 |
Purchases, Sales, Issues and Settlements, Net | 0 | -48 | 0 | -1 |
Gross Transfers in, assets | 1 | 0 | 1 | 0 |
Gross Transfers out, assets | -1 | 0 | -2 | 0 |
Balance End of Period | 1 | 75 | 1 | 75 |
Equity securities available for sale | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 | 0 | 0 |
Equity securities available for sale | Common Stock | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 0 | 76 | 1 | 24 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 1 | -1 | 1 | 4 |
Purchases, Sales, Issues and Settlements, Net | 0 | -48 | 0 | -1 |
Gross Transfers in, assets | 0 | 0 | 0 | 0 |
Gross Transfers out, assets | -1 | 0 | -2 | 0 |
Balance End of Period | 0 | 27 | 0 | 27 |
Equity securities available for sale | Common Stock | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 | 0 | 0 |
Equity securities available for sale | Preferred Stock | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 0 | 48 | 0 | 44 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 4 |
Purchases, Sales, Issues and Settlements, Net | 0 | 0 | 0 | 0 |
Gross Transfers in, assets | 0 | 0 | 0 | 0 |
Gross Transfers out, assets | 0 | 0 | 0 | 0 |
Balance End of Period | 0 | 48 | 0 | 48 |
Equity securities available for sale | Preferred Stock | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 | 0 | 0 |
Equity securities available for sale | Mutual Funds | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Gross Transfers in, assets | 1 | ' | ' | ' |
Balance End of Period | 1 | ' | 1 | ' |
Equity securities available for sale | Mutual Funds | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | ' | ' | ' |
Other invested assets | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 5,824 | 5,639 | 5,930 | 5,389 |
Net Realized and Unrealized Gains (Losses) Included in Income | -7 | -25 | 80 | 144 |
Other Comprehensive Income (Loss) | 90 | 78 | 139 | 88 |
Purchases, Sales, Issues and Settlements, Net | 65 | 55 | 99 | 95 |
Gross Transfers in, assets | 83 | 1 | 168 | 345 |
Gross Transfers out, assets | -246 | 0 | -607 | -313 |
Balance End of Period | 5,809 | 5,748 | 5,809 | 5,748 |
Other invested assets | Trading Revenue | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | ' | 0 | ' |
Mortgage and other loans receivable | ' | ' | ' | ' |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ' | ' | ' | ' |
Balance Beginning of Period | 6 | ' | ' | ' |
Purchases, Sales, Issues and Settlements, Net | 0 | ' | 6 | ' |
Balance End of Period | $6 | ' | $6 | ' |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses related to Level 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | $536 | $523 | $1,957 | $2,103 |
Policyholder contract deposits | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | -155 | 250 | -687 | 865 |
Policyholder contract deposits | Investment Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 | 0 | 0 |
Policyholder contract deposits | Net realized capital gains (losses) | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | -155 | 250 | -687 | 865 |
Policyholder contract deposits | Other Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 | 0 | 0 |
Derivative liabilities, net | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 91 | 86 | 293 | 469 |
Derivative liabilities, net | Investment Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 18 | 11 | 49 | 26 |
Derivative liabilities, net | Net realized capital gains (losses) | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | -1 | 8 | 4 | 25 |
Derivative liabilities, net | Other Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 74 | 67 | 240 | 418 |
Long-term debt | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 21 | -25 | 13 | -120 |
Long-term debt | Investment Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 | 0 | 0 |
Long-term debt | Net realized capital gains (losses) | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 | 0 | 0 |
Long-term debt | Other Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 21 | -25 | 13 | -120 |
Bonds available for sale | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 310 | 258 | 886 | 795 |
Bonds available for sale | Investment Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 320 | 264 | 922 | 713 |
Bonds available for sale | Net realized capital gains (losses) | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | -22 | -21 | -73 | -8 |
Bonds available for sale | Other Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 12 | 15 | 37 | 90 |
Other Bond securities | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 233 | 290 | 991 | 1,164 |
Other Bond securities | Investment Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | -3 | 86 | 97 | 114 |
Other Bond securities | Net realized capital gains (losses) | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 7 | 2 | 8 |
Other Bond securities | Other Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 236 | 197 | 892 | 1,042 |
Equity securities | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 | 0 | 0 |
Equity securities | Investment Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 | ' | 0 |
Equity securities | Net realized capital gains (losses) | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 | ' | 0 |
Equity securities | Other Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 | 0 | 0 |
Other invested assets | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | -7 | -25 | 80 | 144 |
Other invested assets | Investment Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | 18 | -12 | 107 | 142 |
Other invested assets | Net realized capital gains (losses) | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | -20 | -5 | -33 | -34 |
Other invested assets | Other Income | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items | ' | ' | ' | ' |
Net realized and unrealized gains and losses related to Level 3 items, assets | ($5) | ($8) | $6 | $36 |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issues and settlements) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, Sales, Issues and Settlements, Net, assets | $607 | $142 | $1,794 | $1,933 |
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 | -2 | 43 | 35 | -12 |
Transfers out 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. | 52 | 18 | 50 | 30 |
Liabilities | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, liabilities | 0 | 4 | 1 | 9 |
Sales, liabilities | -38 | -4 | -96 | -17 |
Settlements, liabilities | 14 | -943 | 151 | -725 |
Purchases, Sales, Issues and Settlements, Net, liabilities | -24 | -943 | 56 | -733 |
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 | -36 | -4 | -94 | -16 |
Settlements, liabilities | 34 | -47 | 118 | 21 |
Purchases, Sales, Issues and Settlements, Net, liabilities | -2 | -51 | 24 | 5 |
Derivative liabilities, net | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, liabilities | 0 | 4 | 1 | 9 |
Sales, liabilities | -2 | 0 | -2 | -1 |
Settlements, liabilities | -21 | -897 | -1 | -769 |
Purchases, Sales, Issues and Settlements, Net, liabilities | -23 | -893 | -2 | -761 |
Long-term debt | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, liabilities | 0 | 0 | 0 | 0 |
Sales, liabilities | 0 | 0 | 0 | 0 |
Settlements, liabilities | 1 | 1 | 34 | 23 |
Purchases, Sales, Issues and Settlements, Net, liabilities | 1 | 1 | 34 | 23 |
Assets [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | 2,794 | 2,178 | 7,567 | 8,734 |
Sales, assets | -316 | -127 | -482 | -1,013 |
Settlements, assets | -1,871 | -1,909 | -5,291 | -5,788 |
Purchases, Sales, Issues and Settlements, Net, assets | 607 | 142 | 1,794 | 1,933 |
Bonds available for sale | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | 2,512 | 1,898 | 6,640 | 7,398 |
Sales, assets | -300 | -37 | -425 | -808 |
Settlements, assets | -1,160 | -1,108 | -3,070 | -3,122 |
Purchases, Sales, Issues and Settlements, Net, assets | 1,052 | 753 | 3,145 | 3,468 |
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 | 66 | 194 | 1,002 | 502 |
Sales, assets | -3 | -34 | -35 | -137 |
Settlements, assets | -20 | 0 | -71 | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | 43 | 160 | 896 | 365 |
Bonds available for sale | Non-U.S. government | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | 1 | 1 | 8 | 9 |
Sales, assets | 0 | 0 | 0 | 0 |
Settlements, assets | 0 | 0 | -1 | -2 |
Purchases, Sales, Issues and Settlements, Net, assets | 1 | 1 | 7 | 7 |
Bonds available for sale | Corporate debt | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | 22 | 146 | 141 | 454 |
Sales, assets | 0 | 0 | -8 | -114 |
Settlements, assets | -95 | -146 | -273 | -310 |
Purchases, Sales, Issues and Settlements, Net, assets | -73 | 0 | -140 | 30 |
Bonds available for sale | Residential mortgage backed securities (RMBS) | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | 1,062 | 750 | 2,814 | 3,462 |
Sales, assets | -62 | 0 | -88 | -231 |
Settlements, assets | -625 | -623 | -1,727 | -1,838 |
Purchases, Sales, Issues and Settlements, Net, assets | 375 | 127 | 999 | 1,393 |
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 | 276 | 179 | 368 | 872 |
Sales, assets | -167 | -3 | -224 | -167 |
Settlements, assets | -95 | -74 | -187 | -415 |
Purchases, Sales, Issues and Settlements, Net, assets | 14 | 102 | -43 | 290 |
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | 1,085 | 628 | 2,307 | 2,099 |
Sales, assets | -68 | 0 | -70 | -159 |
Settlements, assets | -325 | -265 | -811 | -557 |
Purchases, Sales, Issues and Settlements, Net, assets | 692 | 363 | 1,426 | 1,383 |
Other Bond securities | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | 6 | 31 | 212 | 581 |
Sales, assets | -16 | -87 | -56 | -145 |
Settlements, assets | -500 | -562 | -1,612 | -2,065 |
Purchases, Sales, Issues and Settlements, Net, assets | -510 | -618 | -1,456 | -1,629 |
Other Bond securities | Corporate debt | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | ' | ' | ' | 0 |
Sales, assets | ' | ' | ' | 0 |
Settlements, assets | ' | ' | ' | 0 |
Other Bond securities | Residential mortgage backed securities (RMBS) | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | 0 | 31 | 162 | 244 |
Sales, assets | -3 | -12 | -22 | -12 |
Settlements, assets | -36 | -27 | -107 | -102 |
Purchases, Sales, Issues and Settlements, Net, assets | -39 | -8 | 33 | 130 |
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 | 19 |
Sales, assets | -9 | -9 | -15 | -67 |
Settlements, assets | -11 | -44 | -136 | -145 |
Purchases, Sales, Issues and Settlements, Net, assets | -20 | -53 | -151 | -193 |
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 | 6 | 0 | 50 | 318 |
Sales, assets | -4 | -66 | -19 | -66 |
Settlements, assets | -453 | -491 | -1,369 | -1,818 |
Purchases, Sales, Issues and Settlements, Net, assets | -451 | -557 | -1,338 | -1,566 |
Equity securities | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | ' | 0 | 0 | 58 |
Sales, assets | ' | 0 | 0 | -11 |
Settlements, assets | ' | -48 | 0 | -48 |
Purchases, Sales, Issues and Settlements, Net, assets | ' | -48 | 0 | -1 |
Other invested assets | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | 276 | 249 | 709 | 697 |
Sales, assets | 0 | -3 | -1 | -49 |
Settlements, assets | -211 | -191 | -609 | -553 |
Purchases, Sales, Issues and Settlements, Net, assets | 65 | 55 | 99 | 95 |
Mortgage and other loans receivable, net of allowance | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Purchases, assets | 0 | ' | 6 | ' |
Purchases, Sales, Issues and Settlements, Net, assets | $0 | ' | $6 | ' |
FAIR_VALUE_MEASUREMENTS_Detail4
FAIR VALUE MEASUREMENTS (Details - Quantitative Information About Level 3 Fair Value Measurements - Assets) (Level 3, USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Corporate debt | Discounted cash flow | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Fair Value | 1,217 | 788 |
Corporate debt | Discounted cash flow | Minimum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 0.00% | 0.00% |
Corporate debt | Discounted cash flow | Maximum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 8.57% | 14.29% |
Corporate debt | Discounted cash flow | Weighted-average | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 6.19% | 6.64% |
Residential mortgage backed securities | Discounted cash flow | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Fair Value | 17,384 | 14,419 |
Residential mortgage backed securities | Discounted cash flow | Minimum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 2.51% | 2.54% |
Constant prepayment rate | 0.36% | 0.00% |
Loss severity | 45.61% | 42.60% |
Constant default rate | 3.84% | 3.98% |
Residential mortgage backed securities | Discounted cash flow | Maximum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 6.61% | 7.40% |
Constant prepayment rate | 9.74% | 10.35% |
Loss severity | 79.52% | 79.07% |
Constant default rate | 10.46% | 12.22% |
Residential mortgage backed securities | Discounted cash flow | Weighted-average | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 4.56% | 4.97% |
Constant prepayment rate | 5.05% | 4.97% |
Loss severity | 62.57% | 60.84% |
Constant default rate | 7.15% | 8.10% |
Certain CDO/ABS | Discounted cash flow | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Fair Value | 5,321 | 5,414 |
Certain CDO/ABS | Discounted cash flow | Minimum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 4.70% | 5.20% |
Constant prepayment rate | 6.40% | 5.20% |
Loss severity | 43.80% | 48.60% |
Constant default rate | 2.60% | 3.20% |
Certain CDO/ABS | Discounted cash flow | Maximum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 10.30% | 11.50% |
Constant prepayment rate | 13.40% | 10.80% |
Loss severity | 59.90% | 63.40% |
Constant default rate | 14.90% | 16.20% |
Certain CDO/ABS | Discounted cash flow | Weighted-average | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 7.70% | 9.40% |
Constant prepayment rate | 9.90% | 8.20% |
Loss severity | 52.00% | 56.40% |
Constant default rate | 8.00% | 9.00% |
Commercial mortgage backed securities | Discounted cash flow | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Fair Value | 6,048 | 5,847 |
Commercial mortgage backed securities | Discounted cash flow | Minimum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 0.00% | 0.00% |
Commercial mortgage backed securities | Discounted cash flow | Maximum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 13.01% | 14.69% |
Commercial mortgage backed securities | Discounted cash flow | Weighted-average | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 4.50% | 5.58% |
CDO/ABS - Direct Investment book | Binomial Expansion Technique | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Fair Value | 425 | 557 |
CDO/ABS - Direct Investment book | Binomial Expansion Technique | Minimum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Recovery rates | 7.00% | 6.00% |
