FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2017

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

December 31, 2017							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting(b)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	201	$	2,455	$	-	$	-	$	-	$	2,656
Obligations of states, municipalities and political subdivisions		-		16,240		2,404		-		-		18,644
Non-U.S. governments		20		15,631		8		-		-		15,659
Corporate debt		-		133,003		1,173		-		-		134,176
RMBS		-		21,098		16,136		-		-		37,234
CMBS		-		13,217		624		-		-		13,841
CDO/ABS		-		8,131		8,651		-		-		16,782
Total bonds available for sale		221		209,775		28,996		-		-		238,992
Other bond securities:
U.S. government and government sponsored entities		238		2,564		-		-		-		2,802
Obligations of states, municipalities and political subdivisions		-		-		-		-		-		-
Non-U.S. governments		-		57		-		-		-		57
Corporate debt		-		1,891		18		-		-		1,909
RMBS		-		421		1,464		-		-		1,885
CMBS		-		485		74		-		-		559
CDO/ABS		-		604		4,956		-		-		5,560
Total other bond securities		238		6,022		6,512		-		-		12,772
Equity securities available for sale:
Common stock		1,061		-		-		-		-		1,061
Preferred stock		18		515		-		-		-		533
Mutual funds		110		4		-		-		-		114
Total equity securities available for sale		1,189		519		-		-		-		1,708
Other equity securities		589		-		-		-		-		589
Mortgage and other loans receivable		-		-		5		-		-		5
Other invested assets(a)		-		1		250		-		-		251
Derivative assets:
Interest rate contracts		1		2,170		-		-		-		2,171
Foreign exchange contracts		-		827		4		-		-		831
Equity contracts		188		252		82		-		-		522
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		20		-		-		20
Counterparty netting and cash collateral		-		-		-		(1,464)		(1,159)		(2,623)
Total derivative assets		189		3,249		107		(1,464)		(1,159)		922
Short-term investments		2,078		537		-		-		-		2,615
Separate account assets		87,141		5,657		-		-		-		92,798
Total	$	91,645	$	225,760	$	35,870	$	(1,464)	$	(1,159)	$	350,652
Liabilities:
Policyholder contract deposits	$	-	$	14	$	4,136	$	-	$	-	$	4,150
Other policyholder funds		-		-		-		-		-		-
Derivative liabilities:
Interest rate contracts		2		2,176		22		-		-		2,200
Foreign exchange contracts		-		1,241		4		-		-		1,245
Equity contracts		2		19		-		-		-		21
Credit contracts		-		14		263		-		-		277
Other contracts		-		-		5		-		-		5
Counterparty netting and cash collateral		-		-		-		(1,464)		(1,249)		(2,713)
Total derivative liabilities		4		3,450		294		(1,464)		(1,249)		1,035
Long-term debt		-		2,888		-		-		-		2,888
Other liabilities		46		43		-		-		-		89
Total	$	50	$	6,395	$	4,430	$	(1,464)	$	(1,249)	$	8,162

