XML 92 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT
 9 Months Ended
Sep. 30, 2018
Schedule II Condensed Financial Information of Registrant - Parent Company Only  
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

16. Information Provided in Connection with Outstanding Debt and Preference Shares

The following Condensed Consolidating Financial Statements reflect the results of Validus Holdings, Ltd. and AIG Life Holdings, Inc. (AIGLH), each a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of the senior notes and Preference Shares of Validus and all outstanding debt of AIGLH.

Condensed Consolidating Balance Sheets

American
InternationalValidus Reclassifications
Group, Inc.Holdings, OtherandConsolidated
(in millions)(As Guarantor)Ltd.AIGLHSubsidiariesEliminationsAIG
September 30, 2018
Assets:
Short-term investments(a) $ 1,459 $ 2 $ - $ 9,150 $ (1,748) $ 8,863
Other investments(b)4,01613-303,171-307,200
Total investments5,47515-312,321(1,748)316,063
Cash36632,669-2,741
Loans to subsidiaries(c)34,713--572(35,285)-
Investment in consolidated subsidiaries(c)36,7274,12027,038-(67,885)-
Other assets, including deferred income taxes(d)15,9962,289170169,420(1,819)186,056
Total assets $ 92,914 $ 6,490 $ 27,211 $ 484,982 $ (106,737) $ 504,860
Liabilities:
Insurance liabilities $ - $ - $ - $ 291,391 $ - $ 291,391
Long-term debt22,45971064310,782-34,594
Other liabilities, including intercompany balances(b)11,296416132111,419(3,565)119,698
Loans from subsidiaries(c)573--34,713(35,286)-
Total liabilities34,3281,126775448,305(38,851)445,683
Total AIG shareholders’ equity58,5865,36426,43636,086(67,886)58,586
Non-redeemable noncontrolling interests---591-591
Total equity58,5865,36426,43636,677(67,886)59,177
Total liabilities and equity $ 92,914 $ 6,490 $ 27,211 $ 484,982 $ (106,737) $ 504,860
December 31, 2017
Assets:
Short-term investments(a)$2,541$-$-$11,559$(3,714)$10,386
Other investments(b)6,004--305,902-311,906
Total investments8,545--317,461(3,714)322,292
Cash3-202,339-2,362
Loans to subsidiaries(c)35,004--517(35,521)-
Investment in consolidated subsidiaries(c)40,135-30,359-(70,494)-
Other assets, including deferred income taxes(d)16,016-170159,594(2,133)173,647
Total assets$99,703$-$30,549$479,911$(111,862)$498,301
Liabilities:
Insurance liabilities$-$-$-$282,105$-$282,105
Long-term debt21,557-6429,441-31,640
Other liabilities, including intercompany balances(b)12,458-143112,275(6,028)118,848
Loans from subsidiaries(c)517--35,004(35,521)-
Total liabilities34,532-785438,825(41,549)432,593
Total AIG shareholders’ equity65,171-29,76440,549(70,313)65,171
Non-redeemable noncontrolling interests---537-537
Total equity65,171-29,76441,086(70,313)65,708
Total liabilities and equity$99,703$-$30,549$479,911$(111,862)$498,301

(a) At September 30, 2018, includes restricted cash of $1 million and $27 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively. At December 31, 2017, includes restricted cash of $4 million and $54 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively.

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

(c) Eliminated in consolidation.

(d) At September 30, 2018, includes restricted cash of $1 million and $353 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively. At December 31, 2017, includes restricted cash of $1 million and $316 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively.

