10-Q/A

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________

FORM 10-Q/A

(Amendment No. 1)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015 Commission File Number 1-8787

 

American International Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware	13-2592361
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
175 Water Street, New York, New York	10038
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 770-7000

________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☑     No ☐ 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ☑     No ☐ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐      No ☑

As of July 29, 2015, there were 1,293,886,920 shares outstanding of the registrant’s common stock.

EXPLANATORY NOTE

The sole purpose of this Amendment No. 1 to American International Group, Inc.'s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015 (the Form 10-Q) is to file Exhibit 101 with the Form 10-Q in accordance with Rule 405 of Regulation S-T. Due to a technical error, the eXtensible Business Reporting Language (XBRL) data associated with the Form 10-Q was omitted from that filing.  No other changes have been made to the Form 10-Q. This Amendment No. 1 does not reflect any subsequent events occurring after the original filing date of the Form 10-Q or modify or update in any way disclosures made in the original filing.

Exhibit 101 consists of the following materials from the Form 10-Q, filed with the Securities and Exchange Commission on August 3, 2015, formatted in XBRL:

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

PART II – OTHER INFORMATION

Item 6 / Exhibits 

See accompanying Exhibit Index.

1

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Amendment No. 1 to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: August 4, 2015

AMERICAN INTERNATIONAL GROUP, INC.

(Registrant)

/S/ DAVID L. HERZOG

David L. Herzog

Executive Vice President

Chief Financial Officer

Principal Financial Officer

/S/ ELIAS F. HABAYEB

Elias F. Habayeb

Senior Vice President

Deputy Chief Financial Officer and

Group Controller

Principal Accounting Officer

2

EXHIBIT INDEX

Exhibit Number	Description	Location
4	Instruments defining the rights of security holders, including indentures
	(1) Twenty-Sixth Supplemental Indenture, dated as of July 10, 2015, between AIG and The Bank of New York Mellon, as Trustee	Incorporated by reference to Exhibit 4.1 to AIG's Current Report on Form 8-K filed with the SEC on July 10, 2015 (File No. 1-8787).
	(2) Twenty-Seventh Supplemental Indenture, dated as of July 10, 2015, between AIG and The Bank of New York Mellon, as Trustee	Incorporated by reference to Exhibit 4.2 to AIG's Current Report on Form 8-K filed with the SEC on July 10, 2015 (File No. 1-8787).
	(3) Twenty-Eighth Supplemental Indenture, dated as of July 10, 2015, between AIG and The Bank of New York Mellon, as Trustee	Incorporated by reference to Exhibit 4.3 to AIG's Current Report on Form 8-K filed with the SEC on July 10, 2015 (File No. 1-8787).
	(4)* Twenty-Ninth Supplemental Indenture, dated as of July 17, 2015, between AIG and The Bank of New York Mellon, as Trustee
	(5) Form of the 2025 Notes (included in Exhibit 4(1))
	(6) Form of the 2035 Notes (included in Exhibit 4(2))
	(7) Form of the 2045 Notes (included in Exhibit 4(3))
	(8)* Form of the 2045 Callable Notes (included in Exhibit 4(4))
11*	Statement re: Computation of Per Share Earnings	Included in Note 13 to the Condensed Consolidated Financial Statements.
12*	Computation of Ratios of Earnings to Fixed Charges
31*	Rule 13a-14(a)/15d-14(a) Certifications
32*	Section 1350 Certifications
101**	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014, (ii) the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2015 and 2014, (iii) the Condensed Consolidated Statement of Equity for the six months ended June 30, 2015 and 2014, (iv) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014, (v) the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2015 and 2014 and (vi) the Notes to the Condensed Consolidated Financial Statements.	Filed herewith.

* Exhibit filed or furnished with American International Group, Inc.’s Quarterly Report on Form 10-Q filed on August 3, 2015.

** Filed with this 10-Q/A.

3

XML

FAIR VALUE MEASUREMENTS (Details - Fair Value Measurements on a Recurring Basis) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2012	Sep. 30, 2010	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			$ 255,066		$ 259,859
Other bond securities, at fair value (See Note 5)			16,598		19,712
Equity securities available for sale			4,755		4,395
Other equity securities			1,323		1,049
Other invested assets			9,389		9,394
Derivative assets, at fair value			1,256		1,604
Short-term investments, portion measured at fair value			2,281		1,684
Separate account assets, at fair value			82,135		80,036
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value			1,268		1,561
Other policyholder funds			4,378		4,669
Derivative liabilities, at fair value			1,546		2,273
Long-term debt, portion measured at fair value			4,269		5,466
Other liabilities			284		350
Recurring Basis
Fair Value, Liabilities Measured on Recurring Basis
Assets transferred from Level 1 to Level 2			180
Assets transferred from Level 2 to Level 1			0	$ 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	$ 65	$ 0		103
Recurring Basis | Non-U.S. government
Fair Value, Liabilities Measured on Recurring Basis
Assets transferred from Level 1 to Level 2	$ 190	$ 236	262	$ 298
Recurring Basis | Level 1
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			649		1,064
Other bond securities, at fair value (See Note 5)			176		130
Equity securities available for sale			4,745		4,389
Other equity securities			1,301		1,024
Mortgage and other loans receivable			0
Other invested assets			2		2
Derivative assets, at fair value			90		100
Short-term investments, portion measured at fair value			1,036		584
Separate account assets, at fair value			76,833		73,939
Other assets			0
Fair value assets measured on recurring basis, total			84,832		81,232
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value			0
Other policyholder funds			0
Derivative liabilities, at fair value			0
Long-term debt, portion measured at fair value			0
Other liabilities			120		34
Fair value liabilities measured on recurring basis, total			120		34
Recurring Basis | Level 1 | Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			6		2
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 1 | Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 1 | Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			84		98
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 1 | Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 1 | Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 1 | Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 1 | Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 1 | U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			1		322
Other bond securities, at fair value (See Note 5)			176		130
Recurring Basis | Level 1 | Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Level 1 | Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			648		742
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Level 1 | Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			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, at fair value (See Note 5)			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, at fair value (See Note 5)			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, at fair value (See Note 5)			0
Recurring Basis | Level 1 | Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			3,843		3,626
Recurring Basis | Level 1 | Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			25		25
Recurring Basis | Level 1 | Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			877		738
Recurring Basis | Level 2
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			224,241		229,112
Other bond securities, at fair value (See Note 5)			7,420		10,659
Equity securities available for sale			10		5
Other equity securities			0		25
Mortgage and other loans receivable			0
Other invested assets			4,312		3,742
Derivative assets, at fair value			3,877		4,626
Short-term investments, portion measured at fair value			1,245		1,100
Separate account assets, at fair value			5,302		6,097
Other assets			0		0
Fair value assets measured on recurring basis, total			246,407		255,366
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value			36		52
Other policyholder funds			8		8
Derivative liabilities, at fair value			3,734		4,633
Long-term debt, portion measured at fair value			4,076		5,253
Other liabilities			164		316
Fair value liabilities measured on recurring basis, total			8,018		10,262
Recurring Basis | Level 2 | Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			3,192		3,729
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			2,389		3,047
Recurring Basis | Level 2 | Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			675		839
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			1,232		1,482
Recurring Basis | Level 2 | Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			10		58
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			105		98
Recurring Basis | Level 2 | Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			6		6
Recurring Basis | Level 2 | Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 2 | Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			2		0
Recurring Basis | Level 2 | Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 2 | U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			2,513		2,670
Other bond securities, at fair value (See Note 5)			3,639		5,368
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			25,482		25,500
Other bond securities, at fair value (See Note 5)			75		122
Recurring Basis | Level 2 | Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			18,468		20,323
Other bond securities, at fair value (See Note 5)			2		2
Recurring Basis | Level 2 | Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			138,745		142,550
Other bond securities, at fair value (See Note 5)			436		719
Recurring Basis | Level 2 | Residential mortgage backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			19,151		20,715
Other bond securities, at fair value (See Note 5)			873		989
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			10,845		10,189
Other bond securities, at fair value (See Note 5)			644		708
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			9,037		7,165
Other bond securities, at fair value (See Note 5)			1,751		2,751
Recurring Basis | Level 2 | Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			8		2
Recurring Basis | Level 2 | Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			0		0
Recurring Basis | Level 2 | Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			2		3
Recurring Basis | Level 3
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			30,176		29,683
Other bond securities, at fair value (See Note 5)			9,002		8,923
Equity securities available for sale			0		1
Other equity securities			22
Mortgage and other loans receivable			6		6
Other invested assets			5,075		5,650
Derivative assets, at fair value			109		99
Short-term investments, portion measured at fair value			0
Separate account assets, at fair value			0
Other assets			0
Fair value assets measured on recurring basis, total			44,390		44,362
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value			1,232		1,509
Other policyholder funds			0
Derivative liabilities, at fair value			682		1,171
Long-term debt, portion measured at fair value			193		213
Other liabilities			0
Fair value liabilities measured on recurring basis, total			2,107		2,893
Recurring Basis | Level 3 | Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			11		12
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			73		86
Recurring Basis | Level 3 | Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0		1
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			7		9
Recurring Basis | Level 3 | Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			64		51
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			1		4
Recurring Basis | Level 3 | Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 3 | Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			4		4
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			555		982
Recurring Basis | Level 3 | Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			30		31
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			46		90
Recurring Basis | Level 3 | Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Level 3 | U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Level 3 | Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			2,180		2,159
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Level 3 | Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			33		30
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Level 3 | Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			2,118		1,883
Other bond securities, at fair value (See Note 5)			16
Recurring Basis | Level 3 | Residential mortgage backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			17,097		16,805
Other bond securities, at fair value (See Note 5)			1,337		1,105
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			2,677		2,696
Other bond securities, at fair value (See Note 5)			223		369
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			6,071		6,110
Other bond securities, at fair value (See Note 5)			7,426		7,449
Recurring Basis | Level 3 | Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			0		1
Recurring Basis | Level 3 | Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			0
Recurring Basis | Level 3 | Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			0
Recurring Basis | Counterparty Netting
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Equity securities available for sale			0
Other equity securities			0
Mortgage and other loans receivable			0
Other invested assets			0
Derivative assets, at fair value			(1,594)		(2,102)
Short-term investments, portion measured at fair value			0
Separate account assets, at fair value			0
Other assets			0
Fair value assets measured on recurring basis, total			(1,594)		(2,102)
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value			0
Derivative liabilities, at fair value			(1,594)		(2,102)
Long-term debt, portion measured at fair value			0
Other liabilities			0
Fair value liabilities measured on recurring basis, total			(1,594)		(2,102)
Recurring Basis | Counterparty Netting | Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Counterparty Netting | Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Counterparty Netting | Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Counterparty Netting | Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Counterparty Netting | Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Counterparty Netting | Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Counterparty Netting | Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			(1,594)		(2,102)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			(1,594)		(2,102)
Recurring Basis | Counterparty Netting | U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Counterparty Netting | Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Counterparty Netting | Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Counterparty Netting | Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Counterparty Netting | Residential mortgage backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Counterparty Netting | Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Counterparty Netting | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Counterparty Netting | Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			0
Recurring Basis | Counterparty Netting | Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			0
Recurring Basis | Counterparty Netting | Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			0
Recurring Basis | Cash Collateral
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Equity securities available for sale			0
Other equity securities			0
Mortgage and other loans receivable			0
Other invested assets			0
Derivative assets, at fair value			(1,226)		(1,119)
Short-term investments, portion measured at fair value			0
Separate account assets, at fair value			0
Other assets			0
Fair value assets measured on recurring basis, total			(1,226)		(1,119)
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value			0
Derivative liabilities, at fair value			(1,276)		(1,429)
Long-term debt, portion measured at fair value			0
Other liabilities			0
Fair value liabilities measured on recurring basis, total			(1,276)		(1,429)
Recurring Basis | Cash Collateral | Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Cash Collateral | Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Cash Collateral | Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Cash Collateral | Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Cash Collateral | Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Cash Collateral | Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			0
Recurring Basis | Cash Collateral | Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			(1,226)		(1,119)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			(1,276)		(1,429)
Recurring Basis | Cash Collateral | U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Cash Collateral | Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Cash Collateral | Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Cash Collateral | Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Cash Collateral | Residential mortgage backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Cash Collateral | Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Cash Collateral | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			0
Other bond securities, at fair value (See Note 5)			0
Recurring Basis | Cash Collateral | Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			0
Recurring Basis | Cash Collateral | Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			0
Recurring Basis | Cash Collateral | Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			0
Recurring Basis | Total Fair Value
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			255,066		259,859
Other bond securities, at fair value (See Note 5)			16,598		19,712
Equity securities available for sale			4,755		4,395
Other equity securities			1,323		1,049
Mortgage and other loans receivable			6		6
Other invested assets			9,389		9,394
Derivative assets, at fair value			1,256		1,604
Short-term investments, portion measured at fair value			2,281		1,684
Separate account assets, at fair value			82,135		80,036
Other assets			0		0
Fair value assets measured on recurring basis, total			372,809		377,739
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value			1,268		1,561
Other policyholder funds			8		8
Derivative liabilities, at fair value			1,546		2,273
Long-term debt, portion measured at fair value			4,269		5,466
Other liabilities			284		350
Fair value liabilities measured on recurring basis, total			7,375		9,658
Recurring Basis | Total Fair Value | Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			3,209		3,743
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			2,462		3,133
Recurring Basis | Total Fair Value | Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			675		840
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			1,239		1,491
Recurring Basis | Total Fair Value | Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			158		207
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			106		102
Recurring Basis | Total Fair Value | Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			0		0
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			6		6
Recurring Basis | Total Fair Value | Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			4		4
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			555		982
Recurring Basis | Total Fair Value | Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			30		31
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			48		90
Recurring Basis | Total Fair Value | Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value			(2,820)		(3,221)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value			(2,870)		(3,531)
Recurring Basis | Total Fair Value | U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			2,514		2,992
Other bond securities, at fair value (See Note 5)			3,815		5,498
Recurring Basis | Total Fair Value | Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			27,662		27,659
Other bond securities, at fair value (See Note 5)			75		122
Recurring Basis | Total Fair Value | Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			19,149		21,095
Other bond securities, at fair value (See Note 5)			2		2
Recurring Basis | Total Fair Value | Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			140,863		144,433
Other bond securities, at fair value (See Note 5)			452		719
Recurring Basis | Total Fair Value | Residential mortgage backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			36,248		37,520
Other bond securities, at fair value (See Note 5)			2,210		2,094
Recurring Basis | Total Fair Value | Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			13,522		12,885
Other bond securities, at fair value (See Note 5)			867		1,077
Recurring Basis | Total Fair Value | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale			15,108		13,275
Other bond securities, at fair value (See Note 5)			9,177		10,200
Recurring Basis | Total Fair Value | Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			3,851		3,629
Recurring Basis | Total Fair Value | Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			25		25
Recurring Basis | Total Fair Value | Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale			$ 879		$ 741

XML

INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
TRADING SECURITIES
Other Securities, Fair Value	$ 17,921	$ 20,761
Other Securities, Percent of Total	100.00%	100.00%
U.S. Government agency backed ABS
TRADING SECURITIES
Other Securities, Fair Value	$ 793,000	$ 859,000
Fixed maturity securities
TRADING SECURITIES
Other Securities, Fair Value	$ 16,598	$ 19,712
Other Securities, Percent of Total	93.00%	95.00%
Fixed maturity securities | U.S. government and government sponsored entities
TRADING SECURITIES
Other Securities, Fair Value	$ 3,815	$ 5,498
Other Securities, Percent of Total	21.00%	27.00%
Fixed maturity securities | Obligations of states, municipalities and political subdivisions
TRADING SECURITIES
Other Securities, Fair Value	$ 75	$ 122
Other Securities, Percent of Total	0.00%	1.00%
Fixed maturity securities | Non-U.S. government
TRADING SECURITIES
Other Securities, Fair Value	$ 2	$ 2
Other Securities, Percent of Total	0.00%	0.00%
Fixed maturity securities | Corporate debt
TRADING SECURITIES
Other Securities, Fair Value	$ 452	$ 719
Other Securities, Percent of Total	4.00%	3.00%
Fixed maturity securities | Mortgage-backed, asset-backed and collateralized
TRADING SECURITIES
Other Securities, Fair Value	$ 12,254	$ 13,371
Other Securities, Percent of Total	68.00%	64.00%
Fixed maturity securities | Residential mortgage backed securities (RMBS)
TRADING SECURITIES
Other Securities, Fair Value	$ 2,210	$ 2,094
Other Securities, Percent of Total	12.00%	10.00%
Fixed maturity securities | Commercial mortgage-backed securities (CMBS)
TRADING SECURITIES
Other Securities, Fair Value	$ 867	$ 1,077
Other Securities, Percent of Total	5.00%	5.00%
Fixed maturity securities | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS)
TRADING SECURITIES
Other Securities, Fair Value	$ 9,177	$ 10,200
Other Securities, Percent of Total	51.00%	49.00%
Fixed maturity securities | Other
TRADING SECURITIES
Other Securities, Fair Value	$ 0	$ 0
Equity securities
TRADING SECURITIES
Other Securities, Fair Value	$ 1,323	$ 1,049
Other Securities, Percent of Total	7.00%	5.00%

XML

FAIR VALUE MEASUREMENTS (Details - Assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges) - Fair value on a non-recurring basis - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	$ 103	$ 65	$ 202	$ 143
Other Investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	27	20	52	55
Investments In Life Settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	72	45	142	87
Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	4	$ 0	8	$ 1
Level 1
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0		0		$ 0
Level 1 | Other Investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0		0		0
Level 1 | Investments In Life Settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0		0		0
Level 1 | Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0		0		0
Level 2
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0		0		0
Level 2 | Other Investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0		0		0
Level 2 | Investments In Life Settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0		0		0
Level 2 | Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	0		0		0
Level 3
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	1,513		1,513		1,328
Level 3 | Other Investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	1,000		1,000		790
Level 3 | Investments In Life Settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	501		501		537
Level 3 | Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	12		12		1
Total Fair Value
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	1,513		1,513		1,328
Total Fair Value | Other Investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	1,000		1,000		790
Total Fair Value | Investments In Life Settlements
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	501		501		537
Total Fair Value | Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	$ 12		$ 12		$ 1

XML

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Long term purchase commitments) $ in Billions	Jun. 30, 2015 USD ($)
Other Commitments
Other Commitments	$ 2.7

XML

INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Pledged Investments
Total investment income	$ 3,943	$ 4,017	$ 7,933	$ 8,345
Investment expenses	117	133	269	265
Net investment income	3,826	3,884	7,664	8,080
Fixed maturity securities, including short-term investments
Pledged Investments
Total investment income	2,800	3,111	5,683	6,242
Equity securities
Pledged Investments
Total investment income	66	17	81	(68)
Interest on mortgage and other loans
Pledged Investments
Total investment income	347	311	686	629
Alternative investments
Pledged Investments
Total investment income	694	547	1,383	1,472
Real estate
Pledged Investments
Total investment income	24	33	50	61
Other investments
Pledged Investments
Total investment income	$ 12	$ (2)	$ 50	$ 9

XML

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income tax expense (benefit):
Effective tax rates on income from continuing operations (as a percent)	30.40%	32.90%	32.80%	30.90%
U.S. federal income tax at statutory rate (as a percent)	35.00%	35.00%	35.00%	35.00%
Deferred tax asset valuation allowance recognized	$ 40		$ 53
Accounting for Uncertainty in Income Taxes
Unrecognized tax benefits, excluding interest and penalties	4,400		4,400		$ 4,400
Unrecognized tax benefits, if recognized would not affect the effective tax rate	200		200		300
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate	4,200		4,200		4,100
Unrecognized tax benefits, interest and penalties accrued	$ 1,100		1,100		$ 1,100
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties			$ 15	$ 62
Unrecognized tax benefits, period of reasonably possible change in balance	P12M

XML

FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2012	Sep. 30, 2010	Jun. 30, 2015	Jun. 30, 2014
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	$ 709	$ 494			$ 918	$ 1,239
Fair value option credit risk gains (losses)			$ 5	$ (22)	11	11
Fair Value Option | Other long-term debt
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	131	(135)			55	(209)
Fair Value Option | Other liabilities
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	0	(2)			(3)	(6)
Fair Value Option | Mortgage and other loans receivable, net of allowance
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	0	0			0	0
Fair Value Option | Bond and equity securities
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	460	611			601	1,277
Fair Value Option | Alternative investments
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	118	18			263	172
Fair Value Option | Other, Including Short term investments
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	$ 0	$ 2			$ 2	$ 5

XML

EQUITY (Tables)

6 Months Ended

Jun. 30, 2015

EQUITY

Rollforward of common stock outstanding

	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Six Months Ended June 30, 2015
Shares, beginning of year	1,906,671,492	(530,744,521)	1,375,926,971
Shares issued	-	27,089	27,089
Shares repurchased	-	(68,505,540)	(68,505,540)
Shares, end of period	1,906,671,492	(599,222,972)	1,307,448,520

Accumulated Other Comprehensive Income (Loss)

		Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken
				Unrealized Appreciation (Depreciation) of All Other Investments		Foreign Currency Translation Adjustments		Retirement Plan Liabilities Adjustment
(in millions)										Total
Balance, December 31, 2014, net of tax	$	1,043	$	12,327	$	(1,784)	$	(969)	$	10,617
Change in unrealized depreciation of investments		(195)		(4,843)		-		-		(5,038)
Change in deferred acquisition costs adjustment and other		(9)		495		-		-		486
Change in future policy benefits		92		804		-		-		896
Change in foreign currency translation adjustments		-		-		(684)		-		(684)
Net actuarial gain		-		-		-		91		91
Prior service cost		-		-		-		(23)		(23)
Change in deferred tax asset (liability)		4		1,092		188		(12)		1,272
Total other comprehensive income (loss)		(108)		(2,452)		(496)		56		(3,000)
Noncontrolling interests		-		-		(3)		-		(3)
Balance, June 30, 2015, net of tax	$	935	$	9,875	$	(2,277)	$	(913)	$	7,620
Balance, December 31, 2013, net of tax	$	936	$	6,789	$	(952)	$	(413)	$	6,360
Change in unrealized appreciation of investments		199		7,517		-		-		7,716
Change in deferred acquisition costs adjustment and other		36		(629)		-		-		(593)
Change in future policy benefits		(143)		(1,185)		-		-		(1,328)
Change in foreign currency translation adjustments		-		-		(29)		-		(29)
Net actuarial gain		-		-		-		37		37
Prior service cost		-		-		-		(24)		(24)
Change in deferred tax asset (liability)		23		(563)		(82)		(6)		(628)
Total other comprehensive income (loss)		115		5,140		(111)		7		5,151
Noncontrolling interests		-		-		-		-		-
Balance, June 30, 2014, net of tax	$	1,051	$	11,929	$	(1,063)	$	(406)	$	11,511

Other comprehensive income (loss) reclassification adjustments

		Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken
				Unrealized Appreciation (Depreciation) of All Other Investments		Foreign Currency Translation Adjustments		Retirement Plan Liabilities Adjustment
(in millions)										Total
Three Months Ended June 30, 2015
Unrealized change arising during period	$	35	$	(4,475)	$	(52)	$	14	$	(4,478)
Less: Reclassification adjustments
included in net income		46		99		-		(23)		122
Total other comprehensive income (loss),
before income tax expense (benefit)		(11)		(4,574)		(52)		37		(4,600)
Less: Income tax expense (benefit)		25		(1,583)		(15)		10		(1,563)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(36)	$	(2,991)	$	(37)	$	27	$	(3,037)
Three Months Ended June 30, 2014
Unrealized change arising during period	$	21	$	2,909	$	73	$	10	$	3,013
Less: Reclassification adjustments
included in net income		10		165		-		(1)		174
Total other comprehensive income (loss),
before income tax expense		11		2,744		73		11		2,839
Less: Income tax expense (benefit)		(15)		389		26		13		413
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	26	$	2,355	$	47	$	(2)	$	2,426
Six Months Ended June 30, 2015
Unrealized change arising during period	$	(57)	$	(2,968)	$	(684)	$	21	$	(3,688)
Less: Reclassification adjustments
included in net income		55		576		-		(47)		584
Total other comprehensive income (loss),
before income tax expense (benefit)		(112)		(3,544)		(684)		68		(4,272)
Less: Income tax expense (benefit)		(4)		(1,092)		(188)		12		(1,272)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(108)	$	(2,452)	$	(496)	$	56	$	(3,000)
Six Months Ended June 30, 2014
Unrealized change arising during period	$	110	$	6,097	$	(29)	$	11	$	6,189
Less: Reclassification adjustments
included in net income		18		394		-		(2)		410
Total other comprehensive income (loss),
before income tax expense (benefit)		92		5,703		(29)		13		5,779
Less: Income tax expense (benefit)		(23)		563		82		6		628
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	115	$	5,140	$	(111)	$	7	$	5,151

Schedule of effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income

	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income
	Three Months Ended June 30,
(in millions)		2015		2014
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken
Investments		$	46	$	10		Other realized capital gains
Total			46		10
Unrealized appreciation (depreciation) of all other investments
Investments			112		207		Other realized capital gains
Deferred acquisition costs adjustment			(30)		(30)		Amortization of deferred policy acquisition costs
Future policy benefits			17		(12)		Policyholder benefits and losses incurred
Total			99		165
Change in retirement plan liabilities adjustment
Prior - service cost			11		12		*
Actuarial losses			(34)		(13)		*
Total			(23)		(1)
Total reclassifications for the period		$	122	$	174
	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income
	Six Months Ended June 30,
(in millions)		2015		2014
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken
Investments		$	55	$	18		Other realized capital gains
Total			55		18
Unrealized appreciation (depreciation) of all other investments
Investments			624		411		Other realized capital gains
Deferred acquisition costs adjustment			(65)		5		Amortization of deferred policy acquisition costs
Future policy benefits			17		(22)		Policyholder benefits and losses incurred
Total			576		394
Change in retirement plan liabilities adjustment
Prior - service cost			23		24		*
Actuarial losses			(70)		(26)		*
Total			(47)		(2)		-
Total reclassifications for the period		$	584	$	410		-

* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 12 to the Condensed Consolidated Financial Statements.

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INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Assets:
Short-term investments	$ 13,865.0	$ 11,243.0
Other investments	334,714.0	344,523.0
Total investments	348,579.0	355,766.0
Cash	1,937.0	1,758.0	$ 1,827.0	$ 2,241.0
Other assets, including deferred income taxes	159,471.0	158,057.0
Total assets	509,987.0	515,581.0
Liabilities:
Insurance liabilities	267,370.0	270,615.0
Long-term debt	30,360.0	31,217.0
Other liabilities, including intercompany balances	107,615.0	106,477.0
Total liabilities	405,345.0	408,309.0
Total AIG shareholders' equity	104,258.0	106,898.0
Non-redeemable noncontrolling interests	384.0	374.0
Total equity`	104,642.0	107,272.0	108,581.0	101,081.0
Total liabilities and equity	509,987.0	515,581.0
AIG (As Guarantor)
Assets:
Short-term investments	8,278.0	6,078.0
Other investments	9,345.0	11,415.0
Total investments	17,623.0	17,493.0
Cash	91.0	26.0	160.0	30.0
Loans to subsidiaries	30,956.0	31,070.0
Investment in consolidated subsidiaries	62,134.0	62,811.0
Other assets, including deferred income taxes	21,957.0	23,835.0
Total assets	132,761.0	135,235.0
Liabilities:
Long-term debt	21,288.0	21,190.0
Other liabilities, including intercompany balances	6,581.0	6,196.0
Loans from subsidiaries	634.0	951.0
Total liabilities	28,503.0	28,337.0
Total AIG shareholders' equity	104,258.0	106,898.0
Total equity`	104,258.0	106,898.0
Total liabilities and equity	132,761.0	135,235.0
Intercompany tax payable	1.8	343.0
Intercompany derivative liabilities	33.0	275.0
AIGLH
Assets:
Cash	4.0	91.0	2.0	51.0
Investment in consolidated subsidiaries	34,034.0	35,850.0
Other assets, including deferred income taxes	117.0	2,305.0
Total assets	34,155.0	38,246.0
Liabilities:
Long-term debt	707.0	820.0
Other liabilities, including intercompany balances	66.0	2,314.0
Loans from subsidiaries	0.0	0.0
Total liabilities	773.0	3,134.0
Total AIG shareholders' equity	33,382.0	35,112.0
Total equity`	33,382.0	35,112.0
Total liabilities and equity	34,155.0	38,246.0
Intercompany tax receivable (payable)	31.0	3.0
Other Subsidiaries
Assets:
Short-term investments	6,263.0	6,231.0
Other investments	325,186.0	333,108.0
Total investments	331,449.0	339,339.0
Cash	1,842.0	1,641.0	$ 1,665.0	$ 2,160.0
Loans to subsidiaries	642.0	779.0
Other assets, including deferred income taxes	140,098.0	141,826.0
Total assets	474,031.0	483,585.0
Liabilities:
Insurance liabilities	267,370.0	270,615.0
Long-term debt	8,365.0	9,207.0
Other liabilities, including intercompany balances	104,368.0	108,189.0
Loans from subsidiaries	30,774.0	30,898.0
Total liabilities	410,877.0	418,909.0
Redeemable noncontrolling interests		0.0
Total AIG shareholders' equity	62,770.0	64,302.0
Non-redeemable noncontrolling interests	384.0	374.0
Total equity`	63,154.0	64,676.0
Total liabilities and equity	474,031.0	483,585.0
Reclassifications and Eliminations
Assets:
Short-term investments	(676.0)	(1,066.0)
Other investments	183.0
Total investments	(493.0)	(1,066.0)
Loans to subsidiaries	(31,598.0)	(31,849.0)
Investment in consolidated subsidiaries	(96,168.0)	(98,661.0)
Other assets, including deferred income taxes	(2,701.0)	(9,909.0)
Total assets	(130,960.0)	(141,485.0)
Liabilities:
Other liabilities, including intercompany balances	(3,400.0)	(10,222.0)
Loans from subsidiaries	(31,408.0)	(31,849.0)
Total liabilities	(34,808.0)	(42,071.0)
Total AIG shareholders' equity	(96,152.0)	(99,414.0)
Total equity`	(96,152.0)	(99,414.0)
Total liabilities and equity	$ (130,960.0)	$ (141,485.0)

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EQUITY (Details - Rollforward of Accumulated other comprehensive income) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			$ 10,617
Change in unrealized appreciation (depreciation) of investments	$ (4,574)	$ 2,744	(3,544)	$ 5,703
Change in unrealized appreciation (depreciation) of investments	(11)	11	(112)	92
Changes in foreign currency translation adjustments	(52)	73	(684)	(29)
Less: Income tax expense (benefit)	1,563	(413)	1,272	(628)
Deferred tax asset (liability)	(25)	15	4	23
Deferred tax asset (liability)	1,583	(389)	1,092	(563)
Deferred tax asset (liability)	15	(26)	188	(82)
Deferred tax asset (liability)	(10)	(13)	(12)	(6)
Other comprehensive income (loss)	(3,037)	2,426	(3,000)	5,151
Other comprehensive income (loss)	(36)	26	(108)	115
Other comprehensive income (loss)	(2,991)	2,355	(2,452)	5,140
Other comprehensive income (loss)	(37)	47	(496)	(111)
Other comprehensive income (loss)	27	(2)	56	7
Balance, end of period, net of tax	7,620		7,620
Accumulated Other Comprehensive Income (Loss)
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			10,617	6,360
Change in unrealized appreciation (depreciation) of investments			(5,038)	7,716
Change in deferred acquisition costs adjustment and other			486	(593)
Change in future policy benefits			896	(1,328)
Changes in foreign currency translation adjustments			(684)	(29)
Net actuarial gain (loss)			91	37
Prior service (cost) credit			(23)	(24)
Less: Income tax expense (benefit)			1,272	(628)
Other comprehensive income (loss)			(3,000)	5,151
Noncontrolling interests			(3)	0
Balance, end of period, net of tax	7,620	11,511	7,620	11,511
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			1,043	936
Change in unrealized appreciation (depreciation) of investments			(195)	199
Change in deferred acquisition costs adjustment and other			(9)	36
Change in future policy benefits			92	(143)
Deferred tax asset (liability)			4	23
Other comprehensive income (loss)			(108)	115
Balance, end of period, net of tax	935	1,051	935	1,051
Unrealized Appreciation (Depreciation) of All Other Investments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			12,327	6,789
Change in unrealized appreciation (depreciation) of investments			(4,843)	7,517
Change in deferred acquisition costs adjustment and other			495	(629)
Change in future policy benefits			804	(1,185)
Deferred tax asset (liability)			1,092	(563)
Other comprehensive income (loss)			(2,452)	5,140
Noncontrolling interests			0	0
Balance, end of period, net of tax	9,875	11,929	9,875	11,929
Foreign Currency Translation Adjustments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			(1,784)	(952)
Changes in foreign currency translation adjustments			(684)	(29)
Deferred tax asset (liability)			188	(82)
Other comprehensive income (loss)			(496)	(111)
Noncontrolling interests			(3)	0
Balance, end of period, net of tax	(2,277)	(1,063)	(2,277)	(1,063)
Change in Retirement Plan Liabilities Adjustment
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			(969)	(413)
Net actuarial gain (loss)			91	37
Prior service (cost) credit			(23)	(24)
Deferred tax asset (liability)			(12)	(6)
Other comprehensive income (loss)			56	7
Balance, end of period, net of tax	$ (913)	$ (406)	$ (913)	$ (406)

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INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Available-for-sale Securities Disclosures
Increase (decrease) in unrealized appreciation (depreciation) of investments	$ (6,309)	$ 3,777	$ (5,038)	$ 7,716
Fixed maturity securities
Available-for-sale Securities Disclosures
Increase (decrease) in unrealized appreciation (depreciation) of investments	(6,559)	3,644	(4,403)	7,638
Equity securities
Available-for-sale Securities Disclosures
Increase (decrease) in unrealized appreciation (depreciation) of investments	287	173	(95)	45
Other investments
Available-for-sale Securities Disclosures
Increase (decrease) in unrealized appreciation (depreciation) of investments	$ (37)	$ (40)	$ (540)	$ 33

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EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator for EPS:
Income (loss) from continuing operations	$ 1,775	$ 3,006	$ 4,251	$ 4,665
Less: Net income from continuing operations attributable to noncontrolling interests	(9)	(37)	0	(34)
Income (loss) attributable to AIG common shareholders from continuing operations	1,784	3,043	4,251	4,699
Income (loss) from discontinued operations, net of income tax expense	16	30	17	(17)
Net income (loss) attributable to AIG common shareholders	$ 1,800	$ 3,073	$ 4,268	$ 4,682
Denominator for EPS:
Weighted average shares outstanding - basic	1,329,157,366	1,442,397,111	1,347,452,833	1,450,776,629
Dilutive shares	36,233,065	22,279,219	28,873,138	17,587,654
Weighted average shares outstanding - diluted	1,365,390,431	1,464,676,330	1,376,325,971	1,468,364,283
Basic:
Income from continuing operations	$ 1.34	$ 2.11	$ 3.16	$ 3.24
Income (loss) from discontinued operations	0.01	0.02	0.01	(0.01)
Net Income (loss) attributable to AIG - basic (in dollars per share)	1.35	2.13	3.17	3.23
Diluted:
Income from continuing operations	1.31	2.08	3.09	3.2
Income (loss) from discontinued operations	0.01	0.02	0.01	(0.01)
Net Income (loss) attributable to AIG - diluted (in dollars per share)	$ 1.32	$ 2.1	$ 3.1	$ 3.19
Basic and diluted:
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive	200,000	300,000	300,000	300,000

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INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	$ 1,791	$ 3,036	$ 4,268	$ 4,648
Other comprehensive income (loss)	(3,037)	2,426	(3,000)	5,151
Comprehensive income (loss)	(1,246)	5,462	1,268	9,799
Total comprehensive income (loss) attributable to noncontrolling interests	(9)	(37)	(3)	(34)
Comprehensive income (loss) attributable to AIG	(1,237)	5,499	1,271	9,833
AIG (As Guarantor)
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	1,800	3,073	4,268	4,682
Other comprehensive income (loss)	(3,037)	2,426	(2,997)	5,151
Comprehensive income (loss)	(1,237)	5,499	1,271	9,833
Total comprehensive income (loss) attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to AIG	(1,237)	5,499	1,271	9,833
AIGLH
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	708	575	1,513	1,419
Other comprehensive income (loss)	3,582	1,287	4,490	2,781
Comprehensive income (loss)	4,290	1,862	6,003	4,200
Total comprehensive income (loss) attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to AIG	4,290	1,862	6,003	4,200
Other Subsidiaries
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	2,351	3,633	5,091	5,478
Other comprehensive income (loss)	53,694	1,884	52,633	3,733
Comprehensive income (loss)	56,045	5,517	57,724	9,211
Total comprehensive income (loss) attributable to noncontrolling interests	(9)	(37)	(3)	(34)
Comprehensive income (loss) attributable to AIG	56,054	5,554	57,727	9,245
Reclassifications and Eliminations
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	(3,068)	(4,245)	(6,604)	(6,931)
Other comprehensive income (loss)	(57,276)	(3,171)	(57,126)	(6,514)
Comprehensive income (loss)	(60,344)	(7,416)	(63,730)	(13,445)
Total comprehensive income (loss) attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to AIG	$ (60,344)	$ (7,416)	$ (63,730)	$ (13,445)

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EMPLOYEE BENEFITS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Pensions
Components of net periodic benefit cost:
Service cost	$ 61	$ 54	$ 124	$ 109
Interest cost	61	65	122	129
Expected return on assets	(78)	(76)	(156)	(153)
Amortization of prior service (credit) cost	(8)	(9)	(17)	(18)
Amortization of net (gain) loss	35	13	70	26
Other	(1)		(1)
Net periodic benefit cost	70	47	142	93
Contributed to pension plans			108
Estimates additional contribution to pension plans for the remainder of 2015			65
U.S. Pension Plans
Components of net periodic benefit cost:
Service cost	51	44	103	88
Interest cost	55	57	110	114
Expected return on assets	(72)	(71)	(144)	(142)
Amortization of prior service (credit) cost	(8)	(9)	(16)	(17)
Amortization of net (gain) loss	33	11	65	22
Net periodic benefit cost	59	32	118	65
Non U.S. Pension Plans
Components of net periodic benefit cost:
Service cost	10	10	21	21
Interest cost	6	8	12	15
Expected return on assets	(6)	(5)	(12)	(11)
Amortization of prior service (credit) cost	0	0	(1)	(1)
Amortization of net (gain) loss	2	2	5	4
Other	(1)		(1)
Net periodic benefit cost	11	15	24	28
Postretirement Plans
Components of net periodic benefit cost:
Service cost	2	2	5	3
Interest cost	2	3	5	6
Expected return on assets	0	0	0	0
Amortization of prior service (credit) cost	(2)	(3)	(5)	(5)
Amortization of net (gain) loss	0	0	0	0
Net periodic benefit cost	2	2	5	4
U.S. Postretirement Plans
Components of net periodic benefit cost:
Service cost	1	1	3	2
Interest cost	2	3	4	5
Expected return on assets	0	0	0	0
Amortization of prior service (credit) cost	(2)	(3)	(5)	(5)
Amortization of net (gain) loss	0	0	0	0
Net periodic benefit cost	1	1	2	2
Non U.S. Postretirement Plans
Components of net periodic benefit cost:
Service cost	1	1	2	1
Interest cost	0	0	1	1
Expected return on assets	0	0	0	0
Amortization of prior service (credit) cost	0	0	0	0
Amortization of net (gain) loss	0	0	0	0
Net periodic benefit cost	$ 1	$ 1	$ 3	$ 2

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CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) - Jun. 30, 2015 - USD ($) $ in Millions	Total
ALICO
Guarantees
Payments made or placed in escrow accounts at end of period	$ 19
Other Operations | AIG Financial Products
Guarantees
Amount outstanding under standby letters of credit at end of period	214
Indemnifications | ALICO
Guarantees
Various deductible amounts under indemnifications	$ 0

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BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2015

BASIS OF PRESENTATION

Sale of ILFC

Sale of ILFC and shares of AerCap

On May 14, 2014, we completed the sale of 100 percent of the common stock of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. (AerCap), in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares (the AerCap Transaction). The total value of the consideration was based in part on AerCap’s closing price per share of $47.01 on May 13, 2014. ILFC’s results of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Condensed Consolidated Statements of Income through the date of the completion of the sale.

In June 2015, we sold 86.9million ordinary shares of AerCap by means of an underwritten public offering of 71.2million ordinary shares and a private sale of 15.7million ordinary shares to AerCap. We received cash proceeds of approximately $3.7 billion, reflecting proceeds of approximately $3.4 billion from the underwritten offering and cash proceeds of $250 million from the private sale of shares to AerCap. In connection with the closing of the private sale of shares to AerCap, we also received $500 million of 6.50% fixed-to-floating rate junior subordinated notes issued by AerCap Global Aviation Trust and guaranteed by AerCap and certain of its subsidiaries. These notes, included in Bonds available for sale, mature in 2045 and are callable beginning in 2025. Our remaining 10.7 million ordinary shares of AerCap are included in Common and preferred stock available for sale. We accounted for our interest in AerCap using the equity method of accounting through the date of sale.

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of:

• income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset;
• liability for unpaid losses and loss adjustment expenses;
• reinsurance assets;
• valuation of future policy benefit liabilities and timing and extent of loss recognition;
• valuation of liabilities for guaranteed benefit features of variable annuity products;
• estimated gross profits to value deferred acquisition costs for investment-oriented products;
• impairment charges, including other-than-temporary impairments on available for sale securities, impairments on investments in life settlements and goodwill impairment;
• liability for legal contingencies; and
• fair value measurements of certain financial assets and liabilities.

These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.

