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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Assets and liabilities measured at fair value on a recurring basis

June 30, 2016							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(b)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	19	$	2,248	$	-	$	-	$	-	$	2,267
Obligations of states, municipalities and political subdivisions		-		26,464		2,313		-		-		28,777
Non-U.S. governments		654		19,410		28		-		-		20,092
Corporate debt		-		141,325		836		-		-		142,161
RMBS		-		20,665		16,779		-		-		37,444
CMBS		-		12,679		2,295		-		-		14,974
CDO/ABS		-		9,299		7,075		-		-		16,374
Total bonds available for sale		673		232,090		29,326		-		-		262,089
Other bond securities:
U.S. government and government sponsored entities		136		3,459		-		-		-		3,595
Obligations of states, municipalities and political subdivisions		-		-		-		-		-		-
Non-U.S. governments		-		55		-		-		-		55
Corporate debt		-		1,949		18		-		-		1,967
RMBS		-		439		1,486		-		-		1,925
CMBS		-		498		168		-		-		666
CDO/ABS		-		815		6,312		-		-		7,127
Total other bond securities		136		7,215		7,984		-		-		15,335
Equity securities available for sale:
Common stock		1,117		-		-		-		-		1,117
Preferred stock		23		-		-		-		-		23
Mutual funds		501		1		-		-		-		502
Total equity securities available for sale		1,641		1		-		-		-		1,642
Other equity securities		647		-		14		-		-		661
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		-		2		241		-		-		243

Derivative assets:
Interest rate contracts		-		5,014		15		-		-		5,029
Foreign exchange contracts		-		1,495		1		-		-		1,496
Equity contracts		104		123		52		-		-		279
Credit contracts		-		-		3		-		-		3
Other contracts		-		-		23		-		-		23
Counterparty netting and cash collateral		-		-		-		(2,192)		(3,233)		(5,425)
Total derivative assets		104		6,632		94		(2,192)		(3,233)		1,405
Short-term investments		2,453		1,496		-		-		-		3,949
Separate account assets		74,755		5,817		-		-		-		80,572
Total	$	80,409	$	253,253	$	37,670	$	(2,192)	$	(3,233)	$	365,907
Liabilities:
Policyholder contract deposits	$	-	$	26	$	3,990	$	-	$	-	$	4,016
Other policyholder funds		5		-		-		-		-		5
Derivative liabilities:
Interest rate contracts		-		2,965		61		-		-		3,026
Foreign exchange contracts		-		1,441		10		-		-		1,451
Equity contracts		-		5		-		-		-		5
Credit contracts		-		-		376		-		-		376
Other contracts		-		-		125		-		-		125
Counterparty netting and cash collateral		-		-		-		(2,192)		(738)		(2,930)
Total derivative liabilities		-		4,411		572		(2,192)		(738)		2,053
Long-term debt		-		3,680		67		-		-		3,747
Other liabilities		114		127		-		-		-		241
Total	$	119	$	8,244	$	4,629	$	(2,192)	$	(738)	$	10,062

December 31, 2015							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting^(b)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	-	$	1,844	$	-	$	-	$	-	$	1,844
Obligations of states, municipalities and political subdivisions		-		25,199		2,124		-		-		27,323
Non-U.S. governments		683		17,480		32		-		-		18,195
Corporate debt		-		134,618		1,370		-		-		135,988
RMBS		-		19,690		16,537		-		-		36,227
CMBS		-		10,986		2,585		-		-		13,571
CDO/ABS		-		8,928		6,169		-		-		15,097
Total bonds available for sale		683		218,745		28,817		-		-		248,245
Other bond securities:
U.S. government and government sponsored entities		-		3,369		-		-		-		3,369
Obligations of states, municipalities and political subdivisions		-		75		-		-		-		75
Non-U.S. governments		-		50		-		-		-		50
Corporate debt		-		2,018		17		-		-		2,035
RMBS		-		649		1,581		-		-		2,230
CMBS		-		557		193		-		-		750
CDO/ABS		-		1,218		7,055		-		-		8,273
Total other bond securities		-		7,936		8,846		-		-		16,782

