FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2020

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

June 30, 2020							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	$	5	$	4,797	$	-	$	-	$	-	$	4,802
Obligations of states, municipalities and political subdivisions		-		13,717		2,279		-		-		15,996
Non-U.S. governments		39		14,564		5		-		-		14,608
Corporate debt		-		154,865		1,900		-		-		156,765
RMBS		-		20,434		12,678		-		-		33,112
CMBS		-		13,850		1,149		-		-		14,999
CDO/ABS		-		8,762		9,461		-		-		18,223
Total bonds available for sale		44		230,989		27,472		-		-		258,505
Other bond securities:
U.S. government and government sponsored entities		-		1,912		-		-		-		1,912
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		11		-		-		-		11
RMBS		-		342		168		-		-		510
CMBS		-		256		47		-		-		303
CDO/ABS		-		170		2,531		-		-		2,701
Total other bond securities		-		2,691		2,746		-		-		5,437
Equity securities		624		12		43		-		-		679
Other invested assets(b)		-		86		1,486		-		-		1,572
Derivative assets:
Interest rate contracts		2		5,678		-		-		-		5,680
Foreign exchange contracts		-		1,968		1		-		-		1,969
Equity contracts		8		939		86		-		-		1,033
Credit contracts		-		-		3		-		-		3
Other contracts		-		-		13		-		-		13
Counterparty netting and cash collateral		-		-		-		(3,977)		(3,933)		(7,910)
Total derivative assets		10		8,585		103		(3,977)		(3,933)		788
Short-term investments		2,458		3,930		-		-		-		6,388
Other assets		-		-		111		-		-		111
Separate account assets		84,629		4,113		-		-		-		88,742
Total	$	87,765	$	250,406	$	31,961	$	(3,977)	$	(3,933)	$	362,222
Liabilities:
Policyholder contract deposits	$	-	$	-	$	9,233	$	-	$	-	$	9,233
Derivative liabilities:
Interest rate contracts		3		4,612		-		-		-		4,615
Foreign exchange contracts		-		663		-		-		-		663
Equity contracts		30		149		33		-		-		212
Credit contracts		-		26		48		-		-		74
Other contracts		-		-		10		-		-		10
Counterparty netting and cash collateral		-		-		-		(3,977)		(1,016)		(4,993)
Total derivative liabilities		33		5,450		91		(3,977)		(1,016)		581
Fortitude Re funds withheld payable		-		-		4,510		-		-		4,510
Other liabilities		-		-		-		-		-		-
Long-term debt		-		2,181		-		-		-		2,181
Total	$	33	$	7,631	$	13,834	$	(3,977)	$	(1,016)	$	16,505

December 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	$	135	$	5,245	$	-	$	-	$	-	$	5,380
Obligations of states, municipalities and political subdivisions		-		13,197		2,121		-		-		15,318
Non-U.S. governments		60		14,809		-		-		-		14,869
Corporate debt		-		147,973		1,663		-		-		149,636
RMBS		-		19,397		13,408		-		-		32,805
CMBS		-		13,377		1,053		-		-		14,430
CDO/ABS		-		10,962		7,686		-		-		18,648
Total bonds available for sale		195		224,960		25,931		-		-		251,086
Other bond securities:
U.S. government and government sponsored entities		-		2,121		-		-		-		2,121
Non-U.S. governments		-		-		-		-		-		-
Corporate debt		-		18		-		-		-		18
RMBS		-		346		143		-		-		489
CMBS		-		272		50		-		-		322
CDO/ABS		-		187		3,545		-		-		3,732
Total other bond securities		-		2,944		3,738		-		-		6,682
Equity securities		756		77		8		-		-		841
Other invested assets(b)		-		86		1,192		-		-		1,278
Derivative assets:
Interest rate contracts		1		3,199		-		-		-		3,200
Foreign exchange contracts		-		1,034		6		-		-		1,040
Equity contracts		5		593		171		-		-		769
Credit contracts		-		-		3		-		-		3
Other contracts		-		-		14		-		-		14
Counterparty netting and cash collateral		-		-		-		(2,427)		(1,806)		(4,233)
Total derivative assets		6		4,826		194		(2,427)		(1,806)		793
Short-term investments		2,299		3,044		-		-		-		5,343
Other assets		57		2,212		89		-		-		2,358
Separate account assets		89,069		4,203		-		-		-		93,272
Total	$	92,382	$	242,352	$	31,152	$	(2,427)	$	(1,806)	$	361,653
Liabilities:
Policyholder contract deposits	$	-	$	-	$	6,910	$	-	$	-	$	6,910
Derivative liabilities:
Interest rate contracts		4		2,745		-		-		-		2,749
Foreign exchange contracts		-		1,025		-		-		-		1,025
Equity contracts		8		111		20		-		-		139
Credit contracts		-		24		65		-		-		89
Other contracts		-		-		7		-		-		7
Counterparty netting and cash collateral		-		-		-		(2,427)		(527)		(2,954)
Total derivative liabilities		12		3,905		92		(2,427)		(527)		1,055
Other liabilities		-		45		-		-		-		45
Long-term debt		-		2,062		-		-		-		2,062
Total	$	12	$	6,012	$	7,002	$	(2,427)	$	(527)	$	10,072