Condensed Consolidating Statements of Income

American
InternationalValidus Reclassifications
Group, Inc.Holdings, OtherandConsolidated
(in millions)(As Guarantor)Ltd.AIGLHSubsidiariesEliminationsAIG
Three Months Ended September 30, 2018
Revenues:
Equity in earnings of consolidated subsidiaries*$(989)$(93)$1,316$-$(234)$-
Other income18323111,412(133)11,486
Total revenues(806)(70)1,31711,412(367)11,486
Expenses:
Interest expense244101263(3)326
Loss on extinguishment of debt---1-1
Other expenses1322112,5133812,686
Total expenses376121312,5773513,013
Income (loss) from continuing operations before income
tax expense (benefit)(1,182)(82)1,304(1,165)(402)(1,527)
Income tax expense (benefit)38-(2)(343)-(307)
Income (loss) from continuing operations(1,220)(82)1,306(822)(402)(1,220)
Loss from discontinued operations,
net of income taxes(39)----(39)
Net income (loss)(1,259)(82)1,306(822)(402)(1,259)
Less:
Net income (loss) from continuing operations
attributable to noncontrolling interests------
Net income (loss) attributable to AIG$(1,259)$(82)$1,306$(822)$(402)$(1,259)
Three Months Ended September 30, 2017
Revenues:
Equity in earnings of consolidated subsidiaries*$(2,098)$-$1,138$-$960$-
Other income225--11,4557111,751
Total revenues(1,873)-1,13811,4551,03111,751
Expenses:
Interest expense236-1244(2)290
(Gain) loss on extinguishment of debt2--(1)-1
Other expenses177-114,154(69)14,263
Total expenses415-1314,197(71)14,554
Income (loss) from continuing operations before income
tax benefit(2,288)-1,125(2,742)1,102(2,803)
Income tax benefit(549)-(4)(538)-(1,091)
Income (loss) from continuing operations(1,739)-1,129(2,204)1,102(1,712)
Loss from discontinued operations,
net of income taxes---(1)-(1)
Net income (loss)(1,739)-1,129(2,205)1,102(1,713)
Less:
Net income from continuing operations
attributable to noncontrolling interests---26-26
Net income (loss) attributable to AIG$(1,739)$-$1,129$(2,231)$1,102$(1,739)
American
InternationalValidus Reclassifications
Group, Inc.Holdings, OtherandConsolidated
(in millions)(As Guarantor)Ltd.AIGLHSubsidiariesEliminationsAIG
Nine Months Ended September 30, 2018
Revenues:
Equity in earnings of consolidated subsidiaries*$889$(93)$2,497$-$(3,293)$-
Other income75023134,103(48)34,829
Total revenues1,639(70)2,49834,103(3,341)34,829
Expenses:
Interest expense7101037154(9)902
Loss on extinguishment of debt---10-10
Other expenses6432232,357(39)32,965
Total expenses1,353123932,521(48)33,877
Income (loss) from continuing operations before income
tax expense (benefit)286(82)2,4591,582(3,293)952
Income tax expense (benefit)(370)--661-291
Income (loss) from continuing operations656(82)2,459921(3,293)661
Loss from discontinued operations,
net of income taxes(40)----(40)
Net income (loss)616(82)2,459921(3,293)621
Less:
Net income from continuing operations
attributable to noncontrolling interests---5-5
Net income (loss) attributable to AIG$616$(82)$2,459$916$(3,293)$616
Nine Months Ended September 30, 2017
Revenues:
Equity in earnings of consolidated subsidiaries*$794$-$2,553$-$(3,347)$-
Other income653--36,08514736,885
Total revenues1,447-2,55336,085(3,200)36,885
Expenses:
Interest expense719-37129(5)880
(Gain) loss on extinguishment of debt2--(6)-(4)
Other expenses693-234,865(142)35,418
Total expenses1,414-3934,988(147)36,294
Income (loss) from continuing operations before income
tax expense (benefit)33-2,5141,097(3,053)591
Income tax expense (benefit)(544)-(12)538-(18)
Income (loss) from continuing operations577-2,526559(3,053)609
Income (loss) from discontinued operations,
net of income taxes(1)--8-7
Net income (loss)576-2,526567(3,053)616
Less:
Net income from continuing operations
attributable to noncontrolling interests---40-40
Net income (loss) attributable to AIG$576$-$2,526$527$(3,053)$576

* Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income

American
InternationalValidusReclassifications
Group, Inc.Holdings,OtherandConsolidated
(in millions)(As Guarantor)Ltd.AIGLHSubsidiariesEliminationsAIG
Three Months Ended September 30, 2018
Net income (loss)$(1,259)$(82)$1,306$(822)$(402)$(1,259)
Other comprehensive income (loss)(766)-(301)(1,436)1,737(766)
Comprehensive income (loss)(2,025)(82)1,005(2,258)1,335(2,025)
Total comprehensive income attributable to
noncontrolling interests------
Comprehensive income (loss) attributable to AIG$(2,025)$(82)$1,005$(2,258)$1,335$(2,025)
Three Months Ended September 30, 2017
Net income (loss)$(1,739)$-$1,129$(2,205)$1,102$(1,713)
Other comprehensive income (loss)977-1,274(30,625)29,351977
Comprehensive income (loss)(762)-2,403(32,830)30,453(736)
Total comprehensive income attributable to
noncontrolling interests---26-26
Comprehensive income (loss) attributable to AIG$(762)$-$2,403$(32,856)$30,453$(762)
Nine Months Ended September 30, 2018
Net income (loss)$616$(82)$2,459$921$(3,293)$621
Other comprehensive income (loss)(5,425)-3,13912,568(15,707)(5,425)
Comprehensive income (loss)(4,809)(82)5,59813,489(19,000)(4,804)
Total comprehensive income attributable to
noncontrolling interests---5-5
Comprehensive income (loss) attributable to AIG$(4,809)$(82)$5,598$13,484$(19,000)$(4,809)
Nine Months Ended September 30, 2017
Net income (loss)$576$-$2,526$567$(3,053)$616
Other comprehensive income (loss)2,709-7,05618,864(25,920)2,709
Comprehensive income (loss)3,285-9,58219,431(28,973)3,325
Total comprehensive income attributable to
noncontrolling interests---40-40
Comprehensive income (loss) attributable to AIG$3,285$-$9,582$19,391$(28,973)$3,285

