Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 27, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | AMERICAN INTERNATIONAL GROUP INC | |
Entity Central Index Key | 5,272 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,119,032,377 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fixed maturity securities: | ||
Bonds available for sale, at fair value (amortized cost: 2016 - $241,730; 2015 - $240,968) | $ 253,785 | $ 248,245 |
Other bond securities, at fair value (See Note 5) | 15,344 | 16,782 |
Equity Securities: | ||
Common and preferred stock available for sale, at fair value (cost: 2016 - $1,329; 2015 - $1,379) | 2,770 | 2,915 |
Other common and preferred stock, at fair value (See Note 5) | 877 | 921 |
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2016 - $11; 2015 - $11) | 30,676 | 29,565 |
Other invested assets (portion measured at fair value: 2016 - $7,996; 2015 - $8,912) | 28,480 | 29,794 |
Short-term investments (portion measured at fair value: 2016 - $2,468; 2015 - $2,591) | 10,914 | 10,132 |
Total investments | 342,846 | 338,354 |
Cash | 1,499 | 1,629 |
Accrued investment income | 2,657 | 2,623 |
Premiums and other receivables, net of allowance | 12,414 | 11,451 |
Reinsurance assets, net of allowance | 21,332 | 20,413 |
Deferred income taxes | 20,116 | 20,394 |
Deferred policy acquisition costs | 10,800 | 11,115 |
Other assets, including restricted cash of $181 in 2016 and $170 in 2015 | 11,581 | 11,289 |
Separate account assets, at fair value | 79,532 | 79,574 |
Total assets | 502,777 | 496,842 |
Liabilities: | ||
Liability for unpaid losses and loss adjustment expenses | 73,946 | 74,942 |
Unearned premiums | 22,060 | 21,318 |
Future policy benefits for life and accident and health insurance contracts | 44,573 | 43,585 |
Policyholder contract deposits (portion measured at fair value: 2016 - $3,290; 2015 - $2,325) | 130,007 | 127,588 |
Other policyholder funds (portion measured at fair value: 2016 - $6; 2015 - $6) | 4,203 | 4,212 |
Other liabilities (portion measured at fair value: 2016 - $175; 2015 - $62) | 27,423 | 26,164 |
Long-term debt (portion measured at fair value: 2016 - $3,902; 2015 - $3,670) | 31,952 | 29,249 |
Separate account liabilities | 79,532 | 79,574 |
Total liabilities | $ 413,696 | $ 406,632 |
Contingencies, commitments and guarantees (see Note 9) | ||
AIG shareholders' equity: | ||
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2016 - 1,906,671,492 and 2015 - 1,906,671,492 | $ 4,766 | $ 4,766 |
Treasury stock, at cost; 2016 - 775,933,133 shares; 2015 - 712,754,875 shares of common stock | (33,584) | (30,098) |
Additional paid-in capital | 81,415 | 81,510 |
Retained earnings | 30,396 | 30,943 |
Accumulated other comprehensive income (loss) | 5,525 | 2,537 |
Total AIG shareholders' equity | 88,518 | 89,658 |
Non-redeemable noncontrolling interests | 563 | 552 |
Total equity | 89,081 | 90,210 |
Total liabilities and equity | $ 502,777 | $ 496,842 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical - assets and liabilities) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Bonds available for sale, amortized cost | $ 241,730 | $ 240,968 |
Common and preferred stock available for sale, cost | 1,329 | 1,379 |
Mortgage and other loans receivable, portion measured at fair value | 11 | 11 |
Other invested assets, portion measured at fair value | 7,996 | 8,912 |
Short-term investments, portion measured at fair value | 2,468 | 2,591 |
Other assets, restricted cash | 181 | 170 |
Liabilities: | ||
Policyholder contract deposits, portion measured at fair value | 3,290 | 2,325 |
Other liabilities, portion measured at fair value | 175 | 62 |
Long-term debt, portion measured at fair value | 3,902 | 3,670 |
Other policyholder funds, portion measured at fair value | $ 6 | $ 6 |
CONSOLIDATED BALANCE SHEETS (P4
CONSOLIDATED BALANCE SHEETS (Parenthetical - equity) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
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 | 775,933,133 | 712,754,875 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Premiums | $ 8,806 | $ 8,822 |
Policy fees | 687 | 677 |
Net investment income | 3,013 | 3,838 |
Net realized capital gains (losses): | ||
Total other-than-temporary impairments on available for sale securities | (209) | (87) |
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss) | 7 | (10) |
Net other-than-temporary impairments on available for sale securities recognized in net income | (202) | (97) |
Other realized capital gains | (904) | 1,438 |
Total net realized capital gains | (1,106) | 1,341 |
Other income | 379 | 1,297 |
Total revenues | 11,779 | 15,975 |
Benefits, losses and expenses: | ||
Policyholder benefits and losses incurred | 6,387 | 6,551 |
Interest credited to policyholder account balances | 950 | 935 |
Amortization of deferred policy acquisition costs | 1,262 | 1,350 |
General operating and other expenses | 3,003 | 2,949 |
Interest expense | 306 | 340 |
Loss on extinguishment of debt | 83 | 68 |
Net (gain) loss on sale of properties and divested businesses | 2 | 6 |
Total benefits, losses and expenses | 11,993 | 12,199 |
Income (loss) from continuing operations before income tax expense (benefit) | (214) | 3,776 |
Income tax expense (benefit): | ||
Income tax expense (benefit) | (58) | 1,300 |
Income from continuing operations | (156) | 2,476 |
Income (loss) from discontinued operations, net of income tax expense | (47) | 1 |
Net income | (203) | 2,477 |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | (20) | 9 |
Net income attributable to AIG | (183) | 2,468 |
Net income (loss) attributable to AIG common shareholders | $ (183) | $ 2,468 |
Basic: | ||
Income from continuing operations | $ (0.12) | $ 1.81 |
Income (loss) from discontinued operations - basic (in dollars per share) | (0.04) | 0 |
Net income attributable to AIG | (0.16) | 1.81 |
Diluted: | ||
Income from continuing operations | (0.12) | 1.78 |
Income (loss) from discontinued operations | (0.04) | 0 |
Net income attributable to AIG | $ (0.16) | $ 1.78 |
Weighted average shares outstanding: | ||
Basic | 1,156,548,459 | 1,365,951,690 |
Diluted | 1,156,548,459 | 1,386,263,549 |
Dividends declared per common share | $ 0.32 | $ 0.125 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income | $ (203) | $ 2,477 |
Other comprehensive income (loss), net of tax | ||
Change in unrealized appreciation of fixed maturity investments on which other-than-temporary credit impairments were recognized | (349) | (72) |
Change in unrealized appreciation (depreciation) of all other investments | 3,427 | 539 |
Change in foreign currency translation adjustments | (92) | (459) |
Change in retirement plan liabilities adjustment | 2 | 29 |
Other comprehensive income (loss) | 2,988 | 37 |
Comprehensive income (loss) | 2,785 | 2,514 |
Total comprehensive income (loss) attributable to noncontrolling interests | (20) | 6 |
Comprehensive income attributable to AIG | $ 2,805 | $ 2,508 |
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, 2014 | $ 107,272 | $ 106,898 | $ 4,766 | $ (19,218) | $ 80,958 | $ 29,775 | $ 10,617 | $ 374 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchase of common stock | (1,602) | (1,602) | 0 | (1,602) | ||||
Net income attributable to AIG or other noncontrolling interests | 2,477 | 2,468 | 0 | 0 | 0 | 2,468 | 0 | 9 |
Dividends | (170) | (170) | (170) | |||||
Other comprehensive income (loss) | 37 | 40 | 0 | 0 | 0 | 0 | 40 | (3) |
Net increase due to acquisitions and consolidations | 7 | 7 | ||||||
Contributions from noncontrolling interests | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
Distributions to noncontrolling interests | (4) | 0 | 0 | 0 | 0 | 0 | 0 | (4) |
Other | 349 | 345 | 0 | 0 | 345 | 0 | 0 | 4 |
Balance at Mar. 31, 2015 | 108,367 | 107,979 | 4,766 | (20,820) | 81,303 | 32,073 | 10,657 | 388 |
Balance at Dec. 31, 2015 | 90,210 | 89,658 | 4,766 | (30,098) | 81,510 | 30,943 | 2,537 | 552 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchase of common stock | (3,486) | (3,486) | 0 | (3,486) | 0 | 0 | 0 | 0 |
Net income attributable to AIG or other noncontrolling interests | (203) | (183) | 0 | 0 | 0 | (183) | 0 | (20) |
Dividends | (363) | (363) | 0 | 0 | 0 | (363) | 0 | 0 |
Other comprehensive income (loss) | 2,988 | 2,988 | 0 | 0 | 0 | 0 | 2,988 | 0 |
Current and deferred income taxes | 2 | 2 | 2 | |||||
Net increase due to acquisitions and consolidations | 33 | 33 | ||||||
Contributions from noncontrolling interests | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 2 |
Distributions to noncontrolling interests | (2) | 0 | 0 | 0 | 0 | 0 | 0 | (2) |
Other | (100) | (98) | 0 | 0 | (97) | (1) | 0 | (2) |
Balance at Mar. 31, 2016 | $ 89,081 | $ 88,518 | $ 4,766 | $ (33,584) | $ 81,415 | $ 30,396 | $ 5,525 | $ 563 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ (203) | $ 2,477 |
(Income) loss from discontinued operations | 47 | (1) |
Noncash revenues, expenses, gains and losses included in income: | ||
Net gains on sales of securities available for sale and other assets | 204 | (974) |
Net (gains) losses on sales of divested businesses | 2 | 6 |
Net losses on extinguishment of debt | 83 | 68 |
Unrealized gains in earnings - net | 672 | 457 |
Equity in income from equity method investments, net of dividends or distributions | 346 | (362) |
Depreciation and other amortization | 1,197 | 1,226 |
Impairments of assets | 450 | 212 |
Changes in operating assets and liabilities: | ||
Insurance reserves | 8 | (295) |
Premiums and other receivables and payables - net | (861) | (572) |
Reinsurance assets and funds held under reinsurance treaties | (846) | (272) |
Capitalization of deferred policy acquisition costs | (1,360) | (1,439) |
Current and deferred income taxes - net | (109) | 1,161 |
Other, net | (598) | (1,304) |
Total adjustments | (812) | (2,088) |
Net cash provided by operating activities | (968) | 388 |
Sales or distribution of: | ||
Available for sale investments | 5,710 | 6,189 |
Other securities | 1,681 | 1,094 |
Other invested assets | 1,649 | 1,648 |
Maturities of fixed maturity securities available for sale | 6,069 | 5,251 |
Principal payments received on and sales of mortgage and other loans receivable | 1,133 | 1,047 |
Purchases of: | ||
Available for sale investments | (12,454) | (9,844) |
Other securities | (173) | (476) |
Other invested assets | (743) | (1,132) |
Mortgage and other loans receivable | (2,432) | (1,657) |
Net change in restricted cash | (59) | (47) |
Net change in short-term investments | (577) | (804) |
Other, net | 581 | (955) |
Net cash provided by investing activities | 385 | 314 |
Proceeds from (payments for) | ||
Policyholder contract deposits | 4,812 | 3,713 |
Policyholder contract withdrawals | (3,178) | (3,533) |
Issuance of long-term debt | 3,289 | 2,585 |
Repayments of long-term debt | (958) | (1,893) |
Issuance of Common Stock | 0 | 0 |
Purchase of Common Stock | (3,486) | (1,398) |
Dividends paid | (363) | (170) |
Other, net | 337 | 92 |
Net cash provided by (used in) financing activities | 453 | (604) |
Effect of exchange rate changes on cash | 0 | (33) |
Net increase (decrease) in cash | (130) | 65 |
Cash at beginning of year | 1,629 | 1,758 |
Cash at end of year | $ 1,499 | $ 1,823 |
Supplementary Disclosure of Con
Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash paid during the period for: | ||
Interest | $ 362 | $ 307 |
Taxes | 39 | 140 |
Non-cash investing/financing activities: | ||
Interest credited to policyholder contract deposits included in financing activities | $ 913 | $ 937 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2016 | |
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. These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally inclu ded in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our A nnual Report on Form 10-K for the year ended December 31, 2015 ( 2015 Annual Report). The condensed consolidated financial information as of December 31, 2015 included herein has been derived from the audited Consolidated Fi nancial Statements in the 2015 Annual Report. Certain of our foreign subsidiaries included in the Condensed Consolidated Financial Statements report on different fiscal-period bases. The effect on our consolidated financial condition and results o f operations of all material events occurring at these subsidiaries through the date of each of the periods presented in these Condensed Consolidated Financial Statements has been recorded. In the opinion of management, these Condensed Consolidated Financi al Statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein. Interim-period operating results may not be indicative of the op erating results for a full year. We evaluated the need to recognize or disclose events that occurred subsequent to March 31, 2016 and prior to the issuance of these Condensed Consolidated Financial Statements. Sale of ILFC On May 14, 2014, we completed the sale of 100 percent of the common stock of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. ( AerCap ), in exchange for total consideration of approx imately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares (the AerCap Transaction). The total value of the consideration was based in part on AerCap’s closing price per share of $47.01 on May 13, 2014. ILFC’s results of operat ions are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Condensed Consolidated Statements of Income (Loss) through the date of the completion of the sale. In June 2015, we sold 86.9 million ordinary shares 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 closing 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 available 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. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future ta x operating profitability of the character necessary to realize the net deferred tax asset; liability for unpaid losses and loss adjustment expenses; reinsurance assets; valuation of future policy benefit liabilities and timing and extent of loss recogniti on; valuation of liabilities for guaranteed benefit features of variable annuity products; estimated gross profits to value deferred acquisition costs for investment-oriented products; impairment charges, including other-than-temporary impairments on available for sale securities, impairments on 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 accou nting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and c ash flows could be materially affected. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Standards Adopted During 2016 Accounting for Share-Based Payments with Performance Targets In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite serv ice period be treated as a performance condition. We adopted the standard prospectively on its required effective date of January 1, 2016 . The adoption of this standard did not have a material effect on our consolidated financial condition, res ults of operations or cash flows . Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity In August 2014, the FASB issued an accounting standard that allows a reporting entity to measure the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity using the fair value of either its financial assets or financial liabilities, whichever is more observable. We adopted the standard retrospectively on i ts required effective date of January 1, 2016 . The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or 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, the amendments modify the evaluation of whether limited partnersh ips 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; affect the consolidation analysis of reporting entities that are in volved 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 i n accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. We adopted the standard prospectively on its required effective date of January 1, 2016 . The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Customer’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 arrangement 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 gui dance does not change generally accepted accounting principles applicable to a customer's accounting for service contracts. Consequently, all software licenses will be accounted for consistent with other licenses of intangible assets. We adopted this stan dard prospectively on its required effective date of January 1, 2016 . The adoption of this standard did not 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 am ortization 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 recognition and measurement guidance applicable to debt issuance costs. We adopted this standard on a retrospective basis on January 1, 2016 , its required effective date. Because the new standard did not affect accounting recognition or measurement of debt issuance costs, the adoption of the standard did not have a material effect on our consolidated financial condition, results of operations, or cash flows. Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent) In May 2015, the FASB amended guidance on fair value disclosures for investments for which fair value is measured using the net asset value (NAV) per share (or its equivalent) as a practical expedient. The amendment s in this update remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. In addition, the amendment removes the requirement to make certain disclosures for al l investments that are eligible to be measured at fair value using the NAV per share as a practical expedient. We adopted the standard on its required effective date of January 1, 2016 on a retrospective basis. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Future Application of Accounting Standards R evenue Recognition In May 2014, the FASB issued an accounting standard that supersedes most existi ng 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 beginning after December 15, 2017 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adopt i o n . E a r l y a d o p t i o n i s p e r m i t t e d o n l y a s o f a n n u a l r e p o r t i n g p e r i o d s b e g i n n i n g a f t e r D e c e m b e r 1 5 , 2 0 1 6 , i n c l u d i n g i n t e r i m p e r i o d s w i t h i n t h a t r e p o r t i n g p e r i o d . W e p l a n t o a d o p t t h e s t a n d a r d o n i t s r e q u i r e d e f f e c t i v e d a t e o f J a n u a r y 1 , 2 0 1 8 a n d a r e a s s e s s i n g the impact of the standard on our consolidated financial condition, results of operations and cash flows . Short Duration Insurance Contracts In May 2015, the FASB issued an accounting standard that 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 periods 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 rese rves included 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 percentage 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 assump tions 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 begin ning in the 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 ad option 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 consolidat ion) 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-specifi c credit 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 beginning 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. Leases In February 2016, the FASB issued an accounting standard that will require lessees with lease terms of more than 12 months to recognize a right of use asset and a corresponding lease liability on their balance sheets. For income statement purposes, the FASB retained a dual model, requiring le ases to be classified as either operating leases or finance leases. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted using a modified retrospective a pproach. We expect to adopt this guidance when effective and are currently assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
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 we ll 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 income (loss). Pre-tax operating income (l oss) is derived by excluding certain items from net income (loss) attributable to AIG. See the table below for the items excluded fr om pre-tax operating income (loss) . Th e following tables present our operations by reportable segment: Three Months Ended March 31, 2016 2015 Pre-Tax Pre-Tax Total Operating Total Operating (in millions) Revenues Income (Loss) Revenues Income (Loss) Commercial Insurance Property Casualty $ 5,278 $ 720 $ 5,956 $ 1,170 Mortgage Guaranty 261 163 264 145 Institutional Markets 619 6 624 147 Total Commercial Insurance 6,158 889 6,844 1,462 Consumer Insurance Retirement 2,114 461 2,388 800 Life 1,597 105 1,613 171 Personal Insurance 2,821 222 2,862 (26) Total Consumer Insurance 6,532 788 6,863 945 Corporate and Other * 206 (733) 1,042 162 AIG Consolidation and elimination (159) 10 (159) (42) Total AIG Consolidated revenues and pre-tax operating income $ 12,737 $ 954 $ 14,590 $ 2,527 Reconciling Items from pre-tax operating income to pre-tax income (loss) : Changes in fair value of securities used to hedge guaranteed living benefits 133 133 44 44 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - 40 - (54) Other income (expense) - net - 7 - - Loss on extinguishment of debt - (83) - (68) Net realized capital gains (1,106) (1,106) 1,341 1,341 Income from divested businesses - (2) (15) (21) Non-operating litigation reserves and settlements 34 31 15 7 Reserve development related to non-operating run-off insurance business - - - - Restructuring and other costs - (188) - - Other (19) - - - Pre-tax income (loss) $ 11,779 $ (214) $ 15,975 $ 3,776 * Corporate and Other includes income from assets held by AIG Parent and other corporate subsidiaries. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2016 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 4. FAIR VALUE MEASUREMENTS Fair Value Measurements on a Recurring Basis Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs: Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. W e do not adjust the quoted price for such instruments. Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quote d prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypot hetical market participant would use to value that asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. A ssets and L iabilities M easured at F air V alue on a R ecurring B asis 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 : March 31, 2016 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (b) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 7 $ 2,034 $ - $ - $ - $ 2,041 Obligations of states, municipalities and political subdivisions - 25,562 2,196 - - 27,758 Non-U.S. governments 708 17,877 30 - - 18,615 Corporate debt - 137,924 1,024 - - 138,948 RMBS - 20,060 16,162 - - 36,222 CMBS - 12,069 2,368 - - 14,437 CDO/ABS - 9,172 6,592 - - 15,764 Total bonds available for sale 715 224,698 28,372 - - 253,785 Other bond securities: U.S. government and government sponsored entities 30 3,373 - - - 3,403 Obligations of states, municipalities and political subdivisions - - - - - - Non-U.S. governments - 53 - - - 53 Corporate debt - 1,861 18 - - 1,879 RMBS - 440 1,513 - - 1,953 CMBS - 517 170 - - 687 CDO/ABS - 793 6,576 - - 7,369 Total other bond securities 30 7,037 8,277 - - 15,344 Equity securities available for sale: Common stock 2,274 - - - - 2,274 Preferred stock 23 - - - - 23 Mutual funds 471 2 - - - 473 Total equity securities available for sale 2,768 2 - - - 2,770 Other equity securities 862 - 15 - - 877 Mortgage and other loans receivable - - 11 - - 11 Other invested assets (a) 1 32 263 - - 296 Derivative assets: Interest rate contracts - 4,391 14 - - 4,405 Foreign exchange contracts - 877 - - - 877 Equity contracts 123 69 51 - - 243 Commodity contracts - - - - - - Credit contracts - - 3 - - 3 Other contracts - 1 21 - - 22 Counterparty netting and cash collateral - - - (2,023) (2,036) (4,059) Total derivative assets 123 5,338 89 (2,023) (2,036) 1,491 Short-term investments 1,367 1,101 - - - 2,468 Separate account assets 74,470 5,062 - - - 79,532 Total $ 80,336 $ 243,270 $ 37,027 $ (2,023) $ (2,036) $ 356,574 Liabilities: Policyholder contract deposits $ - $ 39 $ 3,251 $ - $ - $ 3,290 Other policyholder funds 6 - - - - 6 Derivative liabilities: Interest rate contracts - 3,048 62 - - 3,110 Foreign exchange contracts 4 1,371 9 - - 1,384 Equity contracts - 30 - - - 30 Commodity contracts - - - - - - Credit contracts - - 493 - - 493 Other contracts - - 142 - - 142 Counterparty netting and cash collateral - - - (2,023) (992) (3,015) Total derivative liabilities 4 4,449 706 (2,023) (992) 2,144 Long-term debt - 3,718 184 - - 3,902 Other liabilities 134 41 - - - 175 Total $ 144 $ 8,247 $ 4,141 $ (2,023) $ (992) $ 9,517 December 31, 2015 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (b) 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 (a) 2 1 332 - - 335 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 $ 237,684 $ 38,110 $ (1,268) $ (1,554) $ 352,683 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 (a) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $ 7.7 billion and $ 8.6 billion as of March 31, 2016 and December 31, 2015 , respectively. (b) 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 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. Co nversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. During the three -month periods ended March 31, 2016 and 2015 , we transferred $ 83 million and $ 72 million , respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2, because they are no longer considered actively traded. For similar reasons, during the three -mo nth period ended March 31, 2015 , we transferred $ 115 million of securities issued by the U.S. government and government sponsored entities from Level 1 to Level 2; there were no such transfers during the three -month period ended March 31, 2016 . We had no material transfers from Level 2 to Level 1 during the three -month periods ended March 31, 2016 and 2015 . Changes in Level 3 Recurring Fair Value Measurements The following tables present changes during the three -month periods ended March 31, 2016 and 2015 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (lo sses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at March 31, 2016 and 2015 : Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,124 $ - $ 58 $ 14 $ - $ - $ 2,196 $ - Non-U.S. governments 32 - (2) - - - 30 - Corporate debt 1,370 1 (24) 29 121 (473) 1,024 - RMBS 16,537 245 (420) (233) 33 - 16,162 - CMBS 2,585 42 (88) (81) - (90) 2,368 - CDO/ABS 6,169 12 (50) 438 23 - 6,592 - Total bonds available for sale 28,817 300 (526) 167 177 (563) 28,372 - Other bond securities: Corporate debt 17 1 - - - - 18 1 RMBS 1,581 (37) - (13) - (18) 1,513 (45) CMBS 193 (2) - (21) - - 170 (2) CDO/ABS 7,055 (133) - (411) 65 - 6,576 (306) Total other bond securities 8,846 (171) - (445) 65 (18) 8,277 (352) Equity securities available for sale: Common stock - - - - - - - - Total equity securities available for sale - - - - - - - - Other equity securities 14 1 - - - - 15 1 Mortgage and other loans receivable 11 - - - - - 11 - Other invested assets 332 11 (5) (21) - (54) 263 (1) Total $ 38,020 $ 141 $ (531) $ (299) $ 242 $ (635) $ 36,938 $ (352) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2016 Liabilities: Policyholder contract deposits $ 2,289 $ 845 $ - $ 117 $ - $ - $ 3,251 $ 22 Derivative liabilities, net: Interest rate contracts 50 4 - (6) - - 48 (4) Foreign exchange contracts 7 1 - 1 - - 9 (1) Equity contracts (54) 4 - (1) - - (51) (4) Commodity contracts - - - - - - - - Credit contracts 505 (6) - (9) - - 490 14 Other contracts 48 54 - 19 - - 121 (54) Total derivative liabilities, net (a) 556 57 - 4 - - 617 (49) Long-term debt (b) 183 2 - (1) - - 184 (2) Total $ 3,028 $ 904 $ - $ 120 $ - $ - $ 4,052 $ (29) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,159 $ 1 $ 45 $ 65 $ - $ (14) $ 2,256 $ - Non-U.S. governments 30 - - 4 - - 34 - Corporate debt 1,883 - 17 (61) 44 (56) 1,827 - RMBS 16,805 258 (72) 354 - - 17,345 - CMBS 2,696 24 10 30 - (66) 2,694 - CDO/ABS 6,110 33 29 402 - (121) 6,453 - Total bonds available for sale 29,683 316 29 794 44 (257) 30,609 - Other bond securities: Corporate debt - - - - 16 - 16 - RMBS 1,105 (19) - 204 29 (31) 1,288 (31) CMBS 369 - - (100) - - 269 2 CDO/ABS 7,449 132 - (238) 581 (74) 7,850 (40) Total other bond securities 8,923 113 - (134) 626 (105) 9,423 (69) Equity securities available for sale: Common stock 1 - - - - - 1 - Total equity securities available for sale 1 - - - - - 1 - Other equity securities - - - - 22 - 22 (3) Mortgage and other loans receivable 6 - - - - - 6 - Other invested assets 1,042 410 (492) (538) - - 422 - Total $ 39,655 $ 839 $ (463) $ 122 $ 692 $ (362) $ 40,483 $ (72) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2015 Liabilities: Policyholder contract deposits $ 1,509 $ 275 $ - $ 51 $ - $ - $ 1,835 $ (50) Derivative liabilities, net: Interest rate contracts 74 4 - (9) - - 69 (4) Foreign exchange contracts 8 (1) - 1 - - 8 1 Equity contracts (47) (8) - (11) - - (66) 5 Commodity contracts - - - - - - - - Credit contracts 978 (147) - (40) - - 791 28 Other contracts 59 (14) (2) 16 - - 59 14 Total derivative liabilities, net (a) 1,072 (166) (2) (43) - - 861 44 Long-term debt (b) 213 (15) - (12) - - 186 19 Total $ 2,794 $ 94 $ (2) $ (4) $ - $ - $ 2,882 $ 13 (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. Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities shown above are reported in the Condensed Consolidated Statement s of Income (Loss) as follows: Net Net Realized Investment Capital Other (in millions) Income Gains (Losses) Income Total Three Months Ended March 31, 2016 Bonds available for sale $ 298 $ 1 $ 1 $ 300 Other bond securities (34) - (137) (171) Other equity securities 1 - - 1 Other invested assets (2) 51 (38) 11 Three Months Ended March 31, 2015 Bonds available for sale $ 311 $ (9) $ 14 $ 316 Other bond securities 18 6 89 113 Other invested assets (7) 417 - 410 Net Net Realized Investment Capital Other (in millions) Income (Gains) Losses Income Total Three Months Ended March 31, 2016 Policyholder contract deposits - 845 - 845 Derivative liabilities, net - 4 53 57 Long-term debt - - 2 2 Three Months Ended March 31, 2015 Policyholder contract deposits - 275 - 275 Derivative liabilities, net (19) (6) (141) (166) Long-term debt - - (15) (15) The following table present s the gross components of purchases, sales, issues and settlements, net, shown above , for the three -month periods ended March 31, 2016 and 2015 related to Level 3 assets and lia bilities in the Condensed Consolidated Balance Sheets : Purchases, Sales, Issues and (in millions) Purchases Sales Settlements Settlements, Net (a) Three Months Ended March 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 29 $ - $ (15) $ 14 Non-U.S. governments 1 - (1) - Corporate debt 29 - - 29 RMBS 503 (58) (678) (233) CMBS 102 (31) (152) (81) CDO/ABS 539 - (101) 438 Total bonds available for sale 1,203 (89) (947) 167 Other bond securities: RMBS 63 (26) (50) (13) CMBS 53 (71) (3) (21) CDO/ABS 8 (17) (402) (411) Total other bond securities 124 (114) (455) (445) Equity securities available for sale - - - - Equity securities trading 14 - (14) - Other invested assets 9 - (30) (21) Total assets $ 1,350 $ (203) $ (1,446) $ (299) Liabilities: Policyholder contract deposits $ - $ 130 $ (13) $ 117 Derivative liabilities, net (2) - 6 4 Long-term debt (b) - - (1) (1) Total liabilities $ (2) $ 130 $ (8) $ 120 Three Months Ended March 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 107 $ (22) $ (20) $ 65 Non-U.S. governments 6 - (2) 4 Corporate debt 6 (50) (17) (61) RMBS 961 (22) (585) 354 CMBS 72 (27) (15) 30 CDO/ABS 579 (23) (154) 402 Total bonds available for sale 1,731 (144) (793) 794 Other bond securities: RMBS 245 (6) (35) 204 CMBS - (36) (64) (100) CDO/ABS 214 (40) (412) (238) Total other bond securities 459 (82) (511) (134) Equity securities available for sale - - - - Other invested assets 69 (585) (22) (538) Total assets $ 2,259 $ (811) $ (1,326) $ 122 Liabilities: Policyholder contract deposits $ - $ 73 $ (22) $ 51 Derivative liabilities, net (15) - (28) (43) Long-term debt (b) - - (12) (12) Total liabilities $ (15) $ 73 $ (62) $ (4) (a) There were no issuances during the three -month period s ended March 31, 2016 and 2015 , respectively . (b) Includes GIAs, notes, bonds, loans and mortgages payable . Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at March 31, 2016 and 2015 may include changes in fair value that were attr ibutable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities) . Transfers of Level 3 Assets and Liabilities We record transfers of assets and liabilities into or out of Level 3 classification at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. The Net realized and unrealized gains (losses) included in income (loss) or Other comprehensive income (loss) as shown in the table above excludes $ 13 million of net losses and $ 18 million of net gains related to assets and liabilities transferred into Level 3 during the three -month periods ended March 31, 2016 and 2015 , respectively, and includes $ 45 million of net losses and $ 3 million of net gains related to assets and liabilities transferred out of Level 3 during the three -month periods ende d March 31, 2016 and 2015 , respectively. Transfers of Level 3 Assets During the three -month periods ended March 31, 2016 and 2015 , transfers into Level 3 assets primarily included certain investments private placement corporate debt, RMBS and CDO / ABS . Transfers of private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity . The transf ers of investments in RMBS and CDO and certain ABS into Level 3 assets were due to decreases in market transparency and liquidity for individual security types. During the three -month periods ended March 31, 2016 and 2015 , transfers out of Level 3 assets primarily included private placeme nt and other corporate debt,CMBS , CDO/ABS, RMBS and certain investments in municipal securities . Transfers of certain investments municipal securities, corporate debt, RMBS, CMBS and CDO/ABS out of Level 3 assets were based on consideration of market liqu idity as well as related transparency of pricing and associated observable inputs for these investments . Transfers of certain investments in private placement corporate debt and certain ABS out of Level 3 assets were primarily the result of using observab le pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market . Transfers of Level 3 Liabiliti es There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three -month periods ended March 31, 2016 and 2015 . Quantitative Information About Level 3 Fair Value Measurements The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from independent third -party valuation service providers and from internal valuation models. Because input information from third -parties with respect to certain Level 3 instruments (p rimarily CDO/ABS) may not be reasonably available to us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities : Fair Value at March 31, Valuation Range (in millions) 2016 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,330 Discounted cash flow Yield 3.87% - 4.74% (4.31%) Corporate debt 884 Discounted cash flow Yield 3.50% - 9.37% (6.43%) RMBS (a) 13,110 Discounted cash flow Constant prepayment rate 1.29% - 8.81% (5.05%) Loss severity 51.03% - 79.95% (65.49%) Constant default rate 3.91% - 8.89% (6.40%) Yield 3.45% - 6.09% (4.77%) CDO/ABS (a) 6,845 Discounted cash flow Yield 4.05% - 6.81% (5.43%) CMBS 2,187 Discounted cash flow Yield 1.08% - 13.15% (7.12%) Liabilities: Embedded derivatives within Policyholder contract deposits: GMWB and GMAB 2,097 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 20.00% - 40.00% Index Annuities 824 Discounted cash flow Lapse rate 0.75% - 66.00% Mortality multiplier (c) 50.00% - 75.00% Indexed Life 342 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) 2015 Technique Unobservable Input (b) (Weighted Average ) Assets: Obligations of states, municipalities and political subdivisions $ 1,217 Discounted cash flow Yield 4.32% - 5.10% (4.71%) 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 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% (a) Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tra nches 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) Rep resents 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 an d GMAB, and the 1975-1980 Modified Basic Table for index annuities. The ranges of reported inputs for Obligations of states, municipalities and political subdivisions, Corporate debt, RMBS, CDO/ABS, and CMBS valued using a d iscounted cash flow technique consist of one standard deviation in either direction from the value -weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these Level 3 assets and liab ilities. Sensitivity to Changes in Unobservable Inputs We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants wou ld use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following paragraphs provide a general description of sensitivities of significant unobservable inputs along with i nterrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. The effect of a change in a particular assumption in the sensitivity analysis below is considered independently of changes in any other assumptions. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply . Obligations of States, Municipalities and Political Subdivisions The significant unobservable input used in the fair value measurement of certain investments in obligations of states, municipalities and political subdivisions is yield. In general, increases in the yield would decrease the fair value of investments in obligations of states, municipalities and political subdivi sions. Corporate Debt Corporate debt securities included in Level 3 are primarily private placement issuances that are not traded in active markets or that are subject to transfer restrictions. Fair value measurements consider illiquidity and non -transfe rability. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of publicly -traded debt of the issuer or other comparable secur ities, considering illiquidity and structure. The significant unobservable input used in the fair value measurement of corporate debt is the yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. In addition, the m igration in credit quality of a given security generally has a corresponding effect on the fair value measurement of the security. For example, a downward migration of credit quality would increase spreads. Holding U.S. Treasury rates constant, an increase in corporate credit spreads would decrease the fair value of corporate debt . RMBS and CDO/ABS The significant unobservable inputs used in fair value measurements of RMBS and certain CDO/ABS valued by third -party valuation service providers are constan t prepayment rates (CPR), loss severity, constant default rates (CDR), and yield. A change in the assumptions used for the probability of default will generally be accompanied by a corresponding change in the assumption used for the loss severity and an in verse change in the assumption used for prepayment rates. In general, increases in CPR, loss severity, CDR, and yield, in isolation, would result in a decrease in the fair value measurement. Changes in fair value based on variations in assumptions generall y cannot be extrapolated because the relationship between the directional change of each input is not usually linear . CMBS The significant unobservable input used in fair value measurements for CMBS is the yield. Prepayment assumptions for each mortgage pool are factored into the yield. CMBS generally feature a lower degree of prepayment risk than RMBS because commercial mortg ages generally contain a penalty for prepayment. In general, increases in the yield would decrease the fair value of CMBS . Embedded derivatives within Policyholder contract deposits Embedded derivatives reported within Policyholder contract deposits include guaranteed minimum withdrawal benefits (GMWB) and guaranteed minimum accumulation benefits (GMAB) within variable annuity products, and interest crediting rates based on market indices within index annuities, indexed life and guaranteed investment contracts (GICs). For any given contract, assumptions for unobservable inputs vary throughout the period over which ca sh flows are projected for purposes of valuing the embedded derivative. The following unobservable inputs are used for valuing embedded derivatives measured at fair value: Long-term equity volatilities represent equity volatility beyond the period for whic h observable equity volatilities are available. Increases in assumed volatility will generally increase the fair value of both the projected cash flows from rider fees as well as the projected cash flows related to benefit payments . Therefore, the net chan ge in the fair value of the liability may be either a decrease or an increase, depending on the relative changes in projected rider fees and projected benefit payments. Equity / interest rate correlation estimates the relationship between changes in equit y returns and interest rates in the economic scenario generator used to value our GMWB and GMAB embedded derivatives. In general, a higher positive correlation assumes that equity markets and interest rates move in a more correlated fashion, which general ly increases the fair value of the liability. Base lapse rate assumptions are determined by company experience and are adjusted at the contract level using a dynamic lapse function, which reduces the base lapse rate when the contract is in-the-money (whe n the contract holder’s guaranteed value is worth more than their underlying account value). Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. Increases in assumed lapse rates will generally decrease the fair va lue of the liability, as fewer policyholders would persist to collect guaranteed withdrawal amounts, but in certain scenarios, increases in assumed lapse rates may increase the fair value of the liability. Mortality rate assumptions, which vary by age and gender, are based on company experience and include a mortality improvement assumption. Increases in assumed mortality rates will decrease the fair value of the liability, while lower mortality rate assumptions will generally increase the fair value of th e liability, because guaranteed payments will be made for a longer period of time. Utilization rate assumptions estimate the timing when policyholders with a GMWB will elect to utilize their benefit and begin taking withdrawals. The assumptions may vary by the type of guarantee, tax-qualified status, the contract’s withdrawal history and the age of the policyholder. Utilization rate assumptions are based on company experience, which includes partial withdrawal behavior. Increases in assumed utilization rat es will generally increase the fair value of the liability . Investments in Certain Entities Carried at Fair Value Using Net Asset Value Per Share The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate NAV per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the NAV per share to measure fair value . March 31, 2016 December 31, 2015 Fair Value Fair Value Using NAV Using NAV Per Share (or Unfunded Per Share (or Unfunded (in millions) Investment Category Includes its equivalent) Commitments its equivalent) Commitments Investment Category Private equity funds: Leveraged buyout Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage $ 1,683 $ 453 $ 1,774 $ 436 Real Estate / Infrastructure Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities 272 217 306 213 Venture capital Early-stage, high-potential, growth companies expected to generate a return through an ev |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2016 | |
INVESTMENTS | |
INVESTMENTS | 5. INVESTMENTS S ecurities A vailable for S ale 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) March 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 1,835 $ 207 $ (1) $ 2,041 $ - Obligations of states, municipalities and political subdivisions 26,014 1,798 (54) 27,758 2 Non-U.S. governments 17,676 1,119 (180) 18,615 - Corporate debt 132,514 8,779 (2,345) 138,948 (104) Mortgage-backed, asset-backed and collateralized: RMBS 34,056 2,672 (506) 36,222 1,018 CMBS 13,813 722 (98) 14,437 93 CDO/ABS 15,822 344 (402) 15,764 31 Total mortgage-backed, asset-backed and collateralized 63,691 3,738 (1,006) 66,423 1,142 Total bonds available for sale (b) 241,730 15,641 (3,586) 253,785 1,040 Equity securities available for sale: Common stock 891 1,396 (13) 2,274 - Preferred stock 19 4 - 23 - Mutual funds 419 56 (2) 473 - Total equity securities available for sale 1,329 1,456 (15) 2,770 - Total $ 243,059 $ 17,097 $ (3,601) $ 256,555 $ 1,040 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 (a) Represents the amount of other-than-temporary impairment s 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 March 31, 2016 and December 31, 2015 , bonds available for sale held by us that were below investment grade or not rated totaled $ 35.6 billion and $ 34.9 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 March 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 2 $ - $ 11 $ 1 $ 13 $ 1 Obligations of states, municipalities and political subdivisions 550 25 545 29 1,095 54 Non-U.S. governments 1,400 52 1,212 128 2,612 180 Corporate debt 17,937 1,053 9,297 1,292 27,234 2,345 RMBS 5,087 151 4,828 355 9,915 506 CMBS 1,340 46 863 52 2,203 98 CDO/ABS 8,208 258 2,221 144 10,429 402 Total bonds available for sale 34,524 1,585 18,977 2,001 53,501 3,586 Equity securities available for sale: Common stock 69 13 - - 69 13 Mutual funds 93 2 - - 93 2 Total equity securities available for sale 162 15 - - 162 15 Total $ 34,686 $ 1,600 $ 18,977 $ 2,001 $ 53,663 $ 3,601 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 At March 31, 2016 , we held 9,760 and 128 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 2,931 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 March 31, 2016 bec ause 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 per formed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and other available market data. Contractual Maturities of Fixed Maturity Securities Available for Sale The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity: Total Fixed Maturity Securities Fixed Maturity Securities in a Loss March 31, 2016 Available for Sale Position Available for Sale (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 8,930 $ 9,092 $ 732 $ 723 Due after one year through five years 49,341 52,088 6,357 6,084 Due after five years through ten years 51,660 53,355 10,954 9,972 Due after ten years 68,108 72,827 15,491 14,175 Mortgage-backed, asset-backed and collateralized 63,691 66,423 23,553 22,547 Total $ 241,730 $ 253,785 $ 57,087 $ 53,501 December 31, 2015 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 Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain oblig ations 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: 2016 2015 Gross Gross Gross Gross Three Months Ended March 31, Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Fixed maturity securities $ 187 $ 549 $ 149 $ 118 Equity securities 32 8 496 5 Total $ 219 $ 557 $ 645 $ 123 For the three -month periods ended March 31, 2016 and 2015 , respectively , the aggregate fair value of available for sale securities sold was $ 6.1 billion and $ 6.9 billion, respectively, which resulted in net realized capital losses of $ 338 m illion and net realized capital gains of $ 522 m illion, respectively. Other Securities Measured at Fair Value The following table presen ts the fair value of other securities measured at fair value based on our election of the fair value option: March 31, 2016 December 31, 2015 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 3,403 21 % $ 3,369 19 % Obligations of states, municipalities and political subdivisions - - 75 - Non-U.S. governments 53 - 50 - Corporate debt 1,879 12 2,035 12 Mortgage-backed, asset-backed and collateralized : RMBS 1,953 12 2,230 13 CMBS 687 4 750 4 CDO/ABS and other collateralized * 7,369 46 8,273 47 Total mortgage-backed, asset-backed and collateralized 10,009 62 11,253 64 Total fixed maturity securities 15,344 95 16,782 95 Equity securities 877 5 921 5 Total $ 16,221 100 % $ 17,703 100 % * Includes $ 592 million and $ 712 million of U.S. Government agency- backed ABS at March 31, 2016 and December 31, 2015 , respectively. Net Investment Income The following table presents the components of Net i nvestment i ncome: Three Months Ended March 31, (in millions) 2016 2015 Fixed maturity securities, including short-term investments $ 2,936 $ 2,883 Equity securities (22) 15 Interest on mortgage and other loans 389 339 Alternative investments * (366) 586 Real estate 53 26 Other investments 137 141 Total investment income 3,127 3,990 Investment expenses 114 152 Net investment income $ 3,013 $ 3,838 * Beginning in the first quarter of 2016, the presentation of income on alternative investments has been refined to include only income from hedge funds, private equity funds and affordable housing partnerships . Prior period disclosures have been reclassified t o conform to this presentation. Hedge funds for which we elected the fair value option are recorded as of the balance sheet date. Other hedge funds are generally reported on a one-month lag, while private equity funds are generally reported on a one-quarter lag. Net Realized Capital Gains and Losses The following table presents the components of Net realized capital gains (losses) : Three Months Ended March 31, (in millions) 2016 2015 Sales of fixed maturity securities $ (362) $ 31 Sales of equity securities 24 491 Other-than-temporary impairments: Severity (2) (2) Change in intent (29) (24) Foreign currency declines (6) (29) Issuer-specific credit events (131) (68) Adverse projected cash flows (36) (5) Provision for loan losses 30 24 Foreign exchange transactions (520) 254 Derivative instruments (84) 208 Impairments on investments in life settlements (157) (70) Other * 167 531 Net realized capital gains (losses) $ (1,106) $ 1,341 * Includes realized gains due to the sale of Class B shares of Prudential Financial, Inc. Change in Unrealized Appreciation (Depreciation) of Investments The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments: Three Months Ended March 31, (in millions) 2016 2015 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ 4,778 $ 2,156 Equity securities (95) (382) Other investments (148) (503) Total increase (decrease) in unrealized appreciation (depreciation) of investments $ 4,535 $ 1,271 Evaluating Investments for Other-Than-Temporary Impairments For a discussion of our policy for evaluating investments for other-than-temporary impairments, see Note 5 to the Consolidated Financial Statements in the 2015 Annual Report. Credit Impairments The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: Three Months Ended March 31, (in millions) 2016 2015 Balance, beginning of year $ 1,747 $ 2,659 Increases due to: Credit impairments on new securities subject to impairment losses 110 15 Additional credit impairments on previously impaired securities 55 22 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell (150) (42) Accretion on securities previously impaired due to credit * (239) (188) Other - - Balance, end of period $ 1,523 $ 2,466 * Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time. Purchased Credit Impaired (PCI) Securities We purchase certain RMBS securities that have experienced deterioration in credit quality since their issuance. We determine, based on our expectations as to the timing and amount of cash flows expected to be received, whether it is probable at acquisition that we will not collect all contractually required payments for these PCI securities, including both principal and interest after considering the effects of prepayments. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security is determined based on our best estimate using key assumptions, such as interest rates, default rates and prepayment speeds. At acquisition, the difference between the undiscounted expected future cash flows of the PCI securities and the recorded investment in the securities represents the initial accretable yield, which is accreted into Net investment income over their remaining lives on a level-yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows represents the non- accretable difference at acquisition. The accretable yield and the non- accretable difference will change over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, which are discussed further below. On a quarterly basis, the undiscounted expected future cash flows associated with PCI securities are re-evaluated based on updates to key assumptions. Declines in undiscounted expected future cash flows due to further credit deterioration as well as changes in the expected timing of the cash flows can result in the recognition of an other -than-temporary impairment charge, as PCI securities are subject to our policy for evaluating investments for other-than-temporary impairment. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI securities will change the accretable yield prospectively. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as adjustments to the accretable yield. The following tables present information on our PCI securities, w hich are included in bonds available for sale: (in millions) At Date of Acquisition Contractually required payments (principal and interest) $ 33,999 Cash flows expected to be collected * 27,609 Recorded investment in acquired securities 18,476 * Represents undiscounted expected cash flows, including both principal and interes t . (in millions) March 31, 2016 December 31, 2015 Outstanding principal balance $ 17,011 $ 16,871 Amortized cost 12,442 12,303 Fair value 12,979 13,164 The following table presents activity for the accretable yield on PCI securities: Three Months Ended March 31, (in millions) 2016 2015 Balance, beginning of period $ 6,846 $ 6,865 Newly purchased PCI securities 206 245 Disposals - - Accretion (214) (220) Effect of changes in interest rate indices (299) (138) Net reclassification to/(from) non-accretable difference, including effects of prepayments 83 13 Balance, end of period $ 6,622 $ 6,765 Pledged Investments Secured Financing and Similar Arrangements We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. O ur secured financing transactions also include those that involve the transfer of securities to financial institutions in excha nge for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts pl us accrued interest, other than those that are accounted for at fair value. Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transaction s. In the event of a decline in the fair value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements. At the termination of the trans actions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively. The following table presents the fair value of securities pledged to counterparties under secured financing transactions, includin g repurchase and securities lending agreements: (in millions) March 31, 2016 December 31, 2015 Fixed maturity securities available for sale $ 1,455 $ 1,145 Other bond securities, at fair value $ 1,897 $ 1,740 At March 31, 2016 and December 31, 2015 , amounts borrowed under repurchase and securities lending agreements totaled $ 3.4 billion and $ 2.9 billion , respectively. The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity : Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2016 Other bond securities: Non-U.S. governments $ - $ - $ - $ 52 $ - $ 52 Corporate debt - 229 447 1,131 - 1,807 Total $ - $ 229 $ 447 $ 1,183 $ - $ 1,859 December 31, 2015 Bonds available for sale: Non-U.S. governments $ - $ 50 $ - $ - $ - $ 50 Other bond securities: Non-U.S. governments - - - 49 - 49 Corporate debt - 33 332 1,326 - 1,691 Total $ - $ 83 $ 332 $ 1,375 $ - $ 1,790 The following table presents the fair value of securities pledged under our securities lending agreements by collateral type and by remaining contractual mat urity : Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2016 Bonds available for sale: Non-U.S. governments $ - $ - $ - $ 54 $ - $ 54 Corporate debt - 101 674 167 8 950 RMBS - - - 451 - 451 Other bond securities: U.S. government and government sponsored entities 30 - - - - 30 RMBS - - - 8 - 8 Total $ 30 $ 101 $ 674 $ 680 $ 8 $ 1,493 December 31, 2015 Bonds available for sale: Non-U.S. governments $ - $ - $ 57 $ - $ - $ 57 Corporate debt - - 914 - - 914 RMBS - - - 124 - 124 Total $ - $ - $ 971 $ 124 $ - $ 1,095 We also enter into agreements in which securities are purchased by us under agreements t o resell (reverse repurchase agreements), which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms. These agreements are recorded at their contracted resale amounts plus accr ued interest, other than those that are accounted for at fair value. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the right to sell or repledge this collateral received. The following table presents information on the fair value of securities pledged to us under reverse repurchase agreeme nts: (in millions) March 31, 2016 December 31, 2015 Securities collateral pledged to us $ 1,282 $ 1,742 Amount sold or repledged by us $ 140 $ - Insurance – Statutory and Other Deposits Total carrying values of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance treaties, were $ 5.5 billion and $ 4.9 billion at March 31, 2016 and December 31, 2015 , respectively. Other Pledges and Restrictions Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $ 47 million of stock in FHLBs at both March 31, 2016 and December 31, 2015 . In addition, our subsidiaries have pledged securities available for sale with a fair value of $ 2.1 billion and $ 1.2 billion at March 31, 2016 and December 31, 2015 , respectively, associated with advances from the FHLBs. Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to t he counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time o f the downgrade. The fair value of securities pledged as collateral with respect to these obligations was approximately $ 2.4 billion at both March 31, 2016 and December 31, 2015 . This collateral p rimarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties. Short-term investments held in escrow accounts or otherwise subject to restriction as to their use w ere $ 496 million and $ 439 million at March 31, 2016 and December 31, 2015 , respectively. |
LENDING ACTIVITIES
LENDING ACTIVITIES | 3 Months Ended |
Mar. 31, 2016 | |
LENDING ACTIVITIES | |
LENDING ACTIVITIES | 6. LENDING ACTIVITIES The following table presents the composition of Mortgage and other loans rec eivable, net : March 31, December 31, (in millions) 2016 2015 Commercial mortgages * $ 22,159 $ 22,067 Residential mortgages 3,084 2,758 Life insurance policy loans 2,568 2,597 Commercial loans, other loans and notes receivable 3,142 2,451 Total mortgage and other loans receivable 30,953 29,873 Allowance for credit losses (277) (308) Mortgage and other loans receivable, net $ 30,676 $ 29,565 * Commercial mortgages primarily represent loans for office s , retail properties and apartments, with exposures in New York and California representing the largest geographic concentrations ( aggregating approximately 23 percent and 12 percent , respectively, at March 31, 2016 , and 22 percent and 12 percent , respectively, at December 31, 2015 ) . Nonperforming loans are 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 followin g table presents the credit quality indicators for commercial mortgag es : Number Percent of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total $ March 31, 2016 Credit Quality Indicator: In good standing 816 $ 4,014 $ 7,567 $ 4,861 $ 1,835 $ 2,255 $ 1,400 $ 21,932 99 % Restructured (a) 5 - 151 18 - 16 - 185 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure 8 3 15 - 6 6 12 42 - Total (b) 829 $ 4,017 $ 7,733 $ 4,879 $ 1,841 $ 2,277 $ 1,412 $ 22,159 100 % Allowance for credit losses: Specific - 4 1 6 1 - 12 - General 41 47 30 6 18 12 154 1 Total allowance for credit losses $ 41 $ 51 $ 31 $ 12 $ 19 $ 12 $ 166 1 % December 31, 2015 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 % (a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings , see Note 6 to the Consolidated Financial Statements in the 2015 Annual Report . (b) Does not reflect a llowance for c redit l osses . (c) Approximately all of the commercial mortgages held at such respective dates were current as to payments of principal and interest . Allowance for Credit Losses See Note 6 to the Consolidated Fi nancial Statements in the 2015 Annual Report for a discussion of our accounting policy for evaluating Mortgage and other loans receivable for impairment. The following table presents a rollforward of the changes in the allowance for losses on Mortgage and other loans receivable: 2016 2015 Three Months Ended March 31, Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 171 $ 137 $ 308 $ 159 $ 112 $ 271 Loans charged off (11) - (11) - (1) (1) Recoveries of loans previously charged off 11 - 11 4 - 4 Net charge-offs - - - 4 (1) 3 Provision for loan losses (5) (26) (31) (20) (4) (24) Other - - - - - - Allowance, end of period $ 166 * $ 111 $ 277 $ 143 * $ 107 $ 250 * Of the total allowance , $ 12 million and $ 45 million relate to individually assessed credit losses on $ 298 million and $ 131 million of commercial mortgage loans at March 31, 2016 and 2015 , respectively. During t he three -month period ended March 31, 2015 , loans with a carrying value of $ 65 million were modified in troubled debt restructurings. No loans were modified in troubled debt restructurings during the three -month period ended March 31, 2016 . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2016 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 7. VARIABLE INTEREST ENTITIES 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 consolidate a VIE, we evaluate the design of the VIE as well as the relate d risks the entity was designed to expose the variable interest holders to. T he primary beneficiary of a VIE is the entity that has both (1) the power to direct the activities of the VIE that most significa ntly 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 . Balance Sheet Classification and Exposure to Loss The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Condensed Consolidated Balance Sheets: (in millions) Real Estate and Investment Entities (d) Securitization Vehicles Structured Investment Vehicle Affordable Housing Partnerships Other Total March 31, 2016 Assets: Bonds available for sale $ - $ 10,294 $ - $ - $ 15 $ 10,309 Other bond securities - 5,379 358 - 9 5,746 Mortgage and other loans receivable 1 1,743 - - 125 1,869 Other invested assets 2,074 467 - 2,846 24 5,411 Other (a) 574 918 58 301 159 2,010 Total assets (b) $ 2,649 $ 18,801 $ 416 $ 3,147 $ 332 $ 25,345 Liabilities: Long-term debt $ 1,545 $ 915 $ 52 $ 1,636 $ 5 $ 4,153 Other (c) 259 194 1 229 146 829 Total liabilities $ 1,804 $ 1,109 $ 53 $ 1,865 $ 151 $ 4,982 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) $ 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 $ 34 $ 1,261 $ 54 $ 1,727 $ 77 $ 3,153 (a) Comprised primarily of Short-term investments and Other assets at March 31, 2016 and December 31, 2015 . (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 March 31, 2016 and December 31, 2015 . (d) At March 31, 2016 and December 31, 2015 , off-balance sheet e xposure primarily consisting of commitments to real estate and investment entities was $ 113 million and $ 131 million, respectively. We calculate our maximum exposure to loss to be ( i ) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VI E. Interest holders in VIEs sponsored by us generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to us, except in limited circumstances when we have provided a guarantee to the VIE’s interest holders. The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs: Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (a) Sheet Total March 31, 2016 Real estate and investment entities (d) $ 512,798 $ 13,724 $ 2,038 $ 15,762 Affordable housing partnerships 4,992 837 - 837 Other 4,367 273 1,099 (b) 1,372 Total (c) $ 522,157 $ 14,834 $ 3,137 $ 17,971 December 31, 2015 Real estate and investment entities (d) $ 21,951 $ 3,072 $ 398 $ 3,470 Affordable housing partnerships 5,255 774 - 774 Other 1,110 215 1,000 (b) 1,215 Total $ 28,316 $ 4,061 $ 1,398 $ 5,459 (a) At March 31, 2016 and December 31, 2015 , $ 14.4 billion and $ 3.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (b) These amounts primarily 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 polic ies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. (c) As discussed in Note 2, on January 1, 2016, we adopted accounting guidance that resulted in an increase in the number of our investment entities classifie d as VIEs. (d) Comprised primarily of hedge funds and private equity funds. See Note 9 to the Consolidated Financial Statements in the 2015 Annual Report for additional information on VIEs. |
DERIVATIVES AND HEDGE ACCOUNTIN
DERIVATIVES AND HEDGE ACCOUNTING | 3 Months Ended |
Mar. 31, 2016 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
DERIVATIVES AND HEDGE ACCOUNTING | 8. DERIVATIVES AND HEDGE ACCOUNTING We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. See Note 10 to the Consolidated Financial Statements in the 2015 Annual Report for a discussion of our accounting policies and procedures regarding derivatives and hedge accounting. Our businesses use derivatives and other instruments as part of their financial risk management. Interest rate derivatives (such as in terest 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 an d liabilities. Foreign exchange derivatives (principally foreign exchange forwards and options) are used to economically mitigate risk associated with non -U.S. dollar denominated debt, net capital exposures, and foreign currency transactions. Equity deriva tives are used to mitigate financial risk embedded in certain insurance liabilities. The derivatives are effective economic hedges of the exposures that they are meant to offset. In addition to hedging activities, we also enter into derivative instruments with respect to investment operations, which may include, among other things, CDSs and purchases of investments with embedded derivatives, such as equity -linked notes and convertible bonds . The following table presents the notional amounts of our derivativ e instruments and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets : March 31, 2016 December 31, 2015 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 $ 512 $ 4 $ 527 $ 3 $ 301 $ 1 $ 725 $ 2 Foreign exchange contracts 2,607 209 1,369 65 2,903 207 914 56 Equity contracts - - 116 13 - - 121 23 Derivatives not designated as hedging instruments: (a) Interest rate contracts 62,278 4,401 36,183 3,107 45,846 3,161 65,733 2,197 Foreign exchange contracts 8,564 668 11,325 1,319 9,472 559 8,900 1,148 Equity contracts 9,648 243 6,040 17 6,656 177 5,028 45 Commodity contracts - - - - - - - - Credit contracts (b) 4 3 1,152 493 4 3 1,289 508 Other contracts (c) 38,550 22 213 142 37,586 23 203 69 Total derivatives, gross $ 122,163 $ 5,550 $ 56,925 $ 5,159 $ 102,768 $ 4,131 $ 82,913 $ 4,048 Counterparty netting (d) (2,023) (2,023) (1,268) (1,268) Cash collateral (e) (2,036) (992) (1,554) (760) Total derivatives on condensed consolidated balance sheets (f) $ 1,491 $ 2,144 $ 1,309 $ 2,020 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b ) As of March 31, 2016 and December 31, 2015 , included super senior multi-sector CDOs with a net notional amount of $ 1.0 billion and $ 1.1 billion (fair value liability of $ 468 million and $ 483 million), respectively. The expected weighted average maturity as of March 31, 2016 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 repre sents the maximum exposure to loss on the portfolio. As of March 31, 2016 and December 31, 2015 , there were no super senior corporate debt/CLOs remaining. (c) Consists primarily of stable value wraps and cont racts with multiple underlying exposures. (d) Represents netting of derivative exposures covered by a qualifying master netting agreement. (e) Represents cash collateral posted and received that is eligible for netting. (f) Freestanding derivatives only, e xcludes Embedded derivatives. Derivative instrument assets and liabilities are recorded in Other Assets and Liabilities, respectively. Fair value of assets related to bifurcated Embedded derivatives was $ 0 at both March 31, 2016 and December 31, 2015. Fair value of liabilities related to bifurcated Embedded derivatives was $ 3.3 billion and $ 2.3 billion, respectively, at March 31, 2016 and December 31, 2015. A bifurcated Embedded d erivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components. Collateral We engage in derivative transactions that are not subject to a clearing requirement directly with unaffiliated third parties, in most cases, under International Swaps and Derivatives Association, Inc. (ISDA) Master Agreements. Many of the ISDA Master Agreements also include Credit Support Annex (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 $ 3.3 billion and $ 3.0 billion at March 31, 2016 and December 31, 2015 , respectively. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $ 2.1 billio n and $ 1.6 billion at March 31, 2016 and December 31, 2015 , respectively. In the case of collateral provided to us under derivative transactions that are not subject to clearing , w e generally can repledge or resell collateral. Offsetting We have elected to present all derivative receivables and derivative payables, and the related cash collateral received and paid, on a net basis on our Condensed Consolidated Balance Sheets when a legally enforceable ISDA Master Agreement exists between us and our derivative counterparty. An ISDA Master Agreement is an agreement governing multiple derivative transactions between two counterparties. The ISDA Master Agreement generally provides for the net settlement of all, or a specified group, of these derivative transactions, as well as transferred collateral, through a single payment, and in a single currency, as applicable. The net settlement provisions apply in the event of a default on, or affecting any, one derivative transaction or a termination event affecting all, or a specified group of, derivative transactions governed by the ISDA Master Agreement. Hedge Accounting We designated certain derivatives ente red 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 val ue of foreign currency denominated available for sale securities attributable to changes in foreign exchange rates. We also designated certain interest rate swaps entered into with third parties as fair value hedges of fixed rate GICs attributable to chang es 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 for eign subsidiaries. For net investment hedge relationships where issued debt is used as a hedging instrument, we assess the hedge effectiveness and measure the amount of ineffectiveness based on changes in spot rates. For net investment hedge relationships that use derivatives as hedging instruments, we assess hedge effectiveness and measure hedge ineffectiveness using changes in forward rates. For the three - month periods ended March 31, 2016 and 2015 , we recognized gai ns (losses) of $ (5) million and $ 94 million, respectively, included in Change in foreign currency translation adjustment in Other comprehensive income related to the net investment hedge relationships. A qualita tive 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 valu e hedging relationships in the Condensed 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) Three Months Ended March 31, 2016 Interest rate contracts : Realized capital gains/(losses) $ 1 $ (1) $ - $ - $ - Other income - 2 - - 2 Gain/(Loss) on extinguishment of debt - - - - - Foreign exchange contracts : Realized capital gains/(losses) 34 (64) - (29) (1) Other income - 7 - - 7 Gain/(Loss) on extinguishment of debt - - - - - Equity contracts : Realized capital gains/(losses) 10 (12) - (2) - Three Months Ended March 31, 2015 Interest rate contracts : Realized capital gains/(losses) $ 1 $ (1) $ - $ - $ - Other income - 3 - - 3 Gain/(Loss) on extinguishment of debt - 13 - - 13 Foreign exchange contracts : Realized capital gains/(losses) 132 (128) - 1 3 Interest credited to policyholder account balances - (1) - - (1) Other income - 6 - - 6 Gain/(Loss) on extinguishment of debt - 16 - - 16 Equity contracts Realized capital gains/(losses) (6) 5 - (1) - 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 hedge relationship. Derivatives Not Designated as Hedging Instruments The following table presents the effect of derivative instruments not designated as hedging instruments i n the Condensed Consolidated Statement s of Income (Loss) : Gains (Losses) Three Months Ended March 31, Recognized in Earnings (in millions) 2016 2015 By Derivative Type: Interest rate contracts $ 770 $ 356 Foreign exchange contracts (28) 322 Equity contracts (131) (90) Commodity contracts - (1) Credit contracts 6 147 Other contracts 16 23 Embedded derivatives (772) (173) Total $ (139) $ 584 By Classification: Policy fees $ 20 $ 19 Net investment income (1) 27 Net realized capital gains (losses) (35) 171 Other income (losses) (130) 362 Policyholder benefits and claims incurred 7 5 Total $ (139) $ 584 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 March 31, 2016 and December 31, 2015 , was approximately $ 2.2 billion and $ 2.0 billion, respectively. The aggregate fair value of assets posted as collateral under these contracts at March 31, 2016 and December 31, 2015 , was $ 2.3 billion and $ 2.1 billion, respectively. We estimate that at March 31, 2016 , based on our outstanding financial derivative transactions, a downgrade of our long-term senior debt r atings to BBB+, BBB or BBB– by Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc., and/or a downgrade to Baa2 or Baa3 by Moody’s Investors’ Service, Inc. would permit counterparties to make additional collateral call s and permit certain counterparties to elect early termination of contracts, resulting in corresponding collateral postings and termination payments in the total am ount of up to approximately $148 million. 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 March 31, 2016 . Factors considered in estimating the termination payments upon downgrade include current market conditions and the terms of the respective CSA provisions. Our estimates are also based on the assumption that counterparties will terminate based on their net exposure to us. The actual termination payments could differ from our estimates given market conditions at the time of downgrade and the level of uncertainty in estimating both the number of counterparties who may elect to exercise their right to terminate and the payment that may be triggered in connection with any such exercise. Hybrid Securities with Embedded Credit Derivatives We invest in hybrid securities (such as credit -linked notes) with the intent of generating income, and not specifically to acquire exposure to embedded derivative risk. As is the case with our other investments in RMBS, CMBS, CDOs and ABS, our investments in these hybrid securities are exposed to losses only up to the amount of our initial investment in the hybrid security. Other than our initial investment in the hybrid securities, we have no further obligation to make payments on the embedded credit derivatives in the related hybrid securities. We elect to account for our investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recogniz ed in Net investment income and Other income. Our investments in these hybrid securities are reported as Other bond securities in the Condensed Consolidated Balance Sheets. The fair values of these hybrid securities were $ 5.3 billion and $ 5.7 billion at March 31, 2016 and December 31, 2015 , respectively . These securities have par amounts of $ 10.9 billion and $ 11.2 billion at March 31, 2016 and December 31, 2015 , respectively, and have remaining stated maturity dates that extend to 2052. |