(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 $5.0 billion and $5.5 billion as of June 30, 2020 and December 31, 2019, respectively.

Changes in Level 3 recurring fair value measurements (Assets)

																				Changes in
																				Unrealized Gains
				Net														Changes in		(Losses) Included in
				Realized and														Unrealized Gains		Other Comprehensive
				Unrealized				Purchases,										(Losses) Included		Income (Loss) for
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive			Issuances and	Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period		at End of Period
Three Months Ended June 30, 2020
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,102	$	-	$	254	$	20	$	-	$	(97)	$	-	$	2,279	$	-	$	244
Non-U.S. governments		6		-		-		5		-		(6)		-		5		-		-
Corporate debt		1,215		(1)		72		113		519		(18)		-		1,900		-		50
RMBS		11,687		208		947		(171)		7		-		-		12,678		-		957
CMBS		1,146		4		15		(16)		-		-		-		1,149		-		18
CDO/ABS		8,768		3		432		108		334		(184)		-		9,461		-		403
Total bonds available for sale(a)		24,924		214		1,720		59		860		(305)		-		27,472		-		1,672
Other bond securities:
RMBS		149		14		-		5		-		-		-		168		13		-
CMBS		42		6		-		(1)		-		-		-		47		6		-
CDO/ABS		2,378		274		-		(121)		-		-		-		2,531		253		-
Total other bond securities		2,569		294		-		(117)		-		-		-		2,746		272		-
Equity securities		19		-		-		-		25		(1)		-		43		-		-
Other invested assets		1,467		(59)		-		78		-		-		-		1,486		-		-
Other assets		91		-		-		54		-		-		(34)		111		-		-
Total	$	29,070	$	449	$	1,720	$	74	$	885	$	(306)	$	(34)	$	31,858	$	272	$	1,672
																				Changes in
																				Unrealized Gains
				Net														Changes in		(Losses) Included in
				Realized and														Unrealized Gains		Other Comprehensive
				Unrealized				Purchases,										(Losses) Included		Income (Loss) for
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive			Issuances and	Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	8,153	$	1,060	$	-	$	20	$	-	$	-	$	-	$	9,233	$	(825)	$	-
Derivative liabilities, net:
Interest rate contracts		-		(1)		-		1		-		-		-		-		-		-
Foreign exchange contracts		3		1		-		(5)		-		-		-		(1)		-		-
Equity contracts		(143)		36		-		54		-		-		-		(53)		(15)		-
Credit contracts		(76)		64		-		57		-		-		-		45		9		-
Other contracts		(2)		(17)		-		16		-		-		-		(3)		17		-
Total derivative liabilities, net(b)		(218)		83		-		123		-		-		-		(12)		11		-
Fortitude Re funds withheld
payable		-		837		-		-		-		-		3,673		4,510		663		-
Total	$	7,935	$	1,980	$	-	$	143	$	-	$	-	$	3,673	$	13,731	$	(151)	$	-