December 31, 2016							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting(b)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	63	$	1,929	$	-	$	-	$	-	$	1,992
Obligations of states, municipalities and political subdivisions		-		22,732		2,040		-		-		24,772
Non-U.S. governments		52		14,466		17		-		-		14,535
Corporate debt		-		131,047		1,133		-		-		132,180
RMBS		-		20,468		16,906		-		-		37,374
CMBS		-		12,231		2,040		-		-		14,271
CDO/ABS		-		8,578		7,835		-		-		16,413
Total bonds available for sale		115		211,451		29,971		-		-		241,537
Other bond securities:
U.S. government and government sponsored entities		-		2,939		-		-		-		2,939
Non-U.S. governments		-		51		-		-		-		51
Corporate debt		-		1,755		17		-		-		1,772
RMBS		-		420		1,605		-		-		2,025
CMBS		-		448		155		-		-		603
CDO/ABS		-		905		5,703		-		-		6,608
Total other bond securities		-		6,518		7,480		-		-		13,998
Equity securities available for sale:
Common stock		1,056		9		-		-		-		1,065
Preferred stock		752		-		-		-		-		752
Mutual funds		260		1		-		-		-		261
Total equity securities available for sale		2,068		10		-		-		-		2,078
Other equity securities		482		-		-		-		-		482
Mortgage and other loans receivable		-		-		11		-		-		11
Other invested assets(a)		-		1		204		-		-		205
Derivative assets:
Interest rate contracts		-		2,328		-		-		-		2,328
Foreign exchange contracts		-		1,320		-		-		-		1,320
Equity contracts		188		59		58		-		-		305
Credit contracts		-		-		2		-		-		2
Other contracts		-		6		16		-		-		22
Counterparty netting and cash collateral		-		-		-		(1,265)		(903)		(2,168)
Total derivative assets		188		3,713		76		(1,265)		(903)		1,809
Short-term investments		2,660		681		-		-		-		3,341
Separate account assets		77,318		5,654		-		-		-		82,972
Total	$	82,831	$	228,028	$	37,742	$	(1,265)	$	(903)	$	346,433
Liabilities:
Policyholder contract deposits	$	-	$	25	$	3,033	$	-	$	-	$	3,058
Other policyholder funds		5		-		-		-		-		5
Derivative liabilities:
Interest rate contracts		-		3,039		38		-		-		3,077
Foreign exchange contracts		-		1,358		11		-		-		1,369
Equity contracts		12		7		-		-		-		19
Credit contracts		-		-		331		-		-		331
Other contracts		-		1		5		-		-		6
Counterparty netting and cash collateral		-		-		-		(1,265)		(1,521)		(2,786)
Total derivative liabilities		12		4,405		385		(1,265)		(1,521)		2,016
Long-term debt		-		3,357		71		-		-		3,428
Other liabilities		-		-		-		-		-		-
Total	$	17	$	7,787	$	3,489	$	(1,265)	$	(1,521)	$	8,507

(a) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $6.0 billion and $6.7 billion as of December 31,2017 and December 31,2016, respectively.

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

Changes in Level 3 recurring fair value measurements (Assets)

				Net																Changes in
				Realized and																Unrealized Gains
				Unrealized				Purchases,								Reclassified				(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross				to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,040	$	5	$	167	$	216	$	8	$	(32)	$	-	$	-	$	2,404	$	-
Non-U.S. governments		17		(9)		9		(9)		-		-		-		-		8		-
Corporate debt		1,133		(3)		20		(259)		886		(604)		-		-		1,173		-
RMBS		16,906		1,071		942		(2,763)		19		(39)		-		-		16,136		-
CMBS		2,040		35		11		(748)		20		(734)		-		-		624		-
CDO/ABS		7,835		(19)		155		743		-		(63)		-		-		8,651		-
Total bonds available
for sale		29,971		1,080		1,304		(2,820)		933		(1,472)		-		-		28,996		-
Other bond securities:
Corporate debt		17		3		-		10		-		(12)		-		-		18		1
RMBS		1,605		191		-		(313)		14		(33)		-		-		1,464		113
CMBS		155		4		-		24		9		(118)		-		-		74		5
CDO/ABS		5,703		841		-		(1,582)		-		(6)		-		-		4,956		362
Total other bond securities		7,480		1,039		-		(1,861)		23		(169)		-		-		6,512		481
Equity securities available
for sale:
Common stock		-		-		-		1		-		(1)		-		-		-		-
Total equity securities
available for sale		-		-		-		1		-		(1)		-		-		-		-
Other equity securities		-		-		-		-		-		-		-		-		-		-
Mortgage and other loans
receivable		11		-		-		(6)		-		-		-		-		5		-
Other invested assets		204		14		(6)		39		-		(1)		-		-		250		6
Total	$	37,666	$	2,133	$	1,298	$	(4,647)	$	956	$	(1,643)	$	-	$	-	$	35,763	$	487
				Net																Changes in
				Realized and																Unrealized Gains
				Unrealized				Purchases,								Reclassified				(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross				to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
Liabilities:
Policyholder contract deposits	$	3,033	$	807	$	-	$	296	$	-	$	-	$	-	$	-	$	4,136	$	(499)
Derivative liabilities, net:
Interest rate contracts		38		(5)		-		(11)		-		-		-		-		22		5
Foreign exchange
contracts		11		(2)		-		(9)		-		-		-		-		-		3
Equity contracts		(58)		(41)		-		17		-		-		-		-		(82)		35
Credit contracts		329		(62)		-		(5)		-		-		-		-		262		61
Other contracts		(11)		(74)		-		73		(3)		-		-		-		(15)		77
Total derivative
liabilities, net(a)		309		(184)		-		65		(3)		-		-		-		187		181
Long-term debt(b)		71		16		-		(87)		-		-		-		-		-		-
Total	$	3,413	$	639	$	-	$	274	$	(3)	$	-	$	-	$	-	$	4,323	$	(318)

