Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 07, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | AMERICAN INTERNATIONAL GROUP INC | ||
Entity Central Index Key | 5,272 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 56,480,000,000 | ||
Entity Common Stock, Shares Outstanding | 902,468,889 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed maturity securities: | ||
Bonds available for sale, at fair value (amortized cost: 2017 - $225,461; 2016 - $232,241) | $ 238,992 | $ 241,537 |
Other bond securities, at fair value (See Note 6) | 12,772 | 13,998 |
Equity Securities: | ||
Common and preferred stock available for sale, at fair value (cost: 2017 - $1,305; 2016 - $1,697) | 1,708 | 2,078 |
Other common and preferred stock, at fair value (See Note 6) | 589 | 482 |
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2017 - $5; 2016 - $11) | 37,023 | 33,240 |
Other invested assets (portion measured at fair value: 2017 - $6,248; 2016 - $6,946) | 20,822 | 24,538 |
Short-term investments (portion measured at fair value: 2017 - $2,615; 2016 - $3,341) | 10,386 | 12,302 |
Total investments | 322,292 | 328,175 |
Cash | 2,362 | 1,868 |
Accrued investment income | 2,356 | 2,495 |
Premiums and other receivables, net of allowance | 10,248 | 10,465 |
Reinsurance assets, net of allowance | 33,024 | 21,901 |
Deferred income taxes | 14,033 | 21,332 |
Deferred policy acquisition costs | 10,994 | 11,042 |
Other assets, including restricted cash of $317 in 2017 and $193 in 2016 (portion measured at fair value: 2017 - $922; 2016 - $1,809) | 10,194 | 10,815 |
Separate account assets, at fair value | 92,798 | 82,972 |
Assets held for sale | 0 | 7,199 |
Total assets | 498,301 | 498,264 |
Liabilities: | ||
Liability for unpaid losses and loss adjustment expenses | 78,393 | 77,077 |
Unearned premiums | 19,030 | 19,634 |
Future policy benefits for life and accident and health insurance contracts | 45,432 | 42,204 |
Policyholder contract deposits (portion measured at fair value: 2017 - $4,150; 2016 - $3,058) | 135,602 | 132,216 |
Other policyholder funds (portion measured at fair value: 2017 - $0; 2016 - $5) | 3,648 | 3,989 |
Other liabilities (portion measured at fair value: 2017 - $1,124; 2016 - $2,016) | 26,050 | 26,296 |
Long-term debt (portion measured at fair value: 2017 - $2,888; 2016 - $3,428) | 31,640 | 30,912 |
Separate account liabilities | 92,798 | 82,972 |
Liabilities held for sale | 0 | 6,106 |
Total liabilities | 432,593 | 421,406 |
Contingencies, commitments and guarantees (see Note 16) | ||
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 - 1,007,626,835; 2016 - 911,335,651 shares of common stock | (47,595) | (41,471) |
Additional paid-in capital | 81,078 | 81,064 |
Retained earnings | 21,457 | 28,711 |
Accumulated other comprehensive income (loss) | 5,465 | 3,230 |
Total AIG shareholders' equity | 65,171 | 76,300 |
Non-redeemable noncontrolling interests | 537 | 558 |
Total equity | 65,708 | 76,858 |
Total liabilities and equity | $ 498,301 | $ 498,264 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical - assets and liabilities) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Bonds available for sale, amortized cost | $ 225,461 | $ 232,241 |
Common and preferred stock available for sale, cost | 1,305 | 1,697 |
Mortgage and other loans receivable, portion measured at fair value | 5 | 11 |
Other invested assets, portion measured at fair value | 6,248 | 6,946 |
Short-term investments, portion measured at fair value | 2,615 | 3,341 |
Other assets, restricted cash | 317 | 193 |
Other assets, portion measured at fair value | 922 | 1,809 |
Liabilities: | ||
Policyholder contract deposits, portion measured at fair value | 4,150 | 3,058 |
Other policyholder funds, portion measured at fair value | 0 | 5 |
Other liabilities, portion measured at fair value | 1,124 | 2,016 |
Long-term debt, portion measured at fair value | $ 2,888 | $ 3,428 |
CONSOLIDATED BALANCE SHEETS (P4
CONSOLIDATED BALANCE SHEETS (Parenthetical - equity) - $ / shares | Dec. 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 | 1,007,626,835 | 911,335,651 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Premiums | $ 31,374 | $ 34,393 | $ 36,655 |
Policy fees | 2,935 | 2,732 | 2,755 |
Net investment income | 14,179 | 14,065 | 14,053 |
Net realized capital gains (losses): | |||
Total other-than-temporary impairments on available for sale securities | (196) | (458) | (556) |
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss) | (31) | (29) | (35) |
Net other-than-temporary impairments on available for sale securities recognized in net income (loss) | (227) | (487) | (591) |
Other realized capital gains (losses) | (1,153) | (1,457) | 1,367 |
Total net realized capital gains (losses) | (1,380) | (1,944) | 776 |
Other income | 2,412 | 3,121 | 4,088 |
Total revenues | 49,520 | 52,367 | 58,327 |
Benefits, losses and expenses: | |||
Policyholder benefits and losses incurred | 29,972 | 32,437 | 31,345 |
Interest credited to policyholder account balances | 3,592 | 3,705 | 3,731 |
Amortization of deferred policy acquisition costs | 4,288 | 4,521 | 5,236 |
General operating and other expenses | 9,107 | 10,989 | 12,686 |
Interest expense | 1,168 | 1,260 | 1,281 |
(Gain) loss on extinguishment of debt | (5) | 74 | 756 |
Net (gain) loss on sale of divested businesses | (68) | (545) | 11 |
Total benefits, losses and expenses | 48,054 | 52,441 | 55,046 |
Income (loss) from continuing operations before income tax expense (benefit) | 1,466 | (74) | 3,281 |
Income tax expense (benefit): | |||
Current | 636 | 576 | 820 |
Deferred | 6,890 | (391) | 239 |
Income tax expense (benefit) | 7,526 | 185 | 1,059 |
Income (loss) from continuing operations | (6,060) | (259) | 2,222 |
Income (loss) from discontinued operations, net of income tax expense | 4 | (90) | 0 |
Net income (loss) | (6,056) | (349) | 2,222 |
Less: | |||
Net income (loss) from continuing operations attributable to noncontrolling interests | 28 | 500 | 26 |
Net income (loss) attributable to AIG | $ (6,084) | $ (849) | $ 2,196 |
Basic: | |||
Income (loss) from continuing operations | $ (6.54) | $ (0.7) | $ 1.69 |
Income (loss) from discontinued operations | 0 | (0.08) | 0 |
Net income (loss) attributable to AIG | (6.54) | (0.78) | 1.69 |
Diluted: | |||
Income (loss) from continuing operations | (6.54) | (0.7) | 1.65 |
Income (loss) from discontinued operations | 0 | (0.08) | 0 |
Net income (loss) attributable to AIG | $ (6.54) | $ (0.78) | $ 1.65 |
Weighted average shares outstanding: | |||
Basic | 930,561,286 | 1,091,085,131 | 1,299,825,350 |
Diluted | 930,561,286 | 1,091,085,131 | 1,334,464,883 |
Dividends declared per common share | $ 1.28 | $ 1.28 | $ 0.81 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ (6,056) | $ (349) | $ 2,222 |
Other comprehensive income (loss), net of tax | |||
Change in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken | 367 | (270) | (347) |
Change in unrealized appreciation (depreciation) of all other investments | 1,288 | 839 | (6,762) |
Change in foreign currency translation adjustments | 539 | 250 | (1,100) |
Change in retirement plan liabilities adjustment | 41 | (126) | 123 |
Other comprehensive income | 2,235 | 693 | (8,086) |
Comprehensive income (loss) | (3,821) | 344 | (5,864) |
Comprehensive income (loss) attributable to noncontrolling interests | 28 | 500 | 20 |
Comprehensive income (loss) attributable to AIG | $ (3,849) | $ (156) | $ (5,884) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total AIG Shareholders' Equity | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non redeemable Non-controlling Interests |
Balance at Dec. 31, 2014 | $ 107,272 | $ 106,898 | $ 4,766 | $ (19,218) | $ 80,958 | $ 29,775 | $ 10,617 | $ 374 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Common stock issued under stock plans | 13 | (13) | ||||||
Purchase of common stock | (10,895) | (10,895) | (10,895) | |||||
Net income (loss) attributable to AIG or noncontrolling interests | 2,222 | 2,196 | 2,196 | 26 | ||||
Dividends | (1,028) | (1,028) | (1,028) | |||||
Other Comprehensive Income (Loss) | (8,086) | (8,080) | (8,080) | (6) | ||||
Current and deferred income taxes | (9) | (9) | (9) | |||||
Net decrease due to deconsolidation | 231 | 231 | ||||||
Contributions from noncontrolling interests | 1 | 1 | ||||||
Distributions to noncontrolling interests | (82) | (82) | ||||||
Other | 584 | 576 | 2 | 574 | 0 | 8 | ||
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 | ||||||||
Common stock issued under stock plans | (89) | (89) | 86 | (175) | ||||
Purchase of common stock | (11,460) | (11,460) | (11,460) | |||||
Net income (loss) attributable to AIG or noncontrolling interests | (349) | (849) | (849) | 500 | ||||
Dividends | (1,372) | (1,372) | (1,372) | |||||
Other Comprehensive Income (Loss) | 693 | 693 | 693 | 0 | ||||
Current and deferred income taxes | (208) | (208) | (208) | |||||
Net increase due to acquisitions and consolidations | 43 | 43 | ||||||
Contributions from noncontrolling interests | 22 | 22 | ||||||
Distributions to noncontrolling interests | (570) | (570) | ||||||
Other | (62) | (73) | 1 | (63) | (11) | 11 | ||
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 | (178) | (178) | 147 | (325) | ||||
Purchase of common stock | (6,275) | (6,275) | (6,275) | |||||
Net income (loss) attributable to AIG or noncontrolling interests | (6,056) | (6,084) | (6,084) | 28 | ||||
Dividends | (1,172) | (1,172) | (1,172) | |||||
Other Comprehensive Income (Loss) | 2,235 | 2,235 | 2,235 | 0 | ||||
Current and deferred income taxes | (4) | (4) | (4) | 0 | ||||
Net increase due to acquisitions and consolidations | 101 | 101 | ||||||
Contributions from noncontrolling interests | 42 | 42 | ||||||
Distributions to noncontrolling interests | (193) | (193) | ||||||
Other | 350 | 349 | 4 | 343 | 2 | 1 | ||
Balance at Dec. 31, 2017 | $ 65,708 | $ 65,171 | $ 4,766 | $ (47,595) | $ 81,078 | $ 21,457 | $ 5,465 | $ 537 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ (6,056) | $ (349) | $ 2,222 |
(Income) loss from discontinued operations | (4) | 90 | 0 |
Noncash revenues, expenses, gains and losses included in income: | |||
Net gains on sales of securities available for sale and other assets | (431) | (2,033) | (1,111) |
Net (gains) losses on sales of divested businesses | (68) | (545) | 11 |
(Gains) losses on extinguishment of debt | (5) | 74 | 756 |
Unrealized (gains) losses in earnings - net | 79 | 1,465 | (522) |
Equity in income from equity method investments, net of dividends or distributions | (401) | (54) | (481) |
Depreciation and other amortization | 3,874 | 4,090 | 4,629 |
Impairments of assets | 685 | 1,116 | 1,500 |
Changes in operating assets and liabilities: | |||
Insurance reserves | 2,637 | 5,325 | 1,645 |
Premiums and other receivables and payables - net | 410 | 536 | (70) |
Reinsurance assets and funds held under reinsurance treaties | (10,870) | (1,804) | 1,525 |
Capitalization of deferred policy acquisition costs | (4,819) | (5,216) | (5,808) |
Current and deferred income taxes - net | 6,981 | (308) | 548 |
Other, net | (597) | (4) | (1,967) |
Total adjustments | (2,525) | 2,642 | 655 |
Net cash provided by (used in) operating activities | (8,585) | 2,383 | 2,877 |
Sales or distribution of: | |||
Available for sale securities | 31,082 | 30,103 | 28,721 |
Other securities | 3,792 | 4,164 | 6,055 |
Other invested assets | 7,664 | 9,554 | 8,002 |
Divested businesses, net | 792 | 2,809 | 0 |
Maturities of fixed maturity securities available for sale | 29,011 | 25,749 | 24,734 |
Principal payments received on and sales of mortgage and other loans receivable | 5,742 | 6,074 | 5,104 |
Purchases of: | |||
Available for sale securities | (49,856) | (54,978) | (48,848) |
Other securities | (1,147) | (935) | (2,704) |
Other invested assets | (2,874) | (3,421) | (3,573) |
Mortgage and other loans receivable | (9,369) | (10,651) | (10,140) |
Net change in restricted cash | (121) | 385 | 1,457 |
Net change in short-term investments | 2,098 | (3,089) | 1,163 |
Other, net | (2,143) | (1,020) | (1,509) |
Net cash provided by (used in) investing activities | 14,671 | 4,744 | 8,462 |
Proceeds from (payments for) | |||
Policyholder contract deposits | 17,908 | 18,100 | 17,029 |
Policyholder contract withdrawals | (15,785) | (14,041) | (14,619) |
Issuance of long-term debt | 3,356 | 5,954 | 6,867 |
Repayments of long-term debt | (3,698) | (4,082) | (9,805) |
Purchase of Common Stock | (6,275) | (11,460) | (10,691) |
Dividends paid | (1,172) | (1,372) | (1,028) |
Other, net | (31) | 68 | 818 |
Net cash provided by (used in) financing activities | (5,697) | (6,833) | (11,429) |
Effect of exchange rate changes on cash | (28) | 52 | (39) |
Net increase (decrease) in cash | 361 | 346 | (129) |
Cash at beginning of year | 1,868 | 1,629 | 1,758 |
Change in cash of businesses held for sale | 133 | (107) | 0 |
Cash at end of Period | $ 2,362 | $ 1,868 | $ 1,629 |
Supplementary Disclosure of Con
Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash paid during the period for: | |||
Interest | $ 1,282 | $ 1,331 | $ 1,368 |
Taxes | 544 | 493 | 511 |
Non-cash investing/financing activities: | |||
Interest credited to policyholder contract deposits included in financing activities | 3,309 | 3,430 | 3,676 |
International Lease Finance Corporation (ILFC) | |||
Sale of businesses and securities | |||
Non-cash consideration received from sale | 0 | 0 | 0 |
Aer Cap | |||
Sale of businesses and securities | |||
Non-cash consideration received from sale | 0 | 0 | 500 |
United Guaranty Corporation | |||
Sale of businesses and securities | |||
Non-cash consideration received from sale | $ 0 | $ 1,101 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 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. The consolidated financial statements include the accounts of AIG Parent, our controlled subsidiaries (generally through a greater than 50 percent ownership of voting rights and voting interests), and variable interest entities (VIEs) of which we are the primary beneficiary. Equity investments in entities that we do not consolidate, including corporate entities in which we have significant influence and partnership and partnership-like entities in which we have more than minor influence over the operating and financial policies, are accounted for under the equity method unless we have elected the fair value option. Certain of our foreign subsidiaries included in the Consolidated Financial Statements report on different fiscal-period bases. The effect on our consolidated financial condition and results of operations of all material events occurring at these subsidiar ies through the date of each of the periods presented in these Consolidated Financial Statements has been considered for adjustment and/or disclosure. The accompanying consolidated financial statements have been prepared in accordance with accounting prin ciples generally accepted in the United States (GAAP). All material intercompany accounts and transactions have been eliminated. Sales of Businesses 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, Chile, Colombia, Uruguay, Venezuela and Turkey. Fairfax will also acquire renewal rights for th e portfolios of local business written by our operations in Bulgaria, the 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 m illion. The transaction is closing on a country-by-country basis as the regulatory approvals are obtained. In the second quarter of 2017, the sale of operations in Turkey as well as the renewal rights in Bulgaria, the Czech Republic, Hungary, Poland and S lovakia were completed, which resulted in total cash proceeds of $48 million. In the third quarter of 2017, the sale of the operations in Colombia, Chile and Argentina were completed, which resulted in cash proceeds of $168 million. Substantially all of th e operations and renewal rights that we agreed to sell Fairfax were sold by December 31, 2017. AIG Fuji Life Insurance On November 14, 2016, we entered into an agreement to sell Fuji Life to FWD Group, the insurance arm of Pacific Century Group. Total cas h consideration to us was approximately $333 million. The transaction closed on April 30, 2017. United Guaranty On December 31, 2016, we sold our 100 percent interest in U nited G uaranty C orporation (United Guaranty) and certain related affiliates to Arch Capital Group Ltd. (Arch) for total consideration of $3.3 billion, consisting of $2.2 billion of cash and approximately $1.1 billion of newly issued Arch convertible non-voting common-equivalent preferred stock and reported a pre-tax gain of approximately $697 million . We also received $261 million in pre-closing dividends from United Guaranty in the fourth quarter of 2016. However, due to pending regulatory approvals, United Guaranty Asia was not included in the December 31, 2016 closing and $40 million of cash consideration was retained by Arch. The sale of United Guaranty Asia was completed on July 1, 2017 and we received the $40 million cash proceeds. Concurrent with the closing, we entered into reinsurance agreements with Arch, including an amended and restated 50 percent quota share reinsurance agreement and an aggregate excess of loss reinsurance agreement, pursuant to which we will continue to be exposed to certain United Guaranty policies written between 2009 and 2016. Ascot On September 16, 2016, we entered into an agreement to sell our 20 percent interest in Ascot Underwriting Holdings Ltd. and our 100 percent interest in the related syndicate-funding subsidiary Ascot Corporate Name Ltd. to Canada Pension Plan Investment Board (CPPIB). Total conside ration for the transaction was $1.1 billion resulting in a pre-tax gain of approximately $162 million attributable to AIG’s controlling interest, inclusive of CPPIB’s recapitalization of Syndicate 1414’s Funds at Lloyd’s (FAL) capital requirements. The tra nsaction closed on November 18, 2016, and we received approximately $244 million in net cash proceeds. Korea Fund On November 17, 2016, an AIG sponsored Fund (the Korea Fund), completed the sale of mixed-use commercial complex in Seoul, South Kor ea commonl y known as the Seoul I nternational Finance Center to Brookfield Properties for a total consideration of $2.5 b illion , of which $1.2 billion was used to repay the fund’s debt. The sale resulted in a pr e- ta x g a in o f $1. 1 b i ll i o n incl u de d in Othe r Income, of which $464 million was attributable to AIG’s controlling interest . NSM On August 31, 2016, we sold our controlling interest in NSM Insurance Group LLC (NSM), a managing general agent to ABRY Partners, a private equity firm, for consideration of $201 mil lion resulting in a pre-tax gain of approximately $105 million in the third quarter of 2016. We retained an equity interest in a newly formed joint venture and will continue to provide underwriting capacity to NSM. Use of Estimates The preparation of fina ncial 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 conside red our critical accounting estimates and are related to the determination of: liability for unpaid losses and loss adjustment expenses (loss reserves); reinsurance assets; valuation of future policy benefit liabilities and timing and extent of loss recognition; valuation of liabilities for guaranteed benefit features of variable annuity products; estimated gross profits to value deferred 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; allowances for loan losses; liability for legal contingencies; fair val ue measurements of certain financial assets and liabilities; and income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize th e net deferred tax asset and provisional estimates associated with the Tax Act. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs f rom the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected. Out of Period Adjustments For the year ended December 31, 2016, we recorded out of period adjustments relating to prior years that increased Net loss attributable to AIG by $174 million, increased Loss from continuing operations before income taxes by $57 million and decreased adjusted pre-tax income by $6 million. The out of period adjustments are primarily related to income t ax liabilities and ceded loss adjustment expenses. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net Income attributable to AIG for the years ended December 31, 2015 and 2014 would have decrea sed by $67 million and $12 million, respectively. For the year ended December 31, 2015, we recorded out of period adjustments relating to prior years that decreased Net income attributable to AIG by $156 million, decreased Income from continuing operations before income taxes by $376 million and decreased adjusted pre-tax income by $235 million. The out of period adjustments are primarily related to impairments of Other invested assets and changes in loss reserves and income tax liabilities. Had these adjus tments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the year ended December 31, 2014 would have decreased by $51 million. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 . Summary of Significant Accounting Policies The following table identifies our significant accounting policies presented in other Notes to these Consolidated Financial Statements, with a reference to the Note where a detailed description can be found: Note 6 . Investments Fixed maturity and equity securities Other invested assets Short-term investments Net investment income Net realized capital gains (losses) Other-than-temporary impairments Note 7 . Lending Activities Mortgage and other loans receivable – net of allowance Note 8 . Reinsurance Reinsurance assets – net of allowance Retroactive reinsurance Note 9 . Deferred Policy Acquisition Costs Deferred policy acquisition costs Amortization of deferred po licy acquisition costs Note 10 . Variable Interest Entities Note 11 . Derivatives and Hedge Accounting Derivative assets and liabilities, at fair value Note 12 . Goodwill Note 13 . Insurance Liabilities Liability for unpaid losses and loss adjustment expenses Discounting of reserves Future policy benefits Policyholder contract deposits Other policyholder funds Note 14 . Variable Life and Annuity Contracts Note 15 . Debt Long-term debt Note 16 . Contingencies, Commitments and Guarantees Legal contingencies Note 18 . Earnings Per Share Note 23 . Income Taxes Other significant accounting policies Premiums for short-duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and e arned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired ter ms of coverage. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract. As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflec ting the inception dates of the underlying policies throughout the year. Reinsurance premiums ceded under prospective reinsurance agreements are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. Prem iums for long-duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. Policy fees represent fees recognized from universal life and investment-type produc ts consisting of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. Policy fees are recognized as revenues in the period in which they are assessed against policyholders , unless the fees are designed to compensate AIG for services to be provided in the future. Fees deferred as unearned revenue are amortized in relation to the incidence of expected gross profits to be realized over the estimated lives of the contracts, si milar to DAC. Other income includes advisory fee income from the Life and Retirement broker dealer business, as well as legal recoveries of $ 27 million, $ 44 million and $ 94 million from leg acy crisis and other matters in 2017 , 2016 and 2015 , respectively. Other income from our Other Operations category consists of the following: Changes in fair value relating to financial assets and liabilities for which the fa ir value option has been elected. Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, a s applicable. Dividend income from common and preferred stock and earnings distributions from other investments. Changes in the fair value of other securities sold but not yet purchased, futures, hybrid financial instruments, securities purchased under agr eements to resell, and securities sold under agreements to repurchase. Income earned on real estate based investments and related realized gains and losses from sales, property level impairments and financing costs. Exchange gains and losses resulting from foreign currency transactions. Earnings from private equity funds and hedge fund investments accounted for under the equity method. Changes in the fair value of derivatives at AIG Financial Products Corp. and related subsidiaries (collectively AIGFP). Cas h represents cash on hand and non-interest-bearing demand deposits. Short-term investments consist of interest -bearing cash equivalents, time deposits, securities purchased under agreements to resell, and investments, such as commercial paper, with origina l maturities within one year from the date of purchase. Premiums and other receivables – net of allowance include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the Direct Investment book (DIB) and Global Capital Markets (GCM) and other receivables. Trade receivables for GCM include cash collateral posted to derivative counterparties that is not eligible to be netted against derivative liabilities. The allowance for doubtful accounts on premiums and other receivables was $ 236 million and $ 279 million at December 31, 2017 and 2016 , respectively. Other assets consist of sales inducement assets, prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, restricted cash and derivative assets. We offer sales inducements which include enhanced crediting rates or bonus payments to co ntract holders (bonus interest) on certain annuity and investment contract products. Sales inducements provided to the contract holder are recognized in Policyholder contract deposits in the Consolidated Balance Sheets. Such amounts are deferred and amorti zed over the life of the contract using the same methodology and assumptions used to amortize DAC (see Note 9 herein) . To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must als o demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest, and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $ 738 million and $ 808 million at December 31, 2017 and 2016 , respectively. The amortization expense associated with these assets is reported within Intere st credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $ 94 million, $ 77 million and $ 88 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and equipment). Expenditures for maintenance and repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically a ssess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized usi ng the straight-line method over a period generally not exceeding five years. Real estate, fixed assets and other long-lived assets are assessed for impairment when impairment indicators exist. Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the account assets. Separate accounts may also include deposits for funds held under st able value wrap funding agreements, although the majority of stable value wrap sales are measured based on the notional amount included in assets under management and do not include the receipt of funds. For a more detailed discussion of separate accou nts see Note 14 herein . Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase, securities sold but not yet purchased, derivative liabilities and deferred gains on retroactive reinsurance agreements . We have entered into certain insurance a nd reinsurance contracts, primarily in our General Insurance companies, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on such contracts, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the Consolidated Balance Sheets. Net proceeds of these deposits are invested and generate Net investment income. As amounts are paid, consistent with the underlying contracts, the deposit liab ility is reduced. Also included in Other liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets. Securities sold but not yet purchased represent sales of securiti es not owned at the time of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Fair values of securities sold but not yet purchased are based on current market prices. Foreign currency: Fin ancial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respectiv e subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. Income statement accounts expressed in functional currencies a re translated using average exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a consolidated e ntity are remeasured into that entity’s functional currency resulting in exchange gains or losses recorded in income. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are reco rded in income. Non-redeemable noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Accounting Standards Adopted During 2017 Derivative Contract Novations In March 2016, the F inancial 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-designat ion 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 consolid ated financial condition, results of operations 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 tha t 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 conside r whether (1) the amount paid upon settlement 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 exercisable. 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 wh ich the investment had been held. 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. Interest Held through Related Parties that are under 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 ne w 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 characteristics 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, r esults of operations or cash flows. 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 evaluating 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 transfer red 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. We adopted the standard on October 1, 2017. The impact of the standa rd is primarily related to our investments in real estate. As a result of the adoption, we anticipate that future acquisitions of certain real estate investments will no longer meet the definition of a business and will be treated as asset acquisitions. As a result, no goodwill would be recognized from these investments and certain costs can be capitalized as part of asset acquisitions. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operat ions or cash flows. Future Application of Accounting Standards Revenue Recognition In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other activities. We will adopt this standard using the modified retrospective approach on its required effective date of January 1, 2018. Our analysis of revenues indicates that substantially all of our revenues are from sources excluded from the scope of the standard. For those revenue sources within the scope of the standard, there are no m aterial changes in the timing or measurement of revenues based upon the guidance. As substantially all of our revenue sources are excluded from the scope of the standard, the adoption of the standard will not have a material effect on our reported consoli dated financial condition, results of operations, cash flows or required disclosures. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued an accounting standard that will require equity investments tha t do not follow the equity method of accounting or are not subject to consolidation to be measured 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 comprehensive 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. We will adopt t his standard on its effective date of January 1, 2018 using the modified retrospective approach. Based on our review, substantially all of our assets and liabilities are not within the scope of the standard. The adoption of the standard will not have a ma terial effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Leases In February 2016, the FASB issued an accounting standard that will require lessees with lease terms of more than 12 months to recognize a right of use asset and a corresponding lease liability on their balance sheets. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. We plan to adopt the standard on its effective date of January 1, 2019 using a modified retrospective approach upon adoption. We are currently quantifying the expected recognition on our balance sheet for a right to use asset and a lease liability as required by the standard. We do not expect the impact of the standard to have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Financial Instruments - Credit Losses In June 2016, the FASB issued an accoun ting 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 with a new “current expected credit loss model” that generally will result in earlier recognition of credit losses. The standard will apply to financial assets subject to credit losses, including loans measured at amortized cost, reinsurance receivables and certain off-balance sheet credit expos ures. Additionally, the impairment of available-for-sale debt securities, including purchased credit deteriorated securities, are subject to the new guidance and will be measured in a similar manner, except that losses will be recognized as allowances rat her than reductions in the amortized cost of the securities. The standard will also 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 co ntinuing to develop our implementation plan to adopt the standard and are assessing the impact of the standard on our reported consolidated financial condition, results of operations, cash flows and required disclosures. While we expect an increase in our allowances for credit losses for the financial instruments within scope of the standard, given the objective of the new standard, the amount of any change will be dependent on our portfolios’ composition and quality at the adoption date as well as economi c 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 flows. The amendments provide clarity on the treatment of eight specifically defined types of cash inflows and outflows. We will adopt this standard retrospectively on its effective date of January 1, 2018 . The standard addresses presentation in the statement of cash flows only and will have no effect on our reported consolidated financial condition, results of operations or required disclosures. Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB iss ued 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. We will adopt the s tandard on its effective date of January 1, 2018 using a modified retrospective approach. The adoption of this standard will not have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclos ures. 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 restricted cash or restricted cash equivalents in the statement of cash flows. We will adopt the standard retrospectively on its effective date of January 1, 2018. The standard addresse s presentation of restricted cash in the Statement of Cash Flows only and will have no effect on our reported consolidated financial condition, results of operations or required disclosures. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued an accounting standard that eliminates the requirement to calculate the implied fair value of goodwill, through a hypothetical purchase price allocation, to measure a goodwill impairment charge. Instead, entities will record an impairment char ge based on the excess of a reporting unit’s carrying amount over its fair value not to exceed the total amount of goodwill allocated to that reporting unit. An entity should also consider income tax effects from tax deductible goodwill on the carrying am ount of the reporting unit when measuring the goodwill impairment loss, if applicable. The standard is effective on January 1, 2020, with early adoption permitted. We are evaluating the timing of our adoption. Any impact of the standard will be dependent on the market conditions of the reporting units at the time of adoption. Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued an accounting standard that clarifies the scope of the derecognition guidanc e for the sale, transfer and derecognition of non-financial assets to noncustomers that aligns with the new revenue recognition principles. The standard also adds new accounting for partial sales of nonfinancial assets (including in substance real estate) that requires an entity to derecognize a nonfinancial asset when it 1) ceases to have a controlling financial interest in the legal entity that holds the asset based on the consolidation model and 2) transfers control of the asset based on the revenue rec ognition model. We will adopt t his standard on its effective date of January 1, 2018 under the modified retrospective approach. Based on our evaluatio n, we do not expect the standard to have a material impact on our reported consolidated financial conditio n, result s of operations, cash flows or required disclosures. 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 compone nt 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 presented in the income statement. The amendments also allow only the service cost component to be eligible for capitalization when applicable. We will adopt this standard on its effective date of January 1, 2018. The standard primarily addres ses the presentation of the service cost component of net periodic benefit costs in the income statement. AIG’s U.S. pension plans are frozen and no longer accrue benefits, which are reflected as service costs. Therefore, the standard will have no material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued an accounting standard that shortens the amortiza tion period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. The standard does not require an accounting change for securities held at a discount, which continue to be amortized to maturity. We plan to adopt the standard retrospectively on its effective date, January 1, 2019. We do not expect the standard to have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclo sures. Modification of Share-Based Payment Awards In May 2017, the FASB issued an accounting standard that provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. We will prospectively adopt this standard on its effective date of January 1, 2018 and do not expect the standard to have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Derivatives and Hedging In August 2017, the FASB issued an accounting standard that improves and expands hedge accounting for both financial and commodity risks. The provisions of the amendment are intended to better align the accounting with an entit y’s risk management activities, enhance the transparency on how the economic results are presented in the financial statements and the footnote, and simplify the application of hedge accounting treatment. The standard is effective on January 1, 2019, with early adoption permitted. We are evaluating the timing of adoption and are assessing the impact of the standard on our reported consolidated financial condition, results of operations, cash flows and required disclosures. Reclassification of Certain Tax E ffects from Accumulated Other Comprehensive Income In February 2018, the FASB issued an accounting standard that allows the optional reclassification of stranded tax effects within accumulated other comprehensive income to retained earnings that arise due to the enactment of the Tax Cuts and Jobs Act of 2017 (Tax Act). The amount of the reclassification would reflect the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of enactment of the Tax Act and other income tax effects of the Tax Act on items remaining in accumulated other comprehensive income. We plan to early adopt the standard using a retrospective approach effective January 1, 2018. For more i nformation on the adoption of the Tax Act, see Note 23. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 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. In the fourth quarter of 2017 , we finalized our plan to reorganize our operating model . Pri or to the fourth quarter of 2017 , we reported our results as follows: Commercial Insurance busines s included our Liability and Financial Lines and Property and Special Risks operating segment s ; Consumer Insura nce business included our Individual Retirement , Group Retirement, Life Insurance and Personal Insurance operating segments Other Operations category consisted of businesses and items not allocated to our operating segments, including Institutional Markets , United Guaranty and Fuji Life . Legacy Portfolio segment consisted of Legacy Insurance Lines represent ing exited or discontinued product lines, policy forms or distribution channels. We now report our results of operations as follows: General Insurance General Insurance business is presented as two operating segments: North America — consists of insurance businesses in the United States, Canada and Bermuda. International — consists of insurance businesses in Japan, United Kingdom, Europe, Asia Pacific, Latin America, Puerto Rico, Australia, the Middle East and Africa. Results are presented before internal reinsurance transactions. North America and International operating segments consist of the following products: – Commercial Lines — consists of L iability, Financial Lines, Property and Special Risks. – Pe rsonal Insurance — consists of P ersonal Lines and Accident and Health. Life and Retirement Life and Retirement business is presented as four operating segments: Individual Retirement — consists of fixed annuities, fixed index annuities, variable annuities and retail mutual funds. Group Retirement — consists of group mutual funds, group fixed annuities, group variable annuities, individual annuity and investment products, financial planning and advisory se rvices. Life Insurance — primary products in the U.S. include term life and universal life insurance. International operations include distribution of life and health products in the UK and Ireland. Institutional Markets — consists of stable value wrap products, structured settlement and pension risk transfer annuities, corporate- and bank-owned life insurance and guaranteed investment contracts (GICs). Other Operations The Other Operations category consists of: Income fr om assets held by AIG Parent and other corporate subsidiaries. General operating expenses not attributable to specific reporting segments. Interest expense. Blackboard — a data-enabled, digital subsidiary that provides the commercial insurance industry wit h alternative solutions using digital technology, data analytics and automation United Guaranty — Mortgage insurance protects mortgage lenders and investors against the increased risk of borrower default related to high loan-to-value mortgages. The sale of this business was completed on December 31, 2016. Fuji Life — consists of term insurance, life insurance, end owment policies and annuities. The sale of this business was completed on April 30, 2017. Legacy Portfolio The Legacy Portfolio segment consists of: Legacy Insurance Lines represent exited or discontinued product lines, policy forms or distribution channels. Legacy General Insurance Run-Off Lines — consists of asbestos and environmental exposures and other exposures within certain Property and Cas ualty profit centers no longer actively marketed , including excess workers’ compensation, environmental impairment liability, public entity liability, accident & health, physicians and surgeons professional liability, and various other workers’ compensation and general liability exposures. Legacy Life and Retirement Run-Off Lines — include whole life, long- term care and exited accident & health product lines. Also includes certain structu red set tlement, pension risk transfer annuities and single premium immediate annuities written prior to April 2012. Legacy Investments — include investment classes that we have placed into run-off. On December 31, 20 16, we completed the sale of United Guaranty to Arch. See Note 1 for a further discussion. In the second quarter of 2015, a United Guaranty subsidiary and certain of our General Insurance companies entered into a 50 percent quota share reinsurance agreement whereby the United Guaranty subsidiary (1) ceded 50 percent of the risk relating to policies written in 2014 that were current as of January 1, 2015 and (2) ceded 50 percent of the risk relating to all policies written in 2015 and 2016, each in exchange for a 30 percent ceding commission and r eimbursements of 50 percent of the losses and loss adjustment expenses incurred on covered policies. Beginning in the third quarter of 2016, the effect of this intercompany reinsurance arrangements is included in the results of Property and Special Risks a nd Other Operations for all periods presented. Previously, this arrangement was eliminated for purposes of segment reporting. Concurrent wit h the closing of the sale of United Guaranty , we amended and restated this arrangement and expect the results of thi s arrangement to continue to be reported in Property and Special Risks. Investment income of the General Insurance c ompanies is attributed to the North America and International operating segments based on an internal investment income allocation model. The model estimates investable funds based primarily on loss reserves and unearned premiums . Investment income of the Life and Retirement c ompanies is attributed to the Individual Retirement, Group Retirement, Life Insurance and Institutional Markets operating segments as w ell as the Legacy Life and Retirement Run-Off Lines based on invested assets in segregated product line portfolios; income from invested assets in excess of liab ilities is allocated to product lines based on internal capital estimates. We evaluate segment performance based on adjusted revenues and adjusted pre-tax income (loss). Adjusted rev enues and adjusted pre-tax income (loss) are derived by excluding certain items from total revenues and net income (loss) attributable to AIG, respectively. For the items excluded from adjusted revenues and adjusted pre-tax income (loss) see the table belo w. The following table presents AIG’s continuing operations by operating segment: Net Adjusted Total Investment Interest Amortization Pre-Tax (in millions) Revenues Income Expense of DAC Income (Loss) 2017 General Insurance North America $ 14,600 $ 3,145 $ 31 $ 1,305 $ (232) International 15,094 523 (9) 2,460 (581) Total General Insurance 29,694 3,668 22 3,765 (813) Life and Retirement Individual Retirement 5,514 4,013 58 415 2,289 Group Retirement 2,848 2,164 32 84 1,004 Life Insurance 4,056 1,044 13 239 274 Institutional Markets 3,168 595 6 5 264 Total Life and Retirement 15,586 7,816 109 743 3,831 Other Operations 1,413 53 968 (9) (1,405) Legacy Portfolio 4,391 2,776 122 76 1,470 AIG Consolidation and elimination (308) (280) (53) 4 75 Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 50,776 $ 14,033 $ 1,168 $ 4,579 $ 3,158 Reconciling Items from adjusted pre-tax income to pre-tax income (loss): Changes in fair value of securities used to hedge guaranteed living benefits 146 146 - - 146 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - (291) 303 Other income (expense) - net (49) - - - - Gain on extinguishment of debt - - - - 5 Net realized capital losses (1,380) - - - (1,380) Income from divested businesses - - - - 68 Non-operating litigation reserves and settlements 27 - - - 129 (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - (303) Net loss reserve discount (benefit) charge - - - - (187) Pension expense related to a one-time lump sum payment to former employees - - - - (60) Restructuring and other costs - - - - (413) Revenues and Pre-tax income $ 49,520 $ 14,179 $ 1,168 $ 4,288 $ 1,466 2016 General Insurance North America $ 17,005 $ 3,041 $ 28 $ 1,444 $ (2,399) International 16,135 513 - 2,677 348 Total General Insurance 33,140 3,554 28 4,121 (2,051) Life and Retirement Individual Retirement 5,758 3,878 50 298 2,269 Group Retirement 2,769 2,146 26 129 931 Life Insurance 3,818 1,035 12 182 (37) Institutional Markets 1,433 563 4 4 265 Total Life and Retirement 13,778 7,622 92 613 3,428 Other Operations 2,517 207 978 72 (1,011) Legacy Portfolio 5,250 2,913 282 108 1,007 AIG Consolidation and elimination (494) (351) (120) (117) 42 Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 54,191 $ 13,945 $ 1,260 $ 4,797 $ 1,415 Reconciling Items from adjusted pre-tax income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 120 120 - - 120 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - (276) 195 Other income (expense) - net (44) - - - - Loss on extinguishment of debt - - - - (74) Net realized capital losses (1,944) - - - (1,944) Loss from divested businesses - - - - 545 Non-operating litigation reserves and settlements 44 - - - 41 (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - 42 Net loss reserve discount (benefit) charge - - - - 427 Pension expense related to a one-time lump sum payment to former employees - - - - (147) Restructuring and other costs - - - - (694) Revenues and Pre-tax income $ 52,367 $ 14,065 $ 1,260 $ 4,521 $ (74) 2015 General Insurance North America $ 18,482 $ 3,196 $ 13 $ 1,699 $ 558 International 16,186 550 - 2,620 70 Total General Insurance 34,668 3,746 13 4,319 628 Life and Retirement Individual Retirement 6,450 3,805 27 431 1,812 Group Retirement 2,834 2,192 15 50 1,100 Life Insurance 3,771 1,034 7 311 (51) Institutional Markets 2,267 510 3 2 263 Total Life and Retirement 15,322 7,541 52 794 3,124 Other Operations 2,326 196 1,027 47 (825) Legacy Portfolio 5,771 2,928 292 102 1,133 AIG Consolidation and elimination (496) (315) (103) (26) (76) Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 57,591 $ 14,096 $ 1,281 $ 5,236 $ 3,984 Reconciling Items from adjusted pre-tax income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits (43) (43) - - (43) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - - (15) Other income (expense) - net (43) - - - - Loss on extinguishment of debt - - - - (756) Net realized capital gains 776 - - - 776 Loss from divested businesses (48) - - - (59) Non-operating litigation reserves and settlements 94 - - - 82 (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - (263) Net loss reserve discount (benefit) charge - - - - 71 Restructuring and other costs - - - - (496) Revenues and Pre-tax income $ 58,327 $ 14,053 $ 1,281 $ 5,236 $ 3,281 The following table presents AIG’s year-end identifiable assets and capital expenditures by legal entity category: Year-End Identifiable Assets Capital Expenditures (in millions) 2017 2016 2017 2016 General Insurance companies $ 114,841 $ 118,287 $ 239 $ 685 Life and Retirement companies 289,457 269,813 88 85 Other 105,425 122,016 156 349 AIG Consolidation and Elimination (11,422) (11,852) - - Total Assets $ 498,301 $ 498,264 $ 483 $ 1,119 The following table presents AIG’s consolidated total revenues and real estate and other fixed assets, net of accumulated depreciation, by major geographic area: Real Estate and Other Fixed Assets, Total Revenues * Net of Accumulated Depreciation (in millions) 2017 2016 2015 2017 2016 2015 North America $ 34,149 $ 36,871 $ 41,680 $ 1,630 $ 1,326 $ 1,819 International 15,371 15,496 16,647 892 1,334 1,316 Consolidated $ 49,520 $ 52,367 $ 58,327 $ 2,522 $ 2,660 $ 3,135 * Revenues are generally reported according to the geographic location of the reporting unit . International revenues consists of revenues from our General Insurance International operating segment. |
HELD-FOR-SALE CLASSIFICATION
HELD-FOR-SALE CLASSIFICATION | 12 Months Ended |
Dec. 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 business 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 classified as held-for-sale. At December 31, 2017 , we had no businesses classified as held-for-sale. At December 31, 2016 , 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 and certain related affiliates to Arch. This transaction closed on December 31, 2016 and we received proceeds of approximately $3.3 billion, consis ting of $2.2 billion of cash, and approximately $1.1 billion of newly issued Arch convertible non-voting common-equivalent preferred stock. We also received $261 million in pre-closing dividends from United Guaranty in the fourth quarter of 2016. However, due to pending regulatory approvals, United Guaranty Asia was not included in the December 31, 2016 closing and $40 million of cash consideration was retained by Arch. The sale of United Guaranty Asia was completed on July 1, 2017 and we received the $40 million cash proceeds. 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 s ubsidiary operations in Argentina, Chile, Colombia, Uruguay, Venezuela and Turkey. Fairfax will also acquire renewal rights for the portfolios of local business written by our operations in Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovaki a, and assume certain of our operating assets and employees. Total cash consideration to us is expected to be approximately $234 million. The transaction is closing on a country-by-country basis as the regulatory approvals are obtained. In the second quar ter of 2017, the sale of operations in Turkey as well as the renewal rights in Bulgaria, the Czech Republic, Hungary, Poland and Slovakia were completed, which resulted in total cash proceeds of $48 million. In the third quarter of 2017, the sale of the op erations in Colombia, Chile and Argentina were completed, which resulted in cash proceeds of $168 million. Substantially all of the operations and renewal rights that we agreed to sell Fairfax were sold by December 31, 2017. AIG Fuji Life Insurance On Nov ember 14, 2016, we entered into an agreement to sell Fuji Life to FWD Group, the insurance arm of Pacific Century Group. Total cash consideration to us was approximately $333 million. The sale resulted in a pr e- ta x loss of $ 591 m i ll i o n. The sale of Fuji Li fe was completed on April 30, 2017. The following table summarizes the components of assets and liabilities held-for-sale on the Consolidated Balance Sheets at December 31, 2016 : December 31, (in millions) 2016 Assets: Fixed maturity securities $ 6,045 Equity securities 149 Mortgage and other loans receivable, net 137 Other invested assets 2 Short-term investments 130 Cash 133 Accrued investment income 21 Premiums and other receivables, net of allowance 351 Reinsurance assets, net of allowance 8 Deferred policy acquisition costs 471 Other assets 273 Assets of businesses held for sale 7,720 Less: Loss Accrual (521) Total assets held for sale $ 7,199 Liabilities: Liability for unpaid losses and loss adjustment expenses $ 402 Unearned premiums 297 Future policy benefits for life and accident and health insurance contracts 4,579 Other policyholder funds 378 Long-term debt - Other liabilities 450 Total liabilities held for sale $ 6,106 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 5 . Fair Value Measurements Fair Value Measurements on a Recurring Basis We carry certain of our financial instruments at fair value. We define the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumpt ions. The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. We maximize the use of observable inputs and minimize the use of unobservable inputs when m easuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have les s observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instru ment is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions. Fair Value Hierarchy Assets and liabilities recorded at fair value in the Consolidated Balance Sheet s are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs: Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments. Level 2: Fair value measurements based on inputs other than quoted prices included in Lev el 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3: Fair value measurements based on valuation techniques that us e significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability. In certain cases, the inputs used to measure fair value may fall into di fferent levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement i n its entirety. The following is a description of the valuation methodologies used for instruments carried at fair value. These methodologies are applied to assets and liabilities across the levels discussed above, and it is the observability of the inputs used that determines the appropriate level in the fair value hierarchy for the respective asset or liability. Valuation Methodologies of Financial Instruments Measured at Fair Value Incorporation of Credit Risk in Fair Value Measurements Our Own Credit Ri sk. Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposure to us at the balance sheet date by reference to observable AIG CDS or cas h bond spreads. We calculate the effect of credit spread changes using discounted cash flow techniques that incorporate current market interest rates. A derivative counterparty’s net credit exposure to us is determined based on master netting agreements, w hen applicable, which take into consideration all derivative positions with us, as well as collateral we post with the counterparty at the balance sheet date. For a description of how we incorporate our own credit risk in the valuation of embedded derivat ives related t o certain annuity and life insurance products see Embedded Derivatives within Policyholder Contract Deposits below. Counterparty Credit Risk. Fair value measurements for freestanding derivatives incorporate counterparty credit by determining the explicit cost for us to protect against our net credit exposure to each counterparty at the balance sheet date by reference to observable counterparty CDS spreads, when available. When not available, other directly or indirectly observable credit spreads will be used to derive the best estimates of the counterparty spreads. Our net credit exposure to a counterparty is determined based on master netting agreements, which take into consideration all derivative positions with the counterparty, as well as collateral posted by the counterparty at the balance sheet date. Fair values for fixed maturity securities based on observable market prices for identical or similar instruments implicitly incorporate counterparty credit risk. Fair values for f ixed maturity securities based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or other observable information. For fair values measured based on int ernal models, t he cost of credit protection is determined under a discounted present value approach considering the market levels for single name CDS spreads for each specific counterparty, the mid - market value of the net exposure (reflecting the amount of protection required) and the weighted average life of the net exposure. CDS spreads are provided to us by an independent third party. We utilize an interest rate based on the benchmark London Interbank Offered Rate (LIBOR) curve to derive our discount rat es. While this approach does not explicitly consider all potential future behavior of the derivative transactions or potential future changes in valuation inputs, we believe this approach provides a reasonable estimate of the fair value of the assets and l iabilities, including consideration of the impact of non-performance risk. Fixed Maturity Securities Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure fixed maturity securitie s at fair v alue . Market price data is generally obtained from dealer markets. We employ independent third - party valuation service providers to gather, analyze, and interpret market information to derive fair value estimates for individual investments, based upon mark et - accepted methodologies and assumptions. The methodologies used by these independent third - party valuation service providers are reviewed and understood by management, through periodic discussion with and information provided by the independent third-par ty valuation service providers . In addition, as discussed further below, control processes are applied to the fair values received from independent third - party valuation service providers to ensure the accuracy of these values. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of market- accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and va rious assumptions, provide a single fair value measurement for individual securities. The inputs used by the valuation service providers include, but are not limited to, market prices from completed transactions for identical securities and transactions fo r comparable securities, benchmark yields, interest rate yield curves, credit spreads, prepayment rates, default rates, recovery assumptions, currency rates, quoted prices for similar securities and other market - observable information, as applicable. If fa ir value is determined using financial models, these models generally take into account, among other things, market observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, inter est rate, credit rating, industry sector, and when applicable, collateral quality and other security or issuer - specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We have control processes designed to ensure that the fair values received from independent third - party valuation service provider s are accurately recorded, that their data inputs and valuation techniques are appropriate a nd consistently applied and that the assumptions used appear reasonable and consistent with the objective of determining fair value. We assess the reasonableness of individual security values received from independent third - party valuation service provider s through various analytical techniques, and have procedures to escalate related questions internally and to the independent third - party valuation service provider s for resolution. T o assess the degree of pricing consensus among various valuation service p rovider s for specific asset types, we conduct comparisons of prices received from available sources. We use these comparisons to establish a hierarchy for the fair values received from independent third - party valuation service provider s to be used for part icular security classes. We also validate prices for selected securities through reviews by members of management who have relevant expertise and who are independent of those charged with executing investing transactions. When our independent third - party v aluation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing market accepted valuation models. Broker prices may be based on an income approach, which converts expected future cash flows to a single present value amount, with specific considerati on of inputs relevant to particular security types. For structured securities, such inputs may include ratings, collateral types, geographic concentrations, underlying loan vintages, loan delinquencies and defaults, loss severity assumptions, prepayments, and weighted average coupons and maturities. When the volume or level of market activity for a security is limited, certain inputs used to determine fair value may not be observable in the market. Broker prices may also be based on a market approach that c onsiders recent transactions involving identical or similar securities. Fair values provided by brokers are subject to similar control processes to those noted above for fair values from independent third - party valuation service providers, including manage ment reviews. For those corporate debt instruments (for example, private placements) that are not traded in active markets or that are subject to transfer restrictions, valuations reflect illiquidity and non-transferability, based on available market evide nce. 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 comparable securities, adjusted for illiquidity and structure. Fa ir values determined internally are also subject to management review to ensure that valuation models and related inputs are reasonable. The methodology above is relevant for all fixed maturity securities including residential mortgage backed securities ( RMBS ) , commercial mortgage backed securities ( CMBS ) , collateralized debt obligations ( CDO ) , o ther asset -backed securities ( ABS ) and fixed maturity securities issued by government sponsored entities and corporate entities. Equity Securities Traded in Active Markets Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure equity securities at fair value. Market price data is generally obtained from exchange or dealer markets. Mortgage and Other Loans Receivable We estimate the fair value of mortgage and other loans receivable that are measured at fair value by using dealer quotations, discounted cash flow analyses and/or internal valuation models. The determinat ion of fair value considers inputs such as interest rate, maturity, the borrower’s creditworthiness, collateral, subordination, guarantees, past-due status, yield curves, credit curves, prepayment rates, market pricing for comparable loans and other releva nt factors. Other Invested Assets We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price. Subsequently, we generally obtain the fair value of these investments from net asset value information provided by the general partner or manager of the investments, the financial statements of which are generally audited annually. We consider observable market data and perform certain control procedures to validate the appropriateness of using the net asset value as a fair value measurement. The fair values of other investments carried at fair value, such as direct private equity holdings, are initially determined based on transaction price and are subseque ntly estimated based on available evidence such as market transactions in similar instruments, other financing transactions of the issuer and other available financial information for the issuer, with adjustments made to reflect illiquidity as appropriate. Short-term Investments For short-term investments that are measured at amortized cost, the carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limi ted exposure to credit risk. Securities purchased under agreements to resell (reverse repurchase agreements) are generally treated as collateralized receivables. We report certain receivables arising from securities purchased under agreements to resell a s Short-term investments in the Consolidated Balance Sheets. When these receivables are measured at fair value, we use market-observable interest rates to determine fair value. Separate Account Assets Separate account assets are composed primarily of regi stered and unregistered open-end mutual funds that generally trade daily and are measured at fair value in the manner discussed above for equity securities traded in active markets. Freestanding Derivatives Derivative assets and liabilities can be exchange - traded or traded over-the-counter (OTC). We generally value exchange - traded derivatives such as futures and options using quoted prices in active markets for identical derivatives at the balance sheet date. OTC derivatives are valued using market transact ions and other market evidence whenever possible, including market - based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When mode ls are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in the instrument, as well as the availability of pricing information in the market. We generally use similar model s to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives t hat trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment. For certain OTC derivatives that trade in less liquid markets, where we generally do not have corroborating market evidence to support significant model inputs and cannot verify the model to market transactions, the transaction price may provide the best estimate of f air value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. We will update valuation inputs in these models only when corroborated by evidence such as similar market transactions, independent third-party valuation service providers and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and cre dit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. We value our super senior credit default swap portfolio using prices obtained from vendors and/or co unterparties. The valuation of the super senior credit derivatives is complex because of the limited availability of market observable information due to the lack of trading and price transparency in certain structured finance markets. Our valuation metho dologies for the super senior CDS portfolio have evolved over time in response to market conditions and the availability of market observable information. We have sought to calibrate the methodologies to available market information and to review the assum ptions of the methodologies o n a regular basis. Embedded Derivatives within Policyholder Contract Deposits Certain variable annuity and equity - indexed annuity and life contracts contain embedded derivatives that we bifurcate from the host contracts and account for separately at fair value, with changes in fai r value recognized in earnings. These embedded derivatives are classified within Policyholder contract deposits. We have concluded these contracts contain eit her (i) a written option that guarantees a minimum accumulation value at maturity , (ii) a written option that guarantee s annual withdrawals regardless of underlying market performance for a specific period or for life, or (iii) equity - indexed written optio ns that meet the criteria of derivatives and must be bifurcated. The fair value of embedded derivatives contained in certain variable annuity and equity - indexed annuity and life contracts is measured based on actuarial and capital market assumptions relate d to projected cash flows over the expected lives of the contracts. These discounted cash flow projections primarily include benefits and related fees assessed, when applicable . In some instances, the projected cash flows from fees may exceed projected cas h flows related to benefit payments and therefore, at a point in time, the carrying value of the embedded derivative may be in a net asset position. The projected cash flows incorporate best estimate assumptions for policyholder behavior (including mortali ty, lapses, withdrawals and benefit utilization), along with an explicit risk margin to reflect a market participant ’s estimates of projected cash flows and policyholder behavior. Estimates of future policyholder behavior are subjective and based primarily on our historical experience. B ecause of the dynamic and complex nature of the proj ected cash flows w ith respect to embedded derivatives in our variable annuity con tracts, risk neutral valuations are used, which are calibrated to observable interest rate and equity option prices . Estimating the underlying cash flows for these products involves judgment s regarding expected market rates of return, market volatility, credit spreads, correlations of certain market variables , fund performance, discount rates an d policyholder behavior. The portion of fees attributable to the fair value of expected benefit payments are included within the fair value measurement of these embedded derivatives, and related fees are classified in net realized gain/loss as earned, cons istent with other changes in the fair value of these embedded policy derivatives. Any portion of the fees not attributed to the embedded derivatives are excluded from the fair value measurement and classified in policy fees as earned. With respect to embe dded derivatives in our equity - indexed annuity and life contracts, option pricing models are used to estimate fair value, taking into account assumptions for future equity index growth rates, volatility of the equity index, future interest rates, and our a bility to adjust the participation rate and the cap on equity - indexed credited rates in light of market conditions and policyholder behavior assumptions. Projected cash flows are discounted using the interest rate swap curve (swap curve), which is commonl y viewed as being consistent with the credit spreads for highly -rated financial institutions (S&P AA-rated or above). A swap curve shows the fixed-rate leg of a non-complex swap against the floating rate (for example, LIBOR) leg of a related tenor. We also incorporate our own risk of non-performance in the valuation of the embedded derivatives associated with variable annuity and equity - indexed annuity and life contracts. The non-performance risk adjustment reflects a market participant’s view of our c laims-paying ability by incorporating an additional spread to the swap curve used to discount projected benefit cash flows in the valuation of these embedded derivatives. The non-performance risk adjustment is calculated by constructing forward rates based on a weighted average of observable corporate credit indices to approximate the claims-paying ability rating of our Life and Retirement c ompanies. Long-Term Debt The fair value of non-structured liabilities is ge nerally determined by using market prices from exchange or dealer markets, when available, or discounting expected cash flows using the appropriate discount rate for the applicable maturity. We determine the fair value of structured liabilities and hybrid financial instruments (where performance is linked to structured interest rates, inflation or currency risks) using the appropriate derivative valuation methodology (described above) given the nature of the embedded risk profile. In addition, adjustments a re made to the valuations of both non-structured and structured liabilities to reflect our own creditworthiness based on the methodology described under the caption “Incorporation of Credit Risk in Fair Value Measurements – Our Own Credit Risk ” above. Borr owings under obligations of guaranteed investment agreements (GIAs), which are guaranteed by us, are recorded at fair value using discounted cash flow calculations based on interest rates currently being offered for similar contracts and our current market observable implicit credit spread rates with maturities consistent with those remaining for the contracts being valued. Obligations may be called at various times prior to maturity at the option of the counterparty. Interest rates on these borrowings are primarily fixed, vary by maturity and range up to 7.62 percent . Other Liabilities Other liabilities measured at fair value include certain securities sold under agreements to repurchase and certain securities sold but not yet purchas ed. Liabilities arising from securities sold under agreements to repurchase are generally treated as collateralized borrowings. We estimate the fair value of liabilities arising under these agreements by using market - observable interest rates. This methodo logy considers such factors as the coupon rate, yield curves and other relevant factors. Fair values for securities sold but not yet purchased are based on current market prices. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used: December 31, 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 $ 201 $ 2,455 $ - $ - $ - $ 2,656 Obligations of states, municipalities and political subdivisions - 16,240 2,404 - - 18,644 Non-U.S. governments 20 15,631 8 - - 15,659 Corporate debt - 133,003 1,173 - - 134,176 RMBS - 21,098 16,136 - - 37,234 CMBS - 13,217 624 - - 13,841 CDO/ABS - 8,131 8,651 - - 16,782 Total bonds available for sale 221 209,775 28,996 - - 238,992 Other bond securities: U.S. government and government sponsored entities 238 2,564 - - - 2,802 Obligations of states, municipalities and political subdivisions - - - - - - Non-U.S. governments - 57 - - - 57 Corporate debt - 1,891 18 - - 1,909 RMBS - 421 1,464 - - 1,885 CMBS - 485 74 - - 559 CDO/ABS - 604 4,956 - - 5,560 Total other bond securities 238 6,022 6,512 - - 12,772 Equity securities available for sale: Common stock 1,061 - - - - 1,061 Preferred stock 18 515 - - - 533 Mutual funds 110 4 - - - 114 Total equity securities available for sale 1,189 519 - - - 1,708 Other equity securities 589 - - - - 589 Mortgage and other loans receivable - - 5 - - 5 Other invested assets (a) - 1 250 - - 251 Derivative assets: Interest rate contracts 1 2,170 - - - 2,171 Foreign exchange contracts - 827 4 - - 831 Equity contracts 188 252 82 - - 522 Credit contracts - - 1 - - 1 Other contracts - - 20 - - 20 Counterparty netting and cash collateral - - - (1,464) (1,159) (2,623) Total derivative assets 189 3,249 107 (1,464) (1,159) 922 Short-term investments 2,078 537 - - - 2,615 Separate account assets 87,141 5,657 - - - 92,798 Total $ 91,645 $ 225,760 $ 35,870 $ (1,464) $ (1,159) $ 350,652 Liabilities: Policyholder contract deposits $ - $ 14 $ 4,136 $ - $ - $ 4,150 Other policyholder funds - - - - - - Derivative liabilities: Interest rate contracts 2 2,176 22 - - 2,200 Foreign exchange contracts - 1,241 4 - - 1,245 Equity contracts 2 19 - - - 21 Credit contracts - 14 263 - - 277 Other contracts - - 5 - - 5 Counterparty netting and cash collateral - - - (1,464) (1,249) (2,713) Total derivative liabilities 4 3,450 294 (1,464) (1,249) 1,035 Long-term debt - 2,888 - - - 2,888 Other liabilities 46 43 - - - 89 Total $ 50 $ 6,395 $ 4,430 $ (1,464) $ (1,249) $ 8,162 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 Other liabilities - - - - - - Total $ 17 $ 7,787 $ 3,489 $ (1,265) $ (1,521) $ 8,507 (a) Excludes investments that are measured at fair value using the net asset value ( NAV ) per share (or its equivalent), which totaled $ 6.0 billion and $ 6.7 billion as of December 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 acti ve market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. During the years ended December 31, 2017 and 2016 , we transferred $ 0.4 b illion and $ 1.1 billion, respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2 , because they are no longer considered actively traded. For similar reasons, during the years ended December 31, 2017 and 2016 , we transferred $ 113 million and $ 34 million, respectively, of securities issued by the U.S. government and government -sponsored entities from Level 1 to Level 2. Additionally, we transferr ed $126 million of preferred stock from Level 1 to Level 2 during the year ended December 31, 2017. We had no material transfers of preferred stock from Level 1 to Level 2 during the year ended December 31, 2016. There were no material tran sfers from Level 2 to Level 1 during the years ended December 31, 2017 and 2016 . Changes in Level 3 R ecurring F air V alue M easurements The following tables present changes during the years ended December 31, 2017 an d 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 Consolidated Balance Sheet s at December 31, 2017 and 2016 : Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year December 31, 2017 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,040 $ 5 $ 167 $ 216 $ 8 $ (32) $ - $ - $ 2,404 $ - Non-U.S. governments 17 (9) 9 (9) - - - - 8 - Corporate debt 1,133 (3) 20 (259) 886 (604) - - 1,173 - RMBS 16,906 1,071 942 (2,763) 19 (39) - - 16,136 - CMBS 2,040 35 11 (748) 20 (734) - - 624 - CDO/ABS 7,835 (19) 155 743 - (63) - - 8,651 - Total bonds available for sale 29,971 1,080 1,304 (2,820) 933 (1,472) - - 28,996 - Other bond securities: Corporate debt 17 3 - 10 - (12) - - 18 1 RMBS 1,605 191 - (313) 14 (33) - - 1,464 113 CMBS 155 4 - 24 9 (118) - - 74 5 CDO/ABS 5,703 841 - (1,582) - (6) - - 4,956 362 Total other bond securities 7,480 1,039 - (1,861) 23 (169) - - 6,512 481 Equity securities available for sale: Common stock - - - 1 - (1) - - - - Total equity securities available for sale - - - 1 - (1) - - - - Other equity securities - - - - - - - - - - Mortgage and other loans rece |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS | |
INVESTMENTS | 6 . Investments Fixed Maturity and Equity Securities Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or are measured at fair value at our election. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2017 or 2016 . Fixed maturity and equity securities classified as available for sale are carried at fair value. Unrealized gains and losses from available for sale investments in fixed maturity and equity securities are reported as a separ ate component of Accumulated other comprehensive income, net of deferred policy acquisition costs and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity and equity securities measured at fair value at our election are reflected in Net investment income (for insurance subsidiaries) or Other income (for Other Operations ). Investments in fixed maturity and equity securities are recorded on a trade-date basis. Premiums and discounts arising from the purc hase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain RMBS, CMBS and CDO/ABS, (collectively, structured securities), rec ognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updat ed prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that a re not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For purchased credit impaired (PCI) securities, at acquisition, the difference between the undiscounted ex pected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into net investment income over the securities’ remaining lives on a n effective level -yield basis. Subsequently, effecti ve yields recognized on PCI securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising d ue to reasons other than interest rate changes. Securities Available for Sale The following table presents the amortized cost or cost and fair value of our available for sale securities: Other-Than- Amortized Gross Gross Temporary Cost or Unrealized Unrealized Fair Impairments (in millions) Cost Gains Losses Value in AOCI (a) December 31, 2017 Bonds available for sale: U.S. government and government sponsored entities $ 2,532 $ 160 $ (36) $ 2,656 $ - Obligations of states, municipalities and political subdivisions 17,377 1,297 (30) 18,644 - Non-U.S. governments 15,059 717 (117) 15,659 - Corporate debt 126,310 8,666 (800) 134,176 17 Mortgage-backed, asset-backed and collateralized: RMBS 34,181 3,273 (220) 37,234 1,568 CMBS 13,538 408 (105) 13,841 42 CDO/ABS 16,464 370 (52) 16,782 29 Total mortgage-backed, asset-backed and collateralized 64,183 4,051 (377) 67,857 1,639 Total bonds available for sale (b) 225,461 14,891 (1,360) 238,992 1,656 Equity securities available for sale: Common stock 703 379 (21) 1,061 - Preferred stock 504 29 - 533 - Mutual funds 98 16 - 114 - Total equity securities available for sale 1,305 424 (21) 1,708 - Total $ 226,766 $ 15,315 $ (1,381) $ 240,700 $ 1,656 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 impairments recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date. (b) At December 31, 2017 and 2016 , bonds available for sale held by us that were below investment grade or not rated totaled $ 31.5 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 unrealized loss position: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (in millions) Value Losses Value Losses Value Losses December 31, 2017 Bonds available for sale: U.S. government and government sponsored entities $ 770 $ 23 $ 332 $ 13 $ 1,102 $ 36 Obligations of states, municipalities and political subdivisions 586 6 646 24 1,232 30 Non-U.S. governments 3,511 54 857 63 4,368 117 Corporate debt 15,578 453 7,291 347 22,869 800 RMBS 6,212 99 3,790 121 10,002 220 CMBS 3,408 46 1,389 59 4,797 105 CDO/ABS 1,455 24 822 28 2,277 52 Total bonds available for sale 31,520 705 15,127 655 46,647 1,360 Equity securities available for sale: Common stock 136 21 - - 136 21 Mutual funds 1 - - - 1 - Total equity securities available for sale 137 21 - - 137 21 Total $ 31,657 $ 726 $ 15,127 $ 655 $ 46,784 $ 1,381 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 December 31, 2017 , we held 7,448 and 74 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 1,920 individual fixed maturity securities were in a continuous unrealized loss position for 12 months or more. We did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 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 si gnificant declines, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and oth er available market data. Contractual Maturities of Fixed Maturity Securities Available for Sale The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity: Total Fixed Maturity Securities Fixed Maturity Securities in a Loss December 31, 2017 Available for Sale Position Available for Sale (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 7,932 $ 8,071 $ 1,526 $ 1,515 Due after one year through five years 47,179 49,093 7,764 7,571 Due after five years through ten years 42,617 43,944 11,559 11,143 Due after ten years 63,550 70,027 9,705 9,342 Mortgage-backed, asset-backed and collateralized 64,183 67,857 17,453 17,076 Total $ 225,461 $ 238,992 $ 48,007 $ 46,647 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 maturities of our available for sale securities: Years Ended December 31, 2017 2016 2015 Gross Gross Gross Gross Gross Gross Realized Realized Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Gains Losses Fixed maturity securities $ 725 $ 300 $ 801 $ 800 $ 517 $ 423 Equity securities 107 19 1,072 15 1,060 28 Total $ 832 $ 319 $ 1,873 $ 815 $ 1,577 $ 451 For the years ended December 31, 2017 , 2016 and 2015 , the aggregate fair value of available for sale securities sold was $ 31.3 billion, $ 30.2 billion and $ 28.7 billion, which resulted in net realized capital gains of $ 0.5 billion, $ 1.1 billion and $ 1.1 billion, respectively. Other Securities Measured at Fair Value The following table presents the fair value of ot her securities measured at fair value based on our election of the fair value option: December 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 $ 2,802 21 % $ 2,939 20 % Obligations of states, municipalities and political subdivisions - - - - Non-U.S. governments 57 1 51 - Corporate debt 1,909 14 1,772 12 Mortgage-backed, asset-backed and collateralized : RMBS 1,885 14 2,025 14 CMBS 559 4 603 4 CDO/ABS and other collateralized * 5,560 42 6,608 47 Total mortgage-backed, asset-backed and collateralized 8,004 60 9,236 65 Total fixed maturity securities 12,772 96 13,998 97 Equity securities 589 4 482 3 Total $ 13,361 100 % $ 14,480 100 % * Inclu des $ 251 m illion and $ 421 m illion of U.S. g overnment agency backed ABS at December 31, 2017 and 2016 , respectively. Other Invested Assets The following table summarizes the carrying amounts of other invested assets: December 31, (in millions) 2017 2016 Alternative investments (a) (b) $ 11,308 $ 13,379 Investment real estate (c) 8,258 6,900 Aircraft asset investments (d) 206 321 Investments in life settlements - 2,516 All other investments 1,050 1,422 Total $ 20,822 $ 24,538 (a) At December 31, 2017 , included hedge funds of $ 5.8 billion, private equity funds of $ 5.0 billion, and affordable housing partnerships of $ 543 million. At December 31, 2016 , included hedge funds of $ 7.2 billion, private equity funds of $ 5.5 billion, and affordable housing partnerships of $ 625 million. (b) Approximately 75 percent of our hedge fund port folio is available for redemption in 2018 , an additional 25 percent will be available between 2019 and 2024. (c) Net of accumulated depreciation of $ 515 million and $ 451 million in 2017 and 2016 , respectively. (d) Consists of investments in aircraft equipment held in a consolidated trust. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, and other investment partnerships for which we have elected th e fair value option are reported at fair value with changes in fair value recognized in Net investment income with the exception of investments of AIG’s Other Operations, for which such changes are reported in Other income. Other investments in hedge fund s, private equity funds and other investment partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influence over the respective partnerships are reported at fair value with changes in fair va lue recognized as a component of Accumulated other comprehensive income. These investments are subject to other-than-temporary impairment evaluations (see discussion below on evaluating equity investments for other-than-temporary impairment) . The gross unr ealized loss recorded in Accumulated other comprehensive income on such investments was $ 45 million and $ 32 million at December 31, 2017 and 2016 , respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in continuous unrealized loss positions for less than 12 months. Other Invested Assets – Equity Method Investments We account for hedge funds, private equity funds, affor dable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income with the exception of investments of AIG’s Other Operations, for which such changes are reported in Other income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of eac h of these investments, which is one to three months prior to the end of our reporting period. The financial statements of these investees are generally audited annually. Summarized Financial Information of Equity Method Investees The following is the aggregated summarized financial information of our equity method investees , including those for which the fai r value option has been elected: Years Ended December 31, (in millions) 2017 2016 2015 Operating results: Total revenues $ 13,066 $ 9,512 $ 22,055 Total expenses (6,835) (7,361) (3,898) Net income $ 6,231 $ 2,151 $ 18,157 At December 31, (in millions) 2017 2016 Balance sheet: Total assets $ 132,708 $ 158,306 Total liabilities $ (35,585) $ (37,336) The following t able presents the carrying amount and ownership percentage of equity method investments at December 31, 2017 and 2016 : 2017 2016 Carrying Ownership Carrying Ownership (in millions, except percentages) Value Percentage Value Percentage Equity method investments $ 9,050 Various $ 10,756 Various Summarized financial information for these equity method investees may be presented on a lag, due to the unavailability of information for the investees at our respective balance sheet dates, and is included for the periods in which we held an equity method ownership interest . Other Investments Also included in Other invested assets are real estate held for investment and investments in aircraft equipment held in a consolidated trust. These investments are reported at cost, less depreciation and are s ubject to impairment review, as discussed below. Investments in Life Settlement s Investments in life settlements are accounted for under the investment method. Under the investment method, we recognize our initial investment in life settlements at the tran saction price plus all initial direct external costs. Continuing costs to keep the policy in force, primarily life insurance premiums, increase the carrying amount of the investment. We recognize income on individual investments in life settlements when th e insured dies, at an amount equal to the excess of the investment proceeds over the carrying amount of the investment at that time. These investments are subject to impairment review, as discussed below. During 2017 , 2016 and 2015 , income recognized on investments in life settlements was $ 266 million, $ 453 million and $ 332 million, respectively, and is included in Net investment income in the Consolidated Statements of Income. N et Investment Income Net investment income represents income primarily from the following sources: Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. Dividend income from common and preferred stock s . Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. Earnings from alternative investments. The difference between the carrying amount of an investment in life settlements and the life insurance proceeds of the underlying life insurance policy reco rded in income upon the death of the insured. The following table presents the components of Net i nvestment i ncome: Years Ended December 31, (in millions) 2017 2016 2015 Available for sale fixed maturity securities, including short-term investments $ 10,435 $ 11,314 $ 11,331 Other fixed maturity securities 660 331 1 Equity securities 34 (5) 99 Interest on mortgage and other loans 1,661 1,526 1,417 Alternative investments * 1,475 693 1,120 Real estate 144 150 181 Other investments 290 509 432 Total investment income 14,699 14,518 14,581 Investment expenses 520 453 528 Net investment income $ 14,179 $ 14,065 $ 14,053 * 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 Net realized capital gains and losses are determined by specific identification. The net realized capital gains and losses are generated primarily from the following sources: Sales or full redemptions of available for sale fixed maturity securities , available for sale equity securities , real estate and other alternative investments . Reductions to the amortized cost basis of available for sale fixed maturity securities , available for sale equity securities and certain other invested assets for other-than-temporary impairments. Impairments on investments in life settlements. Changes in fair value of derivatives except for (1) those derivatives at AIGFP and (2) those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses). Exchange gains an d losses resulting from foreign currency transactions. The following table presents the components of Net realized capital losses : Years Ended December 31, (in millions) 2017 2016 2015 Sales of fixed maturity securities $ 425 $ 1 $ 94 Sales of equity securities (a) 88 1,057 1,032 Other-than-temporary impairments: Severity (2) (15) (13) Change in intent (9) (46) (233) Foreign currency declines (11) (18) (57) Issuer-specific credit events (234) (433) (348) Adverse projected cash flows (4) (47) (20) Provision for loan losses (50) 10 (58) Foreign exchange transactions 489 (1,226) 416 Variable annuity embedded derivatives, net of related hedges (1,374) (1,243) 320 All other derivatives and hedge accounting (368) 299 78 Impairments on investments in life settlements (360) (397) (540) Other (b) 30 114 105 Net realized capital gains (losses) $ (1,380) $ (1,944) $ 776 (a) In 2016 and 2015 includes realized gains on the sale of a portion of our holdings in People’s Insurance Company (Group) of China Limited and PICC Property & Casualty Company Limited (collectively, our PICC Investment) . ( b) In 2016, primarily includes $ 107 million of realized gains due to a purchase price adjustment on the sale of Class B shares of Prudential Financial, Inc. and losses of $ 253 million from the sale of a portion of our Life Settlements portfolio. In 2015, primarily includes $ 357 million of realized gains due to the sale of common shares of SpringLeaf Holdings (now known as OneMain Holdings, Inc.), $ 428 million of realized gains due to the sale of Class B shares of Prudential Financial, Inc. and $ 463 million of realized losses due to the sale of ordinary shares of AerCap . Change in Unrealized Appreciation (Depreciation) of Investments The following table presents the increase (decre ase) in unrealized appreciation (depreciation) of our available for sale securities and other investme nts : Years Ended December 31, (in millions) 2017 2016 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ 4,235 $ 2,019 Equity securities 22 (1,155) Other investments (195) (259) Total increase (decrease) in unrealized appreciation (depreciation) of investments * $ 4,062 $ 605 * Excludes net unrealized gains (losses) attributable to businesses held for sale. Evaluating Investments for Other-Than-Temporary Impairments Fixed Maturity Securities If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amort ized cost, an other-than-temporary impairment has occurred and the amortized cost is written down to current fa ir value, with a corresponding charge to realized capital losses . When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a credit impairment has occurred, the amortized cost is writte n down to the estimated recoverable value with a corresponding charge to realized capital losses . The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management . The difference between fair value and amortized cost that is not related to a credit impairment is presented in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income). When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers historic al performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: Current delinquency rates; Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Expected prepayment speeds. For corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers the fair value as the recoverable value when available information does not indicate that another value is more relevant or reliable. When m anagement identifies information that supports a recoverable value other than the fair value, the determination of a recoverable value considers scenarios specific to the issuer and the security, and may be based upon estimates of outcomes of corporate res tructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. We consider severe price declines in our assessment of potential credit impairm ents. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. In periods subsequent to the recognition of an other-than-temporary impairment charge for a vailable for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and th e expected undiscounted recoverable value over the remaining expected holding perio d of the security. Credit Impairments The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: Years Ended December 31, (in millions) 2017 2016 2015 Balance, beginning of year $ 1,098 $ 1,747 $ 2,659 Increases due to: Credit impairments on new securities subject to impairment losses 122 204 111 Additional credit impairments on previously impaired securities 74 212 109 Reductions due to: Credit impaired securities fully disposed of for which there was no prior intent or requirement to sell (99) (296) (399) Credit impaired securities for which there is a current intent or anticipated requirement to sell - - 2 Accretion on securities previously impaired due to credit * (669) (767) (735) Divested businesses - (2) - Balance, end of year $ 526 $ 1,098 $ 1,747 * Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time. Equity Securities We evaluate our available for sale equity securities for impairment by considering such securities as candidates for other-than-temporary impairment if they meet any of the following criteria: The security has traded at a significant (25 percent or more) discount to cost for an extended period of time (nine consecutive months or longer); A discrete credit event has occurred resulting in (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy la ws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or We have concluded that we may not realize a full recovery on our investment, regardless of the occurrence of one of the foregoing events. The determination that an equity security is other-than-te mporarily impaired requires the judgment of management and consideration of the fundamental condition of the issuer, its near-term prospects and all the relevant facts and circumstances. In addition to the above criteria , all equity securities that have be en in a continuous decline in value below cost over 12 months are impaired. We also consider circumstances of a rapid and severe market valuation decline (50 percent or more) discount to cost, in which we could not reasonably assert that the impairment per iod would be temporary (severity losses). Other Invested Assets Our equity and cost method investments in private equity funds, hedge funds and other entities are evaluated for impairment similar to the evaluation of equity securities for impairments as di scussed above. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments an d specific inherent risks. Such risks may evolve based on the nature of the underlying investments. Our investments in life settlements are monitored for impairment on a contract-by-contract basis quarterly. An investment in life settlements is considered impaired if the undiscounted cash flows resulting from the expected proceeds would not be sufficient to recover our estimated future carrying amount, which is the current carrying amount for the investment in life settlements plus anticipated undiscounted future premiums and other capitalizable future costs, if any. Impaired investments in life settlements are written down to their estimated fair value which is determined on a discounted cash flow basis, incorporating current market mortality assumptions a nd market yields or by repricing to the anticipated sale price as appropriate. In general, fair value estimates for the investments in life settlements are calculated using cash flows based on medical underwriting ratings of the policies from a third-party underwriter, applied to an industry mortality table. Our mortality assumptions are based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. M ortality improvement factors are applied to these assump tions based on our view of future mortality improvements likely to apply to the U.S. insured lives population. Our mortality assumptions coupled with the mortality improvement rates are used in our estimate of future net cash flows from the investments in life settlements . We sold the remaining portion of our life settlements portfolio in 2017. Our investments in aircraft assets and real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compa re expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. Purchased Credit Impaired (PCI) Securities We purchas e certain RMBS securities that ha ve experienced deterioration in credit quality since their issuance. We determine whether it is probable at acquisition that we w ill not collect all contractually required payments for these PCI securities, includ ing both principal and interest. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security i s determined based on our best estimate using key a ssumptions, 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 accretabl e yield, which is accreted into N et investment income over their remaining lives on a n effective yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows rep resents 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 f urther below. On a quarterly basis, the undiscounted expected future cash flows associated with PCI securities are re-evaluated based on updates to key assumptions. Declines in undiscounted expected future cash flows due to further credit deterioration as well as changes in the expected timing of the cash flows can result in the recognition of an other -than-temporary impairment charge, as PCI securities are subject to our policy for evaluating investments for other-than-temporary impairment. Changes to und iscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI securities will change the accretable yield prospectively. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as adjustments to the accretable yield. The following tables present information on our PCI securities, which are included in bonds available for sale: (in millions) At Date of Acquisition Contractually required payments (principal and int |