																				Changes in
																				Unrealized Gains
				Net														Changes in		(Losses) Included in
				Realized and														Unrealized Gains		Other Comprehensive
				Unrealized				Purchases,										(Losses) Included		Income (Loss) for
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive			Issuances and	Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period		at End of Period
Six Months Ended June 30, 2020
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,121	$	5	$	199	$	157	$	27	$	(230)	$	-	$	2,279	$	-	$	193
Non-U.S. governments		-		-		-		5		6		(6)		-		5		-		-
Corporate debt		1,663		(68)		(9)		120		622		(428)		-		1,900		-		21
RMBS		13,408		340		(676)		(394)		26		(26)		-		12,678		-		(548)
CMBS		1,053		11		34		28		23		-		-		1,149		-		39
CDO/ABS		7,686		20		(125)		155		1,937		(212)		-		9,461		-		(134)
Total bonds available for sale(a)		25,931		308		(577)		71		2,641		(902)		-		27,472		-		(429)
Other bond securities:
RMBS		143		-		-		25		-		-		-		168		(1)		-
CMBS		50		(1)		-		(2)		-		-		-		47		(2)		-
CDO/ABS		3,545		101		-		(1,115)		-		-		-		2,531		(9)		-
Total other bond securities		3,738		100		-		(1,092)		-		-		-		2,746		(12)		-
Equity securities		8		(1)		1		10		26		(1)		-		43		-		-
Other invested assets		1,192		(63)		-		207		150		-		-		1,486		(48)		-
Other assets		89		-		-		59		-		-		(37)		111		-		-
Total	$	30,958	$	344	$	(576)	$	(745)	$	2,817	$	(903)	$	(37)	$	31,858	$	(60)	$	(429)
																				Changes in
																				Unrealized Gains
				Net														Changes in		(Losses) Included in
				Realized and														Unrealized Gains		Other Comprehensive
				Unrealized				Purchases,										(Losses) Included		Income (Loss) for
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive			Issuances and	Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	6,910	$	2,231	$	-	$	92	$	-	$	-	$	-	$	9,233	$	(1,709)	$	-
Derivative liabilities, net:
Interest rate contracts		-		(1)		-		1		-		-		-		-		1		-
Foreign exchange contracts		(6)		4		-		1		-		-		-		(1)		1		-
Equity contracts		(151)		10		-		88		-		-		-		(53)		(64)		-
Credit contracts		62		(60)		-		43		-		-		-		45		6		-
Other contracts		(7)		(27)		-		31		-		-		-		(3)		27		-
Total derivative liabilities, net(b)		(102)		(74)		-		164		-		-		-		(12)		(29)		-
Fortitude Re funds withheld
payable		-		837		-		-		-		-		3,673		4,510		663		-
Total	$	6,808	$	2,994	$	-	$	256	$	-	$	-	$	3,673	$	13,731	$	(1,075)	$	-

				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period
Three Months Ended June 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,136	$	-	$	105	$	62	$	6	$	(147)	$	-	$	2,162	$	-
Non-U.S. governments		3		(1)		-		-		-		-		-		2		-
Corporate debt		1,532		29		43		(99)		389		(73)		-		1,821		-
RMBS		14,045		182		137		(404)		44		(141)		-		13,863		-
CMBS		892		5		13		150		58		(15)		-		1,103		-
CDO/ABS		8,840		8		113		104		4		(7)		-		9,062		-
Total bonds available for sale		27,448		223		411		(187)		501		(383)		-		28,013		-
Other bond securities:
RMBS		1,266		43		-		(479)		-		-		-		830		(19)
CMBS		84		-		-		14		-		(10)		-		88		1
CDO/ABS		4,249		116		-		(214)		-		(1)		-		4,150		76
Total other bond securities		5,599		159		-		(679)		-		(11)		-		5,068		58
Equity securities		26		-		-		9		-		-		-		35		3
Other invested assets		591		18		1		(5)		-		-		-		605		18
Other assets		59		-		-		2		-		-		-		61		-
Total	$	33,723	$	400	$	412	$	(860)	$	501	$	(394)	$	-	$	33,782	$	79
				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,878	$	970	$	-	$	217	$	-	$	-	$	-	$	6,065	$	(832)
Derivative liabilities, net:
Interest rate contracts		15		2		-		(1)		-		-		-		16		(2)
Foreign exchange contracts		(1)		(5)		-		2		-		-		-		(4)		4
Equity contracts		(96)		(4)		-		(13)		-		-		-		(113)		4
Credit contracts		222		(24)		-		(25)		-		-		-		173		23
Other contracts		(8)		(16)		-		17		-		-		-		(7)		18
Total derivative liabilities, net(b)		132		(47)		-		(20)		-		-		-		65		47
Total	$	5,010	$	923	$	-	$	197	$	-	$	-	$	-	$	6,130	$	(785)