Diversity score | 6 | 5 |
Weighted average life | '0 years 3 months | '1 year 0 months 25 days |
CDO/ABS - Direct Investment book | Binomial Expansion Technique | Maximum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Recovery rates | 58.00% | 63.00% |
Diversity score | 23 | 35 |
Weighted average life | '10 years 3 months 25 days | '9 years 5 months 19 days |
CDO/ABS - Direct Investment book | Binomial Expansion Technique | Weighted-average | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Recovery rates | 26.00% | 25.00% |
Diversity score | 14 | 12 |
Weighted average life | '4 years 1 month 2 days | '4 years 10 months 10 days |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Fair Value | 1,141 | 920 |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Minimum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 4.15% | 4.94% |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Maximum | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 4.93% | 5.86% |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Weighted-average | ' | ' |
Fair value inputs, assets, quantitative information | ' | ' |
Yield | 4.54% | 5.40% |
FAIR_VALUE_MEASUREMENTS_Detail5
FAIR VALUE MEASUREMENTS (Details - Quantitative Information About Level 3 Fair Value Measurements - Liabilities) (Level 3, USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Policyholder contract deposits | ' | ' |
Significant unobservable inputs used for recurring fair value measurements | ' | ' |
Fair value | 991 | 312 |
Policyholder contract deposits | Discounted cash flow | Minimum | ' | ' |
Significant unobservable inputs used for recurring fair value measurements | ' | ' |
Equity implied volatility | 6.00% | 6.00% |
Base lapse rates | 1.00% | 1.00% |
Dynamic lapse rates | 0.20% | 0.20% |
Mortality rates | 0.10% | 0.50% |
Utilization rates | 0.50% | 0.50% |
Policyholder contract deposits | Discounted cash flow | Maximum | ' | ' |
Significant unobservable inputs used for recurring fair value measurements | ' | ' |
Equity implied volatility | 39.00% | 39.00% |
Base lapse rates | 40.00% | 40.00% |
Dynamic lapse rates | 60.00% | 60.00% |
Mortality rates | 35.00% | 40.00% |
Utilization rates | 30.00% | 25.00% |
Derivative Liabilities - Credit contracts | ' | ' |
Significant unobservable inputs used for recurring fair value measurements | ' | ' |
Fair value | 813 | 996 |
Derivative Liabilities - Credit contracts | BET | Minimum | ' | ' |
Significant unobservable inputs used for recurring fair value measurements | ' | ' |
Recovery rates | 5.00% | 5.00% |
Diversity score | 9 | 9 |
Weighted average life | '2 years 8 months 8 days | '4 years 6 months |
Derivative Liabilities - Credit contracts | BET | Maximum | ' | ' |
Significant unobservable inputs used for recurring fair value measurements | ' | ' |
Recovery rates | 32.00% | 34.00% |
Diversity score | 27 | 32 |
Weighted average life | '10 years 3 months 25 days | '9 years 5 months 19 days |
Derivative Liabilities - Credit contracts | BET | Weighted-average | ' | ' |
Significant unobservable inputs used for recurring fair value measurements | ' | ' |
Recovery rates | 17.00% | 17.00% |
Diversity score | 14 | 13 |
Weighted average life | '4 years 8 months 1 day | '5 years 7 months 17 days |
FAIR_VALUE_MEASUREMENTS_Detail6
FAIR VALUE MEASUREMENTS (Details - Investments in Certain Entities Carried at Fair Value Using Net Asset Value Per Share) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | $8,396 | $7,732 |
Unfunded Commitments | 961 | 977 |
Private equity funds: | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 3,427 | 3,347 |
Unfunded Commitments | 950 | 949 |
Average original expected lives | '10 years | ' |
Investment redemption notice period (in days/years) | '1 Year | ' |
Second investment redemption notice period | '2 years | ' |
Private equity funds: | Expected remaining lives of 3 years or less | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
First threshold level of remaining lives | '3 years | ' |
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 74.00% | ' |
Private equity funds: | Expected remaining lives of less than 4 to 6 years | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Second threshold level of remaining lives | '6 years | ' |
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 18.00% | ' |
Private equity funds: | Expected remaining lives of less than 7 to 10 years | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Third threshold level of remaining lives | '10 years | ' |
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 8.00% | ' |
Leveraged buyout | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 2,496 | 2,544 |
Unfunded Commitments | 474 | 578 |
Real Estate / Infrastructure | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 427 | 346 |
Unfunded Commitments | 209 | 86 |
Venture capital | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 136 | 140 |
Unfunded Commitments | 10 | 13 |
Distressed | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 174 | 183 |
Unfunded Commitments | 44 | 34 |
Other.. | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 194 | 134 |
Unfunded Commitments | 213 | 238 |
Hedge funds: | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 4,969 | 4,385 |
Unfunded Commitments | 11 | 28 |
Hedge fund investments redeemable monthly (as a percent) | 15.00% | ' |
Hedge fund investments redeemable quarterly (as a percent) | 46.00% | ' |
Hedge fund investments redeemable semi-annually (as a percent) | 16.00% | ' |
Hedge fund investments redeemable annually (as a percent) | 23.00% | ' |
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 51.00% | ' |
Investment redemption notice period (in days/years) | '1 day to 180 days | ' |
Event-driven | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 1,188 | 976 |
Unfunded Commitments | 2 | 2 |
Long-short | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 2,096 | 1,759 |
Unfunded Commitments | 4 | 11 |
Macro | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 486 | 612 |
Unfunded Commitments | 0 | 0 |
Distressed. | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 659 | 594 |
Unfunded Commitments | 5 | 15 |
Emerging markets | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 302 | 287 |
Unfunded Commitments | 0 | 0 |
Other hedge funds | ' | ' |
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE | ' | ' |
Fair Value Using Net Asset Value Per Share or its equivalent | 238 | 157 |
Unfunded Commitments | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail7
FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value, Option, Quantitative Disclosures | ' | ' | ' | ' |
Fair Value Options Changes in Fair Value Gain (loss) | $346 | $303 | $1,585 | $1,464 |
Fair value option credit risk gains (losses) | 8 | -22 | -14 | -37 |
Fair Value Option | Other long-term debt | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures | ' | ' | ' | ' |
Fair Value Options Changes in Fair Value Gain (loss) | 23 | -51 | -186 | 271 |
Fair Value Option | Other liabilities | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures | ' | ' | ' | ' |
Fair Value Options Changes in Fair Value Gain (loss) | -4 | -4 | -10 | -10 |
Fair Value Option | Mortgage and other loans receivable, net of allowance | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures | ' | ' | ' | ' |
Fair Value Options Changes in Fair Value Gain (loss) | 0 | 1 | 0 | 3 |
Fair Value Option | Bond and equity securities | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures | ' | ' | ' | ' |
Fair Value Options Changes in Fair Value Gain (loss) | 252 | 331 | 1,529 | 963 |
Fair Value Option | Alternative investments | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures | ' | ' | ' | ' |
Fair Value Options Changes in Fair Value Gain (loss) | 73 | 23 | 245 | 229 |
Fair Value Option | Other, Including Short term investments | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures | ' | ' | ' | ' |
Fair Value Options Changes in Fair Value Gain (loss) | $2 | $3 | $7 | $8 |
FAIR_VALUE_MEASUREMENTS_Detail8
FAIR VALUE MEASUREMENTS (Details - Difference between fair values and the aggregate contractual principal amounts of long-term debt) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' |
Mortgage and other loans receivable, Fair Value | $6 | $0 |
Long-term debt, Fair Value | 5,667 | 6,747 |
Fair Value Option | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' |
Mortgage and other loans receivable, Fair Value | 6 | ' |
Mortgage and other loans receivable, Outstanding Principal Amount | 4 | ' |
Mortgage and other loans receivable, Difference | 2 | ' |
Long-term debt, Fair Value | 5,667 | 6,747 |
Long-term debt, Outstanding Principal Amount | 4,344 | 5,231 |
Long-term debt, Difference | $1,323 | $1,516 |
FAIR_VALUE_MEASUREMENTS_Detail9
FAIR VALUE MEASUREMENTS (Details - Assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges) (Fair value on a non-recurring basis, USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Other Investments | Other Investments | Other Investments | Other Investments | Investments In Life Settlements | Investments In Life Settlements | Investments In Life Settlements | Investments In Life Settlements | Other assets | Other assets | Other assets | Other assets | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | |||||
Other Investments | Other Investments | Investments In Life Settlements | Investments In Life Settlements | Other assets | Other assets | Other Investments | Other Investments | Investments In Life Settlements | Investments In Life Settlements | Other assets | Other assets | Other Investments | Other Investments | Investments In Life Settlements | Investments In Life Settlements | Other assets | Other assets | Other Investments | Other Investments | Investments In Life Settlements | Investments In Life Settlements | Other assets | Other assets | |||||||||||||||||||||||||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets at Fair Value, Non-Recurring Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $11 | $0 | $0 | $0 | $0 | $0 | $11 | $1,240 | $2,559 | $766 | $1,615 | $473 | $896 | $1 | $48 | $1,240 | $2,570 | $766 | $1,615 | $473 | $896 | $1 | $59 |
Impairment Charges | $115 | $72 | $258 | $247 | $62 | $9 | $117 | $82 | $52 | $61 | $139 | $139 | $1 | $2 | $2 | $26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet1
FAIR VALUE MEASUREMENTS (Details - 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) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Mortgage and other loans receivable | $23,397 | $20,765 | ' | ' |
Short-term investments | 17,852 | 21,617 | ' | ' |
Cash | 1,933 | 2,241 | 2,058 | 1,151 |
Liabilities: | ' | ' | ' | ' |
Other liabilities | 28,410 | 29,155 | ' | ' |
Total Fair Value | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Mortgage and other loans receivable | 24,685 | 21,637 | ' | ' |
Other invested assets | 3,465 | 3,234 | ' | ' |
Short-term investments | 13,661 | 15,304 | ' | ' |
Cash | 1,933 | 2,241 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Policyholder contract deposits associated with investment-type contracts | 118,209 | 114,560 | ' | ' |
Other liabilities | 3,993 | 4,870 | ' | ' |
Long-term debt | 34,569 | 38,633 | ' | ' |
Level 1 | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Mortgage and other loans receivable | 0 | 0 | ' | ' |
Other invested assets | 0 | 0 | ' | ' |
Short-term investments | 0 | 0 | ' | ' |
Cash | 1,933 | 2,241 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Policyholder contract deposits associated with investment-type contracts | 0 | 0 | ' | ' |
Other liabilities | 0 | 0 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Level 2 | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Mortgage and other loans receivable | 217 | 219 | ' | ' |
Other invested assets | 626 | 529 | ' | ' |
Short-term investments | 13,661 | 15,304 | ' | ' |
Cash | 0 | 0 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Policyholder contract deposits associated with investment-type contracts | 226 | 199 | ' | ' |
Other liabilities | 3,993 | 4,869 | ' | ' |
Long-term debt | 30,880 | 36,239 | ' | ' |
Level 3 | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Mortgage and other loans receivable | 24,468 | 21,418 | ' | ' |
Other invested assets | 2,839 | 2,705 | ' | ' |
Short-term investments | 0 | 0 | ' | ' |
Cash | 0 | 0 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Policyholder contract deposits associated with investment-type contracts | 117,983 | 114,361 | ' | ' |
Other liabilities | 0 | 1 | ' | ' |
Long-term debt | 3,689 | 2,394 | ' | ' |
Carrying Value | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Mortgage and other loans receivable | 23,391 | 20,765 | ' | ' |
Other invested assets | 4,357 | 4,194 | ' | ' |
Short-term investments | 13,661 | 15,304 | ' | ' |
Cash | 1,933 | 2,241 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Policyholder contract deposits associated with investment-type contracts | 105,258 | 105,093 | ' | ' |
Other liabilities | 3,993 | 4,869 | ' | ' |
Long-term debt | $30,556 | $34,946 | ' | ' |
INVESTMENTS_Details_Amortized_
INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | $251,986,000,000 | $250,257,000,000 |
Available for sale securities, Gross Unrealized Gains | 20,066,000,000 | 16,360,000,000 |
Available for sale securities, Gross Unrealized Losses | -1,922,000,000 | -4,687,000,000 |
Available for sale securities, Fair Value | 270,130,000,000 | 261,930,000,000 |
AOCI- OTTI | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Total, Other-Than-Temporary Impairments in AOCI | 2,192,000,000 | 1,916,000,000 |
Bonds available for sale | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 249,920,000,000 | 248,531,000,000 |
Available for sale securities, Gross Unrealized Gains | 17,752,000,000 | 14,391,000,000 |
Available for sale securities, Gross Unrealized Losses | -1,886,000,000 | -4,648,000,000 |
Available for sale securities, Fair Value | 265,786,000,000 | 258,274,000,000 |
Other details of available for sale securities | ' | ' |
Available for sale securities not rated or rated below investment grade | 35,000,000,000 | 32,600,000,000 |
Bonds available for sale | AOCI- OTTI | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Total, Other-Than-Temporary Impairments in AOCI | 2,192,000,000 | 1,916,000,000 |
Bonds available for sale | U.S. government and government sponsored entities | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 2,638,000,000 | 3,084,000,000 |
Available for sale securities, Gross Unrealized Gains | 180,000,000 | 150,000,000 |
Available for sale securities, Gross Unrealized Losses | -20,000,000 | -39,000,000 |
Available for sale securities, Fair Value | 2,798,000,000 | 3,195,000,000 |
