Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
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, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 925,772,114 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fixed maturity securities: | ||
Bonds available for sale, at fair value (amortized cost: 2017 - $220,629; 2016 - $232,241) | $ 230,698 | $ 241,537 |
Other bond securities, at fair value (See Note 6) | 13,605 | 13,998 |
Equity Securities: | ||
Common and preferred stock available for sale, at fair value (cost: 2017 - $1,604; 2016 - $1,697) | 2,099 | 2,078 |
Other common and preferred stock, at fair value (See Note 6) | 500 | 482 |
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2017 - $11; 2016 - $11) | 33,878 | 33,240 |
Other invested assets (portion measured at fair value: 2017 - $7,094; 2016 - $6,946) | 23,652 | 24,538 |
Short-term investments (portion measured at fair value: 2017 - $2,453; 2016 - $3,341) | 11,073 | 12,302 |
Total investments | 315,505 | 328,175 |
Cash | 1,918 | 1,868 |
Accrued investment income | 2,386 | 2,495 |
Premiums and other receivables, net of allowance | 11,130 | 10,465 |
Reinsurance assets, net of allowance | 34,140 | 21,901 |
Deferred income taxes | 20,881 | 21,332 |
Deferred policy acquisition costs | 11,091 | 11,042 |
Other assets, including restricted cash of $213 in 2017 and $193 in 2016 (portion measured at fair value: 2017 - $1,247; 2016 - $1,809) | 10,606 | 10,815 |
Separate account assets, at fair value | 85,917 | 82,972 |
Assets held for sale | 6,588 | 7,199 |
Total assets | 500,162 | 498,264 |
Liabilities: | ||
Liability for unpaid losses and loss adjustment expenses | 76,050 | 77,077 |
Unearned premiums | 19,840 | 19,634 |
Future policy benefits for life and accident and health insurance contracts | 42,719 | 42,204 |
Policyholder contract deposits (portion measured at fair value: 2017 - $3,097; 2016 - $3,058) | 132,639 | 132,216 |
Other policyholder funds (portion measured at fair value: 2017 - $5; 2016 - $5) | 3,719 | 3,989 |
Other liabilities (portion measured at fair value: 2017 - $1,261; 2016 - $2,016) | 28,093 | 26,296 |
Long-term debt (portion measured at fair value: 2017 - $3,151; 2016 - $3,428) | 30,747 | 30,912 |
Separate account liabilities | 85,917 | 82,972 |
Liabilities held for sale | 5,771 | 6,106 |
Total liabilities | 425,495 | 421,406 |
Contingencies, commitments and guarantees (see Note 11) | ||
AIG shareholders' equity: | ||
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2017 - 1,906,671,492 and 2016 - 1,906,671,492 | 4,766 | 4,766 |
Treasury stock, at cost; 2017 - 964,191,466 shares; 2016 - 911,335,651 shares of common stock | (44,915) | (41,471) |
Additional paid-in capital | 80,846 | 81,064 |
Retained earnings | 29,591 | 28,711 |
Accumulated other comprehensive income (loss) | 3,781 | 3,230 |
Total AIG shareholders' equity | 74,069 | 76,300 |
Non-redeemable noncontrolling interests | 598 | 558 |
Total equity | 74,667 | 76,858 |
Total liabilities and equity | $ 500,162 | $ 498,264 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical - assets and liabilities) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Bonds available for sale, amortized cost | $ 220,629 | $ 232,241 |
Common and preferred stock available for sale, cost | 1,604 | 1,697 |
Mortgage and other loans receivable, portion measured at fair value | 11 | 11 |
Other invested assets, portion measured at fair value | 7,094 | 6,946 |
Short-term investments, portion measured at fair value | 2,453 | 3,341 |
Other assets, restricted cash | 213 | 193 |
Other assets, portion measured at fair value | 1,247 | 1,809 |
Liabilities: | ||
Policyholder contract deposits, portion measured at fair value | 3,097 | 3,058 |
Other policyholder funds, portion measured at fair value | 5 | 5 |
Other liabilities, portion measured at fair value | 1,261 | 2,016 |
Long-term debt, portion measured at fair value | $ 3,151 | $ 3,428 |
CONSOLIDATED BALANCE SHEETS (P4
CONSOLIDATED BALANCE SHEETS (Parenthetical - equity) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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 | 964,191,466 | 911,335,651 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Premiums | $ 7,782 | $ 8,806 |
Policy fees | 724 | 687 |
Net investment income | 3,686 | 3,013 |
Net realized capital gains (losses): | ||
Total other-than-temporary impairments on available for sale securities | (39) | (209) |
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss) | (21) | 7 |
Net other-than-temporary impairments on available for sale securities recognized in net income (loss) | (60) | (202) |
Other realized capital gains (losses) | (55) | (904) |
Total net realized capital gains (losses) | (115) | (1,106) |
Other income | 555 | 379 |
Total revenues | 12,632 | 11,779 |
Benefits, losses and expenses: | ||
Policyholder benefits and losses incurred | 6,047 | 6,387 |
Interest credited to policyholder account balances | 910 | 950 |
Amortization of deferred policy acquisition costs | 1,108 | 1,262 |
General operating and other expenses | 2,443 | 3,003 |
Interest expense | 298 | 306 |
(Gain) Loss on extinguishment of debt | (1) | 83 |
Net (gain) loss on sale of properties and divested businesses | 100 | 2 |
Total benefits, losses and expenses | 10,905 | 11,993 |
Income (loss) from continuing operations before income tax expense (benefit) | 1,727 | (214) |
Income tax expense (benefit): | ||
Income tax expense (benefit) | 516 | (58) |
Income (loss) from continuing operations | 1,211 | (156) |
Income (loss) from discontinued operations, net of income tax | 0 | (47) |
Net income (loss) | 1,211 | (203) |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 26 | (20) |
Net income (loss) attributable to AIG | $ 1,185 | $ (183) |
Basic: | ||
Income (loss) from continuing operations | $ 1.21 | $ (0.12) |
Loss from discontinued operations | 0 | (0.04) |
Net income (loss) attributable to AIG | 1.21 | (0.16) |
Diluted: | ||
Income (loss) from continuing operations | 1.18 | (0.12) |
Income (loss) from discontinued operations | 0 | (0.04) |
Net income (loss) attributable to AIG | $ 1.18 | $ (0.16) |
Weighted average shares outstanding: | ||
Basic | 980,777,243 | 1,156,548,459 |
Diluted | 1,005,315,030 | 1,156,548,459 |
Dividends declared per common share | $ 0.32 | $ 0.32 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income (loss) | $ 1,211 | $ (203) |
Other comprehensive income (loss), net of tax | ||
Change in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized | 114 | (349) |
Change in unrealized appreciation (depreciation) of all other investments | 695 | 3,427 |
Change in foreign currency translation adjustments | (276) | (92) |
Change in retirement plan liabilities adjustment | 18 | 2 |
Other comprehensive income (loss) | 551 | 2,988 |
Comprehensive income (loss) | 1,762 | 2,785 |
Comprehensive income (loss) attributable to noncontrolling interests | 26 | (20) |
Comprehensive income (loss) attributable to AIG | $ 1,736 | $ 2,805 |
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, 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) | ||||
Net income (loss) attributable to AIG or noncontrolling interests | (203) | (183) | 0 | 0 | 0 | (183) | 0 | (20) |
Dividends | (363) | (363) | (363) | |||||
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 |
Balance at Dec. 31, 2016 | 76,858 | 76,300 | 4,766 | (41,471) | 81,064 | 28,711 | 3,230 | 558 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Common stock issued under stock plans | (163) | (163) | 139 | (302) | ||||
Purchase of common stock | (3,585) | (3,585) | 0 | (3,585) | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AIG or noncontrolling interests | 1,211 | 1,185 | 0 | 0 | 0 | 1,185 | 0 | 26 |
Dividends | (307) | (307) | 0 | 0 | 0 | (307) | 0 | 0 |
Other Comprehensive Income (Loss) | 551 | 551 | 0 | 0 | 0 | 0 | 551 | 0 |
Current and deferred income taxes | 0 | 0 | 0 | |||||
Net increase due to acquisitions and consolidations | 39 | 39 | ||||||
Contributions from noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Distributions to noncontrolling interests | (37) | 0 | 0 | 0 | 0 | 0 | 0 | (37) |
Other | 100 | 88 | 0 | 2 | 84 | 2 | 0 | 12 |
Balance at Mar. 31, 2017 | $ 74,667 | $ 74,069 | $ 4,766 | $ (44,915) | $ 80,846 | $ 29,591 | $ 3,781 | $ 598 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,211 | $ (203) |
(Income) loss from discontinued operations | 0 | 47 |
Noncash revenues, expenses, gains and losses included in income: | ||
Net gains on sales of securities available for sale and other assets | (112) | 204 |
Net (gains) losses on sales of divested businesses | 100 | 2 |
(Gains) losses on extinguishment of debt | (1) | 83 |
Unrealized (gains) losses in earnings - net | (226) | 672 |
Equity in income from equity method investments, net of dividends or distributions | (119) | 346 |
Depreciation and other amortization | 1,012 | 1,197 |
Impairments of assets | 173 | 450 |
Changes in operating assets and liabilities: | ||
Insurance reserves | 401 | 8 |
Premiums and other receivables and payables - net | (189) | (861) |
Reinsurance assets and funds held under reinsurance treaties | (12,237) | (846) |
Capitalization of deferred policy acquisition costs | (1,201) | (1,360) |
Current and deferred income taxes - net | 446 | (109) |
Other, net | 383 | (598) |
Total adjustments | (11,570) | (812) |
Net cash provided by (used in) operating activities | (10,359) | (968) |
Sales or distribution of: | ||
Available for sale securities | 15,307 | 5,710 |
Other securities | 888 | 1,681 |
Other invested assets | 1,826 | 1,649 |
Divested businesses, net | 24 | |
Maturities of fixed maturity securities available for sale | 7,145 | 6,069 |
Principal payments received on and sales of mortgage and other loans receivable | 1,543 | 1,133 |
Purchases of: | ||
Available for sale securities | (10,028) | (12,454) |
Other securities | (185) | (173) |
Other invested assets | (783) | (743) |
Mortgage and other loans receivable | (2,181) | (2,432) |
Net change in restricted cash | (22) | (59) |
Net change in short-term investments | 1,250 | (577) |
Other, net | (297) | 581 |
Net cash provided by (used in) investing activities | 14,487 | 385 |
Proceeds from (payments for) | ||
Policyholder contract deposits | 4,002 | 4,812 |
Policyholder contract withdrawals | (3,682) | (3,178) |
Issuance of long-term debt | 151 | 3,289 |
Repayments of long-term debt | (602) | (958) |
Issuance of Common Stock | 0 | 0 |
Purchase of Common Stock | (3,585) | (3,486) |
Dividends paid | (307) | (363) |
Other, net | (25) | 337 |
Net cash provided by (used in) financing activities | (4,048) | 453 |
Effect of exchange rate changes on cash | (82) | 0 |
Net increase (decrease) in cash | (2) | (130) |
Cash at beginning of year | 1,868 | 1,629 |
Change in cash of businesses held for sale | 52 | |
Cash at end of year | $ 1,918 | $ 1,499 |
Supplementary Disclosure of Con
Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash paid during the period for: | ||
Interest | $ 354 | $ 362 |
Taxes | 68 | 39 |
Non-cash investing/financing activities: | ||
Interest credited to policyholder contract deposits included in financing activities | $ 824 | 913 |
Aer Cap | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Non-cash consideration received from sale | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2017 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. Basis of Presentation American International Group, Inc. (AIG) is a leading global insurance organization serving customers in more than 80 countries and jurisdictions. AIG companies serve commercial and individual customers through one of the most extensive worldwide property -casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock, par value $ 2.50 per share (AIG Common Stock), is listed on the New York Stock Exchange (NYSE: AIG) and the Tokyo Stock Exchange. Unless the context indicates otherwise, the terms “AIG,” “we,” “us” or “our” mean American International Group, Inc. and its consolidated subsidiaries and the term “AIG Parent” means American International Group, Inc. and not any of its consolidated subsidiaries. These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual fi nancial statements prepared in accordance with accountin g principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2016 ( the 2016 Annual Report). The condensed consolidated financial information as of December 31, 2016 included herein has been derived from the audited Consolidated Financial Stat ements in the 2016 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 of operations of all material events occurring at these subsidiaries through the date of each of the periods presented in these Condensed Consolidated Financial Statements has been considered for adjustment and/or disclosure. In the opinion of management, these Condens ed Consolidated Financial Statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein. Interim-period operating results may not be indicative of the operating results for a full year. We evaluated the need to recognize or disclose events that occurred subsequent to March 31, 2017 and prior to the issuance of these Condensed Consolidated Financial Statements. Use of Estimates The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating pro fitability of the character necessary to realize the net deferred tax asset; liability for unpaid losses and loss adjustment expenses (loss reserves); reinsurance assets; valuation of future policy benefit liabilities and timing and extent of loss recognit ion; valuation of liabilities for guaranteed benefit features of variable annuity products; estimated gross profits to value deferred policy acquisition costs for investment-oriented products; impairment charges, including other-than-temporary impairments on available for sale securities, impairments on other invested assets, including investments in life settlements, and goodwill impairment; liability for legal contingencies; and fair value measurements of certain financial assets and liabilities. These ac counting 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 an d cash flows could be materially affected. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. Summary of Significant Accounting Policies Accounting Standards Adopted During 2017 Derivative Contract Novations In March 2016, the Financial Accounting Standards Board (FASB) issued an accounting standard that clarifies that a change in the counterparty (novation) to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We adopted the standard on its required effective date of January 1, 2017. The adoption of this standard did not have a material effect on our consolidated financial condition, results of opera tions or cash flows. Contingent Put and Call Options in Debt Instruments In March 2016, the FASB issued an accounting standard that clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The standard requires an evaluation of embedded call (put) options solely on a four-step decision sequence that requires an entity to consider whether (1) the amount paid upon settlem ent is adjusted based on changes in an index, (2) the amount paid upon settlement is indexed to an underlying other than interest rates or credit risk, (3) the debt involves a substantial premium or discount and (4) the put or call option is contingently e xercisable. We adopted the standard on its required effective date of January 1, 2017. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued an accounting standard that eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods during which the investment had been held. We adopt ed the standard on its required effective date of January 1, 2017. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Interest Held through Related Parties that are und er Common Control In October 2016, the FASB issued an accounting standard that amends the consolidation analysis for a reporting entity that is the single decision maker of a variable interest entity (VIE). The new guidance will require the decision maker ’s evaluation of its interests held through related parties that are under common control on a proportionate basis (rather than in their entirety) when determining whether it is the primary beneficiary of that VIE. The amendment does not change the charac teristics of a primary beneficiary. We adopted the standard on its required effective date of January 1, 2017. 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 Revenue Recognition In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, fi nancial 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 on January 1, 2018 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is permitted as of January 1, 2017, including interim periods. We are currently evaluating the impact to our revenue sources that are in scope of the standa rd. However, as the majority of our revenue sources are not in scope of the standard, we do not expect the adoption of the standard to have a material effect on our reported 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 will require equity investments that do not follow the equity method of accounting or are not subject to consolidation to be measure d at fair value with changes in fair value recognized in earnings, while financial liabilities for which fair value option accounting has been elected, changes in fair value due to instrument-specific credit risk will be presented separately in other compr ehensive income. The standard allows the election to record equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes with changes in the carrying value of the equity investments recorded in earnings. The standard also updates certain fair value disclosure requirements for financial instruments carried at amortized cost. The standard is effective on January 1, 2018, with early adoption of certain provisions permitted. We are asses sing the impact of the standard on our reported 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 rec ognize a right of use asset and a corresponding lease liability on their balance sheets. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. The standard is effectiv e on January 1, 2019, with early adoption permitted using a modified retrospective approach. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. We are currently quantifying th e expected gross up of our balance sheet for a right to use asset and a lease liability as required by the standard. Financial Instruments - Credit Losses In June 2016, the FASB issued an accounting standard that will change how entities account for credit losses for most financial assets, trade receivables and reinsurance receivables. The standard will replace the existing incurred loss impairment model wi th a new “current expected credit loss model” and will apply to financial assets subject to credit losses, those trade receivables measured at amortized cost, reinsurance receivables and certain off-balance sheet credit exposures. The impairment for avail able-for-sale debt securities, including purchase credit deteriorated securities, will be measured in a similar manner, except that losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard will a lso require additional information to be disclosed in the footnotes. The standard is effective on January 1, 2020, with early adoption permitted on January 1, 2019. We are assessing the impact of the standard on our reported consolidated financial conditi on, results of operations and cash flows, but we expect an increase in our allowances for credit losses. The amount of the increase will be impacted by our portfolio composition and quality at the adoption date as well as economic conditions and forecasts at that time. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an accounting standard that addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash fl ows. The amendments provide clarity on the treatment of eight specifically defined types of cash inflows and outflows. The standard is effective on January 1, 2018, with early adoption permitted as long as all amendments are included in the same period. T he standard addresses presentation in the statement of cash flows only and will have no effect on our reported consolidated financial condition or results of operations. Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued an accounting standard that will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset is sold to a third party. The standard is effect ive on January 1, 2018, with early adoption permitted. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. Restricted Cash In November 2016, the FASB issued an accounting standard that provides guidance on the presentation of restricted cash in the Statement of Cash Flows. Entities will be required to explain the changes during a reporting period in the total of cash, cash equivalents, and amounts generally described as re stricted cash or restricted cash equivalents in the statement of cash flows. The standard is effective on January 1, 2018, with early adoption permitted. The standard addresses presentation of restricted cash in the Statement of Cash Flows only and will have no effect on our reported consolidated financial condition or results of operations. Clarifying the Definition of a Business In January 2017, the FASB issued an accounting standard that changes the definition of a business to assist entities with eval uating when a set of transferred assets and activities is a business. The new standard will require an entity to evaluate if substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar assets; if so, the set of transferred assets and activities is not a business. At a minimum, a set must include an input and a substantive process that together significantly contribute to the ability to create output. The standard i s effective on January 1, 2018, with early adoption permitted. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. Because the standard requires prospective adoption, the imp act is dependent on future acquisitions, dispositions and those entities that we consolidate due to obtaining a controlling financial interest. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued an accounting standard that elimi nates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value not to exceed th e total amount of goodwill allocated to that reporting unit. An entity should also consider income tax effects from tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The sta ndard is effective on January 1, 2020 with early adoption permitted on testing dates after January 1, 2017. We are currently reviewing the standard and assessing the impact of the standard on our reported consolidated financial condition, results of opera tions and cash flows. Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued an accounting standard that clarifies the scope and application of Other Income-Gains and Losses from the Derecognition of Nonfinancial A ssets, to the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. The standard clarifies that a parent transferring its ownership interest in a consolidated subsidiary is within the scope o f the accounting standard if substantially all of the fair value of the assets within that subsidiary are nonfinancial assets. The standard also clarifies that the derecognition of all businesses and nonprofit activities should be accounted for in accordan ce with the derecognition and deconsolidation guidance. The standard also eliminates the exception in the financial asset guidance for transfers of investments (including equity method investments) in real estate entities. An entity is required to apply th e amendments in this update at the same time that it applies the amendments in revenues from contracts with customers. The standard is effective on January 1, 2018 and may be applied retrospectively to each period presented or through a cumulative effect adjustment to retained earnings at the date of adoption (modified retrospective approach). Early adoption is permitted as of January 1, 2017, including interim periods. We are currently reviewing the standard and assessing the impact of the standard on o ur reported consolidated financial condition, results of operations and cash flows. Improving the Presentation of Net Periodic Pension and Postretirement Benefit Cost In March 2017, the FASB issued an accounting standard that requires entities to report the service cost component of net periodic pension and postretirement benefit costs in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit costs are required to be separately presen ted in the income statement . The amendments also allow only the service cost component to be eligible for capitali zation when applicable. The standard is effective on January 1, 2018, with early adoption permitt ed. The amendments should be applied retrospectively for the presentation of the service cost and othe r components, and prospectively for the capitalization of the service cost component. The standard addresses presentation of net periodic benefit costs i n the income statement and will have no effect on our reported consolidated financial condition, resu lts of operations or cash flows. Premium A mortization on Purchased Callable Debt Securities In March 2017, the FASB issued an accounting standard that shor tens the amortization period for certain callable debt securities held at a premium. Specifically, the standard requires the premium to be amortized to the earliest call date. The standard does not require an accounting change for securities held at a di scount; the discount continues to be amortized to maturity. The standard is effective January 1, 2018, with early adoption permitted as of January 1, 2017, including for interim periods. We are currently reviewing the standard and assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
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. We report our results of operations as follows: Commercial Insurance business is presented as two operating segments: - Liability and Financial Lines - Property and Special Risks Consumer Insurance business is presented as four operating segments: - Individual Retirement - Group Retirement - Life I nsurance - Personal Insurance The Other Operations category consists of: - Institutional Markets - Income from assets held by AIG Parent and other corporate subsidiaries - General operating expenses not attributable to specific reporting segments - Inte rest expense - United Guaranty — The sale of this business was completed on December 31, 2016 - Fuji Life — On November 14, 2016, we entered into an agreement to sell our Japan life insurance business, AIG Fuji Life Insurance Company, Ltd. (Fuji Life), t o FWD Group, the insurance arm of Pacific Century Group. The sale of this business was completed on April 30, 2017. The Legacy Portfolio segment consists of: - Legacy Property and Casualty Run-Off Insurance Lines - Legacy Life Insurance Run-Off Lines - Legacy Investments We evaluate segment performance based on operating revenues and pre-tax operating income (loss). Operating revenues and pre-tax operating income (loss) is derived by excluding certain items from total revenues and net income (loss) attributable to AIG, respectively. See the table below for the items excluded from operating revenues and pre-tax operating income (loss). The following table presents AIG’s continuing operations by operating segment: Three Months Ended March 31, 2017 2016 Pre-Tax Pre-Tax Total Operating Total Operating (in millions) Revenues Income (Loss) Revenues Income (Loss) Commercial Insurance Liability and Financial Lines $ 2,848 $ 574 $ 3,311 $ 569 Property and Special Risks 1,835 275 1,987 93 Total Commercial Insurance 4,683 849 5,298 662 Consumer Insurance Individual Retirement 1,373 539 1,493 302 Group Retirement 718 243 629 191 Life Insurance 1,013 54 953 1 Personal Insurance 2,838 212 2,816 210 Total Consumer Insurance 5,942 1,048 5,891 704 Other Operations 1,090 (246) 998 (239) Legacy Portfolio 1,084 342 681 (202) AIG Consolidation and elimination (64) 48 (131) 20 Total AIG Consolidated revenues and pre-tax operating income 12,735 2,041 12,737 945 Reconciling Items from revenues and pre-tax operating income to revenues and pre-tax income (loss): Changes in fair value of securities used to hedge guaranteed living benefits 11 11 133 133 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - 53 - 40 (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - (14) - 7 Gain (Loss) on extinguishment of debt - 1 - (83) Net realized capital losses (115) (115) (1,106) (1,106) Loss from divested businesses - (100) - (2) Non-operating litigation reserves and settlements 10 6 34 31 Net loss reserve discount benefit (charge) - 25 - 9 Restructuring and other costs - (181) - (188) Other (9) - (19) - Revenues and Pre-tax income (loss) $ 12,632 $ 1,727 $ 11,779 $ (214) |
HELD-FOR-SALE CLASSIFICATION
HELD-FOR-SALE CLASSIFICATION | 3 Months Ended |
Mar. 31, 2017 | |
HELD-FOR-SALE CLASSIFICATION | |
HELD-FOR-SALE CLASSIFICATION | 4 . Held-For-Sale Classification Held-For-Sale Classification We report a business as held-for-sale when management has approved the sale or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A business classified as held-for-sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the bus iness exceeds its estimated fair value, a loss is recognized. Assets and liabilities related to the businesses classified as held-for-sale are separately reported in our Consolidated Balance Sheets beginning in the period in which the business is classifi ed as held-for-sale. At March 31, 2017 , the following businesses were reported as held-for-sale: United Guaranty Asia On August 15, 2016, we entered into a definitive agreement to sell our 100 percent interest in United Guaranty Corpora tion (UGC) and certain related affiliates to Arch Capital Group Ltd. (Arch). This transaction closed on December 31, 2016 and we received proceeds of approximately $3.3 billion, consisting of $2.2 billion of cash, and approximately $1.1 billion of newly is sued Arch convertible non-voting common-equivalent preferred stock. We also received $261 million in pre-closing dividends from UGC in the fourth quarter of 2016. However, due to pending regulatory approvals, United Guaranty Asia was not included in the D ecember 31, 2016 closing and $40 million of cash consideration was retained by Arch. The closing with respect to United Guaranty Asia is expected to occur prior to year-end 2017, at which time AIG will receive the remaining consideration. Sale of Certain Insurance Subsidiary Operations to Fairfax On October 18, 2016, we entered into agreements to sell certain insurance operations to Fairfax Financial Holdings Limited (Fairfax). The agreements include the sale of our subsidiary operations in Argentina, Chi le, Colombia, Uruguay and Venezuela, as well as insurance operations in Turkey. Fairfax will also acquire renewal rights for the portfolios of local business written by our operations in Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia, and assume certain of our operating assets and employees. Total cash consideration to us is expected to be approximately $234 million. The closing of the sales in Czech Republic, Hungary and Slovakia occurred on April 30, 2017, and the sale of the operations in Turkey closed on May 2, 2017 . The remaining sales are subject to obtaining the relevant regulatory approvals and other customary closing conditions. AIG Fuji Life Insurance On November 14, 2016, we entered into an agreement to sell Fuji Life to FWD Gr oup, the insurance arm of Pacific Century Group. The transaction closed on April 30, 2017. The following table summarizes the components of assets and liabilities held-for-sale on the Condensed Consolidated Balance Sheets at March 31, 2017 and December 31, 2016: March 31, December 31, (in millions) 2017 2016 Assets: Fixed maturity securities $ 5,438 $ 6,045 Equity securities 14 149 Mortgage and other loans receivable, net 121 137 Other invested assets 244 2 Short-term investments 181 130 Cash 81 133 Accrued investment income 22 21 Premiums and other receivables, net of allowance 393 351 Reinsurance assets, net of allowance 13 8 Deferred policy acquisition costs 422 471 Other assets 264 273 Assets of businesses held for sale 7,193 7,720 Less: Loss Accrual (605) (521) Total assets held for sale $ 6,588 $ 7,199 Liabilities: Liability for unpaid losses and loss adjustment expenses $ 489 $ 402 Unearned premiums 333 297 Future policy benefits for life and accident and health insurance contracts 4,140 4,579 Other policyholder funds 327 378 Long-term debt 108 - Other liabilities 374 450 Total liabilities held for sale $ 5,771 $ 6,106 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2017 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 5 . Fair Value Measurements Fair Value Measurements on a Recurring Basis Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheet s 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 abil ity to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments. Level 2: Fair value measurements based on inputs other than quoted prices i ncluded in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in mar kets 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 tech niques 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 li ttle, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liabili ty. In certain cases, the inputs used to measure fair value may fall into different leve ls of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used: March 31, 2017 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 $ 51 $ 2,311 $ - $ - $ - $ 2,362 Obligations of states, municipalities and political subdivisions - 17,662 2,041 - - 19,703 Non-U.S. governments 183 14,108 16 - - 14,307 Corporate debt - 128,251 1,079 - - 129,330 RMBS - 18,800 16,487 - - 35,287 CMBS - 12,606 1,003 - - 13,609 CDO/ABS - 8,345 7,755 - - 16,100 Total bonds available for sale 234 202,083 28,381 - - 230,698 Other bond securities: U.S. government and government sponsored entities - 2,931 - - - 2,931 Non-U.S. governments - 50 - - - 50 Corporate debt - 1,755 18 - - 1,773 RMBS - 469 1,502 - - 1,971 CMBS - 471 65 - - 536 CDO/ABS - 836 5,508 - - 6,344 Total other bond securities - 6,512 7,093 - - 13,605 Equity securities available for sale: Common stock 978 - 8 - - 986 Preferred stock 825 - - - - 825 Mutual funds 286 2 - - - 288 Total equity securities available for sale 2,089 2 8 - - 2,099 Other equity securities 500 - - - - 500 Mortgage and other loans receivable - - 11 - - 11 Other invested assets (a) - 404 180 - - 584 Derivative assets: Interest rate contracts - 2,349 - - - 2,349 Foreign exchange contracts - 1,111 - - - 1,111 Equity contracts 274 111 62 - - 447 Credit contracts - - 2 - - 2 Other contracts - 4 17 - - 21 Counterparty netting and cash collateral - - - (1,269) (1,414) (2,683) Total derivative assets 274 3,575 81 (1,269) (1,414) 1,247 Short-term investments 2,110 343 - - - 2,453 Separate account assets 80,323 5,594 - - - 85,917 Total $ 85,530 $ 218,513 $ 35,754 $ (1,269) $ (1,414) $ 337,114 Liabilities: Policyholder contract deposits $ - $ 25 $ 3,072 $ - $ - $ 3,097 Other policyholder funds 5 - - - - 5 Derivative liabilities: Interest rate contracts 2 2,481 32 - - 2,515 Foreign exchange contracts - 1,099 6 - - 1,105 Equity contracts 38 10 - - - 48 Credit contracts - - 317 - - 317 Other contracts - - 6 - - 6 Counterparty netting and cash collateral - - - (1,269) (1,461) (2,730) Total derivative liabilities 40 3,590 361 (1,269) (1,461) 1,261 Long-term debt - 3,093 58 - - 3,151 Total $ 45 $ 6,708 $ 3,491 $ (1,269) $ (1,461) $ 7,514 December 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 $ 63 $ 1,929 $ - $ - $ - $ 1,992 Obligations of states, municipalities and political subdivisions - 22,732 2,040 - - 24,772 Non-U.S. governments 52 14,466 17 - - 14,535 Corporate debt - 131,047 1,133 - - 132,180 RMBS - 20,468 16,906 - - 37,374 CMBS - 12,231 2,040 - - 14,271 CDO/ABS - 8,578 7,835 - - 16,413 Total bonds available for sale 115 211,451 29,971 - - 241,537 Other bond securities: U.S. government and government sponsored entities - 2,939 - - - 2,939 Non-U.S. governments - 51 - - - 51 Corporate debt - 1,755 17 - - 1,772 RMBS - 420 1,605 - - 2,025 CMBS - 448 155 - - 603 CDO/ABS - 905 5,703 - - 6,608 Total other bond securities - 6,518 7,480 - - 13,998 Equity securities available for sale: Common stock 1,056 9 - - - 1,065 Preferred stock 752 - - - - 752 Mutual funds 260 1 - - - 261 Total equity securities available for sale 2,068 10 - - - 2,078 Other equity securities 482 - - - - 482 Mortgage and other loans receivable - - 11 - - 11 Other invested assets (a) - 1 204 - - 205 Derivative assets: Interest rate contracts - 2,328 - - - 2,328 Foreign exchange contracts - 1,320 - - - 1,320 Equity contracts 188 59 58 - - 305 Credit contracts - - 2 - - 2 Other contracts - 6 16 - - 22 Counterparty netting and cash collateral - - - (1,265) (903) (2,168) Total derivative assets 188 3,713 76 (1,265) (903) 1,809 Short-term investments 2,660 681 - - - 3,341 Separate account assets 77,318 5,654 - - - 82,972 Total $ 82,831 $ 228,028 $ 37,742 $ (1,265) $ (903) $ 346,433 Liabilities: Policyholder contract deposits $ - $ 25 $ 3,033 $ - $ - $ 3,058 Other policyholder funds 5 - - - - 5 Derivative liabilities: Interest rate contracts - 3,039 38 - - 3,077 Foreign exchange contracts - 1,358 11 - - 1,369 Equity contracts 12 7 - - - 19 Credit contracts - - 331 - - 331 Other contracts - 1 5 - - 6 Counterparty netting and cash collateral - - - (1,265) (1,521) (2,786) Total derivative liabilities 12 4,405 385 (1,265) (1,521) 2,016 Long-term debt - 3,357 71 - - 3,428 Total $ 17 $ 7,787 $ 3,489 $ (1,265) $ (1,521) $ 8,507 (a) Excludes investments that are meas ured at fair value using the net asset v alue (NAV) per share (or its equivalent), which totaled $ 6.5 billion and $ 6.7 billion as of March 31, 2017 and December 31, 2016 , respectively. (b) Represents netting of derivative exposures covered by qualifying master netting agreements. 