CONTINGENCIES, COMMITMENTS AND
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 3 Months Ended |
Mar. 31, 2016 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 9. CONTINGENCIES, COMMITMENTS AND GUARANTEES In the normal course of business, various contingent liabilities and commitments are entered into by AIG and our subsidiaries. In addition, AIG Parent guarantees various obligations of certain subsidiaries. Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on AIG’s consolidated financial co ndition or its consolidated results of operations or consolidated cash flows for an individual reporting period. Legal Co ntingencies 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 liabil ity 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 ass erted by its shareholders and others alleging, among other things, breach of fiduciary duties by its directors and officers and violations of insurance laws and regulations, as well as federal and state securities laws. In the case of any derivative action brought on behalf of AIG, any recovery would accrue to the benefit of AIG. Various regulatory and governmental agencies have been reviewing certain transactions and practices of AIG and our subsidiaries in connection with industry-wide and other inquiries into, among other matters, certain business practices of current and former operating insurance subsidiaries. We have cooperated, and will continue to cooperate, in producing documents and other information in response to subpoenas and other requests. AIG ’s Subprime Exposure, AIGFP Credit Default Swap Portfolio and Related Matters AIG, AIG Financial Products Corp. and related subsidiaries (collectively AIGFP), and certain directors and officers of AIG, AIGFP and other AIG subsidiaries have been named in various actions relating to our exposure to the U.S. residential subprime mortgage market, unrealized market valuation losses on AIGFP’s super senior credit default swap portfolio, losses and liquidity constraints relating to our securities lending program and related disclosure and other matters (Subprime Exposure Issues). Consolidated 2008 Securities Litigation. On May 19, 2009, a consolidated class action complaint, resulting from the consolidation of eight purported securities class 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 Southern 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 Exchange 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 Subprime Expo sure 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 payment 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 settlement 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. 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 th e claims in the Individual Securities Litigations in whole or in part. AIG has settled 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 again st AIG pursuant to Section 11 of the Securities Act (the California Action) that is substantially similar to those in the Consolidated 2008 Securities Litigation and the two remaining Individual Securities Litigations pending in the Southern District of Ne w York. On July 10, 2015, AIG filed a motion to stay the California Action. On September 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 Califo rnia appellate court summarily denied AIG’s appeal. On February 8, 2016, AIG filed a petition for review in the California Supreme Court, which was denied on March 30, 2016. On April 11, 2016, AIG filed a demurrer to dismiss all of the claims asserted in t he California Action. 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. On April 18, 2016, the court in the SDNY Action granted the plaintiff’s motion to dismiss, and denied AIG’s motion for summary judgme nt as moot. We have accrued our current estimate of probable loss with respect to these litigations. Starr International Litigation On November 21, 2011, Starr International Company, Inc. (SICO) filed a complaint against the United States in the United States Court of Federal Claims (the Court of Federal Claims), bringing claims, both individually and on behalf of the classes defined below and derivatively on behalf of AIG (the SICO Treasury Action). The complaint challenges the government’s assistance o f 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 com parable firms at the time and violated the Equal Protection, Due Process, and Takings Clauses of the U.S. Constitution. 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 S eptember 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 Januar y 23, 2013, counsel for the Board sent a letter to counsel for SICO describing the process by which our Board considered and refused SICO’s demand and stating the reasons for our Board’s determination. On March 11, 2013, SICO filed a second amended complai nt in the SICO Treasury Action alleging that its demand was wrongfully refused. On June 26, 2013, the Court of Federal Claims granted AIG’s and the United States’ motions to dismiss SICO’s derivative claims in the SICO Treasury Action due to our Board’s re fusal of SICO’s demand and denied the United States’ motion to dismiss SICO’s direct, non-derivative claims. On March 11, 2013, the Court of Federal Claims in the SICO Treasury Action granted SICO’s motion for class certification of two cl asses 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 June 30, 2009 annual meeting of shareholders (the Reverse Stock Split Shareholder Class). SICO has provided notice of class certification to pote ntial members of the classes, who, pursuant to a court order issued on April 25, 2013, had to return opt -in consent forms by September 16, 2013 to participate in either class. 286,908 holders of AIG Common Stock during the two class periods h ave 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 equit y 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 found 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 entere d 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 damage s.” 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 th e United States Court of Appeals 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 t o dismiss SICO’s direct claims, 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 d oes not appeal the dismissal of the derivative claims it asserted on behalf of AIG. In the Court of Federal Claims, the United States has alleged, as an affirmative defense in its answer, that AIG is obligated to indemnify the FRBNY and its representative s, 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 arise 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 process. 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 a nd judgment and a final determination that the United States 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, consoli dated financial condition and results of operations. False Claims Act Complaint On February 25, 2010, a complaint was filed in the United States District Court for the Southern District of California by two individuals (Relators) seeking to assert claims on behalf of the United States against AIG and certain other defendants, including Goldman Sachs and Deutsche Bank, under the False Claims Act. Relators filed a first amended complaint on September 30, 2010, adding certain additional defe ndants, including Bank of America and Société Générale . The first amended complaint alleged that defendants engaged in fraudulent business practices in respect of their activities in the over-the-counter market for collateralized debt obligations, and subm itted 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 the value of the securities that the Maiden Lane Interests acquired from AIG and certain of its counterparties. The first amended complaint sought unspecified damages pursuant to the False Claims Act in the amount of three times the damages allegedly sustained by the United States as well as interest, attorneys’ fees, costs and expenses. The complaint and the first amended complaint were initially filed and maintained under sea l while the United States considered whether to intervene in the action. On or about April 28, 2011, after the United States declined to intervene, the District Court lifted the seal, and Relators served the first amended complaint on AIG on July 11, 2011. On April 19, 2013, the Court granted AIG’s motion to dismiss, dismissing the first amended complaint in its entirety, without prejudice, giving the Relators the opportunity to file a second amended complaint. On May 24, 2013, the Relators filed a second a mended 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 C ourt 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. Liti gation Matters Relating to AIG’s Insurance Operations Caremark. AIG and certain of its subsidiaries have been named defendants in two putative class actions in state court in Alabama that arise out of the 1999 settlement of class and de rivative 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 s ubsidiary of AIG with respect to the 1999 l itigation was expressly stated to be without limit of liability. In the current actions, plaintiffs allege that the judge approving the 1999 settlement was misled as to the extent of available insurance coverage and would not have approved the settlement h ad he known of the existence and/or unlimited nature of the excess policy. They further allege that AIG, its subsidiaries, and Caremark are liable for fraud and suppression for misrepresenting and/or concealing the nature and extent of coverage. The compl aints filed by the plaintiffs and the intervenors request compensatory damages for the 1999 class in the amount of $ 3.2 billion, plus punitive damages. AIG and its subsidiaries deny the allegations of fraud and suppression, assert that information concerning the excess policy was publicly disclosed months prior to the approval of the settlement, that the claims are barred by the statute of limitations, and that the statute cannot be tolled in light of the public disclosure of the excess coverage. The plaintiffs and intervenors , in turn, have asserted that the disclosure was insufficient to inform them of the nature of the coverage and did not start the running of the statute of limitations. On August 15, 2012, the trial court entered an o rder 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 r emanded 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 the settlement approval hearings and that the defen dants breached that duty. On February 22, 2016 , the court rescheduled the trial date to May 16, 2016. Thereafter, the parties settled this matter in principle, subject to formal documentation and court approval. We have accrued our current estimate of loss with respect to this litigation. Regulatory and Related Matters In April 2007, the National Association of 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’ compensation 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-st ate examination were Delaware, Florida, Indiana, 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 iss ues related to certain AIG entities’ writing 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 million 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 regul ations 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 s ubstantially with the compliance plan requirements. 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 peri od, 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 compli ance plan examination is ongoing. There can 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 -sta te examination of certain accident and health products, including travel products, issued by National Union Fire Insurance Company of Pittsburgh, Pa. (National Union), AIG Property Casualty Inc. (formerly Chartis Inc.), on behalf of itself, National Union, and certain of AIG Property Casualty Inc.’s insurance and non -insurance companies (collectively, the AIG PC parties) entered into a Regulatory Settlement Agreement with regulators from 50 U.S. jurisdictions effective November 29, 2012. Under t he agreement, and without admitting any liability for the issues raised in the examination, the AIG PC parties ( i ) paid a civil penalty of $ 50 million, (ii) entered into a corrective action plan describing agreed -upon specific steps and stand ards for evaluating the AIG PC parties’ ongoing compliance with laws and regulations governing the issues identified in the examination, and (iii) agreed to pay a contingent fine in the event that the AIG PC parties fail to satisfy certain terms of the cor rective action plan. National Union and other AIG companies are also currently subject to civil litigation relating to the conduct of their accident and health business, and may be subject to additional litigation relating to the conduct of such business f rom 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 bus iness written by other AIG carriers. 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 $ 2.7 billion at March 31, 2016 . Guarantees Subsidiaries We have issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP and of AIG Markets arising from transactions entered into by AIG Markets. In connection with AIGFP’s business activities, AIGFP has issued, in a limited number of transactions, standby letters of credit or similar facilities to equity investors of structured leasing transactions in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at March 31, 2016 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 standby letter of credit and/or other sources, including payments by the lessee, AIGFP takes an assignment of the equity investor’s rights under the lease of the underlying property. Because the obligations of the lessee under the lease transactions are generally economically defeased , lessee bankruptcy is the most likely circumstance in which AIGFP would be required to pay without reimbursement. Asset Dispositions General We are subject to financial guarantees and indemnity arrangements in connection with the completed sales of businesses pursuant to our asset disposition plan. The various arrangements may be triggered by, among other things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent liabilities, developments in litigation or breaches of representations, warranties or covenants provided by us. These arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable. We are unable to develop a reasonable estimate of the maximum potential payout under certain of these arrangements. Overall, we believe that it is unlikely we will have to make any material payments related to completed sales under these arrangements, and no material liabilities related to these arrangements have been recorded in the Condensed Consolidated Balance Sheets. Other See Note 7 to the Condensed Consolidated Financial Statements for additional discussion on commitments and guarantees associated with VIEs. See Note 8 to the Condensed Consolidated Finan cial Statements for additional disclosures about derivatives. See Note 14 to the Condensed Consolidated Financial Statements for additional disclosures about guarantees of outstanding debt. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2016 | |
EQUITY | |
EQUITY | 10. EQUITY Shares Outstanding The following table presents a rollforward of outstanding shares : Common Treasury Common Stock Stock Issued Stock Outstanding Three Months Ended March 31, 2016 Shares, beginning of year 1,906,671,492 (712,754,875) 1,193,916,617 Shares issued - 10,968 10,968 Shares repurchased - (63,189,226) (63,189,226) Shares, end of period 1,906,671,492 (775,933,133) 1,130,738,359 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 28, 2016, we paid a dividend of $ 0.32 per share on AIG Common Stock to shareholders of record on March 14, 2016. See Note 18 to the Consolidated Financial Statements in the 2015 Annual Report for a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries . Repurchase of AIG Common Stock Our Board of Directors has authorized the repurcha se of shares of AIG Common Stock through a series of actions. On February 11, 2016, our Board of Directors authorized an additional increase of $ 5.0 billion to its previous share repurchase authorization . A s of March 31, 2016, approximately $ 4.6 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 repur chase or automatic repurchase transactions or otherwise (including through the purchase of warrants) . Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans. We repurchased approxi mately 63 million shares of AIG Common Stock in the three-month period ended March 31, 2016 for an aggregate purchase price of approximately $ 3.5 billion, and we repurchased 10 million warrants to purchase shares of AIG Common Stock for an aggregate purchase price of $ 173 million. The timing of any future repurchases will depend on market conditions, our financia l condition, results of operations, liquidity and other factors. Accumulated Other Comprehensive Income The following table presents a roll forward of Accumulated other comprehensive income : Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken Unrealized Appreciation (Depreciation) of All Other Investments Foreign Currency Translation Adjustments Retirement Plan Liabilities Adjustment (in millions) Total Balance, December 31, 2015, net of tax $ 696 $ 5,566 $ (2,879) $ (846) $ 2,537 Change in unrealized appreciation (depreciation) of investments (548) 5,083 - - 4,535 Change in deferred policy acquisition costs adjustment and other 15 (360) - - (345) Change in future policy benefits - (728) - - (728) Change in foreign currency translation adjustments - - (132) - (132) Change in net actuarial loss - - - 12 12 Change in prior service cost - - - (7) (7) Change in deferred tax asset (liability) 184 (568) 40 (3) (347) Total other comprehensive income (loss) (349) 3,427 (92) 2 2,988 Noncontrolling interests - - - - - Balance, March 31, 2016, net of tax $ 347 $ 8,993 $ (2,971) $ (844) $ 5,525 Balance, December 31, 2014, net of tax $ 1,043 $ 12,327 $ (1,784) $ (969) $ 10,617 Change in unrealized appreciation (depreciation) of investments (59) 1,330 - - 1,271 Change in deferred policy acquisition costs adjustment and other (19) 80 - - 61 Change in future policy benefits (23) (380) - - (403) Change in foreign currency translation adjustments - - (632) - (632) Change in net actuarial loss - - - 43 43 Change in prior service credit - - - (12) (12) Change in deferred tax asset (liability) 29 (491) 173 (2) (291) Total other comprehensive income (loss) (72) 539 (459) 29 37 Noncontrolling interests - - (3) - (3) Balance, March 31, 2015, net of tax $ 971 $ 12,866 $ (2,240) $ (940) $ 10,657 The following table presents the other comprehensive income reclassification adjustments for the three - month periods ended March 31, 2016 and 2015 , respectively : Unrealized Appreciation (Depreciation) of Fixed Maturity Investments 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 March 31, 2016 Unrealized change arising during period $ (458) $ 3,640 $ (132) $ 1 $ 3,051 Less: Reclassification adjustments included in net income 75 (355) - (4) (284) Total other comprehensive income (loss), before income tax expense (benefit) (533) 3,995 (132) 5 3,335 Less: Income tax expense (benefit) (184) 568 (40) 3 347 Total other comprehensive income (loss), net of income tax expense (benefit) $ (349) $ 3,427 $ (92) $ 2 $ 2,988 March 31, 2015 Unrealized change arising during period $ (92) $ 1,507 $ (632) $ 7 $ 790 Less: Reclassification adjustments included in net income 9 477 - (24) 462 Total other comprehensive income (loss), before income tax expense (benefit) (101) 1,030 (632) 31 328 Less: Income tax expense (benefit) (29) 491 (173) 2 291 Total other comprehensive income (loss), net of income tax expense (benefit) $ (72) $ 539 $ (459) $ 29 $ 37 The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Condensed Consolidated Statement s of Income (Loss) : Amount Reclassified from Accumulated Other Comprehensive Income Three Months Ended March 31, Affected Line Item in the (in millions) 2016 2015 Condensed Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized Investments $ 75 $ 9 Other realized capital gains Total 75 9 Unrealized appreciation (depreciation) of all other investments Investments (413) 512 Other realized capital gains Deferred policy acquisition costs adjustment 58 (35) Amortization of deferred policy acquisition costs Future policy benefits - - Policyholder benefits and losses incurred Total (355) 477 Change in retirement plan liabilities adjustment Prior-service costs 4 12 * Actuarial losses (8) (36) * Total (4) (24) Total reclassifications for the period $ (284) $ 462 * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 12 to the Condensed Consolidated Financial Statements. |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 3 Months Ended |
Mar. 31, 2016 | |
EARNINGS PER SHARE (EPS) | |
EARNINGS PER SHARE (EPS) | 11. EARNINGS PER SHARE (EPS) The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits. The following table presents the computation of basic and diluted EPS: Three Months Ended March 31, (dollars in millions, except per share data) 2016 2015 Numerator for EPS: Income (loss) from continuing operations $ (156) $ 2,476 Less: Net income from continuing operations attributable to noncontrolling interests (20) 9 Income (loss) attributable to AIG common shareholders from continuing operations (136) 2,467 Income (loss) from discontinued operations, net of income tax expense (47) 1 Net income (loss) attributable to AIG common shareholders $ (183) $ 2,468 Denominator for EPS: Weighted average shares outstanding — basic 1,156,548,459 1,365,951,690 Dilutive shares (a) - 20,311,859 Weighted average shares outstanding — diluted (b) 1,156,548,459 1,386,263,549 Income per common share attributable to AIG: Basic: Income (loss) from continuing operations $ (0.12) $ 1.81 Loss from discontinued operations $ (0.04) $ - Income (loss) attributable to AIG $ (0.16) $ 1.81 Diluted: Income (loss) from continuing operations $ (0.12) $ 1.78 Income (loss) from discontinued operations $ (0.04) $ - Income (loss) attributable to AIG $ (0.16) $ 1.78 (a) Shares in the diluted EPS calculation represent basic shares for the three-month period ended March 31, 2016 due to the net loss in that period. (b) Dilutive shares include our share -based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of shares excluded from diluted shares outstanding was 0.6 and 0.6 million for both the three -month periods ended March 31, 2016 and 2015 , because the effect of including those shares in the calculation would have been anti-dilutive. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 3 Months Ended |
Mar. 31, 2016 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 12. EMPLOYEE BENEFITS We sponsor various defined benefit pension plans, post-retirement medical and life insurance plans for eligible employees and retirees in the U. S. and certain non-U. S. countries. Effective January 1, 2016, the U.S. defined benefit pension plans were frozen for current participants and closed to new hires. Accordingly, compensation-based benefits are no longer credited to the cash balance accounts of plan participants. In addition, we changed the method use d to measure interest cost for pension and postretirement benefits for our U.S. plans and largest non-U.S. plans in the fourth quarter of 2015. Previously, we measured interest cost utilizing a single weighted-average discount rate derived from the yield c urve used to measure the benefit obligations. For 2016, interest cost is measured by applying the specific spot rates along the yield curve to the plans’ corresponding discounted cash flows that comprise the obligation (the Spot Rate Approach). The new met hod provides a more precise measurement of interest cost by aligning the timing of the plans’ discounted cash flows to the corresponding spot rates on the yield curve. We accounted for this change as a change in accounting estimate, which is applied prosp ectively. The measurement of our pension and postretirement benefit obligations was not affected. The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits: Pension Postretirement U.S. Non-U.S. U.S. Non-U.S. (in millions) Plans Plans Total Plans Plans Total Three Months Ended March 31, 2016 Components of net periodic benefit (income) cost: Service cost $ 4 $ 8 $ 12 $ 1 $ 1 $ 2 Interest cost 46 5 51 1 1 2 Expected return on assets (73) (7) (80) - - - Amortization of prior service credit - - - (2) - (2) Amortization of net loss 6 2 8 - - - Curtailment gain - (2) (2) - - - Net periodic benefit (income) cost $ (17) $ 6 $ (11) $ - $ 2 $ 2 Three Months Ended March 31, 2015 Components of net periodic benefit cost: Service cost $ 52 $ 11 $ 63 $ 2 $ 1 $ 3 Interest cost 55 6 61 2 1 3 Expected return on assets (72) (6) (78) - - - Amortization of prior service credit (8) (1) (9) (3) - (3) Amortization of net loss 32 3 35 - - - Net periodic benefit cost $ 59 $ 13 $ 72 $ 1 $ 2 $ 3 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
INCOME TAXES | |
INCOME TAXES | 13. INCOME TAXES Interim Tax Calculation Method We use the estimated annual effective tax rate method in computing our interim tax provision. Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax ra te, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions. Interim Tax Expense (Benefit) For the three -month period ended March 31, 2016 , the effective tax rate on loss from conti nuing operations was 27.1 percent . The effective tax rate on loss from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax charges and relate d interest associated with increases in uncertain tax positions related to cross border financing transactions, partially offset by tax benefits associated with the impact of an agreement reached with the Internal Revenue Service ( IRS ) related to certain t ax issues under audit , reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities and a decrease in the deferred tax asset valuation allowances associated with certain foreign jurisdictio ns. For the three -month period ended March 31, 2015 , the effective tax rate on income from continuing operations was 34.4 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits associated with tax exempt interest income, partially offset by an increase in certain deferred tax asset valuation allowances associated with foreign jurisdictions primarily attributable to changes in statutory tax rates and the net operating loss utilization statutory limitation in Japan. 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 rea lized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a val uation allowance is not needed. Our framework for assessing the recoverability of the deferred tax asset requires us to consider all available evidence, including: the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; the sustainability of recent operating profitability of our subsidiaries; the predictability of future operating profitability of the character necessary to realize the net deferred tax asset; the carryforward period for the net operating los s, capital loss and foreign tax credit carryforwards , including the effect of reversing taxable temporary differences; and prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset. In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operating loss, capital loss and foreign tax credit carryforwards in each appli cable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards , even though the carryforward period for the foreign tax credit is shorter than for the net op erating loss. Our U.S. federal consolidated income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can be offset by 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 offset by the foreign tax credit carryforwards . Accordingly, we utilize both th e net operating loss and foreign tax credit carryforwards concurrently which enables us to realize our tax attributes prior to expiration. As of March 31, 2016 , based on all available evidence, it is more likely than not that the U.S. net operat ing 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 str ategies could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Such potential impact could be material to our consolidated financial condit ion or results of operations for an individual reporting period. For the three -month period ended March 31, 2016 , recent changes in market conditions, in cluding falling interest rates, impacted the unrealized tax gains and los ses in the U.S. Life Insurance Companies’ available for sale securities portfolio, resulting in a de crease to the related deferred tax asset. The deferred tax asset relates to the unrealized losses for which 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 March 31, 2016 , based on all available evidence, we concluded that the valuation allowance should be reduced on a portion of the deferred tax asset related to unrealized tax losses that are more-likely-than-not to be realized. As a result, for the three -month period ended March 31, 2016 , we released $ 800 million 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 three -month period ended March 31, 2016 , we recognized a net de crease of $ 34 million in our deferred tax asset valuation allowance associated with certain foreign jurisdictions , primarily attributable to changes in projections related to Japan . Tax Examinatio ns and Litigation On August 1, 2012, we filed a motion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions in the Southern District of New York . On March 29, 2013, the Southern District of New York denied our motion. On March 17, 2014, the U.S. Court of Appeals for the Second Circuit (the Second Circuit) granted our petition for an immediate appeal of the partial summary judgment decision. On Sep tember 9, 2015, the Second Circuit affirmed the deci sion of the Southern District of New York. On October 13, 2015, we filed a petition for a writ of certiorari to the U.S Supreme Court. On March 7, 2016 the U.S. Supreme Court denied ou r petition for certi orari. As a result , the case will be remanded back to the Southern District of New York for a jury trial. We will vigorously defend our position and continue to believe that we have adequate reserves for any liability that could result from these governme nt actions. We continue to monitor legal and other developments in this area , including recent decisions affecting other taxpayers, and evaluate the ir effect, if any, on our position. Accounting for Uncertainty in Income Taxes At March 31, 2016 and December 31, 2015 , our unrecognized tax benefits, excluding interest and penalties, were $ 4.5 billion and $ 4.3 billion, respectively . The three -month period ended March 31, 2016 reflects an increase in amounts associated with cross border financing transactions , partially offset by benefits realized due to an agreement reached with the IRS related to certain tax issues under audit. At both March 31, 2016 and December 31, 2015 , our unrecognized tax benefits related to tax positions that, if recognized, would not affect the effec tive tax rate because they relate to such factors as the timing, rather the permissibility, of the deduction were $ 0.1 billion . Accordingly, at March 31, 2016 and December 31, 2015 , the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $ 4.4 billion and $ 4.2 billion , respect ively. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At both March 31, 2016 and December 31, 2015 , we had accrued liabilities of $ 1.2 billion for the payment of interest (net of the federal benefit) and penalties. For the three -month periods ended March 31, 2016 and 2015 , we accrued benefits of $ 51 million and $ 12 million, respectively, for the payment of interest and penalties. The reduction in interest from December 31, 201 5 was primarily due to benefits associated with an agreement reached with the IRS related to certain tax issues under audit, partially offset by an increase associated with cross border financing transactions. We regularly evaluate adjustments proposed by taxing authorities. At March 31, 2016 , such propo sed adjustments would not have resulted in a material change to our consolidated financial condition, although it is possible that the effect could be material to our consolidated results of operations for an individual reporting period. Although it is rea sonably 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 o ur consolidated financial condition. |