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INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	$ 245,302	$ 245,237
Available for sale securities, Gross Unrealized Gains	17,420	20,890
Available for sale securities, Gross Unrealized Losses	(2,901)	(1,873)
Available for sale securities, Fair Value	259,821	264,254
AOCI- OTTI
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Other-Than-Temporary Impairments in AOCI	1,881	2,080
Bonds available for sale
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	242,917	243,307
Available for sale securities, Gross Unrealized Gains	14,990	18,371
Available for sale securities, Gross Unrealized Losses	(2,841)	(1,819)
Available for sale securities, Fair Value	255,066	259,859
Other details of available for sale securities
Available for sale securities not rated or rated below investment grade	35,900	35,100
Bonds available for sale | AOCI- OTTI
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Other-Than-Temporary Impairments in AOCI	1,881	2,080
Bonds available for sale | U.S. government and government sponsored entities
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	2,364	2,806
Available for sale securities, Gross Unrealized Gains	164	204
Available for sale securities, Gross Unrealized Losses	(14)	(18)
Available for sale securities, Fair Value	2,514	2,992
Bonds available for sale | U.S. government and government sponsored entities | AOCI- OTTI
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Other-Than-Temporary Impairments in AOCI	0	0
Bonds available for sale | Obligations of states, municipalities and political subdivisions
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	26,610	25,979
Available for sale securities, Gross Unrealized Gains	1,224	1,729
Available for sale securities, Gross Unrealized Losses	(172)	(49)
Available for sale securities, Fair Value	27,662	27,659
Bonds available for sale | Obligations of states, municipalities and political subdivisions | AOCI- OTTI
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Other-Than-Temporary Impairments in AOCI	15	(13)
Bonds available for sale | Non-U.S. government
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	18,441	20,280
Available for sale securities, Gross Unrealized Gains	911	966
Available for sale securities, Gross Unrealized Losses	(203)	(151)
Available for sale securities, Fair Value	19,149	21,095
Bonds available for sale | Non-U.S. government | AOCI- OTTI
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Other-Than-Temporary Impairments in AOCI	0	0
Bonds available for sale | Corporate debt
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	134,361	134,961
Available for sale securities, Gross Unrealized Gains	8,386	10,594
Available for sale securities, Gross Unrealized Losses	(1,884)	(1,122)
Available for sale securities, Fair Value	140,863	144,433
Bonds available for sale | Corporate debt | AOCI- OTTI
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Other-Than-Temporary Impairments in AOCI	29	64
Bonds available for sale | Mortgage-backed, asset-backed and collateralized
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	61,141	59,281
Available for sale securities, Gross Unrealized Gains	4,305	4,878
Available for sale securities, Gross Unrealized Losses	(568)	(479)
Available for sale securities, Fair Value	64,878	63,680
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | AOCI- OTTI
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Other-Than-Temporary Impairments in AOCI	1,837	2,029
Bonds available for sale | Residential mortgage backed securities (RMBS)
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	33,448	34,377
Available for sale securities, Gross Unrealized Gains	3,133	3,435
Available for sale securities, Gross Unrealized Losses	(333)	(292)
Available for sale securities, Fair Value	36,248	37,520
Bonds available for sale | Residential mortgage backed securities (RMBS) | AOCI- OTTI
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Other-Than-Temporary Impairments in AOCI	1,582	1,767
Bonds available for sale | Commercial mortgage-backed securities (CMBS)
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	12,944	12,129
Available for sale securities, Gross Unrealized Gains	687	815
Available for sale securities, Gross Unrealized Losses	(109)	(59)
Available for sale securities, Fair Value	13,522	12,885
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | AOCI- OTTI
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Other-Than-Temporary Impairments in AOCI	212	215
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS)
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	14,749	12,775
Available for sale securities, Gross Unrealized Gains	485	628
Available for sale securities, Gross Unrealized Losses	(126)	(128)
Available for sale securities, Fair Value	15,108	13,275
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | AOCI- OTTI
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Other-Than-Temporary Impairments in AOCI	43	47
Equity securities available for sale
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	2,385	1,930
Available for sale securities, Gross Unrealized Gains	2,430	2,519
Available for sale securities, Gross Unrealized Losses	(60)	(54)
Available for sale securities, Fair Value	4,755	4,395
Equity securities available for sale | Common Stock
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	1,499	1,185
Available for sale securities, Gross Unrealized Gains	2,364	2,461
Available for sale securities, Gross Unrealized Losses	(12)	(17)
Available for sale securities, Fair Value	3,851	3,629
Equity securities available for sale | Preferred Stock
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	21	21
Available for sale securities, Gross Unrealized Gains	4	4
Available for sale securities, Gross Unrealized Losses	0	0
Available for sale securities, Fair Value	25	25
Equity securities available for sale | Mutual Funds
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for sale securities, Amortized Cost or Cost	865	724
Available for sale securities, Gross Unrealized Gains	62	54
Available for sale securities, Gross Unrealized Losses	(48)	(37)
Available for sale securities, Fair Value	$ 879	$ 741

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FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issues and settlements) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2010	Jun. 30, 2015	Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, Sales, Issues and Settlements, Net, assets	$ (1,509)	$ 209		$ (1,343)	$ 1,187
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			$ 14	18	37
Transfers out Level 3 at end of reporting period, net gains (losses) not included in realized and unrealized gains and losses related to Level 3 for the period.			$ 25	3	2
Liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	2	0		17	1
Sales, liabilities	(112)	(46)		(185)	(58)
Settlements, liabilities	197	75		259	137
Purchases, Sales, Issues and Settlements, Net, liabilities	87	29		91	80
Policyholder contract deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	0	0		0	0
Sales, liabilities	(112)	(46)		(185)	(58)
Settlements, liabilities	(21)	43		1	84
Purchases, Sales, Issues and Settlements, Net, liabilities	(133)	(3)		(184)	26
Derivative liabilities, net
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	2	0		17	1
Sales, liabilities	0	0		0	0
Settlements, liabilities	212	18		240	20
Purchases, Sales, Issues and Settlements, Net, liabilities	214	18		257	21
Long-term debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, liabilities	0	0		0	0
Sales, liabilities	0	0		0	0
Settlements, liabilities	6	14		18	33
Purchases, Sales, Issues and Settlements, Net, liabilities	6	14		18	33
Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	1,238	1,887		3,668	4,773
Sales, assets	(712)	(64)		(1,524)	(166)
Settlements, assets	(2,035)	(1,614)		(3,487)	(3,420)
Purchases, Sales, Issues and Settlements, Net, assets	(1,509)	209		(1,343)	1,187
Bonds available for sale
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	1,098	1,700		2,829	4,128
Sales, assets	(331)	(41)		(475)	(125)
Settlements, assets	(1,455)	(933)		(2,248)	(1,910)
Purchases, Sales, Issues and Settlements, Net, assets	(688)	726		106	2,093
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	116	48		223	936
Sales, assets	0	(27)		(22)	(32)
Settlements, assets	(23)	(14)		(43)	(51)
Purchases, Sales, Issues and Settlements, Net, assets	93	7		158	853
Bonds available for sale | Non-U.S. government
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	2	5		8	7
Sales, assets	0	0		0	0
Settlements, assets	(2)	(1)		(4)	(1)
Purchases, Sales, Issues and Settlements, Net, assets	0	4		4	6
Bonds available for sale | Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	182	63		188	119
Sales, assets	(10)	(1)		(60)	(8)
Settlements, assets	(257)	(133)		(274)	(178)
Purchases, Sales, Issues and Settlements, Net, assets	(85)	(71)		(146)	(67)
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	446	665		1,407	1,752
Sales, assets	(143)	(11)		(165)	(26)
Settlements, assets	(733)	(587)		(1,318)	(1,102)
Purchases, Sales, Issues and Settlements, Net, assets	(430)	67		(76)	624
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	70	27		142	92
Sales, assets	0	0		(27)	(57)
Settlements, assets	(53)	(34)		(68)	(92)
Purchases, Sales, Issues and Settlements, Net, assets	17	(7)		47	(57)
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	282	892		861	1,222
Sales, assets	(178)	(2)		(201)	(2)
Settlements, assets	(387)	(164)		(541)	(486)
Purchases, Sales, Issues and Settlements, Net, assets	(283)	726		119	734
Other Bond securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	76	44		535	206
Sales, assets	(378)	(22)		(460)	(40)
Settlements, assets	(424)	(530)		(935)	(1,112)
Purchases, Sales, Issues and Settlements, Net, assets	(726)	(508)		(860)	(946)
Other Bond securities | Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets					0
Sales, assets					0
Settlements, assets					0
Other Bond securities | Residential mortgage backed securities (RMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	64	21		309	162
Sales, assets	(4)	(14)		(10)	(19)
Settlements, assets	(44)	(39)		(79)	(71)
Purchases, Sales, Issues and Settlements, Net, assets	16	(32)		220	72
Other Bond securities | Commercial mortgage-backed securities (CMBS)
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0		0	0
Sales, assets	(43)	0		(79)	(6)
Settlements, assets	(11)	(40)		(75)	(125)
Purchases, Sales, Issues and Settlements, Net, assets	(54)	(40)		(154)	(131)
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	12	23		226	44
Sales, assets	(331)	(8)		(371)	(15)
Settlements, assets	(369)	(451)		(781)	(916)
Purchases, Sales, Issues and Settlements, Net, assets	(688)	(436)		(926)	(887)
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	0		0	0
Sales, assets	(2)	0		(2)	0
Settlements, assets	(1)	0		(1)	0
Purchases, Sales, Issues and Settlements, Net, assets	(3)	0		(3)	0
Other invested assets
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	64	137		304	433
Sales, assets	(1)	(1)		(587)	(1)
Settlements, assets	(155)	(151)		(303)	(398)
Purchases, Sales, Issues and Settlements, Net, assets	(92)	(15)		(586)	34
Mortgage and other loans receivable, net of allowance
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Purchases, assets	0	6		0	6
Purchases, Sales, Issues and Settlements, Net, assets	$ 0	$ 6		$ 0	$ 6

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EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reclassification of significant items out of Accumulated Other Comprehensive Income
Other realized capital gains	$ (278)	$ (210)	$ (1,716)	$ (112)
Amortization of deferred policy acquisition costs	1,356	1,396	2,706	2,701
Policyholder benefits and losses incurred	7,100	6,771	13,651	13,568
Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification of significant items out of Accumulated Other Comprehensive Income
Total reclassifications for the period	122	174	584	410
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized | Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification of significant items out of Accumulated Other Comprehensive Income
Other realized capital gains	46	10	55	18
Total reclassifications for the period	46	10	55	18
Unrealized appreciation (depreciation) of all other investments | Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification of significant items out of Accumulated Other Comprehensive Income
Other realized capital gains	112	207	624	411
Amortization of deferred policy acquisition costs	(30)	(30)	(65)	5
Policyholder benefits and losses incurred	17	(12)	17	(22)
Total reclassifications for the period	99	165	576	394
Change in retirement plan liabilities adjustment | Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification of significant items out of Accumulated Other Comprehensive Income
Prior-service costs	11	12	23	24
Actuarial gains/(losses)	(34)	(13)	(70)	(26)
Total reclassifications for the period	$ (23)	$ (1)	$ (47)	$ (2)

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BASIS OF PRESENTATION (Details) $ / shares in Units, shares in Millions, $ in Millions		6 Months Ended
	May. 14, 2014 USD ($) shares	Jun. 30, 2015 USD ($) item $ / shares shares	Dec. 31, 2014 $ / shares	May. 13, 2014 $ / shares
Basis of Presentation
Common stock, par value (in dollars per share) | $ / shares		$ 2.5	$ 2.5
Interest rate (as a percent)		6.50%
Non-cash consideration received from sale of AerCap | $		$ 500
International Lease Finance Corporation (ILFC)
Basis of Presentation
Percentage of common stock agreed to be sold	100.00%
Consideration in cash | $	$ 7,600
Number of shares received	97.6
Aer Cap
Basis of Presentation
Closing price per share (in dollars per share) | $ / shares				$ 47.01
Equity Method Investment, Number of shares sold		86.9
Number of shares remaining		10.7
Cash Proceeds from Sales of AerCap | $		$ 3,700
Bonds available for sale, maturity year		2045
Aer Cap | CallOptionMember
Basis of Presentation
Bonds available for sale, maturity year		2025
Aer Cap | Private Placement
Basis of Presentation
Equity Method Investment, Number of shares sold		15.7
Cash Proceeds from Sales of AerCap | $		$ 250
Aer Cap | Underwritten public offering
Basis of Presentation
Equity Method Investment, Number of shares sold		71.2
Cash Proceeds from Sales of AerCap | $		$ 3,400
Minimum
Basis of Presentation
Number of Countries in which the entity operates | item		100

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INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Available-for-sale Securities Disclosures
Fixed Maturity Securities in a Loss Position Available for Sale , Amortized Cost, Total	$ 245,302	$ 245,237
Fixed Maturity Securities Available for Sale, Fair Value, Total	255,066	259,859
Fixed Maturity Securities in a Loss Position AFS
Available-for-sale Securities Disclosures
Due in one year or less, Amortized Cost	927	637
Due after one year through five years, Amortized Cost	6,317	6,669
Due after five years through ten years, Amortized Cost	16,885	12,873
Due after ten years, Amortized Cost	23,313	10,255
Mortgage-backed, asset-backed and collateralized, Amortized Cost	18,303	17,120
Fixed Maturity Securities in a Loss Position Available for Sale , Amortized Cost, Total	65,745	47,554
Due in one year or less, Fair Value	912	620
Due after one year through five years, Fair Value	6,171	6,529
Due after five years through ten years, Fair Value	16,245	12,338
Due after ten years, Fair Value	21,841	9,607
Mortgage-backed, asset-backed and collateralized, Fair Value	17,735	16,641
Fixed Maturity Securities Available for Sale, Fair Value, Total	62,904	45,735
Bonds available for sale
Available-for-sale Securities Disclosures
Due in one year or less, Amortized Cost	11,166	9,821
Due after one year through five years, Amortized Cost	46,392	48,352
Due after five years through ten years, Amortized Cost	58,311	62,685
Due after ten years, Amortized Cost	65,907	63,168
Mortgage-backed, asset-backed and collateralized, Amortized Cost	61,141	59,281
Fixed Maturity Securities in a Loss Position Available for Sale , Amortized Cost, Total	242,917	243,307
Due in one year or less, Fair Value	11,331	9,975
Due after one year through five years, Fair Value	49,034	50,873
Due after five years through ten years, Fair Value	60,423	65,889
Due after ten years, Fair Value	69,400	69,442
Mortgage-backed, asset-backed and collateralized, Fair Value	64,878	63,680
Fixed Maturity Securities Available for Sale, Fair Value, Total	$ 255,066	$ 259,859

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DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative instruments gain (loss):
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships	$ (21)	$ 0	$ 73	$ 3
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Net realized capital gains (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	0	0	1	1
Gain (loss) recognized in earnings on hedged items	0	0	(1)	(2)
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0	0
Gain Loss On Fair Value Hedges Recognized In Earnings Other	0	0	0	(1)
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Other income (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	0	0	0	0
Gain (loss) recognized in earnings on hedged items	2	10	5	28
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0	0
Gain Loss On Fair Value Hedges Recognized In Earnings Other	2	10	5	28
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Loss on extinguishment of debt
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	0	0	0	0
Gain (loss) recognized in earnings on hedged items	0	0	13	50
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0	0
Gain Loss On Fair Value Hedges Recognized In Earnings Other	0	0	13	50
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Interest credited to policyholder account balances
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	0	0	0	0
Gain (loss) recognized in earnings on hedged items	0	0	0	(1)
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0	0
Gain Loss On Fair Value Hedges Recognized In Earnings Other	0	0	0	(1)
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Net realized capital gains (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(60)	32	72	56
Gain (loss) recognized in earnings on hedged items	73	(27)	(56)	(59)
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	13	(4)	13	(12)
Gain Loss On Fair Value Hedges Recognized In Earnings Other	0	9	3	9
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Other income (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	0	0	0	0
Gain (loss) recognized in earnings on hedged items	4	0	10	0
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0	0
Gain Loss On Fair Value Hedges Recognized In Earnings Other	4	0	10	0
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Loss on extinguishment of debt
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	0	0	0	0
Gain (loss) recognized in earnings on hedged items	1	0	17	0
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0	0
Gain Loss On Fair Value Hedges Recognized In Earnings Other	1	0	17	0
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Interest credited to policyholder account balances
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	0	0	0	0
Gain (loss) recognized in earnings on hedged items	0	(1)	(1)	(1)
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	0	0
Gain Loss On Fair Value Hedges Recognized In Earnings Other	0	(1)	(1)	(1)
Derivatives designated as hedging instruments | Equity contracts | Fair value hedging | Net realized capital gains (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(13)	(15)	(19)	(14)
Gain (loss) recognized in earnings on hedged items	13	15	18	14
Gain (loss) recognized in earnings for ineffective portion	0	0	0	0
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net	0	0	(1)	0
Gain Loss On Fair Value Hedges Recognized In Earnings Other	0	0	0	0
Derivatives not designated as hedging instruments
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	314	187	898	(21)
Derivatives not designated as hedging instruments | Policy fees
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	20	16	39	31
Derivatives not designated as hedging instruments | Net investment income
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(13)	(3)	14	(4)
Derivatives not designated as hedging instruments | Net realized capital gains (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	305	82	476	(194)
Derivatives not designated as hedging instruments | Other income (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	8	89	370	138
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(6)	3	(1)	8
Derivatives not designated as hedging instruments | Interest rate contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(428)	49	(67)	187
Derivatives not designated as hedging instruments | Foreign exchange contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(52)	37	270	23
Derivatives not designated as hedging instruments | Equity contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	815	3	547	(425)
Embedded derivative gains (losses)	847	40	669	(356)
Derivatives not designated as hedging instruments | Commodity contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	0	0	(1)	1
Derivatives not designated as hedging instruments | Credit contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	13	75	160	154
Derivatives not designated as hedging instruments | Other contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	$ (34)	$ 23	$ (11)	$ 39

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LENDING ACTIVITIES (Details - Composition of Mortgage and other loans receivable) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Composition of Mortgages and other loans receivable
Total mortgage and other loans receivable	$ 27,405	$ 25,261
Allowance for losses	(262)	(271)	$ (281)	$ (312)
Mortgage and other loans receivable, net	27,143	24,990
Commercial mortgages
Composition of Mortgages and other loans receivable
Total mortgage and other loans receivable	19,882	18,909
Allowance for losses	$ (151)	$ (159)	$ (188)	$ (201)
Commercial mortgages | California
Composition of Mortgages and other loans receivable
Percentage of mortgage loans in geographic area	13.00%	14.00%
Commercial mortgages | New York
Composition of Mortgages and other loans receivable
Percentage of mortgage loans in geographic area	21.00%	18.00%
Life insurance policy loans
Composition of Mortgages and other loans receivable
Total mortgage and other loans receivable	$ 2,645	$ 2,710
Commercial loans, other loans and notes receivable
Composition of Mortgages and other loans receivable
Total mortgage and other loans receivable	$ 4,878	$ 3,642

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FAIR VALUE MEASUREMENTS (Details - Difference between fair values and the aggregate contractual principal amounts of long-term debt) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Mortgage and other loans receivable, Fair Value	$ 6	$ 6
Long-term debt, Fair Value	4,269	5,466
Fair Value Option
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Mortgage and other loans receivable, Fair Value	6	6
Mortgage and other loans receivable, Outstanding Principal Amount	4	4
Mortgage and other loans receivable, Difference	2	2
Long-term debt, Fair Value	4,269	5,466
Long-term debt, Outstanding Principal Amount	3,173	4,101
Long-term debt, Difference	$ 1,096	$ 1,365

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Supplementary Disclosure of Condensed Consolidated Cash Flow Information - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash paid during the period for:
Interest	$ 760	$ 1,727
Taxes	338	482
Non-cash investing/financing activities:
Interest credited to policyholder contract deposits included in financing activities	1,826	1,937
Non-cash consideration received from sale of ILFC		$ 4,586
Non-cash consideration received from sale of AerCap	$ 500

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LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgages) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015 USD ($) loan	Dec. 31, 2014 USD ($) loan	Jun. 30, 2014 USD ($)	Dec. 31, 2013 USD ($)
Credit quality indicators for commercial mortgage loans
Mortgage and other loans receivable, net	$ 27,143	$ 24,990
Allowance for losses	262	271	$ 281	$ 312
Apartments
Credit quality indicators for commercial mortgage loans
In good standing	3,284	3,384
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	3,284	3,384
Allowance for losses	21	3
Offices
Credit quality indicators for commercial mortgage loans
In good standing	6,810	6,100
Restructured	409	343
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	75
Mortgage and other loans receivable, net	7,219	6,518
Allowance for losses	67	86
Retail
Credit quality indicators for commercial mortgage loans
In good standing	4,402	3,807
Restructured	6	7
90 days or less delinquent	0	10
Greater than 90 days delinquent or in process of foreclosure	10	0
Mortgage and other loans receivable, net	4,418	3,824
Allowance for losses	27	28
Industrial
Credit quality indicators for commercial mortgage loans
In good standing	2,002	1,689
Restructured	31	0
90 days or less delinquent	6	0
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	2,039	1,689
Allowance for losses	13	22
Hotel
Credit quality indicators for commercial mortgage loans
In good standing	1,837	1,660
Restructured	16	17
90 days or less delinquent	0	0
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	1,853	1,677
Allowance for losses	13	6
Others
Credit quality indicators for commercial mortgage loans
In good standing	1,069	1,812
Restructured	0	0
90 days or less delinquent	0	5
Greater than 90 days delinquent or in process of foreclosure	0	0
Mortgage and other loans receivable, net	1,069	1,817
Allowance for losses	$ 10	$ 14
Commercial mortgages
Credit quality indicators for commercial mortgage loans
Number of loans in good standing | loan	976	1,007
Number of loans restructured | loan	10	7
Number of loans 90 days or less delinquent | loan	3	6
Number of loans greater than 90 days delinquent or in process of foreclosure | loan	5	4
Number of Loans | loan	994	1,024
In good standing	$ 19,404	$ 18,452
Restructured	462	367
90 days or less delinquent	6	15
Greater than 90 days delinquent or in process of foreclosure	10	75
Mortgage and other loans receivable, net	19,882	18,909
Allowance for losses	$ 151	$ 159
Percentage of loans that are current as to payments of principal and interest	98.00%	98.00%
Percentage restructured	2.00%	2.00%
Percentage Total	100.00%	100.00%
Percentage of loans with allowance for losses	1.00%	1.00%
Percentage of current commercial mortgages held	99.00%
Percentage greater than 90 days delinquent or in foreclosure	0.00%

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FAIR VALUE MEASUREMENTS (Details - Quantitative Information About Level 3 Fair Value Measurements - Assets) - Level 3 - Fair Value by Liability Class [Domain] $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Corporate debt
Fair value inputs, assets, quantitative information
Fair Value	$ 1,519
Corporate debt | Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value		$ 1,145
Corporate debt | Discounted cash flow | Minimum
Fair value inputs, assets, quantitative information
Yield	4.27%	3.46%
Corporate debt | Discounted cash flow | Maximum
Fair value inputs, assets, quantitative information
Yield	7.64%	8.75%
Corporate debt | Discounted cash flow | Weighted-average
Fair value inputs, assets, quantitative information
Yield	5.96%	6.10%
Residential mortgage backed securities
Fair value inputs, assets, quantitative information
Fair Value	$ 17,727
Residential mortgage backed securities | Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value		$ 17,353
Residential mortgage backed securities | Discounted cash flow | Minimum
Fair value inputs, assets, quantitative information
Yield	2.93%	2.67%
Constant prepayment rate	0.88%	0.59%
Loss severity	46.61%	46.04%
Constant default rate	3.54%	3.67%
Residential mortgage backed securities | Discounted cash flow | Maximum
Fair value inputs, assets, quantitative information
Yield	6.27%	6.64%
Constant prepayment rate	9.02%	9.35%
Loss severity	79.61%	79.56%
Constant default rate	8.93%	9.96%
Residential mortgage backed securities | Discounted cash flow | Weighted-average
Fair value inputs, assets, quantitative information
Yield	4.60%	4.65%
Constant prepayment rate	4.95%	4.97%
Loss severity	63.11%	62.80%
Constant default rate	6.23%	6.82%
Certain CDO/ABS
Fair value inputs, assets, quantitative information
Fair Value	$ 3,819
Certain CDO/ABS | Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value		$ 5,282
Certain CDO/ABS | Discounted cash flow | Minimum
Fair value inputs, assets, quantitative information
Yield	4.40%	4.70%
Constant prepayment rate	6.70%	6.40%
Loss severity	39.90%	42.90%
Constant default rate	2.50%	2.50%
Certain CDO/ABS | Discounted cash flow | Maximum
Fair value inputs, assets, quantitative information
Yield	8.20%	9.70%
Constant prepayment rate	13.10%	12.80%
Loss severity	55.20%	60.30%
Constant default rate	13.50%	14.70%
Certain CDO/ABS | Discounted cash flow | Weighted-average
Fair value inputs, assets, quantitative information
Yield	7.00%	7.10%
Constant prepayment rate	9.40%	9.20%
Loss severity	47.70%	51.90%
Constant default rate	7.30%	7.80%
Commercial mortgage backed securities
Fair value inputs, assets, quantitative information
Fair Value	$ 2,638
Commercial mortgage backed securities | Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value		$ 2,687
Commercial mortgage backed securities | Discounted cash flow | Minimum
Fair value inputs, assets, quantitative information
Yield	0.00%	0.00%
Commercial mortgage backed securities | Discounted cash flow | Maximum
Fair value inputs, assets, quantitative information
Yield	17.59%	17.29%
Commercial mortgage backed securities | Discounted cash flow | Weighted-average
Fair value inputs, assets, quantitative information
Yield	5.97%	6.06%
CDO/ABS - Direct Investment book
Fair value inputs, assets, quantitative information
Fair Value	$ 0
CDO/ABS - Direct Investment book | Binomial Expansion Technique
Fair value inputs, assets, quantitative information
Fair Value		$ 0
CDO/ABS - Direct Investment book | Binomial Expansion Technique | Minimum
Fair value inputs, assets, quantitative information
Recovery rates	0.00%	0.00%
Diversity score	0	0
Weighted average life		3 months
CDO/ABS - Direct Investment book | Binomial Expansion Technique | Maximum
Fair value inputs, assets, quantitative information
Recovery rates	0.00%	0.00%
Diversity score	0	0
Weighted average life		10 years 5 months 26 days
CDO/ABS - Direct Investment book | Binomial Expansion Technique | Weighted-average
Fair value inputs, assets, quantitative information
Recovery rates	0.00%	0.00%
Diversity score	0	0
Weighted average life		3 years 11 months 5 days
Obligations of states, municipalities and political subdivisions
Fair value inputs, assets, quantitative information
Fair Value	$ 1,224
Obligations of states, municipalities and political subdivisions | Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value		$ 1,178
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Minimum
Fair value inputs, assets, quantitative information
Yield	4.32%	3.90%
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Maximum
Fair value inputs, assets, quantitative information
Yield	5.14%	4.62%
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Weighted-average
Fair value inputs, assets, quantitative information
Yield	4.73%	4.26%

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INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2015

INVESTMENTS

The amortized cost or cost and fair value of AIG's available for sale securities and other invested assets carried at fair value

										Other-Than-
		Amortized		Gross		Gross				Temporary
		Cost or		Unrealized		Unrealized		Fair		Impairments
(in millions)		Cost		Gains		Losses		Value		in AOCI(a)
June 30, 2015
Bonds available for sale:
U.S. government and government sponsored entities	$	2,364	$	164	$	(14)	$	2,514	$	-
Obligations of states, municipalities and political subdivisions		26,610		1,224		(172)		27,662		15
Non-U.S. governments		18,441		911		(203)		19,149		-
Corporate debt		134,361		8,386		(1,884)		140,863		29
Mortgage-backed, asset-backed and collateralized:
RMBS		33,448		3,133		(333)		36,248		1,582
CMBS		12,944		687		(109)		13,522		212
CDO/ABS		14,749		485		(126)		15,108		43
Total mortgage-backed, asset-backed and collateralized		61,141		4,305		(568)		64,878		1,837
Total bonds available for sale(b)		242,917		14,990		(2,841)		255,066		1,881
Equity securities available for sale:
Common stock		1,499		2,364		(12)		3,851		-
Preferred stock		21		4		-		25		-
Mutual funds		865		62		(48)		879		-
Total equity securities available for sale		2,385		2,430		(60)		4,755		-
Total	$	245,302	$	17,420	$	(2,901)	$	259,821	$	1,881
December 31, 2014
Bonds available for sale:
U.S. government and government sponsored entities	$	2,806	$	204	$	(18)	$	2,992	$	-
Obligations of states, municipalities and political subdivisions		25,979		1,729		(49)		27,659		(13)
Non-U.S. governments		20,280		966		(151)		21,095		-
Corporate debt		134,961		10,594		(1,122)		144,433		64
Mortgage-backed, asset-backed and collateralized:
RMBS		34,377		3,435		(292)		37,520		1,767
CMBS		12,129		815		(59)		12,885		215
CDO/ABS		12,775		628		(128)		13,275		47
Total mortgage-backed, asset-backed and collateralized		59,281		4,878		(479)		63,680		2,029
Total bonds available for sale(b)		243,307		18,371		(1,819)		259,859		2,080
Equity securities available for sale:
Common stock		1,185		2,461		(17)		3,629		-
Preferred stock		21		4		-		25		-
Mutual funds		724		54		(37)		741		-
Total equity securities available for sale		1,930		2,519		(54)		4,395		-
Total	$	245,237	$	20,890	$	(1,873)	$	264,254	$	2,080

(a) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date.

(b) At June 30,2015 and December 31,2014, bonds available for sale held by us that were below investment grade or not rated totaled $35.9 billion and $35.1 billion, respectively.

The fair value and gross unrealized losses on AIG's available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position

	Less than 12 Months				12 Months or More				Total
				Gross				Gross				Gross
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in millions)		Value		Losses		Value		Losses		Value		Losses
June 30, 2015
Bonds available for sale:
U.S. government and government sponsored entities	$	431	$	8	$	128	$	6	$	559	$	14
Obligations of states, municipalities and political
subdivisions		4,954		147		315		25		5,269		172
Non-U.S. governments		3,363		113		743		90		4,106		203
Corporate debt		31,074		1,351		4,161		533		35,235		1,884
RMBS		6,478		162		2,878		171		9,356		333
CMBS		3,040		82		610		27		3,650		109
CDO/ABS		3,136		39		1,593		87		4,729		126
Total bonds available for sale		52,476		1,902		10,428		939		62,904		2,841
Equity securities available for sale:
Common stock		85		12		1		-		86		12
Mutual funds		544		41		29		7		573		48
Total equity securities available for sale		629		53		30		7		659		60
Total	$	53,105	$	1,955	$	10,458	$	946	$	63,563	$	2,901
December 31, 2014
Bonds available for sale:
U.S. government and government sponsored entities	$	526	$	5	$	281	$	13	$	807	$	18
Obligations of states, municipalities and political
subdivisions		495		9		794		40		1,289		49
Non-U.S. governments		1,606		42		1,690		109		3,296		151
Corporate debt		12,132		450		11,570		672		23,702		1,122
RMBS		4,621		109		3,996		183		8,617		292
CMBS		220		1		2,087		58		2,307		59
CDO/ABS		3,857		50		1,860		78		5,717		128
Total bonds available for sale		23,457		666		22,278		1,153		45,735		1,819
Equity securities available for sale:
Common stock		88		16		2		1		90		17
Mutual funds		280		37		64		-		344		37
Total equity securities available for sale		368		53		66		1		434		54
Total	$	23,825	$	719	$	22,344	$	1,154	$	46,169	$	1,873

The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity

	Total Fixed Maturity Securities				Fixed Maturity Securities in a Loss
June 30, 2015	Available for Sale				Position Available for Sale
(in millions)		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	11,166	$	11,331	$	927	$	912
Due after one year through five years		46,392		49,034		6,317		6,171
Due after five years through ten years		58,311		60,423		16,885		16,245
Due after ten years		65,907		69,400		23,313		21,841
Mortgage-backed, asset-backed and collateralized		61,141		64,878		18,303		17,735
Total	$	242,917	$	255,066	$	65,745	$	62,904
December 31, 2014
Due in one year or less	$	9,821	$	9,975	$	637	$	620
Due after one year through five years		48,352		50,873		6,669		6,529
Due after five years through ten years		62,685		65,889		12,873		12,338
Due after ten years		63,168		69,442		10,255		9,607
Mortgage-backed, asset-backed and collateralized		59,281		63,680		17,120		16,641
Total	$	243,307	$	259,859	$	47,554	$	45,735

The gross realized gains and gross realized losses from sales of AIG's available for sale securities

	Three Months Ended June 30,								Six Months Ended June 30,
		2015				2014			2015					2014
		Gross		Gross		Gross		Gross		Gross		Gross		Gross		Gross
	Realized		Realized		Realized		Realized		Realized		Realized		Realized			Realized
(in millions)		Gains		Losses		Gains		Losses		Gains		Losses		Gains		Losses
Fixed maturity securities	$	194	$	59	$	194	$	13	$	343	$	177		$	410	$	44
Equity securities		24		3		39		4		520		8			69		6
Total	$	218	$	62	$	233	$	17	$	863	$	185		$	479	$	50

The fair value of AIG's other securities

		June 30, 2015				December 31, 2014
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	3,815	21	%	$	5,498	27	%
Obligations of states, municipalities and political subdivisions		75	-			122	1
Non-U.S. governments		2	-			2	-
Corporate debt		452	4			719	3
Mortgage-backed, asset-backed and collateralized:
RMBS		2,210	12			2,094	10
CMBS		867	5			1,077	5
CDO/ABS and other collateralized*		9,177	51			10,200	49
Total mortgage-backed, asset-backed and collateralized		12,254	68			13,371	64
Total fixed maturity securities		16,598	93			19,712	95
Equity securities		1,323	7			1,049	5
Total	$	17,921	100	%	$	20,761	100	%

* Includes $793 million and $859 million of U.S. Government agency backed ABS at June 30,2015 and December 31,2014, respectively.

Components of net investment income

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
Fixed maturity securities, including short-term investments	$	2,800	$	3,111	$	5,683	$	6,242
Equity securities		66		17		81		(68)
Interest on mortgage and other loans		347		311		686		629
Alternative investments*		694		547		1,383		1,472
Real estate		24		33		50		61
Other investments		12		(2)		50		9
Total investment income		3,943		4,017		7,933		8,345
Investment expenses		117		133		269		265
Net investment income	$	3,826	$	3,884	$	7,664	$	8,080

*Includes hedge funds, private equity funds, affordable housing partnerships, investments in life settlements and other investment partnerships.

Components of net realized capital gains (losses)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
Sales of fixed maturity securities	$	135	$	181	$	166	$	366
Sales of equity securities		21		35		512		63
Other-than-temporary impairments:
Severity		-		-		(2)		-
Change in intent		(88)		(1)		(112)		(6)
Foreign currency declines		(3)		(6)		(32)		(10)
Issuer-specific credit events		(70)		(44)		(138)		(93)
Adverse projected cash flows		(3)		(4)		(8)		(5)
Provision for loan losses		(13)		15		11		20
Foreign exchange transactions		66		(47)		320		(21)
Derivative instruments		288		73		496		(216)
Impairments on investments in life settlements		(72)		(45)		(142)		(87)
Other*		(135)		5		396		(1)
Net realized capital gains	$	126	$	162	$	1,467	$	10

* Includes realized gains due to the sale of Class B shares of Prudential Financial, Inc. and common shares of Springleaf Holdings, Inc. and realized losses on the sale of ordinary shares of AerCap.

Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investements

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	(6,559)	$	3,644	$	(4,403)	$	7,638
Equity securities		287		173		(95)		45
Other investments		(37)		(40)		(540)		33
Total Increase (decrease) in unrealized appreciation (depreciation) of investments	$	(6,309)	$	3,777	$	(5,038)	$	7,716

Credit impairments recognized in earnings for available for sale fixed maturity securities

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
Balance, beginning of period	$	2,466	$	3,389	$	2,659	$	3,872
Increases due to:
Credit impairments on new securities subject to impairment losses		35		14		50		22
Additional credit impairments on previously impaired securities		25		18		47		54
Reductions due to:
Credit impaired securities fully disposed of for which there was no
prior intent or requirement to sell		(108)		(82)		(150)		(412)
Accretion on securities previously impaired due to credit*		(180)		(173)		(368)		(361)
Other		-		-		-		(9)
Balance, end of period	$	2,238	$	3,166	$	2,238	$	3,166

* 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)	$	32,118
Cash flows expected to be collected*		25,976
Recorded investment in acquired securities		17,330

*Represents undiscounted expected cash flows, including both principal and interest.

Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date

(in millions)	June 30, 2015		December 31, 2014
Outstanding principal balance	$	17,232	$	16,962
Amortized cost		12,542		12,216
Fair value		13,669		13,462

Activity for accretable yield on Purchased Credit Impaired (PCI) Securities

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
Balance, beginning of period	$	6,765	$	7,170	$	6,865	$	6,940
Newly purchased PCI securities		170		247		415		769
Disposals		(13)		-		(13)		-
Accretion		(221)		(219)		(441)		(431)
Effect of changes in interest rate indices		(6)		(172)		(144)		(231)
Net reclassification from (to) non-accretable difference,
including effects of prepayments		138		16		151		(5)
Balance, end of period	$	6,833	$	7,042	$	6,833	$	7,042

Schedule of fair value of securities pledged to counterparties under secured financing transactions

(in millions)		June 30, 2015		December 31, 2014
Fixed maturity securities available for sale	$	843	$	-
Other bond securities, at fair value	$	176	$	2,122

Schedule of fair value of securities pledged to the entity under reverse repurchase agreements

(in millions)		June 30, 2015		December 31, 2014
Securities collateral pledged to us	$	5,388	$	2,506
Amount sold or repledged by us	$	164	$	131

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2015

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

June 30, 2015							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting*	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	1	$	2,513	$	-	$	-	$	-	$	2,514
Obligations of states, municipalities and political subdivisions		-		25,482		2,180		-		-		27,662
Non-U.S. governments		648		18,468		33		-		-		19,149
Corporate debt		-		138,745		2,118		-		-		140,863
RMBS		-		19,151		17,097		-		-		36,248
CMBS		-		10,845		2,677		-		-		13,522
CDO/ABS		-		9,037		6,071		-		-		15,108
Total bonds available for sale		649		224,241		30,176		-		-		255,066
Other bond securities:
U.S. government and government sponsored entities		176		3,639		-		-		-		3,815
Obligations of states, municipalities and political subdivisions		-		75		-		-		-		75
Non-U.S. governments		-		2		-		-		-		2
Corporate debt		-		436		16		-		-		452
RMBS		-		873		1,337		-		-		2,210
CMBS		-		644		223		-		-		867
CDO/ABS		-		1,751		7,426		-		-		9,177
Total other bond securities		176		7,420		9,002		-		-		16,598
Equity securities available for sale:
Common stock		3,843		8		-		-		-		3,851
Preferred stock		25		-		-		-		-		25
Mutual funds		877		2		-		-		-		879
Total equity securities available for sale		4,745		10		-		-		-		4,755
Other equity securities		1,301		-		22		-		-		1,323
Mortgage and other loans receivable		-		-		6		-		-		6
Other invested assets		2		4,312		5,075		-		-		9,389
Derivative assets:
Interest rate contracts		6		3,192		11		-		-		3,209
Foreign exchange contracts		-		675		-		-		-		675
Equity contracts		84		10		64		-		-		158
Commodity contracts		-		-		-		-		-		-
Credit contracts		-		-		4		-		-		4
Other contracts		-		-		30		-		-		30
Counterparty netting and cash collateral		-		-		-		(1,594)		(1,226)		(2,820)
Total derivative assets		90		3,877		109		(1,594)		(1,226)		1,256
Short-term investments		1,036		1,245		-		-		-		2,281
Separate account assets		76,833		5,302		-		-		-		82,135
Total	$	84,832	$	246,407	$	44,390	$	(1,594)	$	(1,226)	$	372,809

Liabilities:
Policyholder contract deposits	$	-	$	36	$	1,232	$	-	$	-	$	1,268
Other policyholder funds		-		8		-		-		-		8
Derivative liabilities:
Interest rate contracts		-		2,389		73		-		-		2,462
Foreign exchange contracts		-		1,232		7		-		-		1,239
Equity contracts		-		105		1		-		-		106
Commodity contracts		-		6		-		-		-		6
Credit contracts		-		-		555		-		-		555
Other contracts		-		2		46		-		-		48
Counterparty netting and cash collateral		-		-		-		(1,594)		(1,276)		(2,870)
Total derivative liabilities		-		3,734		682		(1,594)		(1,276)		1,546
Long-term debt		-		4,076		193		-		-		4,269
Other liabilities		120		164		-		-		-		284
Total	$	120	$	8,018	$	2,107	$	(1,594)	$	(1,276)	$	7,375

December 31, 2014							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting*	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	322	$	2,670	$	-	$	-	$	-	$	2,992
Obligations of states, municipalities and political subdivisions		-		25,500		2,159		-		-		27,659
Non-U.S. governments		742		20,323		30		-		-		21,095
Corporate debt		-		142,550		1,883		-		-		144,433
RMBS		-		20,715		16,805		-		-		37,520
CMBS		-		10,189		2,696		-		-		12,885
CDO/ABS		-		7,165		6,110		-		-		13,275
Total bonds available for sale		1,064		229,112		29,683		-		-		259,859
Other bond securities:
U.S. government and government sponsored entities		130		5,368		-		-		-		5,498
Obligations of states, municipalities and political subdivisions		-		122		-		-		-		122
Non-U.S. governments		-		2		-		-		-		2
Corporate debt		-		719		-		-		-		719
RMBS		-		989		1,105		-		-		2,094
CMBS		-		708		369		-		-		1,077
CDO/ABS		-		2,751		7,449		-		-		10,200
Total other bond securities		130		10,659		8,923		-		-		19,712
Equity securities available for sale:
Common stock		3,626		2		1		-		-		3,629
Preferred stock		25		-		-		-		-		25
Mutual funds		738		3		-		-		-		741
Total equity securities available for sale		4,389		5		1		-		-		4,395
Other equity securities		1,024		25		-		-		-		1,049
Mortgage and other loans receivable		-		-		6		-		-		6
Other invested assets		2		3,742		5,650		-		-		9,394

Derivative assets:
Interest rate contracts		2		3,729		12		-		-		3,743
Foreign exchange contracts		-		839		1		-		-		840
Equity contracts		98		58		51		-		-		207
Commodity contracts		-		-		-		-		-		-
Credit contracts		-		-		4		-		-		4
Other contracts		-		-		31		-		-		31
Counterparty netting and cash collateral		-		-		-		(2,102)		(1,119)		(3,221)
Total derivative assets		100		4,626		99		(2,102)		(1,119)		1,604
Short-term investments		584		1,100		-		-		-		1,684
Separate account assets		73,939		6,097		-		-		-		80,036
Total	$	81,232	$	255,366	$	44,362	$	(2,102)	$	(1,119)	$	377,739
Liabilities:
Policyholder contract deposits	$	-	$	52	$	1,509	$	-	$	-	$	1,561
Other policyholder funds		-		8		-		-		-		8
Derivative liabilities:
Interest rate contracts		-		3,047		86		-		-		3,133
Foreign exchange contracts		-		1,482		9		-		-		1,491
Equity contracts		-		98		4		-		-		102
Commodity contracts		-		6		-		-		-		6
Credit contracts		-		-		982		-		-		982
Other contracts		-		-		90		-		-		90
Counterparty netting and cash collateral		-		-		-		(2,102)		(1,429)		(3,531)
Total derivative liabilities		-		4,633		1,171		(2,102)		(1,429)		2,273
Long-term debt		-		5,253		213		-		-		5,466
Other liabilities		34		316		-		-		-		350
Total	$	34	$	10,262	$	2,893	$	(2,102)	$	(1,429)	$	9,658

*Represents netting of derivative exposures covered by a qualifying master netting agreement.