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 act ive market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. During the three -month periods ended March 31, 2017 and 2016 , we transf erred $ 53 million and $ 83 million, respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2, as they are no longer considered actively traded. For similar reasons, during the three -month period ended March 31, 2017 , we transferred $ 63 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 t he 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, 2017 and 2016 . Changes in Level 3 Recurring F air Value Measurements The following tables present changes during the three -month periods ended March 31, 2017 and 2016 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at March 31, 2017 and 2016 : Net Changes in Realized and Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value Gains (Losses) Other Issues and Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale of Period at End of Period Three Months Ended March 31, 2017 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,040 $ 2 $ (4) $ 21 $ - $ (18) $ - $ - $ 2,041 $ - Non-U.S. governments 17 - - (1) - - - - 16 - Corporate debt 1,133 (4) (3) (13) 136 (170) - - 1,079 - RMBS 16,906 289 151 (858) 8 (9) - - 16,487 - CMBS 2,040 5 5 (348) - (699) - - 1,003 - CDO/ABS 7,835 6 48 (102) - (32) - - 7,755 - Total bonds available for sale 29,971 298 197 (1,301) 144 (928) - - 28,381 - Other bond securities: Corporate debt 17 1 - - - - - - 18 1 RMBS 1,605 55 - (125) - (33) - - 1,502 24 CMBS 155 - - (17) - (73) - - 65 1 CDO/ABS 5,703 173 - (368) - - - - 5,508 70 Total other bond securities 7,480 229 - (510) - (106) - - 7,093 96 Equity securities available for sale: Common stock - - - 8 - - - - 8 - Total equity securities available for sale - - - 8 - - - - 8 - Mortgage and other loans receivable 11 - - - - - - - 11 - Other invested assets 204 (1) (5) (17) - (1) - - 180 - Total $ 37,666 $ 526 $ 192 $ (1,820) $ 144 $ (1,035) $ - $ - $ 35,673 $ 96 Net Changes in Realized and Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value (Gains) Losses Other Issues and Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale of Period at End of Liabilities: Policyholder contract deposits $ 3,033 $ (45) $ - $ 84 $ - $ - $ - $ - $ 3,072 $ (5) Derivative liabilities, net: Interest rate contracts 38 (3) - (3) - - - - 32 3 Foreign exchange contracts 11 - - (5) - - - - 6 - Equity contracts (58) (11) - 7 - - - - (62) 5 Commodity contracts - - - - - - - - - - Credit contracts 329 (15) - 1 - - - - 315 11 Other contracts (11) (19) - 19 - - - - (11) (1) Total derivative liabilities, net (a) 309 (48) - 19 - - - - 280 18 Long-term debt (b) 71 12 - (25) - - - - 58 (2) Total $ 3,413 $ (81) $ - $ 78 $ - $ - $ - $ - $ 3,410 $ 11 Net Changes in Realized and Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value Gains (Losses) Other Issues and Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale 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 Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value (Gains) Losses Other Issues and Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale of Period at End of 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) (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 Statements of Income as follows: Net Net Realized Investment Capital Other (in millions) Income Gains (Losses) Income Total Three Months Ended March 31, 2017 Bonds available for sale $ 298 $ - $ - $ 298 Other bond securities 75 6 148 229 Other equity securities - - - - Other invested assets - (3) 2 (1) 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 Net Net Realized Investment Capital Other (in millions) Income (Gains) Losses Income Total Three Months Ended March 31, 2017 Policyholder contract deposits - (45) - (45) Derivative liabilities, net - (7) (41) (48) Long-term debt - - 12 12 Three Months Ended March 31, 2016 Policyholder contract deposits - 845 - 845 Derivative liabilities, net - 4 53 57 Long-term debt - - 2 2 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, 2017 and 2016 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets : Purchases, Sales, Issues and (in millions) Purchases Sales Settlements Settlements, Net (a) Three Months Ended March 31, 2017 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 37 $ (5) $ (11) $ 21 Non-U.S. governments - (1) - (1) Corporate debt - - (13) (13) RMBS 339 (244) (953) (858) CMBS 39 (67) (320) (348) CDO/ABS 13 - (115) (102) Total bonds available for sale 428 (317) (1,412) (1,301) Other bond securities: RMBS 98 (167) (56) (125) CMBS - (11) (6) (17) CDO/ABS - - (368) (368) Total other bond securities 98 (178) (430) (510) Equity securities available for sale 8 - - 8 Other invested assets 1 - (18) (17) Total assets $ 535 $ (495) $ (1,860) $ (1,820) Liabilities: Policyholder contract deposits $ - $ 70 $ 14 $ 84 Derivative liabilities, net - - 19 19 Long-term debt (b) - - (25) (25) Total liabilities $ - $ 70 $ 8 $ 78 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) Other equity securities 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 (a) There were no issuances during the three -month period s ended March 31, 2017 and 2016 , 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, 2017 and 2016 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 L evel 3 classification at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. The Net realized and unrealized gains (losses) included in income or Other comprehensive income (loss) as shown in the table above excluded $ 8 million and $ 13 million of net losses related to assets and liabilities transferred into Level 3 during the three -month periods ended March 31, 2017 and 2016 , respectively, and included $ 1 million of net gains and $ 45 million of net losses related to assets and liabilities transferred out of Level 3 during the three -month periods ended March 31, 2017 and 2016 , respectively. Transfers of Level 3 Assets During the three -month periods ended March 31, 2017 and 2016 , transfers into Level 3 assets primarily included certain investmen ts in private placement corporate debt, CDO/ABS and RMBS . Transfers of private placement cor porate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity . The transfers of investments in RMBS and CDO and certain ABS into Level 3 assets were due to decreases in market transparency and liquidity for individual security types. During th e three -month periods ended March 31, 2017 and 2016 , transfers out of Level 3 assets primarily included private placement and other corporate debt, CMBS, RMBS, CDO/ABS and certain investments in municipal securities . Transfers of certain investments municipal securities, corporate debt, RMBS, CMBS and CDO/ABS out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers of certain investments in private placement corporate debt and certa in ABS out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific securit y or the current liquidity in the market. Transfers of Level 3 Liabilities There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three -month periods ended March 31, 2017 and 2016 . 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 in struments (primarily CDO/ABS) may not be reasonably available to us , balances shown below may not equal total amounts reported for such Level 3 assets and liabilities: Fair Value at March 31, Valuation Range (in millions) 2017 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,263 Discounted cash flow Yield 3.97% - 5.06% (4.51%) Corporate debt 536 Discounted cash flow Yield 3.16% - 6.10% (4.63%) RMBS (a) 16,780 Discounted cash flow Constant prepayment rate 1.81% - 9.65% (5.73%) Loss severity 48.00% - 80.38% (64.19%) Constant default rate 3.20% - 8.38% (5.79%) Yield 3.17% - 5.73% (4.45%) CDO/ABS (a) 4,699 Discounted cash flow Yield 3.38% - 5.68% (4.53%) CMBS 615 Discounted cash flow Yield 2.32% - 8.45% (5.38%) Liabilities: Embedded derivatives within Policyholder contract deposits: Guaranteed minimum withdrawal benefits (GMWB) 1,671 Discounted cash flow Equity volatility 8.00% - 50.00% Base lapse rate 0.50% - 20.00% Dynamic lapse multiplier 30.00% - 170.00% Mortality multiplier (c) 42.00% - 161.00% Utilization 100.00% Equity / interest-rate correlation 20.00% - 40.00% Index Annuities 964 Discounted cash flow Lapse rate 1.00% - 66.00% Mortality multiplier (c) 101.00% - 103.00% Indexed Life 414 Discounted cash flow Base lapse rate 2.00% to 19.00% Mortality rate 0.00% to 40.00% Fair Value at December 31, Valuation Range (in millions) 2016 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,248 Discounted cash flow Yield 4.12% - 4.91% (4.52%) Corporate debt 498 Discounted cash flow Yield 3.41% - 6.38% (4.90%) RMBS (a) 17,412 Discounted cash flow Constant prepayment rate 3.95% - 6.54% (5.25%) Loss severity 47.51% - 80.98% (64.24%) Constant default rate 3.28% - 8.64% (5.96%) Yield 3.28% - 5.87% (4.57%) CDO/ABS (a) 4,368 Discounted cash flow Yield 3.67% - 5.85% (4.76%) CMBS 1,511 Discounted cash flow Yield 0.48% - 10.21% (5.34%) Liabilities: Embedded derivatives within Policyholder contract deposits: GMWB 1,777 Discounted cash flow Equity volatility 13.00% - 50.00% Base lapse rate 0.50% - 20.00% Dynamic lapse multiplier 30.00% - 170.00% Mortality multiplier (c) 42.00% - 161.00% Utilization 100.00% Equity / interest-rate correlation 20.00% - 40.00% Index Annuities 859 Discounted cash flow Lapse rate 1.00% - 66.00% Mortality multiplier (c) 101.00% - 103.00% Indexed Life 381 Discounted cash flow Base lapse rate 2.00% - 19.00% Mortality rate 0.00% - 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 input s are shown as multipliers of the 2012 Individual Annuity Mortality Basic table for GMWB , and the 1975-1980 Modified Basic Table for in dex annuities. The ranges of reported inputs for Obligations of states, municipalities and political subdivisions, Corporate debt, RMBS, CDO/ABS, and CMBS valued using a discounted cash flow technique consist of one standard deviation in either direction f rom the value -weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these Level 3 assets and liabilities. Sensitivity to Changes in Unobservable Inputs We consider unobservable input s to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the natur e of the instrument being measured at fair value. The following paragraphs provide a general description of sensitivities of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impac t 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 li near 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 invers e relationship would also generally apply. Obligations of States, Municipalities and Political Subdivisions The significant unobservable input used in the fair value measurement of certain investments in obligations of states, municipalities and political subdivisions is yield. In general, increases in the yield would decrease the fair value of investments in obligations of states, municipalities and political subdivisions. Corporate Debt Corporate debt securities included in Level 3 are primarily private placement issuances that are not traded in active markets or that are subject to transfer restrictions. Fair value measurements consider illiquidity and non -transferability. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of publicly -traded debt of the issuer or other comparable securities, considering illiquidity and structure. The significant unobservable input used in the fair value measurement of corporate debt is the yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. In addition, the migration in credit quality of a given security generally has a corresponding effect on the f air value measurement of the security. For example, a downward migration of credit quality would increase spreads. Holding U.S. Treasury rates constant, an increase in corporate credit spreads would decrease the fair value of corporate debt . RMBS and CDO /ABS The significant unobservable inputs used in fair value measurements of RMBS and certain CDO/ABS valued by third -party valuation service providers are constant prepayment rates (CPR), loss severity, constant default rates (CDR), and yield. A change in the assumptions used for the probability of default will generally be accompanied by a corresponding change in the assumption used for the loss severity and an inverse change in the assumption used for prepayment rates. In general, increases in CPR, loss s everity, CDR, and yield, in isolation, would result in a decrease in the fair value measurement. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship between the directional change of each input is not usually linear . CMBS The significant unobservable input used in fair value measurements for CMBS is the yield. Prepayment assumptions for each mortgage pool are factored into the yield. CMBS generally feature a lower degree of prepayment risk than RMBS because commercial mortgages generally contain a penalty for prepayment. In general, increases in the yield would decrease the fair value of CMBS . Embedded derivatives within Policyholder contract deposits Embedded derivatives reported within Policyholder contract deposits include guaranteed minimum withdrawal benefits (GMWB) 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 cash flows are projected for purposes of valuing the embedded derivative. The following unobservable inputs are used for valuing embedded derivatives measured at fair value: Long-term equity volatilities represent equity volatility beyond the period for which o bservable equity volatilities are available. Increases in assumed volatility will generally increase the fair value of both the projected cash flows from rider fees as well as the projected cash flows related to benefit payments . Therefore, the net change in the fair value of the liability may be either a decrease or an increase, depending on the relative changes in projected rider fees and projected benefit payments. Equity / interest rate correlation estimates the relationship between changes in equity r eturns and interest rates in the economic scenario generator used to value our GMWB embedded derivatives. In general, a higher positive correlation assumes that equity markets and interest rates move in a more correlated fashion, which generally increases the fair value of the liability. Base lapse rate assumptions are determined by company experience and are adjusted at the contract level using a dynamic lapse function, which reduces the base lapse rate when the contract is in-the-money (when the contra ct holder’s guaranteed value, as estimated by the company, is worth more than their underlying account value). Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. Increases in assumed lapse rates will generally de crease the fair value 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, whi ch 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 th e fair value of the liability, because guaranteed payments will be made for a longer period of time. Utilization assumptions estimate the timing when policyholders with a GMWB will elect to utilize their benefit and begin taking withdrawals. The assumption s may vary by the type of guarantee, tax-qualified status, the contract’s withdrawal history and the age of the policyholder. Utilization assumptions are based on company experience, which includ es partial withdrawal behavior. Increases in assumed utiliza tion rates will generally increase the fair value of the liability . Investments in C ertain E ntities C arried at F air V alue U sing N et A sset Value P er S hare The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share to measure fair value. March 31, 2017 December 31, 2016 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 $ 1,355 $ 751 $ 1,424 $ 750 Real Estate / Infrastructure Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities 248 196 258 208 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 126 36 137 31 Distressed Securities of companies that |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2017 | |
INVESTMENTS | |
INVESTMENTS | 6. Investments Securities Available for Sale The following table presents the amortized cost or cost and fair value of our available for sale securities: Other-Than- Amortized Gross Gross Temporary Cost or Unrealized Unrealized Fair Impairments (in millions) Cost Gains Losses Value in AOCI (a) March 31, 2017 Bonds available for sale: U.S. government and government sponsored entities $ 2,236 $ 149 $ (23) $ 2,362 $ - Obligations of states, municipalities and political subdivisions 18,877 967 (141) 19,703 - Non-U.S. governments 13,688 757 (138) 14,307 - Corporate debt 123,469 7,290 (1,429) 129,330 2 Mortgage-backed, asset-backed and collateralized: RMBS 33,042 2,648 (403) 35,287 1,317 CMBS 13,374 392 (157) 13,609 53 CDO/ABS 15,943 305 (148) 16,100 35 Total mortgage-backed, asset-backed and collateralized 62,359 3,345 (708) 64,996 1,405 Total bonds available for sale (b) 220,629 12,508 (2,439) 230,698 1,407 Equity securities available for sale: Common stock 605 386 (5) 986 - Preferred stock 749 76 - 825 - Mutual funds 250 39 (1) 288 - Total equity securities available for sale 1,604 501 (6) 2,099 - Total $ 222,233 $ 13,009 $ (2,445) $ 232,797 $ 1,407 December 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 1,870 $ 148 $ (26) $ 1,992 $ - Obligations of states, municipalities and political subdivisions 24,025 1,001 (254) 24,772 - Non-U.S. governments 14,018 773 (256) 14,535 - Corporate debt 126,648 7,271 (1,739) 132,180 (31) Mortgage-backed, asset-backed and collateralized: RMBS 35,311 2,541 (478) 37,374 1,212 CMBS 14,054 409 (192) 14,271 45 CDO/ABS 16,315 278 (180) 16,413 39 Total mortgage-backed, asset-backed and collateralized 65,680 3,228 (850) 68,058 1,296 Total bonds available for sale (b) 232,241 12,421 (3,125) 241,537 1,265 Equity securities available for sale: Common stock 708 369 (12) 1,065 - Preferred stock 748 4 - 752 - Mutual funds 241 23 (3) 261 - Total equity securities available for sale 1,697 396 (15) 2,078 - Total $ 233,938 $ 12,817 $ (3,140) $ 243,615 $ 1,265 (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, 2017 and December 31, 2016 , bonds available for sale held by us that were below investment grade or not rated totaled $ 32.8 billion and $ 33.6 billion, respectively. Securities Available for Sale in a Loss Position The following table summarizes the fair value and gross unrealized losses on our available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrea lized 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, 2017 Bonds available for sale: U.S. government and government sponsored entities $ 892 $ 23 $ - $ - $ 892 $ 23 Obligations of states, municipalities and political subdivisions 3,115 111 239 30 3,354 141 Non-U.S. governments 2,983 68 463 70 3,446 138 Corporate debt 24,721 865 4,832 564 29,553 1,429 RMBS 7,752 232 3,363 171 11,115 403 CMBS 4,248 136 333 21 4,581 157 CDO/ABS 3,467 67 1,593 81 5,060 148 Total bonds available for sale 47,178 1,502 10,823 937 58,001 2,439 Equity securities available for sale: Common stock 56 4 17 1 73 5 Mutual funds 2 - 3 1 5 1 Total equity securities available for sale 58 4 20 2 78 6 Total $ 47,236 $ 1,506 $ 10,843 $ 939 $ 58,079 $ 2,445 December 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 720 $ 26 $ - $ - $ 720 $ 26 Obligations of states, municipalities and political subdivisions 5,814 221 231 33 6,045 254 Non-U.S. governments 3,865 162 489 94 4,354 256 Corporate debt 28,184 1,013 6,080 726 34,264 1,739 RMBS 8,794 252 4,045 226 12,839 478 CMBS 4,469 152 479 40 4,948 192 CDO/ABS 5,362 102 1,961 78 7,323 180 Total bonds available for sale 57,208 1,928 13,285 1,197 70,493 3,125 Equity securities available for sale: Common stock 125 12 - - 125 12 Mutual funds 64 3 - - 64 3 Total equity securities available for sale 189 15 - - 189 15 Total $ 57,397 $ 1,943 $ 13,285 $ 1,197 $ 70,682 $ 3,140 At March 31, 2017 , we held 8,235 and 63 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 1,478 and six individual fixed maturity and equity securities , respectively, 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, 2017 because we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant decli nes, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and other available ma rket data. Contractual Maturities of Fixed Maturity Securities Available for Sale The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity: Total Fixed Maturity Securities Fixed Maturity Securities in a Loss Available for Sale Position Available for Sale (in millions) Amortized Cost Fair Value Amortized Cost Fair Value March 31, 2017 Due in one year or less $ 7,064 $ 7,266 $ 572 $ 566 Due after one year through five years 47,682 50,305 5,132 5,016 Due after five years through ten years 41,861 42,976 12,546 12,036 Due after ten years 61,663 65,155 20,726 19,627 Mortgage-backed, asset-backed and collateralized 62,359 64,996 21,464 20,756 Total $ 220,629 $ 230,698 $ 60,440 $ 58,001 December 31, 2016 Due in one year or less $ 7,796 $ 7,994 $ 604 $ 581 Due after one year through five years 49,200 51,958 6,002 5,841 Due after five years through ten years 43,308 44,226 16,045 15,332 Due after ten years 66,257 69,301 25,007 23,629 Mortgage-backed, asset-backed and collateralized 65,680 68,058 25,960 25,110 Total $ 232,241 $ 241,537 $ 73,618 $ 70,493 Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. The following table presents the gross realized gains and gross realized losses from sales or mat urities of our available for sale securities: 2017 2016 Gross Gross Gross Gross Three Months Ended March 31, Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Fixed maturity securities $ 333 $ 178 $ 187 $ 549 Equity securities 17 16 32 8 Total $ 350 $ 194 $ 219 $ 557 For the three -month periods ended March 31, 2017 and 2016 , the aggregate fair value of available for sale securities sold was $ 15.8 billion and $ 6.1 billion, respectively, which resulted in net realized capital gains (losses) of $ 156 million and $ (338) million, respectively. Other Securities Measured at Fair Value The following table presents the fair value of other securities measured at fair value based on our election of the fair value option: March 31, 2017 December 31, 2016 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 2,931 21 % $ 2,939 20 % Obligations of states, municipalities and political subdivisions - - - - Non-U.S. governments 50 - 51 - Corporate debt 1,773 12 1,772 12 Mortgage-backed, asset-backed and collateralized : RMBS 1,971 14 2,025 14 CMBS 536 4 603 4 CDO/ABS and other collateralized * 6,344 45 6,608 47 Total mortgage-backed, asset-backed and collateralized 8,851 63 9,236 65 Total fixed maturity securities 13,605 96 13,998 97 Equity securities 500 4 482 3 Total $ 14,105 100 % $ 14,480 100 % * Includes $ 353 million and $ 421 million of U.S. g overnment agency-backed ABS at March 31, 2017 and December 31, 2016 , respectively. Other Invested Assets The following table summarizes the carrying amoun ts of other invested assets : March 31, December 31, (in millions) 2017 2016 Alternative investments (a) (b) $ 12,712 $ 13,379 Investment real estate (c) 7,057 6,900 Aircraft asset investments (d) 281 321 Investments in life settlements 2,105 2,516 All other investments 1,497 1,422 Total $ 23,652 $ 24,538 (a) At March 31, 2017 , includes hedge funds of $ 6.9 billion, private equity funds of $ 5.2 billion, and affordable housing partnerships of $ 578 million. At December 31, 2016 , includes hedge funds of $ 7.2 billion, private equity funds of $ 5.5 billion, and affordable housing partnerships of $ 625 million. (b) Approximately 64 percent and 21 percent of our hedge fund portfolio is available for redemption in 2017 and 2018, respectively, an additional 10 percent will be available between 2019 and 2024 . (c) Net of accumulated depreciation of $ 362 million and $ 451 million in March 31, 2017 and December 31, 2016 , respectively. (d) Consists of investments in aircraft equipment held in a consolidated trust. Net Investment Income The following table presents the components of Net i nvestment i ncome: Three Months Ended March 31, (in millions) 2017 2016 Fixed maturity securities, including short-term investments $ 2,801 $ 2,936 Equity securities 5 (22) Interest on mortgage and other loans 393 389 Alternative investments * 448 (366) Real estate 49 53 Other investments 116 137 Total investment income 3,812 3,127 Investment expenses 126 114 Net investment income $ 3,686 $ 3,013 * Includes income from hedge funds, private equity funds and affordable housing partnerships. 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) 2017 2016 Sales of fixed maturity securities $ 155 $ (362) Sales of equity securities 1 24 Other-than-temporary impairments: Severity - (2) Change in intent (1) (29) Foreign currency declines (10) (6) Issuer-specific credit events (57) (131) Adverse projected cash flows - (36) Provision for loan losses 6 30 Foreign exchange transactions 159 (520) Derivatives and hedge accounting (376) (72) Impairments on investments in life settlements (41) (157) Other * 49 155 Net realized capital losses $ (115) $ (1,106) * Includes $ 107 million of realized gains due to a purchase price adjustment on the sale of Class B shares of Prude ntial Financial, Inc. for the three months ended March 31, 2016 . Change in Unrealized Appreciation (Depreciation) of Investments The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale sec urities and other investments: Three Months Ended March 31, (in millions) 2017 2016 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ 773 $ 4,778 Equity securities 114 (95) Other investments (54) (148) Total increase (decrease) in unrealized appreciation (depreciation) of investments * $ 833 $ 4,535 * Excludes net unrealized losses attributable to businesses held for sale. Evaluating Investments for Other-Than-Temporary Impairments For a discussion of our policy for evaluating investments for other-than-temporary impairments, see Note 6 to the Consolidated Financial Statements in the 201 6 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 matu rity securities: Three Months Ended March 31, (in millions) 2017 2016 Balance, beginning of year $ 1,098 $ 1,747 Increases due to: Credit impairments on new securities subject to impairment losses 17 110 Additional credit impairments on previously impaired securities 30 55 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell (11) (150) Accretion on securities previously impaired due to credit * (188) (239) Other - - Balance, end of period $ 946 $ 1,523 * Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time. Purchased Credit Impaired (PCI) Securities We purchase certain RMBS securities that have experienced deterioration in credit quality since their issuance. We determine whether it is probable at acquisition that we will not collect all contractually required payments for these PCI securities, including both principal and interest. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security is determined based on our best estimate using key assumptions, such as interest rates, default rates and prepayment speeds. At acquisition, the difference between the undiscounted expected future cash flows of the PCI securities and the recorded investment in the securities represents the initial accretable yield, which is accreted into Net investment income over their remaining lives on an effective yield basis. Additionally, the diff erence 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 f lows 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 th e 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 recogniz ed prospectively as adjustments to the accretable yield. The following tables present information on our PCI securities, which are included in bonds available for sale: (in millions) At Date of Acquisition Contractually required payments (principal and interest) $ 36,159 Cash flows expected to be collected * 29,575 Recorded investment in acquired securities 19,884 * Represents undiscounted expect ed cash flows, including both principal and interes t . (in millions) March 31, 2017 December 31, 2016 Outstanding principal balance $ 16,270 $ 16,728 Amortized cost 11,649 11,987 Fair value 12,754 12,922 The following table presents activ ity for the accretable yield on PCI securities: Three Months Ended March 31, (in millions) 2017 2016 Balance, beginning of period $ 7,498 $ 6,846 Newly purchased PCI securities 88 206 Disposals (18) - Accretion (210) (214) Effect of changes in interest rate indices 21 (299) Net reclassification from (to) non-accretable difference, including effects of prepayments 214 83 Balance, end of period $ 7,593 $ 6,622 Pledged Investments Secured Financing and Similar Arrangements We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agree ments). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value. Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transactions. In the event of a decline in the fa ir value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements. At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively. The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending ag reements: (in millions) March 31, 2017 December 31, 2016 Fixed maturity securities available for sale $ 2,405 $ 2,389 Other bond securities, at fair value $ 1,776 $ 1,799 At March 31, 2017 and December 31, 2016 , amounts borrowed under repurchase and securities lending agreements totaled $ 4.3 billion and $ 4.2 billion , respectively. The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity: Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2017 Other bond securities: Non-U.S. governments $ - $ - $ 51 $ - $ - $ 51 Corporate debt - 377 791 557 - 1,725 Total $ - $ 377 $ 842 $ 557 $ - $ 1,776 December 31, 2016 Other bond securities: Non-U.S. governments $ - $ - $ - $ 51 $ - $ 51 Corporate debt - 163 860 725 - 1,748 Total $ - $ 163 $ 860 $ 776 $ - $ 1,799 The following table presents the fair value of securities pledged under our securities lending agreements by collateral type and by remaining con tractual 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, 2017 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ - $ - $ - $ - $ - Non-U.S. governments - - - 52 - 52 Corporate debt - 439 1,598 316 - 2,353 CMBS - - - - - - Total $ - $ 439 $ 1,598 $ 368 $ - $ 2,405 December 31, 2016 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ 21 $ - $ - $ - $ 21 Non-U.S. governments - - 50 - - 50 Corporate debt - 791 1,466 - - 2,257 CMBS - - 61 - - 61 Total $ - $ 812 $ 1,577 $ - $ - $ 2,389 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 agreements: (in millions) March 31, 2017 December 31, 2016 Securities collateral pledged to us $ 1,459 $ 1,434 Amount sold or repledged by us $ 14 $ 11 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 $ 5.1 billion and $ 4.9 billion at March 31, 2017 and December 31, 2016 , 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 $ 116 million and $ 114 milli on of stock in FHLBs at March 31, 2017 and December 31, 2016 , respectively. In addition, our subsidiaries have pledged securities available for sale and residential loans associated with advances from FHLB, with a fair value of $ 4.5 billion and $ 116 million, respectively, at March 31, 2017 and $ 3.4 billion and $ 17 million, respecti vely, at December 31, 2016 , associated with advances from the FHLBs. Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevaili ng at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations was approximately $ 2.2 billion at both March 31, 2017 and December 31, 2016 . This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties. Investments held in escrow accounts or otherwise subject to restriction as to their use were $ 545 million and $ 523 million, comprised of bonds available for sale and short term investments at March 31, 2017 and December 31, 2016 , respectively. |
LENDING ACTIVITIES
LENDING ACTIVITIES | 3 Months Ended |
Mar. 31, 2017 | |
LENDING ACTIVITIES | |
LENDING ACTIVITIES | 7. Lending Activities The following table presents the composition of Mortgage and other loans receivable, net: March 31, December 31, (in millions) 2017 2016 Commercial mortgages * $ 25,995 $ 25,042 Residential mortgages 4,401 3,828 Life insurance policy loans 2,324 2,367 Commercial loans, other loans and notes receivable 1,447 2,300 Total mortgage and other loans receivable 34,167 33,537 Allowance for credit losses (289) (297) Mortgage and other loans receivable, net $ 33,878 $ 33,240 * Commercial mortgages primarily represent loans for office s , apartments and retail properties, with exposures in New York and California representing the largest geographic concentrations ( aggregating approximately 23 percent and 12 percent , respectively, at March 31, 2017 , and 24 percent and 12 percent , respectively, at December 31, 2016 ) . Credit Qua lity of Commercial Mortgages The following table presents debt service coverage ratios and loan-to-value ratios for commercial mortgages: Debt Service Coverage Ratios (a) (in millions) >1.20X 1.00X - 1.20X <1.00X Total March 31, 2017 Loan-to-Value Ratios (b) Less than 65% $ 15,636 $ 1,309 $ 230 $ 17,175 65% to 75% 5,842 656 62 6,560 76% to 80% 881 133 82 1,096 Greater than 80% 496 538 130 1,164 Total commercial mortgages $ 22,855 $ 2,636 $ 504 $ 25,995 December 31, 2016 Loan-to-Value Ratios (b) Less than 65% $ 13,998 $ 1,694 $ 232 $ 15,924 65% to 75% 5,946 575 62 6,583 76% to 80% 1,246 174 47 1,467 Greater than 80% 471 392 205 1,068 Total commercial mortgages $ 21,661 $ 2,835 $ 546 $ 25,042 (a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest . (b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing th e loan . The following t able presents the credit quality performance 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, 2017 Credit Quality Performance Indicator: In good standing 790 $ 6,305 $ 8,109 $ 4,993 $ 2,196 $ 2,261 $ 1,963 $ 25,827 99 % Restructured (a) 4 - 134 18 - 16 - 168 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 794 $ 6,305 $ 8,243 $ 5,011 $ 2,196 $ 2,277 $ 1,963 $ 25,995 100 % Allowance for credit losses: Specific $ - $ 5 $ 1 $ - $ 1 $ - $ 7 - % General 44 72 46 9 13 16 200 1 Total allowance for credit losses $ 44 $ 77 $ 47 $ 9 $ 14 $ 16 $ 207 1 % December 31, 2016 Credit Quality Performance Indicator: In good standing 784 $ 6,005 $ 7,830 $ 5,179 $ 1,898 $ 2,373 $ 1,589 $ 24,874 99 % Restructured (a) 4 - 134 18 - 16 - 168 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 788 $ 6,005 $ 7,964 $ 5,197 $ 1,898 $ 2,389 $ 1,589 $ 25,042 100 % Allowance for credit losses: Specific $ - $ 3 $ 1 $ 6 $ 1 $ - $ 11 - % General 35 72 41 7 13 15 183 1 Total allowance for credit losses $ 35 $ 75 $ 42 $ 13 $ 14 $ 15 $ 194 1 % (a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings , see Note 7 to the Consolidated Financial Statements in the 2016 Annual Report . (b) Does not reflect a llowance for credit l osses . (c) 100 percent of the commercial mortgage s held at such respective dates were current as to payments of principal and interes t. There were no significant amounts of nonperforming commercial mortgages (de fined as those loans where payment of contractual principal or interest is more than 90 days past due) during any of the periods presented. Allowance for Credit Losses See Note 7 to the Consolidated Financial Statements in the 2016 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 re ceivable: 2017 2016 Three Months Ended March 31, Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 194 $ 103 $ 297 $ 171 $ 137 $ 308 Loans charged off - - - (11) - (11) Recoveries of loans previously charged off - - - 11 - 11 Net charge-offs - - - - - - Provision for loan losses 13 (21) (8) (5) (26) (31) Other - - - - - - Allowance, end of period $ 207 * $ 82 $ 289 $ 166 * $ 111 $ 277 * Of the total allowance , $ 7 million and $ 12 million relate to individually assessed credit losses on $ 266 million and $ 298 million of commercial mortgages at March 31, 2017 and 2016 , respectively. There were no loans modified in troubled debt restructurings during the three -month periods ended March 31, 2017 and March 31, 2016 . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2017 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 8. 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 purp ose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks the entity was designed to expose the variable interest holders to. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be po tentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VI E. 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 (e) Structured Investment Vehicle Affordable Housing Partnerships Other Total March 31, 2017 Assets: Bonds available for sale $ - $ 9,534 $ - $ - $ - $ 9,534 Other bond securities - 4,751 263 - 5 5,019 Mortgage and other loans receivable - 1,328 - - - 1,328 Other invested assets 1,029 281 - 3,118 24 4,452 Other (a) 244 1,158 59 436 90 1,987 Total assets (b) $ 1,273 $ 17,052 $ 322 $ 3,554 $ 119 $ 22,320 Liabilities: Long-term debt $ 428 $ 682 $ 58 $ 1,880 $ 5 $ 3,053 Other (c) 94 215 1 217 37 564 Total liabilities $ 522 $ 897 $ 59 $ 2,097 $ 42 $ 3,617 December 31, 2016 Assets: Bonds available for sale $ - $ 10,233 $ - $ - $ - $ 10,233 Other bond securities - 4,858 266 - 5 5,129 Mortgage and other loans receivable 1 1,442 - - 104 1,547 Other invested assets 1,052 321 - 2,821 28 4,222 Other (a) 365 1,104 50 384 92 1,995 Total assets (b) $ 1,418 $ 17,958 $ 316 $ 3,205 $ 229 $ 23,126 Liabilities: Long-term debt $ 444 $ 771 $ 56 $ 1,696 $ 6 $ 2,973 Other (c) 224 203 1 211 38 677 Total liabilities $ 668 $ 974 $ 57 $ 1,907 $ 44 $ 3,650 (a) Comprised primarily of Short-term investments and Other assets at March 31, 2017 and December 31, 2016 . (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, 2017 and December 31, 2016 . (d) At March 31, 2017 and December 31, 2016 , off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $ 93 million and $ 106 million, respectively. (e) At March 31, 2017 and December 31, 2016 , $ 17.0 billion and $ 17.3 billion, respectively, of the total assets of consolidated securitization vehicles were owed to AIG Parent or its subsidiaries. We calculate our maximu m 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 com mitments and guarantees to the VIE. Interest holders in VIEs sponsored by us generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to us, except in limited circumstances when we have provided a guarantee to the VIE’ s interest holders. The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs: Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (b) Sheet Total March 31, 2017 Real estate and investment entities (a) $ 401,264 $ 10,517 $ 2,072 $ 12,589 Affordable housing partnerships 4,407 758 - 758 Other 2,458 289 1,175 (c) 1,464 Total $ 408,129 $ 11,564 $ 3,247 $ 14,811 December 31, 2016 Real estate and investment entities (a) $ 409,087 $ 11,015 $ 2,115 $ 13,130 Affordable housing partnerships 4,709 785 - 785 Other 2,869 314 1,045 (c) 1,359 Total $ 416,665 $ 12,114 $ 3,160 $ 15,274 (a) Comprised primarily of hedge funds and private equity funds. (b ) At March 31, 2017 and December 31, 2016 , $ 11.1 billion and $ 11.7 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (c ) These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance polic ies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. See Note 10 to the Consolidated Financial Sta tements in the 201 6 Annual Report for additional information on VIEs. |
DERIVATIVES AND HEDGE ACCOUNTIN
DERIVATIVES AND HEDGE ACCOUNTING | 3 Months Ended |
Mar. 31, 2017 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
