Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 11, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | AMERICAN INTERNATIONAL GROUP INC | ||
Entity Central Index Key | 5,272 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 80,826,000,000 | ||
Entity Common Stock, Shares Outstanding | 1,149,448,256 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fixed maturity securities: | ||
Bonds available for sale, at fair value (amortized cost: 2015 - $240,968; 2014 - $243,307) | $ 248,245 | $ 259,859 |
Other bond securities, at fair value (See Note 5) | 16,782 | 19,712 |
Equity Securities: | ||
Common and preferred stock available for sale, at fair value (cost: 2015 - $1,379; 2014 - $1,930) | 2,915 | 4,395 |
Other common and preferred stock, at fair value (See Note 5) | 921 | 1,049 |
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2015 - $11; 2014 - $6) | 29,565 | 24,990 |
Other invested assets (portion measured at fair value: 2015 - $8,912; 2014 - $9,394) | 29,794 | 34,518 |
Short-term investments (portion measured at fair value: 2015 - $2,591; 2014 - $1,684) | 10,132 | 11,243 |
Total investments | 338,354 | 355,766 |
Cash | 1,629 | 1,758 |
Accrued investment income | 2,623 | 2,712 |
Premiums and other receivables, net of allowance | 11,451 | 12,031 |
Reinsurance assets, net of allowance | 20,413 | 21,959 |
Deferred income taxes | 20,394 | 19,339 |
Deferred policy acquisition costs | 11,115 | 9,827 |
Other assets, including restricted cash of $170 in 2015 and $2,025 in 2014 | 11,390 | 12,153 |
Separate account assets, at fair value | 79,574 | 80,036 |
Total assets | 496,943 | 515,581 |
Liabilities: | ||
Liability for unpaid losses and loss adjustment expenses | 74,942 | 77,260 |
Unearned premiums | 21,318 | 21,324 |
Future policy benefits for life and accident and health insurance contracts | 43,585 | 42,749 |
Policyholder contract deposits (portion measured at fair value: 2015 - $2,325; 2014 - $1,561) | 127,588 | 124,613 |
Other policyholder funds (portion measured at fair value: 2015 - $6; 2014 - $8) | 4,212 | 4,669 |
Other liabilities (portion measured at fair value: 2015 - $62; 2014 - $350) | 26,164 | 26,441 |
Long-term debt (portion measured at fair value: 2015 - $3,670; 2014 - $5,466) | 29,350 | 31,217 |
Separate account liabilities | 79,574 | 80,036 |
Total liabilities | $ 406,733 | $ 408,309 |
Contingencies, commitments and guarantees (see Note 15) | ||
AIG shareholders' equity: | ||
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2015 - 1,906,671,492 and 2014 - 1,906,671,492 | $ 4,766 | $ 4,766 |
Treasury stock, at cost; 2015 - 712,754,875; 2014 - 530,744,521 shares of common stock | (30,098) | (19,218) |
Additional paid-in capital | 81,510 | 80,958 |
Retained earnings | 30,943 | 29,775 |
Accumulated other comprehensive income (loss) | 2,537 | 10,617 |
Total AIG shareholders' equity | 89,658 | 106,898 |
Non-redeemable noncontrolling interests | 552 | 374 |
Total equity | 90,210 | 107,272 |
Total liabilities and equity | $ 496,943 | $ 515,581 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical - assets and liabilities) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Bonds available for sale, amortized cost | $ 240,968 | $ 243,307 |
Common and preferred stock available for sale, cost | 1,379 | 1,930 |
Mortgage and other loans receivable, portion measured at fair value | 11 | 6 |
Other invested assets, portion measured at fair value | 8,912 | 9,394 |
Short-term investments, portion measured at fair value | 2,591 | 1,684 |
Other assets, restricted cash | 170 | 2,025 |
Liabilities: | ||
Policyholder contract deposits, portion measured at fair value | 2,325 | 1,561 |
Other liabilities, portion measured at fair value | 62 | 350 |
Long-term debt, portion measured at fair value | 3,670 | 5,466 |
Other policyholder funds, portion measured at fair value | $ 6 | $ 8 |
CONSOLIDATED BALANCE SHEETS (P4
CONSOLIDATED BALANCE SHEETS (Parenthetical - equity) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
AIG shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2.5 | $ 2.5 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 1,906,671,492 | 1,906,671,492 |
Treasury stock, shares of common stock | 712,754,875 | 530,744,521 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Premiums | $ 36,655 | $ 37,254 | $ 37,499 |
Policy fees | 2,755 | 2,615 | 2,340 |
Net investment income | 14,053 | 16,079 | 15,810 |
Net realized capital gains (losses): | |||
Total other-than-temporary impairments on available for sale securities | (556) | (182) | (165) |
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss) | (35) | (35) | (22) |
Net other-than-temporary impairments on available for sale securities recognized in net income | (591) | (217) | (187) |
Other realized capital gains | 1,367 | 956 | 2,126 |
Total net realized capital gains | 776 | 739 | 1,939 |
Aircraft leasing revenue | 0 | 1,602 | 4,420 |
Other income | 4,088 | 6,117 | 6,866 |
Total revenues | 58,327 | 64,406 | 68,874 |
Benefits, losses and expenses: | |||
Policyholder benefits and losses incurred | 31,345 | 28,281 | 29,503 |
Interest credited to policyholder account balances | 3,731 | 3,768 | 3,892 |
Amortization of deferred policy acquisition costs | 5,236 | 5,330 | 5,157 |
General operating and other expenses | 12,686 | 13,138 | 13,564 |
Interest expense | 1,281 | 1,718 | 2,142 |
Aircraft leasing expenses | 0 | 1,585 | 4,549 |
Loss on extinguishment of debt | 756 | 2,282 | 651 |
Net (gain) loss on sale of properties and divested businesses | 11 | (2,197) | 48 |
Total benefits, losses and expenses | 55,046 | 53,905 | 59,506 |
Income (loss) from continuing operations before income tax expense (benefit) | 3,281 | 10,501 | 9,368 |
Income tax expense (benefit): | |||
Current | 820 | 588 | 680 |
Deferred | 239 | 2,339 | (320) |
Income tax expense (benefit) | 1,059 | 2,927 | 360 |
Income from continuing operations | 2,222 | 7,574 | 9,008 |
Income (loss) from discontinued operations, net of income tax expense | 0 | (50) | 84 |
Net income | 2,222 | 7,524 | 9,092 |
Less: | |||
Net income (loss) from continuing operations attributable to noncontrolling interests | 26 | (5) | 7 |
Net income attributable to AIG | 2,196 | 7,529 | 9,085 |
Net income (loss) attributable to AIG common shareholders | $ 2,196 | $ 7,529 | $ 9,085 |
Basic: | |||
Income from continuing operations | $ 1.69 | $ 5.31 | $ 6.11 |
Income (loss) from discontinued operations - basic (in dollars per share) | 0 | (0.04) | 0.05 |
Net income attributable to AIG | 1.69 | 5.27 | 6.16 |
Diluted: | |||
Income from continuing operations | 1.65 | 5.24 | 6.08 |
Income (loss) from discontinued operations | 0 | (0.04) | 0.05 |
Net income attributable to AIG | $ 1.65 | $ 5.2 | $ 6.13 |
Weighted average shares outstanding: | |||
Basic | 1,299,825,350 | 1,427,959,799 | 1,474,171,690 |
Diluted | 1,334,464,883 | 1,447,553,652 | 1,481,206,797 |
Dividends declared per common share | $ 0.81 | $ 0.5 | $ 0.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income | $ 2,222 | $ 7,524 | $ 9,092 |
Other comprehensive income (loss), net of tax | |||
Change in unrealized appreciation of fixed maturity investments on which other-than-temporary credit impairments were recognized | (347) | 107 | 361 |
Change in unrealized appreciation (depreciation) of all other investments | (6,762) | 5,538 | (6,673) |
Change in foreign currency translation adjustments | (1,100) | (832) | (556) |
Change in net derivative gains (losses) arising from cash flow hedging activities | 0 | 0 | 0 |
Change in retirement plan liabilities adjustment | (123) | 556 | (631) |
Other comprehensive income (loss) | (8,086) | 4,257 | (6,237) |
Comprehensive income (loss) | (5,864) | 11,781 | 2,855 |
Comprehensive income (loss) attributable to noncontrolling nonvoting, callable, junior and senior preferred interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to other noncontrolling interests | 20 | (5) | (16) |
Total comprehensive income (loss) attributable to noncontrolling interests | 20 | (5) | (16) |
Comprehensive income attributable to AIG | $ (5,884) | $ 11,786 | $ 2,871 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total AIG Shareholders' Equity | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non redeemable Non-controlling Interests | |||
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 | (597) | (597) | (597) | ||||||||
Net income attributable to AIG or other noncontrolling interests | 9,090 | [1] | 9,085 | [1] | 9,085 | [1] | 5 | ||||
Dividends | (294) | (294) | (294) | ||||||||
Other comprehensive income (loss) | (6,219) | (6,214) | (6,214) | (5) | |||||||
Deferred income taxes | 355 | 355 | 355 | ||||||||
Contributions from noncontrolling interests | 33 | 33 | |||||||||
Distributions to noncontrolling interests | (81) | (81) | |||||||||
Other | 125 | 133 | 1 | 134 | (2) | (8) | |||||
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 | (4,698) | (4,698) | (4,698) | ||||||||
Net income attributable to AIG or other noncontrolling interests | 7,524 | 7,529 | 7,529 | (5) | |||||||
Dividends | (712) | (712) | (712) | ||||||||
Other comprehensive income (loss) | 4,257 | 4,257 | 4,257 | ||||||||
Deferred income taxes | (10) | (10) | (10) | ||||||||
Net decrease due to deconsolidation | (99) | (99) | |||||||||
Contributions from noncontrolling interests | 17 | 17 | |||||||||
Distributions to noncontrolling interests | (147) | (147) | |||||||||
Other | 59 | 62 | 69 | (7) | (3) | ||||||
Balance at Dec. 31, 2014 | 107,272 | 106,898 | 4,766 | (19,218) | 80,958 | 29,775 | 10,617 | 374 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Common stock issued under stock plans | 13 | (13) | |||||||||
Purchase of common stock | (10,895) | (10,895) | (10,895) | ||||||||
Net income attributable to AIG or other noncontrolling interests | 2,222 | 2,196 | 2,196 | 26 | |||||||
Dividends | (1,028) | (1,028) | (1,028) | ||||||||
Other comprehensive income (loss) | (8,086) | (8,080) | (8,080) | (6) | |||||||
Deferred income taxes | (9) | (9) | (9) | ||||||||
Net increase due to acquisitions and consolidations | 231 | 231 | |||||||||
Contributions from noncontrolling interests | 1 | 1 | |||||||||
Distributions to noncontrolling interests | (82) | (82) | |||||||||
Other | 584 | 576 | 2 | 574 | 8 | ||||||
Balance at Dec. 31, 2015 | $ 90,210 | $ 89,658 | $ 4,766 | $ (30,098) | $ 81,510 | $ 30,943 | $ 2,537 | $ 552 | |||
[1] | * Excludes gains of $ 2 million in 2013 , attributable to redeemable noncontrolling interests . |
CONSOLIDATED STATEMENTS OF EQU8
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2013USD ($) | |
CONSOLIDATED STATEMENTS OF EQUITY | |
Net gains (losses) attributable to redeemable noncontrolling interests | $ 2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 2,222 | $ 7,524 | $ 9,092 |
(Income) loss from discontinued operations | 0 | 50 | (84) |
Noncash revenues, expenses, gains and losses included in income: | |||
Net gains on sales of securities available for sale and other assets | (1,111) | (764) | (2,741) |
Net (gains) losses on sales of divested businesses | 11 | (2,197) | 48 |
Net losses on extinguishment of debt | 756 | 2,282 | 651 |
Unrealized gains in earnings - net | (522) | (1,239) | (156) |
Equity in income from equity method investments, net of dividends or distributions | (481) | (1,394) | (1,484) |
Depreciation and other amortization | 4,629 | 4,448 | 4,713 |
Impairments of assets | 1,500 | 610 | 1,332 |
Changes in operating assets and liabilities: | |||
Insurance reserves | 1,645 | (2,281) | (2,576) |
Premiums and other receivables and payables - net | (70) | 820 | 43 |
Reinsurance assets and funds held under reinsurance treaties | 1,525 | 1,872 | 2,131 |
Capitalization of deferred policy acquisition costs | (5,808) | (5,880) | (5,834) |
Current and deferred income taxes - net | 548 | 2,190 | (437) |
Other, net | (1,967) | (1,034) | 1,167 |
Total adjustments | 655 | (2,567) | (3,143) |
Net cash provided by operating activities | 2,877 | 5,007 | 5,865 |
Sales or distribution of: | |||
Available for sale investments | 28,721 | 25,526 | 36,050 |
Other securities | 6,055 | 4,930 | 5,134 |
Other invested assets | 8,002 | 3,884 | 6,442 |
Divested businesses, net | 0 | 2,348 | 0 |
Maturities of fixed maturity securities available for sale | 24,734 | 25,560 | 26,048 |
Principal payments received on and sales of mortgage and other loans receivable | 5,104 | 3,856 | 3,420 |
Purchases of: | |||
Available for sale investments | (48,848) | (45,552) | (63,339) |
Other securities | (2,704) | (472) | (2,040) |
Other invested assets | (3,573) | (4,078) | (7,242) |
Mortgage and other loans receivable | (10,140) | (8,008) | (5,266) |
Net change in restricted cash | 1,457 | (1,447) | 1,244 |
Net change in short-term investments | 1,163 | 8,760 | 7,842 |
Other, net | (1,509) | (1,023) | (1,194) |
Net cash provided by investing activities | 8,462 | 14,284 | 7,099 |
Proceeds from (payments for) | |||
Policyholder contract deposits | 17,029 | 16,829 | 15,772 |
Policyholder contract withdrawals | (14,619) | (15,110) | (16,319) |
Issuance of long-term debt | 6,867 | 6,687 | 5,235 |
Repayments of long-term debt | (9,805) | (16,160) | (14,197) |
Purchase of Common Stock | (10,691) | (4,902) | (597) |
Dividends paid | (1,028) | (712) | (294) |
Other, net | 818 | (6,420) | (1,358) |
Net cash provided by (used in) financing activities | (11,429) | (19,788) | (11,758) |
Effect of exchange rate changes on cash | (39) | (74) | (92) |
Net increase (decrease) in cash | (129) | (571) | 1,114 |
Cash at beginning of year | 1,758 | 2,241 | 1,151 |
Change in cash of businesses held for sale | 0 | 88 | (24) |
Cash at end of year | $ 1,629 | $ 1,758 | $ 2,241 |
Supplementary Disclosure of Con
Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash paid during the period for: | |||
Interest | $ 1,368 | $ 3,367 | $ 3,856 |
Taxes | 511 | 737 | 796 |
Non-cash investing/financing activities: | |||
Interest credited to policyholder contract deposits included in financing activities | 3,676 | 3,904 | $ 3,987 |
International Lease Finance Corporation (ILFC) | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Non-cash consideration received from sale | $ 4,586 | ||
Aer Cap | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Non-cash consideration received from sale | $ 500 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2015 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION American International Group, Inc. (AIG) is a leading global insurance organization serving customers in more than 100 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 i ts consolidated subsidiaries and the term “AIG Parent” means American International Group, Inc. and not any of its consolidated subsidiaries. The consolidated financial statements include the accounts of AIG Parent , our controlled subsidiaries ( generally t hrough a greater than 50 percent ownership of voting rights and voting interest s ), and variable interest entities (VIEs) of which we are the primary beneficiary. Equity investments in entities that we do not consolidate, including corpo rate entities in which we have significant influence and partnership and partnership-like entities in which we ha ve more than minor influence over the operating and financial policies , are accounted for under the equity method unless we ha ve elected the fa ir value option. Certain of our foreign subsidiaries included in the Consolidated Financial Statements report on different fiscal-period bases. The effect on our consolidated financial condition and results of operations of all material events occurring at these subsidiaries through the date of each of the periods presented in these Consolidated Financial Statements has been recorded. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally ac cepted in the United States (GAAP). All material intercompany accounts and transactions have been eliminated. 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, incl uding 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 result s of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Consolidated Statements of Income (Loss) through the date of the completion of the sale. In June 2015, we sold 86.9 million ordinary share s of AerCap by means of an underwritten public offering of 71.2 million ordinary shares and a private sale of 15.7 million ordinary shares to AerCap . We received cash proceeds of approximately $ 3.7 billion, reflecting proceeds of approximately $ 3.4 billion from the underwritten offering and cash proceeds of $ 250 million from the private sale of shares to AerCap . In connection with the clos ing of the private sale of shares to AerCap , we also received $ 500 million of 6.50 % fixed-to-floating rate junior subordinated notes issued by AerCap Global Aviation Trust and guaranteed by AerCap and certain of its subsidiaries. These notes, included in Bonds available for sale, mature in 2045 and are callable beginning in 2025. We accounted for our interest in AerCap using the equity method of accounting through the date of the June 2015 sale, and as availa ble for sale thereafter. In August 2015, we sold our remaining 10.7 million ordinary shares of AerCap by means of an underwritten public offering and received proceeds of approximately $ 500 million. 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. A ccounting policies that we believe are most dependent on the applicat ion 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 operat ing profitability of the character necessary to realize the net deferred tax asset ; liability for unpaid los s es and los s adjustment expense s ; reinsurance assets ; valuation of future policy benefit liabilities and timing and extent of loss recognition; valu ation 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 o n available for sale securities, impairments on other invested assets, including investments in life settlements, and goodwill impairment; liability for legal contingencies; and fair value measurements of certain financial assets and liabilities . These accounting estimat es 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 cou ld be materially affected. Out of Period Adjustments For the year ended December 31, 2015, we recorded out of period adjustments relating to prior years that decreased Net income attributable to AIG by $156 million, decreased Income from continuing operations before income taxes by $376 million and decreased pre-tax operating income by $235 million. The out of period adjustments are primarily related to impairments of Other invested assets and changes in Liability for unpaid losses and loss adjustme nt expenses and income tax liabilities. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net Income attributable to AIG for the years ended December 31, 2014 and 2013 would have decreased by $51 million and increased by $78 million, respectively. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following table identifies our significant accounting policies presented in other Notes to these Consolidated Financial Statements, with a reference to the Note where a detailed description can be found: Note 5 . Investments Fixed maturity and equity securities Other invested assets Short-term investments Net investment income Net realized capital gains (losses) Other-than-temporary impairments Note 6 . Lending Activities Mortgage and other loans receivable – net of allowance Note 7 . Reinsurance Reinsurance assets – net of allowance Note 8 . Deferred Policy Acquisition Costs Deferred policy acquisition costs Amortization of deferred policy acquisition costs Note 10 . Derivatives and Hedge Accounting Derivative assets and liabilities, at fair value Note 11 . Goodwill Note 12 . Insurance Liabilities Liability for unpaid los s es and los s adjustment expense s Discounting of reserves Future policy benefits Policyholder contract deposits Other policyholder funds Note 13 Variable Life and Annuity Contracts Note 14 . Debt Long-term debt Note 15 . Contingencies, Commitments and Guarantees Legal contingencies Note 17 . Earnings Per Share Note 22 . Income Taxes Other significant accounting policies Premiums for short - duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and earned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of cover age. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract . As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflecting the in ception dates of the underlying policies throughout the year. Reinsurance premiums ceded are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. Premiums for lo ng - duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. Policy fees represent fees recognized from universal life and investment-type products consisti ng of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. Policy fees are recognized as revenues in the period in which they are assessed against policyholders, unless the fees are designed to compensate AIG for services to be provided in the future. Fees deferred as unearned revenue are amortized in relation to the incidence of expected gross profits to be realized over the estim ated lives of the contracts, similar to DAC. Aircraft leasing revenue from flight equipment under operating leases, through May 14, 2014, the date of disposal of ILFC, was recognized over the life of the leases as rental payments beca me receivable under th e provisions of the leases or, in the case of leases with varying payments, under the straight-line method over the noncancelable term of the leases. In certain cases, leases provide d for additional payments contingent on usage. I n those cases, rental reve nue was recognized at the time such usage occur red , net of estimated future contractual aircraft maintenance reimbursements. Gains on sales of flight equipment were reco gnized when flight equipment was sold and the risk of ownership of the equipment passed to the new owner. Other income includes advisory fee income from the Consumer Insurance broker dealer business, as well as legal recoveries of $ 94 million, $ 804 million and $ 1.2 billion fro m legacy crisis and other matters in 2015, 2014 and 2013, respectively. Other income from our Corporate and Other category consists of the following: Change s in fair value relating to financial assets and liabilities for which the fair value option has bee n elected. Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable. Dividend income from common and preferred stock and earnings distributions from other investments. Changes in the fair value of other securities sold but not yet purchased, futures, hybrid financial instruments, securities purchased under agreements to resell, and securities sold under agreements to repurchase. Income earned on real estate based investments and related realized gains and losses from sales, property level impairments and financing costs. Exchange gains and losses resulting from foreign currency transactions. Earnings from private equity funds and hedge fund investments accounted for under the equity method. Changes in the fair value of derivatives at AIG Financial Products Corp. and related subsidiaries (collectively AIGFP) . Gains and losses reco gnized in earnings on derivatives designated as hedges, for the effective portion and their related hedged items. Aircraft leasing expenses through May 14, 2014, the date of disposal of ILFC, consisted of ILFC interest expense, depreciation expense, impair ment charges, fair value adjustments and lease-related charges on aircraft as well as selling, general and administrative expenses and other expenses incurred by ILFC. Cash represents cash on hand and non-interest - bearing demand deposits. Short-term inves tments consist of interest -bearing cash equivalents, time deposits, securities purchased under agreements to resell, and investments, such as commercial paper, with original maturities within one year from the date of purchase. Premiums and other receivabl es – net of allowance include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the DIB and GCM and other receivables. Trade receivables for GCM include cash collateral posted to derivative counterpar ties that is not eligible to be netted against derivative liabilities. The allowance for doubtful accounts on premiums and other receivables was $ 333 million and $ 428 million at December 31, 2015 and 2014 , respectively. Other assets consist of sales inducement assets, prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, restricted cash and derivative assets . We offer sales inducements which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Sales inducements provided to the contract holder are recognized in Policyholder contract deposits in the Consolidated Balance Sheets. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC (see Note 8 herein). To q ualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest, and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $ 845 million and $ 629 million at December 31, 2015 and 2014 , respectively. The amortization expense associated with these assets is reported within Interest credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $ 88 million, $ 63 million and $ 102 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The cost of buildings and furniture and equipmen t is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and equipment). Expenditures for maintenance an d repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically assess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding five years. Real estate, fixed assets and other long-lived ass ets are assessed for impairment when impairment indicators exist. Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the account assets. For a more detailed discussion of separate accounts, see Note 13 herein. Other liabilities consist of other funds on deposit, other payables, securities sold un der agreements to repurchase, securities sold but not yet purchased and derivative liabilities . We have entered into certain insurance and reinsurance contracts, primarily in our Non-Life Insurance Companies segment, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on such contracts, after deduction for certain related expenses, are record ed as deposits within Other liabilities in the Consolidated Balance Sheets. Net proceeds of these deposits are invested and generate Net investment income. As amounts are paid, consistent with the underlying contracts, the deposit liability is reduced. Als o included in Other liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets. Securities sold but not yet purchased represent sales of securities not owned at the t ime of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Fair values of securities sold but not yet purchased are based on current market prices. Foreign currency : Financial statement acco unts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. Income statement accounts expressed in functional currencies are translated using a verage exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a co nsolidated entity are remeasured into that entity’s functional currency resulting in exchange gains or losses recorded in income. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income. Non- redeemable n oncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, direc tly or indirectly, to a parent. Accounting Standards Adopted During 2015 Reclassification of Residential Real Estate Collateralized Consumer M ortgage Loans upon Foreclosure In January 2014, the Financial Accounting Standards Board (FASB) issued an accounting standard that clarifies that a creditor is considered to have received physical possession of residential real estate property collateral izing 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 conv eys 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. We adopted the standard on its required effective date of January 1, 2015 . The adoption of this standard had no 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 no t qualify for discontinued operations presentation. We adopted the standard on its required effective date of January 1, 2015 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or 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 arran gements. 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 repurchase financings with the acc ounting 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 financia l asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. We adopted the standard on its required effective date of January 1, 2015 on a prospective basis. The adoption of this standard had no ma terial effect on our consolidated financial condition, results of operations or cash flows. Future Application of Accounting Standards Revenue Recognition In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other activities. The standard is effective for interim and annual reporting periods begin ning after December 15, 2017 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, inclu ding interim periods within that reporting period. We plan to adopt the standard on its required effective date of January 1, 2018 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows . A ccounting 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 reporti ng 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 a s 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 stand ard to have a material effect on our consolidated financial condition, results of operations and cash flows . Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity In August 2014, the FASB issued a n 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, whiche ver 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 or through a cumulative effect adjustment to retained ear nings at the date of adoption. 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 and cash flows. Consolidation: Amendments to the Consolidation Analysis In February 2015, the FASB issued an accounting standard that affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, t he amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; aff ect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The standard may be applied retrospectively or through a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. 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 and cash flows. Custo mer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued an accounting standard that provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrang ement includes a software license the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change generally accepted accounting principles applicable to a customer's accounting for service contracts. Consequently, all software licenses will be accounted for consist ent with other licenses of intangible assets. The standard is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The standard may be adopted prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. 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 . Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued an accounting standard that amends the guidance for debt issuance costs by requiring such costs to be presented as a deduction to the corresponding debt liability, rather than as an asset, and for the amortization of such costs to be reported as interest expense. The amendments are intended to simplify the presentation of debt issuance costs and make it consistent with the presentation of debt discounts or premiums. The amendments, however, do not change the recogni tion and measurement guidance applicable to debt issuance costs. The standard is effective for interim and annual periods beginning after December 15, 2015. Early adoption i s permitted. The standard must be applied retrospectively to all prior periods presented. We plan to adopt the standard on January 1, 2016, its required effective date. Because the new standard does not affect accounting recognition or measurement of de bt issuance costs, the adoption of the standard will have not have a material effect on our consolidated financial condition, results of operations, or cash flows. Short Duration Insurance Contracts In May 2015, the FASB issued an accounting standard t hat requires additional disclosures (including accident year information) for short-duration insurance contracts. New disclosures about the liability for unpaid losses and loss adjustment expenses will be required of public business entities for annual per iods beginning after December 15, 2015. The annual disclosures by accident year include: disaggregated net incurred and paid claims development tables segregated by business type (not required to exceed 10 years), reconciliation of total net reserves inclu ded in development tables to the reported liability for unpaid losses and loss adjustment expenses, incurred but not reported (IBNR) information, quantitative information and a qualitative description about claim frequency, and the average annual percentag e payout of incurred claims. Further, the new standard requires, when applicable, disclosures about discounting liabilities for unpaid losses and loss adjustment expenses and significant changes and reasons for changes in methodologies and assumptions used to determine unpaid losses and loss adjustment expenses. In addition, the roll forward of the liability for unpaid losses and loss adjustment expenses currently disclosed in annual financial statements will be required for interim periods beginning in th e first quarter of 2017. Early adoption of the new annual and interim disclosures is permitted. We plan to adopt the standard on its required effective date. Because the new standard does not affect accounting recognition or measurement, the adoption of the standard will have no effect on our consolidated financial condition, results of operations, or cash flows. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued an accounting standard that affects the recognition, measurement, presentation, and disclosure of financial instruments. Specifically, under the new standard, equity investments (other than those accounted for using the equity method of accounting or those subject to consolidation) will be measured at fair value with changes in fair value recognized in earnings. Also, for those financial liabilities for which fair value option accounting has been elected, the new standard requires changes in fair value due to instrument-specific cre dit risk to be presented separately in other comprehensive income. The standard updates certain fair value disclosure requirements for financial instruments carried at amortized cost. The standard is effective for interim and annual reporting periods begin ning after December 15, 2017. Early adoption of certain provisions is permitted. We are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 3. SEGMENT INFORMATION We report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources through two reportable segments: Commercial Insurance and Consumer Insurance as well as a Corporate and Other category. The Corporate and Other category consists of businesses and items not allocated to our reportable segments. We evaluate performance based on revenues and pre - tax operating incom e (loss ). Pre-tax operating income (loss) is derived by excluding certain items from net income (loss) attributable to AIG. See the table below for the items excluded from pre-tax operating income. Investment income of the Non-Life Insurance Companies is allocated between the Property Casualty and Personal Insurance operating segments based on an internal investment income allocation model. The model estimates investable funds based primarily on loss reserves and allocated capital. Investment income of the Life Insurance Companies is attributed to the Retirement, Life and Institutional Markets operating segments based on invested assets in product line portfolios; income from invested assets in excess of liabilities is allocated to product lines based on internal capital estimates. T he Commercial and Consumer reportable segments are each pres ented as three operating segments : Commercial Insurance The Commercial Insurance segment is presented as three operating segments : Property Casualty – consists of Casualty, Property, Specialty, and Financial product lines. Mortgage Guaranty – Mortgage insuran ce protects mortgage lenders and investors against the increased risk of borrower default related to high loan-to-value mortgages. Institutional Markets – consists of stable value wrap products, structured settlement and terminal funding annuities, high ne t worth products, corporate- and bank-owned life insurance and guaranteed investment contracts (GICs). Property Casualty products are primarily distributed through a network of independent retail and wholesale brokers, and through an independent agency net work. Mortgage Guaranty products and services are provided to mortgage lenders including mortgage banks, credit unions and finance agencies. Institutional Markets products are marketed primarily through specialized marketing and consulting firms and stru ctured settlement brokers. Consumer Insurance The Consumer Insurance segment is presented as three operating segments: Retirement – consists of Fixed Annuities, Retirement Income Solutions, Group Retirement, and Retail Mu tual Funds product lines. Life – primary products in the U.S. include term life and universal life insurance. International products include term and whole life insurance, supplemental health, cancer and critical illness insurance. Personal Insurance – consists of Personal Lines and Accid ent & Health product lines . Retirement products are distributed through affiliated career financial advisors and through non-affiliated channels, which include banks, wirehouses , regional and independent broker-dealers, independent marketing organizations and independent insurance agents. Life products in the U.S. are primarily distributed through independent marking organizations, independent insurance agents, financial advisors and direct marketing. International life products are sold through non-affili ated independent agents and direct marketing. Personal insurance products are distributed primarily through agents and brokers, as well as through direct marketing and partner organizations. Corporate and Other Our Corporate and Other consi sts of: Income from assets held by AIG Parent and other corporate subsidiaries; General operating expenses not attributable to specific reporting segments; Interest expense; and Run-off insurance lines. Certain of our management activities, such as investment management, enterprise risk management, liquidity management and capital management, and our balance sheet reporting, are conducted on a legal entity basis. We group our insurance-related legal entities into two categories: Non-Life Insurance C ompanies, and Life Insurance Companies. Non-Life Insurance Companies include the following major property casualty and mortgage guaranty companies: National Union Fire Insurance Company of Pittsburgh, Pa.(National Union); American Home Assurance Company (American Home); Lexington Insurance Company (Lexington); Fuji Fire and Marine Insurance Company Limited (Fuji Fire); American Home Assurance Company, Ltd. (American Home Japan); AIG Asia Pacific Insurance, Pte , Ltd.; AIG Europe Limited and United Guaranty Residential Insurance Company (UGRIC). Life Insurance Companies include the following major operating companies: American General Life Insurance Company (American General Life); The Variable Annuity Life Insurance Company (VALIC); The United States Life I nsurance Company in the City of New York (U.S. Life) and AIG Fuji Life Insurance Company Limited (Fuji Life). The following table presents AIG’s continuing operations by reportable segment: Net Depreciation Pre-Tax Total Investment Interest and Operating (in millions) Revenues Income Expense Amortization Income (Loss) 2015 Commercial Insurance Property Casualty $ 23,625 $ 3,596 $ 12 $ 2,255 $ 593 Mortgage Guaranty 1,051 139 - 64 644 Institutional Markets 3,518 1,739 11 (177) 415 Total Commercial Insurance 28,194 5,474 23 2,142 1,652 Consumer Insurance Retirement 9,298 6,002 39 (98) 2,839 Life 6,393 2,100 14 205 465 Personal Insurance 11,378 220 1 1,944 74 Total Consumer Insurance 27,069 8,322 54 2,051 3,378 Corporate and Other 2,901 617 1,313 426 (883) AIG Consolidation and elimination (573) (317) (109) 10 (92) Total AIG Consolidated pre-tax operating income $ 57,591 $ 14,096 $ 1,281 $ 4,629 $ 4,055 Reconciling Items from pre-tax operating income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits (43) (43) - - (43) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - - (15) Other income (expense) - net - - - - (233) Loss on extinguishment of debt - - - - (756) Net realized capital gains 776 - - - 776 Income from divested businesses (48) - - - (59) Non-operating litigation reserves and settlements 94 - - - 82 Reserve development related to non-operating run-off insurance business - - - - (30) Restructuring and other costs - - - - (496) Other (43) - - - - Pre-tax income $ 58,327 $ 14,053 $ 1,281 $ 4,629 $ 3,281 2014 Commercial Insurance Property Casualty $ 25,183 $ 4,298 $ - $ 2,445 $ 4,248 Mortgage Guaranty 1,042 138 - 56 592 Institutional Markets 2,576 1,957 7 (215) 670 Total Commercial Insurance 28,801 6,393 7 2,286 5,510 Consumer Insurance Retirement 9,784 6,489 23 (231) 3,495 Life 6,321 2,199 7 130 580 Personal Insurance 12,364 394 2 2,067 399 Total Consumer Insurance 28,469 9,082 32 1,966 4,474 Corporate and Other 4,206 700 1,805 346 (379) AIG Consolidation and elimination (475) (356) (126) (181) (31) Total AIG Consolidated pre-tax operating income $ 61,001 $ 15,819 $ 1,718 $ 4,417 $ 9,574 Reconciling Items from pre-tax operating income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 260 260 - - 260 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - - (217) Other income (expense) - net - - - - - Loss on extinguishment of debt - - - - (2,282) Net realized capital gains 739 - - - 739 Loss from divested businesses 1,602 - - 31 2,169 Non-operating litigation reserves and settlements 804 - - - 258 Reserve development related to non-operating run-off insurance business - - - - - Restructuring and other costs - - - - - Other - - - - - Pre-tax income $ 64,406 $ 16,079 $ 1,718 $ 4,448 $ 10,501 2013 Commercial Insurance Property Casualty $ 25,108 $ 4,431 $ 8 $ 2,393 $ 4,095 Mortgage Guaranty 941 132 - 50 205 Institutional Markets 2,813 2,090 1 (160) 680 Total Commercial Insurance 28,862 6,653 9 2,283 4,980 Consumer Insurance Retirement 9,431 6,628 3 (165) 3,490 Life 6,397 2,269 4 214 806 Personal Insurance 12,832 455 3 2,110 268 Total Consumer Insurance 28,660 9,352 10 2,159 4,564 Corporate and Other 4,073 309 2,451 221 (265) AIG Consolidation and elimination (71) (343) (328) (26) 111 Total AIG Consolidated pre-tax operating income $ 61,524 $ 15,971 $ 2,142 $ 4,637 $ 9,390 Reconciling Items from pre-tax operating income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits (161) (161) - - (161) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - - (1,608) Other income (expense) - net - - - - (72) Loss on extinguishment of debt - - - - (651) Net realized capital gains 1,939 - - - 1,939 Loss from divested businesses 4,420 - - 76 (177) Non-operating litigation reserves and settlements 1,152 - - - 708 Reserve development related to non-operating run-off insurance business - - - - - Restructuring and other costs - - - - - Other - - - - - Pre-tax income $ 68,874 $ 15,810 $ 2,142 $ 4,713 $ 9,368 The following table presents AIG’s year-end identifiable assets and capital expenditures by legal entity category : Year-End Identifiable Assets Capital Expenditures (in millions) 2015 2014 2015 2014 Total Non-Life Insurance Companies $ 150,368 $ 164,299 $ 991 $ 697 Total Life Insurance Companies 297,499 301,295 102 114 Total Corporate and Other 141,648 159,394 629 1,021 AIG Consolidation and Elimination (92,572) (109,407) - - Total Assets $ 496,943 $ 515,581 $ 1,722 $ 1,832 The following table presents AIG’s consolidated total revenues and real estate and other fixed assets, net of accumulated depreciation, by major geographic area: Real Estate and Other Fixed Assets, Total Revenues * Net of Accumulated Depreciation (in millions) 2015 2014 2013 2015 2014 2013 U.S. $ 42,366 $ 44,274 $ 46,078 $ 2,213 $ 1,886 $ 1,606 Asia Pacific 5,942 7,523 8,804 602 521 448 Other Foreign 10,019 12,609 13,992 320 293 261 Consolidated $ 58,327 $ 64,406 $ 68,874 $ 3,135 $ 2,700 $ 2,315 * Revenues are generally reported according to the geographic location of the reporting unit. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 4 . FAIR VALUE MEASUREMENTS Fair Value Measurements on a Recurring Basis We carry certain of our financial instruments at fair value. We define the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumpt ions. The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. We maximize the use of observable inputs and minimize the use of unobservable inputs when m easuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have les s observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instru ment is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions. Fair Value Hierarchy Assets and liabilities recorded at fair value in the Consolidated Balance Sheet s are measure d and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs: Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to acces s 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 L evel 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 ar e 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 le vel input that is significant to the fair value measurement in its entirety. The following is a description of the valuation methodologies used for instruments carried at fair value. These methodologies are applied to assets and liabilities across the leve ls discussed above, and it is the observability of the inputs used that determines the appropriate level in the fair value hierarchy for the respective asset or liability. Valuation Methodologies of Financial Instruments Measured at Fair Value Incorporation of Credit Risk in Fair Value Measurements Our Own Credit Risk. Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposur e to us at the balance sheet date by reference to observable AIG CDS or cash bond spreads. We calculate the effect of credit spread changes using discounted cash flow techniques that incorporate current market interest rates. A derivative counterparty’s ne t credit exposure to us is determined based on master netting agreements, when applicable, which take into consideration all derivative positions with us, as well as collateral we post with the counterparty at the balance sheet date. For a description of how we incorporate our own credit risk in the valuation of embedded derivatives related to certain annuity and life insurance products, see Embedded Derivatives within Policyholder Contract Deposits, below. Counterparty Credit Risk. Fair value measurement s for freestanding derivatives incorporate counterparty credit by determining the explicit cost for us to protect against our net credit exposure to each counterparty at the balance sheet date by reference to observable counterparty CDS spreads, when avail able. When not available, other directly or indirectly observable credit spreads will be used to derive the best estimates of the counterparty spreads. Our net credit exposure to a counterparty is determined based on master netting agreements, which take i nto consideration all derivative positions with the counterparty, as well as collateral posted by the counterparty at the balance sheet date. Fair values for fixed maturity securities based on observable market prices for identical or similar instruments i mplicitly incorporate counterparty credit risk. Fair values for fixed maturity securities based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or ot her observable information. For fair values measured based on internal models, t he cost of credit protection is determined under a discounted present value approach considering the market levels for single name CDS spreads for each specific counterparty, the mid - market value of the net exposure (reflecting the amount of protection required) and the weighted average life of the net exposure. CDS spreads are provided to us by an independent third party. We utilize an interest rate based on the benchmark London Interbank Offered Rate (LIBOR) curve to derive our discount rates. While this approach does not explicitly consider all potential future behavior of the derivative transactions or potential future changes in valuation inp uts, we believe this approach provides a reasonable estimate of the fair value of the assets and liabilities, including consideration of the impact of non-performance risk. Fixed Maturity Securities Whenever available, we obtain quoted prices in active m arkets for identical assets at the balance sheet date to measure fixed maturity securitie s at fair value . Market price data is generally obtained from dealer markets. We employ independent third - party valuation service providers to gather, analyze, and int erpret market information to derive fair value estimates for individual investments, based upon market - accepted methodologies and assumptions. The methodologies used by these independent third - party valuation service providers are reviewed and understood b y management, through periodic discussion with and information provided by the independent third-party valuation service providers . In addition, as discussed further below, control processes are applied to the fair values received from independent third - pa rty valuation service providers to ensure the accuracy of these values. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of market- accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and various assumptions, provide a single fair value measurement for individual securities. The inputs used by the valuation service providers include, but are no t limited to, market prices from completed transactions for identical securities and transactions for comparable securities, benchmark yields, interest rate yield curves, credit spreads, prepayment rates, default rates, recovery assumptions, currency rates , quoted prices for similar securities and other market - observable information, as applicable. If fair value is determined using financial models, these models generally take into account, among other things, market observable information as of the measure ment date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security or issuer - specific information. When market transaction s or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We have control processes designed to ensure that the fair values received from independent third - party valuation service provider s are accurately recorded, that their data inputs and valuation techniques are appropriate and consistently applied and that the assumptions used appear reasonable and consistent with the objective of determining fair value. We assess the reasonabl eness of individual security values received from independent third - party valuation service providers through various analytical techniques, and have procedures to escalate related questions internally and to the independent third - party valuation service p rovider s for resolution. T o assess the degree of pricing consensus among various valuation service provider s for specific asset types, we conduct comparisons of prices received from available sources. We use these comparisons to establish a hierarchy for t he fair values received from independent third - party valuation service provider s to be used for particular security classes. We also validate prices for selected securities through reviews by members of management who have relevant expertise and who are in dependent of those charged with executing investing transactions. When our independent third - party valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing market accepted valuation models. Broker prices may be based on an income approach , which converts expected future cash flows to a single present value amount, with specific consideration of inputs relevant to particular security types. For structured securities, such inputs may include ratings, collateral types, geographic concentratio ns, underlying loan vintages, loan delinquencies and defaults, loss severity assumptions, prepayments, and weighted average coupons and maturities. When the volume or level of market activity for a security is limited, certain inputs used to determine fair value may not be observable in the market. Broker prices may also be based on a market approach that considers recent transactions involving identical or similar securities. Fair values provided by brokers are subject to similar control processes to those noted above for fair values from independent third - party valuation service providers, including management reviews. For those corporate debt instruments (for example, private placements) that are not traded in active markets or that are subject to transfe r restrictions, valuations reflect illiquidity and non-transferability, based on available market evidence. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on cred it spreads, yields or price levels of comparable securities, adjusted for illiquidity and structure. Fair values determined internally are also subject to management review to ensure that valuation models and related inputs are reasonable. The methodology above is relevant for all fixed maturity securities including residential mortgage backed securities ( RMBS ) , commercial mortgage backed securities ( CMBS ) , collateralized debt obligations ( CDO ) , o ther asset -backed securities ( ABS ) and fixed maturity securit ies issued by government sponsored entities and corporate entities. Equity Securities Traded in Active Markets Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure equity securities at fair value. Market price data is generally obtained from exchange or dealer markets. Mortgage and Other Loans Receivable We estimate the fair value of mortgage and other loans receivable that are measured at fair value by using dealer quotations, discounted cash flow analyses and/or internal valuation models. The determin ation of fair value considers inputs such as interest rate, maturity, the borrower’s creditworthiness, collateral, subordination, guarantees, past-due status, yield curves, credit curves, prepayment rates, market pricing for comparable loans and other rele vant factors. Other Invested Assets We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price. Subsequently, we generally obtain the fair value of these investments from net asset value information provided by the general partner or manager of the investments, the financial statements of which are generally audited annually. We consider observable market data and perform certain control procedure s to validate the appropriateness of using the net asset value as a fair value measurement. The fair values of other investments carried at fair value, such as direct private equity holdings, are initially determined based on transaction price and are subs equently estimated based on available evidence such as market transactions in similar instruments , other financing transactions of the issuer and other available financial information for the issuer , with adjustments made to reflect illiquidity as appropri ate. Short-term Investments For short-term investments that are measured at amortized cost, the carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk. Securities purchased under agreements to resell (reverse repurchase agreements ) are generally treated as collateralized receivables. We report certain receivables arising from securities purchased under agreements to resell as Short-term investments in the Consolidated Balance Sheets. When these receivables are measured at fair val ue, we use market-observable interest rates to determine fair value. Separate Account Assets Separate account assets are composed primarily of registered and unregistered open-end mutual funds that generally trade daily and are measured at fair value in the manner discussed above for equity securities traded in active markets. Freestanding Derivatives Derivative assets and liabilities can be exchange - traded or traded over-the-counter (OTC). We generally value exchange - traded derivatives such as futures and options using quoted prices in active markets for identical derivatives at the balance sheet date. OTC derivatives are valued using market transactions and other market evidence whenever possible, including market - based inputs to models, model calibra tion to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual t erms of, and specific risks inherent in the instrument, as well as the availability of pricing information in the market. We generally use similar models to value similar instruments. Valuation models require a variety of inputs, including contractual term s, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment. For certain OTC derivatives that trade in less liquid markets, where we generally do not have corroborating market e vidence to support significant model inputs and cannot verify the model to market transactions, the transaction price may provide the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. We will update valuation inputs in these models only when corroborated by evidence such as similar market transactions, independent third - party valuation service provider s and/or broker or deale r quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. We value our super senior credit default swap portfolio using prices obtained from vendors and/or counterparties. The valuation of the super senior credit derivatives is complex because of the limited availability of market observable information due to the lack of trading and price transparency in certain structured finance markets. Our valuation methodologies for the super senior CDS portfolio have evolved over time in response to market conditions an d the availability of market observable information. We have sought to calibrate the methodologies to available market information and to review the assumptions of the methodologies on a regular basis. Embedded Derivatives within Policyholder Contract Deposits Certain variable annuity and equity - indexed annuity and life contracts contain embedded derivatives that we bifurcate from the host contracts and account for separately at fair value, with changes in fai r value recognized in earnings. These embedded derivatives are classified within Policyholder contract deposits. We have concluded these contracts contain eit her ( i ) a written option that guarantees a minimum accumulation value at maturity , (ii) a written option that guarantee s annual withdrawals regardless of underlying market performance for a specific period or for life, or (iii) equity - indexed written optio ns that meet the criteria of derivatives and must be bifurcated. The fair value of embedded derivatives contained in certain variable annuity and equity - indexed annuity and life contracts is measured based on actuarial and capital market assumptions relate d to projected cash flows over the expected lives of the contracts. These discounted cash flow projections primarily include benefits and related fees assessed, when applicable . In some instances, the projected cash flows from fees may exceed projected cas h flows related to benefit payments and therefore, at a point in time, the carrying value of the embedded derivative may be in a net asset position. The projected cash flows incorporate best estimate assumptions for policyholder behavior (including mortali ty, lapses, withdrawals and benefit utilization), along with an explicit risk margin to reflect a market participant ’s estimates of projected cash flows and policyholder behavior. Estimates of future policyholder behavior are subjective and based primarily on our historical experience. B ecause of the dynamic and complex nature of the proj ected cash flows w ith respect to embedded derivatives in our variable annuity con tracts, risk neutral valuations are used which are calibrated to observable interest rate a nd equity option prices . Estimating the underlying cash flows for these products involves judgment s regarding expected market rates of return, market volatility, credit spreads, correlations of certain market variables , fund performance, discount rates and policyholder behavior. The portion of fees attributable to the fair value of expected benefit payments are included within the fair value measurement of these embedded derivatives and related fees are classified in net realized gain/loss as earned, consis tent with other changes in the fair value of these embedded policy derivatives. Any portion of the fees not attributed to the embedded derivative are excluded from the fair value measurement and classified in policy fees as earned. With respect to embedde d derivatives in our equity - indexed annuity and life contracts, option pricing models are used to estimate fair value, taking into account assumptions for future equity index growth rates, volatility of the equity index, future interest rates, and determinations on adjusting the participation rate and the cap on equity - indexed credited rates in light of market conditions and policyholder behavior assumptions. Projected cash flows are discounted using the interest rate swap curve (swap curve), which is commonly viewed as being consistent with the credit spreads for highly -rated financial institutions (S&P AA-rated or above). A swap curve shows the fixed-rate leg of a non-complex swap against the floating rate (for example, LIBOR) leg of a related ten or. We also incorporate our own risk of non-performance in the valuation of the embedded derivatives associated with variable annuity and equity - indexed annuity and life contracts. The non-performance risk adjustment reflects a market participant’s view of our claims-paying ability by incorporating an additional spread to the swap curve used to discount projected benefit cash flows in the valuation of these embedded derivatives. The non-performance risk adjustment is calculated by constructing forward rates based on a weighted average of observable corporate credit indices to approximate the claims-paying ability rating of our Life Insurance Companies. Long-Term Debt The fair value of non-structured liabilities is ge nerally determined by using market prices from exchange or dealer markets, when available, or discounting expected cash flows using the appropriate discount rate for the applicable maturity. We determine the fair value of structured liabilities and hybrid financial instruments (where performance is linked to structured interest rates, inflation or currency risks) using the appropriate derivative valuation methodology (described above) given the nature of the embedded risk profile. In addition, adjustments a re made to the valuations of both non-structured and structured liabilities to reflect our own creditworthiness based on the methodology described under the caption “Incorporation of Credit Risk in Fair Value Measurements – Our Own Credit Risk ” above. Borr owings under obligations of guaranteed investment agreements (GIAs), which are guaranteed by us, are recorded at fair value using discounted cash flow calculations based on interest rates currently being offered for similar contracts and our current market observable implicit credit spread rates with maturities consistent with those remaining for the contracts being valued. Obligations may be called at various times prior to maturity at the option of the counterparty. Interest rates on these borrowings are primarily fixed, vary by maturity and range up to 7.62 percent . Other Liabilities Other liabilities measured at fair value include certain securities sold under agreements to repurchase and certain securities sold but not yet purchas ed. Liabilities arising from securities sold under agreements to repurchase are generally treated as collateralized borrowings. We estimate the fair value of liabilities arising under these agreements by using market - observable interest rates. This methodo logy considers such factors as the coupon rate, yield curves and other relevant factors. Fair values for securities sold but not yet purchased are based on current market prices. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used: December 31, 2015 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting * Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ - $ 1,844 $ - $ - $ - $ 1,844 Obligations of states, municipalities and political subdivisions - 25,199 2,124 - - 27,323 Non-U.S. governments 683 17,480 32 - - 18,195 Corporate debt - 134,618 1,370 - - 135,988 RMBS - 19,690 16,537 - - 36,227 CMBS - 10,986 2,585 - - 13,571 CDO/ABS - 8,928 6,169 - - 15,097 Total bonds available for sale 683 218,745 28,817 - - 248,245 Other bond securities: U.S. government and government sponsored entities - 3,369 - - - 3,369 Obligations of states, municipalities and political subdivisions - 75 - - - 75 Non-U.S. governments - 50 - - - 50 Corporate debt - 2,018 17 - - 2,035 RMBS - 649 1,581 - - 2,230 CMBS - 557 193 - - 750 CDO/ABS - 1,218 7,055 - - 8,273 Total other bond securities - 7,936 8,846 - - 16,782 Equity securities available for sale: Common stock 2,401 - - - - 2,401 Preferred stock 22 - - - - 22 Mutual funds 491 1 - - - 492 Total equity securities available for sale 2,914 1 - - - 2,915 Other equity securities 906 1 14 - - 921 Mortgage and other loans receivable - - 11 - - 11 Other invested assets 2 4,256 4,654 - - 8,912 Derivative assets: Interest rate contracts - 3,150 12 - - 3,162 Foreign exchange contracts - 766 - - - 766 Equity contracts 91 32 54 - - 177 Commodity contracts - - - - - - Credit contracts - - 3 - - 3 Other contracts - 2 21 - - 23 Counterparty netting and cash collateral - - - (1,268) (1,554) (2,822) Total derivative assets 91 3,950 90 (1,268) (1,554) 1,309 Short-term investments 1,416 1,175 - - - 2,591 Separate account assets 73,699 5,875 - - - 79,574 Total $ 79,711 $ 241,939 $ 42,432 $ (1,268) $ (1,554) $ 361,260 Liabilities: Policyholder contract deposits $ - $ 36 $ 2,289 $ - $ - $ 2,325 Other policyholder funds 6 - - - - 6 Derivative liabilities: Interest rate contracts - 2,137 62 - - 2,199 Foreign exchange contracts - 1,197 7 - - 1,204 Equity contracts - 68 - - - 68 Commodity contracts - - - - - - Credit contracts - - 508 - - 508 Other contracts - - 69 - - 69 Counterparty netting and cash collateral - - - (1,268) (760) (2,028) Total derivative liabilities - 3,402 646 (1,268) (760) 2,020 Long-term debt - 3,487 183 - - 3,670 Other liabilities - 62 - - - 62 Total $ 6 $ 6,987 $ 3,118 $ (1,268) $ (760) $ 8,083 December 31, 2014 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting * Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 322 $ 2,670 $ - $ - $ - $ 2,992 Obligations of states, municipalities and political subdivisions - 25,500 2,159 - - 27,659 Non-U.S. governments 742 20,323 30 - - 21,095 Corporate debt - 142,550 1,883 - - 144,433 RMBS - 20,715 16,805 - - 37,520 CMBS - 10,189 2,696 - - 12,885 CDO/ABS - 7,165 6,110 - - 13,275 Total bonds available for sale 1,064 229,112 29,683 - - 259,859 Other bond securities: U.S. government and government sponsored entities 130 5,368 - - - 5,498 Obligations of states, municipalities and political subdivisions - 122 - - - 122 Non-U.S. governments - 2 - - - 2 Corporate debt - 719 - - - 719 RMBS - 989 1,105 - - 2,094 CMBS - 708 369 - - 1,077 CDO/ABS - 2,751 7,449 - - 10,200 Total other bond securities 130 10,659 8,923 - - 19,712 Equity securities available for sale: Common stock 3,626 2 1 - - 3,629 Preferred stock 25 - - - - 25 Mutual funds 738 3 - - - 741 Total equity securities available for sale 4,389 5 1 - - 4,395 Other equity securities 1,024 25 - - - 1,049 Mortgage and other loans receivable - - 6 - - 6 Other invested assets 2 3,742 5,650 - - 9,394 Derivative assets: Interest rate contracts 2 3,729 12 - - 3,743 Foreign exchange contracts - 839 1 - - 840 Equity contracts 98 58 51 - - 207 Commodity contracts - - - - - - Credit contracts - - 4 - - 4 Other contracts - - 31 - - 31 Counterparty netting and cash collateral - - - (2,102) (1,119) (3,221) Total derivative assets 100 4,626 99 (2,102) (1,119) 1,604 Short-term investments 584 1,100 - - - 1,684 Separate account assets 73,939 6,097 - - - 80,036 Total $ 81,232 $ 255,366 $ 44,362 $ (2,102) $ (1,119) $ 377,739 Liabilities: Policyholder contract deposits $ - $ 52 $ 1,509 $ - $ - $ 1,561 Other policyholder funds - 8 - - - 8 Derivative liabilities: Interest rate contracts - 3,047 86 - - 3,133 Foreign exchange contracts - 1,482 9 - - 1,491 Equity contracts - 98 4 - - 102 Commodity contracts - 6 - - - 6 Credit contracts - - 982 - - 982 Other contracts - - 90 - - 90 Counterparty netting and cash collateral - - - (2,102) (1,429) (3,531) Total derivative liabilities - 4,633 1,171 (2,102) (1,429) 2,273 Long-term debt - 5,253 213 - - 5,466 Other liabilities 34 316 - - - 350 Total $ 34 $ 10,262 $ 2,893 $ (2,102) $ (1,429) $ 9,658 * Represents netting of derivative exposures covered by qualifying master netting agreement s . 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 de termination 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 freq uency a re indicative of an active market. During the years ended December 31, 2015 and 2014 , we transferred $ 695 million and $ 590 million, respectively, of securities issued by Non-U.S. government enti ties from Level 1 to Level 2 , because they are no longer considered actively traded. For similar reasons, during the years ended December 31, 2015 and 2014 , we transferred $ 181 million and $ 107 millio n, respectively, of securities issued by the U.S. government and government -sponsored entities from Level 1 to Level 2. There were no material transfers from Level 2 to Level 1 during the years ended December 31, 2015 and 2014 . Ch anges in Level 3 R ecurring F air V alue M easurements The following tables present changes during the years ended December 31, 2015 and 2014 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the real ized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Consolidated Balance Sheet s at December 31, 2015 and 2014 : 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 Year in Income Income (Loss) Settlements, Net In Out of Year at End of Year December 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,159 $ 1 $ (85) $ 154 $ - $ (105) $ 2,124 $ - Non-U.S. governments 30 - (7) 10 - (1) 32 - Corporate debt 1,883 15 (109) (210) 1,515 (1,724) 1,370 - RMBS 16,805 1,052 (512) (808) - - 16,537 - CMBS 2,696 77 (95) 118 - (211) 2,585 - CDO/ABS 6,110 149 (258) 300 7 (139) 6,169 - Total bonds available for sale 29,683 1,294 (1,066) (436) 1,522 (2,180) 28,817 - Other bond securities: Corporate debt - - - 1 16 - 17 - RMBS 1,105 32 - 460 43 (59) 1,581 (27) CMBS 369 (3) - (177) 4 - 193 (13) CDO/ABS 7,449 646 - (1,658) 698 (80) 7,055 (87) Total other bond securities 8,923 675 - (1,374) 761 (139) 8,846 (127) Equity securities available for sale: Common stock 1 2 - (3) - - - - Preferred stock - - - - - - - - Total equity securities available for sale 1 2 - (3) - - - - Other equity securities - (1) - (7) 22 - 14 (2) Mortgage and other loans receivable 6 - - 5 - - 11 - Other invested assets 5,650 435 (789) (530) 117 (229) 4,654 - Total $ 44,263 $ 2,405 $ (1,855) $ (2,345) $ 2,422 $ (2,548) $ 42,342 $ (129) Liabilities: Policyholder contract deposits $ (1,509) $ (315) $ - $ (465) $ - $ - $ (2,289) $ 64 Derivative liabilities, net: Interest rate |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2015 | |
INVESTMENTS | |
INVESTMENTS | 5. INVESTMENTS Fixed Maturity and Equity Securities Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or are measured at fair value at our election. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2015 or 2014 . Fixed maturity and equity securities classified as available for sale are carried at fair value. Unrealized gains and losses from available for sale investments in fixed maturity and equity securities are reported as a separ ate component of Accumulated other comprehensive income, net of deferred policy acquisition costs and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity and equity securities measured at fair value at our election are reflected in Net investment income (for insurance subsidiaries) or Other income (for Corporate and Other ). Investments in fixed maturity and equity securities are recorded on a trade-date basis. Premiums and discounts arising from the p urchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain RMBS, CMBS and CDO/ABS, (collectively, structured securities), recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and up dated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities tha t are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For purchased credit impaired (PCI) securities, at acquisition, the difference between the undiscounted expected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into n et investment income over the securities’ remaining lives on a level -yield basis. Subsequently, effective yield s recognized on PCI securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising due to re asons other than interest rate changes. Securities Available for Sale The following table presents the amortized cost or cost and fair value of our available for sale securities: Other-Than- Amortized Gross Gross Temporary Cost or Unrealized Unrealized Fair Impairments (in millions) Cost Gains Losses Value in AOCI (a) December 31, 2015 Bonds available for sale: U.S. government and government sponsored entities $ 1,698 $ 155 $ (9) $ 1,844 $ - Obligations of states, municipalities and political subdivisions 26,003 1,424 (104) 27,323 19 Non-U.S. governments 17,752 805 (362) 18,195 - Corporate debt 133,513 6,462 (3,987) 135,988 (87) Mortgage-backed, asset-backed and collateralized: RMBS 33,878 2,760 (411) 36,227 1,326 CMBS 13,139 561 (129) 13,571 185 CDO/ABS 14,985 360 (248) 15,097 39 Total mortgage-backed, asset-backed and collateralized 62,002 3,681 (788) 64,895 1,550 Total bonds available for sale (b) 240,968 12,527 (5,250) 248,245 1,482 Equity securities available for sale: Common stock 913 1,504 (16) 2,401 - Preferred stock 19 3 - 22 - Mutual funds 447 53 (8) 492 - Total equity securities available for sale 1,379 1,560 (24) 2,915 - Total $ 242,347 $ 14,087 $ (5,274) $ 251,160 $ 1,482 December 31, 2014 Bonds available for sale: U.S. government and government sponsored entities $ 2,806 $ 204 $ (18) $ 2,992 $ - Obligations of states, municipalities and political subdivisions 25,979 1,729 (49) 27,659 (13) Non-U.S. governments 20,280 966 (151) 21,095 - Corporate debt 134,961 10,594 (1,122) 144,433 64 Mortgage-backed, asset-backed and collateralized: RMBS 34,377 3,435 (292) 37,520 1,767 CMBS 12,129 815 (59) 12,885 215 CDO/ABS 12,775 628 (128) 13,275 47 Total mortgage-backed, asset-backed and collateralized 59,281 4,878 (479) 63,680 2,029 Total bonds available for sale (b) 243,307 18,371 (1,819) 259,859 2,080 Equity securities available for sale: Common stock 1,185 2,461 (17) 3,629 - Preferred stock 21 4 - 25 - Mutual funds 724 54 (37) 741 - Total equity securities available for sale 1,930 2,519 (54) 4,395 - Total $ 245,237 $ 20,890 $ (1,873) $ 264,254 $ 2,080 ( 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 fair value of such securities subsequent to the impairment measurement date. (b) At December 31, 2015 and 2014 , bonds available for sale held by us that were below investment grade or not rated totaled $ 34.9 billion and $ 35.1 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 December 31, 2015 Bonds available for sale: U.S. government and government sponsored entities $ 483 $ 9 $ 1 $ - $ 484 $ 9 Obligations of states, municipalities and political subdivisions 2,382 87 268 17 2,650 104 Non-U.S. governments 4,327 203 832 159 5,159 362 Corporate debt 41,317 2,514 5,428 1,473 46,745 3,987 RMBS 7,215 133 4,318 278 11,533 411 CMBS 4,138 108 573 21 4,711 129 CDO/ABS 7,064 104 2,175 144 9,239 248 Total bonds available for sale 66,926 3,158 13,595 2,092 80,521 5,250 Equity securities available for sale: Common stock 91 16 - - 91 16 Mutual funds 200 8 - - 200 8 Total equity securities available for sale 291 24 - - 291 24 Total $ 67,217 $ 3,182 $ 13,595 $ 2,092 $ 80,812 $ 5,274 December 31, 2014 Bonds available for sale: U.S. government and government sponsored entities $ 526 $ 5 $ 281 $ 13 $ 807 $ 18 Obligations of states, municipalities and political subdivisions 495 9 794 40 1,289 49 Non-U.S. governments 1,606 42 1,690 109 3,296 151 Corporate debt 12,132 450 11,570 672 23,702 1,122 RMBS 4,621 109 3,996 183 8,617 292 CMBS 220 1 2,087 58 2,307 59 CDO/ABS 3,857 50 1,860 78 5,717 128 Total bonds available for sale 23,457 666 22,278 1,153 45,735 1,819 Equity securities available for sale: Common stock 88 16 2 1 90 17 Mutual funds 280 37 64 - 344 37 Total equity securities available for sale 368 53 66 1 434 54 Total $ 23,825 $ 719 $ 22,344 $ 1,154 $ 46,169 $ 1,873 At December 31, 2015 , we held 14,972 and 174 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 2,176 individual fixed maturity securities were in a continuous unrealized loss position for 12 months or more . We did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 2015 becau se 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. Co ntractual 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 Available December 31, 2015 Available for Sale for Sale in a Loss Position (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 9,176 $ 9,277 $ 1,122 $ 1,103 Due after one year through five years 47,230 49,196 9,847 9,494 Due after five years through ten years 54,120 54,459 22,296 20,686 Due after ten years 68,440 70,418 26,235 23,755 Mortgage-backed, asset-backed and collateralized 62,002 64,895 26,271 25,483 Total $ 240,968 $ 248,245 $ 85,771 $ 80,521 December 31, 2014 Due in one year or less $ 9,821 $ 9,975 $ 637 $ 620 Due after one year through five years 48,352 50,873 6,669 6,529 Due after five years through ten years 62,685 65,889 12,873 12,338 Due after ten years 63,168 69,442 10,255 9,607 Mortgage-backed, asset-backed and collateralized 59,281 63,680 17,120 16,641 Total $ 243,307 $ 259,859 $ 47,554 $ 45,735 Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. The following table presents the gross realized gains and gross realized losses from sales or maturities of our available for sale securities: Years Ended December 31, 2015 2014 2013 Gross Gross Gross Gross Gross Gross Realized Realized Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Gains Losses Fixed maturity securities $ 517 $ 423 $ 703 $ 118 $ 2,634 $ 202 Equity securities 1,060 28 135 24 130 19 Total $ 1,577 $ 451 $ 838 $ 142 $ 2,764 $ 221 For the years ended December 31, 2015 , 2014 and 2013 , the aggregate fair value of available for sale securities sold was $ 28.7 billion, $ 25.3 billion and $ 35.9 billion, which resulted in net realized capital gains of $ 1.1 billion, $ 0.7 billion and $ 2.5 billion, respectively. Other Securities Measured at Fair Value The following table presents the fair value of other securities measured at fair value based on our election of the fair value option: December 31, 2015 December 31, 2014 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 3,369 19 % $ 5,498 27 % Obligations of states, municipalities and political subdivisions 75 - 122 1 Non-U.S. governments 50 - 2 - Corporate debt 2,035 12 719 3 Mortgage-backed, asset-backed and collateralized : RMBS 2,230 13 2,094 10 CMBS 750 4 1,077 5 CDO/ABS and other collateralized * 8,273 47 10,200 49 Total mortgage-backed, asset-backed and collateralized 11,253 64 13,371 64 Total fixed maturity securities 16,782 95 19,712 95 Equity securities 921 5 1,049 5 Total $ 17,703 100 % $ 20,761 100 % * Inclu des $ 712 m illion and $ 859 m illion of U.S. Government agency backed ABS at December 31, 2015 and 2014 , respectively. Other Invested Assets The following table summarizes the carrying amounts of other invested assets: December 31, (in millions) 2015 2014 Alternative investments (a) $ 18,150 $ 19,656 Investment real estate (b) 6,579 3,612 Aircraft asset investments (c) 477 651 Investments in life settlements 3,606 3,753 Investment in AerCap - 4,972 All other investments 982 1,874 Total $ 29,794 $ 34,518 (a) Includes hedge funds, private equity funds, affordable housing partnerships , and other investment partnership s. (b) Net of accumulated depreciation of $ 668 million and $ 315 million in 2015 and 2014 , respectively. (c) Consist s of investments in aircraft equipment held in consolidated trusts. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, affordable housing partnerships and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income with the exception of investments of AIG’s Corporate and Other category , for which such changes are repo rted in Other income. Other investments in hedge funds, private equity funds, affordable housing partnerships and other investment partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influe nce over the respective partnerships are reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income. These investments are subject to other-than-temporary impairment evaluations (see discussion bel ow on evaluating equity investments for other-than-temporary impairment). The gross unrealized loss recorded in Other comprehensive income on such investments was $ 33 million and $ 56 million at December 31, 2015 and 2014 , respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in continuous unrealized loss positions for less than 12 months. Other Invested Assets – Equity Method Investments We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over par tnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income with the exception of investments of AIG’s Corporate and Other category, for which such changes are reported in Other income. In applying the equity method of accounting, we consistently use the most r ecently available financial information provided by the general partner or manager of each of these investments, which is one to three months prior to the end of our reporting period. The financial statements of these investees are generally audited annual ly. Summarized Financial Information of Equity Method Investees The following is the aggregated summarized financial information of our equity method investees , including those for which the fair value option has been elected: Years Ended December 31, (in millions) 2015 2014 2013 Operating results: Total revenues $ 22,055 $ 29,579 $ 19,181 Total expenses (3,898) (7,828) (5,515) Net income $ 18,157 $ 21,751 $ 13,666 At December 31, (in millions) 2015 2014 Balance sheet: Total assets $ 201,007 $ 207,994 Total liabilities $ (33,424) $ (67,346) The following t able presents the carrying amount and ownership percentage of equity method investments at December 31, 2015 and 2014 : 2015 2014 Carrying Ownership Carrying Ownership (in millions, except percentages) Value Percentage Value Percentage Equity method investments $ 14,259 Various $ 18,951 Various Summarized financial information for these equity method investees may be presented on a lag, due to the unavailability of information for the investees at our respective balance sheet dates, and is included for the periods in which we held an equity method ownership interest . Other Investments Also included in Other invested assets are real estate held for investment and investments in aircraft equipment held in consolidated trusts. These investments are reported at cost, less depreciat ion and are subject to impairment review, as discussed below. Investments in Life Settlement s Investments in life settlements are accounted for under the investment method. Under the investment method, we recognize our initial investment in life settleme nts at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force, primarily life insurance premiums, increase the carrying amount of the investment. We recognize income on individual investments in life sett lements when the insured dies, at an amount equal to the excess of the investment proceeds over the carrying amount of the investment at that time. These investments are subject to impairment review, as discussed below. During 2015 , 2014 and 2013 , income recognized on investments in life settlements was $ 332 million, $ 407 million and $ 334 million, respectively, and is included in Net investmen t income in the Consolidated Statements of Income. The following table presents further information regarding investments in life settlements: December 31, 2015 Number of Carrying Face Value (dollars in millions) Contracts Value (Death Benefits) Remaining Life Expectancy of Insureds: 0 – 1 year 1 $ - $ - 1 – 2 years 9 9 17 2 – 3 years 16 10 20 3 – 4 years 72 50 113 4 – 5 years 156 235 485 Thereafter 4,300 3,302 14,233 Total 4,554 $ 3,606 $ 14,868 Remaining life expectancy for year 0-1 references policies whose current life expectancy is less than 12 months as of the valuation date. Remaining life expectancy is not an indication of expected maturity. Actual maturity dates in any category may vary significantly (either earlier or later) from the remaining life expectancies reported above. At December 31, 2015 , management’s best estimate of the life insurance premiums required to keep the investments in life settlements in force, paya ble in the 12 months ending December 31, 2016 and the four succeeding years ending December 31, 20 20 are $ 530 million, $ 553 million, $ 579 million, $ 598 million and $ 607 million, respectively. N et Investment Income Net investment income represents income primarily from the following sources: Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. Dividend income from common and preferred stock s and earnings distributions from other investments. Realized and unrealized gains and losses from investments in other securi ties and investments for which we elected the fair value option. Earnings from alternative investments. The difference between the carrying amount of an investment in life settlements and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured. The following table presents the components of Net i nv estment i ncome: Years Ended December 31, (in millions) 2015 2014 2013 Fixed maturity securities, including short-term investments $ 11,332 $ 12,322 $ 12,044 Equity securities 99 221 178 Interest on mortgage and other loans 1,417 1,272 1,144 Alternative investments * 1,476 2,624 2,803 Real estate 181 110 128 Other investments 76 47 61 Total investment income 14,581 16,596 16,358 Investment expenses 528 517 548 Net investment income $ 14,053 $ 16,079 $ 15,810 * Includes hedge funds, private equity funds, affordable housing partnerships, investments in life settlements and other investment partnerships. Net Realized Capital Gains and Losses Net realized capital gains and losses are determined by specific identification. The net realized capital gains and losses are generated primarily from the following sources: Sales or full redemptions of available for sale fixed maturity securities , available for sale equity securities , real estate and other alternative investments . Reductions to the cost basis of available for sale fixed maturity securities , available for sale equity securities and certain other invested assets for other-than-temporary impairments. Impairments on investments in life settlements. Changes in fair value of derivatives except for (1) those derivatives at AIGFP and (2) those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses). Exchange gains and losses resulting from foreign currency transactions. The following table presents the components of Net realized capital gains (losses) : Years Ended December 31, (in millions) 2015 2014 2013 Sales of fixed maturity securities $ 94 $ 585 $ 2,432 Sales of equity securities (a) 1,032 111 111 Other-than-temporary impairments: Severity (13) (3) (6) Change in intent (233) (40) (48) Foreign currency declines (57) (19) (1) Issuer-specific credit events (348) (169) (170) Adverse projected cash flows (20) (16) (7) Provision for loan losses (58) (1) (26) Foreign exchange transactions 416 598 151 Derivative instruments 341 (177) 287 Impairments on investments in life settlements (540) (201) (971) Other 162 (b) 71 187 Net realized capital gains $ 776 $ 739 $ 1,939 ( a ) Includes realized gains on the sale of our equity interests in PICC. ( b) Includes realized gains due to the sale of Class B shares of Prudential Financial, Inc. and common shares of Springleaf Holdings, Inc. and realized losses on the sale of ordinary shares of AerCap . Change in Unrealized Appreciation (Depreciation) of Investments The following table presents the increase (decre ase) in unrealized appreciation (depreciation) of our available for sale securities and other investments : Years Ended December 31, (in millions) 2015 2014 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ (9,275) $ 6,809 Equity securities (929) 535 Other investments (803) 376 Total increase (decrease) in unrealized appreciation (depreciation) of investments $ (11,007) $ 7,720 Evaluating Investments for Other-Than-Temporary Impairments Fixed Maturity Securities If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an other -than-temporary impairment has occurred and the amortized cost is written down to current fa ir value, with a corresponding charge to realized capital losses . When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a credit impairment has occurred, the amortized cost is writte n down to the estimated recoverable value with a corresponding charge to realized capital losses . The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management . The difference between fair value and amortized cost that is not related to a credit impairment is presente d in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income). When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers historic al performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: Current delinquency rates; Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Expected prepayment speeds. For corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers the fair value as the recoverable value when available information does not indicate that another value is more relevant or reliable. When m anagement identifies information that supports a recoverable value other than the fair value, the determination of a recoverable value considers scenarios specific to the issuer and the security, and may be based upon estimates of outcomes of corporate res tructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. We consider severe price declines in our assessment of potential credit impairm ents. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. In periods subsequent to the recognition of an other -than-temporary impairment charge for a vailable for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and th e expected undiscounted recoverable value over the remaining expected holding perio d of the security. Credit Impairments The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: Years Ended December 31, (in millions) 2015 2014 2013 Balance, beginning of year $ 2,659 $ 3,872 $ 5,164 Increases due to: Credit impairments on new securities subject to impairment losses 111 49 47 Additional credit impairments on previously impaired securities 109 85 78 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell (399) (613) (643) Credit impaired securities for which there is a current intent or anticipated requirement to sell 2 - - Accretion on securities previously impaired due to credit * (735) (725) (774) Other - (9) - Balance, end of year $ 1,747 $ 2,659 $ 3,872 * Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time. Equity Securities We evaluate our available for sale equity securities for impairment by considering such securities as candidates for other-than-temporary impairment if they meet any of the following criteria: The security has traded at a significant (25 percent or more) discount to cost for an extended period of time (nine consecutive months or longer); A discrete credit event has occurred resulting in ( i ) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy la ws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or We have concluded that we may not realize a full recovery on our investment, regardless of the occurrence of one of the foregoing events. The determination that an equity security is other-than-te mporarily impaired requires the judgment of management and consideration of the fundamental condition of the issuer, its near-term prospects and all the relevant facts and circumstances. In addition to the above criteria , all equity securities that have be en in a continuous decline in value below cost over twelve months are impaired. We also consider circumstances of a rapid and severe market valuation decline (50 percent or more) discount to cost, in which we could not reasonably assert that the impairment period would be temporary (severity losses). Other Invested Assets Our equity and cost method investments in private equity funds, hedge funds and other entities are evaluated for impairment similar to the evaluation of equity securities for impairments a s discussed above. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investment s and specific inherent risks. Such risks may evolve based on the nature of the underlying investments. Our investments in life settlements are monitored for impairment on a contract-by-contract basis quarterly. An investment in life settlements is conside red impaired if the undiscounted cash flows resulting from the expected proceeds would not be sufficient to recover our estimated future carrying amount , which is the current ca r rying amount for the investment in life settlements plus anticipated undiscounted future premiums and other capitalizable future costs, if any. Impaired investments in life settlements are written down to their estimated fair value which is determined on a discounted cash flow basis, incorporating current market mortality assumptions and market yields. In general, fair value estimates for the investments in life settlements are calculated using cash flows based on medical underwriting ratings of the polic ies from a third-party underwriter, applied to an industry mortality table. Our mortality assumptions are based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. M ortality improvement factors are a pplied to these assumptions based on our view of future mortality improvements likely to apply to the U.S. insured lives population. Our mortality assumptions coupled with the mortality improvement rates are used in our estimate of future net cash flows fr om the investments in life settlements . Our investments in aircraft assets and real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. Purchased Credit Impaired (PCI) Securities We purchas e certain RMBS securities that ha ve 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 w ill not collect all contractually required payments for these PCI securities, including both principal and interest after considering the effects of prepayments. At acqui sition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security i s determined based on our best estimate using key assumptions, such as interest rates, default rates and prepayment speeds. At acquisition, th e 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 N et 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- accretabl e 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 ot her-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 inte rest 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 accr etable 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) $ 33,191 Cash flows expected to be collected * 26, |