Changes in Level 3 recurring fair value measurements

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Three Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,256	$	-	$	(124)	$	93	$	-	$	(45)	$	2,180	$	-
Non-U.S. governments		34		-		(1)		-		-		-		33		-
Corporate debt		1,827		14		(50)		(85)		412		-		2,118		-
RMBS		17,345		281		(99)		(430)		-		-		17,097		-
CMBS		2,694		22		(40)		17		-		(16)		2,677		-
CDO/ABS		6,453		97		(196)		(283)		-		-		6,071		-
Total bonds available for sale		30,609		414		(510)		(688)		412		(61)		30,176		-
Other bond securities:
Corporate debt		16		-		-		-		-		-		16		-
RMBS		1,288		45		-		16		15		(27)		1,337		31
CMBS		269		8		-		(54)		-		-		223		1
CDO/ABS		7,850		265		-		(688)		-		(1)		7,426		93
Total other bond securities		9,423		318		-		(726)		15		(28)		9,002		125
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		22		-		-		-		-		-		22		-
Mortgage and other loans receivable		6		-		-		-		-		-		6		-
Other invested assets		5,098		81		(38)		(92)		91		(65)		5,075		-
Total	$	45,159	$	815	$	(548)	$	(1,509)	$	518	$	(154)	$	44,281	$	125
Liabilities:
Policyholder contract deposits	$	(1,835)	$	736	$	-	$	(133)	$	-	$	-	$	(1,232)	$	110
Derivative liabilities, net:
Interest rate contracts		(69)		4		-		3		-		-		(62)		3
Foreign exchange contracts		(8)		2		-		(1)		-		-		(7)		1
Equity contracts		66		(2)		-		(1)		-		-		63		(3)
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		(791)		13		-		227		-		-		(551)		22
Other contracts		(59)		59		(2)		(14)		-		-		(16)		33
Total derivative liabilities, net(a)		(861)		76		(2)		214		-		-		(573)		56
Long-term debt(b)		(186)		(13)		-		6		-		-		(193)		(6)
Total	$	(2,882)	$	799	$	(2)	$	87	$	-	$	-	$	(1,998)	$	160

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period(a)		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Six Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,159	$	1	$	(79)	$	158	$	-	$	(59)	$	2,180	$	-
Non-U.S. governments		30		-		(1)		4		-		-		33		-
Corporate debt		1,883		14		(33)		(146)		456		(56)		2,118		-
RMBS		16,805		539		(171)		(76)		-		-		17,097		-
CMBS		2,696		46		(30)		47		-		(82)		2,677		-
CDO/ABS		6,110		130		(167)		119		-		(121)		6,071		-
Total bonds available for sale		29,683		730		(481)		106		456		(318)		30,176		-
Other bond securities:
Corporate debt		-		-		-		-		16		-		16		(1)
RMBS		1,105		26		-		220		44		(58)		1,337		1
CMBS		369		8		-		(154)		-		-		223		8
CDO/ABS		7,449		397		-		(926)		581		(75)		7,426		51
Total other bond securities		8,923		431		-		(860)		641		(133)		9,002		59
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		-		-		-		-		22		-		22		-
Mortgage and other loans receivable		6		-		-		-		-		-		6		-
Other invested assets		5,650		527		(549)		(586)		98		(65)		5,075		-
Total	$	44,263	$	1,690	$	(1,030)	$	(1,343)	$	1,217	$	(516)	$	44,281	$	59
Liabilities:
Policyholder contract deposits	$	(1,509)	$	461	$	-	$	(184)	$	-	$	-	$	(1,232)	$	40
Derivative liabilities, net:
Interest rate contracts		(74)		-		-		12		-		-		(62)		(1)
Foreign exchange contracts		(8)		3		-		(2)		-		-		(7)		3
Equity contracts		47		6		-		10		-		-		63		2
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		(978)		160		-		267		-		-		(551)		50
Other contracts		(59)		73		-		(30)		-		-		(16)		48
Total derivative liabilities, net(a)		(1,072)		242		-		257		-		-		(573)		102
Long-term debt(b)		(213)		2		-		18		-		-		(193)		13
Total	$	(2,794)	$	705	$	-	$	91	$	-	$	-	$	(1,998)	$	155

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Three Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,042	$	-	$	74	$	7	$	-	$	(132)	$	1,991	$	-
Non-U.S. governments		17		-		-		4		4		-		25		-
Corporate debt		1,815		9		33		(71)		707		(297)		2,196		-
RMBS		15,764		251		127		67		119		-		16,328		-
CMBS		5,741		17		129		(7)		69		(32)		5,917		-
CDO/ABS		6,610		18		1		726		103		(27)		7,431		-
Total bonds available for sale		31,989		295		364		726		1,002		(488)		33,888		-
Other bond securities:
RMBS		1,069		23		-		(32)		2		-		1,062		2
CMBS		770		21		-		(40)		6		-		757		19
CDO/ABS		8,498		334		-		(436)		1		-		8,397		122
Total other bond securities		10,337		378		-		(508)		9		-		10,216		143
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Preferred stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Mortgage and other loans receivable		-		-		-		6		-		-		6		-
Other invested assets		5,990		8		(5)		(15)		-		(154)		5,824		-
Total	$	48,316	$	681	$	359	$	209	$	1,011	$	(642)	$	49,934	$	143
Liabilities:
Policyholder contract deposits	$	(765)	$	(58)	$	(16)	$	(3)	$	-	$	-	$	(842)	$	(37)
Derivative liabilities, net:
Interest rate contracts		(98)		8		-		23		-		-		(67)		8
Foreign exchange contracts		-		3		-		(12)		-		-		(9)		3
Equity contracts		88		11		-		(8)		-		-		91		11
Commodity contracts		1		-		-		-		-		-		1		-
Credit contracts		(1,185)		75		-		25		-		-		(1,085)		69
Other contracts		(109)		18		48		(10)		-		-		(53)		16
Total derivatives liabilities, net(a)		(1,303)		115		48		18		-		-		(1,122)		107
Long-term debt(b)		(403)		(5)		-		14		-		-		(394)		(4)
Total	$	(2,471)	$	52	$	32	$	29	$	-	$	-	$	(2,358)	$	66

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Six Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions(c)	$	1,080	$	-	$	191	$	853	$	-	$	(133)	$	1,991	$	-
Non-U.S. governments		16		-		(1)		6		4		-		25		-
Corporate debt		1,255		6		53		(67)		1,355		(406)		2,196		-
RMBS		14,941		495		260		624		119		(111)		16,328		-
CMBS		5,735		23		240		(57)		69		(93)		5,917		-
CDO/ABS		6,974		52		3		734		169		(501)		7,431		-
Total bonds available for sale		30,001		576		746		2,093		1,716		(1,244)		33,888		-
Other bond securities:
RMBS		937		51		-		72		2		-		1,062		17
CMBS		844		38		-		(131)		6		-		757		32
CDO/ABS		8,834		669		-		(887)		1		(220)		8,397		286
Total other bond securities		10,615		758		-		(946)		9		(220)		10,216		335
Equity securities available for sale:
Common stock		1		-		-		-		-		(1)		-		-
Preferred stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		1		-		-		-		-		(1)		-		-
Mortgage and other loans receivable		-		-		-		6		-		-		6		-
Other invested assets		5,930		87		49		34		85		(361)		5,824		-
Total	$	46,547	$	1,421	$	795	$	1,187	$	1,810	$	(1,826)	$	49,934	$	335
Liabilities:
Policyholder contract deposits	$	(312)	$	(532)	$	(24)	$	26	$	-	$	-	$	(842)	$	(120)
Derivative liabilities, net:
Interest rate contracts		(100)		2		-		32		-		(1)		(67)		4
Foreign exchange contracts		-		3		-		(12)		-		-		(9)		4
Equity contracts		49		8		-		(14)		48		-		91		5
Commodity contracts		1		-		-		-		-		-		1		-
Credit contracts		(1,280)		154		-		41		-		-		(1,085)		164
Other contracts		(109)		35		47		(26)		-		-		(53)		27
Total derivatives liabilities, net(a)		(1,439)		202		47		21		48		(1)		(1,122)		204
Long-term debt(b)		(370)		(8)		-		33		(70)		21		(394)		5
Total	$	(2,121)	$	(338)	$	23	$	80	$	(22)	$	20	$	(2,358)	$	89

(a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only.

(b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable.

(c)Purchases, Sales, Issues and Settlements, Net primarily reflect the effect of consolidating previously unconsolidated securitization vehicles.

Schedule of net realized and unrealized gains and losses related to Level 3 items

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended June 30, 2015
Bonds available for sale	$	311	$	10	$	93	$	414
Other bond securities		23		(3)		298		318
Equity securities available for sale		-		2		-		2
Other invested assets		18		(12)		75		81
Policyholder contract deposits		-		736		-		736
Derivative liabilities, net		(19)		(1)		96		76
Long-term debt		-		-		(13)		(13)
Three Months Ended June 30, 2014
Bonds available for sale	$	298	$	(15)	$	12	$	295
Other bond securities		49		1		328		378
Equity securities available for sale		-		-		-		-
Other invested assets		12		(9)		5		8
Policyholder contract deposits		-		(58)		-		(58)
Derivative liabilities, net		16		8		91		115
Long-term debt		-		-		(5)		(5)
Six Months Ended June 30, 2015
Bonds available for sale	$	622	$	1	$	107	$	730
Other bond securities		41		3		387		431
Equity securities available for sale		-		2		-		2
Other invested assets		86		377		64		527
Policyholder contract deposits		-		461		-		461
Derivative liabilities, net		-		5		237		242
Long-term debt		-		-		2		2
Six Months Ended June 30, 2014
Bonds available for sale	$	602	$	(51)	$	25	$	576
Other bond securities		100		2		656		758
Equity securities available for sale		-		-		-		-
Other invested assets		89		(13)		11		87
Policyholder contract deposits		-		(532)		-		(532)
Derivative liabilities, net		31		5		166		202
Long-term debt		-		-		(8)		(8)

Gross components of purchases, sales, issuances and settlements, net

								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net(a)
Three Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	116	$	-	$	(23)	$	93
Non-U.S. governments		2		-		(2)		-
Corporate debt		182		(10)		(257)		(85)

RMBS		446		(143)		(733)		(430)
CMBS		70		-		(53)		17
CDO/ABS		282		(178)		(387)		(283)
Total bonds available for sale		1,098		(331)		(1,455)		(688)
Other bond securities:
RMBS		64		(4)		(44)		16
CMBS		-		(43)		(11)		(54)
CDO/ABS		12		(331)		(369)		(688)
Total other bond securities		76		(378)		(424)		(726)
Equity securities available for sale		-		(2)		(1)		(3)
Other invested assets		64		(1)		(155)		(92)
Total assets	$	1,238	$	(712)	$	(2,035)	$	(1,509)
Liabilities:
Policyholder contract deposits	$	-	$	(112)	$	(21)	$	(133)
Derivative liabilities, net		2		-		212		214
Long-term debt(b)		-		-		6		6
Total liabilities	$	2	$	(112)	$	197	$	87
Three Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	48	$	(27)	$	(14)	$	7
Non-U.S. governments		5		-		(1)		4
Corporate debt		63		(1)		(133)		(71)
RMBS		665		(11)		(587)		67
CMBS		27		-		(34)		(7)
CDO/ABS		892		(2)		(164)		726
Total bonds available for sale		1,700		(41)		(933)		726
Other bond securities:
RMBS		21		(14)		(39)		(32)
CMBS		-		-		(40)		(40)
CDO/ABS		23		(8)		(451)		(436)
Total other bond securities		44		(22)		(530)		(508)
Equity securities available for sale		-		-		-		-
Mortgage and other loans receivable		6		-		-		6
Other invested assets		137		(1)		(151)		(15)
Total assets	$	1,887	$	(64)	$	(1,614)	$	209
Liabilities:
Policyholder contract deposits	$	-	$	(46)	$	43	$	(3)
Derivative liabilities, net		-		-		18		18
Long-term debt(b)		-		-		14		14
Total liabilities	$	-	$	(46)	$	75	$	29
								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net(a)
Six Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	223	$	(22)	$	(43)	$	158
Non-U.S. governments		8		-		(4)		4
Corporate debt		188		(60)		(274)		(146)

RMBS		1,407		(165)		(1,318)		(76)
CMBS		142		(27)		(68)		47
CDO/ABS		861		(201)		(541)		119
Total bonds available for sale		2,829		(475)		(2,248)		106
Other bond securities:
RMBS		309		(10)		(79)		220
CMBS		-		(79)		(75)		(154)
CDO/ABS		226		(371)		(781)		(926)
Total other bond securities		535		(460)		(935)		(860)
Equity securities available for sale		-		(2)		(1)		(3)
Other invested assets		304		(587)		(303)		(586)
Total assets	$	3,668	$	(1,524)	$	(3,487)	$	(1,343)
Liabilities:
Policyholder contract deposits	$	-	$	(185)	$	1	$	(184)
Derivative liabilities, net		17		-		240		257
Long-term debt(b)		-		-		18		18
Total liabilities	$	17	$	(185)	$	259	$	91
Six Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions(c)	$	936	$	(32)	$	(51)	$	853
Non-U.S. governments		7		-		(1)		6
Corporate debt		119		(8)		(178)		(67)
RMBS		1,752		(26)		(1,102)		624
CMBS		92		(57)		(92)		(57)
CDO/ABS		1,222		(2)		(486)		734
Total bonds available for sale		4,128		(125)		(1,910)		2,093
Other bond securities:
RMBS		162		(19)		(71)		72
CMBS		-		(6)		(125)		(131)
CDO/ABS		44		(15)		(916)		(887)
Total other bond securities		206		(40)		(1,112)		(946)
Equity securities available for sale		-		-		-		-
Mortgage and other loans receivable		6		-		-		6
Other invested assets		433		(1)		(398)		34
Total assets	$	4,773	$	(166)	$	(3,420)	$	1,187
Liabilities:
Policyholder contract deposits	$	-	$	(58)	$	84	$	26
Derivative liabilities, net		1		-		20		21
Long-term debt(b)		-		-		33		33
Total liabilities	$	1	$	(58)	$	137	$	80

(a)There were no issuances during thethree- and six-month periods ended June 30,2015 and 2014, respectively.

(b) Includes GIAs, notes, bonds, loans and mortgages payable.

(c) Purchases primarily reflect the effect of consolidating previously unconsolidated securitization vehicles.

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	June 30,		Valuation		Range
(in millions)	2015		Technique	Unobservable Input	(Weighted Average)
Assets:
Obligations of states,	$	1,224	Discounted cash flow	Yield(b)	4.32% - 5.14% (4.73%)
municipalities and
political subdivisions
Corporate debt		1,519	Discounted cash flow	Yield(b)	4.27% - 7.64% (5.96%)
RMBS		17,727	Discounted cash flow	Constant prepayment rate(a)(c)	0.88% - 9.02% (4.95%)
				Loss severity(a)(c)	46.61% - 79.61% (63.11%)
				Constant default rate(a)(c)	3.54% - 8.93% (6.23%)
				Yield(c)	2.93% - 6.27% (4.60%)
CDO/ABS		3,819	Discounted cash flow	Constant prepayment rate(a)(c)	6.70% - 13.10% (9.40%)
				Loss severity(a)(c)	39.90% - 55.20% (47.70%)
				Constant default rate(a)(c)	2.50% - 13.50% (7.30%)
				Yield(c)	4.40% - 8.20% (7.00%)
CMBS		2,638	Discounted cash flow	Yield(b)	0.00% - 17.59% (5.97%)
Liabilities:
Policyholder contract
deposits
GMWB		434	Discounted cash flow	Equity implied volatility(b)	6.00% - 39.00%(d)
				Base lapse rate(b)	1.00% - 40.00%(d)
				Dynamic lapse rate(b)	0.20% - 60.00%(d)
				Mortality rate(b)	0.10% - 35.00%(d)
				Utilization rate(b)	0.50% - 30.00%(d)
Index Annuities		461	Discounted cash flow	Lapse rate	0.75% - 66.00%(d)
				Mortality rate	0.02% - 44.06%(d)
Index Life		285	Discounted cash flow	Equity implied volatility	10.00% to 25.00%(d)
				Base lapse rate	2.00% to 19.00%(d)
				Mortality rate	0.00% to 20.00%(d)
Total derivative
liabilities, net		299	Binomial Expansion	Recovery rate(b)	8.00% - 23.00% (13.00%)
			Technique (BET)	Diversity score(b)	9 - 10 (10)
				Weighted average life(b)	4.51 - 8.44 years (7.06 years)

		Fair Value at
		December 31,	Valuation		Range
(in millions)		2014	Technique	Unobservable Input	(Weighted Average )
Assets:
Obligations of states,	$	1,178	Discounted cash flow	Yield(b)	3.9% - 4.62% (4.26%)
municipalities and
political subdivisions
Corporate debt		1,145	Discounted cash flow	Yield(b)	3.46% - 8.75% (6.10%)
RMBS		17,353	Discounted cash flow	Constant prepayment rate(a)(c)	0.59% - 9.35% (4.97%)
				Loss severity(a)(c)	46.04% - 79.56% (62.80%)
				Constant default rate(a)(c)	3.67% - 9.96% (6.82%)
				Yield(c)	2.67% - 6.64% (4.65%)
CDO/ABS		5,282	Discounted cash flow	Constant prepayment rate(a)(c)	6.40% - 12.80% (9.20%)
				Loss severity(a)(c)	42.90% - 60.30% (51.90%)
				Constant default rate(a)(c)	2.50% - 14.70% (7.80%)
				Yield(c)	4.70% - 9.70% (7.10%)
CMBS		2,687	Discounted cash flow	Yield(b)	0.00% - 17.29% (6.06%)
Liabilities:
Policyholder contract
deposits
GMWB		890	Discounted cash flow	Equity implied volatility(b)	6.00% - 39.00%(d)
				Base lapse rate(b)	1.00% - 40.00%(d)
				Dynamic lapse rate(b)	0.20% - 60.00%(d)
				Mortality rate(b)	0.10% - 35.00%(d)
				Utilization rate(b)	0.50% - 30.00%(d)
Index Annuities		294	Discounted cash flow	Lapse rate	0.75% - 66.00%(d)
				Mortality rate	0.02% - 44.06%(d)
Index Life		259	Discounted cash flow	Equity implied volatility	10.00% to 25.00%(d)
				Base lapse rate	2.00% to 19.00%(d)
				Mortality rate	0.00% to 20.00%(d)
Total derivative
liabilities, net		791	BET	Recovery rate(b)	5.00% - 23.00% (13.00%)
				Diversity score(b)	8 - 25 (13)
				Weighted average life(b)	2.67 - 10.49 years (4.65 years)

(a)The unobservable inputs and ranges for the constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us because there are other factors relevant to the fair values of specific tranches owned by us including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points.

(b) Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities.

(c) Information received from independent third-party valuation service providers.

(d)Represents actual maximum and minimum, not weighted average rates.

Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share

		June 30, 2015				December 31, 2014
			Fair Value Using Net Asset Value Per Share (or its equivalent)				Fair Value Using Net Asset Value Per Share (or its equivalent)
					Unfunded				Unfunded
(in millions)	Investment Category Includes				Commitments				Commitments
Investment Category
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	2,008	$	446	$	2,275	$	450
Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		359		203		384		227
Venture capital	Early-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company		119		34		121		26
Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		157		43		164		43
Other	Includes multi-strategy, mezzanine and other strategies		259		213		216		234
Total private equity funds			2,902		939		3,160		980
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		1,288		-		1,109		-
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		2,880		16		2,428		1
Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		562		-		498		-
Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		753		15		731		5
Emerging markets	Investments in the financial markets of developing countries		347		-		308		-
Other	Includes multi-strategy, relative value and other strategies		182		-		125		-
Total hedge funds			6,012		31		5,199		6
Total		$	8,914	$	970	$	8,359	$	986

Gains or losses related to the eligible instruments for which AIG elected the fair value option

	Gain (Loss) Three Months Ended June 30,				Gain (Loss) Six Months Ended June 30,
(in millions)		2015		2014		2015		2014
Assets:
Bond and equity securities	$	460	$	611	$	601	$	1,277
Alternative Investments(a)		118		18		263		172
Other, including Short-term investments		-		2		2		5
Liabilities:
Long-term debt(b)		131		(135)		55		(209)
Other liabilities		-		(2)		(3)		(6)
Total gain	$	709	$	494	$	918	$	1,239

(a)Includes hedge funds, private equity funds and other investment partnerships.

(b)Includes GIAs, notes, bonds, loans and mortgages payable.

Difference between fair values and aggregate contractual principal amounts, fair value option

	June 30, 2015						December 31, 2014
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	6	$	4	$	2	$	6	$	4	$	2
Liabilities:
Long-term debt*	$	4,269	$	3,173	$	1,096	$	5,466	$	4,101	$	1,365

* Includes GIAs, notes, bonds, loans and mortgages payable.

Fair value assets measured on nonrecurring basis and impairment charges

	Assets at Fair Value								Impairment Charges
	Non-Recurring Basis								Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	Level 1		Level 2		Level 3			Total		2015		2014		2015		2014
June 30, 2015
Other investments	$	-	$	-	$	1,000	$	1,000	$	27	$	20	$	52	$	55
Investments in life settlements		-		-		501		501		72		45		142		87
Other assets		-		-		12		12		4		-		8		1
Total	$	-	$	-	$	1,513	$	1,513	$	103	$	65	$	202	$	143
December 31, 2014
Other investments	$	-	$	-	$	790	$	790
Investments in life settlements		-		-		537		537
Other assets		-		-		1		1
Total	$	-	$	-	$	1,328	$	1,328

Carrying value and estimated fair value of AIG's financial instruments

	Estimated Fair Value									Carrying
(in millions)		Level 1		Level 2		Level 3		Total		Value
June 30, 2015
Assets:
Mortgage and other loans receivable	$	-	$	376	$	27,931	$	28,307	$	27,137
Other invested assets		-		523		2,983		3,506		4,338
Short-term investments		-		11,584		-		11,584		11,584
Cash		1,937		-		-		1,937		1,937
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		268		116,875		117,143		106,864
Other liabilities		-		899		-		899		899
Long-term debt		-		23,593		3,674		27,267		26,091
December 31, 2014
Assets:
Mortgage and other loans receivable	$	-	$	449	$	26,157	$	26,606	$	24,984
Other invested assets		-		593		2,882		3,475		4,352
Short-term investments		-		9,559		-		9,559		9,559
Cash		1,758		-		-		1,758		1,758
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		244		119,268		119,512		106,395
Other liabilities		-		1,120		-		1,120		1,120
Long-term debt		-		24,749		2,932		27,681		25,751

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INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Other-than-temporary impairments:
Severity	$ 0	$ 0	$ (2)	$ 0
Change in intent	(88)	(1)	(112)	(6)
Foreign currency declines	(3)	(6)	(32)	(10)
Issuer-specific credit events	(70)	(44)	(138)	(93)
Adverse projected cash flows	(3)	(4)	(8)	(5)
Provision for loan losses	(13)	15	11	20
Foreign exchange transactions	66	(47)	320	(21)
Derivative instruments	288	73	496	(216)
Impairments on investments in life settlements	(72)	(45)	(142)	(87)
Other	(135)	5	396	(1)
Total net realized capital gains	126	162	1,467	10
Fixed maturity securities
Gain (Loss) on Investments [Line Items]
Sale of fixed maturity securities	135	181	166	366
Equity securities
Gain (Loss) on Investments [Line Items]
Sale of fixed maturity securities	$ 21	$ 35	$ 512	$ 63

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FAIR VALUE MEASUREMENTS (Details - Quantitative Information About Level 3 Fair Value Measurements - Liabilities) - Level 3 - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Policyholder contract deposits
Significant unobservable inputs used for recurring fair value measurements
Fair value	$ 0
GMWB
Significant unobservable inputs used for recurring fair value measurements
Fair value	$ 434	$ 890
GMWB | Discounted cash flow | Minimum
Significant unobservable inputs used for recurring fair value measurements
Equity implied volatility	6.00%	6.00%
Base lapse rates	1.00%	1.00%
Dynamic lapse rates	0.20%	0.20%
Mortality rates	0.10%	0.10%
Utilization rates	0.50%	0.50%
GMWB | Discounted cash flow | Maximum
Significant unobservable inputs used for recurring fair value measurements
Equity implied volatility	39.00%	39.00%
Base lapse rates	40.00%	40.00%
Dynamic lapse rates	60.00%	60.00%
Mortality rates	35.00%	35.00%
Utilization rates	30.00%	30.00%
Index Annuities
Significant unobservable inputs used for recurring fair value measurements
Fair value	$ 461	$ 294
Index Annuities | Discounted cash flow | Minimum
Significant unobservable inputs used for recurring fair value measurements
Mortality rates	0.02%	0.02%
Lapse rates	0.75%	0.75%
Index Annuities | Discounted cash flow | Maximum
Significant unobservable inputs used for recurring fair value measurements
Mortality rates	44.06%	44.06%
Lapse rates	66.00%	66.00%
Index Life
Significant unobservable inputs used for recurring fair value measurements
Fair value	$ 285	$ 259
Index Life | Discounted cash flow | Minimum
Significant unobservable inputs used for recurring fair value measurements
Equity implied volatility	10.00%	10.00%
Base lapse rates	2.00%	2.00%
Mortality rates	0.00%	0.00%
Index Life | Discounted cash flow | Maximum
Significant unobservable inputs used for recurring fair value measurements
Equity implied volatility	25.00%	25.00%
Base lapse rates	19.00%	19.00%
Mortality rates	20.00%	20.00%
Derivative Liabilities - Credit contracts
Significant unobservable inputs used for recurring fair value measurements
Fair value	$ 299	$ 791
Derivative Liabilities - Credit contracts | BET | Minimum
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	8.00%	5.00%
Diversity score	9	0.08
Weighted average life	4 years 6 months 4 days	2 years 8 months 1 day
Derivative Liabilities - Credit contracts | BET | Maximum
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	23.00%	23.00%
Diversity score	10	0.25
Weighted average life	8 years 5 months 8 days	10 years 5 months 26 days
Derivative Liabilities - Credit contracts | BET | Weighted-average
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	13.00%	13.00%
Diversity score	10	0.13
Weighted average life	7 years 22 days	4 years 7 months 24 days

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LENDING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2015

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable

	June 30,			December 31,
(in millions)		2015		2014
Commercial mortgages*	$	19,882	$	18,909
Life insurance policy loans		2,645		2,710
Commercial loans, other loans and notes receivable		4,878		3,642
Total mortgage and other loans receivable		27,405		25,261
Allowance for losses		(262)		(271)
Mortgage and other loans receivable, net	$	27,143	$	24,990

* Commercial mortgages primarily represent loans for offices, retail, apartments and industrial properties, with exposures in California and New York representing the largest geographic concentrations (aggregating approximately 13 percent and 21 percent, respectively, atJune 30,2015, and 14 percent and 18 percent, respectively, at December 31,2014).

Schedule of credit quality indicators for the commercial mortgage loans

	Number															Percent
	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total(c)	Total $
June 30, 2015
Credit Quality Indicator:
In good standing	976	$	3,284	$	6,810	$	4,402	$	2,002	$	1,837	$	1,069	$	19,404	98	%
Restructured(a)	10		-		409		6		31		16		-		462	2
90 days or less delinquent	3		-		-		-		6		-		-		6	-
>90 days delinquent or in
process of foreclosure	5		-		-		10		-		-		-		10	-
Total(b)	994	$	3,284	$	7,219	$	4,418	$	2,039	$	1,853	$	1,069	$	19,882	100	%
Valuation allowance		$	21	$	67	$	27	$	13	$	13	$	10	$	151	1	%

December 31, 2014
Credit Quality Indicator:
In good standing	1,007	$	3,384	$	6,100	$	3,807	$	1,689	$	1,660	$	1,812	$	18,452	98	%
Restructured(a)	7		-		343		7		-		17		-		367	2
90 days or less delinquent	6		-		-		10		-		-		5		15	-
>90 days delinquent or in
process of foreclosure	4		-		75		-		-		-		-		75	-
Total(b)	1,024	$	3,384	$	6,518	$	3,824	$	1,689	$	1,677	$	1,817	$	18,909	100	%
Allowance for losses		$	3	$	86	$	28	$	22	$	6	$	14	$	159	1	%

(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see Note 7 to the Consolidated Financial Statements in the 2014 Annual Report.

(b)Does not reflect valuation allowances.

(c)Over99 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest.

Schedule of changes in the allowance for losses on Mortgage and other loans receivable

	2015						2014
Six Months Ended June 30,		Commercial		Other				Commercial		Other
(in millions)		Mortgages		Loans		Total		Mortgages		Loans		Total
Allowance, beginning of year	$	159	$	112	$	271	$	201	$	111	$	312
Loans charged off		(4)		(1)		(5)		(5)		(13)		(18)
Recoveries of loans previously charged off		3		1		4		-		16		16
Net charge-offs		(1)		-		(1)		(5)		3		(2)
Provision for loan losses		(9)		(3)		(12)		(8)		(22)		(30)
Other		2		2		4		-		1		1
Allowance, end of period	$	151 *	$	111	$	262	$	188 *	$	93	$	281

*Of the total allowance at the end of the periods, $30million and $88 million relate to individually assessed credit losses on $570 million and $240 million of commercial mortgage loans at June 30,2015 and 2014, respectively.

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VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2015

VARIABLE INTEREST ENTITIES

Schedule of Consolidated Variable Interest Entities

(in millions)		Real Estate and Investment Entities(d)		Securitization Vehicles		Structured Investment Vehicle		Affordable Housing Partnerships		Other		Total
June 30, 2015
Assets:
Bonds available for sale	$	-	$	11,022	$	-	$	-	$	25	$	11,047
Other bond securities		-		6,751		491		-		42		7,284
Mortgage and other loans receivable		1		2,602		-		-		146		2,749
Other invested assets		624		596		-		1,782		24		3,026
Other (a)		52		1,056		53		57		90		1,308
Total assets(b)	$	677	$	22,027	$	544	$	1,839	$	327	$	25,414
Liabilities:
Long-term debt	$	41	$	1,246	$	57	$	265	$	6	$	1,615
Other (c)		48		245		-		141		43		477
Total liabilities	$	89	$	1,491	$	57	$	406	$	49	$	2,092
December 31, 2014
Assets:
Bonds available for sale	$	-	$	11,459	$	-	$	-	$	35	$	11,494
Other bond securities		-		7,251		615		-		40		7,906
Mortgage and other loans receivable		-		2,398		-		-		162		2,560
Other invested assets		577		651		-		1,684		29		2,941
Other (a)		40		1,447		140		49		76		1,752
Total assets(b)	$	617	$	23,206	$	755	$	1,733	$	342	$	26,653
Liabilities:
Long-term debt	$	69	$	1,370	$	52	$	199	$	7	$	1,697
Other(c)		32		276		-		101		37		446
Total liabilities	$	101	$	1,646	$	52	$	300	$	44	$	2,143

(a) Comprised primarily of Short-term investments, Premiums and other receivables and Other assets at both June 30,2015 and December 31,2014.

(b) The assets of each VIE can be used only to settle specific obligations of that VIE.

(c) Comprised primarily of Other liabilities and Derivative liabilities, at fair value, at both June 30,2015 and December 31,2014.

(d) At June 30,2015 and December 31,2014, off-balance sheet exposure, primarily consisting of commitments to real estate and investment entities, was $96.4 million and $56.4 million, respectively.

Schedule of Unconsolidated Variable Interest Entities

			Maximum Exposure to Loss
		Total VIE		On-Balance		Off-Balance
(in millions)		Assets		Sheet(a)		Sheet		Total
June 30, 2015
Real estate and investment entities	$	19,639	$	3,022	$	425	$	3,447
Affordable housing partnerships		7,694		407		-		407
Other		1,111		221		992		1,213
Total	$	28,444	$	3,650	$	1,417	$	5,067
December 31, 2014
Real estate and investment entities	$	19,949	$	2,785	$	454	$	3,239
Affordable housing partnerships		7,911		425		-		425
Other(b)		1,959		304		992		1,296
Total	$	29,819	$	3,514	$	1,446	$	4,960

(a)At June 30,2015 and December 31,2014, $3.4 billion and $3.2 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

(b) The On-Balance and Off-Balance sheet amounts have been revised from $32 million and $0 to $304 million and $992 million, respectively, to correct the Maximum Exposure to Loss as of December 31, 2014, which are not considered material to previously issued financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ 4,268	$ 4,648
(Income) loss from discontinued operations	(17)	17
Noncash revenues, expenses, gains and losses included in income (loss):
Net gains on sales of securities available for sale and other assets	(666)	(456)
Net (gain) loss on sale of divested businesses	7	(2,178)
Net losses on extinguishment of debt	410	272
Unrealized (gains) losses in earnings - net	(1,425)	127
Equity in income from equity method investments, net of dividends or distributions	(715)	(687)
Depreciation and other amortization	2,410	2,343
Impairments of assets	471	259
Changes in operating assets and liabilities:
Insurance reserves	(420)	981
Premiums and other receivables and payables - net	(1,359)	(782)
Reinsurance assets and funds held under reinsurance treaties	573	(815)
Capitalization of deferred policy acquisition costs	(2,880)	(3,019)
Current and deferred income taxes - net	1,739	1,605
Other, net	(1,903)	(674)
Total adjustments	(3,758)	(3,024)
Net cash provided by operating activities	493	1,641
Sales or distribution of:
Available for sale investments	14,144	12,191
Other securities	3,998	2,744
Sales or distributions of other invested assets (including flight equipment)	6,218	1,925
Divested businesses, net	0	2,348
Maturities of fixed maturity securities available for sale	12,176	11,460
Principal payments received on and sales of mortgage and other loans receivable	2,470	1,646
Purchases of:
Available for sale investments	(24,198)	(22,186)
Other securities	(583)	(290)
Other invested assets	(1,743)	(2,236)
Mortgage and other loans receivable	(4,459)	(3,445)
Net change in restricted cash	1,462	(628)
Net change in short-term investments	(2,693)	498
Other, net	(1,506)	(365)
Net cash provided by investing activities	5,286	3,662
Proceeds from (payments for)
Policyholder contract deposits	7,541	8,162
Policyholder contract withdrawals	(7,225)	(7,241)
Issuance of long-term debt	2,774	3,028
Repayments of long-term debt	(3,701)	(6,027)
Purchase of Common Stock	(3,743)	(1,849)
Dividends paid	(335)	(361)
Other, net	(877)	(1,514)
Net cash used in financing activities	(5,566)	(5,802)
Effect of exchange rate changes on cash	(34)	(3)
Net increase (decrease) in cash	179	(502)
Cash at beginning of year	1,758	2,241
Change in cash of businesses held-for-sale	0	88
Cash at end of period	$ 1,937	$ 1,827

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DERIVATIVES AND HEDGE ACCOUNTING (Tables)

6 Months Ended

Jun. 30, 2015

DERIVATIVES AND HEDGE ACCOUNTING

Notional amounts and fair values of derivative instruments

	June 30, 2015								December 31, 2014
	Gross Derivative Assets				Gross Derivative Liabilities				Gross Derivative Assets				Gross Derivative Liabilities
		Notional		Fair		Notional		Fair		Notional		Fair		Notional		Fair
(in millions)		Amount		Value		Amount		Value		Amount		Value		Amount		Value
Derivatives designated as
hedging instruments:(a)
Interest rate contracts	$	604	$	1	$	269	$	1	$	155	$	-	$	25	$	2
Foreign exchange contracts		1,384		126		1,819		95		611		25		1,794		239
Equity contracts		19		2		108		1		7		1		104		13
Derivatives not designated
as hedging instruments:(a)
Interest rate contracts		62,048		3,208		48,237		2,497		65,070		3,743		45,251		3,183
Foreign exchange contracts		6,944		549		13,216		1,144		13,667		815		8,516		1,251
Equity contracts(b)		7,409		156		45,298		1,328		7,565		206		42,387		1,615
Commodity contracts		13		-		12		6		15		-		11		6
Credit contracts(c)		5		4		1,373		555		5		4		5,288		982
Other contracts(d)		36,177		30		291		48		36,155		31		538		90
Total derivatives, gross	$	114,603	$	4,076	$	110,623	$	5,675	$	123,250	$	4,825	$	103,914	$	7,381
Counterparty netting(e)				(1,594)				(1,594)				(2,102)				(2,102)
Cash collateral(f)				(1,226)				(1,276)				(1,119)				(1,429)
Total derivatives, net				1,256				2,805				1,604				3,850
Less: Bifurcated embedded derivatives				-				1,259				-				1,577
Total derivatives on condensed
consolidated balance sheets			$	1,256			$	1,546			$	1,604			$	2,273

(a)Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.

(b) Notional amount of derivative assets and fair value of derivative assets were zero at both June 30,2015 and December 31,2014, related to bifurcated embedded derivatives. Notional amount of derivative liabilities and fair value of derivative liabilities include $41.9 billion and $1.2 billion, respectively, at June 30,2015, and $39.3 billion and $1.5 billion, respectively, at December 31,2014, related to bifurcated embedded derivatives. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets.

(c) As of June 30,2015 and December 31,2014, includes super senior multi-sector CDOs with a net notional amount of $1.2 billion and $2.6 billion (fair value liability of $526 million and $947 million), respectively. The expected weighted average maturity as of June 30,2015 is six years. Because of long-term maturities of the credit default swaps (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 June 30,2015, there were no super senior corporate debt/CLOs remaining. As of December 31,2014, includes super senior corporate debt/CLOs with a net notional amount of $2.5 billion (fair value liability of $7 million).

(d)Consists primarily of contracts with multiple underlying exposures.

(e) Represents netting of derivative exposures covered by a qualifying master netting agreement.

(f) Represents cash collateral posted and received that is eligible for netting.

Gain (loss) recognized in earnings on AIG's derivative instruments in fair value hedging relationships in the Consolidated Statements of Income

	Gains/(Losses) Recognized in Earnings for:				Including Gains/(Losses) Attributable to:
	Hedging		Hedged		Hedge		Excluded
(in millions)	Derivatives(a)		Items		Ineffectiveness		Components		Other(b)
Three Months Ended June 30, 2015
Interest rate contracts:
Realized capital gains/(losses)	$	-	$	-	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		2		-		-		2
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		(60)		73		-		13		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		4		-		-		4
Gain/(Loss) on extinguishment of debt		-		1		-		-		1
Equity contracts:
Realized capital gains/(losses)		(13)		13		-		-		-
Three Months Ended June 30, 2014
Interest rate contracts:
Realized capital gains/(losses)	$	-	$	-	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		10		-		-		10
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		32		(27)		-		(4)		9
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		-		-		-		-
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts
Realized capital gains/(losses)		(15)		15		-		-		-

Six Months Ended June 30, 2015
Interest rate contracts:
Realized capital gains/(losses)	$	1	$	(1)	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		5		-		-		5
Gain/(Loss) on extinguishment of debt		-		13		-		-		13
Foreign exchange contracts:
Realized capital gains/(losses)		72		(56)		-		13		3
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		10		-		-		10
Gain/(Loss) on extinguishment of debt		-		17		-		-		17
Equity contracts:
Realized capital gains/(losses)		(19)		18		-		(1)		-
Six Months Ended June 30, 2014
Interest rate contracts:
Realized capital gains/(losses)	$	1	$	(2)	$	-	$	-	$	(1)
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		28		-		-		28
Gain/(Loss) on extinguishment of debt		-		50		-		-		50
Foreign exchange contracts:
Realized capital gains/(losses)		56		(59)		-		(12)		9
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		-		-		-		-
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts
Realized capital gains/(losses)		(14)		14		-		-		-

(a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged item.

(b) Represents accretion/amortization of opening fair value of the hedged item at inception of hedge relationship, amortization of basis adjustment on hedged item following the discontinuation of hedge accounting, and the release of debt basis adjustment following the repurchase of issued debt that was part of previously-discontinued fair value hedge relationship.

Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statements of Income

	Gains (Losses) Recognized in Earnings
	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
By Derivative Type:
Interest rate contracts	$	(428)	$	49	$	(67)	$	187
Foreign exchange contracts		(52)		37		270		23
Equity contracts*		815		3		547		(425)
Commodity contracts		-		-		(1)		1
Credit contracts		13		75		160		154
Other contracts		(34)		23		(11)		39
Total	$	314	$	187	$	898	$	(21)
By Classification:
Policy fees	$	20	$	16	$	39	$	31
Net investment income		(13)		(3)		14		(4)
Net realized capital gains (losses)		305		82		476		(194)
Other income		8		89		370		138
Policyholder benefits and claims incurred		(6)		3		(1)		8
Total	$	314	$	187	$	898	$	(21)

* Includes embedded derivative gains of $847 million and $669 million for the three- and six-month periods ended June 30,2015, respectively, and embedded derivative gains (losses) of $40 million and $(356) million for the three- and six-month periods ended June 30,2014, respectively.