INFORMATION PROVIDED IN CONNECT
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 3 Months Ended |
Mar. 31, 2016 | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 14. INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT The following C ondensed C onsolidating F inancial S tatements reflect the results of 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 March 31, 2016 Assets: Short-term investments $ 4,391 $ - $ 10,635 $ (4,112) $ 10,914 Other investments (a) 5,437 - 326,495 - 331,932 Total investments 9,828 - 337,130 (4,112) 342,846 Cash 36 7 1,456 - 1,499 Loans to subsidiaries (b) 35,109 - 411 (35,520) - Investment in consolidated subsidiaries (b) 55,010 30,908 - (85,918) - Other assets, including deferred income taxes 24,470 125 137,311 (3,474) 158,432 Total assets $ 124,453 $ 31,040 $ 476,308 $ (129,024) $ 502,777 Liabilities: Insurance liabilities $ - $ - $ 274,789 $ - $ 274,789 Long-term debt 22,133 678 9,141 - 31,952 Other liabilities, including intercompany balances (a) 13,407 54 101,237 (7,743) 106,955 Loans from subsidiaries (b) 395 - 35,125 (35,520) - Total liabilities 35,935 732 420,292 (43,263) 413,696 Total AIG shareholders’ equity 88,518 30,308 55,453 (85,761) 88,518 Non-redeemable noncontrolling interests - - 563 - 563 Total equity 88,518 30,308 56,016 (85,761) 89,081 Total liabilities and equity $ 124,453 $ 31,040 $ 476,308 $ (129,024) $ 502,777 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 23,299 258 135,690 (2,388) 156,859 Total assets $ 121,878 $ 30,613 $ 468,181 $ (123,830) $ 496,842 Liabilities: Insurance liabilities $ - $ - $ 271,645 $ - $ 271,645 Long-term debt 19,777 704 8,768 - 29,249 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 32,220 908 416,118 (42,614) 406,632 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 $ 121,878 $ 30,613 $ 468,181 $ (123,830) $ 496,842 (a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment . (b) Eliminated in consolidation. Condensed Consolidating Statements of Income American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Three Months Ended March 31, 2016 Revenues: Equity in earnings of consolidated subsidiaries * $ (944) $ (1,683) $ - $ 2,627 $ - Other income (63) 5 12,038 (201) 11,779 Total revenues (1,007) (1,678) 12,038 2,426 11,779 Expenses: Interest expense 244 14 49 (1) 306 Loss on extinguishment of debt 77 - 6 - 83 Other expenses 191 7 11,605 (199) 11,604 Total expenses 512 21 11,660 (200) 11,993 Income (loss) from continuing operations before income tax expense (benefit) (1,519) (1,699) 378 2,626 (214) Income tax expense (benefit) (1,337) (6) 1,285 - (58) Income (loss) from continuing operations (182) (1,693) (907) 2,626 (156) Loss from discontinued operations, net of income taxes (1) - (46) - (47) Net income (loss) (183) (1,693) (953) 2,626 (203) Less: Total net loss attributable to noncontrolling interests - - (20) - (20) Net income (loss) attributable to AIG $ (183) $ (1,693) $ (933) $ 2,626 $ (183) Three Months Ended March 31, 2015 Revenues: Equity in earnings of consolidated subsidiaries * $ 2,757 $ 773 $ - $ (3,530) $ - Other income 150 - 15,914 (89) 15,975 Total revenues 2,907 773 15,914 (3,619) 15,975 Expenses: Interest expense 289 16 65 (30) 340 Loss on extinguishment of debt 61 - - 7 68 Other expenses 246 (5) 11,609 (59) 11,791 Total expenses 596 11 11,674 (82) 12,199 Income (loss) from continuing operations before income tax expense (benefit) 2,311 762 4,240 (3,537) 3,776 Income tax expense (benefit) (157) (43) 1,501 (1) 1,300 Income (loss) from continuing operations 2,468 805 2,739 (3,536) 2,476 Income from discontinued operations, net of income taxes - - 1 - 1 Net income (loss) 2,468 805 2,740 (3,536) 2,477 Less: Total net loss attributable to noncontrolling interests - - 9 - 9 Net income (loss) attributable to AIG $ 2,468 $ 805 $ 2,731 $ (3,536) $ 2,468 * Eliminated in consolidation. Condensed Consolidating Statements of Comprehensive Income American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Three Months Ended March 31, 2016 Net income (loss) $ (183) $ (1,693) $ (953) $ 2,626 $ (203) Other comprehensive income (loss) 2,988 (474) 55,554 (55,080) 2,988 Comprehensive income (loss) 2,805 (2,167) 54,601 (52,454) 2,785 Total comprehensive loss attributable to noncontrolling interests - - (20) - (20) Comprehensive income (loss) attributable to AIG $ 2,805 $ (2,167) $ 54,621 $ (52,454) $ 2,805 Three Months Ended March 31, 2015 Net income (loss) $ 2,468 $ 805 $ 2,740 $ (3,536) $ 2,477 Other comprehensive income (loss) 38 908 (1,061) 152 37 Comprehensive income (loss) 2,506 1,713 1,679 (3,384) 2,514 Total comprehensive income attributable to noncontrolling interests - - 6 - 6 Comprehensive income (loss) attributable to AIG $ 2,506 $ 1,713 $ 1,673 $ (3,384) $ 2,508 Condensed Consolidating Statements of Cash Flows American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries * Eliminations * AIG Three Months Ended March 31, 2016 Net cash (used in) provided by operating activities $ 1,483 $ 97 $ (1,481) $ (1,067) $ (968) Cash flows from investing activities: Sales of investments 392 - 17,004 (1,154) 16,242 Purchase of investments (322) - (16,634) 1,154 (15,802) Loans to subsidiaries - net 880 - 180 (1,060) - Contributions from (to) subsidiaries - net 644 - - (644) - Net change in restricted cash - - (59) - (59) Net change in short-term investments (1,022) - 445 - (577) Other, net (127) - 708 - 581 Net cash (used in) provided by investing activities 445 - 1,644 (1,704) 385 Cash flows from financing activities: Issuance of long-term debt 2,986 - 303 - 3,289 Repayments of long-term debt (710) (26) (222) - (958) Purchase of common stock (3,486) - - - (3,486) Intercompany loans - net (180) (3) (877) 1,060 - Cash dividends paid (363) (177) (890) 1,067 (363) Other, net (173) - 1,500 644 1,971 Net cash (used in) provided by financing activities (1,926) (206) (186) 2,771 453 Effect of exchange rate changes on cash - - - - - Change in cash 2 (109) (23) - (130) Cash at beginning of year 34 116 1,479 - 1,629 Cash at end of period $ 36 $ 7 $ 1,456 $ - $ 1,499 Three Months Ended March 31, 2015 Net cash (used in) provided by operating activities $ 1,111 $ 284 $ 2,257 $ (3,264) $ 388 Cash flows from investing activities: Sales of investments 505 - 15,995 (1,271) 15,229 Purchase of investments (897) - (13,483) 1,271 (13,109) Loans to subsidiaries - net 1,091 - 395 (1,486) - Contributions from (to) subsidiaries - net (70) - - 70 - Net change in restricted cash - - (47) - (47) Net change in short-term investments (1,035) - 231 - (804) Other, net - - (955) - (955) Net cash (used in) provided by investing activities (406) - 2,136 (1,416) 314 Cash flows from financing activities: Issuance of long-term debt 2,342 - 243 - 2,585 Repayments of long-term debt (977) - (916) - (1,893) Purchase of common stock (1,398) - - - (1,398) Intercompany loans - net (394) - (1,092) 1,486 - Cash dividends paid (170) (367) (2,897) 3,264 (170) Other, net (69) - 411 (70) 272 Net cash (used in) provided by financing activities (666) (367) (4,251) 4,680 (604) Effect of exchange rate changes on cash - - (33) - (33) Change in cash 39 (83) 109 - 65 Cash at beginning of year 26 91 1,641 - 1,758 Cash at end of period $ 65 $ 8 $ 1,750 $ - $ 1,823 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 2016 period for: Interest: Third party $ (285) $ (24) $ (53) $ - $ (362) Intercompany - - - - - Taxes: Income tax authorities $ (1) $ - $ (38) $ - $ (39) Intercompany 182 - (182) - - Cash (paid) received during the 2015 period for: Interest: Third party $ (240) $ (27) $ (40) $ - $ (307) Intercompany - - - - - Taxes: Income tax authorities $ (1) $ - $ (139) $ - $ (140) Intercompany 291 - (291) - - American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities: Three Months Ended March 31, (in millions) 2016 2015 Intercompany non-cash financing and investing activities: Capital contributions $ 2,904 $ 111 Dividends received in the form of securities 697 140 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2016 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS Dividends Declared On May 2, 2016, our Board of Directors declared a cash dividend on AIG Common Stock of $ 0.32 per share, payable on June 27, 2016 to shareholders of record on June 13, 201 6. Sale of PICC P&C Shares On May 2, 2016, we announced the pricing of the sale of 740 million ordinary H shares of PICC P&C by means of a placing to institutional investors. Upon the closing of the placing, which is scheduled for May 5, 2016, and is subject to customary closing conditions, we anticipate receiving gross proceeds of approximately $1.25 billion and recognizing a pre-tax realized capital gain of approximately $0.9 billion . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
BASIS OF PRESENTATION | |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future ta x operating profitability of the character necessary to realize the net deferred tax asset; liability for unpaid losses and loss adjustment expenses; reinsurance assets; valuation of future policy benefit liabilities and timing and extent of loss recogniti on; valuation of liabilities for guaranteed benefit features of variable annuity products; estimated gross profits to value deferred acquisition costs for investment-oriented products; impairment charges, including other-than-temporary impairments on available for sale securities, impairments on 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 accou nting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and c ash flows could be materially affected. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Future Application of Accounting Standards | Future Application of Accounting Standards R evenue Recognition In May 2014, the FASB issued an accounting standard that supersedes most existi ng 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 beginning after December 15, 2017 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adopt i o n . E a r l y a d o p t i o n i s p e r m i t t e d o n l y a s o f a n n u a l r e p o r t i n g p e r i o d s b e g i n n i n g a f t e r D e c e m b e r 1 5 , 2 0 1 6 , i n c l u d i n g i n t e r i m p e r i o d s w i t h i n t h a t r e p o r t i n g p e r i o d . W e p l a n t o a d o p t t h e s t a n d a r d o n i t s r e q u i r e d e f f e c t i v e d a t e o f J a n u a r y 1 , 2 0 1 8 a n d a r e a s s e s s i n g the impact of the standard on our consolidated financial condition, results of operations and cash flows . Short Duration Insurance Contracts In May 2015, the FASB issued an accounting standard that 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 periods 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 rese rves included 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 percentage 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 assump tions 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 begin ning in the 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 ad option 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 consolidat ion) 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-specifi c credit 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 beginning 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. Leases In February 2016, the FASB issued an accounting standard that will require lessees with lease terms of more than 12 months to recognize a right of use asset and a corresponding lease liability on their balance sheets. For income statement purposes, the FASB retained a dual model, requiring le ases to be classified as either operating leases or finance leases. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted using a modified retrospective a pproach. We expect to adopt this guidance when effective and are currently 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 2016 Accounting for Share-Based Payments with Performance Targets In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite serv ice period be treated as a performance condition. We adopted the standard prospectively on its required effective date of January 1, 2016 . The adoption of this standard did not have a material effect on our consolidated financial condition, res ults of operations or cash flows . Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity In August 2014, the FASB issued an accounting standard that allows a reporting entity to measure the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity using the fair value of either its financial assets or financial liabilities, whichever is more observable. We adopted the standard retrospectively on i ts required effective date of January 1, 2016 . The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or 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, the amendments modify the evaluation of whether limited partnersh ips 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; affect the consolidation analysis of reporting entities that are in volved 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 i n accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. We adopted the standard prospectively on its required effective date of January 1, 2016 . The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Customer’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 arrangement 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 gui dance does not change generally accepted accounting principles applicable to a customer's accounting for service contracts. Consequently, all software licenses will be accounted for consistent with other licenses of intangible assets. We adopted this stan dard prospectively on its required effective date of January 1, 2016 . The adoption of this standard did not 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 am ortization 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 recognition and measurement guidance applicable to debt issuance costs. We adopted this standard on a retrospective basis on January 1, 2016 , its required effective date. Because the new standard did not affect accounting recognition or measurement of debt issuance costs, the adoption of the standard did not have a material effect on our consolidated financial condition, results of operations, or cash flows. Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent) In May 2015, the FASB amended guidance on fair value disclosures for investments for which fair value is measured using the net asset value (NAV) per share (or its equivalent) as a practical expedient. The amendment s in this update remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. In addition, the amendment removes the requirement to make certain disclosures for al l investments that are eligible to be measured at fair value using the NAV per share as a practical expedient. We adopted the standard on its required effective date of January 1, 2016 on a retrospective basis. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
SEGMENT INFORMATION | |
Schedule of continuing operations by reportable segment | Three Months Ended March 31, 2016 2015 Pre-Tax Pre-Tax Total Operating Total Operating (in millions) Revenues Income (Loss) Revenues Income (Loss) Commercial Insurance Property Casualty $ 5,278 $ 720 $ 5,956 $ 1,170 Mortgage Guaranty 261 163 264 145 Institutional Markets 619 6 624 147 Total Commercial Insurance 6,158 889 6,844 1,462 Consumer Insurance Retirement 2,114 461 2,388 800 Life 1,597 105 1,613 171 Personal Insurance 2,821 222 2,862 (26) Total Consumer Insurance 6,532 788 6,863 945 Corporate and Other * 206 (733) 1,042 162 AIG Consolidation and elimination (159) 10 (159) (42) Total AIG Consolidated revenues and pre-tax operating income $ 12,737 $ 954 $ 14,590 $ 2,527 Reconciling Items from pre-tax operating income to pre-tax income (loss) : Changes in fair value of securities used to hedge guaranteed living benefits 133 133 44 44 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - 40 - (54) Other income (expense) - net - 7 - - Loss on extinguishment of debt - (83) - (68) Net realized capital gains (1,106) (1,106) 1,341 1,341 Income from divested businesses - (2) (15) (21) Non-operating litigation reserves and settlements 34 31 15 7 Reserve development related to non-operating run-off insurance business - - - - Restructuring and other costs - (188) - - Other (19) - - - Pre-tax income (loss) $ 11,779 $ (214) $ 15,975 $ 3,776 * Corporate and Other includes income from assets held by AIG Parent and other corporate subsidiaries. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
FAIR VALUE MEASUREMENTS | |
Assets and liabilities measured at fair value on a recurring basis | March 31, 2016 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (b) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 7 $ 2,034 $ - $ - $ - $ 2,041 Obligations of states, municipalities and political subdivisions - 25,562 2,196 - - 27,758 Non-U.S. governments 708 17,877 30 - - 18,615 Corporate debt - 137,924 1,024 - - 138,948 RMBS - 20,060 16,162 - - 36,222 CMBS - 12,069 2,368 - - 14,437 CDO/ABS - 9,172 6,592 - - 15,764 Total bonds available for sale 715 224,698 28,372 - - 253,785 Other bond securities: U.S. government and government sponsored entities 30 3,373 - - - 3,403 Obligations of states, municipalities and political subdivisions - - - - - - Non-U.S. governments - 53 - - - 53 Corporate debt - 1,861 18 - - 1,879 RMBS - 440 1,513 - - 1,953 CMBS - 517 170 - - 687 CDO/ABS - 793 6,576 - - 7,369 Total other bond securities 30 7,037 8,277 - - 15,344 Equity securities available for sale: Common stock 2,274 - - - - 2,274 Preferred stock 23 - - - - 23 Mutual funds 471 2 - - - 473 Total equity securities available for sale 2,768 2 - - - 2,770 Other equity securities 862 - 15 - - 877 Mortgage and other loans receivable - - 11 - - 11 Other invested assets (a) 1 32 263 - - 296 Derivative assets: Interest rate contracts - 4,391 14 - - 4,405 Foreign exchange contracts - 877 - - - 877 Equity contracts 123 69 51 - - 243 Commodity contracts - - - - - - Credit contracts - - 3 - - 3 Other contracts - 1 21 - - 22 Counterparty netting and cash collateral - - - (2,023) (2,036) (4,059) Total derivative assets 123 5,338 89 (2,023) (2,036) 1,491 Short-term investments 1,367 1,101 - - - 2,468 Separate account assets 74,470 5,062 - - - 79,532 Total $ 80,336 $ 243,270 $ 37,027 $ (2,023) $ (2,036) $ 356,574 Liabilities: Policyholder contract deposits $ - $ 39 $ 3,251 $ - $ - $ 3,290 Other policyholder funds 6 - - - - 6 Derivative liabilities: Interest rate contracts - 3,048 62 - - 3,110 Foreign exchange contracts 4 1,371 9 - - 1,384 Equity contracts - 30 - - - 30 Commodity contracts - - - - - - Credit contracts - - 493 - - 493 Other contracts - - 142 - - 142 Counterparty netting and cash collateral - - - (2,023) (992) (3,015) Total derivative liabilities 4 4,449 706 (2,023) (992) 2,144 Long-term debt - 3,718 184 - - 3,902 Other liabilities 134 41 - - - 175 Total $ 144 $ 8,247 $ 4,141 $ (2,023) $ (992) $ 9,517 December 31, 2015 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (b) 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 (a) 2 1 332 - - 335 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 $ 237,684 $ 38,110 $ (1,268) $ (1,554) $ 352,683 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 (a) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $ 7.7 billion and $ 8.6 billion as of March 31, 2016 and December 31, 2015 , respectively. (b) 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 Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,124 $ - $ 58 $ 14 $ - $ - $ 2,196 $ - Non-U.S. governments 32 - (2) - - - 30 - Corporate debt 1,370 1 (24) 29 121 (473) 1,024 - RMBS 16,537 245 (420) (233) 33 - 16,162 - CMBS 2,585 42 (88) (81) - (90) 2,368 - CDO/ABS 6,169 12 (50) 438 23 - 6,592 - Total bonds available for sale 28,817 300 (526) 167 177 (563) 28,372 - Other bond securities: Corporate debt 17 1 - - - - 18 1 RMBS 1,581 (37) - (13) - (18) 1,513 (45) CMBS 193 (2) - (21) - - 170 (2) CDO/ABS 7,055 (133) - (411) 65 - 6,576 (306) Total other bond securities 8,846 (171) - (445) 65 (18) 8,277 (352) Equity securities available for sale: Common stock - - - - - - - - Total equity securities available for sale - - - - - - - - Other equity securities 14 1 - - - - 15 1 Mortgage and other loans receivable 11 - - - - - 11 - Other invested assets 332 11 (5) (21) - (54) 263 (1) Total $ 38,020 $ 141 $ (531) $ (299) $ 242 $ (635) $ 36,938 $ (352) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2016 Liabilities: Policyholder contract deposits $ 2,289 $ 845 $ - $ 117 $ - $ - $ 3,251 $ 22 Derivative liabilities, net: Interest rate contracts 50 4 - (6) - - 48 (4) Foreign exchange contracts 7 1 - 1 - - 9 (1) Equity contracts (54) 4 - (1) - - (51) (4) Commodity contracts - - - - - - - - Credit contracts 505 (6) - (9) - - 490 14 Other contracts 48 54 - 19 - - 121 (54) Total derivative liabilities, net (a) 556 57 - 4 - - 617 (49) Long-term debt (b) 183 2 - (1) - - 184 (2) Total $ 3,028 $ 904 $ - $ 120 $ - $ - $ 4,052 $ (29) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,159 $ 1 $ 45 $ 65 $ - $ (14) $ 2,256 $ - Non-U.S. governments 30 - - 4 - - 34 - Corporate debt 1,883 - 17 (61) 44 (56) 1,827 - RMBS 16,805 258 (72) 354 - - 17,345 - CMBS 2,696 24 10 30 - (66) 2,694 - CDO/ABS 6,110 33 29 402 - (121) 6,453 - Total bonds available for sale 29,683 316 29 794 44 (257) 30,609 - Other bond securities: Corporate debt - - - - 16 - 16 - RMBS 1,105 (19) - 204 29 (31) 1,288 (31) CMBS 369 - - (100) - - 269 2 CDO/ABS 7,449 132 - (238) 581 (74) 7,850 (40) Total other bond securities 8,923 113 - (134) 626 (105) 9,423 (69) Equity securities available for sale: Common stock 1 - - - - - 1 - Total equity securities available for sale 1 - - - - - 1 - Other equity securities - - - - 22 - 22 (3) Mortgage and other loans receivable 6 - - - - - 6 - Other invested assets 1,042 410 (492) (538) - - 422 - Total $ 39,655 $ 839 $ (463) $ 122 $ 692 $ (362) $ 40,483 $ (72) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2015 Liabilities: Policyholder contract deposits $ 1,509 $ 275 $ - $ 51 $ - $ - $ 1,835 $ (50) Derivative liabilities, net: Interest rate contracts 74 4 - (9) - - 69 (4) Foreign exchange contracts 8 (1) - 1 - - 8 1 Equity contracts (47) (8) - (11) - - (66) 5 Commodity contracts - - - - - - - - Credit contracts 978 (147) - (40) - - 791 28 Other contracts 59 (14) (2) 16 - - 59 14 Total derivative liabilities, net (a) 1,072 (166) (2) (43) - - 861 44 Long-term debt (b) 213 (15) - (12) - - 186 19 Total $ 2,794 $ 94 $ (2) $ (4) $ - $ - $ 2,882 $ 13 (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. |
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 Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,124 $ - $ 58 $ 14 $ - $ - $ 2,196 $ - Non-U.S. governments 32 - (2) - - - 30 - Corporate debt 1,370 1 (24) 29 121 (473) 1,024 - RMBS 16,537 245 (420) (233) 33 - 16,162 - CMBS 2,585 42 (88) (81) - (90) 2,368 - CDO/ABS 6,169 12 (50) 438 23 - 6,592 - Total bonds available for sale 28,817 300 (526) 167 177 (563) 28,372 - Other bond securities: Corporate debt 17 1 - - - - 18 1 RMBS 1,581 (37) - (13) - (18) 1,513 (45) CMBS 193 (2) - (21) - - 170 (2) CDO/ABS 7,055 (133) - (411) 65 - 6,576 (306) Total other bond securities 8,846 (171) - (445) 65 (18) 8,277 (352) Equity securities available for sale: Common stock - - - - - - - - Total equity securities available for sale - - - - - - - - Other equity securities 14 1 - - - - 15 1 Mortgage and other loans receivable 11 - - - - - 11 - Other invested assets 332 11 (5) (21) - (54) 263 (1) Total $ 38,020 $ 141 $ (531) $ (299) $ 242 $ (635) $ 36,938 $ (352) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2016 Liabilities: Policyholder contract deposits $ 2,289 $ 845 $ - $ 117 $ - $ - $ 3,251 $ 22 Derivative liabilities, net: Interest rate contracts 50 4 - (6) - - 48 (4) Foreign exchange contracts 7 1 - 1 - - 9 (1) Equity contracts (54) 4 - (1) - - (51) (4) Commodity contracts - - - - - - - - Credit contracts 505 (6) - (9) - - 490 14 Other contracts 48 54 - 19 - - 121 (54) Total derivative liabilities, net (a) 556 57 - 4 - - 617 (49) Long-term debt (b) 183 2 - (1) - - 184 (2) Total $ 3,028 $ 904 $ - $ 120 $ - $ - $ 4,052 $ (29) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,159 $ 1 $ 45 $ 65 $ - $ (14) $ 2,256 $ - Non-U.S. governments 30 - - 4 - - 34 - Corporate debt 1,883 - 17 (61) 44 (56) 1,827 - RMBS 16,805 258 (72) 354 - - 17,345 - CMBS 2,696 24 10 30 - (66) 2,694 - CDO/ABS 6,110 33 29 402 - (121) 6,453 - Total bonds available for sale 29,683 316 29 794 44 (257) 30,609 - Other bond securities: Corporate debt - - - - 16 - 16 - RMBS 1,105 (19) - 204 29 (31) 1,288 (31) CMBS 369 - - (100) - - 269 2 CDO/ABS 7,449 132 - (238) 581 (74) 7,850 (40) Total other bond securities 8,923 113 - (134) 626 (105) 9,423 (69) Equity securities available for sale: Common stock 1 - - - - - 1 - Total equity securities available for sale 1 - - - - - 1 - Other equity securities - - - - 22 - 22 (3) Mortgage and other loans receivable 6 - - - - - 6 - Other invested assets 1,042 410 (492) (538) - - 422 - Total $ 39,655 $ 839 $ (463) $ 122 $ 692 $ (362) $ 40,483 $ (72) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers End Instruments Held (in millions) of Period in Income Income (Loss) Settlements, Net in out of Period at End of Period Three Months Ended March 31, 2015 Liabilities: Policyholder contract deposits $ 1,509 $ 275 $ - $ 51 $ - $ - $ 1,835 $ (50) Derivative liabilities, net: Interest rate contracts 74 4 - (9) - - 69 (4) Foreign exchange contracts 8 (1) - 1 - - 8 1 Equity contracts (47) (8) - (11) - - (66) 5 Commodity contracts - - - - - - - - Credit contracts 978 (147) - (40) - - 791 28 Other contracts 59 (14) (2) 16 - - 59 14 Total derivative liabilities, net (a) 1,072 (166) (2) (43) - - 861 44 Long-term debt (b) 213 (15) - (12) - - 186 19 Total $ 2,794 $ 94 $ (2) $ (4) $ - $ - $ 2,882 $ 13 (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. |
Schedule of net realized and unrealized gains and losses related to Level 3 items | Net Net Realized Investment Capital Other (in millions) Income Gains (Losses) Income Total Three Months Ended March 31, 2016 Bonds available for sale $ 298 $ 1 $ 1 $ 300 Other bond securities (34) - (137) (171) Other equity securities 1 - - 1 Other invested assets (2) 51 (38) 11 Three Months Ended March 31, 2015 Bonds available for sale $ 311 $ (9) $ 14 $ 316 Other bond securities 18 6 89 113 Other invested assets (7) 417 - 410 Net Net Realized Investment Capital Other (in millions) Income (Gains) Losses Income Total Three Months Ended March 31, 2016 Policyholder contract deposits - 845 - 845 Derivative liabilities, net - 4 53 57 Long-term debt - - 2 2 Three Months Ended March 31, 2015 Policyholder contract deposits - 275 - 275 Derivative liabilities, net (19) (6) (141) (166) Long-term debt - - (15) (15) |
Gross components of purchases, sales, issues and settlements, net | Purchases, Sales, Issues and (in millions) Purchases Sales Settlements Settlements, Net (a) Three Months Ended March 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 29 $ - $ (15) $ 14 Non-U.S. governments 1 - (1) - Corporate debt 29 - - 29 RMBS 503 (58) (678) (233) CMBS 102 (31) (152) (81) CDO/ABS 539 - (101) 438 Total bonds available for sale 1,203 (89) (947) 167 Other bond securities: RMBS 63 (26) (50) (13) CMBS 53 (71) (3) (21) CDO/ABS 8 (17) (402) (411) Total other bond securities 124 (114) (455) (445) Equity securities available for sale - - - - Equity securities trading 14 - (14) - Other invested assets 9 - (30) (21) Total assets $ 1,350 $ (203) $ (1,446) $ (299) Liabilities: Policyholder contract deposits $ - $ 130 $ (13) $ 117 Derivative liabilities, net (2) - 6 4 Long-term debt (b) - - (1) (1) Total liabilities $ (2) $ 130 $ (8) $ 120 Three Months Ended March 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 107 $ (22) $ (20) $ 65 Non-U.S. governments 6 - (2) 4 Corporate debt 6 (50) (17) (61) RMBS 961 (22) (585) 354 CMBS 72 (27) (15) 30 CDO/ABS 579 (23) (154) 402 Total bonds available for sale 1,731 (144) (793) 794 Other bond securities: RMBS 245 (6) (35) 204 CMBS - (36) (64) (100) CDO/ABS 214 (40) (412) (238) Total other bond securities 459 (82) (511) (134) Equity securities available for sale - - - - Other invested assets 69 (585) (22) (538) Total assets $ 2,259 $ (811) $ (1,326) $ 122 Liabilities: Policyholder contract deposits $ - $ 73 $ (22) $ 51 Derivative liabilities, net (15) - (28) (43) Long-term debt (b) - - (12) (12) Total liabilities $ (15) $ 73 $ (62) $ (4) (a) There were no issuances during the three -month period s ended March 31, 2016 and 2015 , respectively . (b) Includes GIAs, notes, bonds, loans and mortgages payable . |
Significant unobservable inputs used for recurring fair value measurements | Fair Value at March 31, Valuation Range (in millions) 2016 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,330 Discounted cash flow Yield 3.87% - 4.74% (4.31%) Corporate debt 884 Discounted cash flow Yield 3.50% - 9.37% (6.43%) RMBS (a) 13,110 Discounted cash flow Constant prepayment rate 1.29% - 8.81% (5.05%) Loss severity 51.03% - 79.95% (65.49%) Constant default rate 3.91% - 8.89% (6.40%) Yield 3.45% - 6.09% (4.77%) CDO/ABS (a) 6,845 Discounted cash flow Yield 4.05% - 6.81% (5.43%) CMBS 2,187 Discounted cash flow Yield 1.08% - 13.15% (7.12%) Liabilities: Embedded derivatives within Policyholder contract deposits: GMWB and GMAB 2,097 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 20.00% - 40.00% Index Annuities 824 Discounted cash flow Lapse rate 0.75% - 66.00% Mortality multiplier (c) 50.00% - 75.00% Indexed Life 342 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) 2015 Technique Unobservable Input (b) (Weighted Average ) Assets: Obligations of states, municipalities and political subdivisions $ 1,217 Discounted cash flow Yield 4.32% - 5.10% (4.71%) 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 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% (a) Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tra nches 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) Rep resents 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 an d GMAB, and the 1975-1980 Modified Basic Table for index annuities. |
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share | March 31, 2016 December 31, 2015 Fair Value Fair Value Using NAV Using NAV Per Share (or Unfunded Per Share (or Unfunded (in millions) Investment Category Includes its equivalent) Commitments its equivalent) Commitments Investment Category Private equity funds: Leveraged buyout Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage $ 1,683 $ 453 $ 1,774 $ 436 Real Estate / Infrastructure Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities 272 217 306 213 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 105 35 107 41 Distressed Securities of companies that are in default, under bankruptcy protection, or troubled 142 42 146 41 Other Includes multi-strategy, mezzanine and other strategies 277 267 298 239 Total private equity funds 2,479 1,014 2,631 970 Hedge funds: Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 943 - 1,194 - Long-short Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk 2,647 28 2,978 25 Macro Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions 556 - 555 - Distressed Securities of companies that are in default, under bankruptcy protection or troubled 632 7 699 8 Emerging markets Investments in the financial markets of developing countries 293 - 353 - Other Includes multi-strategy, relative value and other strategies 150 - 167 - Total hedge funds 5,221 35 5,946 33 Total $ 7,700 $ 1,049 $ 8,577 $ 1,003 |
Gains or losses related to the eligible instruments for which AIG elected the fair value option | Three Months Ended March 31, Gain (Loss) (in millions) 2016 2015 Assets: Bond and equity securities $ 50 $ 141 Alternative investments (a) (247) 145 Other, including Short-term investments - 2 Liabilities: Long-term debt (b) (176) (76) Other liabilities - (3) Total gain (loss) $ (373) $ 209 (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 | March 31, 2016 December 31, 2015 Outstanding Outstanding (in millions) Fair Value Principal Amount Difference Fair Value Principal Amount Difference Assets: Mortgage and other loans receivable $ 11 $ 8 $ 3 $ 11 $ 9 $ 2 Liabilities: Long-term debt * $ 3,902 $ 2,800 $ 1,102 $ 3,670 $ 2,675 $ 995 * Includes GIAs, notes, bonds, loans and mortgages payable. |
Fair value assets measured on nonrecurring basis and impairment charges | Assets at Fair Value Impairment Charges Non-Recurring Basis Three Months Ended March 31, (in millions) Level 1 Level 2 Level 3 Total 2016 2015 March 31, 2016 Other investments $ - $ - $ 563 $ 563 $ 2 $ 25 Investments in life settlements - - 405 405 157 70 Other assets - - 9 9 - 4 Total $ - $ - $ 977 $ 977 $ 159 $ 99 December 31, 2015 Other investments $ - $ - $ 1,117 $ 1,117 Investments in life settlements - - 828 828 Other assets - - 129 129 Total $ - $ - $ 2,074 $ 2,074 |
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 March 31, 2016 Assets: Mortgage and other loans receivable $ - $ 134 $ 31,838 $ 31,972 $ 30,665 Other invested assets - 524 2,854 3,378 4,083 Short-term investments - 8,446 - 8,446 8,446 Cash 1,499 - - 1,499 1,499 Liabilities: Policyholder contract deposits associated with investment-type contracts - 339 120,767 121,106 110,192 Other liabilities - 3,355 - 3,355 3,355 Long-term debt - 23,645 4,593 28,238 28,050 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 25,579 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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) March 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 1,835 $ 207 $ (1) $ 2,041 $ - Obligations of states, municipalities and political subdivisions 26,014 1,798 (54) 27,758 2 Non-U.S. governments 17,676 1,119 (180) 18,615 - Corporate debt 132,514 8,779 (2,345) 138,948 (104) Mortgage-backed, asset-backed and collateralized: RMBS 34,056 2,672 (506) 36,222 1,018 CMBS 13,813 722 (98) 14,437 93 CDO/ABS 15,822 344 (402) 15,764 31 Total mortgage-backed, asset-backed and collateralized 63,691 3,738 (1,006) 66,423 1,142 Total bonds available for sale (b) 241,730 15,641 (3,586) 253,785 1,040 Equity securities available for sale: Common stock 891 1,396 (13) 2,274 - Preferred stock 19 4 - 23 - Mutual funds 419 56 (2) 473 - Total equity securities available for sale 1,329 1,456 (15) 2,770 - Total $ 243,059 $ 17,097 $ (3,601) $ 256,555 $ 1,040 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 (a) Represents the amount of other-than-temporary impairment s 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 March 31, 2016 and December 31, 2015 , bonds available for sale held by us that were below investment grade or not rated totaled $ 35.6 billion and $ 34.9 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 March 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 2 $ - $ 11 $ 1 $ 13 $ 1 Obligations of states, municipalities and political subdivisions 550 25 545 29 1,095 54 Non-U.S. governments 1,400 52 1,212 128 2,612 180 Corporate debt 17,937 1,053 9,297 1,292 27,234 2,345 RMBS 5,087 151 4,828 355 9,915 506 CMBS 1,340 46 863 52 2,203 98 CDO/ABS 8,208 258 2,221 144 10,429 402 Total bonds available for sale 34,524 1,585 18,977 2,001 53,501 3,586 Equity securities available for sale: Common stock 69 13 - - 69 13 Mutual funds 93 2 - - 93 2 Total equity securities available for sale 162 15 - - 162 15 Total $ 34,686 $ 1,600 $ 18,977 $ 2,001 $ 53,663 $ 3,601 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 |