DERIVATIVES AND HEDGE ACCOUNTING | 9. Derivatives and Hedge Accounting We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. See Note 1 1 to the Consolidated Financial Statements in the 2016 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 s and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets: March 31, 2017 December 31, 2016 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 $ 155 $ 1 $ 761 $ 11 $ 175 $ - $ 782 $ 11 Foreign exchange contracts 4,353 340 2,361 71 3,527 385 2,602 184 Equity contracts - - 119 9 - - 113 7 Derivatives not designated as hedging instruments: (a) Interest rate contracts 59,814 2,348 27,134 2,504 51,030 2,328 44,211 3,066 Foreign exchange contracts 6,383 771 9,268 1,034 9,468 935 7,674 1,185 Equity contracts 21,506 447 2,703 39 14,060 305 8,633 12 Credit contracts (b) 3 2 825 317 4 2 861 331 Other contracts (c) 39,113 21 61 6 37,633 22 62 6 Total derivatives, gross $ 131,327 $ 3,930 $ 43,232 $ 3,991 $ 115,897 $ 3,977 $ 64,938 $ 4,802 Counterparty netting (d) (1,269) (1,269) (1,265) (1,265) Cash collateral (e) (1,414) (1,461) (903) (1,521) Total derivatives on condensed consolidated balance sheets (f) $ 1,247 $ 1,261 $ 1,809 $ 2,016 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b ) As of March 31, 2017 and December 31, 2016 , included CDSs on super senior multi-sector CDOs with a net notional amount of $ 774 m illion and $ 801 m illion (fair value liability of $ 299 million and $ 308 million), respectively. The expected weighted average maturity as of March 31, 2017 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 r epresents the maximum exposure to loss on the portfolio. As of March 31, 2017 and December 31, 2016 , there were no super senior corporate debt/CLOs remaining. (c) Consists primarily of stable value wraps and contracts with mu ltiple underlying exposures. (d) Represents netting of derivative exposures covered by a qualifying master netting agreement. (e) Represents cash collateral posted and received that is eligible for netting. (f) Freestanding derivatives only, excludes Embed ded derivatives. Derivative instrument assets and liabilities are recorded in Other Assets and Liabilities, respectively. Fair value of assets related to bifurcated Embedded derivatives was zero at both March 31, 2017 and December 31, 2 016. Fair value of liabilities related to bifurcated Embedded derivatives was $ 3.1 billion at both March 31, 2017 and December 31, 2016. A bifurcated Embedded derivative is generally presented with the host contr act 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 that en able 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 gene rally 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 g ive the counterparty the right to terminate the transaction. In the case of some of the derivative transactions, upon a downgrade of our long -term debt ratings, as an alternative to posting collateral and subject to certain conditions, we may assign the tr ansaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action. The actual amount of collateral required to be posted to counterparties in the ev ent of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. Collateral posted by us to third parties for derivative transactions was $ 3.6 billion and $ 4.5 billion at March 31, 2017 and December 31, 2016 , respectively. In the case of collateral poste d under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $ 1.4 billion and $ 1.5 billion at March 31, 2017 and December 31, 2016 , respectively. In the case of collateral provided to us under derivative transactions that are not subject to clearing, we generally can repledge or r esell 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 entere d into with third parties as fair value hedges of available for sale investment securities held by our insurance subsidiaries. The fair value hedges include foreign currency forwards and cross currency swaps designated as hedges of the change in fair value of foreign currency denominated available for sale securities attributable to changes in foreign exchange rates. We also designated certain interest rate swaps entered into with third parties as fair value hedges of fixed rate GICs attributable to changes in benchmark interest rates . We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.S. dollar functional currency forei gn 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 th at 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, 2017 and 2016 , we recognized losses of $ 42 million and $ 5 million, respectively, included in Change in foreign currency translation adjustment in Other comprehensive income related to the net investment hedge relationships. A qualitative me thodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges. The following table presents the gain (loss) recognized in earnings on our derivative instruments in fair value hedgi ng 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, 2017 Interest rate contracts : Realized capital gains/(losses) $ (1) $ 1 $ - $ - $ - Other income - - - - - Gain/(Loss) on extinguishment of debt - - - - - Foreign exchange contracts : Realized capital gains/(losses) 52 (42) - 10 - Other income - 1 - - 1 Gain/(Loss) on extinguishment of debt - - - - - Equity contracts : Realized capital gains/(losses) (2) - - (2) - 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) - (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 pr eviously-discontinued fair value h edge relationship. Derivatives Not Designated as Hedging Instruments The following table presents the effect of derivative instruments not designated as hedging instruments i n the Condensed Cons olidated Statement s of Income : Gains (Losses) Three Months Ended March 31, Recognized in Earnings (in millions) 2017 2016 By Derivative Type: Interest rate contracts $ (152) $ 770 Foreign exchange contracts (46) (28) Equity contracts (314) (131) Commodity contracts - - Credit contracts 15 6 Other contracts 18 16 Embedded derivatives 146 (772) Total $ (333) $ (139) By Classification: Policy fees $ 20 $ 20 Net investment income (2) (1) Net realized capital losses (384) (35) Other income (losses) 33 (130) Policyholder benefits and claims incurred - 7 Total $ (333) $ (139) 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, 2017 and December 31, 2016 , was approximately $ 2.3 billion and $ 3.0 billion, respectively. The aggregate fair value of assets posted as collateral under these contracts at March 31, 2017 and December 31, 2016 , was approximately $ 3.0 billion and $ 4.0 billion, respectively. We estimate that at March 31, 2017 , based on our outstanding financial derivative transactions, a downgrade of our long-term s enior debt ratings to BBB or BBB– by Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and/or a downgrade to Baa2 or Baa3 by Moody’s Investors’ Service, Inc. would permit counterparties to make additional collateral calls and permi t certain counterparties to elect early termination of contracts, resulting in corresponding collateral postings and termination payments in the total amount of up to approximately $ 122 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, 2017 . Factors considered in estimating the termination payments upon downgrade inc lude 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 estima tes 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 $ 4.6 billion and $ 4.8 billion at March 31, 2017 and December 31, 2016 , respectively . These securities have par amounts of $ 9.9 billion and $ 10.1 billion at March 31, 2017 and December 31, 2016 , respectively, and have remaining stated maturit y dates that extend to 2052. |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 3 Months Ended |
Mar. 31, 2017 | |
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | |
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | 10. Insurance Liabilities Liability for Unpaid Losses and Loss Adjustment Expense s (Loss Reserves) Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported (IBNR) and loss adjustment expenses ( LAE ), less applicable discount. We regularly review and update the methods used to determine loss reserve est imates. Any adjustments resulting from this review are reflected currently in pre-tax income. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for ch anges in trends to be recognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate c ost are referred to as favorable development. Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $ 12.8 billion at both March 31, 2017 and December 31, 2016 . These recoverable amounts are related to certain policies with high deductibles (in excess of high dollar amounts retained by the insured through self-insured retentions, deductibles, retrospective pro grams, or captive arrangements, each referred to generically as “deductibles”), primarily for U.S. commercial casualty business. With respect to the deductible portion of the claim, we manage and pay the entire claim on behalf of the insured and are reimbu rsed by the insured for the deductible portion of the claim. Thus, these recoverable amounts represent a credit exposure to us. At March 31, 2017 and December 31, 2016 , we held collateral of approximately $ 9.8 billion and $ 9.7 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements. The following table presents the roll forward of activity in Loss Reserves: Three Months Ended March 31, (in millions) 2017 2016 Liability for unpaid loss and loss adjustment expenses, beginning of year $ 77,077 $ 74,942 Reinsurance recoverable (15,532) (14,339) Net Liability for unpaid loss and loss adjustment expenses, beginning of year 61,545 60,603 Foreign exchange effect (105) (160) Dispositions (a) - - Retroactive reinsurance adjustment (net of discount) (b) (11,199) - Total 50,241 60,443 Losses and loss adjustment expenses incurred : Current year 4,300 4,912 Prior years, excluding discount 25 (66) Prior years, discount charge (benefit) (25) (9) Total losses and loss adjustment expenses incurred 4,300 4,837 Losses and loss adjustment expenses paid : Current year (571) (580) Prior years (4,753) (4,966) Total losses and loss adjustment expenses paid (5,324) (5,546) Reclassified to liabilities held for sale (c) (87) - Liability for unpaid loss and loss adjustment expenses, end of period: Net liability for unpaid losses and loss adjustment expenses 49,130 59,734 Reinsurance recoverable 26,920 14,212 Total $ 76,050 $ 73,946 (a) Includes amounts related to dispositions through the date of disposition. Includes sale of UGC and Ascot. (b) Includes discount on retroactive r einsurance in the amount of $1.7 billion. (c) Represents change in loss reserves included in our pending sale of certain of our insurance operations to Fairfax for the three months ended March 31, 2017. Upon consummation of the sale, we may retain a portion of these reserves through reinsurance arrangements. On January 20, 2017, we entered into an adverse development reinsurance agreement with NICO, a subsidiary of Berkshire, under which we transferred to NICO 80 percent of the reserve risk on substantially all of our U.S. Commercial long-tail exposures for accident years 2015 and prior. Under this agreement, we ceded to NICO 80 percent of the paid losses on subject business paid on or after January 1, 2016 in excess of $25 billion of net paid losses, up to an aggregate limit of $25 billion. At NICO’s 80 per cent share, NICO’s limit of liability under the contract is $20 billion. We account for this transaction as retroactive reinsurance. We paid total consideration, including interest, of $10.2 billion. The consideration was placed into a collateral trust ac count as security for NICO’s claim payment obligations, and Berkshire has provided a parental guarantee to secure the obligations of NICO under the agreement. Discounting of Loss Reserves At March 31, 2017 , the loss reserves reflect a net loss reserve discount of $ 1.9 billion, including tabular and non-tabular calculations based upon the following assumptions: Certain asbestos claims are discounted when allowed by the regulator and when payments are fixed and determinable, based on the investment yields of the companies and the payout pattern for the claims. At December 31, 2016, the discount for asbestos reserves was f ully amortized. The tabular workers’ compensation discount is calculated based on a 3.5 percent interest rate and the mortality rate used in the 2007 U.S. Life Table. The non-tabular workers’ compensation discount is calculated se parately for companies domiciled in New York and Pennsylvania, and follows the statutory regulations (prescribed or permitted) for each state. For New York companies, the discount is based on a 5 percent interest rate and the comp anies’ own payout patterns. In 2012, for Pennsylvania companies, the statute has specified discount factors for accident years 2001 and prior, which are based on a 6 percent interest rate and an industry payout pattern. For accide nt years 2002 and subsequent, the discount is based on the payout patterns and investment yields of the companies. In 2013, our Pennsylvania regulator approved use of a consistent discount rate (U.S. Treasury rate plus a liquidity premium) to all of our w orkers’ compensation reserves in our Pennsylvania-domiciled companies, as well as our use of updated payout patterns specific to our primary and excess workers compensation portfolios. In the fourth quarter of 2016, our Pennsylvania and Delaware regulato rs approved an updated discount rate that we applied to our workers’ compensation loss reserves for the legal entities domiciled in those states. The discount consists of $ 491 million of tabular discount and $ 1.5 billion of non-tabular discount for workers’ compensation. During the three -month periods ended March 31, 2017 and 2016 , the benefit /( charge) from changes in discount of $ 25 million and $ 10 million, respectively, were recorded as part of the policyholder benefits and losses incurred in the Condensed Consolidated Statement of Income. For the three-month period ended March 31, 2017, the discount on workers’ compensati on reserves decreased by $ 1.7 billion due to the impact of the adverse development reinsurance agreement with NICO. During the first quarter of 2017, reserves were established for accident year 2017, which increased the discount by $32 millio n. In addition, the increase in the forward yield curve component of the discount rates resulted in a $57 million increase in t he loss reserve discount. This increase was partially offset by a $64 million reduction for accident years 2016 and prior, primar ily from accretion of discount on reserves for the first quarter of 2017. This resulted in an increase in the loss reserve discount of $25 million. During the first quarter of 2016, reserves were established for accident year 2016, which increased the disc ount by $48 million. This increase was partially offset by a $27 million reduction for accident years 2015 and prior, primarily from accretion of discount on reserves for the first quarter of 2016. In addition, decreases in the forward yield curve componen t of the discount rates resulted in an $11 million decrease in the loss reserve discount, as Treasury rates generally decreased in the first quarter of 2016 along the payout pattern horizon as compared to the prior periods, partially offset by an increase in the credit spread. This resulted in an increase in the loss reserve discount of $10 million. The following table presents the components of the loss reserve discount discussed above: March 31, 2017 December 31, 2016 Legacy Portfolio Legacy Portfolio U.S. Liability - Property and U.S. Liability - Property and and Casualty run-off and Casualty run-off (in millions) Financial Lines Insurance Lines Total Financial Lines Insurance Lines Total U.S. workers' compensation $ 2,606 $ 989 $ 3,595 $ 2,583 $ 987 $ 3,570 Retroactive reinsurance (1,655) - (1,655) - - - Total reserve discount $ 951 $ 989 $ 1,940 $ 2,583 $ 987 $ 3,570 The following table presents the net loss reserve discount benefit (charge) : Three Months Ended March 31, 2017 2016 Legacy Portfolio Legacy Portfolio U.S. Liability - Property and U.S. Liability - Property and and Casualty run-off and Casualty run-off (in millions) Financial Lines Insurance Lines Total Financial Lines Insurance Lines Total Current accident year $ 32 $ - $ 32 $ 48 $ - $ 48 Accretion and other adjustments to prior year discount (48) (16) (64) (14) (14) (28) Effect of interest rate changes 39 18 57 (8) (3) (11) Net reserve discount benefit (charge) 23 2 25 26 (17) 9 Change in discount on loss reserves ceded under retroactive reinsurance (1,655) - (1,655) - - - Net change in total reserve discount $ (1,632) $ 2 $ (1,630) $ 26 $ (17) $ 9 Comprised of: U.S. Workers' compensation $ (1,632) $ 2 $ (1,630) $ 26 $ (16) $ 10 Asbestos $ - $ - $ - $ - $ (1) $ (1) |
CONTINGENCIES, COMMITMENTS AND
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 3 Months Ended |
Mar. 31, 2017 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 11. Contingencies, Commitments and Guarantees In the normal course of business, various contingent liabilities and commitments are entered into by AIG and our subsidiaries. In addition, AIG Parent guarantees various obligations of certain subsidiaries. Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on AIG’s consolidate d financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period. Legal Contingencies Overview. In the normal course of business, AIG and our subsidiaries are, like others in the insurance and f inancial services industries in general, subject to litigation, including claims for punitive damages. In our insurance operations, litigation arising from claims settlement activities is generally considered in the establishment of our loss reserves. Howe ver, the potential for increasing jury awards and settlements makes it difficult to assess the ultimate outcome of such litigation. AIG is also subject to derivative, class action and other claims asserted by its shareholders and others alleging, among oth er 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 o f 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 Portfoli o 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. resid ential 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 Exposu re 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 agains t 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 (SDNY) 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 alle gedly 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 Exposure Issues. In 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 paid the settlement amount of $ 960 million . On March 20, 2015, the Court issued an Order and Final Judgment approving the class settle ment 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 Securiti es Litigations) were filed in or transferred to the SDNY, 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 di smissed. On September 10, 2015, the SDNY granted AIG’s motion to dismiss some of the claims in the Individual Securities Litigations in whole or in part. AIG has settled eight of the nine remaining actions. The remaining Individual Securities Litigation pe nding in the SDNY was brought by a series of institutional investor funds. After the court’s decision granting AIG’s motion to dismiss plaintiff’s claims in part, the claims in the remaining action are limited to a claim under Section 10(b) of the Exchange Act for allegedly materially false and misleading statements in AIG’s public disclosures from February 8, 2008 to September 16, 2008 relating to, among other things, the Subprime Exposure Issues. On January 17, 2017, AIG filed a motion for summary judgmen t to dismiss the vast majority of the institutional investor funds’ remaining claims and a motion to stay the action pending the resolution of this motion. AIG has appealed a March 9, 2017 decision by the magistrate judge, denying AIG’s motion to stay. O n March 27, 2015, an additional securities action was filed in state court in Orange County, California asserting a claim against AIG pursuant to Section 11 of the Securities Act (the California Action) that is substantially similar to those in the Consoli dated 2008 Securities Litigation and the Individual Securities Litigations. After denying AIG’s motion to remove the California Action to federal court and stay the action, the trial court overruled AIG’s demurrer to dismiss all of the claims asserted in t he California Action, which is currently on appeal to the California Court of Appeals for the Fourth Appellate District. 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 deriv atively on behalf of AIG (the SICO Treasury Action). The complaint challenges the government’s assistance of AIG, pursuant to which AIG entered into a credit facility with the Federal Reserve Bank of New York (the FRBNY, and such credit facility, the FRBNY Credit Facility) and the United States received an approximately 80 percent ownership in AIG. The complaint alleges that the interest rate imposed on AIG and the appropriation of approximately 80 percent of AIG’s equity was discr iminatory, unprecedented, and inconsistent with liquidity assistance offered by the government to other comparable firms at the time and violated the Equal Protection, Due Process, and Takings Clauses of the U.S. Constitution. In the SICO Treasury Action, the only claims naming AIG as a party (as a nominal defendant) are derivative claims on behalf of AIG. On September 21, 2012, SICO made a pre -litigation demand on our Board demanding that we pursue the derivative claims or allow SICO to pursue the claims o n our behalf. On January 9, 2013, our Board unanimously refused SICO’s demand in its entirety and on January 23, 2013, counsel for the Board sent a letter to counsel for SICO describing the process by which our Board considered and refused SICO’s demand an d stating the reasons for our Board’s determination. On March 11, 2013, SICO filed a second amended complaint in the SICO Treasury Action alleging that its demand was wrongfully refused. On June 26, 2013, the Court of Federal Claims granted AIG’s and the U nited States’ motions to dismiss SICO’s derivative claims in the SICO Treasury Action due to our Board’s refusal of SICO’s demand and denied the United States’ motion to dismiss SICO’s direct, non-derivative claims. On March 11, 2013, the Court of Federal Claims in the SICO Treasury Action granted SICO’s motion for class certification of two classes with respect to SICO’s non -derivative claims: (1) persons and entities who held shares of AIG Common Stock on or before September 16, 2008 and who owned those shares on September 22, 2008 (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 shareh olders (the Reverse Stock Split Shareholder Class). SICO has provided notice of class certification to potential members of the classes, who, pursuant to a court order issued on April 25, 2013, had to return opt -in consent forms by September 16, 2013 to pa rticipate in either class. 286,908 holders of AIG Common Stock during the two class periods have opted into the classes. On June 15, 2015, the Court of Federal Claims issued its opinion and order in the SICO Treasury Action. The Court found that the United States exceeded its statutory authority by exacting approximately 80 percent of AIG’s equity in exchange for the FRBNY Credit Facility, but that AIG shareholders suffered no damages as a result. SICO argued during trial that the two classes are entitled to a total of approximately $ 40 billion in damages, plus interest. The Court also found that the United States was not liable to the Reverse Stock Split Class in connection with the reverse stock split vot e at the June 30, 2009 annual meeting of shareholders. On June 17, 2015, the Court of Federal Claims entered judgment stating that “the Credit Agreement Shareholder Class shall prevail on liability due to the Government's illegal exaction, but shall recove r zero damages, and that the Reverse Stock Split Shareholder Class shall not prevail on liability or damages.” SICO filed a notice of appeal of the July 2, 2012 dismissal of SICO’s unconstitutional conditions claim, the June 26, 2013 dismissal of SICO’s d erivative 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. The United States filed a notice of cross appeal of the Court’s July 2, 2012 opinion and or der denying in part its motion to dismiss, the Court’s June 26, 2013 opinion and order denying its motion to 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 App eals for the Federal Circuit. On August 25, 2015, SICO filed its appellate brief, in which it stated SICO does not appeal the dismissal of the derivative claims it asserted on behalf of AIG. In the Court of Federal Claims, the United States has alleged, a s an affirmative defense in its answer, that AIG is obligated to indemnify the FRBNY and its representatives, including the Federal Reserve Board of Governors and the United States (as the FRBNY’s principal), for any recovery in the SICO Treasury Action. A IG 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 an d 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, consolid ated financial condition and results of operations. 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 ta rgeted market conduct examination in January 2008. The lead states in the multi-state examination were Delaware, Florida, Indiana, Massachusetts, Minnesota, New York, Pennsylvania and Rhode Island. All other states (and the District of Columbia) agreed t o participate in the multi-state examination. The examination focused on legacy issues 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 a n 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 te rms, (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 sp ecific steps and standards for evaluating AIG’s ongoing compliance with state regulations governing the setting of workers’ compensation insurance premium rates and the reporting of workers’ compensation premiums; and (iv) AIG’s agreement to pay up to $ 150 million in contingent fines in the event that AIG fails to comply substantially with the compliance plan requirements. In furtherance of the compliance plan, the agreement provided for a monitoring period from May 29, 2012 to May 29, 2014 l eading up to a compliance plan examination. After the close of the monitoring period, as part of preparation for the actual conduct of the compliance plan examination, on or about October 1, 2014, AIG and the lead states agreed upon corrective action plan s to address particular issues identified during the monitoring period. The compliance plan examination has concluded, and the compliance plan examination report did not impose any fines on AIG. In connection with a multi - state examination of certain accident and health products, including travel products, issued by National Union Fire Insurance Company of Pittsburgh, Pa. (National Union), AIG Property Casualty Inc. (formerly Chartis Inc.), on behalf of itself, National Uni on, 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. Unde r the agreement, and without admitting any liability for the issues raised in the examination, the AIG PC parties (i) paid a civil penalty of $ 50 million, (ii) entered into a corrective action plan describing agreed -upon specific steps and st andards for evaluating the AIG PC parties’ ongoing compliance with laws and regulations governing the issues identified in the examination, and (iii) agreed to pay a contingent fine in the event that the AIG PC parties fail to satisfy certain terms of the corrective action plan. On May 23, 2016, the managing lead state in the multi-state examination ordered that the companies subject to the Regulatory Settlement Agreement have “complied with the terms” of the Regulatory Settlement Agreement and that no cont ingent fine or civil penalty would be due. On April 27, 2017, a court granted final approval of the settlement of civil litigation relating to the conduct of National Union’s and other AIG companies’ accident and health business. An objector has thirty d ays to appeal the grant of final approval. The settlement funds, previously placed into escrow, will be disbursed once the deadline for appeal has expired. We had previously accrued our estimate of loss with respect to this settlement. 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 $ 3.1 billion at March 31, 2017 . Guarantees Subsidiaries We have issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP and of AI G Markets arising from transactions entered into by AIG Markets. In connection with AIGFP’s business activities, AIGFP has issued, in a limited number of transactions, standby letters of credit or similar facilities to equity investors of structured leasi ng transactions in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at March 31, 2017 was $ 139 million. In those transactions, AIGFP has agreed to pay such amount if the lessee fails to pay. The amount payable by AIGFP is, in certain cases, partially offset by amounts payable under other instruments typically equal to the present value of scheduled payments to be made by AIGFP. In the event that AIGFP is required to make a payment to the equity investor, the lessee is unconditionally obligated to reimburse AIGFP. To the extent that the equity investor is paid the equity termination value from the st andby letter of credit and/or other sources, including payments by the lessee, AIGFP takes an assignment of the equity investor’s rights under the lease of the underlying property. Because the obligations of the lessee under the lease transactions are gene rally economically defeased, lessee bankruptcy is the most likely circumstance in which AIGFP would be required to pay without reimbursement. Asset Dispositions We are subject to financial guarantees and indemnity arrangements in connection with the completed sales of businesses pursuant to our asset disposition plan. The various arrangements may be triggered by, among other things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent lia bilities, developments in litigation or breaches of representations, warranties or covenants provided by us. These arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitatio n. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable. We are unable to develop a reasonable estimate of the maximum potential payout under ce rtain of these arrangements. Overall, we believe that it is unlikely we will have to make any material payments related to completed sales under these arrangements, and no material liabilities related to these arrangements have been recorded in the Condens ed Consolidated Balance Sheets. Other See Note 8 to the Condensed Consolidated Financial Statements for additional discussion on commitments and guarantees associated with VIEs. See Note 9 to the Condensed Consolidated Financial Statements for additional disclosures about derivatives. See Note 16 to the Condensed Consolidated Financial Statements for additional disclosures about guarantees of outstanding debt |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2017 | |
EQUITY | |
EQUITY | 12. Equity Shares Outstanding The following table presents a rollforward of outstand ing shares : Three Months Ended March 31, 2017 Common Treasury Common Stock Stock Issued Stock Outstanding Shares, beginning of year 1,906,671,492 (911,335,651) 995,335,841 Shares issued - 3,138,933 3,138,933 Shares repurchased - (55,994,748) (55,994,748) Shares, end of period 1,906,671,492 (964,191,466) 942,480,026 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 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 29, 2017, we paid a dividend of $ 0.32 per share on AIG Common Stock to shareholder s of record on March 15, 2017. O n March 28, 2016, we paid a dividend of $ 0.32 per share on AIG Common Stock to shareholder s of record on March 14, 2016. See Note 19 to the Consolidated Financial Statements in the 2016 Annual Report for a discussion of restrictions on p ayments of dividends to AIG Parent by its subsidiaries. Repurchase of AIG Common Stock The following table presents repurchases of AIG Common Stock and warrants to purchase shares of AIG Common Stock: Three Months Ended March 31, (in millions) 2017 2016 Aggregate repurchases of common stock $ 3,585 $ 3,486 Total number of common shares repurchased 56 63 Aggregate repurchases of warrants $ - $ 173 Total number of warrants repurchased - 10 Our Board of Directors has authorized the repurchase of shares of AIG Common Stock through a series of actions. On February 14, 2017, our Board of Directors authorized an additional increase of $ 3.5 billion to its previous share repurchase authorization. As of March 31, 2017 , approximately $ 2.4 billion remained under our share repurchase authorization. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise (including through the purchase of warrants) . Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans. The timing of any future repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factors. Accumulated Other Comprehensive Income The following table presents a rollforward of Accumulated other comprehensive income : Unrealized Appreciation (Depreciation) of Fixed Maturity Securities 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, 2016, net of tax $ 426 $ 6,405 $ (2,629) $ (972) $ 3,230 Change in unrealized appreciation of investments 143 690 - - 833 Change in deferred policy acquisition costs adjustment and other * 32 38 - - 70 Change in future policy benefits - (86) - - (86) Change in foreign currency translation adjustments - - (304) - (304) Change in net actuarial loss - - - 25 25 Change in prior service cost - - - 3 3 Change in deferred tax asset (liability) (61) 53 28 (10) 10 Total other comprehensive income (loss) 114 695 (276) 18 551 Noncontrolling interests - - - - - Balance, March 31, 2017, net of tax $ 540 $ 7,100 $ (2,905) $ (954) $ 3,781 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 credit - - - (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 * In cludes net unrealized gains attributable to businesses held for sale. The following table presents the other comprehensive income reclassification adjustments for the three -month periods ended March 31, 2017 and 2016 , 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, 2017 Unrealized change arising during period $ 190 $ 835 $ (304) $ 18 $ 739 Less: Reclassification adjustments included in net income 15 193 - (10) 198 Total other comprehensive income (loss), before income tax expense (benefit) 175 642 (304) 28 541 Less: Income tax expense (benefit) 61 (53) (28) 10 (10) Total other comprehensive income (loss), net of income tax expense (benefit) $ 114 $ 695 $ (276) $ 18 $ 551 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 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: Amount Reclassified from Accumulated Other Comprehensive Income Three Months Ended March 31, Affected Line Item in the (in millions) 2017 2016 Condensed Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized Investments $ 15 $ 75 Other realized capital gains Total 15 75 Unrealized appreciation (depreciation) of all other investments Investments 140 (413) Other realized capital gains Deferred policy acquisition costs adjustment 53 58 Amortization of deferred policy acquisition costs Future policy benefits - - Policyholder benefits and losses incurred Total 193 (355) Change in retirement plan liabilities adjustment Prior-service costs - 4 * Actuarial losses (10) (8) * Total (10) (4) Total reclassifications for the period $ 198 $ (284) * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 14 to the Condensed Consolidated Financial Statements. |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 3 Months Ended |
Mar. 31, 2017 | |
EARNINGS PER SHARE (EPS) | |
EARNINGS PER SHARE (EPS) | 13. Earnings Per Share (EPS) The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The d iluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits. The following table presents the compu tation of basic and diluted EPS: Three Months Ended March 31, (dollars in millions, except per share data) 2017 2016 Numerator for EPS: Income (loss) from continuing operations $ 1,211 $ (156) Less: Net income from continuing operations attributable to noncontrolling interests 26 (20) Income (loss) attributable to AIG common shareholders from continuing operations 1,185 (136) Loss from discontinued operations, net of income tax expense - (47) Net income (loss) attributable to AIG common shareholders $ 1,185 $ (183) Denominator for EPS: Weighted average shares outstanding — basic 980,777,243 1,156,548,459 Dilutive shares 24,537,787 - Weighted average shares outstanding — diluted (a) (b) 1,005,315,030 1,156,548,459 Income per common share attributable to AIG: Basic: Income (loss) from continuing operations $ 1.21 $ (0.12) Loss from discontinued operations $ - $ (0.04) Income (loss) attributable to AIG $ 1.21 $ (0.16) Diluted: Income (loss) from continuing operations $ 1.18 $ (0.12) Loss from discontinued operations $ - $ (0.04) Income (loss) attributable to AIG $ 1.18 $ (0.16) (a) Shares in the diluted EPS calculation represent basic shares for the three-month period ended March 31, 201 6 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 1.8 million and 0.6 mi llion for the three - month periods ended March 31, 2017 and 2016 , respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 3 Months Ended |
Mar. 31, 2017 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 14. Employee Benefits We sponsor various defined benefit pension plans, post-retirement medical and life insurance plans for eligible employees and retirees in the U.S. and certain non-U.S. countries. The following table presents the components of net periodic benefit cost 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, 2017 Components of net periodic benefit cost: Service cost $ 6 $ 8 $ 14 $ - $ 1 $ 1 Interest cost 43 4 47 2 1 3 Expected return on assets (64) (6) (70) - - - Amortization of net loss 7 3 10 - - - Net periodic benefit cost (credit) $ (8) $ 9 $ 1 $ 2 $ 2 $ 4 Three Months Ended March 31, 2016 Components of net periodic benefit 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 cost (credit) $ (17) $ 6 $ (11) $ - $ 2 $ 2 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2017 | |
INCOME TAXES | |
INCOME TAXES | 15. Income Taxes Interim Tax Calculation Method We use the estimated annual effective tax rate method in computing our interim tax provision. Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax 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, 2017 , the effective tax rate on income from contin uing operations was 29.9 percent . The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benef its associated with tax exempt inco me, recla ssifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities and excess tax deductions related to share based compensation payments recorded through the income statem ent in accordance with ASU 2016-09 , partially offset by tax charges related to the disposition of subsidiaries and non-deduc tible transfer pricing charges. For the three-month period ended March 31, 2016, the effective tax rate on loss from continuing oper ations 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 related interest associated with increases in un certain 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 tax issues under audit, reclassifications f rom 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 jurisdictions. Assessment of Deferred Tax Asset Valuation Allowance The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not t hat all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists , the more positive evidence is necessar y and the more difficult it is to support a conclusion that a valuation allowance is not needed. Our framework for assessing the recoverability of the deferred tax asset requires us to consider all available evidence, including: the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; the sustainability of recent operating profitability of our subsidiaries; the predictability of future operating profitability of the character necessary to realize the net deferre d tax asset; the carryforward period for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset. In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operating loss, c apital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though the carryforward pe riod for the foreign tax credit is shorter than for the net operating loss. Our U.S. federal consolidated income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can be offset by the n et 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 fore ign tax credit carryforwards. Accordingly, we utilize both the net operating loss and foreign tax credit carryforwards concurrently which enables us to realize our tax attributes prior to expiration. As of March 31, 2017 , based on all a vailable evidence, it is more likely than not that the U.S. net operating loss and foreign tax credit carryforwards will be utilized prior to expiration and, thus, no valuation allowance has been established. Estimates of future taxable income, including i ncome generated from prudent and feasible actions and tax planning strategies could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Such p otential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. For the three -month period ended March 31, 2017 , recent changes in market conditions, includ ing interest rate fluctuations, impacted the unrealized tax gains and losses in the U.S. Life Insurance Companies’ available for sale securities portfolio, resulting in a decrease to the net deferred tax asset related to net unrealized tax capital losses. As a result, for the three-month period ended March 31, 2017 , we released $ 254 m illion of valuation allowance associated with the unrealized tax losses in the U.S. Life Insurance Companies ’ available fo r sale securities portfolio , all of which was allocated to other comprehensive income. For the three-month period ended March 31, 2017 , recent changes in market conditions , including interest rate fluctuations , impacted the unrealized tax gains and losses in the non-life companies’ available for sale securities portfolio, resulting in a decrease to the net deferred tax asset related to net unrealized tax capital losses. As a result, we released $ 120 million of valuation allowance associated with the unrealized tax losses in the non-life companies’ available for sale securities portfolio, all of which was recognized in other comprehensive income. As of March 31, 2017 , based on all available evidence, we concluded that a valuation allowance of $ 354 million should remain on a portion of the deferred tax asset related to unrealized losses that are not more-likely-than-not to be realized. During the three-month period ended March 31, 2017 , we recognized a net de crease of $ 15 million in our deferred tax asset valuation allowance associated with certain f oreign jurisdictions, primarily attributable to current year activity. During the three-month period ended March 31, 2017 , our deferred tax asset valuation allowance associated wi th certain state jurisdictions remained unchanged. Tax Exa minations and Litigation On August 1, 2012, we filed a motion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions in the Southern District of New York. The Southern District of New York denied our summary judgment motion and upon AIG’s appeal, the U.S. Court of Appeals for the Second Circuit (the Second Circuit) affirmed the denial. AIG’s petition for certiorari to the U.S. Supreme Court from the decision of the Second Circuit w as denied on March 7, 2016. As a result, the case has been remanded back to the Southern District of New York for a jury trial. We will vigorously defend our position and continue to believe that we have adequate reserves for any liability that could resu lt from these government actions. We continue to monitor legal and other developments in this area, including recent decisions affecting other taxpayers, and evaluate their effect, if any, on our position. Accounting for Uncertainty in Income Taxes At both March 31, 2017 and December 31, 2016 , our unrecognized tax benefits, excluding interest and penalties were $ 4.5 billion. At both March 31, 2017 and December 31, 2016 , our unrecognized tax benefits related to tax positions that, if recognized, would not affect the effective tax rate because they relate to such factors as the timing, rather the permissibility, of the deduction were $ 0.1 billion. Accordingly, at both March 31, 2017 and December 31, 2016 , the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $ 4.4 billion. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At March 31, 2017 and December 31, 2016 , we had accrued liabilities of $ 1.3 billion and $ 1.2 billion , respectively, for the payment of interest (net of the federal benefit) and penalties. For the three -month periods ended March 31, 2017 and 2016 , we accrued expense (benefit) of $ 17 million and $ (51) million , respectively, for the payment of int erest and penalties . We regularly evaluate adjustments proposed by taxing authorities. At March 31, 2017 , such proposed adjustments would not have resulted in a material change to our consolidated financial condition, although it is possible that the effect could be material to our consolidated results of operations for an individual reporting period. Althou gh 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 m aterial to our consolidated financial condition. |
