FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2018

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

September 30, 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	$	9	$	3,084	$	-	$	-	$	-	$	3,093
Obligations of states, municipalities and political subdivisions		-		14,516		1,996		-		-		16,512
Non-U.S. governments		19		15,196		4		-		-		15,219
Corporate debt		-		130,942		942		-		-		131,884
RMBS		-		20,365		14,861		-		-		35,226
CMBS		-		11,990		701		-		-		12,691
CDO/ABS		-		9,263		8,832		-		-		18,095
Total bonds available for sale		28		205,356		27,336		-		-		232,720
Other bond securities:
U.S. government and government sponsored entities		96		2,538		-		-		-		2,634
Non-U.S. governments		-		49		-		-		-		49
Corporate debt		-		1,707		-		-		-		1,707
RMBS		-		311		1,349		-		-		1,660
CMBS		-		328		73		-		-		401
CDO/ABS		-		511		4,458		-		-		4,969
Total other bond securities		96		5,444		5,880		-		-		11,420
Other equity securities(b)		1,400		18		25		-		-		1,443
Mortgage and other loans receivable		-		-		-		-		-		-
Other invested assets(c)		-		603		398		-		-		1,001
Derivative assets:
Interest rate contracts		-		2,505		-		-		-		2,505
Foreign exchange contracts		-		927		-		-		-		927
Equity contracts		16		220		104		-		-		340
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		15		-		-		15
Counterparty netting and cash collateral		-		-		-		(1,874)		(964)		(2,838)
Total derivative assets		16		3,652		120		(1,874)		(964)		950
Short-term investments		2,513		1,120		-		-		-		3,633
Separate account assets		88,092		4,953		-		-		-		93,045
Total	$	92,145	$	221,146	$	33,759	$	(1,874)	$	(964)	$	344,212
Liabilities:
Policyholder contract deposits	$	-	$	-	$	3,376	$	-	$	-	$	3,376
Derivative liabilities:
Interest rate contracts		1		2,106		12		-		-		2,119
Foreign exchange contracts		-		1,082		5		-		-		1,087
Equity contracts		2		2		1		-		-		5
Credit contracts		-		15		237		-		-		252
Other contracts		-		-		3		-		-		3
Counterparty netting and cash collateral		-		-		-		(1,874)		(290)		(2,164)
Total derivative liabilities		3		3,205		258		(1,874)		(290)		1,302
Long-term debt		-		2,311		-		-		-		2,311
Other liabilities		165		24		-		-		-		189
Total	$	168	$	5,540	$	3,634	$	(1,874)	$	(290)	$	7,178

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 $5.1 billion and $6.0 billion as of September 30,2018 and December 31,2017, respectively.

Changes in Level 3 recurring fair value measurements (Assets)

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Three Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,056	$	-	$	(37)	$	(46)	$	54	$	(31)	$	-	$	1,996	$	-
Non-U.S. governments		-		-		(1)		1		4		-		-		4		-
Corporate debt		884		7		(10)		(28)		133		(44)		-		942		-
RMBS		15,377		213		5		(725)		-		(16)		7		14,861		-
CMBS		605		14		(14)		31		64		-		1		701		-
CDO/ABS		6,856		15		(31)		320		1,508		-		164		8,832		-
Total bonds available for sale		25,778		249		(88)		(447)		1,763		(91)		172		27,336		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		(2)
RMBS		1,338		18		-		(57)		50		-		-		1,349		(29)
CMBS		71		(2)		-		-		4		-		-		73		(2)
CDO/ABS		4,641		76		-		(267)		-		-		8		4,458		(6)
Total other bond securities		6,068		92		-		(342)		54		-		8		5,880		(39)
Other equity securities(a)		-		1		-		24		-		-		-		25		-
Mortgage and other loans receivable		-		-		-		-		-		-		-		-		-
Other invested assets		399		-		-		(1)		-		-		-		398		-
Total	$	32,245	$	342	$	(88)	$	(766)	$	1,817	$	(91)	$	180	$	33,639	$	(39)
				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,534	$	(242)	$	-	$	84	$	-	$	-	$	-	$	3,376	$	179
Derivative liabilities, net:
Interest rate contracts		14		(1)		-		(1)		-		-		-		12		1
Foreign exchange contracts		5		2		-		(2)		-		-		-		5		(5)
Equity contracts		(79)		(12)		-		(12)		-		-		-		(103)		10
Credit contracts		246		(9)		-		(1)		-		-		-		236		10
Other contracts		(10)		(19)		-		17		-		-		-		(12)		14
Total derivative liabilities, net(b)		176		(39)		-		1		-		-		-		138		30
Long-term debt(c)		-		-		-		-		-		-		-		-		-
Total	$	3,710	$	(281)	$	-	$	85	$	-	$	-	$	-	$	3,514	$	209