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SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
	Aug. 03, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jul. 31, 2015	Apr. 30, 2015	Feb. 12, 2015
Subsequent events
Interest rate (as a percent)		6.50%		6.50%
Cash dividend declared per common share (in dollars per share)		$ 0.125	$ 0.125	$ 0.25	$ 0.25
Common Stock
Subsequent events
Common stock authorized to be repurchased remaining amount		$ 2,300		$ 2,300			$ 3,800
Increase in aggregate repurchase authorization purchase amount							$ 3,500	$ 0
Subsequent event | Common Stock
Subsequent events
Cash dividend declared per common share (in dollars per share)	$ 0.28
Common stock authorized to be repurchased remaining amount	$ 6,300
Increase in aggregate repurchase authorization purchase amount	$ 5,000
Subsequent event | Senior notes and debentures
Subsequent events
Repurchased face amount						$ 142
Amount of debt repurchased						153
Subsequent event | Senior Notes Due 2025
Subsequent events
Aggregate principal amount of debt issued						$ 1,250
Interest rate (as a percent)						3.75%
Subsequent event | Senior Notes Due 2035
Subsequent events
Aggregate principal amount of debt issued						$ 500
Interest rate (as a percent)						4.70%
Subsequent event | Senior Notes Due 2045
Subsequent events
Aggregate principal amount of debt issued						$ 750
Interest rate (as a percent)						4.80%
Subsequent event | Callable Notes due 2045
Subsequent events
Aggregate principal amount of debt issued						$ 290
Interest rate (as a percent)						4.90%
Subsequent event | Senior Notes and Junior Subordinated Notes
Subsequent events
Repurchased face amount						$ 3,300
Amount of debt repurchased						$ 3,600

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FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	$ 45,159	$ 48,316	$ 44,263	$ 46,547
Net Realized and Unrealized Gains (Losses) Included in Income	815	681	1,690	1,421
Other Comprehensive Income (Loss)	(548)	359	(1,030)	795
Purchases, Sales, Issues and Settlements, Net	(1,509)	209	(1,343)	1,187
Gross Transfers in, assets	518	1,011	1,217	1,810
Gross Transfers out, assets	(154)	(642)	(516)	(1,826)
Balance End of Period	44,281	49,934	44,281	49,934
Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	125	143	59	335
Policyholder contract deposits
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(1,835)	(765)	(1,509)	(312)
Net Realized and Unrealized Gains (Losses) Included in Income	736	(58)	461	(532)
Other Comprehensive Income (Loss)	0	(16)	0	(24)
Purchases, Sales, Issues and Settlements-Net	(133)	(3)	(184)	26
Gross Transfers in, liabilities	0	0	0	0
Gross Transfers out, liabilities	0	0	0	0
Balance at the End of the Period	(1,232)	(842)	(1,232)	(842)
Policyholder contract deposits | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	110	(37)	40	(120)
Interest rate contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(69)	(98)	(74)	(100)
Net Realized and Unrealized Gains (Losses) Included in Income	4	8	0	2
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements-Net	3	23	12	32
Gross Transfers in, liabilities	0	0	0	0
Gross Transfers out, liabilities	0	0	0	(1)
Balance at the End of the Period	(62)	(67)	(62)	(67)
Interest rate contracts | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	3	8	(1)	4
Foreign exchange contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(8)	0	(8)	0
Net Realized and Unrealized Gains (Losses) Included in Income	2	3	3	3
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements-Net	(1)	(12)	(2)	(12)
Gross Transfers in, liabilities	0	0	0	0
Gross Transfers out, liabilities	0	0	0	0
Balance at the End of the Period	(7)	(9)	(7)	(9)
Foreign exchange contracts | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	1	3	3	4
Equity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	66	88	47	49
Net Realized and Unrealized Gains (Losses) Included in Income	(2)	11	6	8
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements-Net	(1)	(8)	10	(14)
Gross Transfers in, liabilities	0	0	0	48
Gross Transfers out, liabilities	0	0	0	0
Balance at the End of the Period	63	91	63	91
Equity contracts | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	(3)	11	2	5
Commodity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	0	1	0	1
Net Realized and Unrealized Gains (Losses) Included in Income	0	0	0	0
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements-Net	0	0	0	0
Gross Transfers in, liabilities	0	0	0	0
Gross Transfers out, liabilities	0	0	0	0
Balance at the End of the Period	0	1	0	1
Commodity contracts | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Purchases, Sales, Issues and Settlements-Net		0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	0	0	0	0
Credit contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(791)	(1,185)	(978)	(1,280)
Net Realized and Unrealized Gains (Losses) Included in Income	13	75	160	154
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements-Net	227	25	267	41
Gross Transfers in, liabilities	0	0	0	0
Gross Transfers out, liabilities	0	0	0	0
Balance at the End of the Period	(551)	(1,085)	(551)	(1,085)
Credit contracts | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	22	69	50	164
Other contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(59)	(109)	(59)	(109)
Net Realized and Unrealized Gains (Losses) Included in Income	59	18	73	35
Other Comprehensive Income (Loss)	(2)	48	0	47
Purchases, Sales, Issues and Settlements-Net	(14)	(10)	(30)	(26)
Gross Transfers in, liabilities	0	0	0	0
Gross Transfers out, liabilities	0	0	0	0
Balance at the End of the Period	(16)	(53)	(16)	(53)
Other contracts | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	33	16	48	27
Derivative liabilities, net
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(861)	(1,303)	(1,072)	(1,439)
Net Realized and Unrealized Gains (Losses) Included in Income	76	115	242	202
Other Comprehensive Income (Loss)	(2)	48	0	47
Purchases, Sales, Issues and Settlements-Net	214	18	257	21
Gross Transfers in, liabilities	0	0	0	48
Gross Transfers out, liabilities	0	0	0	(1)
Balance at the End of the Period	(573)	(1,122)	(573)	(1,122)
Derivative liabilities, net | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	56	107	102	204
Long-term debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(186)	(403)	(213)	(370)
Net Realized and Unrealized Gains (Losses) Included in Income	(13)	(5)	2	(8)
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements-Net	6	14	18	33
Gross Transfers in, liabilities	0	0	0	(70)
Gross Transfers out, liabilities	0		0	21
Balance at the End of the Period	(193)	(394)	(193)	(394)
Long-term debt | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Gross Transfers out, liabilities		0
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	(6)	(4)	13	5
Liabilities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(2,882)	(2,471)	(2,794)	(2,121)
Net Realized and Unrealized Gains (Losses) Included in Income	799	52	705	(338)
Other Comprehensive Income (Loss)	(2)	32	0	23
Purchases, Sales, Issues and Settlements-Net	87	29	91	80
Gross Transfers in, liabilities	0	0	0	(22)
Gross Transfers out, liabilities	0	0	0	20
Balance at the End of the Period	(1,998)	(2,358)	(1,998)	(2,358)
Liabilities | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	160	66	155	89
Bonds available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	30,609	31,989	29,683	30,001
Net Realized and Unrealized Gains (Losses) Included in Income	414	295	730	576
Other Comprehensive Income (Loss)	(510)	364	(481)	746
Purchases, Sales, Issues and Settlements, Net	(688)	726	106	2,093
Gross Transfers in, assets	412	1,002	456	1,716
Gross Transfers out, assets	(61)	(488)	(318)	(1,244)
Balance End of Period	30,176	33,888	30,176	33,888
Bonds available for sale | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Bonds available for sale | Obligations of states, municipalities and political subdivisions
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	2,256	2,042	2,159	1,080
Net Realized and Unrealized Gains (Losses) Included in Income	0	0	1	0
Other Comprehensive Income (Loss)	(124)	74	(79)	191
Purchases, Sales, Issues and Settlements, Net	93	7	158	853
Gross Transfers in, assets	0	0	0	0
Gross Transfers out, assets	(45)	(132)	(59)	(133)
Balance End of Period	2,180	1,991	2,180	1,991
Bonds available for sale | Obligations of states, municipalities and political subdivisions | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Bonds available for sale | Non-U.S. government
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	34	17	30	16
Net Realized and Unrealized Gains (Losses) Included in Income	0	0	0	0
Other Comprehensive Income (Loss)	(1)	0	(1)	(1)
Purchases, Sales, Issues and Settlements, Net	0	4	4	6
Gross Transfers in, assets	0	4	0	4
Gross Transfers out, assets	0	0	0	0
Balance End of Period	33	25	33	25
Bonds available for sale | Non-U.S. government | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Bonds available for sale | Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	1,827	1,815	1,883	1,255
Net Realized and Unrealized Gains (Losses) Included in Income	14	9	14	6
Other Comprehensive Income (Loss)	(50)	33	(33)	53
Purchases, Sales, Issues and Settlements, Net	(85)	(71)	(146)	(67)
Gross Transfers in, assets	412	707	456	1,355
Gross Transfers out, assets	0	(297)	(56)	(406)
Balance End of Period	2,118	2,196	2,118	2,196
Bonds available for sale | Corporate debt | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Bonds available for sale | Residential mortgage backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	17,345	15,764	16,805	14,941
Net Realized and Unrealized Gains (Losses) Included in Income	281	251	539	495
Other Comprehensive Income (Loss)	(99)	127	(171)	260
Purchases, Sales, Issues and Settlements, Net	(430)	67	(76)	624
Gross Transfers in, assets	0	119	0	119
Gross Transfers out, assets	0	0	0	(111)
Balance End of Period	17,097	16,328	17,097	16,328
Bonds available for sale | Residential mortgage backed securities (RMBS) | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Bonds available for sale | Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	2,694	5,741	2,696	5,735
Net Realized and Unrealized Gains (Losses) Included in Income	22	17	46	23
Other Comprehensive Income (Loss)	(40)	129	(30)	240
Purchases, Sales, Issues and Settlements, Net	17	(7)	47	(57)
Gross Transfers in, assets	0	69	0	69
Gross Transfers out, assets	(16)	(32)	(82)	(93)
Balance End of Period	2,677	5,917	2,677	5,917
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	6,453	6,610	6,110	6,974
Net Realized and Unrealized Gains (Losses) Included in Income	97	18	130	52
Other Comprehensive Income (Loss)	(196)	1	(167)	3
Purchases, Sales, Issues and Settlements, Net	(283)	726	119	734
Gross Transfers in, assets	0	103	0	169
Gross Transfers out, assets	0	(27)	(121)	(501)
Balance End of Period	6,071	7,431	6,071	7,431
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Other Bond securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	9,423	10,337	8,923	10,615
Net Realized and Unrealized Gains (Losses) Included in Income	318	378	431	758
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements, Net	(726)	(508)	(860)	(946)
Gross Transfers in, assets	15	9	641	9
Gross Transfers out, assets	(28)	0	(133)	(220)
Balance End of Period	9,002	10,216	9,002	10,216
Other Bond securities | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	125	143	59	335
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	1,288	1,069	1,105	937
Net Realized and Unrealized Gains (Losses) Included in Income	45	23	26	51
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements, Net	16	(32)	220	72
Gross Transfers in, assets	15	2	44	2
Gross Transfers out, assets	(27)	0	(58)	0
Balance End of Period	1,337	1,062	1,337	1,062
Other Bond securities | Residential mortgage backed securities (RMBS) | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	31	2	1	17
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	269	770	369	844
Net Realized and Unrealized Gains (Losses) Included in Income	8	21	8	38
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements, Net	(54)	(40)	(154)	(131)
Gross Transfers in, assets	0	6	0	6
Gross Transfers out, assets	0	0	0	0
Balance End of Period	223	757	223	757
Other Bond securities | Commercial mortgage-backed securities (CMBS) | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	1	19	8	32
Other Bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	7,850	8,498	7,449	8,834
Net Realized and Unrealized Gains (Losses) Included in Income	265	334	397	669
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements, Net	(688)	(436)	(926)	(887)
Gross Transfers in, assets	0	1	581	1
Gross Transfers out, assets	(1)	0	(75)	(220)
Balance End of Period	7,426	8,397	7,426	8,397
Other Bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	93	122	51	286
Equity securities available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	1	0	1	1
Net Realized and Unrealized Gains (Losses) Included in Income	2	0	2	0
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements, Net	(3)	0	(3)	0
Gross Transfers in, assets	0	0	0	0
Gross Transfers out, assets	0	0	0	1
Balance End of Period	0	0	0	0
Equity securities available for sale | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Equity securities available for sale | Common Stock
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	1	0	1	1
Net Realized and Unrealized Gains (Losses) Included in Income	2	0	2	0
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements, Net	(3)	0	(3)	0
Gross Transfers in, assets	0	0	0	0
Gross Transfers out, assets	0	0	0	1
Balance End of Period	0	0	0	0
Equity securities available for sale | Common Stock | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Equity securities available for sale | Preferred Stock
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	0	0	0	0
Net Realized and Unrealized Gains (Losses) Included in Income	0	0	0	0
Other Comprehensive Income (Loss)	0	0	0	0
Purchases, Sales, Issues and Settlements, Net	0	0	0	0
Gross Transfers in, assets	0	0	0	0
Gross Transfers out, assets	0	0	0	0
Balance End of Period	0	0	0	0
Equity securities available for sale | Preferred Stock | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0	0	0	0
Equity securities available for sale | Mutual Funds
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	0
Gross Transfers in, assets	0
Balance End of Period	0		0
Equity securities available for sale | Mutual Funds | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0
Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	5,098	5,990	5,650	5,930
Net Realized and Unrealized Gains (Losses) Included in Income	81	8	527	87
Other Comprehensive Income (Loss)	(38)	(5)	(549)	49
Purchases, Sales, Issues and Settlements, Net	(92)	(15)	(586)	34
Gross Transfers in, assets	91	0	98	85
Gross Transfers out, assets	(65)	(154)	(65)	(361)
Balance End of Period	5,075	5,824	5,075	5,824
Other invested assets | Trading Revenue
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	0		0
Mortgage and other loans receivable
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	6		6
Purchases, Sales, Issues and Settlements, Net	0	6	0	6
Balance End of Period	6	$ 6	6	$ 6
Equity securities trading
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	22		0
Gross Transfers in, assets			22
Balance End of Period	$ 22		$ 22

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INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Available-for-sale Securities Disclosures
Gross Realized Gains	$ 218	$ 233	$ 863	$ 479
Aggregate fair value of available for sale securities sold	7,100	5,900	14,000	12,000
Net realized capital gains (losses)	200	200	700	400
Gross Realized Losses	62	17	185	50
Fixed maturity securities
Available-for-sale Securities Disclosures
Gross Realized Gains	194	194	343	410
Gross Realized Losses	59	13	177	44
Equity securities available for sale
Available-for-sale Securities Disclosures
Gross Realized Gains	24	39	520	69
Gross Realized Losses	$ 3	$ 4	$ 8	$ 6

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EQUITY (Details - Shares Outstanding) $ / shares in Units, $ in Billions			1 Months Ended	6 Months Ended
	Jun. 25, 2015 $ / shares	Mar. 26, 2015 $ / shares	Apr. 30, 2015 USD ($) shares	Jun. 30, 2015 USD ($) item shares	Aug. 03, 2015 USD ($)	Feb. 12, 2015 USD ($)
The following table presents a roll forward of outstanding shares:
Treasury Shares, beginning of year				(530,744,521)
Shares, beginning of year				1,906,671,492
Shares, beginning of year				1,375,926,971
Shares issued - Issuance (in shares)				27,089
Shares repurchased				(68,505,540)
Treasury Shares, end of period				(599,222,972)
Shares, end of period				1,906,671,492
Shares, end of period				1,307,448,520
Dividend paid (in dollars per share) | $ / shares	$ 0.125	$ 0.125
ASR
The following table presents a roll forward of outstanding shares:
Number of shares received from financial institution				0
Amount paid to financial institution | $				$ 0.0
AIG
The following table presents a roll forward of outstanding shares:
Shares repurchased				(69,000,000)
Aggregate purchase price of repurchased shares | $				$ 3.7
AIG | ASR
The following table presents a roll forward of outstanding shares:
Number of accelerated stock repurchase (ASR) agreements with third-party financial institutions | item				3
Percentage of share repurchased during share repurchase agreement				0.00%
Common Stock Issued
The following table presents a roll forward of outstanding shares:
Shares, beginning of year				1,906,671,492
Shares issued - Issuance (in shares)				0
Shares repurchased				0
Shares, end of period				1,906,671,492
Aggregate repurchase authorization purchase amount | $			$ 3.5			$ 0.0
Common stock authorized to be repurchased remaining amount | $			$ 3.8	$ 2.3
Common Stock Issued | ASR
The following table presents a roll forward of outstanding shares:
Partial receipt of shares under an ASR agreement				0
Common Stock Issued | AIG
The following table presents a roll forward of outstanding shares:
Aggregate repurchase authorization purchase amount | $						$ 0.0
Common Stock Issued | AIG | ASR
The following table presents a roll forward of outstanding shares:
Additional shares received from financial institution			0
Common Stock Issued | Subsequent event
The following table presents a roll forward of outstanding shares:
Aggregate repurchase authorization purchase amount | $					$ 5.0
Common stock authorized to be repurchased remaining amount | $					$ 6.3
Treasury Stock
The following table presents a roll forward of outstanding shares:
Treasury Shares, beginning of year				(530,744,521)
Shares issued - Issuance (in shares)				27,089
Shares repurchased				(68,505,540)
Treasury Shares, end of period				(599,222,972)

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Fixed maturity securities:
Bonds available for sale, at fair value (amortized cost: 2015 - $242,917; 2014 - $243,307)	$ 255,066	$ 259,859
Other bond securities, at fair value (See Note 5)	16,598	19,712
Equity securities:
Common and preferred stock available for sale, at fair value (cost: 2015 - $2,385; 2014 - $1,930)	4,755	4,395
Other common and preferred stock, at fair value (See Note 5)	1,323	1,049
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2015 - $6; 2014 - $6)	27,143	24,990
Other invested assets (portion measured at fair value: 2015 - $9,389; 2014 - $9,394)	29,829	34,518
Short-term investments (portion measured at fair value: 2015 - $2,281; 2014 - $1,684)	13,865	11,243
Total investments	348,579	355,766
Cash	1,937	1,758
Accrued investment income	2,632	2,712
Premiums and other receivables, net of allowance	13,258	12,031
Reinsurance assets, net of allowance	21,361	21,959
Deferred income taxes	18,665	19,339
Deferred policy acquisition costs	10,270	9,827
Derivative assets, at fair value	1,256	1,604
Other assets, including restricted cash of $461 in 2015 and $2,025 in 2014	9,894	10,549
Separate account assets, at fair value	82,135	80,036
Total assets	509,987	515,581
Liabilities:
Liability for unpaid losses and loss adjustment expenses	72,939	77,260
Unearned premiums	22,786	21,324
Future policy benefits for life and accident and health insurance contracts	42,787	42,749
Policyholder contract deposits (portion measured at fair value: 2015 - $1,268; 2014 - $1,561)	124,480	124,613
Other policyholder funds (portion measured at fair value: 2015 - $8; 2014 - $8)	4,378	4,669
Derivative liabilities, at fair value	1,546	2,273
Other liabilities (portion measured at fair value: 2015 - $284; 2014 - $350)	23,934	24,168
Long-term debt (portion measured at fair value: 2015 - $4,269; 2014 - $5,466)	30,360	31,217
Separate account liabilities	82,135	80,036
Total liabilities	$ 405,345	$ 408,309
Contingencies, commitments and guarantees (see Note 9)
AIG shareholders' equity:
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2015 - 1,906,671,492 and 2014 - 1,906,671,492	$ 4,766	$ 4,766
Treasury stock, at cost; 2015 - 599,222,972 shares; 2014 - 530,744,521 shares	(23,165)	(19,218)
Additional paid-in capital	81,330	80,958
Retained earnings	33,707	29,775
Accumulated other comprehensive income	7,620	10,617
Total AIG shareholders equity	104,258	106,898
Non-redeemable noncontrolling interests	384	374
Total equity	104,642	107,272
Total liabilities and equity	$ 509,987	$ 515,581

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FAIR VALUE MEASUREMENTS (Details - Investments in Certain Entities Carried at Fair Value Using Net Asset Value Per Share) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	$ 8,914	$ 8,359
Unfunded Commitments	970	986
Private equity funds:
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	2,902	3,160
Unfunded Commitments	$ 939	980
Average original expected lives	10 years
Second investment redemption notice period	2 years
Private equity funds: | Expected remaining lives of 3 years or less
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
First threshold level of remaining lives	3 years
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	84.00%
Private equity funds: | Expected remaining lives of less than 4 to 6 years
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Second threshold level of remaining lives	6 years
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	5.00%
Private equity funds: | Expected remaining lives of less than 7 to 10 years
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Third threshold level of remaining lives	10 years
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	11.00%
Leveraged buyout
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	$ 2,008	2,275
Unfunded Commitments	446	450
Real Estate / Infrastructure
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	359	384
Unfunded Commitments	203	227
Venture capital
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	119	121
Unfunded Commitments	34	26
Distressed
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	157	164
Unfunded Commitments	43	43
Other..
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	259	216
Unfunded Commitments	213	234
Hedge funds:
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	6,012	5,199
Unfunded Commitments	$ 31	6
Hedge fund investments redeemable monthly (as a percent)	14.00%
Hedge fund investments redeemable quarterly (as a percent)	49.00%
Hedge fund investments redeemable semi-annually (as a percent)	14.00%
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	44.00%
Event-driven
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	$ 1,288	1,109
Unfunded Commitments	0	0
Long-short
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	2,880	2,428
Unfunded Commitments	16	1
Macro
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	562	498
Unfunded Commitments	0	0
Distressed.
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	753	731
Unfunded Commitments	15	5
Emerging markets
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	347	308
Unfunded Commitments	0	0
Other hedge funds
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	182	125
Unfunded Commitments	$ 0	$ 0

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 1,791	$ 3,036	$ 4,268	$ 4,648
Other comprehensive income (loss), net of tax
Change in unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken	(36)	26	(108)	115
Change in unrealized appreciation (depreciation) of all other investments	(2,991)	2,355	(2,452)	5,140
Change in foreign currency translation adjustments	(37)	47	(496)	(111)
Change in retirement plan liabilities adjustment	27	(2)	56	7
Other comprehensive income (loss)	(3,037)	2,426	(3,000)	5,151
Comprehensive income (loss)	(1,246)	5,462	1,268	9,799
Comprehensive loss attributable to noncontrolling interests	(9)	(37)	(3)	(34)
Comprehensive income (loss) attributable to AIG	$ (1,237)	$ 5,499	$ 1,271	$ 9,833

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INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Available-for-sale Securities Disclosures
Amortized cost	$ 242,917		$ 242,917		$ 243,307
Fair value	259,821		259,821		264,254
Purchased Credit Impaired (PCI) Securities
Available-for-sale Securities Disclosures
Contractually required payments (principal and interest)	32,118		32,118
Cash flows expected to be collected	25,976		25,976
Recorded investment in acquired securities	17,330		17,330
Outstanding principal balance	17,232		17,232		16,962
Amortized cost	12,542		12,542		12,216
Fair value	13,669		13,669		$ 13,462
Changes in activity for the accretable yield on PCI securities:
Balance, beginning of year	6,765	$ 7,170	6,865	$ 6,940
Newly purchased PCI securities	170	247	415	769
Disposals	(13)	0	(13)	0
Accretion	(221)	(219)	(441)	(431)
Effect of changes in interest rate indices	(6)	(172)	(144)	(231)
Net reclassification from non-accretable difference, including effects of prepayments	138	16	151	(5)
Balance, end of year	$ 6,833	$ 7,042	$ 6,833	$ 7,042

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EMPLOYEE BENEFITS (Tables)

6 Months Ended

Jun. 30, 2015

EMPLOYEE BENEFITS

Components of net periodic benefit cost

	Pension						Postretirement
		U.S.		Non-U.S.				U.S.		Non-U.S.
(in millions)		Plans		Plans		Total		Plans		Plans		Total
Three Months Ended June 30, 2015
Components of net periodic benefit cost:
Service cost	$	51	$	10	$	61	$	1	$	1	$	2
Interest cost		55		6		61		2		-		2
Expected return on assets		(72)		(6)		(78)		-		-		-
Amortization of prior service (credit) cost		(8)		-		(8)		(2)		-		(2)
Amortization of net loss		33		2		35		-		-		-
Other		-		(1)		(1)		-		-		-
Net periodic benefit cost	$	59	$	11	$	70	$	1	$	1	$	2
Three Months Ended June 30, 2014
Components of net periodic benefit cost:
Service cost	$	44	$	10	$	54	$	1	$	1	$	2
Interest cost		57		8		65		3		-		3
Expected return on assets		(71)		(5)		(76)		-		-		-
Amortization of prior service (credit) cost		(9)		-		(9)		(3)		-		(3)
Amortization of net loss		11		2		13		-		-		-
Other		-		-		-		-		-		-
Net periodic benefit cost	$	32	$	15	$	47	$	1	$	1	$	2
Six Months Ended June 30, 2015
Components of net periodic benefit cost:
Service cost	$	103	$	21	$	124	$	3	$	2	$	5
Interest cost		110		12		122		4		1		5
Expected return on assets		(144)		(12)		(156)		-		-		-
Amortization of prior service (credit) cost		(16)		(1)		(17)		(5)		-		(5)
Amortization of net loss		65		5		70		-		-		-
Other		-		(1)		(1)		-		-		-
Net periodic benefit cost	$	118	$	24	$	142	$	2	$	3	$	5
Six Months Ended June 30, 2014
Components of net periodic benefit cost:
Service cost	$	88	$	21	$	109	$	2	$	1	$	3
Interest cost		114		15		129		5		1		6
Expected return on assets		(142)		(11)		(153)		-		-		-
Amortization of prior service (credit) cost		(17)		(1)		(18)		(5)		-		(5)
Amortization of net loss		22		4		26		-		-		-
Other		-		-		-		-		-		-
Net periodic benefit cost	$	65	$	28	$	93	$	2	$	2	$	4

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DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of derivative instruments) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	$ 114,603	$ 123,250
Gross Derivative Assets, Fair Value	4,076	4,825
Gross Derivative Liabilities, Notional Amount	110,623	103,914
Gross Derivative Liabilities, Fair Value	5,675	7,381
Derivative assets, Counterparty netting, Fair Value	(1,594)	(2,102)
Derivative assets, Cash collateral, Fair Value	(1,226)	(1,119)
Total derivative assets, net	1,256	1,604
Derivative liabilities, Counterparty netting, Fair Value	(1,594)	(2,102)
Derivative liabilities, Cash collateral, Fair Value	(1,276)	(1,429)
Total derivative liabilities, net	2,805	3,850
Less: Bifurcated embedded derivatives assets, fair value	0	0
Less: Bifurcated embedded derivative liabilities, fair value	1,259	1,577
Total derivative assets on consolidated balance sheet	1,256	1,604
Total derivative liabilities on consolidated balance sheet	1,546	2,273
Bifurcated embedded derivatives
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	0
Gross Derivative Assets, Fair Value	0
Gross Derivative Liabilities, Notional Amount	41,900	39,300
Gross Derivative Liabilities, Fair Value	1,200	1,500
Derivatives designated as hedging instruments | Interest rate contracts
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	604	155
Gross Derivative Assets, Fair Value	1	0
Gross Derivative Liabilities, Notional Amount	269	25
Gross Derivative Liabilities, Fair Value	1	2
Derivatives designated as hedging instruments | Foreign exchange contracts
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	1,384	611
Gross Derivative Assets, Fair Value	126	25
Gross Derivative Liabilities, Notional Amount	1,819	1,794
Gross Derivative Liabilities, Fair Value	95	239
Derivatives designated as hedging instruments | Equity contracts
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	19	7
Gross Derivative Assets, Fair Value	2	1
Gross Derivative Liabilities, Notional Amount	108	104
Gross Derivative Liabilities, Fair Value	1	13
Derivatives not designated as hedging instruments
Notional amounts and fair values of AIG's derivative instruments
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 | Interest rate contracts
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	62,048	65,070
Gross Derivative Assets, Fair Value	3,208	3,743
Gross Derivative Liabilities, Notional Amount	48,237	45,251
Gross Derivative Liabilities, Fair Value	2,497	3,183
Derivatives not designated as hedging instruments | Foreign exchange contracts
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	6,944	13,667
Gross Derivative Assets, Fair Value	549	815
Gross Derivative Liabilities, Notional Amount	13,216	8,516
Gross Derivative Liabilities, Fair Value	1,144	1,251
Derivatives not designated as hedging instruments | Equity contracts
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	7,409	7,565
Gross Derivative Assets, Fair Value	156	206
Gross Derivative Liabilities, Notional Amount	45,298	42,387
Gross Derivative Liabilities, Fair Value	1,328	1,615
Derivatives not designated as hedging instruments | Commodity contracts
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	13	15
Gross Derivative Assets, Fair Value	0	0
Gross Derivative Liabilities, Notional Amount	12	11
Gross Derivative Liabilities, Fair Value	6	6
Derivatives not designated as hedging instruments | Credit contracts
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	5	5
Gross Derivative Assets, Fair Value	4	4
Gross Derivative Liabilities, Notional Amount	1,373	5,288
Gross Derivative Liabilities, Fair Value	555	982
Derivatives not designated as hedging instruments | Other contracts
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount	36,177	36,155
Gross Derivative Assets, Fair Value	30	31
Gross Derivative Liabilities, Notional Amount	291	538
Gross Derivative Liabilities, Fair Value	$ 48	90
Derivatives not designated as hedging instruments | Bifurcated embedded derivatives
Notional amounts and fair values of AIG's derivative instruments
Gross Derivative Assets, Notional Amount		0
Gross Derivative Assets, Fair Value		$ 0

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INCOME TAXES

6 Months Ended

Jun. 30, 2015

INCOME TAXES

INCOME TAXES

13. INCOME TAXES

Interim Tax Calculation Method

We use the estimated annual effective tax rate method in computing our interim tax provision. Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions.

Interim Tax Expense (Benefit)

For the three- and six-month periods ended June 30,2015, the effective tax rate on income from continuing operations was 30.4 percent and 32.8 percent, respectively. The effective tax rate on income from continuing operations in both periods differs from the statutory tax rate of 35 percent primarily due to tax benefits associated with tax exempt interest income, reclassifications from accumulated other comprehensive income to income from continuing operations related to the deferred tax asset valuation allowance previously released to accumulated other comprehensive income, and changes in the deferred tax asset valuation allowance associated with certain foreign jurisdictions. For the three-month period ended June 30, 2015, there was a decrease in the deferred tax asset valuation allowance associated with certain foreign jurisdictions primarily attributable to changes in projections of future taxable income. The six-month period ended June 30, 2015includes an increase in the deferred tax asset valuation allowanceprimarily attributable tothe effects of changes in the Japanese tax law enacted on March 31, 2015, partially offset by changes in projections of future taxable income.

For the three- and six-month periods ended June 30,2014, the effective tax rate on income from continuing operations was 32.9 percent and 30.9 percent, respectively. The effective tax rate on income from continuing operations in both periods differs from the statutory tax rate of 35 percent primarily due to tax benefits associated with tax exempt interest income and a decrease in the U.S. Life Insurance Companies’ capital loss carryforward deferred tax asset valuation allowance.

Assessment of Deferred Tax Asset Valuation Allowance

The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed.

Our framework for assessing the recoverability of the deferred tax asset requires us to consider all available evidence, including:

• the nature, frequency, and amount of cumulative financial reporting income and losses in recent years;
• the sustainability of recent operating profitability of our subsidiaries;
• the predictability of future operating profitability of the character necessary to realize the net deferred tax asset;
• the carryforward period for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and
• prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset.

In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operating loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction.  Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though the carryforward period for the foreign tax credit is shorter than for the net operating loss.  Our U.S. federal consolidated income tax group includes both life companies and non-life companies. While the U.S. tax liability of our non-life companies can be offset by the net operating loss carryforwards, only a portion of the U.S. tax liability of our life companies can be offset by the 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. As of June 30, 2015, 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, including income generated from prudent and feasible actions and tax planning strategies could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period.

Changes in market conditions, including rising interest rates, may impact unrealized tax losses in the U.S. Life Insurance Companies’ available for sale portfolio and could affect our assessment of the recoverability of the related deferred tax assets. The deferred tax asset relates to the unrealized losses for which the carryforward period has not yet begun, as such when assessing its recoverability we consider our ability and intent to hold the underlying securities to recovery.

During the three-month period ended June 30,2015, we recognized a decrease of $40 million in our deferred tax asset valuation allowance associated with certain foreign jurisdictions, primarily attributable to changes in projections of future taxable income.

During the six-month period ended June 30,2015, we recognized an increase of $53 million in our deferred tax asset valuation allowance associated with certain foreign jurisdictions, primarily attributable to changes in the Japanese tax law enacted on March 31, 2015 partially offset by changes in projections of future taxable income.

Tax Examinations and Litigation

On March 29, 2013, the U.S District Court for the Southern District of New York denied our motion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions. On March 17, 2014, the U.S. Court of Appeals for the Second Circuit (the Second Circuit) granted our petition for an immediate appeal of the partial summary judgment decision. Oral arguments took place on May 18, 2015 and we are waiting for a decision from the Second Circuit.

We will vigorously defend our position and we continue to believe that we have adequate reserves for any liability that could result from the IRS actions.

We continue to monitor legal and other developments in this area,including recent decisions affecting other taxpayers, and evaluate the effect, if any, on our position.

Accounting for Uncertainty in Income Taxes

At both June 30,2015 and December 31,2014, our unrecognized tax benefits, excluding interest and penalties, were $4.4 billion. At June 30,2015 and December 31,2014, our unrecognized tax benefits related to tax positions that, if recognized, would not affect the effective tax rate because they relate to such factors as the timing, rather the permissibility, of the deduction were $0.2 billion and $0.3 billion, respectively. Accordingly, at June 30,2015 and December 31,2014, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $4.2 billion and $4.1 billion, respectively.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At both June 30,2015 and December 31,2014, we had accrued liabilities of $1.1 billion for the payment of interest (net of the federal benefit) and penalties. For the six-month periods ended June 30,2015 and 2014, we accrued benefits of $15 million and $62 million, respectively, for the payment of interest and penalties.

We regularly evaluate adjustments proposed by taxing authorities. At June 30,2015, such proposed adjustments would not have resulted in a material change to our consolidated financial condition, although it is possible that the effect could be material to our consolidated results of operations for an individual reporting period. Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next 12 months, based on the information currently available, we do not expect any change to be material to our consolidated financial condition.

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INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

6 Months Ended

Jun. 30, 2015

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

Condensed Consolidating Balance Sheets

		American
		International					Reclassifications
		Group, Inc.				Other		and	Consolidated
(in millions)	(As Guarantor)		AIGLH			Subsidiaries		Eliminations		AIG
June 30, 2015
Assets:
Short-term investments	$	8,278	$	-	$	6,263	$	(676)	$	13,865
Other investments(a)		9,345		-		325,186		183		334,714
Total investments		17,623		-		331,449		(493)		348,579
Cash		91		4		1,842		-		1,937
Loans to subsidiaries(b)		30,956		-		642		(31,598)		-
Investment in consolidated subsidiaries(b)		62,134		34,034		-		(96,168)		-
Other assets, including deferred income taxes		21,957		117		140,098		(2,701)		159,471
Total assets	$	132,761	$	34,155	$	474,031	$	(130,960)	$	509,987

Liabilities:
Insurance liabilities	$	-	$	-	$	267,370	$	-	$	267,370
Long-term debt		21,288		707		8,365		-		30,360
Other liabilities, including intercompany balances(a)(c)		6,581		66		104,368		(3,400)		107,615
Loans from subsidiaries(b)		634		-		30,774		(31,408)		-
Total liabilities		28,503		773		410,877		(34,808)		405,345
Total AIG shareholders’ equity		104,258		33,382		62,770		(96,152)		104,258
Non-redeemable noncontrolling interests		-		-		384		-		384
Total equity		104,258		33,382		63,154		(96,152)		104,642
Total liabilities and equity	$	132,761	$	34,155	$	474,031	$	(130,960)	$	509,987
December 31, 2014
Assets:
Short-term investments	$	6,078	$	-	$	6,231	$	(1,066)	$	11,243
Other investments(a)		11,415		-		333,108		-		344,523
Total investments		17,493		-		339,339		(1,066)		355,766
Cash		26		91		1,641		-		1,758
Loans to subsidiaries(b)		31,070		-		779		(31,849)		-
Investment in consolidated subsidiaries(b)		62,811		35,850		-		(98,661)		-
Other assets, including deferred income taxes		23,835		2,305		141,826		(9,909)		158,057
Total assets	$	135,235	$	38,246	$	483,585	$	(141,485)	$	515,581
Liabilities:
Insurance liabilities	$	-	$	-	$	270,615	$	-	$	270,615
Long-term debt		21,190		820		9,207		-		31,217
Other liabilities, including intercompany balances(a)(c)		6,196		2,314		108,189		(10,222)		106,477
Loans from subsidiaries(b)		951		-		30,898		(31,849)		-
Total liabilities		28,337		3,134		418,909		(42,071)		408,309
Total AIG shareholders’ equity		106,898		35,112		64,302		(99,414)		106,898
Non-redeemable noncontrolling interests		-		-		374		-		374
Total equity		106,898		35,112		64,676		(99,414)		107,272
Total liabilities and equity	$	135,235	$	38,246	$	483,585	$	(141,485)	$	515,581

(a)Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment.

(b) Eliminated in consolidation.

(c) For June 30,2015 and December 31,2014, includes intercompany tax payable of $1.8 billion and $343 million, respectively, and intercompany derivative liabilities of $33 million and $275 million, respectively, for AIG Parent (as Guarantor) and intercompany tax receivable of $31 million and $3 million, respectively, for AIGLH.

Condensed Consolidating Statements of Income (loss)

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended June 30, 2015
Revenues:
Equity in earnings of consolidated subsidiaries*	$	2,319	$	749	$	-	$	(3,068)	$	-
Other income		14		-		15,916		(231)		15,699
Total revenues		2,333		749		15,916		(3,299)		15,699
Expenses:
Interest expense		267		14		65		(30)		316
Loss on extinguishment of debt		297		-		45		-		342
Other expenses		301		47		12,343		(202)		12,489
Total expenses		865		61		12,453		(232)		13,147
Income (loss) from continuing operations before income tax
expense (benefit)		1,468		688		3,463		(3,067)		2,552
Income tax expense (benefit)		(333)		(20)		1,129		1		777
Income (loss) from continuing operations		1,801		708		2,334		(3,068)		1,775
Income (loss) from discontinued operations, net of income taxes		(1)		-		17		-		16
Net income (loss)		1,800		708		2,351		(3,068)		1,791
Less:
Net loss from continuing operations attributable to
noncontrolling interests		-		-		(9)		-		(9)
Net income (loss) attributable to AIG	$	1,800	$	708	$	2,360	$	(3,068)	$	1,800
Three Months Ended June 30, 2014
Revenues:
Equity in earnings of consolidated subsidiaries*	$	3,503	$	744	$	-	$	(4,247)	$	-
Other income		255		-		15,953		(72)		16,136
Total revenues		3,758		744		15,953		(4,319)		16,136
Expenses:
Interest expense		410		29		57		(33)		463
Loss on extinguishment of debt		17		-		17		-		34
Other expenses		784		17		10,399		(41)		11,159
Total expenses		1,211		46		10,473		(74)		11,656
Income (loss) from continuing operations before income tax
expense (benefit)		2,547		698		5,480		(4,245)		4,480
Income tax expense (benefit)		(527)		123		1,878		-		1,474
Income (loss) from continuing operations		3,074		575		3,602		(4,245)		3,006
Income (loss) from discontinued operations, net of income taxes		(1)		-		31		-		30
Net income (loss)		3,073		575		3,633		(4,245)		3,036
Less:
Net loss from continuing operations attributable to
noncontrolling interests		-		-		(37)		-		(37)
Net income (loss) attributable to AIG	$	3,073	$	575	$	3,670	$	(4,245)	$	3,073

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Six Months Ended June 30, 2015
Revenues:
Equity in earnings of consolidated subsidiaries*	$	5,076	$	1,522	$	-	$	(6,598)	$	-
Other income		164		-		31,830		(320)		31,674
Total revenues		5,240		1,522		31,830		(6,918)		31,674
Expenses:
Interest expense		556		30		130		(60)		656
Loss on extinguishment of debt		358		-		45		7		410
Other expenses		547		42		23,952		(261)		24,280
Total expenses		1,461		72		24,127		(314)		25,346
Income (loss) from continuing operations before income tax
expense (benefit)		3,779		1,450		7,703		(6,604)		6,328
Income tax expense (benefit)		(490)		(63)		2,630		-		2,077
Income (loss) from continuing operations		4,269		1,513		5,073		(6,604)		4,251
Income (loss) from discontinued operations, net of income taxes		(1)		-		18		-		17
Net income (loss)		4,268		1,513		5,091		(6,604)		4,268
Less:
Net income (loss) from continuing operations attributable to
noncontrolling interests		-		-		-		-		-
Net income (loss) attributable to AIG	$	4,268	$	1,513	$	5,091	$	(6,604)	$	4,268
Six Months Ended June 30, 2014
Revenues:
Equity in earnings of consolidated subsidiaries*	$	5,488	$	1,474	$	-	$	(6,962)	$	-
Other income		479		-		32,004		(184)		32,299
Total revenues		5,967		1,474		32,004		(7,146)		32,299
Expenses:
Interest expense		832		58		118		(66)		942
Loss on extinguishment of debt		305		-		17		(50)		272
Other expenses		1,026		18		23,368		(80)		24,332
Total expenses		2,163		76		23,503		(196)		25,546
Income (loss) from continuing operations before income tax
expense (benefit)		3,804		1,398		8,501		(6,950)		6,753
Income tax expense (benefit)		(876)		(21)		3,004		(19)		2,088
Income (loss) from continuing operations		4,680		1,419		5,497		(6,931)		4,665
Income (loss) from discontinued operations, net of income taxes		2		-		(19)		-		(17)
Net income (loss)		4,682		1,419		5,478		(6,931)		4,648
Less:
Net loss from continuing operations attributable to
noncontrolling interests		-		-		(34)		-		(34)
Net income (loss) attributable to AIG	$	4,682	$	1,419	$	5,512	$	(6,931)	$	4,682

* Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income (loss)

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended June 30, 2015
Net income (loss)	$	1,800	$	708	$	2,351	$	(3,068)	$	1,791
Other comprehensive income (loss)		(3,037)		3,582		53,694		(57,276)		(3,037)
Comprehensive income (loss)		(1,237)		4,290		56,045		(60,344)		(1,246)
Total comprehensive loss attributable to noncontrolling interests		-		-		(9)		-		(9)
Comprehensive income (loss) attributable to AIG	$	(1,237)	$	4,290	$	56,054	$	(60,344)	$	(1,237)
Three Months Ended June 30, 2014
Net income (loss)	$	3,073	$	575	$	3,633	$	(4,245)	$	3,036
Other comprehensive income (loss)		2,426		1,287		1,884		(3,171)		2,426
Comprehensive income (loss)		5,499		1,862		5,517		(7,416)		5,462
Total comprehensive loss attributable to noncontrolling interests		-		-		(37)		-		(37)
Comprehensive income (loss) attributable to AIG	$	5,499	$	1,862	$	5,554	$	(7,416)	$	5,499
Six Months Ended June 30, 2015
Net income (loss)	$	4,268	$	1,513	$	5,091	$	(6,604)	$	4,268
Other comprehensive income (loss)		(2,997)		4,490		52,633		(57,126)		(3,000)
Comprehensive income (loss)		1,271		6,003		57,724		(63,730)		1,268
Total comprehensive loss attributable to noncontrolling interests		-		-		(3)		-		(3)
Comprehensive income (loss) attributable to AIG	$	1,271	$	6,003	$	57,727	$	(63,730)	$	1,271
Six Months Ended June 30, 2014
Net income (loss)	$	4,682	$	1,419	$	5,478	$	(6,931)	$	4,648
Other comprehensive income (loss)		5,151		2,781		3,733		(6,514)		5,151
Comprehensive income (loss)		9,833		4,200		9,211		(13,445)		9,799
Total comprehensive loss attributable to noncontrolling interests		-		-		(34)		-		(34)
Comprehensive income (loss) attributable to AIG	$	9,833	$	4,200	$	9,245	$	(13,445)	$	9,833

Condensed Consolidating Statements of Cash Flows

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries*		Eliminations*		AIG
Six Months Ended June 30, 2015
Net cash provided by operating activities		2,230		527		2,581		(4,845)		493
Cash flows from investing activities:
Sales of investments		4,703		-		36,970		(2,667)		39,006
Purchase of investments		(942)		-		(32,708)		2,667		(30,983)
Loans to subsidiaries - net		189		-		130		(319)		-
Contributions to subsidiaries - net		-		-		-		-		-
Net change in restricted cash		-		-		1,462		-		1,462
Net change in short-term investments		(2,093)		-		(600)		-		(2,693)
Other, net		(65)		-		(1,441)		-		(1,506)
Net cash provided by investing activities		1,792		-		3,813		(319)		5,286
Cash flows from financing activities:
Issuance of long-term debt		2,342		-		432		-		2,774
Repayments of long-term debt		(2,016)		(114)		(1,571)		-		(3,701)
Purchase of Common Stock		(3,743)		-		-		-		(3,743)
Intercompany loans - net		(130)		-		(189)		319		-
Cash dividends paid		(335)		(500)		(4,345)		4,845		(335)
Other, net		(75)		-		(486)		-		(561)
Net cash (used in) financing activities		(3,957)		(614)		(6,159)		5,164		(5,566)
Effect of exchange rate changes on cash		-		-		(34)		-		(34)
Change in cash		65		(87)		201		-		179
Cash at beginning of year		26		91		1,641		-		1,758
Reclassification to assets held for sale		-		-		-		-		-
Cash at end of period	$	91	$	4	$	1,842	$	-	$	1,937
Six Months Ended June 30, 2014
Net cash (used in) provided by operating activities		5,324		2,586		(466)		(5,803)		1,641
Cash flows from investing activities:
Sales of investments		1,714		-		30,677		(77)		32,314
Purchase of investments		(624)		-		(27,610)		77		(28,157)
Loans to subsidiaries - net		(530)		-		227		303		-
Contributions to subsidiaries - net		111		-		-		(111)		-
Net change in restricted cash		(20)		-		(608)		-		(628)
Net change in short-term investments		65		-		433		-		498
Other, net		(27)		-		(338)		-		(365)
Net cash provided by investing activities		689		-		2,781		192		3,662

Cash flows from financing activities:
Issuance of long-term debt		-		-		3,028		-		3,028
Repayments of long-term debt		(3,314)		-		(2,713)		-		(6,027)
Intercompany loans - net		(52)		(175)		530		(303)		-
Purchase of common stock		(1,849)		-		-		-		(1,849)
Cash dividends paid to shareholders		(361)		(2,460)		(3,343)		5,803		(361)
Other, net		(307)		-		(397)		111		(593)
Net cash (used in) financing activities		(5,883)		(2,635)		(2,895)		5,611		(5,802)
Effect of exchange rate changes on cash		-		-		(3)		-		(3)
Change in cash		130		(49)		(583)		-		(502)
Cash at beginning of year		30		51		2,160		-		2,241
Change in cash of businesses held for sale		-		-		88		-		88
Cash at end of period	$	160	$	2	$	1,665	$	-	$	1,827

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 2015 period for:
Interest:
Third party	$	585	$	(32)	$	(1,313)	$	-	$	(760)
Intercompany		-		-		-		-		-
Taxes:
Income tax authorities	$	(6)	$	-	$	(332)	$	-	$	(338)
Intercompany		1,249		-		(1,249)		-		-
Cash (paid) received during the 2014 period for:
Interest:
Third party	$	(946)	$	(51)	$	(730)	$	-	$	(1,727)
Intercompany		(1)		(4)		5		-		-
Taxes:
Income tax authorities	$	(17)	$	-	$	(465)	$	-	$	(482)
Intercompany		953		-		(953)		-		-

Supplementary disclosure of non-cash activities

Six Months Ended June 30,
(in millions)		2015		2014
Intercompany non-cash financing and investing activities:
Capital contributions	$	111	$	993
Dividends received in the form of securities		1,551		1,538
Return of capital*		-		4,836
Consideration received from sale of shares of AerCap		500		-

* Includes$4.8 billion return of capital from AIG Capital Corporation related to the sale of ILFC.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2015

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

15.SUBSEQUENT EVENTS

Debt Repurchases

In July 2015, we repurchased, through cash tender offers, (i) approximately $142 million aggregate principal amount of certain senior notes issued by AIG for an aggregate purchase price of approximately $153million, and (ii) approximately $3.3 billion of certain senior notes and junior subordinated notes issued or guaranteed by AIG for an aggregate purchase price of approximately $3.6 billion.

Debt Offerings

In July 2015, we issued $1.25 billion aggregate principal amount of 3.750% Notes due 2025, $500 million aggregate principal amount of 4.700% Notes due 2035 and $750 million aggregate principal amount of 4.800% Notes due 2045. In addition, in July 2015, we issued $290 million aggregate principal amount of 4.90% Callable Notes due 2045.

Dividends Declared and Increase in Share Repurchase Authorization

On August 3, 2015, our Board of Directors declared a cash dividend on AIG Common Stock of $0.28 per share, payable on September 28, 2015 to shareholders of record on September 14, 2015. The payment of any future dividends will be at the discretion of our Board of Directors and will depend on various factors, including the regulatory framework applicable to us.

On August 3, 2015, our Board of Directors authorized an additional increase to its previous repurchase authorization of AIG Common Stock of $5.0 billion, resulting in an aggregate remaining authorization on such date of approximately $6.3 billion.  Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise.  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 share repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factors. 

See Note 10 to the Condensed Consolidated Financial Statements.

