XML 125 R46.htm IDEA: XBRL DOCUMENT v3.6.0.2
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2016
FAIR VALUE MEASUREMENTS  
Assets and liabilities measured at fair value on a recurring basis
December 31, 2016 CounterpartyCash
(in millions) Level 1Level 2Level 3Netting(b)CollateralTotal
Assets:
Bonds available for sale:
U.S. government and government sponsored entities$63$1,929$-$-$-$1,992
Obligations of states, municipalities and political subdivisions-22,7322,040--24,772
Non-U.S. governments5214,46617--14,535
Corporate debt-131,0471,133--132,180
RMBS-20,46816,906--37,374
CMBS-12,2312,040--14,271
CDO/ABS-8,5787,835--16,413
Total bonds available for sale115211,45129,971--241,537
Other bond securities:
U.S. government and government sponsored entities-2,939---2,939
Obligations of states, municipalities and political subdivisions------
Non-U.S. governments-51---51
Corporate debt-1,75517--1,772
RMBS-4201,605--2,025
CMBS-448155--603
CDO/ABS-9055,703--6,608
Total other bond securities-6,5187,480--13,998
Equity securities available for sale:
Common stock1,0569---1,065
Preferred stock752----752
Mutual funds2601---261
Total equity securities available for sale2,06810---2,078
Other equity securities 482----482
Mortgage and other loans receivable--11--11
Other invested assets(a)-1204--205
Derivative assets:
Interest rate contracts -2,328---2,328
Foreign exchange contracts-1,320---1,320
Equity contracts1885958--305
Credit contracts--2--2
Other contracts-616--22
Counterparty netting and cash collateral---(1,265)(903)(2,168)
Total derivative assets1883,71376(1,265)(903)1,809
Short-term investments2,660681---3,341
Separate account assets77,3185,654---82,972
Total$82,831$228,028$37,742$(1,265)$(903)$346,433

Liabilities:
Policyholder contract deposits$-$25$3,033$-$-$3,058
Other policyholder funds5----5
Derivative liabilities:
Interest rate contracts-3,03938--3,077
Foreign exchange contracts-1,35811--1,369
Equity contracts127---19
Credit contracts--331--331
Other contracts-15--6
Counterparty netting and cash collateral---(1,265)(1,521)(2,786)
Total derivative liabilities124,405385(1,265)(1,521)2,016
Long-term debt-3,35771--3,428
Other liabilities------
Total$17$7,787$3,489$(1,265)$(1,521)$8,507

December 31, 2015 CounterpartyCash
(in millions) Level 1Level 2Level 3Netting(b)CollateralTotal
Assets:
Bonds available for sale:
U.S. government and government sponsored entities$-$1,844$-$-$-$1,844
Obligations of states, municipalities and political subdivisions-25,1992,124--27,323
Non-U.S. governments68317,48032--18,195
Corporate debt-134,6181,370--135,988
RMBS-19,69016,537--36,227
CMBS-10,9862,585--13,571
CDO/ABS-8,9286,169--15,097
Total bonds available for sale683218,74528,817--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-2,01817--2,035
RMBS-6491,581--2,230
CMBS-557193--750
CDO/ABS-1,2187,055--8,273
Total other bond securities-7,9368,846--16,782
Equity securities available for sale:
Common stock2,401----2,401
Preferred stock22----22
Mutual funds4911---492
Total equity securities available for sale2,9141---2,915
Other equity securities906114--921
Mortgage and other loans receivable--11--11
Other invested assets(a)21332--335
Derivative assets:
Interest rate contracts-3,15012--3,162
Foreign exchange contracts-766---766
Equity contracts913254--177
Credit contracts--3--3
Other contracts-221--23
Counterparty netting and cash collateral---(1,268)(1,554)(2,822)
Total derivative assets913,95090(1,268)(1,554)1,309
Short-term investments1,4161,175---2,591
Separate account assets73,6995,875---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 funds6----6
Derivative liabilities:
Interest rate contracts-2,13762--2,199
Foreign exchange contracts-1,1977--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-3,402646(1,268)(760)2,020
Long-term debt-3,487183--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 $6.7 billion and $8.6 billion as of December 31, 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
UnrealizedPurchases, Reclassified (Losses) Included
Fair ValueGains (Losses)OtherSales,GrossGrossto AssetsFair Valuein Income on
BeginningIncludedComprehensiveIssues andTransfersTransfersDivestedHeldEndInstruments Held
(in millions)of Yearin IncomeIncome (Loss)Settlements, NetInOutBusinessesfor Saleof Yearat End of Year
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions$2,124$5$-$61$2$(152)$-$-$2,040$-
Non-U.S. governments32(3)(12)71(5)-(3)17-
Corporate debt1,370(13)(42)(111)920(977)(14)-1,133-
RMBS16,537970(24)(878)330(29)--16,906-
CMBS2,58572(132)(323)23(185)--2,040-
CDO/ABS6,16934(111)1,72023---7,835-
Total bonds available
for sale28,8171,065(321)4761,299(1,348)(14)(3)29,971-