Equity securities available for sale:
Common stock		2,401		-		-		-		-		2,401
Preferred stock		22		-		-		-		-		22
Mutual funds		491		1		-		-		-		492
Total equity securities available for sale		2,914		1		-		-		-		2,915
Other equity securities		906		1		14		-		-		921
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets^(a)		2		1		332		-		-		335
Derivative assets:
Interest rate contracts		-		3,150		12		-		-		3,162
Foreign exchange contracts		-		766		-		-		-		766
Equity contracts		91		32		54		-		-		177
Credit contracts		-		-		3		-		-		3
Other contracts		-		2		21		-		-		23
Counterparty netting and cash collateral		-		-		-		(1,268)		(1,554)		(2,822)
Total derivative assets		91		3,950		90		(1,268)		(1,554)		1,309
Short-term investments		1,416		1,175		-		-		-		2,591
Separate account assets		73,699		5,875		-		-		-		79,574
Total	$	79,711	$	237,684	$	38,110	$	(1,268)	$	(1,554)	$	352,683
Liabilities:
Policyholder contract deposits	$	-	$	36	$	2,289	$	-	$	-	$	2,325
Other policyholder funds		6		-		-		-		-		6
Derivative liabilities:
Interest rate contracts		-		2,137		62		-		-		2,199
Foreign exchange contracts		-		1,197		7		-		-		1,204
Equity contracts		-		68		-		-		-		68
Credit contracts		-		-		508		-		-		508
Other contracts		-		-		69		-		-		69
Counterparty netting and cash collateral		-		-		-		(1,268)		(760)		(2,028)
Total derivative liabilities		-		3,402		646		(1,268)		(760)		2,020
Long-term debt		-		3,487		183		-		-		3,670
Other liabilities		-		62		-		-		-		62
Total	$	6	$	6,987	$	3,118	$	(1,268)	$	(760)	$	8,083

(a) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $7.0 billion and $8.6 billion as of June 30, 2016 and December 31, 2015, respectively.

(b) Represents netting of derivative exposures covered by qualifying master netting agreements.

Changes in Level 3 recurring fair value measurements (Assets)

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(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, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,196	$	2	$	136	$	(21)	$	-	$	-	$	2,313	$	-
Non-U.S. governments		30		-		-		2		-		(4)		28		-
Corporate debt		1,024		2		7		(65)		193		(325)		836		-
RMBS		16,162		234		61		61		261		-		16,779		-
CMBS		2,368		16		10		(87)		-		(12)		2,295		-
CDO/ABS		6,592		8		93		382		-		-		7,075		-
Total bonds available for sale		28,372		262		307		272		454		(341)		29,326		-
Other bond securities:
Corporate debt		18		1		-		(1)		-		-		18		1
RMBS		1,513		14		-		(41)		-		-		1,486		(19)
CMBS		170		-		-		(2)		-		-		168		9
CDO/ABS		6,576		109		-		(308)		-		(65)		6,312		(60)
Total other bond securities		8,277		124		-		(352)		-		(65)		7,984		(69)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		15		(1)		-		-		-		-		14		-
Mortgage and other loans receivable		11		-		-		-		-		-		11		-
Other invested assets		263		(12)		6		(16)		-		-		241		-
Total	$	36,938	$	373	$	313	$	(96)	$	454	$	(406)	$	37,576	$	(69)