Bonds available for sale | U.S. government and government sponsored entities | AOCI- OTTI | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Total, Other-Than-Temporary Impairments in AOCI | 0 | 0 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 26,699,000,000 | 28,704,000,000 |
Available for sale securities, Gross Unrealized Gains | 1,557,000,000 | 1,122,000,000 |
Available for sale securities, Gross Unrealized Losses | -84,000,000 | -446,000,000 |
Available for sale securities, Fair Value | 28,172,000,000 | 29,380,000,000 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | AOCI- OTTI | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Total, Other-Than-Temporary Impairments in AOCI | -11,000,000 | -15,000,000 |
Bonds available for sale | Non-U.S. government | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 21,889,000,000 | 22,045,000,000 |
Available for sale securities, Gross Unrealized Gains | 955,000,000 | 822,000,000 |
Available for sale securities, Gross Unrealized Losses | -182,000,000 | -358,000,000 |
Available for sale securities, Fair Value | 22,662,000,000 | 22,509,000,000 |
Bonds available for sale | Non-U.S. government | AOCI- OTTI | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Total, Other-Than-Temporary Impairments in AOCI | 0 | 0 |
Bonds available for sale | Corporate debt | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 139,166,000,000 | 139,461,000,000 |
Available for sale securities, Gross Unrealized Gains | 10,222,000,000 | 7,989,000,000 |
Available for sale securities, Gross Unrealized Losses | -1,060,000,000 | -2,898,000,000 |
Available for sale securities, Fair Value | 148,328,000,000 | 144,552,000,000 |
Bonds available for sale | Corporate debt | AOCI- OTTI | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Total, Other-Than-Temporary Impairments in AOCI | 73,000,000 | 74,000,000 |
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 59,528,000,000 | 55,237,000,000 |
Available for sale securities, Gross Unrealized Gains | 4,838,000,000 | 4,308,000,000 |
Available for sale securities, Gross Unrealized Losses | -540,000,000 | -907,000,000 |
Available for sale securities, Fair Value | 63,826,000,000 | 58,638,000,000 |
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | AOCI- OTTI | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Total, Other-Than-Temporary Impairments in AOCI | 2,130,000,000 | 1,857,000,000 |
Bonds available for sale | Residential mortgage backed securities (RMBS) | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 35,511,000,000 | 33,520,000,000 |
Available for sale securities, Gross Unrealized Gains | 3,507,000,000 | 3,101,000,000 |
Available for sale securities, Gross Unrealized Losses | -314,000,000 | -473,000,000 |
Available for sale securities, Fair Value | 38,704,000,000 | 36,148,000,000 |
Bonds available for sale | Residential mortgage backed securities (RMBS) | AOCI- OTTI | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Total, Other-Than-Temporary Impairments in AOCI | 1,862,000,000 | 1,670,000,000 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 11,959,000,000 | 11,216,000,000 |
Available for sale securities, Gross Unrealized Gains | 694,000,000 | 558,000,000 |
Available for sale securities, Gross Unrealized Losses | -111,000,000 | -292,000,000 |
Available for sale securities, Fair Value | 12,542,000,000 | 11,482,000,000 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | AOCI- OTTI | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Total, Other-Than-Temporary Impairments in AOCI | 218,000,000 | 125,000,000 |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 12,058,000,000 | 10,501,000,000 |
Available for sale securities, Gross Unrealized Gains | 637,000,000 | 649,000,000 |
Available for sale securities, Gross Unrealized Losses | -115,000,000 | -142,000,000 |
Available for sale securities, Fair Value | 12,580,000,000 | 11,008,000,000 |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | AOCI- OTTI | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Total, Other-Than-Temporary Impairments in AOCI | 50,000,000 | 62,000,000 |
Equity securities available for sale | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 2,066,000,000 | 1,726,000,000 |
Available for sale securities, Gross Unrealized Gains | 2,314,000,000 | 1,969,000,000 |
Available for sale securities, Gross Unrealized Losses | -36,000,000 | -39,000,000 |
Available for sale securities, Fair Value | 4,344,000,000 | 3,656,000,000 |
Equity securities available for sale | Common Stock | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 1,323,000,000 | 1,280,000,000 |
Available for sale securities, Gross Unrealized Gains | 2,268,000,000 | 1,953,000,000 |
Available for sale securities, Gross Unrealized Losses | -19,000,000 | -14,000,000 |
Available for sale securities, Fair Value | 3,572,000,000 | 3,219,000,000 |
Equity securities available for sale | Preferred Stock | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 24,000,000 | 24,000,000 |
Available for sale securities, Gross Unrealized Gains | 5,000,000 | 4,000,000 |
Available for sale securities, Gross Unrealized Losses | 0 | -1,000,000 |
Available for sale securities, Fair Value | 29,000,000 | 27,000,000 |
Equity securities available for sale | Mutual Funds | ' | ' |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ' | ' |
Available for sale securities, Amortized Cost or Cost | 719,000,000 | 422,000,000 |
Available for sale securities, Gross Unrealized Gains | 41,000,000 | 12,000,000 |
Available for sale securities, Gross Unrealized Losses | -17,000,000 | -24,000,000 |
Available for sale securities, Fair Value | $743,000,000 | $410,000,000 |
INVESTMENTS_Details_Summary_of
INVESTMENTS (Details - Summary of fair value and gross unrealized losses on available for sale securities aggregated by major investment category and length of time in a continuous unrealized loss position) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | $26,287 | $64,881 |
Gross Unrealized Losses, Less than 12 Months | 434 | 3,507 |
Fair Value, 12 Months or More | 26,982 | 9,401 |
Gross Unrealized Losses, 12 Months or More | 1,488 | 1,180 |
Fair Value, Total | 53,269 | 74,282 |
Gross Unrealized Losses, Total | 1,922 | 4,687 |
Bonds available for sale | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 25,884 | 64,411 |
Gross Unrealized Losses, Less than 12 Months | 409 | 3,468 |
Fair Value, 12 Months or More | 26,905 | 9,401 |
Gross Unrealized Losses, 12 Months or More | 1,477 | 1,180 |
Fair Value, Total | 52,789 | 73,812 |
Gross Unrealized Losses, Total | 1,886 | 4,648 |
Number of securities in an unrealized loss position | 6,689 | ' |
Number of individual securities in continuous unrealized loss position for longer than twelve months | 2,399 | ' |
Bonds available for sale | U.S. government and government sponsored entities | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 491 | 1,101 |
Gross Unrealized Losses, Less than 12 Months | 5 | 34 |
Fair Value, 12 Months or More | 303 | 42 |
Gross Unrealized Losses, 12 Months or More | 15 | 5 |
Fair Value, Total | 794 | 1,143 |
Gross Unrealized Losses, Total | 20 | 39 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 924 | 6,134 |
Gross Unrealized Losses, Less than 12 Months | 20 | 379 |
Fair Value, 12 Months or More | 1,183 | 376 |
Gross Unrealized Losses, 12 Months or More | 64 | 67 |
Fair Value, Total | 2,107 | 6,510 |
Gross Unrealized Losses, Total | 84 | 446 |
Bonds available for sale | Non-U.S. government | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 2,074 | 4,102 |
Gross Unrealized Losses, Less than 12 Months | 34 | 217 |
Fair Value, 12 Months or More | 2,213 | 710 |
Gross Unrealized Losses, 12 Months or More | 148 | 141 |
Fair Value, Total | 4,287 | 4,812 |
Gross Unrealized Losses, Total | 182 | 358 |
Bonds available for sale | Corporate debt | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 14,653 | 38,495 |
Gross Unrealized Losses, Less than 12 Months | 239 | 2,251 |
Fair Value, 12 Months or More | 14,521 | 4,926 |
Gross Unrealized Losses, 12 Months or More | 821 | 647 |
Fair Value, Total | 29,174 | 43,421 |
Gross Unrealized Losses, Total | 1,060 | 2,898 |
Bonds available for sale | Residential mortgage backed securities (RMBS) | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 3,849 | 8,543 |
Gross Unrealized Losses, Less than 12 Months | 72 | 349 |
Fair Value, 12 Months or More | 4,432 | 1,217 |
Gross Unrealized Losses, 12 Months or More | 242 | 124 |
Fair Value, Total | 8,281 | 9,760 |
Gross Unrealized Losses, Total | 314 | 473 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 956 | 3,191 |
Gross Unrealized Losses, Less than 12 Months | 6 | 176 |
Fair Value, 12 Months or More | 2,483 | 1,215 |
Gross Unrealized Losses, 12 Months or More | 105 | 116 |
Fair Value, Total | 3,439 | 4,406 |
Gross Unrealized Losses, Total | 111 | 292 |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 2,937 | 2,845 |
Gross Unrealized Losses, Less than 12 Months | 33 | 62 |
Fair Value, 12 Months or More | 1,770 | 915 |
Gross Unrealized Losses, 12 Months or More | 82 | 80 |
Fair Value, Total | 4,707 | 3,760 |
Gross Unrealized Losses, Total | 115 | 142 |
Equity securities available for sale | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 403 | 470 |
Gross Unrealized Losses, Less than 12 Months | 25 | 39 |
Fair Value, 12 Months or More | 77 | 0 |
Gross Unrealized Losses, 12 Months or More | 11 | 0 |
Fair Value, Total | 480 | 470 |
Gross Unrealized Losses, Total | 36 | 39 |
Number of securities in an unrealized loss position | 137 | ' |
Equity securities available for sale | Common Stock | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 116 | 96 |
Gross Unrealized Losses, Less than 12 Months | 13 | 14 |
Fair Value, 12 Months or More | 7 | 0 |
Gross Unrealized Losses, 12 Months or More | 6 | 0 |
Fair Value, Total | 123 | 96 |
Gross Unrealized Losses, Total | 19 | 14 |
Equity securities available for sale | Preferred Stock | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 5 | 5 |
Gross Unrealized Losses, Less than 12 Months | 0 | 1 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 5 | 5 |
Gross Unrealized Losses, Total | 0 | 1 |
Equity securities available for sale | Mutual Funds | ' | ' |
Fair value and gross unrealized losses on AIG's available for sale securities | ' | ' |
Fair Value, Less than 12 Months | 282 | 369 |
Gross Unrealized Losses, Less than 12 Months | 12 | 24 |
Fair Value, 12 Months or More | 70 | 0 |
Gross Unrealized Losses, 12 Months or More | 5 | 0 |
Fair Value, Total | 352 | 369 |
Gross Unrealized Losses, Total | $17 | $24 |
INVESTMENTS_Details_Amortized_1
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities Disclosures | ' | ' |
Fixed Maturity Securities in a Loss Position Available for Sale , Amortized Cost, Total | $251,986 | $250,257 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 265,786 | 258,274 |
Fixed Maturity Securities in a Loss Position AFS | ' | ' |
Available-for-sale Securities Disclosures | ' | ' |
Due in one year or less, Amortized Cost | 857 | ' |
Due after one year through five years, Amortized Cost | 7,038 | ' |
Due after five years through ten years, Amortized Cost | 14,788 | ' |
Due after ten years, Amortized Cost | 15,025 | ' |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 16,967 | ' |
Fixed Maturity Securities in a Loss Position Available for Sale , Amortized Cost, Total | 54,675 | ' |
Due in one year or less, Fair Value | 846 | ' |
Due after one year through five years, Fair Value | 6,926 | ' |
Due after five years through ten years, Fair Value | 14,353 | ' |
Due after ten years, Fair Value | 14,237 | ' |
Mortgage-backed, asset-backed and collateralized, Fair Value | 16,427 | ' |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 52,789 | ' |
Bonds available for sale | ' | ' |
Available-for-sale Securities Disclosures | ' | ' |
Due in one year or less, Amortized Cost | 10,843 | ' |
Due after one year through five years, Amortized Cost | 50,274 | ' |
Due after five years through ten years, Amortized Cost | 65,793 | ' |
Due after ten years, Amortized Cost | 63,482 | ' |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 59,528 | ' |
Fixed Maturity Securities in a Loss Position Available for Sale , Amortized Cost, Total | 249,920 | 248,531 |
Due in one year or less, Fair Value | 11,017 | ' |
Due after one year through five years, Fair Value | 52,949 | ' |
Due after five years through ten years, Fair Value | 69,252 | ' |
Due after ten years, Fair Value | 68,742 | ' |
Mortgage-backed, asset-backed and collateralized, Fair Value | 63,826 | ' |
Fixed Maturity Securities Available for Sale, Fair Value, Total | $265,786 | ' |
INVESTMENTS_Details_Realized_g
INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Available-for-sale Securities Disclosures | ' | ' | ' | ' |
Gross Realized Gains | $151,000,000 | $534,000,000 | $630,000,000 | $2,317,000,000 |
Aggregate fair value of available for sale securities sold | 4,200,000,000 | 8,400,000,000 | 16,200,000,000 | 27,700,000,000 |
Net realized capital gains (losses) | 100,000,000 | 500,000,000 | 500,000,000 | 2,100,000,000 |
Gross Realized Losses | 25,000,000 | 32,000,000 | 75,000,000 | 168,000,000 |
Fixed maturity securities | ' | ' | ' | ' |
Available-for-sale Securities Disclosures | ' | ' | ' | ' |
Gross Realized Gains | 118,000,000 | 516,000,000 | 528,000,000 | 2,216,000,000 |
Gross Realized Losses | 21,000,000 | 26,000,000 | 65,000,000 | 153,000,000 |
Equity securities available for sale | ' | ' | ' | ' |
Available-for-sale Securities Disclosures | ' | ' | ' | ' |
Gross Realized Gains | 33,000,000 | 18,000,000 | 102,000,000 | 101,000,000 |
Gross Realized Losses | $4,000,000 | $6,000,000 | $10,000,000 | $15,000,000 |
INVESTMENTS_Details_Value_of_o
INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | $21,147 | $23,457 |
Other Securities, Percent of Total | 100.00% | 100.00% |
U.S. Government agency backed ABS | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 900 | 1,000 |
Fixed maturity securities | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 20,381 | 22,623 |
Other Securities, Percent of Total | 96.00% | 97.00% |
Fixed maturity securities | U.S. government and government sponsored entities | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 5,258 | 5,723 |
Other Securities, Percent of Total | 25.00% | 24.00% |
Fixed maturity securities | Obligations of states, municipalities and political subdivisions | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 122 | 121 |
Other Securities, Percent of Total | 1.00% | 1.00% |
Fixed maturity securities | Non-U.S. government | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 2 | 2 |
