FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2018

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

March 31, 2018							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting(a)	Collateral			Total
Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	-	$	2,833	$	-	$	-	$	-	$	2,833
Obligations of states, municipalities and political subdivisions		-		15,550		2,261		-		-		17,811
Non-U.S. governments		25		15,689		9		-		-		15,723
Corporate debt		-		129,468		1,871		-		-		131,339
RMBS		-		20,050		15,839		-		-		35,889
CMBS		-		13,025		584		-		-		13,609
CDO/ABS		-		8,864		7,846		-		-		16,710
Total bonds available for sale		25		205,479		28,410		-		-		233,914
Other bond securities:
U.S. government and government sponsored entities		594		2,183		-		-		-		2,777
Non-U.S. governments		-		54		-		-		-		54
Corporate debt		-		1,784		19		-		-		1,803
RMBS		-		391		1,427		-		-		1,818
CMBS		-		493		73		-		-		566
CDO/ABS		-		603		4,776		-		-		5,379
Total other bond securities		594		5,508		6,295		-		-		12,397
Other equity securities(b)		1,716		6		3		-		-		1,725
Mortgage and other loans receivable		-		-		-		-		-		-
Other invested assets(c)		5		1		292		-		-		298
Derivative assets:
Interest rate contracts		-		2,549		-		-		-		2,549
Foreign exchange contracts		-		792		3		-		-		795
Equity contracts		48		142		78		-		-		268
Credit contracts		-		-		2		-		-		2
Other contracts		-		-		17		-		-		17
Counterparty netting and cash collateral		-		-		-		(1,589)		(1,268)		(2,857)
Total derivative assets		48		3,483		100		(1,589)		(1,268)		774
Short-term investments		2,611		483		-		-		-		3,094
Separate account assets		85,362		5,227		-		-		-		90,589
Total	$	90,361	$	220,187	$	35,100	$	(1,589)	$	(1,268)	$	342,791
Liabilities:
Policyholder contract deposits	$	-	$	15	$	3,696	$	-	$	-	$	3,711
Derivative liabilities:
Interest rate contracts		1		2,185		17		-		-		2,203
Foreign exchange contracts		-		1,213		4		-		-		1,217
Equity contracts		-		13		-		-		-		13
Credit contracts		-		12		252		-		-		264
Other contracts		-		-		5		-		-		5
Counterparty netting and cash collateral		-		-		-		(1,589)		(980)		(2,569)
Total derivative liabilities		1		3,423		278		(1,589)		(980)		1,133
Long-term debt		-		2,820		-		-		-		2,820
Other liabilities		25		-		-		-		-		25
Total	$	26	$	6,258	$	3,974	$	(1,589)	$	(980)	$	7,689

December 31, 2017							Counterparty		Cash
(in millions)		Level 1		Level 2		Level 3		Netting(a)		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
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(c)		-		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
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

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

(b)As a result of the adoption of the Recognition and Measurement of Financial Assets and Financial Liabilities standard on January 1, 2018 (Financial Instruments Recognition and Measurement Standard), equity securities are no longer classified and accounted for as available for sale securities.

(c) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $5.9 billion and $6.0 billion as of March 31,2018 and December 31,2017, respectively.

Changes in Level 3 recurring fair value measurements (Assets)