LENDING ACTIVITIES
LENDING ACTIVITIES | 12 Months Ended |
Dec. 31, 2017 | |
LENDING ACTIVITIES | |
LENDING ACTIVITIES | 7 . Lending Activities Mortgage and other loans receivable include commercial mortgages , residential mortgages , life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages , residential mortgages , commercial loans, and other loans and notes receivable are carried at unpaid pr incipal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loan s is accrued as earned. Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method. Life insurance policy loa ns are carried at unpaid principal balances. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the p olicy. The following table presents the composition of Mortgage and other loans receivable, net: December 31, December 31, (in millions) 2017 2016 Commercial mortgages * $ 28,596 $ 25,042 Residential mortgages 5,398 3,828 Life insurance policy loans 2,295 2,367 Commercial loans, other loans and notes receivable 1,056 2,300 Total mortgage and other loans receivable 37,345 33,537 Allowance for credit losses (322) (297) Mortgage and other loans receivable, net $ 37,023 $ 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 December 31, 2017 , and 24 percent and 12 percent, respectively, at December 31, 2016 ) . Nonperf orming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming mortgages were not significant for all periods presented. Credit Quality 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 December 31, 2017 Loan-to-Value Ratios (b) Less than 65% $ 18,000 $ 1,525 $ 351 $ 19,876 65% to 75% 6,038 193 184 6,415 76% to 80% 569 40 - 609 Greater than 80% 1,416 206 74 1,696 Total commercial mortgages $ 26,023 $ 1,964 $ 609 $ 28,596 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. Our weighted average debt service coverage ratio was 2.1 X and 1.9 X at December 31, 2017 and 2016 , respectively. (b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 57 percent and 58 percent at December 31, 2017 , and 2016 , respectively. The following table presents the credi t quality performance indicators for commercial mortgages: Number Percent December 31, 2017 of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total $ Credit Quality Performance Indicator: In good standing 778 $ 8,163 $ 8,585 $ 5,338 $ 2,023 $ 2,373 $ 1,960 $ 28,442 99 % Restructured (a) 5 - 115 23 - 16 - 154 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 783 $ 8,163 $ 8,700 $ 5,361 $ 2,023 $ 2,389 $ 1,960 $ 28,596 100 % Allowance for credit losses: Specific - 3 1 - 1 - 5 - % General 72 94 37 6 15 18 242 1 Total allowance for credit losses $ 72 $ 97 $ 38 $ 6 $ 16 $ 18 $ 247 1 % December 31, 2016 (dollars in millions) 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 below . (b) Does not reflect allowance for credit losses . (c) Our commercial mortgage loan portfolio is current as to payments of principal and interest , for both periods presented . There were no significant amounts of nonperforming commercial mortgages (defined as those loans where payment of contractual prin cipal or interest is more than 90 days past due) during any of the periods presented. M ethodology Used to Estimate the Allowance for Credit Losses Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determined using the present value of cash flows or the loan’s observable marke t price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on stati stical models primarily driven by past due status, debt servic e coverage, loan-to-value ratio, property type and location, loan term, profile of the borrower and of the major property tenants, and loan seasoning. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the ca rrying amount of the loan is charged off against the allowance. Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is ge nerally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is repaid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period. A significant majority of commercial mortgage s in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to t he non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. The following table presents a rollforward of the changes in the allowance for losses on Mortgage and other loans receivable: 2017 2016 2015 Years Ended December 31, Commercial Other Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 194 $ 103 $ 297 $ 171 $ 137 $ 308 $ 159 $ 112 $ 271 Loans charged off (22) (3) (25) (13) (2) (15) (23) (6) (29) Recoveries of loans previously charged off - 1 1 11 - 11 4 1 5 Net charge-offs (22) (2) (24) (2) (2) (4) (19) (5) (24) Provision for loan losses 75 (26) 49 25 (32) (7) 31 27 58 Other - - - - - - - 3 3 Allowance, end of year $ 247 * $ 75 $ 322 $ 194 * $ 103 $ 297 $ 171 * $ 137 $ 308 * Of the total allowance at the end of the year , $ 5 million, $ 11 million and $ 24 million relates to individually assessed credit losses on $ 82 million , $ 280 million and $ 507 million of commercial mortgages as of December 31, 2017 , 2016 and 2015 , respectively. Troubled Debt Restructurings We modify loans to optimize their returns and improve their collectability, among other things. When we undertake such a modification with a borrower that is experiencing financial difficulty and the modification involves us granting a concession to the troubled debtor, the modification is a troubled debt restructuring (TDR). We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower’s curre nt default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower’s forecasted cash flows to service any of its outstanding debt (including both principal and interest), and the borrower’s inability to access alternative third - party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor. Concessions granted may include extended maturity dates, interest rate changes, principal or interest forgiveness, payment deferrals and easing of loan covenants. During the 12 month period ended December 31, 2017 , loans with a carrying value of $ 237 million were modifi ed in troubled debt restructurings. Loans that had been modified in troubled debt restructurings during the 12 month period ended December 31, 2016 h ave been fully paid off. |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2017 | |
REINSURANCE | |
REINSURANCE | 8 . Reinsurance In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our general insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will b e recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBN R. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred, ceded unearned premiums and ceded future policy benefits fo r life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for doubtfu l accounts requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for doubtfu l accounts on reinsurance assets was $ 187 million and $ 207 million at December 31, 2017 and 2016 , respectively. Changes in the allowance for doubtful accounts on reinsurance asse ts are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income. The following table provides supplemental information for loss and benefit reserves, gross and net of ceded reinsurance: At December 31, 2017 2016 As Net of As Net of (in millions) Reported Reinsurance Reported Reinsurance Liability for unpaid losses and loss adjustment expenses $ (78,393) $ (51,685) $ (77,077) $ (61,545) Future policy benefits for life and accident and health insurance contracts (45,432) (44,457) (42,204) (41,140) Reserve for unearned premiums (19,030) (15,890) (19,634) (16,280) Reinsurance assets (a) 30,823 19,950 (a ) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses. Short-Duration Reinsurance Short-duration reinsurance is effected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned o ver the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premium s. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under t he contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. The following table presents short-duration insurance premiums written and earned: Years Ended December 31, (in millions) 2017 2016 2015 Premiums written: Direct $ 30,205 $ 33,970 $ 37,698 Assumed 3,084 2,824 2,972 Ceded (7,533) (7,561) (7,604) Net $ 25,756 $ 29,233 $ 33,066 Premiums earned: Direct $ 30,904 $ 34,869 $ 37,105 Assumed 3,373 2,962 2,659 Ceded (7,902) (7,284) (7,593) Net $ 26,375 $ 30,547 $ 32,171 For the years ended December 31, 2017 , 2016 and 2015 , reinsurance recoveries, which reduced losses and loss adjustment expenses incurred, amounted to $ 1.5 billion, $ 2.1 billion and $ 4.1 billion, respectively. Retroactive reinsurance agreements are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of past insurable events. For these agreements, the excess of t he amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves. The amount of the deferral is recalculated each period based on loss payments and updated estimates. If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the agreement is recognized in income immediately. Ceded loss reserves under retroactive agreements were $13.4 billion and $1.7 billion, and the deferred gain liability was $1.6 billion and $384 million, as of December 31, 2017 and 2016, respectively. The effect on income from amortization of the deferred gain was $316 million, $30 million and $8 million for the years ended December 31, 2017, 2016, and 2015, respectively. In 2017, we entered into a retroactive reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc. (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 e xcess of $25 billion of net paid losses, up to an aggregate limit of $25 billion. At NICO’s 80 percent share, NICO’s limit of liability under the contract is $20 billion. The covered losses ceded to NICO were $13.1 billion and the unexpired limit was $6. 9 billion at December 31, 2017. We paid total consideration, including interest, of $10.2 billion. The consideration was placed into a collateral trust account as security for NICO’s claim payment obligations, and Berkshire has provided a parental guarant ee to secure the obligations of NICO under the agreement. Long-Duration Reinsurance Long-duration reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are earned over the contract period in proportion to the protection provided. Amounts recoverable from reinsurers on long-duration contracts are estimated in a m anner consistent with the assumptions used for the underlying policy benefits and are presented as a component of Reinsurance assets. The following table presents premiums for our long-duration life insurance and annuity operations: Years Ended December 31, (in millions) 2017 2016 2015 Gross premiums $ 5,338 $ 4,732 $ 5,240 Ceded premiums (809) (789) (756) Net $ 4,529 $ 3,943 $ 4,484 Long-duration reinsurance recoveries, which reduced Policyholder benefits and losses incurred, was approximately $ 1.0 billion for the years ended December 31, 2017 , 2016 and 2015 . The following table presents long-duration insurance in-force ceded to other insurance companies: At December 31, (in millions) 2017 2016 2015 Long-duration insurance in force ceded $ 202,402 $ 174,363 $ 177,025 Long-duration insurance in-force assumed as a percentage of gross long- duration insurance in-force was 0.03 percent at both December 31, 2017 and 2016 , and 0.04 percent at December 31, 2015 ; and premiums assumed represented 5 percent, 3 percent and 0.1 percent of gross premiums for the years ended December 31, 2017 , 2016 and 2015 , respectively . The U.S. Life and Retirement c ompanies manage the capital impact of their statutory reserve requirements, including those resulting from the NAIC Model Regulation “Valuation of Life Insurance Pol icies” (Regulation XXX) and NAIC Actuarial Guideline 38 (Guideline AXXX), through unaffiliated and affiliated reinsurance transactions. Effective July 1, 2016, one of the U.S. Life and Retirement c ompanies entered into an agreement to cede approximately $5 billion of statutory reserves for certain whole life and universal life policies to an unaffiliated reinsurer. Effective December 31, 2016, the same life insurance subsidiary recaptured term and universal life reserves subject to Regulation XXX and Guidel ine AXXX, previously ceded to an affiliate, and ceded approximately $14 billion of such statutory reserves to an unaffiliated reinsurer under an amendment to the July 1, 2016 agreement. Under GAAP, these unaffiliated reinsurance transactions use deposit ac counting with a reinsurance risk charge recorded in income, whereas such affiliated transactions are eliminated in consolidation. Under one affiliated reinsurance arrangement, one of the U.S. Life and Retirement c ompanies obtains letters of credit to suppo rt statutory recognition of the ceded reinsurance. As of December 31, 2017 , this subsidiary had two bilateral letters of credit totaling $ 450 million, which were issued on February 7 , 2014 and expire on February 7, 2 021 . The letters of credit are subject to reimbursement by AIG Parent in the event of a drawdown. For additional information on the use of affiliated reinsurance for Regulation XXX and Guideline AXXX reserves see Note 19 . Reinsurance Security Ou r third-party reinsurance arrangements do not relieve us from our direct obligations to our beneficiaries. Thus, a credit exposure exists with respect to both short-duration and long-duration reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. We hold substantial collateral as security under related reinsurance agreements in the form of funds, securities, and/or letters of credit. A provision has been recorded for estimated unrecoverable reinsurance. We b elieve that no exposure to a single reinsurer represents an inappropriate concentration of credit risk to AIG. Gross reinsurance assets due from reinsurers exceeding 5 percent of our total rein surance assets were approximately $ 18 billion and $ 8.2 billion at December 31, 2017 and 2016 , respectively, of which approximately $ 7.6 billion and $ 4.4 billion at December 31, 2017 and 2016 , respectively, was not secured by collateral. |
DEFERRED POLICY ACQUISITION COS
DEFERRED POLICY ACQUISITION COSTS | 12 Months Ended |
Dec. 31, 2017 | |
DEFERRED POLICY ACQUISITION COSTS | |
DEFERRED POLICY ACQUISITION COSTS | 9 . Deferred Policy Acquisition Costs Deferred p olicy acquisition costs (DAC) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. S uch deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analy zed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. We also defer a portion of employe e total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force c ontract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates. Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recov erability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impa irment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred, unamortized DAC and maintenance c osts. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income, the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge. Long-duration insurance contracts : Policy acquisition costs for participating life, traditional l ife and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is is sued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviatio n to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying amount of future policy benefit liabilities, net of DAC, and what the future policy benefit liabilities, net of DAC, would be when applying updated current assumptions. When we determine a loss recognition event has occurred, we first reduce any DAC related to that block of business through amortization of acquisition expense, and after DAC is depleted, we record additional liabilities through a charge to Policyholder benefits and losses incurred. Groupings for loss recognition testing are consistent with our manner of acquiring, servicing and measuring the profitability of the business and applied by product groupings. We perform separate loss recognition tests for traditional life products, payout annuities and long-term care products. Once loss recognition has been recorded for a block of business, the old assumption set is replaced and the assumption set used for the loss recognition would then be subject to the lock-in principle. Investment-oriented contracts: Policy acquisition costs and policy issuance costs related to universal life and investment-type products ( collectively, in vestment - oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. Estimated gross profits include net in vestment income and spreads , net r ealized capital gains and losses, fees, surrender charges, expenses, and mortality gains and losses. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If estimated gross profits change significantly , DAC is recalculated using the new assumptions , and a ny resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decrease in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current period. U pdating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for prof itability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. To estimate future estimated gross profits for variable annuity products , a long-term annual asset growth assumption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” method ology whereby short-term asset growth above or below long-term annual rate assumptions impact s the growth assumption applied to the five- year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to maintain ou r long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption , as evidenced by growth assumptions in the five -year reversion to the mean period falling below a certain rate (floor) or above a certain rate (cap) for a sustain ed period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five -year reversion to the mean perio d as well as the long-term annual growth assumption applied to subsequent periods. Shadow DAC and Shadow Loss Recognition: DAC related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity and equity securities available for sale on estimated gross profits, with related changes recognized through Other comprehensive income (shadow DAC). The adjustment is made at each balance sheet date, as if the securities had been sold at their stated agg regate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the l iabilities are in a net unrealized gain position at the balance sheet date, loss recognition testi ng assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognition tests is reco gnized as a reduction in accumulated other comprehensive income (shadow loss recognition). Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabi lities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income. Internal Replacements of Long-dur ation and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the electi on of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and related actuarial ba lances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances ar e charged or credited to income, and any new deferrable costs associated with the rep lacement contract are deferred. Value of Business Acquired (VOBA ) is determined at the time of acquisition and is reported in the Consolidated Balance Sheet s with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of the business in a manner similar to that for DAC based on the assumptions at purchase. For investmen t - oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity and equity securities available for sale in a manner similar to DAC . The following table presents a ro llforward of DAC and VOBA: Years Ended December 31, (in millions) 2017 2016 2015 Balance, beginning of year $ 11,042 $ 11,115 $ 9,828 Dispositions (35) (110) - Acquisition costs deferred 4,820 5,216 5,825 Amortization expense (4,288) (4,521) (5,236) Change in net unrealized gains (losses) on securities (505) (259) 848 Other, including foreign exchange (40) 72 (150) Reclassified to Assets held for sale - (471) - Balance, end of year * $ 10,994 $ 11,042 $ 11,115 Supplemental Information: VOBA amortization expense included in DAC amortization 20 40 64 VOBA, end of year included in DAC balance 381 393 453 * Net of reductions in DAC of $ 1.3 b illion, $ 842 million , and $ 583 m illion at December 31, 2017 , 2016 and 2015 , respectively , related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC). The percentage of the unamortized balance of VOBA at December 31, 2017 expected to be amortized in 2018 through 2022 by year is: 8.4 percent, 7.8 percent, 7.2 percent, 6.1 percent and 5.9 percent, respectively, with 64.6 percent being amortized after f ive years. These projections are based on current estimates for investment income and spreads, persistency, mortality and morbidity assumptions. DAC, VOBA and SIA for insurance -oriented and investment -oriented products are reviewed for recoverability, whic h involves estimating the future profitability of current business. This review involves significant management judgment. If actual future profitability is substantially lower than estimated, AIG’s DAC, VOBA and SIA may be subject to an impairment charge a nd AIG’s results of operations could be significantly affected in future periods. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2017 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 10 . Variable Interest Entities A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below. We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to co nsolidate a VIE, we evaluate the design of the VIE as well as the related risks the entity was designed to expose the variable interest holders to. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that m ost significantly affect the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depend s on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE. Balance Sheet Classification and Exposure to Loss The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Consolidated Balance Sheets: (in millions) Real Estate and Investment Entities (d) Securitization Vehicles (e) Structured Investment Vehicle Affordable Housing Partnerships Other Total December 31, 2017 Assets: Bonds available for sale $ - $ 9,632 $ - $ - $ - $ 9,632 Other bond securities - 4,518 - - 3 4,521 Mortgage and other loans receivable - 2,290 - - - 2,290 Other invested assets 1,365 206 - 3,087 25 4,683 Other (a) 302 1,481 - 350 85 2,218 Total assets (b) $ 1,667 $ 18,127 $ - $ 3,437 $ 113 $ 23,344 Liabilities: Long-term debt $ 680 $ 1,624 $ - $ 1,825 $ 5 $ 4,134 Other (c) 144 244 - 181 26 595 Total liabilities $ 824 $ 1,868 $ - $ 2,006 $ 31 $ 4,729 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) C omprised primarily of Short-term investments and Other assets at December 31, 2017 and 2016 . ( b ) The assets of each VIE can be used only to settle specific obligations of that VIE. ( c ) Comprised primarily of Other liabilities at December 31, 2017 and 2016 . (d) At December 31 , 2017 and 2016 , off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $ 85.8 million and $ 106 million, respectively. ( e ) At December 31, 2017 and 2016 , $ 17.6 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 maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of V IE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE. Interest holders in VIEs sponsored by us generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to us, except in limited circumstances when we have provided a guarantee to the VIE’s interest holders. The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs: Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (b) Sheet Total December 31, 2017 Real estate and investment entities (a) $ 380,030 $ 9,253 $ 2,043 $ 11,296 Affordable housing partnerships 4,468 725 - 725 Other 2,703 254 1,205 (c) 1,459 Total $ 387,201 $ 10,232 $ 3,248 $ 13,480 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 December 31, 2017 and 2016 , $ 9.8 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 policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. Real Estate and Investment Entities T hrough our insurance operation s and AIG Global Real Estate, we are an investor in various real estate investment entities , some of which are VIE s . These investments are typically with unaffiliated third - party developers via a partnership or limited liability company structure. The VIEs ’ activities consist of the development or redevelopment of commercial , industrial and residential real estate. Our involvement varies from being a passive equity investor or finance provider to actively managing the activities of the VIE s . Our insurance o perations participate as passive investors in the equity issued by certain third - party - managed hedge and private equity funds that are VIEs . Our insurance operations typically are not involved in the design or establishment of these VIEs, nor do they activ ely participate in the management of the VIEs. Securitization Vehicles W e created certain VIEs that hold investments, primarily in investment-grade debt securities and loans , and issued beneficial interests in these investments. The majority of these bene ficial interests are owned by our insurance operations and we maintain the power to direct the activities of the VIEs that most significantly impact their economic performance and bear the obligation to absorb losses or receive benefits from the entities t hat could potentially be significant to the entities. Accordingly, we consolidate these entities and those beneficial interests issued to third-parties are reported as Long-term debt. Total assets of consolidated s ecuritization vehicles are $ 18.1 billion , of which $ 17.6 billion represents amounts owed to Parent or its subsidiaries. A ffordable Housing Part nerships SunAmerica Affordable Housing Partners, Inc. (SAAHP) organize d and invest ed in limited partnerships that develop and operate affordable housing qualifying for federal , state, and historic tax credits, in addition to a few market rate properties across the United States. The operating partnerships are VIEs, whose debt is generally non-recourse in nature, and the general partners of which are mostly unaffiliated third - party developers. We account for our investments in operating partnerships using the equity method of accounting, unless they ar e required to be consolidated. We consolidate an operating partnership if the general partner is an affiliated entity or we otherwise have the power to direct activities that most significantly impact the entities’ economic performance . The pre- tax income of SAAHP is reported as a comp onent of the Life and Retirement segment. RMBS, CMBS, Other ABS and CDOs Primarily through our insurance operations , we are a passive investor in RMBS, CMBS, other ABS and CDOs , the majority of which are i ssued by domestic special purpose entities. We gene rally do not sponsor or transfer assets to, or act as the servicer to these asset - backed structures, and were not involved in the design of these entities. Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities. Based on the nature of our investments and our passive involvement in these types of structures, we have determined that we are not the primary beneficiary of these entities. We have not included these entities in the above table s ; however, the fair values of our investments in these structures are reported in Notes 5 and 6 herein. |
DERIVATIVES AND HEDGE ACCOUNTIN
DERIVATIVES AND HEDGE ACCOUNTING | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
DERIVATIVES AND HEDGE ACCOUNTING | 11 . Derivatives a nd Hedge Accounting We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium - and long -term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and options) are used to economically mitigate risk associated with non -U.S. dollar denominated debt, net capital exposures, and foreign currency transactions. Equity derivatives are used to mitig ate financial risk embedded in certain insurance liabilities. We use credit derivatives to manage our credit exposures. The derivatives are effective economic hedges of the exposures that they are meant to offset. In addition to hedging activities, we also enter into derivative instruments with respect to investment operations, which may include, among other things, CDSs and purchases of investments with embedded derivatives, such as equity -linked notes and convertible bonds . Interest rate, currency, equity and commodity swa ps, credit contracts , swaptions, options and forward transactions are accounted for as derivatives , recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. Aggregate asset or liability positions are netted on the Consolidated Balance Sheet s only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with tr ansactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset. D erivatives, with the exception of embedded derivatives, are reported at fair value in the Consolidated Balance Sheets in Other assets and Other liabiliti es . Embedded derivatives are genera lly presented with the host contract in the Consolidated Balance Sheets . A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted fo r according to the accounting guidance applicable f or that instrument. For additional information on embedded deri vatives see Notes 5 and 14 herein. The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Consolidated Balance Sheets : December 31, 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 $ - $ - $ 838 $ 15 $ 175 $ - $ 782 $ 11 Foreign exchange contracts 2,823 173 4,783 350 3,527 385 2,602 184 Equity contracts - - 159 19 - - 113 7 Derivatives not designated as hedging instruments: (a) Interest rate contracts 37,751 2,171 26,461 2,185 51,030 2,328 44,211 3,066 Foreign exchange contracts 6,305 658 11,093 895 9,468 935 7,674 1,185 Equity contracts 19,975 522 1,130 2 14,060 305 8,633 12 Commodity contracts - - - - - - - - Credit contracts (b) 4 1 1,365 277 4 2 861 331 Other contracts (c) 39,829 20 59 5 37,633 22 62 6 Total derivatives, gross $ 106,687 $ 3,545 $ 45,888 $ 3,748 $ 115,897 $ 3,977 $ 64,938 $ 4,802 Counterparty netting (d) (1,464) (1,464) (1,265) (1,265) Cash collateral (e) (1,159) (1,249) (903) (1,521) Total derivatives on consolidated balance sheets (f) $ 922 $ 1,035 $ 1,809 $ 2,016 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b ) As of December 31, 2017 and 2016 , included CDSs on super senior multi-sector CDOs with a net notional amount of $ 685 m illion and $ 801 million (fair value liability of $ 254 million and $ 308 million), respectively. The expected weighted average maturity as of December 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 represents the maximum exposure to loss on the portfolio. As of December 31, 2017 and 2016 , there were no super senior corporate debt/CLOs remaining. (c) Consists primarily of stable value wraps and contracts with multiple underlying exposures. (d) Represents netting of derivative exposures covered by a qualifying master netting agreement. (e) Represents cash collateral posted and received that is eligible for netting. (f) Freestanding derivatives only, excludes Embedded derivatives. Derivative i nstrument assets and liabilities are recorded in Other Assets and Liabilities, respectively. Fair value of assets related to bifurcated Embedded derivatives was zero at both December 31, 2017 and December 31, 2016 . Fair value of liabilities related to bifurcated Embedded derivatives was $ 4.1 billion and $ 3.1 billion, respectively, at December 31, 2017 and December 31, 2016 . A bifurcated Embedded derivative i s generally presented with the host contract in the 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 $ 2.9 billion and $ 4.5 billion at December 31, 2017 and 2016 , respectively. In the case of collateral posted under derivati ve 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 $ 1.3 b illion and $ 1.5 billion at December 31, 2017 and 2016 , respectively. In the case of collateral provided to us under derivative transactions that are not subject to clearing, we generally can repledge or resell collateral. Offsetting We have elected to present all derivative receivables and derivative payables, and the related cash collateral received and paid, on a net basis on our Consolidated Balance Sheets when a legally enforceable ISDA Master Agreement exists between us and our deri vative 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 trans actions, 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 a ll, or a specified group of, derivative transactions governed by the ISDA Master Agreement . H edge Accounting We designated certain derivatives entered into with third parties as fair value hedges of available for sale investment securities held by our insu rance subsidiaries. The fair value hedges include foreign currency forwards and cross currency swaps designated as hedges of the change in fair value of foreign currency denominated available for sale securities attributable to changes in foreign exchange rates. We also designated certain interest rate swaps entered into with third parties as fair value hedges of fixed rate GICs attributable to changes in benchmark interest rates . We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.S. dollar functional currency foreign subsidiaries. For net investment hedge relationships where issued debt is used as a hedging instrument, we assess the hedge effectiveness and measure the amount of ineffectiveness based on changes in spot rates. For net investment hedge relationships that use derivatives as hedging instruments, we assess hedge effectiveness and measure hedge ineffectiveness using changes in forward rates. For the years ended December 31, 2017 , 2016 , and 2015 we recognized gain s (losses) of $ (106) million , $ 123 million and $ 90 million, respectively, included in Change in foreign currency translation adjustment in Other comprehensive income related to the net investment hedge relationships. A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, whi le regression analysis is employed for all other hedges. The following table presents the gain (loss) recognized in earnings on our derivative instruments in fair value hedging relationships in the Consolidated Statements of Income: Gains/(Losses) Recognized in Earnings for: Including Gains/(Losses) Attributable to: Hedging Hedged Hedge Excluded (in millions) Derivatives (a) Items Ineffectiveness Components Other (b) Year ended December 31, 2017 Interest rate contracts : Realized capital gains/(losses) $ (4) $ 4 $ - $ - $ - Other income - - - - - Gain/(Loss) on extinguishment of debt - - - - - Foreign exchange contracts : Realized capital gains/(losses) (420) 393 - (26) - Interest credited to policyholder account balances - - - - - Other income - 4 - - 4 Gain/(Loss) on extinguishment of debt - - - - - Equity contracts : Realized capital gains/(losses) (47) 42 - (5) - Year ended December 31, 2016 Interest rate contracts : Realized capital gains/(losses) $ (7) $ 1 $ 1 $ - $ (7) Other income - 10 - - 10 Gain/(Loss) on extinguishment of debt - - - - - Foreign exchange contracts : Realized capital gains/(losses) 294 (335) - (41) - Interest credited to policyholder account balances - - - - - Other income - 24 - - 24 Gain/(Loss) on extinguishment of debt - - - - - Equity contracts : Realized capital gains/(losses) 10 (11) - (1) - Year ended December 31, 2015 Interest rate contracts : Realized capital gains $ - $ 1 $ 1 $ - $ - Other income - 9 - - 9 Gain/(Loss) on extinguishment of debt - 14 - - 14 Foreign exchange contracts : Realized capital gains/(losses) 202 (167) - 32 3 Interest credited to policyholder account balances - (1) - - (1) Other income - 17 - - 17 Gain/(Loss) on extinguishment of debt - 17 - - 17 Equity contracts : Realized capital gains/(losses) (45) 45 - - - (a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged item . (b) Represents accretion/amortization of opening fair value of the hedged item at inception of hedge relationship, amortization of basis adjustment on hedged item following the discontinuation of hedge accounting, and the release of debt basis adjustment following the repurchase of issued debt that was part of previously-discontinued fair value h edge relationship. Derivatives Not Designated as Hedging Instruments The following table presents the effect of derivative instruments not designated as hedging instruments in the Consolidated Statements of Income: Years Ended December 31, Gains (Losses) Recognized in Earnings (in millions) 2017 2016 2015 By Derivative Type: Interest rate contracts $ 56 $ (229) $ 339 Foreign exchange contracts (277) 293 416 Equity contracts (964) (902) (182) Commodity contracts - - (1) Credit contracts 58 81 186 Other contracts 75 80 69 Embedded derivatives (449) (48) 49 Total $ (1,501) $ (725) $ 876 By Classification: Policy fees $ 77 $ 80 $ 78 Net investment income (11) 26 26 Net realized capital gains (losses) (1,709) (895) 365 Other income 139 63 401 Policyholder benefits and claims incurred 3 1 6 Total $ (1,501) $ (725) $ 876 Credit Risk-Related Contingent Features We estimate that at December 31, 2017 , based on our outstanding financial derivative transactions, a downgrade of our long-term senior debt ratings to BBB or BBB– by Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and/or a downgrade to Baa2 or Baa3 by Moody’s Investors’ Service, Inc. would permit counterparties to make additional collateral calls and permit certain counterparties to elect early termination of contracts, resulting in corresponding collateral postings and termination payments in the total amount of up to approximately $ 83 million. The aggregate fair value of our derivative s that were in a net liability position and that contain such credit risk -related contingencies which can be triggered below our long-term senior debt ratings of BBB+ or Baa1 was approximately $ 572 m illion and $ 848 million at December 31, 2017 and 2016 , respectively. The aggregate fair value of assets posted as collateral under these contracts at December 31, 2017 and 2016 , was approximately $ 676 m illion and $ 875 million, respectivel y . 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 inv estments 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 ob ligation to make payments on the embedded credit derivatives in the related hybrid securities. We elect to account for our investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recognized in Net investment income and Other income. Our investments in these hybrid securities are reported as Other bond securities in the Consolidated Balance Sheet s . The fair value s of these hybrid securities were $ 4.4 billion and $ 4.8 billion at December 31, 2017 and 2016 , respectively . These securities ha ve par amounts of $ 9.1 billion and $ 10.1 billion at December 31, 2017 and 2016 , respectively , and have remaining stated maturity dates tha t extend to 2052. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill Disclosure | |
GOODWILL | 12 . Goodwill Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment annually or more frequently if circumstances indicate an impairment may have occurred. At December 31, 2017, as a result of the 2017 segment changes, goodwill is reported within our General Insurance business – North America and International operating segments, our Life and Retirement business – Life Insurance operating segment and our Other Operations and Legacy Portfolio operating segments. When a business is transferred from one reporting unit to another, as occurred as part of the 2017 segment changes, goodwill from the original ope rating segment is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. As a result, at December 31, 2017, $1.3 billion of goodwill was re-allocated to the General Insurance – North America and General Insurance – International operating segments based on their respective fair values. The impairment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a deter mination that it is more likely than not that the fair value of an operating segment is less than its carrying amount. If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more l ikely than not that the fair value of an operating segment is less than its carrying amount, the impairment assessment involves a two-step process in which a quantitative assessment for potential impairment is performed. If the qualitative test is not per formed or if the test indicates a potential impairment is present, we estimate the fair value of each operating segment and compare the estimated fair value with the carrying amount of the operating segment, including allocated goodwill. The estimate of an operating segment’s fair value involves management judgment and is based on one or a combination of approaches including discounted expected future cash flows, market -based earnings multiples of the unit’s peer companies, external appraisals or, in the ca se of reporting units being considered for sale, third -party indications of fair value, if available. We consider one or more of these estimates when determining the fair value of an operating segment to be used in the impairment test. If the estimated fai r value of an operating segment exceeds its carrying amount, goodwill is not impaired. If the carrying value of an operating segment exceeds its estimated fair value, goodwill associated with that operating segment potentially is impaired. The amount of i mpairment, if any, is measured as the excess of the carrying value of the goodwill over the implied fair value of the goodwill. The implied fair value of the goodwill is measured as the excess of the fair value of the operating segment over the amounts tha t would be assigned to the operating segment’s assets and liabilities in a hypothetical business combination. An impairment charge is recognized in earnings to the extent of the excess of carrying value over fair value. Goodwill was not impaired at Dece mber 31, 2017 based on the results of the goodwill impairment test. The following table presents the changes in goodwill by operating segment: North Life Other Legacy (in millions) America International Insurance Operations Portfolio Total Balance at January 1, 2015: Goodwill - gross $ 1,834 $ 2,887 $ 21 $ 7 $ 182 $ 4,931 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill 570 751 21 7 105 1,454 Increase (decrease) due to: Acquisition 50 46 55 20 37 208 Other - (50) 1 - - (49) Balance at December 31, 2015: Goodwill - gross 1,884 2,883 77 27 219 5,090 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill 620 747 77 27 142 1,613 Increase (decrease) due to: Dispositions (6) (6) - - - (12) Other - (70) - - (3) (73) Balance at December 31, 2016: Goodwill - gross 1,878 2,807 77 27 216 5,005 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill 614 671 77 27 139 1,528 Increase (decrease) due to: Acquisition - - - 4 - 4 Dispositions (10) (7) (6) - (2) (25) Other - 74 13 - - 87 Balance at December 31, 2017: Goodwill - gross 1,868 2,874 84 31 214 5,071 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill $ 604 $ 738 $ 84 $ 31 $ 137 $ 1,594 |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Liabilites | |
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | 13 . 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 and loss adjustment expenses (IBNR), 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 $12.6 billion and $12.8 billion at December 31, 2017 and 2016 , respectively. These recoverable amounts are related to certain policies with high deductibles (in excess of high dollar amounts retained by the insured through self-insured retentions, deductibles, retrospective programs, or captive arrangements, each referred to generically as “deductibles”), primarily for U.S. commercial casualty business. With respect to the deductible portion of the claim, we manage and pay the entire claim on behalf of the insured and are reimbursed by the insure d for the deductible portion of the claim. Thus, these recoverable amounts represent a credit exposure to us. At December 31, 2017 and 2016 , we held collateral of approximately $9.5 billion and $9.7 billion, respectively, for these de ductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements. The following table presents the roll- fo rward of activity in Loss Reserves: Years Ended December 31, (in millions) 2017 2016 2015 Liability for unpaid loss and loss adjustment expenses, beginning of year $ 77,077 $ 74,942 $ 77,260 Reinsurance recoverable (15,532) (14,339) (15,648) Net Liability for unpaid loss and loss adjustment expenses, beginning of year 61,545 60,603 61,612 Losses and loss adjustment expenses incurred : Current year 21,079 20,232 20,308 Prior years, excluding discount and amortization of deferred gain 1,565 5,788 4,119 Prior years, discount charge (benefit) 187 (422) (71) Prior years, amortization of deferred gain on retroactive reinsurance (a) (284) - - Total losses and loss adjustment expenses incurred 22,547 25,598 24,356 Losses and loss adjustment expenses paid : Current year (5,323) (5,825) (5,751) Prior years (16,241) (16,908) (18,205) Total losses and loss adjustment expenses paid (21,564) (22,733) (23,956) Other changes : Foreign exchange effect 788 (463) (1,429) Acquisitions (b) 23 - - Dispositions (c) (360) (1,058) - Retroactive reinsurance adjustment (net of discount) (d) (11,294) - 20 Reclassified to liabilities held for sale (e) - (402) - Total other changes (10,843) (1,923) (1,409) Liability for unpaid losses and loss adjustment expenses, end of year: Net liability for unpaid losses and loss adjustment expenses 51,685 61,545 60,603 Reinsurance recoverable 26,708 15,532 14,339 Total $ 78,393 $ 77,077 $ 74,942 (a ) Includes $ 25 million fo r 2011 retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the year ended December 31, 2017 . ( b ) Includes amounts related to the acquisition of Blackboard U.S. Holdings Inc in 2017. (c) Includes amounts related to dispositions through the date of disposition. Includes sale of insurance operations to Fairfax, United Guaranty and Ascot Underwriting Holdings Limited, and Ascot Employees Corporate Member Limited (Ascot). (d) Includes discount on retr oactive insurance in the amount of $1.5 billion for the period ended December 31, 2017 . (e) Represents change in loss reserves included in our sale of certain of our insurance operations and certain assets to Fairfax for the period ended December 31, 2016 . Upon consummation of the sale, we retain ed a portion of these reserves through reinsurance arrangements. During 2017, we recognized unfavorable prior year loss reserve development of $1.6 b illion. This unfavorable development was primarily a result of the following: Unfavorable development in U.S. Casualty lines, driven primarily by increases in underlying severity and greater than expected emerging loss experience in accident year 2016 as well as increased development from claims related to construction defects and construction wrap business (largely from accident years 2006 and prior ). Unfavorable developm ent in U.S. Financial Lines, primarily from Directors & Officers (D&O) policies covering privately owned and not-for-profit insureds. This development was predominantly in accident year 2016 and resulted largely from increases in bankruptcy-related claims and fiduciary liability claims for large educational institutions. Higher than expected losses for Europe Casualty and Financial Lines. We observed a significant increase in large claims activity in our Europe long-tail business, with a large proportion em anating from accident year 2016. In addition, we increased our loss reserves as a result of the decision made by the U.K. Ministry of Justice to reduce the discount rate applied to lump-sum bodily injury payouts, known as the Ogden rate. In addition we al so observed higher than expected losses in Europe property and special risks business driven by unexpected development on various large claims across the property, aviation, marine, and trade credit segments. Our analyses and conclusions about prior year r eserves also help inform our judgments about the current accident year loss and loss adjustment expense ratios we selected. During 2016, we recognized adverse prior year loss reserve development of $5.8 billion. This unfavorable development was primarily a result of the following: Higher than expected losses emerging across several casualty product lines, especially in the recent accident years (generally, 2011 to 2015) driven by increased frequency and severity of claims. This recent accident year loss eme rgence caused us to increase loss development factors applied across many accident years. Loss development factors including workers ’ compensation tail factors, also increased due to an observed lengthening of loss reporting patterns relative to prior expe ctations. Increases in loss trend assumptions to reflect the latest observed increases in frequency and severity and the impact of these increased loss trends on expected loss ratios. Changes in weights we apply to the various actuarial methods to better a lign wit h updated trends. During 2015, we recognized unfavorable prior year loss reserve development of $4.1 billion. This unfavorable development was primarily as a result of the following: Higher than expected loss emergence across U.S. Excess C asual ty , U.S. Workers’ Compensation, and U.S. Other Casualty lines as well as European Financial Lines . U pdated loss development selections in U.S. Excess Casualty, U.S. Financial Lines and U.S. Run-off Casualty Insurance lines, most notably tail factor selectio ns and incorporation of updated industry experience for asbestos liabilities. Revised estimates of expected future recoveries from risk-sharing policies in the U.S. Workers’ Compensation business. Updated estimates for extra-contractual obligation claims and unallocated loss adjustment expenses. The loss development tables below include loss development data by major lines of business for the last ten accident years. The drivers of prior year development are discussed following each of the loss developme nt tables. . The table below presents the reconciliation of the net liability for unpaid losses and loss adjustment expenses in the following tables to Loss Reserves in the Consolidated Balance Sheets for the year ended December 31, 2017: Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below Gross liability for unpaid losses and loss adjustment expenses (in millions) U.S. Workers' Compensation (before discount) $ 6,616 $ 6,513 $ 13,129 U.S. Excess Casualty 4,802 4,053 8,855 U.S. Other Casualty 5,149 4,793 9,942 U.S. Financial Lines 5,104 1,962 7,066 U.S. Property and Special risks 5,410 968 6,378 U.S. Personal Insurance 1,380 194 1,574 Europe Casualty and Financial lines 6,986 1,156 8,142 Europe Property and Special risks 2,022 632 2,654 Europe and Japan Personal Insurance 2,348 349 2,697 U.S. Run-Off Long Tail Insurance Lines (before discount) 5,383 3,675 9,058 Total $ 45,200 $ 24,295 $ 69,495 Reconciling Items Discount on workers' compensation lines (3,383) Other product lines 8,568 Unallocated loss adjustment expenses 3,713 Total Loss Reserves $ 78,393 Loss Development Information The following is information about incurred and paid loss developments as of December 31, 2017, net of reinsurance. The cumulative number of reported claims, the total of IBNR liabilities and expected development on reported loss included within the net incurred loss amounts are presented in the following section. Reserving Methodology We use a combination of methods to project ultimate losses for both long-tail and short-tail exposures, which include: Paid Development metho d: The Paid Development method estimates ultimate losses by reviewing paid loss patterns and selecting paid ultimate loss development factors. These factors are then applied to paid losses by applying them to accident years, with further expected changes i n paid loss. Since the method does not rely on case reserves, it is not directly influenced by changes in the adequacy of case reserves. Incurred Development method: The Incurred Development method is similar to the Paid Development method, but it uses cas e incurred losses instead of paid losses. Since this method uses more data (case reserves in addition to paid losses) than the Paid Development method, the incurred development patterns may be less variable than paid development patterns. Expected Loss Rat io method: The Expected Loss Ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year. This method may be useful if loss development patterns are inconsistent, losses emerge very slowly, or there is relatively little loss history from which to estimate future losses. Bornhuetter-Ferguson method: The Bornhuetter-Ferguson method using premiums and paid losses is a combination of the Paid Development method and the Expected Loss Ratio method where the weight given to each method is the reciprocal of the loss development factor. This method normally determines expected loss ratios similar to the method used for the Expected Loss Ratio method. The Bornhuetter-Ferguson method using premiums and incurred l osses is similar to the Bornhuetter-Ferguson method using premiums and paid losses except that it uses case-incurred losses. Cape Cod method: The Cape Cod method is mechanically similar to the Bornhuetter-Ferguson method with the difference being that the Expected Loss Ratio estimates are determined based on a weighting of the loss estimates that come from the Paid/Incurred Development Methods. This method may be more responsive to recent loss trends than the Bornhuetter-Ferguson method . Average Loss method : The Average Loss method multiplies a projected number of ultimate claims by an estimated ultimate severity average loss for each accident year to produce ultimate loss estimates. Since projections of the ultimate number of claims are often less variable than projections of ultimate loss, this method can provide more reliable results for reserve categories where loss development patterns are inconsistent or too variable to be relied on exclusively. In updating our loss reserve estimates, we consider and ev aluate inputs from many sources, including actual claims data, the performance of prior reserve estimates, observed industry trends, our internal peer review processes, including challenges and recommendations from our Enterprise Risk Management group, as well as the views of third-party actuarial firms. We use these inputs to improve our evaluation techniques, and to analyze and assess the change in estimated ultimate loss for each accident year by product line. Our analyses produce a range of indications from various methods, from which we select our best estimate. In determining the actual carried loss reserves, we consider both the internal actuarial best estimate and numerous other internal and external factors, including: an assessment of economic cond itions, including real GDP growth, inflation, employment rates or unemployment duration, stock market volatility and changes in corporate bond spreads; changes in the legal, regulatory, judicial and social environment, including changes in road safety, pub lic health and cleanup standards; changes in medical cost trends (inflation, intensity and utilization of medical services) and wage inflation trends; underlying policy pricing, terms and conditions including attachment points and policy limits; change in claims handling philosophy, operating model, processes, a nd related ongoing enhancements; third-party claims reviews that are periodically performed for key classes of claims such as toxic tort, environmental and other complex casualty claims; third-party actuarial reviews that are periodically performed for key classes of business; input from underwriters on pricing, terms, and conditions and market trends; and changes in our reinsurance program, pricing and commutations. The following factors are relevan t to the loss development information Included in the tables below: Table o rganization: The tables are organized by accident year and include policies written on an occurrence and claims- made basis. We note that for certain categories of claims (e.g., construction defect claims and environmental claims) and for reinsurance recoverable, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us. These reclassification s are shown as development in the resp ective years in the tables below. Financial Lines business is primarily written on a claims-made basis, while the majority of the workers’ compensation, excess casualty, other casualty, and run-off property and casual ty lines of business are written on an occurrence basis. Primarily, all short-tail lines in Property and Special Risks and Personal Insurance are written on an occurrence basis. Groupings: We believe our groupings have homogenous risk characteristics wi th similar development patterns and would generally be subject to similar trends and reflect our reportable segments. The incurred losses and loss adjustment expenses and paid losses in the following tables f or the current reporting year are allocated to th e line of business and accident years based on an initial allocation methodology and updated for the final allocation in the subsequent reporting year. The difference between the initial and the final allocation does not have a material impact on the loss ta bles . Reinsurance: Our reinsurance program varies by exposure type and may change from year to year. This may affect the comparability of the data presented in our tables. Note that the impact of the Adverse Development Reinsurance Agreement is shown separately. For the lines of business covered by the agreement, an allocation of the loss recoveries to the line of business by accident yea r is presented separately in the loss tables. The allocation is based on the underlying distribution of the losses subject to the agreement. Incurred but not reported liabilities (IBNR): We include development from past reported losses in IBNR. Data excluded from tables: Information with respect to accident years older than ten years is excluded from the development tables. Unallocated loss adjustment expenses are also excluded. Foreign exchange: The loss development for operations outside of the U.S. is presented for all accident years using the cur rent exchange rate at December 31, 2017. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends. Dispositions: We exclude dispositions from all a ccident years presented in the tables . Claim counts: We consider a reported claim to be one claim for each claimant or feature for each loss occurrence. Claims relating to losses that are 100 percent reinsured are excluded from the reported claims in the t ables below. Reported claims for losses from assumed reinsurance contracts are not available and hence not included in the reported claims. There are limitations that should be considered on the reported claim count data in the tables below, including: Claim counts are presented only on a reported (not an ultimate) basis; The tables below include lines of business and geographies at a certain aggregated level which may indicate different frequency and severity trends and characteristics, and may not be as meaningful as the claim count information related to the individual products within those lines of business and geographies; Certain lines of business are more likely to be subject to occurrences involving multiple claimants and features, which can dist ort measures based on the reported claim counts in the table below; and Reported claim counts are not adjusted for ceded reinsurance, which may distort the measure of frequency or severity. Supplemental Information: The information about incurred and paid loss development for all periods preceding year ended December 31, 201 7 and the related historical claims payout percentage disclosure is unaudited and is presented as supplementary information. The following tables present undiscounted, incurred and paid losses and allocated loss adjustment expenses by accident year, on a net basis after reinsurance, with a separate presentation of the Adverse Development Reinsurance Agreement excluding the related amortization of the deferred gain : U.S. Workers' Compensa tion During 2017, we recognized $31 million of favorable prior year development. During 2016, we recognized $1.9 billion of unfavorable prior year developmen t due to increased tail and loss development factors. Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement 2017 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 4,114 $ 4,184 $ 4,422 $ 4,425 $ 4,471 $ 4,398 $ 4,385 $ 4,398 $ 4,547 $ 4,536 $ (11) $ 448 198,852 $ (416) $ 4,120 $ 32 2009 3,466 3,633 3,608 3,666 3,639 3,616 3,606 3,708 3,714 6 495 147,357 (416) 3,298 79 2010 2,706 3,049 3,125 3,148 3,211 3,214 3,286 3,267 (19) 451 133,191 (449) 2,818 2 2011 2,901 2,953 3,091 3,158 3,113 3,152 3,156 4 481 124,657 (479) 2,677 2 2012 2,382 2,194 2,286 2,260 2,334 2,308 (26) 503 70,625 (494) 1,814 9 2013 1,932 1,880 1,950 2,060 2,032 (28) 548 46,483 (538) 1,494 10 2014 1,729 1,764 1,866 1,862 (4) 664 39,408 (552) 1,310 112 2015 1,708 1,864 1,866 2 849 35,059 (587) 1,279 262 2016 1,299 1,346 47 773 28,880 - 1,346 773 2017 789 577 22,523 - 789 577 Total $ 24,876 $ (29) $ (3,931) $ 20,945 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (16,580) - - (16,580) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 3,867 4 (1,616) 2,251 Unallocated loss adjustment expense prior year development (6) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 12,163 $ (31) $ (5,547) $ 6,616 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 785 $ 1,678 $ 2,252 $ 2,655 $ 3,044 $ 3,272 $ 3,476 $ 3,609 $ 3,707 $ 3,789 $ - 2009 630 1,328 1,756 2,120 2,390 2,621 2,780 2,887 2,968 - 2010 550 1,093 1,537 1,855 2,126 2,288 2,426 2,532 - 2011 519 1,129 1,561 1,884 2,129 2,285 2,388 - 2012 415 804 1,089 1,272 1,440 1,563 - 2013 282 619 879 1,067 1,214 - 2014 231 558 786 930 - 2015 234 524 725 - 2016 147 378 - 2017 93 - Total $ 16,580 $ - Reserving Process and Methodology U.S. Workers’ Compensation is an extremely long-tail line of business, with loss emergence extending for decades. We generally use a combination of loss development , frequency/severity and expected loss ratio methods for workers’ compensation. Many of our primary casualty policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a tra ditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time. We group guaranteed cost and excess of deductible business separately and then further by state and industry subset to the extent that meaningful differences are determined to exist. We also separately analyze certain subsets of the portfolio that have unique characteristics (e.g., U.S. government sub-contractor accounts and co nstruction wrap-up business). For excess of deductible business, we also segment by size of deductible and whether the claim is handled by AIG or an outside third-party administrator (TPA). T he proportion of large deductible busine ss has increased over time , which has slowed the reporting pattern of claims. For guaranteed cost business, expected loss ratio methods generally are given significant weight only in the most recent accident year. Workers’ compensation claims are generally characterized by high frequency, low severity, and relatively consistent loss development from one accident year to the next. We historically have been a leading writer of workers’ compensation, and thus have sufficient volume of claims experience to use d evelopment methods. We generally segregate California (CA) and New York (NY) businesses from the other states to reflect their different development patterns and changing percentage of the mix by state. The claims development tables above are impacted by two other significant initiatives, which offset each other. In recent years, we instituted claims strategy changes and loss mitigation efforts to accelerate settlements, which we believe results in an overall reduction in claim costs. This strategy resu lted in an increase in paid losses along the latest diagonals relative to prior years. In addition, we have been reducing premium volume in recent years and shifting a greater proportion of business to insured risk retention structures such as high deducti ble policies. These mix and volume changes slowed paid and incurred development since excess of deductible claims will typically take longer to emerge and settle. Expected loss ratio methods for business written in excess of a deductible may be given signi ficant weight in the most recent five accident years. In the 2016 analysis, we increased our tail factor estimates for states other than NY and CA for guaranteed cost business in recognition of longer medical development patterns that we have been seeing i n recent years. We reflected increases in legal costs we have seen across the portfolio, particularly in California. Additionally, over the years we have written a number of very large accounts which include workers’ compensation coverage. These accounts a re generally individually priced by our actuaries, and to the extent appropriate, the indicated losses based on the pricing analysis may be used to record the initial estimated loss reserves for these accounts . Prior Year Development During 2017, we recogn ized $3 1 million of favorable prior year development in U.S. workers’ compensation business, particularly guaranteed cost business in the states of California and New York. Actual loss emergence during the year , particularly for guaranteed cost business in these two states, was significantly less than expected on a reported loss basis . We did recognize some offsetting unfavorable development in our Defense Based Act (DBA) business that covers government contractors in U.S. and non-U.S. military installation s , as well as from a Pennsylvania Supreme Court decision that overturned a ruling that provided limitations on payments for certain permanent injuries (the Protz decision). During 2016, we recognized $1.9 billion of unfavorable prior year development in p rimary workers’ compensation coverages primarily driven by the risk-sharing programs where we provide coverage in excess of large deductibles. For this excess of large deductible business, in 2016, we observed actual loss emergence and development at sig nificantly greater levels than expected based on our previous experience in particular from losses in excess of $1 million. Since these policies respond to larger claims, the loss reporting pattern is much longer than observed in guaranteed cost workers’ c ompensation and it takes several years to discern credible changes in the pattern. Furthermore, implementation of claims settlement and loss mitigation strategies over the past several years has made the recent evaluation of data more challenging as histor ical development patterns may not yet fully reflect these claim and mitigation activities. During 2016, we refined our actuarial methodology by combining data across previously segregated underwriting portfolios to improve our ability to analyze the los s development trends and patterns that had been altered by the mix, claims handling and loss mitigation changes we have made during the last five years. We also developed further segmentations by deductible size and other key parameters, such as claims han dled by TPA staff and not our claims department. As a result, we determined that the loss emergence patterns had changed and lengthened significantly from our prior expectation and therefore, we increased our loss development factors. In addition, for wo rkers’ compensation policies with no deductibles (guaranteed cost), we increased our tail factors for the all other states grouping to reflect the latest unfavorable experience in more mature accident years. This change increased the ultimate losses by app roximately $440 million in 2016. We also reflected the increasing cost trends for legal and cost containment services, especially in California, as recent trends in this sector have been unfavorable. Furthermore, in 2016, the Florida Supreme Court issued t wo separate rulings that have increased the potential liability for workers’ compensation claims in that state by undoing certain aspects of regulations in place since 2003. The Castellanos ruling eliminated statutory caps on claimant attorney fees in cert ain cases, and the Westphal ruling eliminated the 104-week limitation on temporary total disability benefits. Also in the second quarter, the Florida Court of Appeals issued the Miles decision, declaring unconstitutional certain restrictions on claimant-p aid attorney fees. In in the second quarter 2016, we increased our workers’ compensation reserves by $100 million to reflect our estimate of the costs of these rulings on prior years’ claims. During 2015, we increased our reserves by $234 million, primar ily for accident years 2012 and prior in the U.S. Workers’ Compensation line, to reflect estimated increased losses and reduced expectations of future recoveries from our insureds through risk-sharing features. We also recognized $100 million of unfavorabl e prior year development in U.S. Workers’ Compensation coverages sold to government contractors in U.S. and non-U.S. military installations as a result of unfavorable loss emergence from several large accounts in the recent accident years. In addition, we reacted to the unfavorable emergence by increasing our expected loss ratios in recent accident years. For the remainder of the primary workers’ compensation portfolio, our 2015 analysis was based on the refined segmentation from 2014, and indicated that pr ior year loss reserve development was flat after taking into account the initiatives that our claim function had undertaken to manage high risk claims. U.S. Excess Casualty During 2017, we recognized $ 254 mi llion of unfavorable prior year development in Excess Casualty driven by higher than expected loss emergence . During 2016, we recognized $1.1 billion of unfavorable prior year development in Excess Casualty driven by continued higher tha n expected loss emergence . Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement 2017 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 1,948 $ 1,968 $ 2,146 $ 1,933 $ 1,819 $ 1,875 $ 1,714 $ 1,662 $ 1,635 $ 1,658 $ 23 $ 188 4,662 $ (176) $ 1,482 $ 12 2009 1,831 1,897 1,797 1,638 1,457 1,321 1,407 1,518 1,522 4 210 3,789 (169) 1,353 41 2010 1,863 2,076 2,076 1,771 1,640 1,723 1,719 1,706 (13) 359 3,588 (260) 1,446 99 2011 1,766 1,807 1,581 1,416 1,521 1,606 1,623 17 350 3,520 (256) 1,367 94 2012 1,588 1,382 1,226 1,477 1,530 1,481 (49) 371 3,398 (323) 1,158 48 2013 1,073 973 1,113 1,258 1,178 (80) 441 2,722 (309) 869 132 2014 849 968 1,157 1,135 (22) 583 2,088 (355) 780 228 2015 892 1,334 1,320 (14) 602 1,770 (425) 895 177 2016 790 1,029 239 870 1,061 - 1,029 870 2017 758 725 376 - 758 725 Total $ 13,410 $ 105 $ (2,273) $ 11,137 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (7,120) - - (7,120) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 1,649 141 (864) 785 Unallocated loss adjustment expense prior year development 8 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 7,939 $ 254 $ (3,137) $ 4,802 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 11 $ 97 $ 439 $ 667 $ 842 $ 954 $ 1,061 $ 1,172 $ 1,226 $ 1,364 $ - 2009 8 69 249 449 624 788 965 1,174 1,212 - 2010 10 197 475 654 795 946 1,052 1,217 - 2011 5 63 225 386 716 921 1,069 - 2012 3 106 288 495 649 887 - 2013 15 104 204 382 546 - 2014 3 68 202 397 - 2015 9 192 361 - 2016 14 66 - 2017 1 - Total $ 7,120 $ - Reserving Process and Methodology U.S. Excess Casualty policies tend to attach at a high layer above underlying policies, which causes the loss development pattern to be lagged significantly. Many of the claims notified to the excess layers are closed without payment because the claims never reach our layer as a result of high deductibles and other underlying coverages, while the claims that reach our layer and close with payment can be large and highly variable in terms of reported timing and amount. F or a portion of this business, the underlying primary policies are issued by other insurance companies, which can limit our access to relevant information to help inform our judgments as the loss events evolve an |
VARIABLE LIFE AND ANNUITY CONTR
VARIABLE LIFE AND ANNUITY CONTRACTS | 12 Months Ended |
Dec. 31, 2017 | |
VARIABLE LIFE AND ANNUITY CONTRACTS | |
VARIABLE LIFE AND ANNUITY CONTRACTS | 14 . Variable Life and Annuity Contracts We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder and the separate account meets additional accounting criteria to qualify for separate account treatment. The assets supporting the variable portion of variable annuity and variable universal life contracts that qualify for separate account treatment are carried at fair value and reported as Separate account assets, with an equivalent summary total reported as Separate account liabilities. Policy values for variable products and investment contracts are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units in the separate accounts, plus any liabilities for guaranteed minimum death benefits or guaranteed minimum withdrawal benefits included in Future policy benefits or Policyholder contract deposits, respectively. Amounts assessed against the contract holders for mortality, administrative and other servic es are included in revenue. Net investment income, net investment gains and losses, changes in fair value of assets, and policyholder account deposits and withdrawals related to separate accounts are excluded from the Consolidated Statements of Income, Com prehensive Income (Loss) and Cash Flows. Variable annuity contracts may include certain contractually guaranteed benefits to the contract holder. These guaranteed features include guaranteed minimum death benefits (GMDB) that are payable in the event of d eath, and living benefits that are payable in the event of annuitization , or, in other instances, at specified dates during the accumulation period. Living benefits primarily include guaranteed minimum withdrawal benefits (GMWB). A variable annuity contrac t may include more than one type of guaranteed benefit feature; for example, it may have both a GMDB and a GMWB. However, a policyholder can only receive payout from one guaranteed feature on a contract containing a death benefit and a living benefit, i.e. the features are mutually exclusive (except a surviving spouse who has a rider to potentially collect both a GMDB upon their spouse’s death and a GMWB during their lifetime). A policyholder cannot purchase more than one living benefit on one contract. Th e net amount at risk for each feature is calculated irrespective of the existence of other features; as a result, the net amount at risk for each feature is not additive to that of other features. Account balances of variable annuity contracts with guarant ees were invested in separate account investment options as follows: At December 31, (in millions) 2017 2016 Equity funds $ 48,594 $ 42,266 Bond funds 7,793 7,798 Balanced funds 27,656 25,365 Money market funds 730 840 Total $ 84,773 $ 76,269 GMDB Depending on the contract, the GMDB feature may provide a death benefit of either (a) total deposits made to the contract less any partial withdrawals plus a minimum return (and in rare instances, no minimum return) or (b) the highest contract value attain ed, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary. GMDB is our most widely offered benefit. The liability for GMDB, which is recorded in Future policy benefits, represents the expected value of benefits in excess of the projected account value, with the exc ess recognized ratably over the accumulation period based on total expect ed assessments, through Policyholder benefits and losses incurred. The net amount at risk for GMDB represents the amount of benefits in excess of account value if death claims were f iled on all contracts on the balance sheet date. The following table presents details concerning our GMDB exposures, by benefit type : At December 31, 2017 2016 Net Deposits Net Deposits Plus a Minimum Highest Contract Plus a Minimum Highest Contract (dollars in billions) Return Value Attained Return Value Attained Account value $ 99 $ 17 $ 91 $ 16 Net amount at risk 1 - 1 1 Average attained age of contract holders by product 63 68 63 68 Range of guaranteed minimum return rates 0%-4.5% 0%-4.5% The following summarizes GMDB liability related to variable annuity contracts, excluding assumed reinsurance: Years Ended December 31, (in millions) 2017 2016 2015 Balance, beginning of year $ 402 $ 491 $ 420 Reserve increase (decrease) (14) (32) 127 Benefits paid (42) (57) (56) Changes in reserves related to unrealized appreciation of investments 6 - - Balance, end of year $ 352 $ 402 $ 491 Assumptions used to determine the GMDB liability include interest rates, which vary by year of issuance and products; mortality rates, which are based upon actual experience modified to allow for variations in policy form; lapse rates, which are based upon actual experience modified to allow for variations in policy form; i nvestment returns, using assumptions from a randomly generated model; and asset growth assumptions, which include a reversion to the mean methodology, similar to that applied for DAC. We regularly evaluate estimates used to determine the GMDB liability and adjust the additional liability balance, with a related charge or credit to Policyholder benefits and losses incurred, if actual experience or other evidence suggests that earlier assumptions should be revised. GMWB Certain of our variable annuity contracts contain optional GMWB benefi ts and, to a lesser extent, guaranteed minimum accumulation benefits, which are not currently offered . With a GMWB, the contract holder can monetize the excess of the guarantee d amount over the account value of the contract only through a series of withdrawals that do not exceed a specific percentage per year of the guaranteed amount. If, after the series of withdrawals, the account value is exhausted, the contract holder will r eceive a series of annuity payments equal to the remaining guaranteed amount, and, for lifetime GMWB products, the annuity payments continue as long as the covered person(s) is living. T he liabilities for GMWB , which are recorded in Policyholder contract deposits, are accounted for as embedded derivatives measured at fair value, with changes in the fair value of the liabilities recorded in Other net realized capital gains (losses). The fair value of these embedded derivatives was a net liability of $ 2.0 billion and $ 1.8 billion at December 31, 2017 and 2016 , respectively. For discussion of the fair value measurement of guaranteed benefits that are accounted for as embe dded derivatives see Note 5 . We had account values subject to GMWB that totaled $ 45 billion and $ 41 billion at December 31, 2017 and 2016 , respectively. The n et amount at risk for GMWB represents the present value of minimum guaranteed withdrawal payments, in accordance with contract terms, in excess of account value, assuming no lapses. T he net amount at r isk related to the GMWB guarantees was $ 450 million and $ 834 million at December 31, 2017 and 2016 , respectively. We use derivative instruments and other financial instruments to mitigate a portion of our exposure that arises from GMWB benefits. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2017 | |
DEBT | |
DEBT | 15 . Debt Our long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts , hedge accounting valuation adjustments and fair value adjustments, when applicable. The following t able lists our total debt outstanding at December 31, 2017 and 2016 . The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2017 , including fixed and variable-rates: Balance at Balance at At December 31, 2017 Range of Maturity December 31, December 31, (in millions) Interest Rate(s) Date(s) 2017 2016 Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable 0% - 8.13% 2018 - 2097 $ 20,339 $ 19,432 Junior subordinated debt 4.88% - 8.63% 2037 - 2058 841 843 AIG Japan Holdings Kabushiki Kaisha 0.28% - 0.44% 2020 - 2021 334 330 AIGLH notes and bonds payable 6.63% - 7.50% 2025 - 2029 281 281 AIGLH junior subordinated debt 7.57% - 8.50% 2030 - 2046 361 361 Total AIG general borrowings 22,156 21,247 AIG borrowings supported by assets: (a) MIP notes payable 2.72% - 2.95% 2018 356 1,099 Series AIGFP matched notes and bonds payable 1.21% - 1.30% 2046 - 2047 21 32 GIAs, at fair value 0.50% - 7.62% 2018 - 2053 2,707 2,934 Notes and bonds payable, at fair value 0.50% - 9.97% 2018 - 2040 181 494 Total AIG borrowings supported by assets 3,265 4,559 Total debt issued or guaranteed by AIG 25,421 25,806 Debt not guaranteed by AIG: Other subsidiaries notes, bonds, loans and mortgages payable 1.40% - 1.57% 2018 190 735 Debt of consolidated investments (b) 0% - 9.31% 2018 - 2065 6,029 4,371 Total debt not guaranteed by AIG 6,219 5,106 Total long term debt $ 31,640 $ 30,912 (a) AIG Parent guarantees all such debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $ 2.0 billion and $ 2.2 billion at December 31, 2017 and December 31, 2016 , respectively . This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged o r resold by the counterparties. (b ) At December 31, 2017 , includes debt of consol idated investment vehicles related to real estate investments of $ 2.5 billion, affordable housing partnership investments of $ 1.8 b illion and other securitization vehicles of $ 1.7 b illion . At December 31, 2016 , includes debt of consol idated investment vehicles related to real estate investments of $ 1.9 billio n, affordable housing partnership investments of $ 1.7 b illion and other securitization vehicles of $ 771 m illion . The following table presents maturities of long-term debt (including unamortized original is sue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable), excluding $ 6.0 billion in borrowings of debt of consolidated investments: December 31, 2017 Year Ending (in millions) Total 2018 2019 2020 2021 2022 Thereafter Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable $ 20,339 $ 1,107 $ 998 $ 1,343 $ 1,496 $ 1,507 $ 13,888 Junior subordinated debt 841 - - - - - 841 AIG Japan Holdings Kabushiki Kaisha 334 - - 115 219 - - AIGLH notes and bonds payable 281 - - - - - 281 AIGLH junior subordinated debt 361 - - - - - 361 Total AIG general borrowings 22,156 1,107 998 1,458 1,715 1,507 15,371 AIG borrowings supported by assets: MIP notes payable 356 356 - - - - - Series AIGFP matched notes and bonds payable 21 - - - - - 21 GIAs, at fair value 2,707 506 265 30 202 47 1,657 Notes and bonds payable, at fair value 181 126 - - - - 55 Total AIG borrowings supported by assets 3,265 988 265 30 202 47 1,733 Total debt issued or guaranteed by AIG 25,421 2,095 1,263 1,488 1,917 1,554 17,104 Other subsidiaries notes, bonds, loans and mortgages payable 190 190 - - - - - Total $ 25,611 $ 2,285 $ 1,263 $ 1,488 $ 1,917 $ 1,554 $ 17,104 Uncollateralized and collateralized notes, bonds, loans and mortgages payable consisted of the following: Uncollateralized Collateralized At December 31, 2017 Notes/Bonds/Loans Loans and (in millions) Payable Mortgages Payable Total AIG general borrowings $ 334 $ - $ 334 Other subsidiaries notes, bonds, loans and mortgages payable * - 190 190 Total $ 334 $ 190 $ 524 * AIG does not guarantee any of these borrowings. AIGLH Junior Subordinated Debentures (Formerly, Liabilities Connected To Trust Preferred Stock) In connection with our acquisition of AIG Life Holdings, Inc. (AIGLH) in 2001, we entered into arrangements with AIGLH with respect to outstanding AIGLH capital securities. In 1996, AIGLH issued capital securities through a trust to institutional investors and funded the trust with AIGLH junior subordinated debentures issued to the trust with the same terms as the capital securities . On July 11, 2013, th e AIGLH junior subordinated debentures were distributed to holders of the capital securities, the capital securities were cancelled and the trusts were dissolved. At December 31, 2017 , the junior subordinated debentures outstanding consisted of $ 113 million of 8.5 p ercent junior subordinated debentures due July 2030, $ 211 million of 8.125 percent junior subordinated debentures due March 2046 and $ 37 million of 7.57 percent j unior subordinated debentures due December 2045, each guaranteed by AIG Parent. Credit Facilities We maintain a committed, revolving syndicated credit facility (the Facility) as a potential source of liquidity for general corporate purposes. The Facility provides for aggregate commitments by the bank syndicate to provide unsecured revolving loans and/or standby letters of credit of up to $ 4.5 billion without any limits on the type of borrowings and is scheduled to expire in June 2022 . At December 31, 2017 Available Effective (in millions) Size Amount Expiration Date Syndicated Credit Facility $ 4,500 $ 4,500 June 2022 6/27/2017 |
CONTINGENCIES, COMMITMENTS AND
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 12 Months Ended |
Dec. 31, 2017 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 16 . 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 regulatory and government investigations and actions, and litigation and other forms of dispute resolution in a large number of proceedings pending in various domestic and foreign jurisdictions. Certain of these matters involve potentially significant risk of loss due to potential for significant jury awards and settlements, punitive damages or other penalties. Many of these matters are also highly complex and seek recovery on behalf of a class or simila rly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters. In our insurance and reinsurance operations, litigation and arbitration concerning the scope of cover age under insurance and reinsurance contracts, and litigation and arbitration in which our subsidiaries defend or indemnify their insureds under insurance contracts, are generally considered in the establishment of our loss reserves. Separate and apart fr om the foregoing matters involving insurance and reinsurance coverage, AIG, our subsidiaries and their respective officers and directors are subject to a variety of additional types of legal proceedings brought by holders of AIG securities, customers, empl oyees and others, alleging, among other things, breach of contractual or fiduciary duties, bad faith and violations of federal and state statutes and regulations. With respect to these other categories of matters not arising out of claims for insurance or reinsurance coverage, we establish reserves for loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In many instances, we are unable to determine whether a loss is probable or to rea sonably estimate the amount of such a loss and, therefore, the potential future losses arising from legal proceedings may exceed the amount of liabilities that we have recorded in our financial statements covering these matters. While such potential futur e charges could be material, based on information currently known to management, management does not believe, other than may be discussed below, that any such charges are likely to have a material adverse effect on our financial position or results of oper ation. Additionally, from time to time, various regulatory and governmental agencies review the transactions and practices of AIG and our subsidiaries in connection with industry-wide and other inquiries into, among other matters, the business practices of current and former operating insurance subsidiaries. We have cooperated, and will continue to cooperate, in producing documents and other information in response to such requests. AIG’s Subprime Exposure, AIGFP Credit Default Swap Portfolio and Related Ma tters AIG, AIG Financial Products Corp. and related subsidiaries (collectively AIGFP), and certain directors and officers of AIG, AIGFP and other AIG subsidiaries have been named in various actions relating to our exposure to the U.S. residential subprime mortgage market, unrealized market valuation losses on AIGFP’s super senior credit default swap portfolio, losses and liquidity constraints relating to our securities lending program and related disclosure and other matters (Subprime Exposure Issues). As n oted below, all of the actions relating to the Subprime Exposure Issues have been resolved. Consolidated 2008 Securities Litigation. On May 19, 2009, a consolidated class action complaint, resulting from the consolidation of eight purported se curities class actions filed between May 2008 and January 2009, was filed against AIG and certain directors and officers of AIG and AIGFP, AIG’s outside auditors, and the underwriters of various securities offerings in the United States District Court for the Southern District of New York (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 cl aims under the Securities Act of 1933, as amended (the Securities Act), for allegedly materially false and misleading statements in AIG’s public disclosures from March 16, 2006 to September 16, 2008 relating to, among other things, the Subprime Exposure Is sues. 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 settlement and dismissing the action with prejudice, and the AIG settlement became final on June 29, 2015. Individual Securities Litigations. Between November 18, 2011 and Fe bruary 9, 2015, eleven separate, though similar, securities actions (Individual Securities 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 dismissed, and the remaining nine have now been settled. Starr International Litigation On November 21, 2011, Starr International Company, Inc. (SICO) filed a complaint against the United States in the United States Court of Federal Claims (the Court of Federal Claims), bringing claims, both individually and on behalf of the classes defined below and derivatively on behalf of AIG (the SICO Treasury Action). The complaint challenges the government’s assistance of AIG, pursuant to which AIG entered into a credit facility with the Federal Reserve Bank of New York (the FRBNY, and such credit facility, the FRBNY Credit Facility) and the United States received an approximately 80 percent ownership in AIG. The complaint alleges that the interest rate imposed on AIG and the appropriation of approximately 80 percent of AIG’s equity was discriminatory, unprecedented, and inconsistent with liquidity assistanc e 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 on our behalf. On January 9, 2013, our Board unanimously refused SIC O’s demand in its entirety and on January 23, 2013, counsel for the Board sent a letter to counsel for SICO describing the process by which our Board considered and refused SICO’s demand and stating the reasons for our Board’s determination. On March 11, 2 013, SICO filed a second amended complaint in the SICO Treasury Action alleging that its demand was wrongfully refused. On June 26, 2013, the Court of Federal Claims granted AIG’s and the United States’ motions to dismiss SICO’s derivative claims in the SI CO 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 shareholders (the Reverse Stock Split Shareholder Class). SICO has provid ed notice of class certification to potential members of the classes, who, pursuant to a court order issued on April 25, 2013, had to return opt -in consent forms by September 16, 2013 to participate in either class. 286,908 holders of AIG Com mon 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 vote at the June 30, 2009 annual meeting of shareholders. On June 17, 2015, the Court of Federal Claims entered judgment stating that “the Credit Agreement Shareholder Class shall prevail on liability due to the Government's illegal exaction, but shall recover zero damages, and that the Reverse Stock Split Shareholder Class shall not prevail on liability or damages.” SICO filed a notice of appeal of the July 2, 2012 dismissal of SICO’s unconstitutional conditions claim, the June 26, 2013 dismissal of SICO’s derivative claims, the Court’s June 15, 2015 opinion and order, and the Court’s June 17, 2015 judgment to the United States Court of Appeals for the Federal Circuit. The United States filed a notice of cross appeal of the Court’s July 2, 2012 opinion and order denying in part its motion to dismiss, the Court’s June 26, 201 3 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 Appeals for the Federal Circuit. On May 9, 2017, the Court of Appeals for the Federal Circuit: (i) vacated the Court of Federal Claims judgment on the Credit Agreement Shareholder Class and remanded with instructions for dismissal of that class, and (ii) affirmed the finding of no liability with respect to the Reverse Stock Split Class . On October 6, 2017, SICO filed a petition for writ of certiorari with the United States Supreme Court. In the Court of Federal Claims, the United States has alleged, as an affirmative defense in its answer, that AIG is obligated to indemnify t he FRBNY and its representatives, including the Federal Reserve Board of Governors and the United States (as the FRBNY’s principal), for any recovery in the SICO Treasury Action. AIG believes that any indemnification obligation would arise only if: (a) SIC O 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 preva ils on its claims and the United States seeks indemnification from AIG, AIG intends to assert defenses thereto. A reversal of the Court of Federal Claim’s June 17, 2015 decision and judgment and a final determination that the United States is liable for da mages, together with a final determination that AIG is obligated to indemnify the United States for any such damages, could have a material adverse effect on our business, consolidated financial condition and results of operations. Tax Litigation. W e are party to pending tax litigation before the Southern District of New York . For additional information see Note 23 to the Consolidated Financial Statements. Commitments We occupy leased space in many locations under various long-term leases and have entered into various leases covering the long-term use of data processing equipment. The following table presents the future minimum lease payments under operating leases at December 31, 2017: (in millions) 2018 $ 243 2019 179 2020 137 2021 95 2022 59 Remaining years after 2022 120 Total $ 833 Rent expense was $ 269 million, $ 331 million and $ 327 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Other Commitments In the normal course of business, we enter into commitments to invest in limited partnerships, private equity funds and hedge funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled $ 3.2 billion at December 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 AIG Ma rkets arising from transactions entered into by AIG Markets. In connection with AIGFP’s business activities, AIGFP has issued, in a limited number of transactions, standby letters of credit or similar facilities to equity investors of structured leasing t ransactions in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at December 31, 2017 was $ 139 mil lion. 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 pay ments 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 standb y 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 generall y economically defeased, lessee bankruptcy is the most likely circumstance in which AIGFP would be required to pay without reimbursement. AIG Parent files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the conso lidated tax group when making payments to the Internal Revenue Service (IRS). AIG Parent and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated federal income taxes. Under an Amended and Restated Tax Payment Allocation Agreement dated June 6, 2011 between AIG Parent and one of its Bermuda-domiciled insurance subsidiaries, AIG Life of Bermuda, Ltd. (AIGB), AIG Parent has agreed to indemnify AIGB for any tax liability (including interest and penalties) resultin g from adjustments made by the IRS or other appropriate authorities to taxable income, special deductions or credits in connection with investments made by AIGB in certain affiliated entities. Asset Dispositions We are subject to financial guarantees and i ndemnity 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 contingencie s, the realization of contingent liabilities, developments in litigation or breaches of representations, warranties or covenants provided by us. These arrangements are typically subject to various time limitations, defined by the contract or by operation o f law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable. We are unable to develop a reasonable estimate of t he maximum potential payout under certain of these arrangements. Overall, we believe that it is unlikely we will have to make any material payments related to completed sales under these arrangements, and no material liabilities related to these arrangemen ts have been recorded in the Consolidated Balance Sheets. Other For additional discussion on commitments and guarantees associated with VIEs s ee Note 10 to the Consolidated Financial Statements . For additional disclosures about derivatives s ee Note 11 to the Consolidated Financial St atements . For additional disclosures about guarantees of outstanding debt s ee Note 25 to the Consolidated Financial Statements . |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY | |
EQUITY | 17 . Equity Shares Outstanding The following table presents a rollforward of outstanding shares: Common Treasury Common Stock Stock Issued Stock Outstanding Year Ended December 31, 2015 Shares, beginning of year 1,906,671,492 (530,744,521) 1,375,926,971 Shares issued - 371,806 371,806 Shares repurchased - (182,382,160) (182,382,160) Shares, end of year 1,906,671,492 (712,754,875) 1,193,916,617 Year Ended December 31, 2016 Shares, beginning of year 1,906,671,492 (712,754,875) 1,193,916,617 Shares issued - 2,069,110 2,069,110 Shares repurchased - (200,649,886) (200,649,886) Shares, end of year 1,906,671,492 (911,335,651) 995,335,841 Year Ended December 31, 2017 Shares, beginning of year 1,906,671,492 (911,335,651) 995,335,841 Shares issued - 3,386,462 3,386,462 Shares repurchased - (99,677,646) (99,677,646) Shares, end of year 1,906,671,492 (1,007,626,835) 899,044,657 Dividends D ividends are payable on AIG Common Stock only when, as and if declared by our Board of Directors in its discretion, from funds legally available for this purpose. In considering whether to pay a dividend on or purchase shares of AIG Common Stock, our Board of Directors considers a number of factors, including, but not limited to: the capital resources available to support our insurance operations and business strategies, AIG’s funding capacity and capital resources in comparison to internal benchma rks, expectations for capital generation, rating agency expectations for capital, regulatory standards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant. The following table presents record date, paym ent date and dividends paid per share on AIG Common Stock: Dividends Paid Record Date Payment Date Per Share December 8, 2017 December 22, 2017 $ 0.32 September 15, 2017 September 29, 2017 0.32 June 14, 2017 June 28, 2017 0.32 March 15, 2017 March 29, 2017 0.32 December 8, 2016 December 22, 2016 0.32 September 15, 2016 September 29, 2016 0.32 June 13, 2016 June 27, 2016 0.32 March 14, 2016 March 28, 2016 0.32 December 7, 2015 December 21, 2015 0.28 September 14, 2015 September 28, 2015 0.28 June 11, 2015 June 25, 2015 0.125 March 12, 2015 March 26, 2015 0.125 Repurchase of AIG Common Stock The following table presents repurchases of AIG Common Stock and warrants to purchase shares of AIG Common Stock: Years Ended December 31, (in millions) 2017 2016 2015 (a) Aggregate repurchases of common stock $ 6,275 $ 11,460 $ 10,691 Total number of common shares repurchased 100 201 182 Aggregate repurchases of warrants $ 3 $ 309 $ - Total number of warrants repurchased (b) - 17 - (a) T h e total number of shares of AIG Common Stock repurchased in 2015 includes (but the aggregate purchase price does not include) approximately 3.5 million shares of AIG Common Stock received in January 2015 upon the settlement of an accelerated stock repurchase ( ASR ) agreement executed in the fourth quarter of 2014. (b) In 2017, we repurchased 185,000 warrants to purchase shares of AIG Common Stock . Our Board of Directors has authorized the repurchase of shares of AIG Common Stock and warrants to purchase shares of AIG Common Stock through a series of actions. On May 3, 2017, our Board of Directors authorized an additional increase of $ 2.5 billion to its previous share repurchase authorization. As of December 31, 2017, a pproximately $ 2.3 billion remained under our share repurchase authorization. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurc hase 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 depen d on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factor s. Accumulated Other Comprehensive Income The following table presents a rollforward of Accumulated other comprehensive income: Unrealized Appreciation (Depreciation) of Fixed Unrealized Maturity Securities Appreciation Foreign Retirement on Which Other-Than- (Depreciation) Currency Plan Temporary Credit of All Other Translation Liabilities (in millions) Impairments Were Taken Investments Adjustments Adjustment Total Balance, January 1, 2015, net of tax $ 1,043 $ 12,327 $ (1,784) $ (969) $ 10,617 Change in unrealized depreciation of investments (488) (10,519) - - (11,007) Change in deferred policy acquisition costs adjustment and other (146) 1,265 - - 1,119 Change in future policy benefits 92 1,112 - - 1,204 Change in foreign currency translation adjustments - - (1,129) - (1,129) Change in net actuarial gain - - - 413 413 Change in prior service credit - - - (239) (239) Change in deferred tax asset (liability) 195 1,380 29 (51) 1,553 Total other comprehensive income (loss) (347) (6,762) (1,100) 123 (8,086) Noncontrolling interests - (1) (5) - (6) Balance, December 31, 2015, net of tax $ 696 $ 5,566 $ (2,879) $ (846) $ 2,537 Change in unrealized appreciation (depreciation) of investments (326) 931 - - 605 Change in deferred policy acquisition costs adjustment and other (19) 286 - - 267 Change in future policy benefits - (676) - - (676) Change in foreign currency translation adjustments - - 93 - 93 Change in net actuarial loss - - - (151) (151) Change in prior service credit - - - (22) (22) Change in deferred tax asset 75 298 157 47 577 Total other comprehensive income (loss) (270) 839 250 (126) 693 Noncontrolling interests - - - - - Balance, December 31, 2016, net of tax $ 426 $ 6,405 $ (2,629) $ (972) $ 3,230 Change in unrealized appreciation of investments 394 3,668 - - 4,062 Change in deferred policy acquisition costs adjustment and other 23 (1,282) - - (1,259) Change in future policy benefits - (1,102) - - (1,102) Change in foreign currency translation adjustments - - 547 - 547 Change in net actuarial gain - - - 110 110 Change in prior service cost - - - 9 9 Change in deferred tax asset (liability) (50) 4 (8) (78) (132) Total other comprehensive income 367 1,288 539 41 2,235 Noncontrolling interests - - - - - Balance, December 31, 2017, net of tax $ 793 $ 7,693 $ (2,090) $ (931) $ 5,465 The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2017 , 2016 and 2015 : Unrealized Appreciation (Depreciation) of Fixed Unrealized Maturity Securities Appreciation Foreign Retirement on Which Other- (Depreciation) Currency Plan Than-Temporary Credit of All Other Translation Liabilities (in millions) Impairments Were Taken Investments Adjustments Adjustment Total December 31, 2015 Unrealized change arising during period $ (471) $ (7,068) $ (1,129) $ 285 $ (8,383) Less: Reclassification adjustments included in net income 71 1,074 - 111 1,256 Total other comprehensive income (loss), before income tax expense (benefit) (542) (8,142) (1,129) 174 (9,639) Less: Income tax expense (benefit) (195) (1,380) (29) 51 (1,553) Total other comprehensive income (loss), net of income tax expense (benefit) $ (347) $ (6,762) $ (1,100) $ 123 $ (8,086) December 31, 2016 Unrealized change arising during period $ (222) $ 1,769 $ 93 $ (344) $ 1,296 Less: Reclassification adjustments included in net income 123 1,228 - (171) 1,180 Total other comprehensive income (loss), before income tax expense (benefit) (345) 541 93 (173) 116 Less: Income tax benefit (75) (298) (157) (47) (577) Total other comprehensive income (loss), net of income tax benefit $ (270) $ 839 $ 250 $ (126) $ 693 December 31, 2017 Unrealized change arising during period $ 467 $ 2,052 $ 547 $ 24 $ 3,090 Less: Reclassification adjustments included in net income 50 768 - (95) 723 Total other comprehensive income, before income tax expense 417 1,284 547 119 2,367 Less: Income tax expense (benefit) 50 (4) 8 78 132 Total other comprehensive income, net of income tax expense (benefit) $ 367 $ 1,288 $ 539 $ 41 $ 2,235 The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income: Amount Reclassified from Accumulated Other Years Ended December 31, Comprehensive Income Affected Line Item in the (in millions) 2017 2016 2015 Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken Investments $ 50 $ 123 $ 71 Other realized capital gains Total 50 123 71 Unrealized appreciation (depreciation) of all other investments Investments 463 935 1,054 Other realized capital gains Deferred acquisition costs adjustment 305 293 3 Amortization of deferred policy acquisition costs Future policy benefits - - 17 Policyholder benefits and losses incurred Total 768 1,228 1,074 Change in retirement plan liabilities adjustment Prior-service credit 5 15 214 * Actuarial losses (100) (186) (103) * Total (95) (171) 111 Total reclassifications for the period $ 723 $ 1,180 $ 1,256 * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 21 to the Consolidated Financial Statements. |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE (EPS) | |