INFORMATION PROVIDED IN CONNECT
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 3 Months Ended |
Mar. 31, 2017 | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 16. Information Provided in Connection with Outstanding Debt The following Condensed Consolidating Financial Statements reflect the results of AIG L ife H oldings, Inc. (AIGLH) , a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH. Condensed Consolidating Balance Sheets American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG March 31, 2017 Assets: Short-term investments $ 2,714 $ - $ 12,907 $ (4,548) $ 11,073 Other investments (a) 7,032 - 297,400 - 304,432 Total investments 9,746 - 310,307 (4,548) 315,505 Cash 2 11 1,905 - 1,918 Loans to subsidiaries (b) 34,849 - 394 (35,243) - Investment in consolidated subsidiaries (b) 43,916 28,102 - (72,018) - Other assets, including deferred income taxes 21,824 630 158,303 (4,606) 176,151 Assets held for sale - - 6,588 - 6,588 Total assets $ 110,337 $ 28,743 $ 477,497 $ (116,415) $ 500,162 Liabilities: Insurance liabilities $ - $ - $ 274,967 $ - $ 274,967 Long-term debt 21,471 642 8,634 - 30,747 Other liabilities, including intercompany balances (a) 14,402 571 108,364 (9,327) 114,010 Loans from subsidiaries (b) 395 - 34,848 (35,243) - Liabilities held for sale - - 5,771 - 5,771 Total liabilities 36,268 1,213 432,584 (44,570) 425,495 Total AIG shareholders’ equity 74,069 27,530 44,315 (71,845) 74,069 Non-redeemable noncontrolling interests - - 598 - 598 Total equity 74,069 27,530 44,913 (71,845) 74,667 Total liabilities and equity $ 110,337 $ 28,743 $ 477,497 $ (116,415) $ 500,162 December 31, 2016 Assets: Short-term investments $ 4,424 $ - $ 13,218 $ (5,340) $ 12,302 Other investments (a) 7,154 - 308,719 - 315,873 Total investments 11,578 - 321,937 (5,340) 328,175 Cash 2 34 1,832 - 1,868 Loans to subsidiaries (b) 34,692 - 576 (35,268) - Investment in consolidated subsidiaries (b) 42,582 27,309 - (69,891) - Other assets, including deferred income taxes 24,099 239 140,743 (4,059) 161,022 Assets held for sale - - 7,199 - 7,199 Total assets $ 112,953 $ 27,582 $ 472,287 $ (114,558) $ 498,264 Liabilities: Insurance liabilities $ - $ - $ 275,120 $ - $ 275,120 Long-term debt 21,405 642 8,865 - 30,912 Other liabilities, including intercompany balances (a) 14,671 194 103,975 (9,572) 109,268 Loans from subsidiaries (b) 577 - 34,691 (35,268) - Liabilities held for sale - - 6,106 - 6,106 Total liabilities 36,653 836 428,757 (44,840) 421,406 Total AIG shareholders’ equity 76,300 26,746 42,972 (69,718) 76,300 Non-redeemable noncontrolling interests - - 558 - 558 Total equity 76,300 26,746 43,530 (69,718) 76,858 Total liabilities and equity $ 112,953 $ 27,582 $ 472,287 $ (114,558) $ 498,264 (a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment . (b) Eliminated in consolidation. Condensed Consolidating Statem ents of Income American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Three Months Ended March 31, 2017 Revenues: Equity in earnings of consolidated subsidiaries * $ 1,462 $ 600 $ - $ (2,062) $ - Other income 196 - 12,382 54 12,632 Total revenues 1,658 600 12,382 (2,008) 12,632 Expenses: Interest expense 242 12 46 (2) 298 Gain on extinguishment of debt - - (1) - (1) Other expenses 335 1 10,325 (53) 10,608 Total expenses 577 13 10,370 (55) 10,905 Income (loss) from continuing operations before income tax expense (benefit) 1,081 587 2,012 (1,953) 1,727 Income tax expense (benefit) (104) (4) 624 - 516 Income (loss) from continuing operations 1,185 591 1,388 (1,953) 1,211 Net income (loss) 1,185 591 1,388 (1,953) 1,211 Less: Net income (loss) from continuing operations attributable to noncontrolling interests - - 26 - 26 Net income (loss) attributable to AIG $ 1,185 $ 591 $ 1,362 $ (1,953) $ 1,185 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: Net income (loss) from continuing operations attributable to noncontrolling interests - - (20) - (20) Net income (loss) attributable to AIG $ (183) $ (1,693) $ (933) $ 2,626 $ (183) * 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, 2017 Net income (loss) $ 1,185 $ 591 $ 1,388 $ (1,953) $ 1,211 Other comprehensive income (loss) 551 4,660 51,030 (55,690) 551 Comprehensive income (loss) 1,736 5,251 52,418 (57,643) 1,762 Total comprehensive income attributable to noncontrolling interests - - 26 - 26 Comprehensive income (loss) attributable to AIG $ 1,736 $ 5,251 $ 52,392 $ (57,643) $ 1,736 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 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, 2017 Net cash (used in) provided by operating activities $ 651 $ (23) $ (10,938) $ (49) $ (10,359) Cash flows from investing activities: Sales of investments 2,699 - 26,492 (2,482) 26,709 Sales of divested businesses, net - - 24 - 24 Purchase of investments (890) - (14,769) 2,482 (13,177) Loans to subsidiaries - net (56) - 183 (127) - Contributions from (to) subsidiaries - net 206 - - (206) - Net change in restricted cash - - (22) - (22) Net change in short-term investments 1,470 - (220) - 1,250 Other, net (5) - (292) - (297) Net cash (used in) provided by investing activities 3,424 - 11,396 (333) 14,487 Cash flows from financing activities: Issuance of long-term debt - - 151 - 151 Repayments of long-term debt - - (602) - (602) Purchase of common stock (3,585) - - - (3,585) Intercompany loans - net (183) - 56 127 - Cash dividends paid (307) - (49) 49 (307) Other, net - - 89 206 295 Net cash (used in) provided by financing activities (4,075) - (355) 382 (4,048) Effect of exchange rate changes on cash - - (82) - (82) Change in cash - (23) 21 - (2) Cash at beginning of year 2 34 1,832 - 1,868 Change in cash of businesses held for sale - - 52 - 52 Cash at end of period $ 2 $ 11 $ 1,905 $ - $ 1,918 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 Supplementary Disclosu re 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 2017 period for: Interest: Third party $ (288) $ (23) $ (43) $ - $ (354) Intercompany - - - - - Taxes: Income tax authorities $ (14) $ - $ (54) $ - $ (68) Intercompany 1,090 - (1,090) - - 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) - - American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities: Three Months Ended March 31, (in millions) 2017 2016 Intercompany non-cash financing and investing activities: Capital contributions $ 198 $ 2,904 Dividends received in the form of securities 150 697 Fixed maturity securities received in exchange for equity securities - - |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2017 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 17. Subsequent Events Dividends Declared and Increase in Share Repurchase Authorization On May 3, 2017, our Board of Directors declared a cash dividend on AIG Common Stock of $ 0.32 per share, payable on June 28, 2017 to shareholders of record on June 14, 2017. On May 3, 2017 , our Board of Directors authorized an additional increase to its previous repurchase authorization of AIG Common Stock of $ 2.5 billion, resulting in an aggregate remaining authorization on such da te of approximately $3.8 billion. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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 tax operating pro fitability of the character necessary to realize the net deferred tax asset; liability for unpaid losses and loss adjustment expenses (loss reserves); reinsurance assets; valuation of future policy benefit liabilities and timing and extent of loss recognit ion; valuation of liabilities for guaranteed benefit features of variable annuity products; estimated gross profits to value deferred policy acquisition costs for investment-oriented products; impairment charges, including other-than-temporary impairments on available for sale securities, impairments on other invested assets, including investments in life settlements, and goodwill impairment; liability for legal contingencies; and fair value measurements of certain financial assets and liabilities. These ac counting 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 an d cash flows could be materially affected. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Held-for-Sale Classification | Held-For-Sale Classification We report a business as held-for-sale when management has approved the sale or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A business classified as held-for-sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the bus iness exceeds its estimated fair value, a loss is recognized. Assets and liabilities related to the businesses classified as held-for-sale are separately reported in our Consolidated Balance Sheets beginning in the period in which the business is classifi ed as held-for-sale. |
Future Application of Accounting Standards | Future Application of Accounting Standards Revenue Recognition In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, fi nancial 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 on January 1, 2018 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is permitted as of January 1, 2017, including interim periods. We are currently evaluating the impact to our revenue sources that are in scope of the standa rd. However, as the majority of our revenue sources are not in scope of the standard, we do not expect the adoption of the standard to have a material effect on our reported 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 will require equity investments that do not follow the equity method of accounting or are not subject to consolidation to be measure d at fair value with changes in fair value recognized in earnings, while financial liabilities for which fair value option accounting has been elected, changes in fair value due to instrument-specific credit risk will be presented separately in other compr ehensive income. The standard allows the election to record equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes with changes in the carrying value of the equity investments recorded in earnings. The standard also updates certain fair value disclosure requirements for financial instruments carried at amortized cost. The standard is effective on January 1, 2018, with early adoption of certain provisions permitted. We are asses sing the impact of the standard on our reported 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 rec ognize a right of use asset and a corresponding lease liability on their balance sheets. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. The standard is effectiv e on January 1, 2019, with early adoption permitted using a modified retrospective approach. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. We are currently quantifying th e expected gross up of our balance sheet for a right to use asset and a lease liability as required by the standard. Financial Instruments - Credit Losses In June 2016, the FASB issued an accounting standard that will change how entities account for credit losses for most financial assets, trade receivables and reinsurance receivables. The standard will replace the existing incurred loss impairment model wi th a new “current expected credit loss model” and will apply to financial assets subject to credit losses, those trade receivables measured at amortized cost, reinsurance receivables and certain off-balance sheet credit exposures. The impairment for avail able-for-sale debt securities, including purchase credit deteriorated securities, will be measured in a similar manner, except that losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard will a lso require additional information to be disclosed in the footnotes. The standard is effective on January 1, 2020, with early adoption permitted on January 1, 2019. We are assessing the impact of the standard on our reported consolidated financial conditi on, results of operations and cash flows, but we expect an increase in our allowances for credit losses. The amount of the increase will be impacted by our portfolio composition and quality at the adoption date as well as economic conditions and forecasts at that time. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an accounting standard that addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash fl ows. The amendments provide clarity on the treatment of eight specifically defined types of cash inflows and outflows. The standard is effective on January 1, 2018, with early adoption permitted as long as all amendments are included in the same period. T he standard addresses presentation in the statement of cash flows only and will have no effect on our reported consolidated financial condition or results of operations. Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued an accounting standard that will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset is sold to a third party. The standard is effect ive on January 1, 2018, with early adoption permitted. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. Restricted Cash In November 2016, the FASB issued an accounting standard that provides guidance on the presentation of restricted cash in the Statement of Cash Flows. Entities will be required to explain the changes during a reporting period in the total of cash, cash equivalents, and amounts generally described as re stricted cash or restricted cash equivalents in the statement of cash flows. The standard is effective on January 1, 2018, with early adoption permitted. The standard addresses presentation of restricted cash in the Statement of Cash Flows only and will have no effect on our reported consolidated financial condition or results of operations. Clarifying the Definition of a Business In January 2017, the FASB issued an accounting standard that changes the definition of a business to assist entities with eval uating when a set of transferred assets and activities is a business. The new standard will require an entity to evaluate if substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar assets; if so, the set of transferred assets and activities is not a business. At a minimum, a set must include an input and a substantive process that together significantly contribute to the ability to create output. The standard i s effective on January 1, 2018, with early adoption permitted. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. Because the standard requires prospective adoption, the imp act is dependent on future acquisitions, dispositions and those entities that we consolidate due to obtaining a controlling financial interest. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued an accounting standard that elimi nates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value not to exceed th e total amount of goodwill allocated to that reporting unit. An entity should also consider income tax effects from tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The sta ndard is effective on January 1, 2020 with early adoption permitted on testing dates after January 1, 2017. We are currently reviewing the standard and assessing the impact of the standard on our reported consolidated financial condition, results of opera tions and cash flows. Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued an accounting standard that clarifies the scope and application of Other Income-Gains and Losses from the Derecognition of Nonfinancial A ssets, to the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. The standard clarifies that a parent transferring its ownership interest in a consolidated subsidiary is within the scope o f the accounting standard if substantially all of the fair value of the assets within that subsidiary are nonfinancial assets. The standard also clarifies that the derecognition of all businesses and nonprofit activities should be accounted for in accordan ce with the derecognition and deconsolidation guidance. The standard also eliminates the exception in the financial asset guidance for transfers of investments (including equity method investments) in real estate entities. An entity is required to apply th e amendments in this update at the same time that it applies the amendments in revenues from contracts with customers. The standard is effective on January 1, 2018 and may be applied retrospectively to each period presented or through a cumulative effect adjustment to retained earnings at the date of adoption (modified retrospective approach). Early adoption is permitted as of January 1, 2017, including interim periods. We are currently reviewing the standard and assessing the impact of the standard on o ur reported consolidated financial condition, results of operations and cash flows. Improving the Presentation of Net Periodic Pension and Postretirement Benefit Cost In March 2017, the FASB issued an accounting standard that requires entities to report the service cost component of net periodic pension and postretirement benefit costs in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit costs are required to be separately presen ted in the income statement . The amendments also allow only the service cost component to be eligible for capitali zation when applicable. The standard is effective on January 1, 2018, with early adoption permitt ed. The amendments should be applied retrospectively for the presentation of the service cost and othe r components, and prospectively for the capitalization of the service cost component. The standard addresses presentation of net periodic benefit costs i n the income statement and will have no effect on our reported consolidated financial condition, resu lts of operations or cash flows. Premium A mortization on Purchased Callable Debt Securities In March 2017, the FASB issued an accounting standard that shor tens the amortization period for certain callable debt securities held at a premium. Specifically, the standard requires the premium to be amortized to the earliest call date. The standard does not require an accounting change for securities held at a di scount; the discount continues to be amortized to maturity. The standard is effective January 1, 2018, with early adoption permitted as of January 1, 2017, including for interim periods. We are currently reviewing the standard and assessing the impact of the standard on our reported 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 2017 Derivative Contract Novations In March 2016, the Financial Accounting Standards Board (FASB) issued an accounting standard that clarifies that a change in the counterparty (novation) to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We adopted the standard on its required effective date of January 1, 2017. The adoption of this standard did not have a material effect on our consolidated financial condition, results of opera tions or cash flows. Contingent Put and Call Options in Debt Instruments In March 2016, the FASB issued an accounting standard that clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The standard requires an evaluation of embedded call (put) options solely on a four-step decision sequence that requires an entity to consider whether (1) the amount paid upon settlem ent is adjusted based on changes in an index, (2) the amount paid upon settlement is indexed to an underlying other than interest rates or credit risk, (3) the debt involves a substantial premium or discount and (4) the put or call option is contingently e xercisable. We adopted the standard on its required effective date of January 1, 2017. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued an accounting standard that eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods during which the investment had been held. We adopt ed the standard on its required effective date of January 1, 2017. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Interest Held through Related Parties that are und er Common Control In October 2016, the FASB issued an accounting standard that amends the consolidation analysis for a reporting entity that is the single decision maker of a variable interest entity (VIE). The new guidance will require the decision maker ’s evaluation of its interests held through related parties that are under common control on a proportionate basis (rather than in their entirety) when determining whether it is the primary beneficiary of that VIE. The amendment does not change the charac teristics of a primary beneficiary. We adopted the standard on its required effective date of January 1, 2017. 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, 2017 | |
SEGMENT INFORMATION | |
Schedule of continuing operations by reportable segment | Three Months Ended March 31, 2017 2016 Pre-Tax Pre-Tax Total Operating Total Operating (in millions) Revenues Income (Loss) Revenues Income (Loss) Commercial Insurance Liability and Financial Lines $ 2,848 $ 574 $ 3,311 $ 569 Property and Special Risks 1,835 275 1,987 93 Total Commercial Insurance 4,683 849 5,298 662 Consumer Insurance Individual Retirement 1,373 539 1,493 302 Group Retirement 718 243 629 191 Life Insurance 1,013 54 953 1 Personal Insurance 2,838 212 2,816 210 Total Consumer Insurance 5,942 1,048 5,891 704 Other Operations 1,090 (246) 998 (239) Legacy Portfolio 1,084 342 681 (202) AIG Consolidation and elimination (64) 48 (131) 20 Total AIG Consolidated revenues and pre-tax operating income 12,735 2,041 12,737 945 Reconciling Items from revenues and pre-tax operating income to revenues and pre-tax income (loss): Changes in fair value of securities used to hedge guaranteed living benefits 11 11 133 133 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - 53 - 40 (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - (14) - 7 Gain (Loss) on extinguishment of debt - 1 - (83) Net realized capital losses (115) (115) (1,106) (1,106) Loss from divested businesses - (100) - (2) Non-operating litigation reserves and settlements 10 6 34 31 Net loss reserve discount benefit (charge) - 25 - 9 Restructuring and other costs - (181) - (188) Other (9) - (19) - Revenues and Pre-tax income (loss) $ 12,632 $ 1,727 $ 11,779 $ (214) |
HELD-FOR-SALE CLASSIFICATION (T
HELD-FOR-SALE CLASSIFICATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
HELD-FOR-SALE CLASSIFICATION | |
Summary of assets and liabilities held for sale | The following table summarizes the components of assets and liabilities held-for-sale on the Condensed Consolidated Balance Sheets at March 31, 2017 and December 31, 2016: March 31, December 31, (in millions) 2017 2016 Assets: Fixed maturity securities $ 5,438 $ 6,045 Equity securities 14 149 Mortgage and other loans receivable, net 121 137 Other invested assets 244 2 Short-term investments 181 130 Cash 81 133 Accrued investment income 22 21 Premiums and other receivables, net of allowance 393 351 Reinsurance assets, net of allowance 13 8 Deferred policy acquisition costs 422 471 Other assets 264 273 Assets of businesses held for sale 7,193 7,720 Less: Loss Accrual (605) (521) Total assets held for sale $ 6,588 $ 7,199 Liabilities: Liability for unpaid losses and loss adjustment expenses $ 489 $ 402 Unearned premiums 333 297 Future policy benefits for life and accident and health insurance contracts 4,140 4,579 Other policyholder funds 327 378 Long-term debt 108 - Other liabilities 374 450 Total liabilities held for sale $ 5,771 $ 6,106 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
FAIR VALUE MEASUREMENTS | |
Assets and liabilities measured at fair value on a recurring basis | March 31, 2017 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 $ 51 $ 2,311 $ - $ - $ - $ 2,362 Obligations of states, municipalities and political subdivisions - 17,662 2,041 - - 19,703 Non-U.S. governments 183 14,108 16 - - 14,307 Corporate debt - 128,251 1,079 - - 129,330 RMBS - 18,800 16,487 - - 35,287 CMBS - 12,606 1,003 - - 13,609 CDO/ABS - 8,345 7,755 - - 16,100 Total bonds available for sale 234 202,083 28,381 - - 230,698 Other bond securities: U.S. government and government sponsored entities - 2,931 - - - 2,931 Non-U.S. governments - 50 - - - 50 Corporate debt - 1,755 18 - - 1,773 RMBS - 469 1,502 - - 1,971 CMBS - 471 65 - - 536 CDO/ABS - 836 5,508 - - 6,344 Total other bond securities - 6,512 7,093 - - 13,605 Equity securities available for sale: Common stock 978 - 8 - - 986 Preferred stock 825 - - - - 825 Mutual funds 286 2 - - - 288 Total equity securities available for sale 2,089 2 8 - - 2,099 Other equity securities 500 - - - - 500 Mortgage and other loans receivable - - 11 - - 11 Other invested assets (a) - 404 180 - - 584 Derivative assets: Interest rate contracts - 2,349 - - - 2,349 Foreign exchange contracts - 1,111 - - - 1,111 Equity contracts 274 111 62 - - 447 Credit contracts - - 2 - - 2 Other contracts - 4 17 - - 21 Counterparty netting and cash collateral - - - (1,269) (1,414) (2,683) Total derivative assets 274 3,575 81 (1,269) (1,414) 1,247 Short-term investments 2,110 343 - - - 2,453 Separate account assets 80,323 5,594 - - - 85,917 Total $ 85,530 $ 218,513 $ 35,754 $ (1,269) $ (1,414) $ 337,114 Liabilities: Policyholder contract deposits $ - $ 25 $ 3,072 $ - $ - $ 3,097 Other policyholder funds 5 - - - - 5 Derivative liabilities: Interest rate contracts 2 2,481 32 - - 2,515 Foreign exchange contracts - 1,099 6 - - 1,105 Equity contracts 38 10 - - - 48 Credit contracts - - 317 - - 317 Other contracts - - 6 - - 6 Counterparty netting and cash collateral - - - (1,269) (1,461) (2,730) Total derivative liabilities 40 3,590 361 (1,269) (1,461) 1,261 Long-term debt - 3,093 58 - - 3,151 Total $ 45 $ 6,708 $ 3,491 $ (1,269) $ (1,461) $ 7,514 December 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 $ 63 $ 1,929 $ - $ - $ - $ 1,992 Obligations of states, municipalities and political subdivisions - 22,732 2,040 - - 24,772 Non-U.S. governments 52 14,466 17 - - 14,535 Corporate debt - 131,047 1,133 - - 132,180 RMBS - 20,468 16,906 - - 37,374 CMBS - 12,231 2,040 - - 14,271 CDO/ABS - 8,578 7,835 - - 16,413 Total bonds available for sale 115 211,451 29,971 - - 241,537 Other bond securities: U.S. government and government sponsored entities - 2,939 - - - 2,939 Non-U.S. governments - 51 - - - 51 Corporate debt - 1,755 17 - - 1,772 RMBS - 420 1,605 - - 2,025 CMBS - 448 155 - - 603 CDO/ABS - 905 5,703 - - 6,608 Total other bond securities - 6,518 7,480 - - 13,998 Equity securities available for sale: Common stock 1,056 9 - - - 1,065 Preferred stock 752 - - - - 752 Mutual funds 260 1 - - - 261 Total equity securities available for sale 2,068 10 - - - 2,078 Other equity securities 482 - - - - 482 Mortgage and other loans receivable - - 11 - - 11 Other invested assets (a) - 1 204 - - 205 Derivative assets: Interest rate contracts - 2,328 - - - 2,328 Foreign exchange contracts - 1,320 - - - 1,320 Equity contracts 188 59 58 - - 305 Credit contracts - - 2 - - 2 Other contracts - 6 16 - - 22 Counterparty netting and cash collateral - - - (1,265) (903) (2,168) Total derivative assets 188 3,713 76 (1,265) (903) 1,809 Short-term investments 2,660 681 - - - 3,341 Separate account assets 77,318 5,654 - - - 82,972 Total $ 82,831 $ 228,028 $ 37,742 $ (1,265) $ (903) $ 346,433 Liabilities: Policyholder contract deposits $ - $ 25 $ 3,033 $ - $ - $ 3,058 Other policyholder funds 5 - - - - 5 Derivative liabilities: Interest rate contracts - 3,039 38 - - 3,077 Foreign exchange contracts - 1,358 11 - - 1,369 Equity contracts 12 7 - - - 19 Credit contracts - - 331 - - 331 Other contracts - 1 5 - - 6 Counterparty netting and cash collateral - - - (1,265) (1,521) (2,786) Total derivative liabilities 12 4,405 385 (1,265) (1,521) 2,016 Long-term debt - 3,357 71 - - 3,428 Total $ 17 $ 7,787 $ 3,489 $ (1,265) $ (1,521) $ 8,507 (a) Excludes investments that are meas ured at fair value using the net asset v alue (NAV) per share (or its equivalent), which totaled $ 6.5 billion and $ 6.7 billion as of March 31, 2017 and December 31, 2016 , respectively. (b) Represents netting of derivative exposures covered by qualifying master netting agreements. |
Changes in Level 3 recurring fair value measurements (Assets) | Net Changes in Realized and Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value Gains (Losses) Other Issues and Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale of Period at End of Period Three Months Ended March 31, 2017 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,040 $ 2 $ (4) $ 21 $ - $ (18) $ - $ - $ 2,041 $ - Non-U.S. governments 17 - - (1) - - - - 16 - Corporate debt 1,133 (4) (3) (13) 136 (170) - - 1,079 - RMBS 16,906 289 151 (858) 8 (9) - - 16,487 - CMBS 2,040 5 5 (348) - (699) - - 1,003 - CDO/ABS 7,835 6 48 (102) - (32) - - 7,755 - Total bonds available for sale 29,971 298 197 (1,301) 144 (928) - - 28,381 - Other bond securities: Corporate debt 17 1 - - - - - - 18 1 RMBS 1,605 55 - (125) - (33) - - 1,502 24 CMBS 155 - - (17) - (73) - - 65 1 CDO/ABS 5,703 173 - (368) - - - - 5,508 70 Total other bond securities 7,480 229 - (510) - (106) - - 7,093 96 Equity securities available for sale: Common stock - - - 8 - - - - 8 - Total equity securities available for sale - - - 8 - - - - 8 - Mortgage and other loans receivable 11 - - - - - - - 11 - Other invested assets 204 (1) (5) (17) - (1) - - 180 - Total $ 37,666 $ 526 $ 192 $ (1,820) $ 144 $ (1,035) $ - $ - $ 35,673 $ 96 Net Changes in Realized and Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value (Gains) Losses Other Issues and Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale of Period at End of Liabilities: Policyholder contract deposits $ 3,033 $ (45) $ - $ 84 $ - $ - $ - $ - $ 3,072 $ (5) Derivative liabilities, net: Interest rate contracts 38 (3) - (3) - - - - 32 3 Foreign exchange contracts 11 - - (5) - - - - 6 - Equity contracts (58) (11) - 7 - - - - (62) 5 Commodity contracts - - - - - - - - - - Credit contracts 329 (15) - 1 - - - - 315 11 Other contracts (11) (19) - 19 - - - - (11) (1) Total derivative liabilities, net (a) 309 (48) - 19 - - - - 280 18 Long-term debt (b) 71 12 - (25) - - - - 58 (2) Total $ 3,413 $ (81) $ - $ 78 $ - $ - $ - $ - $ 3,410 $ 11 Net Changes in Realized and Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value Gains (Losses) Other Issues and Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale 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 Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value (Gains) Losses Other Issues and Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale of Period at End of 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) (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 Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value Gains (Losses) Other Issues and Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale of Period at End of Period Three Months Ended March 31, 2017 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,040 $ 2 $ (4) $ 21 $ - $ (18) $ - $ - $ 2,041 $ - Non-U.S. governments 17 - - (1) - - - - 16 - Corporate debt 1,133 (4) (3) (13) 136 (170) - - 1,079 - RMBS 16,906 289 151 (858) 8 (9) - - 16,487 - CMBS 2,040 5 5 (348) - (699) - - 1,003 - CDO/ABS 7,835 6 48 (102) - (32) - - 7,755 - Total bonds available for sale 29,971 298 197 (1,301) 144 (928) - - 28,381 - Other bond securities: Corporate debt 17 1 - - - - - - 18 1 RMBS 1,605 55 - (125) - (33) - - 1,502 24 CMBS 155 - - (17) - (73) - - 65 1 CDO/ABS 5,703 173 - (368) - - - - 5,508 70 Total other bond securities 7,480 229 - (510) - (106) - - 7,093 96 Equity securities available for sale: Common stock - - - 8 - - - - 8 - Total equity securities available for sale - - - 8 - - - - 8 - Mortgage and other loans receivable 11 - - - - - - - 11 - Other invested assets 204 (1) (5) (17) - (1) - - 180 - Total $ 37,666 $ 526 $ 192 $ (1,820) $ 144 $ (1,035) $ - $ - $ 35,673 $ 96 Net Changes in Realized and Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value (Gains) Losses Other Issues and Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale of Period at End of Liabilities: Policyholder contract deposits $ 3,033 $ (45) $ - $ 84 $ - $ - $ - $ - $ 3,072 $ (5) Derivative liabilities, net: Interest rate contracts 38 (3) - (3) - - - - 32 3 Foreign exchange contracts 11 - - (5) - - - - 6 - Equity contracts (58) (11) - 7 - - - - (62) 5 Commodity contracts - - - - - - - - - - Credit contracts 329 (15) - 1 - - - - 315 11 Other contracts (11) (19) - 19 - - - - (11) (1) Total derivative liabilities, net (a) 309 (48) - 19 - - - - 280 18 Long-term debt (b) 71 12 - (25) - - - - 58 (2) Total $ 3,413 $ (81) $ - $ 78 $ - $ - $ - $ - $ 3,410 $ 11 Net Changes in Realized and Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value Gains (Losses) Other Issues and Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale 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 Purchases, Unrealized Gains Unrealized Sales, Reclassified (Losses) Included Fair Value (Gains) Losses Other Issues and Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Settlements, Transfers Transfers Divested Held for End Instruments Held (in millions) of Period in Income Income (Loss) Net in out Businesses Sale of Period at End of 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) (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, 2017 Bonds available for sale $ 298 $ - $ - $ 298 Other bond securities 75 6 148 229 Other equity securities - - - - Other invested assets - (3) 2 (1) 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 Net Net Realized Investment Capital Other (in millions) Income (Gains) Losses Income Total Three Months Ended March 31, 2017 Policyholder contract deposits - (45) - (45) Derivative liabilities, net - (7) (41) (48) Long-term debt - - 12 12 Three Months Ended March 31, 2016 Policyholder contract deposits - 845 - 845 Derivative liabilities, net - 4 53 57 Long-term debt - - 2 2 |
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, 2017 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 37 $ (5) $ (11) $ 21 Non-U.S. governments - (1) - (1) Corporate debt - - (13) (13) RMBS 339 (244) (953) (858) CMBS 39 (67) (320) (348) CDO/ABS 13 - (115) (102) Total bonds available for sale 428 (317) (1,412) (1,301) Other bond securities: RMBS 98 (167) (56) (125) CMBS - (11) (6) (17) CDO/ABS - - (368) (368) Total other bond securities 98 (178) (430) (510) Equity securities available for sale 8 - - 8 Other invested assets 1 - (18) (17) Total assets $ 535 $ (495) $ (1,860) $ (1,820) Liabilities: Policyholder contract deposits $ - $ 70 $ 14 $ 84 Derivative liabilities, net - - 19 19 Long-term debt (b) - - (25) (25) Total liabilities $ - $ 70 $ 8 $ 78 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) Other equity securities 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 (a) There were no issuances during the three -month period s ended March 31, 2017 and 2016 , 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) 2017 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,263 Discounted cash flow Yield 3.97% - 5.06% (4.51%) Corporate debt 536 Discounted cash flow Yield 3.16% - 6.10% (4.63%) RMBS (a) 16,780 Discounted cash flow Constant prepayment rate 1.81% - 9.65% (5.73%) Loss severity 48.00% - 80.38% (64.19%) Constant default rate 3.20% - 8.38% (5.79%) Yield 3.17% - 5.73% (4.45%) CDO/ABS (a) 4,699 Discounted cash flow Yield 3.38% - 5.68% (4.53%) CMBS 615 Discounted cash flow Yield 2.32% - 8.45% (5.38%) Liabilities: Embedded derivatives within Policyholder contract deposits: Guaranteed minimum withdrawal benefits (GMWB) 1,671 Discounted cash flow Equity volatility 8.00% - 50.00% Base lapse rate 0.50% - 20.00% Dynamic lapse multiplier 30.00% - 170.00% Mortality multiplier (c) 42.00% - 161.00% Utilization 100.00% Equity / interest-rate correlation 20.00% - 40.00% Index Annuities 964 Discounted cash flow Lapse rate 1.00% - 66.00% Mortality multiplier (c) 101.00% - 103.00% Indexed Life 414 Discounted cash flow Base lapse rate 2.00% to 19.00% Mortality rate 0.00% to 40.00% Fair Value at December 31, Valuation Range (in millions) 2016 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,248 Discounted cash flow Yield 4.12% - 4.91% (4.52%) Corporate debt 498 Discounted cash flow Yield 3.41% - 6.38% (4.90%) RMBS (a) 17,412 Discounted cash flow Constant prepayment rate 3.95% - 6.54% (5.25%) Loss severity 47.51% - 80.98% (64.24%) Constant default rate 3.28% - 8.64% (5.96%) Yield 3.28% - 5.87% (4.57%) CDO/ABS (a) 4,368 Discounted cash flow Yield 3.67% - 5.85% (4.76%) CMBS 1,511 Discounted cash flow Yield 0.48% - 10.21% (5.34%) Liabilities: Embedded derivatives within Policyholder contract deposits: GMWB 1,777 Discounted cash flow Equity volatility 13.00% - 50.00% Base lapse rate 0.50% - 20.00% Dynamic lapse multiplier 30.00% - 170.00% Mortality multiplier (c) 42.00% - 161.00% Utilization 100.00% Equity / interest-rate correlation 20.00% - 40.00% Index Annuities 859 Discounted cash flow Lapse rate 1.00% - 66.00% Mortality multiplier (c) 101.00% - 103.00% Indexed Life 381 Discounted cash flow Base lapse rate 2.00% - 19.00% Mortality rate 0.00% - 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 input s are shown as multipliers of the 2012 Individual Annuity Mortality Basic table for GMWB , and the 1975-1980 Modified Basic Table for in dex annuities. |