				Net																Changes in
				Realized and				Purchases,												Unrealized Gains
				Unrealized				Sales,								Reclassified				(Losses) Included
		Fair Value		Gains (Losses)		Other		Issuances and		Gross		Gross				to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		Divested		Held for		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		in		out		Businesses		Sale		of Period		at End of Period
Three Months Ended March 31, 2018
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,404	$	1	$	(75)	$	(69)	$	-	$	-	$	-	$	-	$	2,261	$	-
Non-U.S. governments		8		(4)		4		1		-		-		-		-		9		-
Corporate debt		1,173		(57)		10		248		565		(68)		-		-		1,871		-
RMBS		16,136		266		5		(536)		-		(32)		-		-		15,839		-
CMBS		624		6		(17)		(23)		-		(6)		-		-		584		-
CDO/ABS		8,651		8		(88)		(710)		-		(15)		-		-		7,846		-
Total bonds available for sale		28,996		220		(161)		(1,089)		565		(121)		-		-		28,410		-
Other bond securities:
Corporate debt		18		1		-		-		-		-		-		-		19		-
RMBS		1,464		39		-		(76)		-		-		-		-		1,427		51
CMBS		74		(1)		-		(1)		1		-		-		-		73		(1)
CDO/ABS		4,956		89		-		(260)		-		(9)		-		-		4,776		8
Total other bond securities		6,512		128		-		(337)		1		(9)		-		-		6,295		58
Other equity securities(a)		-		-		-		3		-		-		-		-		3		2
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-		-		-
Other invested assets		250		23		1		18		-		-		-		-		292		30
Total	$	35,763	$	371	$	(160)	$	(1,410)	$	566	$	(130)	$	-	$	-	$	35,000	$	90
				Net																Changes in
				Realized and				Purchases,												Unrealized Gains
				Unrealized				Sales,								Reclassified				(Losses) Included
		Fair Value		(Gains) Losses		Other		Issuances and		Gross		Gross				to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		Divested		Held for		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		in		out		Businesses		Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,136	$	(506)	$	-	$	66	$	-	$	-	$	-	$	-	$	3,696	$	604
Derivative liabilities, net:
Interest rate contracts		22		(3)		-		(2)		-		-		-		-		17		3
Foreign exchange contracts		-		(10)		-		11		-		-		-		-		1		3
Equity contracts		(82)		4		-		-		-		-		-		-		(78)		(4)
Credit contracts		262		(10)		-		(2)		-		-		-		-		250		10
Other contracts		(15)		(17)		-		20		-		-		-		-		(12)		17
Total derivative liabilities, net(b)		187		(36)		-		27		-		-		-		-		178		29
Long-term debt(c)		-		-		-		-		-		-		-		-		-		-
Total	$	4,323	$	(542)	$	-	$	93	$	-	$	-	$	-	$	-	$	3,874	$	633
				Net																Changes in
				Realized and				Purchases,												Unrealized Gains
				Unrealized				Sales,								Reclassified				(Losses) Included
		Fair Value		Gains (Losses)		Other		Issuances and		Gross		Gross				to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		Divested		Held for		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		in		out		Businesses		Sale		of Period		at End of Period
Three Months Ended March 31, 2017
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,040	$	2	$	(4)	$	21	$	-	$	(18)	$	-	$	-	$	2,041	$	-
Non-U.S. governments		17		-		-		(1)		-		-		-		-		16		-
Corporate debt		1,133		(4)		(3)		(13)		136		(170)		-		-		1,079		-
RMBS		16,906		289		151		(858)		8		(9)		-		-		16,487		-
CMBS		2,040		5		5		(348)		-		(699)		-		-		1,003		-
CDO/ABS		7,835		6		48		(102)		-		(32)		-		-		7,755		-
Total bonds available for sale		29,971		298		197		(1,301)		144		(928)		-		-		28,381		-
Other bond securities:
Corporate debt		17		1		-		-		-		-		-		-		18		1
RMBS		1,605		55		-		(125)		-		(33)		-		-		1,502		24
CMBS		155		-		-		(17)		-		(73)		-		-		65		1
CDO/ABS		5,703		173		-		(368)		-		-		-		-		5,508		70
Total other bond securities		7,480		229		-		(510)		-		(106)		-		-		7,093		96
Equity securities available for sale:
Common stock		-		-		-		8		-		-		-		-		8		-
Total equity securities available for sale		-		-		-		8		-		-		-		-		8		-
Other equity securities		-		-		-		-		-		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		-		11		-
Other invested assets		204		(1)		(5)		(17)		-		(1)		-		-		180		-
Total	$	37,666	$	526	$	192	$	(1,820)	$	144	$	(1,035)	$	-	$	-	$	35,673	$	96
				Net																Changes in
				Realized and				Purchases,												Unrealized Gains
				Unrealized				Sales,								Reclassified				(Losses) Included
		Fair Value		(Gains) Losses		Other		Issuances and		Gross		Gross				to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		Divested		Held for		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		in		out		Businesses		Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,033	$	(45)	$	-	$	84	$	-	$	-	$	-	$	-	$	3,072	$	98
Derivative liabilities, net:
Interest rate contracts		38		(3)		-		(3)		-		-		-		-		32		3
Foreign exchange contracts		11		-		-		(5)		-		-		-		-		6		-
Equity contracts		(58)		(11)		-		7		-		-		-		-		(62)		5
Credit contracts		329		(15)		-		1		-		-		-		-		315		11
Other contracts		(11)		(19)		-		19		-		-		-		-		(11)		(1)
Total derivative liabilities, net(b)		309		(48)		-		19		-		-		-		-		280		18
Long-term debt(c)		71		12		-		(25)		-		-		-		-		58		(2)
Total	$	3,413	$	(81)	$	-	$	78	$	-	$	-	$	-	$	-	$	3,410	$	114

(a) As a result of the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, equity securities are no longer classified and accounted for as available for sale securities.