Other bond securities:
Corporate debt17-------17-
RMBS1,58143-(1)-(18)--1,605(24)
CMBS193--(38)----155(1)
CDO/ABS7,055271-(1,623)65(65)--5,703(393)
Total other bond securities8,846314-(1,662)65(83)--7,480(418)
Equity securities available
for sale:
Common stock----------
Total equity securities
available for sale----------
Other equity securities14--(14)------
Mortgage and other loans
receivable11-------11-
Other invested assets3321-(75)-(54)--2048
Total$38,020$1,380$(321)$(1,275)$1,364$(1,485)$(14)$(3)$37,666$(410)
Net Changes in
Realized and Unrealized Gains
UnrealizedPurchases, Reclassified (Losses) Included
Fair Value(Gains) LossesOtherSales,GrossGrossto LiabilitiesFair Valuein Income on
BeginningIncludedComprehensiveIssues andTransfersTransfersDivestedHeldEndInstruments Held
(in millions)of Yearin IncomeIncome (Loss)Settlements, NetInOutBusinessesfor Saleof Yearat End of Year
Liabilities:
Policyholder contract deposits$2,289$441$-$303$-$-$-$-$3,033$(5)
Derivative liabilities, net:
Interest rate contracts50(8)-(4)----386
Foreign exchange
contracts75-(1)----11(4)
Equity contracts(54)(10)-6----(58)10
Commodity contracts----------
Credit contracts505(81)-(95)----32971
Other contracts48(10)-(53)-4--(11)128
Total derivative
liabilities, net(a)556(104)-(147)-4--309211
Long-term debt(b)1834-(3)-(113)--71(1)
Total$3,028$341$-$153$-$(109)$-$-$3,413$205

Net Changes in
Realized and Unrealized Gains
UnrealizedPurchases, (Losses) Included
Fair ValueGains (Losses)OtherSales,GrossGrossFair Valuein Income on
BeginningIncludedComprehensiveIssues andTransfersTransfersEndInstruments Held
(in millions)of Yearin IncomeIncome (Loss)Settlements, NetInOutof Yearat End of Year
December 31, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions$2,159$1$(85)$154$-$(105)$2,124$-
Non-U.S. governments30-(7)10-(1)32-
Corporate debt1,88315(109)(210)1,515(1,724)1,370-
RMBS16,8051,052(512)(808)--16,537-
CMBS2,69677(95)118-(211)2,585-
CDO/ABS6,110149(258)3007(139)6,169-
Total bonds available for sale29,6831,294(1,066)(436)1,522(2,180)28,817-
Other bond securities:
Corporate debt---116-17-
RMBS1,10532-46043(59)1,581(27)
CMBS369(3)-(177)4-193(13)
CDO/ABS7,449646-(1,658)698(80)7,055(87)
Total other bond securities8,923675-(1,374)761(139)8,846(127)
Equity securities available for sale:
Common stock12-(3)----
Total equity securities available for sale12-(3)----
Other equity securities-(1)-(7)22-14(2)
Mortgage and other loans receivable6--5--11-
Other invested assets1,042448(510)(648)--332-
Total$39,655$2,418$(1,576)$(2,463)$2,305$(2,319)$38,020$(129)
Net Changes in
Realized and Unrealized Gains
UnrealizedPurchases, (Losses) Included
Fair Value(Gains) LossesOtherSales,GrossGrossFair Valuein Income on
BeginningIncludedComprehensiveIssues andTransfersTransfersEndInstruments Held
(in millions)of Yearin IncomeIncome (Loss)Settlements, NetInOutof Yearat End of Year
Liabilities:
Policyholder contract deposits$1,509$315$-$465$-$-$2,289$64
Derivative liabilities, net:
Interest rate contracts74--(24)--50(1)
Foreign exchange contracts8(1)----71
Equity contracts(47)(2)-(5)--(54)(3)
Credit contracts978(186)-(287)--50595
Other contracts59(79)-68--4876
Total derivatives liabilities, net(a)1,072(268)-(248)--556168
Long-term debt(b)213(10)-(20)--18317
Total$2,794$37$-$197$-$-$3,028$249