LENDING ACTIVITIES
LENDING ACTIVITIES | 12 Months Ended |
Dec. 31, 2015 | |
LENDING ACTIVITIES | |
LENDING ACTIVITIES | 6 . LENDING ACTIVITIES Mortgage and other loans receivable include commercial mortgages , residential mortgages , life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages , residential mortgages , commercial loans, and other loans and notes receivable are carried at unpaid pr incipal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loa ns is accrued as earned. Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method. Life insurance policy lo ans are carried at unpaid principal balances. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. The following table presents the composition of Mortgage and other loans receivable, net: December 31, December 31, (in millions) 2015 2014 Commercial mortgages * $ 22,067 $ 18,909 Residential mortgages 2,758 1,007 Life insurance policy loans 2,597 2,710 Commercial loans, other loans and notes receivable 2,451 2,635 Total mortgage and other loans receivable 29,873 25,261 Allowance for credit losses (308) (271) Mortgage and other loans receivable, net $ 29,565 $ 24,990 * Commercial mortgages primarily represent loans for office s , retail and apartments , with exposures in New York and California representing the largest geographic concentrations ( aggregating approximately 22 percent and 12 percent, respectively, at December 31, 2015 , and 18 percent and 14 percent, respectively, at December 31, 2014 ) . Nonperforming loans ar e generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming mortgages were not significant for all periods presented. The following table presents the credit quality indicato rs for co mmercial mortgages : Number Percent December 31, 2015 of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total $ Credit Quality Indicator: In good standing 830 $ 3,916 $ 7,484 $ 4,809 $ 1,902 $ 2,082 $ 1,435 $ 21,628 98 % Restructured (a) 9 - 156 25 6 16 6 209 1 90 days or less delinquent 1 - - 4 - - - 4 - >90 days delinquent or in process of foreclosure 9 3 205 - 6 - 12 226 1 Total (b) 849 $ 3,919 $ 7,845 $ 4,838 $ 1,914 $ 2,098 $ 1,453 $ 22,067 100 % Allowance for credit losses: Specific - 16 1 6 1 - 24 - % General 35 47 29 8 15 13 147 1 Total allowance for credit losses $ 35 $ 63 $ 30 $ 14 $ 16 $ 13 $ 171 1 % December 31, 2014 (dollars in millions) Credit Quality Indicator: In good standing 1,007 $ 3,384 $ 6,100 $ 3,807 $ 1,689 $ 1,660 $ 1,812 $ 18,452 98 % Restructured (a) 7 - 343 7 - 17 - 367 2 90 days or less delinquent 6 - - 10 - - 5 15 - >90 days delinquent or in process of foreclosure 4 - 75 - - - - 75 - Total (b) 1,024 $ 3,384 $ 6,518 $ 3,824 $ 1,689 $ 1,677 $ 1,817 $ 18,909 100 % Allowance for credit losses: Specific $ - $ 27 $ 3 $ 13 $ 3 $ 9 $ 55 - % General 3 59 25 9 3 5 104 1 Total allowance for credit losses $ 3 $ 86 $ 28 $ 22 $ 6 $ 14 $ 159 1 % (a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. See discussion of troubled debt restructurings below. (b) Does not reflect allowance for credit losses . (c) Approximately 99 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest. M ethodology Used to Estimate the Allowance for Credit Losses Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i ) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observab le market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determi ned using the present value of cash flows or the loan’s observable market price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past due status, debt servic e coverage, loan-to-value ratio, property type and location , loan term, profile of the borrower and of the major proper ty tenants, and loan seasoning . When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the ca rrying amount of the loan is charged off against the allowance. Interest income is not accrued when payment of contractual princip al and interest is not expected. Any cash received on impaired loans is generally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is re paid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period. A significant majority of commercial mortgage s in the portfolio are non-recourse loans and, accor dingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable: 2015 2014 2013 Years Ended December 31, Commercial Other Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 159 $ 112 $ 271 $ 201 $ 111 $ 312 $ 159 $ 246 $ 405 Loans charged off (23) (6) (29) (29) (39) (68) (12) (104) (116) Recoveries of loans previously charged off 4 1 5 18 16 34 3 6 9 Net charge-offs (19) (5) (24) (11) (23) (34) (9) (98) (107) Provision for loan losses 31 27 58 (31) 23 (8) 52 (32) 20 Other - 3 3 - 1 1 (1) (5) (6) Allowance, end of year $ 171 * $ 137 $ 308 $ 159 * $ 112 $ 271 $ 201 * $ 111 $ 312 * Of the total allowance at the end of the year , $ 24 million and $ 55 million relates to individually assessed credit losses on $ 507 million and $ 192 million of commercial mortgage s as of December 31, 2015 and 2014 , respectively. Troubled Debt Restructurings We modify loans to optimize their returns and improve their collectability, among other things. When we undertake such a modification with a borrower that is experiencing financial difficulty and the modification involves us granting a concession to the troubled debtor, the modification is a troubled debt restructu ring (TDR). We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower’s current default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower’s forecasted cash flows to service any of its outstanding debt (including both principal and interest), and the borrower’s inability to access alternative third - party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor. Concessions granted may include extended maturity dates, interest rate changes, principal or interest forgiveness, payment deferrals and easing of loan covenants. During 2015 and 2014 , loans with a carrying value of $ 36 million and $ 218 million were modified in TDR s, respectively . |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2015 | |
REINSURANCE | |
REINSURANCE | 7. REINSURANCE In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our general insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred , ceded unearned premiums and ceded future policy benef its for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for d oubtful accounts requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for d oubtful accounts on reinsurance assets was $ 272 million and $ 258 million at December 31, 2015 and 2014 , respectively. Changes in the allowance for doubtful accounts on reinsuranc e assets are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income. The following table provides supplemental information for loss and benefit reserves, gross and net of ceded reinsurance: At December 31, 2015 2014 As Net of As Net of (in millions) Reported Reinsurance Reported Reinsurance Liability for unpaid losses and loss adjustment expenses (a) $ (74,942) $ (60,603) $ (77,260) $ (61,612) Future policy benefits for life and accident and health insurance contracts (43,585) (42,506) (42,749) (41,767) Reserve for unearned premiums (21,318) (18,380) (21,324) (18,278) Reinsurance assets (b) 18,356 19,676 (a) In 2015 and 2014 , the Net of Reinsurance amount reflects the cession under the June 17, 2011 transaction with National Indemnity Company (NICO) of $ 1.8 billion and $ 1.5 billion , respectively . (b) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses. Short-Duration Reinsurance Short-duration reinsurance is e ffected under reinsurance treaties and by negotiation on individu al risks. Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a componen t of Reinsurance assets. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premi ums. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. The following table presents short-duration insurance premiu ms written and earned: Years Ended December 31, Non-Life Insurance Companies (in millions) 2015 2014 2013 Premiums written: Direct $ 37,698 $ 39,375 $ 39,833 Assumed 2,972 3,399 4,306 Ceded (7,604) (8,318) (9,514) Net $ 33,066 $ 34,456 $ 34,625 Premiums earned: Direct $ 37,105 $ 38,707 $ 39,018 Assumed 2,659 3,258 3,516 Ceded (7,593) (8,140) (8,585) Net $ 32,171 $ 33,825 $ 33,949 For the years ended December 31, 2015 , 2014 and 2013 , reinsurance recoveries, which reduced losses and loss adjustment expenses incurred, amounted to $ 4.1 billion, $ 2.6 billion and $ 3.3 billion, respectively. Long-Duration Reinsurance Long-duration reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are earned over the contract period in proportion to the protection provided. Amounts recoverable from reinsurers on long-duration contracts are estimated in a m anner consistent with the assumptions used for the underlying policy benefits and are presented as a component of Reinsurance assets. The following table presents premiums for our long-duration insurance and retirement services operations: Years Ended December 31, Life Insurance Companies Run-off insurance lines Total (in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Gross premiums $ 5,234 $ 4,059 $ 4,155 $ 6 $ 11 $ 9 $ 5,240 $ 4,070 $ 4,164 Ceded premiums (756) (661) (620) - - - (756) (661) (620) Net $ 4,478 $ 3,398 $ 3,535 $ 6 $ 11 $ 9 $ 4,484 $ 3,409 $ 3,544 Long-duration reinsurance recoveries, which reduced Policyholder benefits and losses incurred, were approximately $ 1.0 b illion, $ 731 million and $ 714 million, respectively, for the years ended December 31, 2015 , 2014 and 2013 . The following table presents long-duration insurance in-force ceded to other insurance companies: At December 31, (in millions) 2015 2014 2013 * Long-duration insurance in force ceded $ 177,025 $ 180,178 $ 122,012 * Excludes amounts related to held-for-sale entities . Long-duration insurance in- force assumed represented 0.04 percent of gross long-duration insurance in-force at December 31, 2015 , 0.04 percent at December 31, 2014 and 0.05 percent at December 31, 2013 , and premiums assumed by the Life Insurance Companies represented 0.1 percent, 0.5 percent and 0.3 percent of gross premiums for the years ended December 31, 2015 , 2014 and 2013 , respectively. The U.S. Life Insurance Companies utilize internal and third-party reinsurance relationships to manage insurance risks and to facilitate capital management strategies, which allows them to minimize the use of letters of credit and utilize capital more efficiently. Pools of highly-rated third-part y reinsurers are utilized to manage net amounts at risk in excess of retention limits. The U.S. Life Insurance Companies manage the capital impact on their statutory reserve requirements under the NAIC Model Regulation “Valuation of Life Insurance Policies ” (Regulation XXX) and NAIC Actuarial Guideline 38 (Guideline AXXX) through intercompany reinsurance transactions. Under GAAP, these intercompany reinsurance transactions are eliminated in consolidation. Under one arrangement, one of the U.S. Life Insura nce Companies obtains letters of credit to support statutory recognition of the ceded reinsurance. As of December 31, 2015, the U.S. Life Insurance Companies had two bilateral letters of credit totaling $ 450 million with AIG e ntities, which were issued on February 7, 2014 and expire on February 7, 2019, but will be automatically extended without amendment by one year on each anniversary of the issuance date, unless the issuer provides notice of non-renewal. See Note 18 for additional information on the use of affiliated reinsurance for Regulation XXX and Guideline AXXX reserves. Reinsurance Security Our third-party reinsurance arrangements do not relieve us from our direct obligations to our beneficiaries. Thus, a cr edit exposure exists with respect to both short-duration and long-duration reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. We hold substantial collateral as security under related re insurance agreements in the form of funds, securities, and/or letters of credit. A provision has been recorded for estimated unrecoverable reinsurance. We believe that no exposure to a single reinsurer represents an inappropriate concentration of credit r isk to AIG. Gross reinsurance assets with our three largest reinsurers aggregate to approximately $ 6.5 billion and $ 6.2 billion at December 31, 2015 and 2014 , respectiv ely, of which approximately $ 3.7 billion and $ 3.3 billion at December 31, 2015 and 2014 , respectively, was not secured by collateral. |
DEFERRED POLICY ACQUISITION COS
DEFERRED POLICY ACQUISITION COSTS | 12 Months Ended |
Dec. 31, 2015 | |
DEFERRED POLICY ACQUISITION COSTS | |
DEFERRED POLICY ACQUISITION COSTS | 8. DEFERRED POLICY ACQUISITION COSTS Deferred p olicy acquisition costs (DAC) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. S uch deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analy zed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. We also defer a portion of employe e total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force c ontract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates. Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned , generally 12 months . DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recov erability based on the profitability of the underlying insurance co ntracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impa irment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred , unamortized DAC and maintenance c osts. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income , the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge. Long-duration insurance contracts: Policy acquisition costs for participating life, traditional l ife and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is is sued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviatio n to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying amount of future policy benefit liabilities , net of DAC , and what the future policy benef it liabilities , net of DAC , would be when applying updated current assumptions. When we determine a loss recognition event has occurred, we first reduce any DAC related to that block of business through amortization of acquisition expense, and after DAC is depleted, we record additional liabilities through a charge to Policyholder benefits and losses incurred. Groupings for loss recognition testing are consistent with our manner of acquiring, servicing and measuring the profitability of the business and ap plied by product groupings. We perform separate loss recognition tests for traditional life products, payout annuities and long-term care products. Once loss recognition has been recorded for a block of business, the old assumption set is replaced and th e assumption set used for the loss recognition would then be subject to the lock-in principle. Investment-oriented contracts: Policy acquisition costs and policy issuance costs related to universal life and investment-type products ( collectively, investment - oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. Estimated gross profits include net in vestment income and spreads , ne t realized investment gains and losses, fees, surrender charges, expenses, and mortality gains and losses. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If estimated gross profits change signific antly, DAC is recalculated using the new assumptions , and a ny resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decreas e in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current peri od. Updating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. To estimate future estimated gross profits for variable annuity products , a long-term annual asset growth assum ption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” m ethodology whereby short-term asset growth above or below long-term annual rate assumptions impact the growth assumption applied to the five- year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to mainta in our long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption , as evidenced by growth assumptions in the five -year reversion to the mean period falling below a certain rate (floor) or above a certain rate (cap) for a sustain ed period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five -year reversion to the mean period as well as the long-term annual growth assumption applied to subsequent periods. Shadow DAC and Shadow Loss Recognition: DAC related to investment - oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed mat urity and equity securities available for sale on estimated gross profits, with related changes recognized through O ther comprehensive income (shadow DAC). The adjustment is made at each balance sheet date, as if the securities had been sold at their state d aggregate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the liabilities maintain a temporary net unrealized gain position at the balance sheet date, loss recognition testing assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognit ion tests is recognized as a reduction in accumulated other comprehensive income (shadow loss recognition). Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabilities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income. Internal Replace ments of Long-duration and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and re lated actuarial balances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances ar e charged or credited to income, and any new deferrable costs assoc iated with the replacement contract are deferred. Value of Business Acquired (VOBA ) is determined at the time of acquisition and is reported in the Consolidated Balance Sheet s with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of t he business in a manner similar to that for DAC based on the assumptions at purchase. For investment - oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity and equity securities available for sale in a manner similar to DAC . The following table presents a rollforward of DAC and VOBA: Years Ended December 31, (in millions) 2015 2014 2013 Non-Life Insurance Companies: Balance, beginning of year $ 2,551 $ 2,493 $ 2,342 Acquisition costs deferred 4,537 4,805 4,803 Amortization expense (4,313) (4,599) (4,481) Other (144) (148) (171) Balance, end of year $ 2,631 $ 2,551 $ 2,493 Life Insurance Companies: Balance, beginning of year $ 7,258 $ 6,920 $ 5,815 Acquisition costs deferred 1,288 1,114 1,034 Amortization expense (916) (727) (674) Change in net unrealized gains (losses) on securities 848 (360) 784 Decrease due to foreign exchange (34) (32) (39) Other 23 343 - Balance, end of year $ 8,467 $ 7,258 $ 6,920 Consolidation and eliminations 17 18 23 Total deferred policy acquisition costs * $ 11,115 $ 9,827 $ 9,436 Supplemental Information: VOBA amortization expense included in Life Insurance Companies DAC amortization 64 17 23 VOBA, end of year included in Life Insurance Companies DAC balance 453 510 373 * Net of reductions in DAC of $ 583 m i llion, $ 1.4 b illion, and $ 1.1 billion for Life Insurance Companies at December 31, 2015 , 2014 and 2013 , respectively , related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC). The percentage of the unamortized balance of VOBA at December 31, 2015 expected to be amortized in 2016 through 2020 by ye ar is: 8.4 percent, 7.6 percent, 7.1 percent, 6.9 percent and 6.5 percent, respectively, with 63.5 pe rcent being amortized after five years. These projections are based on current estimates for investment income and spreads, persistency, mortality and morbidity assumptions. DAC, VOBA and SIA for insurance -oriented and investment -oriented products are revi ewed for recoverability, which involves estimating the future profitability of current business. This review involves significant management judgment. If actual future profitability is substantially lower than estimated, AIG’s DAC, VOBA and SIA may be subj ect to an impairment charge and AIG’s results of operations could be significantly affected in future periods. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2015 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 9. VARIABLE INTEREST ENTITIES A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below. We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to co nsolidate 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 b eneficiary 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 bo th (1) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also con sidering 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 L oss The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Consolidated Balance Sheets: (in millions) Real Estate and Investment Entities (d) Securitization Vehicles Structured Investment Vehicle Affordable Housing Partnerships Other Total December 31, 2015 Assets: Bonds available for sale $ - $ 10,309 $ - $ - $ 15 $ 10,324 Other bond securities - 5,756 387 - 24 6,167 Mortgage and other loans receivable 1 1,960 - - 132 2,093 Other invested assets 489 477 - 2,608 24 3,598 Other (a) 29 1,349 94 293 159 1,924 Total assets (b)(e) $ 519 $ 19,851 $ 481 $ 2,901 $ 354 $ 24,106 Liabilities: Long-term debt $ - $ 1,025 $ 53 $ 1,513 $ 6 $ 2,597 Other (c) 34 236 1 214 71 556 Total liabilities (e) $ 34 $ 1,261 $ 54 $ 1,727 $ 77 $ 3,153 December 31, 2014 Assets: Bonds available for sale $ - $ 11,459 $ - $ - $ 35 $ 11,494 Other bond securities - 7,251 615 - 40 7,906 Mortgage and other loans receivable - 2,398 - - 162 2,560 Other invested assets 577 651 - 1,684 29 2,941 Other (a) 40 1,447 140 49 76 1,752 Total assets (b) $ 617 $ 23,206 $ 755 $ 1,733 $ 342 $ 26,653 Liabilities: Long-term debt $ 69 $ 1,370 $ 52 $ 199 $ 7 $ 1,697 Other (c) 32 276 - 101 37 446 Total liabilities $ 101 $ 1,646 $ 52 $ 300 $ 44 $ 2,143 (a) Comprised primarily of Short-term investments, Premiums and other receivables or Other assets at December 31, 2015 and 2014 . ( b ) The assets of each VIE can be used only to settle specific obligations of that VIE. ( c ) Comprised primarily of Other liabilities and Derivative liabilities, at fair value, at both December 31, 2015 and 2014 . ( d ) At December 31 , 2015 and 2014 , off-balance sheet exposure primarily consisting of commitment s to real estate and investment entities was $ 131.2 million and $ 56.4 million, respectively. (e) Includes the effect of consolidating previously unconsolidated partnerships. 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) oth er 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 th e 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 (a) Sheet Total December 31, 2015 Real estate and investment entities $ 21,951 $ 3,072 $ 398 $ 3,470 Affordable housing partnerships 5,255 774 - 774 Other 1,110 215 1,000 1,215 Total $ 28,316 $ 4,061 $ 1,398 $ 5,459 December 31, 2014 Real estate and investment entities $ 19,949 $ 2,785 $ 454 $ 3,239 Affordable housing partnerships 7,911 425 - 425 Other (c) 1,959 304 992 (b) 1,296 Total $ 29,819 $ 3,514 $ 1,446 $ 4,960 (a) At December 31, 2015 and 2014 , $ 3.8 billion and $ 3.2 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (b) These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. (c) The On-Balance and Off-Balance sheet amounts have been revised from $32 million and $0 to $304 million and $992 million, respectively, to correct the Maximum Exposure to Loss as of December 31, 2014, which are not considered material to previously issued financial statements. Real Estate and Investment Entities T hrough our insurance operations and AIG Global Real Estate, we are an investor in various real estate investme nt entities , some of which are VIE s . These investments are typically with unaffiliated third - party developers via a partnership or limited liability company structure. The VIEs ’ activities consist of the development or redevelopment of commercial , industri al and residential real estate. Our involvement varies from being a passive equity investor or finance provider to actively managing the activities of the VIE s . Our insurance operations participate as passive investors in the equity issued by certain third - party - managed hedge and private equity funds that are VIEs . Our insurance operations typically are not involved in the design or establishment of these VIEs, nor do they actively participate in the management of the VIEs. Securitization Vehicles W e created certain VIEs that hold investments, primarily in investment-grade debt securities and loans , and issued beneficial interests in these investments. The majority of these beneficial interests are owned by our insurance operations and we maintain t he power to direct the activities of the VIEs that most significantly impact their economic performance and bear the obligation to absorb losses or receive benefits from the entities that could potentially be significant to the entities. Accordingly, we c onsolidate these entities and those beneficial interests issued to third-parties are reported as Long-term debt. Structured Investment Vehicle We sponsor Nightingale Finance Ltd . , a structured investment vehicle (SIV), whic h is a VIE. Nightingale Finance Ltd. primarily invests in variable rate, investment-grade debt securities, the majority of which are ABS. We have no equity interest in the SIV, but we maintain the power to direct the activities of the SIV that most significan tly impact the entity’s economic performance and bear the obligation to absorb economic losses that could potentially be significant to the SIV. We are the primary beneficiary and consolidate the SIV. A ffordable Housing Partnerships SunAmerica Affordable Housing Partners, Inc. (SAAHP) organize d and invest ed in limited partnerships that develop and operate affordable housing qualifying for federal , state, and historic tax credits, in addition to a few market rate properties across the United States. The op erating partnerships are VIEs, whose debt is generally non-recourse in nature, and the general partners of which are mostly unaffiliated third - party developers. We account for our investments in operating partnerships using the equity method of accounting, unless they ar e required to be consolidated. We consolidate an operating partnership if the general partner is an affiliated entity or we otherwise have the power to direct activities that most significantly impact the entities’ economic performance . The pre- tax income of SAAHP is reported as a component of the Consumer Insurance segment. RMBS, CMBS, Other ABS and CDOs Primarily through our insurance operations , we are a passive investor in RMBS, CMBS, other ABS and CDOs , the majority of which are i ssued by domestic special purpose entities. We generally do not sponsor or transfer assets to, or act as the servicer to these asset - backed structures, and were not involved in the design of these entities. Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities. Based on the nature of our investments and our passive involvement in these types of structures, we have determined that we are not the prim ary beneficiary of these entities. We have not included these entities in the above table s ; however, the fair values of our investments in these structures are reported in Notes 4 and 5 herein. |
DERIVATIVES AND HEDGE ACCOUNTIN
DERIVATIVES AND HEDGE ACCOUNTING | 12 Months Ended |
Dec. 31, 2015 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
DERIVATIVES AND HEDGE ACCOUNTING | 10. DERIVATIVES AND HEDGE ACCOUNTING We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium - and long -term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (prin cipally foreign exchange swap s and forwards ) 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 mitigat e 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 as a part of our investmen t operations, which may include, among other things, CDSs and purchases of investments with embedded derivatives, such as equity - linked notes and convertible bonds. Interest rate, currency, equity and commodity swa ps, credit contracts , swaptions , options a nd forward transactions are accounted for as derivatives , recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. Aggregate asset or liability positions are netted on the Consolidated Balance Sheet s only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty . Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangemen ts is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset. Effective July 1, 2015, we reclassified derivatives, with the exception of embedded derivatives, in the Consolidated Balance Sheets from Derivative assets, at fair value and Derivative liabilities, at fair value to Other assets and Other liabilities , respectively. This change had no effect on the measurement of these derivatives, which continue to be measured at fair value. Embedded derivatives continue to be generally presented with the host contract in the Consolidated Balance Sheets . A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted for according to the accounting guidance applicable f or that instrument. See Notes 4 and 13 herein for additional information on embedded derivatives. The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Consolidated Balance Sheets : December 31, 2015 December 31, 2014 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Notional Fair Notional Fair Notional Fair Notional Fair (in millions) Amount Value Amount Value Amount Value Amount Value Derivatives designated as hedging instruments: (a) Interest rate contracts $ 301 $ 1 $ 725 $ 2 $ 155 $ - $ 25 $ 2 Foreign exchange contracts 2,903 207 914 56 611 25 1,794 239 Equity contracts - - 121 23 7 1 104 13 Derivatives not designated as hedging instruments: (a) Interest rate contracts 45,846 3,161 65,733 2,197 65,070 3,743 45,104 3,131 Foreign exchange contracts 9,472 559 8,900 1,148 13,667 815 8,516 1,251 Equity contracts 6,656 177 5,028 45 7,565 206 3,049 90 Commodity contracts - - - - 15 - 11 6 Credit contracts (b) 4 3 1,289 508 5 4 5,288 982 Other contracts (c) 37,586 23 203 69 36,155 31 538 90 Total derivatives, gross $ 102,768 $ 4,131 $ 82,913 $ 4,048 $ 123,250 $ 4,825 $ 64,429 $ 5,804 Counterparty netting (d) (1,268) (1,268) (2,102) (2,102) Cash collateral (e) (1,554) (760) (1,119) (1,429) Total derivatives on consolidated balance sheets (f) $ 1,309 $ 2,020 $ 1,604 $ 2,273 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b ) As of December 31, 2015 and 2014 , included super senior multi-sector CDOs with a net notional amount of $ 1.1 billion and $ 2.6 billion (fair value liability of $ 483 million and $ 947 million), respectively. The expected weighted average maturity as of December 31, 2015 is six years. Because of long-term maturities of the CDSs in the 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 e xposure to loss on the portfolio. As of December 31, 2015 , there were no super senior corporate debt/CLOs remaining. As of December 31, 2014 , included super senior corporate debt/CLOs with a net notional amount of $ 2.5 billion (fair value liability of $ 7 million). (c) Consists primarily of stable value wraps and contracts with multiple underlying exposures. (d) Represents netting of derivative exposures covered by a qualifying master netti ng agreement. (e) Represents cash collateral posted and received that is eligible for netting. (f) Freestanding derivatives only, excludes Embedded derivatives. Derivative instrument assets and liabilities are recorded in Other Assets and Liabilities, resp ectively. Fair value of assets related to bifurcated Embedded derivatives was zero at both December 31, 2015 and December 31, 2014. Fair value of liabilities related to bifurcated Embedded derivatives was $ 2.3 billion and $ 1.6 billion, respectively, at December 31, 2015 and December 31, 2014. A bifurcated Embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. Embedded derivatives are primarily related to guaran tee features in variable annuity products, which include equity and interest rate components. Collateral We engage in derivative transactions that are not subject to a clearing requirement directly with unaffiliated third parties, in most cases, under International Swaps and Derivatives Association, Inc. (ISDA) Master Agreements. Many of the ISDA Master Agreements also include Credit Support Annex (CSA) provisions, which provide for collateral postings that may vary at various ratings and threshold levels. We attempt to reduce our risk with certain counterparties by entering into agreements th at enable collateral to be obtained from a counterparty on an upfront or contingent basis. We minimize the risk that counterparties might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and generally requiring additional collateral to be posted upon the occurrence of certain events or circumstances. In addition, certain derivative transactions have provisions that require collateral to be posted upon a downgrade of our long -term debt ratings or give the counterparty the right to terminate the transaction. In the case of some of the derivative transactions, upon a downgrade of our long -term debt ratings, as an alternative to posting collateral and subject to certain conditions, we may assign t he 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 t he 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. Colla teral posted by us to third parties for derivative transactions was $ 3.0 billion and $ 3.3 billion at December 31, 2015 and 2014 , respectively. In the case of collateral posted under der ivative 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 $ 1.6 b illion and $ 1.3 billion at December 31, 2015 and 2014 , respectively. We generally can repledge or resell collateral. Offsetting We have elected to present all derivative receivables and derivative payables, and the related cash c ollateral received and paid, on a net basis on our Consolidated Balance Sheets when a legally enforceable ISDA Master Agreement exists between us and our derivative counterparty. An ISDA Master Agreement is an agreement governing multiple derivative transa ctions 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 . H edge Accounting We designated certain derivatives entered into with third parties as fair value hedges of available for sale investment securities held by our insurance subsidiaries. The fair value hedges include foreign currency forwards and cross currency swaps designated as hedges of the change in fair value of foreign currency denominated available for sale securities attributable to changes in foreign exchange rates. We also designated certain interest rate swaps entered into with third parties as fair value hedges of fi xed rate GICs attributable to changes in benchmark interest rates . We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non- U.S. dollar functional currency foreign subsidiaries. For net investment hedge relationships where issued debt is used as a hedging instrument, we assess the hedge effectiveness and measure the amount of ineffectiveness based on changes in spot rates. For net investment hedge relationships that use derivatives as hedging instruments, we assess hedge effectiveness and measure hedge ineffectiveness using changes in forward rates. For the years ended December 31, 2015 , 2014 , and 2013 we recognized gain s of $ 90 million and $ 156 million and a loss of $ 38 million, respectively, included in Change in foreign currency translation adjustment in Other comprehensive income related to the net investment hedge relationships. A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges. The following table presents the gain (loss) recognized in earnings on our derivative instruments in fair value hedging relationships in the Consolidated Statements of Income: Gains/(Losses) Recognized in Earnings for: Including Gains/(Losses) Attributable to: Hedging Hedged Hedge Excluded (in millions) Derivatives (a) Items Ineffectiveness Components Other (b) Year ended December 31, 2015 Interest rate contracts : Realized capital gains/(losses) $ - $ 1 $ 1 $ - $ - Interest credited to policyholder account balances - - - - - Other income - 9 - - 9 Gain/(Loss) on extinguishment of debt - 14 - - 14 Foreign exchange contracts : Realized capital gains/(losses) 202 (167) - 32 3 Interest credited to policyholder account balances - (1) - - (1) Other income - 17 - - 17 Gain/(Loss) on extinguishment of debt - 17 - - 17 Equity contracts : Realized capital gains/(losses) (45) 45 - - - Year ended December 31, 2014 Interest rate contracts : Realized capital gains/(losses) $ 1 $ (2) $ - $ - $ (1) Interest credited to policyholder account balances - (1) - - (1) Other income - 43 - - 43 Gain/(Loss) on extinguishment of debt - 164 - - 164 Foreign exchange contracts : Realized capital gains/(losses) (129) 147 - 8 10 Interest credited to policyholder account balances - (3) - - (3) Other income - 23 - - 23 Gain/(Loss) on extinguishment of debt - 2 - - 2 Equity contracts : Realized capital gains/(losses) (23) 22 - (1) - Year ended December 31, 2013 Interest rate contracts : Realized capital gains/(losses) $ (5) $ 5 $ - $ - $ - Interest credited to policyholder account balances - (2) - - (2) Other income - 99 - - 99 Foreign exchange contracts : Realized capital gains/(losses) (187) 204 - 17 - (a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged item . (b) Represents accretion/amortization of opening fair value of the hedged item at inception of hedge relationship, amortization of basis adjustment on hedged item following the discontinuation of hedge accounting, and the release of debt basis adjustment following the repurchase of issued debt that was part of previously-discontinued fair value h edge relationship. Derivatives Not Designated as Hedging Instruments The following table presents the effect of derivative instruments not designated as hedging instruments in the Consolidated Statements of Income: Gains (Losses) Years Ended December 31, Recognized in Earnings (in millions) 2015 2014 2013 By Derivative Type: Interest rate contracts $ 339 $ 851 $ (259) Foreign exchange contracts 416 309 41 Equity contracts (182) (274) (507) Commodity contracts (1) (1) (4) Credit contracts 186 263 567 Other contracts 69 192 85 Embedded derivatives 49 (841) 1,099 Total $ 876 $ 499 $ 1,022 By Classification: Policy fees $ 78 $ - $ - Net investment income 26 102 28 Net realized capital gains (losses) 365 (219) 257 Other income 401 599 750 Policyholder benefits and claims incurred 6 17 (13) Total $ 876 $ 499 $ 1,022 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 December 31, 2015 and 2014 , was approximately $ 2.0 billion and $ 2.5 billion, respectively. The aggregate fair value of assets posted as collateral under these contracts at December 31, 2015 and 2014 , was $ 2.1 billion and $ 2.7 billion, respectively . We estimate that at December 31, 2015 , 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 wo uld result in approximately $ 44 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 $ 95 million in additional collateral postings and t ermination 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 December 31, 2015 . Factors c onsidered 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 t hat 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 payment s 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 Sheet s . The fair value s of these hybrid securities were $ 5.7 billion and $ 6.1 billion at December 31, 2015 and 2014 , respectively . These securities ha ve par amounts of $ 11.2 billion and $ 12.3 billion at December 31, 2015 and 2014 , respectively, and have remaining sta ted maturity dates tha t extend to 2055. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill Disclosure | |
GOODWILL | 11. GOODWILL Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment annually or more frequently if circumstances indicate an impairment may have occurred. We assess goodwill for impairment at one level below our reportable segments. At December 31, 2015, our principal reporting units with goodwill are Commercial Insurance - Property Casualty, Consumer Insurance - Personal Insurance, and Consumer Insurance - Life. When a business is transferred from one reporting unit to another, as occurred with the transfer of a portion of the Consumer Insurance - Personal Insura nce to Consumer Insurance – Life, as part of the 2014 segment changes, goodwill at the original reporting unit is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. The impai rment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount . If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the impairment assessment in volves a two-step process in which a quantitative assessment for potential impairment is performed. If the qualitative test is not performed or if the test indicates a potential impairment is present, we estimate the fair value of each reporting unit and compare the estimated fair value with the carrying amount of the reporting unit, including allocated goodwill. The estimate of a reporting unit’s fair value involves management judgment and is based on one or a combination of approaches including discounte d expected future cash flows, market - based earnings multiples of the unit’s peer companies, external appraisals or, in the case of reporting units being considered for sale, third -party indications of fair value, if available. We consider one or more of th ese estimates when determining the fair value of a reporting unit to be used in the impairment test. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not impaired. If the carrying value of a reporting unit exceeds it s estimated fair value, goodwill associated with that reporting unit potentially is impaired. The amount of impairment, if any, is measured as the excess of the carrying value of the goodwill over the implied fair value of the goodwill. The implied fair v alue of the goodwill is measured as the excess of the fair value of the reporting unit over the amounts that would be assigned to the reporting unit’s assets and liabilities in a hypothetical business combination. An impairment charge is recognized in ear nings to the extent of the excess of carrying value over fair value. Goodwill was not impaired at December 31, 2015 based on the results of the goodwill impairment test. The following table presents the changes in goodwill by reportable segmen t: (in millions) Commercial Consumer Other Total Balance at January 1, 2013: Goodwill - gross $ 2,444 $ 2,502 $ - $ 4,946 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill 1,178 291 - 1,469 Increase (decrease) due to: Other 6 - - 6 Balance at December 31, 2013: Goodwill - gross 2,450 2,502 - 4,952 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill 1,184 291 - 1,475 Increase (decrease) due to: Acquisition - 28 - 28 Other (49) - - (49) Balance at December 31, 2014: Goodwill - gross 2,401 2,530 - 4,931 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill 1,135 319 - 1,454 Increase (decrease) due to: Acquisition 96 82 30 208 Other (50) 1 - (49) Balance at December 31, 2015: Goodwill - gross 2,447 2,613 30 5,090 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill $ 1,181 $ 402 $ 30 $ 1,613 |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | |
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | 12. INSURANCE LIABILITIES Liability for Unpaid Losses and Loss Adjustment Expense s The liability for unpaid los s es and los s adjustment expense s represents the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and claim adjustments expenses, less applicable discount for future investment income. We continually review and update the methods used to determine loss reserve estimates and to establish the resulting reserves. Any adjustments resulting from this review are reflected currently in pre-tax income. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be re cognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as f avorable development. Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $ 12.6 billion and $ 12.4 billion at D ecember 31, 2015 and 2014 , respectively. These recoverable amounts are related to certain policies with high deductibles (in excess of high dollar amounts retained by the insured through self-insured retentions or deductibles each referred to generically as “deductibles”), primarily for U.S. commercial casualty business. With respect to the deductible portion of the claim, the Non-life Insurance Companies manage and pay the entire claim on behalf of the insured and are reimbursed by the insured for the deductible portion of the claim. At December 31, 2015 and 2014 , we held collateral of approximately $ 9.6 billion and $ 9.4 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and trust agreements. The following table presents the reconciliation of activity in the Liability for unpaid losses and loss adjustment expenses: Years Ended December 31, (in millions) 2015 2014 2013 Liability for unpaid losses and loss adjustment expenses, beginning of year $ 77,260 $ 81,547 $ 87,991 Reinsurance recoverable (15,648) (17,231) (19,209) Net liability for unpaid losses and loss adjustment expenses, beginning of year 61,612 64,316 68,782 Foreign exchange effect (1,429) (1,061) (617) Dispositions - - (79) Changes in net loss reserves due to retroactive asbestos reinsurance transaction 20 141 22 Total 60,203 63,396 68,108 Losses and loss adjustment expenses incurred : Current year 20,308 21,279 22,171 Prior years, excluding discount 4,119 703 557 Prior years, discount charge (benefit) (71) 478 (309) Total 24,356 22,460 22,419 Losses and loss adjustment expenses paid * : Current year 5,751 6,358 7,431 Prior years 18,205 17,886 18,780 Total 23,956 24,244 26,211 Balance, end of year: Net liability for unpaid losses and loss adjustment expenses 60,603 61,612 64,316 Reinsurance recoverable 14,339 15,648 17,231 Total $ 74,942 $ 77,260 $ 81,547 * Includes amounts related to dispositions through the date of disp osition. The net adverse development includes loss-sensitive business, for which we recognized (return) additional premiums on loss sensitive business of $ (49) million, $ 105 million and $ 89 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Each quarter, we conduct a series of actuarial reviews to reassess the reasonableness of our carried reserves. These reviews are conducted for each class of business, and consist of hundreds of individual analyses. We consider data and information arising since the prior review and adjust, as appropriate, the methods and assumptions used in the latest actuarial reviews. Our analyses produce a range of indicati ons from various methods, from which we select our best estimate. For 2015, the adverse development of prior year losses is primarily a result of the following: Excess Casualty – U.S. & Canada experienced $1.5 billion of adverse development largely driven by worse than expected loss emergence reported in 2015, reflecting worsening trends in the number and nature of high severity losses in both general liability and umbrella auto liability, primarily for U.S. risks. We reacted to the adverse emergence by up dating our assumptions about loss severity, loss development patterns, and expected loss ratios for the most recent accident years. Primary Casualty – U.S. & Canada experienced $1. 1 billion of adverse development. $540 million related to workers’ compensa tion policies with risk sharing features to reflect estimated increased losses and reduced expectations of future recoveries from our insureds through these risk-sharing features. Risk-sharing features, include high deductibles, self-insured retentions or retrospective rating features. We also experienced adverse development of $146 million in primary general liability due to adverse emergence of claims in the construction sector; $144 million in primary auto liability due to observed increases in both the frequency and severity of claims; $100 million for future claim handling expenses related to existing loss reserves, and $100 million in workers’ compensation for coverages sold to government contractors in U.S. and non U.S. military installations as a re sult of adverse loss eme rgence in recent accident years. Financial Lines – U.S. & Canada experienced $579 million of adverse development related to development of several reported claims above expectations, in D&O and professional liability principally rel ated to accident years 2006 through 2010. Run-off insurance lines experienced $727 million of adverse development largely driven by $281 million in asbestos and environmental for accident years 1986 & prior and $272 million of other run-off. Reasons for th is development are as follows: Asbestos coverage has been excluded from AIG policies commencing in 1985. Most of AIG’s asbestos reserves are ceded to National Indemnity Company (NICO) under a retrospective reinsurance arrangement entered into in 2011. Howe ver, certain asbestos-related exposures are not subject to the NICO agreement, including asbestos exposures for which we have negotiated fixed payment schedules, and third party reinsurance assumed policies. The reported claim activity on the assumed claim s has increased in the last year. As a result, we modified certain of our loss-reserve-related assumptions to better reflect this AIG-specific experience as well as consideration of recent industry-wide trends regarding expanding coverage theories for liab ility. As a result, we increased our 2015 reserves by $164 million and by $117 million for Asbestos and Environmental, respectively. Run-off lines experienced $272 million of adverse development based on updated assumptions about future loss development. In 2014, the increase in prior years’ loss reserves of $703 million included $550 million, $124 million, $182 million, $109 million, and $(102) million related to Primary Casualty – U.S. & Canada, Asbestos and environmental (1986 and prior), Financial Line s – International, Healthcare, and Natural Catastrophes – U.S. & Canada, respectively. In 2013, the increase in prior years’ loss reserves of $557 million includes $498 million, $238 million, $(144) million, and $(54) million related to Primary Casualty – U.S. & Canada, Asbestos and environmental (1986 and prior), Excess Casualty – U.S. & Canada , and Healthcare, respectively. Asbestos and Environmental Run-off Reserves At December 31, 2015 and 2014, our net liability for unpaid loss and loss adjustment expenses included $722 million and $573 million, respectively, for asbestos and environmental-related claims (net of reinsurance, including retroactive reinsurance). We c ede the bulk of AIG Property Casualty’s net domestic asbestos liabilities under a 2011 retroactive reinsurance agreement with National Indemnity Company (NICO) with an aggregate limit of $3.5 billion. Reinsurance recoverables related to this agreement are $1.8 billion and $1.5 billion, respectively, at December 31, 2015 and 2014, respectively. Under retroactive reinsurance accounting, contractual gains are deferred and amortized into income over the settlement period of the underlying reinsured claims. Dur ing 2015, 2014 and 2013, we recognized approximately $233 million, $0 and $72 million, respectively, of additional recoveries under the NICO agreement for which the income statement benefit was deferred. The expense related to this increase in the deferred gain liability is reported in Other income/expense and is therefore excluded from net losses incurred. Reserves for asbestos and environmental claims cannot be estimated using conventional reserving techniques such as those that rely on historical acciden t year loss development factors. The methods used to determine asbestos and environmental loss estimates and to establish the resulting reserves are continually reviewed and updated by management. Various factors contribute to the complexity and difficulty in determining the future development of claims such as court resolutions and judicial interpretations which broaden the intent of the policies and scope of coverage. We primarily base our determination of these reserves on a combination of ground-up an d top-down analyses of historical claims and available insurance coverages. We consider a number of factors and recent experience, in addition to the results of both external and internal analyses, to estimate asbestos and environmental loss reserves. Di scounting of Reserves At December 31, 2015 , the liability for unpaid losses and loss adjustment expenses reflects a net loss reserve discount of $ 3.1 billion, including tabular and non-tabular calculations based upon the following assumptions: Certain asbestos business that was written by Non-Life Insurance Companies is discounted, when allowed by the regulator and when payments are fixed and determinable, based on th e investment yields of the companies and the payout pattern for this business. The tabular workers’ compensation discount is calculated based on a 3.5 percent interest rate and the mortality table used in the 2007 U.S. Life Table. The non-tabular workers’ compensation discount is calculated separately for companies domiciled in New York and Pennsylvania, and follows the statutory regulations (prescribed or permitted) for each state. For New York companies, the discount is based on a five percent interest rate and the c ompanies’ own payout patterns. O ur Delaware and Pennsylvania regulator s approved use of a consistent discount rate (U.S. Treasury rate plus a liquidity premium) to all of our workers’ compensation reserves in compani es domiciled in those states , as well as our use of updated payout patterns specific to our primary and excess workers compensation portfolios. In the fourth quarter of 2015 , our Pennsylvania and Delaware regulators approved an updated discoun t rate that we applied to our workers’ compensation loss reserves for the legal entities domiciled in those states. The discount consists of the following: $ 853 million of tabular dis count for workers’ compensation, $ 2.3 billion of non-tabular discount for workers’ compensa tion in the domestic operations ; and $ 7 million — non -tabular discount for asbestos Future Policy Benefits Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant has agreed to settle a general insurance claim in exchange for fixed payments over a fixed determinable period of time with a life continge ncy feature. Future policy benefits also include certain guaranteed benefits of variable annuity products that are not considered embedded derivatives, primarily guaranteed minimum death benefits. See Note 13 for additional information on guaranteed mini mum death benefits. The liability for long-duration future policy benefits has been established including assumptions for interest rates which vary by year of issuance and product, and range from approximately 3 percent to 14 percent. Mortality and surren der rate assumptions are generally based on actual experience when the liability is established. Policyholder Contract Deposits The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited at rates ranging from 0.2 percent to 9.0 percent at December 31, 2015 , less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues, b ecause they are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenues. In addition to liabilities for universal life, fix ed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, p olicyholder contract deposits also include our liability for (a) certain guarantee d benefits and indexed features accounted for as em bedded derivatives at fair value, (b) annuities issued in a structured settlement arrangement with no life contingency and (c) certain contracts we have elected to account for at fair value. See Note 13 herein for additional information on guaranteed bene fits accounted for as embedded derivatives. For universal life policies with secondary guarantees, we recognize certain liabilities in addition to policyholder account balances. For universal life policies with secondary guarantees, as well as other unive rsal life policies for which profits followed by losses are expected at contract inception, a liability is recognized based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contrac t, divided by (b) the present value of total expected assessments over the life of the contract. For universal life policies without secondary guarantees, for which profits followed by losses are first expected after contract inception, we establish a lia bility, in addition to policyholder account balances, so that expected future losses are recognized in proportion to the emergence of profits in the earlier (profitable) years. Universal life account balances as well as these additional liabilities relate d to universal life products are reported within policyholder contract deposits in the Consolidated Balance Sheet. Under a funding agreement-backed notes issuance program, an unaffiliated, non-consolidated statutory trust issues medium-term notes to invest ors, which are secured by GICs issued to the trust by one of our Life Insurance Companies through our Instituti onal Markets operating segment. The following table presents Policyholder contract deposits of the U.S. Life Insurance Companies by product line: At December 31, (in millions) 2015 2014 Policyholder contract deposits: Fixed Annuities $ 52,397 $ 53,370 Group Retirement 37,865 37,693 Life 14,028 13,717 Retirement Income Solutions 13,927 10,040 Institutional Markets 9,371 9,793 Total Policyholder contract deposits $ 127,588 $ 124,613 Other Policyholder Funds Other policyholder funds include unearned revenue reserves (URR ) . URR consist of front - end loads on investment-oriented contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. URR for investment-oriented contracts are generally deferred and amortized, with interest, in relation to the incidence of estimated gross profits (EGPs) to be realized over the estimated lives of the contracts and are subject to the same adjustments due to changes in the assumptions underlying EGPs as DAC. Amortization of URR is recorded in Policy fees. Other policyholde r funds also include provisions for future dividends to participating policyholders, accrued in accordance with all applicable regulatory or contractual provisions. Participating life business represented approximately 2.2 percent o f gross insurance in force at December 31, 2015 and 2.4 percent of gross domestic p remiums and other considerations in 2015 . The amount of annual dividends to be paid is approved locally by the boards of directors of the Life Insurance C ompanies. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations. The portions of current and prior net income and of current unrealized appreciation of investments that can inure to our b enefit are restricted in some cases by the insurance contracts and by the local insurance regulations of the jurisdictions in which the policies are in force. Certain products are subject to experience adjustments. These include group life and group medica l products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as reve nue with the unearned portions of the p remiums recorded as liabilities in Other policyholder funds. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guid ance. |
VARIABLE LIFE AND ANNUITY CONTR
VARIABLE LIFE AND ANNUITY CONTRACTS | 12 Months Ended |
Dec. 31, 2015 | |
VARIABLE LIFE AND ANNUITY CONTRACTS | |
VARIABLE LIFE AND ANNUITY CONTRACTS | 13. VARIABLE LIFE AND ANNUITY CONTRACTS We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder and the separate account meets additional accounting criteria to qualify for separate account treatment. The assets supporting the variable portion of variable annuity and variable universal life contracts that qualify for separate account treatment are carried at fair value and reported as S eparate account assets , with an equivalent summary total reported as S eparate account liabilities. Policy values for variable products and investment contracts are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units in the separate accounts, plus any liabilities for guaranteed minimum death benefits or guaranteed minimum withdrawal benefits included in Future policy benefits or Policyholder contract deposits, respectively. Amounts assessed against the contract holders for mortality, administrative and other servic es are included in revenue. Net investment income, net investment gains and losses, changes in fair value of assets, and policyholder account deposits and withdrawals related to separate accounts are excluded from the Consolidated Statements of Income , Com prehensive Income (Loss) and Cash Flows. Variable annuity contracts may include certain contractually guaranteed benefits to the contract holder. These guaranteed features include guaranteed minimum death benefits (GMDB) that are payable in the event of d eath, and living benefits that are payable in the event of annuitization , or, in other instances, at specified dates during the accumulation period. Living benefits include guaranteed minimum income benefits (GMIB), guaranteed minimum withdrawal benefits ( GMWB) and guaranteed minimum accumulation benefits (GMAB). A variable annuity contract may include more than one type of guaranteed benefit feature; for example, it may have both a GMDB and a GMWB. However, a policyholder can only receive payout from one guaranteed feature on a contract containing a death benefit and a living benefit, i.e. the features are mutually exclusive, so the exposure to the guaranteed amount for each feature is independent of the exposure from other features (except a surviving spo use who has a rider to potentially collect both a GMDB upon their spouse’s death and a GMWB during their lifetime) . A policyholder cannot purchase more than one living benefit on one contract. The net amount at risk for each feature is calculated irrespec tive of the existence of other features; as a result, the net amount at risk for each feature is not additive to that of other features. Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: At December 31, (in millions) 2015 2014 Equity funds $ 39,284 $ 40,811 Bond funds 7,261 7,566 Balanced funds 24,849 22,354 Money market funds 826 797 Total $ 72,220 $ 71,528 GMDB and GMIB Depending on the contract, the GMDB feature may provide a death benefit of either (a) total deposits made to the contract less any partial withdrawals plus a minimum return (and in rare instances, no minimum return) or (b) the highest contract value attained, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary. GMIB guarantees a minimum level of periodic income payments upon annuitization . GMDB is our most widely offered benefit . O ur account values subject to guarantees also include GMIB to a lesser extent, which is no longer offered. The liabilities for GMDB and GMIB, which are recorded in Future policy benefits, represent the expe cted value of benefits in excess of the projected account value, with the excess recognized ratably over the accumulation period based on total expected assessments, through Policyholder benefits and los s es incurred. The net amount at risk for GMDB repres ents the amount of benefits in excess of account value if death claims were filed on all contracts on the balance sheet date. The following table presents details concerning our GMDB exposures , by benefit type : At December 31, 2015 2014 Net Deposits Net Deposits Plus a Minimum Highest Contract Plus a Minimum Highest Contract (dollars in billions) Return Value Attained Return Value Attained Account value $ 87 $ 16 $ 85 $ 17 Net amount at risk 2 1 1 1 Average attained age of contract holders by product 63 69 62 68 Range of guaranteed minimum return rates 0-4.5% 0%-5% The following summarizes GMDB and GMIB liabilities related to variable annuity contracts, excluding assumed reinsurance: Years Ended December 31, (in millions) 2015 2014 2013 Balance, beginning of year $ 420 $ 394 $ 413 Reserve increase 127 93 32 Benefits paid (56) (67) (51) Balance, end of year $ 491 $ 420 $ 394 Assumptions used to determine the GMDB and GMIB liability include interest rates, which vary by year of issuance and products; mortality rates, which are based upon actual experience modified to allow for variations in policy form; lapse rates, which are based upon actual experience modified to allow for variations in policy form; i nvestment returns, using assumptions from a randomly generated model; and asset growth assumptions, which include a reversion to the mean methodology, similar to that applied fo r DAC. We regularly evaluate estimates used to determine the GMDB liability and adjust the additional liability balance, with a related charge or credit to Policyholder benefits and losses incurred, if actual experience or other evidence suggests that ea rlier assumptions should be revised . GMWB and GMAB Certain of our variable annuity contracts contain optional GMWB benefits and , to a lesser extent, GMA B benefits , which are not currently offered . With a GMWB, t he contract holder can monetize the excess of the guaranteed amount over the account value of the contract only through a series of withdrawals that do not exceed a specific percentage per year of the guaranteed amount. If, after the series of withdrawals, the account value is exhausted, the contr act holder will receive a series of annuity payments equal to the remaining guaranteed amount, and, for lifetime GMWB products, the annuity payments continue as long as the covered person(s) is living. With a GMA B benefit, the contract holder can monetize the excess of the guaranteed amount over the account value of the contract , provided the contract holder persist s until the maturity date . The liabilities for GMWB and GMA B , which are recorded in Policyholder contract deposits, are accounted for as embedde d derivatives measured at fair value, with changes in the fair value of the liabilities recorded in Other net realized capital gains (losses). The fair value of these embe dded derivatives was a net liability of $ 1.2 billion and $ 957 million at December 31, 2015 and 2014 , respectively . See Note 4 for discussion of the fair value measurement of guaranteed benefits that are accounted for as embedded derivatives. We had account values subject to GMWB and GMAB that totaled $ 38 billion and $ 35 billion at December 31, 2015 and 2014 , respect ively. The net amount at risk for GMWB represents the present value of minimum guaranteed withdrawal payments, in accordance with contract terms, in excess of account value, assuming no lapses. The net amount at risk for GMAB represents the present value o f minimum guaranteed account value in excess of the current account balance, assuming no lapses. In aggregate, t he net amount at risk related to the GMWB and GMAB guarantees was $ 640 million and $ 414 million at December 31, 2015 and 2014 , respectively. We use derivative instruments and other financial instruments to mitigate a portion of our exposure that arises from GMWB and GMAB benefits. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2015 | |
DEBT | |
DEBT | 14. DEBT Our long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts , hedge accounting valuation adjustments and fair value adjustments, when applicable. The interest rates presented in the following table reflect the range of contractual rates in effect at December 31, 2015 , including fixed and variable rate issuances. The following t able lists our total debt outstanding at December 31, 2015 and 2014 . The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2015 , including fixed and variable-rates: Balance at Balance at At December 31, 2015 Range of Maturity December 31, December 31, (in millions) Interest Rate(s) Date(s) 2015 2014 Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable 2.30% - 8.13% 2016 - 2097 $ 17,136 $ 15,570 Subordinated debt 2.38% 2015 - 250 Junior subordinated debt 4.88% - 8.63% 2037 - 2058 1,337 2,466 AIG Japan Holdings Kabushiki Kaisha 0.44% - 1.25% 2016 - 2019 106 - AIGLH notes and bonds payable 6.63% - 7.50% 2025 - 2029 284 284 AIGLH junior subordinated debt 7.57% - 8.50% 2030 - 2046 422 536 Total AIG general borrowings 19,285 19,106 AIG borrowings supported by assets: (a) MIP notes payable 2.28% - 8.59% 2016 - 2018 1,372 2,870 Series AIGFP matched notes and bonds payable 0.16% - 7.50% 2017 - 2047 34 34 GIAs, at fair value 0.02% - 7.62% 2016 - 2047 3,276 4,648 Notes and bonds payable, at fair value 0.12% - 10.37% 2016 - 2047 394 818 Total AIG borrowings supported by assets 5,076 8,370 Total debt issued or guaranteed by AIG 24,361 27,476 Debt not guaranteed by AIG: Other subsidiaries notes, bonds, loans and mortgages payable 0.06% 2017 2 58 Debt of consolidated investments (b) 0.00% - 6.6% 2016 - 2062 4,987 3,683 Total debt not guaranteed by AIG 4,989 3,741 Total long term debt $ 29,350 $ 31,217 (a) AIG Parent guarantees all such debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $ 2.4 billion and $ 3.5 billion at December 31, 2015 and December 31, 2014 , respectively . This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be re pledged or resold by the counterparties. (b ) At December 31, 2015 , includes debt of consol idated investment vehicles related to real estate investments of $ 2.4 billion, affordable housing partnership investments and secu ritizations of $ 2.2 million , and other securitization vehicles and investments of $ 359 m illion , respectively. At December 31, 2014 , includes debt of consol idated investment vehicles related to rea l estate investments of $ 2.1 billion, affordable housing partnership investments and securitizations of $ 853 million , and other securitization vehicles and investments of $ 728 m ill ion , respectively. The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, whe n applicable) , excluding $ 5 bill ion in borrowings of debt of consolidated investments: December 31, 2015 Year Ending (in millions) Total 2016 2017 2018 2019 2020 Thereafter Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable $ 17,136 $ 992 $ 192 $ 1,106 $ 999 $ 1,345 $ 12,502 Subordinated debt - - - - - - - Junior subordinated debt 1,337 - - - - - 1,337 AIG Japan Holdings Kabushiki Kaisha 106 - - - 106 - - AIGLH notes and bonds payable 284 - - - - - 284 AIGLH junior subordinated debt 422 - - - - - 422 Total AIG general borrowings 19,285 992 192 1,106 1,105 1,345 14,545 AIG borrowings supported by assets: MIP notes payable 1,372 245 781 346 - - - Series AIGFP matched notes and bonds payable 34 - 10 - - - 24 GIAs, at fair value 3,276 190 176 464 90 41 2,315 Notes and bonds payable, at fair value 394 192 10 123 - - 69 Total AIG borrowings supported by assets 5,076 627 977 933 90 41 2,408 Total debt issued or guaranteed by AIG 24,361 1,619 1,169 2,039 1,195 1,386 16,953 Other subsidiaries notes, bonds, loans and mortgages payable 2 - 2 - - - - Total $ 24,363 $ 1,619 $ 1,171 $ 2,039 $ 1,195 $ 1,386 $ 16,953 Uncollateralized and collateralized n otes, b onds, l oans and m ortgages p ayable consisted of the following: Uncollateralized Collateralized At December 31, 2015 Notes/Bonds/Loans Loans and (in millions) Payable Mortgages Payable Total AIG general borrowings $ - $ 106 $ 106 Other subsidiaries notes, bonds, loans and mortgages payable * - 2 2 Total $ - $ 108 $ 108 * AIG does not guarantee any of these borrowings. Junior S ubordinated D ebt In August 2012, we entered into new repl acement capital covenants (the New RCCs) for the initial benefit of the holders of our 2.375% Subordinated Notes due 2015 (the Subordinated Notes) , in connection with our 5.75% Series A-2 Junior Subordinated Debentures and our 4.875% Series A-3 Junior Subordinated Debentures. We covenant ed in each New RCC that , subject to certain exceptions, we would not repay, redeem or purchase, and that none of our subsidiaries would p urchase, the applicable series of j unior s ubordinated d ebentures prior to the scheduled termination date of that New RCC, unless since the date 360 days prior to the date of that repayment, redemption or purchase , we ha ve received a specified amount of net cash proceeds from the sale of common stock or certain other qualifying securities that have certain characteristics that are at least as equity-like as the applicable characteristi cs of the applicable series of j unior subordinated d ebentures, or we or ou r subsidiaries have issued a specified amount of common stock in connection with the conversion or exchange of certain convertible or exchangeable securities. In the first quarter of 2013, our obligations under the New RCCs were effectively terminated beca use one of the termination provisions set forth in the New RCCs was triggered when it was determined that neither series of junior subordinated debentures received equity credit any longer for rating agency purposes. In 2015 , we repurchased app roximately $ 588 million aggregate principal amount of our 8.175% Series A-6 Junior Subordinated Debentures. AIGLH Junior Subordinated Debentures (Formerly, Liabilities Connected To Trust Preferred Stock) In connection with our acquisition of AIG Life Holdings, Inc. (AIGLH) in 2001, we entered into arrangements with AIGLH with respect to outstanding AIGLH capital securities. In 1996, AIGLH issued capital securities through a trust to institutional investors and funded the trust with AIGLH junior subordinated debentures issued to the trust with the same terms as the capital securities . On July 11, 2013, th e AIGLH junior subordinated debentures were distributed to holders of the capital securities, the capital securities were cancelled and the trusts were dissolved. At December 31, 2015 , the junior subordinated debentures outstanding consisted of $ 116 million of 8.5 p ercent junior subordinated debentures due July 2030, $ 227 million of 8.125 percent junior subordinated debentures due March 2046 and $ 79 million of 7.57 percent junior subor dinated debentures due December 2045, each guaranteed by AIG Parent . Credit Facilities On November 5, 2015, we amended and restated the five-year syndicated credit facility entered into on June 19, 2014 (the Previous Facility). The amended and restated five-year syndicated facility (the Five-Year Facility) provides for aggregate commitments by the bank syndicate to provide unsecured revolving loans and/or standby letters of credit of up to $ 4.5 billion (increased from a $ 4.0 billion commitment in the Previous Fa cility) without any limits on the type of borrowings and is scheduled to expire in November 2020 (the Previous Facility was scheduled to expire in June 2019 ). The increased commitment of $ 500 million to the Five-Year Facility offset s the effect of the expiration of our $ 500 million contingent liquidity facility. At December 31, 2015 Available Effective (in millions) Size Amount Expiration Date Five-Year Syndicated Credit Facility $ 4,500 $ 4,500 November 2020 11/5/2015 |
CONTINGENCIES, COMMITMENTS AND
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 12 Months Ended |