Other Securities, Percent of Total | 0.00% | 0.00% |
Fixed maturity securities | Corporate debt | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 948 | 1,169 |
Other Securities, Percent of Total | 4.00% | 5.00% |
Fixed maturity securities | Mortgage-backed, asset-backed and collateralized | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 14,051 | 15,601 |
Other Securities, Percent of Total | 66.00% | 67.00% |
Fixed maturity securities | Residential mortgage backed securities (RMBS) | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 2,166 | 2,263 |
Other Securities, Percent of Total | 10.00% | 10.00% |
Fixed maturity securities | Commercial mortgage-backed securities (CMBS) | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 1,220 | 1,353 |
Other Securities, Percent of Total | 6.00% | 6.00% |
Fixed maturity securities | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 10,665 | 11,985 |
Other Securities, Percent of Total | 50.00% | 51.00% |
Fixed maturity securities | Other | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | 0 | 7 |
Equity securities | ' | ' |
TRADING SECURITIES | ' | ' |
Other Securities, Fair Value | $766 | $834 |
Other Securities, Percent of Total | 4.00% | 3.00% |
INVESTMENTS_Details_Components
INVESTMENTS (Details - Components of Net investment income) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pledged Investments | ' | ' | ' | ' |
Total investment income | $4,161 | $3,693 | $12,506 | $12,004 |
Investment expenses | 133 | 120 | 398 | 423 |
Net investment income | 4,028 | 3,573 | 12,108 | 11,581 |
Fixed maturity securities, including short-term investments | ' | ' | ' | ' |
Pledged Investments | ' | ' | ' | ' |
Total investment income | 3,022 | 3,005 | 9,264 | 8,969 |
Equity securities | ' | ' | ' | ' |
Pledged Investments | ' | ' | ' | ' |
Total investment income | 135 | 98 | 67 | 123 |
Interest on mortgage and other loans | ' | ' | ' | ' |
Pledged Investments | ' | ' | ' | ' |
Total investment income | 318 | 292 | 947 | 862 |
Alternative investments | ' | ' | ' | ' |
Pledged Investments | ' | ' | ' | ' |
Total investment income | 636 | 288 | 2,108 | 1,892 |
Real estate | ' | ' | ' | ' |
Pledged Investments | ' | ' | ' | ' |
Total investment income | 25 | 32 | 86 | 99 |
Other investments | ' | ' | ' | ' |
Pledged Investments | ' | ' | ' | ' |
Total investment income | $25 | ($22) | $34 | $59 |
INVESTMENTS_Details_Components1
INVESTMENTS (Details - Components of Net realized capital gains (losses)) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other-than-temporary impairments: | ' | ' | ' | ' |
Severity | $0 | $0 | $0 | ($5) |
Change in intent | -14 | -1 | -20 | -4 |
Foreign currency declines | -3 | 0 | -13 | 0 |
Issuer-specific credit events | -31 | -51 | -124 | -130 |
Adverse projected cash flows | -2 | 0 | -7 | -7 |
Provision for loan losses | -11 | -33 | 9 | -38 |
Foreign exchange transactions | 350 | -276 | 329 | 135 |
Derivative instruments | 36 | 192 | -302 | 209 |
Impairments on investments in life settlements | -52 | -61 | -139 | -139 |
Other | 71 | -20 | 70 | -27 |
Total net realized capital gains (losses) | 470 | 252 | 358 | 2,143 |
Fixed maturity securities | ' | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' | ' |
Sale of fixed maturity securities | 97 | 490 | 463 | 2,063 |
Equity securities | ' | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' | ' |
Sale of fixed maturity securities | $29 | $12 | $92 | $86 |
INVESTMENTS_Details_Increase_d
INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Available-for-sale Securities Disclosures | ' | ' | ' | ' |
Increase (decrease) in unrealized appreciation (depreciation) of investments | ($1,118) | ($1,457) | $6,598 | ($12,734) |
Fixed maturity securities | ' | ' | ' | ' |
Available-for-sale Securities Disclosures | ' | ' | ' | ' |
Increase (decrease) in unrealized appreciation (depreciation) of investments | -1,515 | -1,696 | 6,123 | -12,971 |
Equity securities | ' | ' | ' | ' |
Available-for-sale Securities Disclosures | ' | ' | ' | ' |
Increase (decrease) in unrealized appreciation (depreciation) of investments | 303 | 189 | 348 | 180 |
Other investments | ' | ' | ' | ' |
Available-for-sale Securities Disclosures | ' | ' | ' | ' |
Increase (decrease) in unrealized appreciation (depreciation) of investments | $94 | $50 | $127 | $57 |
INVESTMENTS_Details_Rollforwar
INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) (Fixed maturity securities, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fixed maturity securities | ' | ' | ' | ' |
Other Than Temporary Impairment Credit Losses Recognized in Earnings | ' | ' | ' | ' |
Balance, beginning of year | $3,166 | $4,236 | $3,872 | $5,164 |
Increases due to: | ' | ' | ' | ' |
Credit impairments on new securities subject to impairment losses | 13 | 6 | 35 | 33 |
Additional credit impairments on previously impaired securities | 5 | 29 | 59 | 59 |
Reductions due to: | ' | ' | ' | ' |
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell | -116 | -68 | -528 | -626 |
Accretion on securities previously impaired due to credit | -183 | -184 | -544 | -611 |
Other | 0 | 0 | -9 | 0 |
Balance, end of year | $2,885 | $4,019 | $2,885 | $4,019 |
INVESTMENTS_Details_Purchased_
INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Available-for-sale Securities Disclosures | ' | ' | ' | ' | ' |
Amortized cost | $249,920 | ' | $249,920 | ' | $248,531 |
Fair value | 270,130 | ' | 270,130 | ' | 261,930 |
Purchased Credit Impaired (PCI) Securities | ' | ' | ' | ' | ' |
Available-for-sale Securities Disclosures | ' | ' | ' | ' | ' |
Contractually required payments (principal and interest) | 29,851 | ' | 29,851 | ' | ' |
Cash flows expected to be collected | 23,983 | ' | 23,983 | ' | ' |
Recorded investment in acquired securities | 15,896 | ' | 15,896 | ' | ' |
Outstanding principal balance | 16,883 | ' | 16,883 | ' | 14,741 |
Amortized cost | 12,097 | ' | 12,097 | ' | 10,110 |
Fair value | 13,489 | ' | 13,489 | ' | 11,338 |
Changes in activity for the accretable yield on PCI securities: | ' | ' | ' | ' | ' |
Balance, beginning of year | 7,042 | 5,901 | 6,940 | 4,766 | ' |
Newly purchased PCI securities | 358 | 202 | 1,127 | 1,308 | ' |
Disposals | 0 | 0 | 0 | -60 | ' |
Accretion | -223 | -187 | -654 | -517 | ' |
Effect of changes in interest rate indices | -96 | 282 | -327 | 388 | ' |
Net reclassification from non-accretable difference, including effects of prepayments | 30 | 405 | 25 | 718 | ' |
Balance, end of year | $7,111 | $6,603 | $7,111 | $6,603 | ' |
INVESTMENTS_Details_Pledged_In
INVESTMENTS (Details - Pledged Investments) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Pledged Investments | ' | ' |
Fair Value of securities pledged | $7,347,000,000 | $8,878,000,000 |
Fair value of amount repledged | 106,000,000 | 71,000,000 |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 6,200,000,000 | 6,700,000,000 |
FHLBs | ' | ' |
Pledged Investments | ' | ' |
Fair value of available for sale securities | 530,000,000 | 80,000,000 |
Amount owned by subsidiaries | 53,000,000 | 57,000,000 |
Secured financing | ' | ' |
Pledged Investments | ' | ' |
Fair value of available for sale securities | 2,860,000,000 | 3,837,000,000 |
Fair Value of other securities | 2,187,000,000 | 2,766,000,000 |
GIAs | ' | ' |
Pledged Investments | ' | ' |
Fair Value of other securities | $3,600,000,000 | $4,200,000,000 |
LENDING_ACTIVITIES_Details_Com
LENDING ACTIVITIES (Details - Composition of Mortgage and other loans receivable) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Commercial mortgages | Commercial mortgages | Commercial mortgages | Commercial mortgages | Commercial mortgages | Commercial mortgages | Commercial mortgages | Commercial mortgages | Life insurance policy loans | Life insurance policy loans | Commercial loans, other loans and notes receivable | Commercial loans, other loans and notes receivable | ||||
California | California | New York | New York | |||||||||||||
Composition of Mortgages and other loans receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total mortgage and other loans receivable | $23,681 | $21,077 | ' | ' | $17,841 | $16,195 | ' | ' | ' | ' | ' | ' | $2,756 | $2,830 | $3,084 | $2,052 |
Allowance for losses | -284 | -312 | -398 | -405 | -175 | -201 | -203 | -159 | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage and other loans receivable, net | $23,397 | $20,765 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of mortgage loans in geographic area | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | 18.00% | 16.00% | 17.00% | ' | ' | ' | ' |
LENDING_ACTIVITIES_Details_Cre
LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgages) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Apartments | Apartments | Offices | Offices | Retail | Retail | Industrial | Industrial | Hotel | Hotel | Others | Others | Commercial mortgages | Commercial mortgages | ||||
loan | loan | |||||||||||||||||
Credit quality indicators for commercial mortgage loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans in good standing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 973 | 978 |
Number of loans restructured | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 9 |
Number of loans 90 days or less delinquent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 |
Number of loans greater than 90 days delinquent or in process of foreclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 6 |
Number of Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 985 | 995 |
In good standing | ' | ' | ' | ' | $3,231 | $2,786 | $5,390 | $4,636 | $3,868 | $3,364 | $1,718 | $1,607 | $1,469 | $1,431 | $1,784 | $1,970 | $17,460 | $15,794 |
Restructured | ' | ' | ' | ' | 4 | 53 | 285 | 210 | 16 | 6 | 0 | 0 | 0 | 0 | 22 | 85 | 327 | 354 |
90 days or less delinquent | ' | ' | ' | ' | 0 | 0 | 14 | 0 | 0 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 14 | 5 |
Greater than 90 days delinquent or in process of foreclosure | ' | ' | ' | ' | 40 | 0 | 0 | 42 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40 | 42 |
Mortgage and other loans receivable, net | 23,397 | 20,765 | ' | ' | 3,275 | 2,839 | 5,689 | 4,888 | 3,884 | 3,375 | 1,718 | 1,607 | 1,469 | 1,431 | 1,806 | 2,055 | 17,841 | 16,195 |
Allowance for losses | $284 | $312 | $398 | $405 | $9 | $10 | $96 | $109 | $14 | $9 | $20 | $19 | $6 | $3 | $30 | $51 | $175 | $201 |
Percentage of loans that are current as to payments of principal and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | 98.00% |
Percentage restructured | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 2.00% |
Percentage Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% |
Percentage of loans with allowance for losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% |
Percentage of current commercial mortgages held | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.00% | ' |
LENDING_ACTIVITIES_Details_All
LENDING ACTIVITIES (Details - Allowance for Loan Losses) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Changes in the allowance for losses on Mortgage and other loans receivable | ' | ' |
Allowance, beginning of year | $312 | $405 |
Loans charged off | -23 | -42 |
Recoveries of loans previously charged off | 16 | 9 |
Net charge-offs | -7 | -33 |
Provision for loan losses | -22 | 31 |
Other | 1 | -5 |
Activity of discontinued operations | 0 | 0 |
Allowance, end of period | 284 | 398 |
Loans modified in a troubled debt restructuring | 0 | 0 |
Commercial mortgages | ' | ' |
Changes in the allowance for losses on Mortgage and other loans receivable | ' | ' |
Allowance, beginning of year | 201 | 159 |
Loans charged off | -10 | -5 |
Recoveries of loans previously charged off | 0 | 3 |
Net charge-offs | -10 | -2 |
Provision for loan losses | -16 | 47 |
Other | 0 | -1 |
Activity of discontinued operations | 0 | 0 |
Allowance, end of period | 175 | 203 |
Allowance related to individually assessed credit losses | 86 | 102 |
Commercial mortgage loans | 246 | 267 |
Other Loans | ' | ' |
Changes in the allowance for losses on Mortgage and other loans receivable | ' | ' |
Allowance, beginning of year | 111 | 246 |
Loans charged off | -13 | -37 |
Recoveries of loans previously charged off | 16 | 6 |
Net charge-offs | 3 | -31 |
Provision for loan losses | -6 | -16 |
Other | 1 | -4 |
Activity of discontinued operations | 0 | 0 |
Allowance, end of period | $109 | $195 |
VARIABLE_INTEREST_ENTITIES_Det
VARIABLE INTEREST ENTITIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Assets: | ' | ' |
Bonds available for sale | $270,130,000,000 | $261,930,000,000 |
Other bond securities | 20,381,000,000 | 22,623,000,000 |
Mortgage and other loans receivable | 23,397,000,000 | 20,765,000,000 |
Other invested assets | 33,908,000,000 | 28,659,000,000 |
Real estate and investment funds | ' | ' |
Liabilities: | ' | ' |
Off-balance sheet exposure | 60,200,000 | 50,800,000 |
Consolidated VIE | ' | ' |
Assets: | ' | ' |
Bonds available for sale | 11,361,000,000 | 11,098,000,000 |
Other bond securities | 8,081,000,000 | 8,310,000,000 |
Mortgage and other loans receivable | 2,628,000,000 | 1,697,000,000 |
Other invested assets | 3,016,000,000 | 3,628,000,000 |
Other assets | 1,435,000,000 | 1,279,000,000 |
Total assets | 26,521,000,000 | 26,012,000,000 |
Liabilities: | ' | ' |
Long-term debt | 1,788,000,000 | 994,000,000 |
Other liabilities | 412,000,000 | 555,000,000 |
Total liabilities | 2,200,000,000 | 1,549,000,000 |
Consolidated VIE | Real estate and investment funds | ' | ' |
Assets: | ' | ' |
Other invested assets | 586,000,000 | 849,000,000 |
Other assets | 41,000,000 | 49,000,000 |
Total assets | 627,000,000 | 898,000,000 |
Liabilities: | ' | ' |
Long-term debt | 69,000,000 | 71,000,000 |
Other liabilities | 32,000,000 | 31,000,000 |
Total liabilities | 101,000,000 | 102,000,000 |
Consolidated VIE | Securitization vehicles | ' | ' |
Assets: | ' | ' |
Bonds available for sale | 11,320,000,000 | 11,028,000,000 |
Other bond securities | 7,375,000,000 | 7,449,000,000 |
Mortgage and other loans receivable | 2,460,000,000 | 1,508,000,000 |
Other assets | 697,000,000 | 481,000,000 |
Total assets | 21,852,000,000 | 20,466,000,000 |
Liabilities: | ' | ' |
Long-term debt | 1,371,000,000 | 494,000,000 |
Other liabilities | 91,000,000 | 74,000,000 |
Total liabilities | 1,462,000,000 | 568,000,000 |
Investment-grade debt securities, loans and other assets | 21,700,000,000 | 21,400,000,000 |
Consolidated VIE | Structured investment vehicle | ' | ' |
Assets: | ' | ' |
Other bond securities | 662,000,000 | 748,000,000 |
Other assets | 90,000,000 | 93,000,000 |
Total assets | 752,000,000 | 841,000,000 |
Liabilities: | ' | ' |
Long-term debt | 91,000,000 | 87,000,000 |
Other liabilities | 0 | ' |
Total liabilities | 91,000,000 | 87,000,000 |