EARNINGS PER SHARE (EPS) | 18 . Earnings Per Share (EPS) The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The d iluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits. The following table presents the compu tation of basic and diluted EPS: Years Ended December 31, (dollars in millions, except per share data) 2017 2016 2015 Numerator for EPS: Income (loss) from continuing operations $ (6,060) $ (259) $ 2,222 Less: Net income from continuing operations attributable to noncontrolling interests 28 500 26 Income (loss) attributable to AIG common shareholders from continuing operations (6,088) (759) 2,196 Income (loss) from discontinued operations, net of income tax expense 4 (90) - Net income (loss) attributable to AIG common shareholders $ (6,084) $ (849) $ 2,196 Denominator for EPS: Weighted average shares outstanding — basic 930,561,286 1,091,085,131 1,299,825,350 Dilutive shares - - 34,639,533 Weighted average shares outstanding — diluted (a)(b) 930,561,286 1,091,085,131 1,334,464,883 Income (loss) per common share attributable to AIG: Basic: Income (loss) from continuing operations $ (6.54) $ (0.70) $ 1.69 Income from discontinued operations $ - $ (0.08) $ - Income (loss) attributable to AIG $ (6.54) $ (0.78) $ 1.69 Diluted: Income (loss) from continuing operations $ (6.54) $ (0.70) $ 1.65 Income from discontinued operations $ - $ (0.08) $ - Income (loss) attributable to AIG $ (6.54) $ (0.78) $ 1.65 (a) Shares in the diluted EPS calculation represent basic shares for 2017 and 2016 due to the net losses in those period s . The shares excluded from the calculation were 22,412,682 shares and 30,326,772 shares for the years ended December 31, 2017 and 2016, respectively. (b) Dilutive shares included 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 were 1.7 million, 0.2 million and 0.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
STATUTORY FINANCIAL DATA AND RE
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2017 | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 19 . Statutory Financial Data a nd Restrictions The following table presents statutory net income (loss) and capital and surplus for our General Insurance c ompanies and our Life and Retirement c ompanies in accordance with statutory accounting practices: (in millions) 2017 2016 2015 Years Ended December 31, Statutory net income (loss) (a)(b)(c) : General Insurance companies : Domestic (c) $ (622) $ 260 $ 1,444 Foreign (333) (1,326) 594 Total General Insurance companies $ (955) $ (1,066) $ 2,038 Life and Retirement companies : Domestic $ 932 $ 2,252 $ 2,200 Foreign 21 47 (5) Total Life and Retirement companies $ 953 $ 2,299 $ 2,195 At December 31, Statutory capital and surplus (a)(b)(c) : General Insurance companies : Domestic (c) $ 21,514 $ 21,665 Foreign 11,695 12,587 Total General Insurance companies $ 33,209 $ 34,252 Life and Retirement companies : Domestic $ 11,872 $ 12,314 Foreign 446 490 Total Life and Retirement companies $ 12,318 $ 12,804 Aggregate minimum required statutory capital and surplus : General Insurance companies : Domestic $ 5,307 $ 5,183 Foreign 6,166 7,257 Total General Insurance companies $ 11,473 $ 12,440 Life and Retirement companies : Domestic $ 3,148 $ 3,088 Foreign 121 234 Total Life and Retirement companies $ 3,269 $ 3,322 (a) Excludes discontinued operations and other divested businesses. Statutory capital and surplus and net income (loss) with respect to foreign operations are as of November 30. (b) In aggregate, the 201 6 General Insurance c ompanies and Life and Retirement c ompanies statutory net income increased by $ 479 million and the 201 6 General Insurance c ompanies and Life and Retirement c ompanies statutory capital and surplus decreased by $ 305 m illion, compare d to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 201 6 , due to finalization of statutory filings. (c) General Insurance companies recognized $ 200 million of capital contributions from AIG Parent in their statutory financial statements as of December 31, 201 6 related to the reserve strengthening in the fourth quarter . This capital contribution was received in February 2017 . Our insurance subsidiaries file financial statements prepared in accordance with st atutory accounting practices prescribed or permitted by domestic and foreign insurance regulatory authorities. The principal differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP for domestic comp anies are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, investment impairments are determined in accordance with statutory accounting practices, assets and liabilities are presented net of re insurance, policyholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. For domestic insurance subsidiaries, aggregate minimum required statutory capital and surplus is based on the greater of the R BC level that would trigger regulatory action or minimum requirements per state insurance regulation. Capital and surplus requirements of our foreign subsidiaries differ from those prescribed in the U.S., and can vary significantly by jurisdiction. At both December 31, 2017 and 2016 , all domestic and foreign insurance subsidiaries individually exceeded the minimum required statutory capital and surplus requirements and all domestic insurance subsidiaries individually exceed ed RBC minimum required levels. At December 31, 2017 and 2016 , our domestic insurance subsidiaries used the following permitted practices that resulted in reported statutory surplus or risk-based capital that is significantly different from the statu tory surplus or risk based capital that would have been reported had NAIC statutory accounting practices or the prescribed regulatory accounting practices of their respective state regulator been followed in all respects: In 201 5 , a domestic life insurance subsidiary domiciled in Texas adopted a permitte d statutory accounting practice to report derivatives used to hedge interest rate risk on product-related embedded derivatives at amortiz ed cost instead of fair value. In 2017, the permitted practice was exp anded to include additional derivative instruments utilized for the same purpose and to also include an additional domestic life insurance subsidiary domiciled in Texas. This permitted practice resulted in a n increase in the sta tutory surplus of our subsidiaries of $407 million and $ 645 million at December 31, 2017 and 2016, respectively. In 2016, certain domestic property and casualty subsidiaries domiciled in New York, Pennsylvania and Delaware applied a permitted practice to present the inception d ate effects of the 2017 adverse loss development cover in their 2016 statutory-basis financial statements. This permitted practice resulted in an increase in the subsidiaries’ aggregate surplus as of December 31, 2016 of $ 1.1 billion. As described in No te 13 , our domestic property and casualty insurance subsidiaries domiciled in New York, Pennsylvania and Delaware discount non-tabular workers’ compensation reserves based on applicable prescribed or approved regulations, or in the case of our Delaware subsidiary, based on a permitted practice. This practice did not have a material impact on our statutory surplus, statutory net income (loss) or risk-based capital . The NAIC Model Regulation “Valuation of Life Insurance Policies” (Regulation XXX ) requires U.S. life insurers to establish additional statutory reserves for term life insurance policies with long-term premium guarantees and universal life policies with secondary guarantees (ULSGs). In addition, NAIC Actuarial Guideline 38 (Guideline A XXX) clarifies the application of Regulation XXX as to these guarantees, including certain ULSGs. Domestic life insurance subsidiaries manage the capital impact of statutory reserve requirements under Regulation XXX and Guideline AXXX through unaffiliated and affiliated reinsurance transactions. The affiliated life insurers providing reinsurance capacity for such transactions are fully licensed insurance companies and are not formed under captive insurance laws. One of these affiliated reinsurance arrangem ents, under which certain Regulation XXX and Guideline AXXX reserves related to new and in-force business were ceded to an affiliated U.S. life insurer, was recaptured effective December 31, 2016 and these reserves were ceded to an un affiliated reinsurer. Under the other intercompany reinsurance arrangement, certain Regulation XXX and Guideline AXXX reserves related to a closed block of in-force business are ceded to an affiliated off-shore life insurer, which is licensed as a class E insurer under Bermuda law. Bermuda law permits the off-shore life insurer to record an asset that effectively reduces the statutory reserves for the assumed reinsurance to the level that would be required under U.S. GAAP. Letters of credit are used to support the credit for re insurance provided by the affiliated off-shore life insurer . For additional information regarding these letters of credit see Note 8 . Subsidiary Dividend Restrictions Payments of dividends to us by our insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities. With respect to our domestic insurance subsidiaries, the payment of any dividend requires formal notice to the insurance department in which the particular insurance subsidiary is domiciled. For examp le, unless permitted by the Superintendent of Financial Services, property casualty companies domiciled in New York generally may not pay dividends to shareholders that, in any 12 -month period, exceed the lesser of 10 percent of such company’s statutory po licyholders’ surplus or 100 percent of its “adjusted net investment income,” for the previous year, as defined. Generally, less severe restrictions applicable to both property casualty and life insurance companies exist in most of the other states in which our insurance subsidiaries are domiciled. Under the laws of many states, an insurer may pay a dividend without prior approval of the insurance regulator when the amount of the dividend is below certain regulatory thresholds. Other foreign jurisdictions ma y restrict the ability of our foreign insurance subsidiaries to pay dividends. Various other regulatory restrictions also limit cash loans and advances to us by our subsidiaries. Largely as a result of these restrictions, approximately $ 44.8 billion of the statutory capital and surplus of our consolidated insurance subsidiaries were restricted from transfer to AIG Parent without prior approval of state insurance regulators at December 31, 2017 . To our knowledge, no AIG insurance company is currently on any regulatory or similar “watch list” with regar d to solvency. Parent Company Dividend Restrictions At December 31, 2017 , our ability to pay dividends is not subject to any significant contractual restrict ions, but remains subject to regulatory restrictions. For additional information about our ability to pay dividends to our shareholders see Note 17 herein. |
SHARE-BASED AND OTHER COMPENSAT
SHARE-BASED AND OTHER COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED AND OTHER COMPENSATION PLANS | |
SHARE-BASED AND OTHER COMPENSATION PLANS | 20 . Share-Based Compensation Plans The following table presents our total share -based compensation expense: Years Ended December 31, (in millions) 2017 2016 2015 Share-based compensation expense - pre-tax * $ 353 $ 237 $ 365 Share-based compensation expense - after tax 229 154 237 * We recognized $ 141 million, $ 105 million and $ 147 million for immediately vested stock-settled awards issued to retirement eligible employees in 2017 , 2016 and 2015 , respectively. We also recognized $ 40 million of excess tax benefits due to share settlements occurring in 2017. Employee Plans The Company sponsors several Long Term Incentive (LTI) programs under the AIG 2013 Long Term Incentive Plan and its successor plan, the AIG Long Term Incentive Plan (each as applicable, the LTIP), which are governed by the AIG 2013 Omnibus Incentive Plan (Omnibus Plan). The Omnibus Plan replaced the AIG 2010 Stock Incentive Plan (2010 Plan) as of May 15, 2013 but does not affect the terms and conditions of any award issued under the 2010 Plan. The Omnibus Plan is currently the only plan under which share-settled awards can be made. Our share-settled awards are settled with previously acquired shares held in AIG’s treasury. AIG 2013 Omnibus Incentive Plan The Omnibus Plan was adopted at the 2013 Annual Meeting of Shareholders and provides for the grants of share-based awards to our employees and non-employee directors. The total number of shares that may be granted under the Omnibus Plan (the reserve) is the sum of 1) 45 million shares of AIG Common Stock, plus 2) the number of authorized shares that remained available for issuance under the 2010 Plan when the Omnibus Plan became effective, plus 3) the number of shares of AIG Common Stock relating to outstanding awards under the 2010 Plan at the time the Omnibus Plan became effective that subsequently are forfeited, expired, terminated or otherwise lapse or are settled in cash. Each share-based unit granted under the Omnibus Plan reduces the number of shares available for future grants by one share. However, shares with respect to awards that are forfeited, expired or settled for cash, and shares withheld for taxes on awards (other than options and stock appreciation rights awards) are returned to the reserve. During 2017 , performance share units (PSUs), restricted stock units (RSUs), stock options and deferred stock units (DSUs) (collectively, units) were grante d under the Omnibus Plan and 42,780,716 shares are available for future grants as of December 31, 2017 . Units are issued to employees as part of our long-term incentive program, generally in March of any given year, and are also issued for off-cycle grants, which are made from time to time during the year generally as sign-on awards to new hires or as a result of a change in employee status. AIG 201 0 Stock Incentive Plan The 2010 Plan was adopted at the 2010 Annual Me eting of Shareholders. The total number of shares of AIG Common Stock that could be granted under the 2010 Plan was 60 million. During 2013, we granted PSUs, DSUs and RSUs under the 2010 Plan. Each PSU, DSU and RSU awarded red uced the number of shares available for future grants by one share. Subsequent to the adoption of the Omnibus Plan in May 2013, no additional grants were made under the 2010 Plan. AIG Long Term Incentive Plan LTI Awards The LTIP prov ides for an annual award to certain employees, including our senior executive officers and other highly compensated employees. In 2017, each award recipient was granted PSUs and/or RSUs, and in 2013 through 2016, each award recipient was granted PSUs. The number of PSUs issued on the grant date (the target) provides the opportunity for the LTIP participant to receive shares of AIG Common Stock based on AIG achieving specified performance goals at the end of a three -year performance peri od. These performance goals are pre-established by AIG’s Compensation and Management Resources Committee (CMRC) for each annual grant and may differ from year to year. The actual number of PSUs earned can vary from zero to 200 percent of the target for the 2017 awards, or zero to 150 percent of the target for the 2013 through 2016 awards, depending on AIG’s performance relative to a specified peer group. RSUs are earned based on continued service by the participant. For the 2017 awards, vesting occurs on January 1 of the year immediately following the end of the three-year performance period. For awards granted prior to 2017, vesting occurs in three equal installments beginning on January 1 of the year immediately following the end of a performance period and January 1 of each of the next two years. Recipients must be employed at each vesting date to be entitled to share delivery, except upon the occurrence of an accelerated vesting event, such as an involuntary termination without cause, disability, retirement eligibility or death during the vesting period. LTI awards granted in 2015 and thereafter accrue dividend equivalent units (DEUs) in the form of additional PSUs and/or RSUs whenever a cash dividend is declared on shares of AIG Common Stock; the DEUs are subject to the same vesting ter ms and conditions as the underlying unit. Unit Valuation The value of each award is based on the nature of the performance goals and the price per unit is fixed as of the grant date. PSUs granted in 2017 and 2016 are measured based on AIG’s relative tota l shareholder return (TSR). P SUs granted in 2015 and 2014 are measured based on AIG’s relative TSR and credit default swap (CDS) spread , weighted 75 percent and 25 percent, respectively. PSUs granted in 2013 are measured ba sed on AIG’s relative TSR and relative growth in tangible book value per common share (TBVPS) (excluding accumulated other comprehensive income) weighted 50 percent each. The fair value of RSUs as well as PSUs earned based on AIG’s CDS s preads and relative TBVPS was based on the closing price of AIG Common Stock on the grant date. However, PSUs granted in 2014 and 2013 that vest based on these goals were discounted by the present value of estimated dividends to be paid during the respecti ve vesting periods as these awards do not accrue dividends or DEUs. The fair value of PSUs to be earned based on AIG’s relative TSR was determined on the grant date using a Monte Carlo simulation. The following table presents the assumptions used to estim ate the fair value of PSUs that vest based on AIG’s TSR: 2017 2016 2015 Expected dividend yield (a) 2.37 % 2.17 % 1.78 % Expected volatility (b) 17.58 % 24.55 % 22.71 % Risk-free interest rate (c) 2.00 % 1.30 % 1.01 % (a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date. (b) The expected volatility is based on the historical volatility of the stock price for the 360 most recent trading days prior to the valuation date estimated by Bloomberg Professional service . (c) The risk-free interest rate is the continuousl y compounded interest rate for the term between the valuation dat e and the end of the performance period that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date Modification of LTI awards During the fourth quarter of 2017, the Company modified certain outstand ing LTI awards by concurrently issuing service-based RSUs and canceling some previously granted PSUs. The change applied to most recipients who participate in the 2015, 2016 and 2017 LTI awards, excluding certain of the Company’s most senior executives. In addit ion, the Company also issued supplemental RSU grants to certain active employees , which vest in installments over a period of up to three years. We incurred incremental compensation ex pense of $142 million as a result of these actions. We recognized $71 million in 2017 and the remainder will be recognized through December 2020. The following table summarizes outstanding share - settled LTI awards (a) : Weighted Average As of or for the Year Number of Units Grant-Date Fair Value Ended December 31, 2017 (b) 2017 LTI 2016 LTI 2015 LTI 2014 LTI 2013 LTI 2017 LTI 2016 LTI 2015 LTI 2014 LTI 2013 LTI Unvested, beginning of year - 2,588,598 2,176,555 1,732,616 1,581,904 $ - $ 51.12 $ 55.52 $ 48.88 $ 38.03 Granted 3,996,978 2,806 - 122,378 - 64.83 36.49 - 48.57 - Vested (c) (971,945) (182,938) (201,256) (957,045) (968,930) 64.09 60.29 59.04 48.89 37.98 Forfeited (84,987) (138,263) (121,456) (74,638) (36,764) 65.24 51.10 55.01 49.02 39.14 Unvested, at modification date 2,940,046 2,270,203 1,853,843 823,311 576,210 $ 65.07 $ 50.37 $ 55.17 $ 48.81 $ 38.04 Cancelled at modification date (1,082,417) (2,951,417) (2,229,873) - - 67.47 52.00 54.56 - - Granted at modification date 1,082,417 2,646,866 2,094,629 - - 62.13 62.13 62.13 - - Sub-total, net impact of modification - (304,551) (135,244) - - - 55.01 56.33 - - Vested - post-modification (c) (766,931) (495,222) (424,788) - - 64.01 62.13 61.82 - - Forfeited - post-modification - (2,685) (2,023) - - - 62.13 62.13 - - Unvested, end of year (d) 2,173,115 1,467,745 1,291,788 823,311 576,210 $ 62.78 $ 60.90 $ 60.02 $ 48.81 $ 38.04 (a) Excludes stock options and DSUs, which are discussed under Stock Options and Non-Employee Plan, respectively. (b) Except for the 2013 and 2014 LTI award, PSUs represent target amount granted, and does not reflect potential increases or decreases that could result from the final outcome of the performance goals for the respective awards, which is determined in the quarter after the applicable performance period ends. (c) Also r eflects units that vest as a result of an accelerated vesting event that o ccurred prior to the specified vesting date. (d) At December 31, 2017 , the total unrecognized compe nsation cost for outstanding LTI awards was $ 237 million and the weighted-average and expected period of years over w hich that cost is expected to be recognized are 1.02 years and 3 years . Stock Option Awards The Company issued 2.5 million stock options to two senior executives who joined the Company in 2017. The options vest in installments base d on a combination of service requirements of up to three years and/or AIG stock price achieving specified hurdles, a nd will expire in 2024 . The fair value of the options were estimated on the grant date using the Black Scholes model for the time-vesting options, and a Monte Carlo simulation for the hurdle-vesting options using the assumptions noted in the following table. The following weighted-average assumptions were used for stock op tions granted 2017 Expected annual dividend yield (a) 2.03 % Expected volatility (b) 20.96 % Risk-free interest rate (c) 1.94 % Expected term (d) 4.5 years (a) The dividend yield is based on the current quarterly dividend payment of $0.32 and the Valuation Date stock price. (b) The expected volatility is the 1080-day implied volatility as seen in the open marketplace on the Valuation Date. (c) The risk-free interest rate range is 1.76 percent to 2.14 percent. (d) The contractual term of the option is 7 years from the grant date . The following table provides a roll forward of stock option activity: Weighted Average Aggregate As of or for the Year Weighted Average Remaining Intrinsic Values Ended December 31, 2017 Units Exercise Price Contractual Life (in millions) Outstanding, beginning of year - $ - Granted 2,500,000 62.90 Exercised - - Forfeited or expired - - Outstanding, end of year 2,500,000 $ 62.90 6.48 $ - Exercisable, end of year - $ - - $ - The weighted average grant-date fair value of stock options granted during 2017 was $ 10.54 . As of December 31, 2017, we recognized $7.3 million of expense, while $19 million was unrecognized and is expected to be amortized up to 2.75 years. Non-Employee Plan Our non-employee directors, who serve on our Board of Directors, receive share-based compensation in the form of fully vested DSUs with delivery deferred until retirement from the Board. DSUs granted in 2017 , 2016 and 2015 accrue DEUs equal to the amount of any regular quarterly dividend that would have been paid by AIG if the shares of AIG Common Stock underlying the DSUs had been outstanding. In 2017 , 2016 and 2015 , we granted to non-employee directors 32,067 , 41,974 and 32,342 DSUs, respe ctively, under the 2013 Plan, and recognized expense of $ 2.0 million, $ 2.4 million and $ 1.9 million, respectively. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 21 . Employee Benefits Pension Plans We offer various defined benefit plans to eligible employees. The U.S. AIG Retirement Plan (the qualified plan) is a noncontributory defined benefit plan that is subject to the provisions of ERISA. U.S. salaried employees who are employed by a participating company on or before December 1, 2014 and who have completed 12 months of continuous service are eligible to participate in the plan. Effective April 1, 2012, the qualified plan was converted to a cash balance formula comprised of pay credits based on six percent of a plan participant’s annual compensation (subject to IRS limitations) and annual interest credits. Employees can take their vested benefits when they leave AIG as a lump sum or an annui ty option after completing at least three years of service. Employees satisfying certain age and service requirements (i.e., grandfathered employees) remain covered under the average pay formula that was in effect prior to the conversion to the cash balanc e formula. The final average pay formula is based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Grandfathered employees will receive the higher of the benefit under the cash balance formula or th e final average pay formula at retirement. Non-U.S. defined benefit plans generally are either based on the employee’s years of credited service and compensation in the years preceding retirement or on points accumulated based on the employee’s job grade and other factors during each year of service. In the U.S. we also sponsor non-qualified unfunded defined benefit plans, such as the AIG Non-Qualified Retirement Income Plan (AIG NQRIP) for certain employees, including key executives, designed to supplemen t pension benefits provided by the qualified plan. The AIG NQRIP provides a benefit equal to the reduction in benefits under the qualified plan as a result of federal tax limitations on compensation and benefits payable. Plan Freeze Effective January 1, 2016, the U.S. defined benefit pension plans were frozen. Consequently, these plans are closed to new participants and current participants no longer earn benefits. However, interest credits continue to accrue on the existing cash balance accounts and part icipants are continuing to accrue years of service for purposes of vesting and early retirement eligibility and subsidies as they continue to be employed by AIG. Postretirement Plans We also provide postretirement medical care and life insurance benefits i n the U.S. and in certain non-U.S. countries. Eligibility in the various plans generally is based upon completion of a specified period of eligible service and attaining a specified age. Overseas, benefits vary by geographic location. U.S. postretirement m edical and life insurance benefits are based upon the employee attaining the age of 55 and having a minimum of ten years of service. Eligible employees who have medical coverage can enroll in retiree medical upon termination of employment. Medical benefits are contributory, while the life insurance benefits generally are non-contributory. Retiree medical contributions vary from none for pre-1989 retirees to actual premium payments reduced by certain subsidies for post-1992 retirees. These contributions are subject to adjustment annually. Other cost sharing features of the medical plan include deductibles, coinsurance and Medicare coordination. Effective April 1, 2012, the retiree medical employer subsidy for the AIG postretirement plan was eliminated for emp loyees who were not grandfathered. Additionally, new employees hired after December 31, 2012 are not eligible for retiree life insurance. The following table presents the funded status of the plans reconciled to the amount reported in the Consolidated Ba lance Sheets. The measurement date for most of the non-U.S. defined benefit pension and postretirement plans is November 30, consistent with the fiscal year end of the sponsoring companies. For all other plans, measurement occurs as of December 31. As of or for the Years Ended Pension Postretirement December 31, U.S. Plans * Non-U.S. Plans * U.S. Plans Non-U.S. Plans (in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Change in projected benefit obligation: Benefit obligation, beginning of year $ 4,948 $ 5,324 $ 1,246 $ 1,146 $ 196 $ 208 $ 80 $ 75 Service cost 11 19 29 31 2 2 3 3 Interest cost 166 181 16 21 6 7 3 3 Actuarial (gain) loss 372 118 (29) 98 - (2) (2) - Benefits paid: AIG assets (19) (24) (10) (12) (13) (14) (1) (1) Plan assets (161) (332) (26) (35) - - - - Plan amendment - - - 1 - - (6) - Curtailments - - (7) (2) - (1) - - Settlements (226) (338) (12) (16) - - - - Foreign exchange effect - - 37 19 - - 1 - Other - - (42) (5) (1) (4) (15) - Projected benefit obligation, end of year $ 5,091 $ 4,948 $ 1,202 $ 1,246 $ 190 $ 196 $ 63 $ 80 Change in plan assets: Fair value of plan assets, beginning of year $ 3,843 $ 4,359 $ 803 $ 773 $ - $ - $ - $ - Actual return on plan assets, net of expenses 584 154 67 19 - - - - AIG contributions 329 24 60 71 13 14 1 1 Benefits paid: AIG assets (19) (24) (10) (12) (13) (14) (1) (1) Plan assets (161) (332) (26) (35) - - - - Settlements (226) (338) (12) (16) - - - - Foreign exchange effect - - 19 6 - - - - Dispositions - - - (4) - - - - Other - - (26) 1 - - - - Fair value of plan assets, end of year $ 4,350 $ 3,843 $ 875 $ 803 $ - $ - $ - $ - Funded status, end of year $ (741) $ (1,105) $ (327) $ (443) $ (190) $ (196) $ (63) $ (80) Amounts recognized in the balance sheet: Assets $ - $ - $ 68 $ 53 $ - $ - $ - $ - Liabilities (741) (1,105) (395) (496) (190) (196) (63) (80) Total amounts recognized $ (741) $ (1,105) $ (327) $ (443) $ (190) $ (196) $ (63) $ (80) Pre-tax amounts recognized in Accumulated other comprehensive income: Net gain (loss) $ (1,373) $ (1,405) $ (170) $ (251) $ 17 $ 17 $ (11) $ (15) Prior service (cost) credit - - (22) (28) 1 2 5 - Total amounts recognized $ (1,373) $ (1,405) $ (192) $ (279) $ 18 $ 19 $ (6) $ (15) * Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $ 272 million and $ 278 million for the U.S. at December 31, 2017 and 2016 , respectively, and $ 211 million and $ 199 million for the non-U.S at December 31, 2017 and 2016 , respectively. The following table presents the accumulated benefit obligations for U.S. and n on-U.S. pensi on benefit plans: At December 31, (in millions) 2017 2016 U.S. pension benefit plans $ 5,091 $ 4,948 Non-U.S. pension benefit plans $ 1,188 $ 1,215 Defined benefit plan obligations in which the projected benefit obligation was in excess of the related plan assets and the accumulated benefit obligation was in excess of the related plan assets were as follows: At December 31, PBO Exceeds Fair Value of Plan Assets ABO Exceeds Fair Value of Plan Assets U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Projected benefit obligation $ 5,091 $ 4,948 $ 1,054 $ 1,121 $ 5,091 $ 4,948 $ 991 $ 1,029 Accumulated benefit obligation 5,091 4,948 979 1,016 5,091 4,948 979 1,009 Fair value of plan assets 4,350 3,843 596 545 4,350 3,843 596 536 The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits: Years Ended December 31, Pension Postretirement U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost: Service cost * $ 11 $ 19 $ 192 $ 29 $ 31 $ 43 $ 2 $ 2 $ 5 $ 3 $ 3 $ 3 Interest cost 166 181 220 16 21 25 6 7 8 3 3 3 Expected return on assets (266) (292) (295) (24) (26) (25) - - - - - - Amortization of prior service credit - - (22) - - (2) (1) (12) (11) (1) - (1) Amortization of net (gain) loss 26 25 92 12 7 9 (1) (1) - 1 1 - Net periodic benefit cost (credit) (63) (67) 187 33 33 50 6 (4) 2 6 7 5 Curtailment gain - - (179) (6) (6) (1) - (1) - (2) - - Settlement loss 60 149 - 1 2 1 - - - - - - Net benefit cost (credit) $ (3) $ 82 $ 8 $ 28 $ 29 $ 50 $ 6 $ (5) $ 2 $ 4 $ 7 $ 5 Total recognized in Accumulated other comprehensive income (loss) $ 32 $ (82) $ 143 $ 87 $ (101) $ 38 $ (2) $ (7) $ 12 $ 9 $ 1 $ (9) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 35 $ (164) $ 135 $ 59 $ (130) $ (12) $ (8) $ (2) $ 10 $ 5 $ (6) $ (14) * Reflects administrative fees for the U.S. pension plans. The estimated net loss and prior service cost that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $ 35 million and $ 2 million, respectively, for our combined defined benefit pension plans. For the defined benefit postretirement plans, the estimated amortization from Accumulated other comprehensive income for net loss and prior service credit that will be amortized into net periodic benefit cost over the next fiscal year is a $ 3 million credit in the aggregate. As of 2016, interest cost for pension and postretirement benefits for our U.S. plans and largest non-U.S. plans is measured by applying the specific spot rates along the yield curve to the plans’ corresponding discounted cash flows that comprise the obligation (the Spot Rate Approach). This method provides a more precise measur ement of interest cost by aligning the timing of the plans’ discounted cash flows to the corresponding spot rates on the yield curve . Previously, interest cost was measured utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligations. A 100 basis point increase in the discount rate or expected long-term rate of return would decrease the 2018 pension expense by approximately $ 4 million and $ 51 million, respectively, with all other items remaining the same. Conversely, a 100 basis point decrease in the discount rate or expected long-term rate of return would increase the 2018 pension expense by approximately $ 23 million and $ 51 million, respectively, with all other items remaining the same. Assumptions The following table summarizes the weighted average assumptions used to determine the benefit obligations: Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) December 31, 2017 Discount rate 3.61 % 1.60 % 3.53 % 3.59 % Rate of compensation increase N/A (b) 2.27 % N/A 3.00 % December 31, 2016 Discount rate 4.14 % 1.50 % 4.02 % 3.95 % Rate of compensation increase N/A (b) 2.50 % N/A 3.38 % (a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits. (b) Compensation increases are no longer applicable due to the plan freeze that became effective January 1, 2016. The following table summarizes assumed health care cost trend rates f or the U.S. plans: At December 31, 2017 2016 Following year: Medical (before age 65) 6.12% 6.31% Medical (age 65 and older) 5.00% 5.00% Ultimate rate to which cost increase is assumed to decline 4.50% 4.50% Year in which the ultimate trend rate is reached: Medical (before age 65) 2038 2038 Medical (age 65 and older) 2038 2038 A one percent point change in the assumed healthcare cost trend rate would have the following effect on our postretirement benefit obligations: One Percent One Percent At December 31, Increase Decrease (in millions) 2017 2016 2017 2016 U.S. plans $ 4 $ 4 $ (4) $ (3) Non-U.S. plans $ 14 $ 19 $ (10) $ (14) Our postretirement plans provide benefits primarily in the form of defined employer contributions rather than defined employer benefits . Changes in the assumed healthcare cost trend rate have a minimal impact for U.S. plans because for post-1992 retirees, benefits are fixed dollar amounts based on service at retirement. Our non-U.S. postretirement plans are not subject to caps. The following table presents the weighted average assumptions used to determine the net periodic b enefit costs: Pension Postretirement U.S. Plans Non-U.S. Plans * U.S. Plans Non-U.S. Plans * For the Year Ended December 31, 2017 Discount rate 4.15 % 1.50 % 4.01 % 3.95 % Rate of compensation increase N/A 2.50 % N/A 3.38 % Expected return on assets 7.00 % 2.92 % N/A N/A For the Year Ended December 31, 2016 Discount rate 4.33 % 2.17 % 4.21 % 4.09 % Rate of compensation increase N/A 2.64 % N/A 3.43 % Expected return on assets 7.00 % 3.28 % N/A N/A For the Year Ended December 31, 2015 Discount rate 3.94 % 2.33 % 3.77 % 4.04 % Rate of compensation increase 3.40 % 2.89 % N/A 3.29 % Expected return on assets 7.25 % 3.33 % N/A N/A * The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits. Discount Rate Methodology The projected benefit cash flows under the U.S. AIG Retirement Plan were discounted using the spot rates derived from the Mercer U.S. Pension Discount Yield Curve at December 31, 2017 and 2016 , which resulted in a single discount rate that would produce the same liability at the respective measurement dates. The discount rates were 3.61 percent at December 31, 2017 and 4.15 percent at December 31, 2016 . The methodology was consistently applied for the respective years in determining the discount rates for the other U.S. pension plans. In general, the discount rates for the non-U.S. plans were developed using a similar methodology to the U.S. AIG Retirement plan, by using country-specific Mercer Yield Curves. The projected benefit obl igation for AIG’s Japan pension plans represents approximately 50 percent and 54 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2017 and 2016 , respectively. The weighted average discount rate of 0.66 percent and 0.47 percent at December 31, 2017 and 2016 , respective ly, was selected by reference to the Mercer Yield Curve for Japan . Plan Assets The investment strategy with respect to assets relating to our U.S. and non-U.S. pension plans is designed to achieve investment returns that will provide for the benefit obligations of the plans over the long term, limit the risk of short-term funding shortfalls and maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including , but not limited to, vola tility relative to the benefit obligations, liquidity, diversification and concentration, and incorporates the risk/return profile applicable to each asset class. There were no shares of AIG Common Stock included in the U.S. and non-U.S. pension plans as sets at December 31, 2017 or 2016 . U.S. Pension Plan The assets of the qualified plan are monitored by the AIG U.S. I nvestment C ommittee and actively managed by the inv estment managers, which involves allocating the plan’s assets a mong approved asset classes within ranges as permitted by the strategic allocation. The long-term strategic asset allocation historically has been reviewed and revised approximately every three years. Beginning in 2016, the investment strategy focus is on de-risking the Plan via regular monitoring. This was implemented through liability driven investing and the adoption of the glide path approach , where the glide path defines the target allocation for the “Return-Seeking” portion of the portfolio (i.e., gr owth assets) based on the funded ratio. Under this approach, the allocation to growth assets is reduced and the allocation to liability-hedging assets is increased as the Plan’s funded ratio increases in accordance with the defined glide p ath. The followin g table presents the asset allocation percentage by major asset class for the U.S. qualified plan and the target allocation for 2017 based on the plan’s funded status at December 31, 2017 : Target Actual Actual At December 31, 2018 2017 2016 Asset class: Equity securities 46 % 45 % 43 % Fixed maturity securities 44 % 36 % 36 % Other investments 10 % 19 % 21 % Total 100 % 100 % 100 % The expected long-term rate of return for the plan was 7.0 percent for both 2017 and 2016 . The expected rate of return is an aggregation of expected returns within each asset class category, weighted for the investment mix of the assets. The combination of the expected asset return and any contributions made by us are expected to maintain the plan’s ability to meet all required benefit obligations. The expected asset return for each asset class was developed based on an approach that considers key fundamental drivers of the asset class returns in addition to historical returns, current market c onditions, asset volatility and the expectations for future market returns. Non-U.S. Pension Plans The assets of the non-U.S. pension plans are held in various trusts in multiple countries and are invested primarily in equities and fixed maturity securiti es to maximize the long-term return on assets for a given level of risk. The following table presents the asset allocation percentage by major asset class for non-U.S. pension plans and the target allocation: Target Actual Actual At December 31, 2018 2017 2016 Asset class: Equity securities 30 % 49 % 44 % Fixed maturity securities 52 % 32 % 36 % Other investments 17 % 13 % 14 % Cash and cash equivalents 1 % 6 % 6 % Total 100 % 100 % 100 % The assets of AIG’s Japan pension plans represent approximately 56 percent of total non-U.S. assets at December 31 for both 2017 and 2016 . The expected long term rate of return was 2.43 percent and 2.61 percent, for 2017 and 2016 , respectively, and is evaluated by the Japanese Pension Investment Committee on a quarterly and annual basis along with various investment ma nagers, and is revised to achieve the optimal allocation to meet targeted funding levels if necessary. In addition, the funding policy is revised in accordance with local regulation every five years. The expected weighted average long-term rate of return f or all our non-U.S. pension plans was 2.92 percent and 3.28 percent for the years ended December 31, 2017 and 2016 , respectively. It is an aggregation of expected returns wi thin each asset class that was generally developed based on the building block approach that considers historical returns, current market conditions, asset volatility and the expectatio ns for future market returns. Assets Measured at Fair Value The follo wing table presents information about our plan assets and indicates the level of the fair value measurement based on the observability of the inputs used. The inputs and methodology used in determining the fair value of these assets are consistent with th ose used to measure our assets as discussed in Note 5 herein. U.S. Plans Non-U.S. Plans (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total At December 31, 2017 Assets: Cash and cash equivalents $ 397 $ - $ - $ 397 $ 51 $ - $ - $ 51 Equity securities: U.S. (a) 1,300 - - 1,300 - - - - International (b) 265 - - 265 362 64 - 426 Fixed maturity securities: U.S. investment grade (c) - 1,006 12 1,018 - - - - International investment grade (c) - 204 - 204 - 97 - 97 U.S. and international high yield (d) - 212 - 212 - 171 - 171 Mortgage and other asset-backed securities (e) - 142 - 142 - - - - Other fixed maturity securities - - - - - 16 - 16 Other investment types (g) : Direct private equity (f) - - 15 15 - - - - Insurance contracts - 20 - 20 - - 113 113 Total $ 1,962 $ 1,584 $ 27 $ 3,573 $ 413 $ 348 $ 113 $ 874 At December 31, 2016 Assets: Cash and cash equivalents $ 228 $ - $ - $ 228 $ 50 $ - $ - $ 50 Equity securities: U.S. (a) 838 1 - 839 - - - - International (b) 377 - - 377 298 58 - 356 Fixed maturity securities: U.S. investment grade (c) - 1,174 2 1,176 - - - - International investment grade (c) - - - - - 90 - 90 U.S. and international high yield (d) - 218 - 218 - 186 - 186 Mortgage and other asset-backed securities (e) - - - - - - - - Other fixed maturity securities - - - - - 13 - 13 Other investment types (g) : Direct private equity (f) - - 24 24 - - - - Insurance contracts - 21 - 21 - - 108 108 Total $ 1,443 $ 1,414 $ 26 $ 2,883 $ 348 $ 347 $ 108 $ 803 (a) Includes passive and active U.S. Large Cap and Small Cap strategies, as well as mutual funds, and exchange traded funds. (b) Includes investments in companies in emerging and developed markets. (c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade. (e) Comprised primarily of i nvestments in U.S. asset backed securities and collateralized loan obligations . (f) Comprised of private capital financing including private debt and private equity securities. (g) Excludes investments that are measured at fair value using the NAV per shar e (or its equivalent), which totaled $ 777 million and $ 960 million at December 31, 2017 and 2016 , respectively. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we had no significant concentrations of risks at December 31, 2017 . The U.S. pension plan holds a group annuity contract with U.S. Life, one of our subsidiaries, which totaled $ 20 million and $ 21 million at December 31, 2017 and 2016 , respectively. Changes in Level 3 Fair Value M easurements The followi ng table presents changes in our U.S. and non-U.S. Level 3 plan assets measured at fair value: Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2017 Beginning Unrealized Transfers Transfers at End Instruments Held (in millions) of year Gains (Losses) Purchases Sales Issuances Settlements In Out of year at End of year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 2 $ - $ 17 $ (7) $ - $ - $ - $ - $ 12 $ 2 Direct private equity 24 (3) 1 (7) - - - - 15 (1) Total $ 26 $ (3) $ 18 $ (14) $ - $ - $ - $ - $ 27 $ 1 Non-U.S. Plan Assets: Other fixed maturity securities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Insurance contracts 108 4 1 - - - - - 113 - Total $ 108 $ 4 $ 1 $ - $ - $ - $ - $ - $ 113 $ - Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2016 Beginning Unrealized Transfers Transfers at End Instruments Held (in millions) of year Gains (Losses) Purchases Sales Issuances Settlements In Out of year at End of year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 9 $ 1 $ 2 $ (10) $ - $ - $ - $ - $ 2 $ - Direct private equity 28 (4) 4 (4) - - - - 24 (4) Total $ 37 $ (3) $ 6 $ (14) $ - $ - $ - $ - $ 26 $ (4) Non-U.S. Plan Assets: Other fixed maturity securities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Insurance contracts 95 12 1 - - - 2 (2) 108 - Total $ 95 $ 12 $ 1 $ - $ - $ - $ 2 $ (2) $ 108 $ - Transfers of Level 1 and Level 2 Assets Our policy is to record transfers of assets between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. We had no material transfers between Level 1 and Level 2 during the years ended December 31, 2017 and 2016 . Transfers of Level 3 Assets We record transfers of assets into or out of Level 3 at their fair values as of the end of each reporting period, consistent with the date of the det ermination of fair value. During the year ended December 31, 2017 , we had no transfers in or out of Level 3. Expected Cash Flows Funding for the qualified plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. There are no minimum required cash contributions in 201 8 for the AIG Retirement Plan. The non-qualified and postretirement plan s’ benefit payments are deductible when paid to participants. Our ann ual pension contribution in 2018 is expected to be approxim ately $ 64 million for our U.S. and non-U.S. pension plans. This estimate is subject to change, since contribution decisions are affected by various factors including our liquidity, market performance and management’s discretion. The expecte d future benefit payments, net of participants’ contributions, with respect to the defined benefit pension plans and other postretirement benefit plans, are as follows: Pension Postretirement U.S. Non-U.S. U.S. Non-U.S. (in millions) Plans Plans Plans Plans 2018 $ 291 $ 36 $ 13 $ 1 2019 287 40 13 1 2020 297 42 13 1 2021 294 43 13 2 2022 291 41 13 2 2023-2027 1,407 235 60 11 Defined Contribution Plans We sponsor several defined contribution plans for U.S. employees that provide for pre-tax salary reduction contributions by employees. The most significant plan is the AIG Incentive Savings Plan, for which the matching contribution is 100 percent of the first six percent of a participant’s contributions, subject to the IRS - imposed limitations . Effective January 1, 2016, participants in the AIG Incentive Savings Plan receive an additional fully vested, non-elective, non-d iscretionary contribution equal to three percent of the participant’s annual base compensation for the plan year, paid each pay period regardless of whether the participant currently contributes to the plan, and subject to the IRS-imposed limitations. Our pre-tax expenses associated with these plans were $ 209 million, $ 236 million and $ 166 million in 2017 , 2016 and 2015 , respectively . |
OWNERSHIP
OWNERSHIP | 12 Months Ended |
Dec. 31, 2017 | |
OWNERSHIP | |
OWNERSHIP | 22 . Ownership A Schedule 13G /A filed on February 14, 2018 reports aggregate ownership of 57,556,990 shares, or approximately 6.4 percent (based on the AIG Common Stock outstanding) of AIG Comm on Stock as of December 31, 2017 , by Capital Research Global Investors, a division of Capital Resea rch and Management Company. A Schedule 13G/A filed on February 12, 2018 reports aggregate ownership of 61,323,039 shares, or approximately 6.8 percent (based on the AIG Common Stock outstanding) o f AIG Common Stock as of December 31, 2017 , by The Vanguard Group, Inc. and various subsidiaries thereof. A Schedule 13G/A filed on February 8, 2018 reports aggregate ownership of 64,406,363 shares, or approximately 7.2 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2017 , by Blackrock, Inc . and various subsidiaries there of. The calculation of ownership interest for purposes of the AIG Tax Asset Protection Plan and Article 13 of our Restated Certificate of Inc orporation is different than beneficial ownership for Schedule 13G. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES | |
INCOME TAXES | 23 . Income Taxes U.S. Tax Reform Overview On December 22, 2017, the U.S. enacted Public Law 115-97, known informally as the Tax Cuts and Jobs Act (the Tax Act ). The Tax Act reduces the statutory rate of U.S. federal corporate income tax to 21 percent and enacts numerous other changes impacting AIG and the insurance industry. Changes specific to the insurance industry include the calculation of insurance tax reserves and related transition adjustments, amortization of specified policy acquisi tion expenses, treatment of separate account dividends received deductions, and computation of pro-ration adjustment s . Provisions of the Tax Act with broader application include reductions or elimination of deductions for certain items, e.g. , reductions t o corporate dividends received deductions, disallowance of entertainment expenses, and limitations on the deduction of certain executive compensation costs. These provisions, generally, will result in an increase in AIG’s taxable income in the years begin ning after December 31, 2017. The SEC staff issued Staff Accounting Bulletin 118 ( SAB 118), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 addresses situations where accounting for certain income tax effects of the Ta x Act under ASC 740 may be incomplete upon issuance of an entity’s financial statements and provides a one-year measurement period from the enactment date to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the foll owing: Income tax effects of those aspects of the Tax Act for which accounting under ASC 740 is complete Provisional estimate of income tax effects of the Tax Act to the extent accounting is incomplete but a reasonable estimate is determinable If a prov isional estimate cannot be determined, ASC 740 should still be applied on the basis of tax law provisions that were in effect immediately before the enactment of the Tax Act. Consistent with current income tax accounting requirements, we have remeasured ou r deferred tax assets and liabilities with reference to the statutory income tax rate of 21 percent and taking into consideration other provisions of the Tax Act. As of December 31, 2017, we had not fully completed our accounting for the tax effects of th e Tax Act. Our provision for income taxes for the period ended December 31, 2017, is based in part on a reasonable estimate of the effects on existing deferred tax balances and of certain provisions of the Tax Act. To the extent a reasonable estimate of the impact of certain provisions was determinable, we recorded provisional estimates as a component of our provision for income taxes on continuing operations. To the extent a reasonable estimate of the impact of certain provisions was not determinable, we have not recorded any adjustments and have continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect before enactment of the Tax Act. The Tax Act includes provisions for Globa l Intangible Low-Taxed Income ( GILTI) u nder which taxes on foreign income are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries and for Base Erosion and Anti-Abuse Tax (BEAT) under which taxes are imposed on certain base eroding payment to affiliated fo reign companies. Consistent with accounting guidance, we will treat BEAT as an in period tax charge when incurred in future periods for which no deferred taxes need to be provided and have made an accounting policy election to treat GILTI taxes in a simil ar manner. Accordingly, no provision for income taxes related to GILTI or BEAT was recorded as of December 31, 2017. For the period ended December 31, 2017, we recognized a provisional estimate of income tax effects of the Tax Act of $ 6.7 billion, including a tax charge of $ 6.7 billion attributable to the reduction in the U.S. corporate income tax rate and tax benefit of $ 38 million related to the deemed repatriation tax. Tax effects for which a reasonable estimate can be determined Deemed Repatriation Tax The Tax Act requires companies to pay a one-time transition tax, net of tax credits related to applicable fo reign taxes paid, on previously untaxed current and accumulated earnings and profits (E&P) of certain of our foreign subsidiaries. In the determination of the deemed repatriation tax, we reviewed estimated post-1986 E&P of certain material relevant foreig n subsidiaries, and any related non-U.S. income tax paid on such earnings. Based on this analysis, we were able to determine a reasonable estimate and we have recorded a provisional estimate tax benefit of $ 38 million. While the IRS has issued some guidance on the calculation of the deemed repatriation tax, there are still certain aspects of the calculation that require further clarification. We are continuing to gather additional information to more precis ely compute the amount of deemed repatriation tax. Other Provisions The Tax Act modified computations of insurance reserves for both life and general insurance companies. For life insurance companies, tax reserves are now computed with reference to NAIC reserves. For general insurance companies, the Tax Act extends the discount period for certain long-tail lines of business from 10 years to 24 years and increases the discount rate, replacing the applicabl e federal rate for a higher-yield corporate bond rate, and eliminates the election allowing companies to use their historical loss payment patterns for loss reserve discounting. Adjustments related to the differences in insurance reserves balances compute d under the old tax law versus the Tax Act have to be taken into income over eight years by both life and general insurance companies. Accordingly, at December 31, 2017, these changes give rise to new deferred tax liabilities. We have recorded a provisio nal estimate of $ 1.9 billion with respect to such deferred tax liabilities. This increase in deferred tax liabilities is offset by an increase in the deferred tax asset related to insurance reserves a s a result of applying the new provisions of the Tax Act. Provisions Impacting Projections of Taxable Income and Valuation Allowance Considerations Certain provisions of the Tax Act impact our projections of future taxable income used in analyzing realiza bility of our U.S. tax attribute deferred tax asset. As discussed above, there are specific insurance industry provisions, including changes in computations of insurance reserves, amortization of specified policy acquisition expenses, and treatment of sep arate account dividends received deduction. Provisional estimates have been included in our future taxable income projections for these insurance industry specific provisions to reflect application of the new tax law. Because we have made provisional esti mates related to the impact of certain aspects of the Tax Act on our future taxable income, corresponding determination of the need for a valuation allowance is also provisional. Generally, the Tax Act provisions result in an increase in our taxable incom e and, thus, accelerate utilization of our tax attribute deferred tax asset. Accordingly, we do not currently anticipate that our reliance on provisional estimates would have a material impact on our determination of the realizability of our deferred tax assets. Tax effects for which no estimate can be determined Our accounting for the following elements of the Tax Act is incomplete and we continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect before enactment of t he Tax Act. The Tax Act may affect the results in certain investments and partnerships in which we are a non-controlling interest owner. The information needed to determine a provisional estimate is not currently available (such as for interest deduction limitations in those entities and the changed definition of a U.S. Shareholder). Accordingly, no provisional estimates were recorded. Due to minimal formal guidance issued from state and local jurisdictions, provisional estimates have not been recorded f or the impact of any state and local corporate income tax implications of the Tax Act. Guidance from state and local jurisdictions is expected during 2018 and the impact, if any, will be recorded at the appropriate time. EFFECTIVE TAX RATE The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred Years Ended December 31, (in millions) 2017 2016 2015 U.S. $ 1,940 $ 1,041 $ 1,950 Foreign (474) (1,115) 1,331 Total $ 1,466 $ (74) $ 3,281 The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations: Years Ended December 31, (in millions) 2017 2016 2015 Foreign and U.S. components of actual income tax expense: Foreign: Current $ 209 $ 436 $ 391 Deferred 25 (121) (95) U.S.: Current 427 140 429 Deferred 6,865 (270) 334 Total $ 7,526 $ 185 $ 1,059 Our a ctual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following: 2017 2016 2015 Pre-Tax Tax Percent of Pre-Tax Tax Percent of Tax Percent of Years Ended December 31, Income Expense/ Pre-Tax Income Expense/ Pre-Tax Pre-Tax Expense/ Pre-Tax (dollars in millions) (Loss) (Benefit) Income (Loss) (Loss) (Benefit) Income (Loss) Income (Benefit) Income U.S. federal income tax at statutory rate $ 1,476 $ 517 35.0 % $ (159) $ (56) 35.0 % $ 3,281 $ 1,148 35.0 % Adjustments: Tax exempt interest (111) (7.5) (178) 111.9 (195) (5.9) Uncertain tax positions 660 44.7 268 (168.6) 195 5.9 Reclassifications from accumulated other comprehensive income (184) (12.5) (132) 83.0 (127) (3.9) Dispositions of Subsidiaries 17 1.2 118 (74.2) - - Tax Attribute Restoration - - (164) 103.1 - - Non-controlling Interest (7) (0.5) (81) 50.9 - - Non-deductible transfer pricing charges 35 2.4 102 (64.2) 97 3.0 Dividends received deduction (90) (6.1) (75) 47.2 (72) (2.2) Effect of foreign operations 69 4.7 234 (147.2) (58) (1.8) Share-based compensation payments excess tax deduction (40) (2.7) - - - - State income taxes (9) (0.6) 23 (14.5) 34 1.0 Impact of Tax Act 6,687 453.0 - - - - Other (58) (3.9) 13 (8.2) (73) (2.2) Effect of discontinued operations 3 0.2 35 (22.0) - - Valuation allowance: Continuing operations 43 2.9 83 (52.2) 110 3.4 Consolidated total amounts 1,476 7,532 510.3 (159) 190 (119.5) 3,281 1,059 32.3 Amounts attributable to discontinued operations 10 6 60.0 (85) 5 (5.9) - - - Amounts attributable to continuing operations $ 1,466 $ 7,526 513.4 % $ (74) $ 185 (250.0) % $ 3,281 $ 1,059 32.3 % For the year ended December 31, 2017 , the effective tax rate on income from continuing operations was not meaningful. The effective tax rate differs from the 2017 statutory tax rate of 35 percent primarily due to tax charges of $ 6.7 b illion associated with the enactment of the Tax Act discussed above , $ 660 million of tax charges and related interest associated with increases in uncertain tax positions primarily related to cross border financing transaction s and other open tax issues, $ 69 million associated with the effect of foreign operations, and $ 35 million of non-deductible transfer pricing charges , partially offset by tax benefits of $ 201 million of tax exempt income, $ 184 million of reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities , and $ 40 million of excess tax deductions related to share based compensation payments recorded through the income s tatement in accordance with relevant accounting literature. Effect of foreign operations is primarily related to losses incurred in our European operations taxed at a statutory tax rate lower than 35 percent and other foreign taxes. For the year ended December 31, 2016, the effective tax rate on loss from continuing operations was not meaningful. The effective tax rate on loss from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax charges of $234 million associated with effect of foreign operations, $216 million of tax charges and related interest associated with increases in uncertain tax positions related to cross border financing transactions, $118 million related to disposition of subsidiaries, $102 million related to non-deductible transfer pricing charges, and $83 million related to increases in the deferred tax asset valuation allowances associated with U.S. federal and certain foreign jurisdictions, partially offset by tax benefits of $253 million of tax exempt income, $164 million associated with a portion of the U.S. Life Insurance c ompanies capital loss carryforwards previously treated as expired that was restored and utilized, $116 million related to the impact of an agreement reached with the Internal Revenue Service (IRS) related to certain tax issues under audit, and $132 million of reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities. Effect of foreign operations is primarily related to foreign exchange losses incurred by our foreign subsidiaries related to the weakening of the British pound following the Brexit vote taxed at a statutory tax rate lower than 35 percent. For the year ended December 31, 2015, the effective tax rate on income from continuing operations was 32.3 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits of $195 million associated with tax exempt interest income, $127 million related to reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities, $58 million associated with the effect of foreign operations, and $109 million related to the partial completion of the IRS examination covering tax year 2006, partially offset by $324 million of tax charges and related interest associated with increases in uncertain tax positions related to cross border financing transactions, and $110 million related to increases in the deferred tax asset valuation allowances associated with certain foreign jurisdictions. As a result of the Tax Act, the majority of accumulated foreign earnings that were previously un taxed will become subject to a one-time deemed repatriation tax. Going forward, certain foreign earnings of our foreign affiliates will be exempt from U . S . tax upon repatriation. Notwithstanding the changes, U . S . tax on foreign exchange gain or loss and certain non-U . S . withholding taxes will continue to be applicable upon future repatriations of foreign earnings. For the year ended December 31, 2017, our repatriation assumptions with respect to certain operations in Canada, South Africa, as well as European and Asia Pacific regions remain unchanged and related foreign earnings remain indefinitely reinvested. Due to a change in the legal entity ownership through a contribution of certain affiliates to AIG International Holdings GmbH, our repatriation assumptions related to certain operations in the Far East, Latin America, Bermuda and Middle East region have changed and related foreign earnings are now considered to be indefinitely reinvested. These earnings relate to ongoing operations and have been reinvested in active business operations. Deferred taxes have been provided on earnings of non-U.S. affiliates whose earnings are not indefinitely reinvested. The following table presents the components of the net deferred tax asset s (liabilities) : December 31, (in millions) 2017 2016 Deferred tax assets: Losses and tax credit carryforwards $ 11,931 $ 16,448 Basis differences on investments 2,133 4,985 Life policy reserves 1,996 3,040 Accruals not currently deductible, and other 532 1,128 Investments in foreign subsidiaries 159 103 Loss reserve discount 526 1,151 Loan loss and other reserves 34 39 Unearned premium reserve reduction 566 924 Fixed assets and intangible assets 442 478 Other 731 710 Employee benefits 601 1,171 Total deferred tax assets 19,651 30,177 Deferred tax liabilities: Deferred policy acquisition costs (2,313) (3,790) Unrealized gains related to available for sale debt securities (2,151) (2,844) Total deferred tax liabilities (4,464) (6,634) Net deferred tax assets before valuation allowance 15,187 23,543 Valuation allowance (1,374) (2,831) Net deferred tax assets (liabilities) $ 13,813 $ 20,712 The following table presents our U.S. consolidated income tax group tax losses and credits carryforwards as of December 31, 2017 . December 31, 2017 Tax Expiration (in millions) Gross Effected Periods Net operating loss carryforwards $ 35,592 $ 7,474 2028-2037 Capital loss carryforwards 305 64 2022 Foreign tax credit carryforwards 4,481 2018-2022 Other carryforwards 1,154 Various Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis 13,173 Unrecognized tax benefit (2,543) Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis * $ 10,630 * Includes other carryforwards, e.g. general business credits, of $ 118 million on a U.S. GAAP basis. We have U.S. federal consolidated net operating loss and tax credit carryforwards of approximately $ 10.6 billion. The carryforward periods for our foreign tax credits begin to expire in 201 9. As detailed in the Assessment of Deferred Tax Asset Valuation Allowance section of this footnote, we determined th at it is more likely than not that our U.S. federal consolidated tax attribute carryforwards will be realized prior to their expiration . Assessment of Deferred Tax Asset Valuation Allowance The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. Our framework for assessing the recoverability of the deferred tax asset requires us to consider all available evidence, including: the nature, freq uency, and amount of cumulative financial reporting income and losses in recent years; the sustainability of recent operating profitability of our subsidiaries; the predictability of future operating profitability of the character necessary to realize the net deferred tax asset; the carryforward period for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and prudent and feasible actions and tax planning strategies tha t 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 operat ing loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though the carr yforward period for the foreign tax credit is shorter than for the net operating loss. Our U.S. federal consolidated income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can be offs et by the net operating loss carryforwards, only a portion (no more than 35 percent) of the U.S. taxable income of our life companies can be offset by those net operating loss carryforwards. The remaining tax liability of our life companies can be offset by the foreign tax credit carryforwards. Accordingly, we utilize both the net operating loss and foreign tax credit carryforwards concurrently which enables us to realize our tax attributes prior to expiration. As of December 31, 2017 , based on all available evidence, it is more likely than not that the U.S. net operating loss and foreign tax credit carryforwards will be utilized prior to expiration and, thus, no valuation allowance has been established. Estimates of future taxable income, inclu ding income generated from prudent and feasible actions and tax planning strategies could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. For the year ended December 31, 2017 , recent changes in market conditions, including interest rate fluct uations, impacted the unrealized tax gains and losses in the U.S. life insurance companies ’ available for sale securities portfolio, resulting in a deferred tax liability related to net unrealized tax capital gains. As of June 30, 2017 , based on all available evidence, we concluded that the valuation allowance should be released. As a result, for the six-month period ended June 30, 2017 , we released $ 468 million of valuation allowance associate d with the unrealized tax losses in the U.S. life insurance companies ’ available for sale securities portfolio, all of which was allocated to other comprehensive income. As of December 31, 2017 , we continue to be in an overall unrealized ta x gain position with respect to the U.S. life insurance companies ’ available for sale securities portfolio and thus concluded no valuation allowance is necessary in the U.S. life insurance companies ’ available for sale securities portfolio. For the year en ded December 31, 2017 , recent changes in market conditions, including interest rate fluctuations, impacted the unrealized tax gains and losses in the U.S. n on- l ife c ompanies’ available for sale securities portfolio, resulting in a deferred tax l iability related to net unrealized tax capital gains. As of June 30, 2017 , based on all available evidence, we concluded that the valuation allowance should be released. As a result, for the six-month period ended June 30, 2017 , we re leased $ 260 million of valuation allowance associated with the unrealized tax losses in the U.S. n on- l ife c ompanies’ available for sale securities portfolio, all of which was allocated to other comprehensive inc ome. As of December 31, 2017 , we continue to be in an overall unrealized tax gain position with respect to the U.S. n on- l ife c ompanies’ available for sale securities portfolio and thus concluded no valuation allowance is necessary in the U. S. n on- l ife c ompanies’ available for sale securities portfolio. During the year ended December 31, 2017 , we recognized a net increase o f $ 43 million in our deferred tax asset valuation allow ance associated with certain foreign jurisdictions, primarily attributable to current year activity . During the year ended December 31, 2017 , we recognized a $ 26 million decrease in our def erred tax asset valuation allowance associated with certain state jurisdictions, primarily as a result of the beneficial impact of tax law changes enacted in the third quarter of 2017 . We also recognized a $ 634 million decrease in our deferred tax asset valuation allowance associated with certain state jurisdictions, primarily attributable to a corresponding reduction in state and local deferred tax assets. The following table presents the net deferr ed tax assets (liabilities) at December 31, 2017 and 2016 on a U.S. GAAP basis: December 31, (in millions) 2017 2016 Net U.S. consolidated return group deferred tax assets $ 15,603 $ 24,134 Net deferred tax assets (liabilities) in accumulated other comprehensive income (2,070) (2,384) Valuation allowance (86) (874) Subtotal 13,447 20,876 Net foreign, state and local deferred tax assets 1,874 2,413 Valuation allowance (1,288) (1,957) Subtotal 586 456 Subtotal - Net U.S., foreign, state and local deferred tax assets 14,033 21,332 Net foreign, state and local deferred tax liabilities (220) (620) Total AIG net deferred tax assets (liabilities) $ 13,813 $ 20,712 Deferred Tax Asset Valuation Allowance of U.S. Consolidated FEDERAL Income Tax Group At December 31, 2017 and 2016 , our U.S. consolidated income tax group had net deferred tax assets after valuation allowance of $ 13.4 billion and $ 20.9 billion, respectively. At December 31, 2017 and 2016 , our U.S. consolidated income tax group had valuation allowances of $ 86 million an d $ 874 million, respectively. Deferred Tax ASSET — Foreign, State and Local At December 31, 2017 and 2016 , we had net deferred tax assets (liabilities) of $ 366 million and $ (164) million, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. At December 31, 2017 and 2016 , we had deferred tax asset valuati on allowances of $ 1.3 billion and $ 2.0 billion, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. We maint ained these valuation allowances following our conclusion that we could not demonstrate that it was more likely than not that the related deferred tax assets will be realized. This was primarily due to factors such as cumulative losses in recent years and the inability to demonstrate profits within the specific jurisdictions over the relevant carryforward periods. Tax Examinations and Litigation We file a consolidated U.S. federal income tax return with our eligible U.S. subsidiaries. Income earned by sub sidiaries operating outside the U.S. is taxed, and income tax expense is recorded, based on applicable U.S. and foreign law. The statute of limitations for all tax years prior to 2000 has expired for our consolidated federal income tax return. We are curre ntly under examination for the tax years 2000 through 2010 . On March 20, 2008, we received a Statutory Notice of Deficiency (Notice) from the IRS for years 1997 to 1999. The Notice asserted that we owe additional taxes and penalties for these years primari ly due to the disallowance of foreign tax credits associated with cross-border financing transactions. The transactions that are the subject of the Notice extend beyond the period cove red by the Notice, and the IRS ha s administratively chall enged the later periods. The IRS has also administratively challenged other cross-border transactions in later years . We have paid the assessed tax plus interest and penalties for 1997 to 1999. On February 26, 2009, we filed a complaint in the United States District Cour t for the Southern District of New York (Southern District) seeking a refund of approximately $ 306 million in taxes, interest and pen alties paid with respect to the 1997 taxable year. We allege that the IRS improperly disallowed foreign tax credits and that our taxable income should be reduced as a result of the 2005 restatement of our consolidated financial statements. We also filed an administrative refund claim on September 9, 2010 for our 1998 and 1999 tax years. On August 1, 2012, we f iled 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 was denied on March 7, 2016. As a result, the ca se has been remanded back to the Southern District of New York for a jury trial. In January 2018, the parties reached non-binding agreements in principle on issues presented in the dispute and are currently reviewing the computations reflecting the settlem ent terms. The resolution is not final and is subject to various reviews. The litigation has been stayed pending the outcome of the review process. We can provide no assurance regarding the outcome of any such litigation or whether binding compromised sett lements with the parties will ultimately be reached. We currently believe that we have adequate reserves for the potential liabilities that may result from these matters. Accounting For Uncertainty in Income Taxes The following table presents a reconcilia tion of the beginning and ending balances of the total amounts of gross unrecognized tax benefits: Years Ended December 31, (in millions) 2017 2016 2015 Gross unrecognized tax benefits, beginning of year $ 4,530 $ 4,331 $ 4,395 Increases in tax positions for prior years 210 235 162 Decreases in tax positions for prior years (33) (39) (209) Increases in tax positions for current year - 3 - Lapse in statute of limitations - - (4) Settlements - - (13) Activity of discontinued operations - - - Gross unrecognized tax benefits, end of year $ 4,707 $ 4,530 $ 4,331 At December 31, 2017 , 2016 and 2015 , our unrecognized tax benefits, excluding interest and penalties, were $ 4.7 billion, $ 4.5 billion and $ 4.3 billion, respectively. The activity for the year includes increases for amounts associated with cross border financing transactions and the impact of settlement discussions with the IRS relat ed to certain other open tax issues unrelated to the cross border financing transactions. With respect to cross border financing transactions, the increase is the result of consideration of recent court decisions upholding the disallowance of foreign tax c redits claimed by other corporate entities not affiliated with AIG in addition to the agreement reached in the fourth quarter of 2017 by the parties in the cross border financing dispute to pursue a potential settlement . At December 31, 2017 , 2016 and 2015 , our unrecognized tax benefits related to tax positions that, if recognized, would not affect the effective tax rate because they relate to such factors as the timing, rather than the permissibility, of the deduction wer e $ 28 m illion, $ 66 m illion and $ 115 m illion, respectively. Accordingly, at December 31, 2017 , 2016 and 2015 , the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $ 4.7 billion, $ 4.4 billion and $ 4.2 billion, respectively. Interest and penalties related to unrecognized tax benefits are recog nized in income tax expense. At December 31, 2017 , 2016 , and 2015 , we had accrued liabilities of $ 2.0 billion, $ 1.2 billion, and $ 1.2 billion , respectively, fo r the payment of interest (net of the federal benefit) and penalties. For the years ended December 31, 2017 , 2016 , and 2015 , we accrued expense of $ 776 million, $ 26 million and $ 156 million, respectively, for the payment of interest and penalties. The current year activity is primarily related to a decrease in the expected federal benefit of interest due to the U.S. corporate tax rate reduction and to an increase in interest and penalties associated with cross border financing transactions. We believe it is reasonably possible that our unrecognized tax benefits could decrease with in the n ext 12 months by as much as $ 3.9 billion, principally as a result of potential resolutions or settlements of prior years’ tax items. The prior years’ tax items include unrecognized tax benefits related to the deductibility of certain expenses and matters related to cross border financing transactions. Listed below are the tax years that remain su bject to examination by major tax jurisdictions: At December 31, 2017 Open Tax Years Major Tax Jurisdiction United States 2000-2016 Australia 2013-2016 France 2015-2016 Japan 2011-2016 Korea 2012-2016 Singapore 2012-2016 United Kingdom 2015-2016 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 24 . Quarterly Financial Information (Unaudited) Consolidated Statements of Income (Loss) Three Months Ended March 31, June 30, September 30, December 31, (dollars in millions, except per share data) 2017 2016 2017 2016 2017 2016 2017 2016 Total revenues $ 12,632 $ 11,779 $ 12,502 $ 14,724 $ 11,751 $ 12,854 $ 12,635 $ 13,010 Income (loss) from continuing operations before income taxes * 1,727 (214) 1,667 2,858 (2,803) 737 875 (3,455) Income (loss) from discontinued operations, net of income taxes - (47) 8 (10) (1) 3 (3) (36) Net income (loss) 1,211 (203) 1,118 1,924 (1,713) 436 (6,672) (2,506) Net income (loss) from continuing operations attributable to noncontrolling interests 26 (20) (12) 11 26 (26) (12) 535 Net income (loss) attributable to AIG * $ 1,185 $ (183) $ 1,130 $ 1,913 $ (1,739) $ 462 $ (6,660) $ (3,041) Income (loss) per common share attributable to AIG: Basic: Income (loss) from continuing operations $ 1.21 $ (0.12) $ 1.21 $ 1.73 $ (1.91) $ 0.43 $ (7.33) $ (2.93) Income (loss) from discontinued operations $ - $ (0.04) $ 0.01 $ (0.01) $ - $ - $ - $ (0.03) Diluted: Income (loss) from continuing operations $ 1.18 $ (0.12) $ 1.18 $ 1.69 $ (1.91) $ 0.42 $ (7.33) $ (2.93) Income (loss) from discontinued operations $ - $ (0.04) $ 0.01 $ (0.01) $ - $ - $ - $ (0.03) Weighted average shares outstanding: Basic 980,777,243 1,156,548,459 925,751,084 1,113,587,927 908,667,044 1,071,295,892 908,115,499 1,023,886,592 Diluted 1,005,315,030 1,156,548,459 948,248,771 1,140,045,973 908,667,044 1,102,400,770 908,115,499 1,023,886,592 Noteworthy quarterly items - (income) expense: Other-than-temporary impairments 68 204 67 108 88 102 37 145 Net (gain) loss on sale of divested businesses 100 2 60 (225) 13 (128) (241) (194) Federal and foreign valuation allowance for deferred tax assets (13) (37) (8) 35 24 (2) 40 87 Net (gain) loss on extinguishment of debt (1) 83 (4) 7 1 (14) (1) (2) Prior year unfavorable (favorable) development 61 (66) 391 7 901 273 212 5,574 Restructuring and other costs 181 188 47 90 31 210 154 206 Impact of Tax Act - - - - - - 6,687 - * For the three months ended December 31, 2016, we recorded out of period adjustments related to prior periods that increased Net loss attributable to AIG by $154 million, increased AIG’s Loss from continuing operations before income taxes by $12 million and decreased adjusted pre-tax income by $1 million. The out of period adjustments are primarily related to income tax liabilities and ceded loss adjustment expenses. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the three-month periods ended September 30, 2016, June 30, 2016 and March 31, 2016 would have decreased by $65 million, increased by $66 million and increased by $19 million, respectively. |
INFORMATION PROVIDED IN CONNECT
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 12 Months Ended |
Dec. 31, 2017 | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 25 . Information Provided i n Connection w ith Outstanding Debt The following C ondensed C onsolidating F inancial S tatements reflect the results of AIG Life Holdings, Inc. (AIGLH), a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH. Condensed Consolidating Balance Sheets American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG December 31, 2017 Assets: Short-term investments $ 2,541 $ - $ 11,559 $ (3,714) $ 10,386 Other investments (a) 6,004 - 305,902 - 311,906 Total investments 8,545 - 317,461 (3,714) 322,292 Cash 3 20 2,339 - 2,362 Loans to subsidiaries (b) 35,004 - 517 (35,521) - Investment in consolidated subsidiaries (b) 40,135 30,359 - (70,494) - Other assets, including deferred income taxes 16,016 170 159,594 (2,133) 173,647 Assets held for sale - - - - - Total assets $ 99,703 $ 30,549 $ 479,911 $ (111,862) $ 498,301 Liabilities: Insurance liabilities $ - $ - $ 282,105 $ - $ 282,105 Long-term debt 21,557 642 9,441 - 31,640 Other liabilities, including intercompany balances (a) 12,458 143 112,275 (6,028) 118,848 Loans from subsidiaries (b) 517 - 35,004 (35,521) - Liabilities held for sale - - - - - Total liabilities 34,532 785 438,825 (41,549) 432,593 Total AIG shareholders’ equity 65,171 29,764 40,549 (70,313) 65,171 Non-redeemable noncontrolling interests - - 537 - 537 Total equity 65,171 29,764 41,086 (70,313) 65,708 Total liabilities and equity $ 99,703 $ 30,549 $ 479,911 $ (111,862) $ 498,301 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 Year Ended December 31, 2017 Revenues: Equity in earnings of consolidated subsidiaries * $ (149) $ 1,978 $ - $ (1,829) $ - Other income 891 - 48,802 (173) 49,520 Total revenues 742 1,978 48,802 (2,002) 49,520 Expenses: Interest expense 949 50 176 (7) 1,168 Loss on extinguishment of debt 2 - (7) - (5) Other expenses 952 2 46,116 (179) 46,891 Total expenses 1,903 52 46,285 (186) 48,054 Income (loss) from continuing operations before income tax expense (benefit) (1,161) 1,926 2,517 (1,816) 1,466 Income tax expense (benefit) 4,922 (3) 2,607 - 7,526 Income (loss) from continuing operations (6,083) 1,929 (90) (1,816) (6,060) Income (loss) from discontinued operations, net of income taxes (1) - 5 - 4 Net income (loss) (6,084) 1,929 (85) (1,816) (6,056) Less: Net income from continuing operations attributable to noncontrolling interests - - 28 - 28 Net income (loss) attributable to AIG $ (6,084) $ 1,929 $ (113) $ (1,816) $ (6,084) Year Ended December 31, 2016 Revenues: Equity in earnings of consolidated subsidiaries * $ (1,269) $ (197) $ - $ 1,466 $ - Other income 516 5 52,875 (1,029) 52,367 Total revenues (753) (192) 52,875 437 52,367 Expenses: Interest expense 988 51 227 (6) 1,260 Loss on extinguishment of debt 77 - (3) - 74 Other expenses 295 16 51,819 (1,023) 51,107 Total expenses 1,360 67 52,043 (1,029) 52,441 Income (loss) from continuing operations before income tax expense (benefit) (2,113) (259) 832 1,466 (74) Income tax expense (benefit) (1,301) (21) 1,507 - 185 Income (loss) from continuing operations (812) (238) (675) 1,466 (259) Loss from discontinued operations, net of income taxes (37) - (53) - (90) Net income (loss) (849) (238) (728) 1,466 (349) Less: Net income (loss) from continuing operations attributable to noncontrolling interests - - 500 - 500 Net income (loss) attributable to AIG $ (849) $ (238) $ (1,228) $ 1,466 $ (849) Year Ended December 31, 2015 Revenues: Equity in earnings of consolidated subsidiaries * $ 3,954 $ 1,936 $ - $ (5,890) $ - Other income 88 - 58,953 (714) 58,327 Total revenues 4,042 1,936 58,953 (6,604) 58,327 Expenses: Other interest expense 1,049 58 302 (128) 1,281 Loss on extinguishment of debt 703 - 46 7 756 Other expenses 1,178 44 52,374 (587) 53,009 Total expenses 2,930 102 52,722 (708) 55,046 Income (loss) from continuing operations before income tax expense (benefit) 1,112 1,834 6,231 (5,896) 3,281 Income tax expense (benefit) (1,086) (73) 2,218 - 1,059 Income (loss) from continuing operations 2,198 1,907 4,013 (5,896) 2,222 Income (loss) from discontinued operations, net of income taxes (2) - 2 - - Net income (loss) 2,196 1,907 4,015 (5,896) 2,222 Less: Net income from continuing operations attributable to noncontrolling interests - - 26 - 26 Net income (loss) attributable to AIG $ 2,196 $ 1,907 $ 3,989 $ (5,896) $ 2,196 * Eliminated in consolidation. Condensed Consolidating Statements of Comprehensive Income (Loss) American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2017 Net income (loss) $ (6,084) $ 1,929 $ (85) $ (1,816) $ (6,056) Other comprehensive income (loss) 2,235 7,851 17,857 (25,708) 2,235 Comprehensive income (loss) (3,849) 9,780 17,772 (27,524) (3,821) Total comprehensive income attributable to noncontrolling interests - - 28 - 28 Comprehensive income (loss) attributable to AIG $ (3,849) $ 9,780 $ 17,744 $ (27,524) $ (3,849) Year Ended December 31, 2016 Net income (loss) $ (849) $ (238) $ (728) $ 1,466 $ (349) Other comprehensive income (loss) 693 4,080 52,153 (56,233) 693 Comprehensive income (loss) (156) 3,842 51,425 (54,767) 344 Total comprehensive income attributable to noncontrolling interests - - 500 - 500 Comprehensive income (loss) attributable to AIG $ (156) $ 3,842 $ 50,925 $ (54,767) $ (156) Year Ended December 31, 2015 Net income (loss) $ 2,196 $ 1,907 $ 4,015 $ (5,896) $ 2,222 Other comprehensive income (loss) (8,080) 2,320 54,757 (57,083) (8,086) Comprehensive income (loss) (5,884) 4,227 58,772 (62,979) (5,864) Total comprehensive income attributable to noncontrolling interests - - 20 - 20 Comprehensive income (loss) attributable to AIG $ (5,884) $ 4,227 $ 58,752 $ (62,979) $ (5,884) Condensed Consoli dat ing Statements of Cash Flows American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2017 Net cash (used in) provided by operating activities $ 36 $ 1,413 $ (7,426) $ (2,608) $ (8,585) Cash flows from investing activities: Sales of investments 5,821 - 75,228 (3,758) 77,291 Sales of divested businesses, net 40 - 752 - 792 Purchase of investments (2,465) - (64,539) 3,758 (63,246) Loans to subsidiaries – net 199 - 63 (262) - Contributions from (to) subsidiaries - net 2,446 - - (2,446) - Net change in restricted cash - - (121) - (121) Net change in short-term investments 1,990 - 108 - 2,098 Other, net (183) (5) (1,955) - (2,143) Net cash (used in) provided by investing activities 7,848 (5) 9,536 (2,708) 14,671 Cash flows from financing activities: Issuance of long-term debt 1,505 - 1,851 - 3,356 Repayments of long-term debt (1,724) - (1,974) - (3,698) Purchase of common stock (6,275) - - - (6,275) Intercompany loans - net (63) - (199) 262 - Cash dividends paid (1,172) (1,422) (1,186) 2,608 (1,172) Other, net (154) - (200) 2,446 2,092 Net cash (used in) financing activities (7,883) (1,422) (1,708) 5,316 (5,697) Effect of exchange rate changes on cash - - (28) - (28) Change in cash 1 (14) 374 - 361 Cash at beginning of year 2 34 1,832 - 1,868 Change in cash of businesses held for sale - - 133 - 133 Cash at end of year $ 3 $ 20 $ 2,339 $ - $ 2,362 Year Ended December 31, 2016 Net cash (used in) provided by operating activities $ 2,112 $ 1,707 $ 2,515 $ (3,951) $ 2,383 Cash flows from investing activities: Sales of investments 5,769 - 81,560 (11,685) 75,644 Sales of divested businesses, net 2,160 - 649 - 2,809 Purchase of investments (1,002) - (80,668) 11,685 (69,985) Loans to subsidiaries – net 1,525 - (3) (1,522) - Contributions from (to) subsidiaries - net 1,637 - - (1,637) - Net change in restricted cash - - 385 - 385 Net change in short-term investments (789) - (2,300) - (3,089) Other, net (141) - (879) - (1,020) Net cash (used in) provided by investing activities 9,159 - (1,256) (3,159) 4,744 Cash flows from financing activities: Issuance of long-term debt 3,831 - 2,123 - 5,954 Repayments of long-term debt (1,996) (63) (2,023) - (4,082) Purchase of common stock (11,460) - - - (11,460) Intercompany loans - net 3 (3) (1,522) 1,522 - Cash dividends paid (1,372) (1,723) (2,228) 3,951 (1,372) Other, net (309) - 2,799 1,637 4,127 Net cash (used in) provided by financing activities (11,303) (1,789) (851) 7,110 (6,833) Effect of exchange rate changes on cash - - 52 - 52 Change in cash (32) (82) 460 - 346 Cash at beginning of year 34 116 1,479 - 1,629 Change in cash of businesses held for sale - - (107) - (107) Cash at end of year $ 2 $ 34 $ 1,832 $ - $ 1,868 Year Ended December 31, 2015 Net cash (used in) provided by operating activities $ 4,443 $ 2,314 $ 1,112 $ (4,992) $ 2,877 Cash flows from investing activities: Sales of investments 7,767 - 69,726 (4,877) 72,616 Purchase of investments (1,881) - (68,261) 4,877 (65,265) Loans to subsidiaries – net (83) - 367 (284) - Contributions to subsidiaries 565 - - (565) - Net change in restricted cash - - 1,457 - 1,457 Net change in short-term investments 2,300 - (1,137) - 1,163 Other, net (175) - (1,334) - (1,509) Net cash (used in) provided by investing activities 8,493 - 818 (849) 8,462 Cash flows from financing activities: Issuance of long-term debt 5,540 - 1,327 - 6,867 Repayments of long-term debt (6,504) (114) (3,187) - (9,805) Intercompany loans - net (201) 3 (86) 284 - Purchase of common stock (10,691) - - - (10,691) Cash dividends paid to shareholders (1,028) (2,178) (2,814) 4,992 (1,028) Other, net (44) - 2,707 565 3,228 Net cash (used in) provided by financing activities (12,928) (2,289) (2,053) 5,841 (11,429) Effect of exchange rate changes on cash - - (39) - (39) Change in cash 8 25 (162) - (129) Cash at beginning of year 26 91 1,641 - 1,758 Cash at end of year $ 34 $ 116 $ 1,479 $ - $ 1,629 Supplementary Disclosure of Condensed Consolidating Cash Flow Information American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Cash (paid) received during the year ended December 31, 2017 for: Interest: Third party $ (948) $ (48) $ (286) $ - $ (1,282) Intercompany - (1) 1 - - Taxes: Income tax authorities $ (329) $ - $ (215) $ - $ (544) Intercompany 614 - (614) - - Cash (paid) received during the year ended December 31, 2016 for: Interest: Third party $ (975) $ (52) $ (304) $ - $ (1,331) Intercompany 2 - (2) - - Taxes: Income tax authorities $ (15) $ - $ (478) $ - $ (493) Intercompany 479 - (479) - - Cash (paid) received during the year ended December 31, 2015 for: Interest: Third party * $ (1,030) $ (59) $ (279) $ - $ (1,368) Intercompany - - - - - Taxes: Income tax authorities $ (11) $ - $ (500) $ - $ (511) Intercompany 829 - (829) - - American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities: Years Ended December 31, (in millions) 2017 2016 2015 Intercompany non-cash financing and investing activities: Capital contributions $ 259 $ 3,245 $ 494 Dividends received in the form of securities 735 5,234 2,326 Return of capital 26 - - Fixed maturity securities received in exchange for equity securities - 440 - Non-cash financing/investing activities: Non-cash consideration received from sale of shares of AerCap - - 500 Non-cash consideration received from sale of United Guaranty - 1,101 - |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 26 . Subsequent Events DIVIDENDS DECLARED AND SHARE REPURCHASE AUTHORIZATION On February 8, 2018, our Board of Directors d eclared a cash dividend on AIG Common Stock of $0. 32 per share, pay able on March 29, 2018 to shareholders of record on March 15, 2018. ACQUISITION OF BUSINESS On January 21, 2018, we entered into an agreement to purchase Validus Holdings, Ltd. (Validus), a leading provider of reinsurance, primary insurance, and asset management services, for approximately $5.6 billion in c ash. The transaction is expected to close mid-2018 and is subject to customary closing conditions, including, among others, obtaining the relevant regulatory approvals (including the expiration or termination of any applicable waiting period under the Har t-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and receipt of the approval of the Bermuda Monetary Authority, the New Hampshire Department of Insurance, the Prudential Regulatory Authority, Lloyd’s, the Texas Department of Insurance and the Swiss Financial Market Supervisory Authority) and obtaining the approval of the shareholders of Validus. In connection with the transaction, the board of directors of Validus approved, and recommended that Validus’ shareholders approve, an amendment to V alidus’ bye-laws that would reduce the Validus shareholder vote required to approve a merger with another company (including the transaction) from the affirmative vote of three-fourths of those voting at a general meeting of the shareholders to the affirma tive vote of a majority of those voting at such general meeting (the Bye-Law Amendment). If the Bye-Law Amendment is approved by holders of a majority in voting power of the aggregate voting power of the common stock of Validus, Validus must then obtain the affirmative vote of a majority of its shareholders voting at a general meeting to approve and adopt the transaction. If the Bye-Law Amendment is not so approved, then Validus must obtain the affirmative vote of three-fourths of its shareholders voting at a general meeting to approve and adopt the transaction. REINSURANCE TRANSACTIONS In February 2018, we closed a series of affiliated reinsurance transactions impacting the Legacy Portfolio. These transactions were designed to consolidate the bulk of the Legacy Insurance Run-Off Lines into a single legal entity, DSA Reinsurance Company, Ltd. (DSA Re), a Bermuda domiciled composite reinsurer, 100 percent owned by AIG. The transactions include the cession of approximately $32 billion of reserves from the Legacy Life and Retirement Run-off Lines and approximately $5 billion of reserves from the Legacy General Insurance Run-off Lines relating to business written by multiple AIG legal entities. This represented over 80 percent of the insurance reserves in the Legacy Portfolio as of December 31, 2017. DSA Re will have approximately $40 billion of invested assets, managed by AIG Investments and will become AIG’s main run-off reinsurer with its own dedicated management team. Following the close of the DSA Re transactions, Eaglestone Reinsurance Company will continue to reinsure the AIG property casualty pool companies for their asbestos liabilities and benefit from the retroactive reinsurance agreement entered into with NICO in 2011. As part of the transaction, AIG Parent has provided DSA Re with a CMA that requires AIG Parent to restore capital of each of the long term business fund and general business accounts of DSA Re to a specified minimum enhanced capital ratio measured for each fund on a quarterly basis. We will maintain the CMA so long as we have more than 50 percent voting control of DSA Re. |
Schedule I Summary of Investmen
Schedule I Summary of Investments - Other than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Schedule I Summary of Investments - Other than Investments in Related Parties | |
Schedule I Summary of Investments - Other than Investments in Related Parties | Summary of Investments — Other than Investments in Related Parties Schedule I Amount at At December 31, 2017 which shown in (in millions) Cost (a) Fair Value the Balance Sheet Fixed maturities: U.S. government and government sponsored entities $ 5,334 $ 5,458 $ 5,458 Obligations of states, municipalities and political subdivisions 17,377 18,644 18,644 Non-U.S. governments 15,116 15,716 15,716 Public utilities 17,654 18,870 18,870 All other corporate debt securities 110,565 117,215 117,215 Mortgage-backed, asset-backed and collateralized 72,187 75,861 75,861 Total fixed maturity securities 238,233 251,764 251,764 Equity securities and mutual funds: Common stock: Public utilities 1 1 1 Banks, trust and insurance companies 924 1,126 1,126 Industrial, miscellaneous and all other 326 483 483 Total common stock 1,251 1,610 1,610 Preferred stock 504 533 533 Mutual funds 139 154 154 Total equity securities and mutual funds 1,894 2,297 2,297 Mortgage and other loans receivable, net of allowance 37,023 37,766 37,023 Other invested assets 20,682 20,824 20,822 Short-term investments, at cost (approximates fair value) 10,386 10,386 10,386 Derivative assets (b) 922 922 922 Total investments $ 309,140 $ 323,959 $ 323,214 (a) Original cost of equity securities and fixed maturities is reduced by other-than-temporary impairment charges, and, as to fixed maturit y securities , reduced by repayments and adjusted for amortization of premiums or accr etion of discounts. (b) The balance is reported in Other a ssets. |
Schedule II Condensed Financial
Schedule II Condensed Financial Information of Registrant - Parent Company Only | 12 Months Ended |
Dec. 31, 2017 | |
Schedule II Condensed Financial Information of Registrant - Parent Company Only | |