Dec. 31, 2015 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 15. 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 consolidate d 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 losses and loss adjustment expenses. 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 deriva tive 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 othe r 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 re quests. AIG’s Subprime Exposure, AIGFP Credit Default Swap Portfolio and Related Matters AIG, AIG Financial Products Corp. and related subsidiaries (collectively AIGFP), and certain directors and officers of AIG, AIGFP and other AIG subsidiaries have bee n 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 lend ing program and related disclosure and other matters (Subprime Exposure Issues). Consolidated 2008 Securities Litigation. On May 19, 2009, a consolidated class action complaint, resulting from the consolidation of eight purported securities cl ass actions filed between May 2008 and January 2009, was 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 Souther n District of New York (the Southern District of New York) in In re American International Group, Inc. 2008 Securities Litigation (the Consolidated 2008 Securities Litigation), asserting claims under the Securities Exchange Act of 1934, as amended (the Exc hange Act), and claims under the Securities Act of 1933, as amended (the Securities Act), for allegedly materially false and misleading statements in AIG’s public disclosures from March 16, 2006 to September 16, 2008 relating to, among other things, the Su bprime Exposure Issues. On July 15, 2014 and August 1, 2014, lead plaintiff, AIG and AIG’s outside auditor accepted mediators’ proposals to settle the Consolidated 2008 Securities Litigation against all defendants. On October 22, 2014, AIG made a cash paym ent of $ 960 million, which is being held in escrow until all funds are distributed. On March 20, 2015, the Court issued an Order and Final Judgment approving the class settlement and dismissing the action with prejudice, and the AIG settlem ent became final on June 29, 2015. Individual Securities Litigations. Between November 18, 2011 and February 9, 2015, eleven separate, though similar, securities actions (Individual Securities Litigations) 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 a defendant AIG’s outside auditor and two such actions also name as defendants the underwriters of variou s securities offerings). Two of the actions were voluntarily dismissed. On September 10, 2015, the Southern District of New York granted AIG’s motion to dismiss some of the claims in the Individual Securities Litigations in whole or in part. AIG has settle d seven of the nine remaining actions. On March 27, 2015, an additional securities action was filed in state court in Orange County, California asserting a claim against AIG pursuant to Section 11 of the Securities Act (the California Action) that is s ubstantially similar to those in the Consolidated 2008 Securities Litigation and the two remaining Individual Securities Litigations pending in the Southern District of New York. On July 10, 2015, AIG filed a motion to stay the California Action. On Septe mber 18, 2015, the court denied AIG’s motion to stay the California Action. On October 23, 2015, AIG filed an appeal of the court’s denial. On January 28, 2016, the California appellate court summarily denied AIG’s appeal. On February 8, 2016, AIG filed a petition for review in the California Supreme Court. On April 29, 2015, AIG filed a complaint for declaratory relief in the Southern District of New York seeking a declaration that the Section 11 claims filed in the California Action are time-barred (the SDNY Action). On July 10, 2015, AIG filed a motion for summary judgment and the plaintiff in the California Action cross moved to dismiss the SDNY Action. We have accrued our current estimate of probable loss with respect to these litigations. Starr Intern ational 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. Constit ution. 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 con sidered 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 Fe deral Claims granted AIG’s and the United States’ motions to dismiss SICO’s derivative claims in the SICO Treasury Action due to our Board’s refusal of SICO’s demand and denied the United States’ motion to dismiss SICO’s direct, non-derivative claims. On M arch 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 (the Credit Agreement Shareholder Class); 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 Ju ne 30, 2009 annual meeting of shareholders (the Reverse Stock Split Shareholder Class). 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 conse nt forms by September 16, 2013 to participate in either class. 286,908 holders of AIG Common Stock during the two class periods have opted into the classes. On June 15, 2015, the Court of Federal Claims issued its opinion and order in the SICO Treasury Action. The Court found that the United States exceeded its statutory authority by exacting approximately 80 percent of AIG’s equity in exchange for the FRBNY Credit Facility, but that AIG shareholders suffered no damages as a result. SICO argued during trial that the two classes are entitled to a total of approximately $ 40 billion in damages, plus interest. The Court also fo und that the United States was not liable to the Reverse Stock Split Class in connection with the reverse stock split vote at the June 30, 2009 annual meeting of shareholders. On June 17, 2015, the Court of Federal Claims entered judgment stating that “the Credit Agreement Shareholder Class shall prevail on liability due to the Government's illegal exaction, but shall recover zero damages, and that the Reverse Stock Split Shareholder Class shall not prevail on liability or damages.” SICO filed a notice of appeal of the July 2, 2012 dismissal of SICO’s unconstitutional conditions claim, the June 26, 2013 dismissal of SICO’s derivative claims, the Court’s June 15, 2015 opinion and order, and the Court’s June 17, 2015 judgment to the United States Court of App eals for the Federal Circuit. The United States filed a notice of cross appeal of the Court’s July 2, 2012 opinion and order denying in part its motion to dismiss, the Court’s June 26, 2013 opinion and order denying its motion to dismiss SICO’s direct clai ms, the Court’s June 15, 2015 opinion and order, and the Court’s June 17, 2015 judgment to the United States Court of Appeals for the Federal Circuit. On August 25, 2015, SICO filed its appellate brief, in which it stated SICO does not appeal the dismissal of the derivative claims it asserted on behalf of AIG. On December 7, 2015, the United States filed its principal and response brief. In the Court of Federal Claims, the United States has alleged, as an affirmative defense in its answer, that AIG is oblig ated 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. AIG believes that any indemnification obligation would ari se only if: (a) SICO prevails on its appeal and ultimately receives an award of damages; (b) the United States then commences an action against AIG seeking indemnification; and (c) the United States is successful in such an action through any appellate pro cess. If SICO prevails on its claims and the United States seeks indemnification from AIG, AIG intends to assert defenses thereto. A reversal of the Court of Federal Claim’s June 17, 2015 decision and judgment and a final determination that the United Stat es is liable for damages, together with a final 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 A IG 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 . Th e 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 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 th e 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 dism iss, 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 this litigation. Litigation Matters Relating to AIG’s Insurance Operations Ca remark. 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 liab ility. 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 th e 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. Plaintiffs have now reduced the amount of compensatory damages the y are seeking at trial to $1.1 billion. 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 tolle d 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’ petition for rehearing of that decision was denied on February 27, 2015. The matter has been remanded to the trial court for general discovery and adjudication of the merits. On November 24, 2015, the trial court ruled that the defendants had a duty to disclose the amount of insurance available at t he settlement approval hearings and that the defendant s breached that duty. AIG intend s to appeal this ruling in the event of an adverse judgment at trial. Trial is expected to commence on February 22, 2016. In 2015, we accrued our current estimate of loss with respect to this litigation. Regulatory and Related Matters In April 2007, the National Association o f Insurance Commissioners (NAIC) formed a Settlement Review Working Group, directed by the State of Indiana, to review the Workers’ Compensation Residual Market Assessment portion of the settlement between AIG, the Office of the New York Attorney General, and the New York State Department of Insurance. In late 2007, the Settlement Review Working Group, under the direction of Indiana, Minnesota and Rhode Island, recommended that a multi-state targeted market conduct examination focusing on workers’ compensa tion insurance be commenced under the direction of the NAIC’s Market Analysis Working Group. AIG was informed of the multi-state targeted market conduct examination in January 2008. The lead states in the multi-state examination were Delaware, Florida, I ndiana, Massachusetts, Minnesota, New York, Pennsylvania and Rhode Island. All other states (and the District of Columbia) agreed to participate in the multi-state examination. The examination focused on legacy issues related to certain AIG entities’ writ ing and reporting of workers compensation insurance between 1985 and 1996. On December 17, 2010, AIG and the lead states reached an agreement to settle all regulatory liabilities arising out of the subjects of the multistate examination. This regulatory settlement agreement, which was agreed to by all 50 states and the District of Columbia, included, among other terms, ( i ) AIG’s payment of $ 100 million in regulatory fines and penalties; (ii) AIG’s payment of $46.5 m illion in outstanding premium taxes and assessments; (iii) AIG’s agreement to enter into a compliance plan describing agreed-upon specific steps and standards for evaluating AIG’s ongoing compliance with state regulations governing the setting of workers’ compensation insurance premium rates and the reporting of workers’ compensation premiums; and (iv) AIG’s agreement to pay up to $ 150 million in contingent fines in the event that AIG fails to comply substantially with the compliance plan req uirements. In furtherance of the compliance plan, the agreement provided for a monitoring period from May 29, 2012 to May 29, 2014 leading up to a compliance plan examination. After the close of the monitoring period, as part of preparation for the actual conduct of the compliance plan examination, on or about October 1, 2014, AIG and the lead states agreed upon corrective action plans to address particular issues identified during the monitoring period. The compliance plan examination is ongoing. There c an be no assurance that the result of the compliance plan examination will not result in a fine, have a material adverse effect on AIG’s ongoing operations or lead to civil litigation. In connection with a multi - state examination of certain accident and he alth 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 l iability 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’ o ngoing 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 o ther 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. Lega l Reserves We recorded increases in our legal reserve liability of $ 25 million and $ 507 million in the years ended December 31, 2015 and 2014 , respectively. Commitments We occupy leased space in many locations under various long-term leases and have entered into various leases covering the long-term use of data processing equipment. The following table presents the future minimum lease payments under operating leases at December 31, 2015 : (in millions) 2016 $ 304 2017 234 2018 168 2019 126 2020 93 Remaining years after 2020 210 Total $ 1,135 Rent expense was $ 327 million, $ 471 million and $ 414 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. 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 $ 2.6 billion at December 31, 2015 . 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 AI G 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 leasi ng transactions in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at December 31, 2015 was $ 208 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 st andby 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 gene rally 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 lia bilities, 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 limitatio n. 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 ce rtain 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 Consoli dated Balance Sheets. Other See Note 9 to the Consolidated Financial Statements for additional discussion on commitments and guarantees associated with VIEs. See Note 10 to the Consolidated Financial Statements for additional disclosures about derivatives. See Note 24 to the Consolidated Financial Statements for additional disclosures about guarantees of outstanding debt. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
EQUITY | |
EQUITY | 16 . Equity Shares Outstanding The following table presents a rollforward of outstanding shares: Common Treasury Common Stock Stock Issued Stock Outstanding Year Ended December 31, 2013 Shares, beginning of year 1,906,611,680 (430,289,745) 1,476,321,935 Shares issued 34,009 24,778 58,787 Shares repurchased - (12,317,399) (12,317,399) Shares, end of year 1,906,645,689 (442,582,366) 1,464,063,323 Year Ended December 31, 2014 Shares, beginning of year 1,906,645,689 (442,582,366) 1,464,063,323 Shares issued 25,803 15,748 41,551 Shares repurchased - (88,177,903) (88,177,903) Shares, end of year 1,906,671,492 (530,744,521) 1,375,926,971 Year Ended December 31, 2015 Shares, beginning of year 1,906,671,492 (530,744,521) 1,375,926,971 Shares issued - 371,806 371,806 Shares repurchased - (182,382,160) (182,382,160) Shares, end of year 1,906,671,492 (712,754,875) 1,193,916,617 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 for this purpose. 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 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 sta ndards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant. On March 26, 2015 , AIG paid a dividend of $ 0.125 per share on AIG Common Stock to shareholders of record on March 12, 2015 . On June 25, 2015, AIG paid a dividend of $ 0.125 per share on AIG Common Stock to shareholders of record on June 11, 2015 . On September 28, 2015 , AIG paid a dividend of $ 0.28 per share on AIG Common Stock to shareholder s of record on September 14, 2015 . On December 21, 2015, AIG paid a dividend of $ 0.28 per share on AIG Common Stock to shareholders of record on December 7 , 2015 . Repurchase of AIG Common Stock Our Board of Directors has authorized the repurchase of shares of AIG Common Stock through a series of actions. On December 16, 2015, our Board of Directors authorized an additional increase of $ 3.0 billion to its previous share r epurchase authorization, resulting in an aggregate remaining authorization on such date of approximately $ 4.1 billion. A s of December 31, 2015, approximately $ 3.3 billion remained under our share repurchase authorization. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwi se (including through the purchase of warrants) . Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans. For the year ended December 31 , 2013, we repurchased approximately 12 million shares of AIG Common Stock for an aggregate purchase price of approximately $ 597 million. For the year ended December 31 , 201 4 , we repurchased approximately 88 million shares of AIG Common Stock for an aggregate purchase price of approximately $ 4.9 billion . In the second, third and fourth quarters of 2014, we executed five accel erated stock repurchase (ASR) agreements with third-party financial institutions. The total number of shares of AIG Common Stock repurchased in the twelve -month period ended December 31, 2014, and the aggregate purchase price of those shares, each as set forth above, reflect our payment of approximately $ 3.1 billion in the aggregate under the ASR agreements and the receipt of approximately 53 million shares of AIG Commo n Stock in the aggregate, including the initial receipt of 70 percent of the total notional share equivalent, or approximately 9.2 million shares of AIG Common Stock, under an ASR agreement executed in December 2014. That ASR agreement settled in January 2015, at which time we received approximately 3.5 million additional shares of AIG Common Stock based on a formula specified by the terms of the ASR agreement. For the year ended December 31, 2015, we repurchased approximately 182 million shares of AIG Common Stock for an aggregate purchase price of approximately $ 10.7 billion. The tota l number of shares of AIG Common Stock repurchased for the year ended December 31, 2015 includes (but the aggregate purchase price does not include) approximately 3.5 million shares of AIG Common Stock rec eived in January 2015 upon the settlement of an accelerated share repurchase agreement executed in the fourth quarter of 2014. The timing of any future repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factor Accumulated Other Comprehensive Income The following table presents a rollforward of Accumulated other comprehensive income: Unrealized Appreciation (Depreciation) of Fixed Maturity Investments Unrealized on Which Other-Than- Appreciation Foreign Retirement Temporary Credit (Depreciation) Currency Plan Impairments of All Other Translation Liabilities (in millions) Were Taken Investments Adjustments Adjustment Total Balance, January 1, 2013, net of tax $ 575 $ 13,446 $ (403) $ (1,044) $ 12,574 Change in unrealized appreciation (depreciation) of investments 464 (14,069) - - (13,605) Change in deferred policy acquisition costs adjustment and other (127) 1,000 - - 873 Change in future policy benefits 79 2,658 - - 2,737 Change in foreign currency translation adjustments - - (454) - (454) Net actuarial gain - - - 1,012 1,012 Prior service credit - - - (51) (51) Change in deferred tax asset (liability) (55) 3,738 (102) (330) 3,251 Total other comprehensive income (loss) 361 (6,673) (556) 631 (6,237) Noncontrolling interests - (16) (7) - (23) Balance, December 31, 2013, net of tax $ 936 $ 6,789 $ (952) $ (413) $ 6,360 Change in unrealized appreciation of investments 156 7,564 - - 7,720 Change in deferred policy acquisition costs adjustment and other 68 (495) - - (427) Change in future policy benefits (133) (1,113) - - (1,246) Change in foreign currency translation adjustments - - (833) - (833) Net actuarial loss - - - (815) (815) Prior service credit - - - (49) (49) Change in deferred tax asset (liability) 16 (418) 1 308 (93) Total other comprehensive income (loss) 107 5,538 (832) (556) 4,257 Noncontrolling interests - - - - - Balance, December 31, 2014, net of tax $ 1,043 $ 12,327 $ (1,784) $ (969) $ 10,617 Change in unrealized depreciation of investments (488) (10,519) - - (11,007) Change in deferred policy acquisition costs adjustment and other (146) 1,265 - - 1,119 Change in future policy benefits 92 1,112 - - 1,204 Change in foreign currency translation adjustments - - (1,129) - (1,129) Net actuarial gain - - - 413 413 Prior service credit - - - (239) (239) Change in deferred tax asset (liability) 195 1,380 29 (51) 1,553 Total other comprehensive income (loss) (347) (6,762) (1,100) 123 (8,086) Noncontrolling interests - (1) (5) - (6) Balance, December 31, 2015, net of tax $ 696 $ 5,566 $ (2,879) $ (846) $ 2,537 The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2015 , 2014 and 2013 : Unrealized Appreciation (Depreciation) of Fixed Maturity Securities Unrealized on Which Other-Than- Appreciation Foreign Retirement Temporary Credit (Depreciation) Currency Plan Impairments Were of All Other Translation Liabilities (in millions) Recognized Investments Adjustments Adjustment Total December 31, 2013 Unrealized change arising during period $ 507 $ (9,556) $ (454) $ 851 $ (8,652) Less: Reclassification adjustments included in net income 91 855 - (110) 836 Total other comprehensive income (loss), before income tax expense (benefit) 416 (10,411) (454) 961 (9,488) Less: Income tax expense (benefit) 55 (3,738) 102 330 (3,251) Total other comprehensive income (loss), net of income tax expense (benefit) $ 361 $ (6,673) $ (556) $ 631 $ (6,237) December 31, 2014 Unrealized change arising during period $ 119 $ 6,488 $ (833) $ (866) $ 4,908 Less: Reclassification adjustments included in net income 28 532 - (2) 558 Total other comprehensive income (loss), before income tax expense (benefit) 91 5,956 (833) (864) 4,350 Less: Income tax expense (benefit) (16) 418 (1) (308) 93 Total other comprehensive income (loss), net of income tax expense (benefit) $ 107 $ 5,538 $ (832) $ (556) $ 4,257 December 31, 2015 Unrealized change arising during period $ (471) $ (7,068) $ (1,129) $ 285 $ (8,383) Less: Reclassification adjustments included in net income 71 1,074 - 111 1,256 Total other comprehensive income (loss), before income tax expense (benefit) (542) (8,142) (1,129) 174 (9,639) Less: Income tax expense (benefit) (195) (1,380) (29) 51 (1,553) Total other comprehensive income (loss), net of income tax expense (benefit) $ (347) $ (6,762) $ (1,100) $ 123 $ (8,086) The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income: Amount Reclassified from Accumulated Other Years Ended December 31, Comprehensive Income Affected Line Item in the (in millions) 2015 2014 2013 Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized Investments $ 71 $ 28 $ 91 Other realized capital gains Total 71 28 91 Unrealized appreciation (depreciation) of all other investments Investments 1,054 669 2,452 Other realized capital gains Deferred acquisition costs adjustment 3 (20) (28) Amortization of deferred policy acquisition costs Future policy benefits 17 (117) (1,569) Policyholder benefits and losses incurred Total 1,074 532 855 Change in retirement plan liabilities adjustment Prior-service costs 214 47 47 * Actuarial gains/(losses) (103) (49) (157) * Total 111 (2) (110) Total reclassifications for the period $ 1,256 $ 558 $ 836 * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 20 to the Consolidated Financial Statements. |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS PER SHARE (EPS) | |
EARNINGS PER SHARE (EPS) | 17. 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 d iluted 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 compu tation of basic and diluted EPS: Years Ended December 31, (dollars in millions, except per share data) 2015 2014 2013 Numerator for EPS: Income from continuing operations $ 2,222 $ 7,574 $ 9,008 Less: Net income (loss) from continuing operations attributable to noncontrolling interests 26 (5) 7 Income attributable to AIG common shareholders from continuing operations 2,196 7,579 9,001 Income (loss) from discontinued operations - (50) 84 Net income attributable to AIG common shareholders $ 2,196 $ 7,529 $ 9,085 Denominator for EPS: Weighted average shares outstanding — basic 1,299,825,350 1,427,959,799 1,474,171,690 Dilutive shares 34,639,533 19,593,853 7,035,107 Weighted average shares outstanding — diluted * 1,334,464,883 1,447,553,652 1,481,206,797 Income per common share attributable to AIG: Basic: Income from continuing operations $ 1.69 $ 5.31 $ 6.11 Income from discontinued operations $ - $ (0.04) $ 0.05 Net Income attributable to AIG $ 1.69 $ 5.27 $ 6.16 Diluted: Income from continuing operations $ 1.65 $ 5.24 $ 6.08 Income from discontinued operations $ - $ (0.04) $ 0.05 Net Income attributable to AIG $ 1.65 $ 5.20 $ 6.13 * Dilutive shares primarily result from share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of the recapitalization in January 2011. The number of shares excluded from diluted shares outstanding were 0.2 million, 0.3 million and 38 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
STATUTORY FINANCIAL DATA AND RE
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2015 | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 18. STATUTORY FINANCIAL DATA AND RESTRICTIONS The following table presents statutory net income (loss) and capital and surplus for our Non-Life Insurance Companies and our Life Insurance Companies in accordance with statutory accounting practices: (in millions) 2015 2014 2013 Years Ended December 31, Statutory net income (loss) (a)(b)(c)(d)(e) : Non-Life Insurance Companies : Domestic (d)(e) $ 1,202 $ 3,265 $ 11,440 Foreign 521 1,252 842 Total Non-Life Insurance Companies 1,723 4,517 12,282 Life Insurance Companies : Domestic 2,672 2,865 5,047 Foreign (16) (9) (9) Total Life Insurance Companies 2,656 2,856 5,038 At December 31, Statutory capital and surplus (a)(c)(d)(e) : Non-Life Insurance Companies : Domestic (d)(e) $ 24,358 $ 27,621 Foreign 11,465 12,183 Total Non-Life Insurance Companies 35,823 39,804 Life Insurance Companies : Domestic 8,287 9,879 Foreign 422 437 Total Life Insurance Companies 8,709 10,316 Aggregate minimum required statutory capital and surplus : Non-Life Insurance Companies (f) : Domestic (f) $ 6,493 $ 7,540 Foreign 7,554 8,210 Total Non-Life Insurance Companies 14,047 15,750 Life Insurance Companies : Domestic 3,658 3,674 Foreign 45 46 Total Life Insurance Companies 3,703 3,720 (a) Excludes discontinued operations and other divested businesses. Statutory capital and surplus and net income (loss) with respect to foreign operations are as of November 30. (b) Non-Life Insurance Companies did not recognize material statutory gains related to legal entity simplification (restructuring) in 2015 . Non-Life Insurance Companies include $ 0 and approximately $ 8.0 billion of recognized statutory gains related to legal entity simplification (restructuring) in 2014 and 2013 , respectively. These recognized gains were largely offset by reductions in unrealized gains; therefore, there was no material impact to total surplus. ( c ) In aggregate, the 2014 Non-Life Insurance Companies and Life Insurance Companies statutory net income (loss) and statutory capital and surplus amounts increased by $ 115 million and $ 303 million, respectively, compared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2014 , due to finalization of statutory filings . ( d) Non-Life Insurance Companies recognized $2. 75 billion of capital contributions from AIG Paren t in their statutory financial statements as of December 31, 2015, related to the reserve strengthening in the fourth quarter of 2015. These capital contributions were received in January 2016. (e ) For the year ended December 31, 2015, excluded Eaglestone Reinsurance Company ( Eaglestone ), a reinsurer of run-off lines of business from affiliates within Non-Life Insurance Companies, which was transferred from the Non-Life Insurance Companies to Corporate and Other. The statutory net income and statutory capit al and surplus of Eaglestone at December 31, 2015 were $22.8 million and $1.9 billion, respectively. The statutory surplus included $150 million of capital contribution received from AIG Parent in January 2016. (f) For the year ended December 31, 2015, e xcluded $274 million for Eaglestone . Our insurance subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by domestic and foreign insurance regulatory authorities. The principal differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP for domestic companies are that statutory financial statements do not reflect DAC, some bond portfolios may be carr ied at amortized cost, investment impairments are determined in accordance with statutory accounting practices, assets and liabilities are presented net of reinsurance, policyholder liabilities are generally valued using more conservative assumptions and c ertain assets are non-admitted. For domestic insurance subsidiaries, aggregate minimum required statutory capital and surplus is based on the greater of the RBC level that would trigger regulatory action or minimum requirements per state insurance regulati on. Capital and surplus requirements of our foreign subsidiaries differ from those prescribed in the U.S., and can vary significantly by jurisdiction. At both December 31, 2015 and 2014 , all domestic and foreign insurance subsidiaries i ndividually exceeded the minimum required statutory capital and surplus requirements and all domestic insurance subsidiaries individually exceed ed RBC minimum required levels. At December 31, 2015 and 2014 , with the exception of one per mitted practice adopted by one domestic life insurance subsidiary in 2015, described below, the use of prescribed or permitted statutory accounting practices by our domestic and foreign insurance subsidiaries did not result in reported statutory surplus or risk-based capital that is significantly different from the statutory surplus or risk-based capital that would have been reported had NAIC statutory accounting practices or the prescribed regulatory accounting practices of their respective foreign regulat ory authority been followed in all respects for domestic and foreign insurance entities. As described in Note 12 , our domestic insurance subsidiaries domiciled in New Yor k and Pennsylvania discount non- tabular workers ’ compensation reserves ba sed on the prescribed or approved regulations in each of those states. This practice did not have a material impact on our statutory surplus, statutory net income (loss), or risk-based capital. In 2015, a domestic life insurance subsidiary domiciled in Te xas adopted a permitted statutory accounting practice to report derivatives used to hedge interest rate risk on product-related embedded derivatives at amortized cost instead of fair value. The initial adoption of the permitted practice resulted in a redu ction to the statutory surplus of our subsidiary of $366 million at December 31, 2015. The NAIC Model Regulation “Valuation of Life Insurance Policies” (Regulation XXX) requires U.S. life insurers to establish additional statutory reserves for term life in surance policies with long-term premium guarantees and universal life policies with secondary guarantees (ULSGs). In addition, NAIC Actuarial Guideline 38 (Guideline AXXX) clarifies the application of Regulation XXX as to these guarantees, including certai n ULSGs. Domestic insurance subsidiaries manage the capital impact of statutory reserve requirements under Regulation XXX and Guideline AXXX through intercompany reinsurance transactions. The affiliated life insurers provid ing reinsurance capacity for suc h transactions are fully licensed insurance companies and are not formed under captive insurance laws. Under one of these intercompany reinsurance arrangements, certain Regulation XXX and Guideline AXXX reserves related to new and in-force business are ceded to an affiliated U.S. life insurer, which is a licensed life insurer in the state of Missouri and an accredited reinsurer in the state of Texas. As an accredited reinsurer, this affiliated life insurer is not required to post any collateral such as l etter s of credit or assets in trust. Under the other intercompany reinsurance arrangement, certain Regulation XXX and Guideline AXXX reserves related to a closed block of in-force business are ceded to an affiliated off-shore life insurer, which is license d as a class E insurer under Bermuda law. Bermuda law permits the off-shore life insurer to record an asset that effectively reduces the statutory reserves for the assumed reinsurance to the level that would be required under U.S. GAAP. Letters of credit are used to support the credit for reinsurance provided by the affiliated off-shore life insurer. The letters of credit are subject to reimbursement by AIG Parent in the event of a drawdown. See Note 7 for additional information regarding thes e letters of credit. Subsidiary Dividend Restrictions Payments of dividends to us by our insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities. With respect to our domestic insurance subsidiaries, the payment of any dividend requires formal notice to the insurance department in which the particular insurance subsidiary is domiciled. For example, unless permitted by the Superintendent of Financial Services, property casualty companies domiciled in New York generall y may not pay dividends to shareholders that, in any 12 -month period, exceed the lesser of 10 percent of such company’s statutory policyholders’ surplus or 100 percent of its “adjusted net investment income,” for the previous year, as defined. Generally, l ess severe restrictions applicable to both property casualty and life insurance companies exist in most of the other states in which our insurance subsidiaries are domiciled. Under the laws of many states, an insurer may pay a dividend without prior approv al of the insurance regulator when the amount of the dividend is below certain regulatory thresholds. Other foreign jurisdictions may restrict the ability of our foreign insurance subsidiaries to pay dividends. Various other regulatory restrictions also li mit cash loans and advances to us by our subsidiaries. Largely as a result of these restrictions, approximately $ 41.6 billion of the statutory capital and surplus of our consolidated insurance subsidiaries were restricted from tra nsfer to AIG Parent without prior approval of state insurance regulators at December 31, 2015 . To our knowledge, no AIG insurance company is currently on any regulatory or similar “watch list” with regard to solvency. Parent Company Divide nd Restrictions At December 31, 2015, our ability to pay dividends is not subject to any significant contractual restrictions, but remains subject to regulatory restrictions. See Note 16 herein for additional information about our abil ity to pay dividends to our shareholders. |
SHARE-BASED AND OTHER COMPENSAT
SHARE-BASED AND OTHER COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2015 | |
SHARE-BASED AND OTHER COMPENSATION PLANS | |
SHARE-BASED AND OTHER COMPENSATION PLANS | 19 . SHARE-BASED AND OTHER COMPENSATION PLANS The following table presents our share - based compensation expense: Years Ended December 31, (in millions) 2015 2014 2013 Share-based compensation expense - pre-tax * $ 365 $ 349 $ 457 Share-based compensation expense - after tax 237 227 297 * For the years ended December 31, 2015 , 2014 and 2013 , $ 19 million, $ 86 million and $ 315 million, respectively, of pre-tax compensation expense was attributed to unsettled liability - classified awards, the values of which are based on our share price at the reporting date. Our share price was $ 61.97 , $ 56.01 and $ 51.05 at December 31, 2015 , 2014 and 2013 , respectively. In addition, we recognized $ 147 million, $ 120 million and $ 101 million for immedi ately vested stock-settled awards issued to retirement eligible employees in 2015 , 2014 and 2013 , respectively. Employee Plans The Company grants annual Long Term Incentive (LTI) awards under the 2013 Long Term Incentive P lan (2013 LTIP), which is governed by the AIG 2013 Omnibus Incentive Plan (2013 Plan). The 2013 Plan replaced the AIG 2010 Stock Incentive Plan (2010 Plan) as of May 15, 2013 but does not affect the terms and conditions of any award issued under the 2010 Plan. The 2013 Plan is currently the only plan under which share-settled awards can be made. As of December 31, 2015, the Starr International Company Inc. Deferred Compensation Profit Participation Plans (the SICO Plans) are the only legacy plans for wh ich awards remain unvested. Our share - settled awards are settled with previously acquired shares held in AIG’s treasury. Share awards made by SICO are settled by SICO. AIG 2013 Omnibus Incentive Plan The 2013 Plan was adopted at the 2013 Annual Meeting of Shareholders and provides for the grants of share-based awards to our employees and non-employee directors. The total number of shares that may be granted under the 2013 Plan (the reserve) is the sum of 1) 45 million shares of AIG Common Stock, plus 2) the number of authorized shares that remained available for issuance under the 2010 Plan when the 2013 Plan became effective, plus 3) th e number of shares of AIG Common Stock relating to outstanding awards under the 2010 Plan at the time the 2013 Plan became effective that subsequently are forfeited, expired, terminated or otherwise lapse or are settled in cash. Each share-based unit gran ted under the 2013 Plan reduces the number of shares available for future grants by one share. However, shares with respect to awards that are forfeited, expired or settled for cash, and shares withheld for taxes on awards (other than options and stock appreciation rights (SARs) awards) are returned to the reserve. During 2015 , performance share units (PSUs) and deferred stock units (DSUs) were granted under the 2013 Plan and 45,670,678 shares are av ailable for future grants as of December 31, 2015 . PSUs were issued to employees as part of our long-term incentive program in March 2015 and are also issued for off-cycle grants, which are made from time to time during the year as sign-on awards to new hires or as a result of a change in employee status. AIG 201 0 Stock Incentive Plan The 2010 Plan was adopted at the 2010 Annual Meeting of Shareholders. The total number of shares of AIG Common Stock that could be granted under the 2010 Plan was 60 million. During 2013, we granted PSUs, DSUs and restricted stock units (RSUs) under the 2010 Plan. Each PSU, DSU and RSU awarded reduced the number of shares available for future grants by one share. Subsequent to the adoption of the 2013 Plan in May 2013, no additional grants were made under the 2010 Plan. Share - settled Awards AIG 2013 Lon g Term Incentive Plan The 2013 LTIP provides for the annual grant of PSUs to certain employees, including our senior executive officers and other highly compensated employees. Each recipient of an award is granted a number of PSUs (the target) that provides the opportunity to receive shares of AIG Common Stock based on AIG achieving specified performance goals at the end of a three -year performance period. These performance goals are pre-established by AIG’s Compensation and Man agement Resources Committee for each annual grant and may differ from year to year. The actual number of PSUs earned can vary from zero to 150 percent of the target depending on AIG’s performance relative to a s pecified peer group. Vesting occurs in three equal installments beginning on January 1 of the year immediately following the end of a performance period and January 1 of each of the next two year s. Recipients must be employed at each vesting date to be entitled to share delivery, except upon the occurrence of an accelerated vesting event, such as an involuntary termination without cause, disability, retirement or death during the vesting period. LTI awards granted in 2015 accrue dividend equivalent units (DEUs) in the form of additional PSUs whenever a cash dividend is declared on shares of AIG Common Stock; the DEUs are subject to the same vesting terms and conditions as the underlying PSUs. N either dividends nor DEUs accrue on unvested PSUs or the shares underlying the PSUs for LTI awards granted in 2014 and 2013. Performance Share Unit Goals and Valuation The performance goals used to measure LTI awards granted in 2015 and 2014 p ertain to AIG’s total shareholder return (TSR) and credit default swap (CDS) spread , weighted 75 percent and 25 percent, respectively, in each case relative to a specified peer group. The goals for the 2013 awar ds are AIG’s growth in tangible book value per common share (TBVPS) (excluding accumulated other comprehensive income) and TSR weighted 50 percent each, in each case relative to a specified peer group. The fair value of PSUs to be earned b ased on AIG’s TBVPS and CDS spreads was based on the closing price of AIG Common Stock on the grant date. However, PSUs granted in 2014 and 2013 that vest based o n these goals were discounted by the present value of estimated dividends to be paid during th e respective vesting periods as these awards do not accrue dividends or DEUs. The fair value of PSUs to be earned based on AIG’s TSR relative to a specified peer group was determined on the grant date using a Monte Carlo simulation. The following table pr esents the assumptions used to estimate the fair value of PSUs that vest based on AIG’s TSR: 2015 2014 2013 Expected dividend yield (a) 1.78 % 1.13 % 0.38 % Expected volatility (b) 22.71 % 23.66 % 30.79 % Risk-free interest rate (c) 1.01 % 0.76 % 0.50 % (a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date. (b) The expected volatility is based on the implied volatilities of actively traded stock options from the valuation date through the end of the PSU performance period as estimated by Bloomberg Professional service. (c) The risk-free interest rate is the continu ously compounded interest rate for the term between the valuation date and the end of the performance period that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the va luation date The following table summarizes outstanding share - settled LTI awards (a) : Weighted Average As of or for the Year Number of PSUs (b) Grant-Date Fair Value Ended December 31, 2015 2015 LTI 2014 LTI 2013 LTI 2015 LTI 2014 LTI 2013 LTI Unvested, beginning of year - 4,036,527 4,066,182 $ - $ 48.72 $ 37.09 Granted 6,445,639 10,225 - 54.55 52.83 - Vested (3,212,976) (1,270,263) (1,593,595) 54.09 48.56 37.09 Forfeited (185,705) (217,130) (222,478) 53.66 48.78 37.38 Unvested, end of year 3,046,958 2,559,359 2,250,109 $ 55.08 $ 48.82 $ 37.07 (a) Excludes SICO awards, DSUs and options, which are discussed under the SICO Plans, Non-Employee Plans and Stock Options sections, respectively. (b) Represents target number of PSUs granted, and does not reflect potential increases or decreases that could result from the final outcome of the performance goals to be determined after the applicable performance period ends. The performance period for 2013 LTI awards ended December 31, 2015; the num ber of earned PSUs based on the results of the 2013 performance goals will be adjudicated in March 2016 by the Compensation and Management Resources Committee. At December 31, 2015 , the total unrecognized compensation cost (net of expected forfe itures) for the unvested PSUs was $ 190 million and the weighted - average and expected period of years over which that cost is expected to be recognized are 1.29 years and 4 y ears SICO Plans The SICO Plans, which have been closed to new participants since 2004, provide that shares of AIG Common Stock currently held by SICO are set aside for the benefit of the participants and distributed upon retirement. The SICO Board of Di rectors currently may permit an early payout of shares under certain circumstances. Prior to payout, the participant is not entitled to vote, dispose of or receive dividends with respect to such shares, and shares are subject to forfeiture under certain co nditions, including but not limited to the participant’s termination of employment with us prior to normal retirement age. A significant portion of the awards under the SICO Plans vest the year after the participant reaches age 65 , provided t hat the participant remains employed by us through age 65 . The portion of the awards for which early payout is available vests on the applicable payout date. SICO Plan awards issued in the form of restricted stock were valued based on the closing price of AIG’s Common Stock on the grant date. Although none of the costs of the various benefits provided under the SICO Plans have been paid by us, we have recorded compensation expense for the deferred compensation amounts payable to our employees by SICO, with an offsetting amount credited to Additional paid-in capital reflecting amounts deemed contributed by SICO. As of December 31, 2015, 31,964 shares of restricted stock remain unvested; the t otal unrecognized compensation cost (net of expected forfeitures) is $ 10 million and the weighted average and expected period of years over which those costs are expected to be recognized are 5.28 years and 21 years, respectively. Non-Employee Plans Our non-employee directors, who serve on our Board of Directors, receive share-based compensation in the form of fully vested deferred stock units (DSUs) with delivery deferred until retirement fr om the Board. DSUs granted in 2015 , 2014 and 2013 accrue DEUs equal to the amount of any regular quarterly dividend that would have been paid by AIG if the shares of AIG Common Stock underlying the DSUs had been outstanding. I n 2015 , 2014 and 2013 , we granted to non-employee directors 32,342 , 28,477 and 25,735 DSUs, respectively, under the 2013 Plan, and recognized expense of $ 1.9 milli on, $ 1.5 million and $ 1.2 million, respectively. Stock Options Options granted under the AIG 2007 Stock Incentive Plan and the 1999 Stock Option Plan generally vested over four years ( 25 percent vesting per year) and expire 10 years from the date of grant. All outstanding options are vested and out of the money at December 31, 2015 . There were no stock options granted since 2008. The aggregate intrinsic value for all unexercised options is zero . The following table provides a roll forward of stock option activity : Weighted Average Remaining Weighted Average Contractual As of or for the Year Ended December 31, 2015 Shares Exercise Price Life Options: Exercisable at beginning of year 202,275 $ 1,037.74 2.17 Expired (108,763) $ 1,261.25 Exercisable at end of year 93,512 $ 777.78 2.16 Cash-settled Awards Share - based cash-settled awards are recorded as liabilities until the final payout is made or the award is replaced with a stock - settled award. Compensation expense is recognized over the vesting periods, unless the award is fully vested on the grant date in which case the entire award value is immediately recognized as expense. Unlike stock - settled awards, which generally have a fixed grant-date fair value (unless the award is subsequently modified), the fair value of unsettled or unvested cash-settled awards is remeasured at the end of each reporting period based on the change in fair value of one share of AIG Common Stock. The liability and corresponding expense are adjusted accordingly until the award is settled. During the period we were subject to Troubled Asset Relief Program (TARP) restrictions, we issued various cash-settled share-based grants, including Stock Salary, TARP RSU awards, and other cash-settled RSU awards, to certain of our most highly compensated employees and executive officers in the form of restricted stock units that were either fully vested with payment deferred, or subject to specified service and performance conditions. After the repayment of our TARP obligations in December 20 12, all performance conditions were satisfied; as a result, we no longer issue awards that are subject to TARP restrictions. Restricted Stock Units Stock Salary was earned and accrued at the same time or times as the salary would otherwise be paid in cas h and is generally settled in installments on the first , second or third anniversary of grant in accordance with the terms of an employee’s award. Stock Salary grants were generally issued in the form of fu lly vested RSUs and are settled in cash based on the value of AIG Common Stock on the applicable settlement date. During 2015 , 2014 and 2013 , we paid $ 42 million, $ 89 million and $ 180 million, respectively, to settle awards. For those awards that were vested and unsettled at the end of each year, we recognized charges of $ 2 million, $ 7 million and $ 73 million in compensation expense for the years ended December 31, 2015 , 2014 and 2013 , respectively, to reflect fluctuations in the value of AIG Common Stock. At December 31, 2015 , the number of vested but unsett led RSUs totaled 24,405 , all of which were settled in January 2016. In addition, other TARP-related cash-settled RSU granted and issued in March 2013 and 2012 remained unvested as follows: Number of Units Year Ended December 31, 2015 RSUs * Unvested, beginning of year 1,404,645 Granted - Vested (975,715) Forfeited (15,972) Unvested, end of year 412,958 Net compensation expense for the year (in millions) $ 17 * Total unrecognized compensation as of December 31, 2015 is $ 1 million; the unvested RSUs will vest and settle in March 2016. Long Term Incentive Plans Certain employees were provided the opportunity to receive additional compensation in the form of cash and cash-settled SARs under the 2011 LTIP award or 100 percent cash for the 2012 LTIP award if certain performance measures were met. The ultimate value of these awards was contingent on AIG achieving per formance measures over a two -year performance period and such value could range from zero to twice the target amount. Subsequent to the performance period, the earned awards were subject to an add itional time-vesting period. This resulted in a graded vesting schedule for the cash portion of up to two years, while the SARs portion cliff - vests two years after the end of performance period. The cash portion of the awards expensed in 2015 , 2014 and 2013 totaled approximately $ 19 million, $ 57 million and $ 249 million, respectively. All payments r emaining under these awards were made in January 2016. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2015 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 20. EMPLOYEE BENEFITS Pension Plans We offer various defined benefit plans to eligible employees. The U.S. AIG R etirement P lan (the qualified plan) is a noncon tributory defined benefit plan that is subject to the provisions of ERISA. U.S. salaried employees who are employed by a participating company and who have completed 12 months of continuous service are eligible to participate in the plan. Effective April 1, 2012, the qualified plan was conv erted to a cash balance formula comprised of pay credits based on six percent of a plan participant’s annual compensation (subject to IRS limitations) and annual interest credits. In addition, employees can take their vested benefits when they leave AIG as a lump sum or an annuity option after completing at least three years of service. However, employees satisfying certain age and service requirements (i.e. grandfathered employees) remain covered under the old plan formula , which is based upon a percentag e of final average compensation multiplied by years of credited service, up to 44 years. Grandfathered employees will receive the higher of the benefits under the cash balance or final average pay formula at retirement. Non-U.S. defined benefit plans are generally either based on the employee’s years of credited service and compensation in the years preceding retirement or on points accumulated based on the employee’s job grade and other factors during each year of service. In the U.S. we also sponsor sev eral non-qualified unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by the qualified plan. These include the AIG Non-Qualified Retirement Income Plan (AIG NQRIP), which provid es a benefit equal to the reduction in benefits under the qualified plan as a result of federal tax limitations on compensation and benefits payable, and the Supplemental Executive Retirement Plan (SERP), which provides additional retirement benefits to de signated executives. Under the SERP, an annual benefit accrues at a percentage of final average pay multiplied by each year of credited service, not greater than 60 percent of final average pay, reduced by any benefits from the current and any predecessor retirement plans (including the AIG NQRIP), Social Security, and any benefits accrued under a Company sponsored foreign deferred compensation plan. Plan Freeze On August 27, 2015, we amended the qualified plan, the AIG NQRIP and the SERP, to freeze benefit accruals effective January 1, 2016. Consequently, these plans were closed to new participants and current participants ceased earning additional benefits as of December 31, 2015. However, interest credits continue to accrue on the existing cash bal ance accounts and participants are continuing to accrue years of service for purposes of vesting and early retirement eligibility and subsidies as they continue to be employed by AIG. Postretirement Plans We also provide postretirement medical care and life insurance benefits in the U.S. and in certain non-U.S. countries. Eligibility in the various plans is generally based upon completion of a specified period of eligible service and attaining a specified a ge. Overseas, benefits vary by geographic location. U.S. postretirement medical and life insurance benefits are based upon the employee attaining the age of 55 and having a minimum of ten years of service. Eligible employees who have medical coverage can e nroll in retiree medical upon termination of employment. Medical benefits are contributory, while the life insurance benefits are generally non-contributory. Retiree medical contributions vary from none for pre-1989 retirees to actual premium payments redu ced by certain subsidies for post-1992 retirees. These contributions are subject to adjustment annually. Other cost sharing features of the medical plan include deductibles, coinsurance and Medicare coordination. Effective April 1, 2012, the retiree medica l employer subsidy for the AIG Postretirement plan was eliminated for employees who were not grandfathered. Additionally, new employees hired after December 31, 2012 are not eligible for retiree life insurance. The following table presents the funded stat us of the plans reconciled to the amount reported in the Consolidated Balance Sheets. The measurement date for most of the non-U.S. defined benefit pension and postretirement plans is November 30, consistent with the fiscal year end of the sponsoring compa nies. For all other plans, measurement occurs as of December 31. As of or for the Years Ended Pension Postretirement (a) December 31, U.S. Plans (b) Non-U.S. Plans (b) U.S. Plans Non-U.S. Plans (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Change in projected benefit obligation: Benefit obligation, beginning of year $ 5,769 $ 4,882 $ 1,099 $ 1,072 $ 229 $ 217 $ 64 $ 52 Service cost 192 173 43 42 5 4 3 2 Interest cost 220 228 25 29 8 9 3 2 Actuarial (gain) loss (423) 780 (16) 114 (23) 10 9 11 Benefits paid: AIG assets (17) (15) (9) (15) (11) (11) (1) (1) Plan assets (285) (279) (24) (24) - - - - Plan amendment (132) - 24 (1) - - - - Settlements - - (15) (9) - - - - Foreign exchange effect - - (67) (107) - - (3) (2) Acquisitions - - 72 - - - - - Other - - 14 (2) - - - - Projected benefit obligation, end of year $ 5,324 $ 5,769 $ 1,146 $ 1,099 $ 208 $ 229 $ 75 $ 64 Change in plan assets: Fair value of plan assets, beginning of year $ 4,111 $ 4,024 $ 708 $ 738 $ - $ - $ - $ - Actual return on plan assets, net of expenses (8) 266 47 71 - - - - AIG contributions 558 115 62 67 11 11 1 1 Benefits paid: AIG assets (17) (15) (9) (15) (11) (11) (1) (1) Plan assets (285) (279) (24) (24) - - - - Settlements - - (15) (8) - - - - Foreign exchange effect - - (44) (75) - - - - Acquisitions - - 35 - - - - - Other - - 13 (46) - - - - Fair value of plan assets, end of year $ 4,359 $ 4,111 $ 773 $ 708 $ - $ - $ - $ - Funded status, end of year $ (965) $ (1,658) $ (373) $ (391) $ (208) $ (229) $ (75) $ (64) Amounts recognized in the balance sheet: Assets $ - $ - $ 46 $ 46 $ - $ - $ - $ - Liabilities (965) (1,658) (419) (437) (208) (229) (75) (64) Total amounts recognized $ (965) $ (1,658) $ (373) $ (391) $ (208) $ (229) $ (75) $ (64) Pre-tax amounts recognized in Accumulated other comprehensive income: Net gain (loss) $ (1,324) $ (1,667) $ (161) $ (227) $ 13 $ (9) $ (16) $ (8) Prior service (cost) credit - 200 (16) 11 13 24 - 1 Total amounts recognized $ (1,324) $ (1,467) $ (177) $ (216) $ 26 $ 15 $ (16) $ (7) (a) We do not currently fund postretirement benefits. (b) Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $ 299 million and $ 325 million for the U.S. and $ 199 million and $ 295 million for the non-U.S. at December 31, 2015 and 2014 , respectively. The following table presents the accumulated benefit obligations for U.S. and n on-U.S. pension b enefit plans: At December 31, (in millions) 2015 2014 U.S. pension benefit plans $ 5,324 $ 5,601 Non-U.S. pension benefit plans $ 1,109 $ 1,040 Defined benefit plan obligations in which the projected benefit obligation was in excess of the related plan assets and the accumulated benefit obligation was in excess of the related plan assets were as follows: At December 31, PBO Exceeds Fair Value of Plan Assets ABO Exceeds Fair Value of Plan Assets U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ 5,324 $ 5,769 $ 999 $ 843 $ 5,324 $ 5,769 $ 912 $ 757 Accumulated benefit obligation 5,324 5,601 896 746 5,324 5,601 889 740 Fair value of plan assets 4,359 4,111 506 342 4,359 4,111 497 329 The following table presents the components of net periodic benefit cost with respect to pension s and other postretirement benefit s : Pension Postretirement U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 Components of net periodic benefit cost: Service cost $ 192 $ 173 $ 205 $ 43 $ 42 $ 47 $ 5 $ 4 $ 5 $ 3 $ 2 $ 3 Interest cost 220 228 201 25 29 29 8 9 8 3 2 2 Expected return on assets (295) (288) (257) (25) (22) (19) - - - - - - Amortization of prior service credit (22) (33) (33) (2) (3) (3) (11) (11) (11) (1) - - Amortization of net loss 92 42 138 9 7 13 - - 1 - - - Curtailment (gain) loss (179) - - (1) 1 (1) - - - - - (2) Settlement loss - - - 1 - 5 - - - - - - Other - - - - - 1 - - - - - - Net periodic benefit cost $ 8 $ 122 $ 254 $ 50 $ 54 $ 72 $ 2 $ 2 $ 3 $ 5 $ 4 $ 3 Total recognized in Accumulated other comprehensive income (loss) $ 143 $ (793) $ 823 $ 38 $ (40) $ 103 $ 12 $ (21) $ 30 $ (9) $ (11) $ 16 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 135 $ (915) $ 569 $ (12) $ (94) $ 31 $ 10 $ (23) $ 27 $ (14) $ (15) $ 13 The estimated net loss and prior service credit that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $ 32 million and $ 1 million, respectively, for our combined defined benefit pension plans. For the defined benefit postretirement plans, the estimated amortization from Accumulated other comprehensive income for net loss and prior service credit that will be amortized into net period ic benefit cost over the next fiscal year is a $ 9 million credit in the aggregate. At the end of 2015, we changed the method used to measure interest costs for pension and postretirement benefits for our U.S. plans and largest no n-U.S. plans. Previously, we measured interest costs utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligations. For 2016, interest costs will be measured by applying the specific spot rates along the yield curve to the plans’ corresponding discounted cash flows that comprise the obligation (i.e., the Spot Rate Approach). The new method provides a more precise measurement of interest costs by aligning the timing of the plans’ discounted cash flow s to the corresp onding spot rates on the yield curve; the measurement of our pension and postretirement benefit obligations is not affected. We have accounted for this change as a change in accounting estimate, which is applied prospectively. Consequently, combined estima ted 2016 pension expense for the AIG U.S. and non-U.S. defined benefit pension plans under the Spot Rate Approach is approximately $ 86 million, which is a $52 million reduction when compared to the prior approach. A 100 basis point i ncrease in the discount rate or expected long-term rate of return would decrease the 2016 expense by approximately $ 56 million and $ 45 million, respectively, with all other items remaining the same. Conversel y, a 100 basis point decrease in the discount rate or expected long-term rate of return would increase the 2016 expense by approximately $ 71 million and $ 45 million, respectively, with all other items remaini ng the same. Assumptions The following table summarizes the weighted average assumptions used to determine the benefit obligations: Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) December 31, 2015 Discount rate 4.32 % 2.17 % 4.21 % 4.09 % Rate of compensation increase N/A % (b) 2.64 % N/A 3.43 % December 31, 2014 Discount rate 3.94 % 2.33 % 3.78 % 4.04 % Rate of compensation increase 3.40 % 2.89 % N/A 3.29 % (a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits. (b) Compensation increases are no longer applicable due to the plan freeze that became effective 1/1/2016. The following table summarizes assumed health care cost trend rates for the U.S. plans: At December 31, 2015 2014 Following year: Medical (before age 65) 6.79% 7.07% Medical (age 65 and older) 6.64% 6.75% Ultimate rate to which cost increase is assumed to decline 4.50% 4.50% Year in which the ultimate trend rate is reached: Medical (before age 65) 2027 2027 Medical (age 65 and older) 2027 2027 A one percent point change in the assumed healthcare cost trend rate would have the following effect on our postretirement benefit obligations: One Percent One Percent At December 31, Increase Decrease (in millions) 2015 2014 2015 2014 U.S. plans $ 6 $ 5 $ (4) $ (5) Non-U.S. plans $ 17 $ 12 $ (12) $ (12) Our postretirement plans provide benefits primarily in the form of defined employer contributions rather than defined employer benefits. Changes in the assumed healthcare cost trend rate have a minimal impact for U.S. plans because for post-1992 retirees, benefits are fixed dollar amounts based on service at retirement. Our non-U.S. postretirement plans are not subject to caps. The following table presents the weighted average assumptions used to determine the net periodic benefit costs: Pension Postretirement At December 31, U.S. Plans Non-U.S. Plans * U.S. Plans Non-U.S. Plans * 2015 Discount rate 3.94 % 2.33 % 3.77 % 4.04 % Rate of compensation increase 3.40 % 2.89 % N/A 3.29 % Expected return on assets 7.25 % 3.33 % N/A N/A 2014 Discount rate 4.83 % 2.77 % 4.59 % 4.77 % Rate of compensation increase 3.50 % 2.89 % N/A 3.34 % Expected return on assets 7.25 % 2.93 % N/A N/A 2013 Discount rate 3.93 % 2.62 % 3.67 % 3.45 % Rate of compensation increase 4.00 % 2.86 % N/A 3.55 % Expected return on assets 7.25 % 2.60 % N/A N/A * The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits. Discount Rate Methodology The projected benefit cash flows under the U.S. AIG Retirement Plan were discounted using the spot rates derived from the Mercer US Pension Discount Yield Curve at December 31, 2015 and 2014 , which resulted in a single discount rate that would produce the same liability at the respective measurement da tes. The discount rates were 4.32 percent at December 31, 2015 and 3.95 percent at December 31, 2014 . The methodology was consistently applied for the respective years in determining t he discount rates for the other U.S. plans. In general, the discount rates for non-U.S. pension plans were developed based on the duration o f liabilities on a plan by plan basis and were selected by reference to high quality corporate bonds in developed ma rkets or local government bonds where developed markets are not as robust or are nonexistent. The projected benefit obligation for Japan represents approximately 50 percent and 47 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2015 and 2014 , respectively. The weighted average discount rate of 0.99 percent at December 31, 2015 was selected by refere nce to the Mercer Yield Curve (Japan) based on the duration of the plans’ liabilities. The weighted average discount rate of 1.22 percent at December 31, 2014 for Japan was selected by reference to the AA rated corporate bonds reported by Rating and Investment In formation, Inc. based on the duration of the plans’ liabilities. Plan Assets The investment strategy with respect to assets relating to our U.S. and non-U.S. pension plans is designed to achieve investment returns that will provide for the benefit obligations of the plans over the long term, limit the risk of short-term funding shortfalls and maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volat ility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile applicable to each asset class. There were no shares of AIG Common Stock included in the U.S. and non-U.S. pension plans assets at December 31, 2015 or 2014 . U.S. Pension Plan The assets of the qualified plan are monitored by the investment committee and actively managed by the inv estment managers, and involves allocating the plan’s assets among approved asset classes w ithin ranges as permitted by the strategic allocation. The long-term strategic asset allocation historically has been reviewed and revised approximately every three years. Beginning in 2016, the investment strategy will focus on de-risking the Plan via reg ular monitoring. This will be implemented through liability driven investing and the adoption of the glide path approach , where the glide path defines the target allocation for the “Return-Seeking” portion of the portfolio (i.e., growth assets) based on t he funded ratio. Under this approach, the allocation to growth assets is reduced and the allocation to liability-hedging assets is increased as the Plan’s funded ratio increases in accordance with the defined glide p ath. The following table presents the a sset allocation percentage by major asset class for the U.S. qualified plan and the target allocation for 2016 based on the plan’s funded status at December 31, 2015: Target Actual Actual At December 31, 2016 2015 2014 Asset class: Equity securities 35 % 35 % 55 % Fixed maturity securities 45 % 41 % 28 % Other investments 20 % 24 % 17 % Total 100 % 100 % 100 % F or both 2015 and 2014 , t he expected long-term rate of return for the plan was 7.25 percent . The expected rate of return is an aggregation of expected returns within each asset class category, weighted for the investment mix of the assets. The combination of the expected asset return and any contributions made by us are expected to maintain the plan’s ability to meet all required benefit obligations. The expected asset return for each asset class was developed based on an approach that considers key fundamental drivers of the asset class returns in addition to historical returns, current market c onditions, asset volatility and the expectations for future market returns. Non-U.S. Pension Plans The assets of the non-U.S. pension plans are held in various trusts in multiple countries and are invested primarily in equities and fixed maturity securi ties to maximize the long-term return on assets for a given level of risk. The following table presents the asset allocation percentage by major asset class for Non-U.S. pension plans and the target allocation: Target Actual Actual At December 31, 2016 2015 2014 Asset class: Equity securities 32 % 45 % 50 % Fixed maturity securities 48 % 35 % 35 % Other investments 18 % 13 % 8 % Cash and cash equivalents 2 % 7 % 7 % Total 100 % 100 % 100 % The assets of AIG’s Japan pension plans represent approximately 54 percent and 55 percent of total non-U.S. assets at December 31, 2015 and 2014 respectively. The expected long term rate of return was 1.71 percent and 1.24 percent, for 2015 and 2014, respectively, and is evaluated by the Japanese Pension Investment Committee on a quarterly and annu al basis along with various investment managers, and is revised to achieve the optimal allocation to meet targeted funding levels if necessary. In addition, the funding policy is revised in accordance with local regulation every five years. The expected we ighted average long-term rate of return for all our non-U.S. pension plans was 3.33 percent and 2.93 percent for the years ended December 31, 2015 and 2014 , respectively. It is an aggregation of expected returns within each asset class that was generally developed based on the building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. Assets Measured at Fair Value The following table presents information about our plan assets and indicates the level of the fair value measurement based on the observability of the inputs used. The inputs and methodology used in determining the fair value of these assets are consistent with those used to measure our assets as discussed in Note 4 herein. U.S. Plans Non-U.S. Plans (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total At December 31, 2015 Assets: Cash and cash equivalents $ 239 $ - $ - $ 239 $ 49 $ - $ - $ 49 Equity securities: U.S. (a) 924 388 - 1,312 35 - - 35 International (b) 262 1 - 263 248 67 - 315 Fixed maturity securities: U.S. investment grade (c) - 1,452 9 1,461 - - - - International investment grade (c) - - - - - 190 - 190 U.S. and international high yield (d) - 322 - 322 - 66 - 66 Mortgage and other asset-backed securities (e) - 7 - 7 - - - - Other fixed maturity securities - - - - - 12 - 12 Other investment types: Hedge funds (f) - 469 31 500 - - - - Futures 2 - - 2 - - - - Real Estate - - - - 11 - - 11 Private equity (g) - - 230 230 - - - - Insurance contracts - 23 - 23 - - 95 95 Total $ 1,427 $ 2,662 $ 270 $ 4,359 $ 343 $ 335 $ 95 $ 773 At December 31, 2014 Assets: Cash and cash equivalents $ 80 $ - $ - $ 80 $ 50 $ - $ - $ 50 Equity securities: U.S. (a) 1,244 239 - 1,483 30 - - 30 International (b) 787 1 - 788 274 48 - 322 Fixed maturity securities: U.S. investment grade (c) - 768 8 776 - - - - International investment grade (c) - - - - 2 160 - 162 U.S. and international high yield (d) - 347 - 347 - 61 - 61 Mortgage and other asset-backed securities (e) - 6 - 6 - - - - Other fixed maturity securities - - - - - 10 17 27 Other investment types: Hedge funds (f) - 337 36 373 - - - - Futures 4 - - 4 - - - - Private equity (g) - - 228 228 - - - - Insurance contracts - 26 - 26 - - 56 56 Total $ 2,115 $ 1,724 $ 272 $ 4,111 $ 356 $ 279 $ 73 $ 708 (a) Includes index funds that primarily track several indices including S&P 500 and S&P Small Cap 600 as well as other actively managed accounts composed of investments in large cap companies. (b) Includes investments in companies in emerging and developed markets. (c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade. (e) Comprised primarily of investments in U.S. government agency or U.S. government sponsored agency bonds. (f) Includes funds composed of macro, event driven, long/short equity, and controlled risk hedge fund strateg ies and a separately managed controlled risk strategy. (g) Includes funds that are diverse by geography, investment strategy, sector and vintage year. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk ass ociated with investing in these securities. Based on our investment strategy, we had no significant concentrations of risks at December 31, 2015 . The U.S. pension plan holds a group annuity contract with U.S. Life, one of our subsidiaries, which totaled $ 23 million and $ 26 million at December 31, 2015 and 2014 , respectively. Changes in Level 3 fair value measurements The following table presents changes in our U.S. and non-U.S. Level 3 plan assets measured at fair value: Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2015 Beginning Unrealized Transfers Transfers at End Instruments Held (in millions) of year Gains (Losses) Purchases Sales Issuances Settlements In Out of year at End of year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 8 $ (1) $ 17 $ (15) $ - $ - $ - $ - $ 9 $ (1) Hedge funds 36 1 11 (10) - - 8 (15) 31 (1) Private equity 228 (1) 86 (83) - - - - 230 5 Total $ 272 $ (1) $ 114 $ (108) $ - $ - $ 8 $ (15) $ 270 $ 3 Non-U.S. Plan Assets: Other fixed maturity securities $ 17 $ (1) $ - $ - $ - $ - $ - $ (16) $ - $ - Insurance contracts 56 (7) 1 - - - 53 (8) 95 - Total $ 73 $ (8) $ 1 $ - $ - $ - $ 53 $ (24) $ 95 $ - Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2014 Beginning Unrealized Transfers Transfers at End Instruments Held (in millions) of year Gains (Losses) Purchases Sales Issuances Settlements In Out of year at End of year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 9 $ 2 $ 18 $ (21) $ - $ - $ - $ - $ 8 $ 1 Hedge funds 35 3 15 (32) - - 15 - 36 (1) Private equity 248 11 73 (104) - - - - 228 10 Total $ 292 $ 16 $ 106 $ (157) $ - $ - $ 15 $ - $ 272 $ 10 Non-U.S. Plan Assets: Other fixed maturity securities $ 19 $ - $ - $ (2) $ - $ - $ - $ - $ 17 $ - Insurance contracts 44 9 3 - - - - - 56 - Total $ 63 $ 9 $ 3 $ (2) $ - $ - $ - $ - $ 73 $ - Transfers of Level 1 and Level 2 Assets Our policy is to record transfers of assets between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. We had no transfers between Level 1 and Level 2 during the years ended December 31, 2015 and 2014 . Transfers of Level 3 Assets We record transfers of assets into or out of Level 3 at their fair values as of the end of each reporting period, consistent with the date of the determinat ion of fair value. During the year ended December 31, 2015 , we transferred certain investments in hedge funds into Level 3 as a result of limited market activity due to fund-imposed redemption restrictions. Expected Cash Flows Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amo unt would be subject to an excise tax and may not be deductible under the Internal Revenue Code. There are no minimum required cash contributions in 2016 for the AIG Retirement Plan. SERP, AIG NQRIP, and postretirement plan payments are deductible when p aid to participants. Our annual pension contribution in 2016 is expected to be approximately $ 67 million for our U.S. and non-U.S. plans. These estimates are subject to change, since contribution decisions are affected by various factors including our liquidity, market performance and management’s discretion. The expected future b enefit payments, net of participants’ contributions, with respect to the defin ed benefit pension plans and other postretirement benefit plans, are as follows: Pension Postretirement U.S. Non-U.S. U.S. Non-U.S. (in millions) Plans Plans Plans Plans 2016 $ 759 $ 36 $ 14 $ 1 2017 310 38 15 1 2018 323 40 15 2 2019 319 46 15 2 2020 313 45 16 2 2021-2025 1,487 282 83 12 Defined Contribution Plans We sponsor several defined contribution plans for U.S. employees that provide for pre-tax salary reduction contributions by employees. The most significant plan is the AIG Incentive Savings Plan, for which the Company’s matching contribution is 100 percent of the first six percent of a participant’s contributions, subject to the IRS - imposed limitations. Our pre-tax expenses associated with these plans were $ 166 million, $ 156 million and $ 155 million in 201 5 , 201 4 and 201 3 respectively . Effective January 1, 2016, we provide participants in the AIG Incentive Savings Plan an additional fully vested, non-elective, non-discretionary Company contribution equal to 3 percent of the participant’s annual base compensation for the plan year, paid each pay period regardless of whether the participant currently contributes to the plan, and subject to the IRS-imposed limitations . |
OWNERSHIP
OWNERSHIP | 12 Months Ended |
Dec. 31, 2015 | |
OWNERSHIP | |
OWNERSHIP | 21. OWNERSHIP A Schedule 13G/A filed on February 10 , 2016 reports aggregate ownership of 80,762,613 shares, or approximately 6.5 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2015 , by various subsidiaries of Blackrock, Inc. A Schedule 13G/A filed on February 1 0 , 2016 reports aggregate ownersh ip of 67,605,730 shares, or approximately 5.5 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2015 , by The Vanguard Group, Inc. and various s ubsidiaries thereof . The calculation of ownership interest for purposes of the AIG Tax Asset Protection Plan and Article 13 of our Restated Certificate of Incorporation is different than beneficial ownership for Schedule 13G. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES | |
INCOME TAXES | 22. INCOME TAXES The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred. Years Ended December 31, (in millions) 2015 2014 2013 U.S. $ 1,950 $ 8,250 $ 8,058 Foreign 1,331 2,251 1,310 Total $ 3,281 $ 10,501 $ 9,368 The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations: Years Ended December 31, (in millions) 2015 2014 2013 Foreign and U.S. components of actual income tax expense: Foreign: Current $ 391 $ 473 $ 549 Deferred (95) 154 (442) U.S.: Current 429 115 131 Deferred 334 2,185 122 Total $ 1,059 $ 2,927 $ 360 Our a ctual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following: 2015 2014 2013 Pre-Tax Tax Percent of Pre-Tax Tax Percent of Tax Percent of Years Ended December 31, Income Expense/ Pre-Tax Income Expense/ Pre-Tax Pre-Tax Expense/ Pre-Tax (dollars in millions) (Loss) (Benefit) Income (Loss) (Loss) (Benefit) Income (Loss) Income (Benefit) Income U.S. federal income tax at statutory rate $ 3,281 $ 1,148 35.0 % $ 10,524 $ 3,683 35.0 % $ 9,518 $ 3,331 35.0 % Adjustments: Tax exempt interest (195) (5.9) (236) (2.2) (298) (3.1) Uncertain tax positions 195 5.9 (81) (0.8) 632 6.6 Reclassifications from accumulated other comprehensive income (127) (3.9) (61) (0.6) - - Non-deductible transfer pricing charges 97 3.0 86 0.8 - - Dividends received deduction (72) (2.2) (62) (0.6) (75) (0.8) Effect of foreign operations (58) (1.8) (68) (0.6) (5) (0.1) State income taxes 34 1.0 39 0.4 (21) (0.2) Other (73) (2.2) (184) (1.7) 13 0.1 Effect of discontinued operations - - 65 0.6 14 0.1 Valuation allowance: Continuing operations 110 3.4 (181) (1.7) (3,165) (33.3) Consolidated total amounts 3,281 1,059 32.3 10,524 3,000 28.5 9,518 426 4.5 Amounts attributable to discontinued operations - - - 23 73 317.4 150 66 44.3 Amounts attributable to continuing operations $ 3,281 $ 1,059 32.3 % $ 10,501 $ 2,927 27.9 % $ 9,368 $ 360 3.8 % For the year ended December 31, 201 5 , the effective tax rate on income from continuing operations was 32.3 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits of $ 195 million associated with tax exempt interest income, $ 127 million related to reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities, $ 58 million associa ted with the effect of foreign operations , and $ 109 million related to the partial completion of the Internal Revenue Service examination covering tax year 2006, partially offset by $ 324 million of tax charges and related interest associated with increases in uncertain tax positions related to cross border financing transactions, and $ 110 million related to increases in the deferred tax asset valuation allowances associated with certain forei gn jurisdictions. For the year ended December 31, 2015, our repatriation assumptions related to certain European operations changed, and related foreign earnings are now considered to be indefinitely reinvested. These earnings relate to ongoing operation s and have been reinvested in active non-U.S. business operations. Further, we do not intend to repatriate these earnings to fund U.S. operations. As a result, U.S. deferred taxes have not been provided on $ 1.8 billion of accumulated earnings, including accumulated other comprehensive income, of these non-U.S. affiliates. Potential U.S. income tax liabilities related to such earnings would be offset, in whole or in part, by allowable foreign tax credits resulti ng from foreign taxes paid to foreign j urisdictions in which such operations are located . As a result, we currently believe that any incremental U.S. income tax liabilities relating to indefinitely reinvested foreign earnings would not be significant. Deferred taxes have been provided on earnin gs of non-U.S. affiliates whose earnings are not indefinitely reinvested. For the year ended December 31, 201 4 , the effective tax rate on income from continuing operations was 27.9 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits of $ 236 m illion associated with tax exempt interest income , $ 209 million related to a decrease in the U.S. Life Insurance Companies ’ capital loss carryforward valuation allowance, $ 182 million of income excludible from gross income related to the global resolution of cer tain residential mortgage-related disputes and $ 68 million associated with the effect of foreign operations. For the year ended December 31, 2013, the effective tax rate on income from continuing operations was 3.8 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits of $ 2.8 billion re lated to a decrease in the U.S. Life Insurance Companies ’ capital loss carryforward valuation allowance, $ 396 million related to a decrease in certain other valuation allowances associated with foreign jurisdictions and $ 298 million associated with tax exempt interest income. These items were partially offset by charges of $ 632 million related to uncertain tax positions. The following table presents the components of the net deferred tax asset s (liabilities) : December 31, (in millions) 2015 2014 Deferred tax assets: Losses and tax credit carryforwards $ 18,680 $ 18,203 Basis differences on investments 4,886 4,114 Life policy reserves 353 629 Accruals not currently deductible, and other 1,003 1,804 Loss reserve discount 1,021 1,378 Loan loss and other reserves 8 152 Unearned premium reserve reduction 1,603 1,269 Flight equipment, fixed assets and intangible assets 129 28 Other 577 220 Employee benefits 1,286 1,543 Total deferred tax assets 29,546 29,340 Deferred tax liabilities: Investments in foreign subsidiaries (33) (58) Deferred policy acquisition costs (3,467) (3,003) Unrealized gains related to available for sale debt securities (3,077) (5,795) Total deferred tax liabilities (6,577) (8,856) Net deferred tax assets before valuation allowance 22,969 20,484 Valuation allowance (3,012) (1,739) Net deferred tax assets (liabilities) $ 19,957 $ 18,745 The following table presents our U.S. consolidated income tax group tax losses and credits carryforwards as of December 31, 2015 . December 31, 2015 Tax Expiration (in millions) Gross Effected Periods Net operating loss carryforwards $ 34,883 $ 12,209 2028 - 2035 Foreign tax credit carryforwards 6,853 2016 - 2024 Other carryforwards 538 Various Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis 19,600 Unrecognized tax benefit (2,523) Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis * $ 17,077 * Includes other carryforwards , e.g. general business credits, of $ 326 million on a U.S. GAAP basis. We have U.S. federal consolidated net operating loss and tax credit carryforwards of approximately $ 17.1 billion, including $ 266 million of the foreign tax credit carryforward originated in tax years 2006 and 2007. The carryforward periods for 2006 and 2 007 foreign tax credits expire in 2016 and 2017, respectively. As detailed in the Assessment of Deferred Tax Asset Valuation Allowance section of this footnote, we determined th at it is more likely than not that our U.S. federal consolidated tax attribute carryforwards will be realized prior to their expiration. Assessment of Deferred Tax Asset Valuation Allowance The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evi dence 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 realiz e 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 strategi es that would be implemented, if necessary, to protect against the loss of the deferred tax asset. In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operating loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though th e carryforward period for the foreign tax credit is shorter than for the net operating loss. Our U.S. federal consolidated income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can b e offset by the net operating loss carryforwards, only a portion (no more than 35 percent) of the U.S. taxable income of our life companies can be offset by those net operating loss carryforwards. The remaining tax liability of our life companies can be o ffset by the foreign tax credit carryforwards. Accordingly, we utilize both the net operating loss and foreign tax credit carryforwards concurrently which enables us to realize our tax attributes prior to expiration. As of December 31, 2015 , ba sed on all available evidence, it is more likely than not that the U.S. net operating loss and foreign tax credit carryforwards will be utilized prior to expiration and, thus, no valuation allowance has been established. Estimates of future taxable income, including income generated from prudent and feasible actions and tax planning strategies could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax a sset. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. For the three months ended December 31, 2015, recent changes in market conditions, in cluding rising interest rates, impacted the unrealized tax losses in the U.S. Life Insurance Companies’ available for sale portfolio, resulting in an increase to the related deferred tax asset. The deferred tax asset relates to the unrealized losses for w hich the carryforward period has not yet begun, and as such , when assessing its recoverability , we consider our ability and intent to hold the underlying securities to recovery. As of December 31, 2015, based on all available evidence, we concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses that are not more-likely-than-not to be realized. For the year ended December 31, 2015, we established $ 1.2 billion of valuation allowance associated with the unrealized tax losses in the U.S. Life Insurance Companies, all of which was allocated to other comprehensive income. During the year ended December 31, 2015, we recognized an increase of $ 110 million in our deferred tax asset valuation allowance associated with certain foreign jurisdictions, primarily attributable to factors such as cumulative losses in recent years and the inability to demonstrate profits within the specific jurisdictions over the relevant carryforward periods. The following table presents the net deferred tax assets (liabilities) at December 31, 2015 and 2014 on a U.S. GAAP basis: December 31, (in millions) 2015 2014 Net U.S. consolidated return group deferred tax assets $ 24,134 $ 24,543 Net deferred tax assets (liabilities) in accumulated other comprehensive income (2,806) (5,510) Valuation allowance (1,281) (129) Subtotal 20,047 18,904 Net foreign, state and local deferred tax assets 2,078 2,045 Valuation allowance (1,731) (1,610) Subtotal 347 435 Subtotal - Net U.S, foreign, state and local deferred tax assets 20,394 19,339 Net foreign, state and local deferred tax liabilities (437) (594) Total AIG net deferred tax assets (liabilities) $ 19,957 $ 18,745 Deferred Tax Asset Valuation Allowance of U.S. Consolidated Income Tax Group At December 31, 2015 and 2014 , our U.S. consolidated income tax group had net deferred tax assets after valuation allowance of $ 20.0 billion and $ 18.9 billion, respectively. At December 31, 2015 and 2014 , our U.S. consolidated income tax group had valuation allowances of $ 1.3 billion an d $ 129 million, respectively. Deferred Tax Liability — Foreign, State and Local At December 31, 2015 and 2014 , we had net deferred tax liabilities of $ 90 million and $ 159 million, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. At December 31, 2015 and 2014 , we had deferred tax asset valuation a llowances of $ 1.7 billion and $ 1.6 billion, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. We maintaine d these valuation allowances following our conclusion that we could not demonstrate that it was more likely than not that the related deferred tax assets will be realized. This was primarily due to factors such as cumulative losses in recent years and the inability to demonstrate profits within the specific jurisdictions over the relevant carryforward periods. Tax Examinations and Litigation We file a consolidated U.S. federal income tax return with our eligible U.S. subsidiaries. Income earned by subsidiaries operating outside the U.S. is taxed, and income tax e xpense is recorded, based on applicable U.S. and foreign law. The statute of limitations for all tax years prior to 2000 has expired for our consolidated federal income tax return. We are currently under examination for the tax years 2000 through 2010 . On March 20, 2008, we received a Statutory Notice of Deficiency (Notice) from the IRS for years 1997 to 1999. The Notice asserted that we owe additional taxes and penalties for these years primarily due to the disallowance of foreign tax credits associated wi th cross-border financing transactions. The transactions that are the subject of the Notice extend beyond the period cove red by the Notice, and the IRS ha s administratively chall enged the later periods. The IRS has also administratively challenged other cr oss-border transactions in later years . We have paid the assessed tax plus interest and penalties for 1997 to 1999. On February 26, 2009, we filed a complaint in the United States District Court for the Southern District of New York (Southern District) see king a refund of approximately $ 306 million in taxes, interest and pen alties paid with respect to the 1997 taxable year. We allege that the IRS improperly disallowed foreign tax credits and that our taxable income should be reduced as a result of the 2005 restatement of our consolidated financial statements. We also filed an administrative refund claim on September 9, 2010 for our 1998 and 1999 tax years. On August 1, 2012, we filed a motion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions. On March 29, 2013 , the Southern District denied our motion. On March 17, 2014, the U.S. Court of Appeals for the Second Circuit (the Second Circuit) granted our petiti on for an immediate appeal of the partial summary judgment decision. On September 9, 2015, the Second Circuit affirmed the decision of the Southern District. On October 13, 2015, we filed a petition for a writ of certiorari to the U.S Supreme Court. If th e U.S. Supreme Court does not grant certiorari the case will be remanded back to the Southern District for trial. We will vigorously defend our position and continue to believe that we have adequate reserves for any liability that could result from these government 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 The following table pr esents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits: Years Ended December 31, (in millions) 2015 2014 2013 Gross unrecognized tax benefits, beginning of year $ 4,395 $ 4,340 $ 4,385 Increases in tax positions for prior years 162 91 680 Decreases in tax positions for prior years (209) (60) (796) Increases in tax positions for current year - 10 43 Lapse in statute of limitations (4) (6) (20) Settlements (13) - (2) Activity of discontinued operations - 20 50 Gross unrecognized tax benefits, end of year $ 4,331 $ 4,395 $ 4,340 At December 31, 2015 , 2014 and 2013 , our unrecognized tax benefits, excluding interest and penalties, were $ 4.3 billion, $ 4.4 billion and $ 4.3 billion, respectively. The activity includes increases for amounts associated with cross border financing transactions partially offset by certain benefits realized due to the partial complet ion of the Internal Revenue Service examination covering tax year 200 6 . At December 31, 2015 , 2014 and 2013 , our unrecognized tax benefits related to tax positions that, if recognized, would not affect the effective tax rate because they relate to such factors as the timing, rather than the permissibility, of the deduction were $ 0.1 billion, $ 0.3 billion and $ 0.1 billion, respectively. Accordingly, at December 31, 2015 , 2014 and 2013 , the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $ 4.2 billion, $ 4.1 billion and $ 4.2 billion, respectively. Interest and penalties related to unrecognized tax ben efits are recog nized in income tax expense. At December 31, 2015 and 2014 , we had accrued liabilities of $ 1.2 billion and $ 1.1 billion , respectively for the payment of interest (net of the federal benefit) and penalties. For the years ended December 31, 2015 , 2014 and 2013 , we accrued expense of $ 156 million, $ 21 million and $ 142 million, respectively, for the payment of interest (net of the federal benefit) and penalties. The interest increase from December 31, 201 4 was primarily due to increases in amounts associated with cross border financing transactions . We regularly evaluate adjustments proposed by taxing authorities. At December 31, 2015 , such proposed adjustments would not have res ulted 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. Listed below are the tax years that remain subje ct to examination by major tax jurisdictions: At December 31, 2015 Open Tax Years Major Tax Jurisdiction United States 2000-2014 Australia 2011-2014 France 2013-2014 Japan 2009-2014 Korea 2010-2014 Singapore 2011-2014 United Kingdom 2013-2014 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 23. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Consolidated Statements of Income (Loss) Three Months Ended March 31, June 30, September 30, December 31, (dollars in millions, except per share data) 2015 2014 2015 2014 2015 2014 2015 2014 Total revenues $ 15,975 $ 16,163 $ 15,699 $ 16,136 $ 12,822 $ 16,697 $ 13,831 $ 15,410 Income (loss) from continuing operations before income taxes * 3,776 2,273 2,552 4,480 (115) 3,019 (2,932) 729 Income (loss) from discontinued operations, net of income taxes 1 (47) 16 30 (17) 2 - (35) Net income (loss) 2,477 1,612 1,791 3,036 (197) 2,201 (1,849) 675 Net income (loss) from continuing operations attributable to noncontrolling interests 9 3 (9) (37) 34 9 (8) 20 Net income (loss) attributable to AIG * $ 2,468 $ 1,609 $ 1,800 $ 3,073 $ (231) $ 2,192 $ (1,841) $ 655 Earnings (loss) per common share attributable to AIG common shareholders: Basic: Income (loss) from continuing operations $ 1.81 $ 1.13 $ 1.34 $ 2.11 $ (0.17) $ 1.54 $ (1.50) $ 0.50 Income (loss) from discontinued operations $ - $ (0.03) $ 0.01 $ 0.02 $ (0.01) $ - $ - $ (0.03) Diluted: Income (loss) from continuing operations $ 1.78 $ 1.12 $ 1.31 $ 2.08 $ (0.17) $ 1.52 $ (1.50) $ 0.49 Income (loss) from discontinued operations $ - $ (0.03) $ 0.01 $ 0.02 $ (0.01) $ - $ - $ (0.03) Weighted average shares outstanding: Basic 1,365,951,690 1,459,249,393 1,329,157,366 1,442,397,111 1,279,072,748 1,419,239,774 1,226,880,632 1,391,790,420 Diluted 1,386,263,549 1,472,510,813 1,365,390,431 1,464,676,330 1,279,072,748 1,442,067,842 1,226,880,632 1,412,162,456 Noteworthy quarterly items - income (expense): Other-than-temporary impairments (128) (59) (164) (55) (273) (50) (106) (83) Net (gain) loss on sale of divested businesses 6 (4) 1 (2,174) 3 (18) 1 (1) Federal and foreign valuation allowance for deferred tax assets 93 65 (40) 75 8 21 49 20 Net gain (loss) on extinguishment of debt (68) (238) (342) (34) (346) (742) - (1,268) Reserve strengthening charges 24 - 317 - 191 - 3,587 - Restructuring and other costs - - - - 274 - 222 - * For the three months ended December 31, 2015, we recorded out of period adjustments related to prior periods that decreased Net income attributable to AIG by $193 million, decreased AIG’s Income from continuing operations before income taxes by $308 million and decreased pre-tax operating income by $122 million. The out of period adjustments primarily related to impairments of Other invested assets and changes in Liability for unpaid losses and loss adjustment expenses and income tax liabilities. Ha d these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the three-month periods ended September 30, 2015, June 30, 2015 and March 31, 2015 would have decreased by $36 mil lion, increased by $15 million and decreased by $16 million, respectively. Net income attributable to AIG for the three-month periods ended December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014 would have increased by $25 million, decrea sed by $61 million, increased by $13 million and decreased by $28 million, respectively. |