				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
Liabilities:
Policyholder contract deposits	$	3,251	$	598	$	-	$	141	$	-	$	-	$	3,990	$	16
Derivative liabilities, net:
Interest rate contracts		48		3		-		(5)		-		-		46		-
Foreign exchange contracts		9		1		-		(1)		-		-		9		(1)
Equity contracts		(51)		(4)		-		3		-		-		(52)		3
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		490		(28)		-		(89)		-		-		373		18
Other contracts		121		(24)		-		5		-		-		102		23
Total derivative liabilities, net^(a)		617		(52)		-		(87)		-		-		478		43
Long-term debt^(b)		184		(2)		-		(2)		-		(113)		67		-
Total	$	4,052	$	544	$	-	$	52	$	-	$	(113)	$	4,535	$	59
				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, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,124	$	2	$	194	$	(7)	$	-	$	-	$	2,313	$	-
Non-U.S. governments		32		-		(2)		2		-		(4)		28		-
Corporate debt		1,370		3		(17)		(36)		314		(798)		836		-
RMBS		16,537		479		(359)		(172)		294		-		16,779		-
CMBS		2,585		58		(78)		(168)		-		(102)		2,295		-
CDO/ABS		6,169		20		43		820		23		-		7,075		-
Total bonds available for sale		28,817		562		(219)		439		631		(904)		29,326		-
Other bond securities:
Corporate debt		17		2		-		(1)		-		-		18		3
RMBS		1,581		(23)		-		(54)		-		(18)		1,486		(61)
CMBS		193		(2)		-		(23)		-		-		168		7
CDO/ABS		7,055		(24)		-		(719)		65		(65)		6,312		(364)
Total other bond securities		8,846		(47)		-		(797)		65		(83)		7,984		(415)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		-		-		-		14		1
Mortgage and other loans receivable		11		-		-		-		-		-		11		-
Other invested assets		332		(1)		1		(37)		-		(54)		241		-
Total	$	38,020	$	514	$	(218)	$	(395)	$	696	$	(1,041)	$	37,576	$	(414)

				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
Liabilities:
Policyholder contract deposits	$	2,289	$	1,443	$	-	$	258	$	-	$	-	$	3,990	$	37
Derivative liabilities, net:
Interest rate contracts		50		7		-		(11)		-		-		46		(5)
Foreign exchange contracts		7		2		-		-		-		-		9		(1)
Equity contracts		(54)		-		-		2		-		-		(52)		-
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		505		(34)		-		(98)		-		-		373		28
Other contracts		48		30		-		24		-		-		102		(31)
Total derivative liabilities, net^(a)		556		5		-		(83)		-		-		478		(9)
Long-term debt^(b)		183		-		-		(3)		-		(113)		67		3
Total	$	3,028	$	1,448	$	-	$	172	$	-	$	(113)	$	4,535	$	31

				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		422		62		4		(51)		-		-		437		-
Total	$	40,483	$	796	$	(506)	$	(1,468)	$	427	$	(89)	$	39,643	$	125

				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
		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
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)
Credit contracts		791		(13)		-		(227)		-		-		551		22
Other contracts		59		(59)		2		14		-		-		16		33
Total derivatives 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		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^(c)	$	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		1,042		472		(488)		(589)		-		-		437		-
Total	$	39,655	$	1,635	$	(969)	$	(1,346)	$	1,119	$	(451)	$	39,643	$	59

				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
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
Credit contracts		978		(160)		-		(267)		-		-		551		50
Other contracts		59		(73)		-		30		-		-		16		48
Total derivatives 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

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

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

Changes in Level 3 recurring fair value measurements (Liabilities)