				Net																Changes in
				Realized and																Unrealized Gains
				Unrealized				Purchases,								Reclassified				(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross				to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,124	$	5	$	-	$	61	$	2	$	(152)	$	-	$	-	$	2,040	$	-
Non-U.S. governments		32		(3)		(12)		7		1		(5)		-		(3)		17		-
Corporate debt		1,370		(13)		(42)		(111)		920		(977)		(14)		-		1,133		-
RMBS		16,537		970		(24)		(878)		330		(29)		-		-		16,906		-
CMBS		2,585		72		(132)		(323)		23		(185)		-		-		2,040		-
CDO/ABS		6,169		34		(111)		1,720		23		-		-		-		7,835		-
Total bonds available
for sale		28,817		1,065		(321)		476		1,299		(1,348)		(14)		(3)		29,971		-
Other bond securities:
Corporate debt		17		-		-		-		-		-		-		-		17		-
RMBS		1,581		43		-		(1)		-		(18)		-		-		1,605		(24)
CMBS		193		-		-		(38)		-		-		-		-		155		(1)
CDO/ABS		7,055		271		-		(1,623)		65		(65)		-		-		5,703		(393)
Total other bond securities		8,846		314		-		(1,662)		65		(83)		-		-		7,480		(418)
Equity securities available
for sale:
Common stock		-		-		-		-		-		-		-		-		-		-
Total equity securities
available for sale		-		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-		-
Mortgage and other loans
receivable		11		-		-		-		-		-		-		-		11		-
Other invested assets		332		1		-		(75)		-		(54)		-		-		204		8
Total	$	38,020	$	1,380	$	(321)	$	(1,275)	$	1,364	$	(1,485)	$	(14)	$	(3)	$	37,666	$	(410)
				Net																Changes in
				Realized and																Unrealized Gains
				Unrealized				Purchases,								Reclassified				(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross				to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
Liabilities:
Policyholder contract
deposits	$	2,289	$	441	$	-	$	303	$	-	$	-	$	-	$	-	$	3,033	$	(366)
Derivative liabilities, net:
Interest rate contracts		50		(8)		-		(4)		-		-		-		-		38		6
Foreign exchange
contracts		7		5		-		(1)		-		-		-		-		11		(4)
Equity contracts		(54)		(10)		-		6		-		-		-		-		(58)		10
Credit contracts		505		(81)		-		(95)		-		-		-		-		329		71
Other contracts		48		(10)		-		(53)		-		4		-		-		(11)		128
Total derivatives
liabilities, net(a)		556		(104)		-		(147)		-		4		-		-		309		211
Long-term debt(b)		183		4		-		(3)		-		(113)		-		-		71		(1)
Total	$	3,028	$	341	$	-	$	153	$	-	$	(109)	$	-	$	-	$	3,413	$	(156)

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

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

Changes in Level 3 recurring fair value measurements (Liabilities)