(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
UnrealizedPurchases, Reclassified (Losses) Included
Fair ValueGains (Losses)OtherSales,GrossGrossto AssetsFair Valuein Income on
BeginningIncludedComprehensiveIssues andTransfersTransfersDivestedHeldEndInstruments Held
(in millions)of Yearin IncomeIncome (Loss)Settlements, NetInOutBusinessesfor Saleof Yearat End of Year
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions$2,124$5$-$61$2$(152)$-$-$2,040$-
Non-U.S. governments32(3)(12)71(5)-(3)17-
Corporate debt1,370(13)(42)(111)920(977)(14)-1,133-
RMBS16,537970(24)(878)330(29)--16,906-
CMBS2,58572(132)(323)23(185)--2,040-
CDO/ABS6,16934(111)1,72023---7,835-
Total bonds available
for sale28,8171,065(321)4761,299(1,348)(14)(3)29,971-

Other bond securities:
Corporate debt17-------17-
RMBS1,58143-(1)-(18)--1,605(24)
CMBS193--(38)----155(1)
CDO/ABS7,055271-(1,623)65(65)--5,703(393)
Total other bond securities8,846314-(1,662)65(83)--7,480(418)
Equity securities available
for sale:
Common stock----------
Total equity securities
available for sale----------
Other equity securities14--(14)------
Mortgage and other loans
receivable11-------11-
Other invested assets3321-(75)-(54)--2048
Total$38,020$1,380$(321)$(1,275)$1,364$(1,485)$(14)$(3)$37,666$(410)
Net Changes in
Realized and Unrealized Gains
UnrealizedPurchases, Reclassified (Losses) Included
Fair Value(Gains) LossesOtherSales,GrossGrossto LiabilitiesFair Valuein Income on
BeginningIncludedComprehensiveIssues andTransfersTransfersDivestedHeldEndInstruments Held
(in millions)of Yearin IncomeIncome (Loss)Settlements, NetInOutBusinessesfor Saleof Yearat End of Year
Liabilities:
Policyholder contract deposits$2,289$441$-$303$-$-$-$-$3,033$(5)
Derivative liabilities, net:
Interest rate contracts50(8)-(4)----386
Foreign exchange
contracts75-(1)----11(4)
Equity contracts(54)(10)-6----(58)10
Commodity contracts----------
Credit contracts505(81)-(95)----32971
Other contracts48(10)-(53)-4--(11)128
Total derivative
liabilities, net(a)556(104)-(147)-4--309211
Long-term debt(b)1834-(3)-(113)--71(1)
Total$3,028$341$-$153$-$(109)$-$-$3,413$205