The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity | Total Fixed Maturity Securities Fixed Maturity Securities in a Loss March 31, 2016 Available for Sale Position Available for Sale (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 8,930 $ 9,092 $ 732 $ 723 Due after one year through five years 49,341 52,088 6,357 6,084 Due after five years through ten years 51,660 53,355 10,954 9,972 Due after ten years 68,108 72,827 15,491 14,175 Mortgage-backed, asset-backed and collateralized 63,691 66,423 23,553 22,547 Total $ 241,730 $ 253,785 $ 57,087 $ 53,501 December 31, 2015 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 |
The gross realized gains and gross realized losses from sales of AIG's available for sale securities | 2016 2015 Gross Gross Gross Gross Three Months Ended March 31, Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Fixed maturity securities $ 187 $ 549 $ 149 $ 118 Equity securities 32 8 496 5 Total $ 219 $ 557 $ 645 $ 123 |
The fair value of AIG's other securities | March 31, 2016 December 31, 2015 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 3,403 21 % $ 3,369 19 % Obligations of states, municipalities and political subdivisions - - 75 - Non-U.S. governments 53 - 50 - Corporate debt 1,879 12 2,035 12 Mortgage-backed, asset-backed and collateralized : RMBS 1,953 12 2,230 13 CMBS 687 4 750 4 CDO/ABS and other collateralized * 7,369 46 8,273 47 Total mortgage-backed, asset-backed and collateralized 10,009 62 11,253 64 Total fixed maturity securities 15,344 95 16,782 95 Equity securities 877 5 921 5 Total $ 16,221 100 % $ 17,703 100 % * Includes $ 592 million and $ 712 million of U.S. Government agency- backed ABS at March 31, 2016 and December 31, 2015 , respectively. |
Components of net investment income | Three Months Ended March 31, (in millions) 2016 2015 Fixed maturity securities, including short-term investments $ 2,936 $ 2,883 Equity securities (22) 15 Interest on mortgage and other loans 389 339 Alternative investments * (366) 586 Real estate 53 26 Other investments 137 141 Total investment income 3,127 3,990 Investment expenses 114 152 Net investment income $ 3,013 $ 3,838 * Beginning in the first quarter of 2016, the presentation of income on alternative investments has been refined to include only income from hedge funds, private equity funds and affordable housing partnerships . Prior period disclosures have been reclassified t o conform to this presentation. Hedge funds for which we elected the fair value option are recorded as of the balance sheet date. Other hedge funds are generally reported on a one-month lag, while private equity funds are generally reported on a one-quarter lag. |
Components of net realized capital gains (losses) | Three Months Ended March 31, (in millions) 2016 2015 Sales of fixed maturity securities $ (362) $ 31 Sales of equity securities 24 491 Other-than-temporary impairments: Severity (2) (2) Change in intent (29) (24) Foreign currency declines (6) (29) Issuer-specific credit events (131) (68) Adverse projected cash flows (36) (5) Provision for loan losses 30 24 Foreign exchange transactions (520) 254 Derivative instruments (84) 208 Impairments on investments in life settlements (157) (70) Other * 167 531 Net realized capital gains (losses) $ (1,106) $ 1,341 * Includes realized gains due to the sale of Class B shares of Prudential Financial, Inc. |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | Three Months Ended March 31, (in millions) 2016 2015 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ 4,778 $ 2,156 Equity securities (95) (382) Other investments (148) (503) Total increase (decrease) in unrealized appreciation (depreciation) of investments $ 4,535 $ 1,271 |
Credit impairments recognized in earnings for available for sale fixed maturity securities | Three Months Ended March 31, (in millions) 2016 2015 Balance, beginning of year $ 1,747 $ 2,659 Increases due to: Credit impairments on new securities subject to impairment losses 110 15 Additional credit impairments on previously impaired securities 55 22 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell (150) (42) Accretion on securities previously impaired due to credit * (239) (188) Other - - Balance, end of period $ 1,523 $ 2,466 * 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) $ 33,999 Cash flows expected to be collected * 27,609 Recorded investment in acquired securities 18,476 * Represents undiscounted expected cash flows, including both principal and interes t . |
Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date | (in millions) March 31, 2016 December 31, 2015 Outstanding principal balance $ 17,011 $ 16,871 Amortized cost 12,442 12,303 Fair value 12,979 13,164 |
Activity for accretable yield on Purchased Credit Impaired (PCI) Securities | Three Months Ended March 31, (in millions) 2016 2015 Balance, beginning of period $ 6,846 $ 6,865 Newly purchased PCI securities 206 245 Disposals - - Accretion (214) (220) Effect of changes in interest rate indices (299) (138) Net reclassification to/(from) non-accretable difference, including effects of prepayments 83 13 Balance, end of period $ 6,622 $ 6,765 |
Schedule of fair value of securities pledged to counterparties under secured financing transactions | (in millions) March 31, 2016 December 31, 2015 Fixed maturity securities available for sale $ 1,455 $ 1,145 Other bond securities, at fair value $ 1,897 $ 1,740 |
Schedule of fair value of securities pledged to the entity under reverse repurchase agreements | (in millions) March 31, 2016 December 31, 2015 Securities collateral pledged to us $ 1,282 $ 1,742 Amount sold or repledged by us $ 140 $ - |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2016 Other bond securities: Non-U.S. governments $ - $ - $ - $ 52 $ - $ 52 Corporate debt - 229 447 1,131 - 1,807 Total $ - $ 229 $ 447 $ 1,183 $ - $ 1,859 December 31, 2015 Bonds available for sale: Non-U.S. governments $ - $ 50 $ - $ - $ - $ 50 Other bond securities: Non-U.S. governments - - - 49 - 49 Corporate debt - 33 332 1,326 - 1,691 Total $ - $ 83 $ 332 $ 1,375 $ - $ 1,790 Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2016 Bonds available for sale: Non-U.S. governments $ - $ - $ - $ 54 $ - $ 54 Corporate debt - 101 674 167 8 950 RMBS - - - 451 - 451 Other bond securities: U.S. government and government sponsored entities 30 - - - - 30 RMBS - - - 8 - 8 Total $ 30 $ 101 $ 674 $ 680 $ 8 $ 1,493 December 31, 2015 Bonds available for sale: Non-U.S. governments $ - $ - $ 57 $ - $ - $ 57 Corporate debt - - 914 - - 914 RMBS - - - 124 - 124 Total $ - $ - $ 971 $ 124 $ - $ 1,095 |
LENDING ACTIVITIES (Tables)
LENDING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
LENDING ACTIVITIES | |
Composition of Mortgages and other loans receivable | March 31, December 31, (in millions) 2016 2015 Commercial mortgages * $ 22,159 $ 22,067 Residential mortgages 3,084 2,758 Life insurance policy loans 2,568 2,597 Commercial loans, other loans and notes receivable 3,142 2,451 Total mortgage and other loans receivable 30,953 29,873 Allowance for credit losses (277) (308) Mortgage and other loans receivable, net $ 30,676 $ 29,565 * Commercial mortgages primarily represent loans for office s , retail properties and apartments, with exposures in New York and California representing the largest geographic concentrations ( aggregating approximately 23 percent and 12 percent , respectively, at March 31, 2016 , and 22 percent and 12 percent , respectively, at December 31, 2015 ) . |
Schedule of credit quality indicators for the commercial mortgage loans | Number Percent of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total $ March 31, 2016 Credit Quality Indicator: In good standing 816 $ 4,014 $ 7,567 $ 4,861 $ 1,835 $ 2,255 $ 1,400 $ 21,932 99 % Restructured (a) 5 - 151 18 - 16 - 185 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure 8 3 15 - 6 6 12 42 - Total (b) 829 $ 4,017 $ 7,733 $ 4,879 $ 1,841 $ 2,277 $ 1,412 $ 22,159 100 % Allowance for credit losses: Specific - 4 1 6 1 - 12 - General 41 47 30 6 18 12 154 1 Total allowance for credit losses $ 41 $ 51 $ 31 $ 12 $ 19 $ 12 $ 166 1 % December 31, 2015 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 % (a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings , see Note 6 to the Consolidated Financial Statements in the 2015 Annual Report . (b) Does not reflect a llowance for c redit l osses . (c) Approximately all 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 | 2016 2015 Three Months Ended March 31, Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 171 $ 137 $ 308 $ 159 $ 112 $ 271 Loans charged off (11) - (11) - (1) (1) Recoveries of loans previously charged off 11 - 11 4 - 4 Net charge-offs - - - 4 (1) 3 Provision for loan losses (5) (26) (31) (20) (4) (24) Other - - - - - - Allowance, end of period $ 166 * $ 111 $ 277 $ 143 * $ 107 $ 250 * Of the total allowance , $ 12 million and $ 45 million relate to individually assessed credit losses on $ 298 million and $ 131 million of commercial mortgage loans at March 31, 2016 and 2015 , respectively. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Assets: Bonds available for sale $ - $ 10,294 $ - $ - $ 15 $ 10,309 Other bond securities - 5,379 358 - 9 5,746 Mortgage and other loans receivable 1 1,743 - - 125 1,869 Other invested assets 2,074 467 - 2,846 24 5,411 Other (a) 574 918 58 301 159 2,010 Total assets (b) $ 2,649 $ 18,801 $ 416 $ 3,147 $ 332 $ 25,345 Liabilities: Long-term debt $ 1,545 $ 915 $ 52 $ 1,636 $ 5 $ 4,153 Other (c) 259 194 1 229 146 829 Total liabilities $ 1,804 $ 1,109 $ 53 $ 1,865 $ 151 $ 4,982 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) $ 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 $ 34 $ 1,261 $ 54 $ 1,727 $ 77 $ 3,153 (a) Comprised primarily of Short-term investments and Other assets at March 31, 2016 and December 31, 2015 . (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 March 31, 2016 and December 31, 2015 . (d) At March 31, 2016 and December 31, 2015 , off-balance sheet e xposure primarily consisting of commitments to real estate and investment entities was $ 113 million and $ 131 million, respectively. |
Variable Interest Entity Not Primary Beneficiary | |
Variable Interest Entities [Line Items] | |
Schedule of Assets And Liabilities of Variable Interest Entities by Balance Sheets Location | Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (a) Sheet Total March 31, 2016 Real estate and investment entities (d) $ 512,798 $ 13,724 $ 2,038 $ 15,762 Affordable housing partnerships 4,992 837 - 837 Other 4,367 273 1,099 (b) 1,372 Total (c) $ 522,157 $ 14,834 $ 3,137 $ 17,971 December 31, 2015 Real estate and investment entities (d) $ 21,951 $ 3,072 $ 398 $ 3,470 Affordable housing partnerships 5,255 774 - 774 Other 1,110 215 1,000 (b) 1,215 Total $ 28,316 $ 4,061 $ 1,398 $ 5,459 (a) At March 31, 2016 and December 31, 2015 , $ 14.4 billion and $ 3.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (b) These amounts primarily 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 polic ies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. (c) As discussed in Note 2, on January 1, 2016, we adopted accounting guidance that resulted in an increase in the number of our investment entities classifie d as VIEs. (d) Comprised primarily of hedge funds and private equity funds. |
DERIVATIVES AND HEDGE ACCOUNT32
DERIVATIVES AND HEDGE ACCOUNTING (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
Notional amounts and fair values of derivative instruments | March 31, 2016 December 31, 2015 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 $ 512 $ 4 $ 527 $ 3 $ 301 $ 1 $ 725 $ 2 Foreign exchange contracts 2,607 209 1,369 65 2,903 207 914 56 Equity contracts - - 116 13 - - 121 23 Derivatives not designated as hedging instruments: (a) Interest rate contracts 62,278 4,401 36,183 3,107 45,846 3,161 65,733 2,197 Foreign exchange contracts 8,564 668 11,325 1,319 9,472 559 8,900 1,148 Equity contracts 9,648 243 6,040 17 6,656 177 5,028 45 Commodity contracts - - - - - - - - Credit contracts (b) 4 3 1,152 493 4 3 1,289 508 Other contracts (c) 38,550 22 213 142 37,586 23 203 69 Total derivatives, gross $ 122,163 $ 5,550 $ 56,925 $ 5,159 $ 102,768 $ 4,131 $ 82,913 $ 4,048 Counterparty netting (d) (2,023) (2,023) (1,268) (1,268) Cash collateral (e) (2,036) (992) (1,554) (760) Total derivatives on condensed consolidated balance sheets (f) $ 1,491 $ 2,144 $ 1,309 $ 2,020 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b ) As of March 31, 2016 and December 31, 2015 , included super senior multi-sector CDOs with a net notional amount of $ 1.0 billion and $ 1.1 billion (fair value liability of $ 468 million and $ 483 million), respectively. The expected weighted average maturity as of March 31, 2016 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 repre sents the maximum exposure to loss on the portfolio. As of March 31, 2016 and December 31, 2015 , there were no super senior corporate debt/CLOs remaining. (c) Consists primarily of stable value wraps and cont racts with multiple underlying exposures. (d) Represents netting of derivative exposures covered by a qualifying master netting agreement. (e) Represents cash collateral posted and received that is eligible for netting. (f) Freestanding derivatives only, e xcludes Embedded derivatives. Derivative instrument assets and liabilities are recorded in Other Assets and Liabilities, respectively. Fair value of assets related to bifurcated Embedded derivatives was $ 0 at both March 31, 2016 and December 31, 2015. Fair value of liabilities related to bifurcated Embedded derivatives was $ 3.3 billion and $ 2.3 billion, respectively, at March 31, 2016 and December 31, 2015. A bifurcated Embedded d erivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components. |
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) Three Months Ended March 31, 2016 Interest rate contracts : Realized capital gains/(losses) $ 1 $ (1) $ - $ - $ - Other income - 2 - - 2 Gain/(Loss) on extinguishment of debt - - - - - Foreign exchange contracts : Realized capital gains/(losses) 34 (64) - (29) (1) Other income - 7 - - 7 Gain/(Loss) on extinguishment of debt - - - - - Equity contracts : Realized capital gains/(losses) 10 (12) - (2) - Three Months Ended March 31, 2015 Interest rate contracts : Realized capital gains/(losses) $ 1 $ (1) $ - $ - $ - Other income - 3 - - 3 Gain/(Loss) on extinguishment of debt - 13 - - 13 Foreign exchange contracts : Realized capital gains/(losses) 132 (128) - 1 3 Interest credited to policyholder account balances - (1) - - (1) Other income - 6 - - 6 Gain/(Loss) on extinguishment of debt - 16 - - 16 Equity contracts Realized capital gains/(losses) (6) 5 - (1) - 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 hedge relationship. |
Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statements of Income | Gains (Losses) Three Months Ended March 31, Recognized in Earnings (in millions) 2016 2015 By Derivative Type: Interest rate contracts $ 770 $ 356 Foreign exchange contracts (28) 322 Equity contracts (131) (90) Commodity contracts - (1) Credit contracts 6 147 Other contracts 16 23 Embedded derivatives (772) (173) Total $ (139) $ 584 By Classification: Policy fees $ 20 $ 19 Net investment income (1) 27 Net realized capital gains (losses) (35) 171 Other income (losses) (130) 362 Policyholder benefits and claims incurred 7 5 Total $ (139) $ 584 |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
EQUITY | |
Rollforward of common stock outstanding | Common Treasury Common Stock Stock Issued Stock Outstanding Three Months Ended March 31, 2016 Shares, beginning of year 1,906,671,492 (712,754,875) 1,193,916,617 Shares issued - 10,968 10,968 Shares repurchased - (63,189,226) (63,189,226) Shares, end of period 1,906,671,492 (775,933,133) 1,130,738,359 |
Accumulated Other Comprehensive Income (Loss) | Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken Unrealized Appreciation (Depreciation) of All Other Investments Foreign Currency Translation Adjustments Retirement Plan Liabilities Adjustment (in millions) Total Balance, December 31, 2015, net of tax $ 696 $ 5,566 $ (2,879) $ (846) $ 2,537 Change in unrealized appreciation (depreciation) of investments (548) 5,083 - - 4,535 Change in deferred policy acquisition costs adjustment and other 15 (360) - - (345) Change in future policy benefits - (728) - - (728) Change in foreign currency translation adjustments - - (132) - (132) Change in net actuarial loss - - - 12 12 Change in prior service cost - - - (7) (7) Change in deferred tax asset (liability) 184 (568) 40 (3) (347) Total other comprehensive income (loss) (349) 3,427 (92) 2 2,988 Noncontrolling interests - - - - - Balance, March 31, 2016, net of tax $ 347 $ 8,993 $ (2,971) $ (844) $ 5,525 Balance, December 31, 2014, net of tax $ 1,043 $ 12,327 $ (1,784) $ (969) $ 10,617 Change in unrealized appreciation (depreciation) of investments (59) 1,330 - - 1,271 Change in deferred policy acquisition costs adjustment and other (19) 80 - - 61 Change in future policy benefits (23) (380) - - (403) Change in foreign currency translation adjustments - - (632) - (632) Change in net actuarial loss - - - 43 43 Change in prior service credit - - - (12) (12) Change in deferred tax asset (liability) 29 (491) 173 (2) (291) Total other comprehensive income (loss) (72) 539 (459) 29 37 Noncontrolling interests - - (3) - (3) Balance, March 31, 2015, net of tax $ 971 $ 12,866 $ (2,240) $ (940) $ 10,657 |
Other comprehensive income (loss) reclassification adjustments | Unrealized Appreciation (Depreciation) of Fixed Maturity Investments 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 March 31, 2016 Unrealized change arising during period $ (458) $ 3,640 $ (132) $ 1 $ 3,051 Less: Reclassification adjustments included in net income 75 (355) - (4) (284) Total other comprehensive income (loss), before income tax expense (benefit) (533) 3,995 (132) 5 3,335 Less: Income tax expense (benefit) (184) 568 (40) 3 347 Total other comprehensive income (loss), net of income tax expense (benefit) $ (349) $ 3,427 $ (92) $ 2 $ 2,988 March 31, 2015 Unrealized change arising during period $ (92) $ 1,507 $ (632) $ 7 $ 790 Less: Reclassification adjustments included in net income 9 477 - (24) 462 Total other comprehensive income (loss), before income tax expense (benefit) (101) 1,030 (632) 31 328 Less: Income tax expense (benefit) (29) 491 (173) 2 291 Total other comprehensive income (loss), net of income tax expense (benefit) $ (72) $ 539 $ (459) $ 29 $ 37 |
Schedule of effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income | Amount Reclassified from Accumulated Other Comprehensive Income Three Months Ended March 31, Affected Line Item in the (in millions) 2016 2015 Condensed Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized Investments $ 75 $ 9 Other realized capital gains Total 75 9 Unrealized appreciation (depreciation) of all other investments Investments (413) 512 Other realized capital gains Deferred policy acquisition costs adjustment 58 (35) Amortization of deferred policy acquisition costs Future policy benefits - - Policyholder benefits and losses incurred Total (355) 477 Change in retirement plan liabilities adjustment Prior-service costs 4 12 * Actuarial losses (8) (36) * Total (4) (24) Total reclassifications for the period $ (284) $ 462 * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 12 to the Condensed Consolidated Financial Statements. |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
EARNINGS PER SHARE (EPS) | |
Computation of basic and diluted EPS | Three Months Ended March 31, (dollars in millions, except per share data) 2016 2015 Numerator for EPS: Income (loss) from continuing operations $ (156) $ 2,476 Less: Net income from continuing operations attributable to noncontrolling interests (20) 9 Income (loss) attributable to AIG common shareholders from continuing operations (136) 2,467 Income (loss) from discontinued operations, net of income tax expense (47) 1 Net income (loss) attributable to AIG common shareholders $ (183) $ 2,468 Denominator for EPS: Weighted average shares outstanding — basic 1,156,548,459 1,365,951,690 Dilutive shares (a) - 20,311,859 Weighted average shares outstanding — diluted (b) 1,156,548,459 1,386,263,549 Income per common share attributable to AIG: Basic: Income (loss) from continuing operations $ (0.12) $ 1.81 Loss from discontinued operations $ (0.04) $ - Income (loss) attributable to AIG $ (0.16) $ 1.81 Diluted: Income (loss) from continuing operations $ (0.12) $ 1.78 Income (loss) from discontinued operations $ (0.04) $ - Income (loss) attributable to AIG $ (0.16) $ 1.78 (a) Shares in the diluted EPS calculation represent basic shares for the three-month period ended March 31, 2016 due to the net loss in that period. (b) Dilutive shares include our share -based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of shares excluded from diluted shares outstanding was 0.6 and 0.6 million for both the three -month periods ended March 31, 2016 and 2015 , because the effect of including those shares in the calculation would have been anti-dilutive. |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of net periodic benefit cost | Pension Postretirement U.S. Non-U.S. U.S. Non-U.S. (in millions) Plans Plans Total Plans Plans Total Three Months Ended March 31, 2016 Components of net periodic benefit (income) cost: Service cost $ 4 $ 8 $ 12 $ 1 $ 1 $ 2 Interest cost 46 5 51 1 1 2 Expected return on assets (73) (7) (80) - - - Amortization of prior service credit - - - (2) - (2) Amortization of net loss 6 2 8 - - - Curtailment gain - (2) (2) - - - Net periodic benefit (income) cost $ (17) $ 6 $ (11) $ - $ 2 $ 2 Three Months Ended March 31, 2015 Components of net periodic benefit cost: Service cost $ 52 $ 11 $ 63 $ 2 $ 1 $ 3 Interest cost 55 6 61 2 1 3 Expected return on assets (72) (6) (78) - - - Amortization of prior service credit (8) (1) (9) (3) - (3) Amortization of net loss 32 3 35 - - - Net periodic benefit cost $ 59 $ 13 $ 72 $ 1 $ 2 $ 3 |
INFORMATION PROVIDED IN CONNE36
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Assets: Short-term investments $ 4,391 $ - $ 10,635 $ (4,112) $ 10,914 Other investments (a) 5,437 - 326,495 - 331,932 Total investments 9,828 - 337,130 (4,112) 342,846 Cash 36 7 1,456 - 1,499 Loans to subsidiaries (b) 35,109 - 411 (35,520) - Investment in consolidated subsidiaries (b) 55,010 30,908 - (85,918) - Other assets, including deferred income taxes 24,470 125 137,311 (3,474) 158,432 Total assets $ 124,453 $ 31,040 $ 476,308 $ (129,024) $ 502,777 Liabilities: Insurance liabilities $ - $ - $ 274,789 $ - $ 274,789 Long-term debt 22,133 678 9,141 - 31,952 Other liabilities, including intercompany balances (a) 13,407 54 101,237 (7,743) 106,955 Loans from subsidiaries (b) 395 - 35,125 (35,520) - Total liabilities 35,935 732 420,292 (43,263) 413,696 Total AIG shareholders’ equity 88,518 30,308 55,453 (85,761) 88,518 Non-redeemable noncontrolling interests - - 563 - 563 Total equity 88,518 30,308 56,016 (85,761) 89,081 Total liabilities and equity $ 124,453 $ 31,040 $ 476,308 $ (129,024) $ 502,777 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 23,299 258 135,690 (2,388) 156,859 Total assets $ 121,878 $ 30,613 $ 468,181 $ (123,830) $ 496,842 Liabilities: Insurance liabilities $ - $ - $ 271,645 $ - $ 271,645 Long-term debt 19,777 704 8,768 - 29,249 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 32,220 908 416,118 (42,614) 406,632 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 $ 121,878 $ 30,613 $ 468,181 $ (123,830) $ 496,842 (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 Three Months Ended March 31, 2016 Revenues: Equity in earnings of consolidated subsidiaries * $ (944) $ (1,683) $ - $ 2,627 $ - Other income (63) 5 12,038 (201) 11,779 Total revenues (1,007) (1,678) 12,038 2,426 11,779 Expenses: Interest expense 244 14 49 (1) 306 Loss on extinguishment of debt 77 - 6 - 83 Other expenses 191 7 11,605 (199) 11,604 Total expenses 512 21 11,660 (200) 11,993 Income (loss) from continuing operations before income tax expense (benefit) (1,519) (1,699) 378 2,626 (214) Income tax expense (benefit) (1,337) (6) 1,285 - (58) Income (loss) from continuing operations (182) (1,693) (907) 2,626 (156) Loss from discontinued operations, net of income taxes (1) - (46) - (47) Net income (loss) (183) (1,693) (953) 2,626 (203) Less: Total net loss attributable to noncontrolling interests - - (20) - (20) Net income (loss) attributable to AIG $ (183) $ (1,693) $ (933) $ 2,626 $ (183) Three Months Ended March 31, 2015 Revenues: Equity in earnings of consolidated subsidiaries * $ 2,757 $ 773 $ - $ (3,530) $ - Other income 150 - 15,914 (89) 15,975 Total revenues 2,907 773 15,914 (3,619) 15,975 Expenses: Interest expense 289 16 65 (30) 340 Loss on extinguishment of debt 61 - - 7 68 Other expenses 246 (5) 11,609 (59) 11,791 Total expenses 596 11 11,674 (82) 12,199 Income (loss) from continuing operations before income tax expense (benefit) 2,311 762 4,240 (3,537) 3,776 Income tax expense (benefit) (157) (43) 1,501 (1) 1,300 Income (loss) from continuing operations 2,468 805 2,739 (3,536) 2,476 Income from discontinued operations, net of income taxes - - 1 - 1 Net income (loss) 2,468 805 2,740 (3,536) 2,477 Less: Total net loss attributable to noncontrolling interests - - 9 - 9 Net income (loss) attributable to AIG $ 2,468 $ 805 $ 2,731 $ (3,536) $ 2,468 * Eliminated in consolidation. |
Condensed Consolidating Statements of Comprehensive Income (loss) | American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Three Months Ended March 31, 2016 Net income (loss) $ (183) $ (1,693) $ (953) $ 2,626 $ (203) Other comprehensive income (loss) 2,988 (474) 55,554 (55,080) 2,988 Comprehensive income (loss) 2,805 (2,167) 54,601 (52,454) 2,785 Total comprehensive loss attributable to noncontrolling interests - - (20) - (20) Comprehensive income (loss) attributable to AIG $ 2,805 $ (2,167) $ 54,621 $ (52,454) $ 2,805 Three Months Ended March 31, 2015 Net income (loss) $ 2,468 $ 805 $ 2,740 $ (3,536) $ 2,477 Other comprehensive income (loss) 38 908 (1,061) 152 37 Comprehensive income (loss) 2,506 1,713 1,679 (3,384) 2,514 Total comprehensive income attributable to noncontrolling interests - - 6 - 6 Comprehensive income (loss) attributable to AIG $ 2,506 $ 1,713 $ 1,673 $ (3,384) $ 2,508 |
Condensed Consolidating Statements of Cash Flows | American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries * Eliminations * AIG Three Months Ended March 31, 2016 Net cash (used in) provided by operating activities $ 1,483 $ 97 $ (1,481) $ (1,067) $ (968) Cash flows from investing activities: Sales of investments 392 - 17,004 (1,154) 16,242 Purchase of investments (322) - (16,634) 1,154 (15,802) Loans to subsidiaries - net 880 - 180 (1,060) - Contributions from (to) subsidiaries - net 644 - - (644) - Net change in restricted cash - - (59) - (59) Net change in short-term investments (1,022) - 445 - (577) Other, net (127) - 708 - 581 Net cash (used in) provided by investing activities 445 - 1,644 (1,704) 385 Cash flows from financing activities: Issuance of long-term debt 2,986 - 303 - 3,289 Repayments of long-term debt (710) (26) (222) - (958) Purchase of common stock (3,486) - - - (3,486) Intercompany loans - net (180) (3) (877) 1,060 - Cash dividends paid (363) (177) (890) 1,067 (363) Other, net (173) - 1,500 644 1,971 Net cash (used in) provided by financing activities (1,926) (206) (186) 2,771 453 Effect of exchange rate changes on cash - - - - - Change in cash 2 (109) (23) - (130) Cash at beginning of year 34 116 1,479 - 1,629 Cash at end of period $ 36 $ 7 $ 1,456 $ - $ 1,499 Three Months Ended March 31, 2015 Net cash (used in) provided by operating activities $ 1,111 $ 284 $ 2,257 $ (3,264) $ 388 Cash flows from investing activities: Sales of investments 505 - 15,995 (1,271) 15,229 Purchase of investments (897) - (13,483) 1,271 (13,109) Loans to subsidiaries - net 1,091 - 395 (1,486) - Contributions from (to) subsidiaries - net (70) - - 70 - Net change in restricted cash - - (47) - (47) Net change in short-term investments (1,035) - 231 - (804) Other, net - - (955) - (955) Net cash (used in) provided by investing activities (406) - 2,136 (1,416) 314 Cash flows from financing activities: Issuance of long-term debt 2,342 - 243 - 2,585 Repayments of long-term debt (977) - (916) - (1,893) Purchase of common stock (1,398) - - - (1,398) Intercompany loans - net (394) - (1,092) 1,486 - Cash dividends paid (170) (367) (2,897) 3,264 (170) Other, net (69) - 411 (70) 272 Net cash (used in) provided by financing activities (666) (367) (4,251) 4,680 (604) Effect of exchange rate changes on cash - - (33) - (33) Change in cash 39 (83) 109 - 65 Cash at beginning of year 26 91 1,641 - 1,758 Cash at end of period $ 65 $ 8 $ 1,750 $ - $ 1,823 |
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 2016 period for: Interest: Third party $ (285) $ (24) $ (53) $ - $ (362) Intercompany - - - - - Taxes: Income tax authorities $ (1) $ - $ (38) $ - $ (39) Intercompany 182 - (182) - - Cash (paid) received during the 2015 period for: Interest: Third party $ (240) $ (27) $ (40) $ - $ (307) Intercompany - - - - - Taxes: Income tax authorities $ (1) $ - $ (139) $ - $ (140) Intercompany 291 - (291) - - |
Supplementary disclosure of non-cash activities | Three Months Ended March 31, (in millions) 2016 2015 Intercompany non-cash financing and investing activities: Capital contributions $ 2,904 $ 111 Dividends received in the form of securities 697 140 |
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 ($)shares | Mar. 31, 2016USD ($)item$ / shares | Mar. 31, 2015USD ($) | Dec. 31, 2015$ / shares | May. 13, 2014$ / shares |
Basis of Presentation [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 2.5 | $ 2.5 | |||||
Investment Maturity Year | 2,045 | ||||||
Interest rate (as a percent) | 6.50% | ||||||
Net income (loss) attributable to AIG | $ (183) | $ 2,468 | |||||
Income (loss) from continuing operations before income tax expense (benefit) | $ (214) | $ 3,776 | |||||
Call Option [Member] | |||||||
Basis of Presentation [Line Items] | |||||||
Investment Maturity Year | 2,025 | ||||||
ILFC | |||||||
Basis of Presentation [Line Items] | |||||||
Percentage of common stock agreed to be sold | 100.00% | ||||||
Consideration in cash | $ 7,600 | ||||||
Number of shares received | shares | 97.6 | ||||||
Minimum | |||||||
Basis of Presentation [Line Items] | |||||||
Number of Countries in which the entity operates | item | 100 | ||||||
Aer Cap | |||||||
Basis of Presentation [Line Items] | |||||||
Closing price per share (in dollars per share) | $ / shares | $ 47.01 | ||||||
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 | ||||||
Non-cash consideration received from sale | $ 500 | ||||||
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 |
SEGMENT INFORMATION (Details -
SEGMENT INFORMATION (Details - Continuing operations by reportable segment) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Total Revenues | $ 11,779 | $ 15,975 |
Revenues and pre-tax income | (214) | 3,776 |
Operating segments | Property Casualty | Commercial Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 5,278 | 5,956 |
Revenues and pre-tax income | 720 | 1,170 |
Operating segments | Mortgage Guaranty | Commercial Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 261 | 264 |
Revenues and pre-tax income | 163 | 145 |
Operating segments | Institutional Markets | Commercial Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 619 | 624 |
Revenues and pre-tax income | 6 | 147 |
Operating segments | Retirement | Consumer Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 2,114 | 2,388 |
Revenues and pre-tax income | 461 | 800 |
Operating segments | Life | Consumer Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 1,597 | 1,613 |
Revenues and pre-tax income | 105 | 171 |
Operating segments | Personal Insurance | Consumer Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 2,821 | 2,862 |
Revenues and pre-tax income | 222 | (26) |
Reportable Segments | Commercial Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 6,158 | 6,844 |
Revenues and pre-tax income | 889 | 1,462 |
Reportable Segments | Consumer Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 6,532 | 6,863 |
Revenues and pre-tax income | 788 | 945 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 206 | 1,042 |
Revenues and pre-tax income | (733) | 162 |
Consolidation and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | (159) | (159) |
Revenues and pre-tax income | 10 | (42) |
Total Operating Segments, Corporate and Other, And Consolidation and Elimination | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 12,737 | 14,590 |
Revenues and pre-tax income | $ 954 | $ 2,527 |
SEGMENT INFORMATION (Details 39
SEGMENT INFORMATION (Details - Continuing operations by reportable segment - Pretax operating income to pre-tax income)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | ||
Loss on extinguishment of debt | $ (83) | $ (68) |
Revenues and pre-tax income | (214) | 3,776 |
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 | 133 | 44 |
Increase Decrease Benefit Reserves | 0 | 0 |
Other income (expense) - net | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 |
Net realized capital gains (losses) | (1,106) | 1,341 |
Net gain (loss) on sale of divested businesses | 0 | (15) |
Non-operating litigation reserves and settlements | 34 | 15 |
Reserve development related to non-operating run-off insurance business | 0 | 0 |
Restructuring and other costs | 0 | 0 |
Other | (19) | 0 |
Revenues and pre-tax income | 11,779 | 15,975 |
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 | 133 | 44 |
Increase Decrease Benefit Reserves | 40 | (54) |
Other income (expense) - net | 7 | 0 |
Loss on extinguishment of debt | (83) | (68) |
Net realized capital gains (losses) | (1,106) | 1,341 |
Net gain (loss) on sale of divested businesses | (2) | (21) |
Non-operating litigation reserves and settlements | 31 | 7 |
Reserve development related to non-operating run-off insurance business | 0 | 0 |
Restructuring and other costs | (188) | 0 |
Other | 0 | 0 |
Revenues and pre-tax income | $ (214) | $ 3,776 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | $ 253,785 | $ 248,245 | |
Other bond securities | 15,344 | 16,782 | |
Equity securities available for sale | 2,770 | 2,915 | |
Other equity securities | 877 | 921 | |
Other invested assets | 7,996 | 8,912 | |
Derivative Assets, Fair Value | 5,550 | 4,131 | |
Derivative assets, Counterparty netting | (2,023) | (1,268) | |
Derivative assets, Cash collateral | (2,036) | (1,554) | |
Short-term investments, portion measured at fair value | 2,468 | 2,591 | |
Separate account assets, at fair value | 79,532 | 79,574 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 3,290 | 2,325 | |
Other policyholder funds | 4,203 | 4,212 | |
Derivative Liabilities, Fair Value | 5,159 | 4,048 | |
Derivative liabilities, Counterparty netting | (2,023) | (1,268) | |
Derivative liabilities, Cash collateral | (992) | (760) | |
Long-term debt, portion measured at fair value | 3,902 | 3,670 | |
Other liabilities | 175 | 62 | |
U.S. government and government sponsored entities | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Assets transferred from Level 1 to Level 2 | 0 | $ 115 | |
Non-U.S. government | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Assets transferred from Level 1 to Level 2 | 83 | 72 | |
Recurring Basis | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Assets transferred from Level 2 to Level 1 | 0 | $ 0 | |
Recurring Basis | Level 1 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 715 | 683 | |
Other bond securities | 30 | 0 | |
Equity securities available for sale | 2,768 | 2,914 | |
Other equity securities | 862 | 906 | |
Mortgage and other loans receivable | 0 | ||
Other invested assets | 1 | 2 | |
Derivative Assets, Fair Value | 123 | 91 | |
Short-term investments, portion measured at fair value | 1,367 | 1,416 | |
Separate account assets, at fair value | 74,470 | 73,699 | |