INFORMATION PROVIDED IN CONNECT
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 12 Months Ended |
Dec. 31, 2015 | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 24. 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 December 31, 2015 Assets: Short-term investments $ 4,042 $ - $ 9,637 $ (3,547) $ 10,132 Other investments (a) 7,425 - 320,797 - 328,222 Total investments 11,467 - 330,434 (3,547) 338,354 Cash 34 116 1,479 - 1,629 Loans to subsidiaries (b) 35,927 - 578 (36,505) - Investment in consolidated subsidiaries (b) 51,151 30,239 - (81,390) - Other assets, including deferred income taxes 23,398 260 135,690 (2,388) 156,960 Total assets $ 121,977 $ 30,615 $ 468,181 $ (123,830) $ 496,943 Liabilities: Insurance liabilities $ - $ - $ 271,645 $ - $ 271,645 Long-term debt 19,876 706 8,768 - 29,350 Other liabilities, including intercompany balances (a) 11,869 201 99,777 (6,109) 105,738 Loans from subsidiaries (b) 574 3 35,928 (36,505) - Total liabilities 32,319 910 416,118 (42,614) 406,733 Total AIG shareholders’ equity 89,658 29,705 51,511 (81,216) 89,658 Non-redeemable noncontrolling interests - - 552 - 552 Total equity 89,658 29,705 52,063 (81,216) 90,210 Total liabilities and equity $ 121,977 $ 30,615 $ 468,181 $ (123,830) $ 496,943 December 31, 2014 Assets: Short-term investments $ 6,078 $ - $ 6,231 $ (1,066) $ 11,243 Other investments (a) 11,415 - 333,108 - 344,523 Total investments 17,493 - 339,339 (1,066) 355,766 Cash 26 91 1,641 - 1,758 Loans to subsidiaries (b) 31,070 - 779 (31,849) - Investment in consolidated subsidiaries (b) 62,811 35,850 - (98,661) - Other assets, including deferred income taxes 23,835 2,305 141,826 (9,909) 158,057 Total assets $ 135,235 $ 38,246 $ 483,585 $ (141,485) $ 515,581 Liabilities: Insurance liabilities $ - $ - $ 270,615 $ - $ 270,615 Long-term debt 21,190 820 9,207 - 31,217 Other liabilities, including intercompany balances (a) 6,196 2,314 108,189 (10,222) 106,477 Loans from subsidiaries (b) 951 - 30,898 (31,849) - Total liabilities 28,337 3,134 418,909 (42,071) 408,309 Total AIG shareholders’ equity 106,898 35,112 64,302 (99,414) 106,898 Non-redeemable noncontrolling interests - - 374 - 374 Total equity 106,898 35,112 64,676 (99,414) 107,272 Total liabilities and equity $ 135,235 $ 38,246 $ 483,585 $ (141,485) $ 515,581 (a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment. (b) Eliminated in consolidation. Condensed Consolidating Statements of Income (Loss) American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2015 Revenues: Equity in earnings of consolidated subsidiaries * $ 3,954 $ 1,936 $ - $ (5,890) $ - Other income 88 - 58,953 (714) 58,327 Total revenues 4,042 1,936 58,953 (6,604) 58,327 Expenses: Interest expense 1,049 58 302 (128) 1,281 Loss on extinguishment of debt 703 - 46 7 756 Other expenses 1,178 44 52,374 (587) 53,009 Total expenses 2,930 102 52,722 (708) 55,046 Income (loss) from continuing operations before income tax expense (benefit) 1,112 1,834 6,231 (5,896) 3,281 Income tax expense (benefit) (1,086) (73) 2,218 - 1,059 Income (loss) from continuing operations 2,198 1,907 4,013 (5,896) 2,222 Income (loss) from discontinued operations, net of income taxes (2) - 2 - - Net income (loss) 2,196 1,907 4,015 (5,896) 2,222 Less: Net income from continuing operations attributable to noncontrolling interests - - 26 - 26 Net income (loss) attributable to AIG $ 2,196 $ 1,907 $ 3,989 $ (5,896) $ 2,196 Year Ended December 31, 2014 Revenues: Equity in earnings of consolidated subsidiaries * $ 9,450 $ 3,519 $ - $ (12,969) $ - Other income 1,658 - 63,157 (409) 64,406 Total revenues 11,108 3,519 63,157 (13,378) 64,406 Expenses: Interest expense 1,507 100 243 (132) 1,718 Loss on extinguishment of debt 2,248 - 85 (51) 2,282 Other expenses 1,546 203 48,315 (159) 49,905 Total expenses 5,301 303 48,643 (342) 53,905 Income (loss) from continuing operations before income tax expense (benefit) 5,807 3,216 14,514 (13,036) 10,501 Income tax expense (benefit) (1,735) (103) 4,817 (52) 2,927 Income (loss) from continuing operations 7,542 3,319 9,697 (12,984) 7,574 Loss from discontinued operations, net of income taxes (13) - (37) - (50) Net income (loss) 7,529 3,319 9,660 (12,984) 7,524 Less: Net income (loss) from continuing operations attributable to noncontrolling interests: - - (5) - (5) Net income (loss) attributable to AIG $ 7,529 $ 3,319 $ 9,665 $ (12,984) $ 7,529 Year Ended December 31, 2013 Revenues: Equity in earnings of consolidated subsidiaries * $ 7,638 $ 4,075 $ - $ (11,713) $ - Other income 1,487 1 67,698 (312) 68,874 Total revenues 9,125 4,076 67,698 (12,025) 68,874 Expenses: Other interest expense 1,938 126 233 (155) 2,142 Loss on extinguishment of debt 580 - 71 - 651 Other expenses 1,520 75 55,277 (159) 56,713 Total expenses 4,038 201 55,581 (314) 59,506 Income (loss) from continuing operations before income tax expense (benefit) 5,087 3,875 12,117 (11,711) 9,368 Income tax expense (benefit) (4,012) (58) 4,454 (24) 360 Income (loss) from continuing operations 9,099 3,933 7,663 (11,687) 9,008 Income (loss) from discontinued operations, net of income taxes (14) - 98 - 84 Net income (loss) 9,085 3,933 7,761 (11,687) 9,092 Less: Net income from continuing operations attributable to noncontrolling interests - - 7 - 7 Net income (loss) attributable to AIG $ 9,085 $ 3,933 $ 7,754 $ (11,687) $ 9,085 * 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 Year Ended December 31, 2015 Net income (loss) $ 2,196 $ 1,907 $ 4,015 $ (5,896) $ 2,222 Other comprehensive income (loss) (8,080) 2,320 54,757 (57,083) (8,086) Comprehensive income (loss) (5,884) 4,227 58,772 (62,979) (5,864) Total comprehensive income attributable to noncontrolling interests - - 20 - 20 Comprehensive income (loss) attributable to AIG $ (5,884) $ 4,227 $ 58,752 $ (62,979) $ (5,884) Year Ended December 31, 2014 Net income (loss) $ 7,529 $ 3,319 $ 9,660 $ (12,984) $ 7,524 Other comprehensive income (loss) 4,257 2,794 3,235 (6,029) 4,257 Comprehensive income (loss) 11,786 6,113 12,895 (19,013) 11,781 Total comprehensive loss attributable to noncontrolling interests - - (5) - (5) Comprehensive income (loss) attributable to AIG $ 11,786 $ 6,113 $ 12,900 $ (19,013) $ 11,786 Year Ended December 31, 2013 Net income (loss) $ 9,085 $ 3,933 $ 7,761 $ (11,687) $ 9,092 Other comprehensive income (loss) (6,214) (4,689) (6,719) 11,385 (6,237) Comprehensive income (loss) 2,871 (756) 1,042 (302) 2,855 Total comprehensive loss attributable to noncontrolling interests - - (16) - (16) Comprehensive income (loss) attributable to AIG $ 2,871 $ (756) $ 1,058 $ (302) $ 2,871 Condensed Consoli dat ing Statements of Cash Flows American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries * Eliminations * AIG Year Ended December 31, 2015 Net cash (used in) provided by operating activities $ 4,443 $ 2,314 $ 1,112 $ (4,992) $ 2,877 Cash flows from investing activities: Sales of investments 7,767 - 69,726 (4,877) 72,616 Purchase of investments (1,881) - (68,261) 4,877 (65,265) Loans to subsidiaries – net (83) - 367 (284) - Contributions to subsidiaries 565 - - (565) - Net change in restricted cash - - 1,457 - 1,457 Net change in short-term investments 2,300 - (1,137) - 1,163 Other, net (175) - (1,334) - (1,509) Net cash provided by investing activities 8,493 - 818 (849) 8,462 Cash flows from financing activities: Issuance of long-term debt 5,540 - 1,327 - 6,867 Repayments of long-term debt (6,504) (114) (3,187) - (9,805) Purchase of Common Stock (10,691) - - - (10,691) Intercompany loans - net (201) 3 (86) 284 - Cash dividends paid (1,028) (2,178) (2,814) 4,992 (1,028) Other, net (44) - 2,707 565 3,228 Net cash (used in) financing activities (12,928) (2,289) (2,053) 5,841 (11,429) Effect of exchange rate changes on cash - - (39) - (39) Change in cash 8 25 (162) - (129) Cash at beginning of year 26 91 1,641 - 1,758 Change in cash of businesses held for sale - - - - - Cash at end of year $ 34 $ 116 $ 1,479 $ - $ 1,629 Year Ended December 31, 2014 Net cash (used in) provided by operating activities $ 9,316 $ 6,155 $ 8,979 $ (19,443) $ 5,007 Cash flows from investing activities: Sales of investments 3,036 - 65,108 (2,040) 66,104 Purchase of investments (1,051) - (59,099) 2,040 (58,110) Loans to subsidiaries – net 446 - 169 (615) - Contributions to subsidiaries (148) - 296 (148) - Net change in restricted cash (501) - (946) - (1,447) Net change in short-term investments 5,792 - 2,968 - 8,760 Other, net (141) - (882) - (1,023) Net cash (used in) provided by investing activities 7,433 - 7,614 (763) 14,284 Cash flows from financing activities: Issuance of long-term debt 3,247 - 3,440 - 6,687 Repayments of long-term debt (14,468) (477) (1,215) - (16,160) Intercompany loans - net 110 (280) (445) 615 - Purchase of common stock (4,902) - - - (4,902) Cash dividends paid to shareholders (712) (5,358) (14,085) 19,443 (712) Other, net (28) - (4,821) 148 (4,701) Net cash (used in) provided by financing activities (16,753) (6,115) (17,126) 20,206 (19,788) Effect of exchange rate changes on cash - - (74) - (74) Change in cash (4) 40 (607) - (571) Cash at beginning of year 30 51 2,160 - 2,241 Reclassification to assets held for sale - - 88 - 88 Cash at end of year $ 26 $ 91 $ 1,641 $ - $ 1,758 Year Ended December 31, 2013 Net cash (used in) provided by operating activities $ 6,422 $ 4,488 $ 7,385 $ (12,430) $ 5,865 Cash flows from investing activities: Sales of investments 1,425 - 78,868 (3,199) 77,094 Purchase of investments (5,506) - (75,580) 3,199 (77,887) Loans to subsidiaries – net 3,660 - 395 (4,055) - Contributions to subsidiaries (2,081) (1) - 2,082 - Net change in restricted cash 493 - 751 - 1,244 Net change in short-term investments 2,361 - 5,481 - 7,842 Other, net 130 - (1,324) - (1,194) Net cash (used in) provided by investing activities 482 (1) 8,591 (1,973) 7,099 Cash flows from financing activities: Issuance of long-term debt 2,015 - 3,220 - 5,235 Repayments of long-term debt (7,439) (245) (6,513) - (14,197) Intercompany loans - net (123) (273) (3,659) 4,055 - Purchase of common stock (597) - - - (597) Cash dividends paid to shareholders (294) (3,991) (8,439) 12,430 (294) Other, net (517) - 694 (2,082) (1,905) Net cash (used in) provided by financing activities (6,955) (4,509) (14,697) 14,403 (11,758) Effect of exchange rate changes on cash - - (92) - (92) Change in cash (51) (22) 1,187 - 1,114 Cash at beginning of year 81 73 997 - 1,151 Change in cash of businesses held for sale - - (24) - (24) Cash at end of year $ 30 $ 51 $ 2,160 $ - $ 2,241 * The Other Subsidiaries and Reclassifications and Eliminations amounts were disclosed together in prior periods. The new presentation had no impact on the Consolidated AIG amounts. Supplementary Disclosure of Condensed Consolidating Cash Flow Information American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries * Eliminations * AIG Cash (paid) received during the year ended December 31, 2015 for: Interest: Third party $ (1,030) $ (59) $ (279) $ - $ (1,368) Intercompany - - - - - Taxes: Income tax authorities $ (11) $ - $ (500) $ - $ (511) Intercompany 829 - (829) - - Cash (paid) received during the year ended December 31, 2014 for: Interest: Third party $ (1,624) $ (87) $ (1,656) $ - $ (3,367) Intercompany 5 (7) 2 - - Taxes: Income tax authorities $ (18) $ - $ (719) $ - $ (737) Intercompany 1,172 - (1,172) - - Cash (paid) received during the year ended December 31, 2013 for: Interest: Third party * $ (1,963) $ (111) $ (1,782) $ - $ (3,856) Intercompany (12) (21) 33 - - Taxes: Income tax authorities $ (161) $ - $ (635) $ - $ (796) Intercompany 288 (78) (210) - - * The Other Subsidiaries and Reclassifications and Eliminations amounts were disclosed together in prior periods. The new presentation had no impact on the Consolidated AIG amounts. American International Group, Inc . (As Guarantor) supplementary disclosure of non-cash activities: Years Ended December 31, (in millions) 2015 2014 2013 Intercompany non-cash financing and investing activities: Capital contributions to subsidiaries through forgiveness of loans $ - $ - $ 341 Dividends received in the form of securities 2,326 3,088 - Other capital contributions - net 494 2,457 523 Return of capital * - 4,836 - Non-cash financing/investing activities: Consideration received from sale of shares of AerCap 500 - - * Includes $ 4.8 billion return of capital from AIG Capital Corporation related to the sale of ILFC. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 25. Subsequent events Dividends Declared and Share Repurchase Authorization On February 11, 2016, our Board of Directors d eclared a cash dividend on AIG Common Stock of $0. 32 per share, pay able on March 28, 2016, to share holders of record on March 14, 2016. On February 11, 2016, our Board of Directors a uthorized an additional increase to the repurchase authorization of AIG Common Stock of $5.0 billion , resulting in an aggregate remaining authorization on such date of appr oximately $5.8 billion. |
Schedule I Summary of Investmen
Schedule I Summary of Investments - Other than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Schedule I Summary of Investments - Other than Investments in Related Parties | |
Schedule I Summary of Investments - Other than Investments in Related Parties | Summary of Investments — Other than Investments in Related Parties Schedule I Amount at At December 31, 2015 which shown in (in millions) Cost (a) Fair Value the Balance Sheet Fixed maturities: U.S. government and government sponsored entities $ 5,066 $ 5,212 $ 5,212 Obligations of states, municipalities and political subdivisions 26,079 27,399 27,399 Non-U.S. governments 17,803 18,245 18,245 Public utilities 17,713 18,646 18,646 All other corporate debt securities 117,835 119,377 119,377 Mortgage-backed, asset-backed and collateralized 73,256 76,148 76,148 Total fixed maturity securities 257,752 265,027 265,027 Equity securities and mutual funds: Common stock: Public utilities 5 5 5 Banks, trust and insurance companies 1,493 2,835 2,835 Industrial, miscellaneous and all other 336 482 482 Total common stock 1,834 3,322 3,322 Preferred stock 19 22 22 Mutual funds 447 492 492 Total equity securities and mutual funds 2,300 3,836 3,836 Mortgage and other loans receivable, net of allowance 29,565 30,344 29,565 Other invested assets 29,155 29,067 29,794 Short-term investments, at cost (approximates fair value) 10,132 10,132 10,132 Derivative assets (b) 1,309 1,309 1,309 Total investments $ 330,213 $ 339,715 $ 339,663 (a) Original cost of equity securities and fixed maturities is reduced by other-than-temporary impairment charges, and, as to fixed maturit y securities , reduced by repayments and adjusted for amortization of premiums or accr etion of discounts. (b) The balance is reported in Other Assets. |
Schedule II Condensed Financial
Schedule II Condensed Financial Information of Registrant - Parent Company Only | 12 Months Ended |
Dec. 31, 2015 | |
Schedule II Condensed Financial Information of Registrant - Parent Company Only | |
Schedule II Condensed Financial Information of Registrant - Parent Company Only | Condensed Financial Information of Registrant Balance Sheets — Parent Company Only Schedule II December 31, (in millions) 2015 2014 Assets: Short-term investments $ 4,042 $ 6,078 Other investments 7,425 11,415 Total investments 11,467 17,493 Cash 34 26 Loans to subsidiaries * 35,927 31,070 Due from affiliates - net * 1,967 3,561 Intercompany tax receivable * 3,234 - Deferred income taxes 17,564 18,309 Investments in consolidated subsidiaries * 51,151 62,811 Other assets 633 1,965 Total assets $ 121,977 $ 135,235 Liabilities: Due to affiliate * $ 4,059 $ - Intercompany tax payable * 3,916 343 Deferred tax liabilities 9 - Notes and bonds payable 17,136 15,821 Junior subordinated debt 1,337 2,466 MIP notes payable 1,372 2,870 Series AIGFP matched notes and bonds payable 31 33 Loans from subsidiaries * 574 951 Other liabilities (includes intercompany derivative liabilities of $144 in 2015 and $275 in 2014) 3,885 5,853 Total liabilities 32,319 28,337 AIG Shareholders’ equity: Common stock 4,766 4,766 Treasury stock (30,098) (19,218) Additional paid-in capital 81,510 80,958 Retained earnings 30,943 29,775 Accumulated other comprehensive income 2,537 10,617 Total AIG shareholders’ equity 89,658 106,898 Total liabilities and equity $ 121,977 $ 135,235 * Eliminated in consolidation. See Accompanying Notes to Condensed Financial Information of Registrant. Condensed Financial Information of Registrant (Continued) Statements of Income — Parent Company Only Schedule II Years Ended December 31, (in millions) 2015 2014 2013 Revenues: Equity in undistributed net income (loss) of consolidated subsidiaries * $ (2,929) $ (5,573) $ (2,226) Dividend income from consolidated subsidiaries * 6,883 15,023 9,864 Interest income 342 305 387 Net realized capital gains (losses) (587) 8 169 Other income 333 1,345 931 Expenses: Interest expense 1,049 1,507 1,938 Net loss on extinguishment of debt 703 2,248 580 Other expenses 1,178 1,546 1,520 Income from continuing operations before income tax expense (benefit) 1,112 5,807 5,087 Income tax benefit (1,086) (1,735) (4,012) Net income 2,198 7,542 9,099 Loss from discontinued operations (2) (13) (14) Net income attributable to AIG Parent Company $ 2,196 $ 7,529 $ 9,085 * Eliminated in consolidation. See Accompanying Notes to Condensed Financial Information of Registrant. Condensed Financial Information of Registrant (Continued) Statements of Comprehensive Income — Parent Company Only Schedule II Years Ended December 31, (in millions) 2015 2014 2013 Net income $ 2,196 $ 7,529 $ 9,085 Other comprehensive income (8,080) 4,257 (6,214) Total comprehensive income attributable to AIG $ (5,884) $ 11,786 $ 2,871 See accompanying Notes to Condensed Financial Information of Registrant Condensed Financial Information of Registrant (Continued) Statements of Cash Flows — Parent Company Only Schedule II Years Ended December 31, (in millions) 2015 2014 2013 Net cash provided by operating activities $ 4,443 $ 9,316 $ 6,422 Cash flows from investing activities: Sales and maturities of investments 7,609 2,996 1,074 Purchase of investments (1,881) (1,051) (5,506) Net change in restricted cash - (501) 493 Net change in short-term investments 2,300 5,792 2,361 Contributions to subsidiaries - net 565 (148) (2,081) Payments received on mortgages and other loan receivables 158 40 351 Loans to subsidiaries - net (83) 446 3,660 Other, net (175) (141) 130 Net cash provided by investing activities 8,493 7,433 482 Cash flows from financing activities: Issuance of long-term debt 5,540 3,247 2,015 Repayment of long-term debt (6,504) (14,468) (7,439) Cash dividends paid (1,028) (712) (294) Loans from subsidiaries - net (201) 110 (123) Purchase of Common Stock (10,691) (4,902) (597) Other, net (44) (28) (517) Net cash used in financing activities (12,928) (16,753) (6,955) Change in cash 8 (4) (51) Cash at beginning of year 26 30 81 Cash at end of year $ 34 $ 26 $ 30 Supplementary disclosure of cash flow information: Years Ended December 31, (in millions) 2015 2014 2013 Cash (paid) received during the period for: Interest: Third party $ (1,030) $ (1,624) $ (1,963) Intercompany - 5 (12) Taxes: Income tax authorities (11) (18) (161) Intercompany 829 1,172 288 Intercompany non-cash financing and investing activities: Capital contributions to subsidiaries through forgiveness of loans - - 341 Other capital contributions - net 494 2,457 523 Return of capital * - 4,836 - Dividends received in the form of securities 2,326 3,088 - See Accompanying Notes to Condensed Financial Information of Registrant. * Includes $4.8 billion return of capital from AIG Capital Corporation related to the sale of ILFC. Notes to Condensed Financial Information of Registrant American International Group, Inc.’s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant’s 2015 Annual Report on Form 10-K for the year ended December 31, 2015 ( 2015 Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 19, 2016 . The Registrant includes in its Statement of Income dividends from its subsidiaries and equity in undistributed income (loss) of consolidate d subsidiaries, which represents the net income (loss) of each of its wholly - owned subsidiaries. Certain prior period amounts have been reclassified to conform to the current period presentation. The five-year debt maturity schedule is incorporated by refe rence from Note 14 to Consolidated Financial Statements. The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due from affiliates in the accomp anying Condensed Balance Sheets. Income taxes in the accompanying Condensed Balance Sheets are composed of the Registrant’s current and deferred tax assets, the consolidated group’s current income tax receivable, deferred taxes related to tax attribute car ryforwards of AIG’s U.S. consolidated income tax group and a valuation allowance to reduce the consolidated deferred tax asset to an amount more likely than not to be realized. See Note 22 to the Consolidated Financial Statements for additional infor mation. The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards and valuation allowance are recorded by the Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocate d to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries. |
Schedule III Supplementary Insu
Schedule III Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2015 | |
Schedule III Supplementary Insurance Information | |
Schedule III Supplementary Insurance Information | Supplementary Insurance Information Schedule III At December 31, 2015 and 2014 Liability for Unpaid Losses and Loss Deferred Adjustment Policy Policy Expenses, and Acquisition Future Policy Unearned Contract Segment (in millions) Costs Benefits Premiums Claims 2015 Non-Life Insurance Companies $ 2,631 $ 69,213 $ 20,961 $ - Life Insurance Companies 8,467 42,893 - 851 Corporate and Other (a) 17 6,421 357 11 $ 11,115 $ 118,527 $ 21,318 $ 862 2014 Non-Life Insurance Companies $ 2,551 $ 77,839 $ 21,325 $ - Life Insurance Companies 7,258 42,004 - 818 Corporate and Other (a) 18 166 (1) 11 $ 9,827 $ 120,009 $ 21,324 $ 829 For the years ended December 31, 2015, 2014 and 2013 Losses Amortization Premiums and Loss of Deferred and Net Expenses Policy Other Net Policy Investment Incurred, Acquisition Operating Premiums Segment (in millions) Fees Income Benefits Costs Expenses Written (b) 2015 Commercial Insurance $ 22,720 $ 5,474 $ 20,425 $ 2,342 $ 3,775 $ 21,486 Consumer Insurance 16,642 8,322 13,791 2,887 7,013 11,580 Corporate and Other (a) 48 257 860 7 - - $ 39,410 $ 14,053 $ 35,076 $ 5,236 $ 10,788 $ 33,066 2014 Commercial Insurance $ 22,408 $ 6,393 $ 16,985 $ 2,512 $ 3,794 $ 22,044 Consumer Insurance 17,389 9,082 14,149 2,759 7,087 12,412 Corporate and Other (a) 72 604 915 59 6 - $ 39,869 $ 16,079 $ 32,049 $ 5,330 $ 10,887 $ 34,456 2013 Commercial Insurance $ 22,209 $ 6,653 $ 17,415 $ 2,418 $ 4,049 $ 21,928 Consumer Insurance 17,554 9,352 14,434 2,836 6,826 12,700 Corporate and Other (a) 76 (195) 1,546 (97) 8 - $ 39,839 $ 15,810 $ 33,395 $ 5,157 $ 10,883 $ 34,628 (a) Includes consolidation and elimination entries. (b) Balances reflect the segment changes discussed in Note 3 – Segment Information to the Consolidated Financial Statements. |
Schedule IV Reinsurance
Schedule IV Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Schedule IV Reinsurance | |
Schedule IV Reinsurance | Reinsurance Schedule IV At December 31, 2015, 2014 and 2013 and for the years then ended Percent of Ceded to Assumed Amount Gross Other from Other Assumed (in millions) Amount Companies Companies Net Amount to Net 2015 Long-duration insurance in force $ 1,051,571 $ 177,025 $ 372 $ 874,918 - % Premiums: Non-Life Insurance Companies $ 37,698 $ 7,604 $ 2,972 $ 33,066 9.0 % Life Insurance Companies 5,227 756 7 4,478 0.2 Run-off insurance lines 6 - - 6 - Total $ 42,931 $ 8,360 $ 2,979 $ 37,550 7.9 % 2014 Long-duration insurance in force $ 1,033,281 $ 180,178 $ 410 $ 853,513 - % Premiums: Non-Life Insurance Companies $ 39,375 $ 8,318 $ 3,399 $ 34,456 9.9 % Life Insurance Companies 4,039 661 20 3,398 0.6 Run-off insurance lines 11 - - 11 - Total $ 43,425 $ 8,979 $ 3,419 $ 37,865 9.0 % 2013 Long-duration insurance in force $ 946,743 $ 122,012 $ 427 $ 825,158 0.1 % Premiums: Non-Life Insurance Companies $ 39,833 $ 9,514 $ 4,306 $ 34,625 12.4 % Life Insurance Companies 4,142 620 13 3,535 0.4 Run-off insurance lines 9 - - 9 - Total $ 43,984 $ 10,134 $ 4,319 $ 38,169 11.3 % |
Schedule V Valuation and Qualif
Schedule V Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule V Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Schedule V For the years ended December 31, 2015, 2014 and 2013 Additions Balance, Charged to Activity of Beginning Costs and Discontinued Divested Other Balance, (in millions) of year Expenses Charge Offs Operations Businesses Changes * End of year 2015 Allowance for mortgage and other loans receivable $ 271 $ 58 $ (29) $ - $ 3 $ 5 $ 308 Allowance for premiums and insurances balances receivable 431 35 (120) - - (13) 333 Allowance for reinsurance assets 258 90 (67) - - (9) 272 Federal and foreign valuation allowance for deferred tax assets 1,739 110 - - - 1,163 3,012 2014 Allowance for mortgage and other loans receivable $ 312 $ (8) $ (68) $ - $ 1 $ 34 $ 271 Allowance for premiums and insurances balances receivable 560 35 (99) - - (65) 431 Allowance for reinsurance assets 276 4 (3) - - (19) 258 Federal and foreign valuation allowance for deferred tax assets 3,596 (181) - - - (1,676) 1,739 2013 Allowance for mortgage and other loans receivable $ 405 $ 20 $ (116) $ - $ (6) $ 9 $ 312 Allowance for premiums and insurances balances receivable 624 14 (74) - - (4) 560 Allowance for reinsurance assets 338 (42) (31) - - 11 276 Federal and foreign valuation allowance for deferred tax assets 8,036 (3,165) - (40) - (1,235) 3,596 * Includes recoveries of amounts previously charged off and reclassifications to/from other accounts. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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, incl uding 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 result s of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Consolidated Statements of Income (Loss) through the date of the completion of the sale. In June 2015, we sold 86.9 million ordinary share s of AerCap by means of an underwritten public offering of 71.2 million ordinary shares and a private sale of 15.7 million ordinary shares to AerCap . We received cash proceeds of approximately $ 3.7 billion, reflecting proceeds of approximately $ 3.4 billion from the underwritten offering and cash proceeds of $ 250 million from the private sale of shares to AerCap . In connection with the clos ing of the private sale of shares to AerCap , we also received $ 500 million of 6.50 % fixed-to-floating rate junior subordinated notes issued by AerCap Global Aviation Trust and guaranteed by AerCap and certain of its subsidiaries. These notes, included in Bonds available for sale, mature in 2045 and are callable beginning in 2025. We accounted for our interest in AerCap using the equity method of accounting through the date of the June 2015 sale, and as availa ble for sale thereafter. In August 2015, we sold our remaining 10.7 million ordinary shares of AerCap by means of an underwritten public offering and received proceeds of approximately $ 500 million. |
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. A ccounting policies that we believe are most dependent on the applicat ion 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 operat ing profitability of the character necessary to realize the net deferred tax asset ; liability for unpaid los s es and los s adjustment expense s ; reinsurance assets ; valuation of future policy benefit liabilities and timing and extent of loss recognition; valu ation 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 o n available for sale securities, impairments on other invested assets, including investments in life settlements, and goodwill impairment; liability for legal contingencies; and fair value measurements of certain financial assets and liabilities . These accounting estimat es 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 cou ld be materially affected. |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Investments | Fixed Maturity and Equity Securities Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or are measured at fair value at our election. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2015 or 2014 . Fixed maturity and equity securities classified as available for sale are carried at fair value. Unrealized gains and losses from available for sale investments in fixed maturity and equity securities are reported as a separ ate component of Accumulated other comprehensive income, net of deferred policy acquisition costs and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity and equity securities measured at fair value at our election are reflected in Net investment income (for insurance subsidiaries) or Other income (for Corporate and Other ). Investments in fixed maturity and equity securities are recorded on a trade-date basis. Premiums and discounts arising from the p urchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain RMBS, CMBS and CDO/ABS, (collectively, structured securities), recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and up dated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities tha t are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For purchased credit impaired (PCI) securities, at acquisition, the difference between the undiscounted expected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into n et investment income over the securities’ remaining lives on a level -yield basis. Subsequently, effective yield s recognized on PCI securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising due to re asons other than interest rate changes. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, affordable housing partnerships and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income with the exception of investments of AIG’s Corporate and Other category , for which such changes are repo rted in Other income. Other investments in hedge funds, private equity funds, affordable housing partnerships and other investment partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influe nce over the respective partnerships are reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income. These investments are subject to other-than-temporary impairment evaluations (see discussion bel ow on evaluating equity investments for other-than-temporary impairment). The gross unrealized loss recorded in Other comprehensive income on such investments was $ 33 million and $ 56 million at December 31, 2015 and 2014 , respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in continuous unrealized loss positions for less than 12 months. Other Invested Assets – Equity Method Investments We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over par tnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income with the exception of investments of AIG’s Corporate and Other category, for which such changes are reported in Other income. In applying the equity method of accounting, we consistently use the most r ecently available financial information provided by the general partner or manager of each of these investments, which is one to three months prior to the end of our reporting period. The financial statements of these investees are generally audited annual ly. Other Investments Also included in Other invested assets are real estate held for investment and investments in aircraft equipment held in consolidated trusts. These investments are reported at cost, less depreciat ion and are subject to impairment review, as discussed below. Investments in Life Settlement s Investments in life settlements are accounted for under the investment method. Under the investment method, we recognize our initial investment in life settleme nts at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force, primarily life insurance premiums, increase the carrying amount of the investment. We recognize income on individual investments in life sett lements when the insured dies, at an amount equal to the excess of the investment proceeds over the carrying amount of the investment at that time. These investments are subject to impairment review, as discussed below. N et Investment Income Net investment income represents income primarily from the following sources: Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. Dividend income from common and preferred stock s and earnings distributions from other investments. Realized and unrealized gains and losses from investments in other securi ties and investments for which we elected the fair value option. Earnings from alternative investments. The difference between the carrying amount of an investment in life settlements and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured. Net Realized Capital Gains and Losses Net realized capital gains and losses are determined by specific identification. The net realized capital gains and losses are generated primarily from the following sources: Sales or full redemptions of available for sale fixed maturity securities , available for sale equity securities , real estate and other alternative investments . Reductions to the cost basis of available for sale fixed maturity securities , available for sale equity securities and certain other invested assets for other-than-temporary impairments. Impairments on investments in life settlements. Changes in fair value of derivatives except for (1) those derivatives at AIGFP and (2) those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses). Exchange gains and losses resulting from foreign currency transactions. Evaluating Investments for Other-Than-Temporary Impairments Fixed Maturity Securities If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an other -than-temporary impairment has occurred and the amortized cost is written down to current fa ir value, with a corresponding charge to realized capital losses . When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a credit impairment has occurred, the amortized cost is writte n down to the estimated recoverable value with a corresponding charge to realized capital losses . The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management . The difference between fair value and amortized cost that is not related to a credit impairment is presente d in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income). When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers historic al performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: Current delinquency rates; Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Expected prepayment speeds. For corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers the fair value as the recoverable value when available information does not indicate that another value is more relevant or reliable. When m anagement identifies information that supports a recoverable value other than the fair value, the determination of a recoverable value considers scenarios specific to the issuer and the security, and may be based upon estimates of outcomes of corporate res tructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. We consider severe price declines in our assessment of potential credit impairm ents. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. In periods subsequent to the recognition of an other -than-temporary impairment charge for a vailable for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and th e expected undiscounted recoverable value over the remaining expected holding perio d of the security. Credit Impairments The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: Years Ended December 31, (in millions) 2015 2014 2013 Balance, beginning of year $ 2,659 $ 3,872 $ 5,164 Increases due to: Credit impairments on new securities subject to impairment losses 111 49 47 Additional credit impairments on previously impaired securities 109 85 78 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell (399) (613) (643) Credit impaired securities for which there is a current intent or anticipated requirement to sell 2 - - Accretion on securities previously impaired due to credit * (735) (725) (774) Other - (9) - Balance, end of year $ 1,747 $ 2,659 $ 3,872 * Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time. Equity Securities We evaluate our available for sale equity securities for impairment by considering such securities as candidates for other-than-temporary impairment if they meet any of the following criteria: The security has traded at a significant (25 percent or more) discount to cost for an extended period of time (nine consecutive months or longer); A discrete credit event has occurred resulting in ( i ) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy la ws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or We have concluded that we may not realize a full recovery on our investment, regardless of the occurrence of one of the foregoing events. The determination that an equity security is other-than-te mporarily impaired requires the judgment of management and consideration of the fundamental condition of the issuer, its near-term prospects and all the relevant facts and circumstances. In addition to the above criteria , all equity securities that have be en in a continuous decline in value below cost over twelve months are impaired. We also consider circumstances of a rapid and severe market valuation decline (50 percent or more) discount to cost, in which we could not reasonably assert that the impairment period would be temporary (severity losses). Other Invested Assets Our equity and cost method investments in private equity funds, hedge funds and other entities are evaluated for impairment similar to the evaluation of equity securities for impairments a s discussed above. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investment s and specific inherent risks. Such risks may evolve based on the nature of the underlying investments. Our investments in life settlements are monitored for impairment on a contract-by-contract basis quarterly. An investment in life settlements is conside red impaired if the undiscounted cash flows resulting from the expected proceeds would not be sufficient to recover our estimated future carrying amount , which is the current ca r rying amount for the investment in life settlements plus anticipated undiscounted future premiums and other capitalizable future costs, if any. Impaired investments in life settlements are written down to their estimated fair value which is determined on a discounted cash flow basis, incorporating current market mortality assumptions and market yields. In general, fair value estimates for the investments in life settlements are calculated using cash flows based on medical underwriting ratings of the polic ies from a third-party underwriter, applied to an industry mortality table. Our mortality assumptions are based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. M ortality improvement factors are a pplied to these assumptions based on our view of future mortality improvements likely to apply to the U.S. insured lives population. Our mortality assumptions coupled with the mortality improvement rates are used in our estimate of future net cash flows fr om the investments in life settlements . Our investments in aircraft assets and real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. Purchased Credit Impaired (PCI) Securities We purchas e certain RMBS securities that ha ve 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 w ill not collect all contractually required payments for these PCI securities, including both principal and interest after considering the effects of prepayments. At acqui sition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security i s determined based on our best estimate using key assumptions, such as interest rates, default rates and prepayment speeds. At acquisition, th e 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 N et 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- accretabl e 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 ot her-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 inte rest 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 accr etable yield. Secured Financing and Similar Arrangements We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. At December 31, 2015 , our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (se curities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued inter est, other than those that are accounted for at fair value. At December 31, 2015 , amounts borrowed under repurchase and securities lending agreements totaled $ 2.9 billion. At December 31, 2015 , repurchase agreements with remaining contractual maturities of 91 - 364 days were collateralized by Non-U.S. government securities, at fair value, of $ 49 million. Repurchase agreements with remaining contractual maturities of up to 30 days , 31 - 90 days and 91 - 364 days were collateralized by Corporate debt securities, at fair value, of $ 33 million, $ 332 million and $ 1,326 million, respectively. Repurchase agreements with remaining contractual maturities of up to 30 days were collateralized by Non- U.S. government securities, available for sale, of $ 50 million. At December 31, 2015 , securities lending agreements with rem aining contractual maturities of 31 - 90 days were collateralized by $ 914 million of Corporate debt securities and $ 57 million of Non-U.S. government securities, all classified as available for sale. Securities lending agreements with remaining contractual maturities of 91 - 364 days were collateralized by $ 124 million of RMBS, classified as available for sale. We also enter into agreements in whic h 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 re corded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the r ight to sell or repledge this collateral received. Mortgage and other loans receivable include commercial mortgages , residential mortgages , life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages , residential mortgages , commercial loans, and other loans and notes receivable are carried at unpaid pr incipal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loa ns is accrued as earned. Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method. Life insurance policy lo ans are carried at unpaid principal balances. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. M ethodology Used to Estimate the Allowance for Credit Losses Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i ) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observab le market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determi ned using the present value of cash flows or the loan’s observable market price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past due status, debt servic e coverage, loan-to-value ratio, property type and location , loan term, profile of the borrower and of the major proper ty tenants, and loan seasoning . When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the ca rrying amount of the loan is charged off against the allowance. Interest income is not accrued when payment of contractual princip al and interest is not expected. Any cash received on impaired loans is generally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is re paid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period. A significant majority of commercial mortgage s in the portfolio are non-recourse loans and, accor dingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. |
Reinsurance | In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our general insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred , ceded unearned premiums and ceded future policy benef its for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for d oubtful accounts requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for d oubtful accounts on reinsurance assets was $ 272 million and $ 258 million at December 31, 2015 and 2014 , respectively. Changes in the allowance for doubtful accounts on reinsuranc e assets are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income. Short-Duration Reinsurance Short-duration reinsurance is e ffected under reinsurance treaties and by negotiation on individu al risks. Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a componen t of Reinsurance assets. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premi ums. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. Long-Duration Reinsurance Long-duration reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are earned over the contract period in proportion to the protection provided. Amounts recoverable from reinsurers on long-duration contracts are estimated in a m anner consistent with the assumptions used for the underlying policy benefits and are presented as a component of Reinsurance assets. |
Deferred Policy Acquisition Costs | Deferred p olicy acquisition costs (DAC) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. S uch deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analy zed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. We also defer a portion of employe e total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force c ontract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates. Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned , generally 12 months . DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recov erability based on the profitability of the underlying insurance co ntracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impa irment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred , unamortized DAC and maintenance c osts. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income , the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge. Long-duration insurance contracts: Policy acquisition costs for participating life, traditional l ife and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is is sued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviatio n to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying amount of future policy benefit liabilities , net of DAC , and what the future policy benef it liabilities , net of DAC , would be when applying updated current assumptions. When we determine a loss recognition event has occurred, we first reduce any DAC related to that block of business through amortization of acquisition expense, and after DAC is depleted, we record additional liabilities through a charge to Policyholder benefits and losses incurred. Groupings for loss recognition testing are consistent with our manner of acquiring, servicing and measuring the profitability of the business and ap plied by product groupings. We perform separate loss recognition tests for traditional life products, payout annuities and long-term care products. Once loss recognition has been recorded for a block of business, the old assumption set is replaced and th e assumption set used for the loss recognition would then be subject to the lock-in principle. Investment-oriented contracts: Policy acquisition costs and policy issuance costs related to universal life and investment-type products ( collectively, investment - oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. Estimated gross profits include net in vestment income and spreads , ne t realized investment gains and losses, fees, surrender charges, expenses, and mortality gains and losses. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If estimated gross profits change signific antly, DAC is recalculated using the new assumptions , and a ny resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decreas e in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current peri od. Updating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. To estimate future estimated gross profits for variable annuity products , a long-term annual asset growth assum ption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” m ethodology whereby short-term asset growth above or below long-term annual rate assumptions impact the growth assumption applied to the five- year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to mainta in our long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption , as evidenced by growth assumptions in the five -year reversion to the mean period falling below a certain rate (floor) or above a certain rate (cap) for a sustain ed period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five -year reversion to the mean period as well as the long-term annual growth assumption applied to subsequent periods. Shadow DAC and Shadow Loss Recognition: DAC related to investment - oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed mat urity and equity securities available for sale on estimated gross profits, with related changes recognized through O ther comprehensive income (shadow DAC). The adjustment is made at each balance sheet date, as if the securities had been sold at their state d aggregate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the liabilities maintain a temporary net unrealized gain position at the balance sheet date, loss recognition testing assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognit ion tests is recognized as a reduction in accumulated other comprehensive income (shadow loss recognition). Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabilities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income. Internal Replace ments of Long-duration and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and re lated actuarial balances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances ar e charged or credited to income, and any new deferrable costs assoc iated with the replacement contract are deferred. Value of Business Acquired (VOBA ) is determined at the time of acquisition and is reported in the Consolidated Balance Sheet s with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of t he business in a manner similar to that for DAC based on the assumptions at purchase. For investment - oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity and equity securities available for sale in a manner similar to DAC . |
Derivatives and Hedge Accounting | We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium - and long -term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (prin cipally foreign exchange swap s and forwards ) 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 mitigat e 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 as a part of our investmen t operations, which may include, among other things, CDSs and purchases of investments with embedded derivatives, such as equity - linked notes and convertible bonds. Interest rate, currency, equity and commodity swa ps, credit contracts , swaptions , options a nd forward transactions are accounted for as derivatives , recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. Aggregate asset or liability positions are netted on the Consolidated Balance Sheet s only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty . Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangemen ts is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset. Effective July 1, 2015, we reclassified derivatives, with the exception of embedded derivatives, in the Consolidated Balance Sheets from Derivative assets, at fair value and Derivative liabilities, at fair value to Other assets and Other liabilities , respectively. This change had no effect on the measurement of these derivatives, which continue to be measured at fair value. Embedded derivatives continue to be generally presented with the host contract in the Consolidated Balance Sheets . A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted for according to the accounting guidance applicable f or that instrument. See Notes 4 and 13 herein for additional information on embedded derivatives. |
Liability for unpaid claims and claims adjustment expense | Liability for Unpaid Losses and Loss Adjustment Expense s The liability for unpaid los s es and los s adjustment expense s represents the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and claim adjustments expenses, less applicable discount for future investment income. We continually review and update the methods used to determine loss reserve estimates and to establish the resulting reserves. Any adjustments resulting from this review are reflected currently in pre-tax income. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be re cognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as f avorable development. |
Future policy benefits for life and accident and health insurance contracts and policyholder contract deposits | Policyholder Contract Deposits The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited at rates ranging from 0.2 percent to 9.0 percent at December 31, 2015 , less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues, b ecause they are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenues. In addition to liabilities for universal life, fix ed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, p olicyholder contract deposits also include our liability for (a) certain guarantee d benefits and indexed features accounted for as em bedded derivatives at fair value, (b) annuities issued in a structured settlement arrangement with no life contingency and (c) certain contracts we have elected to account for at fair value. See Note 13 herein for additional information on guaranteed bene fits accounted for as embedded derivatives. For universal life policies with secondary guarantees, we recognize certain liabilities in addition to policyholder account balances. For universal life policies with secondary guarantees, as well as other unive rsal life policies for which profits followed by losses are expected at contract inception, a liability is recognized based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contrac t, divided by (b) the present value of total expected assessments over the life of the contract. For universal life policies without secondary guarantees, for which profits followed by losses are first expected after contract inception, we establish a lia bility, in addition to policyholder account balances, so that expected future losses are recognized in proportion to the emergence of profits in the earlier (profitable) years. Universal life account balances as well as these additional liabilities relate d to universal life products are reported within policyholder contract deposits in the Consolidated Balance Sheet. Future Policy Benefits Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant has agreed to settle a general insurance claim in exchange for fixed payments over a fixed determinable period of time with a life continge ncy feature. Future policy benefits also include certain guaranteed benefits of variable annuity products that are not considered embedded derivatives, primarily guaranteed minimum death benefits. See Note 13 for additional information on guaranteed mini mum death benefits. The liability for long-duration future policy benefits has been established including assumptions for interest rates which vary by year of issuance and product, and range from approximately 3 percent to 14 percent. Mortality and surren der rate assumptions are generally based on actual experience when the liability is established. Other Policyholder Funds Other policyholder funds include unearned revenue reserves (URR ) . URR consist of front - end loads on investment-oriented contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. URR for investment-oriented contracts are generally deferred and amortized, with interest, in relation to the incidence of estimated gross profits (EGPs) to be realized over the estimated lives of the contracts and are subject to the same adjustments due to changes in the assumptions underlying EGPs as DAC. Amortization of URR is recorded in Policy fees. Other policyholde r funds also include provisions for future dividends to participating policyholders, accrued in accordance with all applicable regulatory or contractual provisions. Participating life business represented approximately 2.2 percent o f gross insurance in force at December 31, 2015 and 2.4 percent of gross domestic p remiums and other considerations in 2015 . The amount of annual dividends to be paid is approved locally by the boards of directors of the Life Insurance C ompanies. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations. The portions of current and prior net income and of current unrealized appreciation of investments that can inure to our b enefit are restricted in some cases by the insurance contracts and by the local insurance regulations of the jurisdictions in which the policies are in force. Certain products are subject to experience adjustments. These include group life and group medica l products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as reve nue with the unearned portions of the p remiums recorded as liabilities in Other policyholder funds. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guid ance. |
Debt | Our long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts , hedge accounting valuation adjustments and fair value adjustments, when applicable. The interest rates presented in the following table reflect the range of contractual rates in effect at December 31, 2015 , including fixed and variable rate issuances. |
Earnings Per Share | 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 d iluted 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. |
Income Taxes | 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 evi dence 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 realiz e 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 strategi es that would be implemented, if necessary, to protect against the loss of the deferred tax asset. In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operating loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though th e carryforward period for the foreign tax credit is shorter than for the net operating loss. Our U.S. federal consolidated income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can b e offset by the net operating loss carryforwards, only a portion (no more than 35 percent) of the U.S. taxable income of our life companies can be offset by those net operating loss carryforwards. The remaining tax liability of our life companies can be o ffset by the foreign tax credit carryforwards. Accordingly, we utilize both the net operating loss and foreign tax credit carryforwards concurrently which enables us to realize our tax attributes prior to expiration. As of December 31, 2015 , ba sed on all available evidence, it is more likely than not that the U.S. net operating loss and foreign tax credit carryforwards will be utilized prior to expiration and, thus, no valuation allowance has been established. Estimates of future taxable income, including income generated from prudent and feasible actions and tax planning strategies could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax a sset. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. |
Revenues and expenses | Premiums for short - duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and earned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of cover age. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract . As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflecting the in ception dates of the underlying policies throughout the year. Reinsurance premiums ceded are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. Premiums for lo ng - duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. Policy fees represent fees recognized from universal life and investment-type products consisti ng of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. Policy fees are recognized as revenues in the period in which they are assessed against policyholders, unless the fees are designed to compensate AIG for services to be provided in the future. Fees deferred as unearned revenue are amortized in relation to the incidence of expected gross profits to be realized over the estim ated lives of the contracts, similar to DAC. Aircraft leasing revenue from flight equipment under operating leases, through May 14, 2014, the date of disposal of ILFC, was recognized over the life of the leases as rental payments beca me receivable under th e provisions of the leases or, in the case of leases with varying payments, under the straight-line method over the noncancelable term of the leases. In certain cases, leases provide d for additional payments contingent on usage. I n those cases, rental reve nue was recognized at the time such usage occur red , net of estimated future contractual aircraft maintenance reimbursements. Gains on sales of flight equipment were reco gnized when flight equipment was sold and the risk of ownership of the equipment passed to the new owner. Other income includes advisory fee income from the Consumer Insurance broker dealer business, as well as legal recoveries of $ 94 million, $ 804 million and $ 1.2 billion fro m legacy crisis and other matters in 2015, 2014 and 2013, respectively. Other income from our Corporate and Other category consists of the following: Change s in fair value relating to financial assets and liabilities for which the fair value option has bee n elected. Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable. Dividend income from common and preferred stock and earnings distributions from other investments. Changes in the fair value of other securities sold but not yet purchased, futures, hybrid financial instruments, securities purchased under agreements to resell, and securities sold under agreements to repurchase. Income earned on real estate based investments and related realized gains and losses from sales, property level impairments and financing costs. Exchange gains and losses resulting from foreign currency transactions. Earnings from private equity funds and hedge fund investments accounted for under the equity method. Changes in the fair value of derivatives at AIG Financial Products Corp. and related subsidiaries (collectively AIGFP) . Gains and losses reco gnized in earnings on derivatives designated as hedges, for the effective portion and their related hedged items. Aircraft leasing expenses through May 14, 2014, the date of disposal of ILFC, consisted of ILFC interest expense, depreciation expense, impair ment charges, fair value adjustments and lease-related charges on aircraft as well as selling, general and administrative expenses and other expenses incurred by ILFC. |
Cash | Cash represents cash on hand and non-interest - bearing demand deposits. |
Premiums and other receivables - net | Short-term inves tments consist of interest -bearing cash equivalents, time deposits, securities purchased under agreements to resell, and investments, such as commercial paper, with original maturities within one year from the date of purchase. Premiums and other receivabl es – net of allowance include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the DIB and GCM and other receivables. Trade receivables for GCM include cash collateral posted to derivative counterpar ties that is not eligible to be netted against derivative liabilities. The allowance for doubtful accounts on premiums and other receivables was $ 333 million and $ 428 million at December 31, 2015 and 2014 , respectively. |
Other assets | Other assets consist of sales inducement assets, prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, restricted cash and derivative assets . We offer sales inducements which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Sales inducements provided to the contract holder are recognized in Policyholder contract deposits in the Consolidated Balance Sheets. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC (see Note 8 herein). To q ualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest, and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $ 845 million and $ 629 million at December 31, 2015 and 2014 , respectively. The amortization expense associated with these assets is reported within Interest credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $ 88 million, $ 63 million and $ 102 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The cost of buildings and furniture and equipmen t is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and equipment). Expenditures for maintenance an d repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically assess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding five years. Real estate, fixed assets and other long-lived ass ets are assessed for impairment when impairment indicators exist. |
Goodwill | Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment annually or more frequently if circumstances indicate an impairment may have occurred. We assess goodwill for impairment at one level below our reportable segments. At December 31, 2015, our principal reporting units with goodwill are Commercial Insurance - Property Casualty, Consumer Insurance - Personal Insurance, and Consumer Insurance - Life. When a business is transferred from one reporting unit to another, as occurred with the transfer of a portion of the Consumer Insurance - Personal Insura nce to Consumer Insurance – Life, as part of the 2014 segment changes, goodwill at the original reporting unit is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. The impai rment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount . If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the impairment assessment in volves a two-step process in which a quantitative assessment for potential impairment is performed. If the qualitative test is not performed or if the test indicates a potential impairment is present, we estimate the fair value of each reporting unit and compare the estimated fair value with the carrying amount of the reporting unit, including allocated goodwill. The estimate of a reporting unit’s fair value involves management judgment and is based on one or a combination of approaches including discounte d expected future cash flows, market - based earnings multiples of the unit’s peer companies, external appraisals or, in the case of reporting units being considered for sale, third -party indications of fair value, if available. We consider one or more of th ese estimates when determining the fair value of a reporting unit to be used in the impairment test. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not impaired. If the carrying value of a reporting unit exceeds it s estimated fair value, goodwill associated with that reporting unit potentially is impaired. The amount of impairment, if any, is measured as the excess of the carrying value of the goodwill over the implied fair value of the goodwill. The implied fair v alue of the goodwill is measured as the excess of the fair value of the reporting unit over the amounts that would be assigned to the reporting unit’s assets and liabilities in a hypothetical business combination. An impairment charge is recognized in ear nings to the extent of the excess of carrying value over fair value. Goodwill was not impaired at December 31, 2015 based on the results of the goodwill impairment test. The following table presents the changes in goodwill by reportable segmen t: (in millions) Commercial Consumer Other Total Balance at January 1, 2013: Goodwill - gross $ 2,444 $ 2,502 $ - $ 4,946 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill 1,178 291 - 1,469 Increase (decrease) due to: Other 6 - - 6 Balance at December 31, 2013: Goodwill - gross 2,450 2,502 - 4,952 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill 1,184 291 - 1,475 Increase (decrease) due to: Acquisition - 28 - 28 Other (49) - - (49) Balance at December 31, 2014: Goodwill - gross 2,401 2,530 - 4,931 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill 1,135 319 - 1,454 Increase (decrease) due to: Acquisition 96 82 30 208 Other (50) 1 - (49) Balance at December 31, 2015: Goodwill - gross 2,447 2,613 30 5,090 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill $ 1,181 $ 402 $ 30 $ 1,613 |
Separate accounts | Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the account assets. For a more detailed discussion of separate accounts, see Note 13 herein. |
Long-Duration Contracts | We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder and the separate account meets additional accounting criteria to qualify for separate account treatment. The assets supporting the variable portion of variable annuity and variable universal life contracts that qualify for separate account treatment are carried at fair value and reported as S eparate account assets , with an equivalent summary total reported as S eparate account liabilities. Policy values for variable products and investment contracts are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units in the separate accounts, plus any liabilities for guaranteed minimum death benefits or guaranteed minimum withdrawal benefits included in Future policy benefits or Policyholder contract deposits, respectively. Amounts assessed against the contract holders for mortality, administrative and other servic es are included in revenue. Net investment income, net investment gains and losses, changes in fair value of assets, and policyholder account deposits and withdrawals related to separate accounts are excluded from the Consolidated Statements of Income , Com prehensive Income (Loss) and Cash Flows. |
Other liabilities | Other liabilities consist of other funds on deposit, other payables, securities sold un der agreements to repurchase, securities sold but not yet purchased and derivative liabilities . We have entered into certain insurance and reinsurance contracts, primarily in our Non-Life Insurance Companies segment, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on such contracts, after deduction for certain related expenses, are record ed as deposits within Other liabilities in the Consolidated Balance Sheets. Net proceeds of these deposits are invested and generate Net investment income. As amounts are paid, consistent with the underlying contracts, the deposit liability is reduced. Als o included in Other liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets. Securities sold but not yet purchased represent sales of securities not owned at the t ime of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Fair values of securities sold but not yet purchased are based on current market prices. |
Foreign currency | Foreign currency : Financial statement acco unts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. Income statement accounts expressed in functional currencies are translated using a verage exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a co nsolidated entity are remeasured into that entity’s functional currency resulting in exchange gains or losses recorded in income. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income. Non- redeemable n oncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, direc tly or indirectly, to a parent. |
Future Application of Accounting Standards | Future Application of Accounting Standards Revenue Recognition In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other activities. The standard is effective for interim and annual reporting periods begin ning after December 15, 2017 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, inclu ding interim periods within that reporting period. We plan to adopt the standard on its required effective date of January 1, 2018 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows . A ccounting 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 reporti ng 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 a s 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 stand ard to have a material effect on our consolidated financial condition, results of operations and cash flows . Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity In August 2014, the FASB issued a n 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, whiche ver 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 or through a cumulative effect adjustment to retained ear nings at the date of adoption. 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 and cash flows. Consolidation: Amendments to the Consolidation Analysis In February 2015, the FASB issued an accounting standard that affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, t he amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; aff ect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The standard may be applied retrospectively or through a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. 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 and cash flows. Custo mer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued an accounting standard that provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrang ement includes a software license the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change generally accepted accounting principles applicable to a customer's accounting for service contracts. Consequently, all software licenses will be accounted for consist ent with other licenses of intangible assets. The standard is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The standard may be adopted prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. 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 . Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued an accounting standard that amends the guidance for debt issuance costs by requiring such costs to be presented as a deduction to the corresponding debt liability, rather than as an asset, and for the amortization of such costs to be reported as interest expense. The amendments are intended to simplify the presentation of debt issuance costs and make it consistent with the presentation of debt discounts or premiums. The amendments, however, do not change the recogni tion and measurement guidance applicable to debt issuance costs. The standard is effective for interim and annual periods beginning after December 15, 2015. Early adoption i s permitted. The standard must be applied retrospectively to all prior periods presented. We plan to adopt the standard on January 1, 2016, its required effective date. Because the new standard does not affect accounting recognition or measurement of de bt issuance costs, the adoption of the standard will have not have a material effect on our consolidated financial condition, results of operations, or cash flows. Short Duration Insurance Contracts In May 2015, the FASB issued an accounting standard t hat requires additional disclosures (including accident year information) for short-duration insurance contracts. New disclosures about the liability for unpaid losses and loss adjustment expenses will be required of public business entities for annual per iods beginning after December 15, 2015. The annual disclosures by accident year include: disaggregated net incurred and paid claims development tables segregated by business type (not required to exceed 10 years), reconciliation of total net reserves inclu ded in development tables to the reported liability for unpaid losses and loss adjustment expenses, incurred but not reported (IBNR) information, quantitative information and a qualitative description about claim frequency, and the average annual percentag e payout of incurred claims. Further, the new standard requires, when applicable, disclosures about discounting liabilities for unpaid losses and loss adjustment expenses and significant changes and reasons for changes in methodologies and assumptions used to determine unpaid losses and loss adjustment expenses. In addition, the roll forward of the liability for unpaid losses and loss adjustment expenses currently disclosed in annual financial statements will be required for interim periods beginning in th e first quarter of 2017. Early adoption of the new annual and interim disclosures is permitted. We plan to adopt the standard on its required effective date. Because the new standard does not affect accounting recognition or measurement, the adoption of the standard will have no effect on our consolidated financial condition, results of operations, or cash flows. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued an accounting standard that affects the recognition, measurement, presentation, and disclosure of financial instruments. Specifically, under the new standard, equity investments (other than those accounted for using the equity method of accounting or those subject to consolidation) will be measured at fair value with changes in fair value recognized in earnings. Also, for those financial liabilities for which fair value option accounting has been elected, the new standard requires changes in fair value due to instrument-specific cre dit risk to be presented separately in other comprehensive income. The standard updates certain fair value disclosure requirements for financial instruments carried at amortized cost. The standard is effective for interim and annual reporting periods begin ning after December 15, 2017. Early adoption of certain provisions is permitted. We are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Accounting Standards Adopted | Accounting Standards Adopted During 2015 Reclassification of Residential Real Estate Collateralized Consumer M ortgage Loans upon Foreclosure In January 2014, the Financial Accounting Standards Board (FASB) issued an accounting standard that clarifies that a creditor is considered to have received physical possession of residential real estate property collateral izing 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 conv eys 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. We adopted the standard on its required effective date of January 1, 2015 . The adoption of this standard had no 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 no t qualify for discontinued operations presentation. We adopted the standard on its required effective date of January 1, 2015 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or 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 arran gements. 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 repurchase financings with the acc ounting 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 financia l asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. We adopted the standard on its required effective date of January 1, 2015 on a prospective basis. The adoption of this standard had no ma terial effect on our consolidated financial condition, results of operations or cash flows. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SEGMENT INFORMATION | |
Schedule of continuing operations by reportable segment | Net Depreciation Pre-Tax Total Investment Interest and Operating (in millions) Revenues Income Expense Amortization Income (Loss) 2015 Commercial Insurance Property Casualty $ 23,625 $ 3,596 $ 12 $ 2,255 $ 593 Mortgage Guaranty 1,051 139 - 64 644 Institutional Markets 3,518 1,739 11 (177) 415 Total Commercial Insurance 28,194 5,474 23 2,142 1,652 Consumer Insurance Retirement 9,298 6,002 39 (98) 2,839 Life 6,393 2,100 14 205 465 Personal Insurance 11,378 220 1 1,944 74 Total Consumer Insurance 27,069 8,322 54 2,051 3,378 Corporate and Other 2,901 617 1,313 426 (883) AIG Consolidation and elimination (573) (317) (109) 10 (92) Total AIG Consolidated pre-tax operating income $ 57,591 $ 14,096 $ 1,281 $ 4,629 $ 4,055 Reconciling Items from pre-tax operating income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits (43) (43) - - (43) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - - (15) Other income (expense) - net - - - - (233) Loss on extinguishment of debt - - - - (756) Net realized capital gains 776 - - - 776 Income from divested businesses (48) - - - (59) Non-operating litigation reserves and settlements 94 - - - 82 Reserve development related to non-operating run-off insurance business - - - - (30) Restructuring and other costs - - - - (496) Other (43) - - - - Pre-tax income $ 58,327 $ 14,053 $ 1,281 $ 4,629 $ 3,281 2014 Commercial Insurance Property Casualty $ 25,183 $ 4,298 $ - $ 2,445 $ 4,248 Mortgage Guaranty 1,042 138 - 56 592 Institutional Markets 2,576 1,957 7 (215) 670 Total Commercial Insurance 28,801 6,393 7 2,286 5,510 Consumer Insurance Retirement 9,784 6,489 23 (231) 3,495 Life 6,321 2,199 7 130 580 Personal Insurance 12,364 394 2 2,067 399 Total Consumer Insurance 28,469 9,082 32 1,966 4,474 Corporate and Other 4,206 700 1,805 346 (379) AIG Consolidation and elimination (475) (356) (126) (181) (31) Total AIG Consolidated pre-tax operating income $ 61,001 $ 15,819 $ 1,718 $ 4,417 $ 9,574 Reconciling Items from pre-tax operating income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 260 260 - - 260 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - - (217) Other income (expense) - net - - - - - Loss on extinguishment of debt - - - - (2,282) Net realized capital gains 739 - - - 739 Loss from divested businesses 1,602 - - 31 2,169 Non-operating litigation reserves and settlements 804 - - - 258 Reserve development related to non-operating run-off insurance business - - - - - Restructuring and other costs - - - - - Other - - - - - Pre-tax income $ 64,406 $ 16,079 $ 1,718 $ 4,448 $ 10,501 2013 Commercial Insurance Property Casualty $ 25,108 $ 4,431 $ 8 $ 2,393 $ 4,095 Mortgage Guaranty 941 132 - 50 205 Institutional Markets 2,813 2,090 1 (160) 680 Total Commercial Insurance 28,862 6,653 9 2,283 4,980 Consumer Insurance Retirement 9,431 6,628 3 (165) 3,490 Life 6,397 2,269 4 214 806 Personal Insurance 12,832 455 3 2,110 268 Total Consumer Insurance 28,660 9,352 10 2,159 4,564 Corporate and Other 4,073 309 2,451 221 (265) AIG Consolidation and elimination (71) (343) (328) (26) 111 Total AIG Consolidated pre-tax operating income $ 61,524 $ 15,971 $ 2,142 $ 4,637 $ 9,390 Reconciling Items from pre-tax operating income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits (161) (161) - - (161) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - - (1,608) Other income (expense) - net - - - - (72) Loss on extinguishment of debt - - - - (651) Net realized capital gains 1,939 - - - 1,939 Loss from divested businesses 4,420 - - 76 (177) Non-operating litigation reserves and settlements 1,152 - - - 708 Reserve development related to non-operating run-off insurance business - - - - - Restructuring and other costs - - - - - Other - - - - - Pre-tax income $ 68,874 $ 15,810 $ 2,142 $ 4,713 $ 9,368 |