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DERIVATIVES AND HEDGE ACCOUNTING (Details - Global Capital Market Derivatives) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Credit derivatives:
Fair value of hybrid securities	$ 5,900.0	$ 6,100.0
Par value of hybrid securities	11,700.0	12,300.0
Credit Risk-Related Contingent Features
Credit derivatives:
Collateral posted	2,000.0	2,700.0
Aggregate fair value of net liability position	2,000.0	$ 2,500.0
Additional collateral requirements, one-notch downgrade	33.0
Further additional collateral requirements, one-notch downgrade	$ 74.0
Global Capital Markets (GCM) derivatives | Super Senior CDS | Arbitrage | Multi-sector CDOs
Credit derivatives:
Derivative weighted average maturity	6 years

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CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Millions	Total	Total AIG Shareholders' Equity	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Non redeemable Non-controlling Interests
Balance at Dec. 31, 2013	$ 101,081	$ 100,470	$ 4,766	$ (14,520)	$ 80,899	$ 22,965	$ 6,360	$ 611
Increase (Decrease) in Stockholders' Equity
Purchase of common stock	(1,849)	(1,849)	0	(1,849)
Net income (loss) attributable to AIG or other noncontrolling interests	4,648	4,682	0	0	0	4,682	0	(34)
Dividends	(361)	(361)				(361)
Other comprehensive income (loss)	5,151	5,151	0	0	0	0	5,151	0
Net increase (decrease) due to deconsolidation	(127)							(127)
Contributions from noncontrolling interests	9	0	0	0	0	0	0	9
Distributions to noncontrolling interests	(37)	0	0	0	0	0	0	(37)
Other	66	68	0	0	68	0	0	(2)
Balance at Jun. 30, 2014	108,581	108,161	4,766	(16,369)	80,967	27,286	11,511	420
Balance at Dec. 31, 2014	107,272	106,898	4,766	(19,218)	80,958	29,775	10,617	374
Increase (Decrease) in Stockholders' Equity
Purchase of common stock	(3,947)	(3,947)	0	(3,947)	0	0	0	0
Net income (loss) attributable to AIG or other noncontrolling interests	4,268	4,268	0	0	0	4,268	0	0
Dividends	(335)	(335)	0	0	0	(335)	0	0
Other comprehensive income (loss)	(3,000)	(2,997)	0	0	0	0	(2,997)	(3)
Deferred income taxes	(12)	(12)			(12)
Net increase (decrease) due to deconsolidation	9	0	0	0	0	0	0	9
Contributions from noncontrolling interests	0	0	0	0	0	0	0	0
Distributions to noncontrolling interests	(3)	0	0	0	0	0	0	(3)
Other	390	383	0	0	384	(1)	0	7
Balance at Jun. 30, 2015	$ 104,642	$ 104,258	$ 4,766	$ (23,165)	$ 81,330	$ 33,707	$ 7,620	$ 384

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical - assets and liabilities) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Assets:
Bonds available for sale, amortized cost	$ 242,917	$ 243,307
Common and preferred stocks available for sale, cost	2,385	1,930
Mortgage and other loans receivable, portion measured at fair value	6	6
Other invested assets, portion measured at fair value	9,389	9,394
Short-term investments, portion measured at fair value	2,281	1,684
Other assets, restriced cash	461	2,025
Liabilities:
Policyholder contract deposits, portion measured at fair value	1,268	1,561
Other policyholder funds, portion measured at fair value	8	8
Other liabilities, portion measured at fair value	284	350
Long-term debt, portion measured at fair value	$ 4,269	$ 5,466

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DERIVATIVES AND HEDGE ACCOUNTING

6 Months Ended

Jun. 30, 2015

DERIVATIVES AND HEDGE ACCOUNTING

DERIVATIVES AND HEDGE ACCOUNTING

8. DERIVATIVES AND HEDGE ACCOUNTING

We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. See Note 11 to the Consolidated Financial Statements in the 2014 Annual Report for a discussion of our accounting policies and procedures regarding derivatives and hedge accounting.

The following table presents the notional amounts of our derivative instruments, and the fair values of derivative assets and liabilities in the Condensed Consolidated Balance Sheets:

	June 30, 2015								December 31, 2014
	Gross Derivative Assets				Gross Derivative Liabilities				Gross Derivative Assets				Gross Derivative Liabilities
		Notional		Fair		Notional		Fair		Notional		Fair		Notional		Fair
(in millions)		Amount		Value		Amount		Value		Amount		Value		Amount		Value
Derivatives designated as
hedging instruments:(a)
Interest rate contracts	$	604	$	1	$	269	$	1	$	155	$	-	$	25	$	2
Foreign exchange contracts		1,384		126		1,819		95		611		25		1,794		239
Equity contracts		19		2		108		1		7		1		104		13
Derivatives not designated
as hedging instruments:(a)
Interest rate contracts		62,048		3,208		48,237		2,497		65,070		3,743		45,251		3,183
Foreign exchange contracts		6,944		549		13,216		1,144		13,667		815		8,516		1,251
Equity contracts(b)		7,409		156		45,298		1,328		7,565		206		42,387		1,615
Commodity contracts		13		-		12		6		15		-		11		6
Credit contracts(c)		5		4		1,373		555		5		4		5,288		982
Other contracts(d)		36,177		30		291		48		36,155		31		538		90
Total derivatives, gross	$	114,603	$	4,076	$	110,623	$	5,675	$	123,250	$	4,825	$	103,914	$	7,381
Counterparty netting(e)				(1,594)				(1,594)				(2,102)				(2,102)
Cash collateral(f)				(1,226)				(1,276)				(1,119)				(1,429)
Total derivatives, net				1,256				2,805				1,604				3,850
Less: Bifurcated embedded derivatives				-				1,259				-				1,577
Total derivatives on condensed
consolidated balance sheets			$	1,256			$	1,546			$	1,604			$	2,273

(a)Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.

(b) Notional amount of derivative assets and fair value of derivative assets were zero at both June 30,2015 and December 31,2014, related to bifurcated embedded derivatives. Notional amount of derivative liabilities and fair value of derivative liabilities include $41.9 billion and $1.2 billion, respectively, at June 30,2015, and $39.3 billion and $1.5 billion, respectively, at December 31,2014, related to bifurcated embedded derivatives. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets.

(c) As of June 30,2015 and December 31,2014, includes super senior multi-sector CDOs with a net notional amount of $1.2 billion and $2.6 billion (fair value liability of $526 million and $947 million), respectively. The expected weighted average maturity as of June 30,2015 is six years. Because of long-term maturities of the credit default swaps (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 June 30,2015, there were no super senior corporate debt/CLOs remaining. As of December 31,2014, includes super senior corporate debt/CLOs with a net notional amount of $2.5 billion (fair value liability of $7 million).

(d)Consists primarily of contracts with multiple underlying exposures.

(e) Represents netting of derivative exposures covered by a qualifying master netting agreement.

(f) Represents cash collateral posted and received that is eligible for netting.

Collateral

We engage in derivative transactions that are not subject to a clearing requirement directly with unaffiliated third parties, in most cases, under International Swaps and Derivatives Association, Inc. (ISDA) Master Agreements. Many of the ISDA 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 enable collateral to be obtained from a counterparty on an upfront or contingent basis. We minimize the risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and generally requiring additional collateral to be posted upon the occurrence of certain events or circumstances. In addition, certain derivative transactions have provisions that require collateral to be posted upon a downgrade of our long-term debt ratings or give the counterparty the right to terminate the transaction. In the case of some of the derivative transactions, upon a downgrade of our long-term debt ratings, as an alternative to posting collateral and subject to certain conditions, we may assign the transaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action. The actual amount of collateral required to be posted to counterparties in the event of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade.

Collateral posted by us to third parties for derivative transactions was $3.2 billion and $3.3 billion at June 30,2015 and December 31,2014, respectively. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $1.3 billion at both June 30,2015 and December 31,2014. We generally can repledge or resell this collateral.

Offsetting

We have elected to present all derivative receivables and derivative payables, and the related cash collateral received and paid, on a net basis on our Condensed Consolidated Balance Sheets when a legally enforceable ISDA Master Agreement exists between us and our derivative counterparty. An ISDA Master Agreement is an agreement governing multiple derivative transactions between two counterparties. The ISDA Master Agreement generally provides for the net settlement of all, or a specified group, of these derivative transactions, as well as transferred collateral, through a single payment, and in a single currency, as applicable. The net settlement provisions apply in the event of a default on, or affecting any, one derivative transaction or a termination event affecting all, or a specified group of, derivative transactions governed by the ISDA Master Agreement.

Hedge Accounting

We designated certain derivatives entered into with third parties as fair value hedges of available for sale investment securities held by our insurance subsidiaries. The fair value hedges include foreign currency forwards and cross currency swaps designated as hedges of the change in fair value of foreign currency denominated available for sale securities attributable to changes in foreign exchange rates. We also designated certain interest rate swaps entered into with third parties as fair value hedges of fixed-rate GICs attributable to changes in benchmark interest rates.

We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.S. dollar functional currency 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 three-and six-month periods ended June 30,2015, we recognized gains (losses) of $(21) million and $73million, respectively, and for the three- and six-month periods ended June 30,2014, we recognized gains of zero and $3 million, respectively, included in Change in foreign currency translation adjustment in Other comprehensive income related to the net investment hedge relationships.

A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges.

The following table presents the gain (loss) recognized in earnings on our derivative instruments in fair value hedging relationships in the Condensed Consolidated Statements of Income:

	Gains/(Losses) Recognized in Earnings for:				Including Gains/(Losses) Attributable to:
	Hedging		Hedged		Hedge		Excluded
(in millions)	Derivatives(a)		Items		Ineffectiveness		Components		Other(b)
Three Months Ended June 30, 2015
Interest rate contracts:
Realized capital gains/(losses)	$	-	$	-	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		2		-		-		2
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		(60)		73		-		13		-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		4		-		-		4
Gain/(Loss) on extinguishment of debt		-		1		-		-		1
Equity contracts:
Realized capital gains/(losses)		(13)		13		-		-		-
Three Months Ended June 30, 2014
Interest rate contracts:
Realized capital gains/(losses)	$	-	$	-	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		10		-		-		10
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Foreign exchange contracts:
Realized capital gains/(losses)		32		(27)		-		(4)		9
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		-		-		-		-
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts
Realized capital gains/(losses)		(15)		15		-		-		-

Six Months Ended June 30, 2015
Interest rate contracts:
Realized capital gains/(losses)	$	1	$	(1)	$	-	$	-	$	-
Interest credited to policyholder
account balances		-		-		-		-		-
Other income		-		5		-		-		5
Gain/(Loss) on extinguishment of debt		-		13		-		-		13
Foreign exchange contracts:
Realized capital gains/(losses)		72		(56)		-		13		3
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		10		-		-		10
Gain/(Loss) on extinguishment of debt		-		17		-		-		17
Equity contracts:
Realized capital gains/(losses)		(19)		18		-		(1)		-
Six Months Ended June 30, 2014
Interest rate contracts:
Realized capital gains/(losses)	$	1	$	(2)	$	-	$	-	$	(1)
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		28		-		-		28
Gain/(Loss) on extinguishment of debt		-		50		-		-		50
Foreign exchange contracts:
Realized capital gains/(losses)		56		(59)		-		(12)		9
Interest credited to policyholder
account balances		-		(1)		-		-		(1)
Other income		-		-		-		-		-
Gain/(Loss) on extinguishment of debt		-		-		-		-		-
Equity contracts
Realized capital gains/(losses)		(14)		14		-		-		-

(a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged item.

(b) Represents accretion/amortization of opening fair value of the hedged item at inception of hedge relationship, amortization of basis adjustment on hedged item following the discontinuation of hedge accounting, and the release of debt basis adjustment following the repurchase of issued debt that was part of previously-discontinued fair value hedge relationship.

Derivatives Not Designated as Hedging Instruments

The following table presents the effect of derivative instruments not designated as hedging instruments in the Condensed Consolidated Statements of Income:

	Gains (Losses) Recognized in Earnings
	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
By Derivative Type:
Interest rate contracts	$	(428)	$	49	$	(67)	$	187
Foreign exchange contracts		(52)		37		270		23
Equity contracts*		815		3		547		(425)
Commodity contracts		-		-		(1)		1
Credit contracts		13		75		160		154
Other contracts		(34)		23		(11)		39
Total	$	314	$	187	$	898	$	(21)
By Classification:
Policy fees	$	20	$	16	$	39	$	31
Net investment income		(13)		(3)		14		(4)
Net realized capital gains (losses)		305		82		476		(194)
Other income		8		89		370		138
Policyholder benefits and claims incurred		(6)		3		(1)		8
Total	$	314	$	187	$	898	$	(21)

* Includes embedded derivative gains of $847 million and $669 million for the three- and six-month periods ended June 30,2015, respectively, and embedded derivative gains (losses) of $40 million and $(356) million for the three- and six-month periods ended June 30,2014, respectively.

Derivatives and Other Instruments

Our businesses use derivatives and other instruments as part of their financial risk management. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium- and long-term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and options) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures, and foreign currency transactions. Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities. The derivatives are effective economic hedges of the exposures that they are meant to offset.

In addition to hedging activities, we also enter into derivative instruments with respect to investment operations, which may include, among other things, CDSs and purchasing investments with embedded derivatives, such as equity-linked notes and convertible bonds.

Credit Risk-Related Contingent Features

The aggregate fair value of our derivative instruments that contain credit risk-related contingent features that were in a net liability position at June 30,2015 and December 31,2014, was approximately $2.0 billion and $2.5 billion, respectively. The aggregate fair value of assets posted as collateral under these contracts at June 30,2015 and December 31,2014, was $2.0billion and $2.7 billion, respectively.

We estimate that at June 30,2015, based on our outstanding financial derivative transactions, a one-notch downgrade of our long-term senior debt ratings to BBB+ by Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. (S&P), would permit counterparties to make additional collateral calls and permit certain counterparties to elect early termination of contracts, resulting in anegligibleamount of corresponding collateral postings and termination payments; a one-notch downgrade to Baa2 by Moody’s Investors’ Service, Inc. (Moody’s) and an additional one-notch downgrade to BBB by S&P would result in approximately $33 million in additional collateral postings and termination payments; and a further one-notch downgrade to Baa3 by Moody’s and BBB- by S&P would result in approximately $74 million in additional collateral postings and termination payments.

Additional collateral postings upon downgrade are estimated based on the factors in the individual collateral posting provisions of the CSA with each counterparty and current exposure as of June 30,2015. Factors considered in estimating the termination payments upon downgrade include current market conditions, the complexity of the derivative transactions, historical termination experience and other observable market events such as bankruptcy and downgrade events that have occurred at other companies. Our estimates are also based on the assumption that counterparties will terminate based on their net exposure to us. The actual termination payments could significantly differ from our estimates given market conditions at the time of downgrade and the level of uncertainty in estimating both the number of counterparties who may elect to exercise their right to terminate and the payment that may be triggered in connection with any such exercise.

Hybrid Securities with Embedded Credit Derivatives

We invest in hybrid securities (such as credit-linked notes) with the intent of generating income, and not specifically to acquire exposure to embedded derivative risk. As is the case with our other investments in RMBS, CMBS, CDOs and ABS, our investments in these hybrid securities are exposed to losses only up to the amount of our initial investment in the hybrid security. Other than our initial investment in the hybrid securities, we have no further obligation to make payments on the embedded credit derivatives in the related hybrid securities.

We elect to account for our investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recognized in Net investment income and Other income. Our investments in these hybrid securities are reported as Other bond securities in the Condensed Consolidated Balance Sheets. The fair values of these hybrid securities were $5.9 billionand $6.1billion at June 30,2015and December 31,2014, respectively. These securities have par amounts of $11.7 billion and $12.3 billion at June 30,2015 and December 31,2014, respectively, and have remaining stated maturity dates that extend to 2052.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 29, 2015
Document and Entity Information
Entity Registrant Name	AMERICAN INTERNATIONAL GROUP INC
Entity Central Index Key	0000005272
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,293,886,920
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

XML

CONTINGENCIES, COMMITMENTS AND GUARANTEES

6 Months Ended

Jun. 30, 2015

CONTINGENCIES, COMMITMENTS AND GUARANTEES

CONTINGENCIES, COMMITMENTS AND GUARANTEES

9. CONTINGENCIES, COMMITMENTS AND GUARANTEES

In the normal course of business, various contingent liabilities and commitments are entered into by AIG and our subsidiaries. In addition, AIG Parent guarantees various obligations of certain subsidiaries.

Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on AIG’s consolidated financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period.

Legal Contingencies

Overview. In the normal course of business, AIG and our subsidiaries are, like others in the insurance and financial services industries in general, subject to litigation, including claims for punitive damages. In our insurance and mortgage guaranty operations, litigation arising from claims settlement activities is generally considered in the establishment of our liability for unpaid losses and loss adjustment expenses. However, the potential for increasing jury awards and settlements makes it difficult to assess the ultimate outcome of such litigation. AIG is also subject to derivative, class action and other claims asserted by its shareholders and others alleging, among other things, breach of fiduciary duties by its directors and officers and violations of insurance laws and regulations, as well as federal and state securities laws. In the case of any derivative action brought on behalf of AIG, any recovery would accrue to the benefit of AIG.

Various regulatory and governmental agencies have been reviewing certain transactions and practices of AIG and our subsidiaries in connection with industry-wide and other inquiries into, among other matters, certain business practices of current and former operating insurance subsidiaries. We have cooperated, and will continue to cooperate, in producing documents and other information in response to subpoenas and other requests.

AIG’s Subprime Exposure, AIGFP Credit Default Swap Portfolio and Related Matters

AIG, AIG Financial Products Corp. and related subsidiaries (collectively AIGFP), and certain directors and officers of AIG, AIGFP and other AIG subsidiaries have been named in various actions relating to our exposure to the U.S. residential subprime mortgage market, unrealized market valuation losses on AIGFP’s super senior credit default swap portfolio, losses and liquidity constraints relating to our securities lending program and related disclosure and other matters (Subprime Exposure Issues).

Consolidated 2008 Securities Litigation.Between May 21, 2008 and January 15, 2009, eight purported securities class action complaints were filed against AIG and certain directors and officers of AIG and AIGFP, AIG’s outside auditors, and the underwriters of various securities offerings in the United States District Court for the Southern District of New York (the Southern District of New York), alleging claims under the Securities Exchange Act of 1934, as amended (the Exchange Act), or claims under the Securities Act of 1933, as amended (the Securities Act). On March 20, 2009, the Court consolidated all eight of the purported securities class actions as In re American International Group, Inc. 2008 Securities Litigation (the Consolidated 2008 Securities Litigation).

On May 19, 2009, the lead plaintiff in the Consolidated 2008 Securities Litigation filed a consolidated complaint on behalf of purchasers of AIG Common Stock during the alleged class period of March 16, 2006 through September 16, 2008, and on behalf of purchasers of various AIG securities offered pursuant to AIG’s shelf registration statements. The consolidated complaint alleges that defendants made statements during the class period in press releases, AIG’s quarterly and year-end filings, during conference calls, and in various registration statements and prospectuses in connection with the various offerings that were materially false and misleading and that artificially inflated the price of AIG Common Stock. The alleged false and misleading statements relate to, among other things, the Subprime Exposure Issues. The consolidated complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act and Sections 11, 12(a)(2), and 15 of the Securities Act.

On July 15, 2014, lead plaintiff and all defendants except AIG’s outside auditors accepted a mediator’s proposal to settle the Consolidated 2008 Securities Litigation for a cash payment by AIG of $960 million (the AIG Settlement).  On August 1, 2014, lead plaintiff and AIG’s outside auditors accepted a mediator’s proposal to resolve the Consolidated 2008 Securities Litigation for a cash payment by the outside auditors (the Auditor Settlement and, collectively with the AIG Settlement, the Settlement). On October 22, 2014, AIG made a cash payment of $960 million, which is being held in escrow until all funds are distributed pursuant to the AIG Settlement. The AIG Settlement became final on June 29, 2015.

Individual Securities Litigations. Between November 18, 2011 and February 9, 2015, eleven separate, though similar, securities actions were filed asserting claims substantially similar to those in the Consolidated 2008 Securities Litigation against AIG and certain directors and officers of AIG and AIGFP (one such action also names as defendants AIG’s outside auditor and two such actions also name as defendants the underwriters of various securities offerings). Three such actions, including one settled by AIG, have been voluntarily dismissed; the remainder are now pending in the Southern District of New York. Motions to dismiss some or all of the claims asserted in all other remaining actions are currently pending.

On March 27, 2015, an additional securities action was filed in state court in Orange County, California asserting a claim against AIG pursuant to Section 11 of the Securities Act (the California Action) that is substantially similar to those in the Consolidated 2008 Securities Litigation and the eight individual securities litigations pending in the Southern District of New York. On April 30, 2015, AIG removed the action from state court in Orange County, California to federal court in the Central District of California. On June 10, 2015, the action was remanded to the state court in Orange County, California. On July 10, 2015, AIG filed a motion to stay the California Action.

On April 29, 2015, AIG filed a complaint for declaratory relief in the Southern District of New York seeking a declaration that the Section 11 claims filed in the California Action are time-barred (the SDNY Action). On July 10, 2015, AIG filed a motion for summary judgment and the plaintiff in the California Action cross moved to dismiss the SDNY Action.

We have accrued our current estimate of probable loss with respect to these litigations and other potential related litigations.

ERISA Actions – Southern District of New York.Between June 25, 2008 and November 25, 2008, AIG, certain directors and officers of AIG, and members of AIG’s Retirement Board and Investment Committee were named as defendants in eight purported class action complaints asserting claims on behalf of participants in certain pension plans sponsored by AIG or its subsidiaries. The Court subsequently consolidated these eight actions as In re American International Group, Inc. ERISA Litigation II. On December 19, 2014, lead plaintiffs’ counsel filed under seal a third consolidated amended complaint. The action purports to be brought as a class action under the Employee Retirement Income Security Act of 1974, as amended (ERISA), on behalf of all participants in or beneficiaries of certain benefit plans of AIG and its subsidiaries that offered shares of AIG Common Stock. In the third consolidated amended complaint, plaintiffs allege, among other things, that the defendants breached their fiduciary responsibilities to plan participants and their beneficiaries under ERISA, by continuing to offer the AIG Stock Fund as an investment option in the plans after it allegedly became imprudent to do so. The alleged ERISA violations relate to, among other things, the defendants’ purported failure to monitor and/or disclose certain matters, including the Subprime Exposure Issues.

On January 6, 2015, the parties informed the Court that they had accepted a mediator’s proposal to settle the action for $40 million. On June 5, 2015, the Court issued an order preliminarily approving the settlement and notice procedures, and setting a final settlement hearing for September 18, 2015. The entirety of the $40 million settlement is expected to be paid by AIG’s fiduciary liability insurance carriers.

Canadian Securities Class Action – Ontario Superior Court of Justice.On November 12, 2008, an application was filed in the Ontario Superior Court of Justice for leave to bring a purported class action against AIG, AIGFP, certain directors and officers of AIG and Joseph Cassano, the former Chief Executive Officer of AIGFP, pursuant to the Ontario Securities Act. If the Court grants the application, a class plaintiff will be permitted to file a statement of claim against defendants. The proposed statement of claim would assert a class period of March 16, 2006 through September 16, 2008 and would allege that during this period defendants made false and misleading statements and omissions in quarterly and annual reports and during oral presentations in violation of the Ontario Securities Act.

On April 17, 2009, defendants filed a motion record in support of their motion to stay or dismiss for lack of jurisdiction and forum non conveniens. On July 12, 2010, the Court adjourned a hearing on the motion pending a decision by the Supreme Court of Canada in a pair of actions captioned Club Resorts Ltd. v. Van Breda, 2012 SCC 17. On April 18, 2012, the Supreme Court of Canada clarified the standard for determining jurisdiction over foreign and out-of-province defendants, such as AIG, by holding that a defendant must have some form of “actual,” as opposed to a merely “virtual,” presence to be deemed to be “doing business” in the jurisdiction. The Supreme Court of Canada also suggested that in future cases, defendants may contest jurisdiction even when they are found to be doing business in a Canadian jurisdiction if their business activities in the jurisdiction are unrelated to the subject matter of the litigation. The matter has been stayed pending further developments in the Consolidated 2008 Securities Litigation. On June 29, 2015, counsel for AIG and AIGFP provided notice to counsel for plaintiff in the action that a final order approving the settlement in the Consolidated 2008 Securities Litigation was entered and can no longer be appealed. Plaintiff in the action must move to lift the stay before October 27, 2015 or the stay will become permanent and plaintiffs will have no further rights to pursue the application or proposed class proceeding. As of August 3, 2015, plaintiff has not yet moved to lift the stay.

In plaintiff’s proposed statement of claim, plaintiff alleged general and special damages of $500 million and punitive damages of $50 million plus prejudgment interest or such other sums as the Court finds appropriate. As of August 3, 2015, the Court has not determined whether it has jurisdiction or granted plaintiff’s application to file a statement of claim, no merits discovery has occurred and the action has been stayed. As a result, we are unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

Starr International Litigation

On November 21, 2011, Starr International Company, Inc. (SICO) filed a complaint against the United States in the United States Court of Federal Claims (the Court of Federal Claims), bringing claims, both individually and on behalf of the classes defined below and derivatively on behalf of AIG (the SICO Treasury Action). The complaint challenges the government’s assistance of AIG, pursuant to which AIG entered into a credit facility with the Federal Reserve Bank of New York (the FRBNY, and such credit facility, the FRBNY Credit Facility) and the United States received an approximately 80 percent ownership in AIG. The complaint alleges that the interest rate imposed on AIG and the appropriation of approximately 80 percent of AIG’s equity was discriminatory, unprecedented, and inconsistent with liquidity assistance offered by the government to other comparable firms at the time and violated the Equal Protection, Due Process, and Takings Clauses of the U.S. Constitution.

In the SICO Treasury Action, the only claims naming AIG as a party (as a nominal defendant) are derivative claims on behalf of AIG. On September 21, 2012, SICO made a pre-litigation demand on our Board demanding that we pursue the derivative claims or allow SICO to pursue the claims on our behalf. On January 9, 2013, our Board unanimously refused SICO’s demand in its entirety and on January 23, 2013, counsel for the Board sent a letter to counsel for SICO describing the process by which our Board considered and refused SICO’s demand and stating the reasons for our Board’s determination.

On March 11, 2013, SICO filed a second amended complaint in the SICO Treasury Action alleging that its demand was wrongfully refused. On June 26, 2013, the Court of Federal Claims granted AIG’s and the United States’ motions to dismiss SICO’s derivative claims in the SICO Treasury Action 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 provided notice of class certification to potential members of the classes, who, pursuant to a court order issued on April 25, 2013, had to return opt-in consent forms by September 16, 2013 to participate in either class. 286,908 holders of AIG Common Stock during the two class periods have opted into the classes.

On June 15, 2015, the Court of Federal Claims issued its opinion and order in the SICO Treasury Action. The Court found that the United States exceeded its statutory authority by exacting approximately 80 percent of AIG’s equity in exchange for the FRBNY Credit Facility, but that AIG shareholders suffered no damages as a result. SICO argued during trial that the two classes are entitled to a total of approximately $40 billion in damages, plus interest. The Court also found that the United States was not liable to the Reverse Stock Split Class in connection with the reverse stock split 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 has 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.

In the Court of Federal Claims, the United States has alleged, as an affirmative defense in its answer, that AIG is obligated to indemnify the FRBNY and its 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) SICO prevails on its appeal and ultimately receives an award of damages; (b) the United States then commences an action against AIG seeking indemnification; and (c) the United States is successful in such an action through any appellate process. If SICO prevails on its claims and the United States seeks indemnification from AIG, AIG intends to assert defenses thereto. A reversal of the Court of Federal Claim’s decision and judgment and a final determination that the United States is liable for damages, together with a final determination that AIG is obligated to indemnify the United States for any such damages, could have a material adverse effect on our business, consolidated financial condition and results of operations.

False Claims Act Complaint

On February 25, 2010, a complaint was filed in the United States District Court for the Southern District of California by two individuals (Relators) seeking to assert claims on behalf of the United States against AIG and certain other defendants, including Goldman Sachs and Deutsche Bank, under the False Claims Act. Relators filed a first amended complaint on September 30, 2010, adding certain additional defendants, including Bank of America and SociétéGénérale. The first amended complaint alleged that defendants engaged in fraudulent business practices in respect of their activities in the over-the-counter market for collateralized debt obligations, and submitted false claims to the United States in connection with the FRBNY Credit Facility and Maiden Lane II LLC and Maiden Lane III LLC entities (the Maiden Lane Interests) through, among other things, misrepresenting AIG’s ability and intent to repay amounts drawn on the FRBNY Credit Facility, and misrepresenting the value of the securities that the Maiden Lane Interests acquired from AIG and certain of its counterparties. The first amended complaint sought unspecified damages pursuant to the False Claims Act in the amount of three times the damages allegedly sustained by the United States as well as interest, attorneys’ fees, costs and expenses. The complaint and the first amended complaint were initially filed and maintained under seal while the United States considered whether to intervene in the action. On or about April 28, 2011, after the United States declined to intervene, the District Court lifted the seal, and Relators served the first amended complaint on AIG on July 11, 2011. On April 19, 2013, the Court granted AIG’s motion to dismiss, dismissing the first amended complaint in its entirety, without prejudice, giving the Relators the opportunity to file a second amended complaint. On May 24, 2013, the Relators filed a second amended complaint, which attempted to plead the same claims as the prior complaints and did not specify an amount of alleged damages. AIG and its co-defendants filed motions to dismiss the second amended complaint on August 9, 2013.On March 29, 2014, the Court dismissed the second amended complaint with prejudice. On April 30, 2014, the Relators filed a Notice of Appeal to the Ninth Circuit. Briefing of the Relators’ appeal was completed on May 1, 2015. We are unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

Litigation Matters Relating to AIG’s Insurance Operations

Caremark.AIG and certain of its subsidiaries have been named defendants in two putative class actions in state court in Alabama that arise out of the 1999 settlement of class and derivative litigation involving Caremark Rx, Inc. (Caremark). The plaintiffs in the second-filed action intervened in the first-filed action, and the second-filed action was dismissed. An excess policy issued by a subsidiary of AIG with respect to the 1999 litigation was expressly stated to be without limit of liability. In the current actions, plaintiffs allege that the judge approving the 1999 settlement was misled as to the extent of available insurance coverage and would not have approved the settlement had he known of the existence and/or unlimited nature of the excess policy. They further allege that AIG, its subsidiaries, and Caremark are liable for fraud and suppression for misrepresenting and/or concealing the nature and extent of coverage.

The complaints filed by the plaintiffs and the intervenors request compensatory damages for the 1999 class in the amount of $3.2 billion, plus punitive damages. AIG and its subsidiaries deny the allegations of fraud and suppression, assert that information concerning the excess policy was publicly disclosed months prior to the approval of the settlement, that the claims are barred by the statute of limitations, and that the statute cannot be tolled in light of the public disclosure of the excess coverage. The plaintiffs and intervenors, in turn, have asserted that the disclosure was insufficient to inform them of the nature of the coverage and did not start the running of the statute of limitations.

On August 15, 2012, the trial court entered an order granting plaintiffs’ motion for class certification, and on September 12, 2014, the Alabama Supreme Court affirmed that order. AIG and the other defendants’ petition for rehearing of that decision was denied on February 27, 2015. The matter has been remanded to the trial court for general discovery and adjudication of the merits. Trial is expected to commence on February 22, 2016. AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

Regulatory and Related Matters

In April 2007, the National Association of Insurance Commissioners (NAIC) formed a Settlement Review Working Group, directed by the State of Indiana, to review the Workers’ Compensation Residual Market Assessment portion of the settlement between AIG, the Office of the New York Attorney General, and the New York State Department of Insurance.  In late 2007, the Settlement Review Working Group, under the direction of Indiana, Minnesota and Rhode Island, recommended that a multi-state targeted market conduct examination focusing on workers’ compensation insurance be commenced under the direction of the NAIC’s Market Analysis Working Group.  AIG was informed of the multi-state targeted market conduct examination in January 2008.  The lead states in the multi-state examination were Delaware, Florida, Indiana, Massachusetts, Minnesota, New York, Pennsylvania and Rhode Island.  All other states (and the District of Columbia) agreed to participate in the multi-state examination. The examination focused on legacy issues related to certain AIG entities’ writing and reporting of workers compensation insurance between 1985 and 1996. 

On December 17, 2010, AIG and the lead states reached an agreement to settle all regulatory liabilities arising out of the subjects of the multistate examination.  This regulatory settlement agreement, which was agreed to by all 50 states and the District of Columbia, included, among other terms, (i) AIG’s payment of $100 million in regulatory fines and penalties; (ii) AIG’s payment of $46.5 million in outstanding premium taxes and assessments; (iii) AIG’s agreement to enter into a compliance plan describing agreed-upon specific steps and standards for evaluating AIG’s ongoing compliance with state regulations governing the setting of workers’ compensation insurance premium rates and the reporting of workers’ compensation premiums; and (iv) AIG’s agreement to pay up to $150 million in contingent fines in the event that AIG fails to comply substantially with the compliance plan requirements. In furtherance of the compliance plan, the agreement provided for a monitoring period from May 29, 2012 to May 29, 2014 leading up to a compliance plan examination.  After the close of the monitoring period, as part of preparation for the actual conduct of the compliance plan examination, on or about October 1, 2014, AIG and the lead states agreed upon corrective action plans to address particular issues identified during the monitoring period.  The compliance plan examination is ongoing. There can be no assurance that the result of the compliance plan examination will not result in a fine, have a material adverse effect on AIG’s ongoing operations or lead to civil litigation.

In connection with a multi-state examination of certain accident and health products, including travel products, issued by National Union Fire Insurance Company of Pittsburgh, Pa. (National Union), AIG Property Casualty Inc. (formerly Chartis Inc.), on behalf of itself, National Union, and certain of AIG Property Casualty Inc.’s insurance and non-insurance companies (collectively, the AIG PC parties) entered into a Regulatory Settlement Agreement with regulators from 50 U.S. jurisdictions effective November 29, 2012. Under the agreement, and without admitting any liability for the issues raised in the examination, the AIG PC parties (i) paid a civil penalty of $50 million, (ii) entered into a corrective action plan describing agreed-upon specific steps and standards for evaluating the AIG PC parties’ ongoing compliance with laws and regulations governing the issues identified in the examination, and (iii) agreed to pay a contingent fine in the event that the AIG PC parties fail to satisfy certain terms of the corrective action plan. National Union and other AIG companies are also currently subject to civil litigation relating to the conduct of their accident and health business, and may be subject to additional litigation relating to the conduct of such business from time to time in the ordinary course. There can be no assurance that any regulatory action resulting from the issues identified will not have a material adverse effect on our ongoing operations of the business subject to the agreement, or on similar business written by other AIG carriers.

On June 23, 2015, United Guaranty Residential Insurance Company (UGRIC), on behalf of itself and its affiliates (collectively, United Guaranty Corporation (UGC)), entered into a consent order with the Minnesota Commissioner of Commerce (the MN Commissioner), which had alleged that UGC violated the Real Estate Settlement Procedures Act and other state laws in connection with its practices with captive reinsurance companies owned by lenders. UGRIC consented not to cede any new business under existing treaties or enter into any new captive arrangements and to pay a civil monetary penalty of $126,000 to the MN Commissioner. The settlement includes a release for all liability related to UGC’s captive reinsurance practices and resolves the MN Commissioner’s investigation. UGC has been subject to civil litigation relating to its placement of reinsurance with captives owned by lenders, and may be subject to additional litigation relating to the conduct of such business from time to time in the ordinary course.

Other Commitments

In the normal course of business, we enter into commitments to invest in limited partnerships, private equity funds and hedge funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled $2.7 billion atJune 30,2015.

Guarantees

Subsidiaries

We have issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP and of AIG Markets arising from transactions entered into by AIG Markets.

In connection with AIGFP’s business activities, AIGFP has issued, in a limited number of transactions, standby letters of credit or similar facilities to equity investors of structured leasing transactions in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at June 30,2015 was $214 million. In those transactions, AIGFP has agreed to pay such amount if the lessee fails to pay. The amount payable by AIGFP is, in certain cases, partially offset by amounts payable under other instruments typically equal to the present value of scheduled payments to be made by AIGFP. In the event that AIGFP is required to make a payment to the equity investor, the lessee is unconditionally obligated to reimburse AIGFP. To the extent that the equity investor is paid the equity termination value from the standby letter of credit and/or other sources, including payments by the lessee, AIGFP takes an assignment of the equity investor’s rights under the lease of the underlying property. Because the obligations of the lessee under the lease transactions are generally economically defeased, lessee bankruptcy is the most likely circumstance in which AIGFP would be required to pay without reimbursement.

Asset Dispositions

General

We are subject to financial guarantees and indemnity arrangements in connection with the completed sales of businesses pursuant to our asset disposition plan. The various arrangements may be triggered by, among other things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent liabilities, developments in litigation or breaches of representations, warranties or covenants provided by us. These arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable.

We are unable to develop a reasonable estimate of the maximum potential payout under certain of these arrangements. Overall, we believe that it is unlikely we will have to make any material payments related to completed sales under these arrangements, and no material liabilities related to these arrangements have been recorded in the Condensed Consolidated Balance Sheets.

Other

• See Note 7to the Condensed Consolidated Financial Statements for additional discussion on commitments and guarantees associated with VIEs.
• See Note 8to the Condensed Consolidated Financial Statements for additional disclosures about derivatives.
• See Note 14to the Condensed Consolidated Financial Statements for additional disclosures about guarantees of outstanding debt.

XML

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Equity in earnings of consolidated subsidiaries	$ 0	$ 0	$ 0	$ 0
Other income	15,699	16,136	31,674	32,299
Total revenues	15,699	16,136	31,674	32,299
Expenses:
Interest expense	316	463	656	942
Other expenses	12,489	11,159	24,280	24,332
Loss on extinguishment of debt	342	34	410	272
Total benefits, claims and expenses	13,147	11,656	25,346	25,546
Income (loss) from continuing operations before income tax expense (benefit)	2,552	4,480	6,328	6,753
Income tax expense (benefit)	777	1,474	2,077	2,088
Income (loss) from continuing operations	1,775	3,006	4,251	4,665
Income (loss) from discontinued operations, net of income tax	16	30	17	(17)
Net income (loss)	1,791	3,036	4,268	4,648
Net income (loss) from continuing operations attributable to noncontrolling interests	(9)	(37)	0	(34)
Net income (loss) attributable to AIG	1,800	3,073	4,268	4,682
AIG (As Guarantor)
Revenues:
Equity in earnings of consolidated subsidiaries	2,319	3,503	5,076	5,488
Other income	14	255	164	479
Total revenues	2,333	3,758	5,240	5,967
Expenses:
Interest expense	267	410	556	832
Other expenses	301	784	547	1,026
Loss on extinguishment of debt	297	17	358	305
Total benefits, claims and expenses	865	1,211	1,461	2,163
Income (loss) from continuing operations before income tax expense (benefit)	1,468	2,547	3,779	3,804
Income tax expense (benefit)	(333)	(527)	(490)	(876)
Income (loss) from continuing operations	1,801	3,074	4,269	4,680
Income (loss) from discontinued operations, net of income tax	(1)	(1)	(1)	2
Net income (loss)	1,800	3,073	4,268	4,682
Net income (loss) from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to AIG	1,800	3,073	4,268	4,682
AIGLH
Revenues:
Equity in earnings of consolidated subsidiaries	749	744	1,522	1,474
Other income	0	0	0	0
Total revenues	749	744	1,522	1,474
Expenses:
Interest expense	14	29	30	58
Other expenses	47	17	42	18
Loss on extinguishment of debt	0	0	0	0
Total benefits, claims and expenses	61	46	72	76
Income (loss) from continuing operations before income tax expense (benefit)	688	698	1,450	1,398
Income tax expense (benefit)	(20)	123	(63)	(21)
Income (loss) from continuing operations	708	575	1,513	1,419
Income (loss) from discontinued operations, net of income tax	0	0	0	0
Net income (loss)	708	575	1,513	1,419
Net income (loss) from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to AIG	708	575	1,513	1,419
Other Subsidiaries
Revenues:
Equity in earnings of consolidated subsidiaries	0	0	0	0
Other income	15,916	15,953	31,830	32,004
Total revenues	15,916	15,953	31,830	32,004
Expenses:
Interest expense	65	57	130	118
Other expenses	12,343	10,399	23,952	23,368
Loss on extinguishment of debt	45	17	45	17
Total benefits, claims and expenses	12,453	10,473	24,127	23,503
Income (loss) from continuing operations before income tax expense (benefit)	3,463	5,480	7,703	8,501
Income tax expense (benefit)	1,129	1,878	2,630	3,004
Income (loss) from continuing operations	2,334	3,602	5,073	5,497
Income (loss) from discontinued operations, net of income tax	17	31	18	(19)
Net income (loss)	2,351	3,633	5,091	5,478
Net income (loss) from continuing operations attributable to noncontrolling interests	(9)	(37)	0	(34)
Net income (loss) attributable to AIG	2,360	3,670	5,091	5,512
Reclassifications and Eliminations
Revenues:
Equity in earnings of consolidated subsidiaries	(3,068)	(4,247)	(6,598)	(6,962)
Other income	(231)	(72)	(320)	(184)
Total revenues	(3,299)	(4,319)	(6,918)	(7,146)
Expenses:
Interest expense	(30)	(33)	(60)	(66)
Other expenses	(202)	(41)	(261)	(80)
Loss on extinguishment of debt	0	0	7	(50)
Total benefits, claims and expenses	(232)	(74)	(314)	(196)
Income (loss) from continuing operations before income tax expense (benefit)	(3,067)	(4,245)	(6,604)	(6,950)
Income tax expense (benefit)	1	0	0	(19)
Income (loss) from continuing operations	(3,068)	(4,245)	(6,604)	(6,931)
Income (loss) from discontinued operations, net of income tax	0	0	0	0
Net income (loss)	(3,068)	(4,245)	(6,604)	(6,931)
Net income (loss) from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to AIG	$ (3,068)	$ (4,245)	$ (6,604)	$ (6,931)

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical - equity) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
AIG shareholders' equity:
Common stock, par value (in dollars per share)	$ 2.5	$ 2.5
Common stock, shares authorized	5,000,000,000	5,000,000,000
Common stock, shares issued	1,906,671,492	1,906,671,492
Treasury stock, shares of common stock	599,222,972	530,744,521

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2015

SEGMENT INFORMATION

SEGMENT INFORMATION

3. SEGMENT INFORMATION

We report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources through two reportable segments: Commercial Insurance and Consumer Insurance in addition to a Corporate and Other category. The Corporate and Other category consists of businesses and items not allocated to our reportable segments.

We evaluate performance based on revenue and pre-tax operating income (loss). Pre-tax operating income (loss) is derived by excluding certain items from net income (loss) attributable to AIG. See the table below for items excluded from pre-tax operating income (loss).

The following tables present our operations by reportable segment:

	2015				2014
				Pre-Tax				Pre-Tax
Three Months Ended June 30,		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
Commercial Insurance
Property Casualty	$	6,233	$	1,192	$	6,331	$	1,245
Mortgage Guaranty		261		157		259		210
Institutional Markets		1,172		151		707		170
Total Commercial Insurance		7,666		1,500		7,297		1,625
Consumer Insurance
Retirement		2,465		804		2,410		764
Life		1,632		149		1,560		215
Personal Insurance		2,869		70		3,129		140
Total Consumer Insurance		6,966		1,023		7,099		1,119
Corporate and Other*		1,119		372		1,114		(57)
AIG consolidation and elimination		(116)		(27)		(91)		6
Total AIG consolidated revenues and pre-tax operating income		15,635		2,868		15,419		2,693
Reconciling items from revenues and pre-tax operating income to revenues and pre-tax income:
Changes in fair values of fixed maturity securities designated to
hedge living benefit liabilities, net of interest expense		(87)		(87)		54		54
Changes in benefit reserves and DAC, VOBA and SIA related to						-		-
net realized capital gains		-		(28)		-		(52)
Loss on extinguishment of debt		-		(342)		-		(34)
Net realized capital gains		126		126		162		162
Net gain (loss) on sale of divested businesses		(33)		(34)		489		2,151
Legal settlements related to legacy crisis matters		76		76		12		12
Legal reserves related to legacy crisis matters		-		(27)		-		(506)
Other		(18)		-		-		-
Revenues and pre-tax income	$	15,699	$	2,552	$	16,136	$	4,480
	2015				2014
				Pre-Tax				Pre-Tax
Six Months Ended June 30,		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
Commercial Insurance
Property Casualty	$	12,189	$	2,362	$	12,443	$	2,361
Mortgage Guaranty		525		302		507		286
Institutional Markets		1,796		298		1,402		399
Total Commercial Insurance		14,510		2,962		14,352		3,046
Consumer Insurance
Retirement		4,853		1,604		4,895		1,679
Life		3,245		320		3,170		450
Personal Insurance		5,731		44		6,193		158
Total Consumer Insurance		13,829		1,968		14,258		2,287
Corporate and Other*		2,161		534		2,097		(110)
AIG consolidation and elimination		(275)		(69)		(188)		26
Total AIG consolidated revenues and pre-tax operating income		30,225		5,395		30,519		5,249

Reconciling items from revenues and pre-tax operating income to revenues and pre-tax income:
Changes in fair values of fixed maturity securities designated to
hedge living benefit liabilities, net of interest expense		(43)		(43)		130		130
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		(82)		-		(45)
Loss on extinguishment of debt		-		(410)		-		(272)
Net realized capital gains		1,467		1,467		10		10
Net gain (loss) on sale of divested businesses		(48)		(55)		1,602		2,172
Legal settlements related to legacy crisis matters		91		91		38		38
Legal reserves related to legacy crisis matters		-		(35)		-		(529)
Other		(18)		-		-		-
Revenues and pre-tax income	$	31,674	$	6,328	$	32,299	$	6,753

* Corporate and Other includes income from assets held by AIG Parent and other corporate subsidiaries.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2015

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Standards Adopted During 2015

Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure

In January 2014, the Financial Accounting Standards Board (FASB) issued an accounting standard that clarifies that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, so that the loan is derecognized and the real estate property is recognized, when either (i) the creditor obtains legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveys all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement.