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Nine Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,404	$	1	$	(152)	$	(144)	$	54	$	(167)	$	-	$	1,996	$	-
Non-U.S. governments		8		(5)		5		(3)		4		(5)		-		4		-
Corporate debt		1,173		(58)		(7)		(174)		701		(693)		-		942		-
RMBS		16,136		632		5		(1,877)		8		(50)		7		14,861		-
CMBS		624		18		(35)		1		111		(19)		1		701		-
CDO/ABS		8,651		31		(116)		(334)		1,508		(1,072)		164		8,832		-
Total bonds available for sale		28,996		619		(300)		(2,531)		2,386		(2,006)		172		27,336		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		(1)
RMBS		1,464		73		-		(238)		50		-		-		1,349		124
CMBS		74		(5)		-		(1)		5		-		-		73		2
CDO/ABS		4,956		283		-		(780)		-		(9)		8		4,458		201
Total other bond securities		6,512		351		-		(1,037)		55		(9)		8		5,880		326
Other equity securities(a)		-		(2)		-		27		-		-		-		25		-
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-		-
Other invested assets		250		52		1		95		-		-		-		398		56
Total	$	35,763	$	1,020	$	(299)	$	(3,451)	$	2,441	$	(2,015)	$	180	$	33,639	$	382
				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,136	$	(986)	$	-	$	226	$	-	$	-	$	-	$	3,376	$	1,081
Derivative liabilities, net:
Interest rate contracts		22		(5)		-		(5)		-		-		-		12		5
Foreign exchange contracts		-		(2)		-		7		-		-		-		5		(5)
Equity contracts		(82)		(3)		-		(20)		-		2		-		(103)		2
Credit contracts		262		(23)		-		(3)		-		-		-		236		23
Other contracts		(15)		(51)		-		54		-		-		-		(12)		42
Total derivative liabilities, net(b)		187		(84)		-		33		-		2		-		138		67
Long-term debt(c)		-		-		-		-		-		-		-		-		-
Total	$	4,323	$	(1,070)	$	-	$	259	$	-	$	2	$	-	$	3,514	$	1,148

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Three Months Ended September 30, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,285	$	2	$	38	$	52	$	-	$	(6)	$	2,371	$	-
Non-U.S. governments		12		(5)		4		-		-		-		11		-
Corporate debt		932		5		(2)		(53)		449		(121)		1,210		-
RMBS		16,393		253		495		(731)		11		(7)		16,414		-
CMBS		735		2		5		(77)		-		-		665		-
CDO/ABS		8,605		8		(12)		(166)		-		(21)		8,414		-
Total bonds available for sale		28,962		265		528		(975)		460		(155)		29,085		-
Other bond securities:
Corporate debt		28		1		-		-		-		(11)		18		-
RMBS		1,510		63		-		(130)		-		-		1,443		49
CMBS		66		2		-		42		-		(45)		65		3
CDO/ABS		5,234		111		-		(505)		-		(6)		4,834		(34)
Total other bond securities		6,838		177		-		(593)		-		(62)		6,360		18
Equity securities available for sale:
Common stock		7		-		-		(2)		-		-		5		-
Total equity securities available for sale		7		-		-		(2)		-		-		5		-
Mortgage and other loans receivable		5		-		-		-		-		-		5		-
Other invested assets		225		-		(2)		36		-		-		259		(3)
Total	$	36,037	$	442	$	526	$	(1,534)	$	460	$	(217)	$	35,714	$	15
				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,518	$	299	$	-	$	157	$	-	$	-	$	3,974	$	(220)
Derivative liabilities, net:
Interest rate contracts		30		(2)		-		(2)		-		-		26		1
Foreign exchange contracts		7		-		-		(4)		-		-		3		-
Equity contracts		(63)		(11)		-		5		-		-		(69)		8
Credit contracts		293		(19)		-		(1)		-		-		273		19
Other contracts		(16)		(19)		-		19		-		-		(16)		12
Total derivative liabilities, net(b)		251		(51)		-		17		-		-		217		40
Long-term debt(c)		61		2		-		(60)		-		-		3		4
Total	$	3,830	$	250	$	-	$	114	$	-	$	-	$	4,194	$	(176)