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issues and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
Three Months Ended June 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,196	$	2	$	136	$	(21)	$	-	$	-	$	2,313	$	-
Non-U.S. governments		30		-		-		2		-		(4)		28		-
Corporate debt		1,024		2		7		(65)		193		(325)		836		-
RMBS		16,162		234		61		61		261		-		16,779		-
CMBS		2,368		16		10		(87)		-		(12)		2,295		-
CDO/ABS		6,592		8		93		382		-		-		7,075		-
Total bonds available for sale		28,372		262		307		272		454		(341)		29,326		-
Other bond securities:
Corporate debt		18		1		-		(1)		-		-		18		1
RMBS		1,513		14		-		(41)		-		-		1,486		(19)
CMBS		170		-		-		(2)		-		-		168		9
CDO/ABS		6,576		109		-		(308)		-		(65)		6,312		(60)
Total other bond securities		8,277		124		-		(352)		-		(65)		7,984		(69)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		15		(1)		-		-		-		-		14		-
Mortgage and other loans receivable		11		-		-		-		-		-		11		-
Other invested assets		263		(12)		6		(16)		-		-		241		-
Total	$	36,938	$	373	$	313	$	(96)	$	454	$	(406)	$	37,576	$	(69)

				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
Liabilities:
Policyholder contract deposits	$	3,251	$	598	$	-	$	141	$	-	$	-	$	3,990	$	16
Derivative liabilities, net:
Interest rate contracts		48		3		-		(5)		-		-		46		-
Foreign exchange contracts		9		1		-		(1)		-		-		9		(1)
Equity contracts		(51)		(4)		-		3		-		-		(52)		3
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		490		(28)		-		(89)		-		-		373		18
Other contracts		121		(24)		-		5		-		-		102		23
Total derivative liabilities, net^(a)		617		(52)		-		(87)		-		-		478		43
Long-term debt^(b)		184		(2)		-		(2)		-		(113)		67		-
Total	$	4,052	$	544	$	-	$	52	$	-	$	(113)	$	4,535	$	59
				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, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,124	$	2	$	194	$	(7)	$	-	$	-	$	2,313	$	-
Non-U.S. governments		32		-		(2)		2		-		(4)		28		-
Corporate debt		1,370		3		(17)		(36)		314		(798)		836		-
RMBS		16,537		479		(359)		(172)		294		-		16,779		-
CMBS		2,585		58		(78)		(168)		-		(102)		2,295		-
CDO/ABS		6,169		20		43		820		23		-		7,075		-
Total bonds available for sale		28,817		562		(219)		439		631		(904)		29,326		-
Other bond securities:
Corporate debt		17		2		-		(1)		-		-		18		3
RMBS		1,581		(23)		-		(54)		-		(18)		1,486		(61)
CMBS		193		(2)		-		(23)		-		-		168		7
CDO/ABS		7,055		(24)		-		(719)		65		(65)		6,312		(364)
Total other bond securities		8,846		(47)		-		(797)		65		(83)		7,984		(415)
Equity securities available for sale:
Common stock		-		-		-		-		-		-		-		-
Total equity securities available for sale		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		-		-		-		14		1
Mortgage and other loans receivable		11		-		-		-		-		-		11		-
Other invested assets		332		(1)		1		(37)		-		(54)		241		-
Total	$	38,020	$	514	$	(218)	$	(395)	$	696	$	(1,041)	$	37,576	$	(414)

				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
Liabilities:
Policyholder contract deposits	$	2,289	$	1,443	$	-	$	258	$	-	$	-	$	3,990	$	37
Derivative liabilities, net:
Interest rate contracts		50		7		-		(11)		-		-		46		(5)
Foreign exchange contracts		7		2		-		-		-		-		9		(1)
Equity contracts		(54)		-		-		2		-		-		(52)		-
Commodity contracts		-		-		-		-		-		-		-		-
Credit contracts		505		(34)		-		(98)		-		-		373		28
Other contracts		48		30		-		24		-		-		102		(31)
Total derivative liabilities, net^(a)		556		5		-		(83)		-		-		478		(9)
Long-term debt^(b)		183		-		-		(3)		-		(113)		67		3
Total	$	3,028	$	1,448	$	-	$	172	$	-	$	(113)	$	4,535	$	31

				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		422		62		4		(51)		-		-		437		-
Total	$	40,483	$	796	$	(506)	$	(1,468)	$	427	$	(89)	$	39,643	$	125