				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period
Six Months Ended June 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,000	$	(1)	$	202	$	86	$	35	$	(160)	$	-	$	2,162	$	-
Non-U.S. governments		11		(1)		-		(4)		-		(4)		-		2		-
Corporate debt		864		26		81		(65)		1,043		(128)		-		1,821		-
RMBS		14,199		409		161		(816)		67		(157)		-		13,863		-
CMBS		917		6		30		296		58		(204)		-		1,103		-
CDO/ABS		9,102		12		167		59		96		(374)		-		9,062		-
Total bonds available for sale		27,093		451		641		(444)		1,299		(1,027)		-		28,013		-
Other bond securities:
RMBS		1,290		60		-		(520)		-		-		-		830		(19)
CMBS		77		4		-		17		-		(10)		-		88		4
CDO/ABS		4,478		184		-		(415)		-		(97)		-		4,150		100
Total other bond securities		5,845		248		-		(918)		-		(107)		-		5,068		85
Equity securities		27		-		-		9		-		(1)		-		35		3
Other invested assets		587		18		1		(1)		-		-		-		605		19
Other assets		58		-		-		3		-		-		-		61		-
Total	$	33,610	$	717	$	642	$	(1,351)	$	1,299	$	(1,135)	$	-	$	33,782	$	107
				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,116	$	1,539	$	-	$	410	$	-	$	-	$	-	$	6,065	$	(1,352)
Derivative liabilities, net:
Interest rate contracts		15		3		-		(2)		-		-		-		16		(3)
Foreign exchange contracts		(5)		(10)		-		11		-		-		-		(4)		4
Equity contracts		(75)		(20)		-		(18)		-		-		-		(113)		32
Credit contracts		227		(27)		-		(27)		-		-		-		173		27
Other contracts		(9)		(33)		-		35		-		-		-		(7)		35
Total derivative liabilities, net(b)		153		(87)		-		(1)		-		-		-		65		95
Total	$	4,269	$	1,452	$	-	$	409	$	-	$	-	$	-	$	6,130	$	(1,257)

(a)As a result of the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020, credit losses are included in net realized and unrealized (gains) losses included in income.

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

Changes in Level 3 recurring fair value measurements (Liabilities)