Consolidated VIE | Affordable housing partnerships | ' | ' |
Assets: | ' | ' |
Other invested assets | 1,725,000,000 | 1,986,000,000 |
Other assets | 46,000,000 | 41,000,000 |
Total assets | 1,771,000,000 | 2,027,000,000 |
Liabilities: | ' | ' |
Long-term debt | 184,000,000 | 188,000,000 |
Other liabilities | 88,000,000 | 83,000,000 |
Total liabilities | 272,000,000 | 271,000,000 |
Consolidated VIE | Other | ' | ' |
Assets: | ' | ' |
Bonds available for sale | 41,000,000 | 70,000,000 |
Other bond securities | 44,000,000 | 113,000,000 |
Mortgage and other loans receivable | 168,000,000 | 189,000,000 |
Other invested assets | 705,000,000 | 793,000,000 |
Other assets | 561,000,000 | 615,000,000 |
Total assets | 1,519,000,000 | 1,780,000,000 |
Liabilities: | ' | ' |
Long-term debt | 73,000,000 | 154,000,000 |
Other liabilities | 201,000,000 | 367,000,000 |
Total liabilities | 274,000,000 | 521,000,000 |
Unconsolidated VIE | ' | ' |
Assets: | ' | ' |
Other invested assets | 3,200,000,000 | 2,800,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ' | ' |
Total VIE Assets | 21,281,000,000 | 18,758,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 3,210,000,000 | 2,857,000,000 |
Maximum Exposure to Loss, Off-Balance Sheet | 421,000,000 | 289,000,000 |
Total maximum exposure to loss | 3,631,000,000 | 3,146,000,000 |
Unconsolidated VIE | Real estate and investment funds | ' | ' |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ' | ' |
Total VIE Assets | 20,228,000,000 | 17,572,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 2,741,000,000 | 2,343,000,000 |
Maximum Exposure to Loss, Off-Balance Sheet | 421,000,000 | 289,000,000 |
Total maximum exposure to loss | 3,162,000,000 | 2,632,000,000 |
Unconsolidated VIE | Affordable housing partnerships | ' | ' |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ' | ' |
Total VIE Assets | 438,000,000 | 478,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 438,000,000 | 477,000,000 |
Total maximum exposure to loss | 438,000,000 | 477,000,000 |
Unconsolidated VIE | Other | ' | ' |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ' | ' |
Total VIE Assets | 615,000,000 | 708,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 31,000,000 | 37,000,000 |
Total maximum exposure to loss | $31,000,000 | $37,000,000 |
DERIVATIVES_AND_HEDGE_ACCOUNTI2
DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of derivative instruments) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | $105,068 | $114,494 |
Gross Derivative Assets, Fair Value | 4,162 | 4,326 |
Gross Derivative Liabilities, Notional Amount | 93,503 | 92,063 |
Gross Derivative Liabilities, Fair Value | 6,533 | 6,214 |
Bifurcated embedded derivatives | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 0 | ' |
Gross Derivative Assets, Fair Value | 0 | ' |
Gross Derivative Liabilities, Notional Amount | 35,600 | 6,700 |
Gross Derivative Liabilities, Fair Value | 1,023 | 424 |
Derivatives designated as hedging instruments | Interest rate contracts | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 0 | ' |
Gross Derivative Assets, Fair Value | 0 | ' |
Gross Derivative Liabilities, Notional Amount | 25 | 112 |
Gross Derivative Liabilities, Fair Value | 1 | 15 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 327 | ' |
Gross Derivative Assets, Fair Value | 12 | ' |
Gross Derivative Liabilities, Notional Amount | 1,645 | 1,857 |
Gross Derivative Liabilities, Fair Value | 164 | 190 |
Derivatives designated as hedging instruments | Equity contracts | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 99 | ' |
Gross Derivative Assets, Fair Value | 1 | ' |
Gross Derivative Liabilities, Notional Amount | 8 | ' |
Gross Derivative Liabilities, Fair Value | 1 | ' |
Derivatives not designated as hedging instruments | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 104,642 | 114,494 |
Gross Derivative Assets, Fair Value | 4,149 | 4,326 |
Gross Derivative Liabilities, Notional Amount | 91,825 | 90,094 |
Gross Derivative Liabilities, Fair Value | 6,367 | 6,009 |
Derivatives not designated as hedging instruments | Interest rate contracts | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 47,090 | 50,897 |
Gross Derivative Assets, Fair Value | 2,823 | 3,771 |
Gross Derivative Liabilities, Notional Amount | 37,613 | 59,585 |
Gross Derivative Liabilities, Fair Value | 2,783 | 3,849 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 13,965 | 1,774 |
Gross Derivative Assets, Fair Value | 1,052 | 52 |
Gross Derivative Liabilities, Notional Amount | 9,456 | 3,789 |
Gross Derivative Liabilities, Fair Value | 1,339 | 129 |
Derivatives not designated as hedging instruments | Equity contracts | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 8,373 | 29,296 |
Gross Derivative Assets, Fair Value | 220 | 413 |
Gross Derivative Liabilities, Notional Amount | 38,420 | 9,840 |
Gross Derivative Liabilities, Fair Value | 1,113 | 524 |
Derivatives not designated as hedging instruments | Commodity contracts | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 15 | 17 |
Gross Derivative Assets, Fair Value | 0 | 1 |
Gross Derivative Liabilities, Notional Amount | 12 | 13 |
Gross Derivative Liabilities, Fair Value | 5 | 5 |
Derivatives not designated as hedging instruments | Credit contracts | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 30 | 70 |
Gross Derivative Assets, Fair Value | 20 | 55 |
Gross Derivative Liabilities, Notional Amount | 5,688 | 15,459 |
Gross Derivative Liabilities, Fair Value | 1,038 | 1,335 |
Derivatives not designated as hedging instruments | Other contracts | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | 35,169 | 32,440 |
Gross Derivative Assets, Fair Value | 34 | 34 |
Gross Derivative Liabilities, Notional Amount | 636 | 1,408 |
Gross Derivative Liabilities, Fair Value | 89 | 167 |
Derivatives not designated as hedging instruments | Bifurcated embedded derivatives | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Gross Derivative Assets, Notional Amount | ' | 23,200 |
Gross Derivative Assets, Fair Value | ' | $107 |
DERIVATIVES_AND_HEDGE_ACCOUNTI3
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Derivative Assets, Notional Amount | $105,068,000,000 | $114,494,000,000 |
Derivative Assets, Fair Value | 4,162,000,000 | 4,326,000,000 |
Derivative Liabilities, Notional Amount | 93,503,000,000 | 92,063,000,000 |
Derivative Liabilities, Fair Value | 6,533,000,000 | 6,214,000,000 |
Derivative assets, Counterparty netting, Fair Value | -1,769,000,000 | -1,734,000,000 |
Derivative assets, Cash collateral, Fair Value | -805,000,000 | -820,000,000 |
Total derivative assets, net | 1,588,000,000 | 1,772,000,000 |
Derivative liabilities, Counterparty netting, Fair Value | -1,769,000,000 | -1,734,000,000 |
Derivative liabilities, Cash collateral, Fair Value | -1,186,000,000 | -1,484,000,000 |
Total derivative liabilities, net | 3,578,000,000 | 2,996,000,000 |
Less: Bifurcated embedded derivatives assets, fair value | 0 | 107,000,000 |
Less: Bifurcated embedded derivative liabilities, fair value | 1,076,000,000 | 485,000,000 |
Total derivative assets on consolidated balance sheet | 1,588,000,000 | 1,665,000,000 |
Total derivative liabilities on consolidated balance sheet | 2,502,000,000 | 2,511,000,000 |
Collateral | ' | ' |
Collateral posted to third parties for derivative transactions | 2,900,000,000 | 3,200,000,000 |
Collateral obtained from third parties for derivative transactions | 1,000,000,000 | 1,000,000,000 |
Non-Global Capital Markets | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Derivative Assets, Notional Amount | 49,307,000,000 | 60,021,000,000 |
Derivative Assets, Fair Value | 523,000,000 | 795,000,000 |
Derivative Liabilities, Notional Amount | 43,894,000,000 | 15,668,000,000 |
Derivative Liabilities, Fair Value | 1,715,000,000 | 1,202,000,000 |
Other Operations | Global Capital Markets (GCM) derivatives | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Derivative Assets, Notional Amount | 55,761,000,000 | 54,473,000,000 |
Derivative Assets, Fair Value | 3,639,000,000 | 3,531,000,000 |
Derivative Liabilities, Notional Amount | 49,609,000,000 | 76,395,000,000 |
Derivative Liabilities, Fair Value | 4,818,000,000 | 5,012,000,000 |
Other Operations | AIG Financial Products | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Derivative Assets, Notional Amount | 30,619,000,000 | 41,942,000,000 |
Derivative Assets, Fair Value | 2,331,000,000 | 2,567,000,000 |
Derivative Liabilities, Notional Amount | 28,650,000,000 | 52,679,000,000 |
Derivative Liabilities, Fair Value | 3,020,000,000 | 3,506,000,000 |
Other Operations | AIG Markets | ' | ' |
Notional amounts and fair values of AIG's derivative instruments | ' | ' |
Derivative Assets, Notional Amount | 25,142,000,000 | 12,531,000,000 |
Derivative Assets, Fair Value | 1,308,000,000 | 964,000,000 |
Derivative Liabilities, Notional Amount | 20,959,000,000 | 23,716,000,000 |
Derivative Liabilities, Fair Value | $1,798,000,000 | $1,506,000,000 |
DERIVATIVES_AND_HEDGE_ACCOUNTI4
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $0 | $35 | $107 | $13 |
Loss on extinguishment of debt | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on hedged items | ' | ' | 50 | ' |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 0 | 2 | 2 | 2 |
Gain (loss) recognized in earnings on hedged items | 10 | 17 | 85 | 70 |
Amortization of debt basis adjustment following the discontinuation of hedge accounting | 10 | 17 | 37 | 72 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Net realized capital gains (losses) | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | ' | ' | 1 | ' |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Interest credited to policyholder account balances | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | ' | ' | 1 | ' |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | -76 | -21 | -20 | -61 |
Gain (loss) recognized in earnings on hedged items | 97 | 19 | 37 | 66 |
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | 9 | -2 | -3 | 5 |
Amortization of debt basis adjustment following the discontinuation of hedge accounting | 14 | ' | 22 | ' |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Interest credited to policyholder account balances | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 1 | ' | 0 | ' |
Gain (loss) recognized in earnings on hedged items | -2 | ' | -3 | ' |
Derivatives designated as hedging instruments | Equity contracts | Fair value hedging | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 4 | ' | -10 | ' |
Gain (loss) recognized in earnings on hedged items | -6 | ' | 8 | ' |
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | -2 | ' | -2 | ' |
Derivatives not designated as hedging instruments | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 441 | 175 | 434 | 920 |
Derivatives not designated as hedging instruments | Policy fees | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 74 | 56 | 210 | 149 |
Derivatives not designated as hedging instruments | Net investment income | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 43 | -7 | 69 | 22 |
Derivatives not designated as hedging instruments | Net realized capital gains (losses) | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 13 | 200 | -302 | 200 |
Derivatives not designated as hedging instruments | Other income (losses) | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 309 | -71 | 447 | 560 |
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 2 | -3 | 10 | -11 |
Derivatives not designated as hedging instruments | Interest rate contracts | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 222 | 35 | 409 | -250 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 253 | -83 | 276 | 64 |
Derivatives not designated as hedging instruments | Equity contracts | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | -151 | 158 | -562 | 670 |
Embedded derivative gains (losses) | -64 | 266 | -406 | 1,000 |
Derivatives not designated as hedging instruments | Commodity contracts | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | -2 | -1 | -1 | -3 |
Derivatives not designated as hedging instruments | Credit contracts | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | 75 | 52 | 229 | 365 |
Derivatives not designated as hedging instruments | Other contracts | ' | ' | ' | ' |
Derivative instruments gain (loss): | ' | ' | ' | ' |
Gain (loss) recognized in earnings on derivatives | $44 | $14 | $83 | $74 |
DERIVATIVES_AND_HEDGE_ACCOUNTI5
DERIVATIVES AND HEDGE ACCOUNTING (Details - Global Capital Market Derivatives) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Credit Risk-Related Contingent Features | Credit Risk-Related Contingent Features | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | Global Capital Markets (GCM) derivatives | |||
Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Super Senior CDS | Written single name CDS | Written single name CDS | |||||
Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | Arbitrage | |||||||
Multi-sector CDOs | Multi-sector CDOs | Multi-sector CDOs | Multi-sector CDOs | Multi-sector CDOs | Corporate debt/CLOs | Corporate debt/CLOs | Corporate debt/CLOs | Corporate debt/CLOs | Corporate debt/CLOs | ||||||||||||
Credit derivatives: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of credit risk derivatives | ' | ' | ' | ' | $5,484,000,000 | ' | $5,484,000,000 | ' | $15,089,000,000 | $2,769,000,000 | ' | $2,769,000,000 | ' | $3,257,000,000 | $2,715,000,000 | ' | $2,715,000,000 | ' | $11,832,000,000 | $205,000,000 | $373,000,000 |
Fair Value of Derivative (Asset) Liability | ' | ' | ' | ' | 995,000,000 | ' | 995,000,000 | ' | 1,277,000,000 | 989,000,000 | ' | 989,000,000 | ' | 1,249,000,000 | 6,000,000 | ' | 6,000,000 | ' | 28,000,000 | ' | ' |
Unrealized market valuation gain (loss) on credit derivatives | ' | ' | ' | ' | 75,000,000 | 54,000,000 | 223,000,000 | 356,000,000 | ' | 63,000,000 | 49,000,000 | 201,000,000 | 330,000,000 | ' | 12,000,000 | 5,000,000 | 22,000,000 | 26,000,000 | ' | ' | ' |
Additional amount paid for CDS terminated during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral posted | ' | ' | 3,600,000,000 | 3,100,000,000 | ' | ' | ' | ' | ' | 899,000,000 | ' | 899,000,000 | ' | 1,100,000,000 | 182,000,000 | ' | 182,000,000 | ' | 353,000,000 | 26,000,000 | 38,000,000 |
Notional amount of CDS written on super senior tranches of CLOs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 790,000,000 | ' | 790,000,000 | ' | 1,000,000,000 | ' | ' |
Derivative weighted average maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '3 years | ' | ' | '3 years | '3 years |
Notional amount of CDS purchased offsets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | 50,000,000 |