				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
		of Period		in Income		Income (Loss)		Settlements, Net		In		Out		of Period		at End of Period
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)
Credit contracts		791		(13)		-		(227)		-		-		551		22
Other contracts		59		(59)		2		14		-		-		16		33
Total derivatives 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		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^(c)	$	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		1,042		472		(488)		(589)		-		-		437		-
Total	$	39,655	$	1,635	$	(969)	$	(1,346)	$	1,119	$	(451)	$	39,643	$	59

				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
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
Credit contracts		978		(160)		-		(267)		-		-		551		50
Other contracts		59		(73)		-		30		-		-		16		48
Total derivatives 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

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

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

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

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended June 30, 2016
Bonds available for sale	$	291	$	(30)	$	1	$	262
Other bond securities		26		32		66		124
Other equity securities		(1)		-		-		(1)
Other invested assets		(1)		(19)		8		(12)
Six Months Ended June 30, 2016
Bonds available for sale	$	589	$	(29)	$	2	$	562
Other bond securities		(8)		32		(71)		(47)
Other equity securities		-		-		-		-
Other invested assets		(3)		32		(30)		(1)
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		5		2		55		62
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		(2)		419		55		472

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
Three Months Ended June 30, 2016
Policyholder contract deposits	$	-	$	598	$	-	$	598
Derivative liabilities, net		-		-		(52)		(52)
Long-term debt		-		-		(2)		(2)
Six Months Ended June 30, 2016
Policyholder contract deposits	$	-	$	1,443	$	-	$	1,443
Derivative liabilities, net		-		4		1		5
Long-term debt		-		-		-		-
Three Months Ended June 30, 2015
Policyholder contract deposits	$	-	$	(736)	$	-	$	(736)
Derivative liabilities, net		19		1		(96)		(76)
Long-term debt		-		-		13		13
Six Months Ended June 30, 2015
Policyholder contract deposits	$	-	$	(461)	$	-	$	(461)
Derivative liabilities, net		-		(5)		(237)		(242)
Long-term debt		-		-		(2)		(2)

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

								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net^(a)
Three Months Ended June 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	17	$	(7)	$	(31)	$	(21)
Non-U.S. governments		2		-		-		2
Corporate debt		-		(25)		(40)		(65)
RMBS		1,040		-		(979)		61
CMBS		4		(27)		(64)		(87)
CDO/ABS		612		(11)		(219)		382
Total bonds available for sale		1,675		(70)		(1,333)		272
Other bond securities:
Corporate debt		-		-		(1)		(1)
RMBS		26		-		(67)		(41)
CMBS		-		-		(2)		(2)
CDO/ABS		61		(19)		(350)		(308)
Total other bond securities		87		(19)		(420)		(352)

Equity securities available for sale		-		-		-		-
Other equity securities		-		-		-		-
Other invested assets		9		(2)		(23)		(16)
Total assets	$	1,771	$	(91)	$	(1,776)	$	(96)
Liabilities:
Policyholder contract deposits	$	-	$	140	$	1	$	141
Derivative liabilities, net		(1)		-		(86)		(87)
Long-term debt^(b)		-		-		(2)		(2)
Total liabilities	$	(1)	$	140	$	(87)	$	52
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		(42)		(2)		(7)		(51)
Total assets	$	1,132	$	(713)	$	(1,887)	$	(1,468)
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)
								Purchases,
								Sales, Issues and
(in millions)		Purchases		Sales		Settlements		Settlements, Net^(a)
Six Months Ended June 30, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	46	$	(7)	$	(46)	$	(7)
Non-U.S. governments		3		-		(1)		2
Corporate debt		29		(25)		(40)		(36)
RMBS		1,543		(58)		(1,657)		(172)
CMBS		106		(58)		(216)		(168)
CDO/ABS		1,151		(11)		(320)		820
Total bonds available for sale		2,878		(159)		(2,280)		439