Other assets | 0 | ||
Fair value assets measured on recurring basis, total | 80,336 | 79,711 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 0 | 0 | |
Other policyholder funds | 6 | 6 | |
Derivative Liabilities, Fair Value | 4 | 0 | |
Long-term debt, portion measured at fair value | 0 | 0 | |
Other liabilities | 134 | 0 | |
Fair value liabilities measured on recurring basis, total | 144 | 6 | |
Recurring Basis | Level 1 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Level 1 | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 4 | 0 | |
Recurring Basis | Level 1 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 123 | 91 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Level 1 | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Level 1 | Credit contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Level 1 | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Level 1 | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 7 | 0 | |
Other bond securities | 30 | 0 | |
Recurring Basis | Level 1 | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Non-U.S. government | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 708 | 683 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Common Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 2,274 | 2,401 | |
Recurring Basis | Level 1 | Preferred Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 23 | 22 | |
Recurring Basis | Level 1 | Mutual Funds | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 471 | 491 | |
Recurring Basis | Level 2 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 224,698 | 218,745 | |
Other bond securities | 7,037 | 7,936 | |
Equity securities available for sale | 2 | 1 | |
Other equity securities | 0 | 1 | |
Mortgage and other loans receivable | 0 | ||
Other invested assets | 32 | 1 | |
Derivative Assets, Fair Value | 5,338 | 3,950 | |
Short-term investments, portion measured at fair value | 1,101 | 1,175 | |
Separate account assets, at fair value | 5,062 | 5,875 | |
Other assets | 0 | 0 | |
Fair value assets measured on recurring basis, total | 243,270 | 237,684 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 39 | 36 | |
Other policyholder funds | 0 | 0 | |
Derivative Liabilities, Fair Value | 4,449 | 3,402 | |
Long-term debt, portion measured at fair value | 3,718 | 3,487 | |
Other liabilities | 41 | 62 | |
Fair value liabilities measured on recurring basis, total | 8,247 | 6,987 | |
Recurring Basis | Level 2 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 4,391 | 3,150 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 3,048 | 2,137 | |
Recurring Basis | Level 2 | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 877 | 766 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 1,371 | 1,197 | |
Recurring Basis | Level 2 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 69 | 32 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 30 | 68 | |
Recurring Basis | Level 2 | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Level 2 | Credit contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Level 2 | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 1 | 2 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Level 2 | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 2,034 | 1,844 | |
Other bond securities | 3,373 | 3,369 | |
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 25,562 | 25,199 | |
Other bond securities | 0 | 75 | |
Recurring Basis | Level 2 | Non-U.S. government | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 17,877 | 17,480 | |
Other bond securities | 53 | 50 | |
Recurring Basis | Level 2 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 137,924 | 134,618 | |
Other bond securities | 1,861 | 2,018 | |
Recurring Basis | Level 2 | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 20,060 | 19,690 | |
Other bond securities | 440 | 649 | |
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 12,069 | 10,986 | |
Other bond securities | 517 | 557 | |
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 9,172 | 8,928 | |
Other bond securities | 793 | 1,218 | |
Recurring Basis | Level 2 | Common Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 0 | 0 | |
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 | 2 | 1 | |
Recurring Basis | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 28,372 | 28,817 | |
Other bond securities | 8,277 | 8,846 | |
Equity securities available for sale | 0 | 0 | |
Other equity securities | 15 | 14 | |
Mortgage and other loans receivable | 11 | 11 | |
Other invested assets | 263 | 332 | |
Derivative Assets, Fair Value | 89 | 90 | |
Short-term investments, portion measured at fair value | 0 | 0 | |
Separate account assets, at fair value | 0 | ||
Other assets | 0 | ||
Fair value assets measured on recurring basis, total | 37,027 | 38,110 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 3,251 | 2,289 | |
Other policyholder funds | 0 | 0 | |
Derivative Liabilities, Fair Value | 706 | 646 | |
Long-term debt, portion measured at fair value | 184 | 183 | |
Other liabilities | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 4,141 | 3,118 | |
Recurring Basis | Level 3 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 14 | 12 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 62 | 62 | |
Recurring Basis | Level 3 | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 9 | 7 | |
Recurring Basis | Level 3 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 51 | 54 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Level 3 | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Level 3 | Credit contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 3 | 3 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 493 | 508 | |
Recurring Basis | Level 3 | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 21 | 21 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 142 | 69 | |
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 | 2,196 | 2,124 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 3 | Non-U.S. government | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 30 | 32 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 3 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 1,024 | 1,370 | |
Other bond securities | 18 | 17 | |
Recurring Basis | Level 3 | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 16,162 | 16,537 | |
Other bond securities | 1,513 | 1,581 | |
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 2,368 | 2,585 | |
Other bond securities | 170 | 193 | |
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 6,592 | 6,169 | |
Other bond securities | 6,576 | 7,055 | |
Recurring Basis | Level 3 | Common Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 0 | 0 | |
Recurring Basis | Level 3 | Preferred Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 0 | 0 | |
Recurring Basis | Level 3 | Mutual Funds | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 0 | 0 | |
Recurring Basis | Counterparty Netting | |||
Fair Value, Assets Measured on Recurring Basis | |||
Other bond securities | 0 | ||
Equity securities available for sale | 0 | ||
Other equity securities | 0 | ||
Other invested assets | 0 | ||
Derivative assets, Counterparty netting | (2,023) | (1,268) | |
Separate account assets, at fair value | 0 | ||
Other assets | 0 | ||
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 0 | ||
Derivative liabilities, Counterparty netting | (2,023) | (1,268) | |
Long-term debt, portion measured at fair value | 0 | ||
Other liabilities | 0 | ||
Recurring Basis | Counterparty Netting | Counterparty netting and cash collateral | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative assets, Counterparty netting | (2,023) | (1,268) | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative liabilities, Counterparty netting | (2,023) | (1,268) | |
Recurring Basis | Cash Collateral | |||
Fair Value, Assets Measured on Recurring Basis | |||
Other bond securities | 0 | ||
Equity securities available for sale | 0 | ||
Other equity securities | 0 | ||
Other invested assets | 0 | ||
Derivative assets, Cash collateral | (2,036) | (1,554) | |
Separate account assets, at fair value | 0 | ||
Other assets | 0 | ||
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 0 | ||
Derivative liabilities, Cash collateral | (992) | (760) | |
Long-term debt, portion measured at fair value | 0 | ||
Other liabilities | 0 | ||
Recurring Basis | Cash Collateral | Counterparty netting and cash collateral | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative assets, Cash collateral | (2,036) | (1,554) | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative liabilities, Cash collateral | (992) | (760) | |
Recurring Basis | Total Fair Value | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 253,785 | 248,245 | |
Other bond securities | 15,344 | 16,782 | |
Equity securities available for sale | 2,770 | 2,915 | |
Other equity securities | 877 | 921 | |
Mortgage and other loans receivable | 11 | 11 | |
Other invested assets | 296 | 335 | |
Derivative Assets, Fair Value | 1,491 | 1,309 | |
Short-term investments, portion measured at fair value | 2,468 | 2,591 | |
Separate account assets, at fair value | 79,532 | 79,574 | |
Other assets | 0 | ||
Fair value assets measured on recurring basis, total | 356,574 | 352,683 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 3,290 | 2,325 | |
Other policyholder funds | 6 | 6 | |
Derivative Liabilities, Fair Value | 2,144 | 2,020 | |
Long-term debt, portion measured at fair value | 3,902 | 3,670 | |
Other liabilities | 175 | 62 | |
Fair value liabilities measured on recurring basis, total | 9,517 | 8,083 | |
Recurring Basis | Total Fair Value | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 4,405 | 3,162 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 3,110 | 2,199 | |
Recurring Basis | Total Fair Value | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 877 | 766 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 1,384 | 1,204 | |
Recurring Basis | Total Fair Value | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 243 | 177 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 30 | 68 | |
Recurring Basis | Total Fair Value | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 0 | |
Recurring Basis | Total Fair Value | Credit contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 3 | 3 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 493 | 508 | |
Recurring Basis | Total Fair Value | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 22 | 23 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 142 | 69 | |
Recurring Basis | Total Fair Value | Counterparty netting and cash collateral | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | (4,059) | (2,822) | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | (3,015) | (2,028) | |
Recurring Basis | Total Fair Value | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 2,041 | 1,844 | |
Other bond securities | 3,403 | 3,369 | |
Recurring Basis | Total Fair Value | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 27,758 | 27,323 | |
Other bond securities | 0 | 75 | |
Recurring Basis | Total Fair Value | Non-U.S. government | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 18,615 | 18,195 | |
Other bond securities | 53 | 50 | |
Recurring Basis | Total Fair Value | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 138,948 | 135,988 | |
Other bond securities | 1,879 | 2,035 | |
Recurring Basis | Total Fair Value | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 36,222 | 36,227 | |
Other bond securities | 1,953 | 2,230 | |
Recurring Basis | Total Fair Value | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 14,437 | 13,571 | |
Other bond securities | 687 | 750 | |
Recurring Basis | Total Fair Value | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 15,764 | 15,097 | |
Other bond securities | 7,369 | 8,273 | |
Recurring Basis | Total Fair Value | Common Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 2,274 | 2,401 | |
Recurring Basis | Total Fair Value | Preferred Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 23 | 22 | |
Recurring Basis | Total Fair Value | Mutual Funds | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | $ 473 | $ 492 |
FAIR VALUE MEASUREMENTS (Deta41
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | $ 38,020 | $ 39,655 |
Net Realized and Unrealized Gains (Losses) Included in Income | 141 | 839 |
Other Comprehensive Income (Loss) | (531) | (463) |
Purchases, Sales, Issues and Settlements, Net | (299) | 122 |
Gross Transfers in, assets | 242 | 692 |
Gross Transfers out, assets | (635) | (362) |
Balance End of Period | 36,938 | 40,483 |
Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (352) | (72) |
Liabilities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 3,028 | 2,794 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 904 | 94 |
Accumulated Other Comprehensive Income (loss) | 0 | (2) |
Purchases, Sales, Issues and Settlements-Net | 120 | (4) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 4,052 | 2,882 |
Liabilities | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (29) | 13 |
Policyholder contract deposits | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 2,289 | 1,509 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 845 | 275 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 117 | 51 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 3,251 | 1,835 |
Policyholder contract deposits | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 22 | (50) |
Derivative liabilities, net | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 556 | 1,072 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 57 | (166) |
Accumulated Other Comprehensive Income (loss) | 0 | (2) |
Purchases, Sales, Issues and Settlements-Net | 4 | (43) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 617 | 861 |
Derivative liabilities, net | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (49) | 44 |
Interest rate contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 50 | 74 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 4 | 4 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (6) | (9) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 48 | 69 |
Interest rate contracts | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (4) | (4) |
Foreign exchange contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 7 | 8 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 1 | (1) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 1 | 1 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 9 | 8 |
Foreign exchange contracts | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (1) | 1 |
Equity contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (54) | (47) |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 4 | (8) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (1) | (11) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | (51) | (66) |
Equity contracts | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (4) | 5 |
Commodity contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 0 | 0 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 |
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 |
Commodity contracts | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 0 | 0 |
Credit contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 505 | 978 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (6) | (147) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (9) | (40) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 490 | 791 |
Credit contracts | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 14 | 28 |
Other contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 48 | 59 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 54 | (14) |
Accumulated Other Comprehensive Income (loss) | 0 | (2) |
Purchases, Sales, Issues and Settlements-Net | 19 | 16 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 121 | 59 |
Other contracts | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (54) | 14 |
Long-term debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 183 | 213 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 2 | (15) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (1) | (12) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 184 | 186 |
Long-term debt | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (2) | 19 |
Bonds available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 28,817 | 29,683 |
Net Realized and Unrealized Gains (Losses) Included in Income | 300 | 316 |
Other Comprehensive Income (Loss) | (526) | 29 |
Purchases, Sales, Issues and Settlements, Net | 167 | 794 |
Gross Transfers in, assets | 177 | 44 |
Gross Transfers out, assets | (563) | (257) |
Balance End of Period | 28,372 | 30,609 |
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 | 2,124 | 2,159 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 1 |
Other Comprehensive Income (Loss) | 58 | 45 |
Purchases, Sales, Issues and Settlements, Net | 14 | 65 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | (14) |
Balance End of Period | 2,196 | 2,256 |
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 | 32 | 30 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | (2) | 0 |
Purchases, Sales, Issues and Settlements, Net | 0 | 4 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 30 | 34 |
Bonds available for sale | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 1,370 | 1,883 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1 | 0 |
Other Comprehensive Income (Loss) | (24) | 17 |
Purchases, Sales, Issues and Settlements, Net | 29 | (61) |
Gross Transfers in, assets | 121 | 44 |
Gross Transfers out, assets | (473) | (56) |
Balance End of Period | 1,024 | 1,827 |
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 | 16,537 | 16,805 |
Net Realized and Unrealized Gains (Losses) Included in Income | 245 | 258 |
Other Comprehensive Income (Loss) | (420) | (72) |
Purchases, Sales, Issues and Settlements, Net | (233) | 354 |
Gross Transfers in, assets | 33 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 16,162 | 17,345 |
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 | 2,585 | 2,696 |
Net Realized and Unrealized Gains (Losses) Included in Income | 42 | 24 |
Other Comprehensive Income (Loss) | (88) | 10 |
Purchases, Sales, Issues and Settlements, Net | (81) | 30 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (90) | (66) |
Balance End of Period | 2,368 | 2,694 |
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 | 6,169 | 6,110 |
Net Realized and Unrealized Gains (Losses) Included in Income | 12 | 33 |
Other Comprehensive Income (Loss) | (50) | 29 |
Purchases, Sales, Issues and Settlements, Net | 438 | 402 |
Gross Transfers in, assets | 23 | 0 |
Gross Transfers out, assets | 0 | (121) |
Balance End of Period | 6,592 | 6,453 |
Other bond securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 8,846 | 8,923 |
Net Realized and Unrealized Gains (Losses) Included in Income | (171) | 113 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (445) | (134) |
Gross Transfers in, assets | 65 | 626 |
Gross Transfers out, assets | (18) | (105) |
Balance End of Period | 8,277 | 9,423 |
Other bond securities | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (352) | (69) |
Other bond securities | Obligations of states, municipalities and political subdivisions | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Purchases, Sales, Issues and Settlements, Net | 0 | 0 |
Other bond securities | Non-U.S. government | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Purchases, Sales, Issues and Settlements, Net | 0 | 0 |
Other bond securities | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 17 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 1 | |
Purchases, Sales, Issues and Settlements, Net | 0 | 0 |
Gross Transfers in, assets | 0 | 16 |
Balance End of Period | 18 | 16 |
Other bond securities | Corporate debt | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 1 | |
Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 1,581 | 1,105 |
Net Realized and Unrealized Gains (Losses) Included in Income | (37) | (19) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (13) | 204 |
Gross Transfers in, assets | 0 | 29 |
Gross Transfers out, assets | (18) | (31) |
Balance End of Period | 1,513 | 1,288 |
Other bond securities | Residential mortgage-backed securities (RMBS) | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (45) | (31) |
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 | 193 | 369 |
Net Realized and Unrealized Gains (Losses) Included in Income | (2) | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (21) | (100) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 170 | 269 |
Other bond securities | Commercial mortgage-backed securities (CMBS) | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (2) | 2 |
Other bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 7,055 | 7,449 |
Net Realized and Unrealized Gains (Losses) Included in Income | (133) | 132 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (411) | (238) |
Gross Transfers in, assets | 65 | 581 |
Gross Transfers out, assets | 0 | (74) |
Balance End of Period | 6,576 | 7,850 |
Other bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (306) | (40) |
Equity securities available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | 1 |
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 | 1 |
Equity securities available for sale | Common Stock | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | 1 |
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 | 1 |
Mortgage and other loans receivable | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 11 | 6 |
Gross Transfers in, assets | 0 | |
Balance End of Period | 11 | 6 |
Other invested assets | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 332 | 1,042 |
Net Realized and Unrealized Gains (Losses) Included in Income | 11 | 410 |
Other Comprehensive Income (Loss) | (5) | (492) |
Purchases, Sales, Issues and Settlements, Net | (21) | (538) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (54) | 0 |
Balance End of Period | 263 | 422 |
Other invested assets | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (1) | |
Other equity securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 14 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 1 | |
Purchases, Sales, Issues and Settlements, Net | 0 | |
Gross Transfers in, assets | 0 | 22 |
Balance End of Period | 15 | 22 |
Other equity securities | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | $ 1 | $ (3) |
FAIR VALUE MEASUREMENTS (Deta42
FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | $ 141 | $ 839 |
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 | 845 | 275 |
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 | 845 | 275 |
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 | 57 | (166) |
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 | (19) |
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 | 4 | (6) |
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 | 53 | (141) |
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 | 2 | (15) |
Long-term debt | 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 |
Long-term debt | 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 | 0 | 0 |
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 | 2 | (15) |
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 | 300 | 316 |
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 | 298 | 311 |
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 | 1 | (9) |
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 | 1 | 14 |
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 | (171) | 113 |
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 | (34) | 18 |
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 | 0 | 6 |
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 | (137) | 89 |
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 | 0 | 0 |
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 | 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 | 0 | 0 |
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 | 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 | |
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 | 1 | |
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 | 0 | |
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 | 11 | 410 |
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 | (2) | (7) |
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 | 51 | 417 |
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 | $ (38) | $ 0 |
FAIR VALUE MEASUREMENTS (Deta43
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issues and settlements) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, Sales, Issues and Settlements, Net, assets | $ (299) | $ 122 |
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 | (13) | 18 |
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. | (45) | 3 |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (2) | (15) |
Sales, liabilities | 130 | 73 |
Settlements, liabilities | (8) | (62) |
Purchases, Sales, Issues and Settlements, Net, liabilities | 120 | (4) |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | 0 |
Sales, liabilities | 130 | 73 |
Settlements, liabilities | (13) | (22) |
Purchases, Sales, Issues and Settlements, Net, liabilities | 117 | 51 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (2) | (15) |
Sales, liabilities | 0 | 0 |
Settlements, liabilities | 6 | (28) |
Purchases, Sales, Issues and Settlements, Net, liabilities | 4 | (43) |
Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | 0 |
Sales, liabilities | 0 | 0 |
Settlements, liabilities | (1) | (12) |
Purchases, Sales, Issues and Settlements, Net, liabilities | (1) | (12) |
Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1,350 | 2,259 |
Sales, assets | (203) | (811) |
Settlements, assets | (1,446) | (1,326) |
Purchases, Sales, Issues and Settlements, Net, assets | (299) | 122 |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1,203 | 1,731 |
Sales, assets | (89) | (144) |
Settlements, assets | (947) | (793) |
Purchases, Sales, Issues and Settlements, Net, assets | 167 | 794 |
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 | 29 | 107 |
Sales, assets | 0 | (22) |
Settlements, assets | (15) | (20) |
Purchases, Sales, Issues and Settlements, Net, assets | 14 | 65 |
Bonds available for sale | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1 | 6 |
Sales, assets | 0 | 0 |
Settlements, assets | (1) | (2) |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | 4 |
Bonds available for sale | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 29 | 6 |
Sales, assets | 0 | (50) |
Settlements, assets | 0 | (17) |
Purchases, Sales, Issues and Settlements, Net, assets | 29 | (61) |
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 | 503 | 961 |
Sales, assets | (58) | (22) |
Settlements, assets | (678) | (585) |
Purchases, Sales, Issues and Settlements, Net, assets | (233) | 354 |
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 | 102 | 72 |
Sales, assets | (31) | (27) |
Settlements, assets | (152) | (15) |
Purchases, Sales, Issues and Settlements, Net, assets | (81) | 30 |
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 | 539 | 579 |
Sales, assets | 0 | (23) |
Settlements, assets | (101) | (154) |
Purchases, Sales, Issues and Settlements, Net, assets | 438 | 402 |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 124 | 459 |
Sales, assets | (114) | (82) |
Settlements, assets | (455) | (511) |
Purchases, Sales, Issues and Settlements, Net, assets | (445) | (134) |
Other bond securities | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | 0 | 0 |
Settlements, assets | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | 0 |
Other bond securities | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | 0 | 0 |
Settlements, assets | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | 0 |
Other bond securities | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | 0 | 0 |
Settlements, assets | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | 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 | 63 | 245 |
Sales, assets | (26) | (6) |
Settlements, assets | (50) | (35) |
Purchases, Sales, Issues and Settlements, Net, assets | (13) | 204 |
Other bond securities | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 53 | 0 |
Sales, assets | (71) | (36) |
Settlements, assets | (3) | (64) |
Purchases, Sales, Issues and Settlements, Net, assets | (21) | (100) |
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 | 8 | 214 |
Sales, assets | (17) | (40) |
Settlements, assets | (402) | (412) |
Purchases, Sales, Issues and Settlements, Net, assets | (411) | (238) |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | 0 | 0 |
Settlements, assets | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | 0 |
Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 14 | |
Sales, assets | 0 | |
Settlements, assets | (14) | |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 9 | 69 |
Sales, assets | 0 | (585) |
Settlements, assets | (30) | (22) |
Purchases, Sales, Issues and Settlements, Net, assets | $ (21) | $ (538) |
FAIR VALUE MEASUREMENTS (Deta44
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets)) - Discounted cash flow - Level 3 - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Corporate debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 884 | $ 642 |
Corporate debt | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.50% | 5.63% |
Corporate debt | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 9.37% | 12.45% |
Corporate debt | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 6.43% | 9.04% |
Residential mortgage-backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 13,110 | $ 17,280 |
Residential mortgage-backed securities | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.45% | 3.13% |
Constant prepayment rate | 1.29% | 0.99% |
Loss severity | 51.03% | 47.21% |
Constant default rate | 3.91% | 3.49% |
Residential mortgage-backed securities | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 6.09% | 6.14% |
Constant prepayment rate | 8.81% | 8.95% |
Loss severity | 79.95% | 79.50% |
Constant default rate | 8.89% | 9.04% |
Residential mortgage-backed securities | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.77% | 4.63% |
Constant prepayment rate | 5.05% | 4.97% |
Loss severity | 65.49% | 63.35% |
Constant default rate | 6.40% | 6.26% |
Certain CDO/ABS | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 6,845 | $ 3,338 |
Certain CDO/ABS | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.05% | 3.41% |
Certain CDO/ABS | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 6.81% | 4.98% |
Certain CDO/ABS | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.43% | 4.19% |
Commercial mortgage backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 2,187 | $ 2,388 |
Commercial mortgage backed securities | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 1.08% | 0.00% |
Commercial mortgage backed securities | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 13.15% | 17.65% |
Commercial mortgage backed securities | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 7.12% | 6.62% |
Obligations of states, municipalities and political subdivisions | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,330 | $ 1,217 |
Obligations of states, municipalities and political subdivisions | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.87% | 4.32% |
Obligations of states, municipalities and political subdivisions | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.74% | 5.10% |
Obligations of states, municipalities and political subdivisions | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.31% | 4.71% |
FAIR VALUE MEASUREMENTS (Deta45
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) - Discounted cash flow - Level 3 - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Index Annuities | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 824 | $ 715 |
Index Annuities | Minimum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Mortality multiplier | 50.00% | 50.00% |
Lapse rates | 0.75% | 0.75% |
Index Annuities | Maximum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Mortality multiplier | 75.00% | 75.00% |
Lapse rates | 66.00% | 66.00% |
Index Life | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 342 | $ 332 |
Index Life | Minimum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 13.25% | 13.25% |
Base lapse rates | 2.00% | 2.00% |
Mortality rates | 0.00% | 0.00% |
Index Life | Maximum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 22.00% | 22.00% |
Base lapse rates | 19.00% | 19.00% |
Mortality rates | 40.00% | 40.00% |
GMWB and GMAB | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 2,097 | $ 1,234 |
GMWB and GMAB | Minimum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 15.00% | 15.00% |
Base lapse rates | 1.00% | 1.00% |
Dynamic lapse rates | 0.20% | 0.20% |
Mortality multiplier | 80.00% | 80.00% |
Utilization rates | 0.00% | 0.00% |
Equity/Interest-rate Correlation | 20.00% | 20.00% |
GMWB and GMAB | Maximum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 50.00% | 50.00% |
Base lapse rates | 17.00% | 17.00% |
Dynamic lapse rates | 25.50% | 25.50% |
Mortality multiplier | 104.27% | 104.27% |
Utilization rates | 70.00% | 70.00% |
Equity/Interest-rate Correlation | 40.00% | 40.00% |
FAIR VALUE MEASUREMENTS (Deta46
FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 7,700 | $ 8,577 |
Unfunded Commitments | 1,049 | 1,003 |
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 | 2,479 | 2,631 |
Unfunded Commitments | $ 1,014 | 970 |
Average original expected lives | 10 years | |
Second investment redemption notice period | 2 years | |
Private equity funds: | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives | 2 years | |
Private equity funds: | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives | 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 | 79.00% | |
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 | 10.00% | |
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 | 11.00% | |
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 | $ 1,683 | 1,774 |
Unfunded Commitments | 453 | 436 |
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 | 272 | 306 |
Unfunded Commitments | 217 | 213 |
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 | 105 | 107 |
Unfunded Commitments | 35 | 41 |
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 | 142 | 146 |
Unfunded Commitments | 42 | 41 |
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 | 277 | 298 |
Unfunded Commitments | 267 | 239 |
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 | 5,221 | 5,946 |
Unfunded Commitments | $ 35 | 33 |
Hedge fund investments redeemable monthly (as a percent) | 13.00% | |
Hedge fund investments redeemable quarterly (as a percent) | 47.00% | |
Hedge fund investments redeemable semi-annually (as a percent) | 10.00% | |
Hedge fund investments redeemable annually (as a percent) | 30.00% | |
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 73.00% | |
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 | $ 943 | 1,194 |
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 | 2,647 | 2,978 |
Unfunded Commitments | 28 | 25 |
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 | 556 | 555 |
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 | 632 | 699 |
Unfunded Commitments | 7 | 8 |
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 | 293 | 353 |
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 | 150 | 167 |
Unfunded Commitments | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta47
FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments for which we elected the fair value option) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value option credit risk gains (losses) on liabilities | $ 5 | $ 6 |
Fair Value Option | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Options Changes in Fair Value Gain (loss) | (373) | 209 |