Schedule of year-end identifiable assets and capital expenditures by reportable segment | Year-End Identifiable Assets Capital Expenditures (in millions) 2015 2014 2015 2014 Total Non-Life Insurance Companies $ 150,368 $ 164,299 $ 991 $ 697 Total Life Insurance Companies 297,499 301,295 102 114 Total Corporate and Other 141,648 159,394 629 1,021 AIG Consolidation and Elimination (92,572) (109,407) - - Total Assets $ 496,943 $ 515,581 $ 1,722 $ 1,832 |
Schedule of entity's consolidated operations and long-lived assets by major geographic area | Real Estate and Other Fixed Assets, Total Revenues * Net of Accumulated Depreciation (in millions) 2015 2014 2013 2015 2014 2013 U.S. $ 42,366 $ 44,274 $ 46,078 $ 2,213 $ 1,886 $ 1,606 Asia Pacific 5,942 7,523 8,804 602 521 448 Other Foreign 10,019 12,609 13,992 320 293 261 Consolidated $ 58,327 $ 64,406 $ 68,874 $ 3,135 $ 2,700 $ 2,315 * Revenues are generally reported according to the geographic location of the reporting unit. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS | |
Assets and liabilities measured at fair value on a recurring basis | December 31, 2015 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting * Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ - $ 1,844 $ - $ - $ - $ 1,844 Obligations of states, municipalities and political subdivisions - 25,199 2,124 - - 27,323 Non-U.S. governments 683 17,480 32 - - 18,195 Corporate debt - 134,618 1,370 - - 135,988 RMBS - 19,690 16,537 - - 36,227 CMBS - 10,986 2,585 - - 13,571 CDO/ABS - 8,928 6,169 - - 15,097 Total bonds available for sale 683 218,745 28,817 - - 248,245 Other bond securities: U.S. government and government sponsored entities - 3,369 - - - 3,369 Obligations of states, municipalities and political subdivisions - 75 - - - 75 Non-U.S. governments - 50 - - - 50 Corporate debt - 2,018 17 - - 2,035 RMBS - 649 1,581 - - 2,230 CMBS - 557 193 - - 750 CDO/ABS - 1,218 7,055 - - 8,273 Total other bond securities - 7,936 8,846 - - 16,782 Equity securities available for sale: Common stock 2,401 - - - - 2,401 Preferred stock 22 - - - - 22 Mutual funds 491 1 - - - 492 Total equity securities available for sale 2,914 1 - - - 2,915 Other equity securities 906 1 14 - - 921 Mortgage and other loans receivable - - 11 - - 11 Other invested assets 2 4,256 4,654 - - 8,912 Derivative assets: Interest rate contracts - 3,150 12 - - 3,162 Foreign exchange contracts - 766 - - - 766 Equity contracts 91 32 54 - - 177 Commodity contracts - - - - - - Credit contracts - - 3 - - 3 Other contracts - 2 21 - - 23 Counterparty netting and cash collateral - - - (1,268) (1,554) (2,822) Total derivative assets 91 3,950 90 (1,268) (1,554) 1,309 Short-term investments 1,416 1,175 - - - 2,591 Separate account assets 73,699 5,875 - - - 79,574 Total $ 79,711 $ 241,939 $ 42,432 $ (1,268) $ (1,554) $ 361,260 Liabilities: Policyholder contract deposits $ - $ 36 $ 2,289 $ - $ - $ 2,325 Other policyholder funds 6 - - - - 6 Derivative liabilities: Interest rate contracts - 2,137 62 - - 2,199 Foreign exchange contracts - 1,197 7 - - 1,204 Equity contracts - 68 - - - 68 Commodity contracts - - - - - - Credit contracts - - 508 - - 508 Other contracts - - 69 - - 69 Counterparty netting and cash collateral - - - (1,268) (760) (2,028) Total derivative liabilities - 3,402 646 (1,268) (760) 2,020 Long-term debt - 3,487 183 - - 3,670 Other liabilities - 62 - - - 62 Total $ 6 $ 6,987 $ 3,118 $ (1,268) $ (760) $ 8,083 December 31, 2014 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting * Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 322 $ 2,670 $ - $ - $ - $ 2,992 Obligations of states, municipalities and political subdivisions - 25,500 2,159 - - 27,659 Non-U.S. governments 742 20,323 30 - - 21,095 Corporate debt - 142,550 1,883 - - 144,433 RMBS - 20,715 16,805 - - 37,520 CMBS - 10,189 2,696 - - 12,885 CDO/ABS - 7,165 6,110 - - 13,275 Total bonds available for sale 1,064 229,112 29,683 - - 259,859 Other bond securities: U.S. government and government sponsored entities 130 5,368 - - - 5,498 Obligations of states, municipalities and political subdivisions - 122 - - - 122 Non-U.S. governments - 2 - - - 2 Corporate debt - 719 - - - 719 RMBS - 989 1,105 - - 2,094 CMBS - 708 369 - - 1,077 CDO/ABS - 2,751 7,449 - - 10,200 Total other bond securities 130 10,659 8,923 - - 19,712 Equity securities available for sale: Common stock 3,626 2 1 - - 3,629 Preferred stock 25 - - - - 25 Mutual funds 738 3 - - - 741 Total equity securities available for sale 4,389 5 1 - - 4,395 Other equity securities 1,024 25 - - - 1,049 Mortgage and other loans receivable - - 6 - - 6 Other invested assets 2 3,742 5,650 - - 9,394 Derivative assets: Interest rate contracts 2 3,729 12 - - 3,743 Foreign exchange contracts - 839 1 - - 840 Equity contracts 98 58 51 - - 207 Commodity contracts - - - - - - Credit contracts - - 4 - - 4 Other contracts - - 31 - - 31 Counterparty netting and cash collateral - - - (2,102) (1,119) (3,221) Total derivative assets 100 4,626 99 (2,102) (1,119) 1,604 Short-term investments 584 1,100 - - - 1,684 Separate account assets 73,939 6,097 - - - 80,036 Total $ 81,232 $ 255,366 $ 44,362 $ (2,102) $ (1,119) $ 377,739 Liabilities: Policyholder contract deposits $ - $ 52 $ 1,509 $ - $ - $ 1,561 Other policyholder funds - 8 - - - 8 Derivative liabilities: Interest rate contracts - 3,047 86 - - 3,133 Foreign exchange contracts - 1,482 9 - - 1,491 Equity contracts - 98 4 - - 102 Commodity contracts - 6 - - - 6 Credit contracts - - 982 - - 982 Other contracts - - 90 - - 90 Counterparty netting and cash collateral - - - (2,102) (1,429) (3,531) Total derivative liabilities - 4,633 1,171 (2,102) (1,429) 2,273 Long-term debt - 5,253 213 - - 5,466 Other liabilities 34 316 - - - 350 Total $ 34 $ 10,262 $ 2,893 $ (2,102) $ (1,429) $ 9,658 * Represents netting of derivative exposures covered by qualifying master netting agreement s . |
Changes in Level 3 recurring fair value measurements (Assets) | Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out of Year at End of Year December 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,159 $ 1 $ (85) $ 154 $ - $ (105) $ 2,124 $ - Non-U.S. governments 30 - (7) 10 - (1) 32 - Corporate debt 1,883 15 (109) (210) 1,515 (1,724) 1,370 - RMBS 16,805 1,052 (512) (808) - - 16,537 - CMBS 2,696 77 (95) 118 - (211) 2,585 - CDO/ABS 6,110 149 (258) 300 7 (139) 6,169 - Total bonds available for sale 29,683 1,294 (1,066) (436) 1,522 (2,180) 28,817 - Other bond securities: Corporate debt - - - 1 16 - 17 - RMBS 1,105 32 - 460 43 (59) 1,581 (27) CMBS 369 (3) - (177) 4 - 193 (13) CDO/ABS 7,449 646 - (1,658) 698 (80) 7,055 (87) Total other bond securities 8,923 675 - (1,374) 761 (139) 8,846 (127) Equity securities available for sale: Common stock 1 2 - (3) - - - - Preferred stock - - - - - - - - Total equity securities available for sale 1 2 - (3) - - - - Other equity securities - (1) - (7) 22 - 14 (2) Mortgage and other loans receivable 6 - - 5 - - 11 - Other invested assets 5,650 435 (789) (530) 117 (229) 4,654 - Total $ 44,263 $ 2,405 $ (1,855) $ (2,345) $ 2,422 $ (2,548) $ 42,342 $ (129) Liabilities: Policyholder contract deposits $ (1,509) $ (315) $ - $ (465) $ - $ - $ (2,289) $ 64 Derivative liabilities, net: Interest rate contracts (74) - - 24 - - (50) (1) Foreign exchange contracts (8) 1 - - - - (7) 1 Equity contracts 47 2 - 5 - - 54 (3) Commodity contracts - - - - - - - - Credit contracts (978) 186 - 287 - - (505) 95 Other contracts (59) 79 - (68) - - (48) 76 Total derivative liabilities, net (a) (1,072) 268 - 248 - - (556) 168 Long-term debt (b) (213) 10 - 20 - - (183) 17 Total $ (2,794) $ (37) $ - $ (197) $ - $ - $ (3,028) $ 249 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 Year in Income Income (Loss) Settlements, Net In Out of Year at End of Year December 31, 2014 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions (c) $ 1,080 $ - $ 233 $ 914 $ 119 $ (187) $ 2,159 $ - Non-U.S. governments 16 1 (1) 9 8 (3) 30 - Corporate debt 1,255 12 19 (257) 1,363 (509) 1,883 - RMBS 14,941 1,012 53 796 120 (117) 16,805 - CMBS 5,735 69 243 85 83 (3,519) 2,696 - CDO/ABS 6,974 86 (38) 1,545 2,488 (4,945) 6,110 - Total bonds available for sale 30,001 1,180 509 3,092 4,181 (9,280) 29,683 - Other bond securities: Corporate debt - - - - - - - - RMBS 937 40 - 97 51 (20) 1,105 (13) CMBS 844 (6) - (141) 124 (452) 369 (7) CDO/ABS 8,834 1,098 - (1,805) 271 (949) 7,449 318 Total other bond securities 10,615 1,132 - (1,849) 446 (1,421) 8,923 298 Equity securities available for sale: Common stock 1 - - (1) 2 (1) 1 - Preferred stock - - - - - - - - Mutual funds - - - - 1 (1) - - Total equity securities available for sale 1 - - (1) 3 (2) 1 - Mortgage and other loans receivable - - - 6 - - 6 - Other invested assets 5,930 150 398 (83) 167 (912) 5,650 - Total $ 46,547 $ 2,462 $ 907 $ 1,165 $ 4,797 $ (11,615) $ 44,263 $ 298 Liabilities: Policyholder contract deposits $ (312) $ (1,127) $ (54) $ (16) $ - $ - $ (1,509) $ (218) Derivative liabilities, net: Interest rate contracts (100) (10) - 39 - (3) (74) (10) Foreign exchange contracts - 2 - (10) - - (8) 3 Equity contracts 49 21 - (18) 48 (53) 47 13 Commodity contracts 1 (1) - - - - - (1) Credit contracts (1,280) 263 - 39 - - (978) 268 Other contracts (109) 99 53 (103) 1 - (59) 82 Total derivatives liabilities, net (a) (1,439) 374 53 (53) 49 (56) (1,072) 355 Long-term debt (b) (370) 94 - 37 (70) 96 (213) 15 Total $ (2,121) $ (659) $ (1) $ (32) $ (21) $ 40 $ (2,794) $ 152 (a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. (b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable. (c) Purchases, Sales, Issues and Settlements, Net primarily reflect the effect of consolidating previously unconsolidated securitization vehicles. |
Changes in Level 3 recurring fair value measurements (Liabilities) | Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out of Year at End of Year December 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,159 $ 1 $ (85) $ 154 $ - $ (105) $ 2,124 $ - Non-U.S. governments 30 - (7) 10 - (1) 32 - Corporate debt 1,883 15 (109) (210) 1,515 (1,724) 1,370 - RMBS 16,805 1,052 (512) (808) - - 16,537 - CMBS 2,696 77 (95) 118 - (211) 2,585 - CDO/ABS 6,110 149 (258) 300 7 (139) 6,169 - Total bonds available for sale 29,683 1,294 (1,066) (436) 1,522 (2,180) 28,817 - Other bond securities: Corporate debt - - - 1 16 - 17 - RMBS 1,105 32 - 460 43 (59) 1,581 (27) CMBS 369 (3) - (177) 4 - 193 (13) CDO/ABS 7,449 646 - (1,658) 698 (80) 7,055 (87) Total other bond securities 8,923 675 - (1,374) 761 (139) 8,846 (127) Equity securities available for sale: Common stock 1 2 - (3) - - - - Preferred stock - - - - - - - - Total equity securities available for sale 1 2 - (3) - - - - Other equity securities - (1) - (7) 22 - 14 (2) Mortgage and other loans receivable 6 - - 5 - - 11 - Other invested assets 5,650 435 (789) (530) 117 (229) 4,654 - Total $ 44,263 $ 2,405 $ (1,855) $ (2,345) $ 2,422 $ (2,548) $ 42,342 $ (129) Liabilities: Policyholder contract deposits $ (1,509) $ (315) $ - $ (465) $ - $ - $ (2,289) $ 64 Derivative liabilities, net: Interest rate contracts (74) - - 24 - - (50) (1) Foreign exchange contracts (8) 1 - - - - (7) 1 Equity contracts 47 2 - 5 - - 54 (3) Commodity contracts - - - - - - - - Credit contracts (978) 186 - 287 - - (505) 95 Other contracts (59) 79 - (68) - - (48) 76 Total derivative liabilities, net (a) (1,072) 268 - 248 - - (556) 168 Long-term debt (b) (213) 10 - 20 - - (183) 17 Total $ (2,794) $ (37) $ - $ (197) $ - $ - $ (3,028) $ 249 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 Year in Income Income (Loss) Settlements, Net In Out of Year at End of Year December 31, 2014 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions (c) $ 1,080 $ - $ 233 $ 914 $ 119 $ (187) $ 2,159 $ - Non-U.S. governments 16 1 (1) 9 8 (3) 30 - Corporate debt 1,255 12 19 (257) 1,363 (509) 1,883 - RMBS 14,941 1,012 53 796 120 (117) 16,805 - CMBS 5,735 69 243 85 83 (3,519) 2,696 - CDO/ABS 6,974 86 (38) 1,545 2,488 (4,945) 6,110 - Total bonds available for sale 30,001 1,180 509 3,092 4,181 (9,280) 29,683 - Other bond securities: Corporate debt - - - - - - - - RMBS 937 40 - 97 51 (20) 1,105 (13) CMBS 844 (6) - (141) 124 (452) 369 (7) CDO/ABS 8,834 1,098 - (1,805) 271 (949) 7,449 318 Total other bond securities 10,615 1,132 - (1,849) 446 (1,421) 8,923 298 Equity securities available for sale: Common stock 1 - - (1) 2 (1) 1 - Preferred stock - - - - - - - - Mutual funds - - - - 1 (1) - - Total equity securities available for sale 1 - - (1) 3 (2) 1 - Mortgage and other loans receivable - - - 6 - - 6 - Other invested assets 5,930 150 398 (83) 167 (912) 5,650 - Total $ 46,547 $ 2,462 $ 907 $ 1,165 $ 4,797 $ (11,615) $ 44,263 $ 298 Liabilities: Policyholder contract deposits $ (312) $ (1,127) $ (54) $ (16) $ - $ - $ (1,509) $ (218) Derivative liabilities, net: Interest rate contracts (100) (10) - 39 - (3) (74) (10) Foreign exchange contracts - 2 - (10) - - (8) 3 Equity contracts 49 21 - (18) 48 (53) 47 13 Commodity contracts 1 (1) - - - - - (1) Credit contracts (1,280) 263 - 39 - - (978) 268 Other contracts (109) 99 53 (103) 1 - (59) 82 Total derivatives liabilities, net (a) (1,439) 374 53 (53) 49 (56) (1,072) 355 Long-term debt (b) (370) 94 - 37 (70) 96 (213) 15 Total $ (2,121) $ (659) $ (1) $ (32) $ (21) $ 40 $ (2,794) $ 152 (a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. (b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable. (c) Purchases, Sales, Issues and Settlements, Net primarily reflect the effect of consolidating previously unconsolidated securitization vehicles. |
Schedule of net realized and unrealized gains and losses related to Level 3 items | Net Net Realized Investment Capital Other (in millions) Income Gains (Losses) Income Total December 31, 2015 Bonds available for sale $ 1,227 $ (49) $ 116 $ 1,294 Other bond securities 44 3 628 675 Equity securities available for sale - 2 - 2 Other equity securities - - (1) (1) Other invested assets 45 324 66 435 Policyholder contract deposits - (315) - (315) Derivative liabilities, net - (1) 269 268 Long-term debt - - 10 10 December 31, 2014 Bonds available for sale $ 1,236 $ (107) $ 51 $ 1,180 Other bond securities 95 - 1,037 1,132 Equity securities available for sale - - - - Other invested assets 175 (28) 3 150 Policyholder contract deposits - (1,127) - (1,127) Derivative liabilities, net 68 8 298 374 Long-term debt - - 94 94 |
Gross components of purchases, sales, issues and settlements, net | Purchases, Sales, Issues and (in millions) Purchases Sales Settlements Settlements, Net (a) December 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 279 $ (37) $ (88) $ 154 Non-U.S. governments 18 (1) (7) 10 Corporate debt 221 (60) (371) (210) RMBS 2,215 (194) (2,829) (808) CMBS 273 (28) (127) 118 CDO/ABS 1,400 (210) (890) 300 Total bonds available for sale 4,406 (530) (4,312) (436) Other bond securities: Corporate debt - - 1 1 RMBS 655 (22) (173) 460 CMBS - (79) (98) (177) CDO/ABS 242 (380) (1,520) (1,658) Total other bond securities 897 (481) (1,790) (1,374) Equity securities available for sale - (2) (1) (3) Other equity securities - - (7) (7) Mortgage and other loans receivable 5 - - 5 Other invested assets 682 (587) (625) (530) Total assets $ 5,990 $ (1,600) $ (6,735) $ (2,345) Liabilities: Policyholder contract deposits $ - $ (442) $ (23) $ (465) Derivative liabilities, net 19 - 229 248 Long-term debt (b) - - 20 20 Total liabilities $ 19 $ (442) $ 226 $ (197) December 31, 2014 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions (c) $ 1,041 $ (35) $ (92) $ 914 Non-U.S. governments 12 - (3) 9 Corporate debt 148 (8) (397) (257) RMBS 3,301 (124) (2,381) 796 CMBS 368 (224) (59) 85 CDO/ABS 2,760 (70) (1,145) 1,545 Total bonds available for sale 7,630 (461) (4,077) 3,092 Other bond securities: Corporate debt - - - - RMBS 211 (31) (83) 97 CMBS - (16) (125) (141) CDO/ABS 55 (21) (1,839) (1,805) Total other bond securities 266 (68) (2,047) (1,849) Equity securities available for sale - - (1) (1) Mortgage and other loans receivable 6 - - 6 Other invested assets 776 (25) (834) (83) Total assets $ 8,678 $ (554) $ (6,959) $ 1,165 Liabilities: Policyholder contract deposits $ - $ (149) $ 133 $ (16) Derivative liabilities, net 2 (3) (52) (53) Long-term debt (b) - - 37 37 Total liabilities $ 2 $ (152) $ 118 $ (32) (a) There were no issuances during the year s ended December 31, 2015 and 2014 . ( b ) Includes GIAs, notes, bonds, loans and mortgages payable. (c) Purchases primarily reflect the effect of consolidating previously unconsolidated securitization vehicles. |
Significant unobservable inputs used for recurring fair value measurements | Fair Value at December 31, Valuation Range (in millions) 2015 Technique Unobservable Input (b) (Weighted Average ) Assets: Obligations of states, $ 1,217 Discounted cash flow Yield 4.32% - 5.10% (4.71%) municipalities and political subdivisions Corporate debt 642 Discounted cash flow Yield 5.63% - 12.45% (9.04%) RMBS (a) 17,280 Discounted cash flow Constant prepayment rate 0.99% - 8.95% (4.97%) Loss severity 47.21% - 79.50% (63.35%) Constant default rate 3.49% - 9.04% (6.26%) Yield 3.13% - 6.14% (4.63%) CDO/ABS (a) 3,338 Discounted cash flow Yield 3.41% - 4.98% (4.19%) CMBS 2,388 Discounted cash flow Yield 0.00% - 17.65% (6.62%) Liabilities: Embedded derivatives within Policyholder contract deposits: GMWB and GMAB 1,234 Discounted cash flow Equity volatility 15.00% - 50.00% Base lapse rate 1.00% - 17.00% Dynamic lapse rate 0.20% - 25.50% Mortality multiplier (c) 80.00% - 104.27% Utilization rate 0.00% - 70.00% Equity / interest-rate correlation (d) 20.00% - 40.00% Index Annuities 715 Discounted cash flow Lapse rate 0.75% - 66.00% Mortality multiplier (c) 50.00% - 75.00% Indexed Life 332 Discounted cash flow Equity volatility 13.25% to 22.00% Base lapse rate 2.00% to 19.00% Mortality rate 0.00% to 40.00% Fair Value at December 31, Valuation Range (in millions) 2014 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, $ 1,178 Discounted cash flow Yield 3.9% - 4.62% (4.26%) municipalities and political subdivisions Corporate debt 1,145 Discounted cash flow Yield 3.46% - 8.75% (6.10%) RMBS (a) 17,353 Discounted cash flow Constant prepayment rate 0.59% - 9.35% (4.97%) Loss severity 46.04% - 79.56% (62.80%) Constant default rate 3.67% - 9.96% (6.82%) Yield 2.67% - 6.64% (4.65%) CDO/ABS (a) 5,282 Discounted cash flow Yield 4.70% - 9.70% (7.10%) CMBS 2,687 Discounted cash flow Yield 0.00% - 17.29% (6.06%) Liabilities: Embedded derivatives within Policyholder contract deposits: GMWB and GMAB 957 Discounted cash flow Equity volatility 6.00% - 39.00% Base lapse rate 1.00% - 28.00% Dynamic lapse rate 0.20% - 42.00% Mortality rate 0.10% - 35.00% Utilization rate 0.50% - 30.00% Index Annuities 294 Discounted cash flow Lapse rate 0.75% - 66.00% Mortality rate 0.02% - 44.06% Indexed Life 259 Discounted cash flow Equity volatility 10.00% to 25.00% Base lapse rate 2.00% to 19.00% Mortality rate 0.00% to 20.00% Derivative liabilities - credit contracts (e) 791 BET Recovery rate 5.00% - 23.00% (13.00%) Diversity score 8 - 25 (13) Weighted average life 2.67 - 10.49 years (4.65 years) (a) Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitiza tion vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us, because there are other factors relevant to the fair values of specific tranches owned by us including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points. (b) Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities. (c) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table for GMWB and GMAB, and the 1975-1980 Modified Basic Table for index annuities. (d) A n equity / interest rate correlation factor was added to the valuation model in the fourth quarter of 2015 . (e ) Beginning in the third quarter of 2015, we began valuing these instruments using prices obtained from vendors and/or counterparties and discontinued use of the BET model. |
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share | December 31, 2015 December 31, 2014 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 $ 1,774 $ 436 $ 2,275 $ 450 Real Estate / Infrastructure Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities 306 213 384 227 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 107 41 121 26 Distressed Securities of companies that are in default, under bankruptcy protection, or troubled 146 41 164 43 Other Includes multi-strategy, mezzanine, and other strategies 298 239 216 234 Total private equity funds 2,631 970 3,160 980 Hedge funds: Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 1,194 - 1,109 - Long-short Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk 2,978 25 2,428 1 Macro Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions 555 - 498 - Distressed Securities of companies that are in default, under bankruptcy protection or troubled 699 8 731 5 Emerging markets Investments in the financial markets of developing countries 353 - 308 - Other Includes multi-strategy, relative value, and other strategies 167 - 125 - Total hedge funds 5,946 33 5,199 6 Total $ 8,577 $ 1,003 $ 8,359 $ 986 |
Gains or losses related to the eligible instruments for which AIG elected the fair value option | Years Ended December 31, Gain (Loss) (in millions) 2015 2014 2013 Assets: Mortgage and other loans receivable $ - $ - $ 3 Bond and equity securities 616 2,099 1,667 Alternative investments (a) 36 313 360 Other, including Short-term investments 2 10 11 Liabilities: Long-term debt (b) (38) (269) 327 Other liabilities (3) (13) (15) Total gain $ 613 $ 2,140 $ 2,353 (a) Includes certain hedge funds, private equity funds and other investment partnerships . (b) Includes GIAs, notes, bonds and mortgages payable . |
Difference between fair values and aggregate contractual principal amounts, fair value option | December 31, 2015 December 31, 2014 Outstanding Outstanding (in millions) Fair Value Principal Amount Difference Fair Value Principal Amount Difference Assets: Mortgage and other loans receivable $ 11 $ 9 $ 2 $ 6 $ 4 $ 2 Liabilities: Long-term debt * $ 3,670 $ 2,675 $ 995 $ 5,466 $ 4,101 $ 1,365 * 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 December 31, (in millions) Level 1 Level 2 Level 3 Total 2015 2014 2013 December 31, 2015 Other investments $ - $ - $ 1,117 $ 1,117 $ 189 $ 134 $ 112 Investments in life settlements - - 828 828 540 201 971 Other assets - - 129 129 80 7 31 Total $ - $ - $ 2,074 $ 2,074 $ 809 $ 342 $ 1,114 December 31, 2014 Other investments $ - $ - $ 790 $ 790 Investments in life settlements - - 537 537 Other assets - - 1 1 Total $ - $ - $ 1,328 $ 1,328 |
Carrying values and estimated fair values of AIG's financial instruments | Estimated Fair Value Carrying (in millions) Level 1 Level 2 Level 3 Total Value December 31, 2015 Assets: Mortgage and other loans receivable $ - $ 198 $ 30,147 $ 30,345 $ 29,554 Other invested assets - 563 2,880 3,443 4,169 Short-term investments - 7,541 - 7,541 7,541 Cash 1,629 - - 1,629 1,629 Liabilities: Policyholder contract deposits associated with investment-type contracts - 309 117,537 117,846 108,788 Other liabilities - 2,852 - 2,852 2,852 Long-term debt - 21,686 4,528 26,214 25,680 December 31, 2014 Assets: Mortgage and other loans receivable $ - $ 449 $ 26,157 $ 26,606 $ 24,984 Other invested assets - 593 2,882 3,475 4,352 Short-term investments - 9,559 - 9,559 9,559 Cash 1,758 - - 1,758 1,758 Liabilities: Policyholder contract deposits associated with investment-type contracts - 244 119,268 119,512 106,395 Other liabilities - 1,120 - 1,120 1,120 Long-term debt - 24,749 2,932 27,681 25,751 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) December 31, 2015 Bonds available for sale: U.S. government and government sponsored entities $ 1,698 $ 155 $ (9) $ 1,844 $ - Obligations of states, municipalities and political subdivisions 26,003 1,424 (104) 27,323 19 Non-U.S. governments 17,752 805 (362) 18,195 - Corporate debt 133,513 6,462 (3,987) 135,988 (87) Mortgage-backed, asset-backed and collateralized: RMBS 33,878 2,760 (411) 36,227 1,326 CMBS 13,139 561 (129) 13,571 185 CDO/ABS 14,985 360 (248) 15,097 39 Total mortgage-backed, asset-backed and collateralized 62,002 3,681 (788) 64,895 1,550 Total bonds available for sale (b) 240,968 12,527 (5,250) 248,245 1,482 Equity securities available for sale: Common stock 913 1,504 (16) 2,401 - Preferred stock 19 3 - 22 - Mutual funds 447 53 (8) 492 - Total equity securities available for sale 1,379 1,560 (24) 2,915 - Total $ 242,347 $ 14,087 $ (5,274) $ 251,160 $ 1,482 December 31, 2014 Bonds available for sale: U.S. government and government sponsored entities $ 2,806 $ 204 $ (18) $ 2,992 $ - Obligations of states, municipalities and political subdivisions 25,979 1,729 (49) 27,659 (13) Non-U.S. governments 20,280 966 (151) 21,095 - Corporate debt 134,961 10,594 (1,122) 144,433 64 Mortgage-backed, asset-backed and collateralized: RMBS 34,377 3,435 (292) 37,520 1,767 CMBS 12,129 815 (59) 12,885 215 CDO/ABS 12,775 628 (128) 13,275 47 Total mortgage-backed, asset-backed and collateralized 59,281 4,878 (479) 63,680 2,029 Total bonds available for sale (b) 243,307 18,371 (1,819) 259,859 2,080 Equity securities available for sale: Common stock 1,185 2,461 (17) 3,629 - Preferred stock 21 4 - 25 - Mutual funds 724 54 (37) 741 - Total equity securities available for sale 1,930 2,519 (54) 4,395 - Total $ 245,237 $ 20,890 $ (1,873) $ 264,254 $ 2,080 ( 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 fair value of such securities subsequent to the impairment measurement date. (b) At December 31, 2015 and 2014 , bonds available for sale held by us that were below investment grade or not rated totaled $ 34.9 billion and $ 35.1 billion, respectively. |
The fair value and gross unrealized losses on AIG's available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (in millions) Value Losses Value Losses Value Losses December 31, 2015 Bonds available for sale: U.S. government and government sponsored entities $ 483 $ 9 $ 1 $ - $ 484 $ 9 Obligations of states, municipalities and political subdivisions 2,382 87 268 17 2,650 104 Non-U.S. governments 4,327 203 832 159 5,159 362 Corporate debt 41,317 2,514 5,428 1,473 46,745 3,987 RMBS 7,215 133 4,318 278 11,533 411 CMBS 4,138 108 573 21 4,711 129 CDO/ABS 7,064 104 2,175 144 9,239 248 Total bonds available for sale 66,926 3,158 13,595 2,092 80,521 5,250 Equity securities available for sale: Common stock 91 16 - - 91 16 Mutual funds 200 8 - - 200 8 Total equity securities available for sale 291 24 - - 291 24 Total $ 67,217 $ 3,182 $ 13,595 $ 2,092 $ 80,812 $ 5,274 December 31, 2014 Bonds available for sale: U.S. government and government sponsored entities $ 526 $ 5 $ 281 $ 13 $ 807 $ 18 Obligations of states, municipalities and political subdivisions 495 9 794 40 1,289 49 Non-U.S. governments 1,606 42 1,690 109 3,296 151 Corporate debt 12,132 450 11,570 672 23,702 1,122 RMBS 4,621 109 3,996 183 8,617 292 CMBS 220 1 2,087 58 2,307 59 CDO/ABS 3,857 50 1,860 78 5,717 128 Total bonds available for sale 23,457 666 22,278 1,153 45,735 1,819 Equity securities available for sale: Common stock 88 16 2 1 90 17 Mutual funds 280 37 64 - 344 37 Total equity securities available for sale 368 53 66 1 434 54 Total $ 23,825 $ 719 $ 22,344 $ 1,154 $ 46,169 $ 1,873 |
The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity | Total Fixed Maturity Securities Fixed Maturity Securities Available December 31, 2015 Available for Sale for Sale in a Loss Position (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 9,176 $ 9,277 $ 1,122 $ 1,103 Due after one year through five years 47,230 49,196 9,847 9,494 Due after five years through ten years 54,120 54,459 22,296 20,686 Due after ten years 68,440 70,418 26,235 23,755 Mortgage-backed, asset-backed and collateralized 62,002 64,895 26,271 25,483 Total $ 240,968 $ 248,245 $ 85,771 $ 80,521 December 31, 2014 Due in one year or less $ 9,821 $ 9,975 $ 637 $ 620 Due after one year through five years 48,352 50,873 6,669 6,529 Due after five years through ten years 62,685 65,889 12,873 12,338 Due after ten years 63,168 69,442 10,255 9,607 Mortgage-backed, asset-backed and collateralized 59,281 63,680 17,120 16,641 Total $ 243,307 $ 259,859 $ 47,554 $ 45,735 |
The gross realized gains and gross realized losses from sales of AIG's available for sale securities | Years Ended December 31, 2015 2014 2013 Gross Gross Gross Gross Gross Gross Realized Realized Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Gains Losses Fixed maturity securities $ 517 $ 423 $ 703 $ 118 $ 2,634 $ 202 Equity securities 1,060 28 135 24 130 19 Total $ 1,577 $ 451 $ 838 $ 142 $ 2,764 $ 221 |
The fair value of AIG's other securities | December 31, 2015 December 31, 2014 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 3,369 19 % $ 5,498 27 % Obligations of states, municipalities and political subdivisions 75 - 122 1 Non-U.S. governments 50 - 2 - Corporate debt 2,035 12 719 3 Mortgage-backed, asset-backed and collateralized : RMBS 2,230 13 2,094 10 CMBS 750 4 1,077 5 CDO/ABS and other collateralized * 8,273 47 10,200 49 Total mortgage-backed, asset-backed and collateralized 11,253 64 13,371 64 Total fixed maturity securities 16,782 95 19,712 95 Equity securities 921 5 1,049 5 Total $ 17,703 100 % $ 20,761 100 % * Inclu des $ 712 m illion and $ 859 m illion of U.S. Government agency backed ABS at December 31, 2015 and 2014 , respectively. |
Components of other invested assets | December 31, (in millions) 2015 2014 Alternative investments (a) $ 18,150 $ 19,656 Investment real estate (b) 6,579 3,612 Aircraft asset investments (c) 477 651 Investments in life settlements 3,606 3,753 Investment in AerCap - 4,972 All other investments 982 1,874 Total $ 29,794 $ 34,518 (a) Includes hedge funds, private equity funds, affordable housing partnerships , and other investment partnership s. (b) Net of accumulated depreciation of $ 668 million and $ 315 million in 2015 and 2014 , respectively. (c) Consist s of investments in aircraft equipment held in consolidated trusts. |
The carrying value and ownership percentage of AIA and equity method investments | 2015 2014 Carrying Ownership Carrying Ownership (in millions, except percentages) Value Percentage Value Percentage Equity method investments $ 14,259 Various $ 18,951 Various |
Schedule of information regarding investments in life settlements | December 31, 2015 Number of Carrying Face Value (dollars in millions) Contracts Value (Death Benefits) Remaining Life Expectancy of Insureds: 0 – 1 year 1 $ - $ - 1 – 2 years 9 9 17 2 – 3 years 16 10 20 3 – 4 years 72 50 113 4 – 5 years 156 235 485 Thereafter 4,300 3,302 14,233 Total 4,554 $ 3,606 $ 14,868 |
Components of net investment income | Years Ended December 31, (in millions) 2015 2014 2013 Fixed maturity securities, including short-term investments $ 11,332 $ 12,322 $ 12,044 Equity securities 99 221 178 Interest on mortgage and other loans 1,417 1,272 1,144 Alternative investments * 1,476 2,624 2,803 Real estate 181 110 128 Other investments 76 47 61 Total investment income 14,581 16,596 16,358 Investment expenses 528 517 548 Net investment income $ 14,053 $ 16,079 $ 15,810 * Includes hedge funds, private equity funds, affordable housing partnerships, investments in life settlements and other investment partnerships. |
Components of net realized capital gains (losses) | Years Ended December 31, (in millions) 2015 2014 2013 Sales of fixed maturity securities $ 94 $ 585 $ 2,432 Sales of equity securities (a) 1,032 111 111 Other-than-temporary impairments: Severity (13) (3) (6) Change in intent (233) (40) (48) Foreign currency declines (57) (19) (1) Issuer-specific credit events (348) (169) (170) Adverse projected cash flows (20) (16) (7) Provision for loan losses (58) (1) (26) Foreign exchange transactions 416 598 151 Derivative instruments 341 (177) 287 Impairments on investments in life settlements (540) (201) (971) Other 162 (b) 71 187 Net realized capital gains $ 776 $ 739 $ 1,939 ( a ) Includes realized gains on the sale of our equity interests in PICC. ( b) Includes realized gains due to the sale of Class B shares of Prudential Financial, Inc. and common shares of Springleaf Holdings, Inc. and realized losses on the sale of ordinary shares of AerCap . |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | Years Ended December 31, (in millions) 2015 2014 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ (9,275) $ 6,809 Equity securities (929) 535 Other investments (803) 376 Total increase (decrease) in unrealized appreciation (depreciation) of investments $ (11,007) $ 7,720 |
Credit impairments recognized in earnings for available for sale fixed maturity securities | Years Ended December 31, (in millions) 2015 2014 2013 Balance, beginning of year $ 2,659 $ 3,872 $ 5,164 Increases due to: Credit impairments on new securities subject to impairment losses 111 49 47 Additional credit impairments on previously impaired securities 109 85 78 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell (399) (613) (643) Credit impaired securities for which there is a current intent or anticipated requirement to sell 2 - - Accretion on securities previously impaired due to credit * (735) (725) (774) Other - (9) - Balance, end of year $ 1,747 $ 2,659 $ 3,872 * 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 | (in millions) At Date of Acquisition Contractually required payments (principal and interest) $ 33,191 Cash flows expected to be collected * 26,882 Recorded investment in acquired securities 17,955 * Represents undiscounted expected cash flows, including both principal and interest. |
Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date | December 31, December 31, (in millions) 2015 2014 Outstanding principal balance $ 16,871 $ 16,962 Amortized cost 12,303 12,216 Fair value 13,164 13,462 |
Activity for accretable yield on Purchased Credit Impaired (PCI) Securities | Years Ended December 31, (in millions) 2015 2014 Balance, beginning of year $ 6,865 $ 6,940 Newly purchased PCI securities 696 1,289 Disposals (13) - Accretion (879) (880) Effect of changes in interest rate indices (251) (542) Net reclassification from (to) non-accretable difference, including effects of prepayments 428 58 Balance, end of year $ 6,846 $ 6,865 |
Schedule of fair value of securities pledged to counterparties under secured financing transactions | (in millions) December 31, 2015 December 31, 2014 Fixed maturity securities available for sale $ 1,145 $ - Other bond securities, at fair value 1,740 2,122 |
Schedule of fair value of securities pledged to the entity under reverse repurchase agreements | (in millions) December 31, 2015 December 31, 2014 Securities collateral pledged to us $ 1,742 $ 2,506 Amount sold or repledged by us - 131 |
Investment [Line Items] | |
Summarized financial information of AIG's equity method investees | Years Ended December 31, (in millions) 2015 2014 2013 Operating results: Total revenues $ 22,055 $ 29,579 $ 19,181 Total expenses (3,898) (7,828) (5,515) Net income $ 18,157 $ 21,751 $ 13,666 At December 31, (in millions) 2015 2014 Balance sheet: Total assets $ 201,007 $ 207,994 Total liabilities $ (33,424) $ (67,346) |
LENDING ACTIVITIES (Tables)
LENDING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
LENDING ACTIVITIES | |
Composition of Mortgages and other loans receivable | December 31, December 31, (in millions) 2015 2014 Commercial mortgages * $ 22,067 $ 18,909 Residential mortgages 2,758 1,007 Life insurance policy loans 2,597 2,710 Commercial loans, other loans and notes receivable 2,451 2,635 Total mortgage and other loans receivable 29,873 25,261 Allowance for credit losses (308) (271) Mortgage and other loans receivable, net $ 29,565 $ 24,990 * Commercial mortgages primarily represent loans for office s , retail and apartments , with exposures in New York and California representing the largest geographic concentrations ( aggregating approximately 22 percent and 12 percent, respectively, at December 31, 2015 , and 18 percent and 14 percent, respectively, at December 31, 2014 ) . Nonperforming loans ar e generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming mortgages were not significant for all periods presented. |
Schedule of credit quality indicators for the commercial mortgage loans | Number Percent December 31, 2015 of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total $ Credit Quality Indicator: In good standing 830 $ 3,916 $ 7,484 $ 4,809 $ 1,902 $ 2,082 $ 1,435 $ 21,628 98 % Restructured (a) 9 - 156 25 6 16 6 209 1 90 days or less delinquent 1 - - 4 - - - 4 - >90 days delinquent or in process of foreclosure 9 3 205 - 6 - 12 226 1 Total (b) 849 $ 3,919 $ 7,845 $ 4,838 $ 1,914 $ 2,098 $ 1,453 $ 22,067 100 % Allowance for credit losses: Specific - 16 1 6 1 - 24 - % General 35 47 29 8 15 13 147 1 Total allowance for credit losses $ 35 $ 63 $ 30 $ 14 $ 16 $ 13 $ 171 1 % December 31, 2014 (dollars in millions) Credit Quality Indicator: In good standing 1,007 $ 3,384 $ 6,100 $ 3,807 $ 1,689 $ 1,660 $ 1,812 $ 18,452 98 % Restructured (a) 7 - 343 7 - 17 - 367 2 90 days or less delinquent 6 - - 10 - - 5 15 - >90 days delinquent or in process of foreclosure 4 - 75 - - - - 75 - Total (b) 1,024 $ 3,384 $ 6,518 $ 3,824 $ 1,689 $ 1,677 $ 1,817 $ 18,909 100 % Allowance for credit losses: Specific $ - $ 27 $ 3 $ 13 $ 3 $ 9 $ 55 - % General 3 59 25 9 3 5 104 1 Total allowance for credit losses $ 3 $ 86 $ 28 $ 22 $ 6 $ 14 $ 159 1 % (a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. See discussion of troubled debt restructurings below. (b) Does not reflect allowance for credit losses . (c) Approximately 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 | 2015 2014 2013 Years Ended December 31, Commercial Other Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 159 $ 112 $ 271 $ 201 $ 111 $ 312 $ 159 $ 246 $ 405 Loans charged off (23) (6) (29) (29) (39) (68) (12) (104) (116) Recoveries of loans previously charged off 4 1 5 18 16 34 3 6 9 Net charge-offs (19) (5) (24) (11) (23) (34) (9) (98) (107) Provision for loan losses 31 27 58 (31) 23 (8) 52 (32) 20 Other - 3 3 - 1 1 (1) (5) (6) Allowance, end of year $ 171 * $ 137 $ 308 $ 159 * $ 112 $ 271 $ 201 * $ 111 $ 312 * Of the total allowance at the end of the year , $ 24 million and $ 55 million relates to individually assessed credit losses on $ 507 million and $ 192 million of commercial mortgage s as of December 31, 2015 and 2014 , respectively. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Effects of Reinsurance [Line Items] | |
Supplemental information for gross loss and benefit reserves net of ceded reinsurance | At December 31, 2015 2014 As Net of As Net of (in millions) Reported Reinsurance Reported Reinsurance Liability for unpaid losses and loss adjustment expenses (a) $ (74,942) $ (60,603) $ (77,260) $ (61,612) Future policy benefits for life and accident and health insurance contracts (43,585) (42,506) (42,749) (41,767) Reserve for unearned premiums (21,318) (18,380) (21,324) (18,278) Reinsurance assets (b) 18,356 19,676 (a) In 2015 and 2014 , the Net of Reinsurance amount reflects the cession under the June 17, 2011 transaction with National Indemnity Company (NICO) of $ 1.8 billion and $ 1.5 billion , respectively . (b) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses. |
Schedule of long-duration insurance in force ceded to other insurance companies | At December 31, (in millions) 2015 2014 2013 * Long-duration insurance in force ceded $ 177,025 $ 180,178 $ 122,012 * Excludes amounts related to held-for-sale entities . |
Short-Duration Reinsurance | |
Effects of Reinsurance [Line Items] | |
Schedule of insurance premiums written and earned | Years Ended December 31, Non-Life Insurance Companies (in millions) 2015 2014 2013 Premiums written: Direct $ 37,698 $ 39,375 $ 39,833 Assumed 2,972 3,399 4,306 Ceded (7,604) (8,318) (9,514) Net $ 33,066 $ 34,456 $ 34,625 Premiums earned: Direct $ 37,105 $ 38,707 $ 39,018 Assumed 2,659 3,258 3,516 Ceded (7,593) (8,140) (8,585) Net $ 32,171 $ 33,825 $ 33,949 |
Long-Duration Reinsurance | |
Effects of Reinsurance [Line Items] | |
Schedule of insurance premiums written and earned | Years Ended December 31, Life Insurance Companies Run-off insurance lines Total (in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Gross premiums $ 5,234 $ 4,059 $ 4,155 $ 6 $ 11 $ 9 $ 5,240 $ 4,070 $ 4,164 Ceded premiums (756) (661) (620) - - - (756) (661) (620) Net $ 4,478 $ 3,398 $ 3,535 $ 6 $ 11 $ 9 $ 4,484 $ 3,409 $ 3,544 |
DEFERRED POLICY ACQUISITION C48
DEFERRED POLICY ACQUISITION COSTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DEFERRED POLICY ACQUISITION COSTS | |
Rollforward of DAC | Years Ended December 31, (in millions) 2015 2014 2013 Non-Life Insurance Companies: Balance, beginning of year $ 2,551 $ 2,493 $ 2,342 Acquisition costs deferred 4,537 4,805 4,803 Amortization expense (4,313) (4,599) (4,481) Other (144) (148) (171) Balance, end of year $ 2,631 $ 2,551 $ 2,493 Life Insurance Companies: Balance, beginning of year $ 7,258 $ 6,920 $ 5,815 Acquisition costs deferred 1,288 1,114 1,034 Amortization expense (916) (727) (674) Change in net unrealized gains (losses) on securities 848 (360) 784 Decrease due to foreign exchange (34) (32) (39) Other 23 343 - Balance, end of year $ 8,467 $ 7,258 $ 6,920 Consolidation and eliminations 17 18 23 Total deferred policy acquisition costs * $ 11,115 $ 9,827 $ 9,436 Supplemental Information: VOBA amortization expense included in Life Insurance Companies DAC amortization 64 17 23 VOBA, end of year included in Life Insurance Companies DAC balance 453 510 373 * Net of reductions in DAC of $ 583 m i llion, $ 1.4 b illion, and $ 1.1 billion for Life Insurance Companies at December 31, 2015 , 2014 and 2013 , respectively , related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC). |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entity Primary Beneficiary | |
Variable Interest Entities [Line Items] | |
Schedule of Variable Interest Entities | (in millions) Real Estate and Investment Entities (d) Securitization Vehicles Structured Investment Vehicle Affordable Housing Partnerships Other Total December 31, 2015 Assets: Bonds available for sale $ - $ 10,309 $ - $ - $ 15 $ 10,324 Other bond securities - 5,756 387 - 24 6,167 Mortgage and other loans receivable 1 1,960 - - 132 2,093 Other invested assets 489 477 - 2,608 24 3,598 Other (a) 29 1,349 94 293 159 1,924 Total assets (b)(e) $ 519 $ 19,851 $ 481 $ 2,901 $ 354 $ 24,106 Liabilities: Long-term debt $ - $ 1,025 $ 53 $ 1,513 $ 6 $ 2,597 Other (c) 34 236 1 214 71 556 Total liabilities (e) $ 34 $ 1,261 $ 54 $ 1,727 $ 77 $ 3,153 December 31, 2014 Assets: Bonds available for sale $ - $ 11,459 $ - $ - $ 35 $ 11,494 Other bond securities - 7,251 615 - 40 7,906 Mortgage and other loans receivable - 2,398 - - 162 2,560 Other invested assets 577 651 - 1,684 29 2,941 Other (a) 40 1,447 140 49 76 1,752 Total assets (b) $ 617 $ 23,206 $ 755 $ 1,733 $ 342 $ 26,653 Liabilities: Long-term debt $ 69 $ 1,370 $ 52 $ 199 $ 7 $ 1,697 Other (c) 32 276 - 101 37 446 Total liabilities $ 101 $ 1,646 $ 52 $ 300 $ 44 $ 2,143 (a) Comprised primarily of Short-term investments, Premiums and other receivables or Other assets at December 31, 2015 and 2014 . ( b ) The assets of each VIE can be used only to settle specific obligations of that VIE. ( c ) Comprised primarily of Other liabilities and Derivative liabilities, at fair value, at both December 31, 2015 and 2014 . ( d ) At December 31 , 2015 and 2014 , off-balance sheet exposure primarily consisting of commitment s to real estate and investment entities was $ 131.2 million and $ 56.4 million, respectively. (e) Includes the effect of consolidating previously unconsolidated partnerships. |
Variable Interest Entity Not Primary Beneficiary | |
Variable Interest Entities [Line Items] | |
Schedule of Variable Interest Entities | Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (a) Sheet Total December 31, 2015 Real estate and investment entities $ 21,951 $ 3,072 $ 398 $ 3,470 Affordable housing partnerships 5,255 774 - 774 Other 1,110 215 1,000 1,215 Total $ 28,316 $ 4,061 $ 1,398 $ 5,459 December 31, 2014 Real estate and investment entities $ 19,949 $ 2,785 $ 454 $ 3,239 Affordable housing partnerships 7,911 425 - 425 Other (c) 1,959 304 992 (b) 1,296 Total $ 29,819 $ 3,514 $ 1,446 $ 4,960 (a) At December 31, 2015 and 2014 , $ 3.8 billion and $ 3.2 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (b) These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. (c) The On-Balance and Off-Balance sheet amounts have been revised from $32 million and $0 to $304 million and $992 million, respectively, to correct the Maximum Exposure to Loss as of December 31, 2014, which are not considered material to previously issued financial statements. |
DERIVATIVES AND HEDGE ACCOUNT50
DERIVATIVES AND HEDGE ACCOUNTING (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
Notional amounts and fair values of derivative instruments | December 31, 2015 December 31, 2014 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Notional Fair Notional Fair Notional Fair Notional Fair (in millions) Amount Value Amount Value Amount Value Amount Value Derivatives designated as hedging instruments: (a) Interest rate contracts $ 301 $ 1 $ 725 $ 2 $ 155 $ - $ 25 $ 2 Foreign exchange contracts 2,903 207 914 56 611 25 1,794 239 Equity contracts - - 121 23 7 1 104 13 Derivatives not designated as hedging instruments: (a) Interest rate contracts 45,846 3,161 65,733 2,197 65,070 3,743 45,104 3,131 Foreign exchange contracts 9,472 559 8,900 1,148 13,667 815 8,516 1,251 Equity contracts 6,656 177 5,028 45 7,565 206 3,049 90 Commodity contracts - - - - 15 - 11 6 Credit contracts (b) 4 3 1,289 508 5 4 5,288 982 Other contracts (c) 37,586 23 203 69 36,155 31 538 90 Total derivatives, gross $ 102,768 $ 4,131 $ 82,913 $ 4,048 $ 123,250 $ 4,825 $ 64,429 $ 5,804 Counterparty netting (d) (1,268) (1,268) (2,102) (2,102) Cash collateral (e) (1,554) (760) (1,119) (1,429) Total derivatives on consolidated balance sheets (f) $ 1,309 $ 2,020 $ 1,604 $ 2,273 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b ) As of December 31, 2015 and 2014 , included super senior multi-sector CDOs with a net notional amount of $ 1.1 billion and $ 2.6 billion (fair value liability of $ 483 million and $ 947 million), respectively. The expected weighted average maturity as of December 31, 2015 is six years. Because of long-term maturities of the CDSs in the 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 e xposure to loss on the portfolio. As of December 31, 2015 , there were no super senior corporate debt/CLOs remaining. As of December 31, 2014 , included super senior corporate debt/CLOs with a net notional amount of $ 2.5 billion (fair value liability of $ 7 million). (c) Consists primarily of stable value wraps and contracts with multiple underlying exposures. (d) Represents netting of derivative exposures covered by a qualifying master netti ng agreement. (e) Represents cash collateral posted and received that is eligible for netting. (f) Freestanding derivatives only, excludes Embedded derivatives. Derivative instrument assets and liabilities are recorded in Other Assets and Liabilities, resp ectively. Fair value of assets related to bifurcated Embedded derivatives was zero at both December 31, 2015 and December 31, 2014. Fair value of liabilities related to bifurcated Embedded derivatives was $ 2.3 billion and $ 1.6 billion, respectively, at December 31, 2015 and December 31, 2014. A bifurcated Embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. Embedded derivatives are primarily related to guaran tee features in variable annuity products, which include equity and interest rate components. |
Gain (loss) recognized in earnings on AIG's derivative instruments in fair value hedging relationships in the Consolidated Statements of Income | Gains/(Losses) Recognized in Earnings for: Including Gains/(Losses) Attributable to: Hedging Hedged Hedge Excluded (in millions) Derivatives (a) Items Ineffectiveness Components Other (b) Year ended December 31, 2015 Interest rate contracts : Realized capital gains/(losses) $ - $ 1 $ 1 $ - $ - Interest credited to policyholder account balances - - - - - Other income - 9 - - 9 Gain/(Loss) on extinguishment of debt - 14 - - 14 Foreign exchange contracts : Realized capital gains/(losses) 202 (167) - 32 3 Interest credited to policyholder account balances - (1) - - (1) Other income - 17 - - 17 Gain/(Loss) on extinguishment of debt - 17 - - 17 Equity contracts : Realized capital gains/(losses) (45) 45 - - - Year ended December 31, 2014 Interest rate contracts : Realized capital gains/(losses) $ 1 $ (2) $ - $ - $ (1) Interest credited to policyholder account balances - (1) - - (1) Other income - 43 - - 43 Gain/(Loss) on extinguishment of debt - 164 - - 164 Foreign exchange contracts : Realized capital gains/(losses) (129) 147 - 8 10 Interest credited to policyholder account balances - (3) - - (3) Other income - 23 - - 23 Gain/(Loss) on extinguishment of debt - 2 - - 2 Equity contracts : Realized capital gains/(losses) (23) 22 - (1) - Year ended December 31, 2013 Interest rate contracts : Realized capital gains/(losses) $ (5) $ 5 $ - $ - $ - Interest credited to policyholder account balances - (2) - - (2) Other income - 99 - - 99 Foreign exchange contracts : Realized capital gains/(losses) (187) 204 - 17 - (a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged item . (b) Represents accretion/amortization of opening fair value of the hedged item at inception of hedge relationship, amortization of basis adjustment on hedged item following the discontinuation of hedge accounting, and the release of debt basis adjustment following the repurchase of issued debt that was part of previously-discontinued fair value h edge relationship. |
Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statements of Income | Gains (Losses) Years Ended December 31, Recognized in Earnings (in millions) 2015 2014 2013 By Derivative Type: Interest rate contracts $ 339 $ 851 $ (259) Foreign exchange contracts 416 309 41 Equity contracts (182) (274) (507) Commodity contracts (1) (1) (4) Credit contracts 186 263 567 Other contracts 69 192 85 Embedded derivatives 49 (841) 1,099 Total $ 876 $ 499 $ 1,022 By Classification: Policy fees $ 78 $ - $ - Net investment income 26 102 28 Net realized capital gains (losses) 365 (219) 257 Other income 401 599 750 Policyholder benefits and claims incurred 6 17 (13) Total $ 876 $ 499 $ 1,022 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill Disclosure | |
Schedule of changes in goodwill by reportable segment | (in millions) Commercial Consumer Other Total Balance at January 1, 2013: Goodwill - gross $ 2,444 $ 2,502 $ - $ 4,946 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill 1,178 291 - 1,469 Increase (decrease) due to: Other 6 - - 6 Balance at December 31, 2013: Goodwill - gross 2,450 2,502 - 4,952 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill 1,184 291 - 1,475 Increase (decrease) due to: Acquisition - 28 - 28 Other (49) - - (49) Balance at December 31, 2014: Goodwill - gross 2,401 2,530 - 4,931 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill 1,135 319 - 1,454 Increase (decrease) due to: Acquisition 96 82 30 208 Other (50) 1 - (49) Balance at December 31, 2015: Goodwill - gross 2,447 2,613 30 5,090 Accumulated impairments (1,266) (2,211) - (3,477) Net goodwill $ 1,181 $ 402 $ 30 $ 1,613 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | |
Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense | Years Ended December 31, (in millions) 2015 2014 2013 Liability for unpaid losses and loss adjustment expenses, beginning of year $ 77,260 $ 81,547 $ 87,991 Reinsurance recoverable (15,648) (17,231) (19,209) Net liability for unpaid losses and loss adjustment expenses, beginning of year 61,612 64,316 68,782 Foreign exchange effect (1,429) (1,061) (617) Dispositions - - (79) Changes in net loss reserves due to retroactive asbestos reinsurance transaction 20 141 22 Total 60,203 63,396 68,108 Losses and loss adjustment expenses incurred : Current year 20,308 21,279 22,171 Prior years, excluding discount 4,119 703 557 Prior years, discount charge (benefit) (71) 478 (309) Total 24,356 22,460 22,419 Losses and loss adjustment expenses paid * : Current year 5,751 6,358 7,431 Prior years 18,205 17,886 18,780 Total 23,956 24,244 26,211 Balance, end of year: Net liability for unpaid losses and loss adjustment expenses 60,603 61,612 64,316 Reinsurance recoverable 14,339 15,648 17,231 Total $ 74,942 $ 77,260 $ 81,547 * Includes amounts related to dispositions through the date of disp osition. |
Schedule of Policyholder contract deposits by product type | At December 31, (in millions) 2015 2014 Policyholder contract deposits: Fixed Annuities $ 52,397 $ 53,370 Group Retirement 37,865 37,693 Life 14,028 13,717 Retirement Income Solutions 13,927 10,040 Institutional Markets 9,371 9,793 Total Policyholder contract deposits $ 127,588 $ 124,613 |
VARIABLE LIFE AND ANNUITY CON53
VARIABLE LIFE AND ANNUITY CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
VARIABLE LIFE AND ANNUITY CONTRACTS | |
Schedule of Account balances of variable annuity contracts with guarantees were invested in separate account investment | At December 31, (in millions) 2015 2014 Equity funds $ 39,284 $ 40,811 Bond funds 7,261 7,566 Balanced funds 24,849 22,354 Money market funds 826 797 Total $ 72,220 $ 71,528 |
Schedule of details concerning entity's GMDB exposures, by benefit type | At December 31, 2015 2014 Net Deposits Net Deposits Plus a Minimum Highest Contract Plus a Minimum Highest Contract (dollars in billions) Return Value Attained Return Value Attained Account value $ 87 $ 16 $ 85 $ 17 Net amount at risk 2 1 1 1 Average attained age of contract holders by product 63 69 62 68 Range of guaranteed minimum return rates 0-4.5% 0%-5% |
Schedule of changes in GMDB and GMIB liabilities for guarantees on variable contracts reflected in the general account | Years Ended December 31, (in millions) 2015 2014 2013 Balance, beginning of year $ 420 $ 394 $ 413 Reserve increase 127 93 32 Benefits paid (56) (67) (51) Balance, end of year $ 491 $ 420 $ 394 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DEBT | |
Schedule of total debt outstanding | Balance at Balance at At December 31, 2015 Range of Maturity December 31, December 31, (in millions) Interest Rate(s) Date(s) 2015 2014 Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable 2.30% - 8.13% 2016 - 2097 $ 17,136 $ 15,570 Subordinated debt 2.38% 2015 - 250 Junior subordinated debt 4.88% - 8.63% 2037 - 2058 1,337 2,466 AIG Japan Holdings Kabushiki Kaisha 0.44% - 1.25% 2016 - 2019 106 - AIGLH notes and bonds payable 6.63% - 7.50% 2025 - 2029 284 284 AIGLH junior subordinated debt 7.57% - 8.50% 2030 - 2046 422 536 Total AIG general borrowings 19,285 19,106 AIG borrowings supported by assets: (a) MIP notes payable 2.28% - 8.59% 2016 - 2018 1,372 2,870 Series AIGFP matched notes and bonds payable 0.16% - 7.50% 2017 - 2047 34 34 GIAs, at fair value 0.02% - 7.62% 2016 - 2047 3,276 4,648 Notes and bonds payable, at fair value 0.12% - 10.37% 2016 - 2047 394 818 Total AIG borrowings supported by assets 5,076 8,370 Total debt issued or guaranteed by AIG 24,361 27,476 Debt not guaranteed by AIG: Other subsidiaries notes, bonds, loans and mortgages payable 0.06% 2017 2 58 Debt of consolidated investments (b) 0.00% - 6.6% 2016 - 2062 4,987 3,683 Total debt not guaranteed by AIG 4,989 3,741 Total long term debt $ 29,350 $ 31,217 (a) AIG Parent guarantees all such debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $ 2.4 billion and $ 3.5 billion at December 31, 2015 and December 31, 2014 , respectively . This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be re pledged or resold by the counterparties. (b ) At December 31, 2015 , includes debt of consol idated investment vehicles related to real estate investments of $ 2.4 billion, affordable housing partnership investments and secu ritizations of $ 2.2 million , and other securitization vehicles and investments of $ 359 m illion , respectively. At December 31, 2014 , includes debt of consol idated investment vehicles related to rea l estate investments of $ 2.1 billion, affordable housing partnership investments and securitizations of $ 853 million , and other securitization vehicles and investments of $ 728 m ill ion , respectively. |
Maturities of long-term debt, excluding borrowings of debt of consolidated investments | December 31, 2015 Year Ending (in millions) Total 2016 2017 2018 2019 2020 Thereafter Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable $ 17,136 $ 992 $ 192 $ 1,106 $ 999 $ 1,345 $ 12,502 Subordinated debt - - - - - - - Junior subordinated debt 1,337 - - - - - 1,337 AIG Japan Holdings Kabushiki Kaisha 106 - - - 106 - - AIGLH notes and bonds payable 284 - - - - - 284 AIGLH junior subordinated debt 422 - - - - - 422 Total AIG general borrowings 19,285 992 192 1,106 1,105 1,345 14,545 AIG borrowings supported by assets: MIP notes payable 1,372 245 781 346 - - - Series AIGFP matched notes and bonds payable 34 - 10 - - - 24 GIAs, at fair value 3,276 190 176 464 90 41 2,315 Notes and bonds payable, at fair value 394 192 10 123 - - 69 Total AIG borrowings supported by assets 5,076 627 977 933 90 41 2,408 Total debt issued or guaranteed by AIG 24,361 1,619 1,169 2,039 1,195 1,386 16,953 Other subsidiaries notes, bonds, loans and mortgages payable 2 - 2 - - - - Total $ 24,363 $ 1,619 $ 1,171 $ 2,039 $ 1,195 $ 1,386 $ 16,953 |
Schedule of detail for uncollateralized and collateralized notes, bonds, loans and mortgages payable | Uncollateralized Collateralized At December 31, 2015 Notes/Bonds/Loans Loans and (in millions) Payable Mortgages Payable Total AIG general borrowings $ - $ 106 $ 106 Other subsidiaries notes, bonds, loans and mortgages payable * - 2 2 Total $ - $ 108 $ 108 * AIG does not guarantee any of these borrowings. |
Summary of the Four-Year Facility | At December 31, 2015 Available Effective (in millions) Size Amount Expiration Date Five-Year Syndicated Credit Facility $ 4,500 $ 4,500 November 2020 11/5/2015 |
CONTINGENCIES, COMMITMENTS AN55
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
Future minimum lease payments under operating leases | (in millions) 2016 $ 304 2017 234 2018 168 2019 126 2020 93 Remaining years after 2020 210 Total $ 1,135 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
EQUITY | |
Rollforward of common stock outstanding | Common Treasury Common Stock Stock Issued Stock Outstanding Year Ended December 31, 2013 Shares, beginning of year 1,906,611,680 (430,289,745) 1,476,321,935 Shares issued 34,009 24,778 58,787 Shares repurchased - (12,317,399) (12,317,399) Shares, end of year 1,906,645,689 (442,582,366) 1,464,063,323 Year Ended December 31, 2014 Shares, beginning of year 1,906,645,689 (442,582,366) 1,464,063,323 Shares issued 25,803 15,748 41,551 Shares repurchased - (88,177,903) (88,177,903) Shares, end of year 1,906,671,492 (530,744,521) 1,375,926,971 Year Ended December 31, 2015 Shares, beginning of year 1,906,671,492 (530,744,521) 1,375,926,971 Shares issued - 371,806 371,806 Shares repurchased - (182,382,160) (182,382,160) Shares, end of year 1,906,671,492 (712,754,875) 1,193,916,617 |
Accumulated Other Comprehensive Income (Loss) | Unrealized Appreciation (Depreciation) of Fixed Maturity Investments Unrealized on Which Other-Than- Appreciation Foreign Retirement Temporary Credit (Depreciation) Currency Plan Impairments of All Other Translation Liabilities (in millions) Were Taken Investments Adjustments Adjustment Total Balance, January 1, 2013, net of tax $ 575 $ 13,446 $ (403) $ (1,044) $ 12,574 Change in unrealized appreciation (depreciation) of investments 464 (14,069) - - (13,605) Change in deferred policy acquisition costs adjustment and other (127) 1,000 - - 873 Change in future policy benefits 79 2,658 - - 2,737 Change in foreign currency translation adjustments - - (454) - (454) Net actuarial gain - - - 1,012 1,012 Prior service credit - - - (51) (51) Change in deferred tax asset (liability) (55) 3,738 (102) (330) 3,251 Total other comprehensive income (loss) 361 (6,673) (556) 631 (6,237) Noncontrolling interests - (16) (7) - (23) Balance, December 31, 2013, net of tax $ 936 $ 6,789 $ (952) $ (413) $ 6,360 Change in unrealized appreciation of investments 156 7,564 - - 7,720 Change in deferred policy acquisition costs adjustment and other 68 (495) - - (427) Change in future policy benefits (133) (1,113) - - (1,246) Change in foreign currency translation adjustments - - (833) - (833) Net actuarial loss - - - (815) (815) Prior service credit - - - (49) (49) Change in deferred tax asset (liability) 16 (418) 1 308 (93) Total other comprehensive income (loss) 107 5,538 (832) (556) 4,257 Noncontrolling interests - - - - - Balance, December 31, 2014, net of tax $ 1,043 $ 12,327 $ (1,784) $ (969) $ 10,617 Change in unrealized depreciation of investments (488) (10,519) - - (11,007) Change in deferred policy acquisition costs adjustment and other (146) 1,265 - - 1,119 Change in future policy benefits 92 1,112 - - 1,204 Change in foreign currency translation adjustments - - (1,129) - (1,129) Net actuarial gain - - - 413 413 Prior service credit - - - (239) (239) Change in deferred tax asset (liability) 195 1,380 29 (51) 1,553 Total other comprehensive income (loss) (347) (6,762) (1,100) 123 (8,086) Noncontrolling interests - (1) (5) - (6) Balance, December 31, 2015, net of tax $ 696 $ 5,566 $ (2,879) $ (846) $ 2,537 |
Other comprehensive income (loss) reclassification adjustments | Unrealized Appreciation (Depreciation) of Fixed Maturity Securities Unrealized on Which Other-Than- Appreciation Foreign Retirement Temporary Credit (Depreciation) Currency Plan Impairments Were of All Other Translation Liabilities (in millions) Recognized Investments Adjustments Adjustment Total December 31, 2013 Unrealized change arising during period $ 507 $ (9,556) $ (454) $ 851 $ (8,652) Less: Reclassification adjustments included in net income 91 855 - (110) 836 Total other comprehensive income (loss), before income tax expense (benefit) 416 (10,411) (454) 961 (9,488) Less: Income tax expense (benefit) 55 (3,738) 102 330 (3,251) Total other comprehensive income (loss), net of income tax expense (benefit) $ 361 $ (6,673) $ (556) $ 631 $ (6,237) December 31, 2014 Unrealized change arising during period $ 119 $ 6,488 $ (833) $ (866) $ 4,908 Less: Reclassification adjustments included in net income 28 532 - (2) 558 Total other comprehensive income (loss), before income tax expense (benefit) 91 5,956 (833) (864) 4,350 Less: Income tax expense (benefit) (16) 418 (1) (308) 93 Total other comprehensive income (loss), net of income tax expense (benefit) $ 107 $ 5,538 $ (832) $ (556) $ 4,257 December 31, 2015 Unrealized change arising during period $ (471) $ (7,068) $ (1,129) $ 285 $ (8,383) Less: Reclassification adjustments included in net income 71 1,074 - 111 1,256 Total other comprehensive income (loss), before income tax expense (benefit) (542) (8,142) (1,129) 174 (9,639) Less: Income tax expense (benefit) (195) (1,380) (29) 51 (1,553) Total other comprehensive income (loss), net of income tax expense (benefit) $ (347) $ (6,762) $ (1,100) $ 123 $ (8,086) |
Schedule of effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income | Amount Reclassified from Accumulated Other Years Ended December 31, Comprehensive Income Affected Line Item in the (in millions) 2015 2014 2013 Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized Investments $ 71 $ 28 $ 91 Other realized capital gains Total 71 28 91 Unrealized appreciation (depreciation) of all other investments Investments 1,054 669 2,452 Other realized capital gains Deferred acquisition costs adjustment 3 (20) (28) Amortization of deferred policy acquisition costs Future policy benefits 17 (117) (1,569) Policyholder benefits and losses incurred Total 1,074 532 855 Change in retirement plan liabilities adjustment Prior-service costs 214 47 47 * Actuarial gains/(losses) (103) (49) (157) * Total 111 (2) (110) Total reclassifications for the period $ 1,256 $ 558 $ 836 * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 20 to the Consolidated Financial Statements. |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS PER SHARE (EPS) | |
Computation of basic and diluted EPS | Years Ended December 31, (dollars in millions, except per share data) 2015 2014 2013 Numerator for EPS: Income from continuing operations $ 2,222 $ 7,574 $ 9,008 Less: Net income (loss) from continuing operations attributable to noncontrolling interests 26 (5) 7 Income attributable to AIG common shareholders from continuing operations 2,196 7,579 9,001 Income (loss) from discontinued operations - (50) 84 Net income attributable to AIG common shareholders $ 2,196 $ 7,529 $ 9,085 Denominator for EPS: Weighted average shares outstanding — basic 1,299,825,350 1,427,959,799 1,474,171,690 Dilutive shares 34,639,533 19,593,853 7,035,107 Weighted average shares outstanding — diluted * 1,334,464,883 1,447,553,652 1,481,206,797 Income per common share attributable to AIG: Basic: Income from continuing operations $ 1.69 $ 5.31 $ 6.11 Income from discontinued operations $ - $ (0.04) $ 0.05 Net Income attributable to AIG $ 1.69 $ 5.27 $ 6.16 Diluted: Income from continuing operations $ 1.65 $ 5.24 $ 6.08 Income from discontinued operations $ - $ (0.04) $ 0.05 Net Income attributable to AIG $ 1.65 $ 5.20 $ 6.13 * Dilutive shares primarily result from share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of the recapitalization in January 2011. The number of shares excluded from diluted shares outstanding were 0.2 million, 0.3 million and 38 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
STATUTORY FINANCIAL DATA AND 58
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | |
Schedule of statutory capital and surplus and net income (loss) for AIG property casualty and AIG life and retirement operations in accordance with statutory accounting practices | (in millions) 2015 2014 2013 Years Ended December 31, Statutory net income (loss) (a)(b)(c)(d)(e) : Non-Life Insurance Companies : Domestic (d)(e) $ 1,202 $ 3,265 $ 11,440 Foreign 521 1,252 842 Total Non-Life Insurance Companies 1,723 4,517 12,282 Life Insurance Companies : Domestic 2,672 2,865 5,047 Foreign (16) (9) (9) Total Life Insurance Companies 2,656 2,856 5,038 At December 31, Statutory capital and surplus (a)(c)(d)(e) : Non-Life Insurance Companies : Domestic (d)(e) $ 24,358 $ 27,621 Foreign 11,465 12,183 Total Non-Life Insurance Companies 35,823 39,804 Life Insurance Companies : Domestic 8,287 9,879 Foreign 422 437 Total Life Insurance Companies 8,709 10,316 Aggregate minimum required statutory capital and surplus : Non-Life Insurance Companies (f) : Domestic (f) $ 6,493 $ 7,540 Foreign 7,554 8,210 Total Non-Life Insurance Companies 14,047 15,750 Life Insurance Companies : Domestic 3,658 3,674 Foreign 45 46 Total Life Insurance Companies 3,703 3,720 (a) Excludes discontinued operations and other divested businesses. Statutory capital and surplus and net income (loss) with respect to foreign operations are as of November 30. (b) Non-Life Insurance Companies did not recognize material statutory gains related to legal entity simplification (restructuring) in 2015 . Non-Life Insurance Companies include $ 0 and approximately $ 8.0 billion of recognized statutory gains related to legal entity simplification (restructuring) in 2014 and 2013 , respectively. These recognized gains were largely offset by reductions in unrealized gains; therefore, there was no material impact to total surplus. ( c ) In aggregate, the 2014 Non-Life Insurance Companies and Life Insurance Companies statutory net income (loss) and statutory capital and surplus amounts increased by $ 115 million and $ 303 million, respectively, compared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2014 , due to finalization of statutory filings . ( d) Non-Life Insurance Companies recognized $2. 75 billion of capital contributions from AIG Paren t in their statutory financial statements as of December 31, 2015, related to the reserve strengthening in the fourth quarter of 2015. These capital contributions were received in January 2016. (e ) For the year ended December 31, 2015, excluded Eaglestone Reinsurance Company ( Eaglestone ), a reinsurer of run-off lines of business from affiliates within Non-Life Insurance Companies, which was transferred from the Non-Life Insurance Companies to Corporate and Other. The statutory net income and statutory capit al and surplus of Eaglestone at December 31, 2015 were $22.8 million and $1.9 billion, respectively. The statutory surplus included $150 million of capital contribution received from AIG Parent in January 2016. (f) For the year ended December 31, 2015, e xcluded $274 million for Eaglestone . |
SHARE-BASED AND OTHER COMPENS59
SHARE-BASED AND OTHER COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHARE-BASED AND OTHER COMPENSATION PLANS | |
Schedule of share-based compensation expense recognized in Consolidated Statements of Income | Years Ended December 31, (in millions) 2015 2014 2013 Share-based compensation expense - pre-tax * $ 365 $ 349 $ 457 Share-based compensation expense - after tax 237 227 297 * For the years ended December 31, 2015 , 2014 and 2013 , $ 19 million, $ 86 million and $ 315 million, respectively, of pre-tax compensation expense was attributed to unsettled liability - classified awards, the values of which are based on our share price at the reporting date. Our share price was $ 61.97 , $ 56.01 and $ 51.05 at December 31, 2015 , 2014 and 2013 , respectively. In addition, we recognized $ 147 million, $ 120 million and $ 101 million for immedi ately vested stock-settled awards issued to retirement eligible employees in 2015 , 2014 and 2013 , respectively. |
Schedule of assumptions used to estimate the fair value of PSUs based on AIG's TSR | 2015 2014 2013 Expected dividend yield (a) 1.78 % 1.13 % 0.38 % Expected volatility (b) 22.71 % 23.66 % 30.79 % Risk-free interest rate (c) 1.01 % 0.76 % 0.50 % (a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date. (b) The expected volatility is based on the implied volatilities of actively traded stock options from the valuation date through the end of the PSU performance period as estimated by Bloomberg Professional service. (c) The risk-free interest rate is the continu ously compounded interest rate for the term between the valuation date and the end of the performance period that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the va luation date |
Summary of outstanding share-settled awards | Weighted Average As of or for the Year Number of PSUs (b) Grant-Date Fair Value Ended December 31, 2015 2015 LTI 2014 LTI 2013 LTI 2015 LTI 2014 LTI 2013 LTI Unvested, beginning of year - 4,036,527 4,066,182 $ - $ 48.72 $ 37.09 Granted 6,445,639 10,225 - 54.55 52.83 - Vested (3,212,976) (1,270,263) (1,593,595) 54.09 48.56 37.09 Forfeited (185,705) (217,130) (222,478) 53.66 48.78 37.38 Unvested, end of year 3,046,958 2,559,359 2,250,109 $ 55.08 $ 48.82 $ 37.07 (a) Excludes SICO awards, DSUs and options, which are discussed under the SICO Plans, Non-Employee Plans and Stock Options sections, respectively. (b) Represents target number of PSUs granted, and does not reflect potential increases or decreases that could result from the final outcome of the performance goals to be determined after the applicable performance period ends. The performance period for 2013 LTI awards ended December 31, 2015; the num ber of earned PSUs based on the results of the 2013 performance goals will be adjudicated in March 2016 by the Compensation and Management Resources Committee. |
Schedule of stock option activity | Weighted Average Remaining Weighted Average Contractual As of or for the Year Ended December 31, 2015 Shares Exercise Price Life Options: Exercisable at beginning of year 202,275 $ 1,037.74 2.17 Expired (108,763) $ 1,261.25 Exercisable at end of year 93,512 $ 777.78 2.16 |
Summary of SARs (based on target amounts) and cash-settled RSUs (excluding stock salary) including the related expenses | Number of Units Year Ended December 31, 2015 RSUs * Unvested, beginning of year 1,404,645 Granted - Vested (975,715) Forfeited (15,972) Unvested, end of year 412,958 Net compensation expense for the year (in millions) $ 17 * Total unrecognized compensation as of December 31, 2015 is $ 1 million; the unvested RSUs will vest and settle in March 2016. |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of funded status of the plans reconciled to the amount reported in the balance sheets | As of or for the Years Ended Pension Postretirement (a) December 31, U.S. Plans (b) Non-U.S. Plans (b) U.S. Plans Non-U.S. Plans (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Change in projected benefit obligation: Benefit obligation, beginning of year $ 5,769 $ 4,882 $ 1,099 $ 1,072 $ 229 $ 217 $ 64 $ 52 Service cost 192 173 43 42 5 4 3 2 Interest cost 220 228 25 29 8 9 3 2 Actuarial (gain) loss (423) 780 (16) 114 (23) 10 9 11 Benefits paid: AIG assets (17) (15) (9) (15) (11) (11) (1) (1) Plan assets (285) (279) (24) (24) - - - - Plan amendment (132) - 24 (1) - - - - Settlements - - (15) (9) - - - - Foreign exchange effect - - (67) (107) - - (3) (2) Acquisitions - - 72 - - - - - Other - - 14 (2) - - - - Projected benefit obligation, end of year $ 5,324 $ 5,769 $ 1,146 $ 1,099 $ 208 $ 229 $ 75 $ 64 Change in plan assets: Fair value of plan assets, beginning of year $ 4,111 $ 4,024 $ 708 $ 738 $ - $ - $ - $ - Actual return on plan assets, net of expenses (8) 266 47 71 - - - - AIG contributions 558 115 62 67 11 11 1 1 Benefits paid: AIG assets (17) (15) (9) (15) (11) (11) (1) (1) Plan assets (285) (279) (24) (24) - - - - Settlements - - (15) (8) - - - - Foreign exchange effect - - (44) (75) - - - - Acquisitions - - 35 - - - - - Other - - 13 (46) - - - - Fair value of plan assets, end of year $ 4,359 $ 4,111 $ 773 $ 708 $ - $ - $ - $ - Funded status, end of year $ (965) $ (1,658) $ (373) $ (391) $ (208) $ (229) $ (75) $ (64) Amounts recognized in the balance sheet: Assets $ - $ - $ 46 $ 46 $ - $ - $ - $ - Liabilities (965) (1,658) (419) (437) (208) (229) (75) (64) Total amounts recognized $ (965) $ (1,658) $ (373) $ (391) $ (208) $ (229) $ (75) $ (64) Pre-tax amounts recognized in Accumulated other comprehensive income: Net gain (loss) $ (1,324) $ (1,667) $ (161) $ (227) $ 13 $ (9) $ (16) $ (8) Prior service (cost) credit - 200 (16) 11 13 24 - 1 Total amounts recognized $ (1,324) $ (1,467) $ (177) $ (216) $ 26 $ 15 $ (16) $ (7) (a) We do not currently fund postretirement benefits. (b) Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $ 299 million and $ 325 million for the U.S. and $ 199 million and $ 295 million for the non-U.S. at December 31, 2015 and 2014 , respectively. |
Schedule of components of net periodic benefit cost | Pension Postretirement U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 Components of net periodic benefit cost: Service cost $ 192 $ 173 $ 205 $ 43 $ 42 $ 47 $ 5 $ 4 $ 5 $ 3 $ 2 $ 3 Interest cost 220 228 201 25 29 29 8 9 8 3 2 2 Expected return on assets (295) (288) (257) (25) (22) (19) - - - - - - Amortization of prior service credit (22) (33) (33) (2) (3) (3) (11) (11) (11) (1) - - Amortization of net loss 92 42 138 9 7 13 - - 1 - - - Curtailment (gain) loss (179) - - (1) 1 (1) - - - - - (2) Settlement loss - - - 1 - 5 - - - - - - Other - - - - - 1 - - - - - - Net periodic benefit cost $ 8 $ 122 $ 254 $ 50 $ 54 $ 72 $ 2 $ 2 $ 3 $ 5 $ 4 $ 3 Total recognized in Accumulated other comprehensive income (loss) $ 143 $ (793) $ 823 $ 38 $ (40) $ 103 $ 12 $ (21) $ 30 $ (9) $ (11) $ 16 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 135 $ (915) $ 569 $ (12) $ (94) $ 31 $ 10 $ (23) $ 27 $ (14) $ (15) $ 13 |
Schedule of weighted average assumptions used to determine the benefit obligations | Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) December 31, 2015 Discount rate 4.32 % 2.17 % 4.21 % 4.09 % Rate of compensation increase N/A % (b) 2.64 % N/A 3.43 % December 31, 2014 Discount rate 3.94 % 2.33 % 3.78 % 4.04 % Rate of compensation increase 3.40 % 2.89 % N/A 3.29 % (a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits. (b) Compensation increases are no longer applicable due to the plan freeze that became effective 1/1/2016. |
Schedule of weighted average assumptions used to determine the net periodic benefit costs | Pension Postretirement At December 31, U.S. Plans Non-U.S. Plans * U.S. Plans Non-U.S. Plans * 2015 Discount rate 3.94 % 2.33 % 3.77 % 4.04 % Rate of compensation increase 3.40 % 2.89 % N/A 3.29 % Expected return on assets 7.25 % 3.33 % N/A N/A 2014 Discount rate 4.83 % 2.77 % 4.59 % 4.77 % Rate of compensation increase 3.50 % 2.89 % N/A 3.34 % Expected return on assets 7.25 % 2.93 % N/A N/A 2013 Discount rate 3.93 % 2.62 % 3.67 % 3.45 % Rate of compensation increase 4.00 % 2.86 % N/A 3.55 % Expected return on assets 7.25 % 2.60 % N/A N/A * The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits. |
Schedule of plan assets based on the level within the fair value hierarchy in which the fair value measurement falls | U.S. Plans Non-U.S. Plans (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total At December 31, 2015 Assets: Cash and cash equivalents $ 239 $ - $ - $ 239 $ 49 $ - $ - $ 49 Equity securities: U.S. (a) 924 388 - 1,312 35 - - 35 International (b) 262 1 - 263 248 67 - 315 Fixed maturity securities: U.S. investment grade (c) - 1,452 9 1,461 - - - - International investment grade (c) - - - - - 190 - 190 U.S. and international high yield (d) - 322 - 322 - 66 - 66 Mortgage and other asset-backed securities (e) - 7 - 7 - - - - Other fixed maturity securities - - - - - 12 - 12 Other investment types: Hedge funds (f) - 469 31 500 - - - - Futures 2 - - 2 - - - - Real Estate - - - - 11 - - 11 Private equity (g) - - 230 230 - - - - Insurance contracts - 23 - 23 - - 95 95 Total $ 1,427 $ 2,662 $ 270 $ 4,359 $ 343 $ 335 $ 95 $ 773 At December 31, 2014 Assets: Cash and cash equivalents $ 80 $ - $ - $ 80 $ 50 $ - $ - $ 50 Equity securities: U.S. (a) 1,244 239 - 1,483 30 - - 30 International (b) 787 1 - 788 274 48 - 322 Fixed maturity securities: U.S. investment grade (c) - 768 8 776 - - - - International investment grade (c) - - - - 2 160 - 162 U.S. and international high yield (d) - 347 - 347 - 61 - 61 Mortgage and other asset-backed securities (e) - 6 - 6 - - - - Other fixed maturity securities - - - - - 10 17 27 Other investment types: Hedge funds (f) - 337 36 373 - - - - Futures 4 - - 4 - - - - Private equity (g) - - 228 228 - - - - Insurance contracts - 26 - 26 - - 56 56 Total $ 2,115 $ 1,724 $ 272 $ 4,111 $ 356 $ 279 $ 73 $ 708 (a) Includes index funds that primarily track several indices including S&P 500 and S&P Small Cap 600 as well as other actively managed accounts composed of investments in large cap companies. (b) Includes investments in companies in emerging and developed markets. (c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade. (e) Comprised primarily of investments in U.S. government agency or U.S. government sponsored agency bonds. (f) Includes funds composed of macro, event driven, long/short equity, and controlled risk hedge fund strateg ies and a separately managed controlled risk strategy. (g) Includes funds that are diverse by geography, investment strategy, sector and vintage year. |
Schedule of changes in Level 3 plan assets measured at fair value | Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2015 Beginning Unrealized Transfers Transfers at End Instruments Held (in millions) of year Gains (Losses) Purchases Sales Issuances Settlements In Out of year at End of year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 8 $ (1) $ 17 $ (15) $ - $ - $ - $ - $ 9 $ (1) Hedge funds 36 1 11 (10) - - 8 (15) 31 (1) Private equity 228 (1) 86 (83) - - - - 230 5 Total $ 272 $ (1) $ 114 $ (108) $ - $ - $ 8 $ (15) $ 270 $ 3 Non-U.S. Plan Assets: Other fixed maturity securities $ 17 $ (1) $ - $ - $ - $ - $ - $ (16) $ - $ - Insurance contracts 56 (7) 1 - - - 53 (8) 95 - Total $ 73 $ (8) $ 1 $ - $ - $ - $ 53 $ (24) $ 95 $ - Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2014 Beginning Unrealized Transfers Transfers at End Instruments Held (in millions) of year Gains (Losses) Purchases Sales Issuances Settlements In Out of year at End of year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 9 $ 2 $ 18 $ (21) $ - $ - $ - $ - $ 8 $ 1 Hedge funds 35 3 15 (32) - - 15 - 36 (1) Private equity 248 11 73 (104) - - - - 228 10 Total $ 292 $ 16 $ 106 $ (157) $ - $ - $ 15 $ - $ 272 $ 10 Non-U.S. Plan Assets: Other fixed maturity securities $ 19 $ - $ - $ (2) $ - $ - $ - $ - $ 17 $ - Insurance contracts 44 9 3 - - - - - 56 - Total $ 63 $ 9 $ 3 $ (2) $ - $ - $ - $ - $ 73 $ - |
Schedule of expected future benefit payments, net of participants' contributions | Pension Postretirement U.S. Non-U.S. U.S. Non-U.S. (in millions) Plans Plans Plans Plans 2016 $ 759 $ 36 $ 14 $ 1 2017 310 38 15 1 2018 323 40 15 2 2019 319 46 15 2 2020 313 45 16 2 2021-2025 1,487 282 83 12 |
Pensions | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of accumulated benefit obligations | At December 31, (in millions) 2015 2014 U.S. pension benefit plans $ 5,324 $ 5,601 Non-U.S. pension benefit plans $ 1,109 $ 1,040 |
Schedule of projected benefit obligation in excess of the plan assets and the accumulated benefit obligation in excess of the plan assets | At December 31, PBO Exceeds Fair Value of Plan Assets ABO Exceeds Fair Value of Plan Assets U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ 5,324 $ 5,769 $ 999 $ 843 $ 5,324 $ 5,769 $ 912 $ 757 Accumulated benefit obligation 5,324 5,601 896 746 5,324 5,601 889 740 Fair value of plan assets 4,359 4,111 506 342 4,359 4,111 497 329 |
U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of asset allocation percentage by major asset class and target allocation | Target Actual Actual At December 31, 2016 2015 2014 Asset class: Equity securities 35 % 35 % 55 % Fixed maturity securities 45 % 41 % 28 % Other investments 20 % 24 % 17 % Total 100 % 100 % 100 % |
Non U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of asset allocation percentage by major asset class and target allocation | Target Actual Actual At December 31, 2016 2015 2014 Asset class: Equity securities 32 % 45 % 50 % Fixed maturity securities 48 % 35 % 35 % Other investments 18 % 13 % 8 % Cash and cash equivalents 2 % 7 % 7 % Total 100 % 100 % 100 % |
Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of A one percent point change in the assumed healthcare cost trend rate | One Percent One Percent At December 31, Increase Decrease (in millions) 2015 2014 2015 2014 U.S. plans $ 6 $ 5 $ (4) $ (5) Non-U.S. plans $ 17 $ 12 $ (12) $ (12) |
U.S. Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of assumed health care cost trend rates | At December 31, 2015 2014 Following year: Medical (before age 65) 6.79% 7.07% Medical (age 65 and older) 6.64% 6.75% Ultimate rate to which cost increase is assumed to decline 4.50% 4.50% Year in which the ultimate trend rate is reached: Medical (before age 65) 2027 2027 Medical (age 65 and older) 2027 2027 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES | |
Schedule of income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location | Years Ended December 31, (in millions) 2015 2014 2013 U.S. $ 1,950 $ 8,250 $ 8,058 Foreign 1,331 2,251 1,310 Total $ 3,281 $ 10,501 $ 9,368 |
Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations | Years Ended December 31, (in millions) 2015 2014 2013 Foreign and U.S. components of actual income tax expense: Foreign: Current $ 391 $ 473 $ 549 Deferred (95) 154 (442) U.S.: Current 429 115 131 Deferred 334 2,185 122 Total $ 1,059 $ 2,927 $ 360 |
Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate | 2015 2014 2013 Pre-Tax Tax Percent of Pre-Tax Tax Percent of Tax Percent of Years Ended December 31, Income Expense/ Pre-Tax Income Expense/ Pre-Tax Pre-Tax Expense/ Pre-Tax (dollars in millions) (Loss) (Benefit) Income (Loss) (Loss) (Benefit) Income (Loss) Income (Benefit) Income U.S. federal income tax at statutory rate $ 3,281 $ 1,148 35.0 % $ 10,524 $ 3,683 35.0 % $ 9,518 $ 3,331 35.0 % Adjustments: Tax exempt interest (195) (5.9) (236) (2.2) (298) (3.1) Uncertain tax positions 195 5.9 (81) (0.8) 632 6.6 Reclassifications from accumulated other comprehensive income (127) (3.9) (61) (0.6) - - Non-deductible transfer pricing charges 97 3.0 86 0.8 - - Dividends received deduction (72) (2.2) (62) (0.6) (75) (0.8) Effect of foreign operations (58) (1.8) (68) (0.6) (5) (0.1) State income taxes 34 1.0 39 0.4 (21) (0.2) Other (73) (2.2) (184) (1.7) 13 0.1 Effect of discontinued operations - - 65 0.6 14 0.1 Valuation allowance: Continuing operations 110 3.4 (181) (1.7) (3,165) (33.3) Consolidated total amounts 3,281 1,059 32.3 10,524 3,000 28.5 9,518 426 4.5 Amounts attributable to discontinued operations - - - 23 73 317.4 150 66 44.3 Amounts attributable to continuing operations $ 3,281 $ 1,059 32.3 % $ 10,501 $ 2,927 27.9 % $ 9,368 $ 360 3.8 % |
