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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2019

Investment [Line Items]

The amortized cost or cost and fair value of AIG's available for sale securities and other invested assets carried at fair value

										Other-Than-
		Amortized		Gross		Gross				Temporary
		Cost or		Unrealized		Unrealized		Fair		Impairments
(in millions)		Cost		Gains		Losses		Value		in AOCI^(a)
March 31, 2019
Bonds available for sale:
U.S. government and government sponsored entities	$	3,267	$	151	$	(17)	$	3,401	$	-
Obligations of states, municipalities and political subdivisions		14,952		1,013		(43)		15,922		-
Non-U.S. governments		14,799		600		(125)		15,274		-
Corporate debt		133,768		6,314		(1,409)		138,673		(24)
Mortgage-backed, asset-backed and collateralized:
RMBS		31,324		2,871		(191)		34,004		1,171
CMBS		12,895		355		(89)		13,161		31
CDO/ABS		17,603		287		(124)		17,766		17
Total mortgage-backed, asset-backed and collateralized		61,822		3,513		(404)		64,931		1,219
Total bonds available for sale^(b)	$	228,608	$	11,591	$	(1,998)	$	238,201	$	1,195
December 31, 2018
Bonds available for sale:
U.S. government and government sponsored entities	$	3,170	$	132	$	(42)	$	3,260	$	-
Obligations of states, municipalities and political subdivisions		15,421		701		(121)		16,001		4
Non-U.S. governments		14,376		451		(302)		14,525		-
Corporate debt		130,436		3,911		(3,647)		130,700		4
Mortgage-backed, asset-backed and collateralized:
RMBS		31,940		2,754		(317)		34,377		1,155
CMBS		12,673		242		(214)		12,701		31
CDO/ABS		17,764		228		(165)		17,827		17
Total mortgage-backed, asset-backed and collateralized		62,377		3,224		(696)		64,905		1,203
Total bonds available for sale^(b)	$	225,780	$	8,419	$	(4,808)	$	229,391	$	1,211

(a) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income (loss). Amount includes unrealized gains and losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date.

(b) At March 31, 2019 and December 31, 2018, bonds available for sale held by us that were below investment grade or not rated totaled $29.1 billion and $28.8 billion, respectively.

The fair value and gross unrealized losses on AIG's available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position

	Less than 12 Months					12 Months or More					Total
				Gross					Gross					Gross
		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(in millions)		Value		Losses			Value		Losses			Value		Losses
March 31, 2019
Bonds available for sale:
U.S. government and government sponsored entities	$	508	$	10		$	356	$	7		$	864	$	17
Obligations of states, municipalities and political
subdivisions		331		8			935		35			1,266		43
Non-U.S. governments		2,642		52			1,635		73			4,277		125
Corporate debt		16,010		520			21,874		889			37,884		1,409
RMBS		4,715		73			3,800		118			8,515		191
CMBS		1,524		20			2,796		69			4,320		89
CDO/ABS		7,121		99			1,554		25			8,675		124
Total bonds available for sale	$	32,851	$	782		$	32,950	$	1,216		$	65,801	$	1,998
December 31, 2018
Bonds available for sale:
U.S. government and government sponsored entities	$	574	$	13		$	873	$	29		$	1,447	$	42
Obligations of states, municipalities and political
subdivisions		1,965		51			1,530		70			3,495		121
Non-U.S. governments		3,851		149			2,422		153			6,273		302
Corporate debt		47,364		2,181			20,056		1,466			67,420		3,647
RMBS		5,231		94			5,641		223			10,872		317
CMBS		2,646		47			4,264		167			6,910		214
CDO/ABS		9,169		144			1,324		21			10,493		165
Total bonds available for sale	$	70,800	$	2,679		$	36,110	$	2,129		$	106,910	$	4,808

The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity

	Total Fixed Maturity Securities					Fixed Maturity Securities in a Loss
	Available for Sale					Position Available for Sale
(in millions)		Amortized Cost		Fair Value			Amortized Cost		Fair Value
March 31, 2019
Due in one year or less	$	10,113	$	10,263		$	2,009	$	1,978
Due after one year through five years		46,478		47,484			11,419		11,088
Due after five years through ten years		44,185		45,355			15,183		14,787
Due after ten years		66,010		70,168			17,274		16,438
Mortgage-backed, asset-backed and collateralized		61,822		64,931			21,914		21,510
Total	$	228,608	$	238,201		$	67,799	$	65,801
December 31, 2018
Due in one year or less	$	9,539	$	9,674		$	2,322	$	2,294
Due after one year through five years		47,400		47,905			17,382		16,844
Due after five years through ten years		42,363		42,045			27,724		26,517
Due after ten years		64,101		64,862			35,319		32,980
Mortgage-backed, asset-backed and collateralized		62,377		64,905			28,971		28,275
Total	$	225,780	$	229,391		$	111,718	$	106,910