																				Changes in
																				Unrealized Gains
				Net														Changes in		(Losses) Included in
				Realized and														Unrealized Gains		Other Comprehensive
				Unrealized				Purchases,										(Losses) Included		Income (Loss) for
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive			Issuances and	Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period		at End of Period
Three Months Ended June 30, 2020
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,102	$	-	$	254	$	20	$	-	$	(97)	$	-	$	2,279	$	-	$	244
Non-U.S. governments		6		-		-		5		-		(6)		-		5		-		-
Corporate debt		1,215		(1)		72		113		519		(18)		-		1,900		-		50
RMBS		11,687		208		947		(171)		7		-		-		12,678		-		957
CMBS		1,146		4		15		(16)		-		-		-		1,149		-		18
CDO/ABS		8,768		3		432		108		334		(184)		-		9,461		-		403
Total bonds available for sale(a)		24,924		214		1,720		59		860		(305)		-		27,472		-		1,672
Other bond securities:
RMBS		149		14		-		5		-		-		-		168		13		-
CMBS		42		6		-		(1)		-		-		-		47		6		-
CDO/ABS		2,378		274		-		(121)		-		-		-		2,531		253		-
Total other bond securities		2,569		294		-		(117)		-		-		-		2,746		272		-
Equity securities		19		-		-		-		25		(1)		-		43		-		-
Other invested assets		1,467		(59)		-		78		-		-		-		1,486		-		-
Other assets		91		-		-		54		-		-		(34)		111		-		-
Total	$	29,070	$	449	$	1,720	$	74	$	885	$	(306)	$	(34)	$	31,858	$	272	$	1,672
																				Changes in
																				Unrealized Gains
				Net														Changes in		(Losses) Included in
				Realized and														Unrealized Gains		Other Comprehensive
				Unrealized				Purchases,										(Losses) Included		Income (Loss) for
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive			Issuances and	Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	8,153	$	1,060	$	-	$	20	$	-	$	-	$	-	$	9,233	$	(825)	$	-
Derivative liabilities, net:
Interest rate contracts		-		(1)		-		1		-		-		-		-		-		-
Foreign exchange contracts		3		1		-		(5)		-		-		-		(1)		-		-
Equity contracts		(143)		36		-		54		-		-		-		(53)		(15)		-
Credit contracts		(76)		64		-		57		-		-		-		45		9		-
Other contracts		(2)		(17)		-		16		-		-		-		(3)		17		-
Total derivative liabilities, net(b)		(218)		83		-		123		-		-		-		(12)		11		-
Fortitude Re funds withheld
payable		-		837		-		-		-		-		3,673		4,510		663		-
Total	$	7,935	$	1,980	$	-	$	143	$	-	$	-	$	3,673	$	13,731	$	(151)	$	-

																				Changes in
																				Unrealized Gains
				Net														Changes in		(Losses) Included in
				Realized and														Unrealized Gains		Other Comprehensive
				Unrealized				Purchases,										(Losses) Included		Income (Loss) for
		Fair Value	Gains (Losses)			Other		Sales,		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive			Issuances and	Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period		at End of Period
Six Months Ended June 30, 2020
Assets:
Bonds available for sale:
Obligations of states,
municipalities and
political subdivisions	$	2,121	$	5	$	199	$	157	$	27	$	(230)	$	-	$	2,279	$	-	$	193
Non-U.S. governments		-		-		-		5		6		(6)		-		5		-		-
Corporate debt		1,663		(68)		(9)		120		622		(428)		-		1,900		-		21
RMBS		13,408		340		(676)		(394)		26		(26)		-		12,678		-		(548)
CMBS		1,053		11		34		28		23		-		-		1,149		-		39
CDO/ABS		7,686		20		(125)		155		1,937		(212)		-		9,461		-		(134)
Total bonds available for sale(a)		25,931		308		(577)		71		2,641		(902)		-		27,472		-		(429)
Other bond securities:
RMBS		143		-		-		25		-		-		-		168		(1)		-
CMBS		50		(1)		-		(2)		-		-		-		47		(2)		-
CDO/ABS		3,545		101		-		(1,115)		-		-		-		2,531		(9)		-
Total other bond securities		3,738		100		-		(1,092)		-		-		-		2,746		(12)		-
Equity securities		8		(1)		1		10		26		(1)		-		43		-		-
Other invested assets		1,192		(63)		-		207		150		-		-		1,486		(48)		-
Other assets		89		-		-		59		-		-		(37)		111		-		-
Total	$	30,958	$	344	$	(576)	$	(745)	$	2,817	$	(903)	$	(37)	$	31,858	$	(60)	$	(429)
																				Changes in
																				Unrealized Gains
				Net														Changes in		(Losses) Included in
				Realized and														Unrealized Gains		Other Comprehensive
				Unrealized				Purchases,										(Losses) Included		Income (Loss) for
		Fair Value	(Gains) Losses			Other		Sales,		Gross		Gross				Fair Value		in Income on		Recurring Level 3
		Beginning		Included	Comprehensive			Issuances and	Transfers		Transfers			Divested		End		Instruments Held		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	6,910	$	2,231	$	-	$	92	$	-	$	-	$	-	$	9,233	$	(1,709)	$	-
Derivative liabilities, net:
Interest rate contracts		-		(1)		-		1		-		-		-		-		1		-
Foreign exchange contracts		(6)		4		-		1		-		-		-		(1)		1		-
Equity contracts		(151)		10		-		88		-		-		-		(53)		(64)		-
Credit contracts		62		(60)		-		43		-		-		-		45		6		-
Other contracts		(7)		(27)		-		31		-		-		-		(3)		27		-
Total derivative liabilities, net(b)		(102)		(74)		-		164		-		-		-		(12)		(29)		-
Fortitude Re funds withheld
payable		-		837		-		-		-		-		3,673		4,510		663		-
Total	$	6,808	$	2,994	$	-	$	256	$	-	$	-	$	3,673	$	13,731	$	(1,075)	$	-