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Nine Months Ended September 30, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,040	$	3	$	123	$	221	$	8	$	(24)	$	2,371	$	-
Non-U.S. governments		17		(5)		5		(6)		-		-		11		-
Corporate debt		1,133		6		(2)		(219)		655		(363)		1,210		-
RMBS		16,906		806		992		(2,270)		19		(39)		16,414		-
CMBS		2,040		25		12		(699)		-		(713)		665		-
CDO/ABS		7,835		(14)		168		478		-		(53)		8,414		-
Total bonds available for sale		29,971		821		1,298		(2,495)		682		(1,192)		29,085		-
Other bond securities:
Corporate debt		17		2		-		10		-		(11)		18		1
RMBS		1,605		184		-		(313)		-		(33)		1,443		116
CMBS		155		4		-		24		-		(118)		65		6
CDO/ABS		5,703		459		-		(1,322)		-		(6)		4,834		91
Total other bond securities		7,480		649		-		(1,601)		-		(168)		6,360		214
Equity securities available for sale:
Common stock		-		-		-		6		-		(1)		5		-
Total equity securities available for sale		-		-		-		6		-		(1)		5		-
Mortgage and other loans receivable		11		-		-		(6)		-		-		5		-
Other invested assets		204		3		(5)		58		-		(1)		259		1
Total	$	37,666	$	1,473	$	1,293	$	(4,038)	$	682	$	(1,362)	$	35,714	$	215
				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,033	$	594	$	-	$	347	$	-	$	-	$	3,974	$	(405)
Derivative liabilities, net:
Interest rate contracts		38		(3)		-		(9)		-		-		26		3
Foreign exchange contracts		11		1		-		(9)		-		-		3		(1)
Equity contracts		(58)		(26)		-		15		-		-		(69)		22
Credit contracts		329		(55)		-		(1)		-		-		273		53
Other contracts		(11)		(58)		-		56		(3)		-		(16)		57
Total derivative liabilities, net(b)		309		(141)		-		52		(3)		-		217		134
Long-term debt(c)		71		16		-		(84)		-		-		3		-
Total	$	3,413	$	469	$	-	$	315	$	(3)	$	-	$	4,194	$	(271)

(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														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Three Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,056	$	-	$	(37)	$	(46)	$	54	$	(31)	$	-	$	1,996	$	-
Non-U.S. governments		-		-		(1)		1		4		-		-		4		-
Corporate debt		884		7		(10)		(28)		133		(44)		-		942		-
RMBS		15,377		213		5		(725)		-		(16)		7		14,861		-
CMBS		605		14		(14)		31		64		-		1		701		-
CDO/ABS		6,856		15		(31)		320		1,508		-		164		8,832		-
Total bonds available for sale		25,778		249		(88)		(447)		1,763		(91)		172		27,336		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		(2)
RMBS		1,338		18		-		(57)		50		-		-		1,349		(29)
CMBS		71		(2)		-		-		4		-		-		73		(2)
CDO/ABS		4,641		76		-		(267)		-		-		8		4,458		(6)
Total other bond securities		6,068		92		-		(342)		54		-		8		5,880		(39)
Other equity securities(a)		-		1		-		24		-		-		-		25		-
Mortgage and other loans receivable		-		-		-		-		-		-		-		-		-
Other invested assets		399		-		-		(1)		-		-		-		398		-
Total	$	32,245	$	342	$	(88)	$	(766)	$	1,817	$	(91)	$	180	$	33,639	$	(39)
				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,534	$	(242)	$	-	$	84	$	-	$	-	$	-	$	3,376	$	179
Derivative liabilities, net:
Interest rate contracts		14		(1)		-		(1)		-		-		-		12		1
Foreign exchange contracts		5		2		-		(2)		-		-		-		5		(5)
Equity contracts		(79)		(12)		-		(12)		-		-		-		(103)		10
Credit contracts		246		(9)		-		(1)		-		-		-		236		10
Other contracts		(10)		(19)		-		17		-		-		-		(12)		14
Total derivative liabilities, net(b)		176		(39)		-		1		-		-		-		138		30
Long-term debt(c)		-		-		-		-		-		-		-		-		-
Total	$	3,710	$	(281)	$	-	$	85	$	-	$	-	$	-	$	3,514	$	209