Schedule of components of the net deferred tax asset | December 31, (in millions) 2015 2014 Deferred tax assets: Losses and tax credit carryforwards $ 18,680 $ 18,203 Basis differences on investments 4,886 4,114 Life policy reserves 353 629 Accruals not currently deductible, and other 1,003 1,804 Loss reserve discount 1,021 1,378 Loan loss and other reserves 8 152 Unearned premium reserve reduction 1,603 1,269 Flight equipment, fixed assets and intangible assets 129 28 Other 577 220 Employee benefits 1,286 1,543 Total deferred tax assets 29,546 29,340 Deferred tax liabilities: Investments in foreign subsidiaries (33) (58) Deferred policy acquisition costs (3,467) (3,003) Unrealized gains related to available for sale debt securities (3,077) (5,795) Total deferred tax liabilities (6,577) (8,856) Net deferred tax assets before valuation allowance 22,969 20,484 Valuation allowance (3,012) (1,739) Net deferred tax assets (liabilities) $ 19,957 $ 18,745 |
Schedule of consolidated income tax group credits carryforwards | December 31, 2015 Tax Expiration (in millions) Gross Effected Periods Net operating loss carryforwards $ 34,883 $ 12,209 2028 - 2035 Foreign tax credit carryforwards 6,853 2016 - 2024 Other carryforwards 538 Various Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis 19,600 Unrecognized tax benefit (2,523) Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis * $ 17,077 * Includes other carryforwards , e.g. general business credits, of $ 326 million on a U.S. GAAP basis. |
Schedule of consolidated income tax group tax losses carryforwards | December 31, 2015 Tax Expiration (in millions) Gross Effected Periods Net operating loss carryforwards $ 34,883 $ 12,209 2028 - 2035 Foreign tax credit carryforwards 6,853 2016 - 2024 Other carryforwards 538 Various Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis 19,600 Unrecognized tax benefit (2,523) Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis * $ 17,077 * Includes other carryforwards , e.g. general business credits, of $ 326 million on a U.S. GAAP basis. |
Schedule of net deferred tax assets (liabilities) | December 31, (in millions) 2015 2014 Net U.S. consolidated return group deferred tax assets $ 24,134 $ 24,543 Net deferred tax assets (liabilities) in accumulated other comprehensive income (2,806) (5,510) Valuation allowance (1,281) (129) Subtotal 20,047 18,904 Net foreign, state and local deferred tax assets 2,078 2,045 Valuation allowance (1,731) (1,610) Subtotal 347 435 Subtotal - Net U.S, foreign, state and local deferred tax assets 20,394 19,339 Net foreign, state and local deferred tax liabilities (437) (594) Total AIG net deferred tax assets (liabilities) $ 19,957 $ 18,745 |
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | Years Ended December 31, (in millions) 2015 2014 2013 Gross unrecognized tax benefits, beginning of year $ 4,395 $ 4,340 $ 4,385 Increases in tax positions for prior years 162 91 680 Decreases in tax positions for prior years (209) (60) (796) Increases in tax positions for current year - 10 43 Lapse in statute of limitations (4) (6) (20) Settlements (13) - (2) Activity of discontinued operations - 20 50 Gross unrecognized tax benefits, end of year $ 4,331 $ 4,395 $ 4,340 |
Schedule of tax years that remain subject to examination by major tax jurisdictions | At December 31, 2015 Open Tax Years Major Tax Jurisdiction United States 2000-2014 Australia 2011-2014 France 2013-2014 Japan 2009-2014 Korea 2010-2014 Singapore 2011-2014 United Kingdom 2013-2014 |
QUARTERLY FINANCIAL INFORMATI62
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
Consolidated Statements of Income (Loss) | Three Months Ended March 31, June 30, September 30, December 31, (dollars in millions, except per share data) 2015 2014 2015 2014 2015 2014 2015 2014 Total revenues $ 15,975 $ 16,163 $ 15,699 $ 16,136 $ 12,822 $ 16,697 $ 13,831 $ 15,410 Income (loss) from continuing operations before income taxes * 3,776 2,273 2,552 4,480 (115) 3,019 (2,932) 729 Income (loss) from discontinued operations, net of income taxes 1 (47) 16 30 (17) 2 - (35) Net income (loss) 2,477 1,612 1,791 3,036 (197) 2,201 (1,849) 675 Net income (loss) from continuing operations attributable to noncontrolling interests 9 3 (9) (37) 34 9 (8) 20 Net income (loss) attributable to AIG * $ 2,468 $ 1,609 $ 1,800 $ 3,073 $ (231) $ 2,192 $ (1,841) $ 655 Earnings (loss) per common share attributable to AIG common shareholders: Basic: Income (loss) from continuing operations $ 1.81 $ 1.13 $ 1.34 $ 2.11 $ (0.17) $ 1.54 $ (1.50) $ 0.50 Income (loss) from discontinued operations $ - $ (0.03) $ 0.01 $ 0.02 $ (0.01) $ - $ - $ (0.03) Diluted: Income (loss) from continuing operations $ 1.78 $ 1.12 $ 1.31 $ 2.08 $ (0.17) $ 1.52 $ (1.50) $ 0.49 Income (loss) from discontinued operations $ - $ (0.03) $ 0.01 $ 0.02 $ (0.01) $ - $ - $ (0.03) Weighted average shares outstanding: Basic 1,365,951,690 1,459,249,393 1,329,157,366 1,442,397,111 1,279,072,748 1,419,239,774 1,226,880,632 1,391,790,420 Diluted 1,386,263,549 1,472,510,813 1,365,390,431 1,464,676,330 1,279,072,748 1,442,067,842 1,226,880,632 1,412,162,456 Noteworthy quarterly items - income (expense): Other-than-temporary impairments (128) (59) (164) (55) (273) (50) (106) (83) Net (gain) loss on sale of divested businesses 6 (4) 1 (2,174) 3 (18) 1 (1) Federal and foreign valuation allowance for deferred tax assets 93 65 (40) 75 8 21 49 20 Net gain (loss) on extinguishment of debt (68) (238) (342) (34) (346) (742) - (1,268) Reserve strengthening charges 24 - 317 - 191 - 3,587 - Restructuring and other costs - - - - 274 - 222 - * For the three months ended December 31, 2015, we recorded out of period adjustments related to prior periods that decreased Net income attributable to AIG by $193 million, decreased AIG’s Income from continuing operations before income taxes by $308 million and decreased pre-tax operating income by $122 million. The out of period adjustments primarily related to impairments of Other invested assets and changes in Liability for unpaid losses and loss adjustment expenses and income tax liabilities. Ha d these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the three-month periods ended September 30, 2015, June 30, 2015 and March 31, 2015 would have decreased by $36 mil lion, increased by $15 million and decreased by $16 million, respectively. Net income attributable to AIG for the three-month periods ended December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014 would have increased by $25 million, decrea sed by $61 million, increased by $13 million and decreased by $28 million, respectively. |
INFORMATION PROVIDED IN CONNE63
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 Assets: Short-term investments $ 4,042 $ - $ 9,637 $ (3,547) $ 10,132 Other investments (a) 7,425 - 320,797 - 328,222 Total investments 11,467 - 330,434 (3,547) 338,354 Cash 34 116 1,479 - 1,629 Loans to subsidiaries (b) 35,927 - 578 (36,505) - Investment in consolidated subsidiaries (b) 51,151 30,239 - (81,390) - Other assets, including deferred income taxes 23,398 260 135,690 (2,388) 156,960 Total assets $ 121,977 $ 30,615 $ 468,181 $ (123,830) $ 496,943 Liabilities: Insurance liabilities $ - $ - $ 271,645 $ - $ 271,645 Long-term debt 19,876 706 8,768 - 29,350 Other liabilities, including intercompany balances (a) 11,869 201 99,777 (6,109) 105,738 Loans from subsidiaries (b) 574 3 35,928 (36,505) - Total liabilities 32,319 910 416,118 (42,614) 406,733 Total AIG shareholders’ equity 89,658 29,705 51,511 (81,216) 89,658 Non-redeemable noncontrolling interests - - 552 - 552 Total equity 89,658 29,705 52,063 (81,216) 90,210 Total liabilities and equity $ 121,977 $ 30,615 $ 468,181 $ (123,830) $ 496,943 December 31, 2014 Assets: Short-term investments $ 6,078 $ - $ 6,231 $ (1,066) $ 11,243 Other investments (a) 11,415 - 333,108 - 344,523 Total investments 17,493 - 339,339 (1,066) 355,766 Cash 26 91 1,641 - 1,758 Loans to subsidiaries (b) 31,070 - 779 (31,849) - Investment in consolidated subsidiaries (b) 62,811 35,850 - (98,661) - Other assets, including deferred income taxes 23,835 2,305 141,826 (9,909) 158,057 Total assets $ 135,235 $ 38,246 $ 483,585 $ (141,485) $ 515,581 Liabilities: Insurance liabilities $ - $ - $ 270,615 $ - $ 270,615 Long-term debt 21,190 820 9,207 - 31,217 Other liabilities, including intercompany balances (a) 6,196 2,314 108,189 (10,222) 106,477 Loans from subsidiaries (b) 951 - 30,898 (31,849) - Total liabilities 28,337 3,134 418,909 (42,071) 408,309 Total AIG shareholders’ equity 106,898 35,112 64,302 (99,414) 106,898 Non-redeemable noncontrolling interests - - 374 - 374 Total equity 106,898 35,112 64,676 (99,414) 107,272 Total liabilities and equity $ 135,235 $ 38,246 $ 483,585 $ (141,485) $ 515,581 (a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment. (b) Eliminated in consolidation. |
Condensed Consolidating Statements of Income (Loss) | American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2015 Revenues: Equity in earnings of consolidated subsidiaries * $ 3,954 $ 1,936 $ - $ (5,890) $ - Other income 88 - 58,953 (714) 58,327 Total revenues 4,042 1,936 58,953 (6,604) 58,327 Expenses: Interest expense 1,049 58 302 (128) 1,281 Loss on extinguishment of debt 703 - 46 7 756 Other expenses 1,178 44 52,374 (587) 53,009 Total expenses 2,930 102 52,722 (708) 55,046 Income (loss) from continuing operations before income tax expense (benefit) 1,112 1,834 6,231 (5,896) 3,281 Income tax expense (benefit) (1,086) (73) 2,218 - 1,059 Income (loss) from continuing operations 2,198 1,907 4,013 (5,896) 2,222 Income (loss) from discontinued operations, net of income taxes (2) - 2 - - Net income (loss) 2,196 1,907 4,015 (5,896) 2,222 Less: Net income from continuing operations attributable to noncontrolling interests - - 26 - 26 Net income (loss) attributable to AIG $ 2,196 $ 1,907 $ 3,989 $ (5,896) $ 2,196 Year Ended December 31, 2014 Revenues: Equity in earnings of consolidated subsidiaries * $ 9,450 $ 3,519 $ - $ (12,969) $ - Other income 1,658 - 63,157 (409) 64,406 Total revenues 11,108 3,519 63,157 (13,378) 64,406 Expenses: Interest expense 1,507 100 243 (132) 1,718 Loss on extinguishment of debt 2,248 - 85 (51) 2,282 Other expenses 1,546 203 48,315 (159) 49,905 Total expenses 5,301 303 48,643 (342) 53,905 Income (loss) from continuing operations before income tax expense (benefit) 5,807 3,216 14,514 (13,036) 10,501 Income tax expense (benefit) (1,735) (103) 4,817 (52) 2,927 Income (loss) from continuing operations 7,542 3,319 9,697 (12,984) 7,574 Loss from discontinued operations, net of income taxes (13) - (37) - (50) Net income (loss) 7,529 3,319 9,660 (12,984) 7,524 Less: Net income (loss) from continuing operations attributable to noncontrolling interests: - - (5) - (5) Net income (loss) attributable to AIG $ 7,529 $ 3,319 $ 9,665 $ (12,984) $ 7,529 Year Ended December 31, 2013 Revenues: Equity in earnings of consolidated subsidiaries * $ 7,638 $ 4,075 $ - $ (11,713) $ - Other income 1,487 1 67,698 (312) 68,874 Total revenues 9,125 4,076 67,698 (12,025) 68,874 Expenses: Other interest expense 1,938 126 233 (155) 2,142 Loss on extinguishment of debt 580 - 71 - 651 Other expenses 1,520 75 55,277 (159) 56,713 Total expenses 4,038 201 55,581 (314) 59,506 Income (loss) from continuing operations before income tax expense (benefit) 5,087 3,875 12,117 (11,711) 9,368 Income tax expense (benefit) (4,012) (58) 4,454 (24) 360 Income (loss) from continuing operations 9,099 3,933 7,663 (11,687) 9,008 Income (loss) from discontinued operations, net of income taxes (14) - 98 - 84 Net income (loss) 9,085 3,933 7,761 (11,687) 9,092 Less: Net income from continuing operations attributable to noncontrolling interests - - 7 - 7 Net income (loss) attributable to AIG $ 9,085 $ 3,933 $ 7,754 $ (11,687) $ 9,085 * 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 Year Ended December 31, 2015 Net income (loss) $ 2,196 $ 1,907 $ 4,015 $ (5,896) $ 2,222 Other comprehensive income (loss) (8,080) 2,320 54,757 (57,083) (8,086) Comprehensive income (loss) (5,884) 4,227 58,772 (62,979) (5,864) Total comprehensive income attributable to noncontrolling interests - - 20 - 20 Comprehensive income (loss) attributable to AIG $ (5,884) $ 4,227 $ 58,752 $ (62,979) $ (5,884) Year Ended December 31, 2014 Net income (loss) $ 7,529 $ 3,319 $ 9,660 $ (12,984) $ 7,524 Other comprehensive income (loss) 4,257 2,794 3,235 (6,029) 4,257 Comprehensive income (loss) 11,786 6,113 12,895 (19,013) 11,781 Total comprehensive loss attributable to noncontrolling interests - - (5) - (5) Comprehensive income (loss) attributable to AIG $ 11,786 $ 6,113 $ 12,900 $ (19,013) $ 11,786 Year Ended December 31, 2013 Net income (loss) $ 9,085 $ 3,933 $ 7,761 $ (11,687) $ 9,092 Other comprehensive income (loss) (6,214) (4,689) (6,719) 11,385 (6,237) Comprehensive income (loss) 2,871 (756) 1,042 (302) 2,855 Total comprehensive loss attributable to noncontrolling interests - - (16) - (16) Comprehensive income (loss) attributable to AIG $ 2,871 $ (756) $ 1,058 $ (302) $ 2,871 |
Condensed Consolidating Statements of Cash Flows | American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries * Eliminations * AIG Year Ended December 31, 2015 Net cash (used in) provided by operating activities $ 4,443 $ 2,314 $ 1,112 $ (4,992) $ 2,877 Cash flows from investing activities: Sales of investments 7,767 - 69,726 (4,877) 72,616 Purchase of investments (1,881) - (68,261) 4,877 (65,265) Loans to subsidiaries – net (83) - 367 (284) - Contributions to subsidiaries 565 - - (565) - Net change in restricted cash - - 1,457 - 1,457 Net change in short-term investments 2,300 - (1,137) - 1,163 Other, net (175) - (1,334) - (1,509) Net cash provided by investing activities 8,493 - 818 (849) 8,462 Cash flows from financing activities: Issuance of long-term debt 5,540 - 1,327 - 6,867 Repayments of long-term debt (6,504) (114) (3,187) - (9,805) Purchase of Common Stock (10,691) - - - (10,691) Intercompany loans - net (201) 3 (86) 284 - Cash dividends paid (1,028) (2,178) (2,814) 4,992 (1,028) Other, net (44) - 2,707 565 3,228 Net cash (used in) financing activities (12,928) (2,289) (2,053) 5,841 (11,429) Effect of exchange rate changes on cash - - (39) - (39) Change in cash 8 25 (162) - (129) Cash at beginning of year 26 91 1,641 - 1,758 Change in cash of businesses held for sale - - - - - Cash at end of year $ 34 $ 116 $ 1,479 $ - $ 1,629 Year Ended December 31, 2014 Net cash (used in) provided by operating activities $ 9,316 $ 6,155 $ 8,979 $ (19,443) $ 5,007 Cash flows from investing activities: Sales of investments 3,036 - 65,108 (2,040) 66,104 Purchase of investments (1,051) - (59,099) 2,040 (58,110) Loans to subsidiaries – net 446 - 169 (615) - Contributions to subsidiaries (148) - 296 (148) - Net change in restricted cash (501) - (946) - (1,447) Net change in short-term investments 5,792 - 2,968 - 8,760 Other, net (141) - (882) - (1,023) Net cash (used in) provided by investing activities 7,433 - 7,614 (763) 14,284 Cash flows from financing activities: Issuance of long-term debt 3,247 - 3,440 - 6,687 Repayments of long-term debt (14,468) (477) (1,215) - (16,160) Intercompany loans - net 110 (280) (445) 615 - Purchase of common stock (4,902) - - - (4,902) Cash dividends paid to shareholders (712) (5,358) (14,085) 19,443 (712) Other, net (28) - (4,821) 148 (4,701) Net cash (used in) provided by financing activities (16,753) (6,115) (17,126) 20,206 (19,788) Effect of exchange rate changes on cash - - (74) - (74) Change in cash (4) 40 (607) - (571) Cash at beginning of year 30 51 2,160 - 2,241 Reclassification to assets held for sale - - 88 - 88 Cash at end of year $ 26 $ 91 $ 1,641 $ - $ 1,758 Year Ended December 31, 2013 Net cash (used in) provided by operating activities $ 6,422 $ 4,488 $ 7,385 $ (12,430) $ 5,865 Cash flows from investing activities: Sales of investments 1,425 - 78,868 (3,199) 77,094 Purchase of investments (5,506) - (75,580) 3,199 (77,887) Loans to subsidiaries – net 3,660 - 395 (4,055) - Contributions to subsidiaries (2,081) (1) - 2,082 - Net change in restricted cash 493 - 751 - 1,244 Net change in short-term investments 2,361 - 5,481 - 7,842 Other, net 130 - (1,324) - (1,194) Net cash (used in) provided by investing activities 482 (1) 8,591 (1,973) 7,099 Cash flows from financing activities: Issuance of long-term debt 2,015 - 3,220 - 5,235 Repayments of long-term debt (7,439) (245) (6,513) - (14,197) Intercompany loans - net (123) (273) (3,659) 4,055 - Purchase of common stock (597) - - - (597) Cash dividends paid to shareholders (294) (3,991) (8,439) 12,430 (294) Other, net (517) - 694 (2,082) (1,905) Net cash (used in) provided by financing activities (6,955) (4,509) (14,697) 14,403 (11,758) Effect of exchange rate changes on cash - - (92) - (92) Change in cash (51) (22) 1,187 - 1,114 Cash at beginning of year 81 73 997 - 1,151 Change in cash of businesses held for sale - - (24) - (24) Cash at end of year $ 30 $ 51 $ 2,160 $ - $ 2,241 * The Other Subsidiaries and Reclassifications and Eliminations amounts were disclosed together in prior periods. The new presentation had no impact on the Consolidated AIG amounts. |
Supplementary Disclosure of Condensed Consolidating Cash Flow Information | American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries * Eliminations * AIG Cash (paid) received during the year ended December 31, 2015 for: Interest: Third party $ (1,030) $ (59) $ (279) $ - $ (1,368) Intercompany - - - - - Taxes: Income tax authorities $ (11) $ - $ (500) $ - $ (511) Intercompany 829 - (829) - - Cash (paid) received during the year ended December 31, 2014 for: Interest: Third party $ (1,624) $ (87) $ (1,656) $ - $ (3,367) Intercompany 5 (7) 2 - - Taxes: Income tax authorities $ (18) $ - $ (719) $ - $ (737) Intercompany 1,172 - (1,172) - - Cash (paid) received during the year ended December 31, 2013 for: Interest: Third party * $ (1,963) $ (111) $ (1,782) $ - $ (3,856) Intercompany (12) (21) 33 - - Taxes: Income tax authorities $ (161) $ - $ (635) $ - $ (796) Intercompany 288 (78) (210) - - * The Other Subsidiaries and Reclassifications and Eliminations amounts were disclosed together in prior periods. The new presentation had no impact on the Consolidated AIG amounts. |
Supplementary disclosure of non-cash activities | Years Ended December 31, (in millions) 2015 2014 2013 Intercompany non-cash financing and investing activities: Capital contributions to subsidiaries through forgiveness of loans $ - $ - $ 341 Dividends received in the form of securities 2,326 3,088 - Other capital contributions - net 494 2,457 523 Return of capital * - 4,836 - Non-cash financing/investing activities: Consideration received from sale of shares of AerCap 500 - - * Includes $ 4.8 billion return of capital from AIG Capital Corporation related to the sale of ILFC. |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ / shares in Units, shares in Millions, $ in Millions | May. 14, 2014USD ($)shares | Aug. 31, 2015USD ($)shares | Jun. 30, 2015USD ($)shares | Dec. 31, 2015USD ($)item$ / shares | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)$ / shares | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)item$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | May. 13, 2014$ / shares |
Basis of Presentation [Line Items] | |||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 2.5 | $ 2.5 | $ 2.5 | $ 2.5 | |||||||||||
Closing price per share (in dollars per share) | $ / shares | $ 61.97 | $ 56.01 | $ 61.97 | $ 56.01 | $ 51.05 | ||||||||||
Investment Maturity Year | 2,045 | ||||||||||||||
Interest rate (as a percent) | 6.50% | 6.50% | |||||||||||||
Net income (loss) attributable to AIG | $ (1,841) | $ (231) | $ 1,800 | $ 2,468 | $ 655 | $ 2,192 | $ 3,073 | $ 1,609 | $ 2,196 | $ 7,529 | $ 9,085 | ||||
Income (loss) from continuing operations before income tax expense (benefit) | (2,932) | (115) | 2,552 | 3,776 | 729 | 3,019 | 4,480 | 2,273 | 3,281 | 10,501 | 9,368 | ||||
Adjustment | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Net income (loss) attributable to AIG | (193) | $ (36) | $ 15 | $ (16) | $ 25 | $ (61) | $ 13 | $ (28) | (156) | $ (51) | $ 78 | ||||
Income (loss) from continuing operations before income tax expense (benefit) | (308) | (376) | |||||||||||||
Operating Income Loss | $ (122) | $ (235) | |||||||||||||
Call Option [Member] | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Investment Maturity Year | 2,025 | ||||||||||||||
Minimum | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Number of Countries in which the entity operates | item | 100 | 100 | |||||||||||||
ILFC | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Consideration in cash | $ 7.6 | ||||||||||||||
Aer Cap | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Closing price per share (in dollars per share) | $ / shares | $ 47.01 | ||||||||||||||
Number of shares received | shares | 97.6 | ||||||||||||||
Equity Method Investment Number Of Shares Sold | shares | 86.9 | ||||||||||||||
Cash Proceeds from Sales of AerCap | $ 500 | $ 3,700 | |||||||||||||
Ordinary shares of AerCap remaining | shares | 10.7 | ||||||||||||||
Aer Cap | Private Placement [Member] | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Equity Method Investment Number Of Shares Sold | shares | 15.7 | ||||||||||||||
Cash Proceeds from Sales of AerCap | $ 250 | ||||||||||||||
Aer Cap | Underwritten Public Offering [Member] | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Equity Method Investment Number Of Shares Sold | shares | 71.2 | ||||||||||||||
Cash Proceeds from Sales of AerCap | $ 3,400 |
SUMMARY OF SIGNIFICANT ACCOUN65
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other significant accounting policies) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Line Items] | |||
Earning pattern of a quota share reinsurance contract | 24 months | ||
Other income | |||
Proceeds from legal settlements | $ 94 | $ 804 | $ 1,200 |
Premiums and other receivables | |||
Allowance for doubtful accounts on premiums and other receivables | $ 333 | $ 428 | $ 554 |
SUMMARY OF SIGNIFICANT ACCOUN66
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other Assets and PPE) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other assets | |||
Deferred bonus interest and deferred sales inducement assets | $ 845 | $ 629 | |
Amortization expense associated with deferred bonus interest and deferred sales inducement assets | $ 88 | $ 63 | $ 102 |
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years | ||
Furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Software Development | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years |
SEGMENT INFORMATION (Details -
SEGMENT INFORMATION (Details - Continuing operations by reportable segment) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | $ 13,831 | $ 12,822 | $ 15,699 | $ 15,975 | $ 15,410 | $ 16,697 | $ 16,136 | $ 16,163 | $ 58,327 | $ 64,406 | $ 68,874 |
Net investment income | 14,053 | 16,079 | 15,810 | ||||||||
Interest Expense | 1,281 | 1,718 | 2,142 | ||||||||
Depreciation and Amortization | 4,629 | 4,448 | 4,713 | ||||||||
Revenues and pre-tax income | $ (2,932) | $ (115) | $ 2,552 | $ 3,776 | $ 729 | $ 3,019 | $ 4,480 | $ 2,273 | 3,281 | 10,501 | 9,368 |
Operating segments | Commercial Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 28,194 | 28,801 | 28,862 | ||||||||
Net investment income | 5,474 | 6,393 | 6,653 | ||||||||
Interest Expense | 23 | 7 | 9 | ||||||||
Depreciation and Amortization | 2,142 | 2,286 | 2,283 | ||||||||
Revenues and pre-tax income | 1,652 | 5,510 | 4,980 | ||||||||
Operating segments | Consumer Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 27,069 | 28,469 | 28,660 | ||||||||
Net investment income | 8,322 | 9,082 | 9,352 | ||||||||
Interest Expense | 54 | 32 | 10 | ||||||||
Depreciation and Amortization | 2,051 | 1,966 | 2,159 | ||||||||
Revenues and pre-tax income | 3,378 | 4,474 | 4,564 | ||||||||
Reportable Segments | Property Casualty | Commercial Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 23,625 | 25,183 | 25,108 | ||||||||
Net investment income | 3,596 | 4,298 | 4,431 | ||||||||
Interest Expense | 12 | 0 | 8 | ||||||||
Depreciation and Amortization | 2,255 | 2,445 | 2,393 | ||||||||
Revenues and pre-tax income | 593 | 4,248 | 4,095 | ||||||||
Reportable Segments | Institutional Markets | Commercial Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 3,518 | 2,576 | 2,813 | ||||||||
Net investment income | 1,739 | 1,957 | 2,090 | ||||||||
Interest Expense | 11 | 7 | 1 | ||||||||
Depreciation and Amortization | (177) | (215) | (160) | ||||||||
Revenues and pre-tax income | 415 | 670 | 680 | ||||||||
Reportable Segments | Mortgage Guaranty | Commercial Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 1,051 | 1,042 | 941 | ||||||||
Net investment income | 139 | 138 | 132 | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Depreciation and Amortization | 64 | 56 | 50 | ||||||||
Revenues and pre-tax income | 644 | 592 | 205 | ||||||||
Reportable Segments | Retirement | Consumer Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 9,298 | 9,784 | 9,431 | ||||||||
Net investment income | 6,002 | 6,489 | 6,628 | ||||||||
Interest Expense | 39 | 23 | 3 | ||||||||
Depreciation and Amortization | (98) | (231) | (165) | ||||||||
Revenues and pre-tax income | 2,839 | 3,495 | 3,490 | ||||||||
Reportable Segments | Life | Consumer Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 6,393 | 6,321 | 6,397 | ||||||||
Net investment income | 2,100 | 2,199 | 2,269 | ||||||||
Interest Expense | 14 | 7 | 4 | ||||||||
Depreciation and Amortization | 205 | 130 | 214 | ||||||||
Revenues and pre-tax income | 465 | 580 | 806 | ||||||||
Reportable Segments | Personal Insurance | Consumer Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 11,378 | 12,364 | 12,832 | ||||||||
Net investment income | 220 | 394 | 455 | ||||||||
Interest Expense | 1 | 2 | 3 | ||||||||
Depreciation and Amortization | 1,944 | 2,067 | 2,110 | ||||||||
Revenues and pre-tax income | 74 | 399 | 268 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 2,901 | 4,206 | 4,073 | ||||||||
Net investment income | 617 | 700 | 309 | ||||||||
Interest Expense | 1,313 | 1,805 | 2,451 | ||||||||
Depreciation and Amortization | 426 | 346 | 221 | ||||||||
Revenues and pre-tax income | (883) | (379) | (265) | ||||||||
Consolidation and Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | (573) | (475) | (71) | ||||||||
Net investment income | (317) | (356) | (343) | ||||||||
Interest Expense | (109) | (126) | (328) | ||||||||
Depreciation and Amortization | 10 | (181) | (26) | ||||||||
Revenues and pre-tax income | (92) | (31) | 111 | ||||||||
Total Operating Segments Corporate And Other Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 57,591 | 61,001 | 61,524 | ||||||||
Net investment income | 14,096 | 15,819 | 15,971 | ||||||||
Interest Expense | 1,281 | 1,718 | 2,142 | ||||||||
Depreciation and Amortization | 4,629 | 4,417 | 4,637 | ||||||||
Revenues and pre-tax income | $ 4,055 | $ 9,574 | $ 9,390 |
SEGMENT INFORMATION (Details 68
SEGMENT INFORMATION (Details - Continuing operations by reportable segment - Pretax operating income to pre-tax income)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | |||||||||||
Loss on extinguishment of debt | $ 0 | $ (346) | $ (342) | $ (68) | $ (1,268) | $ (742) | $ (34) | $ (238) | $ (756) | $ (2,282) | $ (651) |
Restructuring and other costs | 222 | 274 | |||||||||
Revenues and pre-tax income | $ (2,932) | $ (115) | $ 2,552 | $ 3,776 | $ 729 | $ 3,019 | $ 4,480 | $ 2,273 | 3,281 | 10,501 | 9,368 |
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income | Revenue | |||||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | |||||||||||
Changes in fair values of fixed maturity securities designated to hedge living benefit liabilities, net of interest expense | (43) | 260 | (161) | ||||||||
Increase Decrease Benefit Reserves | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | 776 | 739 | 1,939 | ||||||||
Net gain (loss) on sale of divested businesses | (48) | 1,602 | 4,420 | ||||||||
Non-operating litigation reserves and settlements | 94 | 804 | 1,152 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | 0 | ||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Other | (43) | 0 | 0 | ||||||||
Revenues and pre-tax income | 58,327 | 64,406 | 68,874 | ||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income | Net investment income | |||||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | |||||||||||
Changes in fair values of fixed maturity securities designated to hedge living benefit liabilities, net of interest expense | (43) | 260 | (161) | ||||||||
Increase Decrease Benefit Reserves | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Net gain (loss) on sale of divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 0 | 0 | 0 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | 0 | ||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Revenues and pre-tax income | 14,053 | 16,079 | 15,810 | ||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income | Interest expense | |||||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | |||||||||||
Changes in fair values of fixed maturity securities designated to hedge living benefit liabilities, net of interest expense | 0 | 0 | 0 | ||||||||
Increase Decrease Benefit Reserves | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Net gain (loss) on sale of divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 0 | 0 | 0 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | 0 | ||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Revenues and pre-tax income | 1,281 | 1,718 | 2,142 | ||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income | Pre-Tax Operating Income (loss) | |||||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | |||||||||||
Changes in fair values of fixed maturity securities designated to hedge living benefit liabilities, net of interest expense | (43) | 260 | (161) | ||||||||
Increase Decrease Benefit Reserves | (15) | (217) | (1,608) | ||||||||
Other income (expense) - net | (233) | 0 | (72) | ||||||||
Loss on extinguishment of debt | (756) | (2,282) | (651) | ||||||||
Net realized capital gains (losses) | 776 | 739 | 1,939 | ||||||||
Net gain (loss) on sale of divested businesses | (59) | 2,169 | (177) | ||||||||
Non-operating litigation reserves and settlements | 82 | 258 | 708 | ||||||||
Reserve development related to non-operating run-off insurance business | (30) | 0 | 0 | ||||||||
Restructuring and other costs | (496) | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Revenues and pre-tax income | 3,281 | 10,501 | 9,368 | ||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income | Depreciation and Amortization | |||||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | |||||||||||
Changes in fair values of fixed maturity securities designated to hedge living benefit liabilities, net of interest expense | 0 | 0 | |||||||||
Increase Decrease Benefit Reserves | 0 | 0 | |||||||||
Other income (expense) - net | 0 | 0 | |||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Net realized capital gains (losses) | 0 | 0 | |||||||||
Net gain (loss) on sale of divested businesses | 31 | 76 | |||||||||
Non-operating litigation reserves and settlements | 0 | 0 | |||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | |||||||||
Restructuring and other costs | 0 | 0 | |||||||||
Other | 0 | 0 | |||||||||
Revenues and pre-tax income | $ 4,629 | $ 4,448 | $ 4,713 |
SEGMENT INFORMATION (Details 69
SEGMENT INFORMATION (Details - Identifiable assets and capital expenditures by reportable segment) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | $ 496,943 | $ 515,581 |
Capital Expenditures | 1,722 | 1,832 |
Operating segments | Non-life insurance companies | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 150,368 | 164,299 |
Capital Expenditures | 991 | 697 |
Operating segments | Life insurance companies | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 297,499 | 301,295 |
Capital Expenditures | 102 | 114 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 141,648 | 159,394 |
Capital Expenditures | 629 | 1,021 |
Consolidation and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | (92,572) | (109,407) |
Capital Expenditures | $ 0 | $ 0 |
SEGMENT INFORMATION (Details 70
SEGMENT INFORMATION (Details - Consolidated operations and long-lived assets by major geographic area) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | $ 13,831 | $ 12,822 | $ 15,699 | $ 15,975 | $ 15,410 | $ 16,697 | $ 16,136 | $ 16,163 | $ 58,327 | $ 64,406 | $ 68,874 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 3,135 | 2,700 | 3,135 | 2,700 | 2,315 | ||||||
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 42,366 | 44,274 | 46,078 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 2,213 | 1,886 | 2,213 | 1,886 | 1,606 | ||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 5,942 | 7,523 | 8,804 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 602 | 521 | 602 | 521 | 448 | ||||||
Other Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 10,019 | 12,609 | 13,992 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | $ 320 | $ 293 | $ 320 | $ 293 | $ 261 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details - Long Term Debt) | 12 Months Ended |
Dec. 31, 2015 | |
Borrowings supported by assets | GIAs | |
Debt Instrument [Line Items] | |
Range of guaranteed minimum return rates (as a percent) | 7.62% |
FAIR VALUE MEASUREMENTS (Deta72
FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | $ 248,245 | $ 259,859 |
Other bond securities | 16,782 | 19,712 |
Equity securities available for sale | 2,915 | 4,395 |
Other equity securities | 921 | 1,049 |
Other invested assets | 8,912 | 9,394 |
Derivative Assets, Fair Value | 4,131 | 4,825 |
Derivative assets, Counterparty netting | (1,268) | (2,102) |
Derivative assets, Cash collateral | (1,554) | (1,119) |
Short-term investments, portion measured at fair value | 2,591 | 1,684 |
Separate account assets, at fair value | 79,574 | 80,036 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 2,325 | 1,561 |
Other policyholder funds | 4,212 | 4,669 |
Derivative Liabilities, Fair Value | 4,048 | 5,804 |
Derivative liabilities, Counterparty netting | (1,268) | (2,102) |
Derivative liabilities, Cash collateral | (760) | (1,429) |
Long-term debt, portion measured at fair value | 3,670 | 5,466 |
Other liabilities | 62 | 350 |
Recurring Basis | U.S. government and government sponsored entities | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Assets transferred from Level 1 to Level 2 | 181 | 107 |
Recurring Basis | Non-U.S. government | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Assets transferred from Level 1 to Level 2 | 695 | 590 |
Recurring Basis | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 683 | 1,064 |
Other bond securities | 0 | 130 |
Equity securities available for sale | 2,914 | 4,389 |
Other equity securities | 906 | 1,024 |
Mortgage and other loans receivable | 0 | |
Other invested assets | 2 | 2 |
Derivative Assets, Fair Value | 91 | 100 |
Short-term investments, portion measured at fair value | 1,416 | 584 |
Separate account assets, at fair value | 73,699 | 73,939 |
Fair value assets measured on recurring basis, total | 79,711 | 81,232 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Other policyholder funds | 6 | |
Other liabilities | 0 | 34 |
Fair value liabilities measured on recurring basis, total | 6 | 34 |
Recurring Basis | Level 1 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 0 | 2 |
Recurring Basis | Level 1 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 91 | 98 |
Recurring Basis | Level 1 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 322 | |
Other bond securities | 0 | 130 |
Recurring Basis | Level 1 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 683 | 742 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 2,401 | 3,626 |
Recurring Basis | Level 1 | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 22 | 25 |
Recurring Basis | Level 1 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 491 | 738 |
Recurring Basis | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 218,745 | 229,112 |
Other bond securities | 7,936 | 10,659 |
Equity securities available for sale | 1 | 5 |
Other equity securities | 1 | 25 |
Mortgage and other loans receivable | 0 | |
Other invested assets | 4,256 | 3,742 |
Derivative Assets, Fair Value | 3,950 | 4,626 |
Short-term investments, portion measured at fair value | 1,175 | 1,100 |
Separate account assets, at fair value | 5,875 | 6,097 |
Other assets | 0 | |
Fair value assets measured on recurring basis, total | 241,939 | 255,366 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 36 | 52 |
Other policyholder funds | 8 | |
Derivative Liabilities, Fair Value | 3,402 | 4,633 |
Long-term debt, portion measured at fair value | 3,487 | 5,253 |
Other liabilities | 62 | 316 |
Fair value liabilities measured on recurring basis, total | 6,987 | 10,262 |
Recurring Basis | Level 2 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 3,150 | 3,729 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 2,137 | 3,047 |
Recurring Basis | Level 2 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 766 | 839 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 1,197 | 1,482 |
Recurring Basis | Level 2 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 32 | 58 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 68 | 98 |
Recurring Basis | Level 2 | Commodity contracts | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 0 | 6 |
Recurring Basis | Level 2 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 0 | |
Recurring Basis | Level 2 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,844 | 2,670 |
Other bond securities | 3,369 | 5,368 |
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 25,199 | 25,500 |
Other bond securities | 75 | 122 |
Recurring Basis | Level 2 | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 17,480 | 20,323 |
Other bond securities | 50 | 2 |
Recurring Basis | Level 2 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 134,618 | 142,550 |
Other bond securities | 2,018 | 719 |
Recurring Basis | Level 2 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 19,690 | 20,715 |
Other bond securities | 649 | 989 |
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 10,986 | 10,189 |
Other bond securities | 557 | 708 |
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 8,928 | 7,165 |
Other bond securities | 1,218 | 2,751 |
Recurring Basis | Level 2 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | 2 |
Recurring Basis | Level 2 | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | 0 |
Recurring Basis | Level 2 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 1 | 3 |
Recurring Basis | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 28,817 | 29,683 |
Other bond securities | 8,846 | 8,923 |
Equity securities available for sale | 0 | 1 |
Other equity securities | 14 | |
Mortgage and other loans receivable | 11 | 6 |
Other invested assets | 4,654 | 5,650 |
Derivative Assets, Fair Value | 90 | 99 |
Fair value assets measured on recurring basis, total | 42,432 | 44,362 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 2,289 | 1,509 |
Derivative Liabilities, Fair Value | 646 | 1,171 |
Long-term debt, portion measured at fair value | 183 | 213 |
Fair value liabilities measured on recurring basis, total | 3,118 | 2,893 |
Recurring Basis | Level 3 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 12 | 12 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 62 | 86 |
Recurring Basis | Level 3 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 0 | 1 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 7 | 9 |
Recurring Basis | Level 3 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 54 | 51 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 0 | 4 |
Recurring Basis | Level 3 | Commodity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 0 | |
Recurring Basis | Level 3 | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 3 | 4 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 508 | 982 |
Recurring Basis | Level 3 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 21 | 31 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 69 | 90 |
Recurring Basis | Level 3 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 3 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 2,124 | 2,159 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 3 | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 32 | 30 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 3 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,370 | 1,883 |
Other bond securities | 17 | 0 |
Recurring Basis | Level 3 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 16,537 | 16,805 |
Other bond securities | 1,581 | 1,105 |
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 2,585 | 2,696 |
Other bond securities | 193 | 369 |
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 6,169 | 6,110 |
Other bond securities | 7,055 | 7,449 |
Recurring Basis | Level 3 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 1 | |
Recurring Basis | Level 3 | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | |
Recurring Basis | Level 3 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | |
Recurring Basis | Counterparty Netting | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Counterparty netting | (1,268) | (2,102) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Counterparty netting | (1,268) | (2,102) |
Recurring Basis | Counterparty Netting | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Counterparty netting | (1,268) | (2,102) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Counterparty netting | (1,268) | (2,102) |
Recurring Basis | Cash Collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Cash collateral | (1,554) | (1,119) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Cash collateral | (760) | (1,429) |
Recurring Basis | Cash Collateral | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Cash collateral | (1,554) | (1,119) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Cash collateral | (760) | (1,429) |
Recurring Basis | Total Fair Value | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 248,245 | 259,859 |
Other bond securities | 16,782 | 19,712 |
Equity securities available for sale | 2,915 | 4,395 |
Other equity securities | 921 | 1,049 |
Mortgage and other loans receivable | 11 | 6 |
Other invested assets | 8,912 | 9,394 |
Derivative Assets, Fair Value | 1,309 | 1,604 |
Short-term investments, portion measured at fair value | 2,591 | 1,684 |
Separate account assets, at fair value | 79,574 | 80,036 |
Other assets | 0 | |
Fair value assets measured on recurring basis, total | 361,260 | 377,739 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 2,325 | 1,561 |
Other policyholder funds | 6 | 8 |
Derivative Liabilities, Fair Value | 2,020 | 2,273 |
Long-term debt, portion measured at fair value | 3,670 | 5,466 |
Other liabilities | 62 | 350 |
Fair value liabilities measured on recurring basis, total | 8,083 | 9,658 |
Recurring Basis | Total Fair Value | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 3,162 | 3,743 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 2,199 | 3,133 |
Recurring Basis | Total Fair Value | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 766 | 840 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 1,204 | 1,491 |
Recurring Basis | Total Fair Value | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 177 | 207 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 68 | 102 |
Recurring Basis | Total Fair Value | Commodity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 0 | 6 |
Recurring Basis | Total Fair Value | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 3 | 4 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 508 | 982 |
Recurring Basis | Total Fair Value | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 23 | 31 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 69 | 90 |
Recurring Basis | Total Fair Value | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | (2,822) | (3,221) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | (2,028) | (3,531) |
Recurring Basis | Total Fair Value | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,844 | 2,992 |
Other bond securities | 3,369 | 5,498 |
Recurring Basis | Total Fair Value | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 27,323 | 27,659 |
Other bond securities | 75 | 122 |
Recurring Basis | Total Fair Value | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 18,195 | 21,095 |
Other bond securities | 50 | 2 |
Recurring Basis | Total Fair Value | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 135,988 | 144,433 |
Other bond securities | 2,035 | 719 |
Recurring Basis | Total Fair Value | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 36,227 | 37,520 |
Other bond securities | 2,230 | 2,094 |
Recurring Basis | Total Fair Value | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 13,571 | 12,885 |
Other bond securities | 750 | 1,077 |
Recurring Basis | Total Fair Value | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 15,097 | 13,275 |
Other bond securities | 8,273 | 10,200 |
Recurring Basis | Total Fair Value | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 2,401 | 3,629 |
Recurring Basis | Total Fair Value | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 22 | 25 |
Recurring Basis | Total Fair Value | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | $ 492 | $ 741 |
FAIR VALUE MEASUREMENTS (Deta73
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | $ 44,263 | $ 46,547 |
Net Realized and Unrealized Gains (Losses) Included in Income | 2,405 | 2,462 |
Other Comprehensive Income (Loss) | (1,855) | 907 |
Purchases, Sales, Issues and Settlements, Net | (2,345) | 1,165 |
Gross Transfers in, assets | 2,422 | 4,797 |
Gross Transfers out, assets | (2,548) | (11,615) |
Balance End of Period | 42,342 | 44,263 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (129) | 298 |
Balance at the Beginning of the Period | (2,794) | (2,121) |
Net Realized and Unrealized Gains (Losses) Included in Income | (37) | (659) |
Accumulated Other Comprehensive Income (loss) | (1) | |
Purchases, Sales, Issues and Settlements-Net | (197) | (32) |
Gross Transfers in, liabilities | (21) | |
Gross Transfers out, liabilities | 40 | |
Balance at the End of the Period | (3,028) | (2,794) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 249 | 152 |
Policyholder contract deposits | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (1,509) | (312) |
Net Realized and Unrealized Gains (Losses) Included in Income | (315) | (1,127) |
Accumulated Other Comprehensive Income (loss) | 0 | (54) |
Purchases, Sales, Issues and Settlements-Net | (465) | (16) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | (2,289) | (1,509) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 64 | (218) |
Derivative liabilities, net | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (1,072) | (1,439) |
Net Realized and Unrealized Gains (Losses) Included in Income | 268 | 374 |
Accumulated Other Comprehensive Income (loss) | 53 | |
Purchases, Sales, Issues and Settlements-Net | 248 | (53) |
Gross Transfers in, liabilities | 49 | |
Gross Transfers out, liabilities | (56) | |
Balance at the End of the Period | (556) | (1,072) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 168 | 355 |
Interest rate contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (74) | (100) |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | (10) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 24 | 39 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | (3) |
Balance at the End of the Period | (50) | (74) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (1) | (10) |
Foreign exchange contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (8) | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1 | 2 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 0 | (10) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | (7) | (8) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 1 | 3 |
Equity contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 47 | 49 |
Net Realized and Unrealized Gains (Losses) Included in Income | 2 | 21 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 5 | (18) |
Gross Transfers in, liabilities | 0 | 48 |
Gross Transfers out, liabilities | 0 | (53) |
Balance at the End of the Period | 54 | 47 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (3) | 13 |
Commodity contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 0 | 1 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | (1) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 0 | 0 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 0 | (1) |
Credit contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (978) | (1,280) |
Net Realized and Unrealized Gains (Losses) Included in Income | 186 | 263 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 287 | 39 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | (505) | (978) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 95 | 268 |
Other contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (59) | (109) |
Net Realized and Unrealized Gains (Losses) Included in Income | 79 | 99 |
Accumulated Other Comprehensive Income (loss) | 0 | 53 |
Purchases, Sales, Issues and Settlements-Net | (68) | (103) |
Gross Transfers in, liabilities | 0 | 1 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | (48) | (59) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 76 | 82 |
Long-term debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (213) | (370) |
Net Realized and Unrealized Gains (Losses) Included in Income | 10 | 94 |
Accumulated Other Comprehensive Income (loss) | 0 | |
Purchases, Sales, Issues and Settlements-Net | 20 | 37 |
Gross Transfers in, liabilities | (70) | |
Gross Transfers out, liabilities | 96 | |
Balance at the End of the Period | (183) | (213) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 17 | 15 |
Bonds available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 29,683 | 30,001 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,294 | 1,180 |
Other Comprehensive Income (Loss) | (1,066) | 509 |
Purchases, Sales, Issues and Settlements, Net | (436) | 3,092 |
Gross Transfers in, assets | 1,522 | 4,181 |
Gross Transfers out, assets | (2,180) | (9,280) |
Balance End of Period | 28,817 | 29,683 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 2,159 | 1,080 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1 | 0 |
Other Comprehensive Income (Loss) | (85) | 233 |
Purchases, Sales, Issues and Settlements, Net | 154 | 914 |
Gross Transfers in, assets | 0 | 119 |
Gross Transfers out, assets | (105) | (187) |
Balance End of Period | 2,124 | 2,159 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 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 | 30 | 16 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 1 |
Other Comprehensive Income (Loss) | (7) | (1) |
Purchases, Sales, Issues and Settlements, Net | 10 | 9 |
Gross Transfers in, assets | 0 | 8 |
Gross Transfers out, assets | (1) | (3) |
Balance End of Period | 32 | 30 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Bonds available for sale | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 1,883 | 1,255 |
Net Realized and Unrealized Gains (Losses) Included in Income | 15 | 12 |
Other Comprehensive Income (Loss) | (109) | 19 |
Purchases, Sales, Issues and Settlements, Net | (210) | (257) |
Gross Transfers in, assets | 1,515 | 1,363 |
Gross Transfers out, assets | (1,724) | (509) |
Balance End of Period | 1,370 | 1,883 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 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 | 16,805 | 14,941 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,052 | 1,012 |
Other Comprehensive Income (Loss) | (512) | 53 |
Purchases, Sales, Issues and Settlements, Net | (808) | 796 |
Gross Transfers in, assets | 0 | 120 |
Gross Transfers out, assets | 0 | (117) |
Balance End of Period | 16,537 | 16,805 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 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 | 2,696 | 5,735 |
Net Realized and Unrealized Gains (Losses) Included in Income | 77 | 69 |
Other Comprehensive Income (Loss) | (95) | 243 |
Purchases, Sales, Issues and Settlements, Net | 118 | 85 |
Gross Transfers in, assets | 0 | 83 |
Gross Transfers out, assets | (211) | (3,519) |
Balance End of Period | 2,585 | 2,696 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 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 | 6,110 | 6,974 |
Net Realized and Unrealized Gains (Losses) Included in Income | 149 | 86 |
Other Comprehensive Income (Loss) | (258) | (38) |
Purchases, Sales, Issues and Settlements, Net | 300 | 1,545 |
Gross Transfers in, assets | 7 | 2,488 |
Gross Transfers out, assets | (139) | (4,945) |
Balance End of Period | 6,169 | 6,110 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Other bond securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 8,923 | 10,615 |
Net Realized and Unrealized Gains (Losses) Included in Income | 675 | 1,132 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (1,374) | (1,849) |
Gross Transfers in, assets | 761 | 446 |
Gross Transfers out, assets | (139) | (1,421) |
Balance End of Period | 8,846 | 8,923 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (127) | 298 |
Other bond securities | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 1 | 0 |
Gross Transfers in, assets | 16 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 17 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 1,105 | 937 |
Net Realized and Unrealized Gains (Losses) Included in Income | 32 | 40 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 460 | 97 |
Gross Transfers in, assets | 43 | 51 |
Gross Transfers out, assets | (59) | (20) |
Balance End of Period | 1,581 | 1,105 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (27) | (13) |
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 | 369 | 844 |
Net Realized and Unrealized Gains (Losses) Included in Income | (3) | (6) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (177) | (141) |
Gross Transfers in, assets | 4 | 124 |
Gross Transfers out, assets | 0 | (452) |
Balance End of Period | 193 | 369 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (13) | (7) |
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 | 7,449 | 8,834 |
Net Realized and Unrealized Gains (Losses) Included in Income | 646 | 1,098 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (1,658) | (1,805) |
Gross Transfers in, assets | 698 | 271 |
Gross Transfers out, assets | (80) | (949) |
Balance End of Period | 7,055 | 7,449 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (87) | 318 |
Equity securities available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 1 | 1 |
Net Realized and Unrealized Gains (Losses) Included in Income | 2 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (3) | (1) |
Gross Transfers in, assets | 0 | 3 |
Gross Transfers out, assets | 0 | (2) |
Balance End of Period | 0 | 1 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 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 | 1 | 1 |
Net Realized and Unrealized Gains (Losses) Included in Income | 2 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (3) | (1) |
Gross Transfers in, assets | 0 | 2 |
Gross Transfers out, assets | 0 | (1) |
Balance End of Period | 0 | 1 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 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 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 0 | 0 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Equity securities available for sale | Mutual Funds | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 0 | 0 |
Gross Transfers in, assets | 0 | 1 |
Gross Transfers out, assets | 0 | (1) |
Balance End of Period | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Mortgage and other loans receivable | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 6 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 5 | 6 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 11 | 6 |
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 | 5,650 | 5,930 |
Net Realized and Unrealized Gains (Losses) Included in Income | 435 | 150 |
Other Comprehensive Income (Loss) | (789) | 398 |
Purchases, Sales, Issues and Settlements, Net | (530) | (83) |
Gross Transfers in, assets | 117 | 167 |
Gross Transfers out, assets | (229) | (912) |
Balance End of Period | 4,654 | 5,650 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Other equity securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | (1) | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (7) | 0 |
Gross Transfers in, assets | 22 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 14 | $ 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | $ (2) |
FAIR VALUE MEASUREMENTS (Deta74
FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | $ 2,405 | $ 2,462 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (37) | (659) |
Policyholder contract deposits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (315) | (1,127) |
Policyholder contract deposits | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 |
Policyholder contract deposits | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (315) | (1,127) |
Policyholder contract deposits | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 |
Derivative liabilities, net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 268 | 374 |
Derivative liabilities, net | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 68 |
Derivative liabilities, net | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (1) | 8 |
Derivative liabilities, net | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 269 | 298 |
Long-term debt | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 10 | 94 |
Long-term debt | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 10 | 94 |
Bonds available for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 1,294 | 1,180 |
Bonds available for sale | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 1,227 | 1,236 |
Bonds available for sale | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | (49) | (107) |
Bonds available for sale | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 116 | 51 |
Other bond securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 675 | 1,132 |
Other bond securities | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 44 | 95 |
Other bond securities | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 3 | 0 |
Other bond securities | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 628 | 1,037 |
Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 2 | |
Equity securities | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | |
Equity securities | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 2 | |
Equity securities | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | |
Other equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | (1) | 0 |
Other equity securities | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | |
Other equity securities | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | |
Other equity securities | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | (1) | |
Other invested assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 435 | 150 |
Other invested assets | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 45 | 175 |
Other invested assets | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 324 | (28) |
Other invested assets | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | $ 66 | $ 3 |
FAIR VALUE MEASUREMENTS (Deta75
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issues and settlements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | $ 5,990 | $ 8,678 |
Sales, assets | (1,600) | (554) |
Settlements, assets | (6,735) | (6,959) |
Purchases, Sales, Issues and Settlements, Net, assets | (2,345) | 1,165 |
Purchases, Sales, Issues and Settlements, Net, liabilities | (197) | (32) |
Issuances | 0 | 0 |
Transfers into Level 3 at end of reporting period, net gains (losses) not included in realized and unrealized gains and losses related to Level 3 for the period | (2) | 22 |
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. | (36) | 62 |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 19 | 2 |
Sales, liabilities | (442) | (152) |
Settlements, liabilities | 226 | 118 |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Sales, liabilities | (442) | (149) |
Settlements, liabilities | (23) | 133 |
Purchases, Sales, Issues and Settlements, Net, liabilities | (465) | (16) |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 19 | 2 |
Sales, liabilities | 0 | (3) |
Settlements, liabilities | 229 | (52) |
Purchases, Sales, Issues and Settlements, Net, liabilities | 248 | (53) |
Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Settlements, liabilities | 20 | 37 |
Purchases, Sales, Issues and Settlements, Net, liabilities | 20 | 37 |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 4,406 | 7,630 |
Sales, assets | (530) | (461) |
Settlements, assets | (4,312) | (4,077) |
Purchases, Sales, Issues and Settlements, Net, assets | (436) | 3,092 |
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 | 279 | 1,041 |
Sales, assets | (37) | (35) |
Settlements, assets | (88) | (92) |
Purchases, Sales, Issues and Settlements, Net, assets | 154 | 914 |
Bonds available for sale | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 18 | 12 |
Sales, assets | (1) | |
Settlements, assets | (7) | (3) |
Purchases, Sales, Issues and Settlements, Net, assets | 10 | 9 |
Bonds available for sale | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 221 | 148 |
Sales, assets | (60) | (8) |
Settlements, assets | (371) | (397) |
Purchases, Sales, Issues and Settlements, Net, assets | (210) | (257) |
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 | 2,215 | 3,301 |
Sales, assets | (194) | (124) |
Settlements, assets | (2,829) | (2,381) |
Purchases, Sales, Issues and Settlements, Net, assets | (808) | 796 |
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 | 273 | 368 |
Sales, assets | (28) | (224) |
Settlements, assets | (127) | (59) |
Purchases, Sales, Issues and Settlements, Net, assets | 118 | 85 |
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 | 1,400 | 2,760 |
Sales, assets | (210) | (70) |
Settlements, assets | (890) | (1,145) |
Purchases, Sales, Issues and Settlements, Net, assets | 300 | 1,545 |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 897 | 266 |
Sales, assets | (481) | (68) |
Settlements, assets | (1,790) | (2,047) |
Purchases, Sales, Issues and Settlements, Net, assets | (1,374) | (1,849) |
Other bond securities | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Settlements, assets | 1 | |
Purchases, Sales, Issues and Settlements, Net, assets | 1 | 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 | 655 | 211 |
Sales, assets | (22) | (31) |
Settlements, assets | (173) | (83) |
Purchases, Sales, Issues and Settlements, Net, assets | 460 | 97 |
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 | |
Sales, assets | (79) | (16) |
Settlements, assets | (98) | (125) |
Purchases, Sales, Issues and Settlements, Net, assets | (177) | (141) |
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 | 242 | 55 |
Sales, assets | (380) | (21) |
Settlements, assets | (1,520) | (1,839) |
Purchases, Sales, Issues and Settlements, Net, assets | (1,658) | (1,805) |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | (2) | 0 |
Settlements, assets | (1) | (1) |
Purchases, Sales, Issues and Settlements, Net, assets | (3) | (1) |
Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | |
Sales, assets | 0 | |
Settlements, assets | (7) | |
Purchases, Sales, Issues and Settlements, Net, assets | (7) | 0 |
Mortgage and other loans receivable, net of allowance | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 5 | 6 |
Sales, assets | 0 | 0 |
Settlements, assets | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | 5 | 6 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 682 | 776 |
Sales, assets | (587) | (25) |
Settlements, assets | (625) | (834) |
Purchases, Sales, Issues and Settlements, Net, assets | $ (530) | $ (83) |
FAIR VALUE MEASUREMENTS (Deta76
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets)) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Corporate debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 642 | $ 1,145 |
Corporate debt | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.63% | 3.46% |
Corporate debt | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 12.45% | 8.75% |
Corporate debt | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 9.04% | 6.10% |
Residential mortgage-backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 17,280 | $ 17,353 |
Residential mortgage-backed securities | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.13% | 2.67% |
Constant prepayment rate | 0.99% | 0.59% |
Loss severity | 47.21% | 46.04% |
Constant default rate | 3.49% | 3.67% |
Residential mortgage-backed securities | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 6.14% | 6.64% |
Constant prepayment rate | 8.95% | 9.35% |
Loss severity | 79.50% | 79.56% |
Constant default rate | 9.04% | 9.96% |
Residential mortgage-backed securities | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.63% | 4.65% |
Constant prepayment rate | 4.97% | 4.97% |
Loss severity | 63.35% | 62.80% |
Constant default rate | 6.26% | 6.82% |
Certain CDO/ABS | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 3,338 | $ 5,282 |
Certain CDO/ABS | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.41% | 4.70% |
Certain CDO/ABS | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.98% | 9.70% |
Certain CDO/ABS | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.19% | 7.10% |
Commercial mortgage backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 2,388 | $ 2,687 |
Commercial mortgage backed securities | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 0.00% | 0.00% |
Commercial mortgage backed securities | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 17.65% | 17.29% |
Commercial mortgage backed securities | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 6.62% | 6.06% |
Obligations of states, municipalities and political subdivisions | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,217 | $ 1,178 |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.32% | 3.90% |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.10% | 4.62% |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.71% | 4.26% |
FAIR VALUE MEASUREMENTS (Deta77
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Index Annuities | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 715 | $ 294 |
Index Annuities | Discounted cash flow | Minimum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Mortality rates | 50.00% | 0.02% |
Lapse rates | 0.75% | 0.75% |
Index Annuities | Discounted cash flow | Maximum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Mortality rates | 75.00% | 44.06% |
Lapse rates | 66.00% | 66.00% |
Index Life | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 332 | $ 259 |
Index Life | Discounted cash flow | Minimum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 13.25% | 10.00% |
Base lapse rates | 2.00% | 2.00% |
Mortality rates | 0.00% | 0.00% |
Index Life | Discounted cash flow | Maximum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 22.00% | 25.00% |
Base lapse rates | 19.00% | 19.00% |
Mortality rates | 40.00% | 20.00% |
Derivative Liabilities - Credit contracts | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 791 | |
Derivative Liabilities - Credit contracts | BET | Minimum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Recovery rates | 5.00% | |
Diversity score | 8 | |
Weighted average life | 2 years 8 months 1 day | |
Derivative Liabilities - Credit contracts | BET | Maximum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Recovery rates | 23.00% | |
Diversity score | 25 | |
Weighted average life | 10 years 5 months 26 days | |
Derivative Liabilities - Credit contracts | BET | Weighted-average | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Recovery rates | 13.00% | |
Diversity score | 13 | |
Weighted average life | 4 years 7 months 24 days | |
GMWB and GMAB | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Change in equity volatilities assumption | $ 143 | |
Change in equity/interest rate correlation assumption | 155 | |
GMWB and GMAB | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 1,234 | $ 957 |
GMWB and GMAB | Discounted cash flow | Minimum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 15.00% | 6.00% |
Base lapse rates | 1.00% | 1.00% |
Dynamic lapse rates | 0.20% | 0.20% |
Mortality rates | 80.00% | 0.10% |
Utilization rates | 0.00% | 0.50% |
Equity/Interest-rate Correlation | 20.00% | |
GMWB and GMAB | Discounted cash flow | Maximum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 50.00% | 39.00% |
Base lapse rates | 17.00% | 28.00% |
Dynamic lapse rates | 25.50% | 42.00% |
Mortality rates | 104.27% | 35.00% |
Utilization rates | 70.00% | 30.00% |
Equity/Interest-rate Correlation | 40.00% |
FAIR VALUE MEASUREMENTS (Deta78
FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 8,577 | $ 8,359 |
Unfunded Commitments | 1,003 | 986 |
Private equity funds: | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 2,631 | 3,160 |
Unfunded Commitments | $ 970 | 980 |
Average original expected lives | 10 years | |
Private equity funds: | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives, Increments | 2 years | |
Private equity funds: | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives, Increments | 1 year | |
Private equity funds: | Expected remaining lives of less than 3 years | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 78.00% | |
Private equity funds: | Expected remaining lives of less than 3 years | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
First threshold level of remaining lives | 3 years | |
Private equity funds: | Expected remaining lives of 4 to 6 years | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 6.00% | |
Private equity funds: | Expected remaining lives of 4 to 6 years | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Second threshold level of remaining lives | 6 years | |
Private equity funds: | Expected remaining lives of 4 to 6 years | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Second threshold level of remaining lives | 4 years | |
Private equity funds: | Expected remaining lives of 7 to 10 years | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 16.00% | |
Private equity funds: | Expected remaining lives of 7 to 10 years | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Third threshold level of remaining lives | 10 years | |
Private equity funds: | Expected remaining lives of 7 to 10 years | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Third threshold level of remaining lives | 7 years | |
Leveraged buyout | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 1,774 | 2,275 |
Unfunded Commitments | 436 | 450 |
Real Estate / Infrastructure | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 306 | 384 |
Unfunded Commitments | 213 | 227 |
Venture capital | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 107 | 121 |
Unfunded Commitments | 41 | 26 |
Distressed | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 146 | 164 |
Unfunded Commitments | 41 | 43 |
Other.. | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 298 | 216 |
Unfunded Commitments | 239 | 234 |
Hedge funds: | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 5,946 | 5,199 |
Unfunded Commitments | $ 33 | 6 |
Hedge fund investments redeemable monthly (as a percent) | 14.00% | |
Hedge fund investments redeemable quarterly (as a percent) | 47.00% | |
Hedge fund investments redeemable semi-annually (as a percent) | 14.00% | |
Hedge fund investments redeemable annually (as a percent) | 25.00% | |
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 46.00% | |
Hedge funds: | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investment redemption notice period (in days/years) | 180 days | |
Hedge funds: | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investment redemption notice period (in days/years) | 1 day | |
Event-driven | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 1,194 | 1,109 |
Unfunded Commitments | 0 | 0 |
Long-short | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 2,978 | 2,428 |
Unfunded Commitments | 25 | 1 |
Macro | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 555 | 498 |
Unfunded Commitments | 0 | 0 |
Distressed | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 699 | 731 |
Unfunded Commitments | 8 | 5 |
Emerging markets | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 353 | 308 |
Unfunded Commitments | 0 | 0 |
Other hedge funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 167 | 125 |
Unfunded Commitments | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta79
FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments for which we elected the fair value option) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | $ 4 | $ 32 | $ 54 |
Fair Value Option | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 613 | 2,140 | 2,353 |
Fair Value Option | Long-term debt | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | (38) | (269) | 327 |
Fair Value Option | Other liabilities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | (3) | (13) | (15) |
Fair Value Option | Mortgage and other loans receivable, net of allowance | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 0 | 0 | 3 |
Fair Value Option | Bond and equity securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 616 | 2,099 | 1,667 |
Fair Value Option | Alternative investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 36 | 313 | 360 |
Fair Value Option | Other, Including Short Term Investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | $ 2 | $ 10 | $ 11 |
FAIR VALUE MEASUREMENTS (Deta80
FAIR VALUE MEASUREMENTS (Details - Difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term borrowings for which the fair value option was elected) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage and other loans receivable, Fair Value | $ 11 | $ 6 |
Mortgage and other loans receivable, Difference | 29,873 | 25,261 |
Long-term debt, Fair Value | 3,670 | 5,466 |
Long-term debt, Outstanding Principal Amount | 29,350 | 31,217 |
Fair Value Option | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage and other loans receivable, Fair Value | 11 | 6 |
Mortgage and other loans receivable, Outstanding Principal Amount | 9 | 4 |
Mortgage and other loans receivable, Difference | 2 | 2 |
Long-term debt, Fair Value | 3,670 | 5,466 |
Long-term debt, Outstanding Principal Amount | 2,675 | 4,101 |
Long-term debt, Difference | $ 995 | $ 1,365 |
Disclosure level, past due mortgage or other loans receivable for which the fair value option was elected, number of days past due threshold | 90 days |
FAIR VALUE MEASUREMENTS (Deta81
FAIR VALUE MEASUREMENTS (Details - Assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | $ 809 | $ 342 | $ 1,114 |
Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | 189 | 134 | 112 |
Investments in life settlements | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | 540 | 201 | 971 |
Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | 80 | 7 | $ 31 |
Fair value on a non-recurring basis | Level 1 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 1 | Investments in life settlements | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 1 | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | Investments in life settlements | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 3 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 2,074 | 1,328 | |
Fair value on a non-recurring basis | Level 3 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 1,117 | 790 | |
Fair value on a non-recurring basis | Level 3 | Investments in life settlements | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 828 | 537 | |
Fair value on a non-recurring basis | Level 3 | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 129 | 1 | |
Fair value on a non-recurring basis | Total Fair Value | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 2,074 | 1,328 | |
Fair value on a non-recurring basis | Total Fair Value | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 1,117 | 790 | |
Fair value on a non-recurring basis | Total Fair Value | Investments in life settlements | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 828 | 537 | |
Fair value on a non-recurring basis | Total Fair Value | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | $ 129 | $ 1 |
FAIR VALUE MEASUREMENTS (Deta82
FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Mortgage and other loans receivable | $ 29,565 | $ 24,990 | ||
Short-term investments | 10,132 | 11,243 | ||
Cash | 1,629 | 1,758 | $ 2,241 | $ 1,151 |
Liabilities: | ||||
Other liabilities | 26,164 | 26,441 | ||
Long-term Debt | 29,350 | 31,217 | ||
Total Fair Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 30,345 | 26,606 | ||
Other invested assets | 3,443 | 3,475 | ||
Short-term investments | 7,541 | 9,559 | ||
Cash | 1,629 | 1,758 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 117,846 | 119,512 | ||
Other liabilities | 2,852 | 1,120 | ||
Long-term Debt | 26,214 | 27,681 | ||
Level 1 | ||||
Assets: | ||||
Mortgage and other loans receivable | 0 | 0 | ||
Other invested assets | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Cash | 1,629 | 1,758 | ||
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 | 198 | 449 | ||
Other invested assets | 563 | 593 | ||
Short-term investments | 7,541 | 9,559 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 309 | 244 | ||
Other liabilities | 2,852 | 1,120 | ||
Long-term Debt | 21,686 | 24,749 | ||
Level 3 | ||||
Assets: | ||||
Mortgage and other loans receivable | 30,147 | 26,157 | ||
Other invested assets | 2,880 | 2,882 | ||
Short-term investments | 0 | 0 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 117,537 | 119,268 | ||
Other liabilities | 0 | 0 | ||
Long-term Debt | 4,528 | 2,932 | ||
Carrying Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 29,554 | 24,984 | ||
Other invested assets | 4,169 | 4,352 | ||
Short-term investments | 7,541 | 9,559 | ||
Cash | 1,629 | 1,758 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 108,788 | 106,395 | ||
Other liabilities | 2,852 | 1,120 | ||
Long-term Debt | $ 25,680 | $ 25,751 |
INVESTMENTS (Details - Amortize
INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 242,347 | $ 245,237 |
Available for sale securities, Gross Unrealized Gains | 14,087 | 20,890 |
Available for sale securities, Gross Unrealized Losses | (5,274) | (1,873) |
Available-for-sale Securities | 251,160 | 264,254 |
AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,482 | 2,080 |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 240,968 | 243,307 |
Available for sale securities, Gross Unrealized Gains | 12,527 | 18,371 |
Available for sale securities, Gross Unrealized Losses | (5,250) | (1,819) |
Available-for-sale Securities | 248,245 | 259,859 |
Other details of available for sale securities | ||
Available for sale securities not rated or rated below investment grade | 34,900 | 35,100 |
Bonds available for sale | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,482 | 2,080 |
Bonds available for sale | U.S. government and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 1,698 | 2,806 |
Available for sale securities, Gross Unrealized Gains | 155 | 204 |
Available for sale securities, Gross Unrealized Losses | (9) | (18) |
Available-for-sale Securities | 1,844 | 2,992 |
Bonds available for sale | U.S. government and government sponsored entities | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 0 | 0 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 26,003 | 25,979 |
Available for sale securities, Gross Unrealized Gains | 1,424 | 1,729 |
Available for sale securities, Gross Unrealized Losses | (104) | (49) |
Available-for-sale Securities | 27,323 | 27,659 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 19 | (13) |
Bonds available for sale | Non-U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 17,752 | 20,280 |
Available for sale securities, Gross Unrealized Gains | 805 | 966 |
Available for sale securities, Gross Unrealized Losses | (362) | (151) |
Available-for-sale Securities | 18,195 | 21,095 |
Bonds available for sale | Non-U.S. government | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 0 | 0 |
Bonds available for sale | Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 133,513 | 134,961 |
Available for sale securities, Gross Unrealized Gains | 6,462 | 10,594 |
Available for sale securities, Gross Unrealized Losses | (3,987) | (1,122) |
Available-for-sale Securities | 135,988 | 144,433 |
Bonds available for sale | Corporate debt | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | (87) | 64 |
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 62,002 | 59,281 |
Available for sale securities, Gross Unrealized Gains | 3,681 | 4,878 |
Available for sale securities, Gross Unrealized Losses | (788) | (479) |
Available-for-sale Securities | 64,895 | 63,680 |
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,550 | 2,029 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 33,878 | 34,377 |
Available for sale securities, Gross Unrealized Gains | 2,760 | 3,435 |
Available for sale securities, Gross Unrealized Losses | (411) | (292) |
Available-for-sale Securities | 36,227 | 37,520 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,326 | 1,767 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 13,139 | 12,129 |
Available for sale securities, Gross Unrealized Gains | 561 | 815 |
Available for sale securities, Gross Unrealized Losses | (129) | (59) |
Available-for-sale Securities | 13,571 | 12,885 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 185 | 215 |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 14,985 | 12,775 |
Available for sale securities, Gross Unrealized Gains | 360 | 628 |
Available for sale securities, Gross Unrealized Losses | (248) | (128) |
Available-for-sale Securities | 15,097 | 13,275 |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 39 | 47 |
Equity securities available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 1,379 | 1,930 |
Available for sale securities, Gross Unrealized Gains | 1,560 | 2,519 |
Available for sale securities, Gross Unrealized Losses | (24) | (54) |
Available-for-sale Securities | 2,915 | 4,395 |
Equity securities available for sale | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 913 | 1,185 |
Available for sale securities, Gross Unrealized Gains | 1,504 | 2,461 |
Available for sale securities, Gross Unrealized Losses | (16) | (17) |
Available-for-sale Securities | 2,401 | 3,629 |
Equity securities available for sale | Preferred Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 19 | 21 |
Available for sale securities, Gross Unrealized Gains | 3 | 4 |
Available for sale securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 22 | 25 |
Equity securities available for sale | Mutual Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 447 | 724 |
Available for sale securities, Gross Unrealized Gains | 53 | 54 |
Available for sale securities, Gross Unrealized Losses | (8) | (37) |
Available-for-sale Securities | $ 492 | $ 741 |
INVESTMENTS (Details - Summary
INVESTMENTS (Details - Summary of fair value and gross unrealized losses on available for sale securities aggregated by major investment category and length of time in a continuous unrealized loss position) $ in Millions | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) |
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | $ 67,217 | $ 23,825 |
Gross Unrealized Losses, Less than 12 Months | 3,182 | 719 |
Fair Value, 12 Months or More | 13,595 | 22,344 |
Gross Unrealized Losses, 12 Months or More | 2,092 | 1,154 |
Fair Value, Total | 80,812 | 46,169 |
Gross Unrealized Losses, Total | 5,274 | 1,873 |
Bonds available for sale | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 66,926 | 23,457 |
Gross Unrealized Losses, Less than 12 Months | 3,158 | 666 |
Fair Value, 12 Months or More | 13,595 | 22,278 |
Gross Unrealized Losses, 12 Months or More | 2,092 | 1,153 |
Fair Value, Total | 80,521 | 45,735 |
Gross Unrealized Losses, Total | $ 5,250 | 1,819 |
Number of securities in an unrealized loss position | item | 14,972 | |
Number of individual securities in continuous unrealized loss position for longer than twelve months | item | 2,176 | |
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 | $ 483 | 526 |
Gross Unrealized Losses, Less than 12 Months | 9 | 5 |
Fair Value, 12 Months or More | 1 | 281 |
Gross Unrealized Losses, 12 Months or More | 0 | 13 |
Fair Value, Total | 484 | 807 |
Gross Unrealized Losses, Total | 9 | 18 |
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 | 2,382 | 495 |
Gross Unrealized Losses, Less than 12 Months | 87 | 9 |
Fair Value, 12 Months or More | 268 | 794 |
Gross Unrealized Losses, 12 Months or More | 17 | 40 |
Fair Value, Total | 2,650 | 1,289 |
Gross Unrealized Losses, Total | 104 | 49 |
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 | 4,327 | 1,606 |
Gross Unrealized Losses, Less than 12 Months | 203 | 42 |
Fair Value, 12 Months or More | 832 | 1,690 |
Gross Unrealized Losses, 12 Months or More | 159 | 109 |
Fair Value, Total | 5,159 | 3,296 |
Gross Unrealized Losses, Total | 362 | 151 |
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 | 41,317 | 12,132 |
Gross Unrealized Losses, Less than 12 Months | 2,514 | 450 |
Fair Value, 12 Months or More | 5,428 | 11,570 |
Gross Unrealized Losses, 12 Months or More | 1,473 | 672 |
Fair Value, Total | 46,745 | 23,702 |
Gross Unrealized Losses, Total | 3,987 | 1,122 |
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 | 7,215 | 4,621 |
Gross Unrealized Losses, Less than 12 Months | 133 | 109 |
Fair Value, 12 Months or More | 4,318 | 3,996 |
Gross Unrealized Losses, 12 Months or More | 278 | 183 |
Fair Value, Total | 11,533 | 8,617 |
Gross Unrealized Losses, Total | 411 | 292 |
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 | 4,138 | 220 |
Gross Unrealized Losses, Less than 12 Months | 108 | 1 |
Fair Value, 12 Months or More | 573 | 2,087 |
Gross Unrealized Losses, 12 Months or More | 21 | 58 |
Fair Value, Total | 4,711 | 2,307 |
Gross Unrealized Losses, Total | 129 | 59 |
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 | 7,064 | 3,857 |
Gross Unrealized Losses, Less than 12 Months | 104 | 50 |
Fair Value, 12 Months or More | 2,175 | 1,860 |
Gross Unrealized Losses, 12 Months or More | 144 | 78 |
Fair Value, Total | 9,239 | 5,717 |
Gross Unrealized Losses, Total | 248 | 128 |
Equity securities available for sale | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 291 | 368 |
Gross Unrealized Losses, Less than 12 Months | 24 | 53 |
Fair Value, 12 Months or More | 0 | 66 |
Gross Unrealized Losses, 12 Months or More | 0 | 1 |
Fair Value, Total | 291 | 434 |
Gross Unrealized Losses, Total | $ 24 | 54 |
Number of securities in an unrealized loss position | item | 174 | |
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 | $ 91 | 88 |