				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period
Three Months Ended June 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,136	$	-	$	105	$	62	$	6	$	(147)	$	-	$	2,162	$	-
Non-U.S. governments		3		(1)		-		-		-		-		-		2		-
Corporate debt		1,532		29		43		(99)		389		(73)		-		1,821		-
RMBS		14,045		182		137		(404)		44		(141)		-		13,863		-
CMBS		892		5		13		150		58		(15)		-		1,103		-
CDO/ABS		8,840		8		113		104		4		(7)		-		9,062		-
Total bonds available for sale		27,448		223		411		(187)		501		(383)		-		28,013		-
Other bond securities:
RMBS		1,266		43		-		(479)		-		-		-		830		(19)
CMBS		84		-		-		14		-		(10)		-		88		1
CDO/ABS		4,249		116		-		(214)		-		(1)		-		4,150		76
Total other bond securities		5,599		159		-		(679)		-		(11)		-		5,068		58
Equity securities		26		-		-		9		-		-		-		35		3
Other invested assets		591		18		1		(5)		-		-		-		605		18
Other assets		59		-		-		2		-		-		-		61		-
Total	$	33,723	$	400	$	412	$	(860)	$	501	$	(394)	$	-	$	33,782	$	79
				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,878	$	970	$	-	$	217	$	-	$	-	$	-	$	6,065	$	(832)
Derivative liabilities, net:
Interest rate contracts		15		2		-		(1)		-		-		-		16		(2)
Foreign exchange contracts		(1)		(5)		-		2		-		-		-		(4)		4
Equity contracts		(96)		(4)		-		(13)		-		-		-		(113)		4
Credit contracts		222		(24)		-		(25)		-		-		-		173		23
Other contracts		(8)		(16)		-		17		-		-		-		(7)		18
Total derivative liabilities, net(b)		132		(47)		-		(20)		-		-		-		65		47
Total	$	5,010	$	923	$	-	$	197	$	-	$	-	$	-	$	6,130	$	(785)