				Net																Changes in
				Realized and																Unrealized Gains
				Unrealized				Purchases,								Reclassified				(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross				to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,040	$	5	$	167	$	216	$	8	$	(32)	$	-	$	-	$	2,404	$	-
Non-U.S. governments		17		(9)		9		(9)		-		-		-		-		8		-
Corporate debt		1,133		(3)		20		(259)		886		(604)		-		-		1,173		-
RMBS		16,906		1,071		942		(2,763)		19		(39)		-		-		16,136		-
CMBS		2,040		35		11		(748)		20		(734)		-		-		624		-
CDO/ABS		7,835		(19)		155		743		-		(63)		-		-		8,651		-
Total bonds available
for sale		29,971		1,080		1,304		(2,820)		933		(1,472)		-		-		28,996		-
Other bond securities:
Corporate debt		17		3		-		10		-		(12)		-		-		18		1
RMBS		1,605		191		-		(313)		14		(33)		-		-		1,464		113
CMBS		155		4		-		24		9		(118)		-		-		74		5
CDO/ABS		5,703		841		-		(1,582)		-		(6)		-		-		4,956		362
Total other bond securities		7,480		1,039		-		(1,861)		23		(169)		-		-		6,512		481
Equity securities available
for sale:
Common stock		-		-		-		1		-		(1)		-		-		-		-
Total equity securities
available for sale		-		-		-		1		-		(1)		-		-		-		-
Other equity securities		-		-		-		-		-		-		-		-		-		-
Mortgage and other loans
receivable		11		-		-		(6)		-		-		-		-		5		-
Other invested assets		204		14		(6)		39		-		(1)		-		-		250		6
Total	$	37,666	$	2,133	$	1,298	$	(4,647)	$	956	$	(1,643)	$	-	$	-	$	35,763	$	487
				Net																Changes in
				Realized and																Unrealized Gains
				Unrealized				Purchases,								Reclassified				(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross				to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
Liabilities:
Policyholder contract deposits	$	3,033	$	807	$	-	$	296	$	-	$	-	$	-	$	-	$	4,136	$	(499)
Derivative liabilities, net:
Interest rate contracts		38		(5)		-		(11)		-		-		-		-		22		5
Foreign exchange
contracts		11		(2)		-		(9)		-		-		-		-		-		3
Equity contracts		(58)		(41)		-		17		-		-		-		-		(82)		35
Credit contracts		329		(62)		-		(5)		-		-		-		-		262		61
Other contracts		(11)		(74)		-		73		(3)		-		-		-		(15)		77
Total derivative
liabilities, net(a)		309		(184)		-		65		(3)		-		-		-		187		181
Long-term debt(b)		71		16		-		(87)		-		-		-		-		-		-
Total	$	3,413	$	639	$	-	$	274	$	(3)	$	-	$	-	$	-	$	4,323	$	(318)