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

(c) 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				Purchases,												Unrealized Gains
				Unrealized				Sales,								Reclassified				(Losses) Included
		Fair Value		Gains (Losses)		Other		Issuances and		Gross		Gross				to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		Divested		Held for		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		in		out		Businesses		Sale		of Period		at End of Period
Three Months Ended March 31, 2018
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,404	$	1	$	(75)	$	(69)	$	-	$	-	$	-	$	-	$	2,261	$	-
Non-U.S. governments		8		(4)		4		1		-		-		-		-		9		-
Corporate debt		1,173		(57)		10		248		565		(68)		-		-		1,871		-
RMBS		16,136		266		5		(536)		-		(32)		-		-		15,839		-
CMBS		624		6		(17)		(23)		-		(6)		-		-		584		-
CDO/ABS		8,651		8		(88)		(710)		-		(15)		-		-		7,846		-
Total bonds available for sale		28,996		220		(161)		(1,089)		565		(121)		-		-		28,410		-
Other bond securities:
Corporate debt		18		1		-		-		-		-		-		-		19		-
RMBS		1,464		39		-		(76)		-		-		-		-		1,427		51
CMBS		74		(1)		-		(1)		1		-		-		-		73		(1)
CDO/ABS		4,956		89		-		(260)		-		(9)		-		-		4,776		8
Total other bond securities		6,512		128		-		(337)		1		(9)		-		-		6,295		58
Other equity securities(a)		-		-		-		3		-		-		-		-		3		2
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-		-		-
Other invested assets		250		23		1		18		-		-		-		-		292		30
Total	$	35,763	$	371	$	(160)	$	(1,410)	$	566	$	(130)	$	-	$	-	$	35,000	$	90
				Net																Changes in
				Realized and				Purchases,												Unrealized Gains
				Unrealized				Sales,								Reclassified				(Losses) Included
		Fair Value		(Gains) Losses		Other		Issuances and		Gross		Gross				to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		Divested		Held for		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		in		out		Businesses		Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,136	$	(506)	$	-	$	66	$	-	$	-	$	-	$	-	$	3,696	$	604
Derivative liabilities, net:
Interest rate contracts		22		(3)		-		(2)		-		-		-		-		17		3
Foreign exchange contracts		-		(10)		-		11		-		-		-		-		1		3
Equity contracts		(82)		4		-		-		-		-		-		-		(78)		(4)
Credit contracts		262		(10)		-		(2)		-		-		-		-		250		10
Other contracts		(15)		(17)		-		20		-		-		-		-		(12)		17
Total derivative liabilities, net(b)		187		(36)		-		27		-		-		-		-		178		29
Long-term debt(c)		-		-		-		-		-		-		-		-		-		-
Total	$	4,323	$	(542)	$	-	$	93	$	-	$	-	$	-	$	-	$	3,874	$	633
				Net																Changes in
				Realized and				Purchases,												Unrealized Gains
				Unrealized				Sales,								Reclassified				(Losses) Included
		Fair Value		Gains (Losses)		Other		Issuances and		Gross		Gross				to Assets		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		Divested		Held for		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		in		out		Businesses		Sale		of Period		at End of Period
Three Months Ended March 31, 2017
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,040	$	2	$	(4)	$	21	$	-	$	(18)	$	-	$	-	$	2,041	$	-
Non-U.S. governments		17		-		-		(1)		-		-		-		-		16		-
Corporate debt		1,133		(4)		(3)		(13)		136		(170)		-		-		1,079		-
RMBS		16,906		289		151		(858)		8		(9)		-		-		16,487		-
CMBS		2,040		5		5		(348)		-		(699)		-		-		1,003		-
CDO/ABS		7,835		6		48		(102)		-		(32)		-		-		7,755		-
Total bonds available for sale		29,971		298		197		(1,301)		144		(928)		-		-		28,381		-
Other bond securities:
Corporate debt		17		1		-		-		-		-		-		-		18		1
RMBS		1,605		55		-		(125)		-		(33)		-		-		1,502		24
CMBS		155		-		-		(17)		-		(73)		-		-		65		1
CDO/ABS		5,703		173		-		(368)		-		-		-		-		5,508		70
Total other bond securities		7,480		229		-		(510)		-		(106)		-		-		7,093		96
Equity securities available for sale:
Common stock		-		-		-		8		-		-		-		-		8		-
Total equity securities available for sale		-		-		-		8		-		-		-		-		8		-
Other equity securities		-		-		-		-		-		-		-		-		-		-
Mortgage and other loans receivable		11		-		-		-		-		-		-		-		11		-
Other invested assets		204		(1)		(5)		(17)		-		(1)		-		-		180		-
Total	$	37,666	$	526	$	192	$	(1,820)	$	144	$	(1,035)	$	-	$	-	$	35,673	$	96
				Net																Changes in
				Realized and				Purchases,												Unrealized Gains
				Unrealized				Sales,								Reclassified				(Losses) Included
		Fair Value		(Gains) Losses		Other		Issuances and		Gross		Gross				to Liabilities		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		Divested		Held for		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		in		out		Businesses		Sale		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,033	$	(45)	$	-	$	84	$	-	$	-	$	-	$	-	$	3,072	$	98
Derivative liabilities, net:
Interest rate contracts		38		(3)		-		(3)		-		-		-		-		32		3
Foreign exchange contracts		11		-		-		(5)		-		-		-		-		6		-
Equity contracts		(58)		(11)		-		7		-		-		-		-		(62)		5
Credit contracts		329		(15)		-		1		-		-		-		-		315		11
Other contracts		(11)		(19)		-		19		-		-		-		-		(11)		(1)
Total derivative liabilities, net(b)		309		(48)		-		19		-		-		-		-		280		18
Long-term debt(c)		71		12		-		(25)		-		-		-		-		58		(2)
Total	$	3,413	$	(81)	$	-	$	78	$	-	$	-	$	-	$	-	$	3,410	$	114