The gross realized gains and gross realized losses from sales of AIG's available for sale securities

Three Months Ended March 31,						2019				2018
						Gross		Gross		Gross		Gross
					Realized		Realized		Realized		Realized
(in millions)						Gains		Losses		Gains		Losses
Fixed maturity securities					$	93	$	124	$	70	$	60
Equity securities						-		-		16		-
Total					$	93	$	124	$	86	$	60

The fair value of AIG's other securities

		March 31, 2019					December 31, 2018
		Fair	Percent				Fair	Percent
(in millions)		Value	of Total				Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	2,780	23	%		$	2,665	21	%
Non-U.S. governments		51	-				45	-
Corporate debt		1,745	14				1,671	13
Mortgage-backed, asset-backed and collateralized:
RMBS		1,757	14				1,714	14
CMBS		399	3				388	3
CDO/ABS and other collateralized^*		4,779	39				4,932	39
Total mortgage-backed, asset-backed and collateralized		6,935	56				7,034	56
Total fixed maturity securities		11,511	93				11,415	90
Equity securities		841	7				1,253	10
Total	$	12,352	100	%		$	12,668	100	%

* Includes $164 million and $178 million of U.S. government agency-backed ABS at March 31, 2019 and December 31, 2018, respectively.

Components of other invested assets

		March 31,		December 31,
(in millions)		2019		2018
Alternative investments^{(a) (b)}	$	8,711	$	8,966
Investment real estate^(c)		9,204		8,935
All other investments		1,428		1,440
Total	$	19,343	$	19,341

(a) At March 31, 2019, included hedge funds of $3.9 billion, private equity funds of $4.4 billion, and affordable housing partnerships of $392 million. At December 31, 2018, included hedge funds of $4.2 billion, private equity funds of $4.3 billion, and affordable housing partnerships of $438 million.

(b) At March 31, 2019, approximately 72 percent of our hedge fund portfolio is available for redemption in 2019. The remaining 28 percent will be available for redemption between 2020 and 2027.

(c) Net of accumulated depreciation of $633 million and $598 million at March 31, 2019 and December 31, 2018, respectively.

Components of net investment income

Three Months Ended March 31,
(in millions)				2019		2018
Available for sale fixed maturity securities, including short-term investments			$	2,653	$	2,610
Other fixed maturity securities				327		(21)
Equity securities				79		(32)
Interest on mortgage and other loans				498		450
Alternative investments^(a)				419		337
Real estate				69		31
Other investments				(52)		10
Total investment income				3,993		3,385
Investment expenses				114		124
Net investment income			$	3,879	$	3,261

(a) Includes income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag.

Components of net realized capital gains (losses)

Three Months Ended March 31,
(in millions)		2019		2018
Sales of fixed maturity securities	$	(31)	$	10
Sales of equity securities		-		16
Other-than-temporary impairments:
Change in intent		(3)		(49)
Foreign currency declines		(6)		(6)
Issuer-specific credit events		(71)		(32)
Adverse projected cash flows		(3)		-
Provision for loan losses		(24)		(24)
Foreign exchange transactions		(37)		53
Variable annuity embedded derivatives, net of related hedges		(261)		147
All other derivatives and hedge accounting		(72)		(225)
Other		62		91
Net realized capital losses	$	(446)	$	(19)

Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments

The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments:

Three Months Ended March 31,
(in millions)		2019		2018
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	5,982	$	(4,969)
Other investments		(69)		(25)
Total increase (decrease) in unrealized appreciation (depreciation) of investments	$	5,913	$	(4,994)

The following table summarizes the unrealized gains and losses recognized in Net Investment Income during the reporting period on equity securities still held at the reporting date:

