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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2019

Assets and liabilities measured at fair value on a recurring basis

March 31, 2019							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	$	-	$	3,401	$	-	$	-	$	-	$	3,401
Obligations of states, municipalities and political subdivisions		-		13,786		2,136		-		-		15,922
Non-U.S. governments		15		15,256		3		-		-		15,274
Corporate debt		-		137,141		1,532		-		-		138,673
RMBS		-		19,959		14,045		-		-		34,004
CMBS		-		12,269		892		-		-		13,161
CDO/ABS		-		8,926		8,840		-		-		17,766
Total bonds available for sale		15		210,738		27,448		-		-		238,201
Other bond securities:
U.S. government and government sponsored entities		84		2,696		-		-		-		2,780
Non-U.S. governments		-		51		-		-		-		51
Corporate debt		-		1,745		-		-		-		1,745
RMBS		-		491		1,266		-		-		1,757
CMBS		-		315		84		-		-		399
CDO/ABS		-		530		4,249		-		-		4,779
Total other bond securities		84		5,828		5,599		-		-		11,511
Equity securities		804		11		26		-		-		841
Other invested assets^(b)		-		86		591		-		-		677
Derivative assets:
Interest rate contracts		4		2,660		-		-		-		2,664
Foreign exchange contracts		-		1,106		1		-		-		1,107
Equity contracts		55		330		103		-		-		488
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		13		-		-		13
Counterparty netting and cash collateral		-		-		-		(1,647)		(1,734)		(3,381)
Total derivative assets		59		4,096		118		(1,647)		(1,734)		892
Short-term investments		1,993		2,047		-		-		-		4,040
Separate account assets		84,260		4,558		-		-		-		88,818
Other assets		-		-		59		-		-		59
Total	$	87,215	$	227,364	$	33,841	$	(1,647)	$	(1,734)	$	345,039
Liabilities:
Policyholder contract deposits	$	-	$	-	$	4,878	$	-	$	-	$	4,878
Derivative liabilities:
Interest rate contracts		-		1,905		15		-		-		1,920
Foreign exchange contracts		-		850		-		-		-		850
Equity contracts		12		32		7		-		-		51
Credit contracts		-		17		223		-		-		240
Other contracts		-		-		5		-		-		5
Counterparty netting and cash collateral		-		-		-		(1,647)		(188)		(1,835)
Total derivative liabilities		12		2,804		250		(1,647)		(188)		1,231
Long-term debt		-		2,263		-		-		-		2,263
Other liabilities		105		85		-		-		-		190
Total	$	117	$	5,152	$	5,128	$	(1,647)	$	(188)	$	8,562

December 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	$	53	$	3,207	$	-	$	-	$	-	$	3,260
Obligations of states, municipalities and political subdivisions		-		14,001		2,000		-		-		16,001
Non-U.S. governments		69		14,445		11		-		-		14,525
Corporate debt		-		129,836		864		-		-		130,700
RMBS		-		20,178		14,199		-		-		34,377
CMBS		-		11,784		917		-		-		12,701
CDO/ABS		-		8,725		9,102		-		-		17,827
Total bonds available for sale		122		202,176		27,093		-		-		229,391
Other bond securities:
U.S. government and government sponsored entities		11		2,654		-		-		-		2,665
Non-U.S. governments		-		45		-		-		-		45
Corporate debt		-		1,671		-		-		-		1,671
RMBS		-		424		1,290		-		-		1,714
CMBS		-		311		77		-		-		388
CDO/ABS		-		454		4,478		-		-		4,932
Total other bond securities		11		5,559		5,845		-		-		11,415
Equity securities		1,213		13		27		-		-		1,253
Other invested assets^(b)		-		341		587		-		-		928
Derivative assets:
Interest rate contracts		2		2,888		-		-		-		2,890
Foreign exchange contracts		-		1,159		5		-		-		1,164
Equity contracts		133		190		75		-		-		398
Credit contracts		-		-		1		-		-		1
Other contracts		-		-		15		-		-		15
Counterparty netting and cash collateral		-		-		-		(1,713)		(1,840)		(3,553)
Total derivative assets		135		4,237		96		(1,713)		(1,840)		915
Short-term investments		2,416		599		-		-		-		3,015
Separate account assets		77,202		4,645		-		-		-		81,847
Other assets		-		-		58		-		-		58
Total	$	81,099	$	217,570	$	33,706	$	(1,713)	$	(1,840)	$	328,822
Liabilities:
Policyholder contract deposits	$	-	$	-	$	4,116	$	-	$	-	$	4,116
Derivative liabilities:
Interest rate contracts		4		2,004		15		-		-		2,023
Foreign exchange contracts		-		858		-		-		-		858
Equity contracts		12		3		-		-		-		15
Credit contracts		-		8		228		-		-		236
Other contracts		-		-		6		-		-		6
Counterparty netting and cash collateral		-		-		-		(1,713)		(187)		(1,900)
Total derivative liabilities		16		2,873		249		(1,713)		(187)		1,238
Long-term debt		-		2,213		-		-		-		2,213
Other liabilities		16		11		-		-		-		27
Total	$	32	$	5,097	$	4,365	$	(1,713)	$	(187)	$	7,594

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

(b) 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 $5.0 billion as of March 31, 2019 and December 31, 2018, respectively.