				Net																Changes in
				Realized and																Unrealized Gains
				Unrealized				Purchases,								Reclassified				(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross				to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,124	$	5	$	-	$	61	$	2	$	(152)	$	-	$	-	$	2,040	$	-
Non-U.S. governments		32		(3)		(12)		7		1		(5)		-		(3)		17		-
Corporate debt		1,370		(13)		(42)		(111)		920		(977)		(14)		-		1,133		-
RMBS		16,537		970		(24)		(878)		330		(29)		-		-		16,906		-
CMBS		2,585		72		(132)		(323)		23		(185)		-		-		2,040		-
CDO/ABS		6,169		34		(111)		1,720		23		-		-		-		7,835		-
Total bonds available
for sale		28,817		1,065		(321)		476		1,299		(1,348)		(14)		(3)		29,971		-
Other bond securities:
Corporate debt		17		-		-		-		-		-		-		-		17		-
RMBS		1,581		43		-		(1)		-		(18)		-		-		1,605		(24)
CMBS		193		-		-		(38)		-		-		-		-		155		(1)
CDO/ABS		7,055		271		-		(1,623)		65		(65)		-		-		5,703		(393)
Total other bond securities		8,846		314		-		(1,662)		65		(83)		-		-		7,480		(418)
Equity securities available
for sale:
Common stock		-		-		-		-		-		-		-		-		-		-
Total equity securities
available for sale		-		-		-		-		-		-		-		-		-		-
Other equity securities		14		-		-		(14)		-		-		-		-		-		-
Mortgage and other loans
receivable		11		-		-		-		-		-		-		-		11		-
Other invested assets		332		1		-		(75)		-		(54)		-		-		204		8
Total	$	38,020	$	1,380	$	(321)	$	(1,275)	$	1,364	$	(1,485)	$	(14)	$	(3)	$	37,666	$	(410)
				Net																Changes in
				Realized and																Unrealized Gains
				Unrealized				Purchases,								Reclassified				(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross				to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		Divested		Held		End		Instruments Held
(in millions)		of Year		in Income		Income (Loss)		Settlements, Net		In		Out		Businesses		for Sale		of Year		at End of Year
Liabilities:
Policyholder contract
deposits	$	2,289	$	441	$	-	$	303	$	-	$	-	$	-	$	-	$	3,033	$	(366)
Derivative liabilities, net:
Interest rate contracts		50		(8)		-		(4)		-		-		-		-		38		6
Foreign exchange
contracts		7		5		-		(1)		-		-		-		-		11		(4)
Equity contracts		(54)		(10)		-		6		-		-		-		-		(58)		10
Credit contracts		505		(81)		-		(95)		-		-		-		-		329		71
Other contracts		48		(10)		-		(53)		-		4		-		-		(11)		128
Total derivatives
liabilities, net(a)		556		(104)		-		(147)		-		4		-		-		309		211
Long-term debt(b)		183		4		-		(3)		-		(113)		-		-		71		(1)
Total	$	3,028	$	341	$	-	$	153	$	-	$	(109)	$	-	$	-	$	3,413	$	(156)

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

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

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

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	Gains (Losses)			Income		Total
December 31, 2017
Assets:
Bonds available for sale	$	1,127	$	(49)	$	2	$	1,080
Other bond securities		308		-		731		1,039
Equity securities available for sale		-		-		-		-
Other equity securities		-		-		-		-
Other invested assets		9		6		(1)		14
December 31, 2016
Assets:
Bonds available for sale	$	1,180	$	(118)	$	3	$	1,065
Other bond securities		110		44		160		314
Equity securities available for sale		-		-		-		-
Other equity securities		-		-		-		-
Other invested assets		13		39		(51)		1
		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
December 31, 2017
Liabilities:
Policyholder contract deposits		-		807		-		807
Derivative liabilities, net		-		(17)		(167)		(184)
Long-term debt		-		-		16		16
December 31, 2016
Liabilities:
Policyholder contract deposits		-		441		-		441
Derivative liabilities, net		-		(8)		(96)		(104)
Long-term debt		-		-		4		4

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

								Purchases, Sales,
						Issuances and		Issuances and
(in millions)		Purchases		Sales		Settlements(a)		Settlements, Net(a)
December 31, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	286	$	(16)	$	(54)	$	216
Non-U.S. governments		9		(1)		(17)		(9)
Corporate debt		36		(59)		(236)		(259)
RMBS		1,199		(260)		(3,702)		(2,763)
CMBS		75		(146)		(677)		(748)
CDO/ABS		2,099		(243)		(1,113)		743
Total bonds available for sale		3,704		(725)		(5,799)		(2,820)
Other bond securities:
Corporate debt		11		-		(1)		10
RMBS		167		(218)		(262)		(313)
CMBS		42		(11)		(7)		24
CDO/ABS		9		(65)		(1,526)		(1,582)
Total other bond securities		229		(294)		(1,796)		(1,861)
Equity securities available for sale		13		-		(12)		1
Other equity securities		-		-		-		-
Mortgage and other loans receivable		-		(6)		-		(6)
Other invested assets		107		(46)		(22)		39
Total assets	$	4,053	$	(1,071)	$	(7,629)	$	(4,647)
Liabilities:
Policyholder contract deposits	$	-	$	344	$	(48)	$	296
Derivative liabilities, net		(4)		-		69		65
Long-term debt(b)		-		-		(87)		(87)
Total liabilities	$	(4)	$	344	$	(66)	$	274
December 31, 2016
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	164	$	(8)	$	(95)	$	61
Non-U.S. governments		13		-		(6)		7
Corporate debt		29		(25)		(115)		(111)
RMBS		2,635		(81)		(3,432)		(878)
CMBS		156		(98)		(381)		(323)
CDO/ABS		2,460		(99)		(641)		1,720
Total bonds available for sale		5,457		(311)		(4,670)		476
Other bond securities:
Corporate debt		-		-		-		-
RMBS		343		(104)		(240)		(1)
CMBS		53		(86)		(5)		(38)
CDO/ABS		69		(458)		(1,234)		(1,623)
Total other bond securities		465		(648)		(1,479)		(1,662)
Equity securities available for sale		-		-		-		-
Other equity securities		14		-		(28)		(14)
Mortgage and other loans receivable		1		(2)		1		-
Other invested assets		37		(10)		(102)		(75)
Total assets	$	5,974	$	(971)	$	(6,278)	$	(1,275)
Liabilities:
Policyholder contract deposits	$	-	$	437	$	(134)	$	303
Derivative liabilities, net		(6)		-		(141)		(147)
Long-term debt(b)		-		-		(3)		(3)
Total liabilities	$	(6)	$	437	$	(278)	$	153