Net Changes in
Realized and Unrealized Gains
UnrealizedPurchases, (Losses) Included
Fair ValueGains (Losses)OtherSales,GrossGrossFair Valuein Income on
BeginningIncludedComprehensiveIssues andTransfersTransfersEndInstruments Held
(in millions)of Yearin IncomeIncome (Loss)Settlements, NetInOutof Yearat End of Year
December 31, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions$2,159$1$(85)$154$-$(105)$2,124$-
Non-U.S. governments30-(7)10-(1)32-
Corporate debt1,88315(109)(210)1,515(1,724)1,370-
RMBS16,8051,052(512)(808)--16,537-
CMBS2,69677(95)118-(211)2,585-
CDO/ABS6,110149(258)3007(139)6,169-
Total bonds available for sale29,6831,294(1,066)(436)1,522(2,180)28,817-
Other bond securities:
Corporate debt---116-17-
RMBS1,10532-46043(59)1,581(27)
CMBS369(3)-(177)4-193(13)
CDO/ABS7,449646-(1,658)698(80)7,055(87)
Total other bond securities8,923675-(1,374)761(139)8,846(127)
Equity securities available for sale:
Common stock12-(3)----
Total equity securities available for sale12-(3)----
Other equity securities-(1)-(7)22-14(2)
Mortgage and other loans receivable6--5--11-
Other invested assets1,042448(510)(648)--332-
Total$39,655$2,418$(1,576)$(2,463)$2,305$(2,319)$38,020$(129)
Net Changes in
Realized and Unrealized Gains
UnrealizedPurchases, (Losses) Included
Fair Value(Gains) LossesOtherSales,GrossGrossFair Valuein Income on
BeginningIncludedComprehensiveIssues andTransfersTransfersEndInstruments Held
(in millions)of Yearin IncomeIncome (Loss)Settlements, NetInOutof Yearat End of Year
Liabilities:
Policyholder contract deposits$1,509$315$-$465$-$-$2,289$64
Derivative liabilities, net:
Interest rate contracts74--(24)--50(1)
Foreign exchange contracts8(1)----71
Equity contracts(47)(2)-(5)--(54)(3)
Credit contracts978(186)-(287)--50595
Other contracts59(79)-68--4876
Total derivatives liabilities, net(a)1,072(268)-(248)--556168
Long-term debt(b)213(10)-(20)--18317
Total$2,794$37$-$197$-$-$3,028$249

(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
NetNet Realized
InvestmentCapital Other
(in millions)IncomeGains (Losses)IncomeTotal
December 31, 2016
Assets:
Bonds available for sale$1,180$(118)$3$1,065
Other bond securities11044160314
Equity securities available for sale----
Other equity securities----
Other invested assets1339(51)1
December 31, 2015
Assets:
Bonds available for sale$1,227$(49)$116$1,294
Other bond securities443628675
Equity securities available for sale-2-2
Other equity securities--(1)(1)
Other invested assets(10)39365448
NetNet Realized
InvestmentCapital Other
(in millions)Income(Gains) LossesIncomeTotal
December 31, 2016
Liabilities:
Policyholder contract deposits-441-441
Derivative liabilities, net-(8)(96)(104)
Long-term debt--44
December 31, 2015
Liabilities:
Policyholder contract deposits-315-315
Derivative liabilities, net-1(269)(268)
Long-term debt--(10)(10)
Gross components of purchases, sales, issues and settlements, net
Purchases,
Sales, Issues and
(in millions)PurchasesSalesSettlementsSettlements, Net(a)
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$164$(8)$(95)$61
Non-U.S. governments13-(6)7
Corporate debt29(25)(115)(111)
RMBS2,635(81)(3,432)(878)
CMBS156(98)(381)(323)
CDO/ABS2,460(99)(641)1,720
Total bonds available for sale5,457(311)(4,670)476
Other bond securities:
Corporate debt----
RMBS343(104)(240)(1)
CMBS53(86)(5)(38)
CDO/ABS69(458)(1,234)(1,623)
Total other bond securities465(648)(1,479)(1,662)