We adopted the standard on its required effective date of January 1,2015. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows.

Reporting Discontinued Operations

In April 2014, the FASB issued an accounting standard that changes the requirements for presenting a component or group of components of an entity as a discontinued operation and requires new disclosures. Under the standard, the disposal of a component or group of components of an entity should be reported as a discontinued operation if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Disposals of equity method investments, or those reported as held-for-sale, must be presented as a discontinued operation if they meet the new definition. The standard also requires entities to provide disclosures about the disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation.

We adopted the standard on its required effective date of January 1,2015 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows.

Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures

In June 2014, the FASB issued an accounting standard that changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The standard aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements such that they all will be accounted for as secured borrowings. The standard eliminates sale accounting for repurchase-to-maturity transactions and supersedes the standard under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement.

We adopted the standard on its required effective date of January 1,2015 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows.

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 other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other activities.

The standard is effective for interim and annual reporting periods beginning after December 15, 2016 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is not permitted. We plan to adopt the standard on its required effective date of January 1, 2017 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows.

Accounting for Share-Based Payments with Performance Targets

In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.

The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We plan to adopt the standard on its required effective date of January 1, 2016 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows.

Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity

In August 2014, the FASB issued an accounting standard that allows a reporting entity to measure the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity using the fair value of either its financial assets or financial liabilities, whichever is more observable.

The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. We plan to adopt the standard on its required effective date of January 1, 2016 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows.

Consolidation: Amendments to the Consolidation Analysis

In February 2015, the FASB issued an accounting standard that affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.

The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The standard may be applied retrospectively or through a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. We plan to adopt the standard on its required effective date of January 1, 2016 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows.

Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement

In April 2015, the FASB issued an accounting standard that provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change generally accepted accounting principles. Consequently, all software licenses will be accounted for consistent with other licenses of intangible assets.

The standard is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The standard may be adopted prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. We plan to adopt the standard on its required effective date of January 1, 2016 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows.

Short Duration Insurance Contracts

In May 2015, the FASB issued an accounting standard that requires additional disclosures (including accident year information) for short-duration insurance contracts. New disclosures about the liability for unpaid losses and loss adjustment expenses will be required of public business entities for annual periods beginning after December 15, 2015. The annual disclosures by accident year include: disaggregated net incurred and paid claims development tables segregated by business type (not required to exceed 10 years), reconciliation oftotal net reserves included in development tables to the reported liability for unpaid losses and loss adjustment expenses, incurred but not reported (IBNR) information, quantitative information and a qualitative description about claim frequency, and the average annual percentage payout of incurred claims. Further, the new standard requires, when applicable, disclosures about discounting liabilities for unpaid losses and loss adjustment expenses and significant changes and reasons for changes in methodologies and assumptions used to determine unpaid losses and loss adjustment expenses.  In addition, the roll forward of the liability for unpaid losses and loss adjustment expenses currently disclosed in annual financial statements will be required for interim periods beginning in the first quarter of 2017.  Early adoption of the new annual and interim disclosures is permitted.

We plan to adopt the standard on its required effective date.  Becausethe new standard does not affect accounting recognition or measurement, the adoption of the standard will have no effect on our consolidated financial condition, results of operations, or cash flows.  

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INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

6 Months Ended

Jun. 30, 2015

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

14.INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

The following Condensed Consolidating Financial Statements reflect the results of AIGLH, a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH.

Condensed Consolidating Balance Sheets

		American
		International					Reclassifications
		Group, Inc.				Other		and	Consolidated
(in millions)	(As Guarantor)		AIGLH			Subsidiaries		Eliminations		AIG
June 30, 2015
Assets:
Short-term investments	$	8,278	$	-	$	6,263	$	(676)	$	13,865
Other investments(a)		9,345		-		325,186		183		334,714
Total investments		17,623		-		331,449		(493)		348,579
Cash		91		4		1,842		-		1,937
Loans to subsidiaries(b)		30,956		-		642		(31,598)		-
Investment in consolidated subsidiaries(b)		62,134		34,034		-		(96,168)		-
Other assets, including deferred income taxes		21,957		117		140,098		(2,701)		159,471
Total assets	$	132,761	$	34,155	$	474,031	$	(130,960)	$	509,987

Liabilities:
Insurance liabilities	$	-	$	-	$	267,370	$	-	$	267,370
Long-term debt		21,288		707		8,365		-		30,360
Other liabilities, including intercompany balances(a)(c)		6,581		66		104,368		(3,400)		107,615
Loans from subsidiaries(b)		634		-		30,774		(31,408)		-
Total liabilities		28,503		773		410,877		(34,808)		405,345
Total AIG shareholders’ equity		104,258		33,382		62,770		(96,152)		104,258
Non-redeemable noncontrolling interests		-		-		384		-		384
Total equity		104,258		33,382		63,154		(96,152)		104,642
Total liabilities and equity	$	132,761	$	34,155	$	474,031	$	(130,960)	$	509,987
December 31, 2014
Assets:
Short-term investments	$	6,078	$	-	$	6,231	$	(1,066)	$	11,243
Other investments(a)		11,415		-		333,108		-		344,523
Total investments		17,493		-		339,339		(1,066)		355,766
Cash		26		91		1,641		-		1,758
Loans to subsidiaries(b)		31,070		-		779		(31,849)		-
Investment in consolidated subsidiaries(b)		62,811		35,850		-		(98,661)		-
Other assets, including deferred income taxes		23,835		2,305		141,826		(9,909)		158,057
Total assets	$	135,235	$	38,246	$	483,585	$	(141,485)	$	515,581
Liabilities:
Insurance liabilities	$	-	$	-	$	270,615	$	-	$	270,615
Long-term debt		21,190		820		9,207		-		31,217
Other liabilities, including intercompany balances(a)(c)		6,196		2,314		108,189		(10,222)		106,477
Loans from subsidiaries(b)		951		-		30,898		(31,849)		-
Total liabilities		28,337		3,134		418,909		(42,071)		408,309
Total AIG shareholders’ equity		106,898		35,112		64,302		(99,414)		106,898
Non-redeemable noncontrolling interests		-		-		374		-		374
Total equity		106,898		35,112		64,676		(99,414)		107,272
Total liabilities and equity	$	135,235	$	38,246	$	483,585	$	(141,485)	$	515,581

(a)Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment.

(b) Eliminated in consolidation.

(c) For June 30,2015 and December 31,2014, includes intercompany tax payable of $1.8 billion and $343 million, respectively, and intercompany derivative liabilities of $33 million and $275 million, respectively, for AIG Parent (as Guarantor) and intercompany tax receivable of $31 million and $3 million, respectively, for AIGLH.

Condensed Consolidating Statements of Income

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended June 30, 2015
Revenues:
Equity in earnings of consolidated subsidiaries*	$	2,319	$	749	$	-	$	(3,068)	$	-
Other income		14		-		15,916		(231)		15,699
Total revenues		2,333		749		15,916		(3,299)		15,699
Expenses:
Interest expense		267		14		65		(30)		316
Loss on extinguishment of debt		297		-		45		-		342
Other expenses		301		47		12,343		(202)		12,489
Total expenses		865		61		12,453		(232)		13,147
Income (loss) from continuing operations before income tax
expense (benefit)		1,468		688		3,463		(3,067)		2,552
Income tax expense (benefit)		(333)		(20)		1,129		1		777
Income (loss) from continuing operations		1,801		708		2,334		(3,068)		1,775
Income (loss) from discontinued operations, net of income taxes		(1)		-		17		-		16
Net income (loss)		1,800		708		2,351		(3,068)		1,791
Less:
Net loss from continuing operations attributable to
noncontrolling interests		-		-		(9)		-		(9)
Net income (loss) attributable to AIG	$	1,800	$	708	$	2,360	$	(3,068)	$	1,800
Three Months Ended June 30, 2014
Revenues:
Equity in earnings of consolidated subsidiaries*	$	3,503	$	744	$	-	$	(4,247)	$	-
Other income		255		-		15,953		(72)		16,136
Total revenues		3,758		744		15,953		(4,319)		16,136
Expenses:
Interest expense		410		29		57		(33)		463
Loss on extinguishment of debt		17		-		17		-		34
Other expenses		784		17		10,399		(41)		11,159
Total expenses		1,211		46		10,473		(74)		11,656
Income (loss) from continuing operations before income tax
expense (benefit)		2,547		698		5,480		(4,245)		4,480
Income tax expense (benefit)		(527)		123		1,878		-		1,474
Income (loss) from continuing operations		3,074		575		3,602		(4,245)		3,006
Income (loss) from discontinued operations, net of income taxes		(1)		-		31		-		30
Net income (loss)		3,073		575		3,633		(4,245)		3,036
Less:
Net loss from continuing operations attributable to
noncontrolling interests		-		-		(37)		-		(37)
Net income (loss) attributable to AIG	$	3,073	$	575	$	3,670	$	(4,245)	$	3,073

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Six Months Ended June 30, 2015
Revenues:
Equity in earnings of consolidated subsidiaries*	$	5,076	$	1,522	$	-	$	(6,598)	$	-
Other income		164		-		31,830		(320)		31,674
Total revenues		5,240		1,522		31,830		(6,918)		31,674
Expenses:
Interest expense		556		30		130		(60)		656
Loss on extinguishment of debt		358		-		45		7		410
Other expenses		547		42		23,952		(261)		24,280
Total expenses		1,461		72		24,127		(314)		25,346
Income (loss) from continuing operations before income tax
expense (benefit)		3,779		1,450		7,703		(6,604)		6,328
Income tax expense (benefit)		(490)		(63)		2,630		-		2,077
Income (loss) from continuing operations		4,269		1,513		5,073		(6,604)		4,251
Income (loss) from discontinued operations, net of income taxes		(1)		-		18		-		17
Net income (loss)		4,268		1,513		5,091		(6,604)		4,268
Less:
Net income (loss) from continuing operations attributable to
noncontrolling interests		-		-		-		-		-
Net income (loss) attributable to AIG	$	4,268	$	1,513	$	5,091	$	(6,604)	$	4,268
Six Months Ended June 30, 2014
Revenues:
Equity in earnings of consolidated subsidiaries*	$	5,488	$	1,474	$	-	$	(6,962)	$	-
Other income		479		-		32,004		(184)		32,299
Total revenues		5,967		1,474		32,004		(7,146)		32,299
Expenses:
Interest expense		832		58		118		(66)		942
Loss on extinguishment of debt		305		-		17		(50)		272
Other expenses		1,026		18		23,368		(80)		24,332
Total expenses		2,163		76		23,503		(196)		25,546
Income (loss) from continuing operations before income tax
expense (benefit)		3,804		1,398		8,501		(6,950)		6,753
Income tax expense (benefit)		(876)		(21)		3,004		(19)		2,088
Income (loss) from continuing operations		4,680		1,419		5,497		(6,931)		4,665
Income (loss) from discontinued operations, net of income taxes		2		-		(19)		-		(17)
Net income (loss)		4,682		1,419		5,478		(6,931)		4,648
Less:
Net loss from continuing operations attributable to
noncontrolling interests		-		-		(34)		-		(34)
Net income (loss) attributable to AIG	$	4,682	$	1,419	$	5,512	$	(6,931)	$	4,682

* Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended June 30, 2015
Net income (loss)	$	1,800	$	708	$	2,351	$	(3,068)	$	1,791
Other comprehensive income (loss)		(3,037)		3,582		53,694		(57,276)		(3,037)
Comprehensive income (loss)		(1,237)		4,290		56,045		(60,344)		(1,246)
Total comprehensive loss attributable to noncontrolling interests		-		-		(9)		-		(9)
Comprehensive income (loss) attributable to AIG	$	(1,237)	$	4,290	$	56,054	$	(60,344)	$	(1,237)
Three Months Ended June 30, 2014
Net income (loss)	$	3,073	$	575	$	3,633	$	(4,245)	$	3,036
Other comprehensive income (loss)		2,426		1,287		1,884		(3,171)		2,426
Comprehensive income (loss)		5,499		1,862		5,517		(7,416)		5,462
Total comprehensive loss attributable to noncontrolling interests		-		-		(37)		-		(37)
Comprehensive income (loss) attributable to AIG	$	5,499	$	1,862	$	5,554	$	(7,416)	$	5,499
Six Months Ended June 30, 2015
Net income (loss)	$	4,268	$	1,513	$	5,091	$	(6,604)	$	4,268
Other comprehensive income (loss)		(2,997)		4,490		52,633		(57,126)		(3,000)
Comprehensive income (loss)		1,271		6,003		57,724		(63,730)		1,268
Total comprehensive loss attributable to noncontrolling interests		-		-		(3)		-		(3)
Comprehensive income (loss) attributable to AIG	$	1,271	$	6,003	$	57,727	$	(63,730)	$	1,271
Six Months Ended June 30, 2014
Net income (loss)	$	4,682	$	1,419	$	5,478	$	(6,931)	$	4,648
Other comprehensive income (loss)		5,151		2,781		3,733		(6,514)		5,151
Comprehensive income (loss)		9,833		4,200		9,211		(13,445)		9,799
Total comprehensive loss attributable to noncontrolling interests		-		-		(34)		-		(34)
Comprehensive income (loss) attributable to AIG	$	9,833	$	4,200	$	9,245	$	(13,445)	$	9,833

Condensed Consolidating Statements of Cash Flows

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries*		Eliminations*		AIG
Six Months Ended June 30, 2015
Net cash provided by operating activities		2,230		527		2,581		(4,845)		493
Cash flows from investing activities:
Sales of investments		4,703		-		36,970		(2,667)		39,006
Purchase of investments		(942)		-		(32,708)		2,667		(30,983)
Loans to subsidiaries - net		189		-		130		(319)		-
Contributions to subsidiaries - net		-		-		-		-		-
Net change in restricted cash		-		-		1,462		-		1,462
Net change in short-term investments		(2,093)		-		(600)		-		(2,693)
Other, net		(65)		-		(1,441)		-		(1,506)
Net cash provided by investing activities		1,792		-		3,813		(319)		5,286
Cash flows from financing activities:
Issuance of long-term debt		2,342		-		432		-		2,774
Repayments of long-term debt		(2,016)		(114)		(1,571)		-		(3,701)
Purchase of Common Stock		(3,743)		-		-		-		(3,743)
Intercompany loans - net		(130)		-		(189)		319		-
Cash dividends paid		(335)		(500)		(4,345)		4,845		(335)
Other, net		(75)		-		(486)		-		(561)
Net cash (used in) financing activities		(3,957)		(614)		(6,159)		5,164		(5,566)
Effect of exchange rate changes on cash		-		-		(34)		-		(34)
Change in cash		65		(87)		201		-		179
Cash at beginning of year		26		91		1,641		-		1,758
Reclassification to assets held for sale		-		-		-		-		-
Cash at end of period	$	91	$	4	$	1,842	$	-	$	1,937
Six Months Ended June 30, 2014
Net cash (used in) provided by operating activities		5,324		2,586		(466)		(5,803)		1,641
Cash flows from investing activities:
Sales of investments		1,714		-		30,677		(77)		32,314
Purchase of investments		(624)		-		(27,610)		77		(28,157)
Loans to subsidiaries - net		(530)		-		227		303		-
Contributions to subsidiaries - net		111		-		-		(111)		-
Net change in restricted cash		(20)		-		(608)		-		(628)
Net change in short-term investments		65		-		433		-		498
Other, net		(27)		-		(338)		-		(365)
Net cash provided by investing activities		689		-		2,781		192		3,662

Cash flows from financing activities:
Issuance of long-term debt		-		-		3,028		-		3,028
Repayments of long-term debt		(3,314)		-		(2,713)		-		(6,027)
Intercompany loans - net		(52)		(175)		530		(303)		-
Purchase of common stock		(1,849)		-		-		-		(1,849)
Cash dividends paid to shareholders		(361)		(2,460)		(3,343)		5,803		(361)
Other, net		(307)		-		(397)		111		(593)
Net cash (used in) financing activities		(5,883)		(2,635)		(2,895)		5,611		(5,802)
Effect of exchange rate changes on cash		-		-		(3)		-		(3)
Change in cash		130		(49)		(583)		-		(502)
Cash at beginning of year		30		51		2,160		-		2,241
Change in cash of businesses held for sale		-		-		88		-		88
Cash at end of period	$	160	$	2	$	1,665	$	-	$	1,827

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 2015 period for:
Interest:
Third party	$	585	$	(32)	$	(1,313)	$	-	$	(760)
Intercompany		-		-		-		-		-
Taxes:
Income tax authorities	$	(6)	$	-	$	(332)	$	-	$	(338)
Intercompany		1,249		-		(1,249)		-		-
Cash (paid) received during the 2014 period for:
Interest:
Third party	$	(946)	$	(51)	$	(730)	$	-	$	(1,727)
Intercompany		(1)		(4)		5		-		-
Taxes:
Income tax authorities	$	(17)	$	-	$	(465)	$	-	$	(482)
Intercompany		953		-		(953)		-		-

American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities:

Six Months Ended June 30,
(in millions)		2015		2014
Intercompany non-cash financing and investing activities:
Capital contributions	$	111	$	993
Dividends received in the form of securities		1,551		1,538
Return of capital*		-		4,836
Consideration received from sale of shares of AerCap		500		-

* Includes$4.8 billion return of capital from AIG Capital Corporation related to the sale of ILFC.

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EQUITY

6 Months Ended

Jun. 30, 2015

EQUITY

EQUITY

10.EQUITY

Shares Outstanding

The following table presents a rollforward of outstanding shares:

	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Six Months Ended June 30, 2015
Shares, beginning of year	1,906,671,492	(530,744,521)	1,375,926,971
Shares issued	-	27,089	27,089
Shares repurchased	-	(68,505,540)	(68,505,540)
Shares, end of period	1,906,671,492	(599,222,972)	1,307,448,520

Dividends

Payment of future dividends to our shareholders and repurchases of AIG Common Stock depends in part on the regulatory framework that we are currently subject to and that will ultimately be applicable to us, including as a nonbank systemically important financial institution under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and a global systemically important insurer. In addition, dividends are payable on AIG Common Stock only when, as and if declared by our Board of Directors in its discretion, from funds legally available for this purpose. In considering whether to pay a dividend or purchase shares of AIG Common Stock, our Board of Directors considers a number of factors, including, but not limited to: the capital resources available to support our insurance operations and business strategies, AIG’s funding capacity and capital resources in comparison to internal benchmarks, expectations for capital generation, rating agency expectations for capital, regulatory standards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant.

On March 26,2015, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on March 12, 2015. On June 25, 2015,AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on June 11, 2015.

See Note 20 to the Consolidated Financial Statements in the 2014 Annual Report for a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries.

Repurchase of AIG Common Stock

Our Board of Directors has authorized the repurchase of shares of AIG Common Stock through a series of actions. On April 30, 2015, our Board of Directors authorized an additional increase of $3.5 billion to its previous repurchase authorization, resulting in an aggregate remaining authorization on such date of approximately $3.8 billion. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise. Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans.

We repurchased approximately 69 million shares of AIG Common Stock during the six-month period ended June 30,2015, for an aggregate purchase price of approximately $3.7 billion. As of June 30,2015, approximately $2.3billion remained under our repurchase authorization.

The total number of shares of AIG Common Stock repurchased in the first quarter of 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 share repurchase agreement executed in the fourth quarter of 2014.

The timing of any future repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factors.

Accumulated Other Comprehensive Income

The following table presents a rollforward of Accumulated other comprehensive income:

		Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken
				Unrealized Appreciation (Depreciation) of All Other Investments		Foreign Currency Translation Adjustments		Retirement Plan Liabilities Adjustment
(in millions)										Total
Balance, December 31, 2014, net of tax	$	1,043	$	12,327	$	(1,784)	$	(969)	$	10,617
Change in unrealized depreciation of investments		(195)		(4,843)		-		-		(5,038)
Change in deferred acquisition costs adjustment and other		(9)		495		-		-		486
Change in future policy benefits		92		804		-		-		896
Change in foreign currency translation adjustments		-		-		(684)		-		(684)
Net actuarial gain		-		-		-		91		91
Prior service cost		-		-		-		(23)		(23)
Change in deferred tax asset (liability)		4		1,092		188		(12)		1,272
Total other comprehensive income (loss)		(108)		(2,452)		(496)		56		(3,000)
Noncontrolling interests		-		-		(3)		-		(3)
Balance, June 30, 2015, net of tax	$	935	$	9,875	$	(2,277)	$	(913)	$	7,620
Balance, December 31, 2013, net of tax	$	936	$	6,789	$	(952)	$	(413)	$	6,360
Change in unrealized appreciation of investments		199		7,517		-		-		7,716
Change in deferred acquisition costs adjustment and other		36		(629)		-		-		(593)
Change in future policy benefits		(143)		(1,185)		-		-		(1,328)
Change in foreign currency translation adjustments		-		-		(29)		-		(29)
Net actuarial gain		-		-		-		37		37
Prior service cost		-		-		-		(24)		(24)
Change in deferred tax asset (liability)		23		(563)		(82)		(6)		(628)
Total other comprehensive income (loss)		115		5,140		(111)		7		5,151
Noncontrolling interests		-		-		-		-		-
Balance, June 30, 2014, net of tax	$	1,051	$	11,929	$	(1,063)	$	(406)	$	11,511

The following table presents the other comprehensive income reclassification adjustments for the three- and six-month periods ended June 30,2015 and 2014, respectively:

		Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken
				Unrealized Appreciation (Depreciation) of All Other Investments		Foreign Currency Translation Adjustments		Retirement Plan Liabilities Adjustment
(in millions)										Total
Three Months Ended June 30, 2015
Unrealized change arising during period	$	35	$	(4,475)	$	(52)	$	14	$	(4,478)
Less: Reclassification adjustments
included in net income		46		99		-		(23)		122
Total other comprehensive income (loss),
before income tax expense (benefit)		(11)		(4,574)		(52)		37		(4,600)
Less: Income tax expense (benefit)		25		(1,583)		(15)		10		(1,563)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(36)	$	(2,991)	$	(37)	$	27	$	(3,037)
Three Months Ended June 30, 2014
Unrealized change arising during period	$	21	$	2,909	$	73	$	10	$	3,013
Less: Reclassification adjustments
included in net income		10		165		-		(1)		174
Total other comprehensive income (loss),
before income tax expense		11		2,744		73		11		2,839
Less: Income tax expense (benefit)		(15)		389		26		13		413
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	26	$	2,355	$	47	$	(2)	$	2,426
Six Months Ended June 30, 2015
Unrealized change arising during period	$	(57)	$	(2,968)	$	(684)	$	21	$	(3,688)
Less: Reclassification adjustments
included in net income		55		576		-		(47)		584
Total other comprehensive income (loss),
before income tax expense (benefit)		(112)		(3,544)		(684)		68		(4,272)
Less: Income tax expense (benefit)		(4)		(1,092)		(188)		12		(1,272)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(108)	$	(2,452)	$	(496)	$	56	$	(3,000)
Six Months Ended June 30, 2014
Unrealized change arising during period	$	110	$	6,097	$	(29)	$	11	$	6,189
Less: Reclassification adjustments
included in net income		18		394		-		(2)		410
Total other comprehensive income (loss),
before income tax expense (benefit)		92		5,703		(29)		13		5,779
Less: Income tax expense (benefit)		(23)		563		82		6		628
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	115	$	5,140	$	(111)	$	7	$	5,151

The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Condensed Consolidated Statements of Income:

	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income
	Three Months Ended June 30,
(in millions)		2015		2014
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken
Investments		$	46	$	10		Other realized capital gains
Total			46		10
Unrealized appreciation (depreciation) of all other investments
Investments			112		207		Other realized capital gains
Deferred acquisition costs adjustment			(30)		(30)		Amortization of deferred policy acquisition costs
Future policy benefits			17		(12)		Policyholder benefits and losses incurred
Total			99		165
Change in retirement plan liabilities adjustment
Prior - service cost			11		12		*
Actuarial losses			(34)		(13)		*
Total			(23)		(1)
Total reclassifications for the period		$	122	$	174
	Amount Reclassified from Accumulated Other Comprehensive Income					Affected Line Item in the Condensed Consolidated Statements of Income
	Six Months Ended June 30,
(in millions)		2015		2014
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken
Investments		$	55	$	18		Other realized capital gains
Total			55		18
Unrealized appreciation (depreciation) of all other investments
Investments			624		411		Other realized capital gains
Deferred acquisition costs adjustment			(65)		5		Amortization of deferred policy acquisition costs
Future policy benefits			17		(22)		Policyholder benefits and losses incurred
Total			576		394
Change in retirement plan liabilities adjustment
Prior - service cost			23		24		*
Actuarial losses			(70)		(26)		*
Total			(47)		(2)		-
Total reclassifications for the period		$	584	$	410		-

* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 12 to the Condensed Consolidated Financial Statements.

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LENDING ACTIVITIES

6 Months Ended

Jun. 30, 2015

LENDING ACTIVITIES

LENDING ACTIVITIES

6. LENDING ACTIVITIES

The following table presents the composition of Mortgage and other loans receivable, net:

	June 30,			December 31,
(in millions)		2015		2014
Commercial mortgages*	$	19,882	$	18,909
Life insurance policy loans		2,645		2,710
Commercial loans, other loans and notes receivable		4,878		3,642
Total mortgage and other loans receivable		27,405		25,261
Allowance for losses		(262)		(271)
Mortgage and other loans receivable, net	$	27,143	$	24,990

* Commercial mortgages primarily represent loans for offices, retail, apartments and industrial properties, with exposures in California and New York representing the largest geographic concentrations (aggregating approximately 13 percent and 21 percent, respectively, atJune 30,2015, and 14 percent and 18 percent, respectively, at December 31,2014).

The following table presents the credit quality indicators for commercial mortgages:

	Number															Percent
	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total(c)	Total $
June 30, 2015
Credit Quality Indicator:
In good standing	976	$	3,284	$	6,810	$	4,402	$	2,002	$	1,837	$	1,069	$	19,404	98	%
Restructured(a)	10		-		409		6		31		16		-		462	2
90 days or less delinquent	3		-		-		-		6		-		-		6	-
>90 days delinquent or in
process of foreclosure	5		-		-		10		-		-		-		10	-
Total(b)	994	$	3,284	$	7,219	$	4,418	$	2,039	$	1,853	$	1,069	$	19,882	100	%
Valuation allowance		$	21	$	67	$	27	$	13	$	13	$	10	$	151	1	%

December 31, 2014
Credit Quality Indicator:
In good standing	1,007	$	3,384	$	6,100	$	3,807	$	1,689	$	1,660	$	1,812	$	18,452	98	%
Restructured(a)	7		-		343		7		-		17		-		367	2
90 days or less delinquent	6		-		-		10		-		-		5		15	-
>90 days delinquent or in
process of foreclosure	4		-		75		-		-		-		-		75	-
Total(b)	1,024	$	3,384	$	6,518	$	3,824	$	1,689	$	1,677	$	1,817	$	18,909	100	%
Allowance for losses		$	3	$	86	$	28	$	22	$	6	$	14	$	159	1	%

(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see Note 7 to the Consolidated Financial Statements in the 2014 Annual Report.

(b)Does not reflect valuation allowances.

(c)Over99 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest.

Allowance for Loan Losses

See Note 7 to the Consolidated Financial Statements in the 2014 Annual Report for a discussion of our accounting policy for evaluating Mortgage and other loans receivable for impairment.

The following table presents a rollforward of the changes in the allowance for losses on Mortgage and other loans receivable:

	2015						2014
Six Months Ended June 30,		Commercial		Other				Commercial		Other
(in millions)		Mortgages		Loans		Total		Mortgages		Loans		Total
Allowance, beginning of year	$	159	$	112	$	271	$	201	$	111	$	312
Loans charged off		(4)		(1)		(5)		(5)		(13)		(18)
Recoveries of loans previously charged off		3		1		4		-		16		16
Net charge-offs		(1)		-		(1)		(5)		3		(2)
Provision for loan losses		(9)		(3)		(12)		(8)		(22)		(30)
Other		2		2		4		-		1		1
Allowance, end of period	$	151 *	$	111	$	262	$	188 *	$	93	$	281

*Of the total allowance at the end of the periods, $30million and $88 million relate to individually assessed credit losses on $570 million and $240 million of commercial mortgage loans at June 30,2015 and 2014, respectively.

During the six-month periods ended June 30,2015 and 2014, loans with a carrying value of $97 million and $136 million, respectively, were modified in troubled debt restructurings.

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INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Pledged Investments
Fair Value of securities pledged	$ 5,388	$ 2,506
Fair value of amount repledged	164	131
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements	6,200	5,900
FHLBs
Pledged Investments
Fair value of available for sale securities	1,200	500
Amount owned by subsidiaries	39	44
Secured financing
Pledged Investments
Fair value of available for sale securities	843	0
Fair Value of other securities	$ 176	2,122
Repurchase Agreements, Maturities	31 - 90 Days
Securities Lending Agreements, Maturities	31 - 90 Days
Securities Sold under Agreements to Repurchase and Securities Loaned	$ 1,000
Secured financing | U.S. Government Bond Securities
Pledged Investments
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	151
Secured financing | Non-U.S. government
Pledged Investments
Securities Lending Agreements, Fair Value of Collateral	16
Secured financing | Corporate debt
Pledged Investments
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	25
Securities Lending Agreements, Fair Value of Collateral	827
GIAs
Pledged Investments
Fair Value of other securities	$ 2,800	$ 3,500

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2015

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

4. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs:

• Level 1:Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments.
• Level 2:Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
• Level 3:Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Assetsand Liabilities Measuredat Fair Valueona 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:

June 30, 2015							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting*	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	1	$	2,513	$	-	$	-	$	-	$	2,514
Obligations of states, municipalities and political subdivisions		-		25,482		2,180		-		-		27,662
Non-U.S. governments		648		18,468		33		-		-		19,149
Corporate debt		-		138,745		2,118		-		-		140,863
RMBS		-		19,151		17,097		-		-		36,248
CMBS		-		10,845		2,677		-		-		13,522
CDO/ABS		-		9,037		6,071		-		-		15,108
Total bonds available for sale		649		224,241		30,176		-		-		255,066
Other bond securities:
U.S. government and government sponsored entities		176		3,639		-		-		-		3,815
Obligations of states, municipalities and political subdivisions		-		75		-		-		-		75
Non-U.S. governments		-		2		-		-		-		2
Corporate debt		-		436		16		-		-		452
RMBS		-		873		1,337		-		-		2,210
CMBS		-		644		223		-		-		867
CDO/ABS		-		1,751		7,426		-		-		9,177
Total other bond securities		176		7,420		9,002		-		-		16,598
Equity securities available for sale:
Common stock		3,843		8		-		-		-		3,851
Preferred stock		25		-		-		-		-		25
Mutual funds		877		2		-		-		-		879
Total equity securities available for sale		4,745		10		-		-		-		4,755
Other equity securities		1,301		-		22		-		-		1,323
Mortgage and other loans receivable		-		-		6		-		-		6
Other invested assets		2		4,312		5,075		-		-		9,389
Derivative assets:
Interest rate contracts		6		3,192		11		-		-		3,209
Foreign exchange contracts		-		675		-		-		-		675
Equity contracts		84		10		64		-		-		158
Commodity contracts		-		-		-		-		-		-
Credit contracts		-		-		4		-		-		4
Other contracts		-		-		30		-		-		30
Counterparty netting and cash collateral		-		-		-		(1,594)		(1,226)		(2,820)
Total derivative assets		90		3,877		109		(1,594)		(1,226)		1,256
Short-term investments		1,036		1,245		-		-		-		2,281
Separate account assets		76,833		5,302		-		-		-		82,135
Total	$	84,832	$	246,407	$	44,390	$	(1,594)	$	(1,226)	$	372,809

Liabilities:
Policyholder contract deposits	$	-	$	36	$	1,232	$	-	$	-	$	1,268
Other policyholder funds		-		8		-		-		-		8
Derivative liabilities:
Interest rate contracts		-		2,389		73		-		-		2,462
Foreign exchange contracts		-		1,232		7		-		-		1,239
Equity contracts		-		105		1		-		-		106
Commodity contracts		-		6		-		-		-		6
Credit contracts		-		-		555		-		-		555
Other contracts		-		2		46		-		-		48
Counterparty netting and cash collateral		-		-		-		(1,594)		(1,276)		(2,870)
Total derivative liabilities		-		3,734		682		(1,594)		(1,276)		1,546
Long-term debt		-		4,076		193		-		-		4,269
Other liabilities		120		164		-		-		-		284
Total	$	120	$	8,018	$	2,107	$	(1,594)	$	(1,276)	$	7,375

December 31, 2014							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting*	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	322	$	2,670	$	-	$	-	$	-	$	2,992
Obligations of states, municipalities and political subdivisions		-		25,500		2,159		-		-		27,659
Non-U.S. governments		742		20,323		30		-		-		21,095
Corporate debt		-		142,550		1,883		-		-		144,433
RMBS		-		20,715		16,805		-		-		37,520
CMBS		-		10,189		2,696		-		-		12,885
CDO/ABS		-		7,165		6,110		-		-		13,275
Total bonds available for sale		1,064		229,112		29,683		-		-		259,859
Other bond securities:
U.S. government and government sponsored entities		130		5,368		-		-		-		5,498
Obligations of states, municipalities and political subdivisions		-		122		-		-		-		122
Non-U.S. governments		-		2		-		-		-		2
Corporate debt		-		719		-		-		-		719
RMBS		-		989		1,105		-		-		2,094
CMBS		-		708		369		-		-		1,077
CDO/ABS		-		2,751		7,449		-		-		10,200
Total other bond securities		130		10,659		8,923		-		-		19,712
Equity securities available for sale:
Common stock		3,626		2		1		-		-		3,629
Preferred stock		25		-		-		-		-		25
Mutual funds		738		3		-		-		-		741
Total equity securities available for sale		4,389		5		1		-		-		4,395
Other equity securities		1,024		25		-		-		-		1,049
Mortgage and other loans receivable		-		-		6		-		-		6
Other invested assets		2		3,742		5,650		-		-		9,394

Derivative assets:
Interest rate contracts		2		3,729		12		-		-		3,743
Foreign exchange contracts		-		839		1		-		-		840
Equity contracts		98		58		51		-		-		207
Commodity contracts		-		-		-		-		-		-
Credit contracts		-		-		4		-		-		4
Other contracts		-		-		31		-		-		31
Counterparty netting and cash collateral		-		-		-		(2,102)		(1,119)		(3,221)
Total derivative assets		100		4,626		99		(2,102)		(1,119)		1,604
Short-term investments		584		1,100		-		-		-		1,684
Separate account assets		73,939		6,097		-		-		-		80,036
Total	$	81,232	$	255,366	$	44,362	$	(2,102)	$	(1,119)	$	377,739
Liabilities:
Policyholder contract deposits	$	-	$	52	$	1,509	$	-	$	-	$	1,561
Other policyholder funds		-		8		-		-		-		8
Derivative liabilities:
Interest rate contracts		-		3,047		86		-		-		3,133
Foreign exchange contracts		-		1,482		9		-		-		1,491
Equity contracts		-		98		4		-		-		102
Commodity contracts		-		6		-		-		-		6
Credit contracts		-		-		982		-		-		982
Other contracts		-		-		90		-		-		90
Counterparty netting and cash collateral		-		-		-		(2,102)		(1,429)		(3,531)
Total derivative liabilities		-		4,633		1,171		(2,102)		(1,429)		2,273
Long-term debt		-		5,253		213		-		-		5,466
Other liabilities		34		316		-		-		-		350
Total	$	34	$	10,262	$	2,893	$	(2,102)	$	(1,429)	$	9,658

*Represents netting of derivative exposures covered by a qualifying master netting agreement.

Transfers of Level 1 and Level 2 Assets and Liabilities

Our policy is to record transfers of assets and liabilities between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market.

During the three- and six-month periods ended June 30,2015, we transferred $190 million and $262million, respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2, as they are no longer considered actively traded. For similar reasons, during the three- and six-month periods ended June 30,2015, we transferred $65 million and $180million, respectively, of securities issued by the U.S. government and government sponsored entities from Level 1 to Level 2. We had no material transfers from Level 2 to Level 1 during the three- and six-month periods ended June 30,2015.

During the three- and six-month periods ended June 30,2014, we transferred $236 million and $298million, respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2, as they are no longer considered actively traded. For similar reasons, during the six-month period ended June 30,2014, we transferred $103 million of securities issued by the U.S. government and government sponsored entities from Level 1 to Level 2. There were no material transfers of securities issued by the U.S. government or government-sponsored entities from Level 1 to Level 2 during the three-month period ended June 30,2014. We had no material transfers from Level 2 to Level 1 during the three- and six-month periods ended June 30,2014.

Changes in Level 3 Recurring Fair Value Measurements

The following tables present changes during the three- and six-month periods ended June 30,2015 and 2014 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at June 30,2015 and 2014:

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Three Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,256	$	-	$	(124)	$	93	$	-	$	(45)	$	2,180	$	-
Non-U.S. governments		34		-		(1)		-		-		-		33		-
Corporate debt		1,827		14		(50)		(85)		412		-		2,118		-
RMBS		17,345		281		(99)		(430)		-		-		17,097		-
CMBS		2,694		22		(40)		17		-		(16)		2,677		-
CDO/ABS		6,453		97		(196)		(283)		-		-		6,071		-
Total bonds available for sale		30,609		414		(510)		(688)		412		(61)		30,176		-
Other bond securities:
Corporate debt		16		-		-		-		-		-		16		-
RMBS		1,288		45		-		16		15		(27)		1,337		31
CMBS		269		8		-		(54)		-		-		223		1
CDO/ABS		7,850		265		-		(688)		-		(1)		7,426		93
Total other bond securities		9,423		318		-		(726)		15		(28)		9,002		125
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		22		-		-		-		-		-		22		-
Mortgage and other loans receivable		6		-		-		-		-		-		6		-
Other invested assets		5,098		81		(38)		(92)		91		(65)		5,075		-
Total	$	45,159	$	815	$	(548)	$	(1,509)	$	518	$	(154)	$	44,281	$	125
Liabilities:
Policyholder contract deposits	$	(1,835)	$	736	$	-	$	(133)	$	-	$	-	$	(1,232)	$	110
Derivative liabilities, net:
Interest rate contracts		(69)		4		-		3		-		-		(62)		3
Foreign exchange contracts		(8)		2		-		(1)		-		-		(7)		1
Equity contracts		66		(2)		-		(1)		-		-		63		(3)
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		(791)		13		-		227		-		-		(551)		22
Other contracts		(59)		59		(2)		(14)		-		-		(16)		33
Total derivative liabilities, net(a)		(861)		76		(2)		214		-		-		(573)		56
Long-term debt(b)		(186)		(13)		-		6		-		-		(193)		(6)
Total	$	(2,882)	$	799	$	(2)	$	87	$	-	$	-	$	(1,998)	$	160

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period(a)		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Six Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,159	$	1	$	(79)	$	158	$	-	$	(59)	$	2,180	$	-
Non-U.S. governments		30		-		(1)		4		-		-		33		-
Corporate debt		1,883		14		(33)		(146)		456		(56)		2,118		-
RMBS		16,805		539		(171)		(76)		-		-		17,097		-
CMBS		2,696		46		(30)		47		-		(82)		2,677		-
CDO/ABS		6,110		130		(167)		119		-		(121)		6,071		-
Total bonds available for sale		29,683		730		(481)		106		456		(318)		30,176		-
Other bond securities:
Corporate debt		-		-		-		-		16		-		16		(1)
RMBS		1,105		26		-		220		44		(58)		1,337		1
CMBS		369		8		-		(154)		-		-		223		8
CDO/ABS		7,449		397		-		(926)		581		(75)		7,426		51
Total other bond securities		8,923		431		-		(860)		641		(133)		9,002		59
Equity securities available for sale:
Common stock		1		2		-		(3)		-		-		-		-
Total equity securities available for sale		1		2		-		(3)		-		-		-		-
Other equity securities		-		-		-		-		22		-		22		-
Mortgage and other loans receivable		6		-		-		-		-		-		6		-
Other invested assets		5,650		527		(549)		(586)		98		(65)		5,075		-
Total	$	44,263	$	1,690	$	(1,030)	$	(1,343)	$	1,217	$	(516)	$	44,281	$	59
Liabilities:
Policyholder contract deposits	$	(1,509)	$	461	$	-	$	(184)	$	-	$	-	$	(1,232)	$	40
Derivative liabilities, net:
Interest rate contracts		(74)		-		-		12		-		-		(62)		(1)
Foreign exchange contracts		(8)		3		-		(2)		-		-		(7)		3
Equity contracts		47		6		-		10		-		-		63		2
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		(978)		160		-		267		-		-		(551)		50
Other contracts		(59)		73		-		(30)		-		-		(16)		48
Total derivative liabilities, net(a)		(1,072)		242		-		257		-		-		(573)		102
Long-term debt(b)		(213)		2		-		18		-		-		(193)		13
Total	$	(2,794)	$	705	$	-	$	91	$	-	$	-	$	(1,998)	$	155

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Three Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,042	$	-	$	74	$	7	$	-	$	(132)	$	1,991	$	-
Non-U.S. governments		17		-		-		4		4		-		25		-
Corporate debt		1,815		9		33		(71)		707		(297)		2,196		-
RMBS		15,764		251		127		67		119		-		16,328		-
CMBS		5,741		17		129		(7)		69		(32)		5,917		-
CDO/ABS		6,610		18		1		726		103		(27)		7,431		-
Total bonds available for sale		31,989		295		364		726		1,002		(488)		33,888		-
Other bond securities:
RMBS		1,069		23		-		(32)		2		-		1,062		2
CMBS		770		21		-		(40)		6		-		757		19
CDO/ABS		8,498		334		-		(436)		1		-		8,397		122
Total other bond securities		10,337		378		-		(508)		9		-		10,216		143
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Preferred stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Mortgage and other loans receivable		-		-		-		6		-		-		6		-
Other invested assets		5,990		8		(5)		(15)		-		(154)		5,824		-
Total	$	48,316	$	681	$	359	$	209	$	1,011	$	(642)	$	49,934	$	143
Liabilities:
Policyholder contract deposits	$	(765)	$	(58)	$	(16)	$	(3)	$	-	$	-	$	(842)	$	(37)
Derivative liabilities, net:
Interest rate contracts		(98)		8		-		23		-		-		(67)		8
Foreign exchange contracts		-		3		-		(12)		-		-		(9)		3
Equity contracts		88		11		-		(8)		-		-		91		11
Commodity contracts		1		-		-		-		-		-		1		-
Credit contracts		(1,185)		75		-		25		-		-		(1,085)		69
Other contracts		(109)		18		48		(10)		-		-		(53)		16
Total derivatives liabilities, net(a)		(1,303)		115		48		18		-		-		(1,122)		107
Long-term debt(b)		(403)		(5)		-		14		-		-		(394)		(4)
Total	$	(2,471)	$	52	$	32	$	29	$	-	$	-	$	(2,358)	$	66

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Six Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions(c)	$	1,080	$	-	$	191	$	853	$	-	$	(133)	$	1,991	$	-
Non-U.S. governments		16		-		(1)		6		4		-		25		-
Corporate debt		1,255		6		53		(67)		1,355		(406)		2,196		-
RMBS		14,941		495		260		624		119		(111)		16,328		-
CMBS		5,735		23		240		(57)		69		(93)		5,917		-
CDO/ABS		6,974		52		3		734		169		(501)		7,431		-
Total bonds available for sale		30,001		576		746		2,093		1,716		(1,244)		33,888		-
Other bond securities:
RMBS		937		51		-		72		2		-		1,062		17
CMBS		844		38		-		(131)		6		-		757		32
CDO/ABS		8,834		669		-		(887)		1		(220)		8,397		286
Total other bond securities		10,615		758		-		(946)		9		(220)		10,216		335
Equity securities available for sale:
Common stock		1		-		-		-		-		(1)		-		-
Preferred stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		1		-		-		-		-		(1)		-		-
Mortgage and other loans receivable		-		-		-		6		-		-		6		-
Other invested assets		5,930		87		49		34		85		(361)		5,824		-
Total	$	46,547	$	1,421	$	795	$	1,187	$	1,810	$	(1,826)	$	49,934	$	335
Liabilities:
Policyholder contract deposits	$	(312)	$	(532)	$	(24)	$	26	$	-	$	-	$	(842)	$	(120)
Derivative liabilities, net:
Interest rate contracts		(100)		2		-		32		-		(1)		(67)		4
Foreign exchange contracts		-		3		-		(12)		-		-		(9)		4
Equity contracts		49		8		-		(14)		48		-		91		5
Commodity contracts		1		-		-		-		-		-		1		-
Credit contracts		(1,280)		154		-		41		-		-		(1,085)		164
Other contracts		(109)		35		47		(26)		-		-		(53)		27
Total derivatives liabilities, net(a)		(1,439)		202		47		21		48		(1)		(1,122)		204
Long-term debt(b)		(370)		(8)		-		33		(70)		21		(394)		5
Total	$	(2,121)	$	(338)	$	23	$	80	$	(22)	$	20	$	(2,358)	$	89

(a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only.