(a) As a result of the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, equity securities are no longer classified and accounted for as available for sale securities.

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

(c) 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 March 31, 2018
Bonds available for sale	$	282	$	(62)	$	-	$	220
Other bond securities		23		(4)		109		128
Other equity securities		-		-		-		-
Other invested assets		25		-		(2)		23
Three Months Ended March 31, 2017
Bonds available for sale	$	298	$	-	$	-	$	298
Other bond securities		75		6		148		229
Other equity securities		-		-		-		-
Other invested assets		-		(3)		2		(1)
		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
Three Months Ended March 31, 2018
Policyholder contract deposits		-		(506)		-		(506)
Derivative liabilities, net		-		1		(37)		(36)
Long-term debt		-		-		-		-
Three Months Ended March 31, 2017
Policyholder contract deposits		-		(45)		-		(45)
Derivative liabilities, net		-		(7)		(41)		(48)
Long-term debt		-		-		12		12

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

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements		Settlements, Net(a)
Three Months Ended March 31, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	15	$	-	$	(84)	$	(69)
Non-U.S. governments		2		-		(1)		1
Corporate debt		254		(3)		(3)		248
RMBS		233		(5)		(764)		(536)
CMBS		12		-		(35)		(23)
CDO/ABS		495		(851)		(354)		(710)
Total bonds available for sale		1,011		(859)		(1,241)		(1,089)
Other bond securities:
RMBS		1		(5)		(72)		(76)
CMBS		-		-		(1)		(1)
CDO/ABS		-		(4)		(256)		(260)
Total other bond securities		1		(9)		(329)		(337)
Other equity securities		3		-		-		3
Mortgage and other loans receivable		-		(5)		-		(5)
Other invested assets		22		-		(4)		18
Total assets	$	1,037	$	(873)	$	(1,574)	$	(1,410)
Liabilities:
Policyholder contract deposits	$	-	$	112	$	(46)	$	66
Derivative liabilities, net		(7)		-		34		27
Long-term debt(b)		-		-		-		-
Total liabilities	$	(7)	$	112	$	(12)	$	93
Three Months Ended March 31, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	37	$	(5)	$	(11)	$	21
Non-U.S. governments		-		(1)		-		(1)
Corporate debt		-		-		(13)		(13)
RMBS		339		(244)		(953)		(858)
CMBS		39		(67)		(320)		(348)
CDO/ABS		13		-		(115)		(102)
Total bonds available for sale		428		(317)		(1,412)		(1,301)
Other bond securities:
RMBS		98		(167)		(56)		(125)
CMBS		-		(11)		(6)		(17)
CDO/ABS		-		-		(368)		(368)
Total other bond securities		98		(178)		(430)		(510)
Equity securities available for sale		8		-		-		8
Other equity securities		-		-		-		-
Mortgage and other loans receivable		-		-		-		-
Other invested assets		1		-		(18)		(17)
Total assets	$	535	$	(495)	$	(1,860)	$	(1,820)
Liabilities:
Policyholder contract deposits	$	-	$	70	$	14	$	84
Derivative liabilities, net		-		-		19		19
Long-term debt(b)		-		-		(25)		(25)
Total liabilities	$	-	$	70	$	8	$	78