(a)There were no issuances during the years ended December 31,2017 and 2016.

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

Significant unobservable inputs used for recurring fair value measurements

		Fair Value  at
		December 31,	Valuation		Range
(in millions)		2017	Technique	Unobservable Input(b)	(Weighted Average)
Assets:
Obligations of states,
municipalities and
political subdivisions	$	1,620	Discounted cash flow	Yield	3.55% - 4.32% (3.94%)
Corporate debt		1,086	Discounted cash flow	Yield	3.26% - 12.22% (7.74%)
RMBS(a)		16,156	Discounted cash flow	Constant prepayment rate	3.97% - 13.42% (8.69%)
				Loss severity	43.15% - 77.15% (60.15%)
				Constant default rate	3.31% - 8.30% (5.80%)
				Yield	2.73% - 5.19% (3.96%)
CDO/ABS(a)		5,254	Discounted cash flow	Yield	3.38% - 4.78% (4.08%)
CMBS		487	Discounted cash flow	Yield	2.22% - 7.77% (4.99%)
Liabilities:
Embedded derivatives
within Policyholder
contract deposits:
GMWB		1,994	Discounted cash flow	Equity volatility	6.45% - 51.25%
				Base lapse rate	0.35% - 14.00%
				Dynamic lapse multiplier	30.00% - 170.00%
				Mortality multiplier(c)	40.00% - 153.00%
				Utilization	90.00% - 100.00%
				Equity / interest-rate correlation	20.00% - 40.00%
Index Annuities		1,603	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier(c)	42.00% - 162.00%
				Option Budget	1.00% - 4.00%
Indexed Life		515	Discounted cash flow	Base lapse rate	2.00% - 19.00%
				Mortality rate	0.00% - 40.00%

		Fair Value  at
		December 31,	Valuation		Range
(in millions)		2016	Technique	Unobservable Input(b)	(Weighted Average)
Assets:
Obligations of states,
municipalities and
political subdivisions	$	1,248	Discounted cash flow	Yield	4.12% - 4.91% (4.52%)
Corporate debt		498	Discounted cash flow	Yield	3.41% - 6.38% (4.90%)
RMBS(a)		17,412	Discounted cash flow	Constant prepayment rate	3.95% - 6.54% (5.25%)
				Loss severity	47.51% - 80.98% (64.24%)
				Constant default rate	3.28% - 8.64% (5.96%)
				Yield	3.28% - 5.87% (4.57%)
CDO/ABS(a)		4,368	Discounted cash flow	Yield	3.67% - 5.85% (4.76%)
CMBS		1,511	Discounted cash flow	Yield	0.48% - 10.21% (5.34%)
Liabilities:
Embedded derivatives
within Policyholder
contract deposits:
GMWB		1,777	Discounted cash flow	Equity volatility	13.00% - 50.00%
				Base lapse rate	0.50% - 20.00%
				Dynamic lapse multiplier	30.00% - 170.00%
				Mortality multiplier(c)	42.00% - 161.00%
				Utilization	100.00%
				Equity / interest rate correlation	20.00% - 40.00%
Index Annuities		859	Discounted cash flow	Lapse rate	1.00% - 66.00%
				Mortality multiplier(c)	101.00% - 103.00%
				Option Budget	1.00% - 4.00%
Indexed Life		381	Discounted cash flow	Base lapse rate	2.00% - 19.00%
				Mortality rate	0.00% - 40.00%