Changes in Level 3 recurring fair value measurements (Assets)

				Net												Changes in
				Realized and				Purchases,								Unrealized Gains
				Unrealized				Sales,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Issuances and		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out		of Period		at End of Period
Three Months Ended March 31, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,000	$	(1)	$	97	$	24	$	29	$	(13)	$	2,136	$	-
Non-U.S. governments		11		-		-		(4)		-		(4)		3		-
Corporate debt		864		(3)		38		34		654		(55)		1,532		-
RMBS		14,199		227		24		(412)		23		(16)		14,045		-
CMBS		917		1		17		146		-		(189)		892		-
CDO/ABS		9,102		4		54		(45)		92		(367)		8,840		-
Total bonds available for sale		27,093		228		230		(257)		798		(644)		27,448		-
Other bond securities:
Corporate debt		-		-		-		-		-		-		-		-
RMBS		1,290		17		-		(41)		-		-		1,266		-
CMBS		77		4		-		3		-		-		84		3
CDO/ABS		4,478		68		-		(201)		-		(96)		4,249		24
Total other bond securities		5,845		89		-		(239)		-		(96)		5,599		27
Equity securities		27		-		-		-		-		(1)		26		-
Mortgage and other loans receivable		-		-		-		-		-		-		-		-
Other invested assets		587		-		-		4		-		-		591		2
Other assets		58		-		-		1		-		-		59		-
Total	$	33,610	$	317	$	230	$	(491)	$	798	$	(741)	$	33,723	$	29

				Net												Changes in
				Realized and				Purchases,								Unrealized Gains
				Unrealized				Sales,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Issuances and		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,116	$	569	$	-	$	193	$	-	$	-	$	4,878	$	(521)
Derivative liabilities, net:
Interest rate contracts		15		1		-		(1)		-		-		15		(1)
Foreign exchange contracts		(5)		(5)		-		9		-		-		(1)		(1)
Equity contracts		(75)		(16)		-		(5)		-		-		(96)		19
Credit contracts		227		(3)		-		(2)		-		-		222		4
Other contracts		(9)		(17)		-		18		-		-		(8)		17
Total derivative liabilities, net^(a)		153		(40)		-		19		-		-		132		38
Total	$	4,269	$	529	$	-	$	212	$	-	$	-	$	5,010	$	(483)

				Net												Changes in
				Realized and				Purchases,								Unrealized Gains
				Unrealized				Sales,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Issuances and		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out		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
Equity securities		-		-		-		3		-		-		3		2
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-
Other invested assets		250		23		1		18		-		-		292		30
Other assets		-		-		-		-		-		-		-		-
Total	$	35,763	$	371	$	(160)	$	(1,410)	$	566	$	(130)	$	35,000	$	90

				Net												Changes in
				Realized and				Purchases,								Unrealized Gains
				Unrealized				Sales,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Issuances and		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out		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^(a)		187		(36)		-		27		-		-		178		29
Total	$	4,323	$	(542)	$	-	$	93	$	-	$	-	$	3,874	$	633

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

Changes in Level 3 recurring fair value measurements (Liabilities)

				Net												Changes in
				Realized and				Purchases,								Unrealized Gains
				Unrealized				Sales,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Issuances and		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out		of Period		at End of Period
Three Months Ended March 31, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,000	$	(1)	$	97	$	24	$	29	$	(13)	$	2,136	$	-
Non-U.S. governments		11		-		-		(4)		-		(4)		3		-
Corporate debt		864		(3)		38		34		654		(55)		1,532		-
RMBS		14,199		227		24		(412)		23		(16)		14,045		-
CMBS		917		1		17		146		-		(189)		892		-
CDO/ABS		9,102		4		54		(45)		92		(367)		8,840		-
Total bonds available for sale		27,093		228		230		(257)		798		(644)		27,448		-
Other bond securities:
Corporate debt		-		-		-		-		-		-		-		-
RMBS		1,290		17		-		(41)		-		-		1,266		-
CMBS		77		4		-		3		-		-		84		3
CDO/ABS		4,478		68		-		(201)		-		(96)		4,249		24
Total other bond securities		5,845		89		-		(239)		-		(96)		5,599		27
Equity securities		27		-		-		-		-		(1)		26		-
Mortgage and other loans receivable		-		-		-		-		-		-		-		-
Other invested assets		587		-		-		4		-		-		591		2
Other assets		58		-		-		1		-		-		59		-
Total	$	33,610	$	317	$	230	$	(491)	$	798	$	(741)	$	33,723	$	29