(b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable.

(c)Purchases, Sales, Issues and Settlements, Net primarily reflect the effect of consolidating previously unconsolidated securitization vehicles.

Net realized and unrealized gains and losses related to Level 3 items shown above are reported in the Condensed Consolidated Statements of Income as follows:

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended June 30, 2015
Bonds available for sale	$	311	$	10	$	93	$	414
Other bond securities		23		(3)		298		318
Equity securities available for sale		-		2		-		2
Other invested assets		18		(12)		75		81
Policyholder contract deposits		-		736		-		736
Derivative liabilities, net		(19)		(1)		96		76
Long-term debt		-		-		(13)		(13)
Three Months Ended June 30, 2014
Bonds available for sale	$	298	$	(15)	$	12	$	295
Other bond securities		49		1		328		378
Equity securities available for sale		-		-		-		-
Other invested assets		12		(9)		5		8
Policyholder contract deposits		-		(58)		-		(58)
Derivative liabilities, net		16		8		91		115
Long-term debt		-		-		(5)		(5)
Six Months Ended June 30, 2015
Bonds available for sale	$	622	$	1	$	107	$	730
Other bond securities		41		3		387		431
Equity securities available for sale		-		2		-		2
Other invested assets		86		377		64		527
Policyholder contract deposits		-		461		-		461
Derivative liabilities, net		-		5		237		242
Long-term debt		-		-		2		2
Six Months Ended June 30, 2014
Bonds available for sale	$	602	$	(51)	$	25	$	576
Other bond securities		100		2		656		758
Equity securities available for sale		-		-		-		-
Other invested assets		89		(13)		11		87
Policyholder contract deposits		-		(532)		-		(532)
Derivative liabilities, net		31		5		166		202
Long-term debt		-		-		(8)		(8)

The following tables present the gross components of purchases, sales, issues and settlements, net, shown above, for the three- and six-month periods ended June 30,2015 and 2014related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets:

								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net(a)
Three Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	116	$	-	$	(23)	$	93
Non-U.S. governments		2		-		(2)		-
Corporate debt		182		(10)		(257)		(85)

RMBS		446		(143)		(733)		(430)
CMBS		70		-		(53)		17
CDO/ABS		282		(178)		(387)		(283)
Total bonds available for sale		1,098		(331)		(1,455)		(688)
Other bond securities:
RMBS		64		(4)		(44)		16
CMBS		-		(43)		(11)		(54)
CDO/ABS		12		(331)		(369)		(688)
Total other bond securities		76		(378)		(424)		(726)
Equity securities available for sale		-		(2)		(1)		(3)
Other invested assets		64		(1)		(155)		(92)
Total assets	$	1,238	$	(712)	$	(2,035)	$	(1,509)
Liabilities:
Policyholder contract deposits	$	-	$	(112)	$	(21)	$	(133)
Derivative liabilities, net		2		-		212		214
Long-term debt(b)		-		-		6		6
Total liabilities	$	2	$	(112)	$	197	$	87
Three Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	48	$	(27)	$	(14)	$	7
Non-U.S. governments		5		-		(1)		4
Corporate debt		63		(1)		(133)		(71)
RMBS		665		(11)		(587)		67
CMBS		27		-		(34)		(7)
CDO/ABS		892		(2)		(164)		726
Total bonds available for sale		1,700		(41)		(933)		726
Other bond securities:
RMBS		21		(14)		(39)		(32)
CMBS		-		-		(40)		(40)
CDO/ABS		23		(8)		(451)		(436)
Total other bond securities		44		(22)		(530)		(508)
Equity securities available for sale		-		-		-		-
Mortgage and other loans receivable		6		-		-		6
Other invested assets		137		(1)		(151)		(15)
Total assets	$	1,887	$	(64)	$	(1,614)	$	209
Liabilities:
Policyholder contract deposits	$	-	$	(46)	$	43	$	(3)
Derivative liabilities, net		-		-		18		18
Long-term debt(b)		-		-		14		14
Total liabilities	$	-	$	(46)	$	75	$	29
								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net(a)
Six Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	223	$	(22)	$	(43)	$	158
Non-U.S. governments		8		-		(4)		4
Corporate debt		188		(60)		(274)		(146)

RMBS		1,407		(165)		(1,318)		(76)
CMBS		142		(27)		(68)		47
CDO/ABS		861		(201)		(541)		119
Total bonds available for sale		2,829		(475)		(2,248)		106
Other bond securities:
RMBS		309		(10)		(79)		220
CMBS		-		(79)		(75)		(154)
CDO/ABS		226		(371)		(781)		(926)
Total other bond securities		535		(460)		(935)		(860)
Equity securities available for sale		-		(2)		(1)		(3)
Other invested assets		304		(587)		(303)		(586)
Total assets	$	3,668	$	(1,524)	$	(3,487)	$	(1,343)
Liabilities:
Policyholder contract deposits	$	-	$	(185)	$	1	$	(184)
Derivative liabilities, net		17		-		240		257
Long-term debt(b)		-		-		18		18
Total liabilities	$	17	$	(185)	$	259	$	91
Six Months Ended June 30, 2014
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions(c)	$	936	$	(32)	$	(51)	$	853
Non-U.S. governments		7		-		(1)		6
Corporate debt		119		(8)		(178)		(67)
RMBS		1,752		(26)		(1,102)		624
CMBS		92		(57)		(92)		(57)
CDO/ABS		1,222		(2)		(486)		734
Total bonds available for sale		4,128		(125)		(1,910)		2,093
Other bond securities:
RMBS		162		(19)		(71)		72
CMBS		-		(6)		(125)		(131)
CDO/ABS		44		(15)		(916)		(887)
Total other bond securities		206		(40)		(1,112)		(946)
Equity securities available for sale		-		-		-		-
Mortgage and other loans receivable		6		-		-		6
Other invested assets		433		(1)		(398)		34
Total assets	$	4,773	$	(166)	$	(3,420)	$	1,187
Liabilities:
Policyholder contract deposits	$	-	$	(58)	$	84	$	26
Derivative liabilities, net		1		-		20		21
Long-term debt(b)		-		-		33		33
Total liabilities	$	1	$	(58)	$	137	$	80

(a)There were no issuances during thethree- and six-month periods ended June 30,2015 and 2014, respectively.

(b) Includes GIAs, notes, bonds, loans and mortgages payable.

(c) Purchases primarily reflect the effect of consolidating previously unconsolidated securitization vehicles.

Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held atJune 30,2015 and 2014 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).

Transfers of Level 3 Assets and Liabilities

We record transfers of assets and liabilities into or out of Level 3 classification at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. The Net realized and unrealized gains (losses) included in income or Other comprehensive income (loss) as shown in the table above contains no material net gains (losses) related to assets and liabilities transferred into or out of Level 3 during the three-month period ended June 30,2015. The Net realized and unrealized gains (losses) included in income or Other comprehensive income (loss) as shown in the table above exclude $18 million of net gains related to assets and liabilities transferred into Level 3, and include $3 million of net gains related to assets and liabilities transferred out of Level 3 during the six-month period ended June 30,2015.

The Net realized and unrealized gains (losses) included in income or Other comprehensive income (loss) as shown in the table above excludes $14million and $37 million of net gains related to assets and liabilities transferred into Level 3 during the three- and six-month periods ended June 30,2014, respectively, and includes$25million and $2 million of net lossesrelated to assets and liabilities transferred out of Level 3 during the three- and six-month periods ended June 30,2014, respectively.

Transfers of Level 3 Assets

During the three- and six-month periods ended June 30,2015 and 2014, transfers into Level 3 assets primarily included certain investments in RMBS, CDO/ABS and private placement corporate debt. The transfers of investments in RMBS and CDO/ABS into Level 3 assets were due to decreases in market transparency and liquidity for individual security types. Transfers of investments in private placement corporate debt into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity.

During the three- and six-month periods ended June 30,2015 and 2014, transfers out of Level 3 assets primarily related to certain investments in corporate debt, RMBS, CDO/ABS, and investments in hedge funds. Transfers of certain investments in corporate debt, RMBS, and CDO/ABS out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments. The transfers of certain hedge fund investments out of Level 3 assets were primarily the result of easing of certain fund-imposed redemption restrictions.

Transfers of Level 3 Liabilities

There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three- and six-month periods ended June 30,2015 and 2014.

Quantitative Information About Level 3 Fair Value Measurements

The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from third-party valuation service providers and from internal valuation models. Because input information from third-parties with respect to certain Level 3 instruments (primarily CDO/ABS) may not be reasonably available to us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities:

	Fair Value at
	June 30,		Valuation		Range
(in millions)	2015		Technique	Unobservable Input	(Weighted Average)
Assets:
Obligations of states,	$	1,224	Discounted cash flow	Yield(b)	4.32% - 5.14% (4.73%)
municipalities and
political subdivisions
Corporate debt		1,519	Discounted cash flow	Yield(b)	4.27% - 7.64% (5.96%)
RMBS		17,727	Discounted cash flow	Constant prepayment rate(a)(c)	0.88% - 9.02% (4.95%)
				Loss severity(a)(c)	46.61% - 79.61% (63.11%)
				Constant default rate(a)(c)	3.54% - 8.93% (6.23%)
				Yield(c)	2.93% - 6.27% (4.60%)
CDO/ABS		3,819	Discounted cash flow	Constant prepayment rate(a)(c)	6.70% - 13.10% (9.40%)
				Loss severity(a)(c)	39.90% - 55.20% (47.70%)
				Constant default rate(a)(c)	2.50% - 13.50% (7.30%)
				Yield(c)	4.40% - 8.20% (7.00%)
CMBS		2,638	Discounted cash flow	Yield(b)	0.00% - 17.59% (5.97%)
Liabilities:
Policyholder contract
deposits
GMWB		434	Discounted cash flow	Equity implied volatility(b)	6.00% - 39.00%(d)
				Base lapse rate(b)	1.00% - 40.00%(d)
				Dynamic lapse rate(b)	0.20% - 60.00%(d)
				Mortality rate(b)	0.10% - 35.00%(d)
				Utilization rate(b)	0.50% - 30.00%(d)
Index Annuities		461	Discounted cash flow	Lapse rate	0.75% - 66.00%(d)
				Mortality rate	0.02% - 44.06%(d)
Index Life		285	Discounted cash flow	Equity implied volatility	10.00% to 25.00%(d)
				Base lapse rate	2.00% to 19.00%(d)
				Mortality rate	0.00% to 20.00%(d)
Total derivative
liabilities, net		299	Binomial Expansion	Recovery rate(b)	8.00% - 23.00% (13.00%)
			Technique (BET)	Diversity score(b)	9 - 10 (10)
				Weighted average life(b)	4.51 - 8.44 years (7.06 years)

		Fair Value at
		December 31,	Valuation		Range
(in millions)		2014	Technique	Unobservable Input	(Weighted Average )
Assets:
Obligations of states,	$	1,178	Discounted cash flow	Yield(b)	3.9% - 4.62% (4.26%)
municipalities and
political subdivisions
Corporate debt		1,145	Discounted cash flow	Yield(b)	3.46% - 8.75% (6.10%)
RMBS		17,353	Discounted cash flow	Constant prepayment rate(a)(c)	0.59% - 9.35% (4.97%)
				Loss severity(a)(c)	46.04% - 79.56% (62.80%)
				Constant default rate(a)(c)	3.67% - 9.96% (6.82%)
				Yield(c)	2.67% - 6.64% (4.65%)
CDO/ABS		5,282	Discounted cash flow	Constant prepayment rate(a)(c)	6.40% - 12.80% (9.20%)
				Loss severity(a)(c)	42.90% - 60.30% (51.90%)
				Constant default rate(a)(c)	2.50% - 14.70% (7.80%)
				Yield(c)	4.70% - 9.70% (7.10%)
CMBS		2,687	Discounted cash flow	Yield(b)	0.00% - 17.29% (6.06%)
Liabilities:
Policyholder contract
deposits
GMWB		890	Discounted cash flow	Equity implied volatility(b)	6.00% - 39.00%(d)
				Base lapse rate(b)	1.00% - 40.00%(d)
				Dynamic lapse rate(b)	0.20% - 60.00%(d)
				Mortality rate(b)	0.10% - 35.00%(d)
				Utilization rate(b)	0.50% - 30.00%(d)
Index Annuities		294	Discounted cash flow	Lapse rate	0.75% - 66.00%(d)
				Mortality rate	0.02% - 44.06%(d)
Index Life		259	Discounted cash flow	Equity implied volatility	10.00% to 25.00%(d)
				Base lapse rate	2.00% to 19.00%(d)
				Mortality rate	0.00% to 20.00%(d)
Total derivative
liabilities, net		791	BET	Recovery rate(b)	5.00% - 23.00% (13.00%)
				Diversity score(b)	8 - 25 (13)
				Weighted average life(b)	2.67 - 10.49 years (4.65 years)

(a)The unobservable inputs and ranges for the constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us because there are other factors relevant to the fair values of specific tranches owned by us including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points.

(b) Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities.

(c) Information received from independent third-party valuation service providers.

(d)Represents actual maximum and minimum, not weighted average rates.

The ranges of reported inputs for Corporate debt, RMBS, CDO/ABS, and CMBS valued using a discounted cash flow technique consist of plus/minus one standard deviation in either direction from the value-weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these investments.

Sensitivity to Changes in Unobservable Inputs

We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following is a general description of sensitivities of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. The effect of a change in a particular assumption in the sensitivity analysis below is considered independently of changes in any other assumptions. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply.

Obligations of States, Municipalities and Political Subdivisions

The significant unobservable input used in fair value measurement of certain investments in obligations of states, municipalities and political subdivisions is yield.  In general, increases in the yield would decrease the fair value of investments in obligations of states, municipalities and political subdivisions.

Corporate Debt

Corporate debt securities included in Level 3 are primarily private placement issuances that are not traded in active markets or that are subject to transfer restrictions. Fair value measurements consider illiquidity and non-transferability. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of publicly-traded debt of the issuer or other comparable securities, considering illiquidity and structure. The significant unobservable input used in the fair value measurement of corporate debt is the yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. In addition, the migration in credit quality of a given security generally has a corresponding effect on the fair value measurement of the security. For example, a downward migration of credit quality would increase spreads. Holding U.S. Treasury rates constant, an increase in corporate credit spreads would decrease the fair value of corporate debt.

RMBS and CDO/ABS

The significant unobservable inputs used in fair value measurements of RMBS and CDO/ABS valued by third-party valuation service providers are constant prepayment rates (CPR), loss severity, constant default rates (CDR), and yield. A change in the assumptions used for the probability of default will generally be accompanied by a corresponding change in the assumption used for the loss severity and an inverse change in the assumption used for prepayment rates. In general, increases in CPR, loss severity, CDR, and yield, in isolation, would result in a decrease in the fair value measurement. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship between the directional change of each input is not usually linear.

CMBS

The significant unobservable input used in fair value measurements for CMBS is the yield. Prepayment assumptions for each mortgage pool are factored into the yield. CMBS generally feature a lower degree of prepayment risk than RMBS because commercial mortgages generally contain a penalty for prepayment. In general, increases in the yield would decrease the fair value of CMBS.

Policyholder contract deposits

Embedded derivatives within Policyholder contract deposits relate to guaranteed minimum withdrawal benefits (GMWB) within variable annuity products and certain enhancements to interest crediting rates based on market indices within equity-indexed annuities and guaranteed investment contracts (GICs). GMWB represents our largest exposure of these embedded derivatives, although the carrying value of the liability fluctuates based on the performance of the equity markets and therefore, at a point in time, can be low relative to the exposure. The principal unobservable input used for GMWBs and embedded derivatives in equity-indexed annuities measured at fair value is equity implied volatility. For GMWBs, other significant unobservable inputs include base and dynamic lapse rates, mortality rates, and utilization rates. Lapse, mortality, and utilization rates may vary significantly depending upon age groups and duration. In general, increases in volatility and utilization rates will increase the fair value of the liability associated with GMWB, while increases in lapse rates and mortality rates will decrease the fair value of the liability.

Derivative liabilities – credit contracts

The significant unobservable inputs used for Derivative liabilities – credit contracts are recovery rates, diversity scores, and the weighted average life of the portfolio. AIG non-performance risk is also considered in the measurement of the liability.

An increase in recovery rates and diversity score will decrease the fair value of the liability. An increase in the weighted average life will increase the fair value measurement of the liability.

Investments in Certain Entities Carried at Fair Value Using Net Asset Value Per Share

The following table includes information related to our investments in certain other invested assets, including private equity funds and hedge funds that calculate net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share as a practical expedient to measure fair value.

		June 30, 2015				December 31, 2014
			Fair Value Using Net Asset Value Per Share (or its equivalent)				Fair Value Using Net Asset Value Per Share (or its equivalent)
					Unfunded				Unfunded
(in millions)	Investment Category Includes				Commitments				Commitments
Investment Category
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	2,008	$	446	$	2,275	$	450
Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		359		203		384		227
Venture capital	Early-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company		119		34		121		26
Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		157		43		164		43
Other	Includes multi-strategy, mezzanine and other strategies		259		213		216		234
Total private equity funds			2,902		939		3,160		980
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		1,288		-		1,109		-
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		2,880		16		2,428		1
Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		562		-		498		-
Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		753		15		731		5
Emerging markets	Investments in the financial markets of developing countries		347		-		308		-
Other	Includes multi-strategy, relative value and other strategies		182		-		125		-
Total hedge funds			6,012		31		5,199		6
Total		$	8,914	$	970	$	8,359	$	986

Private equity fund investments included above are not redeemable, because distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one- or two-year increments. At June 30,2015, assuming average original expected lives of 10 years for the funds, 84 percent of the total fair value using net asset value per share (or its equivalent) presented above would have expected remaining lives of three years or less, 5 percent between four and six years and 11 percent between seven and 10 years.

The hedge fund investments included above are generally redeemable monthly (14 percent), quarterly (49 percent), semi-annually (14 percent) and annually (23 percent), with redemption notices ranging from one day to 180 days. At June 30,2015, however, investments representing approximately 44 percent of the total fair value of the hedge fund investments cannot be redeemed, either in whole or in part, because the investments include various contractual restrictions. The majority of these contractual restrictions, which may have been put in place at the fund’s inception or thereafter, have pre-defined end dates and are generally expected to be lifted by the end of 2016. The fund investments for which redemption is restricted only in part generally relate to certain hedge funds that hold at least one investment that the fund manager deems to be illiquid.

Fair Value Option

The following table presents the gains and losses recorded related to the eligible instruments for which we elected the fair value option:

	Gain (Loss) Three Months Ended June 30,				Gain (Loss) Six Months Ended June 30,
(in millions)		2015		2014		2015		2014
Assets:
Bond and equity securities	$	460	$	611	$	601	$	1,277
Alternative Investments(a)		118		18		263		172
Other, including Short-term investments		-		2		2		5
Liabilities:
Long-term debt(b)		131		(135)		55		(209)
Other liabilities		-		(2)		(3)		(6)
Total gain	$	709	$	494	$	918	$	1,239

(a)Includes hedge funds, private equity funds and other investment partnerships.

(b)Includes GIAs, notes, bonds, loans and mortgages payable.

We recognized gains of $5 millionand $11 million during the three- and six-month periods ended June 30,2015, respectively, and losses of $11 million and $22 million during the three- and six-month periods ended June 30,2014, respectively, attributable to the observable effect of changes in credit spreads on our own liabilities for which the fair value option was elected. We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, our observable credit spreads on these liabilities and other factors that mitigate the risk of nonperformance such as cash collateral posted.

The following table presents the difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term debt for which the fair value option was elected:

	June 30, 2015						December 31, 2014
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	6	$	4	$	2	$	6	$	4	$	2
Liabilities:
Long-term debt*	$	4,269	$	3,173	$	1,096	$	5,466	$	4,101	$	1,365

* Includes GIAs, notes, bonds, loans and mortgages payable.

Fair Value Measurements on a Non-Recurring Basis

The following table presents assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented:

	Assets at Fair Value								Impairment Charges
	Non-Recurring Basis								Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	Level 1		Level 2		Level 3			Total		2015		2014		2015		2014
June 30, 2015
Other investments	$	-	$	-	$	1,000	$	1,000	$	27	$	20	$	52	$	55
Investments in life settlements		-		-		501		501		72		45		142		87
Other assets		-		-		12		12		4		-		8		1
Total	$	-	$	-	$	1,513	$	1,513	$	103	$	65	$	202	$	143
December 31, 2014
Other investments	$	-	$	-	$	790	$	790
Investments in life settlements		-		-		537		537
Other assets		-		-		1		1
Total	$	-	$	-	$	1,328	$	1,328

Fair Value InformationAbout Financial Instruments Not Measuredat Fair Value

The following table presents the carrying value and estimated fair value of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Estimated Fair Value									Carrying
(in millions)		Level 1		Level 2		Level 3		Total		Value
June 30, 2015
Assets:
Mortgage and other loans receivable	$	-	$	376	$	27,931	$	28,307	$	27,137
Other invested assets		-		523		2,983		3,506		4,338
Short-term investments		-		11,584		-		11,584		11,584
Cash		1,937		-		-		1,937		1,937
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		268		116,875		117,143		106,864
Other liabilities		-		899		-		899		899
Long-term debt		-		23,593		3,674		27,267		26,091
December 31, 2014
Assets:
Mortgage and other loans receivable	$	-	$	449	$	26,157	$	26,606	$	24,984
Other invested assets		-		593		2,882		3,475		4,352
Short-term investments		-		9,559		-		9,559		9,559
Cash		1,758		-		-		1,758		1,758
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		244		119,268		119,512		106,395
Other liabilities		-		1,120		-		1,120		1,120
Long-term debt		-		24,749		2,932		27,681		25,751

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INVESTMENTS

6 Months Ended

Jun. 30, 2015

INVESTMENTS

INVESTMENTS

5. INVESTMENTS

Securities Available for Sale

The following table presents the amortized cost or cost and fair value of our available for sale securities:

										Other-Than-
		Amortized		Gross		Gross				Temporary
		Cost or		Unrealized		Unrealized		Fair		Impairments
(in millions)		Cost		Gains		Losses		Value		in AOCI(a)
June 30, 2015
Bonds available for sale:
U.S. government and government sponsored entities	$	2,364	$	164	$	(14)	$	2,514	$	-
Obligations of states, municipalities and political subdivisions		26,610		1,224		(172)		27,662		15
Non-U.S. governments		18,441		911		(203)		19,149		-
Corporate debt		134,361		8,386		(1,884)		140,863		29
Mortgage-backed, asset-backed and collateralized:
RMBS		33,448		3,133		(333)		36,248		1,582
CMBS		12,944		687		(109)		13,522		212
CDO/ABS		14,749		485		(126)		15,108		43
Total mortgage-backed, asset-backed and collateralized		61,141		4,305		(568)		64,878		1,837
Total bonds available for sale(b)		242,917		14,990		(2,841)		255,066		1,881
Equity securities available for sale:
Common stock		1,499		2,364		(12)		3,851		-
Preferred stock		21		4		-		25		-
Mutual funds		865		62		(48)		879		-
Total equity securities available for sale		2,385		2,430		(60)		4,755		-
Total	$	245,302	$	17,420	$	(2,901)	$	259,821	$	1,881
December 31, 2014
Bonds available for sale:
U.S. government and government sponsored entities	$	2,806	$	204	$	(18)	$	2,992	$	-
Obligations of states, municipalities and political subdivisions		25,979		1,729		(49)		27,659		(13)
Non-U.S. governments		20,280		966		(151)		21,095		-
Corporate debt		134,961		10,594		(1,122)		144,433		64
Mortgage-backed, asset-backed and collateralized:
RMBS		34,377		3,435		(292)		37,520		1,767
CMBS		12,129		815		(59)		12,885		215
CDO/ABS		12,775		628		(128)		13,275		47
Total mortgage-backed, asset-backed and collateralized		59,281		4,878		(479)		63,680		2,029
Total bonds available for sale(b)		243,307		18,371		(1,819)		259,859		2,080
Equity securities available for sale:
Common stock		1,185		2,461		(17)		3,629		-
Preferred stock		21		4		-		25		-
Mutual funds		724		54		(37)		741		-
Total equity securities available for sale		1,930		2,519		(54)		4,395		-
Total	$	245,237	$	20,890	$	(1,873)	$	264,254	$	2,080

(a) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date.

(b) At June 30,2015 and December 31,2014, bonds available for sale held by us that were below investment grade or not rated totaled $35.9 billion and $35.1 billion, respectively.

Securities Available for Sale in a Loss Position

The following table summarizes the fair value and gross unrealized losses on our available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position:

	Less than 12 Months				12 Months or More				Total
				Gross				Gross				Gross
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in millions)		Value		Losses		Value		Losses		Value		Losses
June 30, 2015
Bonds available for sale:
U.S. government and government sponsored entities	$	431	$	8	$	128	$	6	$	559	$	14
Obligations of states, municipalities and political
subdivisions		4,954		147		315		25		5,269		172
Non-U.S. governments		3,363		113		743		90		4,106		203
Corporate debt		31,074		1,351		4,161		533		35,235		1,884
RMBS		6,478		162		2,878		171		9,356		333
CMBS		3,040		82		610		27		3,650		109
CDO/ABS		3,136		39		1,593		87		4,729		126
Total bonds available for sale		52,476		1,902		10,428		939		62,904		2,841
Equity securities available for sale:
Common stock		85		12		1		-		86		12
Mutual funds		544		41		29		7		573		48
Total equity securities available for sale		629		53		30		7		659		60
Total	$	53,105	$	1,955	$	10,458	$	946	$	63,563	$	2,901
December 31, 2014
Bonds available for sale:
U.S. government and government sponsored entities	$	526	$	5	$	281	$	13	$	807	$	18
Obligations of states, municipalities and political
subdivisions		495		9		794		40		1,289		49
Non-U.S. governments		1,606		42		1,690		109		3,296		151
Corporate debt		12,132		450		11,570		672		23,702		1,122
RMBS		4,621		109		3,996		183		8,617		292
CMBS		220		1		2,087		58		2,307		59
CDO/ABS		3,857		50		1,860		78		5,717		128
Total bonds available for sale		23,457		666		22,278		1,153		45,735		1,819
Equity securities available for sale:
Common stock		88		16		2		1		90		17
Mutual funds		280		37		64		-		344		37
Total equity securities available for sale		368		53		66		1		434		54
Total	$	23,825	$	719	$	22,344	$	1,154	$	46,169	$	1,873

At June 30,2015, we held 11,470 and 160individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 1,728individual fixed maturity securitieswere 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 June 30,2015because we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and other available market data.

Contractual Maturities of Fixed Maturity Securities Available for Sale

The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity:

	Total Fixed Maturity Securities				Fixed Maturity Securities in a Loss
June 30, 2015	Available for Sale				Position Available for Sale
(in millions)		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	11,166	$	11,331	$	927	$	912
Due after one year through five years		46,392		49,034		6,317		6,171
Due after five years through ten years		58,311		60,423		16,885		16,245
Due after ten years		65,907		69,400		23,313		21,841
Mortgage-backed, asset-backed and collateralized		61,141		64,878		18,303		17,735
Total	$	242,917	$	255,066	$	65,745	$	62,904
December 31, 2014
Due in one year or less	$	9,821	$	9,975	$	637	$	620
Due after one year through five years		48,352		50,873		6,669		6,529
Due after five years through ten years		62,685		65,889		12,873		12,338
Due after ten years		63,168		69,442		10,255		9,607
Mortgage-backed, asset-backed and collateralized		59,281		63,680		17,120		16,641
Total	$	243,307	$	259,859	$	47,554	$	45,735

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.

The following table presents the gross realized gains and gross realized losses from sales or maturities of our available for sale securities:

	Three Months Ended June 30,								Six Months Ended June 30,
		2015				2014			2015					2014
		Gross		Gross		Gross		Gross		Gross		Gross		Gross		Gross
	Realized		Realized		Realized		Realized		Realized		Realized		Realized			Realized
(in millions)		Gains		Losses		Gains		Losses		Gains		Losses		Gains		Losses
Fixed maturity securities	$	194	$	59	$	194	$	13	$	343	$	177		$	410	$	44
Equity securities		24		3		39		4		520		8			69		6
Total	$	218	$	62	$	233	$	17	$	863	$	185		$	479	$	50

For the three- and six-month periods ended June 30,2015, the aggregate fair value of available for sale securities sold was $7.1 billion and $14.0 billion, respectively, which resulted in net realized capital gains of $0.2 billion and $0.7 billion, respectively.

For the three- and six-month periods ended June 30,2014, the aggregate fair value of available for sale securities sold was $5.9 billion and $12.0 billion, respectively, which resulted in net realized capital gains of $0.2 billion and $0.4 billion, respectively.

Other Securities Measured at Fair Value

The following table presents the fair value of other securities measured at fair value based on our election of the fair value option:

		June 30, 2015				December 31, 2014
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	3,815	21	%	$	5,498	27	%
Obligations of states, municipalities and political subdivisions		75	-			122	1
Non-U.S. governments		2	-			2	-
Corporate debt		452	4			719	3
Mortgage-backed, asset-backed and collateralized:
RMBS		2,210	12			2,094	10
CMBS		867	5			1,077	5
CDO/ABS and other collateralized*		9,177	51			10,200	49
Total mortgage-backed, asset-backed and collateralized		12,254	68			13,371	64
Total fixed maturity securities		16,598	93			19,712	95
Equity securities		1,323	7			1,049	5
Total	$	17,921	100	%	$	20,761	100	%

* Includes $793 million and $859 million of U.S. Government agency backed ABS at June 30,2015 and December 31,2014, respectively.

Net Investment Income

The following table presents the components of Net investment income:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
Fixed maturity securities, including short-term investments	$	2,800	$	3,111	$	5,683	$	6,242
Equity securities		66		17		81		(68)
Interest on mortgage and other loans		347		311		686		629
Alternative investments*		694		547		1,383		1,472
Real estate		24		33		50		61
Other investments		12		(2)		50		9
Total investment income		3,943		4,017		7,933		8,345
Investment expenses		117		133		269		265
Net investment income	$	3,826	$	3,884	$	7,664	$	8,080

*Includes hedge funds, private equity funds, affordable housing partnerships, investments in life settlements and other investment partnerships.

Net Realized Capital Gains and Losses

The following table presents the components of Net realized capital gains (losses):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
Sales of fixed maturity securities	$	135	$	181	$	166	$	366
Sales of equity securities		21		35		512		63
Other-than-temporary impairments:
Severity		-		-		(2)		-
Change in intent		(88)		(1)		(112)		(6)
Foreign currency declines		(3)		(6)		(32)		(10)
Issuer-specific credit events		(70)		(44)		(138)		(93)
Adverse projected cash flows		(3)		(4)		(8)		(5)
Provision for loan losses		(13)		15		11		20
Foreign exchange transactions		66		(47)		320		(21)
Derivative instruments		288		73		496		(216)
Impairments on investments in life settlements		(72)		(45)		(142)		(87)
Other*		(135)		5		396		(1)
Net realized capital gains	$	126	$	162	$	1,467	$	10

* Includes realized gains due to the sale of Class B shares of Prudential Financial, Inc. and common shares of Springleaf Holdings, Inc. and realized losses on the sale of ordinary shares of AerCap.

Change in Unrealized Appreciation (Depreciation) of Investments

The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	(6,559)	$	3,644	$	(4,403)	$	7,638
Equity securities		287		173		(95)		45
Other investments		(37)		(40)		(540)		33
Total Increase (decrease) in unrealized appreciation (depreciation) of investments	$	(6,309)	$	3,777	$	(5,038)	$	7,716

Evaluating Investments for Other-Than-Temporary Impairments

For a discussion of our policy for evaluating investments for other-than-temporary impairments, see Note 6 to the Consolidated Financial Statements in the 2014 Annual Report.

Credit Impairments

The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
Balance, beginning of period	$	2,466	$	3,389	$	2,659	$	3,872
Increases due to:
Credit impairments on new securities subject to impairment losses		35		14		50		22
Additional credit impairments on previously impaired securities		25		18		47		54
Reductions due to:
Credit impaired securities fully disposed of for which there was no
prior intent or requirement to sell		(108)		(82)		(150)		(412)
Accretion on securities previously impaired due to credit*		(180)		(173)		(368)		(361)
Other		-		-		-		(9)
Balance, end of period	$	2,238	$	3,166	$	2,238	$	3,166

* Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time.

Purchased Credit Impaired (PCI) Securities

We purchase certain RMBS securities that have experienced deterioration in credit quality since their issuance. We determine, based on our expectations as to the timing and amount of cash flows expected to be received, whether it is probable at acquisition that we will not collect all contractually required payments for these PCI securities, including both principal and interest after considering the effects of prepayments. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security is determined based on our best estimate using key assumptions, such as interest rates, default rates and prepayment speeds. At acquisition, the difference between the undiscounted expected future cash flows of the PCI securities and the recorded investment in the securities represents the initial accretable yield, which is accreted into Net investment income over their remaining lives on a level-yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. The accretable yield and the non-accretable difference will change over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, which are discussed further below.

On a quarterly basis, the undiscounted expected future cash flows associated with PCI securities are re-evaluated based on updates to key assumptions. Declines in undiscounted expected future cash flows due to further credit deterioration as well as changes in the expected timing of the cash flows can result in the recognition of an other-than-temporary impairment charge, as PCI securities are subject to our policy for evaluating investments for other-than-temporary impairment. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI securities will change the accretable yield prospectively. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as adjustments to the accretable yield.

The following tables present information on our PCI securities, which are included in bonds available for sale:

(in millions)	At Date of Acquisition
Contractually required payments (principal and interest)	$	32,118
Cash flows expected to be collected*		25,976
Recorded investment in acquired securities		17,330

*Represents undiscounted expected cash flows, including both principal and interest.

(in millions)	June 30, 2015		December 31, 2014
Outstanding principal balance	$	17,232	$	16,962
Amortized cost		12,542		12,216
Fair value		13,669		13,462

The following table presents activity for the accretable yield on PCI securities:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2015		2014		2015		2014
Balance, beginning of period	$	6,765	$	7,170	$	6,865	$	6,940
Newly purchased PCI securities		170		247		415		769
Disposals		(13)		-		(13)		-
Accretion		(221)		(219)		(441)		(431)
Effect of changes in interest rate indices		(6)		(172)		(144)		(231)
Net reclassification from (to) non-accretable difference,
including effects of prepayments		138		16		151		(5)
Balance, end of period	$	6,833	$	7,042	$	6,833	$	7,042

Pledged Investments

Secured Financing and Similar Arrangements

We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. At June 30, 2015, 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.

Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transactions. In the event of a decline in the fair value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements.  At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively.

The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements:

(in millions)		June 30, 2015		December 31, 2014
Fixed maturity securities available for sale	$	843	$	-
Other bond securities, at fair value	$	176	$	2,122

AtJune 30, 2015, amounts borrowed under repurchase and securities lending agreements totaled $1.0billion.

At June 30, 2015, outstanding overnight and continuous repurchase agreements were collateralized by U.S. government bond securities, at fair value, of $151million, and repurchase agreements with remaining contractual maturities of 31 - 90 Dayswere collateralized by Corporate bond securities, at fair value, of $25 million. 

Securities lending agreements outstanding at June 30, 2015 had remaining contractual maturities of 31 - 90 Daysand the securities pledged to counterparties included $827million of Corporate bond securities and $16 million of Non-U.S. Government securities, all classified as available for sale.

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 the related securities, and we have the right to sell or repledge this collateral received.

The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements:

(in millions)		June 30, 2015		December 31, 2014
Securities collateral pledged to us	$	5,388	$	2,506
Amount sold or repledged by us	$	164	$	131

Insurance - Statutory and Other Deposits

Total carrying values of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance treaties, were $6.2 billion and $5.9 billion at June 30,2015 and December 31,2014, respectively.

Other Pledges

Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $39 million and $44 million of stock in FHLBs at June 30,2015 and December 31,2014, respectively. In addition, our subsidiaries have pledged securities available for sale with a fair value of $1.2billion and $0.5 billion at June 30,2015 and December 31,2014, respectively, associated with advances from the FHLBs.

Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations was approximately$2.8 billion and $3.5 billion atJune 30,2015 and December 31,2014, respectively. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties.

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VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2015

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

7. VARIABLE INTEREST ENTITIES

We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks the entity was designed to expose the variable interest holders to.

For VIEs with attributes consistent withthatof an investment company or a money market fund, the primarybeneficiary is the party or group of related parties that absorbs a majority of the expected losses of the VIE, receivesthe majority of the expected residual returns of the VIE, or both.

For all other VIEs, the primary beneficiary is the entity that has both (1) the power to direct theactivitiesof the VIE that most significantly affect the entity’s economic performance and (2) the obligation to absorblosses or the right to receive benefits that could be potentially significant to the VIE. While also considering thesefactors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability toinfluence activities that significantly affect the economic performance of the VIE.

Balance Sheet Classification and Exposure to Loss

The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Condensed Consolidated Balance Sheets:

(in millions)		Real Estate and Investment Entities(d)		Securitization Vehicles		Structured Investment Vehicle		Affordable Housing Partnerships		Other		Total
June 30, 2015
Assets:
Bonds available for sale	$	-	$	11,022	$	-	$	-	$	25	$	11,047
Other bond securities		-		6,751		491		-		42		7,284
Mortgage and other loans receivable		1		2,602		-		-		146		2,749
Other invested assets		624		596		-		1,782		24		3,026
Other (a)		52		1,056		53		57		90		1,308
Total assets(b)	$	677	$	22,027	$	544	$	1,839	$	327	$	25,414
Liabilities:
Long-term debt	$	41	$	1,246	$	57	$	265	$	6	$	1,615
Other (c)		48		245		-		141		43		477
Total liabilities	$	89	$	1,491	$	57	$	406	$	49	$	2,092
December 31, 2014
Assets:
Bonds available for sale	$	-	$	11,459	$	-	$	-	$	35	$	11,494
Other bond securities		-		7,251		615		-		40		7,906
Mortgage and other loans receivable		-		2,398		-		-		162		2,560
Other invested assets		577		651		-		1,684		29		2,941
Other (a)		40		1,447		140		49		76		1,752
Total assets(b)	$	617	$	23,206	$	755	$	1,733	$	342	$	26,653
Liabilities:
Long-term debt	$	69	$	1,370	$	52	$	199	$	7	$	1,697
Other(c)		32		276		-		101		37		446
Total liabilities	$	101	$	1,646	$	52	$	300	$	44	$	2,143

(a) Comprised primarily of Short-term investments, Premiums and other receivables and Other assets at both June 30,2015 and December 31,2014.

(b) The assets of each VIE can be used only to settle specific obligations of that VIE.

(c) Comprised primarily of Other liabilities and Derivative liabilities, at fair value, at both June 30,2015 and December 31,2014.

(d) At June 30,2015 and December 31,2014, off-balance sheet exposure, primarily consisting of commitments to real estate and investment entities, was $96.4 million and $56.4 million, respectively.

We calculate our maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE. Interest holders in VIEs sponsored by us generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to us, except in limited circumstances when we have provided a guarantee to the VIE’s interest holders.

The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs:

			Maximum Exposure to Loss
		Total VIE		On-Balance		Off-Balance
(in millions)		Assets		Sheet(a)		Sheet		Total
June 30, 2015
Real estate and investment entities	$	19,639	$	3,022	$	425	$	3,447
Affordable housing partnerships		7,694		407		-		407
Other		1,111		221		992		1,213
Total	$	28,444	$	3,650	$	1,417	$	5,067
December 31, 2014
Real estate and investment entities	$	19,949	$	2,785	$	454	$	3,239
Affordable housing partnerships		7,911		425		-		425
Other(b)		1,959		304		992		1,296
Total	$	29,819	$	3,514	$	1,446	$	4,960

(a)At June 30,2015 and December 31,2014, $3.4 billion and $3.2 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

(b) The On-Balance and Off-Balance sheet amounts have been revised from $32 million and $0 to $304 million and $992 million, respectively, to correct the Maximum Exposure to Loss as of December 31, 2014, which are not considered material to previously issued financial statements.

See Note 10 to the Consolidated Financial Statements in the 2014 Annual Report for additional information on VIEs.