Schedule II Condensed Financial Information of Registrant - Parent Company Only | Condensed Financial Information of Registrant Balance Sheets — Parent Company Only Schedule II December 31, (in millions) 2017 2016 Assets: Short-term investments $ 2,541 $ 4,424 Other investments 6,004 7,154 Total investments 8,545 11,578 Cash 3 2 Loans to subsidiaries * 35,004 34,692 Due from affiliates - net * 1,585 3,460 Intercompany tax receivable * 3,058 5,129 Deferred income taxes 11,030 15,169 Investments in consolidated subsidiaries * 40,135 42,582 Other assets 343 341 Total assets $ 99,703 $ 112,953 Liabilities: Due to affiliate * $ 4,340 $ 6,083 Intercompany tax payable * 4,577 4,152 Deferred tax liabilities - - Notes and bonds payable 20,339 19,432 Junior subordinated debt 841 843 MIP notes payable 356 1,099 Series AIGFP matched notes and bonds payable 21 31 Loans from subsidiaries * 517 577 Other liabilities (includes intercompany derivative liabilities of $63 in 2017 and $419 in 2016) 3,541 4,436 Total liabilities 34,532 36,653 AIG Shareholders’ equity: Common stock 4,766 4,766 Treasury stock (47,595) (41,471) Additional paid-in capital 81,078 81,064 Retained earnings 21,457 28,711 Accumulated other comprehensive income 5,465 3,230 Total AIG shareholders’ equity 65,171 76,300 Total liabilities and equity $ 99,703 $ 112,953 * Eliminated in consolidation. See a ccompanying Notes to Condensed Financial Information of Registrant. Condensed Financial Information of Registrant (Continued) Statements of Income — Parent Company Only Schedule II Years Ended December 31, (in millions) 2017 2016 2015 Revenues: Equity in undistributed net income (loss) of consolidated subsidiaries (a) $ (2,375) $ (8,633) $ (2,929) Dividend income from consolidated subsidiaries (a) 2,226 7,364 6,883 Interest income (b) 656 411 342 Net realized capital gains (losses) 46 2 (587) Other income 189 103 333 Expenses: Interest expense 949 988 1,049 Net loss on extinguishment of debt 2 77 703 Net (gain) loss on sale of divested businesses (c) 30 (690) 11 Other expenses 922 985 1,167 Income (loss) from continuing operations before income tax expense (benefit) (1,161) (2,113) 1,112 Income tax expense (benefit) 4,922 (1,301) (1,086) Net income (loss) (6,083) (812) 2,198 Loss from discontinued operations (1) (37) (2) Net income (loss) attributable to AIG Parent Company $ (6,084) $ (849) $ 2,196 (a) Eliminated in consolidation. (b) Includes interest income on intercompany borrowings of $512 million, $294 million and $163 million on December 31, 2017, 2016 and 2015, respectively, eliminated in consolidation. (c) Primarily includes pre-tax gain of $697 million on the sale of United Guaranty on December 31, 2016. See accompanying Notes to Condensed Financial Information of Registrant. Condensed Financial Information of Registrant (Continued) Statements of Comprehensive Income — Parent Company Only Schedule II Years Ended December 31, (in millions) 2017 2016 2015 Net income $ (6,084) $ (849) $ 2,196 Other comprehensive income 2,235 693 (8,080) Total comprehensive loss attributable to AIG $ (3,849) $ (156) $ (5,884) See accompanying Notes to Condensed Financial Information of Registrant. Condensed Financial Information of Registrant (Continued) Statements of Cash Flows — Parent Company Only Schedule II Years Ended December 31, (in millions) 2017 2016 2015 Net cash provided by operating activities $ 36 $ 2,112 $ 4,443 Cash flows from investing activities: Sales and maturities of investments 5,714 5,598 7,609 Sales of divested businesses 40 2,160 - Purchase of investments (2,465) (1,002) (1,881) Net change in short-term investments 1,990 (789) 2,300 Contributions to subsidiaries - net 2,446 1,637 565 Mortgage and other loan receivables - originations and purchases - (85) - Payments received on mortgages and other loan receivables 107 171 158 Loans to subsidiaries - net 199 1,525 (83) Other, net (183) (56) (175) Net cash provided by investing activities 7,848 9,159 8,493 Cash flows from financing activities: Issuance of long-term debt 1,505 3,831 5,540 Repayment of long-term debt (1,724) (1,996) (6,504) Cash dividends paid (1,172) (1,372) (1,028) Loans from subsidiaries - net (63) 3 (201) Purchase of Common Stock (6,275) (11,460) (10,691) Other, net (154) (309) (44) Net cash used in financing activities (7,883) (11,303) (12,928) Change in cash 1 (32) 8 Cash at beginning of year 2 34 26 Cash at end of year $ 3 $ 2 $ 34 Supplementary disclosure of cash flow information: Years Ended December 31, (in millions) 2017 2016 2015 Cash (paid) received during the period for: Interest: Third party $ (948) $ (975) $ (1,030) Intercompany - 2 - Taxes: Income tax authorities (329) (15) (11) Intercompany 614 479 829 Intercompany non-cash financing and investing activities: Capital contributions 259 3,245 494 Return of capital 26 - - Dividends received in the form of securities 735 5,234 2,326 Fixed maturity securities received in exchange for equity securities - 440 - Non-cash financing/investing activities Non-cash consideration received from sale of shares of AerCap - - 500 Non-cash consideration received from sale of United Guaranty - 1,101 - See accompanying Notes to Condensed Financial Information of Registrant. Notes to Condensed Financial Information of Registrant American International Group, Inc.’s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant’s 2017 Annual Report on Form 10-K for the year ended December 31, 2017 (Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 16 , 2018. The Registrant includes in its Statement of Income dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly - owned subsidiaries. Certain prior period amounts have been reclassified to conform to the current period presentation. The five-year debt maturity schedule is incorporated by reference from Note 15 to Consolidated Financial Statements. The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant a nd its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due from affiliates in the accompanying Condensed Balance Sheets. Income taxes in the accompanying Condensed Balance Sheets are composed of the Registrant’s current and deferred tax assets, the consolidated group’s current income tax receivable and deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated income tax group. For additional information see Note 23 to the Consolidated Financial Statements. The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards are recorded by th e Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries. |
Schedule III Supplementary Insu
Schedule III Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2017 | |
Schedule III Supplementary Insurance Information | |
Schedule III Supplementary Insurance Information | Supplementary Insurance Information Schedule III At December 31, 2017 and 2016 Liability for Unpaid Losses and Loss Deferred Adjustment Policy Policy Expenses, and Acquisition Future Policy Unearned Contract Segment (in millions) Costs Benefits Premiums Claims 2017 General Insurance companies $ 2,587 $ 73,530 $ 18,795 $ - Life and Retirement companies 8,407 44,615 - 851 Other (a) - 5,680 235 9 $ 10,994 $ 123,825 $ 19,030 $ 860 2016 General Insurance companies $ 2,563 $ 71,926 $ 19,348 $ - Life and Retirement companies 8,466 41,383 - 836 Other (a) 13 5,972 286 11 $ 11,042 $ 119,281 $ 19,634 $ 847 For the years ended December 31, 2017, 2016 and 2015 Losses Amortization Premiums and Loss of Deferred and Net Expenses Policy Other Net Policy Investment Incurred, Acquisition Operating Premiums Segment (in millions) Fees Income Benefits Costs Expenses Written (b) 2017 General Insurance $ 26,026 $ 3,668 $ 21,642 $ 3,765 $ 5,100 $ 25,438 Life and Retirement 6,844 7,816 8,607 743 2,296 - Other Operations (a) 712 (81) 1,076 (296) - 314 Legacy Operations 727 2,776 2,239 76 - 4 $ 34,309 $ 14,179 $ 33,564 $ 4,288 $ 7,396 $ 25,756 2016 General Insurance $ 29,586 $ 3,554 $ 25,103 $ 4,121 $ 5,967 $ 28,393 Life and Retirement 4,878 7,622 6,945 613 2,700 - Other Operations (a) 1,845 (24) 743 (321) - 819 Legacy Operations 816 2,913 3,351 108 - 21 $ 37,125 $ 14,065 $ 36,142 $ 4,521 $ 8,667 $ 29,233 2015 General Insurance $ 30,922 $ 3,746 $ 22,873 $ 4,319 $ 6,848 $ 32,199 Life and Retirement 5,677 7,541 7,745 794 3,607 - Other Operations (a) 1,641 (162) 854 21 - 668 Legacy Operations 1,170 2,928 3,604 102 - 199 $ 39,410 $ 14,053 $ 35,076 $ 5,236 $ 10,455 $ 33,066 (a) Includes consolidation and elimination entries. (b) Balances reflect the segment changes discussed in Note 3 – Segment Information to the Consolidated Financial Statements. |
Schedule IV Reinsurance
Schedule IV Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Schedule IV Reinsurance | |
Schedule IV Reinsurance | Reinsurance Schedule IV At December 31, 2017, 2016 and 2015 and for the years then ended Percent of Ceded to Assumed Amount Gross Other from Other Assumed (in millions) Amount Companies Companies Net Amount to Net 2017 Long-duration insurance in force $ 1,061,095 $ 202,402 $ 321 $ 859,014 - % Premiums: General Insurance companies $ 30,205 $ 7,533 $ 3,084 $ 25,756 12.0 % Life and Retirement companies 5,053 809 285 4,529 6.3 Other - - - - - Total $ 35,258 $ 8,342 $ 3,369 $ 30,285 11.1 % 2016 Long-duration insurance in force $ 1,025,653 $ 174,363 $ 339 $ 851,629 - % Premiums: General Insurance companies $ 33,970 $ 7,561 $ 2,824 $ 29,233 9.7 % Life and Retirement companies 4,609 789 123 3,943 3.1 Other - - - - - Total $ 38,579 $ 8,350 $ 2,947 $ 33,176 8.9 % 2015 Long-duration insurance in force $ 1,051,571 $ 177,025 $ 372 $ 874,918 - % Premiums: General Insurance companies $ 37,698 $ 7,604 $ 2,972 $ 33,066 9.0 % Life and Retirement companies 5,233 756 7 4,484 0.2 Other - - - - - Total $ 42,931 $ 8,360 $ 2,979 $ 37,550 7.9 % |
Schedule V Valuation and Qualif
Schedule V Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule V Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Schedule V For the years ended December 31, 2017, 2016 and 2015 Additions Reclassified Balance, Charged to to Assets of Beginning Costs and Businesses Divested Other Balance, (in millions) of year Expenses Charge Offs Held for Sale Businesses Changes * End of year 2017 Allowance for mortgage and other loans receivable $ 297 $ 49 $ (25) $ - $ - $ 1 $ 322 Allowance for premiums and insurances balances receivable 262 36 (58) - (8) 4 236 Allowance for reinsurance assets 207 33 (50) - - (3) 187 Federal and foreign valuation allowance for deferred tax assets 2,831 43 - - - (1,500) 1,374 2016 Allowance for mortgage and other loans receivable $ 308 $ (7) $ (15) $ - $ - $ 11 $ 297 Allowance for premiums and insurances balances receivable 333 26 (88) (2) (7) - 262 Allowance for reinsurance assets 272 (23) (34) (8) - - 207 Federal and foreign valuation allowance for deferred tax assets 3,012 83 - - - (264) 2,831 2015 Allowance for mortgage and other loans receivable $ 271 $ 58 $ (29) $ - $ 3 $ 5 $ 308 Allowance for premiums and insurances balances receivable 431 35 (120) - - (13) 333 Allowance for reinsurance assets 258 90 (67) - - (9) 272 Federal and foreign valuation allowance for deferred tax assets 1,739 110 - - - 1,163 3,012 * Includes recoveries of amounts previously charged off and reclassifications to/from other accounts. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
BASIS OF PRESENTATION | |
Use of Estimates | Use of Estimates The preparation of fina ncial 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 conside red our critical accounting estimates and are related to the determination of: liability for unpaid losses and loss adjustment expenses (loss reserves); reinsurance assets; valuation of future policy benefit liabilities and timing and extent of loss recognition; valuation of liabilities for guaranteed benefit features of variable annuity products; estimated gross profits to value deferred 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; allowances for loan losses; liability for legal contingencies; fair val ue measurements of certain financial assets and liabilities; and income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize th e net deferred tax asset and provisional estimates associated with the Tax Act. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs f rom the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected. |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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 business 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 classified as held-for-sale. At December 31, 2017 , we had no businesses classified as held-for-sale. At December 31, 2016 , 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 and certain related affiliates to Arch. This transaction closed on December 31, 2016 and we received proceeds of approximately $3.3 billion, consis ting of $2.2 billion of cash, and approximately $1.1 billion of newly issued Arch convertible non-voting common-equivalent preferred stock. We also received $261 million in pre-closing dividends from United Guaranty in the fourth quarter of 2016. However, due to pending regulatory approvals, United Guaranty Asia was not included in the December 31, 2016 closing and $40 million of cash consideration was retained by Arch. The sale of United Guaranty Asia was completed on July 1, 2017 and we received the $40 million cash proceeds. 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 s ubsidiary operations in Argentina, Chile, Colombia, Uruguay, Venezuela and Turkey. Fairfax will also acquire renewal rights for the portfolios of local business written by our operations in Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovaki a, and assume certain of our operating assets and employees. Total cash consideration to us is expected to be approximately $234 million. The transaction is closing on a country-by-country basis as the regulatory approvals are obtained. In the second quar ter of 2017, the sale of operations in Turkey as well as the renewal rights in Bulgaria, the Czech Republic, Hungary, Poland and Slovakia were completed, which resulted in total cash proceeds of $48 million. In the third quarter of 2017, the sale of the op erations in Colombia, Chile and Argentina were completed, which resulted in cash proceeds of $168 million. Substantially all of the operations and renewal rights that we agreed to sell Fairfax were sold by December 31, 2017. AIG Fuji Life Insurance On Nov ember 14, 2016, we entered into an agreement to sell Fuji Life to FWD Group, the insurance arm of Pacific Century Group. Total cash consideration to us was approximately $333 million. The sale resulted in a pr e- ta x loss of $ 591 m i ll i o n. The sale of Fuji Li fe was completed on April 30, 2017. |
Investments | Short-term investments consist of interest -bearing cash equivalents, time deposits, securities purchased under agreements to resell, and investments, such as commercial paper, with origina l maturities within one year from the date of purchase. Fixed Maturity and Equity Securities Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or are measured at fair value at our election. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2017 or 2016 . Fixed maturity and equity securities classified as available for sale are carried at fair value. Unrealized gains and losses from available for sale investments in fixed maturity and equity securities are reported as a separ ate component of Accumulated other comprehensive income, net of deferred policy acquisition costs and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity and equity securities measured at fair value at our election are reflected in Net investment income (for insurance subsidiaries) or Other income (for Other Operations ). Investments in fixed maturity and equity securities are recorded on a trade-date basis. Premiums and discounts arising from the purc hase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain RMBS, CMBS and CDO/ABS, (collectively, structured securities), rec ognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updat ed prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that a re not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For purchased credit impaired (PCI) securities, at acquisition, the difference between the undiscounted ex pected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into net investment income over the securities’ remaining lives on a n effective level -yield basis. Subsequently, effecti ve yields recognized on PCI securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising d ue to reasons other than interest rate changes. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, and other investment partnerships for which we have elected th e fair value option are reported at fair value with changes in fair value recognized in Net investment income with the exception of investments of AIG’s Other Operations, for which such changes are reported in Other income. Other investments in hedge fund s, private equity funds and other investment partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influence over the respective partnerships are reported at fair value with changes in fair va lue recognized as a component of Accumulated other comprehensive income. These investments are subject to other-than-temporary impairment evaluations (see discussion below on evaluating equity investments for other-than-temporary impairment) . The gross unr ealized loss recorded in Accumulated other comprehensive income on such investments was $ 45 million and $ 32 million at December 31, 2017 and 2016 , respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in continuous unrealized loss positions for less than 12 months. Other Invested Assets – Equity Method Investments We account for hedge funds, private equity funds, affor dable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income with the exception of investments of AIG’s Other Operations, for which such changes are reported in Other income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of eac h of these investments, which is one to three months prior to the end of our reporting period. The financial statements of these investees are generally audited annually. Other Investments Also included in Other invested assets are real estate held for investment and investments in aircraft equipment held in a consolidated trust. These investments are reported at cost, less depreciation and are s ubject to impairment review, as discussed below. Investments in Life Settlement s Investments in life settlements are accounted for under the investment method. Under the investment method, we recognize our initial investment in life settlements at the tran saction price plus all initial direct external costs. Continuing costs to keep the policy in force, primarily life insurance premiums, increase the carrying amount of the investment. We recognize income on individual investments in life settlements when th e insured dies, at an amount equal to the excess of the investment proceeds over the carrying amount of the investment at that time. These investments are subject to impairment review, as discussed below. N et Investment Income Net investment income represents income primarily from the following sources: Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. Dividend income from common and preferred stock s . Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. Earnings from alternative investments. The difference between the carrying amount of an investment in life settlements and the life insurance proceeds of the underlying life insurance policy reco rded in income upon the death of the insured. Net Realized Capital Gains and Losses Net realized capital gains and losses are determined by specific identification. The net realized capital gains and losses are generated primarily from the following sources: Sales or full redemptions of available for sale fixed maturity securities , available for sale equity securities , real estate and other alternative investments . Reductions to the amortized cost basis of available for sale fixed maturity securities , available for sale equity securities and certain other invested assets for other-than-temporary impairments. Impairments on investments in life settlements. Changes in fair value of derivatives except for (1) those derivatives at AIGFP and (2) those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses). Exchange gains an d losses resulting from foreign currency transactions. Evaluating Investments for Other-Than-Temporary Impairments Fixed Maturity Securities If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amort ized cost, an other-than-temporary impairment has occurred and the amortized cost is written down to current fa ir value, with a corresponding charge to realized capital losses . When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a credit impairment has occurred, the amortized cost is writte n down to the estimated recoverable value with a corresponding charge to realized capital losses . The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management . The difference between fair value and amortized cost that is not related to a credit impairment is presented in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income). When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers historic al performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: Current delinquency rates; Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Expected prepayment speeds. For corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers the fair value as the recoverable value when available information does not indicate that another value is more relevant or reliable. When m anagement identifies information that supports a recoverable value other than the fair value, the determination of a recoverable value considers scenarios specific to the issuer and the security, and may be based upon estimates of outcomes of corporate res tructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. We consider severe price declines in our assessment of potential credit impairm ents. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. In periods subsequent to the recognition of an other-than-temporary impairment charge for a vailable for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and th e expected undiscounted recoverable value over the remaining expected holding perio d of the security. Credit Impairments The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: Years Ended December 31, (in millions) 2017 2016 2015 Balance, beginning of year $ 1,098 $ 1,747 $ 2,659 Increases due to: Credit impairments on new securities subject to impairment losses 122 204 111 Additional credit impairments on previously impaired securities 74 212 109 Reductions due to: Credit impaired securities fully disposed of for which there was no prior intent or requirement to sell (99) (296) (399) Credit impaired securities for which there is a current intent or anticipated requirement to sell - - 2 Accretion on securities previously impaired due to credit * (669) (767) (735) Divested businesses - (2) - Balance, end of year $ 526 $ 1,098 $ 1,747 * Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time. Equity Securities We evaluate our available for sale equity securities for impairment by considering such securities as candidates for other-than-temporary impairment if they meet any of the following criteria: The security has traded at a significant (25 percent or more) discount to cost for an extended period of time (nine consecutive months or longer); A discrete credit event has occurred resulting in (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy la ws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or We have concluded that we may not realize a full recovery on our investment, regardless of the occurrence of one of the foregoing events. The determination that an equity security is other-than-te mporarily impaired requires the judgment of management and consideration of the fundamental condition of the issuer, its near-term prospects and all the relevant facts and circumstances. In addition to the above criteria , all equity securities that have be en in a continuous decline in value below cost over 12 months are impaired. We also consider circumstances of a rapid and severe market valuation decline (50 percent or more) discount to cost, in which we could not reasonably assert that the impairment per iod would be temporary (severity losses). Other Invested Assets Our equity and cost method investments in private equity funds, hedge funds and other entities are evaluated for impairment similar to the evaluation of equity securities for impairments as di scussed above. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments an d specific inherent risks. Such risks may evolve based on the nature of the underlying investments. Our investments in life settlements are monitored for impairment on a contract-by-contract basis quarterly. An investment in life settlements is considered impaired if the undiscounted cash flows resulting from the expected proceeds would not be sufficient to recover our estimated future carrying amount, which is the current carrying amount for the investment in life settlements plus anticipated undiscounted future premiums and other capitalizable future costs, if any. Impaired investments in life settlements are written down to their estimated fair value which is determined on a discounted cash flow basis, incorporating current market mortality assumptions a nd market yields or by repricing to the anticipated sale price as appropriate. In general, fair value estimates for the investments in life settlements are calculated using cash flows based on medical underwriting ratings of the policies from a third-party underwriter, applied to an industry mortality table. Our mortality assumptions are based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. M ortality improvement factors are applied to these assump tions based on our view of future mortality improvements likely to apply to the U.S. insured lives population. Our mortality assumptions coupled with the mortality improvement rates are used in our estimate of future net cash flows from the investments in life settlements . We sold the remaining portion of our life settlements portfolio in 2017. Our investments in aircraft assets and real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compa re expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. Purchased Credit Impaired (PCI) Securities We purchas e certain RMBS securities that ha ve experienced deterioration in credit quality since their issuance. We determine whether it is probable at acquisition that we w ill not collect all contractually required payments for these PCI securities, includ ing both principal and interest. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security i s determined based on our best estimate using key a ssumptions, 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 accretabl e yield, which is accreted into N et investment income over their remaining lives on a n effective yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows rep resents 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 f urther below. On a quarterly basis, the undiscounted expected future cash flows associated with PCI securities are re-evaluated based on updates to key assumptions. Declines in undiscounted expected future cash flows due to further credit deterioration as well as changes in the expected timing of the cash flows can result in the recognition of an other -than-temporary impairment charge, as PCI securities are subject to our policy for evaluating investments for other-than-temporary impairment. Changes to und iscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI securities will change the accretable yield prospectively. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as adjustments to the accretable yield. Secured Financing and Similar Arrangements We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value. We also enter into agreements in which securities are purchased by us under agreements to resell (reverse repurchase agreements), which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms. These agreements are recorded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. In all reverse repurchase transactions, we take possession of or obtain a security interest in th e related securities, and we have the right to sell or repledge this collateral received. Mortgage and other loans receivable include commercial mortgages , residential mortgages , life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages , residential mortgages , commercial loans, and other loans and notes receivable are carried at unpaid pr incipal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loan s is accrued as earned. Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method. Life insurance policy loa ns are carried at unpaid principal balances. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the p olicy. M ethodology Used to Estimate the Allowance for Credit Losses Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determined using the present value of cash flows or the loan’s observable marke t price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on stati stical models primarily driven by past due status, debt servic e coverage, loan-to-value ratio, property type and location, loan term, profile of the borrower and of the major property tenants, and loan seasoning. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the ca rrying amount of the loan is charged off against the allowance. Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is ge nerally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is repaid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period. A significant majority of commercial mortgage s in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to t he non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. |
Reinsurance | In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our general insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will b e recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBN R. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred, ceded unearned premiums and ceded future policy benefits fo r life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for doubtfu l accounts requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for doubtfu l accounts on reinsurance assets was $ 187 million and $ 207 million at December 31, 2017 and 2016 , respectively. Changes in the allowance for doubtful accounts on reinsurance asse ts are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income. Short-Duration Reinsurance Short-duration reinsurance is effected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned o ver the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premium s. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under t he contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. Retroactive reinsurance agreements are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of past insurable events. For these agreements, the excess of t he amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves. The amount of the deferral is recalculated each period based on loss payments and updated estimates. If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the agreement is recognized in income immediately. Ceded loss reserves under retroactive agreements were $13.4 billion and $1.7 billion, and the deferred gain liability was $1.6 billion and $384 million, as of December 31, 2017 and 2016, respectively. The effect on income from amortization of the deferred gain was $316 million, $30 million and $8 million for the years ended December 31, 2017, 2016, and 2015, respectively. Long-Duration Reinsurance Long-duration reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are earned over the contract period in proportion to the protection provided. Amounts recoverable from reinsurers on long-duration contracts are estimated in a m anner consistent with the assumptions used for the underlying policy benefits and are presented as a component of Reinsurance assets. |
Variable Interest Entity | A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below. We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to co nsolidate a VIE, we evaluate the design of the VIE as well as the related risks the entity was designed to expose the variable interest holders to. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that m ost significantly affect the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depend s on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE. |
Deferred Policy Acquisition Costs | Deferred p olicy acquisition costs (DAC) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. S uch deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analy zed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. We also defer a portion of employe e total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force c ontract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates. Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recov erability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impa irment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred, unamortized DAC and maintenance c osts. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income, the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge. Long-duration insurance contracts : Policy acquisition costs for participating life, traditional l ife and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is is sued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviatio n to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying amount of future policy benefit liabilities, net of DAC, and what the future policy benefit liabilities, net of DAC, would be when applying updated current assumptions. When we determine a loss recognition event has occurred, we first reduce any DAC related to that block of business through amortization of acquisition expense, and after DAC is depleted, we record additional liabilities through a charge to Policyholder benefits and losses incurred. Groupings for loss recognition testing are consistent with our manner of acquiring, servicing and measuring the profitability of the business and applied by product groupings. We perform separate loss recognition tests for traditional life products, payout annuities and long-term care products. Once loss recognition has been recorded for a block of business, the old assumption set is replaced and the assumption set used for the loss recognition would then be subject to the lock-in principle. Investment-oriented contracts: Policy acquisition costs and policy issuance costs related to universal life and investment-type products ( collectively, in vestment - oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. Estimated gross profits include net in vestment income and spreads , net r ealized capital gains and losses, fees, surrender charges, expenses, and mortality gains and losses. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If estimated gross profits change significantly , DAC is recalculated using the new assumptions , and a ny resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decrease in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current period. U pdating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for prof itability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. To estimate future estimated gross profits for variable annuity products , a long-term annual asset growth assumption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” method ology whereby short-term asset growth above or below long-term annual rate assumptions impact s the growth assumption applied to the five- year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to maintain ou r long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption , as evidenced by growth assumptions in the five -year reversion to the mean period falling below a certain rate (floor) or above a certain rate (cap) for a sustain ed period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five -year reversion to the mean perio d as well as the long-term annual growth assumption applied to subsequent periods. Shadow DAC and Shadow Loss Recognition: DAC related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity and equity securities available for sale on estimated gross profits, with related changes recognized through Other comprehensive income (shadow DAC). The adjustment is made at each balance sheet date, as if the securities had been sold at their stated agg regate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the l iabilities are in a net unrealized gain position at the balance sheet date, loss recognition testi ng assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognition tests is reco gnized as a reduction in accumulated other comprehensive income (shadow loss recognition). Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabi lities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income. Internal Replacements of Long-dur ation and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the electi on of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and related actuarial ba lances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances ar e charged or credited to income, and any new deferrable costs associated with the rep lacement contract are deferred. Value of Business Acquired (VOBA ) is determined at the time of acquisition and is reported in the Consolidated Balance Sheet s with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of the business in a manner similar to that for DAC based on the assumptions at purchase. For investmen t - oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity and equity securities available for sale in a manner similar to DAC . |
Derivatives and Hedge Accounting | We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium - and long -term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and options) are used to economically mitigate risk associated with non -U.S. dollar denominated debt, net capital exposures, and foreign currency transactions. Equity derivatives are used to mitig ate financial risk embedded in certain insurance liabilities. We use credit derivatives to manage our credit exposures. The derivatives are effective economic hedges of the exposures that they are meant to offset. In addition to hedging activities, we also enter into derivative instruments with respect to investment operations, which may include, among other things, CDSs and purchases of investments with embedded derivatives, such as equity -linked notes and convertible bonds . Interest rate, currency, equity and commodity swa ps, credit contracts , swaptions, options and forward transactions are accounted for as derivatives , recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. Aggregate asset or liability positions are netted on the Consolidated Balance Sheet s only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with tr ansactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset. D erivatives, with the exception of embedded derivatives, are reported at fair value in the Consolidated Balance Sheets in Other assets and Other liabiliti es . Embedded derivatives are genera lly presented with the host contract in the Consolidated Balance Sheets . A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted fo r according to the accounting guidance applicable f or that instrument. For additional information on embedded deri vatives see Notes 5 and 14 herein. |
Liability for unpaid claims and claims adjustment expense | 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 and loss adjustment expenses (IBNR), 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. |
Future policy benefits for life and accident and health insurance contracts and policyholder contract deposits | Pol icyholder Contract Deposits The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited at rates ranging from 0.2 percent to 9.0 pe rcent at December 31, 2017 , less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues, because they are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenues. In addition to liabilities for universal life, fixed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreeme nts and GICs, p olicyholder contract deposits also include our liability for (a) certain guarantee d benefits and indexed features accounted for as embedded derivatives at fair value, (b) annuities issued in a structured settlement arrangement with no life c ontingency and (c) certain contracts we have elected to account for at fair value. For additional information on guaranteed benefits accounted for as embedded derivatives see Note 14 herein. For universal life policies with secondary guarant ees, we recognize certain liabilities in addition to policyholder account balances. For universal life policies with secondary guarantees, as well as other universal life policies for which profits followed by losses are expected at contract inception, a liability is recognized based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contract, divided by (b) the present value of total expected assessments over the life of the contrac t. For universal life policies without secondary guarantees, for which profits followed by losses are first expected after contract inception, we establish a liability, in addition to policyholder account balances, so that expected future losses are recog nized in proportion to the emergence of profits in the earlier (profitable) years. Universal life account balances as well as these additional liabilities related to universal life products are reported within Policyholder contract deposits in the Consoli dated Balance Sheet. These additional liabilities are also adjusted to reflect the ef fect of unrealized gains or losses on fixed maturity and equity securities available for sale on accumulated assessments, with related changes recognized through Other com prehensive income. Future Policy Benefits Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements w hereby a claimant has agreed to settle a general insurance claim in exchange for fixed payments over a fixed determinable period of time with a life contingency feature. In addition, reserves for contracts in loss recognition are adjusted to reflect the ef fect of unrealized gains on fixed maturity and equity securities available for sale, with related changes recognized through Other comprehensive income. Future policy benefits also include certain guaranteed benefits of variable annuity products that are not considered embedded derivatives, primarily guaranteed minimum death benefits. For additional information on guaranteed minimum death benefits see Note 14 . The liability for long-duration future policy benefits has been established inclu ding assumptions for interest rates which vary by year of issuance and product, and range from approximately 0.1 percent to 14 percent. Mortality and surrender rate assumptions are generally based on actual experience when the liability is established. Other Policyholder Funds Other policyholder funds include unearned revenue reserves (URR). URR consist of front-end loads on investment-oriented contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. URR for investment-oriented contracts are generally deferred and amortized, with interest, in relation to the incidence of estimated gross profits (EGPs) to be realized over the estimated lives of the contracts and are subject t o the same adjustments due to changes in the assumptions underlying EGPs as DAC. Amortization of URR is recorded in Policy fees. Similar to Shadow DAC, URR related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity and equi ty securities available for sale on estimated gross profits , with related changes recognized through Other comprehensive income (shadow URR). Other policyholder funds also include provisions for future dividends to parti cipating policyholders, accrued in accordance with all applicable regulatory or contractual provisions. Participating life business represented approximately 1.9 percent of gross insurance in force at December 31, 2017 and 1.8 percent of gross domestic premiums and other considerations in 2017 . The amount of annual dividends to be paid is approved locally by the boards of directors of the Life and Retirement companies. Provisions for futur e dividend payments are computed by jurisdiction, reflecting local regulations. The portions of current and prior net income and of current unrealized appreciation of investments that can inure to our benefit are restricted in some cases by the insurance c ontracts and by the local insurance regulations of the jurisdictions in which the policies are in force. Certain products are subject to experience adjustments. These include group life and group medical products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as revenue with the unearned portions of the premiums rec orded as liabilities in Other policyholder funds. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guidance. |
Debt | Our long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts , hedge accounting valuation adjustments and fair value adjustments, when applicable. |
Noncontrolling Interests | Non-redeemable noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. |
Earnings Per Share | The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The d iluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits. |
Income Taxes | Assessment of Deferred Tax Asset Valuation Allowance The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. Our framework for assessing the recoverability of the deferred tax asset requires us to consider all available evidence, including: the nature, freq uency, and amount of cumulative financial reporting income and losses in recent years; the sustainability of recent operating profitability of our subsidiaries; the predictability of future operating profitability of the character necessary to realize the net deferred tax asset; the carryforward period for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and prudent and feasible actions and tax planning strategies tha t 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 operat ing loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though the carr yforward period for the foreign tax credit is shorter than for the net operating loss. Our U.S. federal consolidated income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can be offs et by the net operating loss carryforwards, only a portion (no more than 35 percent) of the U.S. taxable income of our life companies can be offset by those net operating loss carryforwards. The remaining tax liability of our life companies can be offset by the foreign tax credit carryforwards. Accordingly, we utilize both the net operating loss and foreign tax credit carryforwards concurrently which enables us to realize our tax attributes prior to expiration. As of December 31, 2017 , based on all available evidence, it is more likely than not that the U.S. net operating loss and foreign tax credit carryforwards will be utilized prior to expiration and, thus, no valuation allowance has been established. Estimates of future taxable income, inclu ding income generated from prudent and feasible actions and tax planning strategies could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. |
Revenues and expenses | Premiums for short-duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and e arned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired ter ms of coverage. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract. As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflec ting the inception dates of the underlying policies throughout the year. Reinsurance premiums ceded under prospective reinsurance agreements are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. Prem iums for long-duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. Policy fees represent fees recognized from universal life and investment-type produc ts consisting of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. Policy fees are recognized as revenues in the period in which they are assessed against policyholders , unless the fees are designed to compensate AIG for services to be provided in the future. Fees deferred as unearned revenue are amortized in relation to the incidence of expected gross profits to be realized over the estimated lives of the contracts, si milar to DAC. Other income includes advisory fee income from the Life and Retirement broker dealer business, as well as legal recoveries of $ 27 million, $ 44 million and $ 94 million from leg acy crisis and other matters in 2017 , 2016 and 2015 , respectively. Other income from our Other Operations category consists of the following: Changes in fair value relating to financial assets and liabilities for which the fa ir value option has been elected. Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, a s applicable. Dividend income from common and preferred stock and earnings distributions from other investments. Changes in the fair value of other securities sold but not yet purchased, futures, hybrid financial instruments, securities purchased under agr eements to resell, and securities sold under agreements to repurchase. Income earned on real estate based investments and related realized gains and losses from sales, property level impairments and financing costs. Exchange gains and losses resulting from foreign currency transactions. Earnings from private equity funds and hedge fund investments accounted for under the equity method. Changes in the fair value of derivatives at AIG Financial Products Corp. and related subsidiaries (collectively AIGFP). |
Cash | Cas h represents cash on hand and non-interest-bearing demand deposits. |
Premiums and other receivables - net | Premiums and other receivables – net of allowance include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the Direct Investment book (DIB) and Global Capital Markets (GCM) and other receivables. Trade receivables for GCM include cash collateral posted to derivative counterparties that is not eligible to be netted against derivative liabilities. The allowance for doubtful accounts on premiums and other receivables was $ 236 million and $ 279 million at December 31, 2017 and 2016 , respectively. |
Other assets | Other assets consist of sales inducement assets, prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, restricted cash and derivative assets. We offer sales inducements which include enhanced crediting rates or bonus payments to co ntract holders (bonus interest) on certain annuity and investment contract products. Sales inducements provided to the contract holder are recognized in Policyholder contract deposits in the Consolidated Balance Sheets. Such amounts are deferred and amorti zed over the life of the contract using the same methodology and assumptions used to amortize DAC (see Note 9 herein) . To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must als o demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest, and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $ 738 million and $ 808 million at December 31, 2017 and 2016 , respectively. The amortization expense associated with these assets is reported within Intere st credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $ 94 million, $ 77 million and $ 88 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and equipment). Expenditures for maintenance and repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically a ssess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized usi ng the straight-line method over a period generally not exceeding five years. Real estate, fixed assets and other long-lived assets are assessed for impairment when impairment indicators exist. |
Goodwill | Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment annually or more frequently if circumstances indicate an impairment may have occurred. At December 31, 2017, as a result of the 2017 segment changes, goodwill is reported within our General Insurance business – North America and International operating segments, our Life and Retirement business – Life Insurance operating segment and our Other Operations and Legacy Portfolio operating segments. When a business is transferred from one reporting unit to another, as occurred as part of the 2017 segment changes, goodwill from the original ope rating segment is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. As a result, at December 31, 2017, $1.3 billion of goodwill was re-allocated to the General Insurance – North America and General Insurance – International operating segments based on their respective fair values. The impairment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a deter mination that it is more likely than not that the fair value of an operating segment is less than its carrying amount. If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more l ikely than not that the fair value of an operating segment is less than its carrying amount, the impairment assessment involves a two-step process in which a quantitative assessment for potential impairment is performed. If the qualitative test is not per formed or if the test indicates a potential impairment is present, we estimate the fair value of each operating segment and compare the estimated fair value with the carrying amount of the operating segment, including allocated goodwill. The estimate of an operating segment’s fair value involves management judgment and is based on one or a combination of approaches including discounted expected future cash flows, market -based earnings multiples of the unit’s peer companies, external appraisals or, in the ca se of reporting units being considered for sale, third -party indications of fair value, if available. We consider one or more of these estimates when determining the fair value of an operating segment to be used in the impairment test. If the estimated fai r value of an operating segment exceeds its carrying amount, goodwill is not impaired. If the carrying value of an operating segment exceeds its estimated fair value, goodwill associated with that operating segment potentially is impaired. The amount of i mpairment, if any, is measured as the excess of the carrying value of the goodwill over the implied fair value of the goodwill. The implied fair value of the goodwill is measured as the excess of the fair value of the operating segment over the amounts tha t would be assigned to the operating segment’s assets and liabilities in a hypothetical business combination. An impairment charge is recognized in earnings to the extent of the excess of carrying value over fair value. Goodwill was not impaired at Dece mber 31, 2017 based on the results of the goodwill impairment test. The following table presents the changes in goodwill by operating segment: North Life Other Legacy (in millions) America International Insurance Operations Portfolio Total Balance at January 1, 2015: Goodwill - gross $ 1,834 $ 2,887 $ 21 $ 7 $ 182 $ 4,931 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill 570 751 21 7 105 1,454 Increase (decrease) due to: Acquisition 50 46 55 20 37 208 Other - (50) 1 - - (49) Balance at December 31, 2015: Goodwill - gross 1,884 2,883 77 27 219 5,090 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill 620 747 77 27 142 1,613 Increase (decrease) due to: Dispositions (6) (6) - - - (12) Other - (70) - - (3) (73) Balance at December 31, 2016: Goodwill - gross 1,878 2,807 77 27 216 5,005 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill 614 671 77 27 139 1,528 Increase (decrease) due to: Acquisition - - - 4 - 4 Dispositions (10) (7) (6) - (2) (25) Other - 74 13 - - 87 Balance at December 31, 2017: Goodwill - gross 1,868 2,874 84 31 214 5,071 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill $ 604 $ 738 $ 84 $ 31 $ 137 $ 1,594 |
Separate accounts | Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the account assets. Separate accounts may also include deposits for funds held under st able value wrap funding agreements, although the majority of stable value wrap sales are measured based on the notional amount included in assets under management and do not include the receipt of funds. For a more detailed discussion of separate accou nts see Note 14 herein . |
Long-Duration Contracts | We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder and the separate account meets additional accounting criteria to qualify for separate account treatment. The assets supporting the variable portion of variable annuity and variable universal life contracts that qualify for separate account treatment are carried at fair value and reported as Separate account assets, with an equivalent summary total reported as Separate account liabilities. Policy values for variable products and investment contracts are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units in the separate accounts, plus any liabilities for guaranteed minimum death benefits or guaranteed minimum withdrawal benefits included in Future policy benefits or Policyholder contract deposits, respectively. Amounts assessed against the contract holders for mortality, administrative and other servic es are included in revenue. Net investment income, net investment gains and losses, changes in fair value of assets, and policyholder account deposits and withdrawals related to separate accounts are excluded from the Consolidated Statements of Income, Com prehensive Income (Loss) and Cash Flows. |
Other liabilities | Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase, securities sold but not yet purchased, derivative liabilities and deferred gains on retroactive reinsurance agreements . We have entered into certain insurance a nd reinsurance contracts, primarily in our General Insurance companies, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on such contracts, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the Consolidated Balance Sheets. Net proceeds of these deposits are invested and generate Net investment income. As amounts are paid, consistent with the underlying contracts, the deposit liab ility is reduced. Also included in Other liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets. Securities sold but not yet purchased represent sales of securiti es not owned at the time of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Fair values of securities sold but not yet purchased are based on current market prices. |
Foreign currency | Foreign currency: Fin ancial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respectiv e subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. Income statement accounts expressed in functional currencies a re translated using average exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a consolidated e ntity are remeasured into that entity’s functional currency resulting in exchange gains or losses recorded in income. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are reco rded in income. |
Future Application of Accounting Standards | Future Application of Accounting Standards Revenue Recognition In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other activities. We will adopt this standard using the modified retrospective approach on its required effective date of January 1, 2018. Our analysis of revenues indicates that substantially all of our revenues are from sources excluded from the scope of the standard. For those revenue sources within the scope of the standard, there are no m aterial changes in the timing or measurement of revenues based upon the guidance. As substantially all of our revenue sources are excluded from the scope of the standard, the adoption of the standard will not have a material effect on our reported consoli dated financial condition, results of operations, cash flows or required disclosures. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued an accounting standard that will require equity investments tha t do not follow the equity method of accounting or are not subject to consolidation to be measured 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 comprehensive 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. We will adopt t his standard on its effective date of January 1, 2018 using the modified retrospective approach. Based on our review, substantially all of our assets and liabilities are not within the scope of the standard. The adoption of the standard will not have a ma terial effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Leases In February 2016, the FASB issued an accounting standard that will require lessees with lease terms of more than 12 months to recognize a right of use asset and a corresponding lease liability on their balance sheets. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. We plan to adopt the standard on its effective date of January 1, 2019 using a modified retrospective approach upon adoption. We are currently quantifying the expected recognition on our balance sheet for a right to use asset and a lease liability as required by the standard. We do not expect the impact of the standard to have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Financial Instruments - Credit Losses In June 2016, the FASB issued an accoun ting 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 with a new “current expected credit loss model” that generally will result in earlier recognition of credit losses. The standard will apply to financial assets subject to credit losses, including loans measured at amortized cost, reinsurance receivables and certain off-balance sheet credit expos ures. Additionally, the impairment of available-for-sale debt securities, including purchased credit deteriorated securities, are subject to the new guidance and will be measured in a similar manner, except that losses will be recognized as allowances rat her than reductions in the amortized cost of the securities. The standard will also 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 co ntinuing to develop our implementation plan to adopt the standard and are assessing the impact of the standard on our reported consolidated financial condition, results of operations, cash flows and required disclosures. While we expect an increase in our allowances for credit losses for the financial instruments within scope of the standard, given the objective of the new standard, the amount of any change will be dependent on our portfolios’ composition and quality at the adoption date as well as economi c 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 flows. The amendments provide clarity on the treatment of eight specifically defined types of cash inflows and outflows. We will adopt this standard retrospectively on its effective date of January 1, 2018 . The standard addresses presentation in the statement of cash flows only and will have no effect on our reported consolidated financial condition, results of operations or required disclosures. Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB iss ued 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. We will adopt the s tandard on its effective date of January 1, 2018 using a modified retrospective approach. The adoption of this standard will not have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclos ures. 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 restricted cash or restricted cash equivalents in the statement of cash flows. We will adopt the standard retrospectively on its effective date of January 1, 2018. The standard addresse s presentation of restricted cash in the Statement of Cash Flows only and will have no effect on our reported consolidated financial condition, results of operations or required disclosures. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued an accounting standard that eliminates the requirement to calculate the implied fair value of goodwill, through a hypothetical purchase price allocation, to measure a goodwill impairment charge. Instead, entities will record an impairment char ge based on the excess of a reporting unit’s carrying amount over its fair value not to exceed the total amount of goodwill allocated to that reporting unit. An entity should also consider income tax effects from tax deductible goodwill on the carrying am ount of the reporting unit when measuring the goodwill impairment loss, if applicable. The standard is effective on January 1, 2020, with early adoption permitted. We are evaluating the timing of our adoption. Any impact of the standard will be dependent on the market conditions of the reporting units at the time of adoption. Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued an accounting standard that clarifies the scope of the derecognition guidanc e for the sale, transfer and derecognition of non-financial assets to noncustomers that aligns with the new revenue recognition principles. The standard also adds new accounting for partial sales of nonfinancial assets (including in substance real estate) that requires an entity to derecognize a nonfinancial asset when it 1) ceases to have a controlling financial interest in the legal entity that holds the asset based on the consolidation model and 2) transfers control of the asset based on the revenue rec ognition model. We will adopt t his standard on its effective date of January 1, 2018 under the modified retrospective approach. Based on our evaluatio n, we do not expect the standard to have a material impact on our reported consolidated financial conditio n, result s of operations, cash flows or required disclosures. 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 compone nt 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 presented in the income statement. The amendments also allow only the service cost component to be eligible for capitalization when applicable. We will adopt this standard on its effective date of January 1, 2018. The standard primarily addres ses the presentation of the service cost component of net periodic benefit costs in the income statement. AIG’s U.S. pension plans are frozen and no longer accrue benefits, which are reflected as service costs. Therefore, the standard will have no material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued an accounting standard that shortens the amortiza tion period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. The standard does not require an accounting change for securities held at a discount, which continue to be amortized to maturity. We plan to adopt the standard retrospectively on its effective date, January 1, 2019. We do not expect the standard to have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclo sures. Modification of Share-Based Payment Awards In May 2017, the FASB issued an accounting standard that provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. We will prospectively adopt this standard on its effective date of January 1, 2018 and do not expect the standard to have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Derivatives and Hedging In August 2017, the FASB issued an accounting standard that improves and expands hedge accounting for both financial and commodity risks. The provisions of the amendment are intended to better align the accounting with an entit y’s risk management activities, enhance the transparency on how the economic results are presented in the financial statements and the footnote, and simplify the application of hedge accounting treatment. The standard is effective on January 1, 2019, with early adoption permitted. We are evaluating the timing of adoption and are assessing the impact of the standard on our reported consolidated financial condition, results of operations, cash flows and required disclosures. Reclassification of Certain Tax E ffects from Accumulated Other Comprehensive Income In February 2018, the FASB issued an accounting standard that allows the optional reclassification of stranded tax effects within accumulated other comprehensive income to retained earnings that arise due to the enactment of the Tax Cuts and Jobs Act of 2017 (Tax Act). The amount of the reclassification would reflect the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of enactment of the Tax Act and other income tax effects of the Tax Act on items remaining in accumulated other comprehensive income. We plan to early adopt the standard using a retrospective approach effective January 1, 2018. For more i nformation on the adoption of the Tax Act, see Note 23. |
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 F inancial 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-designat ion 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 consolid ated financial condition, results of operations 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 tha t 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 conside r whether (1) the amount paid upon settlement 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 exercisable. 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 wh ich the investment had been held. 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. Interest Held through Related Parties that are under 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 ne w 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 characteristics 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, r esults of operations or cash flows. 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 evaluating 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 transfer red 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. We adopted the standard on October 1, 2017. The impact of the standa rd is primarily related to our investments in real estate. As a result of the adoption, we anticipate that future acquisitions of certain real estate investments will no longer meet the definition of a business and will be treated as asset acquisitions. As a result, no goodwill would be recognized from these investments and certain costs can be capitalized as part of asset acquisitions. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operat ions or cash flows. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION | |
Schedule of continuing operations by reportable segment | Net Adjusted Total Investment Interest Amortization Pre-Tax (in millions) Revenues Income Expense of DAC Income (Loss) 2017 General Insurance North America $ 14,600 $ 3,145 $ 31 $ 1,305 $ (232) International 15,094 523 (9) 2,460 (581) Total General Insurance 29,694 3,668 22 3,765 (813) Life and Retirement Individual Retirement 5,514 4,013 58 415 2,289 Group Retirement 2,848 2,164 32 84 1,004 Life Insurance 4,056 1,044 13 239 274 Institutional Markets 3,168 595 6 5 264 Total Life and Retirement 15,586 7,816 109 743 3,831 Other Operations 1,413 53 968 (9) (1,405) Legacy Portfolio 4,391 2,776 122 76 1,470 AIG Consolidation and elimination (308) (280) (53) 4 75 Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 50,776 $ 14,033 $ 1,168 $ 4,579 $ 3,158 Reconciling Items from adjusted pre-tax income to pre-tax income (loss): Changes in fair value of securities used to hedge guaranteed living benefits 146 146 - - 146 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - (291) 303 Other income (expense) - net (49) - - - - Gain on extinguishment of debt - - - - 5 Net realized capital losses (1,380) - - - (1,380) Income from divested businesses - - - - 68 Non-operating litigation reserves and settlements 27 - - - 129 (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - (303) Net loss reserve discount (benefit) charge - - - - (187) Pension expense related to a one-time lump sum payment to former employees - - - - (60) Restructuring and other costs - - - - (413) Revenues and Pre-tax income $ 49,520 $ 14,179 $ 1,168 $ 4,288 $ 1,466 2016 General Insurance North America $ 17,005 $ 3,041 $ 28 $ 1,444 $ (2,399) International 16,135 513 - 2,677 348 Total General Insurance 33,140 3,554 28 4,121 (2,051) Life and Retirement Individual Retirement 5,758 3,878 50 298 2,269 Group Retirement 2,769 2,146 26 129 931 Life Insurance 3,818 1,035 12 182 (37) Institutional Markets 1,433 563 4 4 265 Total Life and Retirement 13,778 7,622 92 613 3,428 Other Operations 2,517 207 978 72 (1,011) Legacy Portfolio 5,250 2,913 282 108 1,007 AIG Consolidation and elimination (494) (351) (120) (117) 42 Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 54,191 $ 13,945 $ 1,260 $ 4,797 $ 1,415 Reconciling Items from adjusted pre-tax income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 120 120 - - 120 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - (276) 195 Other income (expense) - net (44) - - - - Loss on extinguishment of debt - - - - (74) Net realized capital losses (1,944) - - - (1,944) Loss from divested businesses - - - - 545 Non-operating litigation reserves and settlements 44 - - - 41 (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - 42 Net loss reserve discount (benefit) charge - - - - 427 Pension expense related to a one-time lump sum payment to former employees - - - - (147) Restructuring and other costs - - - - (694) Revenues and Pre-tax income $ 52,367 $ 14,065 $ 1,260 $ 4,521 $ (74) 2015 General Insurance North America $ 18,482 $ 3,196 $ 13 $ 1,699 $ 558 International 16,186 550 - 2,620 70 Total General Insurance 34,668 3,746 13 4,319 628 Life and Retirement Individual Retirement 6,450 3,805 27 431 1,812 Group Retirement 2,834 2,192 15 50 1,100 Life Insurance 3,771 1,034 7 311 (51) Institutional Markets 2,267 510 3 2 263 Total Life and Retirement 15,322 7,541 52 794 3,124 Other Operations 2,326 196 1,027 47 (825) Legacy Portfolio 5,771 2,928 292 102 1,133 AIG Consolidation and elimination (496) (315) (103) (26) (76) Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 57,591 $ 14,096 $ 1,281 $ 5,236 $ 3,984 Reconciling Items from adjusted pre-tax income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits (43) (43) - - (43) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - - (15) Other income (expense) - net (43) - - - - Loss on extinguishment of debt - - - - (756) Net realized capital gains 776 - - - 776 Loss from divested businesses (48) - - - (59) Non-operating litigation reserves and settlements 94 - - - 82 (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - (263) Net loss reserve discount (benefit) charge - - - - 71 Restructuring and other costs - - - - (496) Revenues and Pre-tax income $ 58,327 $ 14,053 $ 1,281 $ 5,236 $ 3,281 |
Schedule of year-end identifiable assets and capital expenditures by reportable segment | Year-End Identifiable Assets Capital Expenditures (in millions) 2017 2016 2017 2016 General Insurance companies $ 114,841 $ 118,287 $ 239 $ 685 Life and Retirement companies 289,457 269,813 88 85 Other 105,425 122,016 156 349 AIG Consolidation and Elimination (11,422) (11,852) - - Total Assets $ 498,301 $ 498,264 $ 483 $ 1,119 |
Schedule of entity's consolidated operations and long-lived assets by major geographic area | Real Estate and Other Fixed Assets, Total Revenues * Net of Accumulated Depreciation (in millions) 2017 2016 2015 2017 2016 2015 North America $ 34,149 $ 36,871 $ 41,680 $ 1,630 $ 1,326 $ 1,819 International 15,371 15,496 16,647 892 1,334 1,316 Consolidated $ 49,520 $ 52,367 $ 58,327 $ 2,522 $ 2,660 $ 3,135 * Revenues are generally reported according to the geographic location of the reporting unit . International revenues consists of revenues from our General Insurance International operating segment. |
HELD-FOR-SALE CLASSIFICATION (T
HELD-FOR-SALE CLASSIFICATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
HELD-FOR-SALE CLASSIFICATION | |
Summary of assets and liabilities held for sale | December 31, (in millions) 2016 Assets: Fixed maturity securities $ 6,045 Equity securities 149 Mortgage and other loans receivable, net 137 Other invested assets 2 Short-term investments 130 Cash 133 Accrued investment income 21 Premiums and other receivables, net of allowance 351 Reinsurance assets, net of allowance 8 Deferred policy acquisition costs 471 Other assets 273 Assets of businesses held for sale 7,720 Less: Loss Accrual (521) Total assets held for sale $ 7,199 Liabilities: Liability for unpaid losses and loss adjustment expenses $ 402 Unearned premiums 297 Future policy benefits for life and accident and health insurance contracts 4,579 Other policyholder funds 378 Long-term debt - Other liabilities 450 Total liabilities held for sale $ 6,106 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS | |
Assets and liabilities measured at fair value on a recurring basis | December 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 $ 201 $ 2,455 $ - $ - $ - $ 2,656 Obligations of states, municipalities and political subdivisions - 16,240 2,404 - - 18,644 Non-U.S. governments 20 15,631 8 - - 15,659 Corporate debt - 133,003 1,173 - - 134,176 RMBS - 21,098 16,136 - - 37,234 CMBS - 13,217 624 - - 13,841 CDO/ABS - 8,131 8,651 - - 16,782 Total bonds available for sale 221 209,775 28,996 - - 238,992 Other bond securities: U.S. government and government sponsored entities 238 2,564 - - - 2,802 Obligations of states, municipalities and political subdivisions - - - - - - Non-U.S. governments - 57 - - - 57 Corporate debt - 1,891 18 - - 1,909 RMBS - 421 1,464 - - 1,885 CMBS - 485 74 - - 559 CDO/ABS - 604 4,956 - - 5,560 Total other bond securities 238 6,022 6,512 - - 12,772 Equity securities available for sale: Common stock 1,061 - - - - 1,061 Preferred stock 18 515 - - - 533 Mutual funds 110 4 - - - 114 Total equity securities available for sale 1,189 519 - - - 1,708 Other equity securities 589 - - - - 589 Mortgage and other loans receivable - - 5 - - 5 Other invested assets (a) - 1 250 - - 251 Derivative assets: Interest rate contracts 1 2,170 - - - 2,171 Foreign exchange contracts - 827 4 - - 831 Equity contracts 188 252 82 - - 522 Credit contracts - - 1 - - 1 Other contracts - - 20 - - 20 Counterparty netting and cash collateral - - - (1,464) (1,159) (2,623) Total derivative assets 189 3,249 107 (1,464) (1,159) 922 Short-term investments 2,078 537 - - - 2,615 Separate account assets 87,141 5,657 - - - 92,798 Total $ 91,645 $ 225,760 $ 35,870 $ (1,464) $ (1,159) $ 350,652 Liabilities: Policyholder contract deposits $ - $ 14 $ 4,136 $ - $ - $ 4,150 Other policyholder funds - - - - - - Derivative liabilities: Interest rate contracts 2 2,176 22 - - 2,200 Foreign exchange contracts - 1,241 4 - - 1,245 Equity contracts 2 19 - - - 21 Credit contracts - 14 263 - - 277 Other contracts - - 5 - - 5 Counterparty netting and cash collateral - - - (1,464) (1,249) (2,713) Total derivative liabilities 4 3,450 294 (1,464) (1,249) 1,035 Long-term debt - 2,888 - - - 2,888 Other liabilities 46 43 - - - 89 Total $ 50 $ 6,395 $ 4,430 $ (1,464) $ (1,249) $ 8,162 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 Other liabilities - - - - - - Total $ 17 $ 7,787 $ 3,489 $ (1,265) $ (1,521) $ 8,507 (a) Excludes investments that are measured at fair value using the net asset value ( NAV ) per share (or its equivalent), which totaled $ 6.0 billion and $ 6.7 billion as of December 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 Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year December 31, 2017 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,040 $ 5 $ 167 $ 216 $ 8 $ (32) $ - $ - $ 2,404 $ - Non-U.S. governments 17 (9) 9 (9) - - - - 8 - Corporate debt 1,133 (3) 20 (259) 886 (604) - - 1,173 - RMBS 16,906 1,071 942 (2,763) 19 (39) - - 16,136 - CMBS 2,040 35 11 (748) 20 (734) - - 624 - CDO/ABS 7,835 (19) 155 743 - (63) - - 8,651 - Total bonds available for sale 29,971 1,080 1,304 (2,820) 933 (1,472) - - 28,996 - Other bond securities: Corporate debt 17 3 - 10 - (12) - - 18 1 RMBS 1,605 191 - (313) 14 (33) - - 1,464 113 CMBS 155 4 - 24 9 (118) - - 74 5 CDO/ABS 5,703 841 - (1,582) - (6) - - 4,956 362 Total other bond securities 7,480 1,039 - (1,861) 23 (169) - - 6,512 481 Equity securities available for sale: Common stock - - - 1 - (1) - - - - Total equity securities available for sale - - - 1 - (1) - - - - Other equity securities - - - - - - - - - - Mortgage and other loans receivable 11 - - (6) - - - - 5 - Other invested assets 204 14 (6) 39 - (1) - - 250 6 Total $ 37,666 $ 2,133 $ 1,298 $ (4,647) $ 956 $ (1,643) $ - $ - $ 35,763 $ 487 Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year Liabilities: Policyholder contract deposits $ 3,033 $ 807 $ - $ 296 $ - $ - $ - $ - $ 4,136 $ (499) Derivative liabilities, net: Interest rate contracts 38 (5) - (11) - - - - 22 5 Foreign exchange contracts 11 (2) - (9) - - - - - 3 Equity contracts (58) (41) - 17 - - - - (82) 35 Credit contracts 329 (62) - (5) - - - - 262 61 Other contracts (11) (74) - 73 (3) - - - (15) 77 Total derivative liabilities, net (a) 309 (184) - 65 (3) - - - 187 181 Long-term debt (b) 71 16 - (87) - - - - - - Total $ 3,413 $ 639 $ - $ 274 $ (3) $ - $ - $ - $ 4,323 $ (318) Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year December 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,124 $ 5 $ - $ 61 $ 2 $ (152) $ - $ - $ 2,040 $ - Non-U.S. governments 32 (3) (12) 7 1 (5) - (3) 17 - Corporate debt 1,370 (13) (42) (111) 920 (977) (14) - 1,133 - RMBS 16,537 970 (24) (878) 330 (29) - - 16,906 - CMBS 2,585 72 (132) (323) 23 (185) - - 2,040 - CDO/ABS 6,169 34 (111) 1,720 23 - - - 7,835 - Total bonds available for sale 28,817 1,065 (321) 476 1,299 (1,348) (14) (3) 29,971 - Other bond securities: Corporate debt 17 - - - - - - - 17 - RMBS 1,581 43 - (1) - (18) - - 1,605 (24) CMBS 193 - - (38) - - - - 155 (1) CDO/ABS 7,055 271 - (1,623) 65 (65) - - 5,703 (393) Total other bond securities 8,846 314 - (1,662) 65 (83) - - 7,480 (418) Equity securities available for sale: Common stock - - - - - - - - - - Total equity securities available for sale - - - - - - - - - - Other equity securities 14 - - (14) - - - - - - Mortgage and other loans receivable 11 - - - - - - - 11 - Other invested assets 332 1 - (75) - (54) - - 204 8 Total $ 38,020 $ 1,380 $ (321) $ (1,275) $ 1,364 $ (1,485) $ (14) $ (3) $ 37,666 $ (410) Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year Liabilities: Policyholder contract deposits $ 2,289 $ 441 $ - $ 303 $ - $ - $ - $ - $ 3,033 $ (366) Derivative liabilities, net: Interest rate contracts 50 (8) - (4) - - - - 38 6 Foreign exchange contracts 7 5 - (1) - - - - 11 (4) Equity contracts (54) (10) - 6 - - - - (58) 10 Credit contracts 505 (81) - (95) - - - - 329 71 Other contracts 48 (10) - (53) - 4 - - (11) 128 Total derivatives liabilities, net (a) 556 (104) - (147) - 4 - - 309 211 Long-term debt (b) 183 4 - (3) - (113) - - 71 (1) Total $ 3,028 $ 341 $ - $ 153 $ - $ (109) $ - $ - $ 3,413 $ (156) (a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. (b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable. |
Changes in Level 3 recurring fair value measurements (Liabilities) | Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year December 31, 2017 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,040 $ 5 $ 167 $ 216 $ 8 $ (32) $ - $ - $ 2,404 $ - Non-U.S. governments 17 (9) 9 (9) - - - - 8 - Corporate debt 1,133 (3) 20 (259) 886 (604) - - 1,173 - RMBS 16,906 1,071 942 (2,763) 19 (39) - - 16,136 - CMBS 2,040 35 11 (748) 20 (734) - - 624 - CDO/ABS 7,835 (19) 155 743 - (63) - - 8,651 - Total bonds available for sale 29,971 1,080 1,304 (2,820) 933 (1,472) - - 28,996 - Other bond securities: Corporate debt 17 3 - 10 - (12) - - 18 1 RMBS 1,605 191 - (313) 14 (33) - - 1,464 113 CMBS 155 4 - 24 9 (118) - - 74 5 CDO/ABS 5,703 841 - (1,582) - (6) - - 4,956 362 Total other bond securities 7,480 1,039 - (1,861) 23 (169) - - 6,512 481 Equity securities available for sale: Common stock - - - 1 - (1) - - - - Total equity securities available for sale - - - 1 - (1) - - - - Other equity securities - - - - - - - - - - Mortgage and other loans receivable 11 - - (6) - - - - 5 - Other invested assets 204 14 (6) 39 - (1) - - 250 6 Total $ 37,666 $ 2,133 $ 1,298 $ (4,647) $ 956 $ (1,643) $ - $ - $ 35,763 $ 487 Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year Liabilities: Policyholder contract deposits $ 3,033 $ 807 $ - $ 296 $ - $ - $ - $ - $ 4,136 $ (499) Derivative liabilities, net: Interest rate contracts 38 (5) - (11) - - - - 22 5 Foreign exchange contracts 11 (2) - (9) - - - - - 3 Equity contracts (58) (41) - 17 - - - - (82) 35 Credit contracts 329 (62) - (5) - - - - 262 61 Other contracts (11) (74) - 73 (3) - - - (15) 77 Total derivative liabilities, net (a) 309 (184) - 65 (3) - - - 187 181 Long-term debt (b) 71 16 - (87) - - - - - - Total $ 3,413 $ 639 $ - $ 274 $ (3) $ - $ - $ - $ 4,323 $ (318) Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year December 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,124 $ 5 $ - $ 61 $ 2 $ (152) $ - $ - $ 2,040 $ - Non-U.S. governments 32 (3) (12) 7 1 (5) - (3) 17 - Corporate debt 1,370 (13) (42) (111) 920 (977) (14) - 1,133 - RMBS 16,537 970 (24) (878) 330 (29) - - 16,906 - CMBS 2,585 72 (132) (323) 23 (185) - - 2,040 - CDO/ABS 6,169 34 (111) 1,720 23 - - - 7,835 - Total bonds available for sale 28,817 1,065 (321) 476 1,299 (1,348) (14) (3) 29,971 - Other bond securities: Corporate debt 17 - - - - - - - 17 - RMBS 1,581 43 - (1) - (18) - - 1,605 (24) CMBS 193 - - (38) - - - - 155 (1) CDO/ABS 7,055 271 - (1,623) 65 (65) - - 5,703 (393) Total other bond securities 8,846 314 - (1,662) 65 (83) - - 7,480 (418) Equity securities available for sale: Common stock - - - - - - - - - - Total equity securities available for sale - - - - - - - - - - Other equity securities 14 - - (14) - - - - - - Mortgage and other loans receivable 11 - - - - - - - 11 - Other invested assets 332 1 - (75) - (54) - - 204 8 Total $ 38,020 $ 1,380 $ (321) $ (1,275) $ 1,364 $ (1,485) $ (14) $ (3) $ 37,666 $ (410) Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year Liabilities: Policyholder contract deposits $ 2,289 $ 441 $ - $ 303 $ - $ - $ - $ - $ 3,033 $ (366) Derivative liabilities, net: Interest rate contracts 50 (8) - (4) - - - - 38 6 Foreign exchange contracts 7 5 - (1) - - - - 11 (4) Equity contracts (54) (10) - 6 - - - - (58) 10 Credit contracts 505 (81) - (95) - - - - 329 71 Other contracts 48 (10) - (53) - 4 - - (11) 128 Total derivatives liabilities, net (a) 556 (104) - (147) - 4 - - 309 211 Long-term debt (b) 183 4 - (3) - (113) - - 71 (1) Total $ 3,028 $ 341 $ - $ 153 $ - $ (109) $ - $ - $ 3,413 $ (156) (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 December 31, 2017 Assets: Bonds available for sale $ 1,127 $ (49) $ 2 $ 1,080 Other bond securities 308 - 731 1,039 Equity securities available for sale - - - - Other equity securities - - - - Other invested assets 9 6 (1) 14 December 31, 2016 Assets: Bonds available for sale $ 1,180 $ (118) $ 3 $ 1,065 Other bond securities 110 44 160 314 Equity securities available for sale - - - - Other equity securities - - - - Other invested assets 13 39 (51) 1 Net Net Realized Investment Capital Other (in millions) Income (Gains) Losses Income Total December 31, 2017 Liabilities: Policyholder contract deposits - 807 - 807 Derivative liabilities, net - (17) (167) (184) Long-term debt - - 16 16 December 31, 2016 Liabilities: Policyholder contract deposits - 441 - 441 Derivative liabilities, net - (8) (96) (104) Long-term debt - - 4 4 |
Gross components of purchases, sales, issues and settlements, net | Purchases, Sales, Issuances and Issuances and (in millions) Purchases Sales Settlements (a) Settlements, Net (a) December 31, 2017 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 286 $ (16) $ (54) $ 216 Non-U.S. governments 9 (1) (17) (9) Corporate debt 36 (59) (236) (259) RMBS 1,199 (260) (3,702) (2,763) CMBS 75 (146) (677) (748) CDO/ABS 2,099 (243) (1,113) 743 Total bonds available for sale 3,704 (725) (5,799) (2,820) Other bond securities: Corporate debt 11 - (1) 10 RMBS 167 (218) (262) (313) CMBS 42 (11) (7) 24 CDO/ABS 9 (65) (1,526) (1,582) Total other bond securities 229 (294) (1,796) (1,861) Equity securities available for sale 13 - (12) 1 Other equity securities - - - - Mortgage and other loans receivable - (6) - (6) Other invested assets 107 (46) (22) 39 Total assets $ 4,053 $ (1,071) $ (7,629) $ (4,647) Liabilities: Policyholder contract deposits $ - $ 344 $ (48) $ 296 Derivative liabilities, net (4) - 69 65 Long-term debt (b) - - (87) (87) Total liabilities $ (4) $ 344 $ (66) $ 274 December 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 164 $ (8) $ (95) $ 61 Non-U.S. governments 13 - (6) 7 Corporate debt 29 (25) (115) (111) RMBS 2,635 (81) (3,432) (878) CMBS 156 (98) (381) (323) CDO/ABS 2,460 (99) (641) 1,720 Total bonds available for sale 5,457 (311) (4,670) 476 Other bond securities: Corporate debt - - - - RMBS 343 (104) (240) (1) CMBS 53 (86) (5) (38) CDO/ABS 69 (458) (1,234) (1,623) Total other bond securities 465 (648) (1,479) (1,662) Equity securities available for sale - - - - Other equity securities 14 - (28) (14) Mortgage and other loans receivable 1 (2) 1 - Other invested assets 37 (10) (102) (75) Total assets $ 5,974 $ (971) $ (6,278) $ (1,275) Liabilities: Policyholder contract deposits $ - $ 437 $ (134) $ 303 Derivative liabilities, net (6) - (141) (147) Long-term debt (b) - - (3) (3) Total liabilities $ (6) $ 437 $ (278) $ 153 (a) There were no issuances during the year s ended December 31, 2017 and 2016 . ( b ) Includes GIAs, notes, bonds, loans and mortgages payable. |
Significant unobservable inputs used for recurring fair value measurements | Fair Value at December 31, Valuation Range (in millions) 2017 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,620 Discounted cash flow Yield 3.55% - 4.32% (3.94%) Corporate debt 1,086 Discounted cash flow Yield 3.26% - 12.22% (7.74%) RMBS (a) 16,156 Discounted cash flow Constant prepayment rate 3.97% - 13.42% (8.69%) Loss severity 43.15% - 77.15% (60.15%) Constant default rate 3.31% - 8.30% (5.80%) Yield 2.73% - 5.19% (3.96%) CDO/ABS (a) 5,254 Discounted cash flow Yield 3.38% - 4.78% (4.08%) CMBS 487 Discounted cash flow Yield 2.22% - 7.77% (4.99%) Liabilities: Embedded derivatives within Policyholder contract deposits: GMWB 1,994 Discounted cash flow Equity volatility 6.45% - 51.25% Base lapse rate 0.35% - 14.00% Dynamic lapse multiplier 30.00% - 170.00% Mortality multiplier (c) 40.00% - 153.00% Utilization 90.00% - 100.00% Equity / interest-rate correlation 20.00% - 40.00% Index Annuities 1,603 Discounted cash flow Lapse rate 0.50% - 40.00% Mortality multiplier (c) 42.00% - 162.00% Option Budget 1.00% - 4.00% Indexed Life 515 Discounted cash flow Base lapse rate 2.00% - 19.00% Mortality rate 0.00% - 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% Option Budget 1.00% - 4.00% 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 securitiza tion vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us, because there are other factors relevant to the fair values of specific tranches owned by us including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points. (b) Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities. (c) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table. |
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share | December 31, 2017 December 31, 2016 Fair Value Using Net Asset Value Per Share (or its equivalent) Fair Value Using Net Asset Value Per Share (or its equivalent) Unfunded Unfunded (in millions) Investment Category Includes Commitments Commitments Investment Category Private equity funds: Leveraged buyout Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage $ 1,243 $ 706 $ 1,424 $ 750 Real Estate / Infrastructure Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities 210 187 258 208 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 134 73 137 31 Distressed Securities of companies that are in default, under bankruptcy protection, or troubled 113 42 123 44 Other Includes multi-strategy, mezzanine, and other strategies 428 219 312 215 Total private equity funds 2,128 1,227 2,254 1,248 Hedge funds : Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 1,128 - 1,453 9 Long-short Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk 1,233 - 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 1,011 - 992 - Distressed Securities of companies that are in default, under bankruptcy protection or troubled 266 8 416 8 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 231 4 197 14 Total hedge funds 3,869 12 4,487 31 Total $ 5,997 $ 1,239 $ 6,741 $ 1,279 |
Gains or losses related to the eligible instruments for which AIG elected the fair value option | Years Ended December 31, Gain (Loss) (in millions) 2017 2016 2015 Assets: Bond and equity securities $ 1,646 $ 447 $ 616 Alternative investments (a) 509 28 36 Other, including Short-term investments 1 - 2 Liabilities: Long-term debt (b) (49) (9) (38) Other liabilities (2) - (3) Total gain $ 2,105 $ 466 $ 613 (a) Includes certain hedge funds, private equity funds and other investment partnerships . (b) Includes GIAs, notes, bonds and mortgages payable . |
Difference between fair values and aggregate contractual principal amounts, fair value option | December 31, 2017 December 31, 2016 Outstanding Outstanding (in millions) Fair Value Principal Amount Difference Fair Value Principal Amount Difference Assets: Mortgage and other loans receivable $ 5 $ 5 $ - $ 11 $ 8 $ 3 Liabilities: Long-term debt * $ 2,888 $ 2,280 $ 608 $ 3,428 $ 2,628 $ 800 * Includes GIAs, notes, bonds, loans and mortgages payable. |
Fair value assets measured on nonrecurring basis and impairment charges | Assets at Fair Value Impairment Charges Non-Recurring Basis December 31, (in millions) Level 1 Level 2 Level 3 Total 2017 2016 2015 December 31, 2017 Other investments $ - $ - $ 55 $ 55 $ 77 $ 76 $ 189 Investments in life settlements - - - - 360 397 540 Other assets * - - - - 157 19 80 Total $ - $ - $ 55 $ 55 $ 594 $ 492 $ 809 December 31, 2016 Other investments $ - $ - $ 364 $ 364 Investments in life settlements - - 736 736 Other assets - - 2 2 Total $ - $ - $ 1,102 $ 1,102 * Impairments include $ 35 million related to other assets that were sold in 2017. |
Carrying values and estimated fair values of AIG's financial instruments | Estimated Fair Value Carrying (in millions) Level 1 Level 2 Level 3 Total Value December 31, 2017 Assets: Mortgage and other loans receivable $ - $ 117 $ 37,644 $ 37,761 $ 37,018 Other invested assets - 590 6 596 593 Short-term investments - 7,771 - 7,771 7,771 Cash 2,362 - - 2,362 2,362 Liabilities: Policyholder contract deposits associated with investment-type contracts - 387 121,809 122,196 114,326 Other liabilities - 4,494 - 4,494 4,494 Long-term debt - 23,930 4,313 28,243 28,752 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) | 12 Months Ended |
Dec. 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) December 31, 2017 Bonds available for sale: U.S. government and government sponsored entities $ 2,532 $ 160 $ (36) $ 2,656 $ - Obligations of states, municipalities and political subdivisions 17,377 1,297 (30) 18,644 - Non-U.S. governments 15,059 717 (117) 15,659 - Corporate debt 126,310 8,666 (800) 134,176 17 Mortgage-backed, asset-backed and collateralized: RMBS 34,181 3,273 (220) 37,234 1,568 CMBS 13,538 408 (105) 13,841 42 CDO/ABS 16,464 370 (52) 16,782 29 Total mortgage-backed, asset-backed and collateralized 64,183 4,051 (377) 67,857 1,639 Total bonds available for sale (b) 225,461 14,891 (1,360) 238,992 1,656 Equity securities available for sale: Common stock 703 379 (21) 1,061 - Preferred stock 504 29 - 533 - Mutual funds 98 16 - 114 - Total equity securities available for sale 1,305 424 (21) 1,708 - Total $ 226,766 $ 15,315 $ (1,381) $ 240,700 $ 1,656 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 impairments recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date. (b) At December 31, 2017 and 2016 , bonds available for sale held by us that were below investment grade or not rated totaled $ 31.5 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 December 31, 2017 Bonds available for sale: U.S. government and government sponsored entities $ 770 $ 23 $ 332 $ 13 $ 1,102 $ 36 Obligations of states, municipalities and political subdivisions 586 6 646 24 1,232 30 Non-U.S. governments 3,511 54 857 63 4,368 117 Corporate debt 15,578 453 7,291 347 22,869 800 RMBS 6,212 99 3,790 121 10,002 220 CMBS 3,408 46 1,389 59 4,797 105 CDO/ABS 1,455 24 822 28 2,277 52 Total bonds available for sale 31,520 705 15,127 655 46,647 1,360 Equity securities available for sale: Common stock 136 21 - - 136 21 Mutual funds 1 - - - 1 - Total equity securities available for sale 137 21 - - 137 21 Total $ 31,657 $ 726 $ 15,127 $ 655 $ 46,784 $ 1,381 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 December 31, 2017 Available for Sale Position Available for Sale (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 7,932 $ 8,071 $ 1,526 $ 1,515 Due after one year through five years 47,179 49,093 7,764 7,571 Due after five years through ten years 42,617 43,944 11,559 11,143 Due after ten years 63,550 70,027 9,705 9,342 Mortgage-backed, asset-backed and collateralized 64,183 67,857 17,453 17,076 Total $ 225,461 $ 238,992 $ 48,007 $ 46,647 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 | Years Ended December 31, 2017 2016 2015 Gross Gross Gross Gross Gross Gross Realized Realized Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Gains Losses Fixed maturity securities $ 725 $ 300 $ 801 $ 800 $ 517 $ 423 Equity securities 107 19 1,072 15 1,060 28 Total $ 832 $ 319 $ 1,873 $ 815 $ 1,577 $ 451 |
The fair value of AIG's other securities | December 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 $ 2,802 21 % $ 2,939 20 % Obligations of states, municipalities and political subdivisions - - - - Non-U.S. governments 57 1 51 - Corporate debt 1,909 14 1,772 12 Mortgage-backed, asset-backed and collateralized : RMBS 1,885 14 2,025 14 CMBS 559 4 603 4 CDO/ABS and other collateralized * 5,560 42 6,608 47 Total mortgage-backed, asset-backed and collateralized 8,004 60 9,236 65 Total fixed maturity securities 12,772 96 13,998 97 Equity securities 589 4 482 3 Total $ 13,361 100 % $ 14,480 100 % * Inclu des $ 251 m illion and $ 421 m illion of U.S. g overnment agency backed ABS at December 31, 2017 and 2016 , respectively. |
Components of other invested assets | December 31, (in millions) 2017 2016 Alternative investments (a) (b) $ 11,308 $ 13,379 Investment real estate (c) 8,258 6,900 Aircraft asset investments (d) 206 321 Investments in life settlements - 2,516 All other investments 1,050 1,422 Total $ 20,822 $ 24,538 (a) At December 31, 2017 , included hedge funds of $ 5.8 billion, private equity funds of $ 5.0 billion, and affordable housing partnerships of $ 543 million. At December 31, 2016 , included hedge funds of $ 7.2 billion, private equity funds of $ 5.5 billion, and affordable housing partnerships of $ 625 million. (b) Approximately 75 percent of our hedge fund port folio is available for redemption in 2018 , an additional 25 percent will be available between 2019 and 2024. (c) Net of accumulated depreciation of $ 515 million and $ 451 million in 2017 and 2016 , respectively. (d) Consists of investments in aircraft equipment held in a consolidated trust. |
The carrying value and ownership percentage of AIA and equity method investments | 2017 2016 Carrying Ownership Carrying Ownership (in millions, except percentages) Value Percentage Value Percentage Equity method investments $ 9,050 Various $ 10,756 Various |
Components of net investment income | Years Ended December 31, (in millions) 2017 2016 2015 Available for sale fixed maturity securities, including short-term investments $ 10,435 $ 11,314 $ 11,331 Other fixed maturity securities 660 331 1 Equity securities 34 (5) 99 Interest on mortgage and other loans 1,661 1,526 1,417 Alternative investments * 1,475 693 1,120 Real estate 144 150 181 Other investments 290 509 432 Total investment income 14,699 14,518 14,581 Investment expenses 520 453 528 Net investment income $ 14,179 $ 14,065 $ 14,053 * 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. |
Components of net realized capital gains (losses) | Years Ended December 31, (in millions) 2017 2016 2015 Sales of fixed maturity securities $ 425 $ 1 $ 94 Sales of equity securities (a) 88 1,057 1,032 Other-than-temporary impairments: Severity (2) (15) (13) Change in intent (9) (46) (233) Foreign currency declines (11) (18) (57) Issuer-specific credit events (234) (433) (348) Adverse projected cash flows (4) (47) (20) Provision for loan losses (50) 10 (58) Foreign exchange transactions 489 (1,226) 416 Variable annuity embedded derivatives, net of related hedges (1,374) (1,243) 320 All other derivatives and hedge accounting (368) 299 78 Impairments on investments in life settlements (360) (397) (540) Other (b) 30 114 105 Net realized capital gains (losses) $ (1,380) $ (1,944) $ 776 (a) In 2016 and 2015 includes realized gains on the sale of a portion of our holdings in People’s Insurance Company (Group) of China Limited and PICC Property & Casualty Company Limited (collectively, our PICC Investment) . ( b) In 2016, primarily includes $ 107 million of realized gains due to a purchase price adjustment on the sale of Class B shares of Prudential Financial, Inc. and losses of $ 253 million from the sale of a portion of our Life Settlements portfolio. In 2015, primarily includes $ 357 million of realized gains due to the sale of common shares of SpringLeaf Holdings (now known as OneMain Holdings, Inc.), $ 428 million of realized gains due to the sale of Class B shares of Prudential Financial, Inc. and $ 463 million of realized losses due to the sale of ordinary shares of AerCap . |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | Years Ended December 31, (in millions) 2017 2016 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ 4,235 $ 2,019 Equity securities 22 (1,155) Other investments (195) (259) Total increase (decrease) in unrealized appreciation (depreciation) of investments * $ 4,062 $ 605 * Excludes net unrealized gains (losses) attributable to businesses held for sale. |
Credit impairments recognized in earnings for available for sale fixed maturity securities | Years Ended December 31, (in millions) 2017 2016 2015 Balance, beginning of year $ 1,098 $ 1,747 $ 2,659 Increases due to: Credit impairments on new securities subject to impairment losses 122 204 111 Additional credit impairments on previously impaired securities 74 212 109 Reductions due to: Credit impaired securities fully disposed of for which there was no prior intent or requirement to sell (99) (296) (399) Credit impaired securities for which there is a current intent or anticipated requirement to sell - - 2 Accretion on securities previously impaired due to credit * (669) (767) (735) Divested businesses - (2) - Balance, end of year $ 526 $ 1,098 $ 1,747 * 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) $ 36,642 Cash flows expected to be collected * 30,040 Recorded investment in acquired securities 20,267 * Represents undiscounted expected cash flows, including both principal and interest. |
Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date | December 31, December 31, (in millions) 2017 2016 Outstanding principal balance $ 14,718 $ 16,728 Amortized cost 10,492 11,987 Fair value 12,293 12,922 |
Activity for accretable yield on Purchased Credit Impaired (PCI) Securities | Years Ended December 31, (in millions) 2017 2016 Balance, beginning of year $ 7,498 $ 6,846 Newly purchased PCI securities 190 707 Disposals (18) - Accretion (797) (842) Effect of changes in interest rate indices (34) 39 Net reclassification from (to) non-accretable difference, including effects of prepayments 662 748 Balance, end of year $ 7,501 $ 7,498 |
Schedule of fair value of securities pledged to counterparties under secured financing transactions | (in millions) December 31, 2017 December 31, 2016 Fixed maturity securities available for sale $ 2,911 $ 2,389 Other bond securities, at fair value $ 1,585 $ 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 December 31, 2017 Bonds available for sale: Non-U.S. governments $ - $ 7 $ 19 $ - $ - $ 26 Corporate debt - 13 35 - - 48 Other bond securities: U.S. government and government sponsored entities 44 - - - - 44 Non-U.S. governments - - 11 - - 11 Corporate debt - 387 1,065 - - 1,452 Total $ 44 $ 407 $ 1,130 $ - $ - $ 1,581 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 December 31, 2017 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ - $ - $ - $ - $ - Non-U.S. governments - - 18 - - 18 Corporate debt - 588 2,231 - - 2,819 CMBS - - - - - - Other bond securities: Non-U.S. governments - - 22 - - 22 Corporate debt - - 56 - - 56 Total $ - $ 588 $ 2,327 $ - $ - $ 2,915 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) December 31, 2017 December 31, 2016 Securities collateral pledged to us $ 2,227 $ 1,434 Amount sold or repledged by us 46 11 |
Investment [Line Items] | |
Summarized financial information of AIG's equity method investees | Years Ended December 31, (in millions) 2017 2016 2015 Operating results: Total revenues $ 13,066 $ 9,512 $ 22,055 Total expenses (6,835) (7,361) (3,898) Net income $ 6,231 $ 2,151 $ 18,157 At December 31, (in millions) 2017 2016 Balance sheet: Total assets $ 132,708 $ 158,306 Total liabilities $ (35,585) $ (37,336) |
LENDING ACTIVITIES (Tables)
LENDING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LENDING ACTIVITIES | |