				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Nine Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,404	$	1	$	(152)	$	(144)	$	54	$	(167)	$	-	$	1,996	$	-
Non-U.S. governments		8		(5)		5		(3)		4		(5)		-		4		-
Corporate debt		1,173		(58)		(7)		(174)		701		(693)		-		942		-
RMBS		16,136		632		5		(1,877)		8		(50)		7		14,861		-
CMBS		624		18		(35)		1		111		(19)		1		701		-
CDO/ABS		8,651		31		(116)		(334)		1,508		(1,072)		164		8,832		-
Total bonds available for sale		28,996		619		(300)		(2,531)		2,386		(2,006)		172		27,336		-
Other bond securities:
Corporate debt		18		-		-		(18)		-		-		-		-		(1)
RMBS		1,464		73		-		(238)		50		-		-		1,349		124
CMBS		74		(5)		-		(1)		5		-		-		73		2
CDO/ABS		4,956		283		-		(780)		-		(9)		8		4,458		201
Total other bond securities		6,512		351		-		(1,037)		55		(9)		8		5,880		326
Other equity securities(a)		-		(2)		-		27		-		-		-		25		-
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-		-
Other invested assets		250		52		1		95		-		-		-		398		56
Total	$	35,763	$	1,020	$	(299)	$	(3,451)	$	2,441	$	(2,015)	$	180	$	33,639	$	382
				Net														Changes in
				Realized and														Unrealized Gains
				Unrealized				Purchases,										(Losses) Included
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross				Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers				End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Acquisition		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,136	$	(986)	$	-	$	226	$	-	$	-	$	-	$	3,376	$	1,081
Derivative liabilities, net:
Interest rate contracts		22		(5)		-		(5)		-		-		-		12		5
Foreign exchange contracts		-		(2)		-		7		-		-		-		5		(5)
Equity contracts		(82)		(3)		-		(20)		-		2		-		(103)		2
Credit contracts		262		(23)		-		(3)		-		-		-		236		23
Other contracts		(15)		(51)		-		54		-		-		-		(12)		42
Total derivative liabilities, net(b)		187		(84)		-		33		-		2		-		138		67
Long-term debt(c)		-		-		-		-		-		-		-		-		-
Total	$	4,323	$	(1,070)	$	-	$	259	$	-	$	2	$	-	$	3,514	$	1,148

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Three Months Ended September 30, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,285	$	2	$	38	$	52	$	-	$	(6)	$	2,371	$	-
Non-U.S. governments		12		(5)		4		-		-		-		11		-
Corporate debt		932		5		(2)		(53)		449		(121)		1,210		-
RMBS		16,393		253		495		(731)		11		(7)		16,414		-
CMBS		735		2		5		(77)		-		-		665		-
CDO/ABS		8,605		8		(12)		(166)		-		(21)		8,414		-
Total bonds available for sale		28,962		265		528		(975)		460		(155)		29,085		-
Other bond securities:
Corporate debt		28		1		-		-		-		(11)		18		-
RMBS		1,510		63		-		(130)		-		-		1,443		49
CMBS		66		2		-		42		-		(45)		65		3
CDO/ABS		5,234		111		-		(505)		-		(6)		4,834		(34)
Total other bond securities		6,838		177		-		(593)		-		(62)		6,360		18
Equity securities available for sale:
Common stock		7		-		-		(2)		-		-		5		-
Total equity securities available for sale		7		-		-		(2)		-		-		5		-
Mortgage and other loans receivable		5		-		-		-		-		-		5		-
Other invested assets		225		-		(2)		36		-		-		259		(3)
Total	$	36,037	$	442	$	526	$	(1,534)	$	460	$	(217)	$	35,714	$	15
				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,518	$	299	$	-	$	157	$	-	$	-	$	3,974	$	(220)
Derivative liabilities, net:
Interest rate contracts		30		(2)		-		(2)		-		-		26		1
Foreign exchange contracts		7		-		-		(4)		-		-		3		-
Equity contracts		(63)		(11)		-		5		-		-		(69)		8
Credit contracts		293		(19)		-		(1)		-		-		273		19
Other contracts		(16)		(19)		-		19		-		-		(16)		12
Total derivative liabilities, net(b)		251		(51)		-		17		-		-		217		40
Long-term debt(c)		61		2		-		(60)		-		-		3		4
Total	$	3,830	$	250	$	-	$	114	$	-	$	-	$	4,194	$	(176)