Condensed Consolidating Statements of Cash Flows

American
InternationalValidus Reclassifications
Group, Inc.Holdings, OtherandConsolidated
(in millions)(As Guarantor)Ltd.AIGLHSubsidiariesEliminationsAIG
Nine Months Ended September 30, 2018
Net cash (used in) provided by operating activities$1,389$(40)$2,003$(433)$(2,957)$(38)
Cash flows from investing activities:
Sales of investments4,641--45,218(3,326)46,533
Sales of divested businesses, net---10-10
Purchase of investments(1,680)--(45,574)3,326(43,928)
Loans to subsidiaries - net878--(50)(828)-
Contributions from (to) subsidiaries - net22---(22)-
Acquisition of businesses, net of cash and
restricted cash acquired(5,475)112-311-(5,052)
Net change in short-term investments1,267--1,144-2,411
Other, net(55)--(836)-(891)
Net cash (used in) provided by investing activities(402)112-223(850)(917)
Cash flows from financing activities:
Issuance of long-term debt2,470--1,589-4,059
Repayments of long-term debt(1,493)--(1,295)-(2,788)
Purchase of common stock(994)----(994)
Intercompany loans - net50--(878)828-
Cash dividends paid (858)(6)(2,020)(931)2,957(858)
Other, net(165)--2,057221,914
Net cash (used in) provided by financing activities(990)(6)(2,020)5423,8071,333
Effect of exchange rate changes on cash and
restricted cash---8-8
Change in cash and restricted cash(3)66(17)340-386
Cash and restricted cash at beginning of year8-202,709-2,737
Cash and restricted cash at end of period$5$66$3$3,049$-$3,123
Nine Months Ended September 30, 2017
Net cash (used in) provided by operating activities$793$-$1,105$(8,440)$(2,320)$(8,862)
Cash flows from investing activities:
Sales of investments5,428--58,592(3,508)60,512
Sales of divested businesses, net40--565-605
Purchase of investments(1,781)--(49,675)3,508(47,948)
Loans to subsidiaries - net38--5(43)-
Contributions from (to) subsidiaries - net990---(990)-
Net change in short-term investments1,926--889-2,815
Other, net(17)-(4)(1,488)-(1,509)
Net cash (used in) provided by investing activities6,624-(4)8,888(1,033)14,475
Cash flows from financing activities:
Issuance of long-term debt1,108--1,297-2,405
Repayments of long-term debt(1,354)--(1,397)-(2,751)
Purchase of common stock(6,275)----(6,275)
Intercompany loans - net(5)--(38)43-
Cash dividends paid(884)-(1,133)(1,187)2,320(884)
Other, net(5)--1,3949902,379
Net cash (used in) provided by financing activities(7,415)-(1,133)693,353(5,126)
Effect of exchange rate changes on cash and
restricted cash---(22)-(22)
Change in cash and restricted cash2-(32)495-465
Cash and restricted cash at beginning of year3-342,070-2,107
Change in cash of businesses held for sale---133-133
Cash and restricted cash at end of period$5$-$2$2,698$-$2,705

Supplementary Disclosure of Condensed Consolidating Cash Flow Information

American
InternationalValidusReclassifications
Group, Inc.Holdings,OtherandConsolidated
(in millions)(As Guarantor)Ltd.AIGLHSubsidiariesEliminationsAIG
September 30, 2018
Cash$3$66$3$2,669$-$2,741
Restricted cash included in Short-term investments1--27-28
Restricted cash included in Other assets1--353-354
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows$5$66$3$3,049$-$3,123
Cash (paid) received during the 2018 period for:
Interest:
Third party$(706)$14$(47)$(279)$-$(1,018)
Intercompany(1)-(1)2--
Taxes:
Income tax authorities$(23)$-$-$(44)$-$(67)
Intercompany1,084--(1,084)--
September 30, 2017
Cash$3$-$2$2,428$-$2,433
Restricted cash included in Short-term investments1--52-53
Restricted cash included in Other assets1--218-219
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows$5$-$2$2,698$-$2,705
Cash (paid) received during the 2017 period for:
Interest:
Third party$(791)$-$(47)$(208)$-$(1,046)
Intercompany(1)-(1)2--
Taxes:
Income tax authorities$(324)$-$-$(166)$-$(490)
Intercompany1,852--(1,852)--

American International Group, Inc. (As Guarantor) Supplementary Disclosure of Non-Cash Activities:

Nine Months Ended September 30,
(in millions)20182017
Intercompany non-cash financing and investing activities:
Capital contributions$2,339$198
Dividends received in the form of securities745735
Return of capital2,70626