(a) Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the 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.

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

		December 31, 2017				December 31, 2016
			Fair Value Using Net Asset Value Per Share (or its equivalent)				Fair Value Using Net Asset Value Per Share (or its equivalent)
					Unfunded				Unfunded
(in millions)	Investment Category Includes				Commitments				Commitments
Investment Category
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	1,243	$	706	$	1,424	$	750
Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		210		187		258		208
Venture capital	Early-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company		134		73		137		31
Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		113		42		123		44
Other	Includes multi-strategy, mezzanine, and other strategies		428		219		312		215
Total private equity funds			2,128		1,227		2,254		1,248
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		1,128		-		1,453		9
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,233		-		1,429		-
Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		1,011		-		992		-
Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		266		8		416		8
Other	Includes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments		231		4		197		14
Total hedge funds			3,869		12		4,487		31
Total		$	5,997	$	1,239	$	6,741	$	1,279

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

Years Ended December 31,	Gain (Loss)
(in millions)		2017		2016		2015
Assets:
Bond and equity securities	$	1,646	$	447	$	616
Alternative investments(a)		509		28		36
Other, including Short-term investments		1		-		2
Liabilities:
Long-term debt(b)		(49)		(9)		(38)
Other liabilities		(2)		-		(3)
Total gain	$	2,105	$	466	$	613

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

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

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

	December 31, 2017						December 31, 2016
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	5	$	5	$	-	$	11	$	8	$	3
Liabilities:
Long-term debt*	$	2,888	$	2,280	$	608	$	3,428	$	2,628	$	800

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

Fair value assets measured on nonrecurring basis and impairment charges

		Assets at Fair Value							Impairment Charges
		Non-Recurring Basis							December 31,
(in millions)		Level 1		Level 2		Level 3		Total		2017		2016		2015
December 31, 2017
Other investments	$	-	$	-	$	55	$	55	$	77	$	76	$	189
Investments in life settlements		-		-		-		-		360		397		540
Other assets*		-		-		-		-		157		19		80
Total	$	-	$	-	$	55	$	55	$	594	$	492	$	809
December 31, 2016
Other investments	$	-	$	-	$	364	$	364
Investments in life settlements		-		-		736		736
Other assets		-		-		2		2
Total	$	-	$	-	$	1,102	$	1,102

*Impairments include $35 million related to other assets that were sold in 2017.

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

	Estimated Fair Value									Carrying
(in millions)		Level 1		Level 2		Level 3		Total		Value
December 31, 2017
Assets:
Mortgage and other loans receivable	$	-	$	117	$	37,644	$	37,761	$	37,018
Other invested assets		-		590		6		596		593
Short-term investments		-		7,771		-		7,771		7,771
Cash		2,362		-		-		2,362		2,362
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		387		121,809		122,196		114,326
Other liabilities		-		4,494		-		4,494		4,494
Long-term debt		-		23,930		4,313		28,243		28,752
December 31, 2016
Assets:
Mortgage and other loans receivable	$	-	$	161	$	33,575	$	33,736	$	33,229
Other invested assets		-		955		2,053		3,008		3,474
Short-term investments		-		8,961		-		8,961		8,961
Cash		1,868		-		-		1,868		1,868
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		382		121,742		122,124		112,705
Other liabilities		-		4,196		-		4,196		4,196
Long-term debt		-		23,117		3,333		26,450		27,484