				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Nine Months Ended September 30, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,040	$	3	$	123	$	221	$	8	$	(24)	$	2,371	$	-
Non-U.S. governments		17		(5)		5		(6)		-		-		11		-
Corporate debt		1,133		6		(2)		(219)		655		(363)		1,210		-
RMBS		16,906		806		992		(2,270)		19		(39)		16,414		-
CMBS		2,040		25		12		(699)		-		(713)		665		-
CDO/ABS		7,835		(14)		168		478		-		(53)		8,414		-
Total bonds available for sale		29,971		821		1,298		(2,495)		682		(1,192)		29,085		-
Other bond securities:
Corporate debt		17		2		-		10		-		(11)		18		1
RMBS		1,605		184		-		(313)		-		(33)		1,443		116
CMBS		155		4		-		24		-		(118)		65		6
CDO/ABS		5,703		459		-		(1,322)		-		(6)		4,834		91
Total other bond securities		7,480		649		-		(1,601)		-		(168)		6,360		214
Equity securities available for sale:
Common stock		-		-		-		6		-		(1)		5		-
Total equity securities available for sale		-		-		-		6		-		(1)		5		-
Mortgage and other loans receivable		11		-		-		(6)		-		-		5		-
Other invested assets		204		3		(5)		58		-		(1)		259		1
Total	$	37,666	$	1,473	$	1,293	$	(4,038)	$	682	$	(1,362)	$	35,714	$	215
				Net												Changes in
				Realized and												Unrealized Gains
				Unrealized				Purchases,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Sales,		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Issuances and		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	3,033	$	594	$	-	$	347	$	-	$	-	$	3,974	$	(405)
Derivative liabilities, net:
Interest rate contracts		38		(3)		-		(9)		-		-		26		3
Foreign exchange contracts		11		1		-		(9)		-		-		3		(1)
Equity contracts		(58)		(26)		-		15		-		-		(69)		22
Credit contracts		329		(55)		-		(1)		-		-		273		53
Other contracts		(11)		(58)		-		56		(3)		-		(16)		57
Total derivative liabilities, net(b)		309		(141)		-		52		(3)		-		217		134
Long-term debt(c)		71		16		-		(84)		-		-		3		-
Total	$	3,413	$	469	$	-	$	315	$	(3)	$	-	$	4,194	$	(271)

(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 September 30, 2018
Bonds available for sale	$	249	$	-	$	-	$	249
Other bond securities		35		1		56		92
Other equity securities		1		-		-		1
Other invested assets		-		-		-		-
Nine Months Ended September 30, 2018
Bonds available for sale	$	731	$	(112)	$	-	$	619
Other bond securities		92		(3)		262		351
Other equity securities		(2)		-		-		(2)
Other invested assets		57		-		(5)		52
Three Months Ended September 30, 2017
Bonds available for sale	$	257	$	8	$	-	$	265
Other bond securities		87		(2)		92		177
Other invested assets		2		1		(3)		-
Nine Months Ended September 30, 2017
Bonds available for sale	$	849	$	(28)	$	-	$	821
Other bond securities		259		-		390		649
Other invested assets		5		(1)		(1)		3
		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
Three Months Ended September 30, 2018
Policyholder contract deposits	$	-	$	(242)	$	-	$	(242)
Derivative liabilities, net		-		(1)		(38)		(39)
Long-term debt		-		-		-		-
Nine Months Ended September 30, 2018
Policyholder contract deposits	$	-	$	(986)	$	-	$	(986)
Derivative liabilities, net		-		(3)		(81)		(84)
Long-term debt		-		-		-		-
Three Months Ended September 30, 2017
Policyholder contract deposits	$	-	$	299	$	-	$	299
Derivative liabilities, net		-		(5)		(46)		(51)
Long-term debt		-		-		2		2
Nine Months Ended September 30, 2017
Policyholder contract deposits	$	-	$	594	$	-	$	594
Derivative liabilities, net		-		(13)		(128)		(141)
Long-term debt		-		-		16		16