Notional amount of single name CDS maximum exposure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | 323,000,000 |
Fair value of derivative liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000,000 | 32,000,000 |
Aggregate fair value of net liability position | ' | ' | 2,800,000,000 | 2,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional collateral requirements, one-notch downgrade | ' | ' | 48,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Further additional collateral requirements, one-notch downgrade | ' | ' | 190,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of hybrid securities | 6,100,000,000 | 6,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Par value of hybrid securities | $12,100,000,000 | $13,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONTINGENCIES_COMMITMENTS_AND_1
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Loss Contingencies) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 22 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Nov. 29, 2012 | Apr. 08, 2013 | Oct. 22, 2014 | Jul. 15, 2014 | Sep. 16, 2013 | Mar. 20, 2009 | Nov. 25, 2008 | Sep. 30, 2014 | Nov. 15, 2013 | Mar. 11, 2013 | Nov. 21, 2011 | 23-May-14 | Oct. 29, 2013 | Feb. 25, 2010 | Sep. 30, 2014 | 23-May-14 | Sep. 30, 2014 | Sep. 30, 2012 | Oct. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Chartis U.S. | UGC | Consolidated 2008 Securities Litigation | Consolidated 2008 Securities Litigation | Consolidated 2008 Securities Litigation | Consolidated 2008 Securities Litigation | ERISA Litigation II | Canadian Securities Class Action claim | Starr International Litigation | Starr International Litigation | Starr International Litigation | False Claims Act complaint | False Claims Act complaint | False Claims Act complaint | False Claims Act complaint | False Claims Act complaint | Caremark | Use of SSDMF | Subpoenas from the New York Department of Financial Services (NYDFS) | Subpoenas from the New York Department of Financial Services (NYDFS) | Subpoenas from the Manhattan District Attorney's Office (NYDA) | |||
item | item | complaint | complaint | item | class | item | individual | multiple | FRBNY Credit Facility [Member] | complaint | MetLife | MetLife | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of purported class action complaints | ' | ' | ' | ' | ' | ' | ' | 8 | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Number of similar actions | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages claimed | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $3,200,000,000 | ' | ' | ' | ' |
Punitive damages claimed | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership in AIG received by Department of the Treasury | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of individuals (Relators) seeking to assert claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Damages sought, multiple of damages sustained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Number of shareholders who have submitted timely and valid requests to opt out of the class | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 286,892 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of purported classes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for regulatory assessment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' |
Settlement agreement, number of jurisdictions | ' | ' | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Civil penalty paid | ' | ' | 50,000,000 | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Legal Settlements | ' | ' | ' | ' | 960,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash settlement Amount | ' | ' | ' | ' | ' | 960,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | 50,000,000 | 10,000,000 |
Decrease in the amount owed to the FRBNY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000,000 | ' | ' | ' | ' | ' |
Period for which complaint is unsealed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' |
Number of former subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized gains on unwinding on a position | $0 | $196,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONTINGENCIES_COMMITMENTS_AND_2
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Long term purchase commitments) (USD $) | Sep. 30, 2014 |
In Billions, unless otherwise specified | |
Other Commitments | ' |
Other Commitments | $2.50 |
CONTINGENCIES_COMMITMENTS_AND_3
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Legal Reserves) (Legal Reserve, USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Legal Reserve | ' | ' |
Legal Reserves | ' | ' |
Increase in legal reserve liability | $5 | $503 |
CONTINGENCIES_COMMITMENTS_AND_4
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
ALICO | ' |
Guarantees | ' |
Payments made or placed in escrow accounts at end of period | $19 |
Other Operations | AIG Financial Products | ' |
Guarantees | ' |
Amount outstanding under standby letters of credit at end of period | 238 |
Indemnifications | ALICO | ' |
Guarantees | ' |
Various deductible amounts under indemnifications | $0 |
EQUITY_Details_Shares_Outstand
EQUITY (Details - Shares Outstanding) (USD $) | 0 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | ||||||
Sep. 25, 2014 | Jun. 24, 2014 | Mar. 25, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 05, 2014 | Feb. 13, 2014 | Aug. 01, 2013 | Sep. 30, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | |
ASR | AIG | AIG | Common Stock Issued | Common Stock Issued | Common Stock Issued | Common Stock Issued | Common Stock Issued | Common Stock Issued | Common Stock Issued | Common Stock Issued | Treasury Stock | |||||
ASR | ASR | ASR | Subsequent event | Subsequent event | ||||||||||||
item | ||||||||||||||||
The following table presents a roll forward of outstanding shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Shares, beginning of year | ' | ' | ' | -442,582,366 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -442,582,366 |
Shares, beginning of year | ' | ' | ' | 1,906,645,689 | ' | ' | ' | ' | ' | ' | 1,906,645,689 | ' | ' | ' | ' | ' |
Shares, beginning of year | ' | ' | ' | 1,464,063,323 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued - Issuance (in shares) | ' | ' | ' | 26,946 | ' | ' | ' | ' | ' | ' | 25,803 | ' | ' | ' | ' | 1,143 |
Shares repurchased | ' | ' | ' | -60,317,318 | ' | -60,000,000 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | -60,317,318 |
Treasury Shares, end of period | ' | ' | ' | -502,898,541 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -502,898,541 |
Shares, end of period | ' | ' | ' | 1,906,671,492 | ' | ' | ' | ' | ' | ' | 1,906,671,492 | ' | ' | ' | ' | ' |
Shares, end of period | ' | ' | ' | 1,403,772,951 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend paid (in dollars per share) | $0.13 | $0.13 | $0.13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate repurchase authorization purchase amount | ' | ' | ' | ' | ' | ' | ' | $2,000,000,000 | $1,000,000,000 | $1,000,000,000 | ' | ' | ' | $1,500,000,000 | ' | ' |
Common stock authorized to be repurchased remaining amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | 1,500,000,000 | ' |
Aggregate purchase price of repurchased shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000,000 | ' | ' | ' | ' | ' |
Number of accelerated stock repurchase (ASR) agreements with third-party financial institutions | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of share repurchased during share repurchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' |
Number of shares received from financial institution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,000,000 | ' | ' | ' |
Amount paid to financial institution | ' | ' | ' | ' | $1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partial receipt of shares under an ASR agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,800,000 | ' | ' | ' |
Additional shares received from financial institution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | ' | ' | ' | ' |
EQUITY_Details_Rollforward_of_
EQUITY (Details - Rollforward of Accumulated other comprehensive income) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
A rollforward of Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Balance, beginning of period, net of tax | ' | ' | $6,360 | ' |
Change in unrealized appreciation (depreciation) of investments | -587 | -871 | 5,116 | -9,382 |
Change in unrealized appreciation (depreciation) of investments | 123 | -31 | 215 | 286 |
Changes in foreign currency translation adjustments | -120 | -143 | -149 | -709 |
Less: Income tax expense (benefit) | 412 | 535 | -216 | 3,662 |
Deferred tax asset (liability) | -64 | 8 | -41 | -114 |
Deferred tax asset (liability) | 419 | 437 | -144 | 3,714 |
Deferred tax asset (liability) | 42 | 94 | -40 | 82 |
Deferred tax asset (liability) | 15 | -4 | 9 | -20 |
Other comprehensive income (loss) | -181 | -532 | 4,970 | -6,088 |
Other comprehensive income (loss) | 59 | -23 | 174 | 172 |
Other comprehensive income (loss) | -168 | -434 | 4,972 | -5,668 |
Other comprehensive income (loss) | -78 | -49 | -189 | -627 |
Other comprehensive income (loss) | 6 | -26 | 13 | 35 |
Balance, end of period, net of tax | 11,331 | ' | 11,331 | ' |
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
A rollforward of Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Balance, beginning of period, net of tax | ' | ' | 6,360 | 12,574 |
Change in unrealized appreciation (depreciation) of investments | ' | ' | 6,598 | -12,734 |
Change in deferred acquisition costs adjustment and other | ' | ' | -372 | 831 |
Change in future policy benefits | ' | ' | -895 | 2,807 |
Changes in foreign currency translation adjustments | ' | ' | -149 | -709 |
Net actuarial gain (loss) | ' | ' | 40 | 94 |
Prior service (cost) credit | ' | ' | -36 | -39 |
Less: Income tax expense (benefit) | ' | ' | -216 | 3,662 |
Other comprehensive income (loss) | ' | ' | 4,970 | -6,088 |
Noncontrolling interests | ' | ' | -1 | -23 |
Balance, end of period, net of tax | 11,331 | 6,509 | 11,331 | 6,509 |
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments | ' | ' | ' | ' |
A rollforward of Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Balance, beginning of period, net of tax | ' | ' | 936 | 575 |
Change in unrealized appreciation (depreciation) of investments | ' | ' | 268 | 314 |
Change in deferred acquisition costs adjustment and other | ' | ' | 61 | -108 |
Change in future policy benefits | ' | ' | -114 | 80 |
Deferred tax asset (liability) | ' | ' | -41 | -114 |
Other comprehensive income (loss) | ' | ' | 174 | 172 |
Balance, end of period, net of tax | 1,110 | 747 | 1,110 | 747 |
Unrealized Appreciation (Depreciation) of All Other Investments | ' | ' | ' | ' |
A rollforward of Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Balance, beginning of period, net of tax | ' | ' | 6,789 | 13,446 |
Change in unrealized appreciation (depreciation) of investments | ' | ' | 6,330 | -13,048 |
Change in deferred acquisition costs adjustment and other | ' | ' | -433 | 939 |
Change in future policy benefits | ' | ' | -781 | 2,727 |
Deferred tax asset (liability) | ' | ' | -144 | 3,714 |
Other comprehensive income (loss) | ' | ' | 4,972 | -5,668 |
Noncontrolling interests | ' | ' | -1 | -16 |
Balance, end of period, net of tax | 11,762 | 7,794 | 11,762 | 7,794 |
Foreign Currency Translation Adjustments | ' | ' | ' | ' |
A rollforward of Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Balance, beginning of period, net of tax | ' | ' | -952 | -403 |
Changes in foreign currency translation adjustments | ' | ' | -149 | -709 |
Deferred tax asset (liability) | ' | ' | -40 | 82 |
Other comprehensive income (loss) | ' | ' | -189 | -627 |
Noncontrolling interests | ' | ' | 0 | -7 |
Balance, end of period, net of tax | -1,141 | -1,023 | -1,141 | -1,023 |
Change in Retirement Plan Liabilities Adjustment | ' | ' | ' | ' |
A rollforward of Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Balance, beginning of period, net of tax | ' | ' | -413 | -1,044 |
Net actuarial gain (loss) | ' | ' | 40 | 94 |
Prior service (cost) credit | ' | ' | -36 | -39 |
Deferred tax asset (liability) | ' | ' | 9 | -20 |
Other comprehensive income (loss) | ' | ' | 13 | 35 |
Balance, end of period, net of tax | ($400) | ($1,009) | ($400) | ($1,009) |
EQUITY_Details_Other_comprehen
EQUITY (Details - Other comprehensive income reclassification adjustments) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Taken | ' | ' | ' | ' |
Unrealized change arising during period | $132 | ($30) | $242 | $342 |
Less: Reclassification adjustments included in net income | 9 | 1 | 27 | 56 |
Total other comprehensive income (loss), before income tax expense (benefit) | 123 | -31 | 215 | 286 |
Less: Income tax expense (benefit) | 64 | -8 | 41 | 114 |
Total other comprehensive income (loss), net of income tax expense (benefit) | 59 | -23 | 174 | 172 |
Unrealized Appreciation (Depreciation) of All Other Investments | ' | ' | ' | ' |
Unrealized change arising during period | -575 | -652 | 5,522 | -8,784 |
Less: Reclassification adjustments included in net income | 12 | 219 | 406 | 598 |
Total other comprehensive income (loss), before income tax expense (benefit) | -587 | -871 | 5,116 | -9,382 |
Less: Income tax expense (benefit) | -419 | -437 | 144 | -3,714 |
Total other comprehensive income (loss), net of income tax expense (benefit) | -168 | -434 | 4,972 | -5,668 |
Foreign Currency Translation Adjustments | ' | ' | ' | ' |
Unrealized change arising during period | -120 | -143 | -149 | -709 |
Total other comprehensive income (loss), before income tax expense (benefit) | -120 | -143 | -149 | -709 |
Less: Income tax expense (benefit) | -42 | -94 | 40 | -82 |
Total other comprehensive income (loss), net of income tax expense (benefit) | -78 | -49 | -189 | -627 |
Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities | ' | ' | ' | ' |
Total other comprehensive income (loss), net of income tax expense (benefit) | 0 | 0 | 0 | 0 |
Change in Retirement Plan Liabilities Adjustment | ' | ' | ' | ' |
Unrealized change arising during period | -8 | -44 | 3 | -18 |
Less: Reclassification adjustments included in net income | 1 | -22 | -1 | -73 |
Total other comprehensive income (loss), before income tax expense (benefit) | -9 | -22 | 4 | 55 |
Less: Income tax expense (benefit) | -15 | 4 | -9 | 20 |
Total other comprehensive income (loss), net of income tax expense (benefit) | 6 | -26 | 13 | 35 |
Other Comprehensive Income (Loss) Reclassification Adjustments | ' | ' | ' | ' |
Unrealized change arising during period | -571 | -869 | 5,618 | -9,169 |
Less: Reclassification adjustments included in net income | 22 | 198 | 432 | 581 |