Equity securities available for sale----
Other equity securities14-(28)(14)
Mortgage and other loans receivable1(2)1-
Other invested assets37(10)(102)(75)
Total assets$5,974$(971)$(6,278)$(1,275)
Liabilities:
Policyholder contract deposits$-$437$(134)$303
Derivative liabilities, net(6)-(141)(147)
Long-term debt(b)--(3)(3)
Total liabilities$(6)$437$(278)$153
December 31, 2015
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions(c)$279$(37)$(88)$154
Non-U.S. governments18(1)(7)10
Corporate debt221(60)(371)(210)
RMBS2,215(194)(2,829)(808)
CMBS273(28)(127)118
CDO/ABS1,400(210)(890)300
Total bonds available for sale4,406(530)(4,312)(436)
Other bond securities:
Corporate debt--11
RMBS655(22)(173)460
CMBS-(79)(98)(177)
CDO/ABS242(380)(1,520)(1,658)
Total other bond securities897(481)(1,790)(1,374)
Equity securities available for sale-(2)(1)(3)
Other equity securities--(7)(7)
Mortgage and other loans receivable5--5
Other invested assets47(587)(108)(648)
Total assets$5,355$(1,600)$(6,218)$(2,463)
Liabilities:
Policyholder contract deposits$-$442$23$465
Derivative liabilities, net(19)-(229)(248)
Long-term debt(b)--(20)(20)
Total liabilities$(19)$442$(226)$197

(a) There were no issuances during the years ended December 31, 2016 and 2015.

(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
December 31,ValuationRange
(in millions)2016TechniqueUnobservable Input(b)(Weighted Average)
Assets:
Obligations of states,
municipalities and
political subdivisions$1,248Discounted cash flowYield4.12% - 4.91% (4.52%)
Corporate debt498Discounted cash flowYield3.41% - 6.38% (4.90%)
RMBS(a)17,412Discounted cash flowConstant prepayment rate3.95% - 6.54% (5.25%)
Loss severity47.51% - 80.98% (64.24%)
Constant default rate3.28% - 8.64% (5.96%)
Yield3.28% - 5.87% (4.57%)
CDO/ABS(a)4,368Discounted cash flowYield3.67% - 5.85% (4.76%)
CMBS1,511Discounted cash flowYield0.48% - 10.21% (5.34%)
Liabilities:
Embedded derivatives
within Policyholder
contract deposits:
GMWB 1,777Discounted cash flowEquity volatility13.00% - 50.00%
Base lapse rate0.50% - 20.00%
Dynamic lapse multiplier30.00% - 170.00%
Mortality multiplier(c)42.00% - 161.00%
Utilization100.00%
Equity / interest-rate correlation20.00% - 40.00%
Index Annuities859Discounted cash flowLapse rate1.00% - 66.00%
Mortality multiplier(c)101.00% - 103.00%
Indexed Life381Discounted cash flowBase lapse rate2.00% - 19.00%
Mortality rate0.00% - 40.00%

Fair Value  at
December 31,ValuationRange
(in millions)2015TechniqueUnobservable Input(b)(Weighted Average)
Assets:
Obligations of states,
municipalities and
political subdivisions$1,217Discounted cash flowYield4.32% - 5.10% (4.71%)
Corporate debt642Discounted cash flowYield5.63% - 12.45% (9.04%)
RMBS(a)17,280Discounted cash flowConstant prepayment rate0.99% - 8.95% (4.97%)
Loss severity47.21% - 79.50% (63.35%)
Constant default rate3.49% - 9.04% (6.26%)
Yield3.13% - 6.14% (4.63%)
CDO/ABS(a)3,338Discounted cash flowYield3.41% - 4.98% (4.19%)
CMBS2,388Discounted cash flowYield0.00% - 17.65% (6.62%)
Liabilities:
Embedded derivatives
within Policyholder
contract deposits:
GMWB 1,234Discounted cash flowEquity volatility15.00% - 50.00%
Base lapse rate1.00% - 17.00%
Dynamic lapse multiplier0.20% - 25.50%
Mortality multiplier(d)80.00% - 104.27%
Utilization0.00% - 70.00%
Equity / interest rate correlation20.00% - 40.00%
Index Annuities715Discounted cash flowLapse rate0.75% - 66.00%
Mortality multiplier(d)50.00% - 75.00%
Indexed Life332Discounted cash flowBase lapse rate2.00% to 19.00%
Mortality rate0.00% 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 Guaranteed Minimum Withdrawal Benefits (GMWB).