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share | March 31, 2017 December 31, 2016 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 $ 1,355 $ 751 $ 1,424 $ 750 Real Estate / Infrastructure Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities 248 196 258 208 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 126 36 137 31 Distressed Securities of companies that are in default, under bankruptcy protection, or troubled 123 43 123 44 Other Includes multi-strategy, mezzanine and other strategies 343 265 312 215 Total private equity funds 2,195 1,291 2,254 1,248 Hedge funds: Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 1,406 8 1,453 9 Long-short Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk 1,391 - 1,429 - Macro Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions 996 - 992 - Distressed Securities of companies that are in default, under bankruptcy protection or troubled 324 7 416 8 Emerging markets Investments in the financial markets of developing countries - - - - Other Includes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments 198 14 197 14 Total hedge funds 4,315 29 4,487 31 Total $ 6,510 $ 1,320 $ 6,741 $ 1,279 |
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) 2017 2016 Assets: Bond and equity securities $ 349 $ 50 Alternative investments (a) 181 (247) Other, including Short-term investments - - Liabilities: Long-term debt (b) (15) (176) Other liabilities - - Total gain (loss) $ 515 $ (373) (a) Includ es 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, 2017 December 31, 2016 Outstanding Outstanding (in millions) Fair Value Principal Amount Difference Fair Value Principal Amount Difference Assets: Mortgage and other loans receivable $ 11 $ 7 $ 4 $ 11 $ 8 $ 3 Liabilities: Long-term debt * $ 3,151 $ 2,370 $ 781 $ 3,428 $ 2,628 $ 800 * Includes GIAs, notes, bond s, 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 2017 2016 March 31, 2017 Other investments $ - $ - $ 14 $ 14 $ 17 $ 2 Investments in life settlements - - 167 167 41 157 Other assets * - - - - 35 - Total $ - $ - $ 181 $ 181 $ 93 $ 159 December 31, 2016 Other investments $ - $ - $ 364 $ 364 Investments in life settlements - - 736 736 Other assets - - 2 2 Total $ - $ - $ 1,102 $ 1,102 * Impairments in 2017 included $35 million related to assets of $179 million that were reclassified to assets held for sale. |
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, 2017 Assets: Mortgage and other loans receivable $ - $ 160 $ 34,206 $ 34,366 $ 33,867 Other invested assets - 617 1,716 2,333 2,732 Short-term investments - 8,620 - 8,620 8,620 Cash 1,918 - - 1,918 1,918 Liabilities: Policyholder contract deposits associated with investment-type contracts - 350 121,989 122,339 113,278 Other liabilities - 4,262 - 4,262 4,262 Long-term debt - 22,891 3,423 26,314 27,596 December 31, 2016 Assets: Mortgage and other loans receivable $ - $ 161 $ 33,575 $ 33,736 $ 33,229 Other invested assets - 955 2,053 3,008 3,474 Short-term investments - 8,961 - 8,961 8,961 Cash 1,868 - - 1,868 1,868 Liabilities: Policyholder contract deposits associated with investment-type contracts - 382 121,742 122,124 112,705 Other liabilities - 4,196 - 4,196 4,196 Long-term debt - 23,117 3,333 26,450 27,484 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 Bonds available for sale: U.S. government and government sponsored entities $ 2,236 $ 149 $ (23) $ 2,362 $ - Obligations of states, municipalities and political subdivisions 18,877 967 (141) 19,703 - Non-U.S. governments 13,688 757 (138) 14,307 - Corporate debt 123,469 7,290 (1,429) 129,330 2 Mortgage-backed, asset-backed and collateralized: RMBS 33,042 2,648 (403) 35,287 1,317 CMBS 13,374 392 (157) 13,609 53 CDO/ABS 15,943 305 (148) 16,100 35 Total mortgage-backed, asset-backed and collateralized 62,359 3,345 (708) 64,996 1,405 Total bonds available for sale (b) 220,629 12,508 (2,439) 230,698 1,407 Equity securities available for sale: Common stock 605 386 (5) 986 - Preferred stock 749 76 - 825 - Mutual funds 250 39 (1) 288 - Total equity securities available for sale 1,604 501 (6) 2,099 - Total $ 222,233 $ 13,009 $ (2,445) $ 232,797 $ 1,407 December 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 1,870 $ 148 $ (26) $ 1,992 $ - Obligations of states, municipalities and political subdivisions 24,025 1,001 (254) 24,772 - Non-U.S. governments 14,018 773 (256) 14,535 - Corporate debt 126,648 7,271 (1,739) 132,180 (31) Mortgage-backed, asset-backed and collateralized: RMBS 35,311 2,541 (478) 37,374 1,212 CMBS 14,054 409 (192) 14,271 45 CDO/ABS 16,315 278 (180) 16,413 39 Total mortgage-backed, asset-backed and collateralized 65,680 3,228 (850) 68,058 1,296 Total bonds available for sale (b) 232,241 12,421 (3,125) 241,537 1,265 Equity securities available for sale: Common stock 708 369 (12) 1,065 - Preferred stock 748 4 - 752 - Mutual funds 241 23 (3) 261 - Total equity securities available for sale 1,697 396 (15) 2,078 - Total $ 233,938 $ 12,817 $ (3,140) $ 243,615 $ 1,265 (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, 2017 and December 31, 2016 , bonds available for sale held by us that were below investment grade or not rated totaled $ 32.8 billion and $ 33.6 billion, respectively. |
The fair value and gross unrealized losses on AIG's available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (in millions) Value Losses Value Losses Value Losses March 31, 2017 Bonds available for sale: U.S. government and government sponsored entities $ 892 $ 23 $ - $ - $ 892 $ 23 Obligations of states, municipalities and political subdivisions 3,115 111 239 30 3,354 141 Non-U.S. governments 2,983 68 463 70 3,446 138 Corporate debt 24,721 865 4,832 564 29,553 1,429 RMBS 7,752 232 3,363 171 11,115 403 CMBS 4,248 136 333 21 4,581 157 CDO/ABS 3,467 67 1,593 81 5,060 148 Total bonds available for sale 47,178 1,502 10,823 937 58,001 2,439 Equity securities available for sale: Common stock 56 4 17 1 73 5 Mutual funds 2 - 3 1 5 1 Total equity securities available for sale 58 4 20 2 78 6 Total $ 47,236 $ 1,506 $ 10,843 $ 939 $ 58,079 $ 2,445 December 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 720 $ 26 $ - $ - $ 720 $ 26 Obligations of states, municipalities and political subdivisions 5,814 221 231 33 6,045 254 Non-U.S. governments 3,865 162 489 94 4,354 256 Corporate debt 28,184 1,013 6,080 726 34,264 1,739 RMBS 8,794 252 4,045 226 12,839 478 CMBS 4,469 152 479 40 4,948 192 CDO/ABS 5,362 102 1,961 78 7,323 180 Total bonds available for sale 57,208 1,928 13,285 1,197 70,493 3,125 Equity securities available for sale: Common stock 125 12 - - 125 12 Mutual funds 64 3 - - 64 3 Total equity securities available for sale 189 15 - - 189 15 Total $ 57,397 $ 1,943 $ 13,285 $ 1,197 $ 70,682 $ 3,140 |
The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity | Total Fixed Maturity Securities Fixed Maturity Securities in a Loss Available for Sale Position Available for Sale (in millions) Amortized Cost Fair Value Amortized Cost Fair Value March 31, 2017 Due in one year or less $ 7,064 $ 7,266 $ 572 $ 566 Due after one year through five years 47,682 50,305 5,132 5,016 Due after five years through ten years 41,861 42,976 12,546 12,036 Due after ten years 61,663 65,155 20,726 19,627 Mortgage-backed, asset-backed and collateralized 62,359 64,996 21,464 20,756 Total $ 220,629 $ 230,698 $ 60,440 $ 58,001 December 31, 2016 Due in one year or less $ 7,796 $ 7,994 $ 604 $ 581 Due after one year through five years 49,200 51,958 6,002 5,841 Due after five years through ten years 43,308 44,226 16,045 15,332 Due after ten years 66,257 69,301 25,007 23,629 Mortgage-backed, asset-backed and collateralized 65,680 68,058 25,960 25,110 Total $ 232,241 $ 241,537 $ 73,618 $ 70,493 |
The gross realized gains and gross realized losses from sales of AIG's available for sale securities | 2017 2016 Gross Gross Gross Gross Three Months Ended March 31, Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Fixed maturity securities $ 333 $ 178 $ 187 $ 549 Equity securities 17 16 32 8 Total $ 350 $ 194 $ 219 $ 557 |
The fair value of AIG's other securities | March 31, 2017 December 31, 2016 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 2,931 21 % $ 2,939 20 % Obligations of states, municipalities and political subdivisions - - - - Non-U.S. governments 50 - 51 - Corporate debt 1,773 12 1,772 12 Mortgage-backed, asset-backed and collateralized : RMBS 1,971 14 2,025 14 CMBS 536 4 603 4 CDO/ABS and other collateralized * 6,344 45 6,608 47 Total mortgage-backed, asset-backed and collateralized 8,851 63 9,236 65 Total fixed maturity securities 13,605 96 13,998 97 Equity securities 500 4 482 3 Total $ 14,105 100 % $ 14,480 100 % * Includes $ 353 million and $ 421 million of U.S. g overnment agency-backed ABS at March 31, 2017 and December 31, 2016 , respectively. |
Components of other invested assets | March 31, December 31, (in millions) 2017 2016 Alternative investments (a) (b) $ 12,712 $ 13,379 Investment real estate (c) 7,057 6,900 Aircraft asset investments (d) 281 321 Investments in life settlements 2,105 2,516 All other investments 1,497 1,422 Total $ 23,652 $ 24,538 (a) At March 31, 2017 , includes hedge funds of $ 6.9 billion, private equity funds of $ 5.2 billion, and affordable housing partnerships of $ 578 million. At December 31, 2016 , includes hedge funds of $ 7.2 billion, private equity funds of $ 5.5 billion, and affordable housing partnerships of $ 625 million. (b) Approximately 64 percent and 21 percent of our hedge fund portfolio is available for redemption in 2017 and 2018, respectively, an additional 10 percent will be available between 2019 and 2024 . (c) Net of accumulated depreciation of $ 362 million and $ 451 million in March 31, 2017 and December 31, 2016 , respectively. (d) Consists of investments in aircraft equipment held in a consolidated trust. |
Components of net investment income | Three Months Ended March 31, (in millions) 2017 2016 Fixed maturity securities, including short-term investments $ 2,801 $ 2,936 Equity securities 5 (22) Interest on mortgage and other loans 393 389 Alternative investments * 448 (366) Real estate 49 53 Other investments 116 137 Total investment income 3,812 3,127 Investment expenses 126 114 Net investment income $ 3,686 $ 3,013 |
Components of net realized capital gains (losses) | Three Months Ended March 31, (in millions) 2017 2016 Sales of fixed maturity securities $ 155 $ (362) Sales of equity securities 1 24 Other-than-temporary impairments: Severity - (2) Change in intent (1) (29) Foreign currency declines (10) (6) Issuer-specific credit events (57) (131) Adverse projected cash flows - (36) Provision for loan losses 6 30 Foreign exchange transactions 159 (520) Derivatives and hedge accounting (376) (72) Impairments on investments in life settlements (41) (157) Other * 49 155 Net realized capital losses $ (115) $ (1,106) * Includes $ 107 million of realized gains due to a purchase price adjustment on the sale of Class B shares of Prude ntial Financial, Inc. for the three months ended March 31, 2016 . |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | Three Months Ended March 31, (in millions) 2017 2016 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ 773 $ 4,778 Equity securities 114 (95) Other investments (54) (148) Total increase (decrease) in unrealized appreciation (depreciation) of investments * $ 833 $ 4,535 * Excludes net unrealized losses attributable to businesses held for sale. |
Credit impairments recognized in earnings for available for sale fixed maturity securities | Three Months Ended March 31, (in millions) 2017 2016 Balance, beginning of year $ 1,098 $ 1,747 Increases due to: Credit impairments on new securities subject to impairment losses 17 110 Additional credit impairments on previously impaired securities 30 55 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell (11) (150) Accretion on securities previously impaired due to credit * (188) (239) Other - - Balance, end of period $ 946 $ 1,523 * 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) $ 36,159 Cash flows expected to be collected * 29,575 Recorded investment in acquired securities 19,884 * Represents undiscounted expect ed cash flows, including both principal and interes t . |
Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date | (in millions) March 31, 2017 December 31, 2016 Outstanding principal balance $ 16,270 $ 16,728 Amortized cost 11,649 11,987 Fair value 12,754 12,922 |
Activity for accretable yield on Purchased Credit Impaired (PCI) Securities | Three Months Ended March 31, (in millions) 2017 2016 Balance, beginning of period $ 7,498 $ 6,846 Newly purchased PCI securities 88 206 Disposals (18) - Accretion (210) (214) Effect of changes in interest rate indices 21 (299) Net reclassification from (to) non-accretable difference, including effects of prepayments 214 83 Balance, end of period $ 7,593 $ 6,622 |
Schedule of fair value of securities pledged to counterparties under secured financing transactions | (in millions) March 31, 2017 December 31, 2016 Fixed maturity securities available for sale $ 2,405 $ 2,389 Other bond securities, at fair value $ 1,776 $ 1,799 |
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, 2017 Other bond securities: Non-U.S. governments $ - $ - $ 51 $ - $ - $ 51 Corporate debt - 377 791 557 - 1,725 Total $ - $ 377 $ 842 $ 557 $ - $ 1,776 December 31, 2016 Other bond securities: Non-U.S. governments $ - $ - $ - $ 51 $ - $ 51 Corporate debt - 163 860 725 - 1,748 Total $ - $ 163 $ 860 $ 776 $ - $ 1,799 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, 2017 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ - $ - $ - $ - $ - Non-U.S. governments - - - 52 - 52 Corporate debt - 439 1,598 316 - 2,353 CMBS - - - - - - Total $ - $ 439 $ 1,598 $ 368 $ - $ 2,405 December 31, 2016 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ 21 $ - $ - $ - $ 21 Non-U.S. governments - - 50 - - 50 Corporate debt - 791 1,466 - - 2,257 CMBS - - 61 - - 61 Total $ - $ 812 $ 1,577 $ - $ - $ 2,389 |
Schedule of fair value of securities pledged to the entity under reverse repurchase agreements | (in millions) March 31, 2017 December 31, 2016 Securities collateral pledged to us $ 1,459 $ 1,434 Amount sold or repledged by us $ 14 $ 11 |
LENDING ACTIVITIES (Tables)
LENDING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
LENDING ACTIVITIES | |
Composition of Mortgages and other loans receivable | March 31, December 31, (in millions) 2017 2016 Commercial mortgages * $ 25,995 $ 25,042 Residential mortgages 4,401 3,828 Life insurance policy loans 2,324 2,367 Commercial loans, other loans and notes receivable 1,447 2,300 Total mortgage and other loans receivable 34,167 33,537 Allowance for credit losses (289) (297) Mortgage and other loans receivable, net $ 33,878 $ 33,240 * Commercial mortgages primarily represent loans for office s , apartments and retail properties, with exposures in New York and California representing the largest geographic concentrations ( aggregating approximately 23 percent and 12 percent , respectively, at March 31, 2017 , and 24 percent and 12 percent , respectively, at December 31, 2016 ) . |
Schedule of debt service coverage ratio and loan-to-value ratio for the commercial mortgage loans | Debt Service Coverage Ratios (a) (in millions) >1.20X 1.00X - 1.20X <1.00X Total March 31, 2017 Loan-to-Value Ratios (b) Less than 65% $ 15,636 $ 1,309 $ 230 $ 17,175 65% to 75% 5,842 656 62 6,560 76% to 80% 881 133 82 1,096 Greater than 80% 496 538 130 1,164 Total commercial mortgages $ 22,855 $ 2,636 $ 504 $ 25,995 December 31, 2016 Loan-to-Value Ratios (b) Less than 65% $ 13,998 $ 1,694 $ 232 $ 15,924 65% to 75% 5,946 575 62 6,583 76% to 80% 1,246 174 47 1,467 Greater than 80% 471 392 205 1,068 Total commercial mortgages $ 21,661 $ 2,835 $ 546 $ 25,042 (a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest . (b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing th e loan . |
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, 2017 Credit Quality Performance Indicator: In good standing 790 $ 6,305 $ 8,109 $ 4,993 $ 2,196 $ 2,261 $ 1,963 $ 25,827 99 % Restructured (a) 4 - 134 18 - 16 - 168 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 794 $ 6,305 $ 8,243 $ 5,011 $ 2,196 $ 2,277 $ 1,963 $ 25,995 100 % Allowance for credit losses: Specific $ - $ 5 $ 1 $ - $ 1 $ - $ 7 - % General 44 72 46 9 13 16 200 1 Total allowance for credit losses $ 44 $ 77 $ 47 $ 9 $ 14 $ 16 $ 207 1 % December 31, 2016 Credit Quality Performance Indicator: In good standing 784 $ 6,005 $ 7,830 $ 5,179 $ 1,898 $ 2,373 $ 1,589 $ 24,874 99 % Restructured (a) 4 - 134 18 - 16 - 168 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 788 $ 6,005 $ 7,964 $ 5,197 $ 1,898 $ 2,389 $ 1,589 $ 25,042 100 % Allowance for credit losses: Specific $ - $ 3 $ 1 $ 6 $ 1 $ - $ 11 - % General 35 72 41 7 13 15 183 1 Total allowance for credit losses $ 35 $ 75 $ 42 $ 13 $ 14 $ 15 $ 194 1 % (a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings , see Note 7 to the Consolidated Financial Statements in the 2016 Annual Report . (b) Does not reflect a llowance for credit l osses . (c) 100 percent of the commercial mortgage s held at such respective dates were current as to payments of principal and interes t. There were no significant amounts of nonperforming commercial mortgages (de fined as those loans where payment of contractual principal or interest is more than 90 days past due) during any of the periods presented. |
Schedule of changes in the allowance for losses on Mortgage and other loans receivable | 2017 2016 Three Months Ended March 31, Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 194 $ 103 $ 297 $ 171 $ 137 $ 308 Loans charged off - - - (11) - (11) Recoveries of loans previously charged off - - - 11 - 11 Net charge-offs - - - - - - Provision for loan losses 13 (21) (8) (5) (26) (31) Other - - - - - - Allowance, end of period $ 207 * $ 82 $ 289 $ 166 * $ 111 $ 277 * Of the total allowance , $ 7 million and $ 12 million relate to individually assessed credit losses on $ 266 million and $ 298 million of commercial mortgages at March 31, 2017 and 2016 , respectively. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 (e) Structured Investment Vehicle Affordable Housing Partnerships Other Total March 31, 2017 Assets: Bonds available for sale $ - $ 9,534 $ - $ - $ - $ 9,534 Other bond securities - 4,751 263 - 5 5,019 Mortgage and other loans receivable - 1,328 - - - 1,328 Other invested assets 1,029 281 - 3,118 24 4,452 Other (a) 244 1,158 59 436 90 1,987 Total assets (b) $ 1,273 $ 17,052 $ 322 $ 3,554 $ 119 $ 22,320 Liabilities: Long-term debt $ 428 $ 682 $ 58 $ 1,880 $ 5 $ 3,053 Other (c) 94 215 1 217 37 564 Total liabilities $ 522 $ 897 $ 59 $ 2,097 $ 42 $ 3,617 December 31, 2016 Assets: Bonds available for sale $ - $ 10,233 $ - $ - $ - $ 10,233 Other bond securities - 4,858 266 - 5 5,129 Mortgage and other loans receivable 1 1,442 - - 104 1,547 Other invested assets 1,052 321 - 2,821 28 4,222 Other (a) 365 1,104 50 384 92 1,995 Total assets (b) $ 1,418 $ 17,958 $ 316 $ 3,205 $ 229 $ 23,126 Liabilities: Long-term debt $ 444 $ 771 $ 56 $ 1,696 $ 6 $ 2,973 Other (c) 224 203 1 211 38 677 Total liabilities $ 668 $ 974 $ 57 $ 1,907 $ 44 $ 3,650 (a) Comprised primarily of Short-term investments and Other assets at March 31, 2017 and December 31, 2016 . (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, 2017 and December 31, 2016 . (d) At March 31, 2017 and December 31, 2016 , off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $ 93 million and $ 106 million, respectively. (e) At March 31, 2017 and December 31, 2016 , $ 17.0 billion and $ 17.3 billion, respectively, of the total assets of consolidated securitization vehicles were owed to AIG Parent or its subsidiaries. |
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 (b) Sheet Total March 31, 2017 Real estate and investment entities (a) $ 401,264 $ 10,517 $ 2,072 $ 12,589 Affordable housing partnerships 4,407 758 - 758 Other 2,458 289 1,175 (c) 1,464 Total $ 408,129 $ 11,564 $ 3,247 $ 14,811 December 31, 2016 Real estate and investment entities (a) $ 409,087 $ 11,015 $ 2,115 $ 13,130 Affordable housing partnerships 4,709 785 - 785 Other 2,869 314 1,045 (c) 1,359 Total $ 416,665 $ 12,114 $ 3,160 $ 15,274 (a) Comprised primarily of hedge funds and private equity funds. (b ) At March 31, 2017 and December 31, 2016 , $ 11.1 billion and $ 11.7 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (c ) These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance polic ies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. |
DERIVATIVES AND HEDGE ACCOUNT35
DERIVATIVES AND HEDGE ACCOUNTING (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
Notional amounts and fair values of derivative instruments | March 31, 2017 December 31, 2016 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 $ 155 $ 1 $ 761 $ 11 $ 175 $ - $ 782 $ 11 Foreign exchange contracts 4,353 340 2,361 71 3,527 385 2,602 184 Equity contracts - - 119 9 - - 113 7 Derivatives not designated as hedging instruments: (a) Interest rate contracts 59,814 2,348 27,134 2,504 51,030 2,328 44,211 3,066 Foreign exchange contracts 6,383 771 9,268 1,034 9,468 935 7,674 1,185 Equity contracts 21,506 447 2,703 39 14,060 305 8,633 12 Credit contracts (b) 3 2 825 317 4 2 861 331 Other contracts (c) 39,113 21 61 6 37,633 22 62 6 Total derivatives, gross $ 131,327 $ 3,930 $ 43,232 $ 3,991 $ 115,897 $ 3,977 $ 64,938 $ 4,802 Counterparty netting (d) (1,269) (1,269) (1,265) (1,265) Cash collateral (e) (1,414) (1,461) (903) (1,521) Total derivatives on condensed consolidated balance sheets (f) $ 1,247 $ 1,261 $ 1,809 $ 2,016 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b ) As of March 31, 2017 and December 31, 2016 , included CDSs on super senior multi-sector CDOs with a net notional amount of $ 774 m illion and $ 801 m illion (fair value liability of $ 299 million and $ 308 million), respectively. The expected weighted average maturity as of March 31, 2017 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 r epresents the maximum exposure to loss on the portfolio. As of March 31, 2017 and December 31, 2016 , there were no super senior corporate debt/CLOs remaining. (c) Consists primarily of stable value wraps and contracts with mu ltiple underlying exposures. (d) Represents netting of derivative exposures covered by a qualifying master netting agreement. (e) Represents cash collateral posted and received that is eligible for netting. (f) Freestanding derivatives only, excludes Embed ded derivatives. Derivative instrument assets and liabilities are recorded in Other Assets and Liabilities, respectively. Fair value of assets related to bifurcated Embedded derivatives was zero at both March 31, 2017 and December 31, 2 016. Fair value of liabilities related to bifurcated Embedded derivatives was $ 3.1 billion at both March 31, 2017 and December 31, 2016. A bifurcated Embedded derivative is generally presented with the host contr act 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, 2017 Interest rate contracts : Realized capital gains/(losses) $ (1) $ 1 $ - $ - $ - Other income - - - - - Gain/(Loss) on extinguishment of debt - - - - - Foreign exchange contracts : Realized capital gains/(losses) 52 (42) - 10 - Other income - 1 - - 1 Gain/(Loss) on extinguishment of debt - - - - - Equity contracts : Realized capital gains/(losses) (2) - - (2) - 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) - (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 pr eviously-discontinued fair value h edge relationship. |
Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statements of Income | Gains (Losses) Three Months Ended March 31, Recognized in Earnings (in millions) 2017 2016 By Derivative Type: Interest rate contracts $ (152) $ 770 Foreign exchange contracts (46) (28) Equity contracts (314) (131) Commodity contracts - - Credit contracts 15 6 Other contracts 18 16 Embedded derivatives 146 (772) Total $ (333) $ (139) By Classification: Policy fees $ 20 $ 20 Net investment income (2) (1) Net realized capital losses (384) (35) Other income (losses) 33 (130) Policyholder benefits and claims incurred - 7 Total $ (333) $ (139) |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | |
Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense | The following table presents the roll forward of activity in Loss Reserves: Three Months Ended March 31, (in millions) 2017 2016 Liability for unpaid loss and loss adjustment expenses, beginning of year $ 77,077 $ 74,942 Reinsurance recoverable (15,532) (14,339) Net Liability for unpaid loss and loss adjustment expenses, beginning of year 61,545 60,603 Foreign exchange effect (105) (160) Dispositions (a) - - Retroactive reinsurance adjustment (net of discount) (b) (11,199) - Total 50,241 60,443 Losses and loss adjustment expenses incurred : Current year 4,300 4,912 Prior years, excluding discount 25 (66) Prior years, discount charge (benefit) (25) (9) Total losses and loss adjustment expenses incurred 4,300 4,837 Losses and loss adjustment expenses paid : Current year (571) (580) Prior years (4,753) (4,966) Total losses and loss adjustment expenses paid (5,324) (5,546) Reclassified to liabilities held for sale (c) (87) - Liability for unpaid loss and loss adjustment expenses, end of period: Net liability for unpaid losses and loss adjustment expenses 49,130 59,734 Reinsurance recoverable 26,920 14,212 Total $ 76,050 $ 73,946 (a) Includes amounts related to dispositions through the date of disposition. Includes sale of UGC and Ascot. (b) Includes discount on retroactive r einsurance in the amount of $1.7 billion. (c) Represents change in loss reserves included in our pending sale of certain of our insurance operations to Fairfax for the three months ended March 31, 2017. Upon consummation of the sale, we may retain a portion of these reserves through reinsurance arrangements. |
Schedule of loss reserve discount and loss reserve discount benefit (charge) | The following table presents the components of the loss reserve discount discussed above: March 31, 2017 December 31, 2016 Legacy Portfolio Legacy Portfolio U.S. Liability - Property and U.S. Liability - Property and and Casualty run-off and Casualty run-off (in millions) Financial Lines Insurance Lines Total Financial Lines Insurance Lines Total U.S. workers' compensation $ 2,606 $ 989 $ 3,595 $ 2,583 $ 987 $ 3,570 Retroactive reinsurance (1,655) - (1,655) - - - Total reserve discount $ 951 $ 989 $ 1,940 $ 2,583 $ 987 $ 3,570 The following table presents the net loss reserve discount benefit (charge) : Three Months Ended March 31, 2017 2016 Legacy Portfolio Legacy Portfolio U.S. Liability - Property and U.S. Liability - Property and and Casualty run-off and Casualty run-off (in millions) Financial Lines Insurance Lines Total Financial Lines Insurance Lines Total Current accident year $ 32 $ - $ 32 $ 48 $ - $ 48 Accretion and other adjustments to prior year discount (48) (16) (64) (14) (14) (28) Effect of interest rate changes 39 18 57 (8) (3) (11) Net reserve discount benefit (charge) 23 2 25 26 (17) 9 Change in discount on loss reserves ceded under retroactive reinsurance (1,655) - (1,655) - - - Net change in total reserve discount $ (1,632) $ 2 $ (1,630) $ 26 $ (17) $ 9 Comprised of: U.S. Workers' compensation $ (1,632) $ 2 $ (1,630) $ 26 $ (16) $ 10 Asbestos $ - $ - $ - $ - $ (1) $ (1) |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
EQUITY | |
Rollforward of common stock outstanding | Three Months Ended March 31, 2017 Common Treasury Common Stock Stock Issued Stock Outstanding Shares, beginning of year 1,906,671,492 (911,335,651) 995,335,841 Shares issued - 3,138,933 3,138,933 Shares repurchased - (55,994,748) (55,994,748) Shares, end of period 1,906,671,492 (964,191,466) 942,480,026 |
Repurchases Of Common Stock and Warrant | The following table presents repurchases of AIG Common Stock and warrants to purchase shares of AIG Common Stock: Three Months Ended March 31, (in millions) 2017 2016 Aggregate repurchases of common stock $ 3,585 $ 3,486 Total number of common shares repurchased 56 63 Aggregate repurchases of warrants $ - $ 173 Total number of warrants repurchased - 10 |
Accumulated Other Comprehensive Income (Loss) | Unrealized Appreciation (Depreciation) of Fixed Maturity Securities 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, 2016, net of tax $ 426 $ 6,405 $ (2,629) $ (972) $ 3,230 Change in unrealized appreciation of investments 143 690 - - 833 Change in deferred policy acquisition costs adjustment and other * 32 38 - - 70 Change in future policy benefits - (86) - - (86) Change in foreign currency translation adjustments - - (304) - (304) Change in net actuarial loss - - - 25 25 Change in prior service cost - - - 3 3 Change in deferred tax asset (liability) (61) 53 28 (10) 10 Total other comprehensive income (loss) 114 695 (276) 18 551 Noncontrolling interests - - - - - Balance, March 31, 2017, net of tax $ 540 $ 7,100 $ (2,905) $ (954) $ 3,781 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 credit - - - (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 * In cludes net unrealized gains attributable to businesses held for sale. |
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, 2017 Unrealized change arising during period $ 190 $ 835 $ (304) $ 18 $ 739 Less: Reclassification adjustments included in net income 15 193 - (10) 198 Total other comprehensive income (loss), before income tax expense (benefit) 175 642 (304) 28 541 Less: Income tax expense (benefit) 61 (53) (28) 10 (10) Total other comprehensive income (loss), net of income tax expense (benefit) $ 114 $ 695 $ (276) $ 18 $ 551 |
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) 2017 2016 Condensed Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized Investments $ 15 $ 75 Other realized capital gains Total 15 75 Unrealized appreciation (depreciation) of all other investments Investments 140 (413) Other realized capital gains Deferred policy acquisition costs adjustment 53 58 Amortization of deferred policy acquisition costs Future policy benefits - - Policyholder benefits and losses incurred Total 193 (355) Change in retirement plan liabilities adjustment Prior-service costs - 4 * Actuarial losses (10) (8) * Total (10) (4) Total reclassifications for the period $ 198 $ (284) * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 14 to the Condensed Consolidated Financial Statements. |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
EARNINGS PER SHARE (EPS) | |
Computation of basic and diluted EPS | Three Months Ended March 31, (dollars in millions, except per share data) 2017 2016 Numerator for EPS: Income (loss) from continuing operations $ 1,211 $ (156) Less: Net income from continuing operations attributable to noncontrolling interests 26 (20) Income (loss) attributable to AIG common shareholders from continuing operations 1,185 (136) Loss from discontinued operations, net of income tax expense - (47) Net income (loss) attributable to AIG common shareholders $ 1,185 $ (183) Denominator for EPS: Weighted average shares outstanding — basic 980,777,243 1,156,548,459 Dilutive shares 24,537,787 - Weighted average shares outstanding — diluted (a) (b) 1,005,315,030 1,156,548,459 Income per common share attributable to AIG: Basic: Income (loss) from continuing operations $ 1.21 $ (0.12) Loss from discontinued operations $ - $ (0.04) Income (loss) attributable to AIG $ 1.21 $ (0.16) Diluted: Income (loss) from continuing operations $ 1.18 $ (0.12) Loss from discontinued operations $ - $ (0.04) Income (loss) attributable to AIG $ 1.18 $ (0.16) (a) Shares in the diluted EPS calculation represent basic shares for the three-month period ended March 31, 201 6 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 1.8 million and 0.6 mi llion for the three - month periods ended March 31, 2017 and 2016 , respectively, 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, 2017 | |
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, 2017 Components of net periodic benefit cost: Service cost $ 6 $ 8 $ 14 $ - $ 1 $ 1 Interest cost 43 4 47 2 1 3 Expected return on assets (64) (6) (70) - - - Amortization of net loss 7 3 10 - - - Net periodic benefit cost (credit) $ (8) $ 9 $ 1 $ 2 $ 2 $ 4 Three Months Ended March 31, 2016 Components of net periodic benefit 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 cost (credit) $ (17) $ 6 $ (11) $ - $ 2 $ 2 |
INFORMATION PROVIDED IN CONNE40
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 Assets: Short-term investments $ 2,714 $ - $ 12,907 $ (4,548) $ 11,073 Other investments (a) 7,032 - 297,400 - 304,432 Total investments 9,746 - 310,307 (4,548) 315,505 Cash 2 11 1,905 - 1,918 Loans to subsidiaries (b) 34,849 - 394 (35,243) - Investment in consolidated subsidiaries (b) 43,916 28,102 - (72,018) - Other assets, including deferred income taxes 21,824 630 158,303 (4,606) 176,151 Assets held for sale - - 6,588 - 6,588 Total assets $ 110,337 $ 28,743 $ 477,497 $ (116,415) $ 500,162 Liabilities: Insurance liabilities $ - $ - $ 274,967 $ - $ 274,967 Long-term debt 21,471 642 8,634 - 30,747 Other liabilities, including intercompany balances (a) 14,402 571 108,364 (9,327) 114,010 Loans from subsidiaries (b) 395 - 34,848 (35,243) - Liabilities held for sale - - 5,771 - 5,771 Total liabilities 36,268 1,213 432,584 (44,570) 425,495 Total AIG shareholders’ equity 74,069 27,530 44,315 (71,845) 74,069 Non-redeemable noncontrolling interests - - 598 - 598 Total equity 74,069 27,530 44,913 (71,845) 74,667 Total liabilities and equity $ 110,337 $ 28,743 $ 477,497 $ (116,415) $ 500,162 December 31, 2016 Assets: Short-term investments $ 4,424 $ - $ 13,218 $ (5,340) $ 12,302 Other investments (a) 7,154 - 308,719 - 315,873 Total investments 11,578 - 321,937 (5,340) 328,175 Cash 2 34 1,832 - 1,868 Loans to subsidiaries (b) 34,692 - 576 (35,268) - Investment in consolidated subsidiaries (b) 42,582 27,309 - (69,891) - Other assets, including deferred income taxes 24,099 239 140,743 (4,059) 161,022 Assets held for sale - - 7,199 - 7,199 Total assets $ 112,953 $ 27,582 $ 472,287 $ (114,558) $ 498,264 Liabilities: Insurance liabilities $ - $ - $ 275,120 $ - $ 275,120 Long-term debt 21,405 642 8,865 - 30,912 Other liabilities, including intercompany balances (a) 14,671 194 103,975 (9,572) 109,268 Loans from subsidiaries (b) 577 - 34,691 (35,268) - Liabilities held for sale - - 6,106 - 6,106 Total liabilities 36,653 836 428,757 (44,840) 421,406 Total AIG shareholders’ equity 76,300 26,746 42,972 (69,718) 76,300 Non-redeemable noncontrolling interests - - 558 - 558 Total equity 76,300 26,746 43,530 (69,718) 76,858 Total liabilities and equity $ 112,953 $ 27,582 $ 472,287 $ (114,558) $ 498,264 (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, 2017 Revenues: Equity in earnings of consolidated subsidiaries * $ 1,462 $ 600 $ - $ (2,062) $ - Other income 196 - 12,382 54 12,632 Total revenues 1,658 600 12,382 (2,008) 12,632 Expenses: Interest expense 242 12 46 (2) 298 Gain on extinguishment of debt - - (1) - (1) Other expenses 335 1 10,325 (53) 10,608 Total expenses 577 13 10,370 (55) 10,905 Income (loss) from continuing operations before income tax expense (benefit) 1,081 587 2,012 (1,953) 1,727 Income tax expense (benefit) (104) (4) 624 - 516 Income (loss) from continuing operations 1,185 591 1,388 (1,953) 1,211 Net income (loss) 1,185 591 1,388 (1,953) 1,211 Less: Net income (loss) from continuing operations attributable to noncontrolling interests - - 26 - 26 Net income (loss) attributable to AIG $ 1,185 $ 591 $ 1,362 $ (1,953) $ 1,185 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: Net income (loss) from continuing operations attributable to noncontrolling interests - - (20) - (20) Net income (loss) attributable to AIG $ (183) $ (1,693) $ (933) $ 2,626 $ (183) * 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, 2017 Net income (loss) $ 1,185 $ 591 $ 1,388 $ (1,953) $ 1,211 Other comprehensive income (loss) 551 4,660 51,030 (55,690) 551 Comprehensive income (loss) 1,736 5,251 52,418 (57,643) 1,762 Total comprehensive income attributable to noncontrolling interests - - 26 - 26 Comprehensive income (loss) attributable to AIG $ 1,736 $ 5,251 $ 52,392 $ (57,643) $ 1,736 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 |
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, 2017 Net cash (used in) provided by operating activities $ 651 $ (23) $ (10,938) $ (49) $ (10,359) Cash flows from investing activities: Sales of investments 2,699 - 26,492 (2,482) 26,709 Sales of divested businesses, net - - 24 - 24 Purchase of investments (890) - (14,769) 2,482 (13,177) Loans to subsidiaries - net (56) - 183 (127) - Contributions from (to) subsidiaries - net 206 - - (206) - Net change in restricted cash - - (22) - (22) Net change in short-term investments 1,470 - (220) - 1,250 Other, net (5) - (292) - (297) Net cash (used in) provided by investing activities 3,424 - 11,396 (333) 14,487 Cash flows from financing activities: Issuance of long-term debt - - 151 - 151 Repayments of long-term debt - - (602) - (602) Purchase of common stock (3,585) - - - (3,585) Intercompany loans - net (183) - 56 127 - Cash dividends paid (307) - (49) 49 (307) Other, net - - 89 206 295 Net cash (used in) provided by financing activities (4,075) - (355) 382 (4,048) Effect of exchange rate changes on cash - - (82) - (82) Change in cash - (23) 21 - (2) Cash at beginning of year 2 34 1,832 - 1,868 Change in cash of businesses held for sale - - 52 - 52 Cash at end of period $ 2 $ 11 $ 1,905 $ - $ 1,918 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 |
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 2017 period for: Interest: Third party $ (288) $ (23) $ (43) $ - $ (354) Intercompany - - - - - Taxes: Income tax authorities $ (14) $ - $ (54) $ - $ (68) Intercompany 1,090 - (1,090) - - 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) - - |
Supplementary disclosure of non-cash activities | Three Months Ended March 31, (in millions) 2017 2016 Intercompany non-cash financing and investing activities: Capital contributions $ 198 $ 2,904 Dividends received in the form of securities 150 697 Fixed maturity securities received in exchange for equity securities - - |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | Mar. 31, 2017item$ / shares | Dec. 31, 2016$ / shares |
Basis of Presentation [Line Items] | ||
Common stock, par value (in dollars per share) | $ / shares | $ 2.5 | $ 2.5 |
Minimum | ||
Basis of Presentation [Line Items] | ||
Number of Countries in which the entity operates | item | 80 |
SEGMENT INFORMATION (Details -
SEGMENT INFORMATION (Details - Continuing operations by reportable segment) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment results | ||
Total Revenues | $ 12,632 | $ 11,779 |
Pre-tax operating income | 1,727 | (214) |
Commercial Insurance | ||
Segment results | ||
Total Revenues | 4,683 | 5,298 |
Pre-tax operating income | 849 | 662 |
Consumer Insurance | ||
Segment results | ||
Total Revenues | 5,942 | 5,891 |
Pre-tax operating income | 1,048 | 704 |
Other Operations | ||
Segment results | ||
Total Revenues | 1,090 | 998 |
Pre-tax operating income | (246) | (239) |
Legacy Portfolio | ||
Segment results | ||
Total Revenues | 1,084 | 681 |
Pre-tax operating income | 342 | (202) |
Reportable Segments | Commercial Insurance | Liability And Financial Lines [Member] | ||