Composition of Mortgages and other loans receivable | December 31, December 31, (in millions) 2017 2016 Commercial mortgages * $ 28,596 $ 25,042 Residential mortgages 5,398 3,828 Life insurance policy loans 2,295 2,367 Commercial loans, other loans and notes receivable 1,056 2,300 Total mortgage and other loans receivable 37,345 33,537 Allowance for credit losses (322) (297) Mortgage and other loans receivable, net $ 37,023 $ 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 December 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 | 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 December 31, 2017 Loan-to-Value Ratios (b) Less than 65% $ 18,000 $ 1,525 $ 351 $ 19,876 65% to 75% 6,038 193 184 6,415 76% to 80% 569 40 - 609 Greater than 80% 1,416 206 74 1,696 Total commercial mortgages $ 26,023 $ 1,964 $ 609 $ 28,596 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. Our weighted average debt service coverage ratio was 2.1 X and 1.9 X at December 31, 2017 and 2016 , respectively. (b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 57 percent and 58 percent at December 31, 2017 , and 2016 , respectively. |
Schedule of credit quality indicators for the commercial mortgage loans | Number Percent December 31, 2017 of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total $ Credit Quality Performance Indicator: In good standing 778 $ 8,163 $ 8,585 $ 5,338 $ 2,023 $ 2,373 $ 1,960 $ 28,442 99 % Restructured (a) 5 - 115 23 - 16 - 154 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 783 $ 8,163 $ 8,700 $ 5,361 $ 2,023 $ 2,389 $ 1,960 $ 28,596 100 % Allowance for credit losses: Specific - 3 1 - 1 - 5 - % General 72 94 37 6 15 18 242 1 Total allowance for credit losses $ 72 $ 97 $ 38 $ 6 $ 16 $ 18 $ 247 1 % December 31, 2016 (dollars in millions) 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 below . (b) Does not reflect allowance for credit losses . (c) Our commercial mortgage loan portfolio is current as to payments of principal and interest , for both periods presented . There were no significant amounts of nonperforming commercial mortgages (defined as those loans where payment of contractual prin cipal 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 2015 Years Ended December 31, Commercial Other Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 194 $ 103 $ 297 $ 171 $ 137 $ 308 $ 159 $ 112 $ 271 Loans charged off (22) (3) (25) (13) (2) (15) (23) (6) (29) Recoveries of loans previously charged off - 1 1 11 - 11 4 1 5 Net charge-offs (22) (2) (24) (2) (2) (4) (19) (5) (24) Provision for loan losses 75 (26) 49 25 (32) (7) 31 27 58 Other - - - - - - - 3 3 Allowance, end of year $ 247 * $ 75 $ 322 $ 194 * $ 103 $ 297 $ 171 * $ 137 $ 308 * Of the total allowance at the end of the year , $ 5 million, $ 11 million and $ 24 million relates to individually assessed credit losses on $ 82 million , $ 280 million and $ 507 million of commercial mortgages as of December 31, 2017 , 2016 and 2015 , respectively. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Effects of Reinsurance [Line Items] | |
Supplemental information for gross loss and benefit reserves net of ceded reinsurance | At December 31, 2017 2016 As Net of As Net of (in millions) Reported Reinsurance Reported Reinsurance Liability for unpaid losses and loss adjustment expenses $ (78,393) $ (51,685) $ (77,077) $ (61,545) Future policy benefits for life and accident and health insurance contracts (45,432) (44,457) (42,204) (41,140) Reserve for unearned premiums (19,030) (15,890) (19,634) (16,280) Reinsurance assets (a) 30,823 19,950 (a ) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses. |
Schedule of long-duration insurance in force ceded to other insurance companies | At December 31, (in millions) 2017 2016 2015 Long-duration insurance in force ceded $ 202,402 $ 174,363 $ 177,025 |
Short-Duration Reinsurance | |
Effects of Reinsurance [Line Items] | |
Schedule of insurance premiums written and earned | Years Ended December 31, (in millions) 2017 2016 2015 Premiums written: Direct $ 30,205 $ 33,970 $ 37,698 Assumed 3,084 2,824 2,972 Ceded (7,533) (7,561) (7,604) Net $ 25,756 $ 29,233 $ 33,066 Premiums earned: Direct $ 30,904 $ 34,869 $ 37,105 Assumed 3,373 2,962 2,659 Ceded (7,902) (7,284) (7,593) Net $ 26,375 $ 30,547 $ 32,171 |
Long-Duration Reinsurance | |
Effects of Reinsurance [Line Items] | |
Schedule of insurance premiums written and earned | Years Ended December 31, (in millions) 2017 2016 2015 Gross premiums $ 5,338 $ 4,732 $ 5,240 Ceded premiums (809) (789) (756) Net $ 4,529 $ 3,943 $ 4,484 |
DEFERRED POLICY ACQUISITION C49
DEFERRED POLICY ACQUISITION COSTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DEFERRED POLICY ACQUISITION COSTS | |
Rollforward of DAC | Years Ended December 31, (in millions) 2017 2016 2015 Balance, beginning of year $ 11,042 $ 11,115 $ 9,828 Dispositions (35) (110) - Acquisition costs deferred 4,820 5,216 5,825 Amortization expense (4,288) (4,521) (5,236) Change in net unrealized gains (losses) on securities (505) (259) 848 Other, including foreign exchange (40) 72 (150) Reclassified to Assets held for sale - (471) - Balance, end of year * $ 10,994 $ 11,042 $ 11,115 Supplemental Information: VOBA amortization expense included in DAC amortization 20 40 64 VOBA, end of year included in DAC balance 381 393 453 * Net of reductions in DAC of $ 1.3 b illion, $ 842 million , and $ 583 m illion at December 31, 2017 , 2016 and 2015 , respectively , related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC). |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 Assets: Bonds available for sale $ - $ 9,632 $ - $ - $ - $ 9,632 Other bond securities - 4,518 - - 3 4,521 Mortgage and other loans receivable - 2,290 - - - 2,290 Other invested assets 1,365 206 - 3,087 25 4,683 Other (a) 302 1,481 - 350 85 2,218 Total assets (b) $ 1,667 $ 18,127 $ - $ 3,437 $ 113 $ 23,344 Liabilities: Long-term debt $ 680 $ 1,624 $ - $ 1,825 $ 5 $ 4,134 Other (c) 144 244 - 181 26 595 Total liabilities $ 824 $ 1,868 $ - $ 2,006 $ 31 $ 4,729 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) C omprised primarily of Short-term investments and Other assets at December 31, 2017 and 2016 . ( b ) The assets of each VIE can be used only to settle specific obligations of that VIE. ( c ) Comprised primarily of Other liabilities at December 31, 2017 and 2016 . (d) At December 31 , 2017 and 2016 , off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $ 85.8 million and $ 106 million, respectively. ( e ) At December 31, 2017 and 2016 , $ 17.6 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 Variable Interest Entities | Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (b) Sheet Total December 31, 2017 Real estate and investment entities (a) $ 380,030 $ 9,253 $ 2,043 $ 11,296 Affordable housing partnerships 4,468 725 - 725 Other 2,703 254 1,205 (c) 1,459 Total $ 387,201 $ 10,232 $ 3,248 $ 13,480 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 December 31, 2017 and 2016 , $ 9.8 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 policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. |
DERIVATIVES AND HEDGE ACCOUNT51
DERIVATIVES AND HEDGE ACCOUNTING (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
Notional amounts and fair values of derivative instruments | December 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 $ - $ - $ 838 $ 15 $ 175 $ - $ 782 $ 11 Foreign exchange contracts 2,823 173 4,783 350 3,527 385 2,602 184 Equity contracts - - 159 19 - - 113 7 Derivatives not designated as hedging instruments: (a) Interest rate contracts 37,751 2,171 26,461 2,185 51,030 2,328 44,211 3,066 Foreign exchange contracts 6,305 658 11,093 895 9,468 935 7,674 1,185 Equity contracts 19,975 522 1,130 2 14,060 305 8,633 12 Commodity contracts - - - - - - - - Credit contracts (b) 4 1 1,365 277 4 2 861 331 Other contracts (c) 39,829 20 59 5 37,633 22 62 6 Total derivatives, gross $ 106,687 $ 3,545 $ 45,888 $ 3,748 $ 115,897 $ 3,977 $ 64,938 $ 4,802 Counterparty netting (d) (1,464) (1,464) (1,265) (1,265) Cash collateral (e) (1,159) (1,249) (903) (1,521) Total derivatives on consolidated balance sheets (f) $ 922 $ 1,035 $ 1,809 $ 2,016 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b ) As of December 31, 2017 and 2016 , included CDSs on super senior multi-sector CDOs with a net notional amount of $ 685 m illion and $ 801 million (fair value liability of $ 254 million and $ 308 million), respectively. The expected weighted average maturity as of December 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 represents the maximum exposure to loss on the portfolio. As of December 31, 2017 and 2016 , there were no super senior corporate debt/CLOs remaining. (c) Consists primarily of stable value wraps and contracts with multiple underlying exposures. (d) Represents netting of derivative exposures covered by a qualifying master netting agreement. (e) Represents cash collateral posted and received that is eligible for netting. (f) Freestanding derivatives only, excludes Embedded derivatives. Derivative i nstrument assets and liabilities are recorded in Other Assets and Liabilities, respectively. Fair value of assets related to bifurcated Embedded derivatives was zero at both December 31, 2017 and December 31, 2016 . Fair value of liabilities related to bifurcated Embedded derivatives was $ 4.1 billion and $ 3.1 billion, respectively, at December 31, 2017 and December 31, 2016 . A bifurcated Embedded derivative i s generally presented with the host contract in the 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) Year ended December 31, 2017 Interest rate contracts : Realized capital gains/(losses) $ (4) $ 4 $ - $ - $ - Other income - - - - - Gain/(Loss) on extinguishment of debt - - - - - Foreign exchange contracts : Realized capital gains/(losses) (420) 393 - (26) - Interest credited to policyholder account balances - - - - - Other income - 4 - - 4 Gain/(Loss) on extinguishment of debt - - - - - Equity contracts : Realized capital gains/(losses) (47) 42 - (5) - Year ended December 31, 2016 Interest rate contracts : Realized capital gains/(losses) $ (7) $ 1 $ 1 $ - $ (7) Other income - 10 - - 10 Gain/(Loss) on extinguishment of debt - - - - - Foreign exchange contracts : Realized capital gains/(losses) 294 (335) - (41) - Interest credited to policyholder account balances - - - - - Other income - 24 - - 24 Gain/(Loss) on extinguishment of debt - - - - - Equity contracts : Realized capital gains/(losses) 10 (11) - (1) - Year ended December 31, 2015 Interest rate contracts : Realized capital gains $ - $ 1 $ 1 $ - $ - Other income - 9 - - 9 Gain/(Loss) on extinguishment of debt - 14 - - 14 Foreign exchange contracts : Realized capital gains/(losses) 202 (167) - 32 3 Interest credited to policyholder account balances - (1) - - (1) Other income - 17 - - 17 Gain/(Loss) on extinguishment of debt - 17 - - 17 Equity contracts : Realized capital gains/(losses) (45) 45 - - - (a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged item . (b) Represents accretion/amortization of opening fair value of the hedged item at inception of hedge relationship, amortization of basis adjustment on hedged item following the discontinuation of hedge accounting, and the release of debt basis adjustment following the repurchase of issued debt that was part of previously-discontinued fair value h edge relationship. |
Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statements of Income | Years Ended December 31, Gains (Losses) Recognized in Earnings (in millions) 2017 2016 2015 By Derivative Type: Interest rate contracts $ 56 $ (229) $ 339 Foreign exchange contracts (277) 293 416 Equity contracts (964) (902) (182) Commodity contracts - - (1) Credit contracts 58 81 186 Other contracts 75 80 69 Embedded derivatives (449) (48) 49 Total $ (1,501) $ (725) $ 876 By Classification: Policy fees $ 77 $ 80 $ 78 Net investment income (11) 26 26 Net realized capital gains (losses) (1,709) (895) 365 Other income 139 63 401 Policyholder benefits and claims incurred 3 1 6 Total $ (1,501) $ (725) $ 876 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill Disclosure | |
Schedule of changes in goodwill by reportable segment | North Life Other Legacy (in millions) America International Insurance Operations Portfolio Total Balance at January 1, 2015: Goodwill - gross $ 1,834 $ 2,887 $ 21 $ 7 $ 182 $ 4,931 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill 570 751 21 7 105 1,454 Increase (decrease) due to: Acquisition 50 46 55 20 37 208 Other - (50) 1 - - (49) Balance at December 31, 2015: Goodwill - gross 1,884 2,883 77 27 219 5,090 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill 620 747 77 27 142 1,613 Increase (decrease) due to: Dispositions (6) (6) - - - (12) Other - (70) - - (3) (73) Balance at December 31, 2016: Goodwill - gross 1,878 2,807 77 27 216 5,005 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill 614 671 77 27 139 1,528 Increase (decrease) due to: Acquisition - - - 4 - 4 Dispositions (10) (7) (6) - (2) (25) Other - 74 13 - - 87 Balance at December 31, 2017: Goodwill - gross 1,868 2,874 84 31 214 5,071 Accumulated impairments (1,264) (2,136) - - (77) (3,477) Net goodwill $ 604 $ 738 $ 84 $ 31 $ 137 $ 1,594 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Claims Development [Line Items] | |
Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense | Years Ended December 31, (in millions) 2017 2016 2015 Liability for unpaid loss and loss adjustment expenses, beginning of year $ 77,077 $ 74,942 $ 77,260 Reinsurance recoverable (15,532) (14,339) (15,648) Net Liability for unpaid loss and loss adjustment expenses, beginning of year 61,545 60,603 61,612 Losses and loss adjustment expenses incurred : Current year 21,079 20,232 20,308 Prior years, excluding discount and amortization of deferred gain 1,565 5,788 4,119 Prior years, discount charge (benefit) 187 (422) (71) Prior years, amortization of deferred gain on retroactive reinsurance (a) (284) - - Total losses and loss adjustment expenses incurred 22,547 25,598 24,356 Losses and loss adjustment expenses paid : Current year (5,323) (5,825) (5,751) Prior years (16,241) (16,908) (18,205) Total losses and loss adjustment expenses paid (21,564) (22,733) (23,956) Other changes : Foreign exchange effect 788 (463) (1,429) Acquisitions (b) 23 - - Dispositions (c) (360) (1,058) - Retroactive reinsurance adjustment (net of discount) (d) (11,294) - 20 Reclassified to liabilities held for sale (e) - (402) - Total other changes (10,843) (1,923) (1,409) Liability for unpaid losses and loss adjustment expenses, end of year: Net liability for unpaid losses and loss adjustment expenses 51,685 61,545 60,603 Reinsurance recoverable 26,708 15,532 14,339 Total $ 78,393 $ 77,077 $ 74,942 (a ) Includes $ 25 million fo r 2011 retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the year ended December 31, 2017 . ( b ) Includes amounts related to the acquisition of Blackboard U.S. Holdings Inc in 2017. (c) Includes amounts related to dispositions through the date of disposition. Includes sale of insurance operations to Fairfax, United Guaranty and Ascot Underwriting Holdings Limited, and Ascot Employees Corporate Member Limited (Ascot). (d) Includes discount on retr oactive insurance in the amount of $1.5 billion for the period ended December 31, 2017 . (e) Represents change in loss reserves included in our sale of certain of our insurance operations and certain assets to Fairfax for the period ended December 31, 2016 . Upon consummation of the sale, we retain ed a portion of these reserves through reinsurance arrangements. |
Reconciliation of Claims Development to Liability | Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below Gross liability for unpaid losses and loss adjustment expenses (in millions) U.S. Workers' Compensation (before discount) $ 6,616 $ 6,513 $ 13,129 U.S. Excess Casualty 4,802 4,053 8,855 U.S. Other Casualty 5,149 4,793 9,942 U.S. Financial Lines 5,104 1,962 7,066 U.S. Property and Special risks 5,410 968 6,378 U.S. Personal Insurance 1,380 194 1,574 Europe Casualty and Financial lines 6,986 1,156 8,142 Europe Property and Special risks 2,022 632 2,654 Europe and Japan Personal Insurance 2,348 349 2,697 U.S. Run-Off Long Tail Insurance Lines (before discount) 5,383 3,675 9,058 Total $ 45,200 $ 24,295 $ 69,495 Reconciling Items Discount on workers' compensation lines (3,383) Other product lines 8,568 Unallocated loss adjustment expenses 3,713 Total Loss Reserves $ 78,393 |
Schedule of development, (favorable) unfavorable, of incurred losses and loss adjustment expenses for accident year 2007 and prior by operating segment and major class of business | Years Ended December 31, (in millions) 2017 2016 2015 2007 and prior accident year development, excluding the impact of Adverse Development Reinsurance Agreement, by major class of of business and driver of development: U.S. Workers' compensation (before discount) $ 4 $ 1,009 $ 100 U.S. Excess casualty 141 107 450 U.S. Other casualty 10 338 440 U.S. Financial lines (44) 31 191 U.S. Property and Special risks 12 12 26 U.S. Personal Insurance 5 (13) 33 Europe Casualty and Financial lines 169 (6) (2) Europe Property and Special risks (5) 1 (1) Europe and Japan Personal Insurance 1 (5) 1 U.S. Long Tail Insurance lines (before discount) (46) 363 621 All Other including unallocated loss adjustment expenses 177 3 (11) Total prior year unfavorable development $ 424 $ 1,840 $ 1,848 |
Schedule of historical average annual percentage claims payout on an accident year basis | Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 U.S. Workers' compensation 14.7 % 17.6 % 12.4 % 9.1 % 7.7 % 5.3 % 4.1 % 3.0 % 2.2 % 1.8 % U.S. Excess casualty 0.6 7.0 13.0 13.4 12.5 11.0 8.4 10.0 2.8 8.3 U.S. Other casualty 9.9 16.3 15.4 14.5 11.8 8.2 5.9 5.6 2.6 1.9 U.S. Financial lines 4.0 17.9 21.1 16.7 13.2 9.3 6.1 6.0 3.0 1.2 U.S. Property and Special risks 30.2 35.7 13.0 7.2 4.6 2.5 1.0 0.9 0.7 0.3 U.S. Personal Insurance 61.4 27.6 3.8 2.2 1.2 0.6 0.4 0.2 0.1 0.2 Europe Casualty and Financial lines 7.9 17.0 13.7 13.7 9.8 7.5 6.3 4.6 5.0 1.0 Europe Property and Special risks 24.0 41.6 17.2 6.3 4.0 1.5 1.0 0.2 0.2 0.2 Europe and Japan Personal Insurance 56.0 26.9 8.0 3.8 2.0 1.1 0.6 0.3 0.3 0.1 U.S. Long Tail Insurance lines 9.8 18.3 16.9 12.5 10.7 6.7 4.0 3.1 1.9 2.0 |
Schedule of components of the loss reserve discount | December 31, 2017 December 31, 2016 Legacy Legacy Portfolio - Portfolio - General General North America Insurance Run- North America Insurance Run- Commercial Off Insurance Commercial Off Insurance (in millions) Insurance Lines Total Insurance Lines Total U.S. Workers' compensation $ 2,465 $ 918 $ 3,383 $ 2,583 $ 987 $ 3,570 Retroactive reinsurance (1,539) - (1,539) - - - Total reserve discount * $ 926 $ 918 $ 1,844 $ 2,583 $ 987 $ 3,570 * Excludes $173 million and $181 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2017 and December 31, 2016, respectively. |
Schedule of loss reserve discount and loss reserve discount benefit (charge) | Years Ended December 31, 2017 2016 2015 Legacy Legacy Legacy Portfolio - Portfolio - Portfolio - General General General North Insurance North Insurance North Insurance America Run-Off America Run-Off America Run-Off Commercial Insurance Commercial Insurance Commercial Insurance (in millions) Insurance Lines Total Insurance Lines Total Insurance Lines Total Current accident year $ 114 $ - $ 114 $ 177 $ - $ 177 $ 182 $ - $ 182 Accretion and other adjustments to prior year discount (186) (44) (230) 287 64 351 (262) (74) (336) Effect of interest rate changes (46) (25) (71) (58) (48) (106) 148 77 225 Net reserve discount benefit (charge) (118) (69) (187) 406 16 422 68 3 71 Amount transferred to run-off insurance lines - - - - - - (39) 39 - Change in discount on loss reserves ceded under retroactive reinsurance (1,539) - (1,539) - - - - - - Net change in total reserve discount * (1,657) (69) (1,726) 406 16 422 29 42 71 Comprised of: U.S. Workers' compensation $ (1,657) $ (69) $ (1,726) $ 406 $ 23 $ 429 $ 29 $ 46 $ 75 Asbestos $ - $ - $ - $ - $ (7) $ (7) $ - $ (4) $ (4) Excludes $8 million and $20 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2017 and 2016, respectively. |
Schedule of Policyholder contract deposits by product type | At December 31, (in millions) 2017 2016 Policyholder contract deposits: Fixed Annuities $ 49,979 $ 51,278 Group Retirement 40,422 39,578 Life Insurance 12,448 11,855 Variable and Index Annuities 19,690 16,934 Institutional Markets 8,077 7,286 Legacy Portfolio 4,986 5,285 Total Policyholder contract deposits $ 135,602 $ 132,216 |
U.S. Workers Compensation | |
Claims Development [Line Items] | |
Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement 2017 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 4,114 $ 4,184 $ 4,422 $ 4,425 $ 4,471 $ 4,398 $ 4,385 $ 4,398 $ 4,547 $ 4,536 $ (11) $ 448 198,852 $ (416) $ 4,120 $ 32 2009 3,466 3,633 3,608 3,666 3,639 3,616 3,606 3,708 3,714 6 495 147,357 (416) 3,298 79 2010 2,706 3,049 3,125 3,148 3,211 3,214 3,286 3,267 (19) 451 133,191 (449) 2,818 2 2011 2,901 2,953 3,091 3,158 3,113 3,152 3,156 4 481 124,657 (479) 2,677 2 2012 2,382 2,194 2,286 2,260 2,334 2,308 (26) 503 70,625 (494) 1,814 9 2013 1,932 1,880 1,950 2,060 2,032 (28) 548 46,483 (538) 1,494 10 2014 1,729 1,764 1,866 1,862 (4) 664 39,408 (552) 1,310 112 2015 1,708 1,864 1,866 2 849 35,059 (587) 1,279 262 2016 1,299 1,346 47 773 28,880 - 1,346 773 2017 789 577 22,523 - 789 577 Total $ 24,876 $ (29) $ (3,931) $ 20,945 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (16,580) - - (16,580) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 3,867 4 (1,616) 2,251 Unallocated loss adjustment expense prior year development (6) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 12,163 $ (31) $ (5,547) $ 6,616 |
Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 785 $ 1,678 $ 2,252 $ 2,655 $ 3,044 $ 3,272 $ 3,476 $ 3,609 $ 3,707 $ 3,789 $ - 2009 630 1,328 1,756 2,120 2,390 2,621 2,780 2,887 2,968 - 2010 550 1,093 1,537 1,855 2,126 2,288 2,426 2,532 - 2011 519 1,129 1,561 1,884 2,129 2,285 2,388 - 2012 415 804 1,089 1,272 1,440 1,563 - 2013 282 619 879 1,067 1,214 - 2014 231 558 786 930 - 2015 234 524 725 - 2016 147 378 - 2017 93 - Total $ 16,580 $ - |
U.S. Excess Casualty | |
Claims Development [Line Items] | |
Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement 2017 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 1,948 $ 1,968 $ 2,146 $ 1,933 $ 1,819 $ 1,875 $ 1,714 $ 1,662 $ 1,635 $ 1,658 $ 23 $ 188 4,662 $ (176) $ 1,482 $ 12 2009 1,831 1,897 1,797 1,638 1,457 1,321 1,407 1,518 1,522 4 210 3,789 (169) 1,353 41 2010 1,863 2,076 2,076 1,771 1,640 1,723 1,719 1,706 (13) 359 3,588 (260) 1,446 99 2011 1,766 1,807 1,581 1,416 1,521 1,606 1,623 17 350 3,520 (256) 1,367 94 2012 1,588 1,382 1,226 1,477 1,530 1,481 (49) 371 3,398 (323) 1,158 48 2013 1,073 973 1,113 1,258 1,178 (80) 441 2,722 (309) 869 132 2014 849 968 1,157 1,135 (22) 583 2,088 (355) 780 228 2015 892 1,334 1,320 (14) 602 1,770 (425) 895 177 2016 790 1,029 239 870 1,061 - 1,029 870 2017 758 725 376 - 758 725 Total $ 13,410 $ 105 $ (2,273) $ 11,137 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (7,120) - - (7,120) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 1,649 141 (864) 785 Unallocated loss adjustment expense prior year development 8 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 7,939 $ 254 $ (3,137) $ 4,802 |
Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 11 $ 97 $ 439 $ 667 $ 842 $ 954 $ 1,061 $ 1,172 $ 1,226 $ 1,364 $ - 2009 8 69 249 449 624 788 965 1,174 1,212 - 2010 10 197 475 654 795 946 1,052 1,217 - 2011 5 63 225 386 716 921 1,069 - 2012 3 106 288 495 649 887 - 2013 15 104 204 382 546 - 2014 3 68 202 397 - 2015 9 192 361 - 2016 14 66 - 2017 1 - Total $ 7,120 $ - |
U.S. Other Casualty | |
Claims Development [Line Items] | |
Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement 2017 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 2,957 $ 2,773 $ 2,837 $ 2,901 $ 2,981 $ 2,983 $ 3,087 $ 3,154 $ 3,193 $ 3,175 $ (18) $ 204 117,484 $ (104) $ 3,071 $ 100 2009 2,416 2,517 2,586 2,582 2,697 2,818 2,880 2,863 2,855 (8) 144 90,101 (143) 2,712 1 2010 2,132 2,109 2,243 2,192 2,341 2,384 2,503 2,494 (9) 325 96,061 (133) 2,361 192 2011 2,052 2,222 2,321 2,458 2,601 2,639 2,596 (43) 256 75,189 (187) 2,409 69 2012 2,012 2,162 2,218 2,229 2,371 2,430 59 382 41,924 (210) 2,220 172 2013 1,662 1,739 1,918 2,152 2,183 31 450 36,699 (225) 1,958 225 2014 1,756 1,729 1,973 2,017 44 603 34,745 (331) 1,686 272 2015 1,340 1,778 1,847 69 752 31,409 (456) 1,391 296 2016 1,348 1,352 4 853 23,868 - 1,352 853 2017 616 487 15,172 - 616 487 Total $ 21,565 $ 129 $ (1,789) $ 19,776 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (15,521) - - (15,521) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 1,406 10 (512) 894 Unallocated loss adjustment expense prior year development 77 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 7,450 $ 216 $ (2,301) $ 5,149 |
Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 277 $ 791 $ 1,251 $ 1,771 $ 2,119 $ 2,396 $ 2,586 $ 2,731 $ 2,835 $ 2,895 $ - 2009 393 842 1,253 1,650 2,002 2,241 2,386 2,607 2,664 - 2010 295 661 985 1,358 1,640 1,824 1,972 2,087 - 2011 235 726 1,109 1,488 1,822 2,048 2,220 - 2012 413 743 1,048 1,395 1,690 1,882 - 2013 169 592 956 1,243 1,483 - 2014 210 621 871 1,157 - 2015 111 321 783 - 2016 77 299 - 2017 51 - Total $ 15,521 $ - |
U.S. Financial Lines | |
Claims Development [Line Items] | |
Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement 2017 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 1,871 $ 2,045 $ 2,017 $ 1,847 $ 1,961 $ 1,897 $ 1,933 $ 2,066 $ 2,096 $ 2,106 $ 10 $ 36 21,719 $ (21) $ 2,085 $ 15 2009 1,693 1,780 1,845 1,904 2,097 2,189 2,183 2,273 2,310 37 60 22,613 (26) 2,284 34 2010 1,552 1,509 1,406 1,366 1,370 1,472 1,514 1,541 27 70 20,159 (31) 1,510 39 2011 1,816 1,734 1,902 1,902 1,935 1,965 1,997 32 50 20,048 (50) 1,947 - 2012 1,572 1,739 1,777 1,892 1,986 1,987 1 146 20,090 (83) 1,904 63 2013 1,767 1,691 1,643 1,597 1,541 (56) 248 18,996 (126) 1,415 122 2014 1,767 1,736 1,849 1,898 49 417 17,249 (198) 1,700 219 2015 1,705 1,744 1,719 (25) 665 15,698 (313) 1,406 352 2016 1,593 1,841 248 1,036 15,386 - 1,841 1,036 2017 1,560 1,369 13,428 - 1,560 1,369 Total $ 18,500 $ 323 $ (848) $ 17,652 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (12,615) - - (12,615) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 88 (44) (21) 67 Unallocated loss adjustment expense prior year development 66 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 5,973 $ 345 $ (869) $ 5,104 |
Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 32 $ 420 $ 888 $ 1,183 $ 1,385 $ 1,590 $ 1,712 $ 1,897 $ 1,990 $ 2,016 $ - 2009 129 499 887 1,273 1,614 1,838 1,964 2,056 2,092 - 2010 31 285 566 800 1,017 1,180 1,280 1,361 - 2011 165 494 886 1,210 1,528 1,732 1,862 - 2012 76 406 815 1,252 1,497 1,625 - 2013 43 333 686 945 1,142 - 2014 66 371 853 1,159 - 2015 66 393 792 - 2016 76 500 - 2017 66 - Total $ 12,615 $ - |
U.S. Property and Specialty Risks | |
Claims Development [Line Items] | |
Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement 2017 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 3,531 $ 3,789 $ 3,747 $ 3,700 $ 3,659 $ 3,609 $ 3,585 $ 3,581 $ 3,576 $ 3,575 $ (1) $ 20 56,526 $ (14) $ 3,561 $ 6 2009 1,919 1,704 1,689 1,700 1,662 1,665 1,656 1,664 1,663 (1) 18 42,897 (13) 1,650 5 2010 2,275 2,042 2,009 2,049 2,061 2,038 2,043 2,058 15 21 42,276 (18) 2,040 3 2011 3,045 2,917 2,872 2,878 2,867 2,910 2,919 9 43 43,849 (19) 2,900 24 2012 3,470 3,617 3,585 3,576 3,697 3,691 (6) 62 42,278 (25) 3,666 37 2013 1,975 1,972 1,859 1,926 1,949 23 74 41,937 (38) 1,911 36 2014 2,355 2,143 2,220 2,213 (7) 140 50,160 (61) 2,152 79 2015 2,398 2,312 2,299 (13) 203 50,624 (98) 2,201 105 2016 2,516 2,580 64 402 45,583 - 2,580 402 2017 4,085 1,331 29,709 - 4,085 1,331 Total $ 27,032 $ 83 $ (286) 26,746 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (21,589) - - (21,589) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 318 12 (65) 253 Unallocated loss adjustment expense prior year development 20 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 5,761 $ 115 $ (351) 5,410 |
Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 1,323 $ 2,679 $ 3,150 $ 3,342 $ 3,457 $ 3,487 $ 3,498 $ 3,515 $ 3,530 $ 3,540 $ - 2009 495 1,044 1,288 1,443 1,528 1,580 1,597 1,618 1,633 - 2010 654 1,391 1,657 1,799 1,880 1,940 1,978 2,001 - 2011 880 1,988 2,417 2,593 2,734 2,812 2,840 - 2012 734 2,410 2,978 3,273 3,456 3,565 - 2013 586 1,275 1,469 1,620 1,732 - 2014 745 1,452 1,713 1,869 - 2015 820 1,501 1,766 - 2016 799 1,689 - 2017 954 - Total $ 21,589 $ - |
U.S. Personal Insurance | |
Claims Development [Line Items] | |
Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement 2017 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 1,630 $ 1,638 $ 1,640 $ 1,654 $ 1,654 $ 1,654 $ 1,663 $ 1,666 $ 1,664 $ 1,668 $ 4 $ 1 292,830 $ (1) $ 1,667 $ - 2009 1,763 1,697 1,649 1,663 1,664 1,664 1,668 1,667 1,671 4 4 375,959 - 1,671 4 2010 1,843 1,809 1,819 1,819 1,820 1,819 1,817 1,817 - 2 422,527 (1) 1,816 1 2011 1,886 1,908 1,896 1,891 1,890 1,886 1,881 (5) 1 412,670 (1) 1,880 - 2012 2,208 2,128 2,109 2,083 2,077 2,094 17 4 403,542 (3) 2,091 1 2013 1,887 1,816 1,803 1,782 1,780 (2) 7 334,474 (6) 1,774 1 2014 1,552 1,562 1,572 1,572 - 19 273,481 (8) 1,564 11 2015 1,511 1,498 1,494 (4) 23 258,241 (19) 1,475 4 2016 1,536 1,533 (3) 73 240,892 - 1,533 73 2017 2,028 571 185,198 - 2,028 571 Total $ 17,538 $ 11 $ (39) 17,499 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (16,053) - - (16,053) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance (65) 5 (1) (66) Unallocated loss adjustment expense prior year development - Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 1,420 $ 16 $ (40) 1,380 |
Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2008 $ 1,151 $ 1,493 $ 1,569 $ 1,609 $ 1,634 $ 1,644 $ 1,656 $ 1,660 $ 1,663 $ 1,665 $ - 2009 1,129 1,563 1,567 1,618 1,639 1,650 1,658 1,663 1,664 - 2010 1,205 1,669 1,736 1,772 1,794 1,803 1,808 1,810 - 2011 1,204 1,752 1,814 1,840 1,860 1,869 1,873 - 2012 1,238 1,936 1,996 2,035 2,065 2,079 - 2013 1,109 1,634 1,705 1,744 1,759 - 2014 959 1,380 1,463 1,507 - 2015 931 1,320 1,411 - 2016 857 1,344 - 2017 941 - Total $ 16,053 $ - |
Europe Casualty and Financial Lines | |
Claims Development [Line Items] | |
Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2008 $ 1,511 $ 1,615 $ 1,632 $ 1,580 $ 1,595 $ 1,599 $ 1,649 $ 1,605 $ 1,604 $ 1,604 $ - $ 24 236,384 2009 1,746 1,844 1,858 1,856 1,885 1,906 1,912 1,996 2,030 34 103 236,270 2010 1,484 1,436 1,432 1,457 1,380 1,420 1,377 1,445 68 77 274,310 2011 1,414 1,352 1,426 1,465 1,552 1,554 1,597 43 83 264,629 2012 1,224 1,193 1,150 1,222 1,263 1,232 (31) 103 217,887 2013 1,221 1,277 1,257 1,258 1,305 47 194 185,435 2014 1,280 1,267 1,302 1,303 1 340 175,630 2015 1,337 1,515 1,538 23 588 188,348 2016 1,563 1,716 153 724 221,122 2017 1,587 1,214 204,712 Total $ 15,357 $ 338 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (8,965) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 594 169 Unallocated loss adjustment expense prior year development - Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 6,986 $ 507 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 130 $ 477 $ 726 $ 961 $ 1,118 $ 1,245 $ 1,323 $ 1,375 $ 1,455 $ 1,471 2009 139 418 708 970 1,139 1,274 1,442 1,581 1,681 2010 147 420 635 808 947 1,042 1,109 1,162 2011 140 376 564 811 963 1,108 1,224 2012 121 334 484 677 809 897 2013 105 375 543 736 877 2014 86 299 494 628 2015 80 286 486 2016 140 426 2017 113 Total $ 8,965 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
Europe Property and Special Risks | |
Claims Development [Line Items] | |
Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2008 $ 633 $ 636 $ 644 $ 643 $ 632 $ 626 $ 620 $ 618 $ 614 $ 613 $ (1) $ - 41,602 2009 738 666 675 674 666 680 655 655 655 - 3 39,109 2010 788 747 719 703 712 703 706 707 1 - 40,389 2011 763 687 648 642 631 628 628 - - 39,925 2012 728 682 648 630 615 627 12 (2) 34,457 2013 914 915 842 840 842 2 (1) 32,405 2014 994 1,046 1,052 1,050 (2) 1 38,719 2015 1,226 1,219 1,248 29 12 41,799 2016 1,118 1,239 121 24 40,629 2017 1,377 390 29,313 Total $ 8,986 $ 162 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (6,971) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 7 (5) Unallocated loss adjustment expense prior year development - Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 2,022 $ 157 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 148 $ 399 $ 511 $ 546 $ 577 $ 590 $ 596 $ 596 $ 598 $ 599 2009 183 429 532 585 613 620 632 634 635 2010 187 489 584 634 672 686 690 693 2011 181 444 543 581 591 599 604 2012 154 410 511 549 572 580 2013 193 535 700 751 786 2014 220 669 885 939 2015 290 778 1,005 2016 300 894 2017 236 Total $ 6,971 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
Europe and Japan Personal Insurance | |
Claims Development [Line Items] | |
Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2008 $ 2,869 $ 2,911 $ 2,904 $ 2,908 $ 2,915 $ 2,919 $ 2,913 $ 2,916 $ 2,912 $ 2,914 $ 2 $ 3 1,577,002 2009 2,913 2,900 2,901 2,920 2,909 2,907 2,900 2,902 2,902 - 5 1,605,992 2010 2,969 3,007 3,015 3,003 3,004 2,999 3,027 3,030 3 8 1,819,631 2011 3,274 3,324 3,293 3,295 3,284 3,288 3,287 (1) 10 1,777,001 2012 2,898 2,867 2,851 2,836 2,845 2,846 1 16 1,729,298 2013 2,747 2,736 2,705 2,706 2,702 (4) 25 1,734,759 2014 2,717 2,716 2,698 2,690 (8) 45 1,789,718 2015 2,795 2,756 2,746 (10) 92 1,762,514 2016 2,734 2,692 (42) 194 1,762,768 2017 2,659 549 1,502,118 Total $ 28,468 $ (59) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (26,161) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 41 1 Unallocated loss adjustment expense prior year development - Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 2,348 $ (58) * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 1,602 $ 2,421 $ 2,655 $ 2,773 $ 2,829 $ 2,865 $ 2,880 $ 2,887 $ 2,896 $ 2,899 2009 1,627 2,412 2,656 2,765 2,821 2,850 2,867 2,879 2,886 2010 1,703 2,497 2,741 2,852 2,909 2,944 2,963 2,975 2011 1,987 2,787 3,022 3,134 3,198 3,227 3,244 2012 1,614 2,363 2,591 2,698 2,754 2,785 2013 1,503 2,246 2,462 2,569 2,625 2014 1,476 2,225 2,447 2,558 2015 1,501 2,270 2,493 2016 1,500 2,231 2017 1,465 Total $ 26,161 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
U.S. Run-Off Long Tail Insurance Lines | |
Claims Development [Line Items] | |
Schedule of Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (dollars in millions) December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2008 $ 945 $ 1,035 $ 884 $ 868 $ 909 $ 926 $ 978 $ 976 $ 983 $ 985 $ 2 $ 65 40,075 2009 553 532 544 579 635 602 599 580 576 (4) 75 16,237 2010 640 528 534 557 585 582 611 565 (46) 68 8,490 2011 534 542 576 641 676 685 700 15 97 7,798 2012 629 678 741 786 751 752 1 104 4,053 2013 482 533 589 570 528 (42) 84 2,510 2014 379 475 453 459 6 164 2,307 2015 439 523 550 27 174 2,285 2016 294 285 (9) 98 1,591 2017 197 163 607 Total $ 5,597 $ (50) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (3,830) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2008, net of reinsurance 3,616 (46) Unallocated loss adjustment expense prior year development 66 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 5,383 $ (30) * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
Schedule of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (dollars in millions) Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 133 $ 370 $ 497 $ 572 $ 657 $ 726 $ 787 $ 832 $ 846 $ 866 2009 42 134 231 286 368 409 429 447 461 2010 57 149 243 321 404 435 455 464 2011 21 140 259 385 449 532 549 2012 86 194 286 414 481 498 2013 87 154 261 321 368 2014 21 96 185 233 2015 35 132 238 2016 53 140 2017 13 Total $ 3,830 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
VARIABLE LIFE AND ANNUITY CON54
VARIABLE LIFE AND ANNUITY CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
VARIABLE LIFE AND ANNUITY CONTRACTS | |
Schedule of Account balances of variable annuity contracts with guarantees were invested in separate account investment | At December 31, (in millions) 2017 2016 Equity funds $ 48,594 $ 42,266 Bond funds 7,793 7,798 Balanced funds 27,656 25,365 Money market funds 730 840 Total $ 84,773 $ 76,269 |
Schedule of details concerning entity's GMDB exposures, by benefit type | At December 31, 2017 2016 Net Deposits Net Deposits Plus a Minimum Highest Contract Plus a Minimum Highest Contract (dollars in billions) Return Value Attained Return Value Attained Account value $ 99 $ 17 $ 91 $ 16 Net amount at risk 1 - 1 1 Average attained age of contract holders by product 63 68 63 68 Range of guaranteed minimum return rates 0%-4.5% 0%-4.5% |
Schedule of changes in GMDB liabilities for guarantees on variable contracts reflected in the general account | Years Ended December 31, (in millions) 2017 2016 2015 Balance, beginning of year $ 402 $ 491 $ 420 Reserve increase (decrease) (14) (32) 127 Benefits paid (42) (57) (56) Changes in reserves related to unrealized appreciation of investments 6 - - Balance, end of year $ 352 $ 402 $ 491 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DEBT | |
Schedule of total debt outstanding | Balance at Balance at At December 31, 2017 Range of Maturity December 31, December 31, (in millions) Interest Rate(s) Date(s) 2017 2016 Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable 0% - 8.13% 2018 - 2097 $ 20,339 $ 19,432 Junior subordinated debt 4.88% - 8.63% 2037 - 2058 841 843 AIG Japan Holdings Kabushiki Kaisha 0.28% - 0.44% 2020 - 2021 334 330 AIGLH notes and bonds payable 6.63% - 7.50% 2025 - 2029 281 281 AIGLH junior subordinated debt 7.57% - 8.50% 2030 - 2046 361 361 Total AIG general borrowings 22,156 21,247 AIG borrowings supported by assets: (a) MIP notes payable 2.72% - 2.95% 2018 356 1,099 Series AIGFP matched notes and bonds payable 1.21% - 1.30% 2046 - 2047 21 32 GIAs, at fair value 0.50% - 7.62% 2018 - 2053 2,707 2,934 Notes and bonds payable, at fair value 0.50% - 9.97% 2018 - 2040 181 494 Total AIG borrowings supported by assets 3,265 4,559 Total debt issued or guaranteed by AIG 25,421 25,806 Debt not guaranteed by AIG: Other subsidiaries notes, bonds, loans and mortgages payable 1.40% - 1.57% 2018 190 735 Debt of consolidated investments (b) 0% - 9.31% 2018 - 2065 6,029 4,371 Total debt not guaranteed by AIG 6,219 5,106 Total long term debt $ 31,640 $ 30,912 (a) AIG Parent guarantees all such debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $ 2.0 billion and $ 2.2 billion at December 31, 2017 and December 31, 2016 , respectively . This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged o r resold by the counterparties. (b ) At December 31, 2017 , includes debt of consol idated investment vehicles related to real estate investments of $ 2.5 billion, affordable housing partnership investments of $ 1.8 b illion and other securitization vehicles of $ 1.7 b illion . At December 31, 2016 , includes debt of consol idated investment vehicles related to real estate investments of $ 1.9 billio n, affordable housing partnership investments of $ 1.7 b illion and other securitization vehicles of $ 771 m illion . |
Maturities of long-term debt, excluding borrowings of debt of consolidated investments | December 31, 2017 Year Ending (in millions) Total 2018 2019 2020 2021 2022 Thereafter Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable $ 20,339 $ 1,107 $ 998 $ 1,343 $ 1,496 $ 1,507 $ 13,888 Junior subordinated debt 841 - - - - - 841 AIG Japan Holdings Kabushiki Kaisha 334 - - 115 219 - - AIGLH notes and bonds payable 281 - - - - - 281 AIGLH junior subordinated debt 361 - - - - - 361 Total AIG general borrowings 22,156 1,107 998 1,458 1,715 1,507 15,371 AIG borrowings supported by assets: MIP notes payable 356 356 - - - - - Series AIGFP matched notes and bonds payable 21 - - - - - 21 GIAs, at fair value 2,707 506 265 30 202 47 1,657 Notes and bonds payable, at fair value 181 126 - - - - 55 Total AIG borrowings supported by assets 3,265 988 265 30 202 47 1,733 Total debt issued or guaranteed by AIG 25,421 2,095 1,263 1,488 1,917 1,554 17,104 Other subsidiaries notes, bonds, loans and mortgages payable 190 190 - - - - - Total $ 25,611 $ 2,285 $ 1,263 $ 1,488 $ 1,917 $ 1,554 $ 17,104 |
Schedule of detail for uncollateralized and collateralized notes, bonds, loans and mortgages payable | Uncollateralized Collateralized At December 31, 2017 Notes/Bonds/Loans Loans and (in millions) Payable Mortgages Payable Total AIG general borrowings $ 334 $ - $ 334 Other subsidiaries notes, bonds, loans and mortgages payable * - 190 190 Total $ 334 $ 190 $ 524 * AIG does not guarantee any of these borrowings. |
Summary of Credit Facility | At December 31, 2017 Available Effective (in millions) Size Amount Expiration Date Syndicated Credit Facility $ 4,500 $ 4,500 June 2022 6/27/2017 |
CONTINGENCIES, COMMITMENTS AN56
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
Future minimum lease payments under operating leases | (in millions) 2018 $ 243 2019 179 2020 137 2021 95 2022 59 Remaining years after 2022 120 Total $ 833 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY | |
Rollforward of common stock outstanding | Common Treasury Common Stock Stock Issued Stock Outstanding Year Ended December 31, 2015 Shares, beginning of year 1,906,671,492 (530,744,521) 1,375,926,971 Shares issued - 371,806 371,806 Shares repurchased - (182,382,160) (182,382,160) Shares, end of year 1,906,671,492 (712,754,875) 1,193,916,617 Year Ended December 31, 2016 Shares, beginning of year 1,906,671,492 (712,754,875) 1,193,916,617 Shares issued - 2,069,110 2,069,110 Shares repurchased - (200,649,886) (200,649,886) Shares, end of year 1,906,671,492 (911,335,651) 995,335,841 Year Ended December 31, 2017 Shares, beginning of year 1,906,671,492 (911,335,651) 995,335,841 Shares issued - 3,386,462 3,386,462 Shares repurchased - (99,677,646) (99,677,646) Shares, end of year 1,906,671,492 (1,007,626,835) 899,044,657 |
Dividends Paid | Dividends Paid Record Date Payment Date Per Share December 8, 2017 December 22, 2017 $ 0.32 September 15, 2017 September 29, 2017 0.32 June 14, 2017 June 28, 2017 0.32 March 15, 2017 March 29, 2017 0.32 December 8, 2016 December 22, 2016 0.32 September 15, 2016 September 29, 2016 0.32 June 13, 2016 June 27, 2016 0.32 March 14, 2016 March 28, 2016 0.32 December 7, 2015 December 21, 2015 0.28 September 14, 2015 September 28, 2015 0.28 June 11, 2015 June 25, 2015 0.125 March 12, 2015 March 26, 2015 0.125 |
Repurchases Of Common Stock and Warrant | Years Ended December 31, (in millions) 2017 2016 2015 (a) Aggregate repurchases of common stock $ 6,275 $ 11,460 $ 10,691 Total number of common shares repurchased 100 201 182 Aggregate repurchases of warrants $ 3 $ 309 $ - Total number of warrants repurchased (b) - 17 - (a) T h e total number of shares of AIG Common Stock repurchased in 2015 includes (but the aggregate purchase price does not include) approximately 3.5 million shares of AIG Common Stock received in January 2015 upon the settlement of an accelerated stock repurchase ( ASR ) agreement executed in the fourth quarter of 2014. (b) In 2017, we repurchased 185,000 warrants to purchase shares of AIG Common Stock . |
Accumulated Other Comprehensive Income (Loss) | Unrealized Appreciation (Depreciation) of Fixed Unrealized Maturity Securities Appreciation Foreign Retirement on Which Other-Than- (Depreciation) Currency Plan Temporary Credit of All Other Translation Liabilities (in millions) Impairments Were Taken Investments Adjustments Adjustment Total Balance, January 1, 2015, net of tax $ 1,043 $ 12,327 $ (1,784) $ (969) $ 10,617 Change in unrealized depreciation of investments (488) (10,519) - - (11,007) Change in deferred policy acquisition costs adjustment and other (146) 1,265 - - 1,119 Change in future policy benefits 92 1,112 - - 1,204 Change in foreign currency translation adjustments - - (1,129) - (1,129) Change in net actuarial gain - - - 413 413 Change in prior service credit - - - (239) (239) Change in deferred tax asset (liability) 195 1,380 29 (51) 1,553 Total other comprehensive income (loss) (347) (6,762) (1,100) 123 (8,086) Noncontrolling interests - (1) (5) - (6) Balance, December 31, 2015, net of tax $ 696 $ 5,566 $ (2,879) $ (846) $ 2,537 Change in unrealized appreciation (depreciation) of investments (326) 931 - - 605 Change in deferred policy acquisition costs adjustment and other (19) 286 - - 267 Change in future policy benefits - (676) - - (676) Change in foreign currency translation adjustments - - 93 - 93 Change in net actuarial loss - - - (151) (151) Change in prior service credit - - - (22) (22) Change in deferred tax asset 75 298 157 47 577 Total other comprehensive income (loss) (270) 839 250 (126) 693 Noncontrolling interests - - - - - Balance, December 31, 2016, net of tax $ 426 $ 6,405 $ (2,629) $ (972) $ 3,230 Change in unrealized appreciation of investments 394 3,668 - - 4,062 Change in deferred policy acquisition costs adjustment and other 23 (1,282) - - (1,259) Change in future policy benefits - (1,102) - - (1,102) Change in foreign currency translation adjustments - - 547 - 547 Change in net actuarial gain - - - 110 110 Change in prior service cost - - - 9 9 Change in deferred tax asset (liability) (50) 4 (8) (78) (132) Total other comprehensive income 367 1,288 539 41 2,235 Noncontrolling interests - - - - - Balance, December 31, 2017, net of tax $ 793 $ 7,693 $ (2,090) $ (931) $ 5,465 |
Other comprehensive income (loss) reclassification adjustments | Unrealized Appreciation (Depreciation) of Fixed Unrealized Maturity Securities Appreciation Foreign Retirement on Which Other- (Depreciation) Currency Plan Than-Temporary Credit of All Other Translation Liabilities (in millions) Impairments Were Taken Investments Adjustments Adjustment Total December 31, 2015 Unrealized change arising during period $ (471) $ (7,068) $ (1,129) $ 285 $ (8,383) Less: Reclassification adjustments included in net income 71 1,074 - 111 1,256 Total other comprehensive income (loss), before income tax expense (benefit) (542) (8,142) (1,129) 174 (9,639) Less: Income tax expense (benefit) (195) (1,380) (29) 51 (1,553) Total other comprehensive income (loss), net of income tax expense (benefit) $ (347) $ (6,762) $ (1,100) $ 123 $ (8,086) December 31, 2016 Unrealized change arising during period $ (222) $ 1,769 $ 93 $ (344) $ 1,296 Less: Reclassification adjustments included in net income 123 1,228 - (171) 1,180 Total other comprehensive income (loss), before income tax expense (benefit) (345) 541 93 (173) 116 Less: Income tax benefit (75) (298) (157) (47) (577) Total other comprehensive income (loss), net of income tax benefit $ (270) $ 839 $ 250 $ (126) $ 693 December 31, 2017 Unrealized change arising during period $ 467 $ 2,052 $ 547 $ 24 $ 3,090 Less: Reclassification adjustments included in net income 50 768 - (95) 723 Total other comprehensive income, before income tax expense 417 1,284 547 119 2,367 Less: Income tax expense (benefit) 50 (4) 8 78 132 Total other comprehensive income, net of income tax expense (benefit) $ 367 $ 1,288 $ 539 $ 41 $ 2,235 |
Schedule of effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income | Amount Reclassified from Accumulated Other Years Ended December 31, Comprehensive Income Affected Line Item in the (in millions) 2017 2016 2015 Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken Investments $ 50 $ 123 $ 71 Other realized capital gains Total 50 123 71 Unrealized appreciation (depreciation) of all other investments Investments 463 935 1,054 Other realized capital gains Deferred acquisition costs adjustment 305 293 3 Amortization of deferred policy acquisition costs Future policy benefits - - 17 Policyholder benefits and losses incurred Total 768 1,228 1,074 Change in retirement plan liabilities adjustment Prior-service credit 5 15 214 * Actuarial losses (100) (186) (103) * Total (95) (171) 111 Total reclassifications for the period $ 723 $ 1,180 $ 1,256 * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 21 to the Consolidated Financial Statements. |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE (EPS) | |
Computation of basic and diluted EPS | Years Ended December 31, (dollars in millions, except per share data) 2017 2016 2015 Numerator for EPS: Income (loss) from continuing operations $ (6,060) $ (259) $ 2,222 Less: Net income from continuing operations attributable to noncontrolling interests 28 500 26 Income (loss) attributable to AIG common shareholders from continuing operations (6,088) (759) 2,196 Income (loss) from discontinued operations, net of income tax expense 4 (90) - Net income (loss) attributable to AIG common shareholders $ (6,084) $ (849) $ 2,196 Denominator for EPS: Weighted average shares outstanding — basic 930,561,286 1,091,085,131 1,299,825,350 Dilutive shares - - 34,639,533 Weighted average shares outstanding — diluted (a)(b) 930,561,286 1,091,085,131 1,334,464,883 Income (loss) per common share attributable to AIG: Basic: Income (loss) from continuing operations $ (6.54) $ (0.70) $ 1.69 Income from discontinued operations $ - $ (0.08) $ - Income (loss) attributable to AIG $ (6.54) $ (0.78) $ 1.69 Diluted: Income (loss) from continuing operations $ (6.54) $ (0.70) $ 1.65 Income from discontinued operations $ - $ (0.08) $ - Income (loss) attributable to AIG $ (6.54) $ (0.78) $ 1.65 (a) Shares in the diluted EPS calculation represent basic shares for 2017 and 2016 due to the net losses in those period s . The shares excluded from the calculation were 22,412,682 shares and 30,326,772 shares for the years ended December 31, 2017 and 2016, respectively. (b) Dilutive shares included 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 were 1.7 million, 0.2 million and 0.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
STATUTORY FINANCIAL DATA AND 59
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | |
Schedule of statutory capital and surplus and net income (loss) for AIG property casualty and AIG life and retirement operations in accordance with statutory accounting practices | (in millions) 2017 2016 2015 Years Ended December 31, Statutory net income (loss) (a)(b)(c) : General Insurance companies : Domestic (c) $ (622) $ 260 $ 1,444 Foreign (333) (1,326) 594 Total General Insurance companies $ (955) $ (1,066) $ 2,038 Life and Retirement companies : Domestic $ 932 $ 2,252 $ 2,200 Foreign 21 47 (5) Total Life and Retirement companies $ 953 $ 2,299 $ 2,195 At December 31, Statutory capital and surplus (a)(b)(c) : General Insurance companies : Domestic (c) $ 21,514 $ 21,665 Foreign 11,695 12,587 Total General Insurance companies $ 33,209 $ 34,252 Life and Retirement companies : Domestic $ 11,872 $ 12,314 Foreign 446 490 Total Life and Retirement companies $ 12,318 $ 12,804 Aggregate minimum required statutory capital and surplus : General Insurance companies : Domestic $ 5,307 $ 5,183 Foreign 6,166 7,257 Total General Insurance companies $ 11,473 $ 12,440 Life and Retirement companies : Domestic $ 3,148 $ 3,088 Foreign 121 234 Total Life and Retirement companies $ 3,269 $ 3,322 (a) Excludes discontinued operations and other divested businesses. Statutory capital and surplus and net income (loss) with respect to foreign operations are as of November 30. (b) In aggregate, the 201 6 General Insurance c ompanies and Life and Retirement c ompanies statutory net income increased by $ 479 million and the 201 6 General Insurance c ompanies and Life and Retirement c ompanies statutory capital and surplus decreased by $ 305 m illion, compare d to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 201 6 , due to finalization of statutory filings. (c) General Insurance companies recognized $ 200 million of capital contributions from AIG Parent in their statutory financial statements as of December 31, 201 6 related to the reserve strengthening in the fourth quarter . This capital contribution was received in February 2017 . |
SHARE-BASED AND OTHER COMPENS60
SHARE-BASED AND OTHER COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED AND OTHER COMPENSATION PLANS | |
Schedule of share-based compensation expense recognized in Consolidated Statements of Income | Years Ended December 31, (in millions) 2017 2016 2015 Share-based compensation expense - pre-tax * $ 353 $ 237 $ 365 Share-based compensation expense - after tax 229 154 237 * We recognized $ 141 million, $ 105 million and $ 147 million for immediately vested stock-settled awards issued to retirement eligible employees in 2017 , 2016 and 2015 , respectively. We also recognized $ 40 million of excess tax benefits due to share settlements occurring in 2017. |
Schedule of assumptions used to estimate the fair value of PSUs based on AIG's TSR | 2017 2016 2015 Expected dividend yield (a) 2.37 % 2.17 % 1.78 % Expected volatility (b) 17.58 % 24.55 % 22.71 % Risk-free interest rate (c) 2.00 % 1.30 % 1.01 % (a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date. (b) The expected volatility is based on the historical volatility of the stock price for the 360 most recent trading days prior to the valuation date estimated by Bloomberg Professional service . (c) The risk-free interest rate is the continuousl y compounded interest rate for the term between the valuation dat e and the end of the performance period that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date |
Summary of outstanding share-settled LTI awards | Weighted Average As of or for the Year Number of Units Grant-Date Fair Value Ended December 31, 2017 (b) 2017 LTI 2016 LTI 2015 LTI 2014 LTI 2013 LTI 2017 LTI 2016 LTI 2015 LTI 2014 LTI 2013 LTI Unvested, beginning of year - 2,588,598 2,176,555 1,732,616 1,581,904 $ - $ 51.12 $ 55.52 $ 48.88 $ 38.03 Granted 3,996,978 2,806 - 122,378 - 64.83 36.49 - 48.57 - Vested (c) (971,945) (182,938) (201,256) (957,045) (968,930) 64.09 60.29 59.04 48.89 37.98 Forfeited (84,987) (138,263) (121,456) (74,638) (36,764) 65.24 51.10 55.01 49.02 39.14 Unvested, at modification date 2,940,046 2,270,203 1,853,843 823,311 576,210 $ 65.07 $ 50.37 $ 55.17 $ 48.81 $ 38.04 Cancelled at modification date (1,082,417) (2,951,417) (2,229,873) - - 67.47 52.00 54.56 - - Granted at modification date 1,082,417 2,646,866 2,094,629 - - 62.13 62.13 62.13 - - Sub-total, net impact of modification - (304,551) (135,244) - - - 55.01 56.33 - - Vested - post-modification (c) (766,931) (495,222) (424,788) - - 64.01 62.13 61.82 - - Forfeited - post-modification - (2,685) (2,023) - - - 62.13 62.13 - - Unvested, end of year (d) 2,173,115 1,467,745 1,291,788 823,311 576,210 $ 62.78 $ 60.90 $ 60.02 $ 48.81 $ 38.04 (a) Excludes stock options and DSUs, which are discussed under Stock Options and Non-Employee Plan, respectively. (b) Except for the 2013 and 2014 LTI award, PSUs represent target amount granted, and does not reflect potential increases or decreases that could result from the final outcome of the performance goals for the respective awards, which is determined in the quarter after the applicable performance period ends. (c) Also r eflects units that vest as a result of an accelerated vesting event that o ccurred prior to the specified vesting date. (d) At December 31, 2017 , the total unrecognized compe nsation cost for outstanding LTI awards was $ 237 million and the weighted-average and expected period of years over w hich that cost is expected to be recognized are 1.02 years and 3 years . |
Schedule of stock option activity | The following table provides a roll forward of stock option activity: Weighted Average Aggregate As of or for the Year Weighted Average Remaining Intrinsic Values Ended December 31, 2017 Units Exercise Price Contractual Life (in millions) Outstanding, beginning of year - $ - Granted 2,500,000 62.90 Exercised - - Forfeited or expired - - Outstanding, end of year 2,500,000 $ 62.90 6.48 $ - Exercisable, end of year - $ - - $ - |
Schedule of weighted-average assumptions | The following weighted-average assumptions were used for stock op tions granted : 2017 Expected annual dividend yield (a) 2.03 % Expected volatility (b) 20.96 % Risk-free interest rate (c) 1.94 % Expected term (d) 4.5 years (a) The dividend yield is based on the current quarterly dividend payment of $0.32 and the Valuation Date stock price. (b) The expected volatility is the 1080-day implied volatility as seen in the open marketplace on the Valuation Date. (c) The risk-free interest rate range is 1.76 percent to 2.14 percent. (d) The contractual term of the option is 7 years from the grant date . |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of funded status of the plans reconciled to the amount reported in the balance sheets | As of or for the Years Ended Pension Postretirement December 31, U.S. Plans * Non-U.S. Plans * U.S. Plans Non-U.S. Plans (in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Change in projected benefit obligation: Benefit obligation, beginning of year $ 4,948 $ 5,324 $ 1,246 $ 1,146 $ 196 $ 208 $ 80 $ 75 Service cost 11 19 29 31 2 2 3 3 Interest cost 166 181 16 21 6 7 3 3 Actuarial (gain) loss 372 118 (29) 98 - (2) (2) - Benefits paid: AIG assets (19) (24) (10) (12) (13) (14) (1) (1) Plan assets (161) (332) (26) (35) - - - - Plan amendment - - - 1 - - (6) - Curtailments - - (7) (2) - (1) - - Settlements (226) (338) (12) (16) - - - - Foreign exchange effect - - 37 19 - - 1 - Other - - (42) (5) (1) (4) (15) - Projected benefit obligation, end of year $ 5,091 $ 4,948 $ 1,202 $ 1,246 $ 190 $ 196 $ 63 $ 80 Change in plan assets: Fair value of plan assets, beginning of year $ 3,843 $ 4,359 $ 803 $ 773 $ - $ - $ - $ - Actual return on plan assets, net of expenses 584 154 67 19 - - - - AIG contributions 329 24 60 71 13 14 1 1 Benefits paid: AIG assets (19) (24) (10) (12) (13) (14) (1) (1) Plan assets (161) (332) (26) (35) - - - - Settlements (226) (338) (12) (16) - - - - Foreign exchange effect - - 19 6 - - - - Dispositions - - - (4) - - - - Other - - (26) 1 - - - - Fair value of plan assets, end of year $ 4,350 $ 3,843 $ 875 $ 803 $ - $ - $ - $ - Funded status, end of year $ (741) $ (1,105) $ (327) $ (443) $ (190) $ (196) $ (63) $ (80) Amounts recognized in the balance sheet: Assets $ - $ - $ 68 $ 53 $ - $ - $ - $ - Liabilities (741) (1,105) (395) (496) (190) (196) (63) (80) Total amounts recognized $ (741) $ (1,105) $ (327) $ (443) $ (190) $ (196) $ (63) $ (80) Pre-tax amounts recognized in Accumulated other comprehensive income: Net gain (loss) $ (1,373) $ (1,405) $ (170) $ (251) $ 17 $ 17 $ (11) $ (15) Prior service (cost) credit - - (22) (28) 1 2 5 - Total amounts recognized $ (1,373) $ (1,405) $ (192) $ (279) $ 18 $ 19 $ (6) $ (15) * Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $ 272 million and $ 278 million for the U.S. at December 31, 2017 and 2016 , respectively, and $ 211 million and $ 199 million for the non-U.S at December 31, 2017 and 2016 , respectively. |
Schedule of accumulated benefit obligations | At December 31, (in millions) 2017 2016 U.S. pension benefit plans $ 5,091 $ 4,948 Non-U.S. pension benefit plans $ 1,188 $ 1,215 |
Schedule of projected benefit obligation in excess of the plan assets and the accumulated benefit obligation in excess of the plan assets | At December 31, PBO Exceeds Fair Value of Plan Assets ABO Exceeds Fair Value of Plan Assets U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2017 2016 2017 2016 2017 2016 2017 2016 Projected benefit obligation $ 5,091 $ 4,948 $ 1,054 $ 1,121 $ 5,091 $ 4,948 $ 991 $ 1,029 Accumulated benefit obligation 5,091 4,948 979 1,016 5,091 4,948 979 1,009 Fair value of plan assets 4,350 3,843 596 545 4,350 3,843 596 536 |
Schedule of components of net periodic benefit cost | Years Ended December 31, Pension Postretirement U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost: Service cost * $ 11 $ 19 $ 192 $ 29 $ 31 $ 43 $ 2 $ 2 $ 5 $ 3 $ 3 $ 3 Interest cost 166 181 220 16 21 25 6 7 8 3 3 3 Expected return on assets (266) (292) (295) (24) (26) (25) - - - - - - Amortization of prior service credit - - (22) - - (2) (1) (12) (11) (1) - (1) Amortization of net (gain) loss 26 25 92 12 7 9 (1) (1) - 1 1 - Net periodic benefit cost (credit) (63) (67) 187 33 33 50 6 (4) 2 6 7 5 Curtailment gain - - (179) (6) (6) (1) - (1) - (2) - - Settlement loss 60 149 - 1 2 1 - - - - - - Net benefit cost (credit) $ (3) $ 82 $ 8 $ 28 $ 29 $ 50 $ 6 $ (5) $ 2 $ 4 $ 7 $ 5 Total recognized in Accumulated other comprehensive income (loss) $ 32 $ (82) $ 143 $ 87 $ (101) $ 38 $ (2) $ (7) $ 12 $ 9 $ 1 $ (9) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 35 $ (164) $ 135 $ 59 $ (130) $ (12) $ (8) $ (2) $ 10 $ 5 $ (6) $ (14) * Reflects administrative fees for the U.S. pension plans. |
Schedule of weighted average assumptions used to determine the benefit obligations | Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) December 31, 2017 Discount rate 3.61 % 1.60 % 3.53 % 3.59 % Rate of compensation increase N/A (b) 2.27 % N/A 3.00 % December 31, 2016 Discount rate 4.14 % 1.50 % 4.02 % 3.95 % Rate of compensation increase N/A (b) 2.50 % N/A 3.38 % (a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits. (b) Compensation increases are no longer applicable due to the plan freeze that became effective January 1, 2016. |
Schedule of assumed health care cost trend rates | At December 31, 2017 2016 Following year: Medical (before age 65) 6.12% 6.31% Medical (age 65 and older) 5.00% 5.00% Ultimate rate to which cost increase is assumed to decline 4.50% 4.50% Year in which the ultimate trend rate is reached: Medical (before age 65) 2038 2038 Medical (age 65 and older) 2038 2038 |
Schedule of A one percent point change in the assumed healthcare cost trend rate | One Percent One Percent At December 31, Increase Decrease (in millions) 2017 2016 2017 2016 U.S. plans $ 4 $ 4 $ (4) $ (3) Non-U.S. plans $ 14 $ 19 $ (10) $ (14) |
Schedule of weighted average assumptions used to determine the net periodic benefit costs | Pension Postretirement U.S. Plans Non-U.S. Plans * U.S. Plans Non-U.S. Plans * For the Year Ended December 31, 2017 Discount rate 4.15 % 1.50 % 4.01 % 3.95 % Rate of compensation increase N/A 2.50 % N/A 3.38 % Expected return on assets 7.00 % 2.92 % N/A N/A For the Year Ended December 31, 2016 Discount rate 4.33 % 2.17 % 4.21 % 4.09 % Rate of compensation increase N/A 2.64 % N/A 3.43 % Expected return on assets 7.00 % 3.28 % N/A N/A For the Year Ended December 31, 2015 Discount rate 3.94 % 2.33 % 3.77 % 4.04 % Rate of compensation increase 3.40 % 2.89 % N/A 3.29 % Expected return on assets 7.25 % 3.33 % N/A N/A * The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits. |
Schedule of plan assets based on the level within the fair value hierarchy in which the fair value measurement falls | U.S. Plans Non-U.S. Plans (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total At December 31, 2017 Assets: Cash and cash equivalents $ 397 $ - $ - $ 397 $ 51 $ - $ - $ 51 Equity securities: U.S. (a) 1,300 - - 1,300 - - - - International (b) 265 - - 265 362 64 - 426 Fixed maturity securities: U.S. investment grade (c) - 1,006 12 1,018 - - - - International investment grade (c) - 204 - 204 - 97 - 97 U.S. and international high yield (d) - 212 - 212 - 171 - 171 Mortgage and other asset-backed securities (e) - 142 - 142 - - - - Other fixed maturity securities - - - - - 16 - 16 Other investment types (g) : Direct private equity (f) - - 15 15 - - - - Insurance contracts - 20 - 20 - - 113 113 Total $ 1,962 $ 1,584 $ 27 $ 3,573 $ 413 $ 348 $ 113 $ 874 At December 31, 2016 Assets: Cash and cash equivalents $ 228 $ - $ - $ 228 $ 50 $ - $ - $ 50 Equity securities: U.S. (a) 838 1 - 839 - - - - International (b) 377 - - 377 298 58 - 356 Fixed maturity securities: U.S. investment grade (c) - 1,174 2 1,176 - - - - International investment grade (c) - - - - - 90 - 90 U.S. and international high yield (d) - 218 - 218 - 186 - 186 Mortgage and other asset-backed securities (e) - - - - - - - - Other fixed maturity securities - - - - - 13 - 13 Other investment types (g) : Direct private equity (f) - - 24 24 - - - - Insurance contracts - 21 - 21 - - 108 108 Total $ 1,443 $ 1,414 $ 26 $ 2,883 $ 348 $ 347 $ 108 $ 803 (a) Includes passive and active U.S. Large Cap and Small Cap strategies, as well as mutual funds, and exchange traded funds. (b) Includes investments in companies in emerging and developed markets. (c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade. (e) Comprised primarily of i nvestments in U.S. asset backed securities and collateralized loan obligations . (f) Comprised of private capital financing including private debt and private equity securities. (g) Excludes investments that are measured at fair value using the NAV per shar e (or its equivalent), which totaled $ 777 million and $ 960 million at December 31, 2017 and 2016 , respectively. |
Schedule of changes in Level 3 plan assets measured at fair value | Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2017 Beginning Unrealized Transfers Transfers at End Instruments Held (in millions) of year Gains (Losses) Purchases Sales Issuances Settlements In Out of year at End of year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 2 $ - $ 17 $ (7) $ - $ - $ - $ - $ 12 $ 2 Direct private equity 24 (3) 1 (7) - - - - 15 (1) Total $ 26 $ (3) $ 18 $ (14) $ - $ - $ - $ - $ 27 $ 1 Non-U.S. Plan Assets: Other fixed maturity securities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Insurance contracts 108 4 1 - - - - - 113 - Total $ 108 $ 4 $ 1 $ - $ - $ - $ - $ - $ 113 $ - Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2016 Beginning Unrealized Transfers Transfers at End Instruments Held (in millions) of year Gains (Losses) Purchases Sales Issuances Settlements In Out of year at End of year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 9 $ 1 $ 2 $ (10) $ - $ - $ - $ - $ 2 $ - Direct private equity 28 (4) 4 (4) - - - - 24 (4) Total $ 37 $ (3) $ 6 $ (14) $ - $ - $ - $ - $ 26 $ (4) Non-U.S. Plan Assets: Other fixed maturity securities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Insurance contracts 95 12 1 - - - 2 (2) 108 - Total $ 95 $ 12 $ 1 $ - $ - $ - $ 2 $ (2) $ 108 $ - |
Schedule of expected future benefit payments, net of participants' contributions | Pension Postretirement U.S. Non-U.S. U.S. Non-U.S. (in millions) Plans Plans Plans Plans 2018 $ 291 $ 36 $ 13 $ 1 2019 287 40 13 1 2020 297 42 13 1 2021 294 43 13 2 2022 291 41 13 2 2023-2027 1,407 235 60 11 |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of asset allocation percentage by major asset class and target allocation | Target Actual Actual At December 31, 2018 2017 2016 Asset class: Equity securities 46 % 45 % 43 % Fixed maturity securities 44 % 36 % 36 % Other investments 10 % 19 % 21 % Total 100 % 100 % 100 % |
Non U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of asset allocation percentage by major asset class and target allocation | Target Actual Actual At December 31, 2018 2017 2016 Asset class: Equity securities 30 % 49 % 44 % Fixed maturity securities 52 % 32 % 36 % Other investments 17 % 13 % 14 % Cash and cash equivalents 1 % 6 % 6 % Total 100 % 100 % 100 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES | |
Schedule of income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location | Years Ended December 31, (in millions) 2017 2016 2015 U.S. $ 1,940 $ 1,041 $ 1,950 Foreign (474) (1,115) 1,331 Total $ 1,466 $ (74) $ 3,281 |
Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations | Years Ended December 31, (in millions) 2017 2016 2015 Foreign and U.S. components of actual income tax expense: Foreign: Current $ 209 $ 436 $ 391 Deferred 25 (121) (95) U.S.: Current 427 140 429 Deferred 6,865 (270) 334 Total $ 7,526 $ 185 $ 1,059 |
Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate | 2017 2016 2015 Pre-Tax Tax Percent of Pre-Tax Tax Percent of Tax Percent of Years Ended December 31, Income Expense/ Pre-Tax Income Expense/ Pre-Tax Pre-Tax Expense/ Pre-Tax (dollars in millions) (Loss) (Benefit) Income (Loss) (Loss) (Benefit) Income (Loss) Income (Benefit) Income U.S. federal income tax at statutory rate $ 1,476 $ 517 35.0 % $ (159) $ (56) 35.0 % $ 3,281 $ 1,148 35.0 % Adjustments: Tax exempt interest (111) (7.5) (178) 111.9 (195) (5.9) Uncertain tax positions 660 44.7 268 (168.6) 195 5.9 Reclassifications from accumulated other comprehensive income (184) (12.5) (132) 83.0 (127) (3.9) Dispositions of Subsidiaries 17 1.2 118 (74.2) - - Tax Attribute Restoration - - (164) 103.1 - - Non-controlling Interest (7) (0.5) (81) 50.9 - - Non-deductible transfer pricing charges 35 2.4 102 (64.2) 97 3.0 Dividends received deduction (90) (6.1) (75) 47.2 (72) (2.2) Effect of foreign operations 69 4.7 234 (147.2) (58) (1.8) Share-based compensation payments excess tax deduction (40) (2.7) - - - - State income taxes (9) (0.6) 23 (14.5) 34 1.0 Impact of Tax Act 6,687 453.0 - - - - Other (58) (3.9) 13 (8.2) (73) (2.2) Effect of discontinued operations 3 0.2 35 (22.0) - - Valuation allowance: Continuing operations 43 2.9 83 (52.2) 110 3.4 Consolidated total amounts 1,476 7,532 510.3 (159) 190 (119.5) 3,281 1,059 32.3 Amounts attributable to discontinued operations 10 6 60.0 (85) 5 (5.9) - - - Amounts attributable to continuing operations $ 1,466 $ 7,526 513.4 % $ (74) $ 185 (250.0) % $ 3,281 $ 1,059 32.3 % |
Schedule of components of the net deferred tax asset | December 31, (in millions) 2017 2016 Deferred tax assets: Losses and tax credit carryforwards $ 11,931 $ 16,448 Basis differences on investments 2,133 4,985 Life policy reserves 1,996 3,040 Accruals not currently deductible, and other 532 1,128 Investments in foreign subsidiaries 159 103 Loss reserve discount 526 1,151 Loan loss and other reserves 34 39 Unearned premium reserve reduction 566 924 Fixed assets and intangible assets 442 478 Other 731 710 Employee benefits 601 1,171 Total deferred tax assets 19,651 30,177 Deferred tax liabilities: Deferred policy acquisition costs (2,313) (3,790) Unrealized gains related to available for sale debt securities (2,151) (2,844) Total deferred tax liabilities (4,464) (6,634) Net deferred tax assets before valuation allowance 15,187 23,543 Valuation allowance (1,374) (2,831) Net deferred tax assets (liabilities) $ 13,813 $ 20,712 |
Schedule of consolidated income tax group credits carryforwards | December 31, 2017 Tax Expiration (in millions) Gross Effected Periods Net operating loss carryforwards $ 35,592 $ 7,474 2028-2037 Capital loss carryforwards 305 64 2022 Foreign tax credit carryforwards 4,481 2018-2022 Other carryforwards 1,154 Various Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis 13,173 Unrecognized tax benefit (2,543) Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis * $ 10,630 * Includes other carryforwards, e.g. general business credits, of $ 118 million on a U.S. GAAP basis. |
Schedule of consolidated income tax group tax losses carryforwards | December 31, 2017 Tax Expiration (in millions) Gross Effected Periods Net operating loss carryforwards $ 35,592 $ 7,474 2028-2037 Capital loss carryforwards 305 64 2022 Foreign tax credit carryforwards 4,481 2018-2022 Other carryforwards 1,154 Various Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis 13,173 Unrecognized tax benefit (2,543) Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis * $ 10,630 * Includes other carryforwards, e.g. general business credits, of $ 118 million on a U.S. GAAP basis. |
Schedule of net deferred tax assets (liabilities) | December 31, (in millions) 2017 2016 Net U.S. consolidated return group deferred tax assets $ 15,603 $ 24,134 Net deferred tax assets (liabilities) in accumulated other comprehensive income (2,070) (2,384) Valuation allowance (86) (874) Subtotal 13,447 20,876 Net foreign, state and local deferred tax assets 1,874 2,413 Valuation allowance (1,288) (1,957) Subtotal 586 456 Subtotal - Net U.S., foreign, state and local deferred tax assets 14,033 21,332 Net foreign, state and local deferred tax liabilities (220) (620) Total AIG net deferred tax assets (liabilities) $ 13,813 $ 20,712 |
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | Years Ended December 31, (in millions) 2017 2016 2015 Gross unrecognized tax benefits, beginning of year $ 4,530 $ 4,331 $ 4,395 Increases in tax positions for prior years 210 235 162 Decreases in tax positions for prior years (33) (39) (209) Increases in tax positions for current year - 3 - Lapse in statute of limitations - - (4) Settlements - - (13) Activity of discontinued operations - - - Gross unrecognized tax benefits, end of year $ 4,707 $ 4,530 $ 4,331 |
Schedule of tax years that remain subject to examination by major tax jurisdictions | At December 31, 2017 Open Tax Years Major Tax Jurisdiction United States 2000-2016 Australia 2013-2016 France 2015-2016 Japan 2011-2016 Korea 2012-2016 Singapore 2012-2016 United Kingdom 2015-2016 |
QUARTERLY FINANCIAL INFORMATI63
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
Consolidated Statements of Income (Loss) | Three Months Ended March 31, June 30, September 30, December 31, (dollars in millions, except per share data) 2017 2016 2017 2016 2017 2016 2017 2016 Total revenues $ 12,632 $ 11,779 $ 12,502 $ 14,724 $ 11,751 $ 12,854 $ 12,635 $ 13,010 Income (loss) from continuing operations before income taxes * 1,727 (214) 1,667 2,858 (2,803) 737 875 (3,455) Income (loss) from discontinued operations, net of income taxes - (47) 8 (10) (1) 3 (3) (36) Net income (loss) 1,211 (203) 1,118 1,924 (1,713) 436 (6,672) (2,506) Net income (loss) from continuing operations attributable to noncontrolling interests 26 (20) (12) 11 26 (26) (12) 535 Net income (loss) attributable to AIG * $ 1,185 $ (183) $ 1,130 $ 1,913 $ (1,739) $ 462 $ (6,660) $ (3,041) Income (loss) per common share attributable to AIG: Basic: Income (loss) from continuing operations $ 1.21 $ (0.12) $ 1.21 $ 1.73 $ (1.91) $ 0.43 $ (7.33) $ (2.93) Income (loss) from discontinued operations $ - $ (0.04) $ 0.01 $ (0.01) $ - $ - $ - $ (0.03) Diluted: Income (loss) from continuing operations $ 1.18 $ (0.12) $ 1.18 $ 1.69 $ (1.91) $ 0.42 $ (7.33) $ (2.93) Income (loss) from discontinued operations $ - $ (0.04) $ 0.01 $ (0.01) $ - $ - $ - $ (0.03) Weighted average shares outstanding: Basic 980,777,243 1,156,548,459 925,751,084 1,113,587,927 908,667,044 1,071,295,892 908,115,499 1,023,886,592 Diluted 1,005,315,030 1,156,548,459 948,248,771 1,140,045,973 908,667,044 1,102,400,770 908,115,499 1,023,886,592 Noteworthy quarterly items - (income) expense: Other-than-temporary impairments 68 204 67 108 88 102 37 145 Net (gain) loss on sale of divested businesses 100 2 60 (225) 13 (128) (241) (194) Federal and foreign valuation allowance for deferred tax assets (13) (37) (8) 35 24 (2) 40 87 Net (gain) loss on extinguishment of debt (1) 83 (4) 7 1 (14) (1) (2) Prior year unfavorable (favorable) development 61 (66) 391 7 901 273 212 5,574 Restructuring and other costs 181 188 47 90 31 210 154 206 Impact of Tax Act - - - - - - 6,687 - * For the three months ended December 31, 2016, we recorded out of period adjustments related to prior periods that increased Net loss attributable to AIG by $154 million, increased AIG’s Loss from continuing operations before income taxes by $12 million and decreased adjusted pre-tax income by $1 million. The out of period adjustments are primarily related to income tax liabilities and ceded loss adjustment expenses. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the three-month periods ended September 30, 2016, June 30, 2016 and March 31, 2016 would have decreased by $65 million, increased by $66 million and increased by $19 million, respectively. |
INFORMATION PROVIDED IN CONNE64
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables) | 12 Months Ended |
Dec. 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 December 31, 2017 Assets: Short-term investments $ 2,541 $ - $ 11,559 $ (3,714) $ 10,386 Other investments (a) 6,004 - 305,902 - 311,906 Total investments 8,545 - 317,461 (3,714) 322,292 Cash 3 20 2,339 - 2,362 Loans to subsidiaries (b) 35,004 - 517 (35,521) - Investment in consolidated subsidiaries (b) 40,135 30,359 - (70,494) - Other assets, including deferred income taxes 16,016 170 159,594 (2,133) 173,647 Assets held for sale - - - - - Total assets $ 99,703 $ 30,549 $ 479,911 $ (111,862) $ 498,301 Liabilities: Insurance liabilities $ - $ - $ 282,105 $ - $ 282,105 Long-term debt 21,557 642 9,441 - 31,640 Other liabilities, including intercompany balances (a) 12,458 143 112,275 (6,028) 118,848 Loans from subsidiaries (b) 517 - 35,004 (35,521) - Liabilities held for sale - - - - - Total liabilities 34,532 785 438,825 (41,549) 432,593 Total AIG shareholders’ equity 65,171 29,764 40,549 (70,313) 65,171 Non-redeemable noncontrolling interests - - 537 - 537 Total equity 65,171 29,764 41,086 (70,313) 65,708 Total liabilities and equity $ 99,703 $ 30,549 $ 479,911 $ (111,862) $ 498,301 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 Year Ended December 31, 2017 Revenues: Equity in earnings of consolidated subsidiaries * $ (149) $ 1,978 $ - $ (1,829) $ - Other income 891 - 48,802 (173) 49,520 Total revenues 742 1,978 48,802 (2,002) 49,520 Expenses: Interest expense 949 50 176 (7) 1,168 Loss on extinguishment of debt 2 - (7) - (5) Other expenses 952 2 46,116 (179) 46,891 Total expenses 1,903 52 46,285 (186) 48,054 Income (loss) from continuing operations before income tax expense (benefit) (1,161) 1,926 2,517 (1,816) 1,466 Income tax expense (benefit) 4,922 (3) 2,607 - 7,526 Income (loss) from continuing operations (6,083) 1,929 (90) (1,816) (6,060) Income (loss) from discontinued operations, net of income taxes (1) - 5 - 4 Net income (loss) (6,084) 1,929 (85) (1,816) (6,056) Less: Net income from continuing operations attributable to noncontrolling interests - - 28 - 28 Net income (loss) attributable to AIG $ (6,084) $ 1,929 $ (113) $ (1,816) $ (6,084) Year Ended December 31, 2016 Revenues: Equity in earnings of consolidated subsidiaries * $ (1,269) $ (197) $ - $ 1,466 $ - Other income 516 5 52,875 (1,029) 52,367 Total revenues (753) (192) 52,875 437 52,367 Expenses: Interest expense 988 51 227 (6) 1,260 Loss on extinguishment of debt 77 - (3) - 74 Other expenses 295 16 51,819 (1,023) 51,107 Total expenses 1,360 67 52,043 (1,029) 52,441 Income (loss) from continuing operations before income tax expense (benefit) (2,113) (259) 832 1,466 (74) Income tax expense (benefit) (1,301) (21) 1,507 - 185 Income (loss) from continuing operations (812) (238) (675) 1,466 (259) Loss from discontinued operations, net of income taxes (37) - (53) - (90) Net income (loss) (849) (238) (728) 1,466 (349) Less: Net income (loss) from continuing operations attributable to noncontrolling interests - - 500 - 500 Net income (loss) attributable to AIG $ (849) $ (238) $ (1,228) $ 1,466 $ (849) Year Ended December 31, 2015 Revenues: Equity in earnings of consolidated subsidiaries * $ 3,954 $ 1,936 $ - $ (5,890) $ - Other income 88 - 58,953 (714) 58,327 Total revenues 4,042 1,936 58,953 (6,604) 58,327 Expenses: Other interest expense 1,049 58 302 (128) 1,281 Loss on extinguishment of debt 703 - 46 7 756 Other expenses 1,178 44 52,374 (587) 53,009 Total expenses 2,930 102 52,722 (708) 55,046 Income (loss) from continuing operations before income tax expense (benefit) 1,112 1,834 6,231 (5,896) 3,281 Income tax expense (benefit) (1,086) (73) 2,218 - 1,059 Income (loss) from continuing operations 2,198 1,907 4,013 (5,896) 2,222 Income (loss) from discontinued operations, net of income taxes (2) - 2 - - Net income (loss) 2,196 1,907 4,015 (5,896) 2,222 Less: Net income from continuing operations attributable to noncontrolling interests - - 26 - 26 Net income (loss) attributable to AIG $ 2,196 $ 1,907 $ 3,989 $ (5,896) $ 2,196 * Eliminated in consolidation. |
Condensed Consolidating Statements of Comprehensive Income (Loss) | American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2017 Net income (loss) $ (6,084) $ 1,929 $ (85) $ (1,816) $ (6,056) Other comprehensive income (loss) 2,235 7,851 17,857 (25,708) 2,235 Comprehensive income (loss) (3,849) 9,780 17,772 (27,524) (3,821) Total comprehensive income attributable to noncontrolling interests - - 28 - 28 Comprehensive income (loss) attributable to AIG $ (3,849) $ 9,780 $ 17,744 $ (27,524) $ (3,849) Year Ended December 31, 2016 Net income (loss) $ (849) $ (238) $ (728) $ 1,466 $ (349) Other comprehensive income (loss) 693 4,080 52,153 (56,233) 693 Comprehensive income (loss) (156) 3,842 51,425 (54,767) 344 Total comprehensive income attributable to noncontrolling interests - - 500 - 500 Comprehensive income (loss) attributable to AIG $ (156) $ 3,842 $ 50,925 $ (54,767) $ (156) Year Ended December 31, 2015 Net income (loss) $ 2,196 $ 1,907 $ 4,015 $ (5,896) $ 2,222 Other comprehensive income (loss) (8,080) 2,320 54,757 (57,083) (8,086) Comprehensive income (loss) (5,884) 4,227 58,772 (62,979) (5,864) Total comprehensive income attributable to noncontrolling interests - - 20 - 20 Comprehensive income (loss) attributable to AIG $ (5,884) $ 4,227 $ 58,752 $ (62,979) $ (5,884) |
Condensed Consolidating Statements of Cash Flows | American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2017 Net cash (used in) provided by operating activities $ 36 $ 1,413 $ (7,426) $ (2,608) $ (8,585) Cash flows from investing activities: Sales of investments 5,821 - 75,228 (3,758) 77,291 Sales of divested businesses, net 40 - 752 - 792 Purchase of investments (2,465) - (64,539) 3,758 (63,246) Loans to subsidiaries – net 199 - 63 (262) - Contributions from (to) subsidiaries - net 2,446 - - (2,446) - Net change in restricted cash - - (121) - (121) Net change in short-term investments 1,990 - 108 - 2,098 Other, net (183) (5) (1,955) - (2,143) Net cash (used in) provided by investing activities 7,848 (5) 9,536 (2,708) 14,671 Cash flows from financing activities: Issuance of long-term debt 1,505 - 1,851 - 3,356 Repayments of long-term debt (1,724) - (1,974) - (3,698) Purchase of common stock (6,275) - - - (6,275) Intercompany loans - net (63) - (199) 262 - Cash dividends paid (1,172) (1,422) (1,186) 2,608 (1,172) Other, net (154) - (200) 2,446 2,092 Net cash (used in) financing activities (7,883) (1,422) (1,708) 5,316 (5,697) Effect of exchange rate changes on cash - - (28) - (28) Change in cash 1 (14) 374 - 361 Cash at beginning of year 2 34 1,832 - 1,868 Change in cash of businesses held for sale - - 133 - 133 Cash at end of year $ 3 $ 20 $ 2,339 $ - $ 2,362 Year Ended December 31, 2016 Net cash (used in) provided by operating activities $ 2,112 $ 1,707 $ 2,515 $ (3,951) $ 2,383 Cash flows from investing activities: Sales of investments 5,769 - 81,560 (11,685) 75,644 Sales of divested businesses, net 2,160 - 649 - 2,809 Purchase of investments (1,002) - (80,668) 11,685 (69,985) Loans to subsidiaries – net 1,525 - (3) (1,522) - Contributions from (to) subsidiaries - net 1,637 - - (1,637) - Net change in restricted cash - - 385 - 385 Net change in short-term investments (789) - (2,300) - (3,089) Other, net (141) - (879) - (1,020) Net cash (used in) provided by investing activities 9,159 - (1,256) (3,159) 4,744 Cash flows from financing activities: Issuance of long-term debt 3,831 - 2,123 - 5,954 Repayments of long-term debt (1,996) (63) (2,023) - (4,082) Purchase of common stock (11,460) - - - (11,460) Intercompany loans - net 3 (3) (1,522) 1,522 - Cash dividends paid (1,372) (1,723) (2,228) 3,951 (1,372) Other, net (309) - 2,799 1,637 4,127 Net cash (used in) provided by financing activities (11,303) (1,789) (851) 7,110 (6,833) Effect of exchange rate changes on cash - - 52 - 52 Change in cash (32) (82) 460 - 346 Cash at beginning of year 34 116 1,479 - 1,629 Change in cash of businesses held for sale - - (107) - (107) Cash at end of year $ 2 $ 34 $ 1,832 $ - $ 1,868 Year Ended December 31, 2015 Net cash (used in) provided by operating activities $ 4,443 $ 2,314 $ 1,112 $ (4,992) $ 2,877 Cash flows from investing activities: Sales of investments 7,767 - 69,726 (4,877) 72,616 Purchase of investments (1,881) - (68,261) 4,877 (65,265) Loans to subsidiaries – net (83) - 367 (284) - Contributions to subsidiaries 565 - - (565) - Net change in restricted cash - - 1,457 - 1,457 Net change in short-term investments 2,300 - (1,137) - 1,163 Other, net (175) - (1,334) - (1,509) Net cash (used in) provided by investing activities 8,493 - 818 (849) 8,462 Cash flows from financing activities: Issuance of long-term debt 5,540 - 1,327 - 6,867 Repayments of long-term debt (6,504) (114) (3,187) - (9,805) Intercompany loans - net (201) 3 (86) 284 - Purchase of common stock (10,691) - - - (10,691) Cash dividends paid to shareholders (1,028) (2,178) (2,814) 4,992 (1,028) Other, net (44) - 2,707 565 3,228 Net cash (used in) provided by financing activities (12,928) (2,289) (2,053) 5,841 (11,429) Effect of exchange rate changes on cash - - (39) - (39) Change in cash 8 25 (162) - (129) Cash at beginning of year 26 91 1,641 - 1,758 Cash at end of year $ 34 $ 116 $ 1,479 $ - $ 1,629 |
Supplementary Disclosure of Condensed Consolidating Cash Flow Information | American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Cash (paid) received during the year ended December 31, 2017 for: Interest: Third party $ (948) $ (48) $ (286) $ - $ (1,282) Intercompany - (1) 1 - - Taxes: Income tax authorities $ (329) $ - $ (215) $ - $ (544) Intercompany 614 - (614) - - Cash (paid) received during the year ended December 31, 2016 for: Interest: Third party $ (975) $ (52) $ (304) $ - $ (1,331) Intercompany 2 - (2) - - Taxes: Income tax authorities $ (15) $ - $ (478) $ - $ (493) Intercompany 479 - (479) - - Cash (paid) received during the year ended December 31, 2015 for: Interest: Third party * $ (1,030) $ (59) $ (279) $ - $ (1,368) Intercompany - - - - - Taxes: Income tax authorities $ (11) $ - $ (500) $ - $ (511) Intercompany 829 - (829) - - |
Supplementary disclosure of non-cash activities | Years Ended December 31, (in millions) 2017 2016 2015 Intercompany non-cash financing and investing activities: Capital contributions $ 259 $ 3,245 $ 494 Dividends received in the form of securities 735 5,234 2,326 Return of capital 26 - - Fixed maturity securities received in exchange for equity securities - 440 - Non-cash financing/investing activities: Non-cash consideration received from sale of shares of AerCap - - 500 Non-cash consideration received from sale of United Guaranty - 1,101 - |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
BASIS OF PRESENTATION | ||
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details 10K) $ / shares in Units, $ in Millions | Nov. 14, 2016USD ($) | Oct. 18, 2016USD ($) | Sep. 16, 2016USD ($) | Dec. 31, 2017USD ($)item$ / shares | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)item$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Nov. 17, 2016USD ($) | Aug. 31, 2016USD ($) |
Basis of Presentation [Line Items] | |||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 2.5 | $ 2.5 | $ 2.5 | $ 2.5 | |||||||||||||
Net income (loss) attributable to AIG | $ (6,660) | $ (1,739) | $ 1,130 | $ 1,185 | $ (3,041) | $ 462 | $ 1,913 | $ (183) | $ (6,084) | $ (849) | $ 2,196 | ||||||
Income (loss) from continuing operations before income tax expense (benefit) | 875 | (2,803) | 1,667 | 1,727 | (3,455) | 737 | 2,858 | (214) | 1,466 | (74) | 3,281 | ||||||
Net income (loss) on sale of divested businesses | (241) | 13 | 60 | 100 | (194) | (128) | (225) | 2 | 68 | 545 | (11) | ||||||
Repayments of Long-term Debt | 3,698 | 4,082 | 9,805 | ||||||||||||||
Other Income | 2,412 | 3,121 | 4,088 | ||||||||||||||
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest | $ (12) | 26 | (12) | $ 26 | 535 | (26) | 11 | (20) | 28 | 500 | 26 | ||||||
Adjustment | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Net income (loss) attributable to AIG | (154) | ||||||||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (12) | ||||||||||||||||
Adjusted Pre-Tax Income (Loss) | (1) | ||||||||||||||||
Adjustments 2,015 | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Net income (loss) attributable to AIG | (156) | $ (51) | |||||||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (376) | ||||||||||||||||
Adjusted Pre-Tax Income (Loss) | (235) | ||||||||||||||||
Adjustments 2,016 | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Net income (loss) attributable to AIG | (65) | $ 66 | $ 19 | (174) | (67) | $ (12) | |||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (57) | ||||||||||||||||
Adjusted Pre-Tax Income (Loss) | (6) | ||||||||||||||||
ILFC | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Non-cash consideration received from sale | 0 | 0 | 0 | ||||||||||||||
NSM | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Total consideration | $ 201 | ||||||||||||||||
Net income (loss) on sale of divested businesses | $ 105 | ||||||||||||||||
Ascot | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Consideration in cash | 244 | ||||||||||||||||
Total consideration | $ 1,100 | ||||||||||||||||
Net income (loss) on sale of divested businesses | $ 162 | ||||||||||||||||
Voting interest in subsidiary, Percent | 100.00% | ||||||||||||||||
Ownership reflecting consideration, Percent | 20.00% | ||||||||||||||||
United Guaranty Asia | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Consideration in cash | 40 | 2,200 | |||||||||||||||
Non-cash consideration received from sale | $ 0 | 1,101 | $ 0 | ||||||||||||||
Total consideration | $ 3,300 | 3,300 | |||||||||||||||
Net income (loss) on sale of divested businesses | $ 697 | ||||||||||||||||
Voting interest in subsidiary, Percent | 100.00% | 100.00% | |||||||||||||||
Dividend-in-lieu | $ 261 | ||||||||||||||||
Cash consideration retained by buyer | 40 | ||||||||||||||||
Korea Fund | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 464 | ||||||||||||||||
Total consideration | $ 2,500 | ||||||||||||||||
Repayments of Long-term Debt | 1,200 | ||||||||||||||||
Other Income | $ 1,100 | ||||||||||||||||
Certain insurance operations | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Consideration in cash | $ 234 | $ 168 | $ 48 | ||||||||||||||
AIG Fuji Life Insurance | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Consideration in cash | $ 333 | ||||||||||||||||
Net income (loss) on sale of divested businesses | $ (591) | ||||||||||||||||
Minimum | |||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||
Number of Countries in which the entity operates | item | 80 | 80 |
SUMMARY OF SIGNIFICANT ACCOUN67
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other significant accounting policies) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Line Items] | |||
Earning pattern of a quota share reinsurance contract | 24 months | ||
Other income | |||
Proceeds from legal settlements | $ 27 | $ 44 | $ 94 |
Premiums and other receivables | |||
Allowance for doubtful accounts on premiums and other receivables | $ 236 | $ 279 | $ 333 |
SUMMARY OF SIGNIFICANT ACCOUN68
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other Assets and PPE) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other assets | |||
Deferred bonus interest and deferred sales inducement assets | $ 738 | $ 808 | |
Amortization expense associated with deferred bonus interest and deferred sales inducement assets | $ 94 | $ 77 | $ 88 |
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years | ||
Furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Software Development | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years |
SEGMENT INFORMATION (Details -
SEGMENT INFORMATION (Details - Continuing operations by reportable segment) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment results | |||||||||||
Total Revenues | $ 12,635 | $ 11,751 | $ 12,502 | $ 12,632 | $ 13,010 | $ 12,854 | $ 14,724 | $ 11,779 | $ 49,520 | $ 52,367 | $ 58,327 |
Net investment income | 14,179 | 14,065 | 14,053 | ||||||||
Interest Expense | 1,168 | 1,260 | 1,281 | ||||||||
Amortization of deferred acquisition costs | 4,288 | 4,521 | 5,236 | ||||||||
Pre-tax operating income (loss) | $ 875 | $ (2,803) | $ 1,667 | $ 1,727 | $ (3,455) | $ 737 | $ 2,858 | $ (214) | 1,466 | (74) | 3,281 |
Eliminations | Total Revenues | |||||||||||
Segment results | |||||||||||
Pre-tax operating income (loss) | 49,520 | 52,367 | 58,327 | ||||||||
Eliminations | Net investment income | |||||||||||
Segment results | |||||||||||
Pre-tax operating income (loss) | 14,179 | 14,065 | 14,053 | ||||||||
Eliminations | Interest expense | |||||||||||
Segment results | |||||||||||
Pre-tax operating income (loss) | 1,168 | 1,260 | 1,281 | ||||||||
Eliminations | Amortization of DAC | |||||||||||
Segment results | |||||||||||
Pre-tax operating income (loss) | 4,288 | 4,521 | 5,236 | ||||||||
Eliminations | Adjusted Pre-Tax Income (loss) | |||||||||||
Segment results | |||||||||||
Pre-tax operating income (loss) | 1,466 | (74) | 3,281 | ||||||||
AIG Consolidation and Eliminations | |||||||||||
Segment results | |||||||||||
Total Revenues | (308) | (494) | (496) | ||||||||
Net investment income | (280) | (351) | (315) | ||||||||
Interest Expense | (53) | (120) | (103) | ||||||||
Amortization of deferred acquisition costs | 4 | (117) | (26) | ||||||||
Pre-tax operating income (loss) | 75 | 42 | (76) | ||||||||
Total AIG Consolidated adjusted revenues and adjusted pre-tax income (loss) | |||||||||||
Segment results | |||||||||||
Total Revenues | 50,776 | 54,191 | 57,591 | ||||||||
Net investment income | 14,033 | 13,945 | 14,096 | ||||||||
Interest Expense | 1,168 | 1,260 | 1,281 | ||||||||
Amortization of deferred acquisition costs | 4,579 | 4,797 | 5,236 | ||||||||
Pre-tax operating income (loss) | 3,158 | 1,415 | 3,984 | ||||||||
General Insurance | Reportable Segments | |||||||||||
Segment results | |||||||||||
Total Revenues | 29,694 | 33,140 | 34,668 | ||||||||
Net investment income | 3,668 | 3,554 | 3,746 | ||||||||
Interest Expense | 22 | 28 | 13 | ||||||||
Amortization of deferred acquisition costs | 3,765 | 4,121 | 4,319 | ||||||||
Pre-tax operating income (loss) | (813) | (2,051) | 628 | ||||||||
General Insurance | Reportable Segments | North America | |||||||||||
Segment results | |||||||||||
Total Revenues | 14,600 | 17,005 | 18,482 | ||||||||
Net investment income | 3,145 | 3,041 | 3,196 | ||||||||
Interest Expense | 31 | 28 | 13 | ||||||||
Amortization of deferred acquisition costs | 1,305 | 1,444 | 1,699 | ||||||||
Pre-tax operating income (loss) | (232) | (2,399) | 558 | ||||||||
General Insurance | Reportable Segments | International | |||||||||||
Segment results | |||||||||||
Total Revenues | 15,094 | 16,135 | 16,186 | ||||||||
Net investment income | 523 | 513 | 550 | ||||||||
Interest Expense | (9) | 0 | 0 | ||||||||
Amortization of deferred acquisition costs | 2,460 | 2,677 | 2,620 | ||||||||
Pre-tax operating income (loss) | (581) | 348 | 70 | ||||||||
Life and Retirement | Reportable Segments | |||||||||||
Segment results | |||||||||||
Total Revenues | 15,586 | 13,778 | 15,322 | ||||||||
Net investment income | 7,816 | 7,622 | 7,541 | ||||||||
Interest Expense | 109 | 92 | 52 | ||||||||
Amortization of deferred acquisition costs | 743 | 613 | 794 | ||||||||
Pre-tax operating income (loss) | 3,831 | 3,428 | 3,124 | ||||||||
Life and Retirement | Reportable Segments | Individual Retirement | |||||||||||
Segment results | |||||||||||
Total Revenues | 5,514 | 5,758 | 6,450 | ||||||||
Net investment income | 4,013 | 3,878 | 3,805 | ||||||||
Interest Expense | 58 | 50 | 27 | ||||||||
Amortization of deferred acquisition costs | 415 | 298 | 431 | ||||||||
Pre-tax operating income (loss) | 2,289 | 2,269 | 1,812 | ||||||||
Life and Retirement | Reportable Segments | Group Retirement | |||||||||||
Segment results | |||||||||||
Total Revenues | 2,848 | 2,769 | 2,834 | ||||||||
Net investment income | 2,164 | 2,146 | 2,192 | ||||||||
Interest Expense | 32 | 26 | 15 | ||||||||
Amortization of deferred acquisition costs | 84 | 129 | 50 | ||||||||
Pre-tax operating income (loss) | 1,004 | 931 | 1,100 | ||||||||
Life and Retirement | Reportable Segments | Life insurance | |||||||||||
Segment results | |||||||||||
Total Revenues | 4,056 | 3,818 | 3,771 | ||||||||
Net investment income | 1,044 | 1,035 | 1,034 | ||||||||
Interest Expense | 13 | 12 | 7 | ||||||||
Amortization of deferred acquisition costs | 239 | 182 | 311 | ||||||||
Pre-tax operating income (loss) | 274 | (37) | (51) | ||||||||
Life and Retirement | Reportable Segments | Institutional Markets | |||||||||||
Segment results | |||||||||||
Total Revenues | 3,168 | 1,433 | 2,267 | ||||||||
Net investment income | 595 | 563 | 510 | ||||||||
Interest Expense | 6 | 4 | 3 | ||||||||
Amortization of deferred acquisition costs | 5 | 4 | 2 | ||||||||
Pre-tax operating income (loss) | 264 | 265 | 263 | ||||||||
Other Operations | Reportable Segments | |||||||||||
Segment results | |||||||||||
Total Revenues | 1,413 | 2,517 | 2,326 | ||||||||
Net investment income | 53 | 207 | 196 | ||||||||
Interest Expense | 968 | 978 | 1,027 | ||||||||
Amortization of deferred acquisition costs | (9) | 72 | 47 | ||||||||
Pre-tax operating income (loss) | (1,405) | (1,011) | (825) | ||||||||
Legacy Portfolio | Reportable Segments | |||||||||||
Segment results | |||||||||||
Total Revenues | 4,391 | 5,250 | 5,771 | ||||||||
Net investment income | 2,776 | 2,913 | 2,928 | ||||||||
Interest Expense | 122 | 282 | 292 | ||||||||
Amortization of deferred acquisition costs | 76 | 108 | 102 | ||||||||
Pre-tax operating income (loss) | $ 1,470 | $ 1,007 | $ 1,133 |
SEGMENT INFORMATION (Details 70
SEGMENT INFORMATION (Details - Continuing operations by reportable segment - Pretax operating income to pre-tax income)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | |||||||||||
Gain (Loss) on extinguishment of debt | $ (1) | $ 1 | $ (4) | $ (1) | $ (2) | $ (14) | $ 7 | $ 83 | $ 5 | $ (74) | $ (756) |
Income (loss) from divested businesses | (241) | 13 | 60 | 100 | (194) | (128) | (225) | 2 | 68 | 545 | (11) |
Net reserve discount (benefit) charge | (187) | 422 | 71 | ||||||||
Restructuring and other costs | 154 | 31 | 47 | 181 | 206 | 210 | 90 | 188 | |||
Pre-tax operating income (loss) | $ 875 | $ (2,803) | $ 1,667 | $ 1,727 | $ (3,455) | $ 737 | $ 2,858 | $ (214) | 1,466 | (74) | 3,281 |
Reconciling items from pre-tax operating income to pre-tax income | Total Revenues | |||||||||||
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 | 146 | 120 | (43) | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | 0 | 0 | 0 | ||||||||
Other income (expense) - net | (49) | (44) | (43) | ||||||||
Gain (Loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | (1,380) | (1,944) | 776 | ||||||||
Income (loss) from divested businesses | 0 | 0 | (48) | ||||||||
Non-operating litigation reserves and settlements | 27 | 44 | 94 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | 0 | ||||||||
Net reserve discount (benefit) charge | 0 | 0 | 0 | ||||||||
Pension expense related to a one-time lump sum payment to former employees | 0 | 0 | |||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Pre-tax operating income (loss) | 49,520 | 52,367 | 58,327 | ||||||||
Reconciling items from pre-tax operating income to pre-tax income | Net investment income | |||||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | |||||||||||
Changes in fair values of securities used to hedge guaranteed living benefits | 146 | 120 | (43) | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Gain (Loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Income (loss) from divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 0 | 0 | 0 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | 0 | ||||||||
Net reserve discount (benefit) charge | 0 | 0 | 0 | ||||||||
Pension expense related to a one-time lump sum payment to former employees | 0 | 0 | |||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Pre-tax operating income (loss) | 14,179 | 14,065 | 14,053 | ||||||||
Reconciling items from pre-tax operating income to pre-tax income | Interest expense | |||||||||||
Reconciling items from Total revenues and Pre-tax operating income (loss) to revenues and pre-tax income: | |||||||||||
Changes in fair values of securities used to hedge guaranteed living benefits | 0 | 0 | 0 | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Gain (Loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Income (loss) from divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 0 | 0 | 0 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | 0 | ||||||||
Net reserve discount (benefit) charge | 0 | 0 | 0 | ||||||||
Pension expense related to a one-time lump sum payment to former employees | 0 | 0 | |||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Pre-tax operating income (loss) | 1,168 | 1,260 | 1,281 | ||||||||
Reconciling items from pre-tax operating income to pre-tax income | Amortization of DAC | |||||||||||
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 | 0 | 0 | 0 | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | (291) | (276) | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Gain (Loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Income (loss) from divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 0 | 0 | 0 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | 0 | ||||||||
Net reserve discount (benefit) charge | 0 | 0 | 0 | ||||||||
Pension expense related to a one-time lump sum payment to former employees | 0 | 0 | |||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Pre-tax operating income (loss) | 4,288 | 4,521 | 5,236 | ||||||||
Reconciling items from pre-tax operating income to pre-tax income | Adjusted Pre-Tax 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 | 146 | 120 | (43) | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | 303 | 195 | (15) | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Gain (Loss) on extinguishment of debt | 5 | (74) | (756) | ||||||||
Net realized capital gains (losses) | (1,380) | (1,944) | 776 | ||||||||
Income (loss) from divested businesses | 68 | 545 | (59) | ||||||||
Non-operating litigation reserves and settlements | 129 | 41 | 82 | ||||||||
Reserve development related to non-operating run-off insurance business | (303) | 42 | (263) | ||||||||
Net reserve discount (benefit) charge | (187) | 427 | 71 | ||||||||
Pension expense related to a one-time lump sum payment to former employees | (60) | (147) | |||||||||
Restructuring and other costs | (413) | (694) | (496) | ||||||||
Other | 0 | 0 | 0 | ||||||||
Pre-tax operating income (loss) | $ 1,466 | $ (74) | $ 3,281 |
SEGMENT INFORMATION (Details 71
SEGMENT INFORMATION (Details - Identifiable assets and capital expenditures by reportable segment) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | $ 498,301 | $ 498,264 |
Capital Expenditures | 483 | 1,119 |
Reportable Segments | General Insurance Companies | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 114,841 | 118,287 |
Capital Expenditures | 239 | 685 |
Reportable Segments | Life and Retirement Companies | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 289,457 | 269,813 |
Capital Expenditures | 88 | 85 |
Reportable Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 105,425 | 122,016 |
Capital Expenditures | 156 | 349 |
Reclassification and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | (111,862) | (114,558) |