Total other comprehensive income (loss), before income tax expense (benefit) | -593 | -1,067 | 5,186 | -9,750 |
Less: Income tax expense (benefit) | -412 | -535 | 216 | -3,662 |
Other comprehensive income (loss) | ($181) | ($532) | $4,970 | ($6,088) |
EQUITY_Details_Reclassificatio
EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reclassification of significant items out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Other realized capital gains | $505 | $291 | $495 | $2,250 |
Amortization of deferred acquisition costs | 1,288 | 1,220 | 3,989 | 3,859 |
Policyholder benefits and claims incurred | 7,203 | 7,416 | 20,771 | 22,234 |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassification of significant items out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Total reclassifications for the period | 22 | 198 | 432 | 581 |
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassification of significant items out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Other realized capital gains | 9 | 1 | 27 | 56 |
Total reclassifications for the period | 9 | 1 | 27 | 56 |
Unrealized appreciation (depreciation) of all other investments | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassification of significant items out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Other realized capital gains | 117 | 501 | 528 | 2,093 |
Amortization of deferred acquisition costs | -40 | -39 | -35 | -33 |
Policyholder benefits and claims incurred | -65 | -243 | -87 | -1,462 |
Total reclassifications for the period | 12 | 219 | 406 | 598 |
Change in retirement plan liabilities adjustment | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassification of significant items out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Prior-service costs | 11 | 13 | 35 | 35 |
Actuarial gains/(losses) | -10 | -35 | -36 | -108 |
Total reclassifications for the period | $1 | ($22) | ($1) | ($73) |
NONCONTROLLING_INTERESTS_Detai
NONCONTROLLING INTERESTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
A rollforward of noncontrolling interests | ' | ' | ' | ' | ' |
Balance, beginning of year | ' | ' | $611 | ' | ' |
Contributions from noncontrolling interests | ' | ' | 13 | 25 | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ' |
Total other comprehensive income (loss), net of tax | 11,331 | ' | 11,331 | ' | 6,360 |
Total comprehensive income (loss) attributable to noncontrolling interests | 8 | -42 | -26 | -11 | ' |
Balance, end of period | 402 | ' | 402 | ' | ' |
Redeemable Noncontrolling interests | ' | ' | ' | ' | ' |
A rollforward of noncontrolling interests | ' | ' | ' | ' | ' |
Balance, beginning of year | ' | ' | 30 | 334 | ' |
Contributions from noncontrolling interests | ' | ' | 1 | 48 | ' |
Distributions to noncontrolling interests | ' | ' | 0 | -153 | ' |
Consolidation (deconsolidation) | ' | ' | -31 | -146 | ' |
Comprehensive income (loss): | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | 0 | 0 | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ' |
Unrealized gains (losses) on investments | ' | ' | 0 | -15 | ' |
Foreign currency translation adjustments | ' | -2 | ' | -2 | ' |
Total other comprehensive income (loss), net of tax | 0 | -17 | 0 | -17 | ' |
Total comprehensive income (loss) attributable to noncontrolling interests | ' | ' | 0 | -17 | ' |
Other | ' | ' | ' | 0 | ' |
Balance, end of period | 0 | 66 | 0 | 66 | ' |
Non-redeemable Noncontrolling interests | ' | ' | ' | ' | ' |
A rollforward of noncontrolling interests | ' | ' | ' | ' | ' |
Balance, beginning of year | ' | ' | 611 | 667 | ' |
Contributions from noncontrolling interests | ' | ' | 13 | 25 | ' |
Distributions to noncontrolling interests | ' | ' | -78 | -37 | ' |
Consolidation (deconsolidation) | ' | ' | -123 | 1 | ' |
Comprehensive income (loss): | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | -25 | 12 | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ' |
Unrealized gains (losses) on investments | ' | ' | -1 | 0 | ' |
Foreign currency translation adjustments | ' | -6 | ' | -6 | ' |
Total other comprehensive income (loss), net of tax | -1 | -6 | -1 | -6 | ' |
Total comprehensive income (loss) attributable to noncontrolling interests | ' | ' | -26 | 6 | ' |
Other | ' | ' | 5 | -6 | ' |
Balance, end of period | $402 | $656 | $402 | $656 | ' |
EARNINGS_PER_SHARE_EPS_Details
EARNINGS PER SHARE (EPS) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator for EPS: | ' | ' | ' | ' |
Income (loss) from continuing operations | $2,199 | $2,148 | $6,864 | $7,046 |
Net income (loss) from continuing operations attributable to noncontrolling interests | 9 | -40 | -25 | 12 |
Income (loss) attributable to AIG common shareholders from continuing operations | 2,190 | 2,188 | 6,889 | 7,034 |
Income (loss) from discontinued operations, net of income tax expense | 2 | -18 | -15 | 73 |
Net income (loss) attributable to AIG common shareholders | $2,192 | $2,170 | $6,874 | $7,107 |
Denominator for EPS: | ' | ' | ' | ' |
Weighted average shares outstanding - basic | 1,419,239,774 | 1,475,053,126 | 1,440,148,774 | 1,476,007,034 |
Dilutive shares | 22,828,068 | 10,269,732 | 19,334,459 | 5,403,839 |
Weighted average shares outstanding - diluted | 1,442,067,842 | 1,485,322,858 | 1,459,483,233 | 1,481,410,873 |
Basic: | ' | ' | ' | ' |
Income from continuing operations | $1.54 | $1.48 | $4.78 | $4.77 |
Income (loss) from discontinued operations | $0 | ($0.01) | ($0.01) | $0.05 |
Net Income (loss) attributable to AIG - basic (in dollars per share) | $1.54 | $1.47 | $4.77 | $4.82 |
Diluted: | ' | ' | ' | ' |
Income from continuing operations | $1.52 | $1.47 | $4.72 | $4.75 |
Income (loss) from discontinued operations | $0 | ($0.01) | ($0.01) | $0.05 |
Net Income (loss) attributable to AIG - diluted (in dollars per share) | $1.52 | $1.46 | $4.71 | $4.80 |
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive | 0 | 400,000 | 300,000 | 51,000,000 |
EMPLOYEE_BENEFITS_Details
EMPLOYEE BENEFITS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pensions | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | $53 | $83 | $162 | $195 |
Interest cost | 64 | 60 | 193 | 173 |
Expected return on assets | -79 | -68 | -232 | -207 |
Amortization of prior service (credit) cost | -9 | -9 | -27 | -27 |
Amortization of net (gain) loss | 11 | 43 | 37 | 115 |
Net periodic benefit cost | 40 | 109 | 133 | 249 |
Contributed to pension plans | ' | ' | 163 | ' |
Estimates additional contribution to pension plans for the remainder of 2014 | ' | ' | 14 | ' |
U.S. Pension Plans | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | 42 | 71 | 130 | 159 |
Interest cost | 57 | 53 | 171 | 151 |
Expected return on assets | -73 | -64 | -215 | -193 |
Amortization of prior service (credit) cost | -8 | -8 | -25 | -25 |
Amortization of net (gain) loss | 9 | 40 | 31 | 106 |
Net periodic benefit cost | 27 | 92 | 92 | 198 |
Non U.S. Pension Plans | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | 11 | 12 | 32 | 36 |
Interest cost | 7 | 7 | 22 | 22 |
Expected return on assets | -6 | -4 | -17 | -14 |
Amortization of prior service (credit) cost | -1 | -1 | -2 | -2 |
Amortization of net (gain) loss | 2 | 3 | 6 | 9 |
Net periodic benefit cost | 13 | 17 | 41 | 51 |
Postretirement Plans | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | 1 | 2 | 4 | 7 |
Interest cost | 3 | 2 | 9 | 7 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost | -3 | -3 | -8 | -8 |
Amortization of net (gain) loss | 0 | 1 | 0 | 0 |
Net periodic benefit cost | 1 | 0 | 5 | 6 |
U.S. Postretirement Plans | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | 1 | 1 | 3 | 4 |
Interest cost | 2 | 2 | 7 | 6 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost | -3 | -3 | -8 | -8 |
Amortization of net (gain) loss | 0 | -1 | 0 | 0 |
Net periodic benefit cost | 0 | -1 | 2 | 2 |
Non U.S. Postretirement Plans | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | 0 | 1 | 1 | 3 |
Interest cost | 1 | 0 | 2 | 1 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost | 0 | 0 | 0 | 0 |
Amortization of net (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $1 | $1 | $3 | $4 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Income tax expense (benefit): | ' | ' | ' | ' | ' |
Effective tax rates on income from continuing operations (as a percent) | 27.20% | -82.30% | 29.80% | 2.40% | ' |
U.S. federal income tax at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% | ' |
Deferred tax asset valuation allowance recognized | $206,000,000 | ' | $1,811,000,000 | ' | ' |
Deferred tax asset valuation allowance allocated to income from continuing operations | 22,000,000 | ' | 161,000,000 | ' | ' |
Deferred tax asset valuation allowance allocated to other comprehensive income | 184,000,000 | ' | 1,650,000,000 | ' | ' |
Accounting for Uncertainty in Income Taxes | ' | ' | ' | ' | ' |
Unrecognized tax benefits, excluding interest and penalties | 4,500,000,000 | ' | 4,500,000,000 | ' | 4,300,000,000 |
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 200,000,000 | ' | 200,000,000 | ' | 100,000,000 |
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 4,300,000,000 | ' | 4,300,000,000 | ' | 4,200,000,000 |
Unrecognized tax benefits, interest and penalties accrued | 1,000,000,000 | ' | 1,000,000,000 | ' | 1,100,000,000 |
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties | ' | ' | ($64,000,000) | ($45,000,000) | ' |
Unrecognized tax benefits, period of reasonably possible change in balance | ' | ' | 'P12M | ' | ' |
INFORMATION_PROVIDED_IN_CONNEC2
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Assets: | ' | ' | ' | ' |
Short-term investments | $17,852,000,000 | $21,617,000,000 | ' | ' |
Other investments | 348,582,000,000 | 334,811,000,000 | ' | ' |
Total investments | 366,434,000,000 | 356,428,000,000 | ' | ' |
Cash | 1,933,000,000 | 2,241,000,000 | 2,058,000,000 | 1,151,000,000 |
Other assets, including deferred income taxes | 158,823,000,000 | 153,124,000,000 | ' | ' |
Assets held-for-sale | 0 | 29,536,000,000 | ' | ' |
Total assets | 527,190,000,000 | 541,329,000,000 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Insurance liabilities | 273,262,000,000 | 271,252,000,000 | ' | ' |
Long-term debt | 36,223,000,000 | 41,693,000,000 | ' | ' |
Other liabilities, including intercompany balances | 108,722,000,000 | 102,725,000,000 | ' | ' |
Liabilities held-for-sale | 0 | 24,548,000,000 | ' | ' |
Total liabilities | 418,207,000,000 | 440,218,000,000 | ' | ' |
Redeemable noncontrolling interests (see Note 12) | 0 | 30,000,000 | ' | ' |
Total AIG shareholders' equity | 108,581,000,000 | 100,470,000,000 | ' | ' |
Non-redeemable noncontrolling interests | 402,000,000 | 611,000,000 | ' | ' |
Total equity` | 108,983,000,000 | 101,081,000,000 | 99,449,000,000 | 98,669,000,000 |
Total liabilities and equity | 527,190,000,000 | 541,329,000,000 | ' | ' |
AIG (As Guarantor) | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Short-term investments | 9,290,000,000 | 11,965,000,000 | ' | ' |
Other investments | 11,785,000,000 | 7,561,000,000 | ' | ' |
Total investments | 21,075,000,000 | 19,526,000,000 | ' | ' |
Cash | 112,000,000 | 30,000,000 | 62,000,000 | 81,000,000 |
Loans to subsidiaries | 33,081,000,000 | 31,220,000,000 | ' | ' |
Investment in consolidated subsidiaries | 67,156,000,000 | 66,201,000,000 | ' | ' |
Other assets, including deferred income taxes | 23,939,000,000 | 21,606,000,000 | ' | ' |
Total assets | 145,363,000,000 | 138,583,000,000 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Long-term debt | 25,613,000,000 | 30,839,000,000 | ' | ' |
Other liabilities, including intercompany balances | 9,852,000,000 | 6,422,000,000 | ' | ' |
Loans from subsidiaries | 1,317,000,000 | 852,000,000 | ' | ' |
Total liabilities | 36,782,000,000 | 38,113,000,000 | ' | ' |
Total AIG shareholders' equity | 108,581,000,000 | 100,470,000,000 | ' | ' |
Total equity` | 108,581,000,000 | 100,470,000,000 | ' | ' |
Total liabilities and equity | 145,363,000,000 | 138,583,000,000 | ' | ' |
Intercompany tax payable | 3,300,000,000 | 1,400,000,000 | ' | ' |
Intercompany derivative liabilities | 302,000,000 | 249,000,000 | ' | ' |
AIGLH | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash | 9,000,000 | 51,000,000 | 5,000,000 | 73,000,000 |
Investment in consolidated subsidiaries | 38,647,000,000 | 39,103,000,000 | ' | ' |
Other assets, including deferred income taxes | 725,000,000 | 112,000,000 | ' | ' |
Total assets | 39,381,000,000 | 39,266,000,000 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Long-term debt | 1,132,000,000 | 1,352,000,000 | ' | ' |
Other liabilities, including intercompany balances | 708,000,000 | 161,000,000 | ' | ' |
Loans from subsidiaries | 0 | 200,000,000 | ' | ' |
Liabilities held-for-sale | 0 | ' | ' | ' |
Total liabilities | 1,840,000,000 | 1,713,000,000 | ' | ' |
Total AIG shareholders' equity | 37,541,000,000 | 37,553,000,000 | ' | ' |
Total equity` | 37,541,000,000 | 37,553,000,000 | ' | ' |
Total liabilities and equity | 39,381,000,000 | 39,266,000,000 | ' | ' |
Intercompany tax receivable (payable) | 83,000,000 | 98,000,000 | ' | ' |
Other Subsidiaries | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Short-term investments | 8,930,000,000 | 11,404,000,000 | ' | ' |
Other investments | 336,797,000,000 | 327,250,000,000 | ' | ' |
Total investments | 345,727,000,000 | 338,654,000,000 | ' | ' |
Cash | 1,812,000,000 | 2,160,000,000 | ' | ' |
Loans to subsidiaries | 630,000,000 | 854,000,000 | ' | ' |
Other assets, including deferred income taxes | 138,999,000,000 | 132,492,000,000 | ' | ' |
Assets held-for-sale | 0 | 29,536,000,000 | ' | ' |
Total assets | 487,168,000,000 | 503,696,000,000 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Insurance liabilities | 273,262,000,000 | 271,252,000,000 | ' | ' |
Long-term debt | 9,478,000,000 | 9,502,000,000 | ' | ' |
Other liabilities, including intercompany balances | 103,401,000,000 | 98,908,000,000 | ' | ' |
Loans from subsidiaries | 32,475,000,000 | 31,173,000,000 | ' | ' |
Liabilities held-for-sale | 0 | 24,548,000,000 | ' | ' |
Total liabilities | 418,616,000,000 | 435,383,000,000 | ' | ' |
Redeemable noncontrolling interests (see Note 12) | 0 | 30,000,000 | ' | ' |
Total AIG shareholders' equity | 68,150,000,000 | 67,672,000,000 | ' | ' |
Non-redeemable noncontrolling interests | 402,000,000 | 611,000,000 | ' | ' |
Total equity` | 68,552,000,000 | 68,283,000,000 | ' | ' |
Total liabilities and equity | 487,168,000,000 | 503,696,000,000 | ' | ' |
Reclassifications and Eliminations | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Short-term investments | -368,000,000 | -1,752,000,000 | ' | ' |
Total investments | -368,000,000 | -1,752,000,000 | ' | ' |
Loans to subsidiaries | -33,711,000,000 | -32,074,000,000 | ' | ' |