(a)There were no issuances during thethree-month periods ended March 31,2018 and 2017, respectively.

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

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	March 31,		Valuation		Range
(in millions)	2018		Technique	Unobservable Input(b)	(Weighted Average)
Assets:
Obligations of states, municipalities
and political subdivisions	$	1,571	Discounted cash flow	Yield	3.82% - 4.51% (4.16%)
Corporate debt		1,638	Discounted cash flow	Yield	4.74% - 13.88% (9.31%)
RMBS(a)		15,679	Discounted cash flow	Constant prepayment rate	3.71% - 12.82% (8.27%)
				Loss severity	40.73% - 75.96% (58.34%)
				Constant default rate	3.23% - 8.25% (5.74%)
				Yield	2.99% - 5.33% (4.16%)
CDO/ABS(a)		5,200	Discounted cash flow	Yield	3.69% - 4.99% (4.34%)
CMBS		456	Discounted cash flow	Yield	2.82% - 6.34% (4.58%)
Liabilities:
Embedded derivatives within
Policyholder contract deposits:
Guaranteed minimum withdrawal benefits (GMWB)		1,601	Discounted cash flow	Equity volatility	6.45% - 50.55%
				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		1,517	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier(c)	42.00% - 162.00%
				Option Budget	1.00% - 4.00%
Indexed Life		554	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)		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%

(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

		March 31, 2018				December 31, 2017
			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	$	1,261	$	719	$	1,243	$	706
Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		238		166		210		187
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		145		133		134		73
Distressed	Securities of companies that are in default, under bankruptcy protection, or troubled		109		43		113		42
Other	Includes multi-strategy, mezzanine and other strategies		492		198		428		219
Total private equity funds			2,245		1,259		2,128		1,227
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		1,074		-		1,128		-
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,196		-		1,233		-
Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		1,045		-		1,011		-
Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		170		8		266		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		204		3		231		4
Total hedge funds			3,689		11		3,869		12
Total		$	5,934	$	1,270	$	5,997	$	1,239

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

Three Months Ended March 31,	Gain (Loss)
(in millions)		2018		2017
Assets:
Bond and equity securities	$	23	$	349
Alternative investments(a)		128		181
Liabilities:
Long-term debt(b)		52		(15)
Total gain	$	203	$	515

(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

	March 31, 2018						December 31, 2017
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Assets:
Mortgage and other loans receivable	$	-	$	-	$	-	$	5	$	5	$	-
Liabilities:
Long-term debt*	$	2,820	$	2,311	$	509	$	2,888	$	2,280	$	608

*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 March 31,
(in millions)		Level 1		Level 2		Level 3		Total		2018		2017
March 31, 2018
Other investments	$	-	$	-	$	95	$	95	$	28	$	17
Investments in life settlements		-		-		-		-		-		41
Other assets*		-		-		-		-		-		35
Total	$	-	$	-	$	95	$	95	$	28	$	93
December 31, 2017
Other investments	$	-	$	-	$	55	$	55
Investments in life settlements		-		-		-		-
Other assets		-		-		-		-
Total	$	-	$	-	$	55	$	55

* Impairments in 2017 included $35 million related to other assets of $179 million that were reclassified to assets held for sale.

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
March 31, 2018
Assets:
Mortgage and other loans receivable	$	-	$	114	$	38,558	$	38,672	$	38,540
Other invested assets		-		764		6		770		767
Short-term investments		-		11,522		-		11,522		11,522
Cash		2,103		-		-		2,103		2,103
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		373		121,648		122,021		117,265
Other liabilities		-		3,210		-		3,210		3,210
Long-term debt		-		24,488		4,507		28,995		30,799
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