AIG Consolidation and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | (11,422) | (11,852) |
Capital Expenditures | $ 0 | $ 0 |
SEGMENT INFORMATION (Details 72
SEGMENT INFORMATION (Details - Consolidated operations and long-lived assets by major geographic area) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | $ 12,635 | $ 11,751 | $ 12,502 | $ 12,632 | $ 13,010 | $ 12,854 | $ 14,724 | $ 11,779 | $ 49,520 | $ 52,367 | $ 58,327 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 2,522 | 2,660 | 2,522 | 2,660 | 3,135 | ||||||
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 34,149 | 36,871 | 41,680 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 1,630 | 1,326 | 1,630 | 1,326 | 1,819 | ||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 15,371 | 15,496 | 16,647 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | $ 892 | $ 1,334 | $ 892 | $ 1,334 | $ 1,316 |
HELD-FOR-SALE CLASSIFICATION (D
HELD-FOR-SALE CLASSIFICATION (Details) - USD ($) $ in Millions | Nov. 14, 2016 | Oct. 18, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Held-for-Sale Classification | ||||||||||||||
Net income (loss) on sale of divested businesses | $ (241) | $ 13 | $ 60 | $ 100 | $ (194) | $ (128) | $ (225) | $ 2 | $ 68 | $ 545 | $ (11) | |||
Assets: | ||||||||||||||
Mortgage and other loans receivable, net | 37,023 | 33,240 | 37,023 | 33,240 | ||||||||||
Other invested assets | 20,822 | 24,538 | 20,822 | 24,538 | ||||||||||
Short-term investments | 10,386 | 12,302 | 10,386 | 12,302 | ||||||||||
Cash | 2,362 | 1,868 | 2,362 | 1,868 | 1,629 | $ 1,758 | ||||||||
Accrued investment income | 2,356 | 2,495 | 2,356 | 2,495 | ||||||||||
Premiums and other receivables, net of allowance | 10,248 | 10,465 | 10,248 | 10,465 | ||||||||||
Reinsurance assets, net of allowance | 33,024 | 21,901 | 33,024 | 21,901 | ||||||||||
Deferred policy acquisition costs | 10,994 | 11,042 | 10,994 | 11,042 | 11,115 | 9,828 | ||||||||
Other assets | 10,194 | 10,815 | 10,194 | 10,815 | ||||||||||
Total assets held for sale | 0 | 7,199 | 0 | 7,199 | ||||||||||
Liabilities: | ||||||||||||||
Liability for unpaid losses and loss adjustment expenses | 78,393 | 77,077 | 78,393 | 77,077 | 74,942 | $ 77,260 | ||||||||
Unearned premiums | 19,030 | 19,634 | 19,030 | 19,634 | ||||||||||
Future policy benefits for life and accident and health insurance contracts | 45,432 | 42,204 | 45,432 | 42,204 | ||||||||||
Other policyholder funds | 3,648 | 3,989 | 3,648 | 3,989 | ||||||||||
Long-term Debt | 31,640 | 30,912 | 31,640 | 30,912 | ||||||||||
Other Liabilities | 26,050 | 26,296 | 26,050 | 26,296 | ||||||||||
Total liabilities held for sale | $ 0 | 6,106 | 0 | 6,106 | ||||||||||
Held for sale [Member] | ||||||||||||||
Assets: | ||||||||||||||
Fixed maturity securities | 6,045 | 6,045 | ||||||||||||
Equity Securities | 149 | 149 | ||||||||||||
Mortgage and other loans receivable, net | 137 | 137 | ||||||||||||
Other invested assets | 2 | 2 | ||||||||||||
Short-term investments | 130 | 130 | ||||||||||||
Cash | 133 | 133 | ||||||||||||
Accrued investment income | 21 | 21 | ||||||||||||
Premiums and other receivables, net of allowance | 351 | 351 | ||||||||||||
Reinsurance assets, net of allowance | 8 | 8 | ||||||||||||
Deferred policy acquisition costs | 471 | 471 | ||||||||||||
Other assets | 273 | 273 | ||||||||||||
Assets of businesses held for sale | 7,720 | 7,720 | ||||||||||||
Less: Loss Accrual | (521) | (521) | ||||||||||||
Total assets held for sale | 7,199 | 7,199 | ||||||||||||
Liabilities: | ||||||||||||||
Liability for unpaid losses and loss adjustment expenses | 402 | 402 | ||||||||||||
Unearned premiums | 297 | 297 | ||||||||||||
Future policy benefits for life and accident and health insurance contracts | 4,579 | 4,579 | ||||||||||||
Other policyholder funds | 378 | 378 | ||||||||||||
Long-term Debt | 0 | 0 | ||||||||||||
Other Liabilities | 450 | 450 | ||||||||||||
Total liabilities held for sale | $ 6,106 | $ 6,106 | ||||||||||||
United Guaranty Asia | ||||||||||||||
Held-for-Sale Classification | ||||||||||||||
Voting interest in subsidiary, Percent | 100.00% | 100.00% | ||||||||||||
Total consideration | $ 3,300 | $ 3,300 | ||||||||||||
Consideration in cash | 40 | 2,200 | ||||||||||||
Non-cash consideration received from sale | $ 0 | 1,101 | $ 0 | |||||||||||
Cash consideration retained by buyer | 40 | |||||||||||||
Dividend-in-lieu | 261 | |||||||||||||
Net income (loss) on sale of divested businesses | $ 697 | |||||||||||||
Certain insurance operations | ||||||||||||||
Held-for-Sale Classification | ||||||||||||||
Consideration in cash | $ 234 | $ 168 | $ 48 | |||||||||||
AIG Fuji Life Insurance | ||||||||||||||
Held-for-Sale Classification | ||||||||||||||
Consideration in cash | $ 333 | |||||||||||||
Net income (loss) on sale of divested businesses | $ (591) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details - Long Term Debt) - Borrowings supported by assets - GIAs | Dec. 31, 2017 |
Debt Instrument [Line Items] | |
Range of guaranteed minimum return rates (as a percent) | 7.62% |
Maximum | |
Debt Instrument [Line Items] | |
Range of guaranteed minimum return rates (as a percent) | 7.62% |
Minimum | |
Debt Instrument [Line Items] | |
Range of guaranteed minimum return rates (as a percent) | 0.50% |
FAIR VALUE MEASUREMENTS (Deta75
FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | $ 238,992 | $ 241,537 |
Other bond securities | 12,772 | 13,998 |
Equity securities available for sale | 1,708 | 2,078 |
Other equity securities | 589 | 482 |
Other invested assets | 6,248 | 6,946 |
Derivative Assets, Fair Value | 3,545 | 3,977 |
Derivative assets, Counterparty netting | (1,464) | (1,265) |
Derivative assets, Cash collateral | (1,159) | (903) |
Short-term investments, portion measured at fair value | 2,615 | 3,341 |
Separate account assets, at fair value | 92,798 | 82,972 |
Other assets | 922 | 1,809 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 4,150 | 3,058 |
Other policyholder funds | 3,648 | 3,989 |
Derivative Liabilities, Fair Value | 3,748 | 4,802 |
Derivative liabilities, Counterparty netting | (1,464) | (1,265) |
Derivative liabilities, Cash collateral | (1,249) | (1,521) |
Long-term debt, portion measured at fair value | 2,888 | 3,428 |
Other liabilities | 1,124 | 2,016 |
Preferred Stock | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Assets transferred from Level 1 to Level 2 | 126 | 0 |
Recurring Basis | U.S. government and government sponsored entities | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Assets transferred from Level 1 to Level 2 | 113 | 34 |
Recurring Basis | Non-U.S. governments | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Assets transferred from Level 1 to Level 2 | 392 | 1,074 |
Recurring Basis | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 221 | 115 |
Other bond securities | 238 | 0 |
Equity securities available for sale | 1,189 | 2,068 |
Other equity securities | 589 | 482 |
Mortgage and other loans receivable | 0 | |
Other invested assets | 0 | 0 |
Derivative Assets, Fair Value | 189 | 188 |
Short-term investments, portion measured at fair value | 2,078 | 2,660 |
Separate account assets, at fair value | 87,141 | 77,318 |
Fair value assets measured on recurring basis, total | 91,645 | 82,831 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Other policyholder funds | 0 | 5 |
Derivative Liabilities, Fair Value | 4 | 12 |
Other liabilities | 46 | 0 |
Fair value liabilities measured on recurring basis, total | 50 | 17 |
Recurring Basis | Level 1 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 1 | 0 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 2 | |
Recurring Basis | Level 1 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 188 | 188 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 2 | 12 |
Recurring Basis | Level 1 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 201 | 63 |
Other bond securities | 238 | 0 |
Recurring Basis | Level 1 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Non-U.S. governments | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 20 | 52 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 1,061 | 1,056 |
Recurring Basis | Level 1 | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 18 | 752 |
Recurring Basis | Level 1 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 110 | 260 |
Recurring Basis | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 209,775 | 211,451 |
Other bond securities | 6,022 | 6,518 |
Equity securities available for sale | 519 | 10 |
Other equity securities | 0 | 0 |
Mortgage and other loans receivable | 0 | |
Other invested assets | 1 | 1 |
Derivative Assets, Fair Value | 3,249 | 3,713 |
Short-term investments, portion measured at fair value | 537 | 681 |
Separate account assets, at fair value | 5,657 | 5,654 |
Other assets | 0 | |
Fair value assets measured on recurring basis, total | 225,760 | 228,028 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 14 | 25 |
Other policyholder funds | 0 | |
Derivative Liabilities, Fair Value | 3,450 | 4,405 |
Long-term debt, portion measured at fair value | 2,888 | 3,357 |
Other liabilities | 43 | 0 |
Fair value liabilities measured on recurring basis, total | 6,395 | 7,787 |
Recurring Basis | Level 2 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 2,170 | 2,328 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 2,176 | 3,039 |
Recurring Basis | Level 2 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 827 | 1,320 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 1,241 | 1,358 |
Recurring Basis | Level 2 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 252 | 59 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 19 | 7 |
Recurring Basis | Level 2 | Credit contracts | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 14 | |
Recurring Basis | Level 2 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 0 | 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 | 2,455 | 1,929 |
Other bond securities | 2,564 | 2,939 |
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 16,240 | 22,732 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 2 | Non-U.S. governments | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 15,631 | 14,466 |
Other bond securities | 57 | 51 |
Recurring Basis | Level 2 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 133,003 | 131,047 |
Other bond securities | 1,891 | 1,755 |
Recurring Basis | Level 2 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 21,098 | 20,468 |
Other bond securities | 421 | 420 |
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 13,217 | 12,231 |
Other bond securities | 485 | 448 |
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 8,131 | 8,578 |
Other bond securities | 604 | 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 | 515 | 0 |
Recurring Basis | Level 2 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 4 | 1 |
Recurring Basis | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 28,996 | 29,971 |
Other bond securities | 6,512 | 7,480 |
Equity securities available for sale | 0 | 0 |
Other equity securities | 0 | 0 |
Mortgage and other loans receivable | 5 | 11 |
Other invested assets | 250 | 204 |
Derivative Assets, Fair Value | 107 | 76 |
Fair value assets measured on recurring basis, total | 35,870 | 37,742 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 4,136 | 3,033 |
Derivative Liabilities, Fair Value | 294 | 385 |
Long-term debt, portion measured at fair value | 0 | 71 |
Other liabilities | 0 | |
Fair value liabilities measured on recurring basis, total | 4,430 | 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 | 22 | 38 |
Recurring Basis | Level 3 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 4 | 0 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 4 | 11 |
Recurring Basis | Level 3 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 82 | 58 |
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 | 1 | 2 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 263 | 331 |
Recurring Basis | Level 3 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 20 | 16 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 5 | 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 | 2,404 | 2,040 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 3 | Non-U.S. governments | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 8 | 17 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 3 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,173 | 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 | 16,136 | 16,906 |
Other bond securities | 1,464 | 1,605 |
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 624 | 2,040 |
Other bond securities | 74 | 155 |
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 8,651 | 7,835 |
Other bond securities | 4,956 | 5,703 |
Recurring Basis | Level 3 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | |
Recurring Basis | Level 3 | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | |
Recurring Basis | Level 3 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | |
Recurring Basis | Counterparty Netting | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Counterparty netting | (1,464) | (1,265) |
Fair value assets measured on recurring basis, total | (1,464) | (1,265) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Counterparty netting | (1,464) | (1,265) |
Other liabilities | 0 | |
Fair value liabilities measured on recurring basis, total | (1,464) | (1,265) |
Recurring Basis | Counterparty Netting | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Counterparty netting | (1,464) | (1,265) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Counterparty netting | (1,464) | (1,265) |
Recurring Basis | Cash Collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Cash collateral | (1,159) | (903) |
Fair value assets measured on recurring basis, total | (1,159) | (903) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Cash collateral | (1,249) | (1,521) |
Other liabilities | 0 | |
Fair value liabilities measured on recurring basis, total | (1,249) | (1,521) |
Recurring Basis | Cash Collateral | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Cash collateral | (1,159) | (903) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Cash collateral | (1,249) | (1,521) |
Recurring Basis | Total Fair Value | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 238,992 | 241,537 |
Other bond securities | 12,772 | 13,998 |
Equity securities available for sale | 1,708 | 2,078 |
Other equity securities | 589 | 482 |
Mortgage and other loans receivable | 5 | 11 |
Other invested assets | 251 | 205 |
Derivative Assets, Fair Value | 922 | 1,809 |
Short-term investments, portion measured at fair value | 2,615 | 3,341 |
Separate account assets, at fair value | 92,798 | 82,972 |
Other assets | 0 | |
Fair value assets measured on recurring basis, total | 350,652 | 346,433 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 4,150 | 3,058 |
Other policyholder funds | 0 | 5 |
Derivative Liabilities, Fair Value | 1,035 | 2,016 |
Long-term debt, portion measured at fair value | 2,888 | 3,428 |
Other liabilities | 89 | 0 |
Fair value liabilities measured on recurring basis, total | 8,162 | 8,507 |
Recurring Basis | Total Fair Value | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 2,171 | 2,328 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 2,200 | 3,077 |
Recurring Basis | Total Fair Value | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 831 | 1,320 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 1,245 | 1,369 |
Recurring Basis | Total Fair Value | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 522 | 305 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 21 | 19 |
Recurring Basis | Total Fair Value | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 1 | 2 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 277 | 331 |
Recurring Basis | Total Fair Value | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 20 | 22 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 5 | 6 |
Recurring Basis | Total Fair Value | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | (2,623) | (2,168) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | (2,713) | (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 | 2,656 | 1,992 |
Other bond securities | 2,802 | 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 | 18,644 | 24,772 |
Other bond securities | 0 | 0 |
Recurring Basis | Total Fair Value | Non-U.S. governments | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 15,659 | 14,535 |
Other bond securities | 57 | 51 |
Recurring Basis | Total Fair Value | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 134,176 | 132,180 |
Other bond securities | 1,909 | 1,772 |
Recurring Basis | Total Fair Value | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 37,234 | 37,374 |
Other bond securities | 1,885 | 2,025 |
Recurring Basis | Total Fair Value | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 13,841 | 14,271 |
Other bond securities | 559 | 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 | 16,782 | 16,413 |
Other bond securities | 5,560 | 6,608 |
Recurring Basis | Total Fair Value | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 1,061 | 1,065 |
Recurring Basis | Total Fair Value | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 533 | 752 |
Recurring Basis | Total Fair Value | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | $ 114 | $ 261 |
FAIR VALUE MEASUREMENTS (Deta76
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 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 | 2,133 | 1,380 |
Other Comprehensive Income (Loss) | 1,298 | (321) |
Purchases, Sales, Issues and Settlements, Net | (4,647) | (1,275) |
Gross Transfers in, assets | 956 | 1,364 |
Gross Transfers out, assets | (1,643) | (1,485) |
Divested Businesses | 0 | (14) |
Reclassified to Assets Held for Sale | 0 | (3) |
Balance End of Period | 35,763 | 37,666 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 487 | (410) |
Balance at the Beginning of the Period | 3,413 | 3,028 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 639 | 341 |
Accumulated Other Comprehensive Income (loss) | 0 | |
Purchases, Sales, Issues and Settlements-Net | 274 | 153 |
Gross Transfers in, liabilities | (3) | 0 |
Gross Transfers out, liabilities | 0 | (109) |
Balance at the End of the Period | 4,323 | 3,413 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (318) | (156) |
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 | 807 | 441 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 296 | 303 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 4,136 | 3,033 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (499) | (366) |
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 | (184) | (104) |
Accumulated Other Comprehensive Income (loss) | 0 | |
Purchases, Sales, Issues and Settlements-Net | 65 | (147) |
Gross Transfers in, liabilities | (3) | 0 |
Gross Transfers out, liabilities | 0 | 4 |
Balance at the End of the Period | 187 | 309 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 181 | 211 |
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 | (5) | (8) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (11) | (4) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 22 | 38 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 5 | 6 |
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 | (2) | 5 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (9) | (1) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 0 | 11 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 3 | (4) |
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 | (41) | (10) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 17 | 6 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | (82) | (58) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 35 | 10 |
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 |
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 | (62) | (81) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (5) | (95) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 262 | 329 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 61 | 71 |
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 | (74) | (10) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 73 | (53) |
Gross Transfers in, liabilities | (3) | 0 |
Gross Transfers out, liabilities | 0 | 4 |
Balance at the End of the Period | (15) | (11) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 77 | 128 |
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 | 16 | 4 |
Accumulated Other Comprehensive Income (loss) | 0 | |
Purchases, Sales, Issues and Settlements-Net | (87) | (3) |
Gross Transfers in, liabilities | 0 | |
Gross Transfers out, liabilities | 0 | (113) |
Balance at the End of the Period | 0 | 71 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 0 | (1) |
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 | 1,080 | 1,065 |
Other Comprehensive Income (Loss) | 1,304 | (321) |
Purchases, Sales, Issues and Settlements, Net | (2,820) | 476 |
Gross Transfers in, assets | 933 | 1,299 |
Gross Transfers out, assets | (1,472) | (1,348) |
Divested Businesses | 0 | (14) |
Reclassified to Assets Held for Sale | 0 | (3) |
Balance End of Period | 28,996 | 29,971 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 2,040 | 2,124 |
Net Realized and Unrealized Gains (Losses) Included in Income | 5 | 5 |
Other Comprehensive Income (Loss) | 167 | 0 |
Purchases, Sales, Issues and Settlements, Net | 216 | 61 |
Gross Transfers in, assets | 8 | 2 |
Gross Transfers out, assets | (32) | (152) |
Balance End of Period | 2,404 | 2,040 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Bonds available for sale | Non-U.S. governments | ||
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 | (9) | (3) |
Other Comprehensive Income (Loss) | 9 | (12) |
Purchases, Sales, Issues and Settlements, Net | (9) | 7 |
Gross Transfers in, assets | 0 | 1 |
Gross Transfers out, assets | 0 | (5) |
Divested Businesses | 0 | |
Reclassified to Assets Held for Sale | 0 | (3) |
Balance End of Period | 8 | 17 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Bonds available for sale | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 1,133 | 1,370 |
Net Realized and Unrealized Gains (Losses) Included in Income | (3) | (13) |
Other Comprehensive Income (Loss) | 20 | (42) |
Purchases, Sales, Issues and Settlements, Net | (259) | (111) |
Gross Transfers in, assets | 886 | 920 |
Gross Transfers out, assets | (604) | (977) |
Divested Businesses | 0 | (14) |
Reclassified to Assets Held for Sale | 0 | |
Balance End of Period | 1,173 | 1,133 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 16,906 | 16,537 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,071 | 970 |
Other Comprehensive Income (Loss) | 942 | (24) |
Purchases, Sales, Issues and Settlements, Net | (2,763) | (878) |
Gross Transfers in, assets | 19 | 330 |
Gross Transfers out, assets | (39) | (29) |
Balance End of Period | 16,136 | 16,906 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 2,040 | 2,585 |
Net Realized and Unrealized Gains (Losses) Included in Income | 35 | 72 |
Other Comprehensive Income (Loss) | 11 | (132) |
Purchases, Sales, Issues and Settlements, Net | (748) | (323) |
Gross Transfers in, assets | 20 | 23 |
Gross Transfers out, assets | (734) | (185) |
Balance End of Period | 624 | 2,040 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 7,835 | 6,169 |
Net Realized and Unrealized Gains (Losses) Included in Income | (19) | 34 |
Other Comprehensive Income (Loss) | 155 | (111) |
Purchases, Sales, Issues and Settlements, Net | 743 | 1,720 |
Gross Transfers in, assets | 0 | 23 |
Gross Transfers out, assets | (63) | 0 |
Balance End of Period | 8,651 | 7,835 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Other bond securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 7,480 | 8,846 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,039 | 314 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (1,861) | (1,662) |
Gross Transfers in, assets | 23 | 65 |
Gross Transfers out, assets | (169) | (83) |
Balance End of Period | 6,512 | 7,480 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 481 | (418) |
Other bond securities | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 17 | 17 |
Net Realized and Unrealized Gains (Losses) Included in Income | 3 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 10 | 0 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (12) | 0 |
Balance End of Period | 18 | 17 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 1 | 0 |
Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 1,605 | 1,581 |
Net Realized and Unrealized Gains (Losses) Included in Income | 191 | 43 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (313) | (1) |
Gross Transfers in, assets | 14 | 0 |
Gross Transfers out, assets | (33) | (18) |
Balance End of Period | 1,464 | 1,605 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 113 | (24) |
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 | 4 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 24 | (38) |
Gross Transfers in, assets | 9 | 0 |
Gross Transfers out, assets | (118) | 0 |
Balance End of Period | 74 | 155 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 5 | (1) |
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 | 841 | 271 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (1,582) | (1,623) |
Gross Transfers in, assets | 0 | 65 |
Gross Transfers out, assets | (6) | (65) |
Balance End of Period | 4,956 | 5,703 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 362 | (393) |
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 | 1 | 0 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (1) | 0 |
Balance End of Period | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Equity securities available for sale | 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 | 1 | 0 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (1) | 0 |
Balance End of Period | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Mortgage and other loans receivable | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 11 | 11 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (6) | 0 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 5 | 11 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Other invested assets | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 204 | 332 |
Net Realized and Unrealized Gains (Losses) Included in Income | 14 | 1 |
Other Comprehensive Income (Loss) | (6) | 0 |
Purchases, Sales, Issues and Settlements, Net | 39 | (75) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (1) | (54) |
Balance End of Period | 250 | 204 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 6 | 8 |
Other equity securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | 14 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 0 | (14) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta77
FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 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 | $ 2,133 | $ 1,380 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 639 | 341 |
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 | 807 | 441 |
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 | 807 | 441 |
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 | (184) | (104) |
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 | (17) | (8) |
Derivative liabilities, net | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (167) | (96) |
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 | 16 | 4 |
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 | 16 | 4 |
Bonds available for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 1,080 | 1,065 |
Bonds available for sale | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 1,127 | 1,180 |
Bonds available for sale | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | (49) | (118) |
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 | 2 | 3 |
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 | 1,039 | 314 |
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 | 308 | 110 |
Other bond securities | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 44 |
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 | 731 | 160 |
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 | |
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 | |
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 | 0 |
Other equity securities | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | |
Other equity securities | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | |
Other equity securities | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 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 | 14 | 1 |
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 | 9 | 13 |
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 | 6 | 39 |
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 | $ (1) | $ (51) |
FAIR VALUE MEASUREMENTS (Deta78
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issues and settlements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | $ 4,053 | $ 5,974 |
Sales, assets | (1,071) | (971) |
Settlements, assets | (7,629) | (6,278) |
Purchases, Sales, Issues and Settlements, Net, assets | (4,647) | (1,275) |
Purchases, Sales, Issues and Settlements, Net, liabilities | 274 | 153 |
Issuances | 0 | 0 |
Transfers into Level 3 at end of reporting period, net gains (losses) not included in realized and unrealized gains and losses related to Level 3 for the period | (64) | (188) |
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. | (36) | (189) |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (4) | (6) |
Sales, liabilities | 344 | 437 |
Settlements, liabilities | (66) | (278) |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Sales, liabilities | 344 | 437 |
Settlements, liabilities | (48) | (134) |
Purchases, Sales, Issues and Settlements, Net, liabilities | 296 | 303 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (4) | (6) |
Sales, liabilities | 0 | 0 |
Settlements, liabilities | 69 | (141) |
Purchases, Sales, Issues and Settlements, Net, liabilities | 65 | (147) |
Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Settlements, liabilities | (87) | (3) |
Purchases, Sales, Issues and Settlements, Net, liabilities | (87) | (3) |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 3,704 | 5,457 |
Sales, assets | (725) | (311) |
Settlements, assets | (5,799) | (4,670) |
Purchases, Sales, Issues and Settlements, Net, assets | (2,820) | 476 |
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 | 286 | 164 |
Sales, assets | (16) | (8) |
Settlements, assets | (54) | (95) |
Purchases, Sales, Issues and Settlements, Net, assets | 216 | 61 |
Bonds available for sale | Non-U.S. governments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 9 | 13 |
Sales, assets | (1) | 0 |
Settlements, assets | (17) | (6) |
Purchases, Sales, Issues and Settlements, Net, assets | (9) | 7 |
Bonds available for sale | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 36 | 29 |
Sales, assets | (59) | (25) |
Settlements, assets | (236) | (115) |
Purchases, Sales, Issues and Settlements, Net, assets | (259) | (111) |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1,199 | 2,635 |
Sales, assets | (260) | (81) |
Settlements, assets | (3,702) | (3,432) |
Purchases, Sales, Issues and Settlements, Net, assets | (2,763) | (878) |
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 | 75 | 156 |
Sales, assets | (146) | (98) |
Settlements, assets | (677) | (381) |
Purchases, Sales, Issues and Settlements, Net, assets | (748) | (323) |
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 | 2,099 | 2,460 |
Sales, assets | (243) | (99) |
Settlements, assets | (1,113) | (641) |
Purchases, Sales, Issues and Settlements, Net, assets | 743 | 1,720 |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 229 | 465 |
Sales, assets | (294) | (648) |
Settlements, assets | (1,796) | (1,479) |
Purchases, Sales, Issues and Settlements, Net, assets | (1,861) | (1,662) |
Other bond securities | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 11 | |
Sales, assets | 0 | |
Settlements, assets | (1) | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | 10 | 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 | 167 | 343 |
Sales, assets | (218) | (104) |
Settlements, assets | (262) | (240) |
Purchases, Sales, Issues and Settlements, Net, assets | (313) | (1) |
Other bond securities | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 42 | 53 |
Sales, assets | (11) | (86) |
Settlements, assets | (7) | (5) |
Purchases, Sales, Issues and Settlements, Net, assets | 24 | (38) |
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 | 9 | 69 |
Sales, assets | (65) | (458) |
Settlements, assets | (1,526) | (1,234) |
Purchases, Sales, Issues and Settlements, Net, assets | (1,582) | (1,623) |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 13 | 0 |
Sales, assets | 0 | 0 |
Settlements, assets | (12) | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | 1 | 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 | (28) |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | (14) |
Mortgage and other loans receivable, net of allowance | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 1 |
Sales, assets | (6) | (2) |
Settlements, assets | 0 | 1 |
Purchases, Sales, Issues and Settlements, Net, assets | (6) | 0 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 107 | 37 |
Sales, assets | (46) | (10) |
Settlements, assets | (22) | (102) |
Purchases, Sales, Issues and Settlements, Net, assets | $ 39 | $ (75) |
FAIR VALUE MEASUREMENTS (Deta79
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets)) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Corporate debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,086 | $ 498 |
Corporate debt | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.26% | 3.41% |
Corporate debt | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 12.22% | 6.38% |
Corporate debt | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 7.74% | 4.90% |
Residential mortgage-backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 16,156 | $ 17,412 |
Residential mortgage-backed securities | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 2.73% | 3.28% |
Constant prepayment rate | 3.97% | 3.95% |
Loss severity | 43.15% | 47.51% |
Constant default rate | 3.31% | 3.28% |
Residential mortgage-backed securities | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.19% | 5.87% |
Constant prepayment rate | 13.42% | 6.54% |
Loss severity | 77.15% | 80.98% |
Constant default rate | 8.30% | 8.64% |
Residential mortgage-backed securities | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.96% | 4.57% |
Constant prepayment rate | 8.69% | 5.25% |
Loss severity | 60.15% | 64.24% |
Constant default rate | 5.80% | 5.96% |
Certain CDO/ABS | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 5,254 | $ 4,368 |
Certain CDO/ABS | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.38% | 3.67% |
Certain CDO/ABS | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.78% | 5.85% |
Certain CDO/ABS | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.08% | 4.76% |
Commercial mortgage backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 487 | $ 1,511 |
Commercial mortgage backed securities | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 2.22% | 0.48% |
Commercial mortgage backed securities | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 7.77% | 10.21% |
Commercial mortgage backed securities | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.99% | 5.34% |
Obligations of states, municipalities and political subdivisions | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,620 | $ 1,248 |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.55% | 4.12% |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.32% | 4.91% |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.94% | 4.52% |
FAIR VALUE MEASUREMENTS (Deta80
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
GMWB | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 1,994 | $ 1,777 |
GMWB | Discounted cash flow | Minimum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 6.45% | 13.00% |
Base lapse rates | 0.35% | 0.50% |
Dynamic lapse rates | 30.00% | 30.00% |
Utilization rates | 90.00% | 100.00% |
Mortality multiplier | 40.00% | 42.00% |
Equity/Interest-rate Correlation | 20.00% | 20.00% |
GMWB | Discounted cash flow | Maximum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 51.25% | 50.00% |
Base lapse rates | 14.00% | 20.00% |
Dynamic lapse rates | 170.00% | 170.00% |
Utilization rates | 100.00% | 100.00% |
Mortality multiplier | 153.00% | 161.00% |
Equity/Interest-rate Correlation | 40.00% | 40.00% |
Index Annuities | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 1,603 | $ 859 |
Index Annuities | Discounted cash flow | Minimum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Lapse rates | 0.50% | 1.00% |
Mortality multiplier | 42.00% | 101.00% |
Options Budget | 1.00% | 1.00% |
Index Annuities | Discounted cash flow | Maximum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Lapse rates | 40.00% | 66.00% |
Mortality multiplier | 162.00% | 103.00% |
Options Budget | 4.00% | 4.00% |
Index Life | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 515 | $ 381 |
Index Life | Discounted cash flow | Minimum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Base lapse rates | 2.00% | 2.00% |
Mortality rates | 0.00% | 0.00% |
Index Life | Discounted cash flow | Maximum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Base lapse rates | 19.00% | 19.00% |
Mortality rates | 40.00% | 40.00% |
GMWB and GMAB | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Change in equity volatilities assumption | $ 0 | |
Change in equity/interest rate correlation assumption | $ 0 |
FAIR VALUE MEASUREMENTS (Deta81
FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 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 | $ 5,997 | $ 6,741 |
Unfunded Commitments | 1,239 | 1,279 |
Direct private equity | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 2,128 | 2,254 |
Unfunded Commitments | $ 1,227 | 1,248 |
Average original expected lives | 10 years | |
Direct private equity | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives, Increments | 2 years | |
Direct private equity | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives, Increments | 1 year | |
Direct private equity | 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 | 58.00% | |
Direct private equity | 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 | 0 years | |
Direct private equity | 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% | |
Direct private equity | 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 | 0 years | |
Direct private equity | 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 | 0 years | |
Direct private equity | 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 | 25.00% | |
Direct private equity | 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 | 0 years | |
Direct private equity | 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 | 0 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 | $ 1,243 | 1,424 |
Unfunded Commitments | 706 | 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 | 210 | 258 |
Unfunded Commitments | 187 | 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 | 134 | 137 |
Unfunded Commitments | 73 | 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 | 113 | 123 |
Unfunded Commitments | 42 | 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 | 428 | 312 |
Unfunded Commitments | 219 | 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 | 3,869 | 4,487 |
Unfunded Commitments | $ 12 | 31 |
Hedge fund investments redeemable monthly (as a percent) | 22.00% | |
Hedge fund investments redeemable quarterly (as a percent) | 43.00% | |
Hedge fund investments redeemable semi-annually (as a percent) | 12.00% | |
Hedge fund investments redeemable annually (as a percent) | 23.00% | |
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 49.00% | |
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 | $ 1,128 | 1,453 |
Unfunded Commitments | 0 | 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 | 1,233 | 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 | 1,011 | 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 | 266 | 416 |
Unfunded Commitments | 8 | 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 | 231 | 197 |
Unfunded Commitments | $ 4 | $ 14 |
FAIR VALUE MEASUREMENTS (Deta82
FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments for which we elected the fair value option) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | $ 4 | $ 22 | $ (4) |
Fair Value Option | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 2,105 | 466 | 613 |
Fair Value Option | Long-term debt | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | (49) | (9) | (38) |
Fair Value Option | Other liabilities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | (2) | 0 | (3) |
Fair Value Option | Bond and equity securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 1,646 | 447 | 616 |
Fair Value Option | Alternative investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 509 | 28 | 36 |
Fair Value Option | Other, Including Short Term Investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | $ 1 | $ 0 | $ 2 |
FAIR VALUE MEASUREMENTS (Deta83
FAIR VALUE MEASUREMENTS (Details - Difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term borrowings for which the fair value option was elected) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage and other loans receivable, Fair Value | $ 5 | $ 11 |
Mortgage and other loans receivable, Outstanding Principal Amount | 37,345 | 33,537 |
Long-term debt, Fair Value | 2,888 | 3,428 |
Long-term debt, Outstanding Principal Amount | 31,640 | 30,912 |
Fair Value Option | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage and other loans receivable, Fair Value | 5 | 11 |
Mortgage and other loans receivable, Outstanding Principal Amount | 5 | 8 |
Mortgage and other loans receivable, Difference | 0 | 3 |
Long-term debt, Fair Value | 2,888 | 3,428 |
Long-term debt, Outstanding Principal Amount | 2,280 | 2,628 |
Long-term debt, Difference | $ 608 | $ 800 |
Disclosure level, past due mortgage or other loans receivable for which the fair value option was elected, number of days past due threshold | 0 days |
FAIR VALUE MEASUREMENTS (Deta84
FAIR VALUE MEASUREMENTS (Details - Assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | $ 594 | $ 492 | $ 809 |
Fair value on a non-recurring basis | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 77 | 76 | 189 |
Fair value on a non-recurring basis | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 360 | 397 | 540 |
Fair value on a non-recurring basis | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 157 | 19 | $ 80 |
Fair value on a non-recurring basis | Other assets | Divested Businesses | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 35 | ||
Fair value on a non-recurring basis | Level 1 | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 1 | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 1 | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 3 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 55 | 1,102 | |
Fair value on a non-recurring basis | Level 3 | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 55 | 364 | |
Fair value on a non-recurring basis | Level 3 | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 736 | |
Fair value on a non-recurring basis | Level 3 | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 2 | |
Fair value on a non-recurring basis | 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 | 55 | 1,102 | |
Fair value on a non-recurring basis | Total Fair Value | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 55 | 364 | |
Fair value on a non-recurring basis | Total Fair Value | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 736 | |
Fair value on a non-recurring basis | Total Fair Value | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | $ 0 | $ 2 |
FAIR VALUE MEASUREMENTS (Deta85
FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Mortgage and other loans receivable | $ 37,023 | $ 33,240 | ||
Short-term investments | 10,386 | 12,302 | ||
Cash | 2,362 | 1,868 | $ 1,629 | $ 1,758 |
Liabilities: | ||||
Other liabilities | 26,050 | 26,296 | ||
Long-term Debt | 31,640 | 30,912 | ||
Total Fair Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 37,761 | 33,736 | ||
Other invested assets | 596 | 3,008 | ||
Short-term investments | 7,771 | 8,961 | ||
Cash | 2,362 | 1,868 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 122,196 | 122,124 | ||
Other liabilities | 4,494 | 4,196 | ||
Long-term Debt | 28,243 | 26,450 | ||
Level 1 | ||||
Assets: | ||||
Mortgage and other loans receivable | 0 | 0 | ||
Other invested assets | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Cash | 2,362 | 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 | 117 | 161 | ||
Other invested assets | 590 | 955 | ||
Short-term investments | 7,771 | 8,961 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 387 | 382 | ||
Other liabilities | 4,494 | 4,196 | ||
Long-term Debt | 23,930 | 23,117 | ||
Level 3 | ||||
Assets: | ||||
Mortgage and other loans receivable | 37,644 | 33,575 | ||
Other invested assets | 6 | 2,053 | ||
Short-term investments | 0 | 0 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 121,809 | 121,742 | ||
Other liabilities | 0 | 0 | ||
Long-term Debt | 4,313 | 3,333 | ||
Carrying Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 37,018 | 33,229 | ||
Other invested assets | 593 | 3,474 | ||
Short-term investments | 7,771 | 8,961 | ||
Cash | 2,362 | 1,868 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 114,326 | 112,705 | ||
Other liabilities | 4,494 | 4,196 | ||
Long-term Debt | $ 28,752 | $ 27,484 |
INVESTMENTS (Details - Amortize
INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 226,766 | $ 233,938 |
Available for sale securities, Gross Unrealized Gains | 15,315 | 12,817 |
Available for sale securities, Gross Unrealized Losses | (1,381) | (3,140) |
Available-for-sale Securities | 240,700 | 243,615 |
AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,656 | 1,265 |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 225,461 | 232,241 |
Available for sale securities, Gross Unrealized Gains | 14,891 | 12,421 |
Available for sale securities, Gross Unrealized Losses | (1,360) | (3,125) |
Available-for-sale Securities | 238,992 | 241,537 |
Other details of available for sale securities | ||
Available for sale securities not rated or rated below investment grade | 31,500 | 33,600 |
Bonds available for sale | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,656 | 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 | 2,532 | 1,870 |
Available for sale securities, Gross Unrealized Gains | 160 | 148 |
Available for sale securities, Gross Unrealized Losses | (36) | (26) |
Available-for-sale Securities | 2,656 | 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 | 17,377 | 24,025 |
Available for sale securities, Gross Unrealized Gains | 1,297 | 1,001 |
Available for sale securities, Gross Unrealized Losses | (30) | (254) |
Available-for-sale Securities | 18,644 | 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. governments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 15,059 | 14,018 |
Available for sale securities, Gross Unrealized Gains | 717 | 773 |
Available for sale securities, Gross Unrealized Losses | (117) | (256) |
Available-for-sale Securities | 15,659 | 14,535 |
Bonds available for sale | Non-U.S. governments | 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 | 126,310 | 126,648 |
Available for sale securities, Gross Unrealized Gains | 8,666 | 7,271 |
Available for sale securities, Gross Unrealized Losses | (800) | (1,739) |
Available-for-sale Securities | 134,176 | 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 | 17 | (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 | 64,183 | 65,680 |
Available for sale securities, Gross Unrealized Gains | 4,051 | 3,228 |
Available for sale securities, Gross Unrealized Losses | (377) | (850) |
Available-for-sale Securities | 67,857 | 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 | 1,639 | 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 | 34,181 | 35,311 |
Available for sale securities, Gross Unrealized Gains | 3,273 | 2,541 |
Available for sale securities, Gross Unrealized Losses | (220) | (478) |
Available-for-sale Securities | 37,234 | 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 | 1,568 | 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 | 13,538 | 14,054 |
Available for sale securities, Gross Unrealized Gains | 408 | 409 |
Available for sale securities, Gross Unrealized Losses | (105) | (192) |
Available-for-sale Securities | 13,841 | 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 | 42 | 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 | 16,464 | 16,315 |
Available for sale securities, Gross Unrealized Gains | 370 | 278 |
Available for sale securities, Gross Unrealized Losses | (52) | (180) |
Available-for-sale Securities | 16,782 | 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 | 29 | 39 |
Equity securities available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 1,305 | 1,697 |
Available for sale securities, Gross Unrealized Gains | 424 | 396 |
Available for sale securities, Gross Unrealized Losses | (21) | (15) |
Available-for-sale Securities | 1,708 | 2,078 |
Equity securities available for sale | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 703 | 708 |
Available for sale securities, Gross Unrealized Gains | 379 | 369 |
Available for sale securities, Gross Unrealized Losses | (21) | (12) |
Available-for-sale Securities | 1,061 | 1,065 |
Equity securities available for sale | Preferred Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 504 | 748 |
Available for sale securities, Gross Unrealized Gains | 29 | 4 |
Available for sale securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 533 | 752 |
Equity securities available for sale | Mutual Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 98 | 241 |
Available for sale securities, Gross Unrealized Gains | 16 | 23 |
Available for sale securities, Gross Unrealized Losses | 0 | (3) |
Available-for-sale Securities | $ 114 | $ 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 | Dec. 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 | $ 31,657 | $ 57,397 |
Gross Unrealized Losses, Less than 12 Months | 726 | 1,943 |
Fair Value, 12 Months or More | 15,127 | 13,285 |
Gross Unrealized Losses, 12 Months or More | 655 | 1,197 |
Fair Value, Total | 46,784 | 70,682 |
Gross Unrealized Losses, Total | 1,381 | 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 | 31,520 | 57,208 |
Gross Unrealized Losses, Less than 12 Months | 705 | 1,928 |
Fair Value, 12 Months or More | 15,127 | 13,285 |
Gross Unrealized Losses, 12 Months or More | 655 | 1,197 |
Fair Value, Total | 46,647 | 70,493 |
Gross Unrealized Losses, Total | $ 1,360 | 3,125 |
Number of securities in an unrealized loss position | item | 7,448 | |
Number of individual securities in continuous unrealized loss position for longer than twelve months | item | 1,920 | |
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 | $ 770 | 720 |
Gross Unrealized Losses, Less than 12 Months | 23 | 26 |
Fair Value, 12 Months or More | 332 | 0 |
Gross Unrealized Losses, 12 Months or More | 13 | 0 |
Fair Value, Total | 1,102 | 720 |
Gross Unrealized Losses, Total | 36 | 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 | 586 | 5,814 |
Gross Unrealized Losses, Less than 12 Months | 6 | 221 |
Fair Value, 12 Months or More | 646 | 231 |
Gross Unrealized Losses, 12 Months or More | 24 | 33 |
Fair Value, Total | 1,232 | 6,045 |
Gross Unrealized Losses, Total | 30 | 254 |
Bonds available for sale | Non-U.S. governments | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 3,511 | 3,865 |
Gross Unrealized Losses, Less than 12 Months | 54 | 162 |
Fair Value, 12 Months or More | 857 | 489 |
Gross Unrealized Losses, 12 Months or More | 63 | 94 |
Fair Value, Total | 4,368 | 4,354 |
Gross Unrealized Losses, Total | 117 | 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 | 15,578 | 28,184 |
Gross Unrealized Losses, Less than 12 Months | 453 | 1,013 |
Fair Value, 12 Months or More | 7,291 | 6,080 |
Gross Unrealized Losses, 12 Months or More | 347 | 726 |
Fair Value, Total | 22,869 | 34,264 |
Gross Unrealized Losses, Total | 800 | 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 | 6,212 | 8,794 |
Gross Unrealized Losses, Less than 12 Months | 99 | 252 |
Fair Value, 12 Months or More | 3,790 | 4,045 |
Gross Unrealized Losses, 12 Months or More | 121 | 226 |
Fair Value, Total | 10,002 | 12,839 |
Gross Unrealized Losses, Total | 220 | 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 | 3,408 | 4,469 |
Gross Unrealized Losses, Less than 12 Months | 46 | 152 |
Fair Value, 12 Months or More | 1,389 | 479 |
Gross Unrealized Losses, 12 Months or More | 59 | 40 |
Fair Value, Total | 4,797 | 4,948 |
Gross Unrealized Losses, Total | 105 | 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 | 1,455 | 5,362 |
Gross Unrealized Losses, Less than 12 Months | 24 | 102 |
Fair Value, 12 Months or More | 822 | 1,961 |
Gross Unrealized Losses, 12 Months or More | 28 | 78 |
Fair Value, Total | 2,277 | 7,323 |
Gross Unrealized Losses, Total | 52 | 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 | 137 | 189 |
Gross Unrealized Losses, Less than 12 Months | 21 | 15 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 137 | 189 |
Gross Unrealized Losses, Total | $ 21 | 15 |
Number of securities in an unrealized loss position | item | 74 | |
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 | $ 136 | 125 |
Gross Unrealized Losses, Less than 12 Months | 21 | 12 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 136 | 125 |
Gross Unrealized Losses, Total | 21 | 12 |
Equity securities available for sale | Preferred Stock | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 0 | 0 |
Gross Unrealized Losses, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 0 | 0 |
Gross Unrealized Losses, Total | 0 | 0 |
Equity securities available for sale | Mutual Funds | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 1 | 64 |
Gross Unrealized Losses, Less than 12 Months | 0 | 3 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 1 | 64 |
Gross Unrealized Losses, Total | $ 0 | $ 3 |
INVESTMENTS (Details - Amorti88
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 226,766 | $ 233,938 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 238,992 | 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 | 1,526 | 604 |
Due after one year through five years, Amortized Cost | 7,764 | 6,002 |
Due after five years through ten years, Amortized Cost | 11,559 | 16,045 |
Due after ten years, Amortized Cost | 9,705 | 25,007 |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 17,453 | 25,960 |
Available for sale securities, Amortized Cost, Total | 48,007 | 73,618 |
Due in one year or less, Fair Value | 1,515 | 581 |
Due after one year through five years, Fair Value | 7,571 | 5,841 |
Due after five years through ten years, Fair Value | 11,143 | 15,332 |
Due after ten years, Fair Value | 9,342 | 23,629 |
Mortgage-backed, asset-backed and collateralized, Fair Value | 17,076 | 25,110 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 46,647 | 70,493 |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | 7,932 | 7,796 |
Due after one year through five years, Amortized Cost | 47,179 | 49,200 |
Due after five years through ten years, Amortized Cost | 42,617 | 43,308 |
Due after ten years, Amortized Cost | 63,550 | 66,257 |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 64,183 | 65,680 |
Available for sale securities, Amortized Cost, Total | 225,461 | 232,241 |
Due in one year or less, Fair Value | 8,071 | 7,994 |
Due after one year through five years, Fair Value | 49,093 | 51,958 |
Due after five years through ten years, Fair Value | 43,944 | 44,226 |
Due after ten years, Fair Value | 70,027 | 69,301 |
Mortgage-backed, asset-backed and collateralized, Fair Value | 67,857 | 68,058 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | $ 238,992 | $ 241,537 |
INVESTMENTS (Details - Realized
INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | $ 832 | $ 1,873 | $ 1,577 |
Gross Realized Losses | 319 | 815 | 451 |
Aggregate fair value of available for sale securities sold | 31,300 | 30,200 | 28,700 |
Net realized capital gains (losses) | 500 | 1,100 | 1,100 |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 725 | 801 | 517 |
Gross Realized Losses | 300 | 800 | 423 |
Equity securities available for sale | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 107 | 1,072 | 1,060 |
Gross Realized Losses | $ 19 | $ 15 | $ 28 |
INVESTMENTS (Details - Value of
INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 13,361 | $ 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 | $ 251 | $ 421 |
Fixed maturity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 12,772 | $ 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 | $ 2,802 | $ 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. governments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 57 | $ 51 |
Other Securities, Percent of Total | 1.00% | 0.00% |
Fixed maturity securities | Corporate debt | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 1,909 | $ 1,772 |
Other Securities, Percent of Total | 14.00% | 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 | $ 8,004 | $ 9,236 |
Other Securities, Percent of Total | 60.00% | 65.00% |
Fixed maturity securities | Residential mortgage-backed securities (RMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 1,885 | $ 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 | $ 559 | $ 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 | $ 5,560 | $ 6,608 |
Other Securities, Percent of Total | 42.00% | 47.00% |
Fixed maturity securities | Other | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 0 | $ 0 |
Other Securities, Percent of Total | 0.00% | 0.00% |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 589 | $ 482 |
Other Securities, Percent of Total | 4.00% | 3.00% |
INVESTMENTS (Details - Carrying
INVESTMENTS (Details - Carrying values of other invested assets) - USD ($) $ in Millions | 12 Months Ended | 72 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2024 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment [Line Items] | |||||
Other invested assets | $ 20,822 | $ 24,538 | |||
Other invested assets, gross unrealized losses | 45 | 32 | |||
Hedge Funds | |||||
Investment [Line Items] | |||||
Hedge Fund Fair Value Redemption, Additional Percentage | 15.00% | 72.00% | 7.00% | ||
Alternative investments | |||||
Investment [Line Items] | |||||
Other invested assets | 11,308 | 13,379 | |||
Alternative investments | Hedge Funds | |||||
Investment [Line Items] | |||||
Other invested assets | 5,800 | 7,200 | |||
Alternative investments | Direct private equity | |||||
Investment [Line Items] | |||||
Other invested assets | 5,000 | 5,500 | |||
Alternative investments | Affordable Housing Partnerships | |||||
Investment [Line Items] | |||||
Other invested assets | 543 | 625 | |||
Mutual Funds | |||||
Investment [Line Items] | |||||
Other invested assets | 0 | ||||
Investment real estate | |||||
Investment [Line Items] | |||||
Other invested assets | 8,258 | 6,900 | |||
Net of accumulated depreciation on investment in real estate | 515 | 451 | |||
Aircraft asset investments | |||||
Investment [Line Items] | |||||
Other invested assets | 206 | 321 | |||
Investment In Aer Cap [Member] | |||||
Investment [Line Items] | |||||
Other invested assets | 0 | 0 | |||
Investments in life settlements | |||||
Investment [Line Items] | |||||
Other invested assets | 0 | 2,516 | |||
All other investments | |||||
Investment [Line Items] | |||||
Other invested assets | $ 1,050 | $ 1,422 |
INVESTMENTS (Details - Equity m
INVESTMENTS (Details - Equity method investments) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Other Invested Assets - Equity Method Investments | |
Investee's reporting period prior to the end of entity's reporting period | 1 month |
Maximum | |
Other Invested Assets - Equity Method Investments | |
Investee's reporting period prior to the end of entity's reporting period | 3 months |
INVESTMENTS (Details - Summariz
INVESTMENTS (Details - Summarized financial information of equity method investees) - All other equity method investments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating results: | |||
Total revenues | $ 13,066 | $ 9,512 | $ 22,055 |
Total expenses | (6,835) | (7,361) | (3,898) |
Net income | 6,231 | 2,151 | $ 18,157 |
Balance sheet: | |||
Total assets | 132,708 | 158,306 | |
Total liabilities | (35,585) | (37,336) | |
Equity method investments, Carrying Value | $ 9,050 | $ 10,756 |
INVESTMENTS (Details - Life set
INVESTMENTS (Details - Life settlements) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVESTMENTS | |||
Income recognized on life settlement contracts | $ 266 | $ 453 | $ 332 |
Investment in Life Settlements contracts | 0 | ||
Anticipated life insurance premiums | |||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | $ 0 |
INVESTMENTS (Details - Componen
INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment [Line Items] | |||
Total investment income | $ 14,699 | $ 14,518 | $ 14,581 |
Investment expenses | 520 | 453 | 528 |
Net investment income | 14,179 | 14,065 | 14,053 |
Fixed maturity securities, including short-term investments | |||
Investment [Line Items] | |||
Total investment income | 10,435 | 11,314 | 11,331 |
Other fixed maturity securities | |||
Investment [Line Items] | |||
Total investment income | 660 | 331 | 1 |
Equity securities | |||
Investment [Line Items] | |||
Total investment income | 34 | (5) | 99 |
Interest on mortgage and other loans | |||
Investment [Line Items] | |||
Total investment income | 1,661 | 1,526 | 1,417 |
Alternative investments | |||
Investment [Line Items] | |||
Total investment income | 1,475 | 693 | 1,120 |
Real estate | |||
Investment [Line Items] | |||
Total investment income | 144 | 150 | 181 |
Other investments | |||
Investment [Line Items] | |||
Total investment income | $ 290 | $ 509 | $ 432 |
INVESTMENTS (Details - Compon96
INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other-than-temporary impairments: | |||
Severity | $ (2) | $ (15) | $ (13) |
Change in intent | (9) | (46) | (233) |
Foreign currency declines | (11) | (18) | (57) |
Issuer-specific credit events | (234) | (433) | (348) |
Adverse projected cash flows | (4) | (47) | (20) |
Provision for loan losses | (50) | 10 | (58) |
Foreign exchange transactions | 489 | (1,226) | 416 |
All other derivatives and hedge accounting | (368) | 299 | 78 |
Impairments on investments in life settlements | (360) | (397) | (540) |
Other | 30 | 114 | 105 |
Total net realized capital gains (losses) | (1,380) | (1,944) | 776 |
Net realized capital gains (losses) | (1,380) | (1,944) | 776 |
Prudential Financial | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | 107 | 428 | |
Net realized capital gains (losses) | 107 | 428 | |
SpringLeaf Holdings | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | 357 | ||
Net realized capital gains (losses) | 357 | ||
AerCap | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | (463) | ||
Net realized capital gains (losses) | (463) | ||
Investments in life settlements | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | (253) | ||
Net realized capital gains (losses) | (253) | ||
Fixed maturity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | 425 | 1 | 94 |
Equity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | $ 88 | $ 1,057 | $ 1,032 |
INVESTMENTS (Details - Increase
INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $ 4,062 | $ 605 |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | 4,235 | 2,019 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | 22 | (1,155) |
Other investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $ (195) | $ (259) |
INVESTMENTS (Details - Rollforw
INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed maturity securities | |||
Other Than Temporary Impairment Credit Losses Recognized in Earnings | |||
Balance, beginning of year | $ 1,098 | $ 1,747 | $ 2,659 |
Increases due to: | |||
Credit impairments on new securities subject to impairment losses | 122 | 204 | 111 |
Additional credit impairments on previously impaired securities | 74 | 212 | 109 |
Reductions due to: | |||
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell | (99) | (296) | (399) |
Credit impaired securities for which there is a current intent or anticipated requirement to sell | 0 | 0 | 2 |
Accretion on securities previously impaired due to credit | (669) | (767) | (735) |
Divested Businesses | 0 | (2) | |
Other | 0 | 0 | 0 |
Balance, end of year | $ 526 | $ 1,098 | $ 1,747 |
Equity securities | |||
Reductions due to: | |||
Percent discount to cost for purposes of evaluating other-than-temporary impairment | 25.00% | ||
Criteria for considering impairment, period over which securities have been in a continuous decline in a value below cost | 12 months | ||
Rapid and severe percent discount to cost for purposes of evaluating other-than-temporary impairment | 50.00% | ||
Criteria for considering impairment, period of time traded at discount | 9 months |
INVESTMENTS (Details - Purchase
INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 225,461 | $ 232,241 |
Fair value | 240,700 | 243,615 |
Purchased Credit Impaired (PCI) Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Contractually required payments (principal and interest) | 36,642 | |
Cash flows expected to be collected | 30,040 | |
Recorded investment in acquired securities | 20,267 | |
Outstanding principal balance | 14,718 | 16,728 |
Amortized cost | 10,492 | 11,987 |
Fair value | 12,293 | 12,922 |
Available for sale securities | Purchased Credit Impaired (PCI) Securities | ||
Changes in activity for the accretable yield on PCI securities: | ||
Balance, beginning of period | 7,498 | 6,846 |
Newly purchased PCI securities | 190 | 707 |
Disposals | (18) | 0 |
Accretion | (797) | (842) |
Effect of changes in interest rate indices | (34) | 39 |
Net reclassification from non-accretable difference, including effects of prepayments | 662 | 748 |
Balance, end of period | $ 7,501 | $ 7,498 |
INVESTMENTS (Details - Pledged
INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Fair value of securities collateral pledged | $ 2,227 | $ 1,434 |
Fair value of amount sold or repledged | 46 | 11 |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 4,900 | 4,900 |
Short-term investments held in escrow | 523 | |
Bonds available for sale and Short-term investments held in escrow | 255 | |
FHLBs | ||
Investment [Line Items] | ||
Fair value of fixed maturities securities available for sale | 2,700 | 3,400 |
Amount owned by subsidiaries | 93 | 114 |
Residential loans pledged as collateral | 471 | |
Secured financing | ||
Investment [Line Items] | ||
Fair value of fixed maturities securities available for sale | 2,911 | 2,389 |
Fair value of other bond securities | 1,585 | 1,799 |
Amounts Borrowed Under Repurchase and Securities Lending Agreements | 4,500 | 4,200 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,581 | |
Securities Lending Agreements, Fair Value of Collateral | 2,915 | 2,389 |
Amounts Loaned under Reverse Repurchase Agreements | 2,200 | 1,400 |
Secured financing | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,799 | |
Secured financing | Overnight and continuous | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 44 | |
Secured financing | Overnight and continuous | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | Up to 30 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 407 | |
Securities Lending Agreements, Fair Value of Collateral | 588 | |
Secured financing | Up to 30 Days | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 163 | |
Secured financing | 31 to 90 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,130 | |
Securities Lending Agreements, Fair Value of Collateral | 2,327 | 1,577 |
Secured financing | 31 to 90 Days | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 860 | |
Secured financing | 91 to 364 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | 91 to 364 Days | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 776 | |
Secured financing | 365 Days or Greater | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | 365 Days or Greater | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, 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 | 0 | |
Secured financing | Bonds available for sale | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 26 | |
Securities Lending Agreements, Fair Value of Collateral | 18 | 50 |
Secured financing | Bonds available for sale | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 48 | |
Securities Lending Agreements, Fair Value of Collateral | 2,819 | 2,257 |
Secured financing | Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 61 | |
Secured financing | Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | Overnight and continuous | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | Overnight and continuous | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
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 | 0 | |
Secured financing | Bonds available for sale | Up to 30 Days | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 7 | |
Secured financing | Bonds available for sale | Up to 30 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 13 | |
Securities Lending Agreements, Fair Value of Collateral | 588 | |
Secured financing | Bonds available for sale | 31 to 90 Days | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 19 | |
Securities Lending Agreements, Fair Value of Collateral | 18 | 50 |
Secured financing | Bonds available for sale | 31 to 90 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 35 | |
Securities Lending Agreements, Fair Value of Collateral | 2,231 | 1,466 |
Secured financing | Bonds available for sale | 31 to 90 Days | Commercial mortgage-backed securities (CMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Corporate debt | ||
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 | 91 to 364 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 | 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 | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | 365 Days or Greater | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 44 | |
Secured financing | Other bond securities | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 11 | 51 |
Secured financing | Other bond securities | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,452 | 1,748 |
Secured financing | Other bond securities | Overnight and continuous | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 44 | |
Secured financing | Other bond securities | Overnight and continuous | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | Overnight and continuous | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | Up to 30 Days | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Up to 30 Days | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 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 | 387 | 163 |
Secured financing | Other bond securities | 31 to 90 Days | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | 31 to 90 Days | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 11 | 0 |
Secured financing | Other bond securities | 31 to 90 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,065 | 860 |
Secured financing | Other bond securities | 91 to 364 Days | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | 91 to 364 Days | Non-U.S. governments | ||
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 | 0 | 725 |
Secured financing | Other bond securities | 365 Days or Greater | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | 365 Days or Greater | Non-U.S. governments | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 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 | 0 |
GIAs | ||
Investment [Line Items] | ||
Fair value of other bond securities | $ 2,000 | $ 2,200 |
LENDING ACTIVITIES (Details - C
LENDING ACTIVITIES (Details - Composition of Mortgages and other loans receivable) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 37,345 | $ 33,537 | ||
Allowance for losses | (322) | (297) | $ (308) | $ (271) |
Mortgage and other loans receivable, net | 37,023 | 33,240 | ||
Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 28,596 | 25,042 | ||
Allowance for losses | $ (247) | $ (194) | $ (171) | $ (159) |
Commercial mortgages | California | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 12.00% | 12.00% | ||
Commercial mortgages | New York | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 23.00% | 24.00% | ||
Residential Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 5,398 | $ 3,828 | ||
Life insurance policy loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 2,295 | 2,367 | ||
Commercial loans, other loans and notes receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 1,056 | $ 2,300 |
LENDING ACTIVITIES (Details 102
LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commercial Mortgage Recorded Investment [Line Items] | ||||
Mortgage and other loans receivable, net | $ 37,023 | $ 33,240 | ||
Allowance for credit losses | 322 | 297 | $ 308 | $ 271 |
Total mortgage and other loans receivable | 37,345 | 33,537 | ||
Apartments | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 8,163 | 6,005 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 8,163 | 6,005 | ||
Allowance for credit losses, Specific | 0 | 0 | ||
Allowance for credit losses, General | 72 | 35 | ||
Allowance for credit losses | 72 | 35 | ||
Offices | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 8,585 | 7,830 | ||
Restructured | 115 | 134 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 8,700 | 7,964 | ||
Allowance for credit losses, Specific | 3 | 3 | ||
Allowance for credit losses, General | 94 | 72 | ||
Allowance for credit losses | 97 | 75 | ||
Retail | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 5,338 | 5,179 | ||
Restructured | 23 | 18 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 5,361 | 5,197 | ||
Allowance for credit losses, Specific | 1 | 1 | ||
Allowance for credit losses, General | 37 | 41 | ||
Allowance for credit losses | 38 | 42 | ||
Industrial | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 2,023 | 1,898 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 2,023 | 1,898 | ||
Allowance for credit losses, Specific | 0 | 6 | ||
Allowance for credit losses, General | 6 | 7 | ||
Allowance for credit losses | 6 | 13 | ||
Hotel | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 2,373 | 2,373 | ||
Restructured | 16 | 16 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 2,389 | 2,389 | ||
Allowance for credit losses, Specific | 1 | 1 | ||
Allowance for credit losses, General | 15 | 13 | ||
Allowance for credit losses | 16 | 14 | ||
Others | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,960 | 1,589 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 1,960 | 1,589 | ||
Allowance for credit losses, Specific | 0 | 0 | ||
Allowance for credit losses, General | 18 | 15 | ||
Allowance for credit losses | $ 18 | $ 15 | ||
Commercial mortgages | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Number of loans in good standing | loan | 778 | 784 | ||
Number of loans restructured | loan | 5 | 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 | 783 | 788 | ||
In good standing | $ 28,442 | $ 24,874 | ||
Restructured | 154 | 168 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 28,596 | 25,042 | ||
Allowance for credit losses, Specific | 5 | 11 | ||
Allowance for credit losses, General | 242 | 183 | ||
Allowance for credit losses | $ 247 | $ 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 valuation allowance, Specific | 0.00% | 0.00% | ||
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 | $ 28,596 | $ 25,042 | ||
Commercial mortgages | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 26,023 | 21,661 | ||
Commercial mortgages | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,964 | 2,835 | ||
Commercial mortgages | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 609 | 546 | ||
Commercial mortgages | Less than 65% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 19,876 | 15,924 | ||
Commercial mortgages | Less than 65% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 18,000 | 13,998 | ||
Commercial mortgages | Less than 65% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,525 | 1,694 | ||
Commercial mortgages | Less than 65% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 351 | 232 | ||
Commercial mortgages | 65% to 75% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 6,415 | 6,583 | ||
Commercial mortgages | 65% to 75% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 6,038 | 5,946 | ||
Commercial mortgages | 65% to 75% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 193 | 575 | ||
Commercial mortgages | 65% to 75% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 184 | 62 | ||
Commercial mortgages | 76% to 80% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 609 | 1,467 | ||
Commercial mortgages | 76% to 80% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 569 | 1,246 | ||
Commercial mortgages | 76% to 80% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 40 | 174 | ||
Commercial mortgages | 76% to 80% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 0 | 47 | ||
Commercial mortgages | Greater than 80% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,696 | 1,068 | ||
Commercial mortgages | Greater than 80% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,416 | 471 | ||
Commercial mortgages | Greater than 80% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 206 | 392 | ||
Commercial mortgages | Greater than 80% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | $ 74 | $ 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 | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | $ 297 | $ 308 | $ 271 |
Loans charged off | (25) | (15) | (29) |
Recoveries of loans previously charged off | 1 | 11 | 5 |
Net charge-offs | (24) | (4) | (24) |
Provision for loan losses | 49 | (7) | 58 |
Other | 0 | 0 | 3 |
Activity of discontinued operations | 0 | 0 | 0 |
Allowance, end of period | 322 | 297 | 308 |
Loans modified in a troubled debt restructuring | 237 | 0 | |
Commercial mortgages | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | 194 | 171 | 159 |
Loans charged off | (22) | (13) | (23) |
Recoveries of loans previously charged off | 0 | 11 | 4 |
Net charge-offs | (22) | (2) | (19) |
Provision for loan losses | 75 | 25 | 31 |
Other | 0 | 0 | 0 |
Activity of discontinued operations | 0 | 0 | 0 |
Allowance, end of period | 247 | 194 | 171 |
Allowance related to individually assessed credit losses | 5 | 11 | 24 |
Commercial mortgage loans | 82 | 280 | 507 |
Other Loans | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | 103 | 137 | 112 |
Loans charged off | (3) | (2) | (6) |
Recoveries of loans previously charged off | 1 | 0 | 1 |
Net charge-offs | (2) | (2) | (5) |
Provision for loan losses | (26) | (32) | 27 |
Other | 0 | 0 | 3 |
Activity of discontinued operations | 0 | 0 | 0 |
Allowance, end of period | $ 75 | $ 103 | $ 137 |
REINSURANCE (Details - Suppleme
REINSURANCE (Details - Supplemental information for loss and benefit reserves, gross and net of ceded reinsurance) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Effects of Reinsurance [Line Items] | ||||
Allowance for doubtful accounts on reinsurance assets | $ 187 | $ 207 | $ 0 | |
Supplemental information for loss and benefit reserves | ||||
Liability for unpaid claims and claims adjustment expense, As Reported | (78,393) | (77,077) | (74,942) | $ (77,260) |
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | (51,685) | (61,545) | $ (60,603) | $ (61,612) |
Future policy benefits for life and accident and health insurance contracts, as reported | (45,432) | (42,204) | ||
Future policy benefits for life and accident and health insurance contracts, Net of Reinsurance | (44,457) | (41,140) | ||
Reserve for unearned premiums, As Reported | (19,030) | (19,634) | ||
Reserve for unearned premiums, Net of Reinsurance | (15,890) | (16,280) | ||
Reinsurance assets | $ 30,823 | $ 19,950 |
REINSURANCE (Details - Short-Du
REINSURANCE (Details - Short-Duration Reinsurance) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums earned: | |||
Net | $ 31,374 | $ 34,393 | $ 36,655 |
Short-duration insurance | |||
Premiums Written | |||
Direct | 30,205 | 33,970 | 37,698 |
Assumed | 3,084 | 2,824 | 2,972 |
Ceded | (7,533) | (7,561) | (7,604) |
Net Amount | 25,756 | 29,233 | 33,066 |
Premiums earned: | |||
Direct | 30,904 | 34,869 | 37,105 |
Assumed | 3,373 | 2,962 | 2,659 |
Ceded | (7,902) | (7,284) | (7,593) |
Net | 26,375 | 30,547 | 32,171 |
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 1,500 | 2,100 | 4,100 |
Ceded loss reserves under retroactive agreements | 13,400 | 1,700 | |
Deferred Gain (Loss) Retroactive Reinsurance | 1,600 | 384 | |
Effect on income from amortization of the deferred gain | $ 316 | $ 30 | $ 8 |
Short-duration insurance | NICO | |||
Premiums earned: | |||
Transfer of reserve, percent | 80.00% | ||
Ceded losses paid, percent | 80.00% | ||
Ceded losses paid aggregate limit, net | $ 20,000 | ||
Covered losses ceded | 13,100 | ||
Unexpired Limit | 6,900 | ||
Total consideration paid, including interest | 10,200 | ||
Short-duration insurance | NICO | Maximum | |||
Premiums earned: | |||
Ceded losses paid in excess, net | 25,000 | ||
Ceded losses paid aggregate limit, net | $ 25,000 |
REINSURANCE (Details - Long-Dur
REINSURANCE (Details - Long-Duration Reinsurance) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 01, 2016USD ($) | Feb. 07, 2014USD ($)item | |
Life insurance ratios | |||||
Assumed insurance as a percent of gross premiums | 1.80% | ||||
Letters of credit | |||||
Letter of credit outstanding | $ 139 | ||||
New letter of credit | |||||
Letters of credit | |||||
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions | $ 450 | ||||
Number of new bilateral letters of credit | item | 2 | ||||
Long-duration insurance in force | |||||
Premiums earned: | |||||
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 1,000 | $ 1,000 | $ 1,000 | ||
Life insurance ratios | |||||
Long-duration insurance in force ceded | $ 202,402 | $ 174,363 | $ 177,025 | ||
Assumed insurance as a percentage of gross long-duration insurance in force | 0.03% | 0.03% | 0.04% | ||
Assumed insurance as a percent of gross premiums | 5.00% | 3.00% | 0.10% | ||
Life insurance companies | |||||
Premiums earned: | |||||
Direct | $ 5,338 | $ 4,732 | $ 5,240 | ||
Ceded | (809) | (789) | (756) | ||
Net | $ 4,529 | 3,943 | $ 4,484 | ||
Letters of credit | |||||
Ceded Statutory Reserves | $ 14,000 | $ 5,000 |
REINSURANCE (Details - Reinsura
REINSURANCE (Details - Reinsurance Security) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Reinsurance Security | |||
Reinsurance assets | $ 30,823 | $ 19,950 | |
Reinsurer Concentration Risk [Member] | |||
Reinsurance Security | |||
Gross reinsurance assets due from reinsurers, percent | 5.00% | ||
Secured | Reinsurer Concentration Risk [Member] | |||
Reinsurance Security | |||
Reinsurance assets | $ 18,000 | 8,200 | $ 0 |
Unsecured | Reinsurer Concentration Risk [Member] | |||
Reinsurance Security | |||
Reinsurance assets | $ 7,600 | $ 4,400 | $ 0 |
DEFERRED POLICY ACQUISITION 108
DEFERRED POLICY ACQUISITION COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year | $ 11,042 | $ 11,115 | $ 9,828 |
Dispositions | (35) | (110) | 0 |
Acquisition costs deferred | 4,820 | 5,216 | 5,825 |
Amortization expense | (4,288) | (4,521) | (5,236) |
Change in net unrealized gains (losses) on securities | (505) | (259) | 848 |
Increase (decrease) due to foreign exchange and other | (40) | 72 | (150) |
Reclassified to Assets held for sale | 0 | (471) | 0 |
Balance, end of year | 10,994 | 11,042 | 11,115 |
Value of business acquired | |||
Amortization of VOBA | 20 | 40 | 64 |
Unamortized balance of VOBA | $ 381 | 393 | 453 |
Percentage of unamortized balance of VOBA expected to be amortized in the next five years | |||
Year one (as a percent) | 8.40% | ||
Year two (as a percent) | 7.80% | ||
Year three (as a percent) | 7.20% | ||
Year four (as a percent) | 6.10% | ||
Year five (as a percent) | 5.90% | ||
Years after five year (as a percent) | 64.60% | ||
Reportable Segments | Life insurance companies | |||
Rollforward of deferred policy acquisition costs | |||
Increase (decrease) in deferred policy acquisition costs due to net unrealized gains and losses on available for sale securities | $ (1,300) | $ (842) | $ (583) |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Bonds available for sale | $ 238,992 | $ 241,537 |
Other bond securities | 12,772 | 13,998 |
Mortgage and other loans receivable | 37,023 | 33,240 |
Other invested assets | 20,822 | 24,538 |
Liabilities: | ||
Long-term Debt | 31,640 | 30,912 |
Held for sale [Member] | ||
Assets: | ||
Mortgage and other loans receivable | 137 | |
Other invested assets | 2 | |
Liabilities: | ||
Long-term Debt | 0 | |
Real Estate and Investment Entities | ||
Liabilities: | ||
Off-balance sheet exposure | 85.8 | 106 |
Securitization Vehicles | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 18,100 | |
Total assets of consolidated securitization vehicles owed to Parent or its subsidiaries | 17,600 | |
Consolidated VIE | ||
Assets: | ||
Bonds available for sale | 9,632 | 10,233 |
Other bond securities | 4,521 | 5,129 |
Mortgage and other loans receivable | 2,290 | 1,547 |
Other invested assets | 4,683 | 4,222 |
Other assets | 2,218 | 1,995 |
Total assets | 23,344 | 23,126 |
Liabilities: | ||
Long-term Debt | 4,134 | 2,973 |
Other liabilities | 595 | 677 |
Total liabilities | 4,729 | 3,650 |
Consolidated VIE | Real Estate and Investment Entities | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 0 | 0 |
Mortgage and other loans receivable | 0 | 1 |
Other invested assets | 1,365 | 1,052 |
Other assets | 302 | 365 |
Total assets | 1,667 | 1,418 |
Liabilities: | ||
Long-term Debt | 680 | 444 |
Other liabilities | 144 | 224 |
Total liabilities | 824 | 668 |
Consolidated VIE | Securitization Vehicles | ||
Assets: | ||
Bonds available for sale | 9,632 | 10,233 |
Other bond securities | 4,518 | 4,858 |
Mortgage and other loans receivable | 2,290 | 1,442 |
Other invested assets | 206 | 321 |
Other assets | 1,481 | 1,104 |
Total assets | 18,127 | 17,958 |
Liabilities: | ||
Long-term Debt | 1,624 | 771 |
Other liabilities | 244 | 203 |
Total liabilities | 1,868 | 974 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total assets of consolidated securitization vehicles owed to Parent or its subsidiaries | 17,600 | 17,300 |
Consolidated VIE | Structured Investment Vehicles | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 0 | 266 |
Mortgage and other loans receivable | 0 | 0 |
Other invested assets | 0 | 0 |
Other assets | 0 | 50 |
Total assets | 0 | 316 |
Liabilities: | ||
Long-term Debt | 0 | 56 |
Other liabilities | 0 | 1 |
Total liabilities | 0 | 57 |
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 | 3,087 | 2,821 |
Other assets | 350 | 384 |
Total assets | 3,437 | 3,205 |
Liabilities: | ||
Long-term Debt | 1,825 | 1,696 |
Other liabilities | 181 | 211 |
Total liabilities | 2,006 | 1,907 |
Consolidated VIE | Other | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 3 | 5 |
Mortgage and other loans receivable | 0 | 104 |
Other invested assets | 25 | 28 |
Other assets | 85 | 92 |
Total assets | 113 | 229 |
Liabilities: | ||
Long-term Debt | 5 | 6 |
Other liabilities | 26 | 38 |
Total liabilities | 31 | 44 |
Unconsolidated VIE | ||
Assets: | ||
Other invested assets | 9,800 | 11,700 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 387,201 | 416,665 |
Maximum Exposure to Loss, On-Balance Sheet | 10,232 | 12,114 |
Maximum Exposure to Loss, Off-Balance Sheet | 3,248 | 3,160 |
Total maximum exposure to loss | 13,480 | 15,274 |
Unconsolidated VIE | Real Estate and Investment Entities | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 380,030 | 409,087 |
Maximum Exposure to Loss, On-Balance Sheet | 9,253 | 11,015 |
Maximum Exposure to Loss, Off-Balance Sheet | 2,043 | 2,115 |
Total maximum exposure to loss | 11,296 | 13,130 |
Unconsolidated VIE | Affordable Housing Partnerships | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 4,468 | 4,709 |
Maximum Exposure to Loss, On-Balance Sheet | 725 | 785 |
Maximum Exposure to Loss, Off-Balance Sheet | 0 | 0 |
Total maximum exposure to loss | 725 | 785 |
Unconsolidated VIE | Other | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 2,703 | 2,869 |
Maximum Exposure to Loss, On-Balance Sheet | 254 | 314 |
Maximum Exposure to Loss, Off-Balance Sheet | 1,205 | 1,045 |
Total maximum exposure to loss | $ 1,459 | $ 1,359 |
DERIVATIVES AND HEDGE ACCOUN110
DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | $ 106,687 | $ 115,897 |
Gross Derivative Assets, Fair Value | 3,545 | 3,977 |
Gross Derivative Liabilities, Notional Amount | 45,888 | 64,938 |
Gross Derivative Liabilities, Fair Value | 3,748 | 4,802 |
Derivative assets, Counterparty netting | (1,464) | (1,265) |
Derivative assets, Cash collateral | (1,159) | (903) |
Total derivative assets on consolidated balance sheet | 922 | 1,809 |
Derivative liabilities, Counterparty netting | (1,464) | (1,265) |
Derivative liabilities, Cash collateral | (1,249) | (1,521) |
Total derivative liabilities on consolidated balance sheet | 1,035 | 2,016 |
Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Fair Value | 4,100 | 3,100 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 0 | 175 |
Gross Derivative Assets, Fair Value | 0 | 0 |
Gross Derivative Liabilities, Notional Amount | 838 | 782 |
Gross Derivative Liabilities, Fair Value | 15 | 11 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 2,823 | 3,527 |
Gross Derivative Assets, Fair Value | 173 | 385 |
Gross Derivative Liabilities, Notional Amount | 4,783 | 2,602 |
Gross Derivative Liabilities, Fair Value | 350 | 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 | 159 | 113 |
Gross Derivative Liabilities, Fair Value | 19 | 7 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 37,751 | 51,030 |
Gross Derivative Assets, Fair Value | 2,171 | 2,328 |
Gross Derivative Liabilities, Notional Amount | 26,461 | 44,211 |
Gross Derivative Liabilities, Fair Value | 2,185 | 3,066 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 6,305 | 9,468 |
Gross Derivative Assets, Fair Value | 658 | 935 |
Gross Derivative Liabilities, Notional Amount | 11,093 | 7,674 |
Gross Derivative Liabilities, Fair Value | 895 | 1,185 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 19,975 | 14,060 |
Gross Derivative Assets, Fair Value | 522 | 305 |
Gross Derivative Liabilities, Notional Amount | 1,130 | 8,633 |
Gross Derivative Liabilities, Fair Value | 2 | 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 | 4 | 4 |
Gross Derivative Assets, Fair Value | 1 | 2 |
Gross Derivative Liabilities, Notional Amount | 1,365 | 861 |
Gross Derivative Liabilities, Fair Value | 277 | 331 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 39,829 | 37,633 |
Gross Derivative Assets, Fair Value | 20 | 22 |
Gross Derivative Liabilities, Notional Amount | 59 | 62 |
Gross Derivative Liabilities, Fair Value | 5 | 6 |
Derivatives not designated as hedging instruments | Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Notional Amount | 685 | 801 |
Gross Derivative Liabilities, Fair Value | $ 254 | $ 308 |
DERIVATIVES AND HEDGE ACCOUN111
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Collateral | ||
Collateral posted to third parties for derivative transactions | $ 2.9 | $ 4.5 |
Collateral obtained from third parties for derivative transactions | $ 1.3 | $ 1.5 |
DERIVATIVES AND HEDGE ACCOUN112
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $ (106) | $ 123 | $ 90 |
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 | (4) | (7) | 0 |
Gain (loss) recognized in earnings on hedged items | 4 | 1 | 1 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 1 | 1 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | (7) | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Interest credited to policyholder account balances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 0 | 0 | 0 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 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 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 0 | 10 | 9 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 10 | 9 |
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 | 0 |
Gain (loss) recognized in earnings on hedged items | 0 | 0 | 14 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 0 | 14 |
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 | (420) | 294 | 202 |
Gain (loss) recognized in earnings on hedged items | 393 | (335) | (167) |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | (26) | (41) | 32 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 0 | 3 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Interest credited to policyholder account balances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 0 | 0 | (1) |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 0 | (1) |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 4 | 24 | 17 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 4 | 24 | 17 |
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 | 0 |
Gain (loss) recognized in earnings on hedged items | 0 | 0 | 17 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 0 | 17 |
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 | (47) | 10 | (45) |
Gain (loss) recognized in earnings on hedged items | 42 | (11) | 45 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | (5) | (1) | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 0 | 0 |
Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (1,501) | (725) | 876 |
Derivatives not designated as hedging instruments | Net realized capital gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (1,709) | (895) | 365 |
Derivatives not designated as hedging instruments | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (11) | 26 | 26 |
Derivatives not designated as hedging instruments | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 139 | 63 | 401 |
Derivatives not designated as hedging instruments | Policy fees | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 77 | 80 | 78 |
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 3 | 1 | 6 |
Derivatives not designated as hedging instruments | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 56 | (229) | 339 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (277) | 293 | 416 |
Derivatives not designated as hedging instruments | Equity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (964) | (902) | (182) |
Derivatives not designated as hedging instruments | Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | (1) |
Derivatives not designated as hedging instruments | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 58 | 81 | 186 |
Derivatives not designated as hedging instruments | Other contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 75 | 80 | 69 |
Derivatives not designated as hedging instruments | Embedded derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | $ (449) | $ (48) | $ 49 |
DERIVATIVES AND HEDGE ACCOUN113
DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit Derivatives [Line Items] | ||
Collateral posted | $ 2,900 | $ 4,500 |
Obligation to make payments on embedded credit derivatives | 0 | |
Fair value of hybrid securities | 4,400 | 4,800 |
Par value of hybrid securities | 9,100 | 10,100 |
Credit Risk Related Contingent Features [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral posted | 676 | 875 |
Aggregate fair value of net liability position | 572 | $ 848 |
Credit Risk Related Contingent Features [Member] | Standard & Poor's, BBB Rating | Moody's, Baa2 Rating | ||
Credit Derivatives [Line Items] | ||
Additional Collateral Aggregate Fair Value | $ 83 | |
Global Capital Markets (GCM) derivatives | Super Senior CDS | Arbitrage | Multi-sector CDOs | ||
Credit Derivatives [Line Items] | ||
Derivative weighted average maturity | 6 years |
GOODWILL (Details)
GOODWILL (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill Disclosure | |||
Number of steps involved in process of impairment test | item | 2 | ||
Goodwill | |||
Goodwill - gross | $ 5,005 | $ 5,090 | $ 4,931 |
Accumulated impairments | (3,477) | (3,477) | (3,477) |
Net goodwill | 1,528 | 1,613 | 1,454 |
Increase (decrease) due to: | |||
Acquisition | 4 | 208 | |
Other | 87 | (73) | (49) |
Dispositions | (25) | (12) | |
Goodwill - gross | 5,071 | 5,005 | 5,090 |
Accumulated impairments | (3,477) | (3,477) | (3,477) |
Net goodwill | 1,594 | 1,528 | 1,613 |
Goodwill Reallocation | 1,300 | ||
North America | |||
Goodwill | |||
Goodwill - gross | 1,878 | 1,884 | 1,834 |
Accumulated impairments | (1,264) | (1,264) | (1,264) |
Net goodwill | 614 | 620 | 570 |
Increase (decrease) due to: | |||
Acquisition | 0 | 50 | |
Other | 0 | 0 | 0 |
Dispositions | (10) | (6) | |
Goodwill - gross | 1,868 | 1,878 | 1,884 |
Accumulated impairments | (1,264) | (1,264) | (1,264) |
Net goodwill | 604 | 614 | 620 |
International | |||
Goodwill | |||
Goodwill - gross | 2,807 | 2,883 | 2,887 |
Accumulated impairments | (2,136) | (2,136) | (2,136) |
Net goodwill | 671 | 747 | 751 |
Increase (decrease) due to: | |||
Acquisition | 0 | 46 | |
Other | 74 | (70) | (50) |
Dispositions | (7) | (6) | |
Goodwill - gross | 2,874 | 2,807 | 2,883 |
Accumulated impairments | (2,136) | (2,136) | (2,136) |
Net goodwill | 738 | 671 | 747 |
Life insurance | |||
Goodwill | |||
Goodwill - gross | 77 | 77 | 21 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 77 | 77 | 21 |
Increase (decrease) due to: | |||
Acquisition | 0 | 55 | |
Other | 13 | 0 | 1 |
Dispositions | (6) | ||
Goodwill - gross | 84 | 77 | 77 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 84 | 77 | 77 |
Other Operations | |||
Goodwill | |||
Goodwill - gross | 27 | 27 | 7 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 27 | 27 | 7 |
Increase (decrease) due to: | |||
Acquisition | 4 | 20 | |
Other | 0 | 0 | 0 |
Dispositions | 0 | ||
Goodwill - gross | 31 | 27 | 27 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 31 | 27 | 27 |
Legacy Portfolio | |||
Goodwill | |||
Goodwill - gross | 216 | 219 | 182 |
Accumulated impairments | (77) | (77) | (77) |
Net goodwill | 139 | 142 | 105 |
Increase (decrease) due to: | |||
Acquisition | 0 | 37 | |
Other | 0 | (3) | 0 |
Dispositions | (2) | ||
Goodwill - gross | 214 | 216 | 219 |
Accumulated impairments | (77) | (77) | (77) |
Net goodwill | $ 137 | $ 139 | $ 142 |
INSURANCE LIABILITIES (Details
INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||||
Gross loss reserves before reinsurance and discount, net of contractual deductible recoverable amounts due from policyholders | $ 12,600 | $ 12,800 | |||||||||||
Collateral Held For Deductible Recoverable Amounts | 9,500 | 9,700 | |||||||||||
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | |||||||||||||
Liability for unpaid loss and loss adjustment expenses, beginning of year | $ 77,077 | $ 74,942 | $ 77,077 | $ 74,942 | $ 77,260 | ||||||||
Reinsurance recoverable, balance at the beginning of the year | (15,532) | (14,339) | (15,532) | (14,339) | (15,648) | ||||||||
Net Liability for unpaid loss and loss adjustment expenses, beginning of year | 61,545 | 60,603 | 61,545 | 60,603 | 61,612 | ||||||||
Losses and loss adjustment expenses incurred | |||||||||||||
Current year | 21,079 | 20,232 | 20,308 | ||||||||||
Prior years, other than accretion of discount | $ 212 | $ 901 | $ 391 | 61 | $ 5,574 | $ 273 | $ 7 | (66) | |||||
Prior years, excluding discount and amortization of deferred gain | 1,565 | 5,788 | 4,119 | ||||||||||
Prior years, discount charge (benefit) | 187 | (422) | (71) | ||||||||||
Prior years, amortization of deferred gain on retroactive reinsurance | (284) | 0 | 0 | ||||||||||
Total losses and loss adjustment expenses incurred | 22,547 | 25,598 | 24,356 | ||||||||||
Losses and loss adjustment expenses paid | |||||||||||||
Current year | (5,323) | (5,825) | (5,751) | ||||||||||
Prior years | (16,241) | (16,908) | (18,205) | ||||||||||
Total losses and loss adjustment expenses paid | (21,564) | (22,733) | (23,956) | ||||||||||
Other changes | |||||||||||||
Foreign exchange effect | 788 | (463) | (1,429) | ||||||||||
Acquisitions | 23 | 0 | 0 | ||||||||||
Dispositions | (360) | (1,058) | 0 | ||||||||||
Retroactive reinsurance adjustment (net of discount) | (11,294) | 0 | 20 | ||||||||||
Reclassified to liabilities held for sale | 0 | 402 | 0 | ||||||||||
Total other changes | (10,843) | (1,923) | (1,409) | ||||||||||
Net liability for unpaid losses and loss adjustment expenses, balance at end of year | 51,685 | 61,545 | 51,685 | 61,545 | 60,603 | ||||||||
Reinsurance recoverable, balance at the end of the year | 26,708 | 15,532 | 26,708 | 15,532 | 14,339 | ||||||||
Total, balance at the end of the year | 78,393 | 77,077 | 78,393 | 77,077 | 74,942 | ||||||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | $ 51,685 | $ 61,545 | $ 61,545 | $ 60,603 | 51,685 | $ 61,545 | $ 60,603 | $ 51,685 | $ 61,545 | ||||
U.S. Asbestos | NICO [Member] | |||||||||||||
Losses and loss adjustment expenses incurred | |||||||||||||
Prior years, discount charge (benefit) | $ 25 |
INSURANCE LIABILITIES (Detai116
INSURANCE LIABILITIES (Details - Reconciliation of the Net Incurred and Paid Claims Development) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | $ 51,685 | $ 61,545 | $ 60,603 | $ 61,612 |
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 26,708 | 15,532 | 14,339 | 15,648 |
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 78,393 | $ 77,077 | $ 74,942 | $ 77,260 |
Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 45,200 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 24,295 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 69,495 | |||
Reportable Segments | U.S. Workers Compensation | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 6,616 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 6,513 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 13,129 | |||
Reportable Segments | U.S. Excess Casualty | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 4,802 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 4,053 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 8,855 | |||
Reportable Segments | U.S. Other Casualty | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 5,149 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 4,793 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 9,942 | |||
Reportable Segments | U.S. Financial Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 5,104 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 1,962 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 7,066 | |||