Segment results | ||
Total Revenues | 2,848 | 3,311 |
Pre-tax operating income | 574 | 569 |
Reportable Segments | Commercial Insurance | Property And Special Risks [Member] | ||
Segment results | ||
Total Revenues | 1,835 | 1,987 |
Pre-tax operating income | 275 | 93 |
Reportable Segments | Consumer Insurance | Individual Retirement [Member] | ||
Segment results | ||
Total Revenues | 1,373 | 1,493 |
Pre-tax operating income | 539 | 302 |
Reportable Segments | Consumer Insurance | Group Retirement [Member] | ||
Segment results | ||
Total Revenues | 718 | 629 |
Pre-tax operating income | 243 | 191 |
Reportable Segments | Consumer Insurance | Personal Insurance [Member] | ||
Segment results | ||
Total Revenues | 2,838 | 2,816 |
Pre-tax operating income | 212 | 210 |
Reportable Segments | Consumer Insurance | Life Insurance [Member] | ||
Segment results | ||
Total Revenues | 1,013 | 953 |
Pre-tax operating income | 54 | 1 |
Consolidation and Eliminations | ||
Segment results | ||
Total Revenues | (64) | (131) |
Pre-tax operating income | 48 | 20 |
Total AIG Consolidated revenues and pre-tax operating income (loss) | ||
Segment results | ||
Total Revenues | 12,735 | 12,737 |
Pre-tax operating income | $ 2,041 | $ 945 |
SEGMENT INFORMATION (Details 43
SEGMENT INFORMATION (Details - Continuing operations by reportable segment - Pretax operating income to pre-tax income)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | ||
Gain (Loss) on extinguishment of debt | $ 1 | $ (83) |
Income (loss) from divested businesses | (100) | (2) |
Net reserve discount benefit (charge) | 25 | 9 |
Pre-tax operating income | 1,727 | (214) |
Reconciling items from pre-tax operating income to 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 securities used to hedge guaranteed living benefits | 11 | 133 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | 0 | 0 |
Gain (Loss) on extinguishment of debt | 0 | 0 |
Net realized capital gains (losses) | (115) | (1,106) |
Income (loss) from divested businesses | 0 | 0 |
Non-operating litigation reserves and settlements | 10 | 34 |
Net reserve discount benefit (charge) | 0 | 0 |
Restructuring and other costs | 0 | 0 |
Other | (9) | (19) |
Reconciling items from pre-tax operating income to 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 securities used to hedge guaranteed living benefits | 11 | 133 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | 53 | 40 |
(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | (14) | 7 |
Gain (Loss) on extinguishment of debt | 1 | (83) |
Net realized capital gains (losses) | (115) | (1,106) |
Income (loss) from divested businesses | (100) | (2) |
Non-operating litigation reserves and settlements | 6 | 31 |
Net reserve discount benefit (charge) | 25 | 9 |
Restructuring and other costs | (181) | (188) |
Other | $ 0 | $ 0 |
HELD-FOR-SALE CLASSIFICATION (D
HELD-FOR-SALE CLASSIFICATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Aug. 15, 2016 | Dec. 31, 2015 | |
Held-for-Sale Classification | |||||
Net income (loss) on sale of properties and divested businesses | $ (100,000,000) | $ (2,000,000) | |||
Assets: | |||||
Mortgage and other loans receivable, net | 33,878,000,000 | $ 33,240,000,000 | |||
Other invested assets | 23,652,000,000 | 24,538,000,000 | |||
Short-term investments | 11,073,000,000 | 12,302,000,000 | |||
Cash | 1,918,000,000 | 1,499,000,000 | 1,868,000,000 | $ 1,629,000,000 | |
Accrued investment income | 2,386,000,000 | 2,495,000,000 | |||
Premiums and other receivables, net of allowance | 11,130,000,000 | 10,465,000,000 | |||
Reinsurance assets, net of allowance | 34,140,000,000 | 21,901,000,000 | |||
Deferred policy acquisition costs | 11,091,000,000 | 11,042,000,000 | |||
Other assets | 10,606,000,000 | 10,815,000,000 | |||
Total assets held for sale | 6,588,000,000 | 7,199,000,000 | |||
Liabilities: | |||||
Liability for unpaid losses and loss adjustment expenses | 76,050,000,000 | $ 73,946,000,000 | 77,077,000,000 | $ 74,942,000,000 | |
Unearned premiums | 19,840,000,000 | 19,634,000,000 | |||
Future policy benefits for life and accident and health insurance contracts | 42,719,000,000 | 42,204,000,000 | |||
Other policyholder funds | 3,719,000,000 | 3,989,000,000 | |||
Long-term Debt | 30,747,000,000 | 30,912,000,000 | |||
Other Liabilities | 28,093,000,000 | 26,296,000,000 | |||
Total liabilities held for sale | 5,771,000,000 | 6,106,000,000 | |||
Held for sale [Member] | |||||
Assets: | |||||
Fixed maturity securities | 5,438,000,000 | 6,045,000,000 | |||
Equity Securities | 14,000,000 | 149,000,000 | |||
Mortgage and other loans receivable, net | 121,000,000 | 137,000,000 | |||
Other invested assets | 244,000,000 | 2,000,000 | |||
Short-term investments | 181,000,000 | 130,000,000 | |||
Cash | 81,000,000 | 133,000,000 | |||
Accrued investment income | 22,000,000 | 21,000,000 | |||
Premiums and other receivables, net of allowance | 393,000,000 | 351,000,000 | |||
Reinsurance assets, net of allowance | 13,000,000 | 8,000,000 | |||
Deferred policy acquisition costs | 422,000,000 | 471,000,000 | |||
Other assets | 264,000,000 | 273,000,000 | |||
Assets of businesses held for sale | 7,193,000,000 | 7,720,000,000 | |||
Less: Loss Accrual | (605,000,000) | (521,000,000) | |||
Total assets held for sale | 6,588,000,000 | 7,199,000,000 | |||
Liabilities: | |||||
Liability for unpaid losses and loss adjustment expenses | 489,000,000 | 402,000,000 | |||
Unearned premiums | 333,000,000 | 297,000,000 | |||
Future policy benefits for life and accident and health insurance contracts | 4,140,000,000 | 4,579,000,000 | |||
Other policyholder funds | 327,000,000 | 378,000,000 | |||
Long-term Debt | 108,000,000 | 0 | |||
Other Liabilities | 374,000,000 | 450,000,000 | |||
Total liabilities held for sale | 5,771,000,000 | 6,106,000,000 | |||
United Guaranty | Held for sale [Member] | |||||
Held-for-Sale Classification | |||||
Voting interest in subsidiary, Percent | 100.00% | ||||
Total consideration | 3,300,000,000 | ||||
Consideration in cash | 2,200,000,000 | ||||
Non-cash consideration received from sale | 1,100,000,000 | ||||
Cash consideration retained by buyer | 40,000,000 | ||||
Pre-closing dividends | $ 261,000,000 | ||||
Certain insurance operations | Held for sale [Member] | |||||
Held-for-Sale Classification | |||||
Consideration in cash | $ 234,000,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | $ 230,698 | $ 241,537 | |
Other bond securities | 13,605 | 13,998 | |
Equity securities available for sale | 2,099 | 2,078 | |
Other equity securities | 500 | 482 | |
Other invested assets | 7,094 | 6,946 | |
Derivative Assets, Fair Value | 3,930 | 3,977 | |
Derivative assets, Counterparty netting | (1,269) | (1,265) | |
Derivative assets, Cash collateral | (1,414) | (903) | |
Short-term investments, portion measured at fair value | 2,453 | 3,341 | |
Separate account assets, at fair value | 85,917 | 82,972 | |
Other assets | 1,247 | 1,809 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 3,097 | 3,058 | |
Other policyholder funds | 3,719 | 3,989 | |
Derivative Liabilities, Fair Value | 3,991 | 4,802 | |
Derivative liabilities, Counterparty netting | (1,269) | (1,265) | |
Derivative liabilities, Cash collateral | (1,461) | (1,521) | |
Long-term debt, portion measured at fair value | 3,151 | 3,428 | |
Other liabilities | 1,261 | 2,016 | |
U.S. government and government sponsored entities | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Assets transferred from Level 1 to Level 2 | 63 | $ 0 | |
Non-U.S. government | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Assets transferred from Level 1 to Level 2 | 53 | 83 | |
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 | 234 | 115 | |
Other bond securities | 0 | 0 | |
Equity securities available for sale | 2,089 | 2,068 | |
Other equity securities | 500 | 482 | |
Mortgage and other loans receivable | 0 | ||
Other invested assets | 0 | 0 | |
Derivative Assets, Fair Value | 274 | 188 | |
Short-term investments, portion measured at fair value | 2,110 | 2,660 | |
Separate account assets, at fair value | 80,323 | 77,318 | |
Other assets | 0 | ||
Fair value assets measured on recurring basis, total | 85,530 | 82,831 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 0 | 0 | |
Other policyholder funds | 5 | 5 | |
Derivative Liabilities, Fair Value | 40 | 12 | |
Long-term debt, portion measured at fair value | 0 | 0 | |
Other liabilities | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 45 | 17 | |
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 | 2 | 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 | 0 | 0 | |
Recurring Basis | Level 1 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 274 | 188 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 38 | 12 | |
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 | 51 | 63 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Non-U.S. government | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 183 | 52 | |
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 | 978 | 1,056 | |
Recurring Basis | Level 1 | Preferred Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 825 | 752 | |
Recurring Basis | Level 1 | Mutual Funds | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 286 | 260 | |
Recurring Basis | Level 2 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 202,083 | 211,451 | |
Other bond securities | 6,512 | 6,518 | |
Equity securities available for sale | 2 | 10 | |
Other equity securities | 0 | 0 | |
Mortgage and other loans receivable | 0 | ||
Other invested assets | 404 | 1 | |
Derivative Assets, Fair Value | 3,575 | 3,713 | |
Short-term investments, portion measured at fair value | 343 | 681 | |
Separate account assets, at fair value | 5,594 | 5,654 | |
Other assets | 0 | 0 | |
Fair value assets measured on recurring basis, total | 218,513 | 228,028 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 25 | 25 | |
Other policyholder funds | 0 | 0 | |
Derivative Liabilities, Fair Value | 3,590 | 4,405 | |
Long-term debt, portion measured at fair value | 3,093 | 3,357 | |
Other liabilities | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 6,708 | 7,787 | |
Recurring Basis | Level 2 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 2,349 | 2,328 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 2,481 | 3,039 | |
Recurring Basis | Level 2 | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 1,111 | 1,320 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 1,099 | 1,358 | |
Recurring Basis | Level 2 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 111 | 59 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 10 | 7 | |
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 | 4 | 6 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 0 | 1 | |
Recurring Basis | Level 2 | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 2,311 | 1,929 | |
Other bond securities | 2,931 | 2,939 | |
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 17,662 | 22,732 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 2 | Non-U.S. government | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 14,108 | 14,466 | |
Other bond securities | 50 | 51 | |
Recurring Basis | Level 2 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 128,251 | 131,047 | |
Other bond securities | 1,755 | 1,755 | |
Recurring Basis | Level 2 | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 18,800 | 20,468 | |
Other bond securities | 469 | 420 | |
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 12,606 | 12,231 | |
Other bond securities | 471 | 448 | |
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 8,345 | 8,578 | |
Other bond securities | 836 | 905 | |
Recurring Basis | Level 2 | Common Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 0 | 9 | |
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 | 28,381 | 29,971 | |
Other bond securities | 7,093 | 7,480 | |
Equity securities available for sale | 8 | 0 | |
Other equity securities | 0 | 0 | |
Mortgage and other loans receivable | 11 | 11 | |
Other invested assets | 180 | 204 | |
Derivative Assets, Fair Value | 81 | 76 | |
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 | 35,754 | 37,742 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 3,072 | 3,033 | |
Other policyholder funds | 0 | 0 | |
Derivative Liabilities, Fair Value | 361 | 385 | |
Long-term debt, portion measured at fair value | 58 | 71 | |
Other liabilities | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 3,491 | 3,489 | |
Recurring Basis | Level 3 | 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 | 32 | 38 | |
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 | 6 | 11 | |
Recurring Basis | Level 3 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 62 | 58 | |
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 | 2 | 2 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 317 | 331 | |
Recurring Basis | Level 3 | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 17 | 16 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 6 | 5 | |
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 | 2,041 | 2,040 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 3 | Non-U.S. government | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 16 | 17 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 3 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 1,079 | 1,133 | |
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 | 16,487 | 16,906 | |
Other bond securities | 1,502 | 1,605 | |
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 1,003 | 2,040 | |
Other bond securities | 65 | 155 | |
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 7,755 | 7,835 | |
Other bond securities | 5,508 | 5,703 | |
Recurring Basis | Level 3 | Common Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 8 | 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 | (1,269) | (1,265) | |
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 | (1,269) | (1,265) | |
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 | (1,269) | (1,265) | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative liabilities, Counterparty netting | (1,269) | (1,265) | |
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 | (1,414) | (903) | |
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 | (1,461) | (1,521) | |
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 | (1,414) | (903) | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative liabilities, Cash collateral | (1,461) | (1,521) | |
Recurring Basis | Total Fair Value | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 230,698 | 241,537 | |
Other bond securities | 13,605 | 13,998 | |
Equity securities available for sale | 2,099 | 2,078 | |
Other equity securities | 500 | 482 | |
Mortgage and other loans receivable | 11 | 11 | |
Other invested assets | 584 | 205 | |
Derivative Assets, Fair Value | 1,247 | 1,809 | |
Short-term investments, portion measured at fair value | 2,453 | 3,341 | |
Separate account assets, at fair value | 85,917 | 82,972 | |
Other assets | 0 | ||
Fair value assets measured on recurring basis, total | 337,114 | 346,433 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 3,097 | 3,058 | |
Other policyholder funds | 5 | 5 | |
Derivative Liabilities, Fair Value | 1,261 | 2,016 | |
Long-term debt, portion measured at fair value | 3,151 | 3,428 | |
Other liabilities | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 7,514 | 8,507 | |
Recurring Basis | Total Fair Value | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 2,349 | 2,328 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 2,515 | 3,077 | |
Recurring Basis | Total Fair Value | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 1,111 | 1,320 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 1,105 | 1,369 | |
Recurring Basis | Total Fair Value | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 447 | 305 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 48 | 19 | |
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 | 2 | 2 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 317 | 331 | |
Recurring Basis | Total Fair Value | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | 21 | 22 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | 6 | 6 | |
Recurring Basis | Total Fair Value | Counterparty netting and cash collateral | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value | (2,683) | (2,168) | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value | (2,730) | (2,786) | |
Recurring Basis | Total Fair Value | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 2,362 | 1,992 | |
Other bond securities | 2,931 | 2,939 | |
Recurring Basis | Total Fair Value | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 19,703 | 24,772 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Total Fair Value | Non-U.S. government | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 14,307 | 14,535 | |
Other bond securities | 50 | 51 | |
Recurring Basis | Total Fair Value | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 129,330 | 132,180 | |
Other bond securities | 1,773 | 1,772 | |
Recurring Basis | Total Fair Value | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 35,287 | 37,374 | |
Other bond securities | 1,971 | 2,025 | |
Recurring Basis | Total Fair Value | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 13,609 | 14,271 | |
Other bond securities | 536 | 603 | |
Recurring Basis | Total Fair Value | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 16,100 | 16,413 | |
Other bond securities | 6,344 | 6,608 | |
Recurring Basis | Total Fair Value | Common Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 986 | 1,065 | |
Recurring Basis | Total Fair Value | Preferred Stock | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | 825 | 752 | |
Recurring Basis | Total Fair Value | Mutual Funds | |||
Fair Value, Assets Measured on Recurring Basis | |||
Equity securities available for sale | $ 288 | $ 261 |
FAIR VALUE MEASUREMENTS (Deta46
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | $ 37,666 | $ 38,020 |
Net Realized and Unrealized Gains (Losses) Included in Income | 526 | 141 |
Other Comprehensive Income (Loss) | 192 | (531) |
Purchases, Sales, Issues and Settlements, Net | (1,820) | (299) |
Gross Transfers in, assets | 144 | 242 |
Gross Transfers out, assets | (1,035) | (635) |
Balance End of Period | 35,673 | 36,938 |
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 | 96 | (352) |
Liabilities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 3,413 | 3,028 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (81) | 904 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 78 | 120 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 3,410 | 4,052 |
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 | 11 | (29) |
Policyholder contract deposits | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 3,033 | 2,289 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (45) | 845 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 84 | 117 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 3,072 | 3,251 |
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 | (5) | 22 |
Derivative liabilities, net | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 309 | 556 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (48) | 57 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 19 | 4 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 280 | 617 |
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 | 18 | (49) |
Interest rate contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 38 | 50 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (3) | 4 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (3) | (6) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 32 | 48 |
Interest rate contracts | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 3 | (4) |
Foreign exchange contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 11 | 7 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 1 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (5) | 1 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 6 | 9 |
Foreign exchange contracts | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 0 | (1) |
Equity contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (58) | (54) |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (11) | 4 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 7 | (1) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | (62) | (51) |
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 | 5 | (4) |
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 | 329 | 505 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (15) | (6) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 1 | (9) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 315 | 490 |
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 | 11 | 14 |
Other contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (11) | 48 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (19) | 54 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 19 | 19 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | (11) | 121 |
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 | (1) | (54) |
Long-term debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 71 | 183 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 12 | 2 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (25) | (1) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 58 | 184 |
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) | (2) |
Bonds available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 29,971 | 28,817 |
Net Realized and Unrealized Gains (Losses) Included in Income | 298 | 300 |
Other Comprehensive Income (Loss) | 197 | (526) |
Purchases, Sales, Issues and Settlements, Net | (1,301) | 167 |
Gross Transfers in, assets | 144 | 177 |
Gross Transfers out, assets | (928) | (563) |
Balance End of Period | 28,381 | 28,372 |
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 | 2,040 | 2,124 |
Net Realized and Unrealized Gains (Losses) Included in Income | 2 | 0 |
Other Comprehensive Income (Loss) | (4) | 58 |
Purchases, Sales, Issues and Settlements, Net | 21 | 14 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (18) | 0 |
Balance End of Period | 2,041 | 2,196 |
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 | 17 | 32 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | (2) |
Purchases, Sales, Issues and Settlements, Net | (1) | 0 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 16 | 30 |
Bonds available for sale | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 1,133 | 1,370 |
Net Realized and Unrealized Gains (Losses) Included in Income | (4) | 1 |
Other Comprehensive Income (Loss) | (3) | (24) |
Purchases, Sales, Issues and Settlements, Net | (13) | 29 |
Gross Transfers in, assets | 136 | 121 |
Gross Transfers out, assets | (170) | (473) |
Balance End of Period | 1,079 | 1,024 |
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 | 16,906 | 16,537 |
Net Realized and Unrealized Gains (Losses) Included in Income | 289 | 245 |
Other Comprehensive Income (Loss) | 151 | (420) |
Purchases, Sales, Issues and Settlements, Net | (858) | (233) |
Gross Transfers in, assets | 8 | 33 |
Gross Transfers out, assets | (9) | 0 |
Balance End of Period | 16,487 | 16,162 |
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 | 2,040 | 2,585 |
Net Realized and Unrealized Gains (Losses) Included in Income | 5 | 42 |
Other Comprehensive Income (Loss) | 5 | (88) |
Purchases, Sales, Issues and Settlements, Net | (348) | (81) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (699) | (90) |
Balance End of Period | 1,003 | 2,368 |
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 7,835 | 6,169 |
Net Realized and Unrealized Gains (Losses) Included in Income | 6 | 12 |
Other Comprehensive Income (Loss) | 48 | (50) |
Purchases, Sales, Issues and Settlements, Net | (102) | 438 |
Gross Transfers in, assets | 0 | 23 |
Gross Transfers out, assets | (32) | 0 |
Balance End of Period | 7,755 | 6,592 |
Other bond securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 7,480 | 8,846 |
Net Realized and Unrealized Gains (Losses) Included in Income | 229 | (171) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (510) | (445) |
Gross Transfers in, assets | 0 | 65 |
Gross Transfers out, assets | (106) | (18) |
Balance End of Period | 7,093 | 8,277 |
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 | 96 | (352) |
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 | 0 |
Balance End of Period | 18 | 18 |
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 | 1,605 | 1,581 |
Net Realized and Unrealized Gains (Losses) Included in Income | 55 | (37) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (125) | (13) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (33) | (18) |
Balance End of Period | 1,502 | 1,513 |
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 | 24 | (45) |
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 | 155 | 193 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | (2) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (17) | (21) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (73) | 0 |
Balance End of Period | 65 | 170 |
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 | 1 | (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 | 5,703 | 7,055 |
Net Realized and Unrealized Gains (Losses) Included in Income | 173 | (133) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (368) | (411) |
Gross Transfers in, assets | 0 | 65 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 5,508 | 6,576 |
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 | 70 | (306) |
Equity securities available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 8 | 0 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 8 | 0 |
Equity securities available for sale | Common Stock | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 8 | 0 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 8 | 0 |
Mortgage and other loans receivable | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 11 | 11 |
Gross Transfers in, assets | 0 | |
Balance End of Period | 11 | 11 |
Other invested assets | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 204 | 332 |
Net Realized and Unrealized Gains (Losses) Included in Income | (1) | 11 |
Other Comprehensive Income (Loss) | (5) | (5) |
Purchases, Sales, Issues and Settlements, Net | (17) | (21) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (1) | (54) |
Balance End of Period | 180 | 263 |
Other invested assets | Trading Revenue | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Other equity securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 1 |
Purchases, Sales, Issues and Settlements, Net | 0 | 0 |
Gross Transfers in, assets | 0 | 0 |
Balance End of Period | 0 | 15 |
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 | $ 0 | $ 1 |
FAIR VALUE MEASUREMENTS (Deta47
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, 2017 | Mar. 31, 2016 | |
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 | $ 526 | $ 141 |
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 | (45) | 845 |
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 | (45) | 845 |
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 | (48) | 57 |
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 | 0 |
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 | (7) | 4 |
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 | (41) | 53 |
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 | 12 | 2 |
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 | 12 | 2 |
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 | 298 | 300 |
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 | 298 |
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 | 0 | 1 |
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 | 0 | 1 |
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 | 229 | (171) |
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 | 75 | (34) |
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 | 6 | 0 |
Other bond securities | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 148 | (137) |
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 | 0 | 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 | 0 | 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 | (1) | 11 |
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 | 0 | (2) |
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 | (3) | 51 |
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 | $ 2 | $ (38) |
FAIR VALUE MEASUREMENTS (Deta48
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issues and settlements) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, Sales, Issues and Settlements, Net, assets | $ (1,820) | $ (299) |
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 | (8) | (13) |
Transfers out Level 3 at end of reporting period, net gains (losses) included in realized and unrealized gains and losses related to Level 3 for the period. | 1 | (45) |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | (2) |
Sales, liabilities | 70 | 130 |
Settlements, liabilities | 8 | (8) |
Purchases, Sales, Issues and Settlements, Net, liabilities | 78 | 120 |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | 0 |
Sales, liabilities | 70 | 130 |
Settlements, liabilities | 14 | (13) |
Purchases, Sales, Issues and Settlements, Net, liabilities | 84 | 117 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | (2) |
Sales, liabilities | 0 | 0 |
Settlements, liabilities | 19 | 6 |
Purchases, Sales, Issues and Settlements, Net, liabilities | 19 | 4 |
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 | (25) | (1) |
Purchases, Sales, Issues and Settlements, Net, liabilities | (25) | (1) |
Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 535 | 1,350 |
Sales, assets | (495) | (203) |
Settlements, assets | (1,860) | (1,446) |
Purchases, Sales, Issues and Settlements, Net, assets | (1,820) | (299) |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 428 | 1,203 |
Sales, assets | (317) | (89) |
Settlements, assets | (1,412) | (947) |
Purchases, Sales, Issues and Settlements, Net, assets | (1,301) | 167 |
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 | 37 | 29 |
Sales, assets | (5) | 0 |
Settlements, assets | (11) | (15) |
Purchases, Sales, Issues and Settlements, Net, assets | 21 | 14 |
Bonds available for sale | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 1 |
Sales, assets | (1) | 0 |
Settlements, assets | 0 | (1) |
Purchases, Sales, Issues and Settlements, Net, assets | (1) | 0 |
Bonds available for sale | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 29 |
Sales, assets | 0 | 0 |
Settlements, assets | (13) | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | (13) | 29 |
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 | 339 | 503 |
Sales, assets | (244) | (58) |
Settlements, assets | (953) | (678) |
Purchases, Sales, Issues and Settlements, Net, assets | (858) | (233) |
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 | 39 | 102 |
Sales, assets | (67) | (31) |
Settlements, assets | (320) | (152) |
Purchases, Sales, Issues and Settlements, Net, assets | (348) | (81) |
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 | 13 | 539 |
Sales, assets | 0 | 0 |
Settlements, assets | (115) | (101) |
Purchases, Sales, Issues and Settlements, Net, assets | (102) | 438 |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 98 | 124 |
Sales, assets | (178) | (114) |
Settlements, assets | (430) | (455) |
Purchases, Sales, Issues and Settlements, Net, assets | (510) | (445) |
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 | 98 | 63 |
Sales, assets | (167) | (26) |
Settlements, assets | (56) | (50) |
Purchases, Sales, Issues and Settlements, Net, assets | (125) | (13) |
Other bond securities | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 53 |
Sales, assets | (11) | (71) |
Settlements, assets | (6) | (3) |
Purchases, Sales, Issues and Settlements, Net, assets | (17) | (21) |
Other bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 8 |
Sales, assets | 0 | (17) |
Settlements, assets | (368) | (402) |
Purchases, Sales, Issues and Settlements, Net, assets | (368) | (411) |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 8 | 0 |
Sales, assets | 0 | 0 |
Settlements, assets | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | 8 | 0 |
Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 14 |
Sales, assets | 0 | 0 |
Settlements, assets | 0 | (14) |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | 0 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1 | 9 |
Sales, assets | 0 | 0 |
Settlements, assets | (18) | (30) |
Purchases, Sales, Issues and Settlements, Net, assets | $ (17) | $ (21) |
FAIR VALUE MEASUREMENTS (Deta49
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, 2017 | Dec. 31, 2016 | |
Corporate debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 536 | $ 498 |
Corporate debt | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.16% | 3.41% |
Corporate debt | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 6.10% | 6.38% |
Corporate debt | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.63% | 4.90% |
Residential mortgage-backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 16,780 | $ 17,412 |
Residential mortgage-backed securities | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.17% | 3.28% |
Constant prepayment rate | 1.81% | 3.95% |
Loss severity | 48.00% | 47.51% |
Constant default rate | 3.20% | 3.28% |
Residential mortgage-backed securities | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.73% | 5.87% |
Constant prepayment rate | 9.65% | 6.54% |
Loss severity | 80.38% | 80.98% |
Constant default rate | 8.38% | 8.64% |
Residential mortgage-backed securities | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.45% | 4.57% |
Constant prepayment rate | 5.73% | 5.25% |
Loss severity | 64.19% | 64.24% |
Constant default rate | 5.79% | 5.96% |
Certain CDO/ABS | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 4,699 | $ 4,368 |
Certain CDO/ABS | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.38% | 3.67% |
Certain CDO/ABS | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.68% | 5.85% |
Certain CDO/ABS | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.53% | 4.76% |
Commercial mortgage backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 615 | $ 1,511 |
Commercial mortgage backed securities | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 2.32% | 0.48% |
Commercial mortgage backed securities | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 8.45% | 10.21% |
Commercial mortgage backed securities | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.38% | 5.34% |
Obligations of states, municipalities and political subdivisions | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,263 | $ 1,248 |
Obligations of states, municipalities and political subdivisions | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.97% | 4.12% |
Obligations of states, municipalities and political subdivisions | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.06% | 4.91% |
Obligations of states, municipalities and political subdivisions | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.51% | 4.52% |
FAIR VALUE MEASUREMENTS (Deta50
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, 2017 | Dec. 31, 2016 | |
Index Annuities | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 964 | $ 859 |
Index Annuities | Minimum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Mortality multiplier | 101.00% | 101.00% |
Lapse rates | 1.00% | 1.00% |
Index Annuities | Maximum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Mortality multiplier | 103.00% | 103.00% |
Lapse rates | 66.00% | 66.00% |
Index Life | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 414 | $ 381 |
Index Life | Minimum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Base lapse rates | 2.00% | 2.00% |
Mortality rates | 0.00% | 0.00% |
Index Life | Maximum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
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 | $ 1,671 | $ 1,777 |
Utilization rates | 100.00% | |
GMWB and GMAB | Minimum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 8.00% | 13.00% |
Base lapse rates | 0.50% | 0.50% |
Dynamic lapse rates | 30.00% | 30.00% |
Mortality multiplier | 42.00% | 42.00% |
Utilization rates | 100.00% | |
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 | 20.00% | 20.00% |
Dynamic lapse rates | 170.00% | 170.00% |
Mortality multiplier | 161.00% | 161.00% |
Utilization rates | 100.00% | |
Equity/Interest-rate Correlation | 40.00% | 40.00% |
FAIR VALUE MEASUREMENTS (Deta51
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, 2017 | Dec. 31, 2016 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 6,510 | $ 6,741 |
Unfunded Commitments | 1,320 | 1,279 |
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 | 2,195 | 2,254 |
Unfunded Commitments | $ 1,291 | 1,248 |
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 | 70.00% | |
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 | 17.00% | |
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 | 13.00% | |
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 | $ 1,355 | 1,424 |
Unfunded Commitments | 751 | 750 |
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 | 248 | 258 |
Unfunded Commitments | 196 | 208 |
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 | 126 | 137 |
Unfunded Commitments | 36 | 31 |
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 | 123 | 123 |
Unfunded Commitments | 43 | 44 |
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 | 343 | 312 |
Unfunded Commitments | 265 | 215 |
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 | 4,315 | 4,487 |
Unfunded Commitments | $ 29 | 31 |
Hedge fund investments redeemable monthly (as a percent) | 19.00% | |
Hedge fund investments redeemable quarterly (as a percent) | 44.00% | |
Hedge fund investments redeemable semi-annually (as a percent) | 11.00% | |
Hedge fund investments redeemable annually (as a percent) | 26.00% | |
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 67.00% | |
Hedge funds: | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investment redemption notice period (in days/years) | 180 days | |
Hedge funds: | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investment redemption notice period (in days/years) | 1 day | |
Event-driven | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 1,406 | 1,453 |
Unfunded Commitments | 8 | 9 |
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 | 1,391 | 1,429 |
Unfunded Commitments | 0 | 0 |
Macro | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 996 | 992 |
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 | 324 | 416 |
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 | 0 | 0 |
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 | 198 | 197 |
Unfunded Commitments | $ 14 | $ 14 |
FAIR VALUE MEASUREMENTS (Deta52
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, 2017 | Mar. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value option credit risk gains (losses) on liabilities | $ 3 | $ 5 |
Fair Value Option | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Options Changes in Fair Value Gain (loss) | 515 | (373) |
Fair Value Option | Long-term debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Options Changes in Fair Value Gain (loss) | (15) | (176) |
Fair Value Option | Other liabilities | ||
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) | 349 | 50 |
Fair Value Option | Alternative investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value Options Changes in Fair Value Gain (loss) | $ 181 | $ (247) |
FAIR VALUE MEASUREMENTS (Deta53
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, 2017 | Dec. 31, 2016 |
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 | 34,167 | 33,537 |
Mortgage and other loans receivable, Difference | 34,167 | 33,537 |
Long-term debt, Fair Value | 3,151 | 3,428 |