Other bond securities:
Corporate debt		-		-		(1)		(1)
RMBS		89		(26)		(117)		(54)
CMBS		53		(71)		(5)		(23)
CDO/ABS		69		(36)		(752)		(719)
Total other bond securities		211		(133)		(875)		(797)
Equity securities available for sale		-		-		-		-
Other equity securities		14		-		(14)		-
Other invested assets		18		(2)		(53)		(37)
Total assets	$	3,121	$	(294)	$	(3,222)	$	(395)
Liabilities:
Policyholder contract deposits	$	-	$	270	$	(12)	$	258
Derivative liabilities, net		(3)		-		(80)		(83)
Long-term debt^(b)		-		-		(3)		(3)
Total liabilities	$	(3)	$	270	$	(95)	$	172
Six Months Ended June 30, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions^(c)	$	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		27		(587)		(29)		(589)
Total assets	$	3,391	$	(1,524)	$	(3,213)	$	(1,346)
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)

(a) There were no issuances during the three- and six-month periods ended June 30, 2016 and 2015, respectively.

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

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	June 30,		Valuation		Range
(in millions)	2016		Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states,
municipalities and
political subdivisions	$	1,448	Discounted cash flow	Yield	3.44% - 4.29% (3.86%)

Corporate debt		386	Discounted cash flow	Yield	3.80% - 4.77% (4.29%)


RMBS^(a)		17,238	Discounted cash flow	Constant prepayment rate	1.26% - 8.84% (5.05%)
				Loss severity	46.90% - 80.26% (63.58%)
				Constant default rate	3.41% - 9.02% (6.22%)
				Yield	2.78% - 6.07% (4.43%)

CDO/ABS^(a)		3,017	Discounted cash flow	Yield	3.54% - 5.55% (4.54%)

CMBS		73	Discounted cash flow	Yield	1.32% - 2.73% (2.03%)

Liabilities:

Embedded derivatives
within Policyholder
contract deposits:

GMWB and GMAB		2,710	Discounted cash flow	Equity volatility	15.00% - 50.00%
				Base lapse rate	1.00% - 17.00%
				Dynamic lapse rate	0.20% - 25.50%
				Mortality multiplier^(c)	80.00% - 104.27%
				Utilization rate	0.00% - 70.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		963	Discounted cash flow	Lapse rate	0.75% - 66.00%
				Mortality multiplier^(c)	50.00% - 75.00%

Indexed Life		345	Discounted cash flow	Equity volatility	12.62% to 21.70%
				Base lapse rate	2.00% to 19.00%
				Mortality rate	0.00% to 40.00%


		Fair Value at
		December 31,	Valuation		Range
(in millions)		2015	Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states,
municipalities and
political subdivisions	$	1,217	Discounted cash flow	Yield	4.32% - 5.10% (4.71%)

Corporate debt		642	Discounted cash flow	Yield	5.63% - 12.45% (9.04%)


RMBS^(a)		17,280	Discounted cash flow	Constant prepayment rate	0.99% - 8.95% (4.97%)
				Loss severity	47.21% - 79.50% (63.35%)
				Constant default rate	3.49% - 9.04% (6.26%)
				Yield	3.13% - 6.14% (4.63%)

CDO/ABS^(a)		3,338	Discounted cash flow	Yield	3.41% - 4.98% (4.19%)

CMBS		2,388	Discounted cash flow	Yield	0.00% - 17.65% (6.62%)

Liabilities:

Embedded derivatives
within Policyholder
contract deposits:

GMWB and GMAB		1,234	Discounted cash flow	Equity volatility	15.00% - 50.00%
				Base lapse rate	1.00% - 17.00%
				Dynamic lapse rate	0.20% - 25.50%
				Mortality multiplier^(c)	80.00% - 104.27%
				Utilization rate	0.00% - 70.00%
				Equity / interest-rate correlation	20.00% - 40.00%

Index Annuities		715	Discounted cash flow	Lapse rate	0.75% - 66.00%
				Mortality multiplier^(c)	50.00% - 75.00%

Indexed Life		332	Discounted cash flow	Equity volatility	13.25% to 22.00%
				Base lapse rate	2.00% to 19.00%
				Mortality rate	0.00% to 40.00%

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

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

(c) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table for GMWB and GMAB, and the 1975-1980 Modified Basic Table for index annuities.