Reportable Segments | U.S. Property and Specialty Risks | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 5,410 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 968 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 6,378 | |||
Reportable Segments | U.S. Personal Insurance | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 1,380 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 194 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 1,574 | |||
Reportable Segments | Europe Casualty and Financial Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 6,986 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 1,156 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 8,142 | |||
Reportable Segments | Europe Property and Special Risks | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 2,022 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 632 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 2,654 | |||
Reportable Segments | Europe and Japan Personal Insurance | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 2,348 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 349 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 2,697 | |||
Reportable Segments | U.S. Run-Off Long Tail Insurance Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 5,383 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 3,675 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 9,058 | |||
Reconciling Items | Discount On Workers Compensation Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | (3,383) | |||
Reconciling Items | Other Product Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 8,568 | |||
Reconciling Items | Unallocated Loss Adjustment Expenses | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | $ 3,713 |
INSURANCE LIABILITIES (Detai117
INSURANCE LIABILITIES (Details - Undiscounted, Incurred and Paid Losses and Allocated Loss Adjustment Expenses) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2017USD ($)item | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | |
Claims Development [Line Items] | ||||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | $ 1,565 | $ 5,788 | $ 4,119 | |||||||||||||||
Reserve strengthening charges | $ 212 | $ 901 | $ 391 | $ 61 | $ 5,574 | $ 273 | $ 7 | $ (66) | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 51,685 | 61,545 | 51,685 | 61,545 | 60,603 | $ 61,612 | ||||||||||||
U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | (31) | 1,900 | 234 | |||||||||||||||
Total | 24,876 | 24,876 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 16,580 | 16,580 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 3,867 | 3,867 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 12,163 | 12,163 | ||||||||||||||||
U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 254 | 1,100 | 1,400 | |||||||||||||||
Total | 13,410 | 13,410 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 7,120 | 7,120 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 1,649 | 1,649 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 7,939 | 7,939 | ||||||||||||||||
U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 216 | 1,600 | 1,400 | |||||||||||||||
Total | 21,565 | 21,565 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 15,521 | 15,521 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 1,406 | 1,406 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 7,450 | 7,450 | ||||||||||||||||
U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 345 | 306 | 502 | |||||||||||||||
Total | 18,500 | 18,500 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 12,615 | 12,615 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 88 | 88 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,973 | 5,973 | ||||||||||||||||
U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 115 | 396 | (132) | |||||||||||||||
Total | 27,032 | 27,032 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 21,589 | 21,589 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 318 | 318 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,761 | 5,761 | ||||||||||||||||
U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 16 | (32) | (69) | |||||||||||||||
Total | 17,538 | 17,538 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 16,053 | 16,053 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (65) | (65) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 1,420 | 1,420 | ||||||||||||||||
Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 15,357 | 15,357 | ||||||||||||||||
Reserve strengthening charges | 507 | 320 | 142 | |||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 8,965 | 8,965 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 594 | 594 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 6,986 | 6,986 | ||||||||||||||||
Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 8,986 | 8,986 | ||||||||||||||||
Reserve strengthening charges | 157 | 11 | 4 | |||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 6,971 | 6,971 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 7 | 7 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 2,022 | 2,022 | ||||||||||||||||
Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 28,468 | 28,468 | ||||||||||||||||
Reserve strengthening charges | (58) | (82) | 15 | |||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 26,161 | 26,161 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 41 | 41 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 2,348 | 2,348 | ||||||||||||||||
U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | (30) | 390 | ||||||||||||||||
Total | 5,597 | 5,597 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,830 | 3,830 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 3,616 | 3,616 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,383 | 5,383 | ||||||||||||||||
Prior to 2008 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 424 | 1,840 | 1,848 | |||||||||||||||
Prior to 2008 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 4 | 1,009 | 100 | |||||||||||||||
Prior to 2008 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 141 | 107 | 450 | |||||||||||||||
Prior to 2008 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 10 | 338 | 440 | |||||||||||||||
Prior to 2008 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | (44) | 31 | 191 | |||||||||||||||
Prior to 2008 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 12 | 12 | 26 | |||||||||||||||
Prior to 2008 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 5 | (13) | 33 | |||||||||||||||
Prior to 2008 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 169 | (6) | (2) | |||||||||||||||
Prior to 2008 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | (5) | 1 | (1) | |||||||||||||||
Prior to 2008 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 1 | (5) | 1 | |||||||||||||||
Prior to 2008 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | (46) | 363 | 621 | |||||||||||||||
Prior to 2008 | All Other | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 177 | 3 | (11) | |||||||||||||||
2008 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 4,536 | 4,547 | 4,536 | 4,547 | 4,398 | 4,385 | $ 4,398 | $ 4,471 | $ 4,425 | $ 4,422 | $ 4,184 | $ 4,114 | ||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (11) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 448 | $ 448 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 198,852 | 198,852 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (416) | $ (416) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 4,120 | 4,120 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 32 | 32 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,789 | 3,707 | 3,789 | 3,707 | 3,609 | 3,476 | 3,272 | 3,044 | 2,655 | 2,252 | 1,678 | 785 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2008 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,658 | 1,635 | 1,658 | 1,635 | 1,662 | 1,714 | 1,875 | 1,819 | 1,933 | 2,146 | 1,968 | 1,948 | ||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 23 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 188 | $ 188 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 4,662 | 4,662 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (176) | $ (176) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,482 | 1,482 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 12 | 12 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,364 | 1,226 | 1,364 | 1,226 | 1,172 | 1,061 | 954 | 842 | 667 | 439 | 97 | 11 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2008 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,175 | 3,193 | 3,175 | 3,193 | 3,154 | 3,087 | 2,983 | 2,981 | 2,901 | 2,837 | 2,773 | 2,957 | ||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (18) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 204 | $ 204 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 117,484 | 117,484 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (104) | $ (104) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 3,071 | 3,071 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 100 | 100 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,895 | 2,835 | 2,895 | 2,835 | 2,731 | 2,586 | 2,396 | 2,119 | 1,771 | 1,251 | 791 | 277 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2008 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,106 | 2,096 | 2,106 | 2,096 | 2,066 | 1,933 | 1,897 | 1,961 | 1,847 | 2,017 | 2,045 | 1,871 | ||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 10 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 36 | $ 36 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 21,719 | 21,719 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (21) | $ (21) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,085 | 2,085 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 15 | 15 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,016 | 1,990 | 2,016 | 1,990 | 1,897 | 1,712 | 1,590 | 1,385 | 1,183 | 888 | 420 | 32 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2008 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,575 | 3,576 | 3,575 | 3,576 | 3,581 | 3,585 | 3,609 | 3,659 | 3,700 | 3,747 | 3,789 | 3,531 | ||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 20 | $ 20 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 56,526 | 56,526 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (14) | $ (14) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 3,561 | 3,561 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 6 | 6 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,540 | 3,530 | 3,540 | 3,530 | 3,515 | 3,498 | 3,487 | 3,457 | 3,342 | 3,150 | 2,679 | 1,323 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2008 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,668 | 1,664 | 1,668 | 1,664 | 1,666 | 1,663 | 1,654 | 1,654 | 1,654 | 1,640 | 1,638 | 1,630 | ||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 4 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1 | $ 1 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 292,830 | 292,830 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (1) | $ (1) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,667 | 1,667 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,665 | 1,663 | 1,665 | 1,663 | 1,660 | 1,656 | 1,644 | 1,634 | 1,609 | 1,569 | 1,493 | 1,151 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2008 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,604 | 1,604 | 1,604 | 1,604 | 1,605 | 1,649 | 1,599 | 1,595 | 1,580 | 1,632 | 1,615 | 1,511 | ||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 24 | $ 24 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 236,384 | 236,384 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,471 | 1,455 | $ 1,471 | 1,455 | 1,375 | 1,323 | 1,245 | 1,118 | 961 | 726 | 477 | 130 | ||||||
2008 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 613 | 614 | 613 | 614 | 618 | 620 | 626 | 632 | 643 | 644 | 636 | 633 | ||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 0 | $ 0 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 41,602 | 41,602 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 599 | 598 | $ 599 | 598 | 596 | 596 | 590 | 577 | 546 | 511 | 399 | 148 | ||||||
2008 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,914 | 2,912 | 2,914 | 2,912 | 2,916 | 2,913 | 2,919 | 2,915 | 2,908 | 2,904 | 2,911 | 2,869 | ||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 2 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 3 | $ 3 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,577,002 | 1,577,002 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,899 | 2,896 | $ 2,899 | 2,896 | 2,887 | 2,880 | 2,865 | 2,829 | 2,773 | 2,655 | 2,421 | 1,602 | ||||||
2008 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 985 | 983 | 985 | 983 | 976 | 978 | 926 | 909 | 868 | 884 | 1,035 | 945 | ||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 2 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 65 | $ 65 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 40,075 | 40,075 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 866 | 846 | $ 866 | 846 | 832 | 787 | 726 | 657 | 572 | 497 | 370 | $ 133 | ||||||
2009 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,714 | 3,708 | 3,714 | 3,708 | 3,606 | 3,616 | 3,639 | 3,666 | 3,608 | 3,633 | 3,466 | |||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 6 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 495 | $ 495 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 147,357 | 147,357 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (416) | $ (416) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 3,298 | 3,298 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 79 | 79 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,968 | 2,887 | 2,968 | 2,887 | 2,780 | 2,621 | 2,390 | 2,120 | 1,756 | 1,328 | 630 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2009 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,522 | 1,518 | 1,522 | 1,518 | 1,407 | 1,321 | 1,457 | 1,638 | 1,797 | 1,897 | 1,831 | |||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 4 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 210 | $ 210 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 3,789 | 3,789 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (169) | $ (169) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,353 | 1,353 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 41 | 41 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,212 | 1,174 | 1,212 | 1,174 | 965 | 788 | 624 | 449 | 249 | 69 | 8 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2009 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,855 | 2,863 | 2,855 | 2,863 | 2,880 | 2,818 | 2,697 | 2,582 | 2,586 | 2,517 | 2,416 | |||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (8) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 144 | $ 144 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 90,101 | 90,101 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (143) | $ (143) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,712 | 2,712 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1 | 1 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,664 | 2,607 | 2,664 | 2,607 | 2,386 | 2,241 | 2,002 | 1,650 | 1,253 | 842 | 393 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2009 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,310 | 2,273 | 2,310 | 2,273 | 2,183 | 2,189 | 2,097 | 1,904 | 1,845 | 1,780 | 1,693 | |||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 37 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 60 | $ 60 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 22,613 | 22,613 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (26) | $ (26) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,284 | 2,284 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 34 | 34 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,092 | 2,056 | 2,092 | 2,056 | 1,964 | 1,838 | 1,614 | 1,273 | 887 | 499 | 129 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2009 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,663 | 1,664 | 1,663 | 1,664 | 1,656 | 1,665 | 1,662 | 1,700 | 1,689 | 1,704 | 1,919 | |||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 18 | $ 18 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 42,897 | 42,897 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (13) | $ (13) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,650 | 1,650 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 5 | 5 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,633 | 1,618 | 1,633 | 1,618 | 1,597 | 1,580 | 1,528 | 1,443 | 1,288 | 1,044 | 495 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2009 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,671 | 1,667 | 1,671 | 1,667 | 1,668 | 1,664 | 1,664 | 1,663 | 1,649 | 1,697 | 1,763 | |||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 4 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 4 | $ 4 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 375,959 | 375,959 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,671 | 1,671 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 4 | 4 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,664 | 1,663 | 1,664 | 1,663 | 1,658 | 1,650 | 1,639 | 1,618 | 1,567 | 1,563 | 1,129 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2009 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,030 | 1,996 | 2,030 | 1,996 | 1,912 | 1,906 | 1,885 | 1,856 | 1,858 | 1,844 | 1,746 | |||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 34 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 103 | $ 103 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 236,270 | 236,270 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,681 | 1,581 | $ 1,681 | 1,581 | 1,442 | 1,274 | 1,139 | 970 | 708 | 418 | 139 | |||||||
2009 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 655 | 655 | 655 | 655 | 655 | 680 | 666 | 674 | 675 | 666 | 738 | |||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 3 | $ 3 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 39,109 | 39,109 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 635 | 634 | $ 635 | 634 | 632 | 620 | 613 | 585 | 532 | 429 | 183 | |||||||
2009 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,902 | 2,902 | 2,902 | 2,902 | 2,900 | 2,907 | 2,909 | 2,920 | 2,901 | 2,900 | 2,913 | |||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 5 | $ 5 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,605,992 | 1,605,992 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,886 | 2,879 | $ 2,886 | 2,879 | 2,867 | 2,850 | 2,821 | 2,765 | 2,656 | 2,412 | 1,627 | |||||||
2009 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 576 | 580 | 576 | 580 | 599 | 602 | 635 | 579 | 544 | 532 | 553 | |||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (4) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 75 | $ 75 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 16,237 | 16,237 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 461 | 447 | $ 461 | 447 | 429 | 409 | 368 | 286 | 231 | 134 | $ 42 | |||||||
2010 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,267 | 3,286 | 3,267 | 3,286 | 3,214 | 3,211 | 3,148 | 3,125 | 3,049 | 2,706 | ||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (19) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 451 | $ 451 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 133,191 | 133,191 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (449) | $ (449) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,818 | 2,818 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 2 | 2 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,532 | 2,426 | 2,532 | 2,426 | 2,288 | 2,126 | 1,855 | 1,537 | 1,093 | 550 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,706 | 1,719 | 1,706 | 1,719 | 1,723 | 1,640 | 1,771 | 2,076 | 2,076 | 1,863 | ||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (13) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 359 | $ 359 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 3,588 | 3,588 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (260) | $ (260) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,446 | 1,446 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 99 | 99 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,217 | 1,052 | 1,217 | 1,052 | 946 | 795 | 654 | 475 | 197 | 10 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,494 | 2,503 | 2,494 | 2,503 | 2,384 | 2,341 | 2,192 | 2,243 | 2,109 | 2,132 | ||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (9) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 325 | $ 325 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 96,061 | 96,061 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (133) | $ (133) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,361 | 2,361 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 192 | 192 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,087 | 1,972 | 2,087 | 1,972 | 1,824 | 1,640 | 1,358 | 985 | 661 | 295 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,541 | 1,514 | 1,541 | 1,514 | 1,472 | 1,370 | 1,366 | 1,406 | 1,509 | 1,552 | ||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 27 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 70 | $ 70 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 20,159 | 20,159 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (31) | $ (31) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,510 | 1,510 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 39 | 39 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,361 | 1,280 | 1,361 | 1,280 | 1,180 | 1,017 | 800 | 566 | 285 | 31 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,058 | 2,043 | 2,058 | 2,043 | 2,038 | 2,061 | 2,049 | 2,009 | 2,042 | 2,275 | ||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 15 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 21 | $ 21 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 42,276 | 42,276 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (18) | $ (18) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,040 | 2,040 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 3 | 3 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,001 | 1,978 | 2,001 | 1,978 | 1,940 | 1,880 | 1,799 | 1,657 | 1,391 | 654 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,817 | 1,817 | 1,817 | 1,817 | 1,819 | 1,820 | 1,819 | 1,819 | 1,809 | 1,843 | ||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 2 | $ 2 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 422,527 | 422,527 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (1) | $ (1) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,816 | 1,816 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1 | 1 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,810 | 1,808 | 1,810 | 1,808 | 1,803 | 1,794 | 1,772 | 1,736 | 1,669 | 1,205 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,445 | 1,377 | 1,445 | 1,377 | 1,420 | 1,380 | 1,457 | 1,432 | 1,436 | 1,484 | ||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 68 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 77 | $ 77 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 274,310 | 274,310 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,162 | 1,109 | $ 1,162 | 1,109 | 1,042 | 947 | 808 | 635 | 420 | 147 | ||||||||
2010 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 707 | 706 | 707 | 706 | 703 | 712 | 703 | 719 | 747 | 788 | ||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 1 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 0 | $ 0 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 40,389 | 40,389 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 693 | 690 | $ 693 | 690 | 686 | 672 | 634 | 584 | 489 | 187 | ||||||||
2010 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,030 | 3,027 | 3,030 | 3,027 | 2,999 | 3,004 | 3,003 | 3,015 | 3,007 | 2,969 | ||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 3 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 8 | $ 8 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,819,631 | 1,819,631 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,975 | 2,963 | $ 2,975 | 2,963 | 2,944 | 2,909 | 2,852 | 2,741 | 2,497 | 1,703 | ||||||||
2010 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 565 | 611 | 565 | 611 | 582 | 585 | 557 | 534 | 528 | 640 | ||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (46) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 68 | $ 68 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 8,490 | 8,490 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 464 | 455 | $ 464 | 455 | 435 | 404 | 321 | 243 | 149 | $ 57 | ||||||||
2011 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,156 | 3,152 | 3,156 | 3,152 | 3,113 | 3,158 | 3,091 | 2,953 | 2,901 | |||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 4 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 481 | $ 481 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 124,657 | 124,657 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (479) | $ (479) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,677 | 2,677 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 2 | 2 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,388 | 2,285 | 2,388 | 2,285 | 2,129 | 1,884 | 1,561 | 1,129 | 519 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,623 | 1,606 | 1,623 | 1,606 | 1,521 | 1,416 | 1,581 | 1,807 | 1,766 | |||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 17 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 350 | $ 350 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 3,520 | 3,520 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (256) | $ (256) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,367 | 1,367 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 94 | 94 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,069 | 921 | 1,069 | 921 | 716 | 386 | 225 | 63 | 5 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,596 | 2,639 | 2,596 | 2,639 | 2,601 | 2,458 | 2,321 | 2,222 | 2,052 | |||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (43) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 256 | $ 256 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 75,189 | 75,189 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (187) | $ (187) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,409 | 2,409 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 69 | 69 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,220 | 2,048 | 2,220 | 2,048 | 1,822 | 1,488 | 1,109 | 726 | 235 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,997 | 1,965 | 1,997 | 1,965 | 1,935 | 1,902 | 1,902 | 1,734 | 1,816 | |||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 32 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 50 | $ 50 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 20,048 | 20,048 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (50) | $ (50) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,947 | 1,947 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,862 | 1,732 | 1,862 | 1,732 | 1,528 | 1,210 | 886 | 494 | 165 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,919 | 2,910 | 2,919 | 2,910 | 2,867 | 2,878 | 2,872 | 2,917 | 3,045 | |||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 9 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 43 | $ 43 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 43,849 | 43,849 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (19) | $ (19) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,900 | 2,900 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 24 | 24 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,840 | 2,812 | 2,840 | 2,812 | 2,734 | 2,593 | 2,417 | 1,988 | 880 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,881 | 1,886 | 1,881 | 1,886 | 1,890 | 1,891 | 1,896 | 1,908 | 1,886 | |||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (5) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1 | $ 1 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 412,670 | 412,670 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (1) | $ (1) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,880 | 1,880 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,873 | 1,869 | 1,873 | 1,869 | 1,860 | 1,840 | 1,814 | 1,752 | 1,204 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,597 | 1,554 | 1,597 | 1,554 | 1,552 | 1,465 | 1,426 | 1,352 | 1,414 | |||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 43 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 83 | $ 83 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 264,629 | 264,629 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,224 | 1,108 | $ 1,224 | 1,108 | 963 | 811 | 564 | 376 | 140 | |||||||||
2011 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 628 | 628 | 628 | 628 | 631 | 642 | 648 | 687 | 763 | |||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 0 | $ 0 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 39,925 | 39,925 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 604 | 599 | $ 604 | 599 | 591 | 581 | 543 | 444 | 181 | |||||||||
2011 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,287 | 3,288 | 3,287 | 3,288 | 3,284 | 3,295 | 3,293 | 3,324 | 3,274 | |||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 10 | $ 10 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,777,001 | 1,777,001 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 3,244 | 3,227 | $ 3,244 | 3,227 | 3,198 | 3,134 | 3,022 | 2,787 | 1,987 | |||||||||
2011 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 700 | 685 | 700 | 685 | 676 | 641 | 576 | 542 | 534 | |||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 15 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 97 | $ 97 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 7,798 | 7,798 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 549 | 532 | $ 549 | 532 | 449 | 385 | 259 | 140 | $ 21 | |||||||||
2012 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,308 | 2,334 | 2,308 | 2,334 | 2,260 | 2,286 | 2,194 | 2,382 | ||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (26) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 503 | $ 503 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 70,625 | 70,625 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (494) | $ (494) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,814 | 1,814 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 9 | 9 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,563 | 1,440 | 1,563 | 1,440 | 1,272 | 1,089 | 804 | 415 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,481 | 1,530 | 1,481 | 1,530 | 1,477 | 1,226 | 1,382 | 1,588 | ||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (49) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 371 | $ 371 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 3,398 | 3,398 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (323) | $ (323) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,158 | 1,158 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 48 | 48 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 887 | 649 | 887 | 649 | 495 | 288 | 106 | 3 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,430 | 2,371 | 2,430 | 2,371 | 2,229 | 2,218 | 2,162 | 2,012 | ||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 59 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 382 | $ 382 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 41,924 | 41,924 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (210) | $ (210) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,220 | 2,220 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 172 | 172 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,882 | 1,690 | 1,882 | 1,690 | 1,395 | 1,048 | 743 | 413 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,987 | 1,986 | 1,987 | 1,986 | 1,892 | 1,777 | 1,739 | 1,572 | ||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 1 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 146 | $ 146 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 20,090 | 20,090 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (83) | $ (83) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,904 | 1,904 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 63 | 63 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,625 | 1,497 | 1,625 | 1,497 | 1,252 | 815 | 406 | 76 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,691 | 3,697 | 3,691 | 3,697 | 3,576 | 3,585 | 3,617 | 3,470 | ||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (6) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 62 | $ 62 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 42,278 | 42,278 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (25) | $ (25) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 3,666 | 3,666 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 37 | 37 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,565 | 3,456 | 3,565 | 3,456 | 3,273 | 2,978 | 2,410 | 734 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,094 | 2,077 | 2,094 | 2,077 | 2,083 | 2,109 | 2,128 | 2,208 | ||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 17 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 4 | $ 4 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 403,542 | 403,542 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (3) | $ (3) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,091 | 2,091 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1 | 1 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,079 | 2,065 | 2,079 | 2,065 | 2,035 | 1,996 | 1,936 | 1,238 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,232 | 1,263 | 1,232 | 1,263 | 1,222 | 1,150 | 1,193 | 1,224 | ||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (31) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 103 | $ 103 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 217,887 | 217,887 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 897 | 809 | $ 897 | 809 | 677 | 484 | 334 | 121 | ||||||||||
2012 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 627 | 615 | 627 | 615 | 630 | 648 | 682 | 728 | ||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 12 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ (2) | $ (2) | ||||||||||||||||
Cumulative Number of Reported Claims | item | 34,457 | 34,457 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 580 | 572 | $ 580 | 572 | 549 | 511 | 410 | 154 | ||||||||||
2012 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,846 | 2,845 | 2,846 | 2,845 | 2,836 | 2,851 | 2,867 | 2,898 | ||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 1 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 16 | $ 16 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,729,298 | 1,729,298 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,785 | 2,754 | $ 2,785 | 2,754 | 2,698 | 2,591 | 2,363 | 1,614 | ||||||||||
2012 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 752 | 751 | 752 | 751 | 786 | 741 | 678 | 629 | ||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 1 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 104 | $ 104 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 4,053 | 4,053 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 498 | 481 | $ 498 | 481 | 414 | 286 | 194 | $ 86 | ||||||||||
2013 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,032 | 2,060 | 2,032 | 2,060 | 1,950 | 1,880 | 1,932 | |||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (28) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 548 | $ 548 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 46,483 | 46,483 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (538) | $ (538) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,494 | 1,494 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 10 | 10 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,214 | 1,067 | 1,214 | 1,067 | 879 | 619 | 282 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,178 | 1,258 | 1,178 | 1,258 | 1,113 | 973 | 1,073 | |||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (80) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 441 | $ 441 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 2,722 | 2,722 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (309) | $ (309) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 869 | 869 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 132 | 132 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 546 | 382 | 546 | 382 | 204 | 104 | 15 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,183 | 2,152 | 2,183 | 2,152 | 1,918 | 1,739 | 1,662 | |||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 31 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 450 | $ 450 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 36,699 | 36,699 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (225) | $ (225) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,958 | 1,958 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 225 | 225 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,483 | 1,243 | 1,483 | 1,243 | 956 | 592 | 169 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,541 | 1,597 | 1,541 | 1,597 | 1,643 | 1,691 | 1,767 | |||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (56) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 248 | $ 248 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 18,996 | 18,996 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (126) | $ (126) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,415 | 1,415 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 122 | 122 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,142 | 945 | 1,142 | 945 | 686 | 333 | 43 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,949 | 1,926 | 1,949 | 1,926 | 1,859 | 1,972 | 1,975 | |||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 23 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 74 | $ 74 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 41,937 | 41,937 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (38) | $ (38) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,911 | 1,911 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 36 | 36 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,732 | 1,620 | 1,732 | 1,620 | 1,469 | 1,275 | 586 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,780 | 1,782 | 1,780 | 1,782 | 1,803 | 1,816 | 1,887 | |||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (2) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 7 | $ 7 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 334,474 | 334,474 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (6) | $ (6) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,774 | 1,774 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1 | 1 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,759 | 1,744 | 1,759 | 1,744 | 1,705 | 1,634 | 1,109 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,305 | 1,258 | 1,305 | 1,258 | 1,257 | 1,277 | 1,221 | |||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 47 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 194 | $ 194 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 185,435 | 185,435 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 877 | 736 | $ 877 | 736 | 543 | 375 | 105 | |||||||||||
2013 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 842 | 840 | 842 | 840 | 842 | 915 | 914 | |||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 2 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ (1) | $ (1) | ||||||||||||||||
Cumulative Number of Reported Claims | item | 32,405 | 32,405 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 786 | 751 | $ 786 | 751 | 700 | 535 | 193 | |||||||||||
2013 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,702 | 2,706 | 2,702 | 2,706 | 2,705 | 2,736 | 2,747 | |||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (4) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 25 | $ 25 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,734,759 | 1,734,759 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,625 | 2,569 | $ 2,625 | 2,569 | 2,462 | 2,246 | 1,503 | |||||||||||
2013 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 528 | 570 | 528 | 570 | 589 | 533 | 482 | |||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (42) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 84 | $ 84 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 2,510 | 2,510 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 368 | 321 | $ 368 | 321 | 261 | 154 | $ 87 | |||||||||||
2014 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,862 | 1,866 | 1,862 | 1,866 | 1,764 | 1,729 | ||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (4) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 664 | $ 664 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 39,408 | 39,408 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (552) | $ (552) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,310 | 1,310 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 112 | 112 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 930 | 786 | 930 | 786 | 558 | 231 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,135 | 1,157 | 1,135 | 1,157 | 968 | 849 | ||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (22) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 583 | $ 583 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 2,088 | 2,088 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (355) | $ (355) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 780 | 780 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 228 | 228 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 397 | 202 | 397 | 202 | 68 | 3 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,017 | 1,973 | 2,017 | 1,973 | 1,729 | 1,756 | ||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 44 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 603 | $ 603 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 34,745 | 34,745 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (331) | $ (331) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,686 | 1,686 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 272 | 272 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,157 | 871 | 1,157 | 871 | 621 | 210 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,898 | 1,849 | 1,898 | 1,849 | 1,736 | 1,767 | ||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 49 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 417 | $ 417 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 17,249 | 17,249 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (198) | $ (198) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,700 | 1,700 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 219 | 219 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,159 | 853 | 1,159 | 853 | 371 | 66 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,213 | 2,220 | 2,213 | 2,220 | 2,143 | 2,355 | ||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (7) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 140 | $ 140 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 50,160 | 50,160 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (61) | $ (61) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,152 | 2,152 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 79 | 79 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,869 | 1,713 | 1,869 | 1,713 | 1,452 | 745 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,572 | 1,572 | 1,572 | 1,572 | 1,562 | 1,552 | ||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 19 | $ 19 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 273,481 | 273,481 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (8) | $ (8) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,564 | 1,564 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 11 | 11 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,507 | 1,463 | 1,507 | 1,463 | 1,380 | 959 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,303 | 1,302 | 1,303 | 1,302 | 1,267 | 1,280 | ||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 1 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 340 | $ 340 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 175,630 | 175,630 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 628 | 494 | $ 628 | 494 | 299 | 86 | ||||||||||||
2014 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,050 | 1,052 | 1,050 | 1,052 | 1,046 | 994 | ||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (2) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1 | $ 1 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 38,719 | 38,719 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 939 | 885 | $ 939 | 885 | 669 | 220 | ||||||||||||
2014 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,690 | 2,698 | 2,690 | 2,698 | 2,716 | 2,717 | ||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (8) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 45 | $ 45 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,789,718 | 1,789,718 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,558 | 2,447 | $ 2,558 | 2,447 | 2,225 | 1,476 | ||||||||||||
2014 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 459 | 453 | 459 | 453 | 475 | 379 | ||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 6 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 164 | $ 164 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 2,307 | 2,307 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 233 | 185 | $ 233 | 185 | 96 | $ 21 | ||||||||||||
2015 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,866 | 1,864 | 1,866 | 1,864 | 1,708 | |||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 2 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 849 | $ 849 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 35,059 | 35,059 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (587) | $ (587) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,279 | 1,279 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 262 | 262 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 725 | 524 | 725 | 524 | 234 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,320 | 1,334 | 1,320 | 1,334 | 892 | |||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (14) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 602 | $ 602 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,770 | 1,770 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (425) | $ (425) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 895 | 895 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 177 | 177 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 361 | 192 | 361 | 192 | 9 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,847 | 1,778 | 1,847 | 1,778 | 1,340 | |||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 69 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 752 | $ 752 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 31,409 | 31,409 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (456) | $ (456) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,391 | 1,391 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 296 | 296 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 783 | 321 | 783 | 321 | 111 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,719 | 1,744 | 1,719 | 1,744 | 1,705 | |||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (25) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 665 | $ 665 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 15,698 | 15,698 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (313) | $ (313) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,406 | 1,406 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 352 | 352 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 792 | 393 | 792 | 393 | 66 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,299 | 2,312 | 2,299 | 2,312 | 2,398 | |||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (13) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 203 | $ 203 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 50,624 | 50,624 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (98) | $ (98) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,201 | 2,201 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 105 | 105 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,766 | 1,501 | 1,766 | 1,501 | 820 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,494 | 1,498 | 1,494 | 1,498 | 1,511 | |||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (4) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 23 | $ 23 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 258,241 | 258,241 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (19) | $ (19) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,475 | 1,475 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 4 | 4 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,411 | 1,320 | 1,411 | 1,320 | 931 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,538 | 1,515 | 1,538 | 1,515 | 1,337 | |||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 23 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 588 | $ 588 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 188,348 | 188,348 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 486 | 286 | $ 486 | 286 | 80 | |||||||||||||
2015 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,248 | 1,219 | 1,248 | 1,219 | 1,226 | |||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 29 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 12 | $ 12 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 41,799 | 41,799 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,005 | 778 | $ 1,005 | 778 | 290 | |||||||||||||
2015 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,746 | 2,756 | 2,746 | 2,756 | 2,795 | |||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (10) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 92 | $ 92 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,762,514 | 1,762,514 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,493 | 2,270 | $ 2,493 | 2,270 | 1,501 | |||||||||||||
2015 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 550 | 523 | 550 | 523 | 439 | |||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 27 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 174 | $ 174 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 2,285 | 2,285 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 238 | 132 | $ 238 | 132 | $ 35 | |||||||||||||
2016 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,346 | 1,299 | 1,346 | 1,299 | ||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 47 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 773 | $ 773 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 28,880 | 28,880 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,346 | 1,346 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 773 | 773 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 378 | 147 | 378 | 147 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,029 | 790 | 1,029 | 790 | ||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 239 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 870 | $ 870 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,061 | 1,061 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,029 | 1,029 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 870 | 870 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 66 | 14 | 66 | 14 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,352 | 1,348 | 1,352 | 1,348 | ||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 4 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 853 | $ 853 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 23,868 | 23,868 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,352 | 1,352 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 853 | 853 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 299 | 77 | 299 | 77 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,841 | 1,593 | 1,841 | 1,593 | ||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 248 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,036 | $ 1,036 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 15,386 | 15,386 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,841 | 1,841 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1,036 | 1,036 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 500 | 76 | 500 | 76 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,580 | 2,516 | 2,580 | 2,516 | ||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 64 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 402 | $ 402 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 45,583 | 45,583 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,580 | 2,580 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 402 | 402 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,689 | 799 | 1,689 | 799 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,533 | 1,536 | 1,533 | 1,536 | ||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (3) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 73 | $ 73 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 240,892 | 240,892 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,533 | 1,533 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 73 | 73 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,344 | 857 | 1,344 | 857 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,716 | 1,563 | 1,716 | 1,563 | ||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 153 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 724 | $ 724 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 221,122 | 221,122 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 426 | 140 | $ 426 | 140 | ||||||||||||||
2016 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,239 | 1,118 | 1,239 | 1,118 | ||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 121 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 24 | $ 24 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 40,629 | 40,629 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 894 | 300 | $ 894 | 300 | ||||||||||||||
2016 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,692 | 2,734 | 2,692 | 2,734 | ||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (42) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 194 | $ 194 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,762,768 | 1,762,768 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,231 | 1,500 | $ 2,231 | 1,500 | ||||||||||||||
2016 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 285 | 294 | 285 | 294 | ||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (9) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 98 | $ 98 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,591 | 1,591 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 140 | $ 53 | $ 140 | $ 53 | ||||||||||||||
2017 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 789 | 789 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 577 | $ 577 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 22,523 | 22,523 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 789 | 789 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 577 | 577 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 93 | 93 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 758 | 758 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 725 | $ 725 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 376 | 376 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 758 | 758 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 725 | 725 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1 | 1 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 616 | 616 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 487 | $ 487 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 15,172 | 15,172 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 616 | 616 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 487 | 487 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 51 | 51 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,560 | 1,560 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,369 | $ 1,369 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 13,428 | 13,428 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,560 | 1,560 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1,369 | 1,369 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 66 | 66 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 4,085 | 4,085 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,331 | $ 1,331 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 29,709 | 29,709 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 4,085 | 4,085 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1,331 | 1,331 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 954 | 954 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,028 | 2,028 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 571 | $ 571 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 185,198 | 185,198 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,028 | 2,028 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 571 | 571 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 941 | 941 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,587 | 1,587 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,214 | $ 1,214 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 204,712 | 204,712 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 113 | $ 113 | ||||||||||||||||
2017 | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,377 | 1,377 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 390 | $ 390 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 29,313 | 29,313 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 236 | $ 236 | ||||||||||||||||
2017 | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,659 | 2,659 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 549 | $ 549 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,502,118 | 1,502,118 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,465 | $ 1,465 | ||||||||||||||||
2017 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 197 | 197 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 163 | $ 163 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 607 | 607 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 13 | $ 13 | ||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | (29) | (29) | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 4 | 4 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | (6) | (6) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (31) | (31) | ||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 105 | 105 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 141 | 141 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 8 | 8 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 254 | 254 | ||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 129 | 129 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 10 | 10 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 77 | 77 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 216 | 216 | ||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 323 | 323 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (44) | (44) | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 66 | 66 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 345 | 345 | ||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 83 | 83 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 12 | 12 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 20 | 20 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 115 | 115 | ||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 11 | 11 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 5 | 5 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 16 | 16 | ||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 338 | 338 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 169 | 169 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 507 | 507 | ||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 162 | 162 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (5) | (5) | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 157 | 157 | ||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | (59) | (59) | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 1 | 1 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (58) | (58) | ||||||||||||||||
2017 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | (50) | (50) | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (46) | (46) | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 66 | 66 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (30) | (30) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | (3,931) | (3,931) | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (1,616) | (1,616) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (5,547) | (5,547) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | (2,273) | (2,273) | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (864) | (864) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (3,137) | (3,137) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | (1,789) | (1,789) | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (512) | (512) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (2,301) | (2,301) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | (848) | (848) | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (21) | (21) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (869) | (869) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | (286) | (286) | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (65) | (65) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (351) | (351) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | (39) | (39) | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (1) | (1) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (40) | (40) | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 20,945 | 20,945 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | (16,580) | (16,580) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 2,251 | 2,251 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 6,616 | 6,616 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 11,137 | 11,137 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | (7,120) | (7,120) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 785 | 785 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 4,802 | 4,802 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 19,776 | 19,776 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | (15,521) | (15,521) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 894 | 894 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,149 | 5,149 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 17,652 | 17,652 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | (12,615) | (12,615) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 67 | 67 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,104 | 5,104 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 26,746 | 26,746 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | (21,589) | (21,589) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | 253 | 253 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,410 | 5,410 | ||||||||||||||||
2017 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 17,499 | 17,499 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | (16,053) | (16,053) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2008, net of reinsurance | (66) | (66) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 1,380 | 1,380 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 |
INSURANCE LIABILITIES (Detai118
INSURANCE LIABILITIES (Details - Annual Percentage Claims Payout) | Dec. 31, 2017 |
U.S. Workers Compensation | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 14.70% |
Year 2 | 17.60% |
Year 3 | 12.40% |
Year 4 | 9.10% |
Year 5 | 7.70% |
Year 6 | 5.30% |
Year 7 | 4.10% |
Year 8 | 3.00% |
Year 9 | 2.20% |
Year 10 | 1.80% |
U.S. Excess Casualty | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 0.60% |
Year 2 | 7.00% |
Year 3 | 13.00% |
Year 4 | 13.40% |
Year 5 | 12.50% |
Year 6 | 11.00% |
Year 7 | 8.40% |
Year 8 | 10.00% |
Year 9 | 2.80% |
Year 10 | 8.30% |
U.S. Other Casualty | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 9.90% |
Year 2 | 16.30% |
Year 3 | 15.40% |
Year 4 | 14.50% |
Year 5 | 11.80% |
Year 6 | 8.20% |
Year 7 | 5.90% |
Year 8 | 5.60% |
Year 9 | 2.60% |
Year 10 | 1.90% |
U.S. Financial Lines | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 4.00% |
Year 2 | 17.90% |
Year 3 | 21.10% |
Year 4 | 16.70% |
Year 5 | 13.20% |
Year 6 | 9.30% |
Year 7 | 6.10% |
Year 8 | 6.00% |
Year 9 | 3.00% |
Year 10 | 1.20% |
U.S. Property and Special Risks | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 30.20% |
Year 2 | 35.70% |
Year 3 | 13.00% |
Year 4 | 7.20% |
Year 5 | 4.60% |
Year 6 | 2.50% |
Year 7 | 1.00% |
Year 8 | 0.90% |
Year 9 | 0.70% |
Year 10 | 0.30% |
U.S. Personal Insurance | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 61.40% |
Year 2 | 27.60% |
Year 3 | 3.80% |
Year 4 | 2.20% |
Year 5 | 1.20% |
Year 6 | 0.60% |
Year 7 | 0.40% |
Year 8 | 0.20% |
Year 9 | 0.10% |
Year 10 | 0.20% |
Europe Casualty and Financial Lines | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 7.90% |
Year 2 | 17.00% |
Year 3 | 13.70% |
Year 4 | 13.70% |
Year 5 | 9.80% |
Year 6 | 7.50% |
Year 7 | 6.30% |
Year 8 | 4.60% |
Year 9 | 5.00% |
Year 10 | 1.00% |
Europe and Japan Personal Insurance | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 24.00% |
Year 2 | 41.60% |
Year 3 | 17.20% |
Year 4 | 6.30% |
Year 5 | 4.00% |
Year 6 | 1.50% |
Year 7 | 1.00% |
Year 8 | 0.20% |
Year 9 | 0.20% |
Year 10 | 0.20% |
Europe Property and Special Risks | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 56.00% |
Year 2 | 26.90% |
Year 3 | 8.00% |
Year 4 | 3.80% |
Year 5 | 2.00% |
Year 6 | 1.10% |
Year 7 | 0.60% |
Year 8 | 0.30% |
Year 9 | 0.30% |
Year 10 | 0.10% |
U.S. Run-Off Long Tail Insurance Lines | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 9.80% |
Year 2 | 18.30% |
Year 3 | 16.90% |
Year 4 | 12.50% |
Year 5 | 10.70% |
Year 6 | 6.70% |
Year 7 | 4.00% |
Year 8 | 3.10% |
Year 9 | 1.90% |
Year 10 | 2.00% |
INSURANCE LIABILITIES (Detai119
INSURANCE LIABILITIES (Details - Narratives) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Gross Loss Reserves Before Reinsurance and Discount Net of Subrogation | $ 12,600 | $ 12,800 | $ 12,600 | $ 12,800 | ||||||||
Collateral Held For Deductible Recoverable Amounts | 9,500 | 9,700 | 9,500 | 9,700 | ||||||||
Total prior year (favourable) unfavorable development | 212 | $ 901 | $ 391 | $ 61 | 5,574 | $ 273 | $ 7 | $ (66) | ||||
Liability for Claims and Claims Adjustment Expense | 78,393 | 77,077 | 78,393 | 77,077 | $ 74,942 | $ 77,260 | ||||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 51,685 | 61,545 | 51,685 | 61,545 | 60,603 | $ 61,612 | ||||||
Discounting Of Loss Reserves [Abstract] | ||||||||||||
Loss Reserve Discount | 1,844 | 3,570 | 1,844 | $ 3,570 | ||||||||
Tabular Discount Rate | 3.50% | |||||||||||
Workers Compensation Tabular Discount Amount | 622 | 622 | ||||||||||
Workers Compensation Non Tabular Discount Amount | 1,222 | 1,222 | ||||||||||
(Increase) Decrease in Loss Reserve Discount | (187) | $ 422 | 71 | |||||||||
Effective Interest Rates | ||||||||||||
Discounting Of Loss Reserves [Abstract] | ||||||||||||
(Increase) Decrease in Loss Reserve Discount | 71 | 106 | (225) | |||||||||
U.S. Workers Compensation | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (31) | 1,900 | 234 | |||||||||
Discounting Of Loss Reserves [Abstract] | ||||||||||||
(Increase) Decrease in Loss Reserve Discount | (1,657) | |||||||||||
U.S. Workers Compensation | Risk sharing programs | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Actual loss emergence and development coverage in excess of large deductibles | 1 | |||||||||||
U.S. Workers Compensation | Florida Court Ruling | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Increase (Decrease) in loss reserves, net | 100 | |||||||||||
U.S. Workers Compensation | US and Non US Military Program | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 100 | |||||||||||
U.S. Workers Compensation | Ultimate Losses | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 440 | |||||||||||
U.S. Excess Casualty | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 254 | 1,100 | 1,400 | |||||||||
Analysis of loss reserves using traditional loss development and expected loss ratio methods | 10 | |||||||||||
Analysis of Loss reserves for expected losses above threshold | 10 | |||||||||||
U.S. Excess Casualty | Commercial Auto Liability | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 250 | 411 | ||||||||||
U.S. Excess Casualty | Bad-Faith claims | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Liability for Claims and Claims Adjustment Expense | 120 | |||||||||||
U.S. Other Casualty | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 216 | 1,600 | 1,400 | |||||||||
U.S. Other Casualty | Commercial Auto Liability | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 42 | 352 | 105 | |||||||||
U.S. Other Casualty | General Liability | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 330 | 754 | 172 | |||||||||
U.S. Other Casualty | Medical Malpractice | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (23) | 428 | 202 | |||||||||
U.S. Other Casualty | Other Product Lines | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (133) | 50 | 514 | |||||||||
U.S. Other Casualty | Ultimate loss Expense Estimate | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 214 | |||||||||||
U.S. Other Casualty | General Liability Ultimate loss Expense Estimate | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 100 | |||||||||||
U.S. Financial Lines | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 345 | 306 | 502 | |||||||||
U.S. Property and Special Risks | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 115 | 396 | (132) | |||||||||
U.S. Property and Special Risks | U.S. program business | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 350 | |||||||||||
U.S. Personal Insurance | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 16 | (32) | (69) | |||||||||
Europe Casualty and Financial Lines | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 507 | 320 | 142 | |||||||||
Europe Casualty and Financial Lines | Europe Casualty Lines | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 123 | |||||||||||
Europe Casualty and Financial Lines | D&O line UK and Continental Europe | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 232 | |||||||||||
Europe Property and Special Risks | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 157 | 11 | 4 | |||||||||
Europe and Japan Personal Insurance | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (58) | (82) | 15 | |||||||||
U.S. Run-Off Long Tail Insurance Lines | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (30) | 390 | ||||||||||
U.S. Run-Off Long Tail Insurance Lines | Asbestos | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (37) | |||||||||||
Increase (Decrease) in loss reserves, gross | 106 | 13 | ||||||||||
Increase (Decrease) in loss reserves, net | (20) | 164 | ||||||||||
U.S. Run-Off Long Tail Insurance Lines | Asbestos | NICO | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Increase (Decrease) in loss reserves, gross | 50 | |||||||||||
Increase (Decrease) in loss reserves, net | 0 | |||||||||||
U.S. Run-Off Long Tail Insurance Lines | Environmental | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 22 | |||||||||||
Increase (Decrease) in loss reserves, gross | 211 | 214 | ||||||||||
Increase (Decrease) in loss reserves, net | 117 | |||||||||||
U.S. Run-Off Long Tail Insurance Lines | Run-off excess workers compensation lines | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 0 | 0 | 0 | |||||||||
U.S. Run-Off Long Tail Insurance Lines | Other Casualty Run-Off | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (15) | 190 | 636 | |||||||||
Legacy General Insrance Run-Off Lines | ||||||||||||
Discounting Of Loss Reserves [Abstract] | ||||||||||||
Loss Reserve Discount | $ 918 | $ 987 | 918 | 987 | ||||||||
(Increase) Decrease in Loss Reserve Discount | $ (69) | $ 16 | $ 3 |
INSURANCE LIABILITIES (Detai120
INSURANCE LIABILITIES (Details - Discounting of Reserves) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discounting of Reserves [Line Items] | |||
Tabular Discount Rate | 3.50% | ||
Workers Compensation Tabular Discount Amount | $ 622 | ||
Workers Compensation Non Tabular Discount Amount | 1,222 | ||
U.S. Workers' compensation | 3,383 | $ 3,570 | |
Retroactive Reinsurance | (1,539) | 0 | |
Total reserve discount | 1,844 | 3,570 | |
Current accident year | 114 | 177 | $ 182 |
Accretion and other adjustments to prior year discount | (230) | 351 | (336) |
Effect of interest rate changes | (71) | (106) | 225 |
Net reserve discount (benefit) charge | (187) | 422 | 71 |
Amount transferred to run-off insurance lines | 0 | 0 | 0 |
Change in discount on loss reserves ceded under retroactive reinsurance | (1,539) | 0 | 0 |
Net change in total reserve discount | (1,726) | 422 | 71 |
U.S Workers' compensation | (1,726) | 429 | 75 |
Asbestos | 0 | (7) | (4) |
North America Commerical Insurance | |||
Discounting of Reserves [Line Items] | |||
U.S. Workers' compensation | 2,465 | 2,583 | |
Retroactive Reinsurance | (1,539) | 0 | |
Total reserve discount | 926 | 2,583 | |
Current accident year | 114 | 177 | 182 |
Accretion and other adjustments to prior year discount | (186) | 287 | (262) |
Effect of interest rate changes | (46) | (58) | 148 |
Net reserve discount (benefit) charge | (118) | 406 | 68 |
Amount transferred to run-off insurance lines | 0 | 0 | (39) |
Change in discount on loss reserves ceded under retroactive reinsurance | (1,539) | 0 | 0 |
Net change in total reserve discount | (1,657) | 406 | 29 |
U.S Workers' compensation | (1,657) | 406 | 29 |
Asbestos | 0 | 0 | 0 |
Legacy General Insrance Run-Off Lines | |||
Discounting of Reserves [Line Items] | |||
U.S. Workers' compensation | 918 | 987 | |
Retroactive Reinsurance | 0 | 0 | |
Total reserve discount | 918 | 987 | |
Current accident year | 0 | 0 | 0 |
Accretion and other adjustments to prior year discount | (44) | 64 | (74) |
Effect of interest rate changes | (25) | (48) | 77 |
Net reserve discount (benefit) charge | (69) | 16 | 3 |
Amount transferred to run-off insurance lines | 0 | 0 | 39 |
Change in discount on loss reserves ceded under retroactive reinsurance | 0 | 0 | 0 |
Net change in total reserve discount | (69) | 16 | 42 |
U.S Workers' compensation | (69) | 23 | 46 |
Asbestos | $ 0 | (7) | $ (4) |
New York | |||
Discounting of Reserves [Line Items] | |||
Nontabular discount rate | 5.00% | ||
Pennsylvania | Accident Year 2001 And prior | |||
Discounting of Reserves [Line Items] | |||
Nontabular discount rate | 6.00% | ||
United Kingdom | |||
Discounting of Reserves [Line Items] | |||
Total reserve discount | $ 173 | 181 | |
Net change in total reserve discount | $ 8 | $ 20 |
INSURANCE LIABILITIES (Detai121
INSURANCE LIABILITIES (Details - Future Policy Benefits) - Life insurance | Dec. 31, 2017 |
Maximum | |
Assumptions for liability for future life policy benefits | |
Liability for Future Policy Benefits, Interest Rate | 14.00% |
Minimum | |
Assumptions for liability for future life policy benefits | |
Liability for Future Policy Benefits, Interest Rate | 0.10% |
INSURANCE LIABILITIES (Detai122
INSURANCE LIABILITIES (Details - Policyholder contract deposits) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 135,602 | $ 132,216 |
Assumptions for liability for policyholder contract deposits | ||
Percentage of gross insurance in force | 1.90% | |
Percentage of gross premiums and other consideration | 1.80% | |
Maximum | ||
Assumptions for liability for policyholder contract deposits | ||
Withdrawal charges, high end of range (as a percent) | 9.00% | |
Minimum | ||
Assumptions for liability for policyholder contract deposits | ||
Withdrawal charges, low end of range (as a percent) | 0.20% | |
Fixed Annuities | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 49,979 | $ 51,278 |
Group Retirement | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 40,422 | 39,578 |
Life insurance | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 12,448 | 11,855 |
Variable and Index Annuities | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 19,690 | 16,934 |
Institutional Markets | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 8,077 | 7,286 |
Legacy Portfolio | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 4,986 | $ 5,285 |
VARIABLE LIFE AND ANNUITY CO123
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - Annuity contracts with guarantees were invested in separate account investment options) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $ 84,773 | $ 76,269 |
Equity Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 48,594 | 42,266 |
Bonds Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 7,793 | 7,798 |
Balanced Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 27,656 | 25,365 |
Money Market Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $ 730 | $ 840 |
VARIABLE LIFE AND ANNUITY CO124
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - GMDB, GMIB, GMWB and GMAV) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | $ 3,748 | $ 4,802 | |
Embedded derivatives | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 4,100 | 3,100 | |
Guaranteed minimum death benefits (GMDB) | |||
Changes in GMDB for guarantees on variable contracts reflected in the general account | |||
Balance at the beginning of the period | 402 | 491 | $ 420 |
Benefits paid | (42) | (57) | (56) |
Reserve increase (decrease) | (14) | (32) | 127 |
Changes in reserves related to unrealized appreciation of investments | 6 | 0 | 0 |
Balance at the end of the period | 352 | 402 | $ 491 |
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 45,000 | 41,000 | |
Net amount at risk | 450 | 834 | |
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) | Embedded derivatives | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 2,000 | 1,800 | |
Variable contract, net deposits plus a minimum return | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 99 | 91 | |
Net amount at risk | $ 1 | $ 1 | |
Average attained age of contract holders by product | 63 years | 63 years | |
Variable contract, net deposits plus a minimum return | Guaranteed minimum death benefits (GMDB) | Minimum | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 0.00% | 0.00% | |
Variable annuity contract, highest contract value attained | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | $ 17 | $ 16 | |
Net amount at risk | $ 0 | $ 1 | |
Average attained age of contract holders by product | 68 years | 68 years | |
Variable annuity contract, highest contract value attained | Guaranteed minimum death benefits (GMDB) | Maximum | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 4.50% | 4.50% |
DEBT (Details - Total debt outs
DEBT (Details - Total debt outstanding) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 31,640 | $ 30,912 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 31,640 | 30,912 |
2,018 | 2,285 | |
2,019 | 1,263 | |
2,020 | 1,488 | |
2,021 | 1,917 | |
2,022 | 1,554 | |
Thereafter | 17,104 | |
Long-term debt excluding borrowings of consolidated investments | 25,611 | |
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 524 | |
Collateral posted | 2,900 | 4,500 |
Uncollateralized Notes/Bonds/Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 334 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 334 | |
Collateralized Loans and Mortgages Payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 190 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 190 | |
AIGLH | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 642 | 642 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 642 | 642 |
AIG | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 21,557 | 21,405 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 21,557 | 21,405 |
AIG | Series AIGFP | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 21 | 31 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 21 | 31 |
AIG | MIP | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 356 | 1,099 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 356 | 1,099 |
Other Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 9,441 | 8,865 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 9,441 | 8,865 |
Notes and bonds payable | AIG | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 20,339 | 19,432 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 20,339 | 19,432 |
Junior subordinated debt | AIG | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 841 | 843 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 841 | 843 |
Other subsidiaries notes, bonds, loans and mortgages payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 190 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 190 | |
2,018 | 190 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
Other subsidiaries notes, bonds, loans and mortgages payable | Other Subsidiaries | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 190 | |
Other subsidiaries notes, bonds, loans and mortgages payable | Other Subsidiaries | Uncollateralized Notes/Bonds/Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 0 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 0 | |
Other subsidiaries notes, bonds, loans and mortgages payable | Other Subsidiaries | Collateralized Loans and Mortgages Payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 190 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 190 | |
Debt issued or guaranteed | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 25,421 | 25,806 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 25,421 | 25,806 |
2,018 | 2,095 | |
2,019 | 1,263 | |
2,020 | 1,488 | |
2,021 | 1,917 | |
2,022 | 1,554 | |
Thereafter | 17,104 | |
Uncollateralized Notes/Bonds/Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 22,156 | 21,247 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 22,156 | 21,247 |
2,018 | 1,107 | |
2,019 | 998 | |
2,020 | 1,458 | |
2,021 | 1,715 | |
2,022 | 1,507 | |
Thereafter | 15,371 | |
Uncollateralized Notes/Bonds/Loans Payable | AIG | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 334 | |
Uncollateralized Notes/Bonds/Loans Payable | AIG | Uncollateralized Notes/Bonds/Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 334 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 334 | |
Uncollateralized Notes/Bonds/Loans Payable | AIG | Collateralized Loans and Mortgages Payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 0 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 0 | |
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 20,339 | 19,432 |
Debt Instrument, Maturity, Start year | 2,018 | |
Debt Instrument, Maturity, End Year | 2,097 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 20,339 | 19,432 |
2,018 | 1,107 | |
2,019 | 998 | |
2,020 | 1,343 | |
2,021 | 1,496 | |
2,022 | 1,507 | |
Thereafter | $ 13,888 | |
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 8.13% | |
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 0.00% | |
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | AIGLH | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 281 | 281 |
Debt Instrument, Maturity, Start year | 2,025 | |
Debt Instrument, Maturity, End Year | 2,029 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 281 | 281 |
Thereafter | $ 281 | |
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | AIGLH | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 7.50% | |
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | AIGLH | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 6.63% | |
Uncollateralized Notes/Bonds/Loans Payable | Subordinated debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 0 | 0 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 0 | 0 |
2,018 | 0 | |
2,019 | 0 | |
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 841 | 843 |
Debt Instrument, Maturity, Start year | 2,037 | |
Debt Instrument, Maturity, End Year | 2,058 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 841 | 843 |
Thereafter | $ 841 | |
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 8.63% | |
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.88% | |
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | AIGLH | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 361 | 361 |
Debt Instrument, Maturity, Start year | 2,030 | |
Debt Instrument, Maturity, End Year | 2,046 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 361 | 361 |
Thereafter | $ 361 | |
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | AIGLH | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 8.50% | |
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | AIGLH | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 7.57% | |
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 334 | 330 |
Debt Instrument, Maturity, Start year | 2,020 | |
Debt Instrument, Maturity, End Year | 2,021 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 334 | 330 |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 115 | |
2,021 | 219 | |
2,022 | $ 0 | |
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 0.44% | |
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 0.28% | |
Borrowings supported by assets | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 3,265 | 4,559 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 3,265 | 4,559 |
2,018 | 988 | |
2,019 | 265 | |
2,020 | 30 | |
2,021 | 202 | |
2,022 | 47 | |
Thereafter | 1,733 | |
Collateral posted | 2,000 | 2,200 |
Borrowings supported by assets | Notes and bonds payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 181 | 494 |
Debt Instrument, Maturity, Start year | 2,018 | |
Debt Instrument, Maturity, End Year | 2,040 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 181 | 494 |
2,018 | 126 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | $ 55 | |
Borrowings supported by assets | Notes and bonds payable | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 9.97% | |
Borrowings supported by assets | Notes and bonds payable | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 0.50% | |
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 21 | 32 |
Debt Instrument, Maturity, Start year | 2,046 | |
Debt Instrument, Maturity, End Year | 2,047 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 21 | 32 |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | $ 21 | |
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 1.30% | |
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 1.21% | |
Borrowings supported by assets | MIP notes payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 356 | 1,099 |
Debt Instrument, Maturity, End Year | 2,018 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 356 | 1,099 |
2,018 | $ 356 | |
Borrowings supported by assets | MIP notes payable | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 2.95% | |
Borrowings supported by assets | MIP notes payable | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 2.72% | |
Borrowings supported by assets | GIAs | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 2,707 | 2,934 |
Debt Instrument, Maturity, Start year | 2,018 | |
Debt Instrument, Maturity, End Year | 2,053 | |
Interest rate (as a percent) | 7.62% | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 2,707 | 2,934 |
2,018 | 506 | |
2,019 | 265 | |
2,020 | 30 | |
2,021 | 202 | |
2,022 | 47 | |
Thereafter | $ 1,657 | |
Borrowings supported by assets | GIAs | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 7.62% | |
Borrowings supported by assets | GIAs | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 0.50% | |
Debt not guaranteed | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 6,219 | 5,106 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 6,219 | 5,106 |
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 190 | 735 |
Debt Instrument, Maturity, End Year | 2,018 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 190 | 735 |
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 1.57% | |
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 1.40% | |
Debt not guaranteed | Debt of consolidated investments | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 6,029 | 4,371 |
Debt Instrument, Maturity, Start year | 2,018 | |
Debt Instrument, Maturity, End Year | 2,065 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 6,029 | 4,371 |
Debt not guaranteed | Debt of consolidated investments | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 9.31% | |
Debt not guaranteed | Debt of consolidated investments | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 0.00% | |
Debt not guaranteed | Debt of consolidated investments | Real Estate and Investment Funds [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 2,500 | 1,900 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 2,500 | 1,900 |
Debt not guaranteed | Debt of consolidated investments | Affordable Housing Partnership [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,800 | 1,700 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | 1,800 | 1,700 |
Debt not guaranteed | Debt of consolidated investments | Other | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,700 | 771 |
Maturities of long-term debt, excluding borrowings of consolidated investments | ||
Total | $ 1,700 | $ 771 |
DEBT (Details - AIGLH Junior su
DEBT (Details - AIGLH Junior subordinated debentures) - Borrowings supported by assets - AIGLH $ in Millions | Jul. 11, 2013USD ($) |
8.5 percent Junior subordinated debentures due July 2030 | |
Debt Instrument [Line Items] | |
Junior subordinated debentures liquidation value | $ 113 |
8.125 percent Junior subordinated debentures due March 2046 | |
Debt Instrument [Line Items] | |
Junior subordinated debentures liquidation value | 211 |
7.57 percent Junior subordinated debentures due December 2045 | |
Debt Instrument [Line Items] | |
Junior subordinated debentures liquidation value | $ 37 |
DEBT (Details - Credit faciliti
DEBT (Details - Credit facilities) - 5-Year Syndicated Facility $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Schedule of Debt Instruments [Line Items] | |
Maximum borrowing capacity | $ 4,500 |
Remaining borrowing capacity | $ 4,500 |
Debt Instrument, Maturity Date | June 2,022 |
Debt Instrument Effective Date | Jun. 27, 2017 |
CONTINGENCIES, COMMITMENTS A128
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Loss Contingencies) $ in Millions | Jun. 15, 2015USD ($) | Oct. 22, 2014USD ($) | Sep. 16, 2013item | Mar. 11, 2013class | Nov. 21, 2011 | Jan. 31, 2009complaint | Dec. 31, 2017USD ($)complaint | Feb. 09, 2015complaint |
Other Commitments | ||||||||
Other Commitments | $ | $ 3,200 | |||||||
Consolidated 2008 Securities Litigation | ||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||
Number of separate proceedings filed | 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 | item | 286,908 | |||||||
Individual Securities Litigations [Member] | ||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | ||||||||
Number of funds that are plaintiffs in similar actions | 11 | |||||||
Number of cases that have been settled | 9 | |||||||
Number of claims dismissed | 2 |
CONTINGENCIES, COMMITMENTS A129
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Long term purchase commitments) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Future minimum lease payments under operating leases | |||
2,018 | $ 243 | ||
2,019 | 179 | ||
2,020 | 137 | ||
2,021 | 95 | ||
2,022 | 59 | ||
Remaining years after 2022 | 120 | ||
Total | 833 | ||
Rent expense | 269 | $ 331 | $ 327 |
Other Commitments | |||
Other Commitments | $ 3,200 |
CONTINGENCIES, COMMITMENTS A130
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) $ in Millions | Dec. 31, 2017USD ($) |
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 ($) $ / shares in Units, $ in Millions | Dec. 22, 2017 | Sep. 29, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 22, 2016 | Sep. 29, 2016 | Jun. 27, 2016 | Mar. 28, 2016 | Dec. 21, 2015 | Sep. 28, 2015 | Jun. 25, 2015 | Mar. 26, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 03, 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 | 1,193,916,617 | 1,375,926,971 | |||||||||||||
Issuances (in shares) | 3,386,462 | 2,069,110 | 371,806 | |||||||||||||
Shares repurchased | (99,677,646) | (200,649,886) | (182,382,160) | |||||||||||||
Shares, end of period | (1,007,626,835) | (911,335,651) | ||||||||||||||
Shares, end of period | 1,906,671,492 | 1,906,671,492 | ||||||||||||||
Shares, end of period | 899,044,657 | 995,335,841 | 1,193,916,617 | |||||||||||||
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 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.28 | $ 0.28 | $ 0.125 | $ 0.125 | ||||
Date of Shareholders of Record | Dec. 8, 2017 | Sep. 15, 2017 | Jun. 14, 2017 | Mar. 15, 2017 | Dec. 8, 2016 | Sep. 15, 2016 | Jun. 13, 2016 | Mar. 14, 2016 | Dec. 7, 2015 | Sep. 14, 2015 | Jun. 11, 2015 | Mar. 12, 2015 | ||||
Authorized amount of common Stock share repurchase | $ 2,500 | |||||||||||||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 2,300 | |||||||||||||||
Shares repurchased (in shares) | 99,677,646 | 200,649,886 | 182,382,160 | |||||||||||||
Payments for Repurchase of Common Stock | $ 6,275 | $ 11,460 | $ 10,691 | |||||||||||||
Amount paid to purchase warrants | $ 3 | $ 309 | $ 0 | |||||||||||||
Warrants repurchased | 185,000 | 17,000,000 | 0 | |||||||||||||
Subsequent event | ||||||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||||||||||||||
Date of Shareholders of Record | Mar. 15, 2018 | |||||||||||||||
Common Stock Issued | ||||||||||||||||
The following table presents a roll forward of outstanding shares: | ||||||||||||||||
Shares, beginning of year | 1,906,671,492 | 1,906,671,492 | 1,906,671,492 | |||||||||||||
Issuances (in shares) | 0 | 0 | 0 | |||||||||||||
Shares repurchased | 0 | 0 | 0 | |||||||||||||
Shares, end of period | 1,906,671,492 | 1,906,671,492 | 1,906,671,492 | |||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||||||||||||||
Shares repurchased (in shares) | 0 | 0 | 0 | |||||||||||||
Treasury Stock | ||||||||||||||||
The following table presents a roll forward of outstanding shares: | ||||||||||||||||
Shares, beginning of year | (911,335,651) | (712,754,875) | (530,744,521) | |||||||||||||
Issuances (in shares) | 3,386,462 | 2,069,110 | 371,806 | |||||||||||||
Shares repurchased | (99,677,646) | (200,649,886) | (182,382,160) | |||||||||||||
Shares, end of period | (1,007,626,835) | (911,335,651) | (712,754,875) | |||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||||||||||||||
Shares repurchased (in shares) | 99,677,646 | 200,649,886 | 182,382,160 |
EQUITY (Details - Share repurch
EQUITY (Details - Share repurchases) shares in Millions | 1 Months Ended |
Jan. 31, 2015shares | |
Common Stock | Accelerated Share Repurchase Agreement [Member] | |
Rollforward of preferred stock | |
Additional shares received from financial institution | 3.5 |
EQUITY (Details - Rollforward o
EQUITY (Details - Rollforward of Accumulated other comprehensive income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | $ 3,230 | $ 2,537 | $ 10,617 |
Change in unrealized appreciation (depreciation) of investments | 4,062 | 605 | (11,007) |
Change in deferred acquisition costs adjustment and other | (1,259) | 267 | 1,119 |
Change in future policy benefits | (1,102) | (676) | 1,204 |
Changes in foreign currency translation adjustments | 547 | 93 | (1,129) |
Net actuarial gain (loss) | 110 | (151) | 413 |
Prior service cost (credit) | 9 | (22) | (239) |
Deferred tax asset (liability) | (132) | 577 | 1,553 |
Other Comprehensive Income (Loss) | 2,235 | 693 | (8,086) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment | 539 | 250 | (1,100) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment | 41 | (126) | 123 |
Noncontrolling interests | 0 | 0 | (6) |
Balance, end of period, net of tax | 5,465 | 3,230 | 2,537 |
Accumulated Other Comprehensive Income | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Other Comprehensive Income (Loss) | 2,235 | 693 | (8,080) |
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Other-Than-Temporary Credit Impairments Were Taken | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | 426 | 696 | 1,043 |
Change in unrealized appreciation (depreciation) of investments | 394 | (326) | (488) |
Change in deferred acquisition costs adjustment and other | 23 | (19) | (146) |
Change in future policy benefits | 0 | 0 | 92 |
Deferred tax asset (liability) | (50) | 75 | 195 |
Other Comprehensive Income (Loss) | 367 | (270) | (347) |
Balance, end of period, net of tax | 793 | 426 | 696 |
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 | 12,327 |
Change in unrealized appreciation (depreciation) of investments | 3,668 | 931 | (10,519) |
Change in deferred acquisition costs adjustment and other | (1,282) | 286 | 1,265 |
Change in future policy benefits | (1,102) | (676) | 1,112 |
Deferred tax asset (liability) | 4 | 298 | 1,380 |
Other Comprehensive Income (Loss) | 1,288 | 839 | (6,762) |
Noncontrolling interests | 0 | 0 | (1) |
Balance, end of period, net of tax | 7,693 | 6,405 | 5,566 |
Foreign Currency Translation Adjustments | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | (2,629) | (2,879) | (1,784) |
Changes in foreign currency translation adjustments | 547 | 93 | (1,129) |
Deferred tax asset (liability) | (8) | 157 | 29 |
Other Comprehensive Income (Loss) | 539 | 250 | (1,100) |
Noncontrolling interests | 0 | 0 | (5) |
Balance, end of period, net of tax | (2,090) | (2,629) | (2,879) |
Retirement Plan Liabilities Adjustment | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | (972) | (846) | (969) |
Net actuarial gain (loss) | 110 | (151) | 413 |
Prior service cost (credit) | 9 | (22) | (239) |
Deferred tax asset (liability) | (78) | 47 | (51) |
Other Comprehensive Income (Loss) | 41 | (126) | 123 |
Balance, end of period, net of tax | $ (931) | $ (972) | $ (846) |
EQUITY (Details - Other compreh
EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | $ 3,090 | $ 1,296 | $ (8,383) |
Less: Reclassification adjustments included in net income | 723 | 1,180 | 1,256 |
Total other comprehensive income (loss), before income tax expense (benefit) | 2,367 | 116 | (9,639) |
Less: Income tax expense (benefit) | 132 | (577) | (1,553) |
Other comprehensive income | 2,235 | 693 | (8,086) |
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Other-Than-Temporary Credit Impairments Were Taken | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 467 | (222) | (471) |
Less: Reclassification adjustments included in net income | 50 | 123 | 71 |
Total other comprehensive income (loss), before income tax expense (benefit) | 417 | (345) | (542) |
Less: Income tax expense (benefit) | 50 | (75) | (195) |
Other comprehensive income | 367 | (270) | (347) |
Unrealized Appreciation (Depreciation) of All Other Investments | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 2,052 | 1,769 | (7,068) |
Less: Reclassification adjustments included in net income | 768 | 1,228 | 1,074 |
Total other comprehensive income (loss), before income tax expense (benefit) | 1,284 | 541 | (8,142) |
Less: Income tax expense (benefit) | (4) | (298) | (1,380) |
Other comprehensive income | 1,288 | 839 | (6,762) |
Foreign Currency Translation Adjustments | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 547 | 93 | (1,129) |
Less: Reclassification adjustments included in net income | 0 | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | 547 | 93 | (1,129) |
Less: Income tax expense (benefit) | 8 | (157) | (29) |
Other comprehensive income | 539 | 250 | (1,100) |
Retirement Plan Liabilities Adjustment | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 24 | (344) | 285 |
Less: Reclassification adjustments included in net income | (95) | (171) | 111 |
Total other comprehensive income (loss), before income tax expense (benefit) | 119 | (173) | 174 |
Less: Income tax expense (benefit) | 78 | (47) | 51 |
Other comprehensive income | $ 41 | $ (126) | $ 123 |
EQUITY (Details - Reclassificat
EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other realized capital gains (losses) | $ (1,153) | $ (1,457) | $ 1,367 | ||||||||
Amortization of deferred acquisition costs | 4,288 | 4,521 | 5,236 | ||||||||
Policyholder benefits and losses incurred | 29,972 | 32,437 | 31,345 | ||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 723 | 1,180 | 1,256 | ||||||||
Income from continuing operations before income tax expense (benefit) | $ 875 | $ (2,803) | $ 1,667 | $ 1,727 | $ (3,455) | $ 737 | $ 2,858 | $ (214) | 1,466 | (74) | 3,281 |
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) | 723 | 1,180 | 1,256 | ||||||||
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 50 | 123 | 71 | ||||||||
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other realized capital gains (losses) | 50 | 123 | 71 | ||||||||
Income from continuing operations before income tax expense (benefit) | 50 | 123 | 71 | ||||||||
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 | 768 | 1,228 | 1,074 | ||||||||
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) | 463 | 935 | 1,054 | ||||||||
Amortization of deferred acquisition costs | 305 | 293 | 3 | ||||||||
Policyholder benefits and losses incurred | 0 | 0 | 17 | ||||||||
Income from continuing operations before income tax expense (benefit) | 768 | 1,228 | 1,074 | ||||||||
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 | (95) | (171) | 111 | ||||||||
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 | (95) | (171) | 111 | ||||||||
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 | 5 | 15 | 214 | ||||||||
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 | $ (100) | $ (186) | $ (103) |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator for EPS: | |||||||||||
Income (Loss) from Continuing Operations | $ (6,060) | $ (259) | $ 2,222 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | $ (12) | $ 26 | $ (12) | $ 26 | $ 535 | $ (26) | $ 11 | $ (20) | 28 | 500 | 26 |
Net income (loss) attributable to AIG common shareholders from continuing operations | (6,088) | (759) | 2,196 | ||||||||
Income (loss) from discontinued operations, net of income tax expense | $ (3) | $ (1) | $ 8 | $ 0 | $ (36) | $ 3 | $ (10) | $ (47) | 4 | (90) | 0 |
Net income (loss) attributable to AIG common shareholders | $ (6,084) | $ (849) | $ 2,196 | ||||||||
Denominator for EPS: | |||||||||||
Weighted average shares outstanding - basic | 908,115,499 | 908,667,044 | 925,751,084 | 980,777,243 | 1,023,886,592 | 1,071,295,892 | 1,113,587,927 | 1,156,548,459 | 930,561,286 | 1,091,085,131 | 1,299,825,350 |
Dilutive shares | 0 | 0 | 34,639,533 | ||||||||
Weighted average shares outstanding - diluted | 908,115,499 | 908,667,044 | 948,248,771 | 1,005,315,030 | 1,023,886,592 | 1,102,400,770 | 1,140,045,973 | 1,156,548,459 | 930,561,286 | 1,091,085,131 | 1,334,464,883 |