Gross Unrealized Losses, Less than 12 Months | 16 | 16 |
Fair Value, 12 Months or More | 0 | 2 |
Gross Unrealized Losses, 12 Months or More | 0 | 1 |
Fair Value, Total | 91 | 90 |
Gross Unrealized Losses, Total | 16 | 17 |
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 | 0 | 0 |
Gross Unrealized Losses, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 0 | 0 |
Gross Unrealized Losses, Total | 0 | 0 |
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 | 200 | 280 |
Gross Unrealized Losses, Less than 12 Months | 8 | 37 |
Fair Value, 12 Months or More | 0 | 64 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 200 | 344 |
Gross Unrealized Losses, Total | $ 8 | $ 37 |
INVESTMENTS (Details - Amorti85
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 242,347 | $ 245,237 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 248,245 | 259,859 |
Fixed Maturity Securities Available for Sale in a Loss Position | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | 1,122 | 637 |
Due after one year through five years, Amortized Cost | 9,847 | 6,669 |
Due after five years through ten years, Amortized Cost | 22,296 | 12,873 |
Due after ten years, Amortized Cost | 26,235 | 10,255 |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 26,271 | 17,120 |
Available for sale securities, Amortized Cost, Total | 85,771 | 47,554 |
Due in one year or less, Fair Value | 1,103 | 620 |
Due after one year through five years, Fair Value | 9,494 | 6,529 |
Due after five years through ten years, Fair Value | 20,686 | 12,338 |
Due after ten years, Fair Value | 23,755 | 9,607 |
Mortgage-backed, asset-backed and collateralized, Fair Value | 25,483 | 16,641 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 80,521 | 45,735 |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | 9,176 | 9,821 |
Due after one year through five years, Amortized Cost | 47,230 | 48,352 |
Due after five years through ten years, Amortized Cost | 54,120 | 62,685 |
Due after ten years, Amortized Cost | 68,440 | 63,168 |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 62,002 | 59,281 |
Available for sale securities, Amortized Cost, Total | 240,968 | 243,307 |
Due in one year or less, Fair Value | 9,277 | 9,975 |
Due after one year through five years, Fair Value | 49,196 | 50,873 |
Due after five years through ten years, Fair Value | 54,459 | 65,889 |
Due after ten years, Fair Value | 70,418 | 69,442 |
Mortgage-backed, asset-backed and collateralized, Fair Value | 64,895 | 63,680 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | $ 248,245 | $ 259,859 |
INVESTMENTS (Details - Realized
INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | $ 1,577 | $ 838 | $ 2,764 |
Gross Realized Losses | 451 | 142 | 221 |
Aggregate fair value of available for sale securities sold | 28,700 | 25,300 | 35,900 |
Net realized capital gains (losses) | 1,100 | 700 | 2,500 |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 517 | 703 | 2,634 |
Gross Realized Losses | 423 | 118 | 202 |
Equity securities available for sale | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 1,060 | 135 | 130 |
Gross Realized Losses | $ 28 | $ 24 | $ 19 |
INVESTMENTS (Details - Value of
INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 17,703 | $ 20,761 |
Other Securities, Percent of Total | 100.00% | 100.00% |
U.S. Government agency backed ABS | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 712 | $ 859 |
Fixed maturity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 16,782 | $ 19,712 |
Other Securities, Percent of Total | 95.00% | 95.00% |
Fixed maturity securities | U.S. government and government sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 3,369 | $ 5,498 |
Other Securities, Percent of Total | 19.00% | 27.00% |
Fixed maturity securities | Obligations of states, territories and political subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 75 | $ 122 |
Other Securities, Percent of Total | 0.00% | 1.00% |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 50 | $ 2 |
Other Securities, Percent of Total | 0.00% | 0.00% |
Fixed maturity securities | Corporate debt | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 2,035 | $ 719 |
Other Securities, Percent of Total | 12.00% | 3.00% |
Fixed maturity securities | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 11,253 | $ 13,371 |
Other Securities, Percent of Total | 64.00% | 64.00% |
Fixed maturity securities | Residential mortgage-backed securities (RMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 2,230 | $ 2,094 |
Other Securities, Percent of Total | 13.00% | 10.00% |
Fixed maturity securities | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 750 | $ 1,077 |
Other Securities, Percent of Total | 4.00% | 5.00% |
Fixed maturity securities | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 8,273 | $ 10,200 |
Other Securities, Percent of Total | 47.00% | 49.00% |
Fixed maturity securities | Other | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 0 | $ 0 |
Other Securities, Percent of Total | 0.00% | 0.00% |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 921 | $ 1,049 |
Other Securities, Percent of Total | 5.00% | 5.00% |
INVESTMENTS (Details - Carrying
INVESTMENTS (Details - Carrying values of other invested assets) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investment [Line Items] | ||
Other invested assets | $ 29,794 | $ 34,518 |
Other invested assets, gross unrealized losses | 33 | 56 |
Alternative investments | ||
Investment [Line Items] | ||
Other invested assets | 18,150 | 19,656 |
Mutual Funds | ||
Investment [Line Items] | ||
Other invested assets | 0 | |
Investment real estate | ||
Investment [Line Items] | ||
Other invested assets | 6,579 | 3,612 |
Net of accumulated depreciation on investment in real estate | 668 | 315 |
Aircraft asset investments | ||
Investment [Line Items] | ||
Other invested assets | 477 | 651 |
Investment In Aer Cap [Member] | ||
Investment [Line Items] | ||
Other invested assets | 0 | 4,972 |
Investments in life settlements | ||
Investment [Line Items] | ||
Other invested assets | 3,606 | 3,753 |
All other investments | ||
Investment [Line Items] | ||
Other invested assets | $ 982 | $ 1,874 |
INVESTMENTS (Details - Equity m
INVESTMENTS (Details - Equity method investments) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Other Invested Assets - Equity Method Investments | |
Investee's reporting period prior to the end of entity's reporting period | 1 month |
Maximum | |
Other Invested Assets - Equity Method Investments | |
Investee's reporting period prior to the end of entity's reporting period | 3 months |
INVESTMENTS (Details - AIA IPO)
INVESTMENTS (Details - AIA IPO) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Subsidiary, Sale of Stock [Line Items] | |||
Subsequent sale of ordinary shares | 371,806 | 41,551 | 58,787 |
INVESTMENTS (Details - Summariz
INVESTMENTS (Details - Summarized financial information of equity method investees) - All other equity method investments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating results: | |||
Total revenues | $ 22,055 | $ 29,579 | $ 19,181 |
Total expenses | (3,898) | (7,828) | (5,515) |
Net income | 18,157 | 21,751 | $ 13,666 |
Balance sheet: | |||
Total assets | 201,007 | 207,994 | |
Total liabilities | (33,424) | (67,346) | |
Equity method investments, Carrying Value | $ 14,259 | $ 18,951 |
INVESTMENTS (Details - Life set
INVESTMENTS (Details - Life settlements) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
INVESTMENTS | |||
Income recognized on life settlement contracts | $ 332 | $ 407 | $ 334 |
Number of Contracts | |||
Number of Contracts, 0 - 1 year | item | 1 | ||
Number of Contracts, 1 - 2 years | item | 9 | ||
Number of Contracts, 2 - 3 years | item | 16 | ||
Number of Contracts, 3 - 4 years | item | 72 | ||
Number of Contracts, 4 - 5 years | item | 156 | ||
Number of Contracts, Thereafter | item | 4,300 | ||
Total Number of Contracts | item | 4,554 | ||
Carrying Value | |||
Carrying Value, 1 to 2 years | $ 9 | ||
Carrying Value, 2 to 3 years | 10 | ||
Carrying Value, 3 to 4 years | 50 | ||
Carrying Value, 4 to 5 years | 235 | ||
Carrying Value, Thereafter | 3,302 | ||
Total of Carrying Value | 3,606 | ||
Face Value (Death Benefits) | |||
Face Value (Death Benefits), 1 - 2 years | 17 | ||
Face Value (Death Benefits), 2 - 3 years | 20 | ||
Face Value (Death Benefits), 3 - 4 years | 113 | ||
Face Value (Death Benefits), 4 - 5 years | 485 | ||
Face Value (Death Benefits), Thereafter | 14,233 | ||
Total of Face Value (Death Benefits) | 14,868 | ||
Anticipated life insurance premiums | |||
2,016 | 530 | ||
2,017 | 553 | ||
2,018 | 579 | ||
2,019 | 598 | ||
2,020 | $ 607 |
INVESTMENTS (Details - Componen
INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment [Line Items] | |||
Total investment income | $ 14,581 | $ 16,596 | $ 16,358 |
Investment expenses | 528 | 517 | 548 |
Net investment income | 14,053 | 16,079 | 15,810 |
Fixed maturity securities, including short-term investments | |||
Investment [Line Items] | |||
Total investment income | 11,332 | 12,322 | 12,044 |
Equity securities | |||
Investment [Line Items] | |||
Total investment income | 99 | 221 | 178 |
Interest on mortgage and other loans | |||
Investment [Line Items] | |||
Total investment income | 1,417 | 1,272 | 1,144 |
Alternative investments | |||
Investment [Line Items] | |||
Total investment income | 1,476 | 2,624 | 2,803 |
Real estate | |||
Investment [Line Items] | |||
Total investment income | 181 | 110 | 128 |
Other investments | |||
Investment [Line Items] | |||
Total investment income | $ 76 | $ 47 | $ 61 |
INVESTMENTS (Details - Compon94
INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other-than-temporary impairments: | |||
Severity | $ (13) | $ (3) | $ (6) |
Change in intent | (233) | (40) | (48) |
Foreign currency declines | (57) | (19) | (1) |
Issuer-specific credit events | (348) | (169) | (170) |
Adverse projected cash flows | (20) | (16) | (7) |
Provision for loan losses | (58) | (1) | (26) |
Foreign exchange transactions | 416 | 598 | 151 |
Derivative instruments | 341 | (177) | 287 |
Impairments of investments in life settlements | (540) | (201) | (971) |
Other | 162 | 71 | 187 |
Total net realized capital gains | 776 | 739 | 1,939 |
MetLife | |||
Other-than-temporary impairments: | |||
Total net realized capital gains | 0 | ||
Fixed maturity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sale of fixed maturity securities | 94 | 585 | 2,432 |
Equity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sale of fixed maturity securities | $ 1,032 | $ 111 | $ 111 |
INVESTMENTS (Details - Increase
INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $ (11,007) | $ 7,720 |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | (9,275) | 6,809 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | (929) | 535 |
Other investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $ (803) | $ 376 |
INVESTMENTS (Details - Rollforw
INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fixed maturity securities | |||
Other Than Temporary Impairment Credit Losses Recognized in Earnings | |||
Balance, beginning of year | $ 2,659 | $ 3,872 | $ 5,164 |
Increases due to: | |||
Credit impairments on new securities subject to impairment losses | 111 | 49 | 47 |
Additional credit impairments on previously impaired securities | 109 | 85 | 78 |
Reductions due to: | |||
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell | (399) | (613) | (643) |
Credit impaired securities for which there is a current intent or anticipated requirement to sell | 2 | 0 | 0 |
Accretion on securities previously impaired due to credit | (735) | (725) | (774) |
Other | 0 | (9) | 0 |
Balance, end of year | $ 1,747 | $ 2,659 | $ 3,872 |
Equity securities | |||
Reductions due to: | |||
Percent discount to cost for purposes of evaluating other-than-temporary impairment | 25.00% | ||
Criteria for considering impairment, period over which securities have been in a continuous decline in a value below cost | 12 months | ||
Rapid and severe percent discount to cost for purposes of evaluating other-than-temporary impairment | 50.00% | ||
Criteria for considering impairment, period of time traded at discount | 9 months |
INVESTMENTS (Details - Purchase
INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 240,968 | $ 243,307 |
Fair value | 251,160 | 264,254 |
Purchased Credit Impaired (PCI) Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Contractually required payments (principal and interest) | 33,191 | |
Cash flows expected to be collected | 26,882 | |
Recorded investment in acquired securities | 17,955 | |
Outstanding principal balance | 16,871 | 16,962 |
Amortized cost | 12,303 | 12,216 |
Fair value | 13,164 | 13,462 |
Available for sale securities | Purchased Credit Impaired (PCI) Securities | ||
Changes in activity for the accretable yield on PCI securities: | ||
Balance, beginning of year | 6,865 | 6,940 |
Newly purchased PCI securities | 696 | 1,289 |
Disposals | (13) | 0 |
Accretion | (879) | (880) |
Effect of changes in interest rate indices | (251) | (542) |
Net reclassification from non-accretable difference, including effects of prepayments | 428 | 58 |
Balance, end of year | $ 6,846 | $ 6,865 |
INVESTMENTS (Details - Pledged
INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investment [Line Items] | ||
Cash collateral as a percentage of security value used to determine classification as a sale | 90.00% | |
Fair value of securities pledged | $ 1,742 | $ 2,506 |
Fair value of amount repledged | 0 | 131 |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 4,900 | 5,900 |
Short-term investments held in escrow | 439 | |
31 to 90 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 57 | |
91 to 364 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 49 | |
Up to 30 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 50 | |
FHLBs | ||
Investment [Line Items] | ||
Fair value of available for sale securities | 1,200 | 500 |
Amount owned by subsidiaries | 47 | 44 |
Secured financing | ||
Investment [Line Items] | ||
Fair value of available for sale securities | 1,145 | 0 |
Fair value of other securities | 1,740 | 2,122 |
Amounts Borrowed Under Repurchase and Securities Lending Agreements | 2,900 | |
Secured financing | 31 to 90 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 332 | |
Securities Lending Agreements, Fair Value of Collateral | 914 | |
Secured financing | 91 to 364 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,326 | |
Securities Lending Agreements, Fair Value of Collateral | 124 | |
Secured financing | Up to 30 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 33 | |
GIAs | ||
Investment [Line Items] | ||
Fair value of other securities | $ 2,400 | $ 3,500 |
LENDING ACTIVITIES (Details - C
LENDING ACTIVITIES (Details - Composition of Mortgages and other loans receivable) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 29,873 | $ 25,261 | ||
Allowance for losses | (308) | (271) | $ (312) | $ (405) |
Mortgage and other loans receivable, net | 29,565 | 24,990 | ||
Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 22,067 | 18,909 | ||
Allowance for losses | $ (171) | $ (159) | $ (201) | $ (159) |
Commercial mortgages | California | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 22.00% | 18.00% | ||
Commercial mortgages | New York | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 12.00% | 14.00% | ||
Residential Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 2,758 | $ 1,007 | ||
Life insurance policy loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 2,597 | 2,710 | ||
Commercial loans, other loans and notes receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 2,451 | $ 2,635 |
LENDING ACTIVITIES (Details 100
LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Commercial Mortgage Recorded Investment [Line Items] | ||||
Mortgage and other loans receivable, net | $ 29,565 | $ 24,990 | ||
Allowance for losses | 308 | 271 | $ 312 | $ 405 |
Apartments | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 3,916 | 3,384 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 3 | 0 | ||
Mortgage and other loans receivable, net | 3,919 | 3,384 | ||
Allowance for losses, Specific | 0 | 0 | ||
Allowance for losses, General | 35 | 3 | ||
Allowance for losses | 35 | 3 | ||
Offices | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 7,484 | 6,100 | ||
Restructured | 156 | 343 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 205 | 75 | ||
Mortgage and other loans receivable, net | 7,845 | 6,518 | ||
Allowance for losses, Specific | 16 | 27 | ||
Allowance for losses, General | 47 | 59 | ||
Allowance for losses | 63 | 86 | ||
Retail | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 4,809 | 3,807 | ||
Restructured | 25 | 7 | ||
90 days or less delinquent | 4 | 10 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 4,838 | 3,824 | ||
Allowance for losses, Specific | 1 | 3 | ||
Allowance for losses, General | 29 | 25 | ||
Allowance for losses | 30 | 28 | ||
Industrial | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,902 | 1,689 | ||
Restructured | 6 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 6 | 0 | ||
Mortgage and other loans receivable, net | 1,914 | 1,689 | ||
Allowance for losses, Specific | 6 | 13 | ||
Allowance for losses, General | 8 | 9 | ||
Allowance for losses | 14 | 22 | ||
Hotel | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 2,082 | 1,660 | ||
Restructured | 16 | 17 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 2,098 | 1,677 | ||
Allowance for losses, Specific | 1 | 3 | ||
Allowance for losses, General | 15 | 3 | ||
Allowance for losses | 16 | 6 | ||
Others | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,435 | 1,812 | ||
Restructured | 6 | 0 | ||
90 days or less delinquent | 0 | 5 | ||
Greater than 90 days delinquent or in process of foreclosure | 12 | 0 | ||
Mortgage and other loans receivable, net | 1,453 | 1,817 | ||
Allowance for losses, Specific | 0 | 9 | ||
Allowance for losses, General | 13 | 5 | ||
Allowance for losses | $ 13 | $ 14 | ||
Commercial mortgages | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Number of loans in good standing | loan | 830 | 1,007 | ||
Number of loans restructured | loan | 9 | 7 | ||
Number of loans 90 days or less delinquent | loan | 1 | 6 | ||
Number of loans greater than 90 days delinquent or in process of foreclosure | loan | 9 | 4 | ||
Number of Loans | loan | 849 | 1,024 | ||
In good standing | $ 21,628 | $ 18,452 | ||
Restructured | 209 | 367 | ||
90 days or less delinquent | 4 | 15 | ||
Greater than 90 days delinquent or in process of foreclosure | 226 | 75 | ||
Mortgage and other loans receivable, net | 22,067 | 18,909 | ||
Allowance for losses, Specific | 24 | 55 | ||
Allowance for losses, General | 147 | 104 | ||
Allowance for losses | $ 171 | $ 159 | ||
Percentage of loans that are current as to payments of principal and interest | 98.00% | 98.00% | ||
Percentage restructured | 1.00% | 2.00% | ||
Percentage greater than 90 days delinquent or in foreclosure | 1.00% | 0.00% | ||
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 - R
LENDING ACTIVITIES (Details - Rollforward of the changes in the allowance for losses on Mortgage and other loans receivable) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | $ 271 | $ 312 | $ 405 |
Loans charged off | (29) | (68) | (116) |
Recoveries of loans previously charged off | 5 | 34 | 9 |
Net charge-offs | (24) | (34) | (107) |
Provision for loan losses | 58 | (8) | 20 |
Other | 3 | 1 | (6) |
Activity of discontinued operations | 0 | 0 | 0 |
Allowance, end of period | 308 | 271 | 312 |
Loans modified in a troubled debt restructuring | 36 | 218 | |
Commercial mortgages | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | 159 | 201 | 159 |
Loans charged off | (23) | (29) | (12) |
Recoveries of loans previously charged off | 4 | 18 | 3 |
Net charge-offs | (19) | (11) | (9) |
Provision for loan losses | 31 | (31) | 52 |
Other | 0 | 0 | (1) |
Activity of discontinued operations | 0 | 0 | 0 |
Allowance, end of period | 171 | 159 | 201 |
Allowance related to individually assessed credit losses | 24 | 55 | |
Commercial mortgage loans | 507 | 192 | |
Other Loans | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | 112 | 111 | 246 |
Loans charged off | (6) | (39) | (104) |
Recoveries of loans previously charged off | 1 | 16 | 6 |
Net charge-offs | (5) | (23) | (98) |
Provision for loan losses | 27 | 23 | (32) |
Other | 3 | 1 | (5) |
Activity of discontinued operations | 0 | 0 | 0 |
Allowance, end of period | $ 137 | $ 112 | $ 111 |
REINSURANCE (Details - Suppleme
REINSURANCE (Details - Supplemental information for loss and benefit reserves, gross and net of ceded reinsurance) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effects of Reinsurance [Line Items] | ||||
Allowance for doubtful accounts on reinsurance assets | $ 272 | $ 258 | $ 276 | |
Supplemental information for loss and benefit reserves | ||||
Liability for unpaid claims and claims adjustment expense, As Reported | (74,942) | (77,260) | (81,547) | $ (87,991) |
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | (60,603) | (61,612) | (64,316) | $ (68,782) |
Future policy benefits for life and accident and health insurance contracts | (43,585) | (42,749) | ||
Future policy benefits for life and accident and health insurance contracts, Net of Reinsurance | (42,506) | (41,767) | ||
Reserve for unearned premiums, As Reported | (21,318) | (21,324) | ||
Reserve for unearned premiums, Net of Reinsurance | (18,380) | (18,278) | ||
Reinsurance assets | 18,356 | 19,676 | ||
NICO | ||||
Supplemental information for loss and benefit reserves | ||||
Net of reinsurance amount reflecting cession | $ 1,800 | $ 1,500 | $ 1,600 |
REINSURANCE (Details - Short-Du
REINSURANCE (Details - Short-Duration Reinsurance) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Premiums Written | ||||
Direct | $ 42,931 | $ 43,425 | $ 43,984 | |
Assumed | 2,979 | 3,419 | 4,319 | |
Ceded | (8,360) | (8,979) | (10,134) | |
Net Amount | 37,550 | 37,865 | 38,169 | |
Premiums earned: | ||||
Net | 36,655 | 37,254 | 37,499 | |
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | $ 19,209 | |||
Short-duration insurance | ||||
Premiums earned: | ||||
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 4,100 | 2,600 | 3,300 | |
Reportable Segments | Total AIG Property Casualty | Short-duration insurance | ||||
Premiums Written | ||||
Direct | 37,698 | 39,375 | 39,833 | |
Assumed | 2,972 | 3,399 | 4,306 | |
Ceded | (7,604) | (8,318) | (9,514) | |
Net Amount | 33,066 | 34,456 | 34,625 | |
Premiums earned: | ||||
Direct | 37,105 | 38,707 | 39,018 | |
Assumed | 2,659 | 3,258 | 3,516 | |
Ceded | (7,593) | (8,140) | (8,585) | |
Net | 32,171 | 33,825 | 33,949 | |
Run-off Insurance Lines | ||||
Premiums Written | ||||
Direct | 6 | 11 | 9 | |
Net Amount | $ 6 | $ 11 | $ 9 |
REINSURANCE (Details - Long-Dur
REINSURANCE (Details - Long-Duration Reinsurance) $ in Thousands | Feb. 07, 2014USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Premiums earned: | |||||
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | $ 19,209,000 | ||||
Letters of credit | |||||
Letter of credit outstanding | $ 208,000 | ||||
New letter of credit | |||||
Letters of credit | |||||
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions | $ 450,000 | ||||
Number of new bilateral letters of credit | item | 2 | ||||
Automatic extension period | 1 year | ||||
Long-duration insurance in force | |||||
Premiums earned: | |||||
Ceded | (756,000) | ||||
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 1,000 | $ 731,000 | $ 714,000 | ||
Life insurance ratios | |||||
Long-duration insurance in force ceded | $ 177,025,000 | $ 180,178,000 | $ 122,012,000 | ||
Assumed insurance as a percentage of gross long-duration insurance in force | 0.04% | 0.04% | 0.05% | ||
Assumed insurance as a percent of gross premiums | 0.10% | 0.50% | 0.30% | ||
Letters of credit | |||||
Syndicated letter of credit facility outstanding related to long-duration intercompany reinsurance transactions | $ 260,000 | ||||
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions | 190,000 | ||||
Letter of credit outstanding | 450,000 | ||||
Divested Businesses | Long-duration insurance in force | |||||
Life insurance ratios | |||||
Assumed insurance as a percentage of gross long-duration insurance in force | 0.04% | ||||
Assumed insurance as a percent of gross premiums | 0.10% | ||||
Life insurance companies | |||||
Premiums earned: | |||||
Direct | $ 5,240,000 | 4,070,000 | $ 4,164,000 | ||
Ceded | (756,000) | (661,000) | (620,000) | ||
Net | 4,484,000 | 3,409,000 | 3,544,000 | ||
Life insurance companies | Long-duration insurance in force | |||||
Premiums earned: | |||||
Direct | 5,234,000 | 4,059,000 | 4,155,000 | ||
Ceded | (756,000) | (661,000) | (620,000) | ||
Net | 4,478,000 | 3,398,000 | 3,535,000 | ||
Letters of credit | |||||
Syndicated letter of credit facility outstanding related to long-duration intercompany reinsurance transactions | 0 | ||||
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions | 0 | ||||
Letter of credit outstanding | 450,000 | ||||
Life insurance companies | Divested Businesses | |||||
Premiums earned: | |||||
Direct | 6,000 | 11,000 | 9,000 | ||
Ceded | 0 | 0 | 0 | ||
Net | $ 6,000 | $ 11,000 | $ 9,000 |
REINSURANCE (Details - Reinsura
REINSURANCE (Details - Reinsurance Security) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Reinsurance Security | |||
Reinsurance assets | $ 18,356 | $ 19,676 | |
Secured | Reinsurer Concentration Risk [Member] | |||
Reinsurance Security | |||
Reinsurance assets | 6,500 | 6,200 | $ 6,000 |
Unsecured | Reinsurer Concentration Risk [Member] | |||
Reinsurance Security | |||
Reinsurance assets | $ 3,700 | $ 3,300 | $ 3,300 |
DEFERRED POLICY ACQUISITION 106
DEFERRED POLICY ACQUISITION COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Rollforward of deferred policy acquisition costs | |||
Amortization expense | $ (5,236) | $ (5,330) | $ (5,157) |
Balance, end of year | 11,115 | 9,827 | 9,436 |
Value of business acquired | |||
Amortization of VOBA | 64 | 17 | 23 |
Unamortized balance of VOBA | $ 453 | 510 | 373 |
Percentage of unamortized balance of VOBA expected to be amortized in the next five years | |||
Year one (as a percent) | 8.40% | ||
Year two (as a percent) | 7.60% | ||
Year three (as a percent) | 7.10% | ||
Year four (as a percent) | 6.90% | ||
Year five (as a percent) | 6.50% | ||
Years after five year (as a percent) | 63.50% | ||
Divested Businesses | |||
Rollforward of deferred policy acquisition costs | |||
Increase (decrease) in deferred policy acquisition costs due to net unrealized gains and losses on available for sale securities | 0 | ||
Non-life insurance companies | |||
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year before consolidation and eliminations | $ 2,551 | 2,493 | 2,342 |
Acquisition costs deferred | 4,537 | 4,805 | 4,803 |
Amortization expense | (4,313) | (4,599) | (4,481) |
Other | (144) | (148) | (171) |
Balance, end of year before consolidation and eliminations | 2,631 | 2,551 | 2,493 |
Life insurance companies | |||
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year before consolidation and eliminations | 7,258 | 6,920 | 5,815 |
Acquisition costs deferred | 1,288 | 1,114 | 1,034 |
Amortization expense | (916) | (727) | (674) |
Change in net unrealized gains (losses) on securities | 848 | (360) | 784 |
Increase (decrease) due to foreign exchange | (34) | (32) | (39) |
Other | 23 | 343 | 0 |
Balance, end of year before consolidation and eliminations | 8,467 | 7,258 | 6,920 |
Consolidation and Eliminations | |||
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year before consolidation and eliminations | 18 | 23 | |
Balance, end of year before consolidation and eliminations | $ 17 | $ 18 | $ 23 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Bonds available for sale | $ 248,245 | $ 259,859 |
Other bond securities | 16,782 | 19,712 |
Mortgage and other loans receivable | 29,565 | 24,990 |
Other invested assets | 29,794 | 34,518 |
Liabilities: | ||
Long-term debt (portion measured at fair value: 2015 - $3,670; 2014 - $5,466) | 29,350 | 31,217 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 29,794 | 34,518 |
Real Estate and Investment Funds | ||
Liabilities: | ||
Off-balance sheet exposure | 131.2 | 56.4 |
Structured Investment Vehicles | Minimum | ||
Assets: | ||
Total assets | 0 | 0 |
Consolidated VIE | ||
Assets: | ||
Bonds available for sale | 10,324 | 11,494 |
Other bond securities | 6,167 | 7,906 |
Mortgage and other loans receivable | 2,093 | 2,560 |
Other invested assets | 3,598 | 2,941 |
Other assets | 1,924 | 1,752 |
Total assets | 24,106 | 26,653 |
Liabilities: | ||
Long-term debt (portion measured at fair value: 2015 - $3,670; 2014 - $5,466) | 2,597 | 1,697 |
Other liabilities | 556 | 446 |
Total liabilities | 3,153 | 2,143 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 3,598 | 2,941 |
Consolidated VIE | Real Estate and Investment Funds | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 0 | 0 |
Mortgage and other loans receivable | 1 | 0 |
Other invested assets | 489 | 577 |
Other assets | 29 | 40 |
Total assets | 519 | 617 |
Liabilities: | ||
Long-term debt (portion measured at fair value: 2015 - $3,670; 2014 - $5,466) | 0 | 69 |
Other liabilities | 34 | 32 |
Total liabilities | 34 | 101 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 489 | 577 |
Consolidated VIE | Securitization Vehicles | ||
Assets: | ||
Bonds available for sale | 10,309 | 11,459 |
Other bond securities | 5,756 | 7,251 |
Mortgage and other loans receivable | 1,960 | 2,398 |
Other invested assets | 477 | 651 |
Other assets | 1,349 | 1,447 |
Total assets | 19,851 | 23,206 |
Liabilities: | ||
Long-term debt (portion measured at fair value: 2015 - $3,670; 2014 - $5,466) | 1,025 | 1,370 |
Other liabilities | 236 | 276 |
Total liabilities | 1,261 | 1,646 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 477 | 651 |
Consolidated VIE | Structured Investment Vehicles | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 387 | 615 |
Mortgage and other loans receivable | 0 | 0 |
Other invested assets | 0 | 0 |
Other assets | 94 | 140 |
Total assets | 481 | 755 |
Liabilities: | ||
Long-term debt (portion measured at fair value: 2015 - $3,670; 2014 - $5,466) | 53 | 52 |
Other liabilities | 1 | 0 |
Total liabilities | 54 | 52 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 0 | 0 |
Consolidated VIE | Affordable Housing Partnerships | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 0 | 0 |
Mortgage and other loans receivable | 0 | 0 |
Other invested assets | 2,608 | 1,684 |
Other assets | 293 | 49 |
Total assets | 2,901 | 1,733 |
Liabilities: | ||
Long-term debt (portion measured at fair value: 2015 - $3,670; 2014 - $5,466) | 1,513 | 199 |
Other liabilities | 214 | 101 |
Total liabilities | 1,727 | 300 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 2,608 | 1,684 |
Consolidated VIE | Other | ||
Assets: | ||
Bonds available for sale | 15 | 35 |
Other bond securities | 24 | 40 |
Mortgage and other loans receivable | 132 | 162 |
Other invested assets | 24 | 29 |
Other assets | 159 | 76 |
Total assets | 354 | 342 |
Liabilities: | ||
Long-term debt (portion measured at fair value: 2015 - $3,670; 2014 - $5,466) | 6 | 7 |
Other liabilities | 71 | 37 |
Total liabilities | 77 | 44 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 24 | 29 |
Unconsolidated VIE | ||
Assets: | ||
Other invested assets | 3.8 | 3.2 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 28,316 | 29,819 |
Maximum Exposure to Loss, On-Balance Sheet | 4,061 | 3,514 |
Maximum Exposure to Loss, Off-Balance Sheet | 1,398 | 1,446 |
Total maximum exposure to loss | 5,459 | 4,960 |
Other invested assets | 3.8 | 3.2 |
Unconsolidated VIE | Real Estate and Investment Funds | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 21,951 | 19,949 |
Maximum Exposure to Loss, On-Balance Sheet | 3,072 | 2,785 |
Maximum Exposure to Loss, Off-Balance Sheet | 398 | 454 |
Total maximum exposure to loss | 3,470 | 3,239 |
Unconsolidated VIE | Affordable Housing Partnerships | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 5,255 | 7,911 |
Maximum Exposure to Loss, On-Balance Sheet | 774 | 425 |
Maximum Exposure to Loss, Off-Balance Sheet | 0 | 0 |
Total maximum exposure to loss | 774 | 425 |
Unconsolidated VIE | Other | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 1,110 | 1,959 |
Maximum Exposure to Loss, On-Balance Sheet | 215 | 304 |
Maximum Exposure to Loss, Off-Balance Sheet | 1,000 | 992 |
Total maximum exposure to loss | 1,215 | 1,296 |
Unconsolidated VIE | Other | As Previously Reported | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Maximum Exposure to Loss, On-Balance Sheet | 32 | |
Maximum Exposure to Loss, Off-Balance Sheet | $ 0 | |
Unconsolidated VIE | Maiden Lane II and III interests | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 0 | |
Maximum Exposure to Loss, On-Balance Sheet | 0 | |
Maximum Exposure to Loss, Off-Balance Sheet | 0 | |
Total maximum exposure to loss | $ 0 |
DERIVATIVES AND HEDGE ACCOUN108
DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | $ 102,768 | $ 123,250 |
Gross Derivative Assets, Fair Value | 4,131 | 4,825 |
Gross Derivative Liabilities, Notional Amount | 82,913 | 64,429 |
Gross Derivative Liabilities, Fair Value | 4,048 | 5,804 |
Derivative assets, Counterparty netting | (1,268) | (2,102) |
Derivative assets, Cash collateral | (1,554) | (1,119) |
Total derivative assets on consolidated balance sheet | 1,309 | 1,604 |
Derivative liabilities, Counterparty netting | (1,268) | (2,102) |
Derivative liabilities, Cash collateral | (760) | (1,429) |
Total derivative liabilities on consolidated balance sheet | 2,020 | 2,273 |
Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Notional Amount | 43,900 | 39,300 |
Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Fair Value | 2,300 | 1,600 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 301 | 155 |
Gross Derivative Assets, Fair Value | 1 | 0 |
Gross Derivative Liabilities, Notional Amount | 725 | 25 |
Gross Derivative Liabilities, Fair Value | 2 | 2 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 2,903 | 611 |
Gross Derivative Assets, Fair Value | 207 | 25 |
Gross Derivative Liabilities, Notional Amount | 914 | 1,794 |
Gross Derivative Liabilities, Fair Value | 56 | 239 |
Derivatives designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 0 | 7 |
Gross Derivative Assets, Fair Value | 0 | 1 |
Gross Derivative Liabilities, Notional Amount | 121 | 104 |
Gross Derivative Liabilities, Fair Value | 23 | 13 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Notional Amount | 2,500 | |
Gross Derivative Liabilities, Fair Value | 7 | |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 45,846 | 65,070 |
Gross Derivative Assets, Fair Value | 3,161 | 3,743 |
Gross Derivative Liabilities, Notional Amount | 65,733 | 45,104 |
Gross Derivative Liabilities, Fair Value | 2,197 | 3,131 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 9,472 | 13,667 |
Gross Derivative Assets, Fair Value | 559 | 815 |
Gross Derivative Liabilities, Notional Amount | 8,900 | 8,516 |
Gross Derivative Liabilities, Fair Value | 1,148 | 1,251 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 6,656 | 7,565 |
Gross Derivative Assets, Fair Value | 177 | 206 |
Gross Derivative Liabilities, Notional Amount | 5,028 | 3,049 |
Gross Derivative Liabilities, Fair Value | 45 | 90 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 0 | 15 |
Gross Derivative Assets, Fair Value | 0 | 0 |
Gross Derivative Liabilities, Notional Amount | 0 | 11 |
Gross Derivative Liabilities, Fair Value | 0 | 6 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 4 | 5 |
Gross Derivative Assets, Fair Value | 3 | 4 |
Gross Derivative Liabilities, Notional Amount | 1,289 | 5,288 |
Gross Derivative Liabilities, Fair Value | 508 | 982 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 37,586 | 36,155 |
Gross Derivative Assets, Fair Value | 23 | 31 |
Gross Derivative Liabilities, Notional Amount | 203 | 538 |
Gross Derivative Liabilities, Fair Value | 69 | 90 |
Derivatives not designated as hedging instruments | Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 0 | 0 |
Gross Derivative Assets, Fair Value | 0 | 0 |
Gross Derivative Liabilities, Notional Amount | 1,100 | 2,600 |
Gross Derivative Liabilities, Fair Value | $ 483 | $ 947 |
DERIVATIVES AND HEDGE ACCOUN109
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Derivative Liabilities, Notional Amount | $ 82,913 | $ 64,429 |
Derivative Liabilities, Fair Value | 4,048 | 5,804 |
Collateral | ||
Collateral posted to third parties for derivative transactions | 3,000 | 3,300 |
Collateral obtained from third parties for derivative transactions | $ 1,600 | $ 1,300 |
DERIVATIVES AND HEDGE ACCOUN110
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $ 90 | $ 156 | $ (38) |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Net realized capital gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 1 | (5) |
Gain (loss) recognized in earnings on hedged items | 1 | (2) | 5 |
Gain (loss) recognized in earnings for ineffective portion | 1 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | (1) | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Interest credited to policyholder account balances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 0 | (1) | (2) |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | (1) | (2) |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 9 | 43 | 99 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 9 | 43 | 99 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Loss on extinguishment of debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | |
Gain (loss) recognized in earnings on hedged items | 14 | 164 | |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 14 | 164 | |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Net realized capital gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 202 | (129) | (187) |
Gain (loss) recognized in earnings on hedged items | (167) | 147 | 204 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 32 | 8 | 17 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 3 | 10 | 0 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Interest credited to policyholder account balances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | |
Gain (loss) recognized in earnings on hedged items | (1) | (3) | |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | (1) | (3) | |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | |
Gain (loss) recognized in earnings on hedged items | 17 | 23 | |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 17 | 23 | |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Policyholder benefits and claims incurred | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | ||
Gain (loss) recognized in earnings on hedged items | 0 | ||
Gain (loss) recognized in earnings for ineffective portion | 0 | ||
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | ||
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | ||
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Loss on extinguishment of debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | |
Gain (loss) recognized in earnings on hedged items | 17 | 2 | |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 17 | 2 | |
Derivatives designated as hedging instruments | Equity contracts | Fair value hedging | Net realized capital gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (45) | (23) | |
Gain (loss) recognized in earnings on hedged items | 45 | 22 | |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | (1) | |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 0 | |
Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 876 | 499 | 1,022 |
Derivatives not designated as hedging instruments | Net realized capital gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 365 | (219) | 257 |
Derivatives not designated as hedging instruments | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 26 | 102 | 28 |
Derivatives not designated as hedging instruments | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 401 | 599 | 750 |
Derivatives not designated as hedging instruments | Policy fees | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 78 | 0 | 0 |
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 6 | 17 | (13) |
Derivatives not designated as hedging instruments | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 339 | 851 | (259) |
Derivatives not designated as hedging instruments | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 416 | 309 | 41 |
Derivatives not designated as hedging instruments | Equity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (182) | (274) | (507) |
Derivatives not designated as hedging instruments | Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (1) | (1) | (4) |
Derivatives not designated as hedging instruments | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 186 | 263 | 567 |
Derivatives not designated as hedging instruments | Other contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 69 | 192 | 85 |
Derivatives not designated as hedging instruments | Embedded derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | $ 49 | $ (841) | $ 1,099 |
DERIVATIVES AND HEDGE ACCOUN111
DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Credit Derivatives [Line Items] | ||
Collateral posted | $ 3,000 | $ 3,300 |
Obligation to make payments on embedded credit derivatives | 0 | |
Fair value of hybrid securities | 5,700 | 6,100 |
Par value of hybrid securities | 11,200 | 12,300 |
Credit Risk Related Contingent Features [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral posted | 2,100 | 2,700 |
Aggregate fair value of net liability position | 2,000 | $ 2,500 |
Credit Risk Related Contingent Features [Member] | Standard & Poor's, BBB Rating | Moody's, Baa2 Rating | ||
Credit Derivatives [Line Items] | ||
Additional Collateral Aggregate Fair Value | 44 | |
Credit Risk Related Contingent Features [Member] | Standard & Poor's, BBB- Rating | Moody's, Baa3 Rating [Member] | ||
Credit Derivatives [Line Items] | ||
Additional Collateral Aggregate Fair Value | $ 95 | |
Global Capital Markets (GCM) derivatives | Super Senior CDS | Arbitrage | Multi-sector CDOs | ||
Credit Derivatives [Line Items] | ||
Derivative weighted average maturity | 6 years |
GOODWILL (Details)
GOODWILL (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Goodwill Disclosure | |||
Number of steps involved in process of impairment test | item | 2 | ||
Reportable Segments | |||
Goodwill | |||
Goodwill - gross | $ 4,931 | $ 4,952 | $ 4,946 |
Accumulated impairments | 3,477 | 3,477 | 3,477 |
Net goodwill | 1,454 | 1,475 | 1,469 |
Increase (decrease) due to: | |||
Acquisition | 208 | 28 | |
Other | (49) | (49) | 6 |
Goodwill - gross | 5,090 | 4,931 | 4,952 |
Accumulated impairments | 3,477 | 3,477 | 3,477 |
Net goodwill | 1,613 | 1,454 | 1,475 |
Reportable Segments | Commercial | |||
Goodwill | |||
Goodwill - gross | 2,401 | 2,450 | 2,444 |
Accumulated impairments | 1,266 | 1,266 | 1,266 |
Net goodwill | 1,135 | 1,184 | 1,178 |
Increase (decrease) due to: | |||
Acquisition | 96 | 0 | |
Other | (50) | (49) | 6 |
Goodwill - gross | 2,447 | 2,401 | 2,450 |
Accumulated impairments | 1,266 | 1,266 | 1,266 |
Net goodwill | 1,181 | 1,135 | 1,184 |
Reportable Segments | Consumer | |||
Goodwill | |||
Goodwill - gross | 2,530 | 2,502 | 2,502 |
Accumulated impairments | 2,211 | 2,211 | 2,211 |
Net goodwill | 319 | 291 | 291 |
Increase (decrease) due to: | |||
Acquisition | 82 | 28 | |
Other | 1 | 0 | 0 |
Goodwill - gross | 2,613 | 2,530 | 2,502 |
Accumulated impairments | 2,211 | 2,211 | 2,211 |
Net goodwill | 402 | 319 | 291 |
Other | |||
Goodwill | |||
Goodwill - gross | 0 | 0 | 0 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 0 | 0 | 0 |
Increase (decrease) due to: | |||
Acquisition | 30 | 0 | |
Other | 0 | 0 | 0 |
Goodwill - gross | 30 | 0 | 0 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | $ 30 | $ 0 | $ 0 |
INSURANCE LIABILITIES (Details
INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | ||||||||||
Gross loss reserves before reinsurance and discount, net of contractual deductible recoverable amounts due from policyholders | $ 12,600 | $ 12,400 | ||||||||
Collateral held for deductible recoverable amounts | 9,600 | 9,400 | ||||||||
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | ||||||||||
Liability for unpaid claims and claims adjustment expense, balance at the beginning of the year | $ 77,260 | $ 77,260 | $ 81,547 | $ 87,991 | ||||||
Reinsurance recoverable, balance at the beginning of the year | (15,648) | (15,648) | (17,231) | (19,209) | ||||||
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | 61,612 | 61,612 | 64,316 | 68,782 | ||||||
Foreign exchange effect | (1,429) | (1,061) | (617) | |||||||
Dispositions | 0 | 0 | (79) | |||||||
Changes in net loss reserves due to retroactive asbestos reinsurance transaction | 20 | 141 | $ 22 | |||||||
Total | 60,203 | 63,396 | 68,108 | |||||||
Losses and loss expenses incurred | ||||||||||
Current year | 20,308 | 21,279 | 22,171 | |||||||
Prior years, other than accretion of discount | $ 3,587 | $ 191 | $ 317 | 24 | 4,119 | 703 | 557 | |||
Prior years, accretion of discount | (71) | 478 | (309) | |||||||
Total | 24,356 | 22,460 | 22,419 | |||||||
Losses and loss expenses paid | ||||||||||
Current year | 5,751 | 6,358 | 7,431 | |||||||
Prior years | 18,205 | 17,886 | 18,780 | |||||||
Total | 23,956 | 24,244 | 26,211 | |||||||
Net liability for unpaid claims and claims adjustment expense, balance at the end of the year | 60,603 | 60,603 | 61,612 | 64,316 | ||||||
Reinsurance recoverable, balance at the end of the year | 14,339 | 14,339 | 15,648 | 17,231 | ||||||
Total, balance at the end of the year | 74,942 | 74,942 | 77,260 | 81,547 | ||||||
Net Liability for unpaid loss and loss adjustment expenses | 60,603 | 61,612 | 61,612 | 64,316 | 68,782 | 60,603 | 61,612 | 64,316 | ||
Loss sensitive premium adjustment | (49) | 105 | 89 | |||||||
NICO [Member] | ||||||||||
Losses and loss expenses paid | ||||||||||
Net of reinsurance amount reflecting cession | 1,800 | 1,500 | $ 1,600 | |||||||
Aggregate Limit, retroactive reinsurance agreement | 3,500 | |||||||||
Reinsurance, additional recoveries | 233 | 72 | ||||||||
Excess Casualty | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 1,500 | (144) | ||||||||
Financial Lines - U.S. and Canada | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 579 | |||||||||
Financial Lines - International | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 182 | |||||||||
Primary casualty | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 1,100 | 550 | 498 | |||||||
Workers Compensation Policies, Risk sharing features | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 540 | |||||||||
Primary General Liability | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 146 | |||||||||
Primary Auto Liability | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 144 | |||||||||
Workers Compensation coverage sold to government | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 100 | |||||||||
Claims Handling | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 100 | |||||||||
Healthcare | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 109 | (54) | ||||||||
Run-off Insurance Lines | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 727 | |||||||||
Other Runoff | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 272 | |||||||||
Asbestos and Environmental (1986 & Prior) | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 281 | 124 | $ 238 | |||||||
Asbestos | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 164 | |||||||||
Environmental | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | 117 | |||||||||
Natural Catastrophes | ||||||||||
Losses and loss expenses incurred | ||||||||||
Prior years, other than accretion of discount | (102) | |||||||||
Asbestos and Environmental | ||||||||||
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | ||||||||||
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | 573 | 573 | ||||||||
Losses and loss expenses paid | ||||||||||
Net liability for unpaid claims and claims adjustment expense, balance at the end of the year | 722 | 722 | 573 | |||||||
Net Liability for unpaid loss and loss adjustment expenses | $ 722 | $ 573 | $ 573 | $ 573 | $ 722 | $ 573 |
INSURANCE LIABILITIES (Detai114
INSURANCE LIABILITIES (Details - Discounting of Reserves) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Discounting of Reserves [Line Items] | ||
Net loss reserve discount | $ 3,100 | $ 3,100 |
Tabular discount rate | 3.50% | |
Property Casualty | ||
Discounting of Reserves [Line Items] | ||
Discount for workers' compensation | 853 | $ 853 |
Discount for workers' compensation | 2,300 | 2,300 |
Discount for asbestos | $ 7 | $ 7 |
New York | ||
Discounting of Reserves [Line Items] | ||
Discount rate | 5.00% |
INSURANCE LIABILITIES (Detai115
INSURANCE LIABILITIES (Details - Future Policy Benefits) - Life | 12 Months Ended |
Dec. 31, 2015 | |
Assumptions for liability for future life policy benefits | |
Interest rates (exclusive of immediate/terminal funding annuities), low end of range (as a percent) | 3.00% |
Interest rates (exclusive of immediate/terminal funding annuities), high end of range (as a percent) | 14.00% |
INSURANCE LIABILITIES (Detai116
INSURANCE LIABILITIES (Details - Policyholder contract deposits) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 127,588 | $ 124,613 |
Assumptions for liability for policyholder contract deposits | ||
Interest rates credited on deferred annuities, low end of range (as a percent) | 0.20% | |
Interest rates credited on deferred annuities, high end of range (as a percent) | 9.00% | |
Life | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 14,028 | 13,717 |
Assumptions for liability for policyholder contract deposits | ||
Percentage of gross insurance in force | 2.20% | |
Percentage of gross premiums and other consideration | 2.40% | |
Fixed Annuities | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 52,397 | 53,370 |
Retirement Income Solutions | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 13,927 | 10,040 |
Group Retirement | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 37,865 | 37,693 |
Institutional Markets | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 9,371 | $ 9,793 |
VARIABLE LIFE AND ANNUITY CO117
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - Annuity contracts with guarantees were invested in separate account investment options) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $ 72,220 | $ 71,528 |
Equity Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 39,284 | 40,811 |
Bonds Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 7,261 | 7,566 |
Balanced Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 24,849 | 22,354 |
Money Market Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $ 826 | $ 797 |
VARIABLE LIFE AND ANNUITY CO118
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - GMDB, GMIB, GMWB and GMAV) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | $ 4,048 | $ 5,804 | |
Embedded derivatives | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 2,300 | 1,600 | |
Guaranteed minimum death benefits (GMDB) and Guaranteed minimum income benefits (GMIB) | |||
Changes in GMDB and GMIB liabilities for guarantees on variable contracts reflected in the general account | |||
Balance at the beginning of the period | 420 | 394 | $ 413 |
Reserve increase | 127 | 93 | 32 |
Benefits paid | (56) | (67) | (51) |
Balance at the end of the period | 491 | 420 | $ 394 |
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 38,000 | 35,000 | |
Net amount at risk | 640 | 414 | |
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) | Embedded derivatives | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 1,200 | 957 | |
Variable contract, net deposits plus a minimum return | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 87 | 85 | |
Net amount at risk | $ 2 | $ 1 | |
Average attained age of contract holders by product | 63 years | 62 years | |
Variable contract, net deposits plus a minimum return | Guaranteed minimum death benefits (GMDB) | Minimum | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 0.00% | 0.00% | |
Variable annuity contract, highest contract value attained | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | $ 16 | $ 17 | |
Net amount at risk | $ 1 | $ 1 | |
Average attained age of contract holders by product | 69 years | 68 years | |
Variable annuity contract, highest contract value attained | Guaranteed minimum death benefits (GMDB) | Maximum | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 4.50% | 5.00% |
DEBT (Details - Total debt outs
DEBT (Details - Total debt outstanding) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 6.50% | ||
Balance at the end of the period | $ 29,350 | $ 31,217 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 29,350 | 31,217 | |
2,016 | 1,619 | ||
2,017 | 1,171 | ||
2,018 | 2,039 | ||
2,019 | 1,195 | ||
2,020 | 1,386 | ||
Thereafter | 16,953 | ||
Borrowings of consolidated investments | 5,000 | ||
Long-term debt excluding borrowings of consolidated investments | 24,363 | ||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 108 | ||
Collateral posted | 3,000 | 3,300 | |
Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 0 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 0 | ||
Collateralized Loans and Mortgages Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 108 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 108 | ||
AIGLH | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 706 | 820 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 706 | 820 | |
AIG | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 19,876 | 21,190 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 19,876 | 21,190 | |
AIG | Series AIGFP | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 31 | 33 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 31 | 33 | |
AIG | MIP | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 1,372 | 2,870 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 1,372 | 2,870 | |
Other Subsidiaries | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 8,768 | 9,207 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 8,768 | 9,207 | |
Notes and bonds payable | AIG | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 17,136 | 15,821 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 17,136 | 15,821 | |
Junior subordinated debt | AIG | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 1,337 | 2,466 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | $ 1,337 | 2,466 | |
Other subsidiaries notes, bonds, loans and mortgages payable | |||
Debt Instrument [Line Items] | |||
Interest rates, high end of range (as a percent) | 0.00% | ||
Interest rate (as a percent) | 0.06% | ||
Balance at the end of the period | $ 2 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 2 | ||
2,016 | 0 | ||
2,017 | 2 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
Thereafter | $ 0 | ||
Debt Instrument, Maturity, End Year | 2,017 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | Other Subsidiaries | |||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | $ 2 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | Other Subsidiaries | Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 0 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 0 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | Other Subsidiaries | Collateralized Loans and Mortgages Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 2 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 2 | ||
Debt issued or guaranteed | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 24,361 | 27,476 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 24,361 | 27,476 | |
2,016 | 1,619 | ||
2,017 | 1,169 | ||
2,018 | 2,039 | ||
2,019 | 1,195 | ||
2,020 | 1,386 | ||
Thereafter | 16,953 | ||
Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 19,285 | 19,106 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 19,285 | 19,106 | |
2,016 | 992 | ||
2,017 | 192 | ||
2,018 | 1,106 | ||
2,019 | 1,105 | ||
2,020 | 1,345 | ||
Thereafter | 14,545 | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG | |||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 106 | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG | Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 0 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 0 | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG | Collateralized Loans and Mortgages Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 106 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | $ 106 | ||
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 2.30% | ||
Interest rates, high end of range (as a percent) | 8.13% | ||
Balance at the end of the period | $ 17,136 | 15,570 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 17,136 | 15,570 | |
2,016 | 992 | ||
2,017 | 192 | ||
2,018 | 1,106 | ||
2,019 | 999 | ||
2,020 | 1,345 | ||
Thereafter | $ 12,502 | ||
Debt Instrument, Maturity, Start year | 2,016 | ||
Debt Instrument, Maturity, End Year | 2,097 | ||
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | AIGLH | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 6.63% | ||
Interest rates, high end of range (as a percent) | 7.50% | ||
Balance at the end of the period | $ 284 | 284 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 284 | 284 | |
Thereafter | $ 284 | ||
Debt Instrument, Maturity, Start year | 2,025 | ||
Debt Instrument, Maturity, End Year | 2,029 | ||
Uncollateralized Notes/Bonds/Loans Payable | Subordinated debt | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 2.38% | ||
Balance at the end of the period | $ 0 | 250 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 0 | 250 | |
2,016 | 0 | ||
2,017 | $ 0 | ||
Debt Instrument, Maturity, End Year | 2,015 | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 4.88% | ||
Interest rates, high end of range (as a percent) | 8.63% | ||
Balance at the end of the period | $ 1,337 | 2,466 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 1,337 | 2,466 | |
Thereafter | $ 1,337 | ||
Debt Instrument, Maturity, Start year | 2,037 | ||
Debt Instrument, Maturity, End Year | 2,058 | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | AIGLH | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 7.57% | ||
Interest rates, high end of range (as a percent) | 8.50% | ||
Balance at the end of the period | $ 422 | 536 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 422 | 536 | |
Thereafter | $ 422 | ||
Debt Instrument, Maturity, Start year | 2,030 | ||
Debt Instrument, Maturity, End Year | 2,046 | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 0.44% | ||
Interest rates, high end of range (as a percent) | 1.25% | ||
Balance at the end of the period | $ 106 | 0 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 106 | 0 | |
2,019 | $ 106 | ||
Debt Instrument, Maturity, Start year | 2,016 | ||
Debt Instrument, Maturity, End Year | 2,019 | ||
Borrowings supported by assets | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 5,076 | 8,370 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 5,076 | 8,370 | |
2,016 | 627 | ||
2,017 | 977 | ||
2,018 | 933 | ||
2,019 | 90 | ||
2,020 | 41 | ||
Thereafter | 2,408 | ||
Collateral posted | $ 2,400 | 3,500 | |
Borrowings supported by assets | Notes and bonds payable | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 0.12% | ||
Interest rates, high end of range (as a percent) | 10.37% | ||
Balance at the end of the period | $ 394 | 818 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 394 | 818 | |
2,016 | 192 | ||
2,017 | 10 | ||
2,018 | 123 | ||
2,019 | 0 | ||
2,020 | 0 | ||
Thereafter | $ 69 | ||
Debt Instrument, Maturity, Start year | 2,016 | ||
Debt Instrument, Maturity, End Year | 2,047 | ||
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 0.16% | ||
Interest rates, high end of range (as a percent) | 7.50% | ||
Balance at the end of the period | $ 34 | 34 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 34 | 34 | |
2,016 | 0 | ||
2,017 | 10 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
Thereafter | $ 24 | ||
Debt Instrument, Maturity, Start year | 2,017 | ||
Debt Instrument, Maturity, End Year | 2,047 | ||
Borrowings supported by assets | MIP notes payable | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 2.28% | ||
Interest rates, high end of range (as a percent) | 8.59% | ||
Balance at the end of the period | $ 1,372 | 2,870 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 1,372 | 2,870 | |
2,016 | 245 | ||
2,017 | 781 | ||
2,018 | 346 | ||
2,019 | 0 | ||
2,020 | 0 | ||
Thereafter | $ 0 | ||
Debt Instrument, Maturity, Start year | 2,016 | ||
Debt Instrument, Maturity, End Year | 2,018 | ||
Borrowings supported by assets | GIAs | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 0.02% | ||
Interest rates, high end of range (as a percent) | 7.62% | ||
Balance at the end of the period | $ 3,276 | 4,648 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 3,276 | 4,648 | |
2,016 | 190 | ||
2,017 | 176 | ||
2,018 | 464 | ||
2,019 | 90 | ||
2,020 | 41 | ||
Thereafter | $ 2,315 | ||
Debt Instrument, Maturity, Start year | 2,016 | ||
Debt Instrument, Maturity, End Year | 2,047 | ||
Debt not guaranteed | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 4,989 | 3,741 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 4,989 | 3,741 | |
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 2 | 58 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | $ 2 | 58 | |
Debt not guaranteed | Debt of consolidated investments | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 0.00% | ||
Interest rates, high end of range (as a percent) | 6.60% | ||
Balance at the end of the period | $ 4,987 | 3,683 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | $ 4,987 | 3,683 | |
Debt Instrument, Maturity, Start year | 2,016 | ||
Debt Instrument, Maturity, End Year | 2,062 | ||
Debt not guaranteed | Debt of consolidated investments | Real Estate and Investment Funds [Member] | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 2,400 | 2,100 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 2,400 | 2,100 | |
Debt not guaranteed | Debt of consolidated investments | Affordable Housing Partnership [Member] | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 2,200 | 853 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 2,200 | 853 | |
Debt not guaranteed | Debt of consolidated investments | Other | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 359 | 728 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | $ 359 | $ 728 |
DEBT (Details - Junior subordin
DEBT (Details - Junior subordinated debentures) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 6.50% | |||
Aggregate principal amount of debt redeemed | $ 9,805 | $ 16,160 | $ 14,197 | |
Series A-2 and Series A-8 Junior Subordinated Debentures | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 5.75% | |||
Series A-3 Junior Subordinated Debentures | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 4.875% | |||
Series A-6 Junior Subordinated Debentures | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 8.175% | |||
Aggregate principal amount of debt redeemed | $ 588 | |||
Subordinated Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 2.375% | |||
Period prior to the date of repayment, redemption or purchase within which a specified amount of net cash proceeds is to be received | 360 days |
DEBT (Details - AIGLH Junior su
DEBT (Details - AIGLH Junior subordinated debentures) - USD ($) $ in Millions | Jun. 30, 2015 | Jul. 11, 2013 |
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 6.50% | |
Borrowings supported by assets | 8.5 percent Junior subordinated debentures due July 2030 | AIGLH | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures liquidation value | $ 116 | |
Borrowings supported by assets | 8.125 percent Junior subordinated debentures due March 2046 | AIGLH | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures liquidation value | 227 | |
Borrowings supported by assets | 7.57 percent Junior subordinated debentures due December 2045 | AIGLH | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures liquidation value | $ 79 |
DEBT (Details - Credit faciliti
DEBT (Details - Credit facilities) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Schedule of Debt Instruments [Line Items] | |
Letter of credit outstanding | $ 208 |
Contingent liquidity facility | $ 500 |
5-Year Syndicated Facility | |
Schedule of Debt Instruments [Line Items] | |
Line of credit facilities, term of credit agreements | 5 years |
Maximum borrowing capacity | $ 4,500 |
Remaining borrowing capacity | 4,500 |
Increased commitment to Five-Year Facility | $ 500 |
Debt Instrument, Maturity Date | November 2,020 |
Debt Instrument Effective Date | Nov. 5, 2015 |
CONTINGENCIES, COMMITMENTS A123
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Loss Contingencies) $ in Millions | Feb. 12, 2015complaint | Jan. 06, 2015USD ($) | Oct. 22, 2014USD ($) | Nov. 15, 2013item | Mar. 11, 2013class | Nov. 29, 2012USD ($)item | Nov. 21, 2011 | Dec. 17, 2010USD ($)item | Feb. 25, 2010individual | Feb. 29, 2016USD ($) | Mar. 31, 2014complaint | Jan. 15, 2009complaint | Dec. 31, 2015USD ($)complaintmultiple | Dec. 31, 2014USD ($) |
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||||||||
Number of separate proceedings filed | complaint | 2 | |||||||||||||
Number of funds that are plaintiffs in similar actions | complaint | 11 | |||||||||||||
Number of states participating in the accident and health products examination | item | 50 | |||||||||||||
Civil penalty payable | $ 100 | |||||||||||||
Number of actions brought against AIG | complaint | 9 | |||||||||||||
Increase in the estimated reserves for incurred but not reported death claims | $ 25 | $ 507 | ||||||||||||
Portion of payments which represented fines and penalties | 46.5 | |||||||||||||
Payment released workers compensation escrow accounts in satisfaction of fines, penalties and premium tax obligations | $ 150 | |||||||||||||
Number of cases that have been settled | complaint | 7 | |||||||||||||
Chartis U.S. | ||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||||||||
Settlement agreement, number of jurisdictions | item | 50 | |||||||||||||
Civil penalty paid | $ 50 | |||||||||||||
Consolidated 2008 Securities Litigation | ||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||||||||
Number of separate proceedings filed | complaint | 8 | |||||||||||||
Payment for legal settlement | $ 960 | |||||||||||||
ERISA Litigation II | ||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||||||||
Cash settlement Amount | $ 40 | |||||||||||||
Starr International Litigation | ||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||||||||
Number of separate proceedings filed | class | 2 | |||||||||||||
Percentage of ownership in AIG received by Department of the Treasury | 80.00% | |||||||||||||
Number of shareholders who have submitted timely and valid requests to opt into the class | item | 286,908 | |||||||||||||
Cash settlement Amount | $ 40 | |||||||||||||
False Claims Act complaint | ||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||||||||
Number of individuals (Relators) seeking to assert claims | individual | 2 | |||||||||||||
Damages sought, multiple of damages sustained | multiple | 3 | |||||||||||||
Caremark | ||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||||||||
Number of separate proceedings filed | complaint | 2 | |||||||||||||
Damages claimed | $ 1,100 | $ 3,200 | ||||||||||||
Subpoenas from the New York Department of Financial Services (NYDFS) | MetLife Inc. (MetLife) | ||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||||||||
Cash settlement Amount | 50 | |||||||||||||
Subpoenas from the Manhattan District Attorney's Office (NYDA) | MetLife Inc. (MetLife) | ||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||||||||
Cash settlement Amount | $ 10 |
CONTINGENCIES, COMMITMENTS A124
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Long term purchase commitments) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Future minimum lease payments under operating leases | |||
2,016 | $ 304 | ||
2,017 | 234 | ||
2,018 | 168 | ||
2,019 | 126 | ||
2,020 | 93 | ||
Remaining years after 2020 | 210 | ||
Total | 1,135 | ||
Rent expense | 327 | $ 471 | $ 414 |
Other Commitments | |||
Other Commitments | 2,600 | ||
Held for sale | |||
Future minimum lease payments under operating leases | |||
Rent expense | $ 0 | $ 0 | $ 0 |
CONTINGENCIES, COMMITMENTS A125
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Guarantor Obligations [Line Items] | |
Amount outstanding under standby letters of credit at end of period | $ 208 |
ALICO | |
Guarantor Obligations [Line Items] | |
Payments made or placed in escrow accounts at end of period | 0 |
Indemnifications | ALICO | |
Guarantor Obligations [Line Items] | |
Various deductible amounts under indemnifications | $ 0 |
EQUITY (Details - Shares Outsta
EQUITY (Details - Shares Outstanding) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
The following table presents a roll forward of outstanding shares: | |||
Shares, beginning of year | (530,744,521) | ||
Shares, beginning of year | 1,906,671,492 | ||
Shares, beginning of year | 1,375,926,971 | 1,464,063,323 | 1,476,321,935 |
Issuances (in shares) | 371,806 | 41,551 | 58,787 |
Shares repurchased | (182,382,160) | (88,177,903) | (12,317,399) |
Shares, end of period | (712,754,875) | (530,744,521) | |
Shares, end of period | 1,906,671,492 | 1,906,671,492 | |
Shares, end of period | 1,193,916,617 | 1,375,926,971 | 1,464,063,323 |
Common Stock Issued | |||
The following table presents a roll forward of outstanding shares: | |||
Shares, beginning of year | 1,906,671,492 | 1,906,645,689 | 1,906,611,680 |
Issuances (in shares) | 0 | 25,803 | 34,009 |
Shares repurchased | (182,000,000) | ||
Shares, end of period | 1,906,671,492 | 1,906,671,492 | 1,906,645,689 |
Treasury Stock | |||
The following table presents a roll forward of outstanding shares: | |||
Shares, beginning of year | 530,744,521 | 442,582,366 | 430,289,745 |
Issuances (in shares) | 371,806 | (15,748) | (24,778) |
Shares repurchased | (182,382,160) | (88,177,903) | (12,317,399) |
Shares, end of period | 712,754,875 | 530,744,521 | 442,582,366 |
EQUITY (Details - Share repurch
EQUITY (Details - Share repurchases) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Dec. 21, 2015 | Sep. 28, 2015 | Jun. 25, 2015 | Mar. 26, 2015 | Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 16, 2015 |
Rollforward of preferred stock | |||||||||
Dividend paid (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.125 | $ 0.125 | |||||
Common stock authorized to be repurchased | $ 3,300 | $ 4,100 | |||||||
Accelerated Share Repurchase Agreement [Member] | |||||||||
Rollforward of preferred stock | |||||||||
Amount paid to financial institution | $ 3,100 | ||||||||
Common Stock | |||||||||
Rollforward of preferred stock | |||||||||
Aggregate purchase price of repurchased shares | $ 10,700 | $ 4,900 | $ 597 | ||||||
Common Stock | Accelerated Share Repurchase Agreement [Member] | |||||||||
Rollforward of preferred stock | |||||||||
Percentage of share repurchased during share repurchase agreement | 70.00% | ||||||||
Number of shares received from financial institution | 53 | ||||||||
Partial receipt of shares under an ASR agreement | 9.2 | ||||||||
Additional shares received from financial institution | 3,500 |
EQUITY (Details - Rollforward o
EQUITY (Details - Rollforward of Accumulated other comprehensive income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | $ 10,617 | ||
Deferred tax asset (liability) | 1,553 | $ (93) | $ 3,251 |
Other Comprehensive Income (Loss) | (8,086) | 4,257 | (6,237) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment | (1,100) | (832) | (556) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges | 0 | 0 | 0 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment | (123) | 556 | (631) |
Balance, end of period, net of tax | 2,537 | 10,617 | |
Accumulated Other Comprehensive Income | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | 10,617 | 6,360 | 12,574 |
Change in unrealized appreciation (depreciation) of investments | (11,007) | 7,720 | (13,605) |
Change in deferred acquisition costs adjustment and other | 1,119 | (427) | 873 |
Change in future policy benefits | 1,204 | (1,246) | 2,737 |
Changes in foreign currency translation adjustments | (1,129) | (833) | (454) |
Net actuarial gain (loss) | 413 | (815) | 1,012 |
Prior service (cost) credit | (239) | (49) | (51) |
Deferred tax asset (liability) | 1,553 | (93) | 3,251 |
Other Comprehensive Income (Loss) | (8,086) | 4,257 | (6,237) |
Noncontrolling interests | (6) | 0 | (23) |
Balance, end of period, net of tax | 2,537 | 10,617 | 6,360 |
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Recognized | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | 1,043 | 936 | 575 |
Change in unrealized appreciation (depreciation) of investments | (488) | 156 | 464 |
Change in deferred acquisition costs adjustment and other | (146) | 68 | (127) |
Change in future policy benefits | 92 | (133) | 79 |
Deferred tax asset (liability) | 195 | 16 | (55) |
Other Comprehensive Income (Loss) | (347) | 107 | 361 |
Balance, end of period, net of tax | 696 | 1,043 | 936 |
Unrealized Appreciation (Depreciation) of All Other Investments | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | 12,327 | 6,789 | 13,446 |
Change in unrealized appreciation (depreciation) of investments | (10,519) | 7,564 | (14,069) |
Change in deferred acquisition costs adjustment and other | 1,265 | (495) | 1,000 |
Change in future policy benefits | 1,112 | (1,113) | 2,658 |
Deferred tax asset (liability) | 1,380 | (418) | 3,738 |
Other Comprehensive Income (Loss) | (6,762) | 5,538 | (6,673) |
Noncontrolling interests | (1) | (16) | |
Balance, end of period, net of tax | 5,566 | 12,327 | 6,789 |
Foreign Currency Translation Adjustments | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | (1,784) | (952) | (403) |
Changes in foreign currency translation adjustments | (1,129) | (833) | (454) |
Deferred tax asset (liability) | 29 | 1 | (102) |
Other Comprehensive Income (Loss) | (1,100) | (832) | (556) |
Noncontrolling interests | (5) | (7) | |
Balance, end of period, net of tax | (2,879) | (1,784) | (952) |
Retirement Plan Liabilities Adjustment | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | (969) | (413) | (1,044) |
Net actuarial gain (loss) | 413 | (815) | 1,012 |
Prior service (cost) credit | (239) | (49) | (51) |
Deferred tax asset (liability) | (51) | 308 | (330) |
Other Comprehensive Income (Loss) | 123 | (556) | 631 |
Balance, end of period, net of tax | $ (846) | $ (969) | $ (413) |
EQUITY (Details - Other compreh
EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | $ (8,383) | $ 4,908 | $ (8,652) |
Less: Reclassification adjustments included in net income | 1,256 | 558 | 836 |
Total other comprehensive income (loss), before income tax expense (benefit) | (9,639) | 4,350 | (9,488) |
Less: Income tax expense (benefit) | (1,553) | 93 | (3,251) |
Other comprehensive income (loss) | (8,086) | 4,257 | (6,237) |
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Recognized | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | (471) | 119 | 507 |
Less: Reclassification adjustments included in net income | 71 | 28 | 91 |
Total other comprehensive income (loss), before income tax expense (benefit) | (542) | 91 | 416 |
Less: Income tax expense (benefit) | (195) | (16) | 55 |
Other comprehensive income (loss) | (347) | 107 | 361 |
Unrealized Appreciation (Depreciation) of All Other Investments | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | (7,068) | 6,488 | (9,556) |
Less: Reclassification adjustments included in net income | 1,074 | 532 | 855 |
Total other comprehensive income (loss), before income tax expense (benefit) | (8,142) | 5,956 | (10,411) |
Less: Income tax expense (benefit) | (1,380) | 418 | (3,738) |
Other comprehensive income (loss) | (6,762) | 5,538 | (6,673) |
Accumulated Translation Adjustment [Member] | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | (1,129) | (833) | (454) |
Less: Reclassification adjustments included in net income | 0 | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | (1,129) | (833) | (454) |
Less: Income tax expense (benefit) | (29) | (1) | 102 |
Other comprehensive income (loss) | (1,100) | (832) | (556) |
Retirement Plan Liabilities Adjustment | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 285 | (866) | 851 |
Less: Reclassification adjustments included in net income | 111 | (2) | (110) |
Total other comprehensive income (loss), before income tax expense (benefit) | 174 | (864) | 961 |
Less: Income tax expense (benefit) | 51 | (308) | 330 |
Other comprehensive income (loss) | $ 123 | $ (556) | $ 631 |
EQUITY (Details - Reclassificat
EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other realized capital gains | $ 1,367 | $ 956 | $ 2,126 | ||||||||
Amortization of deferred acquisition costs | 5,236 | 5,330 | 5,157 | ||||||||
Policyholder benefits and losses incurred | 31,345 | 28,281 | 29,503 | ||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 1,256 | 558 | 836 | ||||||||
Income from continuing operations before income tax expense (benefit) | $ (2,932) | $ (115) | $ 2,552 | $ 3,776 | $ 729 | $ 3,019 | $ 4,480 | $ 2,273 | 3,281 | 10,501 | 9,368 |
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income from continuing operations before income tax expense (benefit) | 1,256 | 558 | 836 | ||||||||
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 71 | 28 | 91 | ||||||||
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other realized capital gains | (71) | (28) | (91) | ||||||||
Income from continuing operations before income tax expense (benefit) | 71 | 28 | 91 | ||||||||
Unrealized appreciation (depreciation) of all other investments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 1,074 | 532 | 855 | ||||||||
Unrealized appreciation (depreciation) of all other investments | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other realized capital gains | (1,054) | (669) | (2,452) | ||||||||
Amortization of deferred acquisition costs | 3 | (20) | (28) | ||||||||
Policyholder benefits and losses incurred | 17 | (117) | (1,569) | ||||||||
Income from continuing operations before income tax expense (benefit) | 1,074 | 532 | 855 | ||||||||
Change in retirement plan liabilities adjustment | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 111 | (2) | (110) | ||||||||
Change in retirement plan liabilities adjustment | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 111 | (2) | (110) | ||||||||
Accumulated Defined Benefit Plans Adjustment Net Prior Service Cost Credit [Member] | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 214 | 47 | 47 | ||||||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | $ (103) | $ (49) | $ (157) |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator for EPS: | |||||||||||
Income from continuing operations | $ 2,222 | $ 7,574 | $ 9,008 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | $ (8) | $ 34 | $ (9) | $ 9 | $ 20 | $ 9 | $ (37) | $ 3 | 26 | (5) | 7 |
Net income (loss) attributable to AIG from continuing operations | 2,196 | 7,579 | 9,001 | ||||||||
Income (loss) from discontinued operations | $ 0 | $ (17) | $ 16 | $ 1 | $ (35) | $ 2 | $ 30 | $ (47) | 0 | (50) | 84 |
Net income attributable to AIG common shareholders | $ 2,196 | $ 7,529 | $ 9,085 | ||||||||
Denominator for EPS: | |||||||||||
Weighted average shares outstanding - basic | 1,226,880,632 | 1,279,072,748 | 1,329,157,366 | 1,365,951,690 | 1,391,790,420 | 1,419,239,774 | 1,442,397,111 | 1,459,249,393 | 1,299,825,350 | 1,427,959,799 | 1,474,171,690 |
Dilutive shares | 34,639,533 | 19,593,853 | 7,035,107 | ||||||||
Weighted average shares outstanding - diluted | 1,226,880,632 | 1,279,072,748 | 1,365,390,431 | 1,386,263,549 | 1,412,162,456 | 1,442,067,842 | 1,464,676,330 | 1,472,510,813 | 1,334,464,883 | 1,447,553,652 | 1,481,206,797 |
Basic: | |||||||||||
Income from continuing operations | $ (1.5) | $ (0.17) | $ 1.34 | $ 1.81 | $ 0.5 | $ 1.54 | $ 2.11 | $ 1.13 | $ 1.69 | $ 5.31 | $ 6.11 |
Income (loss) from discontinued operations | 0 | (0.01) | 0.01 | 0 | (0.03) | 0 | 0.02 | (0.03) | 0 | (0.04) | 0.05 |
Net income attributable to AIG | 1.69 | 5.27 | 6.16 | ||||||||
Diluted: | |||||||||||
Income from continuing operations | (1.5) | (0.17) | 1.31 | 1.78 | 0.49 | 1.52 | 2.08 | 1.12 | 1.65 | 5.24 | 6.08 |
Income (loss) from discontinued operations | $ 0 | $ (0.01) | $ 0.01 | $ 0 | $ (0.03) | $ 0 | $ 0.02 | $ (0.03) | 0 | (0.04) | 0.05 |
Net Income attributable to AIG | $ 1.65 | $ 5.2 | $ 6.13 | ||||||||
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive | 200,000 | 300,000 | 38,000,000 |
STATUTORY FINANCIAL DATA AND132
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory capital and surplus and net income (loss) | |||
Increase (decrease) in the previously reported amount of statutory net income as a result of the finalization of statutory filings | $ 115 | ||
Increase (decrease) in the previously reported amount of statutory surplus as a result of the finalization of statutory filings | 303 | ||
Subsidiary Dividend Restrictions | |||
Statutory capital and surplus of consolidated insurance subsidiaries companies restricted from transfer to parent | $ 41,600 | ||
Eaglestone | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | 22.8 | ||
Statutory capital and surplus | 1,900 | ||
Aggregate minimum required statutory capital and surplus | 274 | ||
Statutory surplus and net income (loss) | |||
Capital Contribution To Affiliates | $ 150 | ||
New York | |||
Subsidiary Dividend Restrictions | |||
Dividend restrictions, as percentage of statutory policyholders' surplus | 10.00% | ||
Dividend restrictions, as percentage of adjusted net investment income, as defined | 100.00% | ||
Non-life insurance companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | $ 1,723 | 4,517 | $ 12,282 |
Statutory capital and surplus | 35,823 | 39,804 | 0 |
Aggregate minimum required statutory capital and surplus | 14,047 | 15,750 | 0 |
Statutory gains related to legal simplification | 0 | 0 | 8,000 |
Statutory surplus and net income (loss) | |||
Capital Contribution To Affiliates | 2,750 | ||
Non-life insurance companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | 1,202 | 3,265 | 11,440 |
Statutory capital and surplus | 24,358 | 27,621 | 0 |
Aggregate minimum required statutory capital and surplus | 6,493 | 7,540 | 0 |
Non-life insurance companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | 521 | 1,252 | 842 |
Statutory capital and surplus | 11,465 | 12,183 | 0 |
Aggregate minimum required statutory capital and surplus | 7,554 | 8,210 | 0 |
Life insurance companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | 2,656 | 2,856 | 5,038 |
Statutory capital and surplus | 8,709 | 10,316 | 0 |
Aggregate minimum required statutory capital and surplus | 3,703 | 3,720 | 0 |
Statutory surplus and net income (loss) | |||
Permitted practice | 366 | ||
Life insurance companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | 2,672 | 2,865 | 5,047 |
Statutory capital and surplus | 8,287 | 9,879 | 0 |
Aggregate minimum required statutory capital and surplus | 3,658 | 3,674 | 0 |
Life insurance companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | (16) | (9) | (9) |
Statutory capital and surplus | 422 | 437 | 0 |
Aggregate minimum required statutory capital and surplus | $ 45 | $ 46 | $ 0 |
SHARE-BASED AND OTHER COMPEN133
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share based compensation expense) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
SHARE-BASED AND OTHER COMPENSATION PLANS | |||
Share-based compensation expense - pre-tax | $ 365 | $ 349 | $ 457 |
Share-based compensation expense - after tax | 237 | 227 | 297 |
Pre tax share-based compensation expense attributed to unsettled liability-classified awards | $ 19 | $ 86 | $ 315 |
Share price (in dollars per share) | $ 61.97 | $ 56.01 | $ 51.05 |
Vested stock-settled awards issued to retirement eligible employees | $ 147 | $ 120 | $ 101 |
SHARE-BASED AND OTHER COMPEN134
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Employee Plans, Share-settled Awards - assumptions used to estimate the fair value of PSUs) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)itemshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ | $ 365 | $ 349 | $ 457 |
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weight used to calculate performance measure (as a percent) | 75.00% | 25.00% | 50.00% |
Assumptions used to estimate the fair value of PSUs based on AIG's TSR | |||
Expected dividend yield (as a percent) | 1.78% | 1.13% | 0.38% |
Expected volatility (as a percent) | 22.71% | 23.66% | 30.79% |
Risk-free interest rate (as a percent) | 1.01% | 0.76% | 0.50% |
Deferred stock units (DSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted under the plans | 32,342 | 28,477 | 25,735 |
Compensation expense | $ | $ 1.9 | $ 1.5 | $ 1.2 |
2013 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future grant | 45,000,000 | ||
Number of shares reserved for future grants | 45,670,678 | ||
Reduction in the number of shares available for grants | 1 | ||
AIG 2013 Long Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Number of installments | item | 3 | ||
AIG 2013 Long Term Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance period depending on which actual number of awards can be earned | 150.00% | ||
Vesting period, from date of grant | 5 years | ||
AIG 2013 Long Term Incentive Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance period depending on which actual number of awards can be earned | 0.00% | ||
AIG 2013 Long Term Incentive Plan | Vesting on January 1 from the next three years of immediately following the end of the performance period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, from date of grant | 2 years | ||
AIG 2010 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future grant | 60,000,000 | ||
Reduction in the number of shares available for grants | 1 | ||
SICO Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Completion of age of the employee after which the awards can be vested | 65 years | ||
Payments for various benefits provided under the plan | $ | $ 0 |
SHARE-BASED AND OTHER COMPEN135
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share-settled Awards - Outstanding share-settled awards) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |
Unrecognized Compensation Cost | $ | $ 10 |
PSUs | |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |
Unrecognized Compensation Cost | $ | $ 190 |
Weighted-Average Period | 1 year 3 months 14 days |
Expected Period | 4 years |
RSUs | |
Change in number of shares | |
Unvested at the beginning of the period (in shares) | 1,404,645 |
Granted (in shares) | 0 |
Vested (in shares) | (975,715) |