Investment in consolidated subsidiaries | -105,803,000,000 | -105,304,000,000 | ' | ' |
Other assets, including deferred income taxes | -4,840,000,000 | -1,086,000,000 | ' | ' |
Total assets | -144,722,000,000 | -140,216,000,000 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Other liabilities, including intercompany balances | -5,239,000,000 | -2,766,000,000 | ' | ' |
Loans from subsidiaries | -33,792,000,000 | -32,225,000,000 | ' | ' |
Total liabilities | -39,031,000,000 | -34,991,000,000 | ' | ' |
Total AIG shareholders' equity | -105,691,000,000 | -105,225,000,000 | ' | ' |
Total equity` | -105,691,000,000 | -105,225,000,000 | ' | ' |
Total liabilities and equity | ($144,722,000,000) | ($140,216,000,000) | ' | ' |
INFORMATION_PROVIDED_IN_CONNEC3
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Equity in earnings of consolidated subsidiaries | $0 | $0 | $0 | $0 |
Other income | 16,654 | 15,944 | 48,871 | 51,332 |
Total revenues | 16,654 | 15,944 | 48,871 | 51,332 |
Expenses: | ' | ' | ' | ' |
Interest expense | 430 | 516 | 1,372 | 1,628 |
Other expenses | 12,463 | 14,169 | 36,713 | 42,027 |
Loss on extinguishment of debt | 742 | 81 | 1,014 | 459 |
Total benefits, claims and expenses | 13,635 | 14,766 | 39,099 | 44,114 |
Income (loss) from continuing operations before income tax expense (benefit) | 3,019 | 1,178 | 9,772 | 7,218 |
Income tax expense (benefit) | 820 | -970 | 2,908 | 172 |
Income (loss) from continuing operations | 2,199 | 2,148 | 6,864 | 7,046 |
Income (loss) from discontinued operations, net of income tax | 2 | -18 | -15 | 73 |
Net income (loss) | 2,201 | 2,130 | 6,849 | 7,119 |
Net income (loss) from continuing operations attributable to noncontrolling interests | 9 | -40 | -25 | 12 |
Net income (loss) attributable to AIG | 2,192 | 2,170 | 6,874 | 7,107 |
AIG (As Guarantor) | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Equity in earnings of consolidated subsidiaries | 2,661 | 1,992 | 8,149 | 6,257 |
Other income | 615 | 64 | 1,094 | 1,031 |
Total revenues | 3,276 | 2,056 | 9,243 | 7,288 |
Expenses: | ' | ' | ' | ' |
Interest expense | 378 | 465 | 1,210 | 1,475 |
Other expenses | 284 | 668 | 1,310 | 1,261 |
Loss on extinguishment of debt | 682 | 81 | 987 | 388 |
Total benefits, claims and expenses | 1,344 | 1,214 | 3,507 | 3,124 |
Income (loss) from continuing operations before income tax expense (benefit) | 1,932 | 842 | 5,736 | 4,164 |
Income tax expense (benefit) | -261 | -1,328 | -1,137 | -2,946 |
Income (loss) from continuing operations | 2,193 | 2,170 | 6,873 | 7,110 |
Income (loss) from discontinued operations, net of income tax | -1 | 0 | 1 | -3 |
Net income (loss) | 2,192 | 2,170 | 6,874 | 7,107 |
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AIG | 2,192 | 2,170 | 6,874 | 7,107 |
AIGLH | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Equity in earnings of consolidated subsidiaries | 1,315 | 1,368 | 2,789 | 2,792 |
Other income | 0 | 1 | 0 | 1 |
Total revenues | 1,315 | 1,369 | 2,789 | 2,793 |
Expenses: | ' | ' | ' | ' |
Interest expense | 22 | 29 | 80 | 97 |
Other expenses | 61 | 3 | 79 | 74 |
Loss on extinguishment of debt | 0 | 0 | 0 | 0 |
Total benefits, claims and expenses | 83 | 32 | 159 | 171 |
Income (loss) from continuing operations before income tax expense (benefit) | 1,232 | 1,337 | 2,630 | 2,622 |
Income tax expense (benefit) | -33 | -13 | -54 | -27 |
Income (loss) from continuing operations | 1,265 | 1,350 | 2,684 | 2,649 |
Income (loss) from discontinued operations, net of income tax | 0 | 0 | 0 | 0 |
Net income (loss) | 1,265 | 1,350 | 2,684 | 2,649 |
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AIG | 1,265 | 1,350 | 2,684 | 2,649 |
Other Subsidiaries | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 |
Other income | 16,118 | 15,984 | 48,040 | 50,558 |
Total revenues | 16,118 | 15,984 | 48,040 | 50,558 |
Expenses: | ' | ' | ' | ' |
Interest expense | 62 | 59 | 180 | 177 |
Other expenses | 12,153 | 13,529 | 35,439 | 40,780 |
Loss on extinguishment of debt | 60 | 0 | 77 | 71 |
Total benefits, claims and expenses | 12,275 | 13,588 | 35,696 | 41,028 |
Income (loss) from continuing operations before income tax expense (benefit) | 3,843 | 2,396 | 12,344 | 9,530 |
Income tax expense (benefit) | 1,117 | 384 | 4,121 | 3,162 |
Income (loss) from continuing operations | 2,726 | 2,012 | 8,223 | 6,368 |
Income (loss) from discontinued operations, net of income tax | 3 | -18 | -16 | 76 |
Net income (loss) | 2,729 | 1,994 | 8,207 | 6,444 |
Net income (loss) from continuing operations attributable to noncontrolling interests | 9 | -40 | -25 | 12 |
Net income (loss) attributable to AIG | 2,720 | 2,034 | 8,232 | 6,432 |
Reclassifications and Eliminations | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Equity in earnings of consolidated subsidiaries | -3,976 | -3,360 | -10,938 | -9,049 |
Other income | -79 | -105 | -263 | -258 |
Total revenues | -4,055 | -3,465 | -11,201 | -9,307 |
Expenses: | ' | ' | ' | ' |
Interest expense | -32 | -37 | -98 | -121 |
Other expenses | -35 | -31 | -115 | -88 |
Loss on extinguishment of debt | 0 | 0 | -50 | 0 |
Total benefits, claims and expenses | -67 | -68 | -263 | -209 |
Income (loss) from continuing operations before income tax expense (benefit) | -3,988 | -3,397 | -10,938 | -9,098 |
Income tax expense (benefit) | -3 | -13 | -22 | -17 |
Income (loss) from continuing operations | -3,985 | -3,384 | -10,916 | -9,081 |
Income (loss) from discontinued operations, net of income tax | 0 | 0 | 0 | 0 |
Net income (loss) | -3,985 | -3,384 | -10,916 | -9,081 |
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AIG | ($3,985) | ($3,384) | ($10,916) | ($9,081) |
INFORMATION_PROVIDED_IN_CONNEC4
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED FINANCIAL STATEMENTS | ' | ' | ' | ' |
Net income (loss) | $2,201 | $2,130 | $6,849 | $7,119 |
Other comprehensive income (loss) | -181 | -532 | 4,970 | -6,088 |
Comprehensive income (loss) | 2,020 | 1,598 | 11,819 | 1,031 |
Total comprehensive income (loss) attributable to noncontrolling interests | 8 | -42 | -26 | -11 |
Comprehensive income (loss) attributable to AIG | 2,012 | 1,640 | 11,845 | 1,042 |
AIG (As Guarantor) | ' | ' | ' | ' |
CONDENSED FINANCIAL STATEMENTS | ' | ' | ' | ' |
Net income (loss) | 2,192 | 2,170 | 6,874 | 7,107 |
Other comprehensive income (loss) | -180 | -530 | 4,971 | -6,065 |
Comprehensive income (loss) | 2,012 | 1,640 | 11,845 | 1,042 |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to AIG | 2,012 | 1,640 | 11,845 | 1,042 |
AIGLH | ' | ' | ' | ' |
CONDENSED FINANCIAL STATEMENTS | ' | ' | ' | ' |
Net income (loss) | 1,265 | 1,350 | 2,684 | 2,649 |
Other comprehensive income (loss) | -259 | -299 | 2,522 | -4,289 |
Comprehensive income (loss) | 1,006 | 1,051 | 5,206 | -1,640 |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to AIG | 1,006 | 1,051 | 5,206 | -1,640 |
Other Subsidiaries | ' | ' | ' | ' |
CONDENSED FINANCIAL STATEMENTS | ' | ' | ' | ' |
Net income (loss) | 2,729 | 1,994 | 8,207 | 6,444 |
Other comprehensive income (loss) | -1,885 | -498 | 1,848 | -6,125 |
Comprehensive income (loss) | 844 | 1,496 | 10,055 | 319 |
Total comprehensive income (loss) attributable to noncontrolling interests | 8 | -42 | -26 | -11 |
Comprehensive income (loss) attributable to AIG | 836 | 1,538 | 10,081 | 330 |
Reclassifications and Eliminations | ' | ' | ' | ' |
CONDENSED FINANCIAL STATEMENTS | ' | ' | ' | ' |
Net income (loss) | -3,985 | -3,384 | -10,916 | -9,081 |
Other comprehensive income (loss) | 2,143 | 795 | -4,371 | 10,391 |
Comprehensive income (loss) | -1,842 | -2,589 | -15,287 | 1,310 |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to AIG | ($1,842) | ($2,589) | ($15,287) | $1,310 |
INFORMATION_PROVIDED_IN_CONNEC5
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED FINANCIAL STATEMENTS | ' | ' |
Net cash provided by (used in) operating activities | $4,357 | $3,948 |
Cash flows from investing activities: | ' | ' |
Sales of investments | 46,561 | 58,874 |
Purchase of investments | -43,081 | -60,842 |
Loans to subsidiaries - net | 0 | 0 |
Contributions to subsidiaries - net | 0 | 0 |
Net change in restricted cash | -660 | 1,251 |
Net change in short-term investments | 2,342 | 8,114 |
Other, net | -295 | -879 |
Net cash provided by investing activities | 4,867 | 6,518 |
Cash flows from financing activities: | ' | ' |
Issuance of long-term debt | 5,827 | 3,633 |
Repayments of long-term debt | -11,561 | -11,355 |
Purchase of Common Stock | -3,403 | -192 |
Intercompany loans - net | ' | 0 |
Cash dividends paid to shareholders | -539 | -147 |
Other, net | 75 | -1,411 |
Net cash used in financing activities | -9,601 | -9,472 |
Effect of exchange rate changes on cash | -19 | -79 |
Change in cash | -396 | 915 |
Cash at beginning of year | 2,241 | 1,151 |
Reclassification to assets held for sale | 88 | -8 |
Cash at end of period | 1,933 | 2,058 |
Interest: | ' | ' |
Third party | -2,496 | -2,951 |
Taxes: | ' | ' |
Income tax authorities | -614 | -378 |
AIG (As Guarantor) | ' | ' |
CONDENSED FINANCIAL STATEMENTS | ' | ' |
Net cash provided by (used in) operating activities | 7,228 | 3,078 |
Cash flows from investing activities: | ' | ' |
Sales of investments | 2,032 | 1,065 |
Purchase of investments | -1,257 | -4,981 |
Loans to subsidiaries - net | -1,687 | 3,491 |
Contributions to subsidiaries - net | 77 | -240 |
Net change in restricted cash | -5 | 428 |
Net change in short-term investments | 2,947 | 2,552 |
Other, net | -61 | 194 |
Net cash provided by investing activities | 2,046 | 2,509 |
Cash flows from financing activities: | ' | ' |
Issuance of long-term debt | 2,489 | 1,020 |
Repayments of long-term debt | -7,368 | -5,866 |
Purchase of Common Stock | -3,403 | -192 |
Intercompany loans - net | -47 | -89 |
Cash dividends paid to shareholders | -539 | -147 |
Other, net | -324 | -332 |
Net cash used in financing activities | -9,192 | -5,606 |
Effect of exchange rate changes on cash | 0 | 0 |
Change in cash | 82 | -19 |
Cash at beginning of year | 30 | 81 |
Reclassification to assets held for sale | 0 | ' |
Cash at end of period | 112 | 62 |
Interest: | ' | ' |
Third party | -1,238 | -1,473 |
Intercompany | -1 | -9 |
Taxes: | ' | ' |
Income tax authorities | -18 | -160 |
Intercompany | 1,348 | 1,116 |
Non-cash financing and investing activities: | ' | ' |
Capital contributions to subsidiaries through forgiveness of loans | 993 | 341 |
Other capital contributions - net | 0 | 523 |
AIGLH | ' | ' |
CONDENSED FINANCIAL STATEMENTS | ' | ' |
Net cash provided by (used in) operating activities | 4,333 | 3,082 |
Cash flows from investing activities: | ' | ' |
Sales of investments | 0 | 0 |
Purchase of investments | 0 | 0 |
Loans to subsidiaries - net | 0 | 0 |
Contributions to subsidiaries - net | 0 | -1 |
Net change in restricted cash | 0 | 0 |
Net change in short-term investments | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided by investing activities | 0 | -1 |
Cash flows from financing activities: | ' | ' |
Issuance of long-term debt | 0 | 0 |
Repayments of long-term debt | -165 | -245 |
Purchase of Common Stock | 0 | 0 |
Intercompany loans - net | -279 | -205 |
Cash dividends paid to shareholders | -3,931 | -2,699 |
Other, net | 0 | 0 |
Net cash used in financing activities | -4,375 | -3,149 |
Effect of exchange rate changes on cash | 0 | 0 |
Change in cash | -42 | -68 |
Cash at beginning of year | 51 | 73 |
Reclassification to assets held for sale | 0 | ' |
Cash at end of period | 9 | 5 |
Interest: | ' | ' |
Third party | -87 | -98 |
Intercompany | -7 | -21 |
Taxes: | ' | ' |
Income tax authorities | 0 | 0 |
Intercompany | 0 | -78 |
Other Subsidiaries and Eliminations | ' | ' |
CONDENSED FINANCIAL STATEMENTS | ' | ' |
Net cash provided by (used in) operating activities | -7,204 | -2,212 |
Cash flows from investing activities: | ' | ' |
Sales of investments | 44,529 | 57,809 |
Purchase of investments | -41,824 | -55,861 |
Loans to subsidiaries - net | 1,687 | -3,491 |
Contributions to subsidiaries - net | -77 | 241 |
Net change in restricted cash | -655 | 823 |
Net change in short-term investments | -605 | 5,562 |
Other, net | -234 | -1,073 |
Net cash provided by investing activities | 2,821 | 4,010 |
Cash flows from financing activities: | ' | ' |
Issuance of long-term debt | 3,338 | 2,613 |
Repayments of long-term debt | -4,028 | -5,244 |
Purchase of Common Stock | 0 | 0 |
Intercompany loans - net | 326 | 294 |
Cash dividends paid to shareholders | 3,931 | 2,699 |
Other, net | 399 | -1,079 |
Net cash used in financing activities | 3,966 | -717 |
Effect of exchange rate changes on cash | -19 | -79 |
Change in cash | -436 | 1,002 |
Cash at beginning of year | 2,160 | 997 |
Reclassification to assets held for sale | 88 | -8 |
Cash at end of period | 1,812 | 1,991 |
Interest: | ' | ' |
Third party | -1,171 | -1,380 |
Intercompany | 8 | 30 |
Taxes: | ' | ' |
Income tax authorities | -596 | -218 |
Intercompany | ($1,348) | ($1,038) |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 05, 2014 | Feb. 13, 2014 | Aug. 01, 2013 | Sep. 30, 2014 | Oct. 22, 2014 | Nov. 03, 2014 | Oct. 31, 2014 | Nov. 03, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 22, 2014 | Oct. 27, 2014 | Oct. 27, 2014 | Oct. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Common Stock | Common Stock | Common Stock | Common Stock | Consolidated 2008 Securities Litigation [Member] | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | |||||
Common Stock | Common Stock | Consolidated 2008 Securities Litigation [Member] | Senior Notes due 2018 | Senior Notes due 2018 | Senior Notes due 2044 | Junior Subordinated Debentures | Medium Term Notes | |||||||||||||
Subsequent events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of debt redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000,000 | ' | ' | ' | ' |
Aggregate principal amount of debt issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' |
Debt instruments aggregate purchase price redemptions and repurchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.25% | 4.50% | 8.18% | 5.45% |
Cash dividend declared per common share (in dollars per share) | $0.13 | $0.10 | $0.38 | $0.10 | ' | ' | ' | ' | ' | $0.13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of debt repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | 1,600,000,000 | 405,000,000 |
Common stock authorized to be repurchased remaining amount | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | 1,500,000,000 | ' | ' | ' | ' | ' | ' |
Increase in aggregate repurchase authorization purchase amount | ' | ' | ' | ' | 2,000,000,000 | 1,000,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Payments for Legal Settlements | ' | ' | ' | ' | ' | ' | ' | ' | $960,000,000 | ' | ' | ' | ' | ' | $960,000,000 | ' | ' | ' | ' | ' |