Long-term debt, Outstanding Principal Amount | 30,747 | 30,912 |
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 | 7 | 8 |
Mortgage and other loans receivable, Difference | 4 | 3 |
Long-term debt, Fair Value | 3,151 | 3,428 |
Long-term debt, Outstanding Principal Amount | 2,370 | 2,628 |
Long-term debt, Difference | $ 781 | $ 800 |
FAIR VALUE MEASUREMENTS (Deta54
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, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | $ 93 | $ 159 | |
Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 17 | 2 | |
Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 41 | 157 | |
Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 35 | $ 0 | |
Other assets | Held for sale [Member] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 35 | ||
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 | 181 | $ 1,102 | |
Level 3 | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 14 | 364 | |
Level 3 | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 167 | 736 | |
Level 3 | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 2 | |
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 | 181 | 1,102 | |
Total Fair Value | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 14 | 364 | |
Total Fair Value | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 167 | 736 | |
Total Fair Value | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | $ 2 | |
Total Fair Value | Other assets | Held for sale [Member] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | $ 179 |
FAIR VALUE MEASUREMENTS (Deta55
FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Mortgage and other loans receivable | $ 33,878 | $ 33,240 | ||
Short-term investments | 11,073 | 12,302 | ||
Cash | 1,918 | 1,868 | $ 1,499 | $ 1,629 |
Liabilities: | ||||
Other liabilities | 28,093 | 26,296 | ||
Long-term Debt | 30,747 | 30,912 | ||
Total Fair Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 34,366 | 33,736 | ||
Other invested assets | 2,333 | 3,008 | ||
Short-term investments | 8,620 | 8,961 | ||
Cash | 1,918 | 1,868 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 122,339 | 122,124 | ||
Other liabilities | 4,262 | 4,196 | ||
Long-term Debt | 26,314 | 26,450 | ||
Level 1 | ||||
Assets: | ||||
Mortgage and other loans receivable | 0 | 0 | ||
Other invested assets | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Cash | 1,918 | 1,868 | ||
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 | 160 | 161 | ||
Other invested assets | 617 | 955 | ||
Short-term investments | 8,620 | 8,961 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 350 | 382 | ||
Other liabilities | 4,262 | 4,196 | ||
Long-term Debt | 22,891 | 23,117 | ||
Level 3 | ||||
Assets: | ||||
Mortgage and other loans receivable | 34,206 | 33,575 | ||
Other invested assets | 1,716 | 2,053 | ||
Short-term investments | 0 | 0 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 121,989 | 121,742 | ||
Other liabilities | 0 | 0 | ||
Long-term Debt | 3,423 | 3,333 | ||
Carrying Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 33,867 | 33,229 | ||
Other invested assets | 2,732 | 3,474 | ||
Short-term investments | 8,620 | 8,961 | ||
Cash | 1,918 | 1,868 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 113,278 | 112,705 | ||
Other liabilities | 4,262 | 4,196 | ||
Long-term Debt | $ 27,596 | $ 27,484 |
INVESTMENTS (Details - Amortize
INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 222,233 | $ 233,938 |
Available for sale securities, Gross Unrealized Gains | 13,009 | 12,817 |
Available for sale securities, Gross Unrealized Losses | (2,445) | (3,140) |
Available-for-sale Securities | 232,797 | 243,615 |
AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,407 | 1,265 |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 220,629 | 232,241 |
Available for sale securities, Gross Unrealized Gains | 12,508 | 12,421 |
Available for sale securities, Gross Unrealized Losses | (2,439) | (3,125) |
Available-for-sale Securities | 230,698 | 241,537 |
Other details of available for sale securities | ||
Available for sale securities not rated or rated below investment grade | 32,800 | 33,600 |
Bonds available for sale | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,407 | 1,265 |
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 | 2,236 | 1,870 |
Available for sale securities, Gross Unrealized Gains | 149 | 148 |
Available for sale securities, Gross Unrealized Losses | (23) | (26) |
Available-for-sale Securities | 2,362 | 1,992 |
Bonds available for sale | U.S. government and government sponsored entities | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 0 | 0 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 18,877 | 24,025 |
Available for sale securities, Gross Unrealized Gains | 967 | 1,001 |
Available for sale securities, Gross Unrealized Losses | (141) | (254) |
Available-for-sale Securities | 19,703 | 24,772 |
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 | 0 | 0 |
Bonds available for sale | Non-U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 13,688 | 14,018 |
Available for sale securities, Gross Unrealized Gains | 757 | 773 |
Available for sale securities, Gross Unrealized Losses | (138) | (256) |
Available-for-sale Securities | 14,307 | 14,535 |
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 | 123,469 | 126,648 |
Available for sale securities, Gross Unrealized Gains | 7,290 | 7,271 |
Available for sale securities, Gross Unrealized Losses | (1,429) | (1,739) |
Available-for-sale Securities | 129,330 | 132,180 |
Bonds available for sale | Corporate debt | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 2 | (31) |
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 62,359 | 65,680 |
Available for sale securities, Gross Unrealized Gains | 3,345 | 3,228 |
Available for sale securities, Gross Unrealized Losses | (708) | (850) |
Available-for-sale Securities | 64,996 | 68,058 |
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 | 1,405 | 1,296 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 33,042 | 35,311 |
Available for sale securities, Gross Unrealized Gains | 2,648 | 2,541 |
Available for sale securities, Gross Unrealized Losses | (403) | (478) |
Available-for-sale Securities | 35,287 | 37,374 |
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 | 1,317 | 1,212 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 13,374 | 14,054 |
Available for sale securities, Gross Unrealized Gains | 392 | 409 |
Available for sale securities, Gross Unrealized Losses | (157) | (192) |
Available-for-sale Securities | 13,609 | 14,271 |
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 | 53 | 45 |
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 | 15,943 | 16,315 |
Available for sale securities, Gross Unrealized Gains | 305 | 278 |
Available for sale securities, Gross Unrealized Losses | (148) | (180) |
Available-for-sale Securities | 16,100 | 16,413 |
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 | 35 | 39 |
Equity securities available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 1,604 | 1,697 |
Available for sale securities, Gross Unrealized Gains | 501 | 396 |
Available for sale securities, Gross Unrealized Losses | (6) | (15) |
Available-for-sale Securities | 2,099 | 2,078 |
Equity securities available for sale | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 605 | 708 |
Available for sale securities, Gross Unrealized Gains | 386 | 369 |
Available for sale securities, Gross Unrealized Losses | (5) | (12) |
Available-for-sale Securities | 986 | 1,065 |
Equity securities available for sale | Preferred Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 749 | 748 |
Available for sale securities, Gross Unrealized Gains | 76 | 4 |
Available for sale securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 825 | 752 |
Equity securities available for sale | Mutual Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 250 | 241 |
Available for sale securities, Gross Unrealized Gains | 39 | 23 |
Available for sale securities, Gross Unrealized Losses | (1) | (3) |
Available-for-sale Securities | $ 288 | $ 261 |
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, 2017USD ($)item | Dec. 31, 2016USD ($) |
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | $ 47,236 | $ 57,397 |
Gross Unrealized Losses, Less than 12 Months | 1,506 | 1,943 |
Fair Value, 12 Months or More | 10,843 | 13,285 |
Gross Unrealized Losses, 12 Months or More | 939 | 1,197 |
Fair Value, Total | 58,079 | 70,682 |
Gross Unrealized Losses, Total | 2,445 | 3,140 |
Bonds available for sale | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 47,178 | 57,208 |
Gross Unrealized Losses, Less than 12 Months | 1,502 | 1,928 |
Fair Value, 12 Months or More | 10,823 | 13,285 |
Gross Unrealized Losses, 12 Months or More | 937 | 1,197 |
Fair Value, Total | 58,001 | 70,493 |
Gross Unrealized Losses, Total | $ 2,439 | 3,125 |
Number of securities in an unrealized loss position | item | 8,235 | |
Number of individual securities in continuous unrealized loss position for longer than twelve months | item | 1,478 | |
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 | $ 892 | 720 |
Gross Unrealized Losses, Less than 12 Months | 23 | 26 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 892 | 720 |
Gross Unrealized Losses, Total | 23 | 26 |
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 | 3,115 | 5,814 |
Gross Unrealized Losses, Less than 12 Months | 111 | 221 |
Fair Value, 12 Months or More | 239 | 231 |
Gross Unrealized Losses, 12 Months or More | 30 | 33 |
Fair Value, Total | 3,354 | 6,045 |
Gross Unrealized Losses, Total | 141 | 254 |
Bonds available for sale | Non-U.S. government | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 2,983 | 3,865 |
Gross Unrealized Losses, Less than 12 Months | 68 | 162 |
Fair Value, 12 Months or More | 463 | 489 |
Gross Unrealized Losses, 12 Months or More | 70 | 94 |
Fair Value, Total | 3,446 | 4,354 |
Gross Unrealized Losses, Total | 138 | 256 |
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 | 24,721 | 28,184 |
Gross Unrealized Losses, Less than 12 Months | 865 | 1,013 |
Fair Value, 12 Months or More | 4,832 | 6,080 |
Gross Unrealized Losses, 12 Months or More | 564 | 726 |
Fair Value, Total | 29,553 | 34,264 |
Gross Unrealized Losses, Total | 1,429 | 1,739 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 7,752 | 8,794 |
Gross Unrealized Losses, Less than 12 Months | 232 | 252 |
Fair Value, 12 Months or More | 3,363 | 4,045 |
Gross Unrealized Losses, 12 Months or More | 171 | 226 |
Fair Value, Total | 11,115 | 12,839 |
Gross Unrealized Losses, Total | 403 | 478 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 4,248 | 4,469 |
Gross Unrealized Losses, Less than 12 Months | 136 | 152 |
Fair Value, 12 Months or More | 333 | 479 |
Gross Unrealized Losses, 12 Months or More | 21 | 40 |
Fair Value, Total | 4,581 | 4,948 |
Gross Unrealized Losses, Total | 157 | 192 |
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 | 3,467 | 5,362 |
Gross Unrealized Losses, Less than 12 Months | 67 | 102 |
Fair Value, 12 Months or More | 1,593 | 1,961 |
Gross Unrealized Losses, 12 Months or More | 81 | 78 |
Fair Value, Total | 5,060 | 7,323 |
Gross Unrealized Losses, Total | 148 | 180 |
Equity securities available for sale | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 58 | 189 |
Gross Unrealized Losses, Less than 12 Months | 4 | 15 |
Fair Value, 12 Months or More | 20 | 0 |
Gross Unrealized Losses, 12 Months or More | 2 | 0 |
Fair Value, Total | 78 | 189 |
Gross Unrealized Losses, Total | $ 6 | 15 |
Number of securities in an unrealized loss position | item | 63 | |
Number of individual securities in continuous unrealized loss position for longer than twelve months | item | 6 | |
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 | $ 56 | 125 |
Gross Unrealized Losses, Less than 12 Months | 4 | 12 |
Fair Value, 12 Months or More | 17 | 0 |
Gross Unrealized Losses, 12 Months or More | 1 | 0 |
Fair Value, Total | 73 | 125 |
Gross Unrealized Losses, Total | 5 | 12 |
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 | 2 | 64 |
Gross Unrealized Losses, Less than 12 Months | 0 | 3 |
Fair Value, 12 Months or More | 3 | 0 |
Gross Unrealized Losses, 12 Months or More | 1 | 0 |
Fair Value, Total | 5 | 64 |
Gross Unrealized Losses, Total | $ 1 | $ 3 |
INVESTMENTS (Details - Amorti58
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 222,233 | $ 233,938 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 230,698 | 241,537 |
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 | 572 | 604 |
Due after one year through five years, Amortized Cost | 5,132 | 6,002 |
Due after five years through ten years, Amortized Cost | 12,546 | 16,045 |
Due after ten years, Amortized Cost | 20,726 | 25,007 |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 21,464 | 25,960 |
Available for sale securities, Amortized Cost, Total | 60,440 | 73,618 |
Due in one year or less, Fair Value | 566 | 581 |
Due after one year through five years, Fair Value | 5,016 | 5,841 |
Due after five years through ten years, Fair Value | 12,036 | 15,332 |
Due after ten years, Fair Value | 19,627 | 23,629 |
Mortgage-backed, asset-backed and collateralized, Fair Value | 20,756 | 25,110 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 58,001 | 70,493 |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | 7,064 | 7,796 |
Due after one year through five years, Amortized Cost | 47,682 | 49,200 |
Due after five years through ten years, Amortized Cost | 41,861 | 43,308 |
Due after ten years, Amortized Cost | 61,663 | 66,257 |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 62,359 | 65,680 |
Available for sale securities, Amortized Cost, Total | 220,629 | 232,241 |
Due in one year or less, Fair Value | 7,266 | 7,994 |
Due after one year through five years, Fair Value | 50,305 | 51,958 |
Due after five years through ten years, Fair Value | 42,976 | 44,226 |
Due after ten years, Fair Value | 65,155 | 69,301 |
Mortgage-backed, asset-backed and collateralized, Fair Value | 64,996 | 68,058 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | $ 230,698 | $ 241,537 |
INVESTMENTS (Details - Realized
INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | $ 350 | $ 219 |
Gross Realized Losses | 194 | 557 |
Aggregate fair value of available for sale securities sold | 15,800 | 6,100 |
Net realized capital gains (losses) | 156 | (338) |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | 333 | 187 |
Gross Realized Losses | 178 | 549 |
Equity securities available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | 17 | 32 |
Gross Realized Losses | $ 16 | $ 8 |
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, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 14,105 | $ 14,480 |
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 | $ 353 | $ 421 |
Fixed maturity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 13,605 | $ 13,998 |
Other Securities, Percent of Total | 96.00% | 97.00% |
Fixed maturity securities | U.S. government and government sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 2,931 | $ 2,939 |
Other Securities, Percent of Total | 21.00% | 20.00% |
Fixed maturity securities | Obligations of states, municipalities and political subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 0 | $ 0 |
Other Securities, Percent of Total | 0.00% | 0.00% |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 50 | $ 51 |
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 | $ 1,773 | $ 1,772 |
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 | $ 8,851 | $ 9,236 |
Other Securities, Percent of Total | 63.00% | 65.00% |
Fixed maturity securities | Residential mortgage-backed securities (RMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 1,971 | $ 2,025 |
Other Securities, Percent of Total | 14.00% | 14.00% |
Fixed maturity securities | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 536 | $ 603 |
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 | $ 6,344 | $ 6,608 |
Other Securities, Percent of Total | 45.00% | 47.00% |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 500 | $ 482 |
Other Securities, Percent of Total | 4.00% | 3.00% |
INVESTMENTS (Details - Carrying
INVESTMENTS (Details - Carrying values of other invested assets) - USD ($) $ in Millions | 72 Months Ended | ||||
Dec. 31, 2024 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Investment [Line Items] | |||||
Other invested assets | $ 23,652 | $ 24,538 | |||
Hedge Funds | |||||
Investment [Line Items] | |||||
Hedge Fund Fair Value Redemption, Percentage | 21.00% | 64.00% | 56.00% | ||
Hedge Fund Fair Value Redemption, Additional Percentage | 10.00% | ||||
Alternative investments | |||||
Investment [Line Items] | |||||
Other invested assets | 12,712 | $ 13,379 | |||
Alternative investments | Hedge Funds | |||||
Investment [Line Items] | |||||
Other invested assets | 6,900 | 7,200 | |||
Alternative investments | Private equity funds | |||||
Investment [Line Items] | |||||
Other invested assets | 5,200 | 5,500 | |||
Alternative investments | Affordable Housing Partnerships | |||||
Investment [Line Items] | |||||
Other invested assets | 578 | 625 | |||
Investment real estate | |||||
Investment [Line Items] | |||||
Other invested assets | 7,057 | 6,900 | |||
Net of accumulated depreciation on investment in real estate | 362 | 451 | |||
Aircraft asset investments | |||||
Investment [Line Items] | |||||
Other invested assets | 281 | 321 | |||
Investments in life settlements | |||||
Investment [Line Items] | |||||
Other invested assets | 2,105 | 2,516 | |||
All other investments | |||||
Investment [Line Items] | |||||
Other invested assets | $ 1,497 | $ 1,422 |
INVESTMENTS (Details - Componen
INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Investment [Line Items] | ||
Total investment income | $ 3,812 | $ 3,127 |
Investment expenses | 126 | 114 |
Net investment income | 3,686 | 3,013 |
Fixed maturity securities, including short-term investments | ||
Investment [Line Items] | ||
Total investment income | 2,801 | 2,936 |
Equity securities | ||
Investment [Line Items] | ||
Total investment income | 5 | (22) |
Interest on mortgage and other loans | ||
Investment [Line Items] | ||
Total investment income | 393 | 389 |
Alternative investments | ||
Investment [Line Items] | ||
Total investment income | 448 | (366) |
Real estate | ||
Investment [Line Items] | ||
Total investment income | 49 | 53 |
Other investments | ||
Investment [Line Items] | ||
Total investment income | $ 116 | $ 137 |
INVESTMENTS (Details - Compon63
INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other-than-temporary impairments: | ||
Severity | $ 0 | $ (2) |
Change in intent | (1) | (29) |
Foreign currency declines | (10) | (6) |
Issuer-specific credit events | (57) | (131) |
Adverse projected cash flows | 0 | (36) |
Provision for loan losses | 6 | 30 |
Foreign exchange transactions | 159 | (520) |
Derivative and hedge accounting | (376) | (72) |
Impairments on investments in life settlements | (41) | (157) |
Other | 49 | 155 |
Total net realized capital gains (losses) | (115) | (1,106) |
Net realized capital gains (losses) | (115) | (1,106) |
Prudential Financial | ||
Other-than-temporary impairments: | ||
Total net realized capital gains (losses) | 107 | |
Net realized capital gains (losses) | 107 | |
Fixed maturity securities | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | 155 | (362) |
Equity securities | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | $ 1 | $ 24 |
INVESTMENTS (Details - Increase
INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $ 833 | $ 4,535 |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | 773 | 4,778 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | 114 | (95) |
Other investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $ (54) | $ (148) |
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, 2017 | Mar. 31, 2016 | |
Other Than Temporary Impairment Credit Losses Recognized in Earnings | ||
Balance, beginning of year | $ 1,098 | $ 1,747 |
Increases due to: | ||
Credit impairments on new securities subject to impairment losses | 17 | 110 |
Additional credit impairments on previously impaired securities | 30 | 55 |
Reductions due to: | ||
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell | (11) | (150) |
Accretion on securities previously impaired due to credit | (188) | (239) |
Other | 0 | 0 |
Balance, end of year | $ 946 | $ 1,523 |
INVESTMENTS (Details - Purchase
INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost | $ 220,629 | $ 232,241 | |
Fair value | 232,797 | 243,615 | |
Purchased Credit Impaired (PCI) Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Contractually required payments (principal and interest) | 36,159 | ||
Cash flows expected to be collected | 29,575 | ||
Recorded investment in acquired securities | 19,884 | ||
Outstanding principal balance | 16,270 | 16,728 | |
Amortized cost | 11,649 | 11,987 | |
Fair value | 12,754 | $ 12,922 | |
Changes in activity for the accretable yield on PCI securities: | |||
Balance, beginning of period | 7,498 | $ 6,846 | |
Newly purchased PCI securities | 88 | 206 | |
Disposals | (18) | 0 | |
Accretion | (210) | (214) | |
Effect of changes in interest rate indices | 21 | (299) | |
Net reclassification from non-accretable difference, including effects of prepayments | 214 | 83 | |
Balance, end of period | $ 7,593 | $ 6,622 |
INVESTMENTS (Details - Pledged
INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Fair value of securities collateral pledged | $ 1,459 | $ 1,434 |
Fair value of amount sold or repledged | 14 | 11 |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 5,100 | 4,900 |
Short-term investments held in escrow | 545 | 523 |
FHLBs | ||
Investment [Line Items] | ||
Fair value of fixed maturities securities available for sale | 4,500 | 3,400 |
Amount owned by subsidiaries | 116 | 114 |
Residential loans pledged as collateral | 116 | 17 |
Secured financing | ||
Investment [Line Items] | ||
Fair value of fixed maturities securities available for sale | 2,405 | 2,389 |
Fair value of other bond securities | 1,776 | 1,799 |
Amounts Borrowed Under Repurchase and Securities Lending Agreements | 4,300 | 4,200 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,776 | 1,799 |
Securities Lending Agreements, Fair Value of Collateral | 2,405 | 2,389 |
Secured financing | U.S. government and government sponsored entities | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | Overnight and continuous | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Up to 30 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 377 | 163 |
Securities Lending Agreements, Fair Value of Collateral | 439 | 812 |
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 | 842 | 860 |
Securities Lending Agreements, Fair Value of Collateral | 1,598 | 1,577 |
Secured financing | 91 to 364 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 557 | 776 |
Securities Lending Agreements, Fair Value of Collateral | 368 | 0 |
Secured financing | 365 Days or Greater | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 21 | |
Secured financing | Bonds available for sale | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Securities Lending Agreements, Fair Value of Collateral | 52 | 50 |
Secured financing | Bonds available for sale | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 2,353 | 2,257 |
Secured financing | Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 61 |
Secured financing | Bonds available for sale | Up to 30 Days | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 21 | |
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 | 0 | |
Secured financing | Bonds available for sale | Up to 30 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 439 | 791 |
Secured financing | Bonds available for sale | Up to 30 Days | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | Up to 30 Days | Commercial mortgage-backed securities (CMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 61 | |
Secured financing | Bonds available for sale | 31 to 90 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 50 |
Secured financing | Bonds available for sale | 31 to 90 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 1,598 | 1,466 |
Secured financing | Bonds available for sale | 31 to 90 Days | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 52 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 316 | |
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 | 0 | 0 |
Secured financing | Bonds available for sale | 91 to 364 Days | Commercial mortgage-backed securities (CMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | 365 Days or Greater | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 51 | 51 |
Secured financing | Other bond securities | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,725 | 1,748 |
Secured financing | Other bond securities | U.S. government and government sponsored entities | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Overnight and continuous | U.S. government and government sponsored entities | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Up to 30 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 377 | 163 |
Secured financing | Other bond securities | Up to 30 Days | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | 31 to 90 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 51 | |
Secured financing | Other bond securities | 31 to 90 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 791 | 860 |
Secured financing | Other bond securities | 31 to 90 Days | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
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 | 0 | 51 |
Secured financing | Other bond securities | 91 to 364 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 557 | 725 |
Secured financing | Other bond securities | 91 to 364 Days | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | 365 Days or Greater | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
GIAs | ||
Investment [Line Items] | ||
Fair value of other bond securities | $ 2,200 | $ 2,200 |
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, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 34,167 | $ 33,537 | ||
Allowance for losses | (289) | (297) | $ (277) | $ (308) |
Mortgage and other loans receivable, net | 33,878 | 33,240 | ||
Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 25,995 | 25,042 | ||
Allowance for losses | $ (207) | $ (194) | $ (166) | $ (171) |
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% | 24.00% | ||
Residential Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 4,401 | $ 3,828 | ||
Life insurance policy loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 2,324 | 2,367 | ||
Commercial loans, other loans and notes receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 1,447 | $ 2,300 |
LENDING ACTIVITIES (Details -69
LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commercial Mortgage Recorded Investment [Line Items] | ||||
Mortgage and other loans receivable, net | $ 33,878 | $ 33,240 | ||
Allowance for credit losses | 289 | 297 | $ 277 | $ 308 |
Total mortgage and other loans receivable | 34,167 | 33,537 | ||
Apartments | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 6,305 | 6,005 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Allowance for credit losses, Specific | 0 | 0 | ||
Allowance for credit losses, General | 44 | 35 | ||
Allowance for credit losses | 44 | 35 | ||
Total mortgage and other loans receivable | 6,305 | 6,005 | ||
Offices | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 8,109 | 7,830 | ||
Restructured | 134 | 134 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Allowance for credit losses, Specific | 5 | 3 | ||
Allowance for credit losses, General | 72 | 72 | ||
Allowance for credit losses | 77 | 75 | ||
Total mortgage and other loans receivable | 8,243 | 7,964 | ||
Retail | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 4,993 | 5,179 | ||
Restructured | 18 | 18 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Allowance for credit losses, Specific | 1 | 1 | ||
Allowance for credit losses, General | 46 | 41 | ||
Allowance for credit losses | 47 | 42 | ||
Total mortgage and other loans receivable | 5,011 | 5,197 | ||
Industrial | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 2,196 | 1,898 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Allowance for credit losses, Specific | 0 | 6 | ||
Allowance for credit losses, General | 9 | 7 | ||
Allowance for credit losses | 9 | 13 | ||
Total mortgage and other loans receivable | 2,196 | 1,898 | ||
Hotel | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 2,261 | 2,373 | ||
Restructured | 16 | 16 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Allowance for credit losses, Specific | 1 | 1 | ||
Allowance for credit losses, General | 13 | 13 | ||
Allowance for credit losses | 14 | 14 | ||
Total mortgage and other loans receivable | 2,277 | 2,389 | ||
Others | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,963 | 1,589 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Allowance for credit losses, Specific | 0 | 0 | ||
Allowance for credit losses, General | 16 | 15 | ||
Allowance for credit losses | 16 | 15 | ||
Total mortgage and other loans receivable | $ 1,963 | $ 1,589 | ||
Commercial mortgages | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Number of loans in good standing | loan | 790 | 784 | ||
Number of loans restructured | loan | 4 | 4 | ||
Number of loans 90 days or less delinquent | loan | 0 | 0 | ||
Number of loans greater than 90 days delinquent or in process of foreclosure | loan | 0 | 0 | ||
Number of Loans | loan | 794 | 788 | ||
In good standing | $ 25,827 | $ 24,874 | ||
Restructured | 168 | 168 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Allowance for credit losses, Specific | 7 | 11 | ||
Allowance for credit losses, General | 200 | 183 | ||
Allowance for credit losses | $ 207 | $ 194 | ||
Percentage of loans that are current as to payments of principal and interest | 99.00% | 99.00% | ||
Percentage restructured | 1.00% | 1.00% | ||
Percentage 90 days or less delinquent | 0.00% | |||
Percentage greater than 90 days delinquent or in foreclosure | 0.00% | 0.00% | ||
Percentage Total | 100.00% | 100.00% | ||
Percentage of loans with valuation allowance, Genaral | 1.00% | 1.00% | ||
Percentage of loans with allowance for losses | 1.00% | 1.00% | ||
Percentage of current commercial mortgages held | 100.00% | |||
Total mortgage and other loans receivable | $ 25,995 | $ 25,042 | ||
Commercial mortgages | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 22,855 | 21,661 | ||
Commercial mortgages | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 2,636 | 2,835 | ||
Commercial mortgages | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 504 | 546 | ||
Commercial mortgages | Less than 65% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 17,175 | 15,924 | ||
Commercial mortgages | Less than 65% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 15,636 | 13,998 | ||
Commercial mortgages | Less than 65% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,309 | 1,694 | ||
Commercial mortgages | Less than 65% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 230 | 232 | ||
Commercial mortgages | 65% to 75% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 6,560 | 6,583 | ||
Commercial mortgages | 65% to 75% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 5,842 | 5,946 | ||
Commercial mortgages | 65% to 75% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 656 | 575 | ||
Commercial mortgages | 65% to 75% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 62 | 62 | ||
Commercial mortgages | 76% to 80% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,096 | 1,467 | ||
Commercial mortgages | 76% to 80% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 881 | 1,246 | ||
Commercial mortgages | 76% to 80% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 133 | 174 | ||
Commercial mortgages | 76% to 80% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 82 | 47 | ||
Commercial mortgages | Greater than 80% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,164 | 1,068 | ||
Commercial mortgages | Greater than 80% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 496 | 471 | ||
Commercial mortgages | Greater than 80% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 538 | 392 | ||
Commercial mortgages | Greater than 80% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | $ 130 | $ 205 |
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, 2017 | Mar. 31, 2016 | |
Changes in the allowance for losses on Mortgage and other loans receivable | ||
Allowance, beginning of year | $ 297 | $ 308 |
Loans charged off | 0 | (11) |
Recoveries of loans previously charged off | 0 | 11 |
Net charge-offs | 0 | 0 |
Provision for loan losses | (8) | (31) |
Other | 0 | 0 |
Allowance, end of period | 289 | 277 |
Loans modified in a troubled debt restructuring | 0 | 0 |
Commercial mortgages | ||
Changes in the allowance for losses on Mortgage and other loans receivable | ||
Allowance, beginning of year | 194 | 171 |
Loans charged off | 0 | (11) |
Recoveries of loans previously charged off | 0 | 11 |
Net charge-offs | 0 | 0 |
Provision for loan losses | 13 | (5) |
Other | 0 | 0 |
Allowance, end of period | 207 | 166 |
Allowance related to individually assessed credit losses | 7 | 12 |
Commercial mortgage loans | 266 | 298 |
Other Loans | ||
Changes in the allowance for losses on Mortgage and other loans receivable | ||
Allowance, beginning of year | 103 | 137 |
Loans charged off | 0 | 0 |
Recoveries of loans previously charged off | 0 | 0 |
Net charge-offs | 0 | 0 |
Provision for loan losses | (21) | (26) |
Other | 0 | 0 |
Allowance, end of period | $ 82 | $ 111 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Bonds available for sale | $ 230,698,000,000 | $ 241,537,000,000 |
Other bond securities | 13,605,000,000 | 13,998,000,000 |
Mortgage and other loans receivable | 33,878,000,000 | 33,240,000,000 |
Other invested assets | 23,652,000,000 | 24,538,000,000 |
Liabilities: | ||
Long-term Debt | 30,747,000,000 | 30,912,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 23,652,000,000 | 24,538,000,000 |
Held for sale [Member] | ||
Assets: | ||
Mortgage and other loans receivable | 121,000,000 | 137,000,000 |
Other invested assets | 244,000,000 | 2,000,000 |
Liabilities: | ||
Long-term Debt | 108,000,000 | 0 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 244,000,000 | 2,000,000 |
Real Estate and Investment Funds | ||
Liabilities: | ||
Off-balance sheet exposure | 93,000,000 | 106,000,000 |
Consolidated VIE | ||
Assets: | ||
Bonds available for sale | 9,534,000,000 | 10,233,000,000 |
Other bond securities | 5,019,000,000 | 5,129,000,000 |
Mortgage and other loans receivable | 1,328,000,000 | 1,547,000,000 |
Other invested assets | 4,452,000,000 | 4,222,000,000 |
Other assets | 1,987,000,000 | 1,995,000,000 |
Total assets | 22,320,000,000 | 23,126,000,000 |
Liabilities: | ||
Long-term Debt | 3,053,000,000 | 2,973,000,000 |
Other liabilities | 564,000,000 | 677,000,000 |
Total liabilities | 3,617,000,000 | 3,650,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 4,452,000,000 | 4,222,000,000 |
Consolidated VIE | Real Estate and Investment Funds | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 0 | 0 |
Mortgage and other loans receivable | 0 | 1,000,000 |
Other invested assets | 1,029,000,000 | 1,052,000,000 |
Other assets | 244,000,000 | 365,000,000 |
Total assets | 1,273,000,000 | 1,418,000,000 |
Liabilities: | ||
Long-term Debt | 428,000,000 | 444,000,000 |
Other liabilities | 94,000,000 | 224,000,000 |
Total liabilities | 522,000,000 | 668,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 1,029,000,000 | 1,052,000,000 |
Consolidated VIE | Securitization Vehicles | ||
Assets: | ||
Bonds available for sale | 9,534,000,000 | 10,233,000,000 |
Other bond securities | 4,751,000,000 | 4,858,000,000 |
Mortgage and other loans receivable | 1,328,000,000 | 1,442,000,000 |
Other invested assets | 281,000,000 | 321,000,000 |
Other assets | 1,158,000,000 | 1,104,000,000 |
Total assets | 17,052,000,000 | 17,958,000,000 |
Liabilities: | ||
Long-term Debt | 682,000,000 | 771,000,000 |
Other liabilities | 215,000,000 | 203,000,000 |
Total liabilities | 897,000,000 | 974,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 281,000,000 | 321,000,000 |
Total assets of consolidated securitization vehicles owed to Parent or its subsidiaries | 17,000,000,000 | 17,300,000,000 |
Consolidated VIE | Structured Investment Vehicles | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 263,000,000 | 266,000,000 |
Mortgage and other loans receivable | 0 | 0 |
Other invested assets | 0 | 0 |
Other assets | 59,000,000 | 50,000,000 |
Total assets | 322,000,000 | 316,000,000 |
Liabilities: | ||
Long-term Debt | 58,000,000 | 56,000,000 |
Other liabilities | 1,000,000 | 1,000,000 |
Total liabilities | 59,000,000 | 57,000,000 |
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 | 3,118,000,000 | 2,821,000,000 |
Other assets | 436,000,000 | 384,000,000 |
Total assets | 3,554,000,000 | 3,205,000,000 |
Liabilities: | ||
Long-term Debt | 1,880,000,000 | 1,696,000,000 |
Other liabilities | 217,000,000 | 211,000,000 |
Total liabilities | 2,097,000,000 | 1,907,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 3,118,000,000 | 2,821,000,000 |
Consolidated VIE | Other | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 5,000,000 | 5,000,000 |
Mortgage and other loans receivable | 0 | 104,000,000 |
Other invested assets | 24,000,000 | 28,000,000 |
Other assets | 90,000,000 | 92,000,000 |
Total assets | 119,000,000 | 229,000,000 |
Liabilities: | ||
Long-term Debt | 5,000,000 | 6,000,000 |
Other liabilities | 37,000,000 | 38,000,000 |
Total liabilities | 42,000,000 | 44,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 24,000,000 | 28,000,000 |
Unconsolidated VIE | ||
Assets: | ||
Other invested assets | 11,100,000,000 | 11,700,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 408,129,000,000 | 416,665,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 11,564,000,000 | 12,114,000,000 |
Maximum Exposure to Loss, Off-Balance Sheet | 3,247,000,000 | 3,160,000,000 |
Total maximum exposure to loss | 14,811,000,000 | 15,274,000,000 |
Other invested assets | 11,100,000,000 | 11,700,000,000 |
Unconsolidated VIE | Real Estate and Investment Funds | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 401,264,000,000 | 409,087,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 10,517,000,000 | 11,015,000,000 |
Maximum Exposure to Loss, Off-Balance Sheet | 2,072,000,000 | 2,115,000,000 |
Total maximum exposure to loss | 12,589,000,000 | 13,130,000,000 |
Unconsolidated VIE | Affordable Housing Partnerships | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 4,407,000,000 | 4,709,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 758,000,000 | 785,000,000 |
Maximum Exposure to Loss, Off-Balance Sheet | 0 | 0 |
Total maximum exposure to loss | 758,000,000 | 785,000,000 |
Unconsolidated VIE | Other | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 2,458,000,000 | 2,869,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 289,000,000 | 314,000,000 |
Maximum Exposure to Loss, Off-Balance Sheet | 1,175,000,000 | 1,045,000,000 |
Total maximum exposure to loss | $ 1,464,000,000 | $ 1,359,000,000 |
DERIVATIVES AND HEDGE ACCOUNT72
DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | $ 131,327 | $ 115,897 |
Gross Derivative Assets, Fair Value | 3,930 | 3,977 |
Gross Derivative Liabilities, Notional Amount | 43,232 | 64,938 |
Gross Derivative Liabilities, Fair Value | 3,991 | 4,802 |
Derivative assets, Counterparty netting | (1,269) | (1,265) |
Derivative assets, Cash collateral | (1,414) | (903) |
Total derivative assets on consolidated balance sheet | 1,247 | 1,809 |
Derivative liabilities, Counterparty netting | (1,269) | (1,265) |
Derivative liabilities, Cash collateral | (1,461) | (1,521) |
Total derivative liabilities on consolidated balance sheet | 1,261 | 2,016 |
Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Fair Value | 0 | 0 |
Gross Derivative Liabilities, Fair Value | 3,100 | 3,100 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 155 | 175 |
Gross Derivative Assets, Fair Value | 1 | 0 |
Gross Derivative Liabilities, Notional Amount | 761 | 782 |
Gross Derivative Liabilities, Fair Value | 11 | 11 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 4,353 | 3,527 |
Gross Derivative Assets, Fair Value | 340 | 385 |
Gross Derivative Liabilities, Notional Amount | 2,361 | 2,602 |
Gross Derivative Liabilities, Fair Value | 71 | 184 |
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 | 119 | 113 |
Gross Derivative Liabilities, Fair Value | 9 | 7 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 59,814 | 51,030 |
Gross Derivative Assets, Fair Value | 2,348 | 2,328 |
Gross Derivative Liabilities, Notional Amount | 27,134 | 44,211 |
Gross Derivative Liabilities, Fair Value | 2,504 | 3,066 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 6,383 | 9,468 |
Gross Derivative Assets, Fair Value | 771 | 935 |
Gross Derivative Liabilities, Notional Amount | 9,268 | 7,674 |
Gross Derivative Liabilities, Fair Value | 1,034 | 1,185 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 21,506 | 14,060 |
Gross Derivative Assets, Fair Value | 447 | 305 |
Gross Derivative Liabilities, Notional Amount | 2,703 | 8,633 |
Gross Derivative Liabilities, Fair Value | 39 | 12 |
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 | 3 | 4 |
Gross Derivative Assets, Fair Value | 2 | 2 |
Gross Derivative Liabilities, Notional Amount | 825 | 861 |
Gross Derivative Liabilities, Fair Value | 317 | 331 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 39,113 | 37,633 |
Gross Derivative Assets, Fair Value | 21 | 22 |
Gross Derivative Liabilities, Notional Amount | 61 | 62 |
Gross Derivative Liabilities, Fair Value | $ 6 | $ 6 |
DERIVATIVES AND HEDGE ACCOUNT73
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Derivative Liabilities, Notional Amount | $ 43,232 | $ 64,938 |
Derivative Liabilities, Fair Value | 3,991 | 4,802 |
Collateral | ||
Collateral posted to third parties for derivative transactions | 3,600 | 4,500 |
Collateral obtained from third parties for derivative transactions | 1,400 | 1,500 |
Global Capital Markets (GCM) derivatives | ||
Derivative [Line Items] | ||
Derivative Liabilities, Notional Amount | 774 | 801 |
Derivative Liabilities, Fair Value | $ 299 | $ 308 |
DERIVATIVES AND HEDGE ACCOUNT74
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $ (42) | $ (5) |
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 | 0 | 2 |
Gain (loss) recognized in earnings for ineffective portion | 0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 2 |
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 | 0 |
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 | Foreign exchange contracts | Fair value hedging | Net realized capital gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 52 | 34 |
Gain (loss) recognized in earnings on hedged items | (42) | (64) |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 10 | (29) |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | (1) |
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 | 0 | |
Gain (loss) recognized in earnings for ineffective portion | 0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | 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 | 1 | 7 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 1 | 7 |
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 | 0 |
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 | Equity contracts | Fair value hedging | Net realized capital gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (2) | 10 |
Gain (loss) recognized in earnings on hedged items | 0 | (12) |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | (2) | (2) |
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 | (333) | (139) |
Derivatives not designated as hedging instruments | Net realized capital gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (384) | (35) |
Derivatives not designated as hedging instruments | Net investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (2) | (1) |
Derivatives not designated as hedging instruments | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 33 | (130) |
Derivatives not designated as hedging instruments | Policy fees | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 20 | 20 |
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 0 | 7 |
Derivatives not designated as hedging instruments | Fair value hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (333) | (139) |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (152) | 770 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (46) | (28) |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | (314) | (131) |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 0 | 0 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 15 | 6 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | 18 | 16 |
Derivatives not designated as hedging instruments | Embedded derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in earnings on derivatives | $ 146 | $ (772) |
DERIVATIVES AND HEDGE ACCOUNT75
DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Credit Derivatives [Line Items] | ||
Collateral posted | $ 3,600 | $ 4,500 |
Fair value of hybrid securities | 4,600 | 4,800 |
Par value of hybrid securities | 9,900 | 10,100 |
Credit Risk Related Contingent Features [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral posted | 3,000 | 4,000 |
Aggregate fair value of net liability position | 2,300 | $ 3,000 |
Additional collateral postings and termination payments | $ 122 | |
Global Capital Markets (GCM) derivatives | Super Senior CDS | Arbitrage | Multi-sector CDOs | ||
Credit Derivatives [Line Items] | ||
Derivative weighted average maturity | 6 years |
INSURANCE LIABILITIES (Details
INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | |||||
Collateral Held For Deductible Recoverable Amounts | $ 9,800 | $ 9,700 | |||
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | |||||
Liability for unpaid claims and claims adjustment expense, balance at the beginning of the year | $ 77,077 | $ 74,942 | |||
Reinsurance recoverable, balance at the beginning of the year | (15,532) | (14,339) | |||
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | 61,545 | 60,603 | |||
Foreign exchange effect | (105) | (160) | |||
Dispositions | 0 | 0 | |||
Retroactive reinsurance adjustment | (11,199) | $ 0 | |||
Total | 50,241 | 60,443 | |||
Losses and loss expenses incurred | |||||
Current year | 4,300 | 4,912 | |||
Prior years, other than accretion of discount | 25 | (66) | |||
Prior years, accretion of discount | (25) | (9) | |||
Total | 4,300 | 4,837 | |||
Losses and loss expenses paid | |||||
Current year | (571) | (580) | |||
Prior years | (4,753) | (4,966) | |||
Total | (5,324) | (5,546) | |||
Reclassified to liabilities held for sale | 87 | 0 | |||
Net liability for unpaid claims and claims adjustment expense, balance at the end of the year | 49,130 | 59,734 | |||
Reinsurance recoverable, balance at the end of the year | 26,920 | 14,212 | |||
Total, balance at the end of the year | 76,050 | 73,946 | |||
Net Loss Reserves | $ 61,545 | $ 59,734 | $ 49,130 | $ 61,545 | $ 59,734 |
INSURANCE LIABILITIES (Detail77
INSURANCE LIABILITIES (Details - Narratives) - USD ($) $ in Millions | Jan. 20, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Insurance Liabilities Disclosure [Line Items] | |||||
Collateral Held For Deductible Recoverable Amounts | $ 9,800 | $ 9,700 | |||
Prior Year Development | 25 | $ (66) | |||
Liability for Claims and Claims Adjustment Expense | 76,050 | 73,946 | 77,077 | $ 74,942 | |
Net Loss Reserves | 49,130 | 59,734 | 61,545 | $ 60,603 | |
Consideration paid | $ 10,200 | ||||
Contractual deductible recoverable amount | 12,800 | ||||
Discounting Of Loss Reserves [Abstract] | |||||
Loss Reserve Discount | $ 1,940 | 3,570 | |||
Tabular Discount Rate | 3.50% | ||||
Workers Compensation Tabular Discount Amount | $ 491 | ||||
Workers Compensation Non Tabular Discount Amount | 1,500 | ||||
Increase (Decrease) in Loss Reserve Discount | $ 25 | 9 | |||
New York | |||||
Discounting Of Loss Reserves [Abstract] | |||||
Non Tabular Discount Rate | 5.00% | ||||
Pennsylvania | Accident Year 2001 And prior | |||||
Discounting Of Loss Reserves [Abstract] | |||||
Non Tabular Discount Rate | 6.00% | ||||
Legacy Property And Casualty Run Off Insurance Lines [Member] | |||||
Discounting Of Loss Reserves [Abstract] | |||||
Loss Reserve Discount | $ 989 | $ 987 | |||
Increase (Decrease) in Loss Reserve Discount | $ 2 | $ (17) |
INSURANCE LIABILITIES (Detail78
INSURANCE LIABILITIES (Details - Discounting of Reserves) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Discounting of Reserves [Line Items] | |||
Tabular Discount Rate | 3.50% | ||
Workers Compensation Tabular Discount Amount | $ 491 | ||
Workers Compensation Non Tabular Discount Amount | 1,500 | ||
U.S. Workers' compensation | 3,595 | $ 3,570 | |
Retroactive Reinsurance | (1,655) | ||
Net loss reserve discount | 1,940 | 3,570 | |
Current accident year | 32 | $ 48 | |
Accretion and other adjustments to prior year discount | (64) | (28) | |
Effect of interest rate changes | 57 | (11) | |
Net reserve discount benefit (charge) | 25 | 9 | |
Change in discount on loss reserves ceded under retroactive reinsurance | (1,655) | 0 | |
Net change in total reserve discount | (1,630) | 9 | |
U.S Workers' compensation | (1,630) | 10 | |
Asbestos | 0 | (1) | |
U.S. Workers Compensation [Member] | |||
Discounting of Reserves [Line Items] | |||
Accretion and other adjustments to prior year discount | (27) | ||
US Liability And Financial Lines [Member] | |||
Discounting of Reserves [Line Items] | |||
U.S. Workers' compensation | 2,606 | 2,583 | |
Retroactive Reinsurance | (1,655) | ||
Net loss reserve discount | 951 | 2,583 | |
Current accident year | 32 | 48 | |
Accretion and other adjustments to prior year discount | (48) | (14) | |
Effect of interest rate changes | 39 | (8) | |
Net reserve discount benefit (charge) | 23 | 26 | |
Change in discount on loss reserves ceded under retroactive reinsurance | (1,655) | 0 | |
Net change in total reserve discount | (1,632) | 26 | |
U.S Workers' compensation | (1,632) | 26 | |
Asbestos | 0 | 0 | |
Legacy Property And Casualty Run Off Insurance Lines [Member] | |||
Discounting of Reserves [Line Items] | |||
U.S. Workers' compensation | 989 | 987 | |
Net loss reserve discount | 989 | $ 987 | |
Current accident year | 0 | 0 | |
Accretion and other adjustments to prior year discount | (16) | (14) | |
Effect of interest rate changes | 18 | (3) | |
Net reserve discount benefit (charge) | 2 | (17) | |
Change in discount on loss reserves ceded under retroactive reinsurance | 0 | 0 | |
Net change in total reserve discount | 2 | (17) | |
U.S Workers' compensation | 2 | (16) | |
Asbestos | $ 0 | $ (1) |
CONTINGENCIES, COMMITMENTS AN79
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Loss Contingencies) $ in Millions | Jun. 15, 2015USD ($) | Oct. 22, 2014USD ($) | Sep. 16, 2013individual | Mar. 11, 2013class | Nov. 29, 2012USD ($)item | Nov. 21, 2011 | Dec. 17, 2010USD ($)item | Mar. 31, 2017USD ($)complaint | 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 | $ 3,100 | |||||||||
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 | |||||||||
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 | 8 |
CONTINGENCIES, COMMITMENTS AN80
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) $ in Millions | Mar. 31, 2017USD ($) |
Other Operations | |
Guarantor Obligations [Line Items] | |
Amount outstanding under standby letters of credit at end of period | $ 139 |
EQUITY (Details - Shares Outsta
EQUITY (Details - Shares Outstanding) - USD ($) | May 03, 2017 | Mar. 29, 2017 | Mar. 28, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Feb. 14, 2017 |
The following table presents a roll forward of outstanding shares: | ||||||
Shares, beginning of year | (911,335,651) | |||||
Shares, beginning of year | 1,906,671,492 | |||||
Shares, beginning of year | 995,335,841 | |||||
Issuances (in shares) | 3,138,933 | |||||
Shares repurchased | (55,994,748) | (63,000,000) | ||||
Shares, end of period | (964,191,466) | |||||
Shares, end of period | 1,906,671,492 | |||||
Shares, end of period | 942,480,026 | |||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||||
Dividend paid (in dollars per share) | $ 0.32 | $ 0.32 | ||||
Shares repurchased (in shares) | 55,994,748 | 63,000,000 | ||||
Payments for Repurchase of Common Stock | $ 3,585,000,000 | $ 3,486,000,000 | ||||
Amount paid to purchase warrants | $ 0 | $ 173,000,000 | ||||
Warrants repurchased | 0 | 10,000,000 | ||||
Subsequent event | ||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||||
Date of Shareholders of Record | Jun. 14, 2017 | |||||
Authorized amount of common Stock share repurchase | $ 2,500,000,000 | |||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 3,800,000,000 | |||||
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, end of period | 1,906,671,492 | |||||
Common Stock Issued | AIG | ||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||||
Authorized amount of common Stock share repurchase | $ 3,500,000,000 | |||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 2,400,000,000 | |||||
Treasury Stock | ||||||
The following table presents a roll forward of outstanding shares: | ||||||
Shares, beginning of year | (911,335,651) | |||||
Issuances (in shares) | 3,138,933 | |||||
Shares repurchased | (55,994,748) | |||||
Shares, end of period | (964,191,466) | |||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||||
Shares repurchased (in shares) | 55,994,748 |
EQUITY (Details - Rollforward o
EQUITY (Details - Rollforward of Accumulated other comprehensive income) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
A rollforward of Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning of period, net of tax | $ 3,230 | $ 2,537 |
Change in unrealized appreciation (depreciation) of investments | 833 | 4,535 |
Change in deferred acquisition costs adjustment and other | 70 | (345) |
Change in future policy benefits | (86) | (728) |
Changes in foreign currency translation adjustments | (304) | (132) |
Net actuarial gain (loss) | 25 | 12 |
Prior service (cost) credit | 3 | (7) |
Deferred tax asset (liability) | 10 | (347) |
Other Comprehensive Income (Loss) | 551 | 2,988 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment | (276) | (92) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment | (18) | (2) |
Noncontrolling interests | 0 | |
Balance, end of period, net of tax | 3,781 | 5,525 |
Accumulated Other Comprehensive Income | ||
A rollforward of Accumulated Other Comprehensive Income (Loss) | ||
Other Comprehensive Income (Loss) | 551 | 2,988 |
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 | 426 | 696 |
Change in unrealized appreciation (depreciation) of investments | 143 | (548) |
Change in deferred acquisition costs adjustment and other | 32 | 15 |
Change in future policy benefits | 0 | 0 |
Deferred tax asset (liability) | (61) | 184 |
Other Comprehensive Income (Loss) | 114 | (349) |
Balance, end of period, net of tax | 540 | 347 |
Unrealized Appreciation (Depreciation) of All Other Investments | ||
A rollforward of Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning of period, net of tax | 6,405 | 5,566 |
Change in unrealized appreciation (depreciation) of investments | 690 | 5,083 |
Change in deferred acquisition costs adjustment and other | 38 | (360) |
Change in future policy benefits | (86) | (728) |
Deferred tax asset (liability) | 53 | (568) |
Other Comprehensive Income (Loss) | 695 | 3,427 |
Balance, end of period, net of tax | 7,100 | 8,993 |
Foreign Currency Translation Adjustments | ||
A rollforward of Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning of period, net of tax | (2,629) | (2,879) |
Changes in foreign currency translation adjustments | (304) | (132) |
Deferred tax asset (liability) | 28 | 40 |
Other Comprehensive Income (Loss) | (276) | (92) |
Noncontrolling interests | 0 | |
Balance, end of period, net of tax | (2,905) | (2,971) |
Retirement Plan Liabilities Adjustment | ||
A rollforward of Accumulated Other Comprehensive Income (Loss) | ||
Balance, beginning of period, net of tax | (972) | (846) |
Net actuarial gain (loss) | 25 | 12 |
Prior service (cost) credit | 3 | (7) |
Deferred tax asset (liability) | (10) | (3) |
Other Comprehensive Income (Loss) | 18 | 2 |
Balance, end of period, net of tax | $ (954) | $ (844) |
EQUITY (Details - Other compreh
EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | $ 739 | $ 3,051 |
Less: Reclassification adjustments included in net income | 198 | (284) |
Total other comprehensive income (loss), before income tax expense (benefit) | 541 | 3,335 |
Less: Income tax expense (benefit) | (10) | 347 |
Other comprehensive income (loss) | 551 | 2,988 |
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 | 190 | (458) |
Less: Reclassification adjustments included in net income | 15 | 75 |
Total other comprehensive income (loss), before income tax expense (benefit) | 175 | (533) |
Less: Income tax expense (benefit) | 61 | (184) |
Other comprehensive income (loss) | 114 | (349) |
Unrealized Appreciation (Depreciation) of All Other Investments | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | 835 | 3,640 |
Less: Reclassification adjustments included in net income | 193 | (355) |
Total other comprehensive income (loss), before income tax expense (benefit) | 642 | 3,995 |
Less: Income tax expense (benefit) | (53) | 568 |
Other comprehensive income (loss) | 695 | 3,427 |
Accumulated Translation Adjustment [Member] | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | (304) | (132) |
Less: Reclassification adjustments included in net income | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | (304) | (132) |
Less: Income tax expense (benefit) | (28) | (40) |
Other comprehensive income (loss) | (276) | (92) |
Retirement Plan Liabilities Adjustment | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | 18 | 1 |
Less: Reclassification adjustments included in net income | (10) | (4) |
Total other comprehensive income (loss), before income tax expense (benefit) | 28 | 5 |
Less: Income tax expense (benefit) | 10 | 3 |
Other comprehensive income (loss) | $ 18 | $ 2 |
EQUITY (Details - Reclassificat
EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other realized capital gains (losses) | $ (55) | $ (904) |
Amortization of deferred acquisition costs | 1,108 | 1,262 |
Policyholder benefits and losses incurred | 6,047 | 6,387 |
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 198 | (284) |
Income from continuing operations before income tax expense (benefit) | 1,727 | (214) |
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) | 198 | (284) |
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 | 15 | 75 |
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 (losses) | 15 | 75 |
Income from continuing operations before income tax expense (benefit) | 15 | 75 |
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 | 193 | (355) |
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 (losses) | 140 | (413) |
Amortization of deferred acquisition costs | 53 | 58 |
Policyholder benefits and losses incurred | 0 | 0 |
Income from continuing operations before income tax expense (benefit) | 193 | (355) |
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 | (10) | (4) |
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 | (10) | (4) |
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 | 0 | 4 |
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 | $ (10) | $ (8) |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator for EPS: | ||
Income (Loss) from Continuing Operations | $ 1,211 | $ (156) |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 26 | (20) |
Net income (loss) attributable to AIG common shareholders from continuing operations | 1,185 | (136) |
Income (loss) from discontinued operations, net of income tax | 0 | (47) |
Net income (loss) attributable to AIG common shareholders | $ 1,185 | $ (183) |
Denominator for EPS: | ||
Weighted average shares outstanding - basic | 980,777,243 | 1,156,548,459 |
Dilutive shares | 24,537,787 | 0 |
Weighted average shares outstanding - diluted | 1,005,315,030 | 1,156,548,459 |
Basic: | ||
Income (loss) from continuing operations | $ 1.21 | $ (0.12) |
Income (loss) from discontinued operations | 0 | (0.04) |
Net income (loss) attributable to AIG | 1.21 | (0.16) |
Diluted: | ||
Income (loss) from continuing operations | 1.18 | (0.12) |
Income (loss) from discontinued operations | 0 | (0.04) |
Net Income (loss) attributable to AIG | $ 1.18 | $ (0.16) |
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive | 1,800,000 | 600,000 |
EMPLOYEE BENEFITS (Details - Pe
EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pensions | ||
Components of net periodic benefit cost: | ||
Service cost | $ 14 | $ 12 |
Interest cost | 47 | 51 |
Expected return on assets | (70) | (80) |
Amortization of prior service (credit) cost | 0 | 0 |
Amortization of net (gain) loss | 10 | 8 |
Curtailment (gain) loss | 0 | (2) |
Net periodic benefit cost (credit) | 1 | (11) |
U.S. Pension Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 6 | 4 |
Interest cost | 43 | 46 |
Expected return on assets | (64) | (73) |
Amortization of prior service (credit) cost | 0 | 0 |
Amortization of net (gain) loss | 7 | 6 |
Curtailment (gain) loss | 0 | |
Net periodic benefit cost (credit) | (8) | (17) |
Non U.S. Pension Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 8 | 8 |
Interest cost | 4 | 5 |
Expected return on assets | (6) | (7) |
Amortization of prior service (credit) cost | 0 | 0 |
Amortization of net (gain) loss | 3 | 2 |
Curtailment (gain) loss | 0 | (2) |
Net periodic benefit cost (credit) | 9 | 6 |
Postretirement Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 1 | 2 |
Interest cost | 3 | 2 |
Amortization of prior service (credit) cost | 0 | (2) |
Amortization of net (gain) loss | 0 | 0 |
Net periodic benefit cost (credit) | 4 | 2 |
U.S. Postretirement Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 0 | 1 |
Interest cost | 2 | 1 |
Amortization of prior service (credit) cost | 0 | (2) |
Amortization of net (gain) loss | 0 | 0 |
Net periodic benefit cost (credit) | 2 | 0 |
Non U.S. Postretirement Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 1 | 1 |
Interest cost | 1 | 1 |
Net periodic benefit cost (credit) | $ 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, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income (loss) from continuing operations before income tax expense (benefit) | |||
Income (loss) from continuing operations before income tax expense (benefit) | $ 1,727 | $ (214) | |
U.S.: | |||
Income tax expense (benefit) | 516 | (58) | |
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) | 1,727 | (214) | |
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) | 516 | $ (58) | |
Valuation allowance | |||
Increase (Decrease) in certain other valuation allowances associated with foreign jurisdictions | (15) | ||
Valuation allowance related to unrealized losses that are no more-likely-than-not to be realized | $ 354 | ||
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) | 29.90% | 27.10% | |
Accounting for Uncertainty in Income Taxes | |||
Unrecognized tax benefits, excluding interest and penalties | $ 4,500 | $ 4,500 | |
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 | 4,400 | |
Unrecognized tax benefits, interest and penalties accrued | 1,300 | $ 1,200 | |
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties | $ (17) | $ 51 | |
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. |
INCOME TAXES (Details - Assessm
INCOME TAXES (Details - Assessment of Deferred Tax Asset (liabilities) Valuation Allowance) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Non-Life Companies [Member] | |
Deferred Tax Assets, Liabilities [Line Items] | |
Deferred tax asset valuation allowance allocated to other comprehensive income | $ 120 |
Life Insurance Companies [Member] | |
Deferred Tax Assets, Liabilities [Line Items] | |
Deferred tax asset valuation allowance allocated to other comprehensive income | $ 254 |
INFORMATION PROVIDED IN CONNE89
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Short-term investments | $ 11,073 | $ 12,302 | ||
Other investments | 304,432 | 315,873 | ||
Total investments | 315,505 | 328,175 | ||
Cash | 1,918 | 1,868 | $ 1,499 | $ 1,629 |
Other assets, including deferred income taxes | 176,151 | 161,022 | ||
Assets held for sale | 6,588 | 7,199 | ||
Total assets | 500,162 | 498,264 | ||
Liabilities: | ||||
Insurance liabilities | 274,967 | 275,120 | ||
Long-term Debt | 30,747 | 30,912 | ||
Other liabilities, including intercompany balances | 114,010 | 109,268 | ||
Liabilities held for sale | 5,771 | 6,106 | ||
Total liabilities | 425,495 | 421,406 | ||
Total AIG shareholders' equity | 74,069 | 76,300 | ||
Non-redeemable noncontrolling interests | 598 | 558 | ||
Total equity | 74,667 | 76,858 | 89,081 | 90,210 |
Total liabilities and equity | 500,162 | 498,264 | ||
AIG (As Guarantor) | ||||
Assets: | ||||
Short-term investments | 2,714 | 4,424 | ||
Other investments | 7,032 | 7,154 | ||
Total investments | 9,746 | 11,578 | ||
Cash | 2 | 2 | 36 | 34 |
Loans to subsidiaries | 34,849 | 34,692 | ||
Investment in consolidated subsidiaries | 43,916 | 42,582 | ||
Other assets, including deferred income taxes | 21,824 | 24,099 | ||
Total assets | 110,337 | 112,953 | ||
Liabilities: | ||||
Long-term Debt | 21,471 | 21,405 | ||
Other liabilities, including intercompany balances | 14,402 | 14,671 | ||
Loans from subsidiaries | 395 | 577 | ||
Total liabilities | 36,268 | 36,653 | ||
Total AIG shareholders' equity | 74,069 | 76,300 | ||
Total equity | 74,069 | 76,300 | ||
Total liabilities and equity | 110,337 | 112,953 | ||
AIGLH | ||||
Assets: | ||||
Cash | 11 | 34 | 7 | 116 |
Investment in consolidated subsidiaries | 28,102 | 27,309 | ||
Other assets, including deferred income taxes | 630 | 239 | ||
Total assets | 28,743 | 27,582 | ||
Liabilities: | ||||
Long-term Debt | 642 | 642 | ||
Other liabilities, including intercompany balances | 571 | 194 | ||
Loans from subsidiaries | 0 | 0 | ||
Total liabilities | 1,213 | 836 | ||
Total AIG shareholders' equity | 27,530 | 26,746 | ||
Total equity | 27,530 | 26,746 | ||
Total liabilities and equity | 28,743 | 27,582 | ||
Other Subsidiaries | ||||
Assets: | ||||
Short-term investments | 12,907 | 13,218 | ||
Other investments | 297,400 | 308,719 | ||
Total investments | 310,307 | 321,937 | ||
Cash | 1,905 | 1,832 | $ 1,456 | $ 1,479 |
Loans to subsidiaries | 394 | 576 | ||
Other assets, including deferred income taxes | 158,303 | 140,743 | ||
Assets held for sale | 6,588 | 7,199 | ||
Total assets | 477,497 | 472,287 | ||
Liabilities: | ||||
Insurance liabilities | 274,967 | 275,120 | ||
Long-term Debt | 8,634 | 8,865 | ||
Other liabilities, including intercompany balances | 108,364 | 103,975 | ||
Loans from subsidiaries | 34,848 | 34,691 | ||
Liabilities held for sale | 5,771 | 6,106 | ||
Total liabilities | 432,584 | 428,757 | ||
Total AIG shareholders' equity | 44,315 | 42,972 | ||
Non-redeemable noncontrolling interests | 598 | 558 | ||
Total equity | 44,913 | 43,530 | ||
Total liabilities and equity | 477,497 | 472,287 | ||
Reclassification and Eliminations [Member] | ||||
Assets: | ||||
Short-term investments | (4,548) | (5,340) | ||
Other investments | 0 | |||
Total investments | (4,548) | (5,340) | ||
Loans to subsidiaries | (35,243) | (35,268) | ||
Investment in consolidated subsidiaries | (72,018) | (69,891) | ||
Other assets, including deferred income taxes | (4,606) | (4,059) | ||
Total assets | (116,415) | (114,558) | ||
Liabilities: | ||||
Other liabilities, including intercompany balances | (9,327) | (9,572) | ||
Loans from subsidiaries | (35,243) | (35,268) | ||
Total liabilities | (44,570) | (44,840) | ||
Total AIG shareholders' equity | (71,845) | (69,718) | ||
Total equity | (71,845) | (69,718) | ||
Total liabilities and equity | $ (116,415) | $ (114,558) |
INFORMATION PROVIDED IN CONNE90
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Other income | $ 12,632 | $ 11,779 |
Total revenues | 12,632 | 11,779 |
Expenses: | ||
Interest expense | 298 | 306 |
(Gains) losses on extinguishment of debt | (1) | 83 |
Other expenses | 10,608 | 11,604 |
Total benefits, losses and expenses | 10,905 | 11,993 |
Income (loss) from continuing operations before income tax expense (benefit) | 1,727 | (214) |
Income tax expense (benefit) | 516 | (58) |
Income (loss) from continuing operations | 1,211 | (156) |
Income (loss) from discontinued operations, net of income taxes | 0 | (47) |
Net income (loss) | 1,211 | (203) |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 26 | (20) |
Net income (loss) attributable to AIG | 1,185 | (183) |
AIG (As Guarantor) | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | 1,462 | (944) |
Other income | 196 | (63) |
Total revenues | 1,658 | (1,007) |
Expenses: | ||
Interest expense | 242 | 244 |
(Gains) losses on extinguishment of debt | 0 | 77 |
Other expenses | 335 | 191 |
Total benefits, losses and expenses | 577 | 512 |
Income (loss) from continuing operations before income tax expense (benefit) | 1,081 | (1,519) |
Income tax expense (benefit) | (104) | (1,337) |
Income (loss) from continuing operations | 1,185 | (182) |
Income (loss) from discontinued operations, net of income taxes | 0 | (1) |
Net income (loss) | 1,185 | (183) |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to AIG | 1,185 | (183) |
AIGLH | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | 600 | (1,683) |
Other income | 0 | 5 |
Total revenues | 600 | (1,678) |
Expenses: | ||
Interest expense | 12 | 14 |
(Gains) losses on extinguishment of debt | 0 | 0 |
Other expenses | 1 | 7 |
Total benefits, losses and expenses | 13 | 21 |
Income (loss) from continuing operations before income tax expense (benefit) | 587 | (1,699) |
Income tax expense (benefit) | (4) | (6) |
Income (loss) from continuing operations | 591 | (1,693) |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 |
Net income (loss) | 591 | (1,693) |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to AIG | 591 | (1,693) |
Other Subsidiaries | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Other income | 12,382 | 12,038 |
Total revenues | 12,382 | 12,038 |
Expenses: | ||
Interest expense | 46 | 49 |
(Gains) losses on extinguishment of debt | (1) | 6 |
Other expenses | 10,325 | 11,605 |
Total benefits, losses and expenses | 10,370 | 11,660 |
Income (loss) from continuing operations before income tax expense (benefit) | 2,012 | 378 |
Income tax expense (benefit) | 624 | 1,285 |
Income (loss) from continuing operations | 1,388 | (907) |
Income (loss) from discontinued operations, net of income taxes | 0 | (46) |
Net income (loss) | 1,388 | (953) |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 26 | (20) |
Net income (loss) attributable to AIG | 1,362 | (933) |
Reclassification and Eliminations [Member] | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | (2,062) | 2,627 |
Other income | 54 | (201) |
Total revenues | (2,008) | 2,426 |
Expenses: | ||
Interest expense | (2) | (1) |
(Gains) losses on extinguishment of debt | 0 | 0 |
Other expenses | (53) | (199) |
Total benefits, losses and expenses | (55) | (200) |
Income (loss) from continuing operations before income tax expense (benefit) | (1,953) | 2,626 |
Income tax expense (benefit) | 0 | 0 |
Income (loss) from continuing operations | (1,953) | 2,626 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 |
Net income (loss) | (1,953) | 2,626 |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to AIG | $ (1,953) | $ 2,626 |
INFORMATION PROVIDED IN CONNE91
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net income (loss) | $ 1,211 | $ (203) |
Other Comprehensive Income (Loss) | 551 | 2,988 |
Comprehensive income (loss) | 1,762 | 2,785 |
Total comprehensive income (loss) attributable to noncontrolling interests | 26 | (20) |
Comprehensive income (loss) attributable to AIG | 1,736 | 2,805 |
AIG (As Guarantor) | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income (loss) | 1,185 | (183) |
Other Comprehensive Income (Loss) | 551 | 2,988 |
Comprehensive income (loss) | 1,736 | 2,805 |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income (loss) attributable to AIG | 1,736 | 2,805 |
AIGLH | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income (loss) | 591 | (1,693) |
Other Comprehensive Income (Loss) | 4,660 | (474) |
Comprehensive income (loss) | 5,251 | (2,167) |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income (loss) attributable to AIG | 5,251 | (2,167) |
Other Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income (loss) | 1,388 | (953) |
Other Comprehensive Income (Loss) | 51,030 | 55,554 |
Comprehensive income (loss) | 52,418 | 54,601 |
Total comprehensive income (loss) attributable to noncontrolling interests | 26 | (20) |
Comprehensive income (loss) attributable to AIG | 52,392 | 54,621 |
Reclassification and Eliminations [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income (loss) | (1,953) | 2,626 |
Other Comprehensive Income (Loss) | (55,690) | (55,080) |
Comprehensive income (loss) | (57,643) | (52,454) |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income (loss) attributable to AIG | $ (57,643) | $ (52,454) |
INFORMATION PROVIDED IN CONNE92
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ (10,359) | $ (968) | |
Cash flows from investing activities: | |||
Sales of investments | 26,709 | 16,242 | |
Sales of divested businesses, net | 24 | ||
Purchase of investments | (13,177) | (15,802) | |
Loans to subsidiaries - net | 0 | 0 | |
Contributions from (to) subsidiaries - net | 0 | 0 | |
Net change in restricted cash | (22) | (59) | |
Net change in short-term investments | 1,250 | (577) | |
Other, net | (297) | 581 | |
Net cash provided by (used in) investing activities | 14,487 | 385 | |
Cash flows from financing activities: | |||
Issuance of long-term debt | 151 | 3,289 | |
Repayments of long-term debt | (602) | (958) | |
Issuance of Common Stock | 0 | 0 | |
Purchase of Common Stock | (3,585) | (3,486) | |
Intercompany loans - net | 0 | ||
Cash dividends paid | (307) | (363) | |
Other, net | 295 | 1,971 | |
Net cash provided by (used in) financing activities | (4,048) | 453 | |
Effect of exchange rate changes on cash | (82) | 0 | |
Net increase (decrease) in cash | (2) | (130) | |
Cash at beginning of year | 1,868 | 1,629 | $ 1,629 |
Change in cash of businesses held for sale | 52 | ||
Cash at end of year | 1,918 | 1,499 | 1,868 |
Interest: | |||
Third party | (354) | (362) | |
Intercompany | 0 | 0 | |
Taxes: | |||
Income tax authorities | (68) | (39) | |
Intercompany | 0 | 0 | |
Aer Cap | |||
Non-cash financing and investing activities: | |||
Non-cash consideration received from sale | 0 | ||
AIG (As Guarantor) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 651 | 1,483 | |
Cash flows from investing activities: | |||
Sales of investments | 2,699 | 392 | |
Purchase of investments | (890) | (322) | |
Loans to subsidiaries - net | (56) | 880 | |
Contributions from (to) subsidiaries - net | 206 | 644 | |
Net change in restricted cash | 0 | 0 | |
Net change in short-term investments | 1,470 | (1,022) | |
Other, net | (5) | (127) | |
Net cash provided by (used in) investing activities | 3,424 | 445 | |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 2,986 | |
Repayments of long-term debt | 0 | (710) | |
Issuance of Common Stock | 0 | 0 | |
Purchase of Common Stock | (3,585) | (3,486) | |
Intercompany loans - net | (183) | (180) | |
Cash dividends paid | (307) | (363) | |
Other, net | 0 | (173) | |
Net cash provided by (used in) financing activities | (4,075) | (1,926) | |
Effect of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash | 0 | 2 | |
Cash at beginning of year | 2 | 34 | 34 |
Cash at end of year | 2 | 36 | 2 |
Interest: | |||
Third party | (288) | (285) | |
Intercompany | 0 | 0 | |
Taxes: | |||
Income tax authorities | (14) | (1) | |
Intercompany | 1,090 | 182 | |
Non-cash financing and investing activities: | |||
Return of capital | 0 | 0 | |
Dividends received in the form of securities | 150 | 697 | |
Capital contributions | 198 | 2,904 | |
Consideration received from sale of shares | 0 | 0 | |
AIGLH | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (23) | 97 | |
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 (used in) investing activities | 0 | 0 | |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 0 | |
Repayments of long-term debt | 0 | (26) | |
Issuance of Common Stock | 0 | 0 | |
Purchase of Common Stock | 0 | 0 | |
Intercompany loans - net | 0 | (3) | |
Cash dividends paid | 0 | (177) | |
Other, net | 0 | 0 | |
Net cash provided by (used in) financing activities | 0 | (206) | |
Effect of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash | (23) | (109) | |
Cash at beginning of year | 34 | 116 | 116 |
Cash at end of year | 11 | 7 | 34 |
Interest: | |||
Third party | (23) | (24) | |
Intercompany | 0 | 0 | |
Taxes: | |||
Income tax authorities | 0 | 0 | |
Intercompany | 0 | 0 | |
Other Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (10,938) | (1,481) | |
Cash flows from investing activities: | |||
Sales of investments | 26,492 | 17,004 | |
Sales of divested businesses, net | 24 | ||
Purchase of investments | (14,769) | (16,634) | |
Loans to subsidiaries - net | 183 | 180 | |
Contributions from (to) subsidiaries - net | 0 | 0 | |
Net change in restricted cash | (22) | (59) | |
Net change in short-term investments | (220) | 445 | |
Other, net | (292) | 708 | |
Net cash provided by (used in) investing activities | 11,396 | 1,644 | |
Cash flows from financing activities: | |||
Issuance of long-term debt | 151 | 303 | |
Repayments of long-term debt | (602) | (222) | |
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 | 56 | (877) | |
Cash dividends paid | (49) | (890) | |
Other, net | 89 | 1,500 | |
Net cash provided by (used in) financing activities | (355) | (186) | |
Effect of exchange rate changes on cash | (82) | 0 | |
Net increase (decrease) in cash | 21 | (23) | |
Cash at beginning of year | 1,832 | 1,479 | 1,479 |
Change in cash of businesses held for sale | 52 | ||
Cash at end of year | 1,905 | 1,456 | $ 1,832 |
Interest: | |||
Third party | (43) | (53) | |
Intercompany | 0 | 0 | |
Taxes: | |||
Income tax authorities | (54) | (38) | |
Intercompany | (1,090) | (182) | |
Reclassification and Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (49) | (1,067) | |
Cash flows from investing activities: | |||
Sales of investments | (2,482) | (1,154) | |
Purchase of investments | 2,482 | 1,154 | |
Loans to subsidiaries - net | (127) | (1,060) | |
Contributions from (to) subsidiaries - net | (206) | (644) | |
Net cash provided by (used in) investing activities | (333) | (1,704) | |
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 | 127 | 1,060 | |
Cash dividends paid | 49 | 1,067 | |
Other, net | 206 | 644 | |
Net cash provided by (used in) financing activities | 382 | 2,771 | |
Interest: | |||
Third party | 0 | 0 | |
Intercompany | 0 | 0 | |
Taxes: | |||
Income tax authorities | 0 | ||
Intercompany | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | May 03, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Subsequent Event [Line Items] | |||
Dividends declared per common share | $ 0.32 | $ 0.32 | |
Subsequent event | |||
Subsequent Event [Line Items] | |||
Dividends declared per common share | $ 0.32 | ||
Authorized amount of common Stock share repurchase | $ 2,500,000,000 | ||
Aggregate remaining authorization amount of common Stock share repurchase | $ 3,800,000,000 | ||
Date Dividends Declared | May 3, 2017 | ||
Date Dividends To Be Paid | Jun. 28, 2017 | ||
Date of Shareholders of Record | Jun. 14, 2017 |