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

(e) Beginning in the third quarter of 2015, we began valuing these instruments using prices obtained from vendors and/or counterparties and discontinued use of the BET model.
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share
December 31, 2016December 31, 2015
Fair Value Using Net Asset Value Per Share (or its equivalent)Fair Value Using Net Asset Value Per Share (or its equivalent)
UnfundedUnfunded
(in millions)Investment Category IncludesCommitmentsCommitments
Investment Category
Private equity funds:
Leveraged buyoutDebt 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$1,424$750$1,774$436
Real Estate / InfrastructureInvestments in real estate properties and infrastructure positions, including power plants and other energy generating facilities258208306213
Venture capitalEarly-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 company1373110741
DistressedSecurities of companies that are in default, under bankruptcy protection, or troubled 1234414641
OtherIncludes multi-strategy, mezzanine, and other strategies312215298239
Total private equity funds2,2541,2482,631970
Hedge funds*:
Event-drivenSecurities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations1,45391,194-
Long-shortSecurities that the manager believes are undervalued, with corresponding short positions to hedge market risk1,429-2,97825
MacroInvestments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions992-555-
DistressedSecurities of companies that are in default, under bankruptcy protection or troubled 41686998
Emerging marketsInvestments in the financial markets of developing countries--353-
OtherIncludes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments19714167-
Total hedge funds4,487315,94633
Total$6,741$1,279$8,577$1,003
Gains or losses related to the eligible instruments for which AIG elected the fair value option
Years Ended December 31,Gain (Loss)
(in millions)201620152014
Assets:
Bond and equity securities$447$616$2,099
Alternative investments(a)2836313
Other, including Short-term investments-210
Liabilities:
Long-term debt(b)(9)(38)(269)
Other liabilities-(3)(13)
Total gain$466$613$2,140

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

(b) Includes GIAs, notes, bonds and mortgages payable.
Difference between fair values and aggregate contractual principal amounts, fair value option
December 31, 2016December 31, 2015
OutstandingOutstanding
(in millions)Fair ValuePrincipal AmountDifferenceFair ValuePrincipal AmountDifference
Assets:
Mortgage and other loans receivable$11$8$3$11$9$2
Liabilities:
Long-term debt*$3,428$2,628$800$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 ValueImpairment Charges
Non-Recurring BasisDecember 31,
(in millions) Level 1 Level 2 Level 3 Total 201620152014
December 31, 2016
Other investments$-$-$364$364$76$189$134
Investments in life settlements--736736397540201
Other assets--2219807
Total$-$-$1,102$1,102$492$809$342
December 31, 2015
Other investments$-$-$1,117$1,117
Investments in life settlements--828828
Other assets--129129
Total$-$-$2,074$2,074
Carrying values and estimated fair values of AIG's financial instruments
Estimated Fair ValueCarrying
(in millions)Level 1Level 2Level 3TotalValue
December 31, 2016
Assets:
Mortgage and other loans receivable$-$161$33,575$33,736$33,229
Other invested assets-9552,0533,0083,474
Short-term investments-8,961-8,9618,961
Cash1,868--1,8681,868
Liabilities:
Policyholder contract deposits associated
with investment-type contracts-382121,742122,124112,705
Other liabilities-4,196-4,1964,196
Long-term debt-23,1173,33326,45027,484

December 31, 2015
Assets:
Mortgage and other loans receivable$-$198$30,147$30,345$29,554
Other invested assets-5632,8803,4434,169
Short-term investments-7,541-7,5417,541
Cash1,629--1,6291,629
Liabilities:
Policyholder contract deposits associated
with investment-type contracts-309117,537117,846108,788
Other liabilities-2,852-2,8522,852
Long-term debt-21,6864,52826,21425,579