Basic: | |||||||||||
Income (loss) from continuing operations | $ (7.33) | $ (1.91) | $ 1.21 | $ 1.21 | $ (2.93) | $ 0.43 | $ 1.73 | $ (0.12) | $ (6.54) | $ (0.7) | $ 1.69 |
Income (loss) from discontinued operations | 0 | 0 | 0.01 | 0 | (0.03) | 0 | (0.01) | (0.04) | 0 | (0.08) | 0 |
Net income (loss) attributable to AIG | (6.54) | (0.78) | 1.69 | ||||||||
Diluted: | |||||||||||
Income (loss) from continuing operations | (7.33) | (1.91) | 1.18 | 1.18 | (2.93) | 0.42 | 1.69 | (0.12) | (6.54) | (0.7) | 1.65 |
Income (loss) from discontinued operations | $ 0 | $ 0 | $ 0.01 | $ 0 | $ (0.03) | $ 0 | $ (0.01) | $ (0.04) | 0 | (0.08) | 0 |
Net Income (loss) attributable to AIG | $ (6.54) | $ (0.78) | $ 1.65 | ||||||||
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive | 1,700,000 | 200,000 | 200,000 | ||||||||
Dilutive Shares Excluded From Computation Of Diluted Earnings Per Share | 22,412,682 | 30,326,772 |
STATUTORY FINANCIAL DATA AND137
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory capital and surplus and net income (loss) | |||
Increase (decrease) in the previously reported amount of statutory net income as a result of the finalization of statutory filings | $ 479 | ||
Increase (decrease) in the previously reported amount of statutory surplus as a result of the finalization of statutory filings | 305 | ||
Subsidiary Dividend Restrictions | |||
Statutory capital and surplus of consolidated insurance subsidiaries companies restricted from transfer to parent | $ 44,800 | ||
New York | |||
Subsidiary Dividend Restrictions | |||
Dividend restrictions, as percentage of statutory policyholders' surplus | 10.00% | ||
Dividend restrictions, as percentage of adjusted net investment income, as defined | 100.00% | ||
General Insurance Companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | $ (955) | (1,066) | $ 2,038 |
Statutory capital and surplus | 33,209 | 34,252 | |
Aggregate minimum required statutory capital and surplus | 11,473 | 12,440 | |
Statutory surplus and net income (loss) | |||
Capital Contribution To Affiliates | 200 | ||
General Insurance Companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | (622) | 260 | 1,444 |
Statutory capital and surplus | 21,514 | 21,665 | |
Aggregate minimum required statutory capital and surplus | 5,307 | 5,183 | |
General Insurance Companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | (333) | (1,326) | 594 |
Statutory capital and surplus | 11,695 | 12,587 | |
Aggregate minimum required statutory capital and surplus | 6,166 | 7,257 | |
Life and Retirement companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 953 | 2,299 | 2,195 |
Statutory capital and surplus | 12,318 | 12,804 | |
Aggregate minimum required statutory capital and surplus | 3,269 | 3,322 | |
Statutory surplus and net income (loss) | |||
Permitted practice | 407 | 645 | |
Life and Retirement companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 932 | 2,252 | 2,200 |
Statutory capital and surplus | 11,872 | 12,314 | |
Aggregate minimum required statutory capital and surplus | 3,148 | 3,088 | |
Life and Retirement companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 21 | 47 | $ (5) |
Statutory capital and surplus | 446 | 490 | |
Aggregate minimum required statutory capital and surplus | $ 121 | 234 | |
Property Casualty Insurance Companies | |||
Statutory surplus and net income (loss) | |||
Permitted practice | $ 1,100 |
SHARE-BASED AND OTHER COMPEN138
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share based compensation expense) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SHARE-BASED AND OTHER COMPENSATION PLANS | |||
Share-based compensation expense - pre-tax | $ 353 | $ 237 | $ 365 |
Share-based compensation expense - after tax | 229 | 154 | 237 |
Vested stock-settled awards issued to retirement eligible employees | 141 | $ 105 | $ 147 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 40 |
SHARE-BASED AND OTHER COMPEN139
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Employee Plans, Share-settled Awards - assumptions used to estimate the fair value of PSUs) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($)itemshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ | $ 353 | $ 237 | $ 365 | ||
Performance share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weight used to calculate performance measure (as a percent) | 75.00% | 25.00% | 50.00% | ||
Assumptions used to estimate the fair value of PSUs based on AIG's TSR | |||||
Expected dividend yield (as a percent) | 2.37% | 2.17% | 1.78% | ||
Expected volatility (as a percent) | 17.58% | 24.55% | 22.71% | ||
Risk-free interest rate (as a percent) | 2.00% | 1.30% | 1.01% | ||
Deferred stock units (DSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted under the plans | 32,067 | 41,974 | 32,342 | ||
Compensation expense | $ | $ 2 | $ 2.4 | $ 1.9 | ||
2013 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for future grant | 45,000,000 | ||||
Number of shares reserved for future grants | 42,780,716 | ||||
Reduction in the number of shares available for grants | 1 | ||||
AIG 2013 Long Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 3 years | ||||
Number of installments | item | 3 | ||||
AIG 2013 Long Term Incentive Plan | Vesting on January 1 from the next three years of immediately following the end of the performance period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, from date of grant | 2 years | ||||
AIG 2013 Long Term Incentive Plan | Performance share units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of performance period depending on which actual number of awards can be earned | 200.00% | 150.00% | |||
AIG 2013 Long Term Incentive Plan | Performance share units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of performance period depending on which actual number of awards can be earned | 0.00% | 0.00% | |||
AIG 2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for future grant | 60,000,000 | ||||
Reduction in the number of shares available for grants | 0 | ||||
SICO Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Completion of age of the employee after which the awards can be vested | 65 years | ||||
Payments for various benefits provided under the plan | $ | $ 0 |
SHARE-BASED AND OTHER COMPEN140
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share-settled Awards - Outstanding share-settled awards) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incurred incremental compensation expense | $ 71 | ||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||
Unrecognized Compensation Cost | $ 0 | $ 0 | |
Expected Period | 3 years | ||
RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incurred incremental compensation expense | $ 142 | ||
SICO Plans | |||
Change in number of shares | |||
Unvested at the end of the period (in shares) | 0 | 0 | |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||
Weighted-Average Period | 5 years 29 days | ||
Expected Period | 21 years | ||
2013 LTI | PSUs | |||
Change in number of shares | |||
Unvested at the beginning of the period (in shares) | 576,210 | 1,581,904 | |
Net impact of modification | 0 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | 968,930 | 0 | |
Forfeited (in shares) | 36,764 | 0 | |
Cancelled at modification date (in shares) | 0 | ||
Granted at modification date (in shares) | 0 | ||
Unvested at the end of the period (in shares) | 576,210 | 576,210 | 1,581,904 |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 38.04 | $ 38.03 | |
Net impact of modification | 0 | ||
Granted (in dollars per share) | 0 | ||
Vested (in dollars per share) | 37.98 | 0 | |
Forfeited (in dollars per share) | 39.14 | 0 | |
Cancelled at modification date (in dollars per share) | 0 | ||
Granted at modification date (in dollars per share) | 0 | ||
Unvested at the end of the period (in dollars per share) | $ 38.04 | $ 38.04 | $ 38.03 |
2014 LTI | PSUs | |||
Change in number of shares | |||
Unvested at the beginning of the period (in shares) | 823,311 | 1,732,616 | |
Net impact of modification | 0 | ||
Granted (in shares) | 122,378 | ||
Vested (in shares) | 957,045 | 0 | |
Forfeited (in shares) | 74,638 | 0 | |
Cancelled at modification date (in shares) | 0 | ||
Granted at modification date (in shares) | 0 | ||
Unvested at the end of the period (in shares) | 823,311 | 823,311 | 1,732,616 |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 48.81 | $ 48.88 | |
Net impact of modification | 0 | ||
Granted (in dollars per share) | 48.57 | ||
Vested (in dollars per share) | 48.89 | 0 | |
Forfeited (in dollars per share) | 49.02 | 0 | |
Cancelled at modification date (in dollars per share) | 0 | ||
Granted at modification date (in dollars per share) | 0 | ||
Unvested at the end of the period (in dollars per share) | $ 48.81 | $ 48.81 | $ 48.88 |
2015 LTI | PSUs | |||
Change in number of shares | |||
Unvested at the beginning of the period (in shares) | 1,853,843 | 2,176,555 | |
Net impact of modification | (135,244) | ||
Granted (in shares) | 0 | ||
Vested (in shares) | 201,256 | 424,788 | |
Forfeited (in shares) | 121,456 | 2,023 | |
Cancelled at modification date (in shares) | (2,229,873) | ||
Granted at modification date (in shares) | 2,094,629 | ||
Unvested at the end of the period (in shares) | 1,291,788 | 1,291,788 | 2,176,555 |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 55.17 | $ 55.52 | |
Net impact of modification | 56.33 | ||
Granted (in dollars per share) | 0 | ||
Vested (in dollars per share) | 59.04 | 61.82 | |
Forfeited (in dollars per share) | 55.01 | 62.13 | |
Cancelled at modification date (in dollars per share) | 54.56 | ||
Granted at modification date (in dollars per share) | 62.13 | ||
Unvested at the end of the period (in dollars per share) | $ 60.02 | $ 60.02 | $ 55.52 |
2016 LTI | PSUs | |||
Change in number of shares | |||
Unvested at the beginning of the period (in shares) | 2,270,203 | 2,588,598 | |
Net impact of modification | (304,551) | ||
Granted (in shares) | 2,806 | ||
Vested (in shares) | 182,938 | 495,222 | |
Forfeited (in shares) | 138,263 | 2,685 | |
Cancelled at modification date (in shares) | (2,951,417) | ||
Granted at modification date (in shares) | 2,646,866 | ||
Unvested at the end of the period (in shares) | 1,467,745 | 1,467,745 | 2,588,598 |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 50.37 | $ 51.12 | |
Net impact of modification | 55.01 | ||
Granted (in dollars per share) | 36.49 | ||
Vested (in dollars per share) | 60.29 | 62.13 | |
Forfeited (in dollars per share) | 51.1 | 62.13 | |
Cancelled at modification date (in dollars per share) | 52 | ||
Granted at modification date (in dollars per share) | 62.13 | ||
Unvested at the end of the period (in dollars per share) | $ 60.9 | $ 60.9 | $ 51.12 |
2017 LTI | PSUs | |||
Change in number of shares | |||
Unvested at the beginning of the period (in shares) | 2,940,046 | 0 | |
Net impact of modification | 0 | ||
Granted (in shares) | 3,996,978 | ||
Vested (in shares) | 971,945 | 766,931 | |
Forfeited (in shares) | 84,987 | 0 | |
Cancelled at modification date (in shares) | (1,082,417) | ||
Granted at modification date (in shares) | 1,082,417 | ||
Unvested at the end of the period (in shares) | 2,173,115 | 2,173,115 | 0 |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 65.07 | $ 0 | |
Net impact of modification | 0 | ||
Granted (in dollars per share) | 64.83 | ||
Vested (in dollars per share) | 64.09 | 64.01 | |
Forfeited (in dollars per share) | 65.24 | 0 | |
Cancelled at modification date (in dollars per share) | 67.47 | ||
Granted at modification date (in dollars per share) | 62.13 | ||
Unvested at the end of the period (in dollars per share) | $ 62.78 | $ 62.78 | $ 0 |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||
Unrecognized Compensation Cost | $ 237 | ||
Weighted-Average Period | 1 year 7 days | ||
Expected Period | 3 years |
SHARE-BASED AND OTHER COMPEN141
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Roll forward of stock option activity) - USD ($) $ / shares in Units, $ in Millions | Dec. 22, 2017 | Sep. 29, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 22, 2016 | Sep. 29, 2016 | Jun. 27, 2016 | Mar. 28, 2016 | Dec. 21, 2015 | Sep. 28, 2015 | Jun. 25, 2015 | Mar. 26, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares granted under the plans | 2,500,000 | ||||||||||||||
Weighted average assumptions used to estimate the fair value | |||||||||||||||
Dividend paid (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.28 | $ 0.28 | $ 0.125 | $ 0.125 | |||
Stock options activity | |||||||||||||||
Outstanding at beginning of year (in shares) | 0 | ||||||||||||||
Granted (in shares) | 2,500,000 | ||||||||||||||
Exercised (in shares) | 0 | ||||||||||||||
Forfeited or expired (in shares) | 0 | ||||||||||||||
Outstanding at end of year (in shares) | 2,500,000 | 0 | |||||||||||||
Units, Exercisable, end of year (in shares) | 0 | ||||||||||||||
Stock options, Weighted Average Exercise Price | |||||||||||||||
Outstanding at beginning of year (in dollars per share) | $ 0 | ||||||||||||||
Granted (in dollars per share) | 62.9 | ||||||||||||||
Exercised (in dollars per share) | 0 | ||||||||||||||
Forfeited or expired (in dollars per share) | 0 | ||||||||||||||
Outstanding at end of year (in dollars per share) | 62.9 | $ 0 | |||||||||||||
Excercisable, end of year (in dollars per share) | $ 0 | ||||||||||||||
Stock options, Weighted Average Remaining Contractual Life | |||||||||||||||
Weighted Average Remaining Contractual Life, Outstanding End of year | 6 years 5 months 23 days | ||||||||||||||
Weighted Average Remaining Contractual Life, Exercisable, End of year | 0 years | ||||||||||||||
Aggregate intrinsic value, Outstanding, end of year | $ 0 | ||||||||||||||
Aggregate intrinsic value, Excerciable, end of year | 0 | ||||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Compensation expense | 353 | $ 237 | $ 365 | ||||||||||||
Deferred stock units (DSUs) | |||||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Compensation expense | $ 2 | $ 2.4 | $ 1.9 | ||||||||||||
Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares granted under the plans | 2,500,000 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Weighted average assumptions used to estimate the fair value | |||||||||||||||
Expected annual dividend yield (as a percent) | 2.03% | ||||||||||||||
Expected volatility (as a percent) | 20.96% | ||||||||||||||
Risk-free interest rate (as a percent) | 1.94% | ||||||||||||||
Expected term | 4 years 6 months | ||||||||||||||
Dividend paid (in dollars per share) | $ 0.32 | ||||||||||||||
Number of Days Implied volatility as seen in the open marketplace on the Valuation Date | 2 years 11 months 15 days | ||||||||||||||
Risk-free interest rate, Maximum | 2.14% | ||||||||||||||
Risk-free interest rate, Minimum | 1.76% | ||||||||||||||
Contractual term of the option | 7 Years | ||||||||||||||
Shares issued in connection with previous exercises of options with delivery deferred | 0 | ||||||||||||||
Stock options activity | |||||||||||||||
Granted (in shares) | 2,500,000 | ||||||||||||||
Stock options, Weighted Average Remaining Contractual Life | |||||||||||||||
Weighted average grant-date fair value of stock options granted | $ 10.54 | ||||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Compensation expense | $ 7.3 | ||||||||||||||
Unrecognized Compensation Cost | $ 19 | ||||||||||||||
Expected Period | 2 years 9 months |
SHARE-BASED AND OTHER COMPEN142
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Cash-settled Awards) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)itemshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid to settle awards | $ 141 | $ 105 | $ 147 |
Compensation expense | 353 | 237 | 365 |
Long Term Incentive Plans 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 0 | 19 | 57 |
Percentage of outstanding awards that will vest once the service requirements are satisfied | 100.00% | ||
Contingent performance measurement period | 2 years | ||
Long Term Incentive Plans 2012 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contingent performance target amount | item | 2 | ||
Contingent performance cash portion maximum period | 2 years | ||
Long Term Incentive Plans 2012 [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contingent performance target amount | item | 0 | ||
Stock Salary Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid to settle awards | $ 29 | 101 | 155 |
Compensation expense | $ 0 | $ 2 | $ 7 |
Number of vested but unsettled RSUs | shares | 0 | ||
SARs | Long Term Incentive Plans 2012 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contingent performance cash portion maximum period | 2 years |
EMPLOYEE BENEFITS (Details - Pe
EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in plan assets: | ||||||
AIG contributions | $ 209 | $ 236 | $ 166 | |||
Pensions | U.S. Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Annual pay credit percentage to be applied to participant's cash balance | 6.00% | |||||
Change in projected benefit obligation: | ||||||
Benefit obligation, beginning of year | $ 5,091 | $ 4,948 | 5,324 | |||
Service cost | 11 | 19 | 192 | |||
Interest cost | 166 | 181 | 220 | |||
Actuarial (gain) loss | 372 | 118 | ||||
Benefits paid: | ||||||
AIG assets | (19) | (24) | ||||
Plan assets | (161) | (332) | ||||
Plan amendment | 0 | 0 | ||||
Curtailments | 0 | 0 | ||||
Settlements | (226) | (338) | ||||
Foreign exchange effect | 0 | 0 | ||||
Other | 0 | 0 | ||||
Projected benefit obligation, end of year | 5,091 | 4,948 | 5,324 | |||
Change in plan assets: | ||||||
Fair value of plan assets, beginning of year | 4,350 | 3,843 | 4,359 | |||
Actual return on plan assets, net of expenses | 584 | 154 | ||||
AIG contributions | 64 | 329 | 24 | |||
AIG assets | (19) | (24) | ||||
Plan assets | (161) | (332) | ||||
Settlements | (226) | (338) | ||||
Foreign exchange effect | 0 | 0 | ||||
Dispositions | 0 | 0 | ||||
Other | 0 | 0 | ||||
Fair value of plan assets, end of year | 4,350 | 3,843 | 4,359 | |||
Funded status, end of year | $ (741) | $ (1,105) | ||||
Amounts recognized in the consolidated balance sheet: | ||||||
Assets | 0 | 0 | ||||
Liabilities | (741) | (1,105) | ||||
Total amounts recognized | (741) | (1,105) | ||||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | ||||||
Net gain (loss) | (1,373) | (1,405) | ||||
Prior service (cost) credit | 0 | 0 | ||||
Total amounts recognized | (1,373) | (1,405) | ||||
Projected benefit obligation | 5,091 | 4,948 | 4,948 | 5,324 | 5,091 | 4,948 |
Pensions | U.S. Plans | Non-qualified unfunded plans | ||||||
Change in projected benefit obligation: | ||||||
Benefit obligation, beginning of year | 272 | 278 | ||||
Benefits paid: | ||||||
Projected benefit obligation, end of year | 272 | 278 | ||||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | ||||||
Projected benefit obligation | 272 | $ 272 | 278 | 272 | 278 | |
Pensions | U.S. Plans | Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Requisite service period to participate in the plan | 12 months | |||||
Period of service after which plan gets vested | 3 years | |||||
Pensions | U.S. Plans | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Unreduced benefits, maximum services credited | 44 years | |||||
Pensions | Non U.S. Plans | ||||||
Change in projected benefit obligation: | ||||||
Benefit obligation, beginning of year | 1,202 | $ 1,246 | 1,146 | |||
Service cost | 29 | 31 | 43 | |||
Interest cost | 16 | 21 | 25 | |||
Actuarial (gain) loss | (29) | 98 | ||||
Benefits paid: | ||||||
AIG assets | (10) | (12) | ||||
Plan assets | (26) | (35) | ||||
Plan amendment | 0 | 1 | ||||
Curtailments | (7) | (2) | ||||
Settlements | (12) | (16) | ||||
Foreign exchange effect | 37 | 19 | ||||
Other | (42) | (5) | ||||
Projected benefit obligation, end of year | 1,202 | 1,246 | 1,146 | |||
Change in plan assets: | ||||||
Fair value of plan assets, beginning of year | 875 | 803 | 773 | |||
Actual return on plan assets, net of expenses | 67 | 19 | ||||
AIG contributions | 64 | 60 | 71 | |||
AIG assets | (10) | (12) | ||||
Plan assets | (26) | (35) | ||||
Settlements | (12) | (16) | ||||
Foreign exchange effect | 19 | 6 | ||||
Dispositions | 0 | (4) | ||||
Other | (26) | 1 | ||||
Fair value of plan assets, end of year | 875 | 803 | 773 | |||
Funded status, end of year | (327) | (443) | ||||
Amounts recognized in the consolidated balance sheet: | ||||||
Assets | 68 | 53 | ||||
Liabilities | (395) | (496) | ||||
Total amounts recognized | (327) | (443) | ||||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | ||||||
Net gain (loss) | (170) | (251) | ||||
Prior service (cost) credit | (22) | (28) | ||||
Total amounts recognized | (192) | (279) | ||||
Projected benefit obligation | 1,202 | 1,246 | 1,246 | 1,146 | 1,202 | 1,246 |
Pensions | Non U.S. Plans | Non-qualified unfunded plans | ||||||
Change in projected benefit obligation: | ||||||
Benefit obligation, beginning of year | 211 | 199 | ||||
Benefits paid: | ||||||
Projected benefit obligation, end of year | 211 | 199 | ||||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | ||||||
Projected benefit obligation | 211 | $ 211 | 199 | 211 | 199 | |
Postretirement Plans | U.S. Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Eligibility age | 55 years | |||||
Change in projected benefit obligation: | ||||||
Benefit obligation, beginning of year | 190 | $ 196 | 208 | |||
Service cost | 2 | 2 | 5 | |||
Interest cost | 6 | 7 | 8 | |||
Actuarial (gain) loss | 0 | (2) | ||||
Benefits paid: | ||||||
AIG assets | (13) | (14) | ||||
Plan assets | 0 | 0 | ||||
Plan amendment | 0 | 0 | ||||
Curtailments | 0 | (1) | ||||
Settlements | 0 | 0 | ||||
Foreign exchange effect | 0 | 0 | ||||
Other | (1) | (4) | ||||
Projected benefit obligation, end of year | 190 | 196 | 208 | |||
Change in plan assets: | ||||||
Fair value of plan assets, beginning of year | 0 | 0 | 0 | |||
Actual return on plan assets, net of expenses | 0 | 0 | ||||
AIG contributions | 13 | 14 | ||||
AIG assets | (13) | (14) | ||||
Plan assets | 0 | 0 | ||||
Settlements | 0 | 0 | ||||
Foreign exchange effect | 0 | 0 | ||||
Dispositions | 0 | 0 | ||||
Other | 0 | 0 | ||||
Fair value of plan assets, end of year | 0 | 0 | 0 | |||
Funded status, end of year | (190) | (196) | ||||
Amounts recognized in the consolidated balance sheet: | ||||||
Assets | 0 | 0 | ||||
Liabilities | (190) | (196) | ||||
Total amounts recognized | (190) | (196) | ||||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | ||||||
Net gain (loss) | 17 | 17 | ||||
Prior service (cost) credit | 1 | 2 | ||||
Total amounts recognized | 18 | 19 | ||||
Projected benefit obligation | 190 | $ 196 | 196 | 208 | 190 | 196 |
Postretirement Plans | U.S. Plans | Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Minimum requisite service period to participate in the plan | 10 years | |||||
Postretirement Plans | Non U.S. Plans | ||||||
Change in projected benefit obligation: | ||||||
Benefit obligation, beginning of year | 63 | $ 80 | 75 | |||
Service cost | 3 | 3 | 3 | |||
Interest cost | 3 | 3 | 3 | |||
Actuarial (gain) loss | (2) | 0 | ||||
Benefits paid: | ||||||
AIG assets | (1) | (1) | ||||
Plan assets | 0 | 0 | ||||
Plan amendment | (6) | 0 | ||||
Curtailments | 0 | 0 | ||||
Settlements | 0 | 0 | ||||
Foreign exchange effect | 1 | 0 | ||||
Other | (15) | 0 | ||||
Projected benefit obligation, end of year | 63 | 80 | 75 | |||
Change in plan assets: | ||||||
Fair value of plan assets, beginning of year | 0 | 0 | 0 | |||
Actual return on plan assets, net of expenses | 0 | 0 | ||||
AIG contributions | 1 | 1 | ||||
AIG assets | (1) | (1) | ||||
Plan assets | 0 | 0 | ||||
Settlements | 0 | 0 | ||||
Foreign exchange effect | 0 | 0 | ||||
Dispositions | 0 | 0 | ||||
Other | 0 | 0 | ||||
Fair value of plan assets, end of year | 0 | 0 | 0 | |||
Funded status, end of year | (63) | (80) | ||||
Amounts recognized in the consolidated balance sheet: | ||||||
Assets | 0 | 0 | ||||
Liabilities | (63) | (80) | ||||
Total amounts recognized | (63) | (80) | ||||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | ||||||
Net gain (loss) | (11) | (15) | ||||
Prior service (cost) credit | 5 | 0 | ||||
Total amounts recognized | (6) | (15) | ||||
Projected benefit obligation | $ 63 | $ 80 | $ 80 | $ 75 | $ 63 | $ 80 |
EMPLOYEE BENEFITS (Details - Ac
EMPLOYEE BENEFITS (Details - Accumulated benefit obligations for U.S. and non-U.S. pension benefit plans) - Pensions - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 5,091 | $ 4,948 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 5,091 | 4,948 |
Accumulated benefit obligation | 5,091 | 4,948 |
Fair value of plan assets | 4,350 | 3,843 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 5,091 | 4,948 |
Accumulated benefit obligation | 5,091 | 4,948 |
Fair value of plan assets | 4,350 | 3,843 |
Non U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 1,188 | 1,215 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 1,054 | 1,121 |
Accumulated benefit obligation | 979 | 1,016 |
Fair value of plan assets | 596 | 545 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 991 | 1,029 |
Accumulated benefit obligation | 979 | 1,009 |
Fair value of plan assets | $ 596 | $ 536 |
EMPLOYEE BENEFITS (Details - Pr
EMPLOYEE BENEFITS (Details - Projected benefit obligation and the accumulated benefit obligation was in excess of the related plan assets and components of net periodic benefit cost ) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pensions | |||
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | |||
Prior service credit | $ 2 | ||
Aggregate net loss and prior service credit | 35 | ||
Pension expense and effect of change in pension expense due to change in discount rate or expected long-term rate of return | |||
Increase in expense due to decrease of 100 basis point in discount rate | 23 | ||
Increase in expense due to decrease of 100 basis point in expected long-term rate of return | 51 | ||
Decrease in expense due to increase of 100 basis point in discount rate | 4 | ||
Decrease in expense due to increase of 100 basis point in expected long-term rate of return | 51 | ||
Pensions | U.S. Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 11 | $ 19 | $ 192 |
Interest cost | 166 | 181 | 220 |
Expected return on assets | (266) | (292) | (295) |
Amortization of prior service (credit) cost | 0 | 0 | (22) |
Amortization of net (gain) loss | 26 | 25 | 92 |
Net periodic benefit cost (credit) | (63) | (67) | 187 |
Curtailment (gain) loss | 0 | 0 | (179) |
Settlement (Credit)/Charges | 60 | 149 | 0 |
Net benefit cost (credit) | (3) | 82 | 8 |
Total recognized in Accumulated other comprehensive income (loss) | 32 | (82) | 143 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 35 | (164) | 135 |
Pensions | Non U.S. Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 29 | 31 | 43 |
Interest cost | 16 | 21 | 25 |
Expected return on assets | (24) | (26) | (25) |
Amortization of prior service (credit) cost | 0 | 0 | (2) |
Amortization of net (gain) loss | 12 | 7 | 9 |
Net periodic benefit cost (credit) | 33 | 33 | 50 |
Curtailment (gain) loss | (6) | (6) | (1) |
Settlement (Credit)/Charges | 1 | 2 | 1 |
Net benefit cost (credit) | 28 | 29 | 50 |
Total recognized in Accumulated other comprehensive income (loss) | 87 | (101) | 38 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 59 | (130) | (12) |
Postretirement Plans | |||
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | |||
Prior service credit | 3 | ||
Postretirement Plans | U.S. Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 2 | 2 | 5 |
Interest cost | 6 | 7 | 8 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (1) | (12) | (11) |
Amortization of net (gain) loss | (1) | (1) | 0 |
Net periodic benefit cost (credit) | 6 | (4) | 2 |
Curtailment (gain) loss | 0 | (1) | 0 |
Settlement (Credit)/Charges | 0 | 0 | 0 |
Net benefit cost (credit) | 6 | (5) | 2 |
Total recognized in Accumulated other comprehensive income (loss) | (2) | (7) | 12 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (8) | (2) | 10 |
Postretirement Plans | Non U.S. Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 3 | 3 | 3 |
Interest cost | 3 | 3 | 3 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (1) | 0 | (1) |
Amortization of net (gain) loss | 1 | 1 | 0 |
Net periodic benefit cost (credit) | 6 | 7 | 5 |
Curtailment (gain) loss | (2) | 0 | 0 |
Settlement (Credit)/Charges | 0 | 0 | 0 |
Net benefit cost (credit) | 4 | 7 | 5 |
Total recognized in Accumulated other comprehensive income (loss) | 9 | 1 | (9) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 5 | $ (6) | $ (14) |
EMPLOYEE BENEFITS (Details - We
EMPLOYEE BENEFITS (Details - Weighted average assumptions used to determine the benefit obligations) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension | U.S. Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 3.61% | 4.14% | |
Assumed health care cost trend rates | |||
Ultimate rate to which cost increase is assumed to decline (as a percent) | 4.50% | 4.50% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.15% | 4.33% | 3.94% |
Rate of compensation increase (as a percent) | 3.40% | ||
Expected return on assets (as a percent) | 7.00% | 7.00% | 7.25% |
Discount Rate Methodology | |||
Discount rate (as a percent) | 3.61% | 4.15% | |
Pension | U.S. Plans | Medical (before age 65) | |||
Assumed health care cost trend rates | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 6.12% | 6.31% | |
Year in which the ultimate trend rate is reached: | 2,038 | 2,038 | |
Pension | U.S. Plans | Medical (age 65 and older) | |||
Assumed health care cost trend rates | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 5.00% | 5.00% | |
Year in which the ultimate trend rate is reached: | 2,038 | 2,038 | |
Pension | Non U.S. Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 1.60% | 1.50% | |
Rate of compensation increase (as a percent) | 2.27% | 2.50% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 1.50% | 2.17% | 2.33% |
Rate of compensation increase (as a percent) | 2.50% | 2.64% | 2.89% |
Expected return on assets (as a percent) | 2.92% | 3.28% | 3.33% |
Pension | AIG Japan pension plans | |||
Discount Rate Methodology | |||
Projected benefit obligation to total projected benefit obligations (as a percent) | 50.00% | 54.00% | |
Weighted average discount rate (as a percent) | 0.66% | 0.47% | |
Postretirement Plans | U.S. Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 3.53% | 4.02% | |
Effect of one percent point change in the assumed healthcare cost trend rate on postretirement benefit obligations | |||
One percent increase | $ 4 | $ 4 | |
One percent decrease | $ (4) | $ (3) | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.01% | 4.21% | 3.77% |
Postretirement Plans | Non U.S. Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 3.59% | 3.95% | |
Rate of compensation increase (as a percent) | 3.00% | 3.38% | |
Effect of one percent point change in the assumed healthcare cost trend rate on postretirement benefit obligations | |||
One percent increase | $ 14 | $ 19 | |
One percent decrease | $ (10) | $ (14) | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 3.95% | 4.09% | 4.04% |
Rate of compensation increase (as a percent) | 3.38% | 3.43% | 3.29% |
EMPLOYEE BENEFITS (Details - As
EMPLOYEE BENEFITS (Details - Assumed health care cost trend rates) - Pensions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 100.00% | ||
Actual allocation (as a percent) | 100.00% | 100.00% | |
Expected weighted average long-term rate of return plan assets (as a percent) | 7.00% | 7.00% | |
U.S. Plans | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 46.00% | ||
Actual allocation (as a percent) | 45.00% | 43.00% | |
U.S. Plans | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 44.00% | ||
Actual allocation (as a percent) | 36.00% | 36.00% | |
U.S. Plans | Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 10.00% | ||
Actual allocation (as a percent) | 19.00% | 21.00% | |
Non U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 100.00% | ||
Actual allocation (as a percent) | 100.00% | 100.00% | |
Expected weighted average long-term rate of return plan assets (as a percent) | 2.92% | 3.28% | |
Non U.S. Plans | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 30.00% | ||
Actual allocation (as a percent) | 49.00% | 44.00% | |
Non U.S. Plans | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 52.00% | ||
Actual allocation (as a percent) | 32.00% | 36.00% | |
Non U.S. Plans | Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 17.00% | ||
Actual allocation (as a percent) | 13.00% | 14.00% | |
Non U.S. Plans | Cash & cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 1.00% | ||
Actual allocation (as a percent) | 6.00% | 6.00% | |
AIG Japan pension plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual allocation (as a percent) | 56.00% | 56.00% | |
Expected weighted average long-term rate of return plan assets (as a percent) | 2.43% | 2.61% |
EMPLOYEE BENEFITS (Details -148
EMPLOYEE BENEFITS (Details - Assets Measured at Fair Value) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at Fair Value | $ 5,997 | $ 6,741 | |
Pensions | Other Investment Types | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 777 | 960 | |
Pensions | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,350 | 3,843 | $ 4,359 |
Pensions | U.S. Plans | Other investment types: Annuity contracts | US Life | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | 21 | |
Pensions | U.S. Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,962 | 1,443 | |
Pensions | U.S. Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 397 | 228 | |
Pensions | U.S. Plans | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,300 | 838 | |
Pensions | U.S. Plans | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 265 | 377 | |
Pensions | U.S. Plans | Level 1 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 1 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 1 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 1 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 1 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 1 | Other investment types - Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 1 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 1 | Other investment types - Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 1 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 1 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,584 | 1,414 | |
Pensions | U.S. Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 2 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1 | |
Pensions | U.S. Plans | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 2 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,006 | 1,174 | |
Pensions | U.S. Plans | Level 2 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 204 | 0 | |
Pensions | U.S. Plans | Level 2 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 212 | 218 | |
Pensions | U.S. Plans | Level 2 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 142 | 0 | |
Pensions | U.S. Plans | Level 2 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 2 | Other investment types - Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 2 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 2 | Other investment types - Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 2 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 2 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | 21 | |
Pensions | U.S. Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27 | 26 | 37 |
Pensions | U.S. Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 3 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 2 | |
Pensions | U.S. Plans | Level 3 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 3 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 3 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 3 | Other investment types - Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 3 | Other investment types - Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Level 3 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15 | 24 | 28 |
Pensions | U.S. Plans | Level 3 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,573 | 2,883 | |
Pensions | U.S. Plans | Total Fair Value | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 397 | 228 | |
Pensions | U.S. Plans | Total Fair Value | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,300 | 839 | |
Pensions | U.S. Plans | Total Fair Value | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 265 | 377 | |
Pensions | U.S. Plans | Total Fair Value | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,018 | 1,176 | |
Pensions | U.S. Plans | Total Fair Value | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 204 | 0 | |
Pensions | U.S. Plans | Total Fair Value | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 212 | 218 | |
Pensions | U.S. Plans | Total Fair Value | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 142 | 0 | |
Pensions | U.S. Plans | Total Fair Value | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Total Fair Value | Other investment types - Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Total Fair Value | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Total Fair Value | Other investment types - Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. Plans | Total Fair Value | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15 | 24 | |
Pensions | U.S. Plans | Total Fair Value | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | 21 | |
Pensions | Non U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 875 | 803 | 773 |
Pensions | Non U.S. Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 413 | 348 | |
Pensions | Non U.S. Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 51 | 50 | |
Pensions | Non U.S. Plans | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 362 | 298 | |
Pensions | Non U.S. Plans | Level 1 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other investment types - Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other investment types - Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 348 | 347 | |
Pensions | Non U.S. Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 64 | 58 | |
Pensions | Non U.S. Plans | Level 2 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 97 | 90 | |
Pensions | Non U.S. Plans | Level 2 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 171 | 186 | |
Pensions | Non U.S. Plans | Level 2 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16 | 13 | |
Pensions | Non U.S. Plans | Level 2 | Other investment types - Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Other investment types - Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 113 | 108 | 95 |
Pensions | Non U.S. Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other investment types - Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other investment types - Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 113 | 108 | $ 95 |
Pensions | Non U.S. Plans | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 874 | 803 | |
Pensions | Non U.S. Plans | Total Fair Value | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 51 | 50 | |
Pensions | Non U.S. Plans | Total Fair Value | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Total Fair Value | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 426 | 356 | |
Pensions | Non U.S. Plans | Total Fair Value | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Total Fair Value | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 97 | 90 | |
Pensions | Non U.S. Plans | Total Fair Value | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 171 | 186 | |
Pensions | Non U.S. Plans | Total Fair Value | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Total Fair Value | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16 | 13 | |
Pensions | Non U.S. Plans | Total Fair Value | Other investment types - Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Total Fair Value | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Total Fair Value | Other investment types - Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Total Fair Value | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Total Fair Value | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 113 | $ 108 |
EMPLOYEE BENEFITS (Details - Ch
EMPLOYEE BENEFITS (Details - Changes in Level 3 fair value measurements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in Level 3 fair value measurements | ||
Purchases | $ 4,053 | $ 5,974 |
Sales | (1,071) | (971) |
Settlements | (7,629) | (6,278) |
Issuances | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 487 | (410) |
Pensions | U.S. Plans | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 3,843 | 4,359 |
Net Realized and Unrealized Gains (Losses) | 584 | 154 |
Fair value of plan assets, end of year | 4,350 | 3,843 |
Pensions | U.S. Plans | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 26 | 37 |
Net Realized and Unrealized Gains (Losses) | (3) | (3) |
Purchases | 18 | 6 |
Sales | (14) | (14) |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 27 | 26 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 1 | (4) |
Pensions | U.S. Plans | Level 3 | Fixed maturity securities: U.S. investment grade | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 2 | 9 |
Net Realized and Unrealized Gains (Losses) | 0 | 1 |
Purchases | 17 | 2 |
Sales | (7) | (10) |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 12 | 2 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 2 | 0 |
Pensions | U.S. Plans | Level 3 | Direct private equity | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 24 | 28 |
Net Realized and Unrealized Gains (Losses) | (3) | (4) |
Purchases | 1 | 4 |
Sales | (7) | (4) |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 15 | 24 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | (1) | (4) |
Pensions | U.S. Plans | Level 3 | Hedge funds | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Pensions | U.S. Plans | Level 3 | Mortgage-backed, asset-backed and collateralized | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Pensions | U.S. Plans | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Pensions | Non U.S. Plans | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 803 | 773 |
Net Realized and Unrealized Gains (Losses) | 67 | 19 |
Fair value of plan assets, end of year | 875 | 803 |
Pensions | Non U.S. Plans | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 108 | 95 |
Net Realized and Unrealized Gains (Losses) | 4 | 12 |
Purchases | 1 | 1 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 2 |
Transfers Out | 0 | (2) |
Fair value of plan assets, end of year | 113 | 108 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
Pensions | Non U.S. Plans | Level 3 | Direct private equity | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Pensions | Non U.S. Plans | Level 3 | Hedge funds | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Pensions | Non U.S. Plans | Level 3 | Mortgage-backed, asset-backed and collateralized | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Pensions | Non U.S. Plans | Level 3 | Other fixed maturity securities | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | 0 |
Net Realized and Unrealized Gains (Losses) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
Pensions | Non U.S. Plans | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 108 | 95 |
Net Realized and Unrealized Gains (Losses) | 4 | 12 |
Purchases | 1 | 1 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 2 |
Transfers Out | 0 | (2) |
Fair value of plan assets, end of year | 113 | 108 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | $ 0 | $ 0 |
EMPLOYEE BENEFITS (Details - Ex
EMPLOYEE BENEFITS (Details - Expected Cash Flows) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | $ 209 | $ 236 | $ 166 | |
Expected future benefit payments, net of participants' contributions | ||||
Pre tax expenses associated with contribution plans | $ 209 | 236 | 166 | |
DEFINED CONTRIBUTION PLANS | ||||
Percentage of employer's contribution on employee's matching contribution | 100.00% | |||
Change in percentage of employer's contribution on employee's matching contribution | 6.00% | |||
Company's maximum contribution as percentage of employee's annual salary | 3.00% | |||
Defined Contribution Plan Pre Tax Expense | $ 209 | 236 | $ 166 | |
Pensions | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | $ 64 | 329 | 24 | |
Expected future benefit payments, net of participants' contributions | ||||
2,018 | 291 | |||
2,019 | 287 | |||
2,020 | 297 | |||
2,021 | 294 | |||
2,022 | 291 | |||
2023-2027 | 1,407 | |||
Pre tax expenses associated with contribution plans | 64 | 329 | 24 | |
Pensions | Non U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 64 | 60 | 71 | |
Expected future benefit payments, net of participants' contributions | ||||
2,018 | 36 | |||
2,019 | 40 | |||
2,020 | 42 | |||
2,021 | 43 | |||
2,022 | 41 | |||
2023-2027 | 235 | |||
Pre tax expenses associated with contribution plans | $ 64 | 60 | 71 | |
Postretirement Plans | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 13 | 14 | ||
Expected future benefit payments, net of participants' contributions | ||||
2,018 | 13 | |||
2,019 | 13 | |||
2,020 | 13 | |||
2,021 | 13 | |||
2,022 | 13 | |||
2023-2027 | 60 | |||
Pre tax expenses associated with contribution plans | 13 | 14 | ||
Postretirement Plans | Non U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 1 | 1 | ||
Expected future benefit payments, net of participants' contributions | ||||
2,018 | 1 | |||
2,019 | 1 | |||
2,020 | 1 | |||
2,021 | 2 | |||
2,022 | 2 | |||
2023-2027 | 11 | |||
Pre tax expenses associated with contribution plans | $ 1 | $ 1 |
OWNERSHIP (Details)
OWNERSHIP (Details) | Dec. 31, 2017shares |
The Vanguard Group | |
Beneficial Ownership [Line Items] | |
Ownership interest (as a percent) | 6.80% |
Common stock deemed to be beneficially owned (in shares) | 61,323,039 |
Blackrock, Inc | |
Beneficial Ownership [Line Items] | |
Ownership interest (as a percent) | 7.20% |
Common stock deemed to be beneficially owned (in shares) | 64,406,363 |
Capital Research Global Investors | |
Beneficial Ownership [Line Items] | |
Ownership interest (as a percent) | 6.40% |
Common stock deemed to be beneficially owned (in shares) | 57,556,990 |
INCOME TAXES (Details - U.S. TA
INCOME TAXES (Details - U.S. TAX REFORM OVERVIEW) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | |||||
U.S. federal income tax at statutory rate (as a percent) | 21.00% | 35.00% | 35.00% | 35.00% | |
Impact of Tax Act | $ 6,687 | $ 6,687 | $ 0 | $ 0 | |
Tax charge attributable to the reduction in the U.S. corporate income tax | 6,700 | ||||
Tax benefit related to the deemed repatriation tax | 38 | ||||
New deferred tax liabilities | 4,464 | 4,464 | $ 6,634 | ||
General Insurance Companies | |||||
Income Tax [Line Items] | |||||
New deferred tax liabilities | $ 1,900 | $ 1,900 | |||
Long-tail lines of business | |||||
Income Tax [Line Items] | |||||
Tax Act Discount Period Extension, Minimum | 10 years | ||||
Tax Act Discount Period Extension, Maximum | 24 years |
INCOME TAXES (Details - EFFECTI
INCOME TAXES (Details - EFFECTIVE TAX RATE) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income (loss) from continuing operations before income tax expense (benefit) | |||||||||||||
U.S. | $ 1,940 | $ 1,041 | $ 1,950 | ||||||||||
Foreign | (474) | (1,115) | 1,331 | ||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | $ 875 | $ (2,803) | $ 1,667 | $ 1,727 | $ (3,455) | $ 737 | $ 2,858 | $ (214) | 1,466 | (74) | 3,281 | ||
Foreign: | |||||||||||||
Current | 209 | 436 | 391 | ||||||||||
Deferred | 25 | (121) | (95) | ||||||||||
U.S.: | |||||||||||||
Current | 427 | 140 | 429 | ||||||||||
Deferred | 6,865 | (270) | 334 | ||||||||||
Income tax expense (benefit) | 7,526 | 185 | 1,059 | ||||||||||
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, pre-tax income (loss) | |||||||||||||
Consolidated total amounts | 1,476 | (159) | 3,281 | ||||||||||
Amounts attributable to discontinued operations | 10 | (85) | 0 | ||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 875 | (2,803) | 1,667 | 1,727 | (3,455) | 737 | 2,858 | (214) | 1,466 | (74) | 3,281 | ||
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, tax expense/benefit | |||||||||||||
U.S. federal income tax at statutory rate | 517 | (56) | 1,148 | ||||||||||
Consolidated total amounts | 7,532 | 190 | 1,059 | ||||||||||
Amounts attributable to discontinued operations | 6 | 5 | 0 | ||||||||||
Income tax expense (benefit) | 7,526 | 185 | 1,059 | ||||||||||
Adjustments: | |||||||||||||
Tax exempt interest | (111) | (178) | (195) | ||||||||||
Uncertain tax positions | 660 | 268 | 195 | ||||||||||
Reclassifications from accumulated other comprehensive income | (184) | (132) | (127) | ||||||||||
Partial completion of Internal Revenue Service examination | 116 | 109 | |||||||||||
Tax exempt income | 201 | 253 | 195 | ||||||||||
Cross Border Financing Transactions | 660 | 216 | 324 | ||||||||||
Dispositions of Subsidiaries | 17 | 118 | 0 | ||||||||||
Tax Attribute Restoration | 0 | (164) | 0 | ||||||||||
Non-controlling Interest | (7) | (81) | 0 | ||||||||||
Non-deductible transfer pricing charges | 35 | 102 | 97 | ||||||||||
Dividends received deduction | (90) | (75) | (72) | ||||||||||
Effect of foreign operations | 69 | 234 | (58) | ||||||||||
Share-based compensation payments excess tax deduction | (40) | 0 | 0 | ||||||||||
State income taxes | (9) | 23 | 34 | ||||||||||
Impact of Tax Act | 6,687 | 6,687 | 0 | 0 | |||||||||
Other | (58) | 13 | (73) | ||||||||||
Effect of discontinued operations | 3 | 35 | 0 | ||||||||||
Valuation allowance | |||||||||||||
Continuing operations | 43 | $ 83 | $ 110 | ||||||||||
Increase (Decrease) in certain other valuation allowances associated with foreign jurisdictions | 43 | ||||||||||||
Increase (Decrease) in certain other valuation allowances associated with certain state jurisdictions. | (26) | (634) | |||||||||||
Valuation allowance related to unrealized losses that are no more-likely-than-not to be realized | $ 43 | ||||||||||||
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) | 21.00% | 35.00% | 35.00% | 35.00% | |||||||||
Consolidated total amounts (as a percent) | 510.30% | (119.50%) | 32.30% | ||||||||||
Amounts attributable to discontinued operations (as a percent) | 60.00% | (5.90%) | 0.00% | ||||||||||
Adjustments: | |||||||||||||
Amounts attributable to continuing operations (as a percent) | 513.40% | (250.00%) | 32.30% | ||||||||||
Tax exempt interest (as a percent) | (7.50%) | 111.90% | (5.90%) | ||||||||||
Uncertain Tax Positions (as a percent) | 44.70% | (168.60%) | 5.90% | ||||||||||
Reclassification from accumulated other comprehensive income (as a percent) | (12.50%) | 83.00% | (3.90%) | ||||||||||
Dispositions of Subsidiaries (as a percent) | 1.20% | (74.20%) | |||||||||||
Tax Attribute Restoration (as a percent) | 0.00% | 103.10% | 0.00% | ||||||||||
Non-controlling Interest (as a percent) | (0.50%) | 50.90% | |||||||||||
Non-deductible transfer pricing charges (as a percent) | 2.40% | (64.20%) | 3.00% | ||||||||||
Dividends received deduction (as a percent) | (6.10%) | 47.20% | (2.20%) | ||||||||||
Effect of foreign operations (as a percent) | 4.70% | (147.20%) | (1.80%) | ||||||||||
Share-based compensation payments excess tax deduction (as a percent) | (2.70%) | 0.00% | 0.00% | ||||||||||
State income taxes (as a percent) | (0.60%) | (14.50%) | 1.00% | ||||||||||
Impact of Tax Act (as a percent) | 453.00% | 0.00% | 0.00% | ||||||||||
Other (as a percent) | (3.90%) | (8.20%) | (2.20%) | ||||||||||
Effect of discontinued operations (as a percent) | 0.20% | (22.00%) | 0.00% | ||||||||||
Valuation allowance (as a percent): | |||||||||||||
Continuing operations (as a percent) | 2.90% | (52.20%) | 3.40% | ||||||||||
Undistributed Earnings of Foreign Subsidiaries | 0 | $ 0 | |||||||||||
Accounting for Uncertainty in Income Taxes | |||||||||||||
Unrecognized tax benefits, excluding interest and penalties | 4,707 | 4,530 | 4,707 | $ 4,530 | $ 4,331 | $ 4,395 | |||||||
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 28 | 66 | 28 | 66 | 115 | ||||||||
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 4,700 | 4,400 | 4,700 | 4,400 | 4,200 | ||||||||
Unrecognized tax benefits, interest and penalties accrued | 2,000 | 1,200 | 2,000 | 1,200 | 1,200 | ||||||||
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties | $ 776 | 26 | 156 | ||||||||||
Deferred tax asset valuation allowance recognized | $ 40 | $ 24 | $ (8) | $ (13) | $ 87 | $ (2) | $ 35 | $ (37) | |||||
US Life companies capital loss carryforward | |||||||||||||
Valuation allowance | |||||||||||||
Continuing operations | $ 0 | ||||||||||||
Other valuation allowance associated with foreign jurisdictions | Residential mortgages dispute resolution | |||||||||||||
Adjustments: | |||||||||||||
Other | $ 0 |
INCOME TAXES (Details - Compone
INCOME TAXES (Details - Components of the net deferred tax assets (liabilities) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Life policy reserves | $ 1,996 | $ 3,040 |
Losses and tax credit carryforwards | 11,931 | 16,448 |
Basis differences on investments | 2,133 | 4,985 |
Accruals not currently deductible, and other | 532 | 1,128 |
Deferred Tax Assets, Investments in foreign subsidiaries | 159 | 103 |
Loss reserve discount | 526 | 1,151 |
Loan loss and other reserves | 34 | 39 |
Unearned premium reserve reduction | 566 | 924 |
Fixed assets and intangible assets | 442 | 478 |
Other | 731 | 710 |
Employee benefits | 601 | 1,171 |
Total deferred tax assets | 19,651 | 30,177 |
Deferred tax liabilities: | ||
Deferred policy acquisition costs | (2,313) | (3,790) |
Unrealized gains related to available for sale debt securities | (2,151) | (2,844) |
Total deferred tax liabilities | (4,464) | (6,634) |
Net deferred tax assets before valuation allowance | 15,187 | 23,543 |
Valuation allowance | (1,374) | (2,831) |
Net deferred tax assets (liabilities) | $ 13,813 | $ 20,712 |
INCOME TAXES (Details - U.S. co
INCOME TAXES (Details - U.S. consolidated income tax group tax losses and credits carryforwards) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, gross | |
Net operating loss carryforwards | $ 35,592 |
Capital Loss Carryforwards | 305 |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 7,474 |
Capital Loss Carryforwards | 64 |
Foreign tax credit carryforwards | 4,481 |
Other carryforwards | 1,154 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis | 13,173 |
Unrecognized tax benefit | (2,543) |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 10,630 |
Other carryforwards include general business credits | $ 118 |
Other Operating Loss Carryforward | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | Various |
Capital Loss Carryforward | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,022 |
Maximum | Operating loss carryforward | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,037 |
Maximum | Foreign tax credit carryforwards | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,022 |
Minimum | Operating loss carryforward | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,028 |
Minimum | Foreign tax credit carryforwards | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,018 |
INCOME TAXES (Details - Assessm
INCOME TAXES (Details - Assessment of Deferred Tax Asset (liabilities) Valuation Allowance) - USD ($) $ in Millions | Feb. 26, 2009 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Change in valuation allowance | $ 40 | $ 24 | $ (8) | $ (13) | $ 87 | $ (2) | $ 35 | $ (37) | ||||
Continuing operations | $ 43 | $ 83 | $ 110 | |||||||||
Deferred tax asset valuation allowance related to tax attributes that expired | 0 | |||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Valuation allowance | (1,374) | (2,831) | (1,374) | (2,831) | ||||||||
Net deferred tax assets (liabilities) | 13,813 | 20,712 | 13,813 | 20,712 | ||||||||
Net foreign, state & local deferred tax assets | 15,187 | 23,543 | 15,187 | 23,543 | ||||||||
Net U.S, foreign, state & local deferred tax assets | 14,033 | 21,332 | 14,033 | 21,332 | ||||||||
Net foreign, state & local deferred tax liabilities | (4,464) | (6,634) | (4,464) | (6,634) | ||||||||
Non-Life Companies [Member] | ||||||||||||
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Deferred tax asset valuation allowance allocated to other comprehensive income | 260 | |||||||||||
Life Insurance Companies [Member] | ||||||||||||
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Deferred tax asset valuation allowance allocated to other comprehensive income | 468 | |||||||||||
Deferred tax asset - U.S. consolidated income tax group | ||||||||||||
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Change in valuation allowance | 13,400 | 20,900 | ||||||||||
Continuing operations | 10,600 | |||||||||||
Deferred tax asset valuation allowance recognized related to certain state, local and foreign jurisdictions | 0 | |||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Net U.S. consolidated return group deferred tax assets | 15,603 | 24,134 | 15,603 | 24,134 | ||||||||
Net deferred tax assets (liabilities) in Accumulated other comprehensive income | (2,070) | (2,384) | (2,070) | (2,384) | ||||||||
Valuation allowance | (86) | (874) | (86) | (874) | ||||||||
Net deferred tax assets (liabilities) | 13,447 | 20,876 | 13,447 | 20,876 | ||||||||
Refund of taxes, interest and penalties sought | $ 306 | |||||||||||
Deferred tax liability - foreign, state and local | ||||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Valuation allowance | (1,288) | (1,957) | (1,288) | (1,957) | ||||||||
Net deferred tax assets (liabilities) | 586 | 456 | 586 | 456 | ||||||||
Net foreign, state & local deferred tax assets | 1,874 | 2,413 | 1,874 | 2,413 | ||||||||
Net foreign, state & local deferred tax liabilities | (220) | (620) | (220) | (620) | ||||||||
Net foreign, state & local deferred tax liabilities | $ 366 | $ (164) | $ 366 | $ (164) |
INCOME TAXES (Details - Account
INCOME TAXES (Details - Accounting For Uncertainty in Income Taxes) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rollforward of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | |||
Gross unrecognized tax benefits, beginning of year | $ 4,530 | $ 4,331 | $ 4,395 |
Increases in tax positions for prior years | 210 | 235 | 162 |
Decreases in tax positions for prior years | (33) | (39) | (209) |
Increases in tax positions for current year | 0 | 3 | 0 |
Lapse in statute of limitations | 0 | 0 | (4) |
Settlements | 0 | 0 | (13) |
Activity of discontinued operations | 0 | 0 | 0 |
Gross unrecognized tax benefits, end of year | 4,707 | 4,530 | 4,331 |
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 28 | 66 | 115 |
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 4,700 | 4,400 | 4,200 |
Unrecognized tax benefits, interest and penalties accrued | 2,000 | 1,200 | 1,200 |
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties | 776 | $ 26 | $ 156 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible in the next twelve months | $ 3,900 |
INCOME TAXES (Details - Tax Yea
INCOME TAXES (Details - Tax Years that remain open in Income Taxes) | 12 Months Ended |
Dec. 31, 2017 | |
UNITED STATES | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,000 |
UNITED STATES | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,016 |
Australia [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,013 |
Australia [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,016 |
FRANCE [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,015 |
FRANCE [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,016 |
JAPAN [Member} | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,011 |
JAPAN [Member} | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,016 |
KOREA [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,012 |
KOREA [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,016 |
SINGAPORE [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,012 |
SINGAPORE [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,016 |
United Kingdom | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,015 |
United Kingdom | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,016 |
QUARTERLY FINANCIAL INFORMAT159
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details - Consolidated Statements of Income (Loss)) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||
Total revenues | $ 12,635 | $ 11,751 | $ 12,502 | $ 12,632 | $ 13,010 | $ 12,854 | $ 14,724 | $ 11,779 | $ 49,520 | $ 52,367 | $ 58,327 | |
Income (loss) from continuing operations before income tax expense (benefit) | 875 | (2,803) | 1,667 | 1,727 | (3,455) | 737 | 2,858 | (214) | 1,466 | (74) | 3,281 | |
Income (loss) from discontinued operations, net of income tax expense | (3) | (1) | 8 | 0 | (36) | 3 | (10) | (47) | 4 | (90) | 0 | |
Net income (loss) | (6,672) | (1,713) | 1,118 | 1,211 | (2,506) | 436 | 1,924 | (203) | (6,056) | (349) | 2,222 | |
Net income (loss) from continuing operations attributable to noncontrolling interests | (12) | 26 | (12) | 26 | 535 | (26) | 11 | (20) | 28 | 500 | 26 | |
Net income (loss) attributable to AIG | $ (6,660) | $ (1,739) | $ 1,130 | $ 1,185 | $ (3,041) | $ 462 | $ 1,913 | $ (183) | $ (6,084) | $ (849) | $ 2,196 | |
Basic: | ||||||||||||
Income (loss) from continuing operations | $ (7.33) | $ (1.91) | $ 1.21 | $ 1.21 | $ (2.93) | $ 0.43 | $ 1.73 | $ (0.12) | $ (6.54) | $ (0.7) | $ 1.69 | |
Income (loss) from discontinued operations | 0 | 0 | 0.01 | 0 | (0.03) | 0 | (0.01) | (0.04) | 0 | (0.08) | 0 | |
Diluted: | ||||||||||||
Income (loss) from continuing operations | (7.33) | (1.91) | 1.18 | 1.18 | (2.93) | 0.42 | 1.69 | (0.12) | (6.54) | (0.7) | 1.65 | |
Income (loss) from discontinued operations | $ 0 | $ 0 | $ 0.01 | $ 0 | $ (0.03) | $ 0 | $ (0.01) | $ (0.04) | $ 0 | $ (0.08) | $ 0 | |
Weighted average shares outstanding: | ||||||||||||
Basic | 908,115,499 | 908,667,044 | 925,751,084 | 980,777,243 | 1,023,886,592 | 1,071,295,892 | 1,113,587,927 | 1,156,548,459 | 930,561,286 | 1,091,085,131 | 1,299,825,350 | |
Diluted | 908,115,499 | 908,667,044 | 948,248,771 | 1,005,315,030 | 1,023,886,592 | 1,102,400,770 | 1,140,045,973 | 1,156,548,459 | 930,561,286 | 1,091,085,131 | 1,334,464,883 | |
Noteworthy quarterly items income (expense): | ||||||||||||
Other-than-temporary impairments | $ 37 | $ 88 | $ 67 | $ 68 | $ 145 | $ 102 | $ 108 | $ 204 | $ 227 | $ 487 | $ 591 | |
Income (loss) from divested businesses | (241) | 13 | 60 | 100 | (194) | (128) | (225) | 2 | 68 | 545 | (11) | |
Federal and foreign valuation allowance for deferred tax assets | 40 | 24 | (8) | (13) | 87 | (2) | 35 | (37) | ||||
Gain (Loss) on extinguishment of debt | (1) | 1 | (4) | (1) | (2) | (14) | 7 | 83 | 5 | (74) | (756) | |
Total prior year (favourable) unfavorable development | 212 | 901 | 391 | 61 | 5,574 | 273 | 7 | (66) | ||||
Restructuring and other costs | 154 | $ 31 | $ 47 | $ 181 | 206 | 210 | 90 | 188 | ||||
Impact of Tax Act | $ 6,687 | $ 6,687 | 0 | 0 | ||||||||
Adjustment | ||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (12) | |||||||||||
Net income (loss) attributable to AIG | (154) | |||||||||||
Adjusted Pre-Tax Income (Loss) | $ (1) | |||||||||||
Adjustments 2016 [Member] | ||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (57) | |||||||||||
Net income (loss) attributable to AIG | $ (65) | $ 66 | $ 19 | (174) | $ (67) | $ (12) | ||||||
Adjusted Pre-Tax Income (Loss) | $ (6) |
INFORMATION PROVIDED IN CONN160
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Short-term investments | $ 10,386 | $ 12,302 | ||
Other investments | 311,906 | 315,873 | ||
Total investments | 322,292 | 328,175 | ||
Cash | 2,362 | 1,868 | $ 1,629 | $ 1,758 |
Loans to subsidiaries | 0 | |||
Investment in consolidated subsidiaries | 0 | |||
Other assets, including deferred income taxes | 173,647 | 161,022 | ||
Assets held for sale | 0 | 7,199 | ||
Total assets | 498,301 | 498,264 | ||
Liabilities: | ||||
Insurance liabilities | 282,105 | 275,120 | ||
Long-term Debt | 31,640 | 30,912 | ||
Other liabilities, including intercompany balances | 118,848 | 109,268 | ||
Loans from subsidiaries | 0 | |||
Liabilities held for sale | 0 | 6,106 | ||
Total liabilities | 432,593 | 421,406 | ||
Total AIG shareholders' equity | 65,171 | 76,300 | ||
Non-redeemable noncontrolling interests | 537 | 558 | ||
Total equity | 65,708 | 76,858 | 90,210 | 107,272 |
Total liabilities and equity | 498,301 | 498,264 | ||
AIG (As Guarantor) | ||||
Assets: | ||||
Short-term investments | 2,541 | 4,424 | ||
Other investments | 6,004 | 7,154 | ||
Total investments | 8,545 | 11,578 | ||
Cash | 3 | 2 | 34 | 26 |
Loans to subsidiaries | 35,004 | 34,692 | ||
Investment in consolidated subsidiaries | 40,135 | 42,582 | ||
Other assets, including deferred income taxes | 16,016 | 24,099 | ||
Assets held for sale | 0 | |||
Total assets | 99,703 | 112,953 | ||
Liabilities: | ||||
Insurance liabilities | 0 | |||
Long-term Debt | 21,557 | 21,405 | ||
Other liabilities, including intercompany balances | 12,458 | 14,671 | ||
Loans from subsidiaries | 517 | 577 | ||
Liabilities held for sale | 0 | |||
Total liabilities | 34,532 | 36,653 | ||
Total AIG shareholders' equity | 65,171 | 76,300 | ||
Non-redeemable noncontrolling interests | 0 | |||
Total equity | 65,171 | 76,300 | ||
Total liabilities and equity | 99,703 | 112,953 | ||
AIGLH | ||||
Assets: | ||||
Short-term investments | 0 | |||
Other investments | 0 | |||
Total investments | 0 | |||
Cash | 20 | 34 | 116 | 91 |
Loans to subsidiaries | 0 | |||
Investment in consolidated subsidiaries | 30,359 | 27,309 | ||
Other assets, including deferred income taxes | 170 | 239 | ||
Assets held for sale | 0 | |||
Total assets | 30,549 | 27,582 | ||
Liabilities: | ||||
Insurance liabilities | 0 | |||
Long-term Debt | 642 | 642 | ||
Other liabilities, including intercompany balances | 143 | 194 | ||
Loans from subsidiaries | 0 | 0 | ||
Liabilities held for sale | 0 | |||
Total liabilities | 785 | 836 | ||
Total AIG shareholders' equity | 29,764 | 26,746 | ||
Non-redeemable noncontrolling interests | 0 | |||
Total equity | 29,764 | 26,746 | ||
Total liabilities and equity | 30,549 | 27,582 | ||
Other Subsidiaries | ||||
Assets: | ||||
Short-term investments | 11,559 | 13,218 | ||
Other investments | 305,902 | 308,719 | ||
Total investments | 317,461 | 321,937 | ||
Cash | 2,339 | 1,832 | 1,479 | 1,641 |
Loans to subsidiaries | 517 | 576 | ||
Investment in consolidated subsidiaries | 0 | |||
Other assets, including deferred income taxes | 159,594 | 140,743 | ||
Assets held for sale | 0 | |||
Total assets | 479,911 | 472,287 | ||
Liabilities: | ||||
Insurance liabilities | 282,105 | 275,120 | ||
Long-term Debt | 9,441 | 8,865 | ||
Other liabilities, including intercompany balances | 112,275 | 103,975 | ||
Loans from subsidiaries | 35,004 | 34,691 | ||
Liabilities held for sale | 0 | |||
Total liabilities | 438,825 | 428,757 | ||
Total AIG shareholders' equity | 40,549 | 42,972 | ||
Non-redeemable noncontrolling interests | 537 | 558 | ||
Total equity | 41,086 | 43,530 | ||
Total liabilities and equity | 479,911 | 472,287 | ||
Reclassification and Eliminations | ||||
Assets: | ||||
Short-term investments | (3,714) | (5,340) | ||
Other investments | 0 | |||
Total investments | (3,714) | (5,340) | ||
Cash | 0 | 0 | $ 0 | $ 0 |
Loans to subsidiaries | (35,521) | (35,268) | ||
Investment in consolidated subsidiaries | (70,494) | (69,891) | ||
Other assets, including deferred income taxes | (2,133) | (4,059) | ||
Assets held for sale | 0 | |||
Total assets | (111,862) | (114,558) | ||
Liabilities: | ||||
Insurance liabilities | 0 | 0 | ||
Long-term Debt | 0 | |||
Other liabilities, including intercompany balances | (6,028) | (9,572) | ||
Loans from subsidiaries | (35,521) | (35,268) | ||
Liabilities held for sale | 0 | |||
Total liabilities | (41,549) | (44,840) | ||
Total AIG shareholders' equity | (70,313) | (69,718) | ||
Non-redeemable noncontrolling interests | 0 | |||
Total equity | (70,313) | (69,718) | ||
Total liabilities and equity | $ (111,862) | $ (114,558) |
INFORMATION PROVIDED IN CONN161
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | $ 0 | $ 0 | $ 0 | ||||||||
Other income | 49,520 | 52,367 | 58,327 | ||||||||
Total revenues | $ 12,635 | $ 11,751 | $ 12,502 | $ 12,632 | $ 13,010 | $ 12,854 | $ 14,724 | $ 11,779 | 49,520 | 52,367 | 58,327 |
Expenses: | |||||||||||
Interest expense | 1,168 | 1,260 | 1,281 | ||||||||
(Gains) losses on extinguishment of debt | 1 | (1) | 4 | 1 | 2 | 14 | (7) | (83) | (5) | 74 | 756 |
Other expenses | 46,891 | 51,107 | 53,009 | ||||||||
Total benefits, losses and expenses | 48,054 | 52,441 | 55,046 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 1,466 | (74) | 3,281 | ||||||||
Income tax expense (benefit) | 7,526 | 185 | 1,059 | ||||||||
Income (loss) from continuing operations | (6,060) | (259) | 2,222 | ||||||||
Income (loss) from discontinued operations | (3) | (1) | 8 | 0 | (36) | 3 | (10) | (47) | 4 | (90) | 0 |
Net income (loss) | (6,672) | (1,713) | 1,118 | 1,211 | (2,506) | 436 | 1,924 | (203) | (6,056) | (349) | 2,222 |
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | (12) | 26 | (12) | 26 | 535 | (26) | 11 | (20) | 28 | 500 | 26 |
Net income (loss) attributable to AIG | $ (6,660) | $ (1,739) | $ 1,130 | $ 1,185 | $ (3,041) | $ 462 | $ 1,913 | $ (183) | (6,084) | (849) | 2,196 |
AIG (As Guarantor) | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | (149) | (1,269) | 3,954 | ||||||||
Other income | 891 | 516 | 88 | ||||||||
Total revenues | 742 | (753) | 4,042 | ||||||||
Expenses: | |||||||||||
Interest expense | 949 | 988 | 1,049 | ||||||||
(Gains) losses on extinguishment of debt | 2 | 77 | 703 | ||||||||
Other expenses | 952 | 295 | 1,178 | ||||||||
Total benefits, losses and expenses | 1,903 | 1,360 | 2,930 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (1,161) | (2,113) | 1,112 | ||||||||
Income tax expense (benefit) | 4,922 | (1,301) | (1,086) | ||||||||
Income (loss) from continuing operations | (6,083) | (812) | 2,198 | ||||||||
Income (loss) from discontinued operations | (1) | (37) | (2) | ||||||||
Net income (loss) | (6,084) | (849) | 2,196 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | (6,084) | (849) | 2,196 | ||||||||
AIGLH | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 1,978 | (197) | 1,936 | ||||||||
Other income | 0 | 5 | 0 | ||||||||
Total revenues | 1,978 | (192) | 1,936 | ||||||||
Expenses: | |||||||||||
Interest expense | 50 | 51 | 58 | ||||||||
(Gains) losses on extinguishment of debt | 0 | 0 | 0 | ||||||||
Other expenses | 2 | 16 | 44 | ||||||||
Total benefits, losses and expenses | 52 | 67 | 102 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 1,926 | (259) | 1,834 | ||||||||
Income tax expense (benefit) | (3) | (21) | (73) | ||||||||
Income (loss) from continuing operations | 1,929 | (238) | 1,907 | ||||||||
Income (loss) from discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | 1,929 | (238) | 1,907 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | 1,929 | (238) | 1,907 | ||||||||
Other Subsidiaries | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Other income | 48,802 | 52,875 | 58,953 | ||||||||
Total revenues | 48,802 | 52,875 | 58,953 | ||||||||
Expenses: | |||||||||||
Interest expense | 176 | 227 | 302 | ||||||||
(Gains) losses on extinguishment of debt | (7) | (3) | 46 | ||||||||
Other expenses | 46,116 | 51,819 | 52,374 | ||||||||
Total benefits, losses and expenses | 46,285 | 52,043 | 52,722 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 2,517 | 832 | 6,231 | ||||||||
Income tax expense (benefit) | 2,607 | 1,507 | 2,218 | ||||||||
Income (loss) from continuing operations | (90) | (675) | 4,013 | ||||||||
Income (loss) from discontinued operations | 5 | (53) | 2 | ||||||||
Net income (loss) | (85) | (728) | 4,015 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 28 | 500 | 26 | ||||||||
Net income (loss) attributable to AIG | (113) | (1,228) | 3,989 | ||||||||
Reclassification and Eliminations | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | (1,829) | 1,466 | (5,890) | ||||||||
Other income | (173) | (1,029) | (714) | ||||||||
Total revenues | (2,002) | 437 | (6,604) | ||||||||
Expenses: | |||||||||||
Interest expense | (7) | (6) | (128) | ||||||||
(Gains) losses on extinguishment of debt | 0 | 0 | 7 | ||||||||
Other expenses | (179) | (1,023) | (587) | ||||||||
Total benefits, losses and expenses | (186) | (1,029) | (708) | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (1,816) | 1,466 | (5,896) | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Income (loss) from continuing operations | (1,816) | 1,466 | (5,896) | ||||||||
Income (loss) from discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | (1,816) | 1,466 | (5,896) | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | $ (1,816) | $ 1,466 | $ (5,896) |
INFORMATION PROVIDED IN CONN162
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | $ (6,672) | $ (1,713) | $ 1,118 | $ 1,211 | $ (2,506) | $ 436 | $ 1,924 | $ (203) | $ (6,056) | $ (349) | $ 2,222 |
Other Comprehensive Income (Loss) | 2,235 | 693 | (8,086) | ||||||||
Comprehensive income (loss) | (3,821) | 344 | (5,864) | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 28 | 500 | 20 | ||||||||
Comprehensive income (loss) attributable to AIG | (3,849) | (156) | (5,884) | ||||||||
AIG (As Guarantor) | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | (6,084) | (849) | 2,196 | ||||||||
Other Comprehensive Income (Loss) | 2,235 | 693 | (8,080) | ||||||||
Comprehensive income (loss) | (3,849) | (156) | (5,884) | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | (3,849) | (156) | (5,884) | ||||||||
AIGLH | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | 1,929 | (238) | 1,907 | ||||||||
Other Comprehensive Income (Loss) | 7,851 | 4,080 | 2,320 | ||||||||
Comprehensive income (loss) | 9,780 | 3,842 | 4,227 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | 9,780 | 3,842 | 4,227 | ||||||||
Other Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | (85) | (728) | 4,015 | ||||||||
Other Comprehensive Income (Loss) | 17,857 | 52,153 | 54,757 | ||||||||
Comprehensive income (loss) | 17,772 | 51,425 | 58,772 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 28 | 500 | 20 | ||||||||
Comprehensive income (loss) attributable to AIG | 17,744 | 50,925 | 58,752 | ||||||||
Reclassification and Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | (1,816) | 1,466 | (5,896) | ||||||||
Other Comprehensive Income (Loss) | (25,708) | (56,233) | (57,083) | ||||||||
Comprehensive income (loss) | (27,524) | (54,767) | (62,979) | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | $ (27,524) | $ (54,767) | $ (62,979) |
INFORMATION PROVIDED IN CONN163
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ (8,585) | $ 2,383 | $ 2,877 |
Cash flows from investing activities: | |||
Sales of investments | 77,291 | 75,644 | 72,616 |
Sale of divested businesses, net | 792 | 2,809 | 0 |
Purchase of investments | (63,246) | (69,985) | (65,265) |
Loans to subsidiaries - net | 0 | 0 | |
Contributions from (to) subsidiaries - net | 0 | 0 | |
Net change in restricted cash | (121) | 385 | 1,457 |
Net change in short-term investments | 2,098 | (3,089) | 1,163 |
Other, net | (2,143) | (1,020) | (1,509) |
Net cash provided by (used in) investing activities | 14,671 | 4,744 | 8,462 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 3,356 | 5,954 | 6,867 |
Repayments of long-term debt | (3,698) | (4,082) | (9,805) |
Purchase of Common Stock | (6,275) | (11,460) | (10,691) |
Cash dividends paid | (1,172) | (1,372) | (1,028) |
Other, net | 2,092 | 4,127 | 3,228 |
Net cash provided by (used in) financing activities | (5,697) | (6,833) | (11,429) |
Effect of exchange rate changes on cash | (28) | 52 | (39) |
Net increase (decrease) in cash | 361 | 346 | (129) |
Cash at beginning of year | 1,868 | 1,629 | 1,758 |
Change in cash of businesses held for sale | 133 | (107) | 0 |
Cash at end of Period | 2,362 | 1,868 | 1,629 |
Interest: | |||
Third party | (1,282) | (1,331) | (1,368) |
Intercompany | 0 | 0 | 0 |
Taxes: | |||
Income tax authorities | (544) | (493) | (511) |
Intercompany | 0 | 0 | 0 |
Aer Cap | |||
Non-cash financing and investing activities: | |||
Non-cash consideration received from sale | 0 | 0 | 500 |
United Guaranty Corporation [Member] | |||
Non-cash financing and investing activities: | |||
Non-cash consideration received from sale | 0 | 1,101 | 0 |
AIG (As Guarantor) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 36 | 2,112 | 4,443 |
Cash flows from investing activities: | |||
Sales of investments | 5,821 | 5,769 | 7,767 |
Sale of divested businesses, net | 40 | 2,160 | 0 |
Purchase of investments | (2,465) | (1,002) | (1,881) |
Loans to subsidiaries - net | 199 | 1,525 | (83) |
Contributions from (to) subsidiaries - net | 2,446 | 1,637 | 565 |
Net change in short-term investments | 1,990 | (789) | 2,300 |
Other, net | (183) | (141) | (175) |
Net cash provided by (used in) investing activities | 7,848 | 9,159 | 8,493 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 1,505 | 3,831 | 5,540 |
Repayments of long-term debt | (1,724) | (1,996) | (6,504) |
Purchase of Common Stock | (6,275) | (11,460) | (10,691) |
Intercompany loans - net | (63) | 3 | (201) |
Cash dividends paid | (1,172) | (1,372) | (1,028) |
Other, net | (154) | (309) | (44) |
Net cash provided by (used in) financing activities | (7,883) | (11,303) | (12,928) |
Net increase (decrease) in cash | 1 | (32) | 8 |
Cash at beginning of year | 2 | 34 | 26 |
Cash at end of Period | 3 | 2 | 34 |
Interest: | |||
Third party | (948) | (975) | (1,030) |
Intercompany | 0 | 2 | 0 |
Taxes: | |||
Income tax authorities | (329) | (15) | (11) |
Intercompany | 614 | 479 | 829 |
Non-cash financing and investing activities: | |||
Return of capital | 26 | 0 | 0 |
Dividends received in the form of securities | 735 | 5,234 | 2,326 |
Capital contributions | 259 | 3,245 | 494 |
Fixed maturity securities received in exchange for equity securities | 0 | 440 | 0 |
AIGLH | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 1,413 | 1,707 | 2,314 |
Cash flows from investing activities: | |||
Sales of investments | 0 | 0 | 0 |
Sale of divested businesses, net | 0 | 0 | |
Purchase of investments | 0 | 0 | 0 |
Loans to subsidiaries - net | 0 | 0 | 0 |
Contributions from (to) subsidiaries - net | 0 | 0 | 0 |
Net change in restricted cash | 0 | 0 | 0 |
Net change in short-term investments | 0 | 0 | 0 |
Other, net | (5) | 0 | 0 |
Net cash provided by (used in) investing activities | (5) | 0 | 0 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 0 | (63) | (114) |
Issuance of Common Stock | 0 | ||
Purchase of Common Stock | 0 | 0 | |
Intercompany loans - net | 0 | (3) | 3 |
Cash dividends paid | (1,422) | (1,723) | (2,178) |
Other, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities - continuing operations | (1,789) | (2,289) | |
Net cash provided by (used in) financing activities | (1,422) | (1,789) | (2,289) |
Net increase (decrease) in cash | (14) | (82) | 25 |
Cash at beginning of year | 34 | 116 | 91 |
Cash at end of Period | 20 | 34 | 116 |
Interest: | |||
Third party | (48) | (52) | (59) |
Intercompany | (1) | 0 | 0 |
Taxes: | |||
Intercompany | 0 | 0 | 0 |
Other Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (7,426) | 2,515 | 1,112 |
Cash flows from investing activities: | |||
Sales of investments | 75,228 | 81,560 | 69,726 |
Sale of divested businesses, net | 752 | 0 | |
Purchase of investments | (64,539) | (80,668) | (68,261) |
Loans to subsidiaries - net | 63 | (3) | 367 |
Contributions from (to) subsidiaries - net | 0 | 0 | 0 |
Net change in restricted cash | (121) | 385 | 1,457 |
Net change in short-term investments | 108 | (2,300) | (1,137) |
Other, net | (1,955) | (879) | (1,334) |
Net cash provided by (used in) investing activities | 9,536 | (1,256) | 818 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 1,851 | 2,123 | 1,327 |
Repayments of long-term debt | (1,974) | (2,023) | (3,187) |
Issuance of Common Stock | 0 | ||
Purchase of Common Stock | 0 | 0 | |
Intercompany loans - net | (199) | (1,522) | (86) |
Cash dividends paid | (1,186) | (2,228) | (2,814) |
Other, net | (200) | 2,799 | 2,707 |
Net cash provided by (used in) financing activities | (1,708) | (851) | (2,053) |
Effect of exchange rate changes on cash | (28) | 52 | (39) |
Net increase (decrease) in cash | 374 | 460 | (162) |
Cash at beginning of year | 1,832 | 1,479 | 1,641 |
Change in cash of businesses held for sale | 133 | (107) | |
Cash at end of Period | 2,339 | 1,832 | 1,479 |
Interest: | |||
Third party | (286) | (304) | (279) |
Intercompany | 1 | (2) | 0 |
Taxes: | |||
Income tax authorities | (215) | (478) | (500) |
Intercompany | (614) | (479) | (829) |
Reclassification and Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (2,608) | (3,951) | (4,992) |
Cash flows from investing activities: | |||
Sales of investments | (3,758) | (11,685) | (4,877) |
Sale of divested businesses, net | 0 | 0 | 0 |
Purchase of investments | 3,758 | 11,685 | 4,877 |
Loans to subsidiaries - net | (262) | (1,522) | (284) |
Contributions from (to) subsidiaries - net | (2,446) | (1,637) | (565) |
Net change in restricted cash | 0 | 0 | 0 |
Net change in short-term investments | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (2,708) | (3,159) | (849) |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Issuance of Common Stock | 0 | ||
Purchase of Common Stock | 0 | 0 | 0 |
Intercompany loans - net | 262 | 1,522 | 284 |
Cash dividends paid | 2,608 | 3,951 | 4,992 |
Other, net | 2,446 | 1,637 | 565 |
Net cash provided by (used in) financing activities | 5,316 | 7,110 | 5,841 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash | 0 | 0 | |
Cash at beginning of year | 0 | 0 | 0 |
Cash at end of Period | 0 | 0 | 0 |
Interest: | |||
Third party | 0 | 0 | 0 |
Intercompany | 0 | 0 | 0 |
Taxes: | |||
Income tax authorities | 0 | 0 | 0 |
Intercompany | $ 0 | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Billions | Feb. 08, 2018 | Jan. 21, 2018 | Dec. 22, 2017 | Sep. 29, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 22, 2016 | Sep. 29, 2016 | Jun. 27, 2016 | Mar. 28, 2016 | Dec. 21, 2015 | Sep. 28, 2015 | Jun. 25, 2015 | Mar. 26, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 03, 2017 |
Subsequent Event [Line Items] | ||||||||||||||||||
Dividends declared per common share | $ 1.28 | $ 1.28 | $ 0.81 | |||||||||||||||
Authorized amount of common Stock share repurchase | $ 2.5 | |||||||||||||||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 2.3 | |||||||||||||||||
Date of Shareholders of Record | Dec. 8, 2017 | Sep. 15, 2017 | Jun. 14, 2017 | Mar. 15, 2017 | Dec. 8, 2016 | Sep. 15, 2016 | Jun. 13, 2016 | Mar. 14, 2016 | Dec. 7, 2015 | Sep. 14, 2015 | Jun. 11, 2015 | Mar. 12, 2015 | ||||||
Subsequent event | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Dividends declared per common share | $ 0.32 | |||||||||||||||||
Date Dividends Declared | Feb. 8, 2018 | |||||||||||||||||
Date Dividends To Be Paid | Mar. 29, 2018 | |||||||||||||||||
Date of Shareholders of Record | Mar. 15, 2018 | |||||||||||||||||
Subsequent event | Validus Holdings, Ltd | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Payments to Acquire Business | $ 5.6 | |||||||||||||||||
Transaction is expected to close | mid2018 | |||||||||||||||||
Subsequent event | DSA Reinsurance Company, Ltd. | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
AIG Ownership Percent | 100.00% | |||||||||||||||||
Subsequent event | DSA Reinsurance Company, Ltd. | Life and Retirement Companies | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Transfer of reserves from various segment run off lines | $ 32 | |||||||||||||||||
Subsequent event | DSA Reinsurance Company, Ltd. | General Insurance Companies | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Transfer of reserves from various segment run off lines | 5 | |||||||||||||||||
Subsequent event | DSA Reinsurance Company, Ltd. | Legacy reporting segment | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Percent of Insurance reserves in the Legacy reporting segment transferred | 80.00% | |||||||||||||||||
Subsequent event | DSA Reinsurance Company, Ltd. | AIG Asset Management | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Invested Assets the Licensed reinsurer will have | $ 40 |
Schedule I Summary of Invest165
Schedule I Summary of Investments - Other than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2017USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 309,140 |
Fair Value | 323,959 |
Amount at which shown in the Balance Sheet | 323,214 |
Fixed maturity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 238,233 |
Fair Value | 251,764 |
Amount at which shown in the Balance Sheet | 251,764 |
U.S. government and government sponsored entities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 5,334 |
Fair Value | 5,458 |
Amount at which shown in the Balance Sheet | 5,458 |
Obligations of states, municipalities and political subdivisions | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 17,377 |
Fair Value | 18,644 |
Amount at which shown in the Balance Sheet | 18,644 |
Non-U.S. government | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 15,116 |
Fair Value | 15,716 |
Amount at which shown in the Balance Sheet | 15,716 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 17,654 |
Fair Value | 18,870 |
Amount at which shown in the Balance Sheet | 18,870 |
All other corporate and debt securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 110,565 |
Fair Value | 117,215 |
Amount at which shown in the Balance Sheet | 117,215 |
Mortgage-backed, asset-backed and collateralized | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 72,187 |
Fair Value | 75,861 |
Amount at which shown in the Balance Sheet | 75,861 |
Equity securities and mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,894 |
Fair Value | 2,297 |
Amount at which shown in the Balance Sheet | 2,297 |
Common Stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,251 |
Fair Value | 1,610 |
Amount at which shown in the Balance Sheet | 1,610 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1 |
Fair Value | 1 |
Amount at which shown in the Balance Sheet | 1 |
Banks, trust and insurance companies | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 924 |
Fair Value | 1,126 |
Amount at which shown in the Balance Sheet | 1,126 |
Industrial, miscellaneous and all other | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 326 |
Fair Value | 483 |
Amount at which shown in the Balance Sheet | 483 |
Preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 504 |
Fair Value | 533 |
Amount at which shown in the Balance Sheet | 533 |
Mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 139 |
Fair Value | 154 |
Amount at which shown in the Balance Sheet | 154 |
Mortgage and other loans receivable, net of allowance | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 37,023 |
Fair Value | 37,766 |
Amount at which shown in the Balance Sheet | 37,023 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 20,682 |
Fair Value | 20,824 |
Amount at which shown in the Balance Sheet | 20,822 |
Short-term investments, at cost | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 10,386 |
Fair Value | 10,386 |
Amount at which shown in the Balance Sheet | 10,386 |
Derivative assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 922 |
Fair Value | 922 |
Amount at which shown in the Balance Sheet | $ 922 |
Schedule II Condensed Financ166
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Balance Sheets) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Short-term investments | $ 10,386 | $ 12,302 | ||
Other Investments | 20,822 | 24,538 | ||
Total investments | 322,292 | 328,175 | ||
Cash | 2,362 | 1,868 | $ 1,629 | $ 1,758 |
Loans to subsidiaries | 0 | |||
Deferred income taxes | 14,033 | 21,332 | ||
Investment in consolidated subsidiaries | 0 | |||
Other assets | 10,194 | 10,815 | ||
Total assets | 498,301 | 498,264 | ||
Liabilities: | ||||
Outstanding debt | 31,640 | 30,912 | ||
Loans from subsidiaries | 0 | |||
Total liabilities | 432,593 | 421,406 | ||
AIG Shareholders' equity: | ||||
Common stock | 4,766 | 4,766 | ||
Treasury stock | (47,595) | (41,471) | ||
Additional paid-in capital | 81,078 | 81,064 | ||
Retained earnings | 21,457 | 28,711 | ||
Accumulated other comprehensive income (loss) | 5,465 | 3,230 | 2,537 | 10,617 |
Total AIG shareholders' equity | 65,171 | 76,300 | ||
Total liabilities and equity | 498,301 | 498,264 | ||
Parent Company [Member] | ||||
Assets: | ||||
Short-term investments | 2,541 | 4,424 | ||
Other Investments | 6,004 | 7,154 | ||
Total investments | 8,545 | 11,578 | ||
Cash | 3 | 2 | $ 34 | $ 26 |
Loans to subsidiaries | 35,004 | 34,692 | ||
Due from affiliates - net | 1,585 | 3,460 | ||
Intercompany tax receivable | 3,058 | 5,129 | ||
Deferred income taxes | 11,030 | 15,169 | ||
Investment in consolidated subsidiaries | 40,135 | 42,582 | ||
Other assets | 343 | 341 | ||
Total assets | 99,703 | 112,953 | ||
Liabilities: | ||||
Due to affiliate | 4,340 | 6,083 | ||
Intercompany tax payable | 4,577 | 4,152 | ||
Outstanding debt | 21,557 | 21,405 | ||
Loans from subsidiaries | 517 | 577 | ||
Other liabilities (includes intercompany derivative liabilities of $63 in 2017 and $419 in 2016) | 3,541 | 4,436 | ||
Total liabilities | 34,532 | 36,653 | ||
AIG Shareholders' equity: | ||||
Common stock | 4,766 | 4,766 | ||
Treasury stock | (47,595) | (41,471) | ||
Additional paid-in capital | 81,078 | 81,064 | ||
Retained earnings | 21,457 | 28,711 | ||
Accumulated other comprehensive income (loss) | 5,465 | 3,230 | ||
Total AIG shareholders' equity | 65,171 | 76,300 | ||
Total liabilities and equity | 99,703 | 112,953 | ||
Intercompany derivative liabilities | 63 | 419 | ||
Parent Company [Member] | Series AIGFP | ||||
Liabilities: | ||||
Outstanding debt | 21 | 31 | ||
Parent Company [Member] | MIP | ||||
Liabilities: | ||||
Outstanding debt | 356 | 1,099 | ||
Parent Company [Member] | Notes and bonds payable | ||||
Liabilities: | ||||
Outstanding debt | 20,339 | 19,432 | ||
Parent Company [Member] | Junior subordinated debt | ||||
Liabilities: | ||||
Outstanding debt | $ 841 | $ 843 |
Schedule II Condensed Financ167
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Income) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||||||||||
Net realized capital gains (losses) | $ (1,380) | $ (1,944) | $ 776 | ||||||||
Other income | 2,412 | 3,121 | 4,088 | ||||||||
Expenses | |||||||||||
Interest expense | 1,168 | 1,260 | 1,281 | ||||||||
(Gains) losses on extinguishment of debt | $ 1 | $ (1) | $ 4 | $ 1 | $ 2 | $ 14 | $ (7) | $ (83) | (5) | 74 | 756 |
Net (gain) loss on sale of divested businesses | 241 | (13) | (60) | (100) | 194 | 128 | 225 | (2) | (68) | (545) | 11 |
Income from continuing operations before income tax expense (benefit) | 875 | (2,803) | 1,667 | 1,727 | (3,455) | 737 | 2,858 | (214) | 1,466 | (74) | 3,281 |
Income tax expense (benefit) | 7,526 | 185 | 1,059 | ||||||||
Net income (loss) attributable to AIG common shareholders from continuing operations | (6,088) | (759) | 2,196 | ||||||||
Income (loss) from discontinued operations | (3) | (1) | 8 | 0 | (36) | 3 | (10) | (47) | 4 | (90) | 0 |
Net income (loss) attributable to AIG | $ (6,660) | $ (1,739) | $ 1,130 | $ 1,185 | $ (3,041) | $ 462 | $ 1,913 | $ (183) | (6,084) | (849) | 2,196 |
United Guaranty Asia | |||||||||||
Expenses | |||||||||||
Net (gain) loss on sale of divested businesses | (697) | ||||||||||
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Equity in undistributed net income (loss) of consolidated subsidiaries | (2,375) | (8,633) | (2,929) | ||||||||
Dividend income from consolidated subsidiaries | 2,226 | 7,364 | 6,883 | ||||||||
Interest income | 656 | 411 | 342 | ||||||||
Net realized capital gains (losses) | 46 | 2 | (587) | ||||||||
Other income | 189 | 103 | 333 | ||||||||
Expenses | |||||||||||
Interest expense | 949 | 988 | 1,049 | ||||||||
(Gains) losses on extinguishment of debt | 2 | 77 | 703 | ||||||||
Net (gain) loss on sale of divested businesses | 30 | (690) | 11 | ||||||||
Other expenses | 922 | 985 | 1,167 | ||||||||
Income from continuing operations before income tax expense (benefit) | (1,161) | (2,113) | 1,112 | ||||||||
Income tax expense (benefit) | 4,922 | (1,301) | (1,086) | ||||||||
Net income (loss) attributable to AIG common shareholders from continuing operations | (6,083) | (812) | 2,198 | ||||||||
Income (loss) from discontinued operations | (1) | (37) | (2) | ||||||||
Net income (loss) attributable to AIG | $ (6,084) | $ (849) | $ 2,196 |
Schedule II Condensed Financ168
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ (6,660) | $ (1,739) | $ 1,130 | $ 1,185 | $ (3,041) | $ 462 | $ 1,913 | $ (183) | $ (6,084) | $ (849) | $ 2,196 |
Other Comprehensive Income (Loss) | 2,235 | 693 | (8,086) | ||||||||
Comprehensive income (loss) attributable to AIG | (3,849) | (156) | (5,884) | ||||||||
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | (6,084) | (849) | 2,196 | ||||||||
Other Comprehensive Income (Loss) | 2,235 | 693 | (8,080) | ||||||||
Comprehensive income (loss) attributable to AIG | $ (3,849) | $ (156) | $ (5,884) |
Schedule II Condensed Financ169
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Cash Flows) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ (8,585) | $ 2,383 | $ 2,877 |
Cash flows from investing activities: | |||
Sale of divested businesses, net | 792 | 2,809 | 0 |
Purchase of investments | (63,246) | (69,985) | (65,265) |
Net change in restricted cash | (121) | 385 | 1,457 |
Net change in short-term investments | 2,098 | (3,089) | 1,163 |
Contributions from (to) subsidiaries - net | 0 | 0 | |
Mortgage and other loans receivable | (9,369) | (10,651) | (10,140) |
Payments received on mortgages and other loan receivables | 5,742 | 6,074 | 5,104 |
Loans to subsidiaries - net | 0 | 0 | |
Other, net | (2,143) | (1,020) | (1,509) |
Net cash provided by (used in) investing activities | 14,671 | 4,744 | 8,462 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 3,356 | 5,954 | 6,867 |
Repayments of long-term debt | (3,698) | (4,082) | (9,805) |
Cash dividends paid | (1,172) | (1,372) | (1,028) |
Purchase of Common Stock | (6,275) | (11,460) | (10,691) |
Other, net | 31 | (68) | (818) |
Net cash provided by (used in) financing activities | (5,697) | (6,833) | (11,429) |
Net increase (decrease) in cash | 361 | 346 | (129) |
Cash at beginning of year | 1,868 | 1,629 | 1,758 |
Cash at end of Period | 2,362 | 1,868 | 1,629 |
Interest: | |||
Third party | (1,282) | (1,331) | (1,368) |
Intercompany | 0 | 0 | 0 |
Taxes: | |||
Income tax authorities | (544) | (493) | (511) |
Intercompany | 0 | 0 | 0 |
Aer Cap | |||
Non-cash investing/financing activities: | |||
Non-cash consideration received from sale | 0 | 0 | 500 |
United Guaranty Corporation | |||
Non-cash investing/financing activities: | |||
Non-cash consideration received from sale | 0 | 1,101 | 0 |
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 36 | 2,112 | 4,443 |
Cash flows from investing activities: | |||
Sales and maturities of investments | 5,714 | 5,598 | 7,609 |
Sale of divested businesses, net | 40 | 2,160 | 0 |
Purchase of investments | (2,465) | (1,002) | (1,881) |
Net change in short-term investments | 1,990 | (789) | 2,300 |
Contributions from (to) subsidiaries - net | 2,446 | 1,637 | 565 |
Mortgage and other loans receivable | 0 | (85) | 0 |
Payments received on mortgages and other loan receivables | 107 | 171 | 158 |
Loans to subsidiaries - net | 199 | 1,525 | (83) |
Other, net | (183) | (56) | (175) |
Net cash provided by (used in) investing activities | 7,848 | 9,159 | 8,493 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 1,505 | 3,831 | 5,540 |
Repayments of long-term debt | (1,724) | (1,996) | (6,504) |
Cash dividends paid | (1,172) | (1,372) | (1,028) |
Loans from subsidiaries - net | (63) | 3 | (201) |
Purchase of Common Stock | (6,275) | (11,460) | (10,691) |
Other, net | (154) | (309) | (44) |
Net cash provided by (used in) financing activities | (7,883) | (11,303) | (12,928) |
Net increase (decrease) in cash | 1 | (32) | 8 |
Cash at beginning of year | 2 | 34 | 26 |
Cash at end of Period | 3 | 2 | 34 |
Interest: | |||
Third party | (948) | (975) | (1,030) |
Intercompany | 0 | 2 | 0 |
Taxes: | |||
Income tax authorities | (329) | (15) | (11) |
Intercompany | 614 | 479 | 829 |
Non-cash investing/financing activities: | |||
Other capital contributions - net | 259 | 3,245 | 494 |
Return of capital | 26 | 0 | 0 |
Dividends received in the form of securities | 735 | 5,234 | 2,326 |
Fixed maturity securities received in exchange for equity securities | $ 0 | $ 440 | $ 0 |
Schedule III Supplementary I170
Schedule III Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | $ 10,994 | $ 11,042 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 123,825 | 119,281 | |
Unearned Premiums | 19,030 | 19,634 | |
Policy and Contract Claims | 860 | 847 | |
Premiums and Policy Fees | 34,309 | 37,125 | $ 39,410 |
Net Investment Income | 14,179 | 14,065 | 14,053 |
Losses and Loss Expenses Incurred, Benefits | 33,564 | 36,142 | 35,076 |
Amortization of Deferred Policy Acquisition Costs | 4,288 | 4,521 | 5,236 |
Other Operating Expenses | 7,396 | 8,667 | 10,455 |
Net Premiums Written | 25,756 | 29,233 | 33,066 |
General Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 2,587 | 2,563 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 73,530 | 71,926 | |
Unearned Premiums | 18,795 | 19,348 | |
Policy and Contract Claims | 0 | 0 | |
Premiums and Policy Fees | 26,026 | 29,586 | 30,922 |
Net Investment Income | 3,668 | 3,554 | 3,746 |
Losses and Loss Expenses Incurred, Benefits | 21,642 | 25,103 | 22,873 |
Amortization of Deferred Policy Acquisition Costs | 3,765 | 4,121 | 4,319 |
Other Operating Expenses | 5,100 | 5,967 | 6,848 |
Net Premiums Written | 25,438 | 28,393 | 32,199 |
Life and Retirement | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 8,407 | 8,466 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 44,615 | 41,383 | |
Unearned Premiums | 0 | 0 | |
Policy and Contract Claims | 851 | 836 | |
Premiums and Policy Fees | 6,844 | 4,878 | 5,677 |
Net Investment Income | 7,816 | 7,622 | 7,541 |
Losses and Loss Expenses Incurred, Benefits | 8,607 | 6,945 | 7,745 |
Amortization of Deferred Policy Acquisition Costs | 743 | 613 | 794 |
Other Operating Expenses | 2,296 | 2,700 | 3,607 |
Net Premiums Written | 0 | 0 | 0 |
Other Operations | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 0 | 13 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 5,680 | 5,972 | |
Unearned Premiums | 235 | 286 | |
Policy and Contract Claims | 9 | 11 | |
Premiums and Policy Fees | 712 | 1,845 | 1,641 |
Net Investment Income | (81) | (24) | (162) |
Losses and Loss Expenses Incurred, Benefits | 1,076 | 743 | 854 |
Amortization of Deferred Policy Acquisition Costs | (296) | (321) | 21 |
Other Operating Expenses | 0 | 0 | 0 |
Net Premiums Written | 314 | 819 | 668 |
Legacy Portfolio | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Policy Fees | 727 | 816 | 1,170 |
Net Investment Income | 2,776 | 2,913 | 2,928 |
Losses and Loss Expenses Incurred, Benefits | 2,239 | 3,351 | 3,604 |
Amortization of Deferred Policy Acquisition Costs | 76 | 108 | 102 |
Other Operating Expenses | 0 | 0 | 0 |
Net Premiums Written | $ 4 | $ 21 | $ 199 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reportable Segments | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 35,258 | $ 38,579 | $ 42,931 |
Ceded to Other Companies | 8,342 | 8,350 | 8,360 |
Assumed from Other Companies | 3,369 | 2,947 | 2,979 |
Net Amount | $ 30,285 | $ 33,176 | $ 37,550 |
Percent of Amount Assumed to Net | 11.10% | 8.90% | 7.90% |
Reportable Segments | General Insurance Companies | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 30,205 | $ 33,970 | $ 37,698 |
Ceded to Other Companies | 7,533 | 7,561 | 7,604 |
Assumed from Other Companies | 3,084 | 2,824 | 2,972 |
Net Amount | $ 25,756 | $ 29,233 | $ 33,066 |
Percent of Amount Assumed to Net | 12.00% | 9.70% | 9.00% |
Reportable Segments | Life and Retirement Companies | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 5,053 | $ 4,609 | $ 5,233 |
Ceded to Other Companies | 809 | 789 | 756 |
Assumed from Other Companies | 285 | 123 | 7 |
Net Amount | $ 4,529 | $ 3,943 | $ 4,484 |
Percent of Amount Assumed to Net | 6.30% | 3.10% | 0.20% |
Reportable Segments | Other | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 0 | $ 0 | $ 0 |
Ceded to Other Companies | 0 | 0 | 0 |
Assumed from Other Companies | 0 | 0 | 0 |
Net Amount | $ 0 | $ 0 | $ 0 |
Percent of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Long-duration insurance in force | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 1,061,095 | $ 1,025,653 | $ 1,051,571 |
Ceded to Other Companies | 202,402 | 174,363 | 177,025 |
Assumed from Other Companies | 321 | 339 | 372 |
Net Amount | $ 859,014 | $ 851,629 | $ 874,918 |
Percent of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Schedule V Valuation and Qua172
Schedule V Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for mortgage and other loans receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | $ 297 | $ 308 | $ 271 |
Charged to costs and expenses | 49 | (7) | 58 |
Charge offs | (25) | (15) | (29) |
Reclassified to assets of businesses held-for-sale | 0 | 0 | 0 |
Divested Business | 0 | 0 | 3 |
Other changes | 1 | 11 | 5 |
Balance at the end of the year | 322 | 297 | 308 |
Allowance for mortgage and other loans receivable | Segment Discontinued Operations | |||
Valuation and Qualifying Accounts | |||
Net change | 0 | 0 | |
Allowance for premiums and insurances balances receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 262 | 333 | 431 |
Charged to costs and expenses | 36 | 26 | 35 |
Charge offs | (58) | (88) | (120) |
Reclassified to assets of businesses held-for-sale | 0 | (2) | 0 |
Divested Business | (8) | (7) | 0 |
Other changes | 4 | 0 | (13) |
Balance at the end of the year | 236 | 262 | 333 |
Allowance for reinsurance assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 207 | 272 | 258 |
Charged to costs and expenses | 33 | (23) | 90 |
Charge offs | (50) | (34) | (67) |
Reclassified to assets of businesses held-for-sale | 0 | (8) | 0 |
Divested Business | 0 | 0 | 0 |
Other changes | (3) | 0 | (9) |
Balance at the end of the year | 187 | 207 | 272 |
Federal and foreign valuation allowance for deferred tax assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 2,831 | 3,012 | 1,739 |
Charged to costs and expenses | 43 | 83 | 110 |
Charge offs | 0 | 0 | 0 |
Reclassified to assets of businesses held-for-sale | 0 | 0 | 0 |
Divested Business | 0 | 0 | 0 |
Other changes | (1,500) | (264) | 1,163 |
Balance at the end of the year | 1,374 | 2,831 | 3,012 |
Federal and foreign valuation allowance for deferred tax assets | Segment Discontinued Operations | |||
Valuation and Qualifying Accounts | |||
Net change | $ 0 | $ 0 | $ 0 |