				Net												Changes in
				Realized and				Purchases,								Unrealized Gains
				Unrealized				Sales,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Issuances and		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,116	$	569	$	-	$	193	$	-	$	-	$	4,878	$	(521)
Derivative liabilities, net:
Interest rate contracts		15		1		-		(1)		-		-		15		(1)
Foreign exchange contracts		(5)		(5)		-		9		-		-		(1)		(1)
Equity contracts		(75)		(16)		-		(5)		-		-		(96)		19
Credit contracts		227		(3)		-		(2)		-		-		222		4
Other contracts		(9)		(17)		-		18		-		-		(8)		17
Total derivative liabilities, net^(a)		153		(40)		-		19		-		-		132		38
Total	$	4,269	$	529	$	-	$	212	$	-	$	-	$	5,010	$	(483)

				Net												Changes in
				Realized and				Purchases,								Unrealized Gains
				Unrealized				Sales,								(Losses) Included
		Fair Value		Gains (Losses)		Other		Issuances and		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out		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
Equity securities		-		-		-		3		-		-		3		2
Mortgage and other loans receivable		5		-		-		(5)		-		-		-		-
Other invested assets		250		23		1		18		-		-		292		30
Other assets		-		-		-		-		-		-		-		-
Total	$	35,763	$	371	$	(160)	$	(1,410)	$	566	$	(130)	$	35,000	$	90

				Net												Changes in
				Realized and				Purchases,								Unrealized Gains
				Unrealized				Sales,								(Losses) Included
		Fair Value		(Gains) Losses		Other		Issuances and		Gross		Gross		Fair Value		in Income on
		Beginning		Included		Comprehensive		Settlements,		Transfers		Transfers		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)		Net		In		Out		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^(a)		187		(36)		-		27		-		-		178		29
Total	$	4,323	$	(542)	$	-	$	93	$	-	$	-	$	3,874	$	633

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

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, 2019
Assets:
Bonds available for sale	$	242	$	(14)	$	-	$	228
Other bond securities		87		2		-		89
Other invested assets		-		-		-		-
Three Months Ended March 31, 2018
Assets:
Bonds available for sale	$	282	$	(62)	$	-	$	220
Other bond securities		23		(4)		109		128
Other invested assets		25		-		(2)		23

		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
Three Months Ended March 31, 2019
Liabilities:
Policyholder contract deposits	$	-	$	569	$	-	$	569
Derivative liabilities, net		-		(24)		(16)		(40)
Three Months Ended March 31, 2018
Liabilities:
Policyholder contract deposits	$	-	$	(506)	$	-	$	(506)
Derivative liabilities, net		-		1		(37)		(36)

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

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements^(a)		Settlements, Net^(a)
Three Months Ended March 31, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	47	$	(15)	$	(8)	$	24
Non-U.S. governments		-		-		(4)		(4)
Corporate debt		49		-		(15)		34
RMBS		307		(26)		(693)		(412)
CMBS		184		-		(38)		146
CDO/ABS		198		(156)		(87)		(45)
Total bonds available for sale		785		(197)		(845)		(257)
Other bond securities:
RMBS		-		-		(41)		(41)
CMBS		4		-		(1)		3
CDO/ABS		-		-		(201)		(201)
Total other bond securities		4		-		(243)		(239)
Equity securities		-		-		-		-
Mortgage and other loans receivable		-		-		-		-
Other invested assets		4		-		-		4
Other assets		-		-		1		1
Total assets	$	793	$	(197)	$	(1,087)	$	(491)
Liabilities:
Policyholder contract deposits	$	-	$	173	$	20	$	193
Derivative liabilities, net		(13)		-		32		19
Total liabilities	$	(13)	$	173	$	52	$	212
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)
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
Total liabilities	$	(7)	$	112	$	(12)	$	93

(a) There were no issuances during the three-month periods ended March 31, 2019 and 2018, respectively.