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

		June 30, 2016				December 31, 2015
			Fair Value			Fair Value
			Using NAV			Using NAV
			Per Share (or		Unfunded	Per Share (or			Unfunded
(in millions)	Investment Category Includes		its equivalent)		Commitments	its equivalent)			Commitments
Investment Category
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	1,560	$	547	$	1,774	$	436

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		266		227		306		213

Venture capital	Early-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company		99		34		107		41

Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		134		42		146		41

Other	Includes multi-strategy, mezzanine and other strategies		282		248		298		239
Total private equity funds			2,341		1,098		2,631		970
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		700		-		1,194		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		2,240		28		2,978		25

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		573		-		555		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		640		7		699		8

Emerging markets	Investments in the financial markets of developing countries		300		-		353		-

Other	Includes multi-strategy, relative value and other strategies		140		-		167		-
Total hedge funds			4,593		35		5,946		33
Total		$	6,934	$	1,133	$	8,577	$	1,003

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,
	Gain (Loss) Three Months Ended June 30,				Gain (Loss) Six Months Ended June 30,
(in millions)		2016		2015		2016		2015
Assets:
Bond and equity securities	$	248	$	460	$	298	$	601
Alternative Investments^(a)		33		118		(214)		263
Other, including Short-term investments		-		-		-		2
Liabilities:
Long-term debt^(b)		(71)		131		(247)		55
Other liabilities		-		-		-		(3)
Total gain (loss)	$	210	$	709	$	(163)	$	918

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

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

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

	June 30, 2016						December 31, 2015
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	11	$	8	$	3	$	11	$	9	$	2
Liabilities:
Long-term debt^*	$	3,747	$	2,594	$	1,153	$	3,670	$	2,675	$	995

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

Fair value assets measured on nonrecurring basis and impairment charges

	Assets at Fair Value								Impairment Charges
	Non-Recurring Basis								Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	Level 1		Level 2		Level 3			Total		2016		2015		2016		2015
June 30, 2016
Other investments	$	-	$	-	$	176	$	176	$	29	$	27	$	31	$	52
Investments in life settlements		-		-		534		534		92		72		249		142
Other assets		-		-		1		1		9		4		9		8
Total	$	-	$	-	$	711	$	711	$	130	$	103	$	289	$	202
December 31, 2015
Other investments	$	-	$	-	$	1,117	$	1,117
Investments in life settlements		-		-		828		828
Other assets		-		-		129		129
Total	$	-	$	-	$	2,074	$	2,074

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

	Estimated Fair Value									Carrying
(in millions)		Level 1		Level 2		Level 3		Total		Value
June 30, 2016
Assets:
Mortgage and other loans receivable	$	-	$	174	$	32,795	$	32,969	$	31,250
Other invested assets		-		620		2,897		3,517		4,191
Short-term investments		-		8,385		-		8,385		8,385
Cash		1,784		-		-		1,784		1,784
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		366		126,279		126,645		111,459
Other liabilities		-		3,697		-		3,697		3,697
Long-term debt		-		25,918		4,693		30,611		29,582
December 31, 2015
Assets:
Mortgage and other loans receivable	$	-	$	198	$	30,147	$	30,345	$	29,554
Other invested assets		-		563		2,880		3,443		4,169
Short-term investments		-		7,541		-		7,541		7,541
Cash		1,629		-		-		1,629		1,629
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		309		117,537		117,846		108,788
Other liabilities		-		2,852		-		2,852		2,852
Long-term debt		-		21,686		4,528		26,214		25,579