Fair Value Option | Long-term debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Options Changes in Fair Value Gain (loss) | (176) | (76) |
Fair Value Option | Other liabilities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Options Changes in Fair Value Gain (loss) | 0 | (3) |
Fair Value Option | Mortgage and other loans receivable | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Options Changes in Fair Value Gain (loss) | 0 | 0 |
Fair Value Option | Bond and equity securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Options Changes in Fair Value Gain (loss) | 50 | 141 |
Fair Value Option | Alternative investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Options Changes in Fair Value Gain (loss) | (247) | 145 |
Fair Value Option | Other, Including Short Term Investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Options Changes in Fair Value Gain (loss) | $ 0 | $ 2 |
FAIR VALUE MEASUREMENTS (Deta48
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage and other loans receivable, Fair Value | $ 11 | $ 11 |
Mortgage and other loans receivable, Outstanding Principal Amount | 30,953 | 29,873 |
Mortgage and other loans receivable, Difference | 30,953 | 29,873 |
Long-term debt, Fair Value | 3,902 | 3,670 |
Long-term debt, Outstanding Principal Amount | 31,952 | 29,249 |
Fair Value Option | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage and other loans receivable, Fair Value | 11 | 11 |
Mortgage and other loans receivable, Outstanding Principal Amount | 8 | 9 |
Mortgage and other loans receivable, Difference | 3 | 2 |
Long-term debt, Fair Value | 3,902 | 3,670 |
Long-term debt, Outstanding Principal Amount | 2,800 | 2,675 |
Long-term debt, Difference | $ 1,102 | $ 995 |
FAIR VALUE MEASUREMENTS (Deta49
FAIR VALUE MEASUREMENTS (Details - Assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented) - Fair value on a non-recurring basis - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | $ 159 | $ 99 | |
Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 2 | 25 | |
Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 157 | 70 | |
Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 0 | $ 4 | |
Level 3 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 977 | $ 2,074 | |
Level 3 | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 563 | 1,117 | |
Level 3 | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 405 | 828 | |
Level 3 | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 9 | 129 | |
Total Fair Value | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 977 | 2,074 | |
Total Fair Value | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 563 | 1,117 | |
Total Fair Value | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 405 | 828 | |
Total Fair Value | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | $ 9 | $ 129 |
FAIR VALUE MEASUREMENTS (Deta50
FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Mortgage and other loans receivable | $ 30,676 | $ 29,565 | ||
Short-term investments | 10,914 | 10,132 | ||
Cash | 1,499 | 1,629 | $ 1,823 | $ 1,758 |
Liabilities: | ||||
Other liabilities | 27,423 | 26,164 | ||
Long-term Debt | 31,952 | 29,249 | ||
Total Fair Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 31,972 | 30,345 | ||
Other invested assets | 3,378 | 3,443 | ||
Short-term investments | 8,446 | 7,541 | ||
Cash | 1,499 | 1,629 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 121,106 | 117,846 | ||
Other liabilities | 3,355 | 2,852 | ||
Long-term Debt | 28,238 | 26,214 | ||
Level 1 | ||||
Assets: | ||||
Mortgage and other loans receivable | 0 | 0 | ||
Other invested assets | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Cash | 1,499 | 1,629 | ||
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 | 134 | 198 | ||
Other invested assets | 524 | 563 | ||
Short-term investments | 8,446 | 7,541 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 339 | 309 | ||
Other liabilities | 3,355 | 2,852 | ||
Long-term Debt | 23,645 | 21,686 | ||
Level 3 | ||||
Assets: | ||||
Mortgage and other loans receivable | 31,838 | 30,147 | ||
Other invested assets | 2,854 | 2,880 | ||
Short-term investments | 0 | 0 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 120,767 | 117,537 | ||
Other liabilities | 0 | 0 | ||
Long-term Debt | 4,593 | 4,528 | ||
Carrying Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 30,665 | 29,554 | ||
Other invested assets | 4,083 | 4,169 | ||
Short-term investments | 8,446 | 7,541 | ||
Cash | 1,499 | 1,629 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 110,192 | 108,788 | ||
Other liabilities | 3,355 | 2,852 | ||
Long-term Debt | $ 28,050 | $ 25,579 |
INVESTMENTS (Details - Amortize
INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 243,059 | $ 242,347 |
Available for sale securities, Gross Unrealized Gains | 17,097 | 14,087 |
Available for sale securities, Gross Unrealized Losses | (3,601) | (5,274) |
Available-for-sale Securities | 256,555 | 251,160 |
AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,040 | 1,482 |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 241,730 | 240,968 |
Available for sale securities, Gross Unrealized Gains | 15,641 | 12,527 |
Available for sale securities, Gross Unrealized Losses | (3,586) | (5,250) |
Available-for-sale Securities | 253,785 | 248,245 |
Other details of available for sale securities | ||
Available for sale securities not rated or rated below investment grade | 35,600 | 34,900 |
Bonds available for sale | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,040 | 1,482 |
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 | 1,835 | 1,698 |
Available for sale securities, Gross Unrealized Gains | 207 | 155 |
Available for sale securities, Gross Unrealized Losses | (1) | (9) |
Available-for-sale Securities | 2,041 | 1,844 |
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 | 26,014 | 26,003 |
Available for sale securities, Gross Unrealized Gains | 1,798 | 1,424 |
Available for sale securities, Gross Unrealized Losses | (54) | (104) |
Available-for-sale Securities | 27,758 | 27,323 |
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 | 2 | 19 |
Bonds available for sale | Non-U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 17,676 | 17,752 |
Available for sale securities, Gross Unrealized Gains | 1,119 | 805 |
Available for sale securities, Gross Unrealized Losses | (180) | (362) |
Available-for-sale Securities | 18,615 | 18,195 |
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 | 132,514 | 133,513 |
Available for sale securities, Gross Unrealized Gains | 8,779 | 6,462 |
Available for sale securities, Gross Unrealized Losses | (2,345) | (3,987) |
Available-for-sale Securities | 138,948 | 135,988 |
Bonds available for sale | Corporate debt | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | (104) | (87) |
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 | 63,691 | 62,002 |
Available for sale securities, Gross Unrealized Gains | 3,738 | 3,681 |
Available for sale securities, Gross Unrealized Losses | (1,006) | (788) |
Available-for-sale Securities | 66,423 | 64,895 |
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 | 1,142 | 1,550 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 34,056 | 33,878 |
Available for sale securities, Gross Unrealized Gains | 2,672 | 2,760 |
Available for sale securities, Gross Unrealized Losses | (506) | (411) |
Available-for-sale Securities | 36,222 | 36,227 |
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 | 1,018 | 1,326 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 13,813 | 13,139 |
Available for sale securities, Gross Unrealized Gains | 722 | 561 |
Available for sale securities, Gross Unrealized Losses | (98) | (129) |
Available-for-sale Securities | 14,437 | 13,571 |
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 | 93 | 185 |
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 | 15,822 | 14,985 |
Available for sale securities, Gross Unrealized Gains | 344 | 360 |
Available for sale securities, Gross Unrealized Losses | (402) | (248) |
Available-for-sale Securities | 15,764 | 15,097 |
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 | 31 | 39 |
Equity securities available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 1,329 | 1,379 |
Available for sale securities, Gross Unrealized Gains | 1,456 | 1,560 |
Available for sale securities, Gross Unrealized Losses | (15) | (24) |
Available-for-sale Securities | 2,770 | 2,915 |
Equity securities available for sale | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 891 | 913 |
Available for sale securities, Gross Unrealized Gains | 1,396 | 1,504 |
Available for sale securities, Gross Unrealized Losses | (13) | (16) |
Available-for-sale Securities | 2,274 | 2,401 |
Equity securities available for sale | Preferred Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 19 | 19 |
Available for sale securities, Gross Unrealized Gains | 4 | 3 |
Available for sale securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 23 | 22 |
Equity securities available for sale | Mutual Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 419 | 447 |
Available for sale securities, Gross Unrealized Gains | 56 | 53 |
Available for sale securities, Gross Unrealized Losses | (2) | (8) |
Available-for-sale Securities | $ 473 | $ 492 |
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 | Mar. 31, 2016USD ($)item | Dec. 31, 2015USD ($) |
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | $ 34,686 | $ 67,217 |
Gross Unrealized Losses, Less than 12 Months | 1,600 | 3,182 |
Fair Value, 12 Months or More | 18,977 | 13,595 |
Gross Unrealized Losses, 12 Months or More | 2,001 | 2,092 |
Fair Value, Total | 53,663 | 80,812 |
Gross Unrealized Losses, Total | 3,601 | 5,274 |
Bonds available for sale | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 34,524 | 66,926 |
Gross Unrealized Losses, Less than 12 Months | 1,585 | 3,158 |
Fair Value, 12 Months or More | 18,977 | 13,595 |
Gross Unrealized Losses, 12 Months or More | 2,001 | 2,092 |
Fair Value, Total | 53,501 | 80,521 |
Gross Unrealized Losses, Total | $ 3,586 | 5,250 |
Number of securities in an unrealized loss position | item | 9,760 | |
Number of individual securities in continuous unrealized loss position for longer than twelve months | item | 2,931 | |
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 | $ 2 | 483 |
Gross Unrealized Losses, Less than 12 Months | 0 | 9 |
Fair Value, 12 Months or More | 11 | 1 |
Gross Unrealized Losses, 12 Months or More | 1 | 0 |
Fair Value, Total | 13 | 484 |
Gross Unrealized Losses, Total | 1 | 9 |
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 | 550 | 2,382 |
Gross Unrealized Losses, Less than 12 Months | 25 | 87 |
Fair Value, 12 Months or More | 545 | 268 |
Gross Unrealized Losses, 12 Months or More | 29 | 17 |
Fair Value, Total | 1,095 | 2,650 |
Gross Unrealized Losses, Total | 54 | 104 |
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 | 1,400 | 4,327 |
Gross Unrealized Losses, Less than 12 Months | 52 | 203 |
Fair Value, 12 Months or More | 1,212 | 832 |
Gross Unrealized Losses, 12 Months or More | 128 | 159 |
Fair Value, Total | 2,612 | 5,159 |
Gross Unrealized Losses, Total | 180 | 362 |
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 | 17,937 | 41,317 |
Gross Unrealized Losses, Less than 12 Months | 1,053 | 2,514 |
Fair Value, 12 Months or More | 9,297 | 5,428 |
Gross Unrealized Losses, 12 Months or More | 1,292 | 1,473 |
Fair Value, Total | 27,234 | 46,745 |
Gross Unrealized Losses, Total | 2,345 | 3,987 |
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 | 5,087 | 7,215 |
Gross Unrealized Losses, Less than 12 Months | 151 | 133 |
Fair Value, 12 Months or More | 4,828 | 4,318 |
Gross Unrealized Losses, 12 Months or More | 355 | 278 |
Fair Value, Total | 9,915 | 11,533 |
Gross Unrealized Losses, Total | 506 | 411 |
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 | 1,340 | 4,138 |
Gross Unrealized Losses, Less than 12 Months | 46 | 108 |
Fair Value, 12 Months or More | 863 | 573 |
Gross Unrealized Losses, 12 Months or More | 52 | 21 |
Fair Value, Total | 2,203 | 4,711 |
Gross Unrealized Losses, Total | 98 | 129 |
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 | 8,208 | 7,064 |
Gross Unrealized Losses, Less than 12 Months | 258 | 104 |
Fair Value, 12 Months or More | 2,221 | 2,175 |
Gross Unrealized Losses, 12 Months or More | 144 | 144 |
Fair Value, Total | 10,429 | 9,239 |
Gross Unrealized Losses, Total | 402 | 248 |
Equity securities available for sale | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 162 | 291 |
Gross Unrealized Losses, Less than 12 Months | 15 | 24 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 162 | 291 |
Gross Unrealized Losses, Total | $ 15 | 24 |
Number of securities in an unrealized loss position | item | 128 | |
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 | $ 69 | 91 |
Gross Unrealized Losses, Less than 12 Months | 13 | 16 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 69 | 91 |
Gross Unrealized Losses, Total | 13 | 16 |
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 | 93 | 200 |
Gross Unrealized Losses, Less than 12 Months | 2 | 8 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 93 | 200 |
Gross Unrealized Losses, Total | $ 2 | $ 8 |
INVESTMENTS (Details - Amorti53
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 243,059 | $ 242,347 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 253,785 | 248,245 |
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 | 732 | 1,122 |
Due after one year through five years, Amortized Cost | 6,357 | 9,847 |
Due after five years through ten years, Amortized Cost | 10,954 | 22,296 |
Due after ten years, Amortized Cost | 15,491 | 26,235 |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 23,553 | 26,271 |
Available for sale securities, Amortized Cost, Total | 57,087 | 85,771 |
Due in one year or less, Fair Value | 723 | 1,103 |
Due after one year through five years, Fair Value | 6,084 | 9,494 |
Due after five years through ten years, Fair Value | 9,972 | 20,686 |
Due after ten years, Fair Value | 14,175 | 23,755 |
Mortgage-backed, asset-backed and collateralized, Fair Value | 22,547 | 25,483 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 53,501 | 80,521 |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | 8,930 | 9,176 |
Due after one year through five years, Amortized Cost | 49,341 | 47,230 |
Due after five years through ten years, Amortized Cost | 51,660 | 54,120 |
Due after ten years, Amortized Cost | 68,108 | 68,440 |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 63,691 | 62,002 |
Available for sale securities, Amortized Cost, Total | 241,730 | 240,968 |
Due in one year or less, Fair Value | 9,092 | 9,277 |
Due after one year through five years, Fair Value | 52,088 | 49,196 |
Due after five years through ten years, Fair Value | 53,355 | 54,459 |
Due after ten years, Fair Value | 72,827 | 70,418 |
Mortgage-backed, asset-backed and collateralized, Fair Value | 66,423 | 64,895 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | $ 253,785 | $ 248,245 |
INVESTMENTS (Details - Realized
INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | $ 219 | $ 645 |
Gross Realized Losses | 557 | 123 |
Aggregate fair value of available for sale securities sold | 6,100 | 6,900 |
Net realized capital gains (losses) | (338) | 522 |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | 187 | 149 |
Gross Realized Losses | 549 | 118 |
Equity securities available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | 32 | 496 |
Gross Realized Losses | $ 8 | $ 5 |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 16,221 | $ 17,703 |
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 | $ 592 | $ 712 |
Fixed maturity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 15,344 | $ 16,782 |
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 | $ 3,403 | $ 3,369 |
Other Securities, Percent of Total | 21.00% | 19.00% |
Fixed maturity securities | Obligations of states, territories and political subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 0 | $ 75 |
Other Securities, Percent of Total | 0.00% | 0.00% |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 53 | $ 50 |
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 | $ 1,879 | $ 2,035 |
Other Securities, Percent of Total | 12.00% | 12.00% |
Fixed maturity securities | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 10,009 | $ 11,253 |
Other Securities, Percent of Total | 62.00% | 64.00% |
Fixed maturity securities | Residential mortgage-backed securities (RMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 1,953 | $ 2,230 |
Other Securities, Percent of Total | 12.00% | 13.00% |
Fixed maturity securities | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 687 | $ 750 |
Other Securities, Percent of Total | 4.00% | 4.00% |
Fixed maturity securities | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 7,369 | $ 8,273 |
Other Securities, Percent of Total | 46.00% | 47.00% |
Fixed maturity securities | Other | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 0 | $ 0 |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 877 | $ 921 |
Other Securities, Percent of Total | 5.00% | 5.00% |
INVESTMENTS (Details - Componen
INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Investment [Line Items] | ||
Total investment income | $ 3,127 | $ 3,990 |
Investment expenses | 114 | 152 |
Net investment income | 3,013 | 3,838 |
Fixed maturity securities, including short-term investments | ||
Investment [Line Items] | ||
Total investment income | 2,936 | 2,883 |
Equity securities | ||
Investment [Line Items] | ||
Total investment income | (22) | 15 |
Interest on mortgage and other loans | ||
Investment [Line Items] | ||
Total investment income | 389 | 339 |
Alternative investments | ||
Investment [Line Items] | ||
Total investment income | (366) | 586 |
Real estate | ||
Investment [Line Items] | ||
Total investment income | 53 | 26 |
Other investments | ||
Investment [Line Items] | ||
Total investment income | $ 137 | $ 141 |
INVESTMENTS (Details - Compon57
INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other-than-temporary impairments: | ||
Severity | $ (2) | $ (2) |
Change in intent | (29) | (24) |
Foreign currency declines | (6) | (29) |
Issuer-specific credit events | (131) | (68) |
Adverse projected cash flows | (36) | (5) |
Provision for loan losses | 30 | 24 |
Foreign exchange transactions | (520) | 254 |
Derivative instruments | (84) | 208 |
Impairments of investments in life settlements | (157) | (70) |
Other | 167 | 531 |
Total net realized capital gains | (1,106) | 1,341 |
Fixed maturity securities | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | (362) | 31 |
Equity securities | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | $ 24 | $ 491 |
INVESTMENTS (Details - Increase
INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $ 4,535 | $ 1,271 |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | 4,778 | 2,156 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | (95) | (382) |
Other investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $ (148) | $ (503) |
INVESTMENTS (Details - Rollforw
INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) - Fixed maturity securities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Than Temporary Impairment Credit Losses Recognized in Earnings | ||
Balance, beginning of year | $ 1,747 | $ 2,659 |
Increases due to: | ||
Credit impairments on new securities subject to impairment losses | 110 | 15 |
Additional credit impairments on previously impaired securities | 55 | 22 |
Reductions due to: | ||
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell | (150) | (42) |
Accretion on securities previously impaired due to credit | (239) | (188) |
Other | 0 | 0 |
Balance, end of year | $ 1,523 | $ 2,466 |
INVESTMENTS (Details - Purchase
INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost | $ 241,730 | $ 240,968 | |
Fair value | 256,555 | 251,160 | |
Purchased Credit Impaired (PCI) Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Contractually required payments (principal and interest) | 33,999 | ||
Cash flows expected to be collected | 27,609 | ||
Recorded investment in acquired securities | 18,476 | ||
Outstanding principal balance | 17,011 | 16,871 | |
Amortized cost | 12,442 | 12,303 | |
Fair value | 12,979 | $ 13,164 | |
Changes in activity for the accretable yield on PCI securities: | |||
Balance, beginning of year | 6,846 | $ 6,865 | |
Newly purchased PCI securities | 206 | 245 | |
Disposals | 0 | 0 | |
Accretion | (214) | (220) | |
Effect of changes in interest rate indices | (299) | (138) | |
Net reclassification from non-accretable difference, including effects of prepayments | 83 | 13 | |
Balance, end of year | $ 6,622 | $ 6,765 |
INVESTMENTS (Details - Pledged
INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Fair value of securities pledged | $ 1,282 | $ 1,742 |
Fair value of amount repledged | 140 | 0 |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 5,500 | 4,900 |
Short-term investments held in escrow | 496 | 439 |
FHLBs | ||
Investment [Line Items] | ||
Fair value of available for sale securities | 2,100 | 1,200 |
Amount owned by subsidiaries | 47 | 47 |
Secured financing | ||
Investment [Line Items] | ||
Fair value of available for sale securities | 1,455 | 1,145 |
Fair value of other securities | 1,897 | 1,740 |
Amounts Borrowed Under Repurchase and Securities Lending Agreements | 3,400 | 2,900 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,859 | 1,790 |
Securities Lending Agreements, Fair Value of Collateral | 1,493 | 1,095 |
Secured financing | U.S. government and government sponsored entities | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 52 | |
Secured financing | Overnight and continuous | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 30 | |
Secured financing | Up to 30 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 229 | 83 |
Securities Lending Agreements, Fair Value of Collateral | 101 | |
Secured financing | Up to 30 Days | U.S. government and government sponsored entities | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | 31 to 90 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 447 | 332 |
Securities Lending Agreements, Fair Value of Collateral | 674 | 971 |
Secured financing | 91 to 364 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,183 | 1,375 |
Securities Lending Agreements, Fair Value of Collateral | 680 | 124 |
Secured financing | 365 Days or Greater | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 8 | |
Secured financing | Bonds available for sale | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 50 | |
Securities Lending Agreements, Fair Value of Collateral | 54 | 57 |
Secured financing | Bonds available for sale | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 950 | 914 |
Secured financing | Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 451 | 124 |
Secured financing | Bonds available for sale | Up to 30 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 50 | |
Secured financing | Bonds available for sale | Up to 30 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 101 | |
Secured financing | Bonds available for sale | 31 to 90 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 57 | |
Secured financing | Bonds available for sale | 31 to 90 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 674 | 914 |
Secured financing | Bonds available for sale | 91 to 364 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 54 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 167 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 451 | 124 |
Secured financing | Bonds available for sale | 365 Days or Greater | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 8 | |
Secured financing | Other bond securities | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 52 | 49 |
Secured financing | Other bond securities | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,807 | 1,691 |
Secured financing | Other bond securities | U.S. government and government sponsored entities | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 30 | |
Secured financing | Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 8 | |
Secured financing | Other bond securities | Overnight and continuous | U.S. government and government sponsored entities | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 30 | |
Secured financing | Other bond securities | Up to 30 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 229 | 33 |
Secured financing | Other bond securities | 31 to 90 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 447 | 332 |
Secured financing | Other bond securities | 91 to 364 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 52 | 49 |
Secured financing | Other bond securities | 91 to 364 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,131 | 1,326 |
Secured financing | Other bond securities | 91 to 364 Days | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 8 | |
GIAs | ||
Investment [Line Items] | ||
Fair value of other securities | $ 2,400 | $ 2,400 |
LENDING ACTIVITIES (Details - C
LENDING ACTIVITIES (Details - Composition of Mortgages and other loans receivable) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 30,953 | $ 29,873 | ||
Allowance for losses | (277) | (308) | $ (250) | $ (271) |
Mortgage and other loans receivable, net | 30,676 | 29,565 | ||
Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 22,159 | 22,067 | ||
Allowance for losses | $ (166) | $ (171) | $ (143) | $ (159) |
Commercial mortgages | California | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 12.00% | 12.00% | ||
Commercial mortgages | New York | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 23.00% | 22.00% | ||
Residential Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 3,084 | $ 2,758 | ||
Life insurance policy loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 2,568 | 2,597 | ||
Commercial loans, other loans and notes receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 3,142 | $ 2,451 |
LENDING ACTIVITIES (Details -63
LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commercial Mortgage Recorded Investment [Line Items] | ||||
Mortgage and other loans receivable, net | $ 30,676 | $ 29,565 | ||
Allowance for losses | 277 | 308 | $ 250 | $ 271 |
Apartments | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 4,014 | 3,916 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 3 | 3 | ||
Mortgage and other loans receivable, net | 4,017 | 3,919 | ||
Allowance for losses, Specific | 0 | 0 | ||
Allowance for losses, General | 41 | 35 | ||
Allowance for losses | 41 | 35 | ||
Offices | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 7,567 | 7,484 | ||
Restructured | 151 | 156 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 15 | 205 | ||
Mortgage and other loans receivable, net | 7,733 | 7,845 | ||
Allowance for losses, Specific | 4 | 16 | ||
Allowance for losses, General | 47 | 47 | ||
Allowance for losses | 51 | 63 | ||
Retail | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 4,861 | 4,809 | ||
Restructured | 18 | 25 | ||
90 days or less delinquent | 0 | 4 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 4,879 | 4,838 | ||
Allowance for losses, Specific | 1 | 1 | ||
Allowance for losses, General | 30 | 29 | ||
Allowance for losses | 31 | 30 | ||
Industrial | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,835 | 1,902 | ||
Restructured | 0 | 6 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 6 | 6 | ||
Mortgage and other loans receivable, net | 1,841 | 1,914 | ||
Allowance for losses, Specific | 6 | 6 | ||
Allowance for losses, General | 6 | 8 | ||
Allowance for losses | 12 | 14 | ||
Hotel | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 2,255 | 2,082 | ||
Restructured | 16 | 16 | ||
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 | 2,277 | 2,098 | ||
Allowance for losses, Specific | 1 | 1 | ||
Allowance for losses, General | 18 | 15 | ||
Allowance for losses | 19 | 16 | ||
Others | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,400 | 1,435 | ||
Restructured | 0 | 6 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 12 | 12 | ||
Mortgage and other loans receivable, net | 1,412 | 1,453 | ||
Allowance for losses, Specific | 0 | 0 | ||
Allowance for losses, General | 12 | 13 | ||
Allowance for losses | $ 12 | $ 13 | ||
Commercial mortgages | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Number of loans in good standing | loan | 816 | 830 | ||
Number of loans restructured | loan | 5 | 9 | ||
Number of loans 90 days or less delinquent | loan | 0 | 1 | ||
Number of loans greater than 90 days delinquent or in process of foreclosure | loan | 8 | 9 | ||
Number of Loans | loan | 829 | 849 | ||
In good standing | $ 21,932 | $ 21,628 | ||
Restructured | 185 | 209 | ||
90 days or less delinquent | 0 | 4 | ||
Greater than 90 days delinquent or in process of foreclosure | 42 | 226 | ||
Mortgage and other loans receivable, net | 22,159 | 22,067 | ||
Allowance for losses, Specific | 12 | 24 | ||
Allowance for losses, General | 154 | 147 | ||
Allowance for losses | $ 166 | $ 171 | ||
Percentage of loans that are current as to payments of principal and interest | 99.00% | 98.00% | ||
Percentage restructured | 1.00% | 1.00% | ||
Percentage greater than 90 days delinquent or in foreclosure | 0.00% | 1.00% | ||
Percentage Total | 100.00% | 100.00% | ||
Percentage of loans with valuation allowance, Genaral | 1.00% | 1.00% | ||
Percentage of loans with allowance for losses | 1.00% | 1.00% | ||
Percentage of current commercial mortgages held | 100.00% |
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 | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in the allowance for losses on Mortgage and other loans receivable | ||
Allowance, beginning of year | $ 308 | $ 271 |
Loans charged off | (11) | (1) |
Recoveries of loans previously charged off | 11 | 4 |
Net charge-offs | 0 | 3 |
Provision for loan losses | (31) | (24) |
Other | 0 | 0 |
Activity of discontinued operations | 0 | 0 |
Allowance, end of period | 277 | 250 |
Loans modified in a troubled debt restructuring | 0 | 65 |
Commercial mortgages | ||
Changes in the allowance for losses on Mortgage and other loans receivable | ||
Allowance, beginning of year | 171 | 159 |
Loans charged off | (11) | 0 |
Recoveries of loans previously charged off | 11 | 4 |
Net charge-offs | 0 | 4 |
Provision for loan losses | (5) | (20) |
Other | 0 | 0 |
Activity of discontinued operations | 0 | 0 |
Allowance, end of period | 166 | 143 |
Allowance related to individually assessed credit losses | 12 | 45 |
Commercial mortgage loans | 298 | 131 |
Other Loans | ||
Changes in the allowance for losses on Mortgage and other loans receivable | ||
Allowance, beginning of year | 137 | 112 |
Loans charged off | 0 | (1) |
Recoveries of loans previously charged off | 0 | 0 |
Net charge-offs | 0 | (1) |
Provision for loan losses | (26) | (4) |
Other | 0 | 0 |
Activity of discontinued operations | 0 | 0 |
Allowance, end of period | $ 111 | $ 107 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Bonds available for sale | $ 253,785 | $ 248,245 |
Other bond securities | 15,344 | 16,782 |
Mortgage and other loans receivable | 30,676 | 29,565 |
Other invested assets | 28,480 | 29,794 |
Liabilities: | ||
Long-term Debt | 31,952 | 29,249 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 28,480 | 29,794 |
Real Estate and Investment Funds | ||
Liabilities: | ||
Off-balance sheet exposure | 113 | 131 |
Consolidated VIE | ||
Assets: | ||
Bonds available for sale | 10,309 | 10,324 |
Other bond securities | 5,746 | 6,167 |
Mortgage and other loans receivable | 1,869 | 2,093 |
Other invested assets | 5,411 | 3,598 |
Other assets | 2,010 | 1,924 |
Total assets | 25,345 | 24,106 |
Liabilities: | ||
Long-term Debt | 4,153 | 2,597 |
Other liabilities | 829 | 556 |
Total liabilities | 4,982 | 3,153 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 5,411 | 3,598 |
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 | 1 |
Other invested assets | 2,074 | 489 |
Other assets | 574 | 29 |
Total assets | 2,649 | 519 |
Liabilities: | ||
Long-term Debt | 1,545 | 0 |
Other liabilities | 259 | 34 |
Total liabilities | 1,804 | 34 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 2,074 | 489 |
Consolidated VIE | Securitization Vehicles | ||
Assets: | ||
Bonds available for sale | 10,294 | 10,309 |
Other bond securities | 5,379 | 5,756 |
Mortgage and other loans receivable | 1,743 | 1,960 |
Other invested assets | 467 | 477 |
Other assets | 918 | 1,349 |
Total assets | 18,801 | 19,851 |
Liabilities: | ||
Long-term Debt | 915 | 1,025 |
Other liabilities | 194 | 236 |
Total liabilities | 1,109 | 1,261 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 467 | 477 |
Consolidated VIE | Structured Investment Vehicles | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 358 | 387 |
Mortgage and other loans receivable | 0 | 0 |
Other invested assets | 0 | 0 |
Other assets | 58 | 94 |
Total assets | 416 | 481 |
Liabilities: | ||
Long-term Debt | 52 | 53 |
Other liabilities | 1 | 1 |
Total liabilities | 53 | 54 |
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 | 2,846 | 2,608 |
Other assets | 301 | 293 |
Total assets | 3,147 | 2,901 |
Liabilities: | ||
Long-term Debt | 1,636 | 1,513 |
Other liabilities | 229 | 214 |
Total liabilities | 1,865 | 1,727 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 2,846 | 2,608 |
Consolidated VIE | Other | ||
Assets: | ||
Bonds available for sale | 15 | 15 |
Other bond securities | 9 | 24 |
Mortgage and other loans receivable | 125 | 132 |
Other invested assets | 24 | 24 |
Other assets | 159 | 159 |
Total assets | 332 | 354 |
Liabilities: | ||
Long-term Debt | 5 | 6 |
Other liabilities | 146 | 71 |
Total liabilities | 151 | 77 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 24 | 24 |
Unconsolidated VIE | ||
Assets: | ||
Other invested assets | 14,400 | 3,800 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 522,157 | 28,316 |
Maximum Exposure to Loss, On-Balance Sheet | 14,834 | 4,061 |
Maximum Exposure to Loss, Off-Balance Sheet | 3,137 | 1,398 |
Total maximum exposure to loss | 17,971 | 5,459 |
Other invested assets | 14,400 | 3,800 |
Unconsolidated VIE | Real Estate and Investment Funds | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 512,798 | 21,951 |
Maximum Exposure to Loss, On-Balance Sheet | 13,724 | 3,072 |
Maximum Exposure to Loss, Off-Balance Sheet | 2,038 | 398 |
Total maximum exposure to loss | 15,762 | 3,470 |
Unconsolidated VIE | Affordable Housing Partnerships | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 4,992 | 5,255 |
Maximum Exposure to Loss, On-Balance Sheet | 837 | 774 |
Maximum Exposure to Loss, Off-Balance Sheet | 0 | 0 |
Total maximum exposure to loss | 837 | 774 |
Unconsolidated VIE | Other | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 4,367 | 1,110 |
Maximum Exposure to Loss, On-Balance Sheet | 273 | 215 |
Maximum Exposure to Loss, Off-Balance Sheet | 1,099 | 1,000 |
Total maximum exposure to loss | $ 1,372 | $ 1,215 |
DERIVATIVES AND HEDGE ACCOUNT66
DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | $ 122,163 | $ 102,768 |
Gross Derivative Assets, Fair Value | 5,550 | 4,131 |
Gross Derivative Liabilities, Notional Amount | 56,925 | 82,913 |
Gross Derivative Liabilities, Fair Value | 5,159 | 4,048 |
Derivative assets, Counterparty netting | (2,023) | (1,268) |
Derivative assets, Cash collateral | (2,036) | (1,554) |
Total derivative assets on consolidated balance sheet | 1,491 | 1,309 |
Derivative liabilities, Counterparty netting | (2,023) | (1,268) |
Derivative liabilities, Cash collateral | (992) | (760) |
Total derivative liabilities on consolidated balance sheet | 2,144 | 2,020 |
Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Fair Value | 0 | 0 |
Gross Derivative Liabilities, Fair Value | 3,300 | 2,300 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 512 | 301 |
Gross Derivative Assets, Fair Value | 4 | 1 |
Gross Derivative Liabilities, Notional Amount | 527 | 725 |
Gross Derivative Liabilities, Fair Value | 3 | 2 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 2,607 | 2,903 |