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	March 31,		Valuation		Range
(in millions)	2019		Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states, municipalities
and political subdivisions	$	1,590	Discounted cash flow	Yield	3.59% - 4.58% (4.08%)

Corporate debt		530	Discounted cash flow	Yield	4.23% - 6.09% (5.16%)

RMBS^(a)		13,243	Discounted cash flow	Constant prepayment rate	3.63% - 12.64% (8.13%)
				Loss severity	38.94% - 75.51% (57.22%)
				Constant default rate	2.17% - 7.14% (4.65%)
				Yield	2.96% - 5.07% (4.01%)

CDO/ABS^(a)		4,554	Discounted cash flow	Yield	3.45% - 5.21% (4.33%)

CMBS		484	Discounted cash flow	Yield	2.81% - 5.81% (4.31%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

Guaranteed minimum withdrawal benefits (GMWB)		2,023	Discounted cash flow	Equity volatility	5.85% - 46.25%
				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		2,382	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier^(c)	42.00% - 162.00%
				Option Budget	1.00% - 4.00%

Indexed Life		448	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)		2018	Technique	Unobservable Input^(b)	(Weighted Average)
Assets:

Obligations of states, municipalities
and political subdivisions	$	1,473	Discounted cash flow	Yield	3.91% - 5.00% (4.46%)

Corporate debt		445	Discounted cash flow	Yield	4.35% - 5.99% (5.17%)

RMBS^(a)		13,608	Discounted cash flow	Constant prepayment rate	4.58% - 14.00% (9.29%)
				Loss severity	39.66% - 74.40% (57.03%)
				Constant default rate	2.46% - 7.39% (4.92%)
				Yield	3.31% - 5.50% (4.40%)

CDO/ABS^(a)		5,461	Discounted cash flow	Yield	3.65% - 5.10% (4.37%)

CMBS		447	Discounted cash flow	Yield	3.29% - 6.07% (4.68%)
Liabilities:

Embedded derivatives within
Policyholder contract deposits:

GMWB		1,943	Discounted cash flow	Equity volatility	6.05% - 47.65%
				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		1,778	Discounted cash flow	Lapse rate	0.50% - 40.00%
				Mortality multiplier^(c)	42.00% - 162.00%
				Option Budget	1.00% - 3.00%

Indexed Life		374	Discounted cash flow	Base lapse rate	0.00% - 13.00%
				Mortality rate	0.00% - 100.00%

(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.

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

		March 31, 2019				December 31, 2018
			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	$	970	$	1,378	$	847	$	1,327

Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		232		179		190		83

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		130		116		126		127

Growth Equity	Funds that make investments in established companies for the purpose of growing their businesses		371		29		362		28

Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		218		97		211		75

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		623		285		514		307
Total private equity funds			2,544		2,084		2,250		1,947
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		815		-		787		-

Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		725		-		863		-

Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		820		-		887		-

Distressed	Securities of companies that are in default, under bankruptcy protection or troubled		18		-		21		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		160		1		158		1
Total hedge funds			2,538		1		2,716		9
Total		$	5,082	$	2,085	$	4,966	$	1,956

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)		2019		2018
Assets:
Bond and equity securities	$	355	$	23
Alternative investments^(a)		230		128
Liabilities:
Long-term debt^(b)		(60)		52
Total gain	$	525	$	203

(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, 2019						December 31, 2018
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Liabilities:
Long-term debt^*	$	2,263	$	1,685	$	578	$	2,213	$	1,653	$	560

* 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		2019		2018
March 31, 2019
Other investments	$	-	$	-	$	207	$	207	$	41	$	28
Other assets		-		-		1		1		8		-
Total	$	-	$	-	$	208	$	208	$	49	$	28
December 31, 2018
Other investments	$	-	$	-	$	315	$	315
Other assets		-		-		11		11
Total	$	-	$	-	$	326	$	326

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, 2019
Assets:
Mortgage and other loans receivable	$	-	$	107	$	44,870	$	44,977	$	43,834
Other invested assets		-		699		6		705		705
Short-term investments		-		7,093		-		7,093		7,093
Cash		2,565		-		-		2,565		2,565
Other assets		348		15		-		363		363
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		337		119,312		119,649		122,616
Other liabilities		-		1,606		-		1,606		1,606
Long-term debt		1,044		24,384		8,432		33,860		33,513
December 31, 2018
Assets:
Mortgage and other loans receivable	$	-	$	105	$	43,522	$	43,627	$	43,135
Other invested assets		-		731		6		737		737
Short-term investments		-		6,659		-		6,659		6,659
Cash		2,873		-		-		2,873		2,873
Other assets		308		35		-		343		343
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		339		121,035		121,374		120,602
Other liabilities		-		1,154		-		1,154		1,154
Long-term debt		-		22,822		8,775		31,597		32,327