Forfeited (in shares) | (15,972) |
Unvested at the end of the period (in shares) | 412,958 |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |
Unrecognized Compensation Cost | $ | $ 1 |
SICO Plans | |
Change in number of shares | |
Unvested at the end of the period (in shares) | 31,964 |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |
Unrecognized Compensation Cost | $ | $ 10 |
Weighted-Average Period | 5 years 3 months 11 days |
Expected Period | 21 years |
2013 LTI | PSUs | |
Change in number of shares | |
Unvested at the beginning of the period (in shares) | 4,066,182 |
Granted (in shares) | 0 |
Vested (in shares) | (1,593,595) |
Forfeited (in shares) | (222,478) |
Unvested at the end of the period (in shares) | 2,250,109 |
Change in Weighted Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 37.09 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 37.09 |
Forfeited (in dollars per share) | $ / shares | 37.38 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 37.07 |
2014 LTI | PSUs | |
Change in number of shares | |
Unvested at the beginning of the period (in shares) | 4,036,527 |
Granted (in shares) | 10,225 |
Vested (in shares) | (1,270,263) |
Forfeited (in shares) | (217,130) |
Unvested at the end of the period (in shares) | 2,559,359 |
Change in Weighted Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 48.72 |
Granted (in dollars per share) | $ / shares | 52.83 |
Vested (in dollars per share) | $ / shares | 48.56 |
Forfeited (in dollars per share) | $ / shares | 48.78 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 48.82 |
2015 LTI | PSUs | |
Change in number of shares | |
Unvested at the beginning of the period (in shares) | 0 |
Granted (in shares) | 6,445,639 |
Vested (in shares) | (3,212,976) |
Forfeited (in shares) | (185,705) |
Unvested at the end of the period (in shares) | 3,046,958 |
Change in Weighted Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 54.55 |
Vested (in dollars per share) | $ / shares | 54.09 |
Forfeited (in dollars per share) | $ / shares | 53.66 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 55.08 |
SHARE-BASED AND OTHER COMPEN136
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Roll forward of stock option activity) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stock options activity | ||
Exercisable at beginning of year (in shares) | 202,275 | |
Expired (in shares) | (108,763) | |
Exercisable at end of year (in shares) | 93,512 | 202,275 |
Stock options, Weighted Average Exercise Price | ||
Exercisable at beginning of year (in dollars per share) | $ 1,037.74 | |
Expired (in dollars per share) | 1,261.25 | |
Exercisable at end of year (in dollars per share) | $ 777.78 | $ 1,037.74 |
Stock options, Weighted Average Remaining Contractual Life | ||
Options exercisable | 2 years 1 month 28 days | 2 years 2 months 1 day |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Vesting percentage per year | 25.00% | |
Expiration period | 10 years | |
Shares granted under the plans | 0 | |
Shares issued in connection with previous exercises of options with delivery deferred | 0 | |
Aggregate intrinsic value for unexercised options | $ 0 |
SHARE-BASED AND OTHER COMPEN137
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Cash-settled Awards) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)itemshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid to settle awards | $ 147 | $ 120 | $ 101 |
Compensation expense | 365 | 349 | 457 |
Long Term Incentive Plans 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 19 | 57 | 249 |
Percentage of outstanding awards that will vest once the service requirements are satisfied | 100.00% | ||
Contingent performance measurement period | 2 years | ||
Long Term Incentive Plans 2012 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contingent performance target amount | item | 2 | ||
Contingent performance cash portion maximum period | 2 years | ||
Long Term Incentive Plans 2012 [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contingent performance target amount | item | 0 | ||
Stock Salary Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid to settle awards | $ 42 | 89 | 180 |
Compensation expense | $ 2 | $ 7 | $ 73 |
Number of vested but unsettled RSUs | shares | 24,405 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 17 | ||
Number of vested but unsettled RSUs | shares | 412,958 | 1,404,645 | |
SARs | Long Term Incentive Plans 2012 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contingent performance cash portion maximum period | 2 years |
SHARE-BASED AND OTHER COMPEN138
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Cash-settled Awards - Roll forward of SARs and cash-settled RSUs (excluding stock salary) as well as the related expenses) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in SARs (based on target amounts) as well as the related expenses | |||
Compensation expense | $ 365 | $ 349 | $ 457 |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||
Unrecognized Compensation Cost | $ 10 | ||
RSUs | |||
Change in SARs (based on target amounts) as well as the related expenses | |||
Unvested at the beginning of the period (in shares) | 1,404,645 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | (975,715) | ||
Forfeited (in shares) | (15,972) | ||
Unvested at the end of the period (in shares) | 412,958 | 1,404,645 | |
Compensation expense | $ 17 | ||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||
Unrecognized Compensation Cost | $ 1 | ||
Weighted average assumptions used to estimate the fair value | |||
Unvested at the beginning of the period (in shares) | 1,404,645 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | (975,715) | ||
Forfeited (in shares) | (15,972) | ||
Unvested at the end of the period (in shares) | 412,958 | 1,404,645 |
EMPLOYEE BENEFITS (Details - Pe
EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in plan assets: | |||||
AIG contributions | $ 166 | $ 156 | $ 155 | ||
U.S. Pension Plans | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 5,769 | 4,882 | |||
Service cost | 192 | 173 | 205 | ||
Interest cost | 220 | 228 | 201 | ||
Actuarial (gain) loss | (423) | 780 | |||
Plan amendment | (132) | 0 | |||
Curtailments | 0 | 0 | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Projected benefit obligation, end of year | 5,324 | 5,769 | 4,882 | ||
Change in plan assets: | |||||
Fair value of plan assets, beginning of year | 4,111 | 4,024 | |||
Actual return on plan assets, net of expenses | (8) | 266 | |||
AIG contributions | 558 | 115 | |||
Benefits paid: | |||||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Fair value of plan assets, end of year | 4,359 | 4,111 | 4,024 | ||
Funded status, end of year | $ (965) | $ (1,658) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 0 | 0 | |||
Liabilities | (965) | (1,658) | |||
Total amounts recognized | (965) | (1,658) | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | (1,324) | (1,667) | |||
Prior service (cost) credit | 0 | 200 | |||
Total other comprehensive income (loss), before income tax expense (benefit) | (1,324) | (1,467) | |||
Projected benefit obligation | 5,324 | 4,882 | 4,882 | 5,324 | 5,769 |
U.S. Pension Plans | American International Group Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (17) | (15) | |||
U.S. Pension Plans | Plan Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (285) | (279) | |||
U.S. Pension Plans | Non Qualified Pension Plan [Member] | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 325 | ||||
Projected benefit obligation, end of year | 299 | 325 | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Projected benefit obligation | $ 299 | 325 | 299 | 325 | |
U.S. Pension Plans | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Period of service after which plan gets vested | 0 years | ||||
Non U.S. Pension Plans | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | $ 1,099 | 1,072 | |||
Service cost | 43 | 42 | 47 | ||
Interest cost | 25 | 29 | 29 | ||
Actuarial (gain) loss | (16) | 114 | |||
Plan amendment | 24 | (1) | |||
Curtailments | 0 | 0 | |||
Settlements | (15) | (9) | |||
Foreign exchange effect | (67) | (107) | |||
Other | 14 | (2) | |||
Projected benefit obligation, end of year | 1,146 | 1,099 | 1,072 | ||
Acquisitions | 72 | 0 | |||
Change in plan assets: | |||||
Fair value of plan assets, beginning of year | 708 | 738 | |||
Actual return on plan assets, net of expenses | 47 | 71 | |||
AIG contributions | 62 | 67 | |||
Benefits paid: | |||||
Settlements | (15) | (8) | |||
Foreign exchange effect | (44) | (75) | |||
Other | 13 | (46) | |||
Fair value of plan assets, end of year | 773 | 708 | 738 | ||
Acquisitions | 35 | 0 | |||
Funded status, end of year | (373) | (391) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 46 | 46 | |||
Liabilities | (419) | (437) | |||
Total amounts recognized | (373) | (391) | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | (161) | (227) | |||
Prior service (cost) credit | (16) | 11 | |||
Total other comprehensive income (loss), before income tax expense (benefit) | (177) | (216) | |||
Projected benefit obligation | 1,146 | 1,099 | 1,072 | 1,146 | 1,099 |
Non U.S. Pension Plans | American International Group Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (9) | (15) | |||
Non U.S. Pension Plans | Plan Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (24) | (24) | |||
Non U.S. Pension Plans | Non Qualified Pension Plan [Member] | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 295 | ||||
Projected benefit obligation, end of year | 199 | 295 | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Projected benefit obligation | 199 | 295 | 199 | 295 | |
Postretirement Plans | |||||
Change in plan assets: | |||||
AIG contributions | 0 | ||||
U.S. Postretirement Plans | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 229 | 217 | |||
Service cost | 5 | 4 | 5 | ||
Interest cost | 8 | 9 | 8 | ||
Actuarial (gain) loss | (23) | 10 | |||
Plan amendment | 0 | 0 | |||
Curtailments | 0 | 0 | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Projected benefit obligation, end of year | 208 | 229 | 217 | ||
Change in plan assets: | |||||
Fair value of plan assets, beginning of year | 0 | 0 | |||
Actual return on plan assets, net of expenses | 0 | 0 | |||
AIG contributions | 11 | 11 | |||
Benefits paid: | |||||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Fair value of plan assets, end of year | 0 | 0 | 0 | ||
Funded status, end of year | (208) | (229) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 0 | 0 | |||
Liabilities | (208) | (229) | |||
Total amounts recognized | (208) | (229) | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | 13 | (9) | |||
Prior service (cost) credit | 13 | 24 | |||
Total other comprehensive income (loss), before income tax expense (benefit) | 26 | 15 | |||
Projected benefit obligation | 229 | 229 | 217 | 208 | 229 |
U.S. Postretirement Plans | American International Group Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (11) | (11) | |||
U.S. Postretirement Plans | Plan Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | 0 | 0 | |||
Non U.S. Postretirement Plans | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 64 | 52 | |||
Service cost | 3 | 2 | 3 | ||
Interest cost | 3 | 2 | 2 | ||
Actuarial (gain) loss | 9 | 11 | |||
Plan amendment | 0 | 0 | |||
Curtailments | 0 | 0 | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | (3) | (2) | |||
Projected benefit obligation, end of year | 75 | 64 | 52 | ||
Change in plan assets: | |||||
Fair value of plan assets, beginning of year | 0 | 0 | |||
Actual return on plan assets, net of expenses | 0 | 0 | |||
AIG contributions | 1 | 1 | |||
Benefits paid: | |||||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Fair value of plan assets, end of year | 0 | 0 | 0 | ||
Funded status, end of year | (75) | (64) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 0 | 0 | |||
Liabilities | (75) | (64) | |||
Total amounts recognized | (75) | (64) | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | (16) | (8) | |||
Prior service (cost) credit | 0 | 1 | |||
Total other comprehensive income (loss), before income tax expense (benefit) | (16) | (7) | |||
Projected benefit obligation | 64 | 52 | $ 52 | $ 75 | $ 64 |
Non U.S. Postretirement Plans | American International Group Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (1) | (1) | |||
Non U.S. Postretirement Plans | Plan Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFITS (Details - Ac
EMPLOYEE BENEFITS (Details - Accumulated benefit obligations for U.S. and non-U.S. pension benefit plans) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 5,324 | $ 5,601 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 5,324 | 5,769 |
Accumulated benefit obligation | 5,324 | 5,601 |
Fair value of plan assets | 4,359 | 4,111 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 5,324 | 5,769 |
Accumulated benefit obligation | 5,324 | 5,601 |
Fair value of plan assets | 4,359 | 4,111 |
Non U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 1,109 | 1,040 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 999 | 843 |
Accumulated benefit obligation | 896 | 746 |
Fair value of plan assets | 506 | 342 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 912 | 757 |
Accumulated benefit obligation | 889 | 740 |
Fair value of plan assets | $ 497 | $ 329 |
EMPLOYEE BENEFITS (Details - Pr
EMPLOYEE BENEFITS (Details - Projected benefit obligation and the accumulated benefit obligation was in excess of the related plan assets and components of net periodic benefit cost ) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | ||||
Net gain (loss) | $ (9) | |||
Pension expense and effect of change in pension expense due to change in discount rate or expected long-term rate of return | ||||
Increase in expense due to decrease of 100 basis point in discount rate | 71 | |||
Increase in expense due to decrease of 100 basis point in expected long-term rate of return | 45 | |||
Decrease in expense due to increase of 100 basis point in discount rate | 56 | |||
Decrease in expense due to increase of 100 basis point in expected long-term rate of return | 45 | |||
Pensions | ||||
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | ||||
Prior service credit | 1 | |||
Aggregate net loss and prior service credit | 32 | |||
Pensions | Change in method for pension plans - spot rate | ||||
Change in Accounting Estimate [Abstract] | ||||
Pension plan expense | 86 | |||
Reduction in pension expense due to change in accounting estimate | (52) | |||
U.S. Pension Plans | ||||
Components of net periodic benefit cost: | ||||
Service cost | 192 | $ 173 | $ 205 | |
Interest cost | 220 | 228 | 201 | |
Expected return on assets | (295) | (288) | (257) | |
Amortization of prior service (credit) cost | (22) | (33) | (33) | |
Amortization of net (gain) loss | 92 | 42 | 138 | |
Curtailment (gain) loss | (179) | 0 | 0 | |
Net settlement (gain) loss | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net periodic benefit cost | 8 | 122 | 254 | |
Total recognized in Accumulated other comprehensive income (loss) | 143 | (793) | 823 | |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 135 | (915) | 569 | |
Pension expense and effect of change in pension expense due to change in discount rate or expected long-term rate of return | ||||
Estimated pension expense | $ 86 | |||
Non U.S. Pension Plans | ||||
Components of net periodic benefit cost: | ||||
Service cost | 43 | 42 | 47 | |
Interest cost | 25 | 29 | 29 | |
Expected return on assets | (25) | (22) | (19) | |
Amortization of prior service (credit) cost | (2) | (3) | (3) | |
Amortization of net (gain) loss | 9 | 7 | 13 | |
Curtailment (gain) loss | (1) | 1 | (1) | |
Net settlement (gain) loss | 1 | 0 | 5 | |
Other | 0 | 0 | 1 | |
Net periodic benefit cost | 50 | 54 | 72 | |
Total recognized in Accumulated other comprehensive income (loss) | 38 | (40) | 103 | |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (12) | (94) | 31 | |
Postretirement Plans | Maximum | ||||
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | ||||
Aggregate net loss and prior service credit | 9 | |||
U.S. Postretirement Plans | ||||
Components of net periodic benefit cost: | ||||
Service cost | 5 | 4 | 5 | |
Interest cost | 8 | 9 | 8 | |
Expected return on assets | 0 | 0 | 0 | |
Amortization of prior service (credit) cost | (11) | (11) | (11) | |
Amortization of net (gain) loss | 0 | 0 | 1 | |
Curtailment (gain) loss | 0 | 0 | 0 | |
Net settlement (gain) loss | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net periodic benefit cost | 2 | 2 | 3 | |
Total recognized in Accumulated other comprehensive income (loss) | 12 | (21) | 30 | |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 10 | (23) | 27 | |
Non U.S. Postretirement Plans | ||||
Components of net periodic benefit cost: | ||||
Service cost | 3 | 2 | 3 | |
Interest cost | 3 | 2 | 2 | |
Expected return on assets | 0 | 0 | 0 | |
Amortization of prior service (credit) cost | (1) | 0 | 0 | |
Amortization of net (gain) loss | 0 | 0 | 0 | |
Curtailment (gain) loss | 0 | 0 | (2) | |
Net settlement (gain) loss | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net periodic benefit cost | 5 | 4 | 3 | |
Total recognized in Accumulated other comprehensive income (loss) | (9) | (11) | 16 | |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ (14) | $ (15) | $ 13 |
EMPLOYEE BENEFITS (Details - We
EMPLOYEE BENEFITS (Details - Weighted average assumptions used to determine the benefit obligations) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. Pension Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 4.32% | 3.94% | |
Discount rate used to adjust for time value of money for retirement and postretirement plans (as a percent) | 3.40% | ||
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 3.94% | 4.83% | 3.93% |
Rate of compensation increase (as a percent) | 3.40% | 3.50% | 4.00% |
Expected return on assets (as a percent) | 7.25% | 7.25% | 7.25% |
Discount Rate Methodology | |||
Discount rate (as a percent) | 4.32% | 3.95% | |
Plan Assets | |||
Number of shares of AIG common stock included in plans assets | 0 | 0 | |
Non U.S. Pension Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 2.17% | 2.33% | |
Discount rate used to adjust for time value of money for retirement and postretirement plans (as a percent) | 2.64% | 2.89% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 2.33% | 2.77% | 2.62% |
Rate of compensation increase (as a percent) | 2.89% | 2.89% | 2.86% |
Expected return on assets (as a percent) | 3.33% | 2.93% | 2.60% |
Plan Assets | |||
Number of shares of AIG common stock included in plans assets | 0 | 0 | |
Japanese Non-U.S. Pension Plans | |||
Discount Rate Methodology | |||
Projected benefit obligation to total projected benefit obligations (as a percent) | 50.00% | 47.00% | |
Weighted average discount rate (as a percent) | 0.99% | 1.22% | |
U.S. Postretirement Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 4.21% | 3.78% | |
Assumed health care cost trend rates | |||
Ultimate rate to which cost increase is assumed to decline (as a percent) | 4.50% | 4.50% | |
Effect of one percent point change in the assumed healthcare cost trend rate on postretirement benefit obligations | |||
One percent increase | $ 6 | $ 5 | |
One percent decrease | $ 4 | $ 5 | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 3.77% | 4.59% | 3.67% |
U.S. Postretirement Plans | Medical (before age 65) | |||
Assumed health care cost trend rates | |||
Ultimate rate to which cost increase is assumed to decline (as a percent) | 6.79% | 7.07% | |
Year in which the ultimate trend rate is reached: | 2,027 | 2,027 | |
U.S. Postretirement Plans | Medical (age 65 and older) | |||
Assumed health care cost trend rates | |||
Ultimate rate to which cost increase is assumed to decline (as a percent) | 6.64% | 6.75% | |
Year in which the ultimate trend rate is reached: | 2,027 | 2,027 | |
Non U.S. Postretirement Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 4.09% | 4.04% | |
Discount rate used to adjust for time value of money for retirement and postretirement plans (as a percent) | 3.43% | 3.29% | |
Effect of one percent point change in the assumed healthcare cost trend rate on postretirement benefit obligations | |||
One percent increase | $ 17 | $ 12 | |
One percent decrease | $ 12 | $ 12 | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.04% | 4.77% | 3.45% |
Rate of compensation increase (as a percent) | 3.29% | 3.34% | 3.55% |
EMPLOYEE BENEFITS (Details - As
EMPLOYEE BENEFITS (Details - Assumed health care cost trend rates) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 100.00% | |||
Actual allocation (as a percent) | 100.00% | 100.00% | ||
Expected weighted average long-term rate of return plan assets (as a percent) | 7.25% | 7.25% | 7.25% | |
Period of review and revision of long-term strategic asset allocation | 3 years | |||
U.S. Pension Plans | Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 35.00% | |||
Actual allocation (as a percent) | 35.00% | 55.00% | ||
U.S. Pension Plans | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 45.00% | |||
Actual allocation (as a percent) | 41.00% | 28.00% | ||
U.S. Pension Plans | Other Investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 20.00% | |||
Actual allocation (as a percent) | 24.00% | 17.00% | ||
Non U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 100.00% | |||
Actual allocation (as a percent) | 100.00% | 100.00% | ||
Expected weighted average long-term rate of return plan assets (as a percent) | 3.33% | 2.93% | 2.60% | |
Non U.S. Pension Plans | Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 32.00% | |||
Actual allocation (as a percent) | 45.00% | 50.00% | ||
Non U.S. Pension Plans | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 48.00% | |||
Actual allocation (as a percent) | 35.00% | 35.00% | ||
Non U.S. Pension Plans | Other Investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 18.00% | |||
Actual allocation (as a percent) | 13.00% | 8.00% | ||
Non U.S. Pension Plans | Cash & cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 2.00% | |||
Actual allocation (as a percent) | 7.00% | 7.00% | ||
Japan's pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual allocation (as a percent) | 54.00% | 55.00% | ||
Expected weighted average long-term rate of return plan assets (as a percent) | 1.71% | 1.24% | ||
Period of review and revision of long-term strategic asset allocation | 5 years |
EMPLOYEE BENEFITS (Details -144
EMPLOYEE BENEFITS (Details - Assets Measured at Fair Value) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 4,359 | $ 4,111 | $ 4,024 |
U.S. Pension Plans | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 239 | 80 | |
U.S. Pension Plans | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,312 | 1,483 | |
U.S. Pension Plans | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 263 | 788 | |
U.S. Pension Plans | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,461 | 776 | |
U.S. Pension Plans | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 322 | 347 | |
U.S. Pension Plans | Fixed maturity securities: Mortgage and other asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 6 | |
U.S. Pension Plans | Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 500 | 373 | |
U.S. Pension Plans | Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 4 | |
U.S. Pension Plans | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Pension Plans | Other investment types: Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 230 | 228 | |
U.S. Pension Plans | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23 | 26 | |
U.S. Pension Plans | Other investment types: Annuity contracts | US Life | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23 | 26 | |
U.S. Pension Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,427 | 2,115 | |
U.S. Pension Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 239 | 80 | |
U.S. Pension Plans | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 924 | 1,244 | |
U.S. Pension Plans | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 262 | 787 | |
U.S. Pension Plans | Level 1 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Fixed maturity securities: Mortgage and other asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 4 | |
U.S. Pension Plans | Level 1 | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Pension Plans | Level 1 | Other investment types: Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,662 | 1,724 | |
U.S. Pension Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 2 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 388 | 239 | |
U.S. Pension Plans | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
U.S. Pension Plans | Level 2 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,452 | 768 | |
U.S. Pension Plans | Level 2 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 2 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 322 | 347 | |
U.S. Pension Plans | Level 2 | Fixed maturity securities: Mortgage and other asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 6 | |
U.S. Pension Plans | Level 2 | Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 469 | 337 | |
U.S. Pension Plans | Level 2 | Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Pension Plans | Level 2 | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Pension Plans | Level 2 | Other investment types: Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 2 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23 | 26 | |
U.S. Pension Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 270 | 272 | 292 |
U.S. Pension Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 8 | |
U.S. Pension Plans | Level 3 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | Fixed maturity securities: Mortgage and other asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 31 | 36 | 35 |
U.S. Pension Plans | Level 3 | Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Pension Plans | Level 3 | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Pension Plans | Level 3 | Other investment types: Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 230 | 228 | 248 |
U.S. Pension Plans | Level 3 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 773 | 708 | 738 |
Non U.S. Pension Plans | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49 | 50 | |
Non U.S. Pension Plans | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35 | 30 | |
Non U.S. Pension Plans | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 315 | 322 | |
Non U.S. Pension Plans | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 190 | 162 | |
Non U.S. Pension Plans | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 66 | 61 | |
Non U.S. Pension Plans | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 27 | |
Non U.S. Pension Plans | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | ||
Non U.S. Pension Plans | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 95 | 56 | |
Non U.S. Pension Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 343 | 356 | |
Non U.S. Pension Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49 | 50 | |
Non U.S. Pension Plans | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35 | 30 | |
Non U.S. Pension Plans | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 248 | 274 | |
Non U.S. Pension Plans | Level 1 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 1 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
Non U.S. Pension Plans | Level 1 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 1 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 1 | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | ||
Non U.S. Pension Plans | Level 1 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 335 | 279 | |
Non U.S. Pension Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 2 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 67 | 48 | |
Non U.S. Pension Plans | Level 2 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 2 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 190 | 160 | |
Non U.S. Pension Plans | Level 2 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 66 | 61 | |
Non U.S. Pension Plans | Level 2 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 10 | |
Non U.S. Pension Plans | Level 2 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 95 | 73 | 63 |
Non U.S. Pension Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 17 | |
Non U.S. Pension Plans | Level 3 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 95 | $ 56 | $ 44 |
EMPLOYEE BENEFITS (Details - Ch
EMPLOYEE BENEFITS (Details - Changes in Level 3 fair value measurements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in Level 3 fair value measurements | ||
Purchases | $ 5,990 | $ 8,678 |
Sales | (1,600) | (554) |
Settlements | (6,735) | (6,959) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | (129) | 298 |
U.S. Pension Plans | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 4,111 | 4,024 |
Net Realized and Unrealized Gains (Losses) | (8) | 266 |
Fair value of plan assets, end of year | 4,359 | 4,111 |
U.S. Pension Plans | Fixed maturity securities: U.S. investment grade | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, end of year | 270 | |
U.S. Pension Plans | Hedge funds: | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 373 | |
Fair value of plan assets, end of year | 500 | 373 |
U.S. Pension Plans | Fixed maturity securities: Mortgage and other asset-backed securities | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 6 | |
Fair value of plan assets, end of year | 7 | 6 |
U.S. Pension Plans | Private equity funds: | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 228 | |
Fair value of plan assets, end of year | 230 | 228 |
U.S. Pension Plans | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 26 | |
Fair value of plan assets, end of year | 23 | 26 |
U.S. Pension Plans | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 272 | 292 |
Net Realized and Unrealized Gains (Losses) | (1) | 16 |
Purchases | 114 | 106 |
Sales | (108) | (157) |
Settlements | 0 | 0 |
Transfers In | 8 | 15 |
Transfers Out | (15) | 0 |
Fair value of plan assets, end of year | 270 | 272 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 3 | 10 |
U.S. Pension Plans | Level 3 | Fixed maturity securities: U.S. investment grade | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 8 | 9 |
Net Realized and Unrealized Gains (Losses) | (1) | 2 |
Purchases | 17 | 18 |
Sales | (15) | (21) |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 9 | 8 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | (1) | 1 |
U.S. Pension Plans | Level 3 | Hedge funds: | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 36 | 35 |
Net Realized and Unrealized Gains (Losses) | 1 | 3 |
Purchases | 11 | 15 |
Sales | (10) | (32) |
Settlements | 0 | 0 |
Transfers In | 8 | 15 |
Transfers Out | (15) | 0 |
Fair value of plan assets, end of year | 31 | 36 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | (1) | (1) |
U.S. Pension Plans | Level 3 | Fixed maturity securities: Mortgage and other asset-backed securities | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
U.S. Pension Plans | Level 3 | Private equity funds: | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 228 | 248 |
Net Realized and Unrealized Gains (Losses) | (1) | 11 |
Purchases | 86 | 73 |
Sales | (83) | (104) |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 230 | 228 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 5 | 10 |
U.S. Pension Plans | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Non U.S. Pension Plans | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 708 | 738 |
Net Realized and Unrealized Gains (Losses) | 47 | 71 |
Fair value of plan assets, end of year | 773 | 708 |
Non U.S. Pension Plans | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 56 | |
Fair value of plan assets, end of year | 95 | 56 |
Non U.S. Pension Plans | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 73 | 63 |
Net Realized and Unrealized Gains (Losses) | (8) | 9 |
Purchases | 1 | 3 |
Sales | 0 | (2) |
Settlements | 0 | 0 |
Transfers In | 53 | 0 |
Transfers Out | (24) | 0 |
Fair value of plan assets, end of year | 95 | 73 |
Non U.S. Pension Plans | Level 3 | Other fixed income securities | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 17 | 19 |
Net Realized and Unrealized Gains (Losses) | (1) | 0 |
Purchases | 0 | 0 |
Sales | 0 | (2) |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | (16) | 0 |
Fair value of plan assets, end of year | 0 | 17 |
Non U.S. Pension Plans | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 56 | 44 |
Net Realized and Unrealized Gains (Losses) | (7) | 9 |
Purchases | 1 | 3 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers In | 53 | 0 |
Transfers Out | (8) | 0 |
Fair value of plan assets, end of year | $ 95 | $ 56 |
EMPLOYEE BENEFITS (Details - Ex
EMPLOYEE BENEFITS (Details - Expected Cash Flows) - USD ($) $ in Millions | Jan. 02, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | $ 166 | $ 156 | $ 155 | |
Expected future benefit payments, net of participants' contributions | ||||
Pre tax expenses associated with contribution plans | $ 166 | 156 | $ 155 | |
DEFINED CONTRIBUTION PLANS | ||||
Maximum percentage of participant contributions eligible for employer contribution match, towards defined contribution plan | 100.00% | |||
Percentage of employer's contribution on employee's matching contribution | 6.00% | |||
Change in percentage of employer's contribution on employee's matching contribution | 3.00% | |||
Company's maximum contribution as percentage of employee's annual salary | 0.00% | |||
Pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated employer contribution | $ 67 | |||
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 558 | 115 | ||
Expected future benefit payments, net of participants' contributions | ||||
2,016 | 759 | |||
2,017 | 310 | |||
2,018 | 323 | |||
2,019 | 319 | |||
2,020 | 313 | |||
2021-2025 | 1,487 | |||
Pre tax expenses associated with contribution plans | 558 | 115 | ||
Non U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 62 | 67 | ||
Expected future benefit payments, net of participants' contributions | ||||
2,016 | 36 | |||
2,017 | 38 | |||
2,018 | 40 | |||
2,019 | 46 | |||
2,020 | 45 | |||
2021-2025 | 282 | |||
Pre tax expenses associated with contribution plans | 62 | 67 | ||
Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum required cash contributions | 0 | |||
AIG contributions | 0 | |||
Expected future benefit payments, net of participants' contributions | ||||
Pre tax expenses associated with contribution plans | 0 | |||
U.S. Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 11 | 11 | ||
Expected future benefit payments, net of participants' contributions | ||||
2,016 | 14 | |||
2,017 | 15 | |||
2,018 | 15 | |||
2,019 | 15 | |||
2,020 | 16 | |||
2021-2025 | 83 | |||
Pre tax expenses associated with contribution plans | 11 | 11 | ||
Non U.S. Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 1 | 1 | ||
Expected future benefit payments, net of participants' contributions | ||||
2,016 | 1 | |||
2,017 | 1 | |||
2,018 | 2 | |||
2,019 | 2 | |||
2,020 | 2 | |||
2021-2025 | 12 | |||
Pre tax expenses associated with contribution plans | $ 1 | $ 1 |
OWNERSHIP (Details)
OWNERSHIP (Details) | Dec. 31, 2015shares |
The Vanguard Group | |
Beneficial Ownership [Line Items] | |
Ownership interest (as a percent) | 5.50% |
Common stock deemed to be beneficially owned (in shares) | 67,605,730 |
Blackrock, Inc | |
Beneficial Ownership [Line Items] | |
Ownership interest (as a percent) | 6.50% |
Common stock deemed to be beneficially owned (in shares) | 80,762,613 |
INCOME TAXES (Details - Income
INCOME TAXES (Details - Income (loss) from continuing operations and income tax expense (benefit)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (loss) from continuing operations before income tax expense (benefit) | |||||||||||
U.S. | $ 1,950 | $ 8,250 | $ 8,058 | ||||||||
Foreign | 1,331 | 2,251 | 1,310 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | $ (2,932) | $ (115) | $ 2,552 | $ 3,776 | $ 729 | $ 3,019 | $ 4,480 | $ 2,273 | 3,281 | 10,501 | 9,368 |
Foreign: | |||||||||||
Current | 391 | 473 | 549 | ||||||||
Deferred | (95) | 154 | (442) | ||||||||
U.S.: | |||||||||||
Current | 429 | 115 | 131 | ||||||||
Deferred | 334 | 2,185 | 122 | ||||||||
Income tax expense (benefit) | 1,059 | 2,927 | 360 | ||||||||
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, pre-tax income (loss) | |||||||||||
Consolidated total amounts | 3,281 | 10,524 | 9,518 | ||||||||
Amounts attributable to discontinued operations | 0 | 23 | 150 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (2,932) | $ (115) | $ 2,552 | $ 3,776 | $ 729 | $ 3,019 | $ 4,480 | $ 2,273 | 3,281 | 10,501 | 9,368 |
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, tax expense/benefit | |||||||||||
U.S. federal income tax at statutory rate | 1,148 | 3,683 | 3,331 | ||||||||
Consolidated total amounts | 1,059 | 3,000 | 426 | ||||||||
Amounts attributable to discontinued operations | 0 | 73 | 66 | ||||||||
Income tax expense (benefit) | 1,059 | 2,927 | 360 | ||||||||
Adjustments: | |||||||||||
Tax exempt interest | (195) | (236) | (298) | ||||||||
Uncertain tax positions | 195 | (81) | 632 | ||||||||
Reclassifications from accumulated other comprehensive income | (127) | (61) | 0 | ||||||||
Partial completion of Internal Revenue Service examination | 109 | ||||||||||
Cross Border Financing Transactions | 324 | ||||||||||
Non-deductible transfer pricing charges | 97 | 86 | 0 | ||||||||
Dividends received deduction | (72) | (62) | (75) | ||||||||
Effect of foreign operations | (58) | (68) | (5) | ||||||||
State income taxes | 34 | 39 | (21) | ||||||||
Other | (73) | (184) | 13 | ||||||||
Effect of discontinued operations | 0 | 65 | 14 | ||||||||
Valuation allowance | |||||||||||
Continuing operations | 110 | $ (181) | $ (3,165) | ||||||||
Increase (Decrease) in certain other valuation allowances associated with foreign jurisdictions | $ 110 | ||||||||||
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, percentage of pre-tax income (loss) | |||||||||||
U.S. federal income tax at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | ||||||||
Consolidated total amounts (as a percent) | 32.30% | 28.50% | 4.50% | ||||||||
Amounts attributable to discontinued operations (as a percent) | 0.00% | 317.40% | 44.30% | ||||||||
Adjustments: | |||||||||||
Amounts attributable to continuing operations (as a percent) | 32.30% | 27.90% | 3.80% | ||||||||
Tax exempt interest (as a percent) | (5.90%) | (2.20%) | (3.10%) | ||||||||
Uncertain Tax Positions (as a percent) | 5.90% | (0.80%) | 6.60% | ||||||||
Reclassification from accumulated other comprehensive income (as a percent) | (3.90%) | (0.60%) | 0.00% | ||||||||
Non-deductible transfer pricing charges (as a percent) | 3.00% | 0.80% | 0.00% | ||||||||
Dividends received deduction (as a percent) | (2.20%) | (0.60%) | (0.80%) | ||||||||
Effect of foreign operations (as a percent) | (1.80%) | (0.60%) | (0.10%) | ||||||||
State income taxes (as a percent) | 1.00% | 0.40% | (0.20%) | ||||||||
Other (as a percent) | (2.20%) | (1.70%) | 0.10% | ||||||||
Effect of discontinued operations (as a percent) | 0.00% | 0.60% | 0.10% | ||||||||
Valuation allowance (as a percent): | |||||||||||
Continuing operations (as a percent) | 3.40% | (1.70%) | (33.30%) | ||||||||
Undistributed Earnings of Foreign Subsidiaries | $ 1,800 | $ 1,800 | |||||||||
US Life companies capital loss carryforward | |||||||||||
Valuation allowance | |||||||||||
Continuing operations | $ 209 | $ 2,800 | |||||||||
Other valuation allowance associated with foreign jurisdictions | |||||||||||
Valuation allowance | |||||||||||
Continuing operations | $ 396 | ||||||||||
Other valuation allowance associated with foreign jurisdictions | Residential mortgages dispute resolution | |||||||||||
Adjustments: | |||||||||||
Other | $ 182 |
INCOME TAXES (Details - Compone
INCOME TAXES (Details - Components of the net deferred tax assets (liabilities) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Life policy reserves | $ 353 | $ 629 |
Losses and tax credit carryforwards | 18,680 | 18,203 |
Basis differences on investments | 4,886 | 4,114 |
Accruals not currently deductible, and other | 1,003 | 1,804 |
Loss reserve discount | 1,021 | 1,378 |
Loan loss and other reserves | 8 | 152 |
Unearned premium reserve reduction | 1,603 | 1,269 |
Flight equipment, fixed assets and intangible assets | 129 | 28 |
Other | 577 | 220 |
Employee benefits | 1,286 | 1,543 |
Total deferred tax assets | 29,546 | 29,340 |
Deferred tax liabilities: | ||
Investments in foreign subsidiaries | (33) | (58) |
Deferred policy acquisition costs | (3,467) | (3,003) |
Unrealized gains related to available for sale debt securities | (3,077) | (5,795) |
Total deferred tax liabilities | (6,577) | (8,856) |
Net deferred tax assets before valuation allowance | 22,969 | 20,484 |
Valuation allowance | (3,012) | (1,739) |
Net deferred tax assets (liabilities) | $ 19,957 | $ 18,745 |
INCOME TAXES (Details - U.S. co
INCOME TAXES (Details - U.S. consolidated income tax group tax losses and credits carryforwards) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, gross | |
Net operating loss carryforwards | $ 34,883 |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 12,209 |
Foreign tax credit carryforwards | 6,853 |
Other carryforwards | 538 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis | 19,600 |
Unrecognized tax benefit | (2,523) |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 17,077 |
Other carryforwards include general business credits | $ 326 |
Other Operating Loss Carryforward | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | Various |
Maximum | Operating loss carryforward | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,035 |
Maximum | Foreign tax credit carryforwards | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,024 |
Minimum | Operating loss carryforward | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,028 |
Minimum | Foreign tax credit carryforwards | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,016 |
INCOME TAXES (Details - Assessm
INCOME TAXES (Details - Assessment of Deferred Tax Asset (liabilities) Valuation Allowance) - USD ($) $ in Millions | Feb. 26, 2009 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Change in valuation allowance | $ 49 | $ 8 | $ (40) | $ 93 | $ 20 | $ 21 | $ 75 | $ 65 | $ 0 | |||
Continuing operations | 110 | $ (181) | $ (3,165) | |||||||||
Deferred tax asset valuation allowance allocated to other comprehensive income | 1,200 | |||||||||||
Deferred tax asset valuation allowance related to tax attributes that expired | 0 | |||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Valuation allowance | (3,012) | (1,739) | (3,012) | (1,739) | ||||||||
Net deferred tax assets (liabilities) | 19,957 | 18,745 | 19,957 | 18,745 | ||||||||
Net foreign, state & local deferred tax assets | 22,969 | 20,484 | 22,969 | 20,484 | ||||||||
Net U.S, foreign, state & local deferred tax assets | 20,394 | 19,339 | 20,394 | 19,339 | ||||||||
Net foreign, state & local deferred tax liabilities | (6,577) | (8,856) | (6,577) | (8,856) | ||||||||
Deferred tax asset - U.S. consolidated income tax group | ||||||||||||
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Change in valuation allowance | 17,100 | |||||||||||
Deferred tax asset valuation allowance recognized related to certain state, local and foreign jurisdictions | 266 | |||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Net U.S. consolidated return group deferred tax assets | 24,134 | 24,543 | 24,134 | 24,543 | ||||||||
Net deferred tax assets (liabilities) in Accumulated other comprehensive income | (2,806) | (5,510) | (2,806) | (5,510) | ||||||||
Valuation allowance | (1,281) | (129) | (1,281) | (129) | ||||||||
Net deferred tax assets (liabilities) | 20,047 | 18,904 | 20,047 | 18,904 | ||||||||
Refund of taxes, interest and penalties sought | $ 306 | |||||||||||
Deferred tax liability - foreign, state and local | ||||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Valuation allowance | (1,731) | (1,610) | (1,731) | (1,610) | ||||||||
Net deferred tax assets (liabilities) | 347 | 435 | 347 | 435 | ||||||||
Net foreign, state & local deferred tax assets | 2,078 | 2,045 | 2,078 | 2,045 | ||||||||
Net foreign, state & local deferred tax liabilities | (437) | (594) | (437) | (594) | ||||||||
Net foreign, state & local deferred tax liabilities | $ 90 | $ 159 | $ 90 | $ 159 |
INCOME TAXES (Details - Account
INCOME TAXES (Details - Accounting For Uncertainty in Income Taxes) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Rollforward of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | |||
Gross unrecognized tax benefits, beginning of year | $ 4,395 | $ 4,340 | $ 4,385 |
Increases in tax positions for prior years | 162 | 91 | 680 |
Decreases in tax positions for prior years | (209) | (60) | (796) |
Increases in tax positions for current year | 0 | 10 | 43 |
Lapse in statute of limitations | (4) | (6) | (20) |
Settlements | (13) | 0 | (2) |
Activity of discontinued operations | 0 | 20 | 50 |
Gross unrecognized tax benefits, end of year | 4,331 | 4,395 | 4,340 |
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 100 | 300 | 100 |
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 4,200 | 4,100 | 4,200 |
Unrecognized tax benefits, interest and penalties accrued | 1,200 | 1,100 | |
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties | $ 156 | $ 21 | $ 142 |
Unrecognized tax benefits, period of reasonably possible change in balance | 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. |
INCOME TAXES (Details - Tax Yea
INCOME TAXES (Details - Tax Years that remain open in Income Taxes) | 12 Months Ended |
Dec. 31, 2015 | |
UNITED STATES | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,000 |
UNITED STATES | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,014 |
Australia [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,011 |
Australia [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,014 |
FRANCE [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,013 |
FRANCE [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,014 |
JAPAN [Member} | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,009 |
JAPAN [Member} | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,014 |
KOREA [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,010 |
KOREA [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,014 |
SINGAPORE [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,011 |
SINGAPORE [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,014 |
UNITED KINGDOM [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,013 |
UNITED KINGDOM [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,014 |
QUARTERLY FINANCIAL INFORMAT154
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details - Consolidated Statements of Income (Loss)) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Revenues | $ 13,831 | $ 12,822 | $ 15,699 | $ 15,975 | $ 15,410 | $ 16,697 | $ 16,136 | $ 16,163 | $ 58,327 | $ 64,406 | $ 68,874 |
Income (loss) from continuing operations before income tax expense (benefit) | (2,932) | (115) | 2,552 | 3,776 | 729 | 3,019 | 4,480 | 2,273 | 3,281 | 10,501 | 9,368 |
Income (loss) from discontinued operations, net of income tax expense | 0 | (17) | 16 | 1 | (35) | 2 | 30 | (47) | 0 | (50) | 84 |
Net income (loss) | (1,849) | (197) | 1,791 | 2,477 | 675 | 2,201 | 3,036 | 1,612 | 2,222 | 7,524 | 9,092 |
Net income (loss) from continuing operations attributable to noncontrolling interests | (8) | 34 | (9) | 9 | 20 | 9 | (37) | 3 | 26 | (5) | 7 |
Net income (loss) attributable to AIG | $ (1,841) | $ (231) | $ 1,800 | $ 2,468 | $ 655 | $ 2,192 | $ 3,073 | $ 1,609 | $ 2,196 | $ 7,529 | $ 9,085 |
Basic and diluted: | |||||||||||
Income from continuing operations | $ (1.5) | $ (0.17) | $ 1.34 | $ 1.81 | $ 0.5 | $ 1.54 | $ 2.11 | $ 1.13 | $ 1.69 | $ 5.31 | $ 6.11 |
Income (loss) from discontinued operations - basic (in dollars per share) | 0 | (0.01) | 0.01 | 0 | (0.03) | 0 | 0.02 | (0.03) | 0 | (0.04) | 0.05 |
Income from continuing operations | (1.5) | (0.17) | 1.31 | 1.78 | 0.49 | 1.52 | 2.08 | 1.12 | 1.65 | 5.24 | 6.08 |
Income (loss) from discontinued operations | $ 0 | $ (0.01) | $ 0.01 | $ 0 | $ (0.03) | $ 0 | $ 0.02 | $ (0.03) | $ 0 | $ (0.04) | $ 0.05 |
Weighted average shares outstanding: | |||||||||||
Basic | 1,226,880,632 | 1,279,072,748 | 1,329,157,366 | 1,365,951,690 | 1,391,790,420 | 1,419,239,774 | 1,442,397,111 | 1,459,249,393 | 1,299,825,350 | 1,427,959,799 | 1,474,171,690 |
Diluted | 1,226,880,632 | 1,279,072,748 | 1,365,390,431 | 1,386,263,549 | 1,412,162,456 | 1,442,067,842 | 1,464,676,330 | 1,472,510,813 | 1,334,464,883 | 1,447,553,652 | 1,481,206,797 |
Noteworthy quarterly items income (expense): | |||||||||||
Other-than-temporary impairments | $ (106) | $ (273) | $ (164) | $ (128) | $ (83) | $ (50) | $ (55) | $ (59) | $ 591 | $ 217 | $ 187 |
Net (gain) loss on sale of divested businesses | 1 | 3 | 1 | 6 | (1) | (18) | (2,174) | (4) | (11) | 2,197 | (48) |
Federal and foreign valuation allowance for deferred tax assets | 49 | 8 | (40) | 93 | 20 | 21 | 75 | 65 | 0 | ||
Loss on extinguishment of debt | 0 | (346) | (342) | (68) | (1,268) | (742) | (34) | (238) | (756) | (2,282) | (651) |
Restructuring and other costs | 222 | 274 | |||||||||
Reserve strengthening charges | 3,587 | 191 | 317 | 24 | 4,119 | 703 | 557 | ||||
Adjustment | |||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (308) | (376) | |||||||||
Net income (loss) attributable to AIG | (193) | $ (36) | $ 15 | $ (16) | $ 25 | $ (61) | $ 13 | $ (28) | (156) | $ (51) | $ 78 |
Investments: | |||||||||||
Operating Income Loss | $ (122) | $ (235) |
INFORMATION PROVIDED IN CONN155
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Short-term investments | $ 10,132 | $ 11,243 | ||
Other investments | 328,222 | 344,523 | ||
Total investments | 338,354 | 355,766 | ||
Cash | 1,629 | 1,758 | $ 2,241 | $ 1,151 |
Loans to subsidiaries | 0 | |||
Investment in consolidated subsidiaries | 0 | |||
Other assets, including deferred income taxes | 156,960 | 158,057 | ||
Total assets | 496,943 | 515,581 | ||
Liabilities: | ||||
Insurance liabilities | 271,645 | 270,615 | ||
Long-term Debt | 29,350 | 31,217 | ||
Other liabilities, including intercompany balances | 105,738 | 106,477 | ||
Loans from subsidiaries | 0 | |||
Total liabilities | 406,733 | 408,309 | ||
Total AIG shareholders' equity | 89,658 | 106,898 | ||
Non-redeemable noncontrolling interests | 552 | 374 | ||
Total equity | 90,210 | 107,272 | 101,081 | 98,669 |
Total liabilities and equity | 496,943 | 515,581 | ||
AIG (As Guarantor) | ||||
Assets: | ||||
Short-term investments | 4,042 | 6,078 | ||
Other investments | 7,425 | 11,415 | ||
Total investments | 11,467 | 17,493 | ||
Cash | 34 | 26 | 30 | $ 81 |
Loans to subsidiaries | 35,927 | 31,070 | ||
Investment in consolidated subsidiaries | 51,151 | 62,811 | ||
Other assets, including deferred income taxes | 23,398 | 23,835 | ||
Total assets | 121,977 | 135,235 | ||
Liabilities: | ||||
Insurance liabilities | 0 | |||
Long-term Debt | 19,876 | 21,190 | ||
Other liabilities, including intercompany balances | 11,869 | 6,196 | ||
Loans from subsidiaries | 574 | 951 | ||
Total liabilities | 32,319 | 28,337 | ||
Total AIG shareholders' equity | 89,658 | 106,898 | ||
Non-redeemable noncontrolling interests | 0 | |||
Total equity | 89,658 | 106,898 | ||
Total liabilities and equity | 121,977 | 135,235 | ||
AIGLH | ||||
Assets: | ||||
Short-term investments | 0 | |||
Other investments | 0 | |||
Total investments | 0 | |||
Cash | 116 | 91 | 51 | |
Loans to subsidiaries | 0 | |||
Investment in consolidated subsidiaries | 30,239 | 35,850 | ||
Other assets, including deferred income taxes | 260 | 2,305 | ||
Total assets | 30,615 | 38,246 | ||
Liabilities: | ||||
Insurance liabilities | 0 | |||
Long-term Debt | 706 | 820 | ||
Other liabilities, including intercompany balances | 201 | 2,314 | ||
Loans from subsidiaries | 3 | 0 | ||
Total liabilities | 910 | 3,134 | ||
Total AIG shareholders' equity | 29,705 | 35,112 | ||
Non-redeemable noncontrolling interests | 0 | |||
Total equity | 29,705 | 35,112 | ||
Total liabilities and equity | 30,615 | 38,246 | ||
Other Subsidiaries | ||||
Assets: | ||||
Short-term investments | 9,637 | 6,231 | ||
Other investments | 320,797 | 333,108 | ||
Total investments | 330,434 | 339,339 | ||
Cash | 1,479 | 1,641 | $ 2,160 | |
Loans to subsidiaries | 578 | 779 | ||
Investment in consolidated subsidiaries | 0 | |||
Other assets, including deferred income taxes | 135,690 | 141,826 | ||
Total assets | 468,181 | 483,585 | ||
Liabilities: | ||||
Insurance liabilities | 271,645 | 270,615 | ||
Long-term Debt | 8,768 | 9,207 | ||
Other liabilities, including intercompany balances | 99,777 | 108,189 | ||
Loans from subsidiaries | 35,928 | 30,898 | ||
Total liabilities | 416,118 | 418,909 | ||
Total AIG shareholders' equity | 51,511 | 64,302 | ||
Non-redeemable noncontrolling interests | 552 | 374 | ||
Total equity | 52,063 | 64,676 | ||
Total liabilities and equity | 468,181 | 483,585 | ||
Reclassifications and Eliminations | ||||
Assets: | ||||
Short-term investments | (3,547) | (1,066) | ||
Other investments | 0 | |||
Total investments | (3,547) | (1,066) | ||
Cash | 0 | |||
Loans to subsidiaries | (36,505) | (31,849) | ||
Investment in consolidated subsidiaries | (81,390) | (98,661) | ||
Other assets, including deferred income taxes | (2,388) | (9,909) | ||
Total assets | (123,830) | (141,485) | ||
Liabilities: | ||||
Insurance liabilities | 0 | 0 | ||
Long-term Debt | 0 | |||
Other liabilities, including intercompany balances | (6,109) | (10,222) | ||
Loans from subsidiaries | (36,505) | (31,849) | ||
Total liabilities | (42,614) | (42,071) | ||
Total AIG shareholders' equity | (81,216) | (99,414) | ||
Non-redeemable noncontrolling interests | 0 | |||
Total equity | (81,216) | (99,414) | ||
Total liabilities and equity | $ (123,830) | $ (141,485) |
INFORMATION PROVIDED IN CONN156
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | $ 0 | $ 0 | $ 0 | ||||||||
Other income | 58,327 | 64,406 | 68,874 | ||||||||
Total revenues | $ 13,831 | $ 12,822 | $ 15,699 | $ 15,975 | $ 15,410 | $ 16,697 | $ 16,136 | $ 16,163 | 58,327 | 64,406 | 68,874 |
Expenses: | |||||||||||
Interest expense | 1,281 | 1,718 | 2,142 | ||||||||
Net losses on extinguishment of debt | 0 | 346 | 342 | 68 | 1,268 | 742 | 34 | 238 | 756 | 2,282 | 651 |
Other expenses | 53,009 | 49,905 | 56,713 | ||||||||
Total benefits, losses and expenses | 55,046 | 53,905 | 59,506 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 3,281 | 10,501 | 9,368 | ||||||||
Income tax expense (benefit) | 1,059 | 2,927 | 360 | ||||||||
Income from continuing operations | 2,222 | 7,574 | 9,008 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | (17) | 16 | 1 | (35) | 2 | 30 | (47) | 0 | (50) | 84 |
Net income | (1,849) | (197) | 1,791 | 2,477 | 675 | 2,201 | 3,036 | 1,612 | 2,222 | 7,524 | 9,092 |
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | (8) | 34 | (9) | 9 | 20 | 9 | (37) | 3 | 26 | (5) | 7 |
Net income (loss) attributable to AIG | $ (1,841) | $ (231) | $ 1,800 | $ 2,468 | $ 655 | $ 2,192 | $ 3,073 | $ 1,609 | 2,196 | 7,529 | 9,085 |
AIG (As Guarantor) | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 3,954 | 9,450 | 7,638 | ||||||||
Other income | 88 | 1,658 | 1,487 | ||||||||
Total revenues | 4,042 | 11,108 | 9,125 | ||||||||
Expenses: | |||||||||||
Interest expense | 1,049 | 1,507 | 1,938 | ||||||||
Net losses on extinguishment of debt | 703 | 2,248 | 580 | ||||||||
Other expenses | 1,178 | 1,546 | 1,520 | ||||||||
Total benefits, losses and expenses | 2,930 | 5,301 | 4,038 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 1,112 | 5,807 | 5,087 | ||||||||
Income tax expense (benefit) | (1,086) | (1,735) | (4,012) | ||||||||
Income from continuing operations | 2,198 | 7,542 | 9,099 | ||||||||
Income (loss) from discontinued operations, net of income taxes | (2) | (13) | (14) | ||||||||
Net income | 2,196 | 7,529 | 9,085 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | 2,196 | 7,529 | 9,085 | ||||||||
AIGLH | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 1,936 | 3,519 | 4,075 | ||||||||
Other income | 0 | 0 | 1 | ||||||||
Total revenues | 1,936 | 3,519 | 4,076 | ||||||||
Expenses: | |||||||||||
Interest expense | 58 | 100 | 126 | ||||||||
Net losses on extinguishment of debt | 0 | 0 | 0 | ||||||||
Other expenses | 44 | 203 | 75 | ||||||||
Total benefits, losses and expenses | 102 | 303 | 201 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 1,834 | 3,216 | 3,875 | ||||||||
Income tax expense (benefit) | (73) | (103) | (58) | ||||||||
Income from continuing operations | 1,907 | 3,319 | 3,933 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income | 1,907 | 3,319 | 3,933 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | 1,907 | 3,319 | 3,933 | ||||||||
Other Subsidiaries | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Other income | 58,953 | 63,157 | 67,698 | ||||||||
Total revenues | 58,953 | 63,157 | 67,698 | ||||||||
Expenses: | |||||||||||
Interest expense | 302 | 243 | 233 | ||||||||
Net losses on extinguishment of debt | 46 | 85 | 71 | ||||||||
Other expenses | 52,374 | 48,315 | 55,277 | ||||||||
Total benefits, losses and expenses | 52,722 | 48,643 | 55,581 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 6,231 | 14,514 | 12,117 | ||||||||
Income tax expense (benefit) | 2,218 | 4,817 | 4,454 | ||||||||
Income from continuing operations | 4,013 | 9,697 | 7,663 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 2 | (37) | 98 | ||||||||
Net income | 4,015 | 9,660 | 7,761 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 26 | (5) | 7 | ||||||||
Net income (loss) attributable to AIG | 3,989 | 9,665 | 7,754 | ||||||||
Reclassifications and Eliminations | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | (5,890) | (12,969) | (11,713) | ||||||||
Other income | (714) | (409) | (312) | ||||||||
Total revenues | (6,604) | (13,378) | (12,025) | ||||||||
Expenses: | |||||||||||
Interest expense | (128) | (132) | (155) | ||||||||
Net losses on extinguishment of debt | 7 | (51) | 0 | ||||||||
Other expenses | (587) | (159) | (159) | ||||||||
Total benefits, losses and expenses | (708) | (342) | (314) | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (5,896) | (13,036) | (11,711) | ||||||||
Income tax expense (benefit) | 0 | (52) | (24) | ||||||||
Income from continuing operations | (5,896) | (12,984) | (11,687) | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income | (5,896) | (12,984) | (11,687) | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | $ (5,896) | $ (12,984) | $ (11,687) |
INFORMATION PROVIDED IN CONN157
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ (1,849) | $ (197) | $ 1,791 | $ 2,477 | $ 675 | $ 2,201 | $ 3,036 | $ 1,612 | $ 2,222 | $ 7,524 | $ 9,092 |
Other Comprehensive Income (Loss) | (8,086) | 4,257 | (6,237) | ||||||||
Comprehensive income (loss) | (5,864) | 11,781 | 2,855 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 20 | (5) | (16) | ||||||||
Comprehensive income (loss) attributable to AIG | (5,884) | 11,786 | 2,871 | ||||||||
AIG (As Guarantor) | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 2,196 | 7,529 | 9,085 | ||||||||
Other Comprehensive Income (Loss) | (8,080) | 4,257 | (6,214) | ||||||||
Comprehensive income (loss) | (5,884) | 11,786 | 2,871 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | (5,884) | 11,786 | 2,871 | ||||||||
AIGLH | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 1,907 | 3,319 | 3,933 | ||||||||
Other Comprehensive Income (Loss) | 2,320 | 2,794 | (4,689) | ||||||||
Comprehensive income (loss) | 4,227 | 6,113 | (756) | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | 4,227 | 6,113 | (756) | ||||||||
Other Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 4,015 | 9,660 | 7,761 | ||||||||
Other Comprehensive Income (Loss) | 54,757 | 3,235 | (6,719) | ||||||||
Comprehensive income (loss) | 58,772 | 12,895 | 1,042 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 20 | (5) | (16) | ||||||||
Comprehensive income (loss) attributable to AIG | 58,752 | 12,900 | 1,058 | ||||||||
Reclassifications and Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | (5,896) | (12,984) | (11,687) | ||||||||
Other Comprehensive Income (Loss) | (57,083) | (6,029) | 11,385 | ||||||||
Comprehensive income (loss) | (62,979) | (19,013) | (302) | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | $ (62,979) | $ (19,013) | $ (302) |
INFORMATION PROVIDED IN CONN158
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 2,877 | $ 5,007 | $ 5,865 |
Cash flows from investing activities: | |||
Sales of investments | 72,616 | 66,104 | 77,094 |
Proceeds from divested businesses, net | 0 | 2,348 | 0 |
Purchase of investments | 65,265 | (58,110) | (77,887) |
Loans to subsidiaries - net | 0 | 0 | |
Contributions to subsidiaries - net | 0 | 0 | |
Net change in restricted cash | 1,457 | (1,447) | 1,244 |
Net change in short-term investments | 1,163 | 8,760 | 7,842 |
Other, net | (1,509) | (1,023) | (1,194) |
Net cash provided by investing activities | 8,462 | 14,284 | 7,099 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 6,867 | 6,687 | 5,235 |
Repayments of long-term debt | (9,805) | (16,160) | (14,197) |
Purchase of Common Stock | (10,691) | (4,902) | (597) |
Cash dividends paid | (1,028) | (712) | (294) |
Other, net | 3,228 | (4,701) | (1,905) |
Net cash provided by (used in) financing activities | (11,429) | (19,788) | (11,758) |
Effect of exchange rate changes on cash | (39) | (74) | (92) |
Net increase (decrease) in cash | (129) | (571) | 1,114 |
Cash at beginning of year | 1,758 | 2,241 | 1,151 |
Reclassification to assets held for sale | 0 | 88 | (24) |
Cash at end of year | 1,629 | 1,758 | 2,241 |
Interest: | |||
Third party | (1,368) | (3,367) | (3,856) |
Intercompany | 0 | 0 | 0 |
Taxes: | |||
Income tax authorities | (511) | (737) | (796) |
Intercompany | 0 | 0 | 0 |
AIG (As Guarantor) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 4,443 | 9,316 | 6,422 |
Cash flows from investing activities: | |||
Sales of investments | 7,767 | 3,036 | 1,425 |
Proceeds from divested businesses, net | 0 | ||
Purchase of investments | (1,881) | (1,051) | (5,506) |
Loans to subsidiaries - net | (83) | 446 | 3,660 |
Contributions to subsidiaries - net | 565 | (148) | (2,081) |
Net change in restricted cash | 0 | (501) | 493 |
Net change in short-term investments | 2,300 | 5,792 | 2,361 |
Other, net | (175) | (141) | 130 |
Net cash provided by investing activities | 8,493 | 7,433 | 482 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 5,540 | 3,247 | 2,015 |
Repayments of long-term debt | (6,504) | (14,468) | (7,439) |
Proceeds from drawdown on the Department of the Treasury Commitment | 0 | 0 | 0 |
Issuance of Common Stock | 0 | 0 | 0 |
Purchase of Common Stock | (10,691) | (4,902) | (597) |
Intercompany loans - net | (201) | 110 | (123) |
Cash dividends paid | (1,028) | (712) | (294) |
Net cash provided by (used in) financing activities | (12,928) | (16,753) | (6,955) |
Net increase (decrease) in cash | 8 | (4) | (51) |
Cash at beginning of year | 26 | 30 | 81 |
Cash at end of year | 34 | 26 | 30 |
Interest: | |||
Third party | (1,030) | (1,624) | (1,963) |
Intercompany | 0 | 5 | (12) |
Taxes: | |||
Income tax authorities | (11) | (18) | (161) |
Intercompany | 829 | 1,172 | 288 |
Payment of FRBNY Credit Facility accrued compounded interest | 0 | ||
Non-cash financing and investing activities: | |||
Capital contributions in the form of bond available for sale securities | 0 | ||
Capital contributions to subsidiaries through forgiveness of loans | 0 | 341 | |
Return of capital | 0 | 4,836 | 0 |
Return of capital and dividend received in the form of cancellation of intercompany loan | 0 | ||
Return of capital and dividend received in the form of other bonds securities | 2,326 | 3,088 | 0 |
Other capital contributions - net | 494 | 2,457 | 523 |
AIGLH | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 2,314 | 6,155 | 4,488 |
Cash flows from investing activities: | |||
Sales of investments | 0 | 0 | 0 |
Proceeds from divested businesses, net | 0 | 0 | |
Purchase of investments | 0 | 0 | 0 |
Loans to subsidiaries - net | 0 | 0 | 0 |
Contributions to subsidiaries - net | 0 | 0 | 1 |
Net change in restricted cash | 0 | 0 | 0 |
Net change in short-term investments | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided by investing activities | 0 | 0 | (1) |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 114 | 477 | 245 |
Issuance of Common Stock | 0 | 0 | |
Purchase of Common Stock | 0 | 0 | |
Intercompany loans - net | 3 | (280) | (273) |
Cash dividends paid | 2,178 | 5,358 | 3,991 |
Other, net | 0 | ||
Net cash provided by (used in) financing activities - continuing operations | (2,289) | (6,115) | (4,509) |
Net cash provided by (used in) financing activities | (6,115) | (4,509) | |
Net increase (decrease) in cash | 25 | 40 | (22) |
Cash at beginning of year | 91 | 51 | |
Cash at end of year | 116 | 91 | 51 |
Interest: | |||
Third party | (59) | (87) | (111) |
Intercompany | 0 | (7) | (21) |
Taxes: | |||
Intercompany | 0 | 0 | (78) |
Other Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 1,112 | 8,979 | 7,385 |
Cash flows from investing activities: | |||
Sales of investments | 69,726 | 65,108 | 78,868 |
Proceeds from divested businesses, net | 0 | ||
Purchase of investments | 68,261 | 59,099 | 75,580 |
Loans to subsidiaries - net | 367 | 169 | 395 |
Contributions to subsidiaries - net | (296) | 0 | |
Net change in restricted cash | (1,457) | 946 | (751) |
Net change in short-term investments | 1,137 | (2,968) | (5,481) |
Other, net | (1,334) | (882) | (1,324) |
Net cash provided by investing activities | 818 | 7,614 | 8,591 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 1,327 | 3,440 | 3,220 |
Repayments of long-term debt | 3,187 | 1,215 | 6,513 |
Issuance of Common Stock | 0 | 0 | |
Purchase of Common Stock | 0 | 0 | |
Intercompany loans - net | (86) | (445) | (3,659) |
Cash dividends paid | 2,814 | 14,085 | 8,439 |
Other, net | 2,707 | (4,821) | 694 |
Net cash provided by (used in) financing activities | (2,053) | (17,126) | (14,697) |
Effect of exchange rate changes on cash | (39) | (74) | (92) |
Net increase (decrease) in cash | (162) | (607) | 1,187 |
Cash at beginning of year | 1,641 | 2,160 | |
Reclassification to assets held for sale | 0 | 88 | (24) |
Cash at end of year | 1,479 | 1,641 | 2,160 |
Interest: | |||
Third party | (279) | (1,656) | (1,782) |
Intercompany | 0 | 2 | 33 |
Taxes: | |||
Income tax authorities | (500) | (719) | (635) |
Intercompany | (829) | (1,172) | (210) |
Aer Cap | |||
Non-cash financing and investing activities: | |||
Consideration received from sale of shares | 500 | 0 | 0 |
AIG Capital Corporation [Member] | |||
Non-cash financing and investing activities: | |||
Return of capital | 4,800 | ||
Reclassifications and Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (4,992) | (19,443) | (12,430) |
Cash flows from investing activities: | |||
Sales of investments | (4,877) | (2,040) | (3,199) |
Proceeds from divested businesses, net | 0 | 0 | 0 |
Purchase of investments | (4,877) | (2,040) | (3,199) |
Loans to subsidiaries - net | (284) | (615) | (4,055) |
Contributions to subsidiaries - net | 565 | 148 | (2,082) |
Net change in restricted cash | 0 | 0 | 0 |
Net change in short-term investments | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided by investing activities | (849) | (763) | (1,973) |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Issuance of Common Stock | 0 | 0 | 0 |
Purchase of Common Stock | 0 | 0 | 0 |
Intercompany loans - net | 284 | 615 | 4,055 |
Cash dividends paid | (4,992) | (19,443) | (12,430) |
Other, net | 565 | 148 | (2,082) |
Net cash provided by (used in) financing activities | 5,841 | 20,206 | 14,403 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash | 0 | 0 | |
Reclassification to assets held for sale | 0 | 0 | |
Cash at end of year | 0 | ||
Interest: | |||
Third party | 0 | 0 | 0 |
Intercompany | 0 | 0 | 0 |
Taxes: | |||
Income tax authorities | 0 | 0 | 0 |
Intercompany | $ 0 | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Billions | Feb. 11, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 16, 2015 |
Subsequent Event [Line Items] | |||||
Dividends declared per common share | $ 0.81 | $ 0.5 | $ 0.2 | ||
Aggregate remaining authorization amount of common Stock share repurchase | $ 3.3 | $ 4.1 | |||
Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per common share | $ 0.32 | ||||
Authorized amount of common Stock share repurchase | $ 5 | ||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 5.8 | ||||
Date Dividends Declared | Feb. 11, 2016 | ||||
Date Dividends To Be Paid | Mar. 28, 2016 | ||||
Date of Shareholders of Record | Mar. 14, 2016 |
Schedule I Summary of Invest160
Schedule I Summary of Investments - Other than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2015USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 330,213 |
Fair Value | 339,715 |
Amount at which shown in the Balance Sheet | 339,663 |
Fixed maturity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 257,752 |
Fair Value | 265,027 |
Amount at which shown in the Balance Sheet | 265,027 |
U.S. government and government sponsored entities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 5,066 |
Fair Value | 5,212 |
Amount at which shown in the Balance Sheet | 5,212 |
Obligations of states, municipalities and political subdivisions | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 26,079 |
Fair Value | 27,399 |
Amount at which shown in the Balance Sheet | 27,399 |
Non-U.S. government | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 17,803 |
Fair Value | 18,245 |
Amount at which shown in the Balance Sheet | 18,245 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 17,713 |
Fair Value | 18,646 |
Amount at which shown in the Balance Sheet | 18,646 |
All other corporate and debt securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 117,835 |
Fair Value | 119,377 |
Amount at which shown in the Balance Sheet | 119,377 |
Mortgage-backed, asset-backed and collateralized | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 73,256 |
Fair Value | 76,148 |
Amount at which shown in the Balance Sheet | 76,148 |
Equity securities and mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,300 |
Fair Value | 3,836 |
Amount at which shown in the Balance Sheet | 3,836 |
Common Stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,834 |
Fair Value | 3,322 |
Amount at which shown in the Balance Sheet | 3,322 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 5 |
Fair Value | 5 |
Amount at which shown in the Balance Sheet | 5 |
Banks, trust and insurance companies | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,493 |
Fair Value | 2,835 |
Amount at which shown in the Balance Sheet | 2,835 |
Industrial, miscellaneous and all other | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 336 |
Fair Value | 482 |
Amount at which shown in the Balance Sheet | 482 |
Preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 19 |
Fair Value | 22 |
Amount at which shown in the Balance Sheet | 22 |
Mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 447 |
Fair Value | 492 |
Amount at which shown in the Balance Sheet | 492 |
Mortgage and other loans receivable, net of allowance | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 29,565 |
Fair Value | 30,344 |
Amount at which shown in the Balance Sheet | 29,565 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 29,155 |
Fair Value | 29,067 |
Amount at which shown in the Balance Sheet | 29,794 |
Short-term investments, at cost | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 10,132 |
Fair Value | 10,132 |
Amount at which shown in the Balance Sheet | 10,132 |
Derivative assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,309 |
Fair Value | 1,309 |
Amount at which shown in the Balance Sheet | $ 1,309 |
Schedule II Condensed Financ161
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Balance Sheets) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Short-term investments | $ 10,132 | $ 11,243 | ||
Other Investments | 29,794 | 34,518 | ||
Total investments | 338,354 | 355,766 | ||
Cash | 1,629 | 1,758 | $ 2,241 | $ 1,151 |
Loans to subsidiaries | 0 | |||
Deferred income taxes | 20,394 | 19,339 | ||
Investment in consolidated subsidiaries | 0 | |||
Other assets | 11,390 | 12,153 | ||
Total assets | 496,943 | 515,581 | ||
Liabilities: | ||||
Outstanding debt | 29,350 | 31,217 | ||
Loans from subsidiaries | 0 | |||
Total liabilities | 406,733 | 408,309 | ||
AIG Shareholders' equity: | ||||
Common stock | 4,766 | 4,766 | ||
Treasury stock | (30,098) | (19,218) | ||
Additional paid-in capital | 81,510 | 80,958 | ||
Retained earnings | 30,943 | 29,775 | ||
Accumulated other comprehensive income (loss) | 2,537 | 10,617 | ||
Total AIG shareholders' equity | 89,658 | 106,898 | ||
Total liabilities and equity | 496,943 | 515,581 | ||
Parent Company [Member] | ||||
Assets: | ||||
Short-term investments | 4,042 | 6,078 | ||
Other Investments | 7,425 | 11,415 | ||
Total investments | 11,467 | 17,493 | ||
Cash | 34 | 26 | $ 30 | $ 81 |
Loans to subsidiaries | 35,927 | 31,070 | ||
Due from affiliates - net | 1,967 | 3,561 | ||
Intercompany tax receivable | 3,234 | 0 | ||
Deferred income taxes | 17,564 | 18,309 | ||
Investment in consolidated subsidiaries | 51,151 | 62,811 | ||
Other assets | 633 | 1,965 | ||
Total assets | 121,977 | 135,235 | ||
Liabilities: | ||||
Outstanding debt | 19,876 | 21,190 | ||
Loans from subsidiaries | 574 | 951 | ||
Other liabilities (includes intercompany derivative liabilities of $144 in 2015 and $275 in 2014) | 3,885 | 5,853 | ||
Total liabilities | 32,319 | 28,337 | ||
Intercompany derivative liabilities | 144 | 275 | ||
Due to affiliate | 4,059 | 0 | ||
Loans and mortgages payable | 0 | 0 | ||
Intercompany tax payable | 3,916 | 343 | ||
Deferred tax liabilities | 9 | 0 | ||
AIG Shareholders' equity: | ||||
Common stock | 4,766 | 4,766 | ||
Treasury stock | (30,098) | (19,218) | ||
Additional paid-in capital | 81,510 | 80,958 | ||
Retained earnings | 30,943 | 29,775 | ||
Accumulated other comprehensive income (loss) | 2,537 | 10,617 | ||
Total AIG shareholders' equity | 89,658 | 106,898 | ||
Total liabilities and equity | 121,977 | 135,235 | ||
Parent Company [Member] | Series AIGFP | ||||
Liabilities: | ||||
Outstanding debt | 31 | 33 | ||
Parent Company [Member] | MIP | ||||
Liabilities: | ||||
Outstanding debt | 1,372 | 2,870 | ||
Parent Company [Member] | Notes and bonds payable | ||||
Liabilities: | ||||
Outstanding debt | 17,136 | 15,821 | ||
Parent Company [Member] | Junior subordinated debt | ||||
Liabilities: | ||||
Outstanding debt | $ 1,337 | $ 2,466 |
Schedule II Condensed Financ162
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Income) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||||||||||
Net realized capital gains (losses) | $ 776 | $ 739 | $ 1,939 | ||||||||
Other income | 4,088 | 6,117 | 6,866 | ||||||||
Expenses | |||||||||||
Interest expense | 1,281 | 1,718 | 2,142 | ||||||||
Net losses on extinguishment of debt | $ 0 | $ 346 | $ 342 | $ 68 | $ 1,268 | $ 742 | $ 34 | $ 238 | 756 | 2,282 | 651 |
Income from continuing operations before income tax expense (benefit) | (2,932) | (115) | 2,552 | 3,776 | 729 | 3,019 | 4,480 | 2,273 | 3,281 | 10,501 | 9,368 |
Income tax expense (benefit) | 1,059 | 2,927 | 360 | ||||||||
Net income (loss) attributable to AIG from continuing operations | 2,196 | 7,579 | 9,001 | ||||||||
Income (loss) from discontinued operations | 0 | (17) | 16 | 1 | (35) | 2 | 30 | (47) | 0 | (50) | 84 |
Net income attributable to AIG | $ (1,841) | $ (231) | $ 1,800 | $ 2,468 | $ 655 | $ 2,192 | $ 3,073 | $ 1,609 | 2,196 | 7,529 | 9,085 |
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Equity in undistributed net income (loss) of consolidated subsidiaries | (2,929) | (5,573) | (2,226) | ||||||||
Dividend income from consolidated subsidiaries | 6,883 | 15,023 | 9,864 | ||||||||
Interest income | 342 | 305 | 387 | ||||||||
Net realized capital gains (losses) | (587) | 8 | 169 | ||||||||
Other income | 333 | 1,345 | 931 | ||||||||
Expenses | |||||||||||
Interest expense | 1,049 | 1,507 | 1,938 | ||||||||
Net losses on extinguishment of debt | 703 | 2,248 | 580 | ||||||||
Other expenses | 1,178 | 1,546 | 1,520 | ||||||||
Income from continuing operations before income tax expense (benefit) | 1,112 | 5,807 | 5,087 | ||||||||
Income tax expense (benefit) | (1,086) | (1,735) | (4,012) | ||||||||
Net income (loss) attributable to AIG from continuing operations | 2,198 | 7,542 | 9,099 | ||||||||
Income (loss) from discontinued operations | (2) | (13) | (14) | ||||||||
Net income attributable to AIG | $ 2,196 | $ 7,529 | $ 9,085 |
Schedule II Condensed Financ163
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ (1,841) | $ (231) | $ 1,800 | $ 2,468 | $ 655 | $ 2,192 | $ 3,073 | $ 1,609 | $ 2,196 | $ 7,529 | $ 9,085 |
Other Comprehensive Income (Loss) | (8,086) | 4,257 | (6,237) | ||||||||
Comprehensive income attributable to AIG | (5,884) | 11,786 | 2,871 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 2,196 | 7,529 | 9,085 | ||||||||
Other Comprehensive Income (Loss) | (8,080) | 4,257 | (6,214) | ||||||||
Comprehensive income attributable to AIG | $ (5,884) | $ 11,786 | $ 2,871 |
Schedule II Condensed Financ164
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Cash Flows) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 2,877 | $ 5,007 | $ 5,865 |
Cash flows from investing activities: | |||
Proceeds from divested businesses, net | 0 | 2,348 | 0 |
Purchase of investments | 65,265 | (58,110) | (77,887) |
Net change in restricted cash | 1,457 | (1,447) | 1,244 |
Net change in short-term investments | 1,163 | 8,760 | 7,842 |
Contributions to subsidiaries - net | 0 | 0 | |
Payments received on mortgages and other loan receivables | 5,104 | 3,856 | 3,420 |
Loans to subsidiaries - net | 0 | 0 | |
Other, net | (1,509) | (1,023) | (1,194) |
Net cash provided by investing activities | 8,462 | 14,284 | 7,099 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 6,867 | 6,687 | 5,235 |
Repayments of long-term debt | (9,805) | (16,160) | (14,197) |
Cash dividends paid | (1,028) | (712) | (294) |
Purchase of Common Stock | (10,691) | (4,902) | (597) |
Other, net | (818) | 6,420 | 1,358 |
Net cash provided by (used in) financing activities | (11,429) | (19,788) | (11,758) |
Net increase (decrease) in cash | (129) | (571) | 1,114 |
Cash at beginning of year | 1,758 | 2,241 | 1,151 |
Cash at end of year | 1,629 | 1,758 | 2,241 |
Interest: | |||
Third party | (1,368) | (3,367) | (3,856) |
Intercompany | 0 | 0 | 0 |
Taxes: | |||
Income tax authorities | (511) | (737) | (796) |
Intercompany | 0 | 0 | 0 |
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 4,443 | 9,316 | 6,422 |
Cash flows from investing activities: | |||
Sales and maturities of investments | 7,609 | 2,996 | 1,074 |
Proceeds from divested businesses, net | 0 | ||
Purchase of investments | (1,881) | (1,051) | (5,506) |
Net change in restricted cash | 0 | (501) | 493 |
Net change in short-term investments | 2,300 | 5,792 | 2,361 |
Contributions to subsidiaries - net | 565 | (148) | (2,081) |
Payments received on mortgages and other loan receivables | 158 | 40 | 351 |
Loans to subsidiaries - net | (83) | 446 | 3,660 |
Other, net | (175) | (141) | 130 |
Net cash provided by investing activities | 8,493 | 7,433 | 482 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 5,540 | 3,247 | 2,015 |
Repayments of long-term debt | (6,504) | (14,468) | (7,439) |
Proceeds from drawdown on the Department of the Treasury Commitment | 0 | 0 | 0 |
Issuance of Common Stock | 0 | 0 | 0 |
Cash dividends paid | (1,028) | (712) | (294) |
Loans from subsidiaries - net | (201) | 110 | (123) |
Purchase of Common Stock | (10,691) | (4,902) | (597) |
Other, net | (44) | (28) | (517) |
Net cash provided by (used in) financing activities | (12,928) | (16,753) | (6,955) |
Net increase (decrease) in cash | 8 | (4) | (51) |
Cash at beginning of year | 26 | 30 | 81 |
Cash at end of year | 34 | 26 | 30 |
Interest: | |||
Third party | (1,030) | (1,624) | (1,963) |
Intercompany | 0 | 5 | (12) |
Taxes: | |||
Income tax authorities | (11) | (18) | (161) |
Intercompany | 829 | 1,172 | 288 |
Non-cash investing/financing activities: | |||
Capital contributions in the form of available for sale securities | 0 | ||
Capital contributions to subsidiaries through forgiveness of loans | 0 | 341 | |
Other capital contributions - net | 494 | 2,457 | 523 |
Return of capital | 0 | 4,836 | 0 |
Return of capital and dividend received in the form of cancellation of intercompany loan | 0 | ||
Return of capital and dividend received in the form of other bonds securities | $ 2,326 | 3,088 | 0 |
Payment of accrued compounded interest of FRBNY Credit Facility | $ 0 | ||
AIG Capital Corporation [Member] | |||
Non-cash investing/financing activities: | |||
Return of capital | $ 4,800 |
Schedule III Supplementary I165
Schedule III Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | $ 11,115 | $ 9,827 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 118,527 | 120,009 | |
Reserve for Unearned Premiums | 21,318 | 21,324 | |
Policy and Contract Claims | 862 | 829 | |
Premiums and Policy Fees | 39,410 | 39,869 | $ 39,839 |
Net Investment Income | 14,053 | 16,079 | 15,810 |
Losses and Loss Expenses Incurred, Benefits | 35,076 | 32,049 | 33,395 |
Amortization of Deferred Policy Acquisition Costs | 5,236 | 5,330 | 5,157 |
Other Operating Expenses | 10,788 | 10,887 | 10,883 |
Net Premiums Written | 33,066 | 34,456 | 34,628 |
Corporate and Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 17 | 18 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 6,421 | 166 | |
Reserve for Unearned Premiums | 357 | (1) | |
Policy and Contract Claims | 11 | 11 | |
Premiums and Policy Fees | 48 | 72 | 76 |
Net Investment Income | 257 | 604 | (195) |
Losses and Loss Expenses Incurred, Benefits | 860 | 915 | 1,546 |
Amortization of Deferred Policy Acquisition Costs | 7 | 59 | (97) |
Other Operating Expenses | 0 | 6 | 8 |
Net Premiums Written | 0 | 0 | 0 |
Non-life insurance companies | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 2,631 | 2,551 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 69,213 | 77,839 | |
Reserve for Unearned Premiums | 20,961 | 21,325 | |
Policy and Contract Claims | 0 | 0 | |
Life insurance companies | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 8,467 | 7,258 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 42,893 | 42,004 | |
Reserve for Unearned Premiums | 0 | 0 | |
Policy and Contract Claims | 851 | 818 | |
Commercial Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Policy Fees | 22,720 | 22,408 | 22,209 |
Net Investment Income | 5,474 | 6,393 | 6,653 |
Losses and Loss Expenses Incurred, Benefits | 20,425 | 16,985 | 17,415 |
Amortization of Deferred Policy Acquisition Costs | 2,342 | 2,512 | 2,418 |
Other Operating Expenses | 3,775 | 3,794 | 4,049 |
Net Premiums Written | 21,486 | 22,044 | 21,928 |
Consumer Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Policy Fees | 16,642 | 17,389 | 17,554 |
Net Investment Income | 8,322 | 9,082 | 9,352 |
Losses and Loss Expenses Incurred, Benefits | 13,791 | 14,149 | 14,434 |
Amortization of Deferred Policy Acquisition Costs | 2,887 | 2,759 | 2,836 |
Other Operating Expenses | 7,013 | 7,087 | 6,826 |
Net Premiums Written | $ 11,580 | $ 12,412 | $ 12,700 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 42,931 | $ 43,425 | $ 43,984 |
Ceded to Other Companies | 8,360 | 8,979 | 10,134 |
Assumed from Other Companies | 2,979 | 3,419 | 4,319 |
Net Amount | $ 37,550 | $ 37,865 | $ 38,169 |
Percent of Amount Assumed to Net | 7.90% | 9.00% | 11.30% |
Reportable Segments | Non-life insurance companies | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 37,698 | $ 39,375 | $ 39,833 |
Ceded to Other Companies | 7,604 | 8,318 | 9,514 |
Assumed from Other Companies | 2,972 | 3,399 | 4,306 |
Net Amount | $ 33,066 | $ 34,456 | $ 34,625 |
Percent of Amount Assumed to Net | 9.00% | 9.90% | 12.40% |
Reportable Segments | Life insurance companies | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 5,227 | $ 4,039 | $ 4,142 |
Ceded to Other Companies | 756 | 661 | 620 |
Assumed from Other Companies | 7 | 20 | 13 |
Net Amount | $ 4,478 | $ 3,398 | $ 3,535 |
Percent of Amount Assumed to Net | 0.20% | 0.60% | 0.40% |
Run-off Insurance Lines | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 6 | $ 11 | $ 9 |
Net Amount | 6 | 11 | 9 |
Long-duration insurance in force | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount, Long-duration insurance in force | 1,051,571 | 1,033,281 | 946,743 |
Long-duration insurance in force ceded | 177,025 | 180,178 | 122,012 |
Contracts in Force Assumed | 372 | 410 | 427 |
Net Amount, Long-duration insurance in force | 874,918 | $ 853,513 | $ 825,158 |
Percent of Amount Assumed to Net | 0.00% | 0.10% | |
Ceded to Other Companies | 177,025 | $ 180,178 | $ 122,012 |
Assumed from Other Companies | 372 | 410 | 427 |
Net Amount | $ 874,918 | $ 853,513 | $ 825,158 |
Percent of Amount Assumed to Net | 0.00% | 0.00% | 0.10% |
Schedule V Valuation and Qua167
Schedule V Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Divested Businesses | |||
Valuation and Qualifying Accounts | |||
Net change | $ 3 | $ 1 | $ (6) |
Allowance for mortgage and other loans receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 271 | 312 | 405 |
Charged to costs and expenses | 58 | (8) | 20 |
Charge offs | (29) | (68) | (116) |
Divested Business | 3 | 1 | (6) |
Other changes | 5 | 34 | 9 |
Balance at the end of the year | 308 | 271 | 312 |
Allowance for mortgage and other loans receivable | Segment Discontinued Operations | |||
Valuation and Qualifying Accounts | |||
Net change | 0 | 0 | |
Allowance for premiums and insurances balances receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 431 | 560 | 624 |
Charged to costs and expenses | 35 | 35 | 14 |
Charge offs | (120) | (99) | (74) |
Other changes | (13) | (65) | (4) |
Balance at the end of the year | 333 | 431 | 560 |
Allowance for reinsurance assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 258 | 276 | 338 |
Charged to costs and expenses | 90 | 4 | (42) |
Charge offs | (67) | (3) | (31) |
Other changes | (9) | (19) | 11 |
Balance at the end of the year | 272 | 258 | 276 |
Federal and foreign valuation allowance for deferred tax assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 1,739 | 3,596 | 8,036 |
Charged to costs and expenses | 110 | (181) | (3,165) |
Charge offs | 0 | 0 | 0 |
Other changes | 1,163 | (1,676) | (1,235) |
Balance at the end of the year | 3,012 | 1,739 | 3,596 |
Federal and foreign valuation allowance for deferred tax assets | Segment Discontinued Operations | |||
Valuation and Qualifying Accounts | |||
Net change | $ 0 | $ 0 | $ (40) |