Gross Derivative Assets, Fair Value | 209 | 207 |
Gross Derivative Liabilities, Notional Amount | 1,369 | 914 |
Gross Derivative Liabilities, Fair Value | 65 | 56 |
Derivatives designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 0 | 0 |
Gross Derivative Assets, Fair Value | 0 | 0 |
Gross Derivative Liabilities, Notional Amount | 116 | 121 |
Gross Derivative Liabilities, Fair Value | 13 | 23 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 62,278 | 45,846 |
Gross Derivative Assets, Fair Value | 4,401 | 3,161 |
Gross Derivative Liabilities, Notional Amount | 36,183 | 65,733 |
Gross Derivative Liabilities, Fair Value | 3,107 | 2,197 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 8,564 | 9,472 |
Gross Derivative Assets, Fair Value | 668 | 559 |
Gross Derivative Liabilities, Notional Amount | 11,325 | 8,900 |
Gross Derivative Liabilities, Fair Value | 1,319 | 1,148 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 9,648 | 6,656 |
Gross Derivative Assets, Fair Value | 243 | 177 |
Gross Derivative Liabilities, Notional Amount | 6,040 | 5,028 |
Gross Derivative Liabilities, Fair Value | 17 | 45 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 0 | 0 |
Gross Derivative Assets, Fair Value | 0 | 0 |
Gross Derivative Liabilities, Notional Amount | 0 | 0 |
Gross Derivative Liabilities, Fair Value | 0 | 0 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 4 | 4 |
Gross Derivative Assets, Fair Value | 3 | 3 |
Gross Derivative Liabilities, Notional Amount | 1,152 | 1,289 |
Gross Derivative Liabilities, Fair Value | 493 | 508 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 38,550 | 37,586 |
Gross Derivative Assets, Fair Value | 22 | 23 |
Gross Derivative Liabilities, Notional Amount | 213 | 203 |
Gross Derivative Liabilities, Fair Value | $ 142 | $ 69 |
DERIVATIVES AND HEDGE ACCOUNT67
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative Liabilities, Notional Amount | $ 56,925 | $ 82,913 |
Derivative Liabilities, Fair Value | 5,159 | 4,048 |
Collateral | ||
Collateral posted to third parties for derivative transactions | 3,300 | 3,000 |
Collateral obtained from third parties for derivative transactions | 2,100 | 1,600 |
Global Capital Markets (GCM) derivatives | ||
Derivative [Line Items] | ||
Derivative Liabilities, Notional Amount | 1,000 | 1,100 |
Derivative Liabilities, Fair Value | $ 468 | $ 483 |
DERIVATIVES AND HEDGE ACCOUNT68
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $ (5) | $ 94 |
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 | 1 | 1 |
Gain (loss) recognized in earnings on hedged items | (1) | (1) |
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 | 0 | 0 |
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 | |
Gain (loss) recognized in earnings on hedged items | 2 | 3 |
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 | 2 | 3 |
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 | 0 | 13 |
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 | 0 | 13 |
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 | 34 | 132 |
Gain (loss) recognized in earnings on hedged items | (64) | (128) |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | (29) | 1 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | (1) | 3 |
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 hedged items | (1) | |
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 | (1) | |
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 | 7 | 6 |
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 | 7 | 6 |
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 | 0 | 16 |
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 | 0 | 16 |
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 | 10 | (6) |
Gain (loss) recognized in earnings on hedged items | (12) | 5 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | (2) | (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 | (139) | 584 |
Derivatives not designated as hedging instruments | Net realized capital gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (35) | 171 |
Derivatives not designated as hedging instruments | Net investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (1) | 27 |
Derivatives not designated as hedging instruments | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (130) | 362 |
Derivatives not designated as hedging instruments | Policy fees | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 20 | 19 |
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 7 | 5 |
Derivatives not designated as hedging instruments | Fair value hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (139) | 584 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 770 | 356 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (28) | 322 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (131) | (90) |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 0 | (1) |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 6 | 147 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 16 | 23 |
Derivatives not designated as hedging instruments | Embedded derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | $ (772) | $ (173) |
DERIVATIVES AND HEDGE ACCOUNT69
DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Credit Derivatives [Line Items] | ||
Collateral posted | $ 3,300 | $ 3,000 |
Fair value of hybrid securities | 5,300 | 5,700 |
Par value of hybrid securities | 10,900 | 11,200 |
Credit Risk Related Contingent Features [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral posted | 2,300 | 2,100 |
Aggregate fair value of net liability position | 2,200 | $ 2,000 |
Additional collateral postings and termination payments | $ 148 | |
Global Capital Markets (GCM) derivatives | Super Senior CDS | Arbitrage | Multi-sector CDOs | ||
Credit Derivatives [Line Items] | ||
Derivative weighted average maturity | 6 years |
CONTINGENCIES, COMMITMENTS AN70
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Loss Contingencies) $ in Millions | Jun. 15, 2015USD ($) | Oct. 22, 2014USD ($) | Nov. 15, 2013individual | Mar. 11, 2013class | Nov. 29, 2012USD ($)item | Nov. 21, 2011 | Dec. 17, 2010USD ($)item | Feb. 25, 2010individual | Mar. 31, 2016USD ($)complaintmultiple | Jan. 31, 2009complaint | Feb. 09, 2015complaint |
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Number of states participating in the accident and health products examination | item | 50 | ||||||||||
Other Commitments | |||||||||||
Other Commitments | $ 2,700 | ||||||||||
Chartis U.S. | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Settlement agreement, number of jurisdictions | item | 50 | ||||||||||
Civil penalty paid | $ 50 | ||||||||||
AIG | Regulatory fines and penalties | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Litigation Settlement, Amount | $ 100 | ||||||||||
AIG | Outstanding premium taxes and assessments | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Litigation Settlement, Amount | 46.5 | ||||||||||
AIG | Contingent fines | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Litigation Settlement, Amount | $ 150 | ||||||||||
Consolidated 2008 Securities Litigation | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Number of separate proceedings filed | complaint | 8 | ||||||||||
Payment for legal settlement | $ 960 | ||||||||||
Starr International Litigation | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Number of separate proceedings filed | class | 2 | ||||||||||
Damages claimed | $ 40,000 | ||||||||||
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 | individual | 286,908 | ||||||||||
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 | $ 3,200 | ||||||||||
Individual Securities Litigations [Member] | |||||||||||
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 actions brought against AIG | complaint | 9 | ||||||||||
Number of cases that have been settled | complaint | 7 |
CONTINGENCIES, COMMITMENTS AN71
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) $ in Millions | Mar. 31, 2016USD ($) |
Other Operations | |
Guarantor Obligations [Line Items] | |
Amount outstanding under standby letters of credit at end of period | $ 208 |
EQUITY (Details - Shares Outsta
EQUITY (Details - Shares Outstanding) - USD ($) | Mar. 28, 2016 | Sep. 28, 2015 | Jun. 25, 2015 | Mar. 31, 2016 | Feb. 11, 2016 |
The following table presents a roll forward of outstanding shares: | |||||
Shares, beginning of year | (712,754,875) | ||||
Shares, beginning of year | 1,906,671,492 | ||||
Shares, beginning of year | 1,193,916,617 | ||||
Issuances (in shares) | 10,968 | ||||
Shares repurchased | (63,189,226) | ||||
Shares, end of period | (775,933,133) | ||||
Shares, end of period | 1,906,671,492 | ||||
Shares, end of period | 1,130,738,359 | ||||
Dividend paid (in dollars per share) | $ 0.32 | $ 0.28 | $ 0.125 | ||
Shares repurchased (in shares) | 63,189,226 | ||||
Common Stock Issued | |||||
The following table presents a roll forward of outstanding shares: | |||||
Shares, beginning of year | 1,906,671,492 | ||||
Issuances (in shares) | 0 | ||||
Shares repurchased | 0 | ||||
Shares, end of period | 1,906,671,492 | ||||
Shares repurchased (in shares) | 0 | ||||
Common Stock Issued | AIG | |||||
The following table presents a roll forward of outstanding shares: | |||||
Shares repurchased | (63,000,000) | ||||
Aggregate repurchase authorization purchase amount | $ 5,000,000,000 | ||||
Common stock authorized to be repurchased | $ 0 | $ 4,600,000,000 | |||
Shares repurchased (in shares) | 63,000,000 | ||||
Aggregate purchase price of repurchased shares | $ 3,500,000,000 | ||||
Treasury Stock | |||||
The following table presents a roll forward of outstanding shares: | |||||
Shares, beginning of year | (712,754,875) | ||||
Issuances (in shares) | 10,968 | ||||
Shares repurchased | (63,189,226) | ||||
Shares, end of period | (775,933,133) | ||||
Shares repurchased (in shares) | 63,189,226 | ||||
Warrants | |||||
The following table presents a roll forward of outstanding shares: | |||||
Amount paid to purchase warrants | $ 173,000,000 | ||||
Warrants repurchased | 10,000,000 |
EQUITY (Details - Rollforward o
EQUITY (Details - Rollforward of Accumulated other comprehensive income) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
A rollforward of Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning of period, net of tax | $ 2,537 | |
Deferred tax asset (liability) | (347) | $ (291) |
Other Comprehensive Income (Loss) | 2,988 | 37 |
Other comprehensive income (loss), Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss | (349) | (72) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment | (92) | (459) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment | 2 | 29 |
Balance, end of period, net of tax | 5,525 | |
Accumulated Other Comprehensive Income | ||
A rollforward of Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning of period, net of tax | 2,537 | 10,617 |
Change in unrealized appreciation (depreciation) of investments | 4,535 | 1,271 |
Change in deferred acquisition costs adjustment and other | (345) | 61 |
Change in future policy benefits | (728) | (403) |
Changes in foreign currency translation adjustments | (132) | (632) |
Change in net actuarial (gain) loss | 12 | 43 |
Change in prior service (cost) credit | (7) | (12) |
Deferred tax asset (liability) | (347) | (291) |
Other Comprehensive Income (Loss) | 2,988 | 37 |
Noncontrolling interests | 0 | (3) |
Balance, end of period, net of tax | 5,525 | 10,657 |
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 | 696 | 1,043 |
Change in unrealized appreciation (depreciation) of investments | (548) | (59) |
Change in deferred acquisition costs adjustment and other | 15 | (19) |
Change in future policy benefits | 0 | (23) |
Deferred tax asset (liability) | 184 | 29 |
Other Comprehensive Income (Loss) | (349) | (72) |
Balance, end of period, net of tax | 347 | 971 |
Unrealized Appreciation (Depreciation) of All Other Investments | ||
A rollforward of Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning of period, net of tax | 5,566 | 12,327 |
Change in unrealized appreciation (depreciation) of investments | 5,083 | 1,330 |
Change in deferred acquisition costs adjustment and other | (360) | 80 |
Change in future policy benefits | (728) | (380) |
Deferred tax asset (liability) | (568) | (491) |
Other Comprehensive Income (Loss) | 3,427 | 539 |
Balance, end of period, net of tax | 8,993 | 12,866 |
Foreign Currency Translation Adjustments | ||
A rollforward of Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning of period, net of tax | (2,879) | (1,784) |
Changes in foreign currency translation adjustments | (132) | (632) |
Deferred tax asset (liability) | 40 | 173 |
Other Comprehensive Income (Loss) | (92) | (459) |
Balance, end of period, net of tax | (2,971) | (2,240) |
Retirement Plan Liabilities Adjustment | ||
A rollforward of Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning of period, net of tax | (846) | (969) |
Change in net actuarial (gain) loss | 12 | 43 |
Change in prior service (cost) credit | (7) | (12) |
Deferred tax asset (liability) | (3) | (2) |
Other Comprehensive Income (Loss) | 2 | 29 |
Balance, end of period, net of tax | $ (844) | $ (940) |
EQUITY (Details - Other compreh
EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | $ 3,051 | $ 790 |
Less: Reclassification adjustments included in net income | (284) | 462 |
Total other comprehensive income (loss), before income tax expense (benefit) | 3,335 | 328 |
Less: Income tax expense (benefit) | 347 | 291 |
Other comprehensive income (loss) | 2,988 | 37 |
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 | (458) | (92) |
Less: Reclassification adjustments included in net income | 75 | 9 |
Total other comprehensive income (loss), before income tax expense (benefit) | (533) | (101) |
Less: Income tax expense (benefit) | (184) | (29) |
Other comprehensive income (loss) | (349) | (72) |
Unrealized Appreciation (Depreciation) of All Other Investments | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | 3,640 | 1,507 |
Less: Reclassification adjustments included in net income | (355) | 477 |
Total other comprehensive income (loss), before income tax expense (benefit) | 3,995 | 1,030 |
Less: Income tax expense (benefit) | 568 | 491 |
Other comprehensive income (loss) | 3,427 | 539 |
Accumulated Translation Adjustment [Member] | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | (132) | (632) |
Less: Reclassification adjustments included in net income | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | (132) | (632) |
Less: Income tax expense (benefit) | (40) | (173) |
Other comprehensive income (loss) | (92) | (459) |
Retirement Plan Liabilities Adjustment | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | 1 | 7 |
Less: Reclassification adjustments included in net income | (4) | (24) |
Total other comprehensive income (loss), before income tax expense (benefit) | 5 | 31 |
Less: Income tax expense (benefit) | 3 | 2 |
Other comprehensive income (loss) | $ 2 | $ 29 |
EQUITY (Details - Reclassificat
EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other realized capital gains | $ (904) | $ 1,438 |
Amortization of deferred acquisition costs | 1,262 | 1,350 |
Policyholder benefits and losses incurred | 6,387 | 6,551 |
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | (284) | 462 |
Income from continuing operations before income tax expense (benefit) | (214) | 3,776 |
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) | (284) | 462 |
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 | 75 | 9 |
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 | 75 | 9 |
Income from continuing operations before income tax expense (benefit) | 75 | 9 |
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 | (355) | 477 |
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 | (413) | 512 |
Amortization of deferred acquisition costs | 58 | (35) |
Policyholder benefits and losses incurred | 0 | 0 |
Income from continuing operations before income tax expense (benefit) | (355) | 477 |
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 | (4) | (24) |
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 | (4) | (24) |
Prior-Service Costs | 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 | 4 | 12 |
Actuarial Gains (Losses) | 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 | $ (8) | $ (36) |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator for EPS: | ||
Income from continuing operations | $ (156) | $ 2,476 |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | (20) | 9 |
Net income (loss) attributable to AIG from continuing operations | (136) | 2,467 |
Income (loss) from discontinued operations | (47) | 1 |
Net income attributable to AIG common shareholders | $ (183) | $ 2,468 |
Denominator for EPS: | ||
Weighted average shares outstanding - basic | 1,156,548,459 | 1,365,951,690 |
Dilutive shares | 0 | 20,311,859 |
Weighted average shares outstanding - diluted | 1,156,548,459 | 1,386,263,549 |
Basic: | ||
Income from continuing operations | $ (0.12) | $ 1.81 |
Income (loss) from discontinued operations | (0.04) | 0 |
Net income attributable to AIG | (0.16) | 1.81 |
Diluted: | ||
Income from continuing operations | (0.12) | 1.78 |
Income (loss) from discontinued operations | (0.04) | 0 |
Net Income attributable to AIG | $ (0.16) | $ 1.78 |
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive | 600,000 | 600,000 |
EMPLOYEE BENEFITS (Details - Pe
EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pensions | ||
Components of net periodic benefit cost: | ||
Service cost | $ 12 | $ 63 |
Interest cost | 51 | 61 |
Expected return on assets | (80) | (78) |
Amortization of prior service (credit) cost | 0 | (9) |
Amortization of net (gain) loss | 8 | 35 |
Curtailment (gain) loss | (2) | 0 |
Net periodic benefit cost | (11) | 72 |
U.S. Pension Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 4 | 52 |
Interest cost | 46 | 55 |
Expected return on assets | (73) | (72) |
Amortization of prior service (credit) cost | 0 | (8) |
Amortization of net (gain) loss | 6 | 32 |
Curtailment (gain) loss | 0 | |
Net periodic benefit cost | (17) | 59 |
Non U.S. Pension Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 8 | 11 |
Interest cost | 5 | 6 |
Expected return on assets | (7) | (6) |
Amortization of prior service (credit) cost | 0 | (1) |
Amortization of net (gain) loss | 2 | 3 |
Curtailment (gain) loss | (2) | 0 |
Net periodic benefit cost | 6 | 13 |
Postretirement Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 2 | 3 |
Interest cost | 2 | 3 |
Amortization of prior service (credit) cost | (2) | (3) |
Amortization of net (gain) loss | 0 | 0 |
Net periodic benefit cost | 2 | 3 |
U.S. Postretirement Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 1 | 2 |
Interest cost | 1 | 2 |
Amortization of prior service (credit) cost | (2) | (3) |
Amortization of net (gain) loss | 0 | 0 |
Net periodic benefit cost | 0 | 1 |
Non U.S. Postretirement Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 1 | 1 |
Interest cost | 1 | 1 |
Net periodic benefit cost | $ 2 | $ 2 |
INCOME TAXES (Details - Income
INCOME TAXES (Details - Income (loss) from continuing operations and income tax expense (benefit)) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income (loss) from continuing operations before income tax expense (benefit) | |||
Income (loss) from continuing operations before income tax expense (benefit) | $ (214) | $ 3,776 | |
U.S.: | |||
Income tax expense (benefit) | (58) | 1,300 | |
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, pre-tax income (loss) | |||
Income (loss) from continuing operations before income tax expense (benefit) | (214) | 3,776 | |
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, tax expense/benefit | |||
Income tax expense (benefit) | $ (58) | $ 1,300 | |
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% | |
Adjustments: | |||
Amounts attributable to continuing operations (as a percent) | 27.10% | 34.40% | |
Accounting for Uncertainty in Income Taxes | |||
Unrecognized tax benefits, excluding interest and penalties | $ 4,500 | $ 4,300 | |
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 100 | 100 | |
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 4,400 | 4,200 | |
Unrecognized tax benefits, interest and penalties accrued | 1,200 | $ 1,200 | |
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties | $ 51 | $ 12 | |
Unrecognized tax benefits, period of reasonably possible change in balance | 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. | ||
Deferred tax asset valuation allowance allocated to other comprehensive income | $ 800 | ||
Deferred tax asset valuation allowance recognized | $ 34 |
INFORMATION PROVIDED IN CONNE79
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Short-term investments | $ 10,914 | $ 10,132 | ||
Other investments | 331,932 | 328,222 | ||
Total investments | 342,846 | 338,354 | ||
Cash | 1,499 | 1,629 | $ 1,823 | $ 1,758 |
Other assets, including deferred income taxes | 158,432 | 156,859 | ||
Total assets | 502,777 | 496,842 | ||
Liabilities: | ||||
Insurance liabilities | 274,789 | 271,645 | ||
Long-term Debt | 31,952 | 29,249 | ||
Other liabilities, including intercompany balances | 106,955 | 105,738 | ||
Total liabilities | 413,696 | 406,632 | ||
Total AIG shareholders' equity | 88,518 | 89,658 | ||
Non-redeemable noncontrolling interests | 563 | 552 | ||
Total equity | 89,081 | 90,210 | 108,367 | 107,272 |
Total liabilities and equity | 502,777 | 496,842 | ||
AIG (As Guarantor) | ||||
Assets: | ||||
Short-term investments | 4,391 | 4,042 | ||
Other investments | 5,437 | 7,425 | ||
Total investments | 9,828 | 11,467 | ||
Cash | 36 | 34 | 65 | 26 |
Loans to subsidiaries | 35,109 | 35,927 | ||
Investment in consolidated subsidiaries | 55,010 | 51,151 | ||
Other assets, including deferred income taxes | 24,470 | 23,299 | ||
Total assets | 124,453 | 121,878 | ||
Liabilities: | ||||
Long-term Debt | 22,133 | 19,777 | ||
Other liabilities, including intercompany balances | 13,407 | 11,869 | ||
Loans from subsidiaries | 395 | 574 | ||
Total liabilities | 35,935 | 32,220 | ||
Total AIG shareholders' equity | 88,518 | 89,658 | ||
Total equity | 88,518 | 89,658 | ||
Total liabilities and equity | 124,453 | 121,878 | ||
AIGLH | ||||
Assets: | ||||
Cash | 7 | 116 | 8 | 91 |
Investment in consolidated subsidiaries | 30,908 | 30,239 | ||
Other assets, including deferred income taxes | 125 | 258 | ||
Total assets | 31,040 | 30,613 | ||
Liabilities: | ||||
Long-term Debt | 678 | 704 | ||
Other liabilities, including intercompany balances | 54 | 201 | ||
Loans from subsidiaries | 0 | 3 | ||
Total liabilities | 732 | 908 | ||
Total AIG shareholders' equity | 30,308 | 29,705 | ||
Total equity | 30,308 | 29,705 | ||
Total liabilities and equity | 31,040 | 30,613 | ||
Other Subsidiaries | ||||
Assets: | ||||
Short-term investments | 10,635 | 9,637 | ||
Other investments | 326,495 | 320,797 | ||
Total investments | 337,130 | 330,434 | ||
Cash | 1,456 | 1,479 | $ 1,750 | $ 1,641 |
Loans to subsidiaries | 411 | 578 | ||
Other assets, including deferred income taxes | 137,311 | 135,690 | ||
Total assets | 476,308 | 468,181 | ||
Liabilities: | ||||
Insurance liabilities | 274,789 | 271,645 | ||
Long-term Debt | 9,141 | 8,768 | ||
Other liabilities, including intercompany balances | 101,237 | 99,777 | ||
Loans from subsidiaries | 35,125 | 35,928 | ||
Total liabilities | 420,292 | 416,118 | ||
Total AIG shareholders' equity | 55,453 | 51,511 | ||
Non-redeemable noncontrolling interests | 563 | 552 | ||
Total equity | 56,016 | 52,063 | ||
Total liabilities and equity | 476,308 | 468,181 | ||
Reclassifications and Eliminations | ||||
Assets: | ||||
Short-term investments | (4,112) | (3,547) | ||
Other investments | 0 | |||
Total investments | (4,112) | (3,547) | ||
Loans to subsidiaries | (35,520) | (36,505) | ||
Investment in consolidated subsidiaries | (85,918) | (81,390) | ||
Other assets, including deferred income taxes | (3,474) | (2,388) | ||
Total assets | (129,024) | (123,830) | ||
Liabilities: | ||||
Other liabilities, including intercompany balances | (7,743) | (6,109) | ||
Loans from subsidiaries | (35,520) | (36,505) | ||
Total liabilities | (43,263) | (42,614) | ||
Total AIG shareholders' equity | (85,761) | (81,216) | ||
Total equity | (85,761) | (81,216) | ||
Total liabilities and equity | $ (129,024) | $ (123,830) |
INFORMATION PROVIDED IN CONNE80
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Other income | $ 11,779 | $ 15,975 |
Total revenues | 11,779 | 15,975 |
Expenses: | ||
Interest expense | 306 | 340 |
Net losses on extinguishment of debt | 83 | 68 |
Other expenses | 11,604 | 11,791 |
Total benefits, losses and expenses | 11,993 | 12,199 |
Income (loss) from continuing operations before income tax expense (benefit) | (214) | 3,776 |
Income tax expense (benefit) | (58) | 1,300 |
Income from continuing operations | (156) | 2,476 |
Income (loss) from discontinued operations, net of income taxes | (47) | 1 |
Net income | (203) | 2,477 |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | (20) | 9 |
Net income (loss) attributable to AIG | (183) | 2,468 |
AIG (As Guarantor) | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | (944) | 2,757 |
Other income | (63) | 150 |
Total revenues | (1,007) | 2,907 |
Expenses: | ||
Interest expense | 244 | 289 |
Net losses on extinguishment of debt | 77 | 61 |
Other expenses | 191 | 246 |
Total benefits, losses and expenses | 512 | 596 |
Income (loss) from continuing operations before income tax expense (benefit) | (1,519) | 2,311 |
Income tax expense (benefit) | (1,337) | (157) |
Income from continuing operations | (182) | 2,468 |
Income (loss) from discontinued operations, net of income taxes | (1) | 0 |
Net income | (183) | 2,468 |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to AIG | (183) | 2,468 |
AIGLH | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | (1,683) | 773 |
Other income | 5 | 0 |
Total revenues | (1,678) | 773 |
Expenses: | ||
Interest expense | 14 | 16 |
Net losses on extinguishment of debt | 0 | 0 |
Other expenses | 7 | (5) |
Total benefits, losses and expenses | 21 | 11 |
Income (loss) from continuing operations before income tax expense (benefit) | (1,699) | 762 |
Income tax expense (benefit) | (6) | (43) |
Income from continuing operations | (1,693) | 805 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 |
Net income | (1,693) | 805 |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to AIG | (1,693) | 805 |
Other Subsidiaries | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Other income | 12,038 | 15,914 |
Total revenues | 12,038 | 15,914 |
Expenses: | ||
Interest expense | 49 | 65 |
Net losses on extinguishment of debt | 6 | 0 |
Other expenses | 11,605 | 11,609 |
Total benefits, losses and expenses | 11,660 | 11,674 |
Income (loss) from continuing operations before income tax expense (benefit) | 378 | 4,240 |
Income tax expense (benefit) | 1,285 | 1,501 |
Income from continuing operations | (907) | 2,739 |
Income (loss) from discontinued operations, net of income taxes | (46) | 1 |
Net income | (953) | 2,740 |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | (20) | 9 |
Net income (loss) attributable to AIG | (933) | 2,731 |
Reclassifications and Eliminations | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | 2,627 | (3,530) |
Other income | (201) | (89) |
Total revenues | 2,426 | (3,619) |
Expenses: | ||
Interest expense | (1) | (30) |
Net losses on extinguishment of debt | 0 | 7 |
Other expenses | (199) | (59) |
Total benefits, losses and expenses | (200) | (82) |
Income (loss) from continuing operations before income tax expense (benefit) | 2,626 | (3,537) |
Income tax expense (benefit) | 0 | (1) |
Income from continuing operations | 2,626 | (3,536) |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 |
Net income | 2,626 | (3,536) |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to AIG | $ 2,626 | $ (3,536) |
INFORMATION PROVIDED IN CONNE81
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net income | $ (203) | $ 2,477 |
Other Comprehensive Income (Loss) | 2,988 | 37 |
Comprehensive income (loss) | 2,785 | 2,514 |
Total comprehensive income (loss) attributable to noncontrolling interests | (20) | 6 |
Comprehensive income (loss) attributable to AIG | 2,805 | 2,508 |
AIG (As Guarantor) | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | (183) | 2,468 |
Other Comprehensive Income (Loss) | 2,988 | 38 |
Comprehensive income (loss) | 2,805 | 2,506 |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income (loss) attributable to AIG | 2,805 | 2,506 |
AIGLH | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | (1,693) | 805 |
Other Comprehensive Income (Loss) | (474) | 908 |
Comprehensive income (loss) | (2,167) | 1,713 |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income (loss) attributable to AIG | (2,167) | 1,713 |
Other Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | (953) | 2,740 |
Other Comprehensive Income (Loss) | 55,554 | (1,061) |
Comprehensive income (loss) | 54,601 | 1,679 |
Total comprehensive income (loss) attributable to noncontrolling interests | (20) | 6 |
Comprehensive income (loss) attributable to AIG | 54,621 | 1,673 |
Reclassifications and Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 2,626 | (3,536) |
Other Comprehensive Income (Loss) | (55,080) | 152 |
Comprehensive income (loss) | (52,454) | (3,384) |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income (loss) attributable to AIG | $ (52,454) | $ (3,384) |
INFORMATION PROVIDED IN CONNE82
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $ (968) | $ 388 |
Cash flows from investing activities: | ||
Sales of investments | 16,242 | 15,229 |
Purchase of investments | (15,802) | (13,109) |
Loans to subsidiaries - net | 0 | 0 |
Contributions from (to) subsidiaries - net | 0 | 0 |
Net change in restricted cash | (59) | (47) |
Net change in short-term investments | (577) | (804) |
Other, net | 581 | (955) |
Net cash provided by investing activities | 385 | 314 |
Cash flows from financing activities: | ||
Issuance of long-term debt | 3,289 | 2,585 |
Repayments of long-term debt | (958) | (1,893) |
Issuance of Common Stock | 0 | 0 |
Purchase of Common Stock | (3,486) | (1,398) |
Intercompany loans - net | 0 | |
Cash dividends paid | (363) | (170) |
Other, net | 1,971 | 272 |
Net cash provided by (used in) financing activities | 453 | (604) |
Effect of exchange rate changes on cash | 0 | (33) |
Net increase (decrease) in cash | (130) | 65 |
Cash at beginning of year | 1,629 | 1,758 |
Reclassification to assets held for sale | 0 | 0 |
Cash at end of year | 1,499 | 1,823 |
Interest: | ||
Third party | (362) | (307) |
Intercompany | 0 | 0 |
Taxes: | ||
Income tax authorities | (39) | (140) |
Intercompany | 0 | 0 |
AIG (As Guarantor) | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 1,483 | 1,111 |
Cash flows from investing activities: | ||
Sales of investments | 392 | 505 |
Purchase of investments | (322) | (897) |
Loans to subsidiaries - net | 880 | 1,091 |
Contributions from (to) subsidiaries - net | 644 | (70) |
Net change in restricted cash | 0 | 0 |
Net change in short-term investments | (1,022) | (1,035) |
Other, net | (127) | 0 |
Net cash provided by investing activities | 445 | (406) |
Cash flows from financing activities: | ||
Issuance of long-term debt | 2,986 | 2,342 |
Repayments of long-term debt | (710) | (977) |
Issuance of Common Stock | 0 | 0 |
Purchase of Common Stock | (3,486) | (1,398) |
Intercompany loans - net | (180) | (394) |
Cash dividends paid | (363) | (170) |
Other, net | (173) | (69) |
Net cash provided by (used in) financing activities | (1,926) | (666) |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash | 2 | 39 |
Cash at beginning of year | 34 | 26 |
Cash at end of year | 36 | 65 |
Interest: | ||
Third party | (285) | (240) |
Intercompany | 0 | 0 |
Taxes: | ||
Income tax authorities | (1) | (1) |
Intercompany | 182 | 291 |
Non-cash financing and investing activities: | ||
Return of capital and dividend received in the form of other bonds securities | 697 | 140 |
Other capital contributions - net | 2,904 | 111 |
AIGLH | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 97 | 284 |
Cash flows from investing activities: | ||
Sales of investments | 0 | 0 |
Purchase of investments | 0 | 0 |
Loans to subsidiaries - net | 0 | 0 |
Contributions from (to) subsidiaries - net | 0 | 0 |
Net change in restricted cash | 0 | 0 |
Net change in short-term investments | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Issuance of long-term debt | 0 | 0 |
Repayments of long-term debt | (26) | 0 |
Issuance of Common Stock | 0 | 0 |
Purchase of Common Stock | 0 | 0 |
Intercompany loans - net | (3) | 0 |
Cash dividends paid | (177) | (367) |
Other, net | 0 | 0 |
Net cash provided by (used in) financing activities | (206) | (367) |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash | (109) | (83) |
Cash at beginning of year | 116 | 91 |
Reclassification to assets held for sale | 0 | |
Cash at end of year | 7 | 8 |
Interest: | ||
Third party | (24) | (27) |
Intercompany | 0 | 0 |
Taxes: | ||
Income tax authorities | 0 | 0 |
Intercompany | 0 | 0 |
Other Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | (1,481) | 2,257 |
Cash flows from investing activities: | ||
Sales of investments | 17,004 | 15,995 |
Purchase of investments | (16,634) | (13,483) |
Loans to subsidiaries - net | 180 | 395 |
Contributions from (to) subsidiaries - net | 0 | 0 |
Net change in restricted cash | (59) | (47) |
Net change in short-term investments | 445 | 231 |
Other, net | 708 | (955) |
Net cash provided by investing activities | 1,644 | 2,136 |
Cash flows from financing activities: | ||
Issuance of long-term debt | 303 | 243 |
Repayments of long-term debt | (222) | (916) |
Proceeds from drawdown on the Department of the Treasury Commitment | 0 | |
Issuance of Common Stock | 0 | 0 |
Purchase of Common Stock | 0 | 0 |
Intercompany loans - net | (877) | (1,092) |
Cash dividends paid | (890) | (2,897) |
Other, net | 1,500 | 411 |
Net cash provided by (used in) financing activities | (186) | (4,251) |
Effect of exchange rate changes on cash | 0 | (33) |
Net increase (decrease) in cash | (23) | 109 |
Cash at beginning of year | 1,479 | 1,641 |
Reclassification to assets held for sale | 0 | 0 |
Cash at end of year | 1,456 | 1,750 |
Interest: | ||
Third party | (53) | (40) |
Intercompany | 0 | 0 |
Taxes: | ||
Income tax authorities | (38) | (139) |
Intercompany | (182) | (291) |
Reclassifications and Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | (1,067) | (3,264) |
Cash flows from investing activities: | ||
Sales of investments | (1,154) | (1,271) |
Purchase of investments | 1,154 | 1,271 |
Loans to subsidiaries - net | (1,060) | (1,486) |
Contributions from (to) subsidiaries - net | (644) | 70 |
Net cash provided by investing activities | (1,704) | (1,416) |
Cash flows from financing activities: | ||
Issuance of long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Proceeds from drawdown on the Department of the Treasury Commitment | 0 | |
Issuance of Common Stock | 0 | 0 |
Intercompany loans - net | 1,060 | 1,486 |
Cash dividends paid | 1,067 | 3,264 |
Other, net | 644 | (70) |
Net cash provided by (used in) financing activities | 2,771 | 4,680 |
Interest: | ||
Third party | 0 | 0 |
Intercompany | 0 | 0 |
Taxes: | ||
Income tax authorities | 0 | |
Intercompany | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | May. 05, 2016 | May. 02, 2016 | Mar. 31, 2016 | Mar. 31, 2015 |
Subsequent events | ||||
Dividends declared per common share | $ 0.32 | $ 0.125 | ||
Net realized capital gains (losses) | $ (1,106) | $ 1,341 | ||
Subsequent event | ||||
Subsequent events | ||||
Dividends declared per common share | $ 0.32 | |||
Date Dividends Declared | May 2, 2016 | |||
Date Dividends To Be Paid | Jun. 27, 2016 | |||
Date of Shareholders of Record | Jun. 13, 2016 | |||
Subsequent event | PICC Property and Casualty Company Limited | ||||
Subsequent events | ||||
Equity Securities, Number of Shares Sold | 740 | |||
Equity Securities, Sale Proceeds | $ 1,250 | |||
Net realized capital gains (losses) | $ 900 |