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

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements(a)		Settlements, Net(a)
Three Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	-	$	(8)	$	(38)	$	(46)
Non-U.S. governments		-		-		1		1
Corporate debt		25		-		(53)		(28)
RMBS		123		(2)		(846)		(725)
CMBS		58		(2)		(25)		31
CDO/ABS		394		(49)		(25)		320
Total bonds available for sale		600		(61)		(986)		(447)
Other bond securities:
Corporate debt		-		-		(18)		(18)
RMBS		-		-		(57)		(57)
CMBS		-		-		-		-
CDO/ABS		-		-		(267)		(267)
Total other bond securities		-		-		(342)		(342)
Other equity securities		24		-		-		24
Other invested assets		-		-		(1)		(1)
Total assets	$	624	$	(61)	$	(1,329)	$	(766)
Liabilities:
Policyholder contract deposits	$	-	$	148	$	(64)	$	84
Derivative liabilities, net		(18)		-		19		1
Long-term debt(b)		-		-		-		-
Total liabilities	$	(18)	$	148	$	(45)	$	85
Three Months Ended September 30, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	56	$	-	$	(4)	$	52
Non-U.S. governments		7		-		(7)		-
Corporate debt		6		(5)		(54)		(53)
RMBS		194		(16)		(909)		(731)
CMBS		-		(17)		(60)		(77)
CDO/ABS		402		(136)		(432)		(166)
Total bonds available for sale		665		(174)		(1,466)		(975)
Other bond securities:
Corporate debt		-		-		-		-
RMBS		-		(51)		(79)		(130)
CMBS		42		-		-		42
CDO/ABS		-		(57)		(448)		(505)
Total other bond securities		42		(108)		(527)		(593)
Equity securities available for sale		4		-		(6)		(2)
Other equity securities		-		-		-		-
Mortgage and other loans receivable		-		-		-		-
Other invested assets		46		(9)		(1)		36
Total assets	$	757	$	(291)	$	(2,000)	$	(1,534)
Liabilities:
Policyholder contract deposits	$	-	$	79	$	78	$	157
Derivative liabilities, net		-		-		17		17
Long-term debt(b)		-		-		(60)		(60)
Total liabilities	$	-	$	79	$	35	$	114

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements(a)		Settlements, Net(a)
Nine Months Ended September 30, 2018
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	24	$	(8)	$	(160)	$	(144)
Non-U.S. governments		2		-		(5)		(3)
Corporate debt		280		(216)		(238)		(174)
RMBS		630		(12)		(2,495)		(1,877)
CMBS		70		(2)		(67)		1
CDO/ABS		1,364		(962)		(736)		(334)
Total bonds available for sale		2,370		(1,200)		(3,701)		(2,531)
Other bond securities:
Corporate debt		-		-		(18)		(18)
RMBS		1		(34)		(205)		(238)
CMBS		-		-		(1)		(1)
CDO/ABS		-		(4)		(776)		(780)
Total other bond securities		1		(38)		(1,000)		(1,037)
Other equity securities		27		-		-		27
Mortgage and other loans receivable		-		(5)		-		(5)
Other invested assets		153		(29)		(29)		95
Total assets	$	2,551	$	(1,272)	$	(4,730)	$	(3,451)
Liabilities:
Policyholder contract deposits	$	-	$	391	$	(165)	$	226
Derivative liabilities, net		(37)		-		70		33
Long-term debt(b)		-		-		-		-
Total liabilities	$	(37)	$	391	$	(95)	$	259
Nine Months Ended September 30, 2017
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	279	$	(16)	$	(42)	$	221
Non-U.S. governments		7		(1)		(12)		(6)
Corporate debt		36		(59)		(196)		(219)
RMBS		834		(260)		(2,844)		(2,270)
CMBS		39		(128)		(610)		(699)
CDO/ABS		1,609		(136)		(995)		478
Total bonds available for sale		2,804		(600)		(4,699)		(2,495)
Other bond securities:
Corporate debt		11		-		(1)		10
RMBS		112		(218)		(207)		(313)
CMBS		42		(11)		(7)		24
CDO/ABS		-		(65)		(1,257)		(1,322)
Total other bond securities		165		(294)		(1,472)		(1,601)
Equity securities available for sale		12		-		(6)		6
Other equity securities		-		-		-		-
Mortgage and other loans receivable		-		(6)		-		(6)
Other invested assets		89		(11)		(20)		58
Total assets	$	3,070	$	(911)	$	(6,197)	$	(4,038)
Liabilities:
Policyholder contract deposits	$	-	$	231	$	116	$	347
Derivative liabilities, net		-		-		52		52
Long-term debt(b)		-		-		(84)		(84)
Total liabilities	$	-	$	231	$	84	$	315

(a)There were no issuances during thethree- and nine-month periods ended September 30,2018 and 2017, respectively.