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VARIABLE INTEREST ENTITIES (Details) - Major Types of Debt and Equity Securities [Domain] - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Assets:
Bonds available for sale	$ 259,821.0	$ 264,254.0
Other bond securities	16,598.0	19,712.0
Mortgage and other loans receivable	27,143.0	24,990.0
Other invested assets	29,829.0	34,518.0
Real estate and investment funds
Liabilities:
Off-balance sheet exposure	96.4	56.4
Consolidated VIE
Assets:
Bonds available for sale	11,047.0	11,494.0
Other bond securities	7,284.0	7,906.0
Mortgage and other loans receivable	2,749.0	2,560.0
Other invested assets	3,026.0	2,941.0
Other assets	1,308.0	1,752.0
Total assets	25,414.0	26,653.0
Liabilities:
Long-term debt	1,615.0	1,697.0
Other liabilities	477.0	446.0
Total liabilities	2,092.0	2,143.0
Consolidated VIE | Real estate and investment funds
Assets:
Mortgage and other loans receivable	1.0
Other invested assets	624.0	577.0
Other assets	52.0	40.0
Total assets	677.0	617.0
Liabilities:
Long-term debt	41.0	69.0
Other liabilities	48.0	32.0
Total liabilities	89.0	101.0
Consolidated VIE | Securitization vehicles
Assets:
Bonds available for sale	11,022.0	11,459.0
Other bond securities	6,751.0	7,251.0
Mortgage and other loans receivable	2,602.0	2,398.0
Other invested assets	596.0	651.0
Other assets	1,056.0	1,447.0
Total assets	22,027.0	23,206.0
Liabilities:
Long-term debt	1,246.0	1,370.0
Other liabilities	245.0	276.0
Total liabilities	1,491.0	1,646.0
Investment-grade debt securities, loans and other assets	0.0	0.0
Consolidated VIE | Structured investment vehicle
Assets:
Other bond securities	491.0	615.0
Other assets	53.0	140.0
Total assets	544.0	755.0
Liabilities:
Long-term debt	57.0	52.0
Other liabilities	0.0
Total liabilities	57.0	52.0
Consolidated VIE | Affordable housing partnerships
Assets:
Other invested assets	1,782.0	1,684.0
Other assets	57.0	49.0
Total assets	1,839.0	1,733.0
Liabilities:
Long-term debt	265.0	199.0
Other liabilities	141.0	101.0
Total liabilities	406.0	300.0
Consolidated VIE | Other
Assets:
Bonds available for sale	25.0	35.0
Other bond securities	42.0	40.0
Mortgage and other loans receivable	146.0	162.0
Other invested assets	24.0	29.0
Other assets	90.0	76.0
Total assets	327.0	342.0
Liabilities:
Long-term debt	6.0	7.0
Other liabilities	43.0	37.0
Total liabilities	49.0	44.0
Unconsolidated VIE
Assets:
Other invested assets	3,400.0	3,200.0
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	28,444.0	29,819.0
Maximum Exposure to Loss, On-Balance Sheet	3,650.0	3,514.0
Maximum Exposure to Loss, Off-Balance Sheet	1,417.0	1,446.0
Total maximum exposure to loss	5,067.0	4,960.0
Unconsolidated VIE | Real estate and investment funds
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	19,639.0	19,949.0
Maximum Exposure to Loss, On-Balance Sheet	3,022.0	2,785.0
Maximum Exposure to Loss, Off-Balance Sheet	425.0	454.0
Total maximum exposure to loss	3,447.0	3,239.0
Unconsolidated VIE | Affordable housing partnerships
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	7,694.0	7,911.0
Maximum Exposure to Loss, On-Balance Sheet	407.0	425.0
Total maximum exposure to loss	407.0	425.0
Unconsolidated VIE | Other
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Total VIE Assets	1,111.0	1,959.0
Maximum Exposure to Loss, On-Balance Sheet	221.0	304.0
Maximum Exposure to Loss, Off-Balance Sheet	992.0	992.0
Total maximum exposure to loss	$ 1,213.0	1,296.0
Unconsolidated VIE | Other | Scenario Previously Reported Member
Total assets of unconsolidated VIEs as well as maximum exposure to loss
Maximum Exposure to Loss, On-Balance Sheet		32.0
Maximum Exposure to Loss, Off-Balance Sheet		$ 0.0

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DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Notional amounts and fair values of AIG's derivative instruments
Derivative Liabilities, Notional Amount	$ 110,623	$ 103,914
Derivative Liabilities, Fair Value	5,675	7,381
Collateral
Collateral posted to third parties for derivative transactions	3,200	3,300
Collateral obtained from third parties for derivative transactions	1,300	1,300
Global Capital Markets (GCM) derivatives | Super Senior CDS
Notional amounts and fair values of AIG's derivative instruments
Derivative Liabilities, Notional Amount	1,200	2,600
Derivative Liabilities, Fair Value	526	947
Global Capital Markets (GCM) derivatives | Corporate debt/CLOs
Notional amounts and fair values of AIG's derivative instruments
Derivative Liabilities, Notional Amount	0	2,500
Derivative Liabilities, Fair Value	$ 0	$ 7

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LENDING ACTIVITIES (Details - Allowance for Loan Losses) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	$ 271	$ 312
Loans charged off	(5)	(18)
Recoveries of loans previously charged off	4	16
Net charge-offs	(1)	(2)
Provision for loan losses	(12)	(30)
Other	4	1
Activity of discontinued operations	0	0
Allowance, end of period	262	281
Loans modified in a troubled debt restructuring	97	136
Commercial mortgages
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	159	201
Loans charged off	(4)	(5)
Recoveries of loans previously charged off	3	0
Net charge-offs	(1)	(5)
Provision for loan losses	(9)	(8)
Other	2	0
Activity of discontinued operations	0	0
Allowance, end of period	151	188
Allowance related to individually assessed credit losses	30	88
Commercial mortgage loans	570	240
Other Loans
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance, beginning of year	112	111
Loans charged off	(1)	(13)
Recoveries of loans previously charged off	1	16
Net charge-offs	0	3
Provision for loan losses	(3)	(22)
Other	2	1
Activity of discontinued operations	0	0
Allowance, end of period	$ 111	$ 93

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EARNINGS PER SHARE (EPS) (Tables)

6 Months Ended

Jun. 30, 2015

EARNINGS PER SHARE (EPS)

Computation of basic and diluted EPS

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions, except per share data)		2015		2014		2015		2014
Numerator for EPS:
Income from continuing operations	$	1,775	$	3,006	$	4,251	$	4,665
Less: Net loss from continuing operations attributable to noncontrolling interests		(9)		(37)		-		(34)
Income attributable to AIG common shareholders from continuing operations		1,784		3,043		4,251		4,699
Income (loss) from discontinued operations, net of income tax expense		16		30		17		(17)
Net income attributable to AIG common shareholders		1,800		3,073		4,268		4,682
Denominator for EPS:
Weighted average shares outstanding - basic		1,329,157,366		1,442,397,111		1,347,452,833		1,450,776,629
Dilutive shares		36,233,065		22,279,219		28,873,138		17,587,654
Weighted average shares outstanding - diluted*		1,365,390,431		1,464,676,330		1,376,325,971		1,468,364,283
Income per common share attributable to AIG:
Basic:
Income from continuing operations	$	1.34	$	2.11	$	3.16	$	3.24
Income (loss) from discontinued operations	$	0.01	$	0.02	$	0.01	$	(0.01)
Net income attributable to AIG	$	1.35	$	2.13	$	3.17	$	3.23
Diluted:
Income from continuing operations	$	1.31	$	2.08	$	3.09	$	3.20
Income (loss) from discontinued operations	$	0.01	$	0.02	$	0.01	$	(0.01)
Net income attributable to AIG	$	1.32	$	2.10	$	3.10	$	3.19

* Dilutive shares include our share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of shares excluded from diluted shares outstanding was 0.2 million and 0.3 million for the three- and six-month periods ended June 30,2015, respectively, and 0.3 million for both thethree- and six-month periods ended June 30,2014, because the effect of including those shares in the calculation would have been anti-dilutive.

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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	Jun. 30, 2015 USD ($) security	Dec. 31, 2014 USD ($)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	$ 53,105	$ 23,825
Gross Unrealized Losses, Less than 12 Months	1,955	719
Fair Value, 12 Months or More	10,458	22,344
Gross Unrealized Losses, 12 Months or More	946	1,154
Fair Value, Total	63,563	46,169
Gross Unrealized Losses, Total	2,901	1,873
Bonds available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	52,476	23,457
Gross Unrealized Losses, Less than 12 Months	1,902	666
Fair Value, 12 Months or More	10,428	22,278
Gross Unrealized Losses, 12 Months or More	939	1,153
Fair Value, Total	62,904	45,735
Gross Unrealized Losses, Total	$ 2,841	1,819
Number of securities in an unrealized loss position | security	11,470
Number of individual securities in continuous unrealized loss position for longer than twelve months | security	1,728
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	$ 431	526
Gross Unrealized Losses, Less than 12 Months	8	5
Fair Value, 12 Months or More	128	281
Gross Unrealized Losses, 12 Months or More	6	13
Fair Value, Total	559	807
Gross Unrealized Losses, Total	14	18
Bonds available for sale | Obligations of states, municipalities and political subdivisions
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	4,954	495
Gross Unrealized Losses, Less than 12 Months	147	9
Fair Value, 12 Months or More	315	794
Gross Unrealized Losses, 12 Months or More	25	40
Fair Value, Total	5,269	1,289
Gross Unrealized Losses, Total	172	49
Bonds available for sale | Non-U.S. government
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	3,363	1,606
Gross Unrealized Losses, Less than 12 Months	113	42
Fair Value, 12 Months or More	743	1,690
Gross Unrealized Losses, 12 Months or More	90	109
Fair Value, Total	4,106	3,296
Gross Unrealized Losses, Total	203	151
Bonds available for sale | Corporate debt
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	31,074	12,132
Gross Unrealized Losses, Less than 12 Months	1,351	450
Fair Value, 12 Months or More	4,161	11,570
Gross Unrealized Losses, 12 Months or More	533	672
Fair Value, Total	35,235	23,702
Gross Unrealized Losses, Total	1,884	1,122
Bonds available for sale | Residential mortgage backed securities (RMBS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	6,478	4,621
Gross Unrealized Losses, Less than 12 Months	162	109
Fair Value, 12 Months or More	2,878	3,996
Gross Unrealized Losses, 12 Months or More	171	183
Fair Value, Total	9,356	8,617
Gross Unrealized Losses, Total	333	292
Bonds available for sale | Commercial mortgage-backed securities (CMBS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	3,040	220
Gross Unrealized Losses, Less than 12 Months	82	1
Fair Value, 12 Months or More	610	2,087
Gross Unrealized Losses, 12 Months or More	27	58
Fair Value, Total	3,650	2,307
Gross Unrealized Losses, Total	109	59
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	3,136	3,857
Gross Unrealized Losses, Less than 12 Months	39	50
Fair Value, 12 Months or More	1,593	1,860
Gross Unrealized Losses, 12 Months or More	87	78
Fair Value, Total	4,729	5,717
Gross Unrealized Losses, Total	126	128
Equity securities available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	629	368
Gross Unrealized Losses, Less than 12 Months	53	53
Fair Value, 12 Months or More	30	66
Gross Unrealized Losses, 12 Months or More	7	1
Fair Value, Total	659	434
Gross Unrealized Losses, Total	$ 60	54
Number of securities in an unrealized loss position | security	160
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	$ 85	88
Gross Unrealized Losses, Less than 12 Months	12	16
Fair Value, 12 Months or More	1	2
Gross Unrealized Losses, 12 Months or More	0	1
Fair Value, Total	86	90
Gross Unrealized Losses, Total	12	17
Equity securities available for sale | Preferred Stock
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	0	0
Gross Unrealized Losses, Less than 12 Months	0	0
Fair Value, 12 Months or More	0	0
Gross Unrealized Losses, 12 Months or More	0	0
Fair Value, Total	0	0
Gross Unrealized Losses, Total	0	0
Equity securities available for sale | Mutual Funds
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, Less than 12 Months	544	280
Gross Unrealized Losses, Less than 12 Months	41	37
Fair Value, 12 Months or More	29	64
Gross Unrealized Losses, 12 Months or More	7	0
Fair Value, Total	573	344
Gross Unrealized Losses, Total	$ 48	$ 37

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EMPLOYEE BENEFITS

6 Months Ended

Jun. 30, 2015

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

12. EMPLOYEE BENEFITS

The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits:

	Pension						Postretirement
		U.S.		Non-U.S.				U.S.		Non-U.S.
(in millions)		Plans		Plans		Total		Plans		Plans		Total
Three Months Ended June 30, 2015
Components of net periodic benefit cost:
Service cost	$	51	$	10	$	61	$	1	$	1	$	2
Interest cost		55		6		61		2		-		2
Expected return on assets		(72)		(6)		(78)		-		-		-
Amortization of prior service (credit) cost		(8)		-		(8)		(2)		-		(2)
Amortization of net loss		33		2		35		-		-		-
Other		-		(1)		(1)		-		-		-
Net periodic benefit cost	$	59	$	11	$	70	$	1	$	1	$	2
Three Months Ended June 30, 2014
Components of net periodic benefit cost:
Service cost	$	44	$	10	$	54	$	1	$	1	$	2
Interest cost		57		8		65		3		-		3
Expected return on assets		(71)		(5)		(76)		-		-		-
Amortization of prior service (credit) cost		(9)		-		(9)		(3)		-		(3)
Amortization of net loss		11		2		13		-		-		-
Other		-		-		-		-		-		-
Net periodic benefit cost	$	32	$	15	$	47	$	1	$	1	$	2
Six Months Ended June 30, 2015
Components of net periodic benefit cost:
Service cost	$	103	$	21	$	124	$	3	$	2	$	5
Interest cost		110		12		122		4		1		5
Expected return on assets		(144)		(12)		(156)		-		-		-
Amortization of prior service (credit) cost		(16)		(1)		(17)		(5)		-		(5)
Amortization of net loss		65		5		70		-		-		-
Other		-		(1)		(1)		-		-		-
Net periodic benefit cost	$	118	$	24	$	142	$	2	$	3	$	5
Six Months Ended June 30, 2014
Components of net periodic benefit cost:
Service cost	$	88	$	21	$	109	$	2	$	1	$	3
Interest cost		114		15		129		5		1		6
Expected return on assets		(142)		(11)		(153)		-		-		-
Amortization of prior service (credit) cost		(17)		(1)		(18)		(5)		-		(5)
Amortization of net loss		22		4		26		-		-		-
Other		-		-		-		-		-		-
Net periodic benefit cost	$	65	$	28	$	93	$	2	$	2	$	4

For the six-month period ended June 30,2015, we contributed $108 million to our U.S. and non-U.S. pension plans and we estimate that we will contribute an additional $65 million for the remainder of 2015. These estimates are subject to change because contribution decisions are affected by various factors, including our liquidity, market performance and management discretion.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2015

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Standards Adopted During 2015

Accounting Standards Adopted During 2015

Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure

In January 2014, the Financial Accounting Standards Board (FASB) issued an accounting standard that clarifies that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, so that the loan is derecognized and the real estate property is recognized, when either (i) the creditor obtains legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveys all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement.

We adopted the standard on its required effective date of January 1,2015. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows.

Reporting Discontinued Operations

In April 2014, the FASB issued an accounting standard that changes the requirements for presenting a component or group of components of an entity as a discontinued operation and requires new disclosures. Under the standard, the disposal of a component or group of components of an entity should be reported as a discontinued operation if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Disposals of equity method investments, or those reported as held-for-sale, must be presented as a discontinued operation if they meet the new definition. The standard also requires entities to provide disclosures about the disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation.

We adopted the standard on its required effective date of January 1,2015 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows.

Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures

In June 2014, the FASB issued an accounting standard that changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The standard aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements such that they all will be accounted for as secured borrowings. The standard eliminates sale accounting for repurchase-to-maturity transactions and supersedes the standard under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement.

We adopted the standard on its required effective date of January 1,2015 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows.

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 other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other activities.

The standard is effective for interim and annual reporting periods beginning after December 15, 2016 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is not permitted. We plan to adopt the standard on its required effective date of January 1, 2017 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows.

Accounting for Share-Based Payments with Performance Targets

In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.

The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We plan to adopt the standard on its required effective date of January 1, 2016 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows.

Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity

In August 2014, the FASB issued an accounting standard that allows a reporting entity to measure the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity using the fair value of either its financial assets or financial liabilities, whichever is more observable.

The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. We plan to adopt the standard on its required effective date of January 1, 2016 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows.

Consolidation: Amendments to the Consolidation Analysis

In February 2015, the FASB issued an accounting standard that affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.

The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The standard may be applied retrospectively or through a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. We plan to adopt the standard on its required effective date of January 1, 2016 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows.

Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement

In April 2015, the FASB issued an accounting standard that provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change generally accepted accounting principles. Consequently, all software licenses will be accounted for consistent with other licenses of intangible assets.

The standard is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The standard may be adopted prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. We plan to adopt the standard on its required effective date of January 1, 2016 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows.

Short Duration Insurance Contracts

In May 2015, the FASB issued an accounting standard that requires additional disclosures (including accident year information) for short-duration insurance contracts. New disclosures about the liability for unpaid losses and loss adjustment expenses will be required of public business entities for annual periods beginning after December 15, 2015. The annual disclosures by accident year include: disaggregated net incurred and paid claims development tables segregated by business type (not required to exceed 10 years), reconciliation oftotal net reserves included in development tables to the reported liability for unpaid losses and loss adjustment expenses, incurred but not reported (IBNR) information, quantitative information and a qualitative description about claim frequency, and the average annual percentage payout of incurred claims. Further, the new standard requires, when applicable, disclosures about discounting liabilities for unpaid losses and loss adjustment expenses and significant changes and reasons for changes in methodologies and assumptions used to determine unpaid losses and loss adjustment expenses.  In addition, the roll forward of the liability for unpaid losses and loss adjustment expenses currently disclosed in annual financial statements will be required for interim periods beginning in the first quarter of 2017.  Early adoption of the new annual and interim disclosures is permitted.

We plan to adopt the standard on its required effective date.  Becausethe new standard does not affect accounting recognition or measurement, the adoption of the standard will have no effect on our consolidated financial condition, results of operations, or cash flows.  

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FAIR VALUE MEASUREMENTS (Details - financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Assets:
Mortgage and other loans receivable	$ 27,143	$ 24,990
Short-term investments	13,865	11,243
Cash	1,937	1,758	$ 1,827	$ 2,241
Liabilities:
Other liabilities	23,934	24,168
Total Fair Value
Assets:
Mortgage and other loans receivable	28,307	26,606
Other invested assets	3,506	3,475
Short-term investments	11,584	9,559
Cash	1,937	1,758
Liabilities:
Policyholder contract deposits associated with investment-type contracts	117,143	119,512
Other liabilities	899	1,120
Long-term debt	27,267	27,681
Level 1
Assets:
Mortgage and other loans receivable	0	0
Other invested assets	0	0
Short-term investments	0	0
Cash	1,937	1,758
Liabilities:
Policyholder contract deposits associated with investment-type contracts	0	0
Other liabilities	0	0
Long-term debt	0	0
Level 2
Assets:
Mortgage and other loans receivable	376	449
Other invested assets	523	593
Short-term investments	11,584	9,559
Cash	0	0
Liabilities:
Policyholder contract deposits associated with investment-type contracts	268	244
Other liabilities	899	1,120
Long-term debt	23,593	24,749
Level 3
Assets:
Mortgage and other loans receivable	27,931	26,157
Other invested assets	2,983	2,882
Short-term investments	0	0
Cash	0	0
Liabilities:
Policyholder contract deposits associated with investment-type contracts	116,875	119,268
Other liabilities	0	0
Long-term debt	3,674	2,932
Carrying Value
Assets:
Mortgage and other loans receivable	27,137	24,984
Other invested assets	4,338	4,352
Short-term investments	11,584	9,559
Cash	1,937	1,758
Liabilities:
Policyholder contract deposits associated with investment-type contracts	106,864	106,395
Other liabilities	899	1,120
Long-term debt	$ 26,091	$ 25,751

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FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses related to Level 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	$ 815	$ 681	$ 1,690	$ 1,421
Policyholder contract deposits
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	736	(58)	461	(532)
Policyholder contract deposits | Investment Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	0	0	0	0
Policyholder contract deposits | Net realized capital gains (losses)
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	736	(58)	461	(532)
Policyholder contract deposits | Other Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	0	0	0	0
Derivative liabilities, net
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	76	115	242	202
Derivative liabilities, net | Investment Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(19)	16	0	31
Derivative liabilities, net | Net realized capital gains (losses)
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(1)	8	5	5
Derivative liabilities, net | Other Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	96	91	237	166
Long-term debt
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(13)	(5)	2	(8)
Long-term debt | Investment Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	0	0	0	0
Long-term debt | Net realized capital gains (losses)
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	0	0	0	0
Long-term debt | Other Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, liabilities	(13)	(5)	2	(8)
Bonds available for sale
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	414	295	730	576
Bonds available for sale | Investment Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	311	298	622	602
Bonds available for sale | Net realized capital gains (losses)
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	10	(15)	1	(51)
Bonds available for sale | Other Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	93	12	107	25
Other Bond securities
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	318	378	431	758
Other Bond securities | Investment Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	23	49	41	100
Other Bond securities | Net realized capital gains (losses)
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	(3)	1	3	2
Other Bond securities | Other Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	298	328	387	656
Equity securities
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	2	0	2	0
Equity securities | Investment Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	0	0	0	0
Equity securities | Net realized capital gains (losses)
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	2	0	2	0
Equity securities | Other Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	0	0	0	0
Other invested assets
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	81	8	527	87
Other invested assets | Investment Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	18	12	86	89
Other invested assets | Net realized capital gains (losses)
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	(12)	(9)	377	(13)
Other invested assets | Other Income
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains and losses related to Level 3 items, assets	$ 75	$ 5	$ 64	$ 11

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Premiums	$ 9,545	$ 9,485	$ 18,367	$ 18,560
Policy fees	688	640	1,365	1,271
Net investment income	3,826	3,884	7,664	8,080
Net realized capital gains (losses):
Total other-than-temporary impairments on available for sale securities	(148)	(32)	(235)	(82)
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss)	(4)	(16)	(14)	(20)
Net other-than-temporary impairments on available for sale securities recognized in net income	(152)	(48)	(249)	(102)
Other realized capital gains	278	210	1,716	112
Total net realized capital gains	126	162	1,467	10
Aircraft leasing revenue	0	489	0	1,602
Other income	1,514	1,476	2,811	2,776
Total revenues	15,699	16,136	31,674	32,299
Benefits, claims and expenses:
Policyholder benefits and losses incurred	7,100	6,771	13,651	13,568
Interest credited to policyholder account balances	942	963	1,877	1,918
Amortization of deferred policy acquisition costs	1,356	1,396	2,706	2,701
General operating and other expenses	3,090	3,714	6,039	6,738
Interest expense	316	463	656	942
Aircraft leasing expenses	0	489	0	1,585
Loss on extinguishment of debt	342	34	410	272
Net (gain) loss on sale of divested businesses	1	(2,174)	7	(2,178)
Total benefits, claims and expenses	13,147	11,656	25,346	25,546
Income from continuing operations before income tax expense	2,552	4,480	6,328	6,753
Income tax expense	777	1,474	2,077	2,088
Income from continuing operations	1,775	3,006	4,251	4,665
Income (loss) from discontinued operations, net of income tax expense	16	30	17	(17)
Net income	1,791	3,036	4,268	4,648
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests	(9)	(37)	0	(34)
Net income attributable to AIG	$ 1,800	$ 3,073	$ 4,268	$ 4,682
Basic:
Income from continuing operations	$ 1.34	$ 2.11	$ 3.16	$ 3.24
Income (loss) from discontinued operations	0.01	0.02	0.01	(0.01)
Net income attributable to AIG	1.35	2.13	3.17	3.23
Diluted:
Income from continuing operations	1.31	2.08	3.09	3.2
Income (loss) from discontinued operations	0.01	0.02	0.01	(0.01)
Net income attributable to AIG	$ 1.32	$ 2.1	$ 3.1	$ 3.19
Weighted average shares outstanding:
Basic (in shares)	1,329,157,366	1,442,397,111	1,347,452,833	1,450,776,629
Diluted (in shares)	1,365,390,431	1,464,676,330	1,376,325,971	1,468,364,283
Dividend declared per common share (in dollars per share)	$ 0.125	$ 0.125	$ 0.25	$ 0.25

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2015

BASIS OF PRESENTATION

BASIS OF PRESENTATION

1. BASIS OF PRESENTATION

American International Group, Inc. (AIG) is a leading global insurance organization serving customers in more than 100 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock, par value $2.50 per share (AIG Common Stock), is listed on the New York Stock Exchange (NYSE: AIG) and the Tokyo Stock Exchange. Unless the context indicates otherwise, the terms “AIG,” “we,” “us” or “our” mean American International Group, Inc. and its consolidated subsidiaries and the term “AIG Parent” means American International Group, Inc. and not any of its consolidated subsidiaries.

These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31,2014 (2014 Annual Report). The condensed consolidated financial information as of December 31,2014 included herein has been derived from audited Consolidated Financial Statements in the 2014 Annual Report.

Certain of our foreign subsidiaries included in the Condensed Consolidated Financial Statements report on different fiscal-period bases. The effect on our condensed consolidated financial condition and results of operations of all material events occurring at these subsidiaries through the date of each of the periods presented in these Condensed Consolidated Financial Statements has been recorded. In the opinion of management, these Condensed Consolidated Financial statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein.

Interim period operating results may not be indicative of the operating results for a full year. We evaluated the need to recognize or disclose events that occurred subsequent to June 30,2015 and prior to the issuance of these Condensed Consolidated Financial Statements.

Sale of ILFC and shares of AerCap

On May 14, 2014, we completed the sale of 100 percent of the common stock of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. (AerCap), in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares (the AerCap Transaction). The total value of the consideration was based in part on AerCap’s closing price per share of $47.01 on May 13, 2014. ILFC’s results of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Condensed Consolidated Statements of Income through the date of the completion of the sale.

In June 2015, we sold 86.9million ordinary shares of AerCap by means of an underwritten public offering of 71.2million ordinary shares and a private sale of 15.7million ordinary shares to AerCap. We received cash proceeds of approximately $3.7 billion, reflecting proceeds of approximately $3.4 billion from the underwritten offering and cash proceeds of $250 million from the private sale of shares to AerCap. In connection with the closing of the private sale of shares to AerCap, we also received $500 million of 6.50% fixed-to-floating rate junior subordinated notes issued by AerCap Global Aviation Trust and guaranteed by AerCap and certain of its subsidiaries. These notes, included in Bonds available for sale, mature in 2045 and are callable beginning in 2025. Our remaining 10.7 million ordinary shares of AerCap are included in Common and preferred stock available for sale. We accounted for our interest in AerCap using the equity method of accounting through the date of sale.

Use of Estimates

The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of:

• income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset;
• liability for unpaid losses and loss adjustment expenses;
• reinsurance assets;
• valuation of future policy benefit liabilities and timing and extent of loss recognition;
• valuation of liabilities for guaranteed benefit features of variable annuity products;
• estimated gross profits to value deferred acquisition costs for investment-oriented products;
• impairment charges, including other-than-temporary impairments on available for sale securities, impairments on investments in life settlements and goodwill impairment;
• liability for legal contingencies; and
• fair value measurements of certain financial assets and liabilities.

These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.

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INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) - Fixed maturity securities - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Other Than Temporary Impairment Credit Losses Recognized in Earnings
Balance, beginning of year	$ 2,466	$ 3,389	$ 2,659	$ 3,872
Increases due to:
Credit impairments on new securities subject to impairment losses	35	14	50	22
Additional credit impairments on previously impaired securities	25	18	47	54
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell	(108)	(82)	(150)	(412)
Accretion on securities previously impaired due to credit	(180)	(173)	(368)	(361)
Other	0	0	0	(9)
Balance, end of year	$ 2,238	$ 3,166	$ 2,238	$ 3,166

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INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CONDENSED FINANCIAL STATEMENTS
Net cash provided by (used in) operating activities	$ 493	$ 1,641
Cash flows from investing activities:
Sales of investments	39,006	32,314
Purchase of investments	(30,983)	(28,157)
Loans to subsidiaries - net	0	0
Contributions to subsidiaries - net	0	0
Net change in restricted cash	1,462	(628)
Net change in short-term investments	(2,693)	498
Other, net	(1,506)	(365)
Net cash provided by investing activities	5,286	3,662
Cash flows from financing activities:
Issuance of long-term debt	2,774	3,028
Repayments of long-term debt	(3,701)	(6,027)
Purchase of Common Stock	(3,743)	(1,849)
Intercompany loans - net		0
Cash dividends paid to shareholders	(335)	(361)
Other, net	(561)	(593)
Net cash used in financing activities	(5,566)	(5,802)
Effect of exchange rate changes on cash	(34)	(3)
Change in cash	179	(502)
Cash at beginning of year	1,758	2,241
Reclassification to assets held for sale	0	88
Cash at end of period	1,937	1,827
Interest:
Third party	(760)	(1,727)
Taxes:
Income tax authorities	(338)	(482)
Non-cash financing and investing activities:
Non-cash consideration received from sale of AerCap	500
AIG (As Guarantor)
CONDENSED FINANCIAL STATEMENTS
Net cash provided by (used in) operating activities	2,230	5,324
Cash flows from investing activities:
Sales of investments	4,703	1,714
Purchase of investments	(942)	(624)
Loans to subsidiaries - net	189	(530)
Contributions to subsidiaries - net	0	111
Net change in restricted cash	0	(20)
Net change in short-term investments	(2,093)	65
Other, net	(65)	(27)
Net cash provided by investing activities	1,792	689
Cash flows from financing activities:
Issuance of long-term debt	2,342	0
Repayments of long-term debt	(2,016)	(3,314)
Purchase of Common Stock	(3,743)	(1,849)
Intercompany loans - net	(130)	(52)
Cash dividends paid to shareholders	(335)	(361)
Other, net	(75)	(307)
Net cash used in financing activities	(3,957)	(5,883)
Effect of exchange rate changes on cash	0	0
Change in cash	65	130
Cash at beginning of year	26	30
Reclassification to assets held for sale	0
Cash at end of period	91	160
Interest:
Third party	585	(946)
Intercompany	0	(1)
Taxes:
Income tax authorities	(6)	(17)
Intercompany	1,249	953
Non-cash financing and investing activities:
Return of capital and dividend received in the form of securities	1,551	1,538
Capital contributions	111	993
Return of capital		4,836
Non-cash consideration received from sale of AerCap	500
AIGLH
CONDENSED FINANCIAL STATEMENTS
Net cash provided by (used in) operating activities	527	2,586
Cash flows from investing activities:
Sales of investments	0	0
Purchase of investments	0	0
Loans to subsidiaries - net	0	0
Contributions to subsidiaries - net	0	0
Net change in restricted cash	0	0
Net change in short-term investments	0	0
Other, net	0	0
Net cash provided by investing activities	0	0
Cash flows from financing activities:
Issuance of long-term debt	0	0
Repayments of long-term debt	(114)	0
Purchase of Common Stock	0	0
Intercompany loans - net	0	(175)
Cash dividends paid to shareholders	(500)	(2,460)
Other, net	0	0
Net cash used in financing activities	(614)	(2,635)
Effect of exchange rate changes on cash	0	0
Change in cash	(87)	(49)
Cash at beginning of year	91	51
Reclassification to assets held for sale	0
Cash at end of period	4	2
Interest:
Third party	(32)	(51)
Intercompany	0	(4)
Taxes:
Income tax authorities	0	0
Intercompany	0	0
Other Subsidiaries
CONDENSED FINANCIAL STATEMENTS
Net cash provided by (used in) operating activities	2,581	(466)
Cash flows from investing activities:
Sales of investments	36,970	30,677
Purchase of investments	(32,708)	(27,610)
Loans to subsidiaries - net	130	227
Contributions to subsidiaries - net	0	0
Net change in restricted cash	1,462	(608)
Net change in short-term investments	(600)	433
Other, net	(1,441)	(338)
Net cash provided by investing activities	3,813	2,781
Cash flows from financing activities:
Issuance of long-term debt	432	3,028
Repayments of long-term debt	(1,571)	(2,713)
Purchase of Common Stock	0	0
Intercompany loans - net	(189)	530
Cash dividends paid to shareholders	(4,345)	(3,343)
Other, net	(486)	(397)
Net cash used in financing activities	(6,159)	(2,895)
Effect of exchange rate changes on cash	(34)	(3)
Change in cash	201	(583)
Cash at beginning of year	1,641	2,160
Reclassification to assets held for sale		88
Cash at end of period	1,842	1,665
Interest:
Third party	(1,313)	(730)
Intercompany	0	5
Taxes:
Income tax authorities	(332)	(465)
Intercompany	(1,249)	(953)
AIG Capital Corporation
Non-cash financing and investing activities:
Return of capital		4,800
Reclassifications and Eliminations
CONDENSED FINANCIAL STATEMENTS
Net cash provided by (used in) operating activities	(4,845)	(5,803)
Cash flows from investing activities:
Sales of investments	(2,667)	(77)
Purchase of investments	2,667	77
Loans to subsidiaries - net	(319)	303
Contributions to subsidiaries - net	0	(111)
Net cash provided by investing activities	(319)	192
Cash flows from financing activities:
Intercompany loans - net	319	(303)
Cash dividends paid to shareholders	(4,845)	(5,803)
Other, net	0	(111)
Net cash used in financing activities	$ 5,164	$ 5,611

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CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Loss Contingencies)													6 Months Ended	39 Months Ended
	Jun. 23, 2015 USD ($)	Jun. 15, 2015 USD ($)	Mar. 27, 2015 item	Jan. 06, 2015 USD ($)	Oct. 22, 2014 USD ($)	Jul. 15, 2014 USD ($)	Nov. 15, 2013 item	Mar. 11, 2013 class	Nov. 29, 2012 USD ($) item	Nov. 21, 2011	Dec. 17, 2010 USD ($)	Feb. 25, 2010 individual	Jun. 30, 2015 USD ($) item complaint multiple	Feb. 09, 2015 item	Mar. 20, 2009 complaint	Nov. 25, 2008 complaint
Chartis U.S.
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Settlement agreement, number of jurisdictions | item									50
Civil penalty paid									$ 50,000,000
UGC
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Civil penalty paid	$ 126,000
AIG | Regulatory fines and penalties
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Litigation Settlement, Amount											$ 100,000,000
AIG | Outstanding premium taxes and assessments
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Litigation Settlement, Amount											46,500,000
AIG | Contingent fines
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Litigation Settlement, Amount											$ 150,000,000
Consolidated 2008 Securities Litigation
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of purported class action complaints | complaint															8
Number of similar actions | item			1											11
Payments for Legal Settlements					$ 960,000,000
Litigation Settlement, Amount						$ 960,000,000
Number of Claims Dismissed | item													3
ERISA Litigation II
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of purported class action complaints | complaint																8
ERISA Litigation II | AIGs fiduciary liability insurance carriers
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Litigation Settlement, Amount				$ 40,000,000
ERISA Litigation II | AIG
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Settlement amount awarded				$ 40,000,000
Canadian Securities Class Action claim
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Damages claimed													$ 500,000,000
Punitive damages claimed													$ 50,000,000
Starr International Litigation
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Damages claimed		$ 40,000,000,000
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 out of the class | item							286,908
Number of purported classes | class								2
False Claims Act complaint
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of individuals (Relators) seeking to assert claims | individual												2
Damages sought, multiple of damages sustained | multiple													3
Caremark
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Number of purported class action complaints | complaint													2
Damages claimed													$ 3,200,000,000

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2015

SEGMENT INFORMATION

Schedule of operations by reportable segment

	2015				2014
				Pre-Tax				Pre-Tax
Three Months Ended June 30,		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
Commercial Insurance
Property Casualty	$	6,233	$	1,192	$	6,331	$	1,245
Mortgage Guaranty		261		157		259		210
Institutional Markets		1,172		151		707		170
Total Commercial Insurance		7,666		1,500		7,297		1,625
Consumer Insurance
Retirement		2,465		804		2,410		764
Life		1,632		149		1,560		215
Personal Insurance		2,869		70		3,129		140
Total Consumer Insurance		6,966		1,023		7,099		1,119
Corporate and Other*		1,119		372		1,114		(57)
AIG consolidation and elimination		(116)		(27)		(91)		6
Total AIG consolidated revenues and pre-tax operating income		15,635		2,868		15,419		2,693
Reconciling items from revenues and pre-tax operating income to revenues and pre-tax income:
Changes in fair values of fixed maturity securities designated to
hedge living benefit liabilities, net of interest expense		(87)		(87)		54		54
Changes in benefit reserves and DAC, VOBA and SIA related to						-		-
net realized capital gains		-		(28)		-		(52)
Loss on extinguishment of debt		-		(342)		-		(34)
Net realized capital gains		126		126		162		162
Net gain (loss) on sale of divested businesses		(33)		(34)		489		2,151
Legal settlements related to legacy crisis matters		76		76		12		12
Legal reserves related to legacy crisis matters		-		(27)		-		(506)
Other		(18)		-		-		-
Revenues and pre-tax income	$	15,699	$	2,552	$	16,136	$	4,480
	2015				2014
				Pre-Tax				Pre-Tax
Six Months Ended June 30,		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
Commercial Insurance
Property Casualty	$	12,189	$	2,362	$	12,443	$	2,361
Mortgage Guaranty		525		302		507		286
Institutional Markets		1,796		298		1,402		399
Total Commercial Insurance		14,510		2,962		14,352		3,046
Consumer Insurance
Retirement		4,853		1,604		4,895		1,679
Life		3,245		320		3,170		450
Personal Insurance		5,731		44		6,193		158
Total Consumer Insurance		13,829		1,968		14,258		2,287
Corporate and Other*		2,161		534		2,097		(110)
AIG consolidation and elimination		(275)		(69)		(188)		26
Total AIG consolidated revenues and pre-tax operating income		30,225		5,395		30,519		5,249

Reconciling items from revenues and pre-tax operating income to revenues and pre-tax income:
Changes in fair values of fixed maturity securities designated to
hedge living benefit liabilities, net of interest expense		(43)		(43)		130		130
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		(82)		-		(45)
Loss on extinguishment of debt		-		(410)		-		(272)
Net realized capital gains		1,467		1,467		10		10
Net gain (loss) on sale of divested businesses		(48)		(55)		1,602		2,172
Legal settlements related to legacy crisis matters		91		91		38		38
Legal reserves related to legacy crisis matters		-		(35)		-		(529)
Other		(18)		-		-		-
Revenues and pre-tax income	$	31,674	$	6,328	$	32,299	$	6,753

* Corporate and Other includes income from assets held by AIG Parent and other corporate subsidiaries.

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EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Taken
Unrealized change arising during period	$ 35	$ 21	$ (57)	$ 110
Less: Reclassification adjustments included in net income	46	10	55	18
Total other comprehensive income (loss), before income tax expense (benefit)	(11)	11	(112)	92
Less: Income tax expense (benefit)	25	(15)	(4)	(23)
Total other comprehensive income (loss), net of income tax expense (benefit)	(36)	26	(108)	115
Unrealized Appreciation (Depreciation) of All Other Investments
Unrealized change arising during period	(4,475)	2,909	(2,968)	6,097
Less: Reclassification adjustments included in net income	99	165	576	394
Total other comprehensive income (loss), before income tax expense (benefit)	(4,574)	2,744	(3,544)	5,703
Less: Income tax expense (benefit)	(1,583)	389	(1,092)	563
Total other comprehensive income (loss), net of income tax expense (benefit)	(2,991)	2,355	(2,452)	5,140
Foreign Currency Translation Adjustments
Unrealized change arising during period	(52)	73	(684)	(29)
Total other comprehensive income (loss), before income tax expense (benefit)	(52)	73	(684)	(29)
Less: Income tax expense (benefit)	(15)	26	(188)	82
Total other comprehensive income (loss), net of income tax expense (benefit)	(37)	47	(496)	(111)
Change in Retirement Plan Liabilities Adjustment
Unrealized change arising during period	14	10	21	11
Less: Reclassification adjustments included in net income	(23)	(1)	(47)	(2)
Total other comprehensive income (loss), before income tax expense (benefit)	37	11	68	13
Less: Income tax expense (benefit)	10	13	12	6
Total other comprehensive income (loss), net of income tax expense (benefit)	27	(2)	56	7
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	(4,478)	3,013	(3,688)	6,189
Less: Reclassification adjustments included in net income	122	174	584	410
Total other comprehensive income (loss), before income tax expense (benefit)	(4,600)	2,839	(4,272)	5,779
Less: Income tax expense (benefit)	(1,563)	413	(1,272)	628
Other comprehensive income (loss)	$ (3,037)	$ 2,426	$ (3,000)	$ 5,151

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Label	Element	Value
Net (gain) loss on sale of properties and divested businesses	us-gaap_DisposalGroupNotDiscontinuedOperationGainLossOnDisposal	$ (1)
Net (gain) loss on sale of properties and divested businesses	us-gaap_DisposalGroupNotDiscontinuedOperationGainLossOnDisposal	$ 2,174

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SEGMENT INFORMATION (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) segment	Jun. 30, 2014 USD ($)
Segment results
Number of reportable segments | segment			2
Total revenues	$ 15,699	$ 16,136	$ 31,674	$ 32,299
Pre-tax Income (loss) from continuing operations	2,552	4,480	6,328	6,753
Changes in fair values of fixed maturity securities designated to hedge living benefit liabilities, net of interest expense
Segment results
Total revenues	(87)	54	(43)	130
Pre-tax Income (loss) from continuing operations	(87)	54	(43)	130
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains
Segment results
Total revenues	0	0	0	0
Pre-tax Income (loss) from continuing operations	(28)	(52)	(82)	(45)
Loss on extinguishment of debt
Segment results
Total revenues	0	0	0	0
Pre-tax Income (loss) from continuing operations	(342)	(34)	(410)	(272)
Net realized capital gains (losses)
Segment results
Total revenues	126	162	1,467	10
Pre-tax Income (loss) from continuing operations	126	162	1,467	10
Income from divested businesses
Segment results
Total revenues	(33)	489	(48)	1,602
Pre-tax Income (loss) from continuing operations	(34)	2,151	(55)	2,172
Legal settlements related to legacy crisis matters
Segment results
Total revenues	76	12	91	38
Pre-tax Income (loss) from continuing operations	76	12	91	38
Legal reserves related to legacy crisis matters
Segment results
Total revenues	0	0	0	0
Pre-tax Income (loss) from continuing operations	(27)	(506)	(35)	(529)
Total AIG Consolidated revenues and pre-tax operating income
Segment results
Total revenues	15,635	15,419	30,225	30,519
Pre-tax Income (loss) from continuing operations	2,868	2,693	5,395	5,249
Other
Segment results
Total revenues	(18)		(18)
Reportable Segments | Commercial Insurance
Segment results
Total revenues	7,666	7,297	14,510	14,352
Pre-tax Income (loss) from continuing operations	1,500	1,625	2,962	3,046
Reportable Segments | Commercial Insurance | Operating Segments | Property Casualty
Segment results
Total revenues	6,233	6,331	12,189	12,443
Pre-tax Income (loss) from continuing operations	1,192	1,245	2,362	2,361
Reportable Segments | Commercial Insurance | Operating Segments | Mortgage Guaranty
Segment results
Total revenues	261	259	525	507
Pre-tax Income (loss) from continuing operations	157	210	302	286
Reportable Segments | Commercial Insurance | Operating Segments | Institutional Markets
Segment results
Total revenues	1,172	707	1,796	1,402
Pre-tax Income (loss) from continuing operations	151	170	298	399
Reportable Segments | Consumer Insurance
Segment results
Total revenues	6,966	7,099	13,829	14,258
Pre-tax Income (loss) from continuing operations	1,023	1,119	1,968	2,287
Reportable Segments | Consumer Insurance | Operating Segments | Retirement
Segment results
Total revenues	2,465	2,410	4,853	4,895
Pre-tax Income (loss) from continuing operations	804	764	1,604	1,679
Reportable Segments | Consumer Insurance | Operating Segments | Life
Segment results
Total revenues	1,632	1,560	3,245	3,170
Pre-tax Income (loss) from continuing operations	149	215	320	450
Reportable Segments | Consumer Insurance | Operating Segments | Personal Insurance
Segment results
Total revenues	2,869	3,129	5,731	6,193
Pre-tax Income (loss) from continuing operations	70	140	44	158
Consolidation and Eliminations
Segment results
Total revenues	(116)	(91)	(275)	(188)
Pre-tax Income (loss) from continuing operations	(27)	6	(69)	26
Corporate and Other
Segment results
Total revenues	1,119	1,114	2,161	2,097
Pre-tax Income (loss) from continuing operations	$ 372	$ (57)	$ 534	$ (110)

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EARNINGS PER SHARE (EPS)

6 Months Ended

Jun. 30, 2015

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

11. EARNINGS PER SHARE (EPS)

The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding, and adjusted to reflect all stock dividends and stock splits.

The following table presents the computation of basic and diluted EPS:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in millions, except per share data)		2015		2014		2015		2014
Numerator for EPS:
Income from continuing operations	$	1,775	$	3,006	$	4,251	$	4,665
Less: Net loss from continuing operations attributable to noncontrolling interests		(9)		(37)		-		(34)
Income attributable to AIG common shareholders from continuing operations		1,784		3,043		4,251		4,699
Income (loss) from discontinued operations, net of income tax expense		16		30		17		(17)
Net income attributable to AIG common shareholders		1,800		3,073		4,268		4,682
Denominator for EPS:
Weighted average shares outstanding - basic		1,329,157,366		1,442,397,111		1,347,452,833		1,450,776,629
Dilutive shares		36,233,065		22,279,219		28,873,138		17,587,654
Weighted average shares outstanding - diluted*		1,365,390,431		1,464,676,330		1,376,325,971		1,468,364,283
Income per common share attributable to AIG:
Basic:
Income from continuing operations	$	1.34	$	2.11	$	3.16	$	3.24
Income (loss) from discontinued operations	$	0.01	$	0.02	$	0.01	$	(0.01)
Net income attributable to AIG	$	1.35	$	2.13	$	3.17	$	3.23
Diluted:
Income from continuing operations	$	1.31	$	2.08	$	3.09	$	3.20
Income (loss) from discontinued operations	$	0.01	$	0.02	$	0.01	$	(0.01)
Net income attributable to AIG	$	1.32	$	2.10	$	3.10	$	3.19

* Dilutive shares include our share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of shares excluded from diluted shares outstanding was 0.2 million and 0.3 million for the three- and six-month periods ended June 30,2015, respectively, and 0.3 million for both thethree- and six-month periods ended June 30,2014, because the effect of including those shares in the calculation would have been anti-dilutive.