				Other Invested
(in millions)		Equities		Assets		Total
Three Months Ended March 31, 2019
Net gains and losses recognized during the period on equity securities	$	79	$	239	$	318
Less: Net gains and losses recognized during the period on equity securities sold
during the period		19		10		29
Unrealized gains and losses recognized during the reporting period on equity
securities still held at the reporting date	$	60	$	229	$	289
Three Months Ended March 31, 2018
Net gains and losses recognized during the period on equity securities	$	(31)	$	192	$	161
Less: Net gains and losses recognized during the period on equity securities sold
during the period		(8)		(1)		(9)
Unrealized gains and losses recognized during the reporting period on equity
securities still held at the reporting date	$	(23)	$	193	$	170

Credit impairments recognized in earnings for available for sale fixed maturity securities

Three Months Ended March 31,
(in millions)				2019		2018
Balance, beginning of year			$	-	$	526
Increases due to:
Credit impairments on new securities subject to impairment losses				68		14
Additional credit impairments on previously impaired securities				6		17
Reductions due to:
Credit impaired securities fully disposed for which there was no
prior intent or requirement to sell				(21)		(51)
Accretion on securities previously impaired due to credit^*				(53)		(148)
Balance, end of period			$	-	$	358

* Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time.

Schedule of Purchased Credit Impaired (PCI) Securities, at acquisition date

(in millions)	At Date of Acquisition
Contractually required payments (principal and interest)	$	36,385
Cash flows expected to be collected^*		29,862
Recorded investment in acquired securities		20,156

* Represents undiscounted expected cash flows, including both principal and interest.

Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date

(in millions)	March 31, 2019		December 31, 2018
Outstanding principal balance	$	12,063	$	12,495
Amortized cost		8,307		8,646
Fair value		9,973		10,280

Activity for accretable yield on Purchased Credit Impaired (PCI) Securities

The following table presents activity for the accretable yield on PCI securities:

Three Months Ended March 31,
(in millions)		2019		2018
Balance, beginning of year	$	7,210	$	7,501
Newly purchased PCI securities		12		23
Accretion		(172)		(187)
Effect of changes in interest rate indices		(134)		206
Net reclassification from (to) non-accretable difference, including effects of prepayments		(115)		58
Balance, end of period	$	6,801	$	7,601

Schedule of fair value of securities pledged to counterparties under secured financing transactions

(in millions)		March 31, 2019		December 31, 2018
Fixed maturity securities available for sale	$	1,503	$	1,050
Other bond securities, at fair value	$	184	$	122

Transfer of Certain Financial Assets Accounted for as Secured Borrowings

	Remaining Contractual Maturity of the Agreements
(in millions)	Overnight and Continuous			up to30 days		31 - 90 days		91 - 364 days		365 days or greater		Total
March 31, 2019
Bonds available for sale:
Non-U.S. governments	$	41	$	-	$	-	$	-	$	-	$	41
Corporate debt		46		7		-		-		-		53
Other bond securities:
U.S. government and government sponsored entities		86		-		-		-		-		86
Non-U.S. governments		-		3		-		-		-		3
Corporate debt		-		63		32		-		-		95
Total	$	173	$	73	$	32	$	-	$	-	$	278

December 31, 2018
Bonds available for sale:
Non-U.S. governments	$	25	$	35	$	-	$	-	$	-	$	60
Corporate debt		51		55		-		-		-		106
Other bond securities:
U.S. government and government sponsored entities		11		-		-		-		-		11
Non-U.S. governments		-		3		-		-		-		3
Corporate debt		17		38		53		-		-		108
Total	$	104	$	131	$	53	$	-	$	-	$	288

	Remaining Contractual Maturity of the Agreements
(in millions)		Overnight and Continuous		up to30 days		31 - 90 days		91 - 364 days		365 days or greater		Total
March 31, 2019
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	77	$	55	$	-	$	-	$	132
Non-U.S. governments		-		19		23		-		-		42
Corporate debt		-		276		528		431		-		1,235
Total	$	-	$	372	$	606	$	431	$	-	$	1,409

December 31, 2018
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	50	$	130	$	-	$	-	$	180
Non-U.S. governments		-		21		8		-		-		29
Corporate debt		-		330		345		-		-		675
Total	$	-	$	401	$	483	$	-	$	-	$	884

Schedule of fair value of securities pledged to the entity under reverse repurchase agreements

(in millions)		March 31, 2019		December 31, 2018
Securities collateral pledged to us	$	1,374	$	426
Amount sold or repledged by us		121		106