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

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	September 30,		Valuation		Range
(in millions)	2018		Technique	Unobservable Input(b)	(Weighted Average)
Assets:
Obligations of states, municipalities
and political subdivisions	$	1,439	Discounted cash flow	Yield	4.04% - 4.81% (4.42%)
Corporate debt		727	Discounted cash flow	Yield	3.55% - 15.26% (9.40%)
RMBS(a)		14,257	Discounted cash flow	Constant prepayment rate	4.51% - 13.02% (8.76%)
				Loss severity	39.83% - 73.69% (56.76%)
				Constant default rate	2.69% - 7.58% (5.14%)
				Yield	3.17% - 5.38% (4.28%)
CDO/ABS(a)		4,792	Discounted cash flow	Yield	4.09% - 5.38% (4.74%)
CMBS		461	Discounted cash flow	Yield	3.09% - 7.20% (5.15%)
Liabilities:
Embedded derivatives within
Policyholder contract deposits:
Guaranteed minimum withdrawal benefits (GMWB)		1,046	Discounted cash flow	Equity volatility	6.15% - 48.35%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	20.00% - 180.00%
				Mortality multiplier(c)	40.00% - 153.00%
				Utilization	90.00% - 100.00%
				Equity / interest-rate correlation	20.00% - 40.00%
Index Annuities		1,890	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier(c)	42.00% - 162.00%
				Option Budget	1.00% - 3.00%
Indexed Life		414	Discounted cash flow	Base lapse rate	0.00% - 13.00%
				Mortality rate	0.00% - 100.00%

		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

		September 30, 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	$	700	$	646	$	1,243	$	706
Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		185		84		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		102		113		134		73
Growth Equity	Funds that make investments in established companies for the purpose of growing their businesses		306		35		215		73
Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		220		107		171		135
Other	Includes distressed funds that invest in securities of companies that are in default or under bankruptcy protection, as well as funds that have multi-strategy, and other strategies		624		324		155		53
Total private equity funds			2,137		1,309		2,128		1,227
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		888		-		1,128		-
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		993		-		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		871		-		1,011		-
Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		44		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		210		1		231		4
Total hedge funds			3,006		9		3,869		12
Total		$	5,143	$	1,318	$	5,997	$	1,239

* Beginning in the third quarter of 2018, Growth Equity and Mezzanine private equity fund categories are shown separately. Prior periods were revised to conform to the current period presentation.

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

	Gain (Loss) Three Months Ended September 30,				Gain (Loss) Nine Months Ended September 30,
(in millions)		2018		2017		2018		2017
Assets:
Bond and equity securities	$	122	$	289	$	274	$	1,088
Alternative investments(a)		131		129		355		406
Other, including Short-term investments		-		1		-		1
Liabilities:
Long-term debt(b)		6		(18)		74		(66)
Other liabilities		-		(1)		-		(2)
Total gain	$	259	$	400	$	703	$	1,427

(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

	September 30, 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*	$	2,311	$	1,798	$	513	$	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(a)
	Non-Recurring Basis								Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	Level 1		Level 2		Level 3			Total		2018		2017		2018		2017
September 30, 2018
Other investments	$	-	$	-	$	344	$	344	$	-	$	26	$	89	$	76
Investments in life settlements		-		-		-		-		-		273		-		360
Other assets		-		-		2		2		34		-		35		35
Total	$	-	$	-	$	346	$	346	$	34	$	299	$	124	$	471
December 31, 2017
Other investments	$	-	$	-	$	55	$	55
Investments in life settlements		-		-		-		-
Other assets		-		-		-		-
Total	$	-	$	-	$	55	$	55

(a) Impairments in the nine-month period ended September 30, 2017 included $35 million related to Other assets of $179 million that were sold during the three-month period ended June 30, 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
September 30, 2018
Assets:
Mortgage and other loans receivable	$	-	$	108	$	41,060	$	41,168	$	41,878
Other invested assets		-		771		6		777		773
Short-term investments		-		5,230		-		5,230		5,230
Cash		2,741		-		-		2,741		2,741
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		349		122,487		122,836		119,493
Other liabilities		-		1,465		1		1,466		1,466
Long-term debt		-		24,147		8,221		32,368		32,283
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