				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period
Six Months Ended June 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities
and political subdivisions	$	2,000	$	(1)	$	202	$	86	$	35	$	(160)	$	-	$	2,162	$	-
Non-U.S. governments		11		(1)		-		(4)		-		(4)		-		2		-
Corporate debt		864		26		81		(65)		1,043		(128)		-		1,821		-
RMBS		14,199		409		161		(816)		67		(157)		-		13,863		-
CMBS		917		6		30		296		58		(204)		-		1,103		-
CDO/ABS		9,102		12		167		59		96		(374)		-		9,062		-
Total bonds available for sale		27,093		451		641		(444)		1,299		(1,027)		-		28,013		-
Other bond securities:
RMBS		1,290		60		-		(520)		-		-		-		830		(19)
CMBS		77		4		-		17		-		(10)		-		88		4
CDO/ABS		4,478		184		-		(415)		-		(97)		-		4,150		100
Total other bond securities		5,845		248		-		(918)		-		(107)		-		5,068		85
Equity securities		27		-		-		9		-		(1)		-		35		3
Other invested assets		587		18		1		(1)		-		-		-		605		19
Other assets		58		-		-		3		-		-		-		61		-
Total	$	33,610	$	717	$	642	$	(1,351)	$	1,299	$	(1,135)	$	-	$	33,782	$	107
				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		Divested		End		Instruments Held
(in millions)		of Period		in Income		Income (Loss)	Settlements, Net			In		Out		Businesses		of Period		at End of Period
Liabilities:
Policyholder contract deposits	$	4,116	$	1,539	$	-	$	410	$	-	$	-	$	-	$	6,065	$	(1,352)
Derivative liabilities, net:
Interest rate contracts		15		3		-		(2)		-		-		-		16		(3)
Foreign exchange contracts		(5)		(10)		-		11		-		-		-		(4)		4
Equity contracts		(75)		(20)		-		(18)		-		-		-		(113)		32
Credit contracts		227		(27)		-		(27)		-		-		-		173		27
Other contracts		(9)		(33)		-		35		-		-		-		(7)		35
Total derivative liabilities, net(b)		153		(87)		-		(1)		-		-		-		65		95
Total	$	4,269	$	1,452	$	-	$	409	$	-	$	-	$	-	$	6,130	$	(1,257)

(a)As a result of the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020, credit losses are included in net realized and unrealized (gains) losses included in income.

(b)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 June 30, 2020
Assets:
Bonds available for sale*	$	182	$	32	$	-	$	214
Other bond securities		294		-		-		294
Equity securities		-		-		-		-
Other invested assets		(59)		-		-		(59)
Six Months Ended June 30, 2020
Assets:
Bonds available for sale*	$	380	$	(72)	$	-	$	308
Other bond securities		(168)		268		-		100
Equity securities		-		(1)		-		(1)
Other invested assets		(63)		-		-		(63)
Three Months Ended June 30, 2019
Assets:
Bonds available for sale	$	245	$	(22)	$	-	$	223
Other bond securities		109		50		-		159
Other invested assets		18		-		-		18
Six Months Ended June 30, 2019
Assets:
Bonds available for sale	$	487	$	(36)	$	-	$	451
Other bond securities		196		52		-		248
Other invested assets		18		-		-		18
		Net		Net Realized
		Investment		Capital		Other
(in millions)		Income	(Gains) Losses			Income		Total
Three Months Ended June 30, 2020
Liabilities:
Policyholder contract deposits	$	-	$	1,060	$	-	$	1,060
Derivative liabilities, net		-		97		(14)		83
Fortitude Re funds withheld payable		-		837		-		837
Six Months Ended June 30, 2020
Liabilities:
Policyholder contract deposits	$	-	$	2,231	$	-	$	2,231
Derivative liabilities, net		-		(46)		(28)		(74)
Fortitude Re funds withheld payable		-		837		-		837
Three Months Ended June 30, 2019
Liabilities:
Policyholder contract deposits	$	-	$	970	$	-	$	970
Derivative liabilities, net		-		(29)		(18)		(47)
Six Months Ended June 30, 2019
Liabilities:
Policyholder contract deposits	$	-	$	1,539	$	-	$	1,539
Derivative liabilities, net		-		(53)		(34)		(87)

*As a result of the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020, credit losses are included in net realized capital gains (losses).

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 June 30, 2020
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	22	$	-	$	(2)	$	20
Non-U.S. governments		5		-		-		5
Corporate debt		121		-		(8)		113
RMBS		365		-		(536)		(171)
CMBS		1		(5)		(12)		(16)
CDO/ABS		256		(3)		(145)		108
Total bonds available for sale		770		(8)		(703)		59
Other bond securities:
RMBS		12		-		(7)		5
CMBS		-		-		(1)		(1)
CDO/ABS		-		-		(121)		(121)
Total other bond securities		12		-		(129)		(117)
Equity securities		-		-		-		-
Other invested assets		78		-		-		78
Other assets		55		-		(1)		54
Total assets	$	915	$	(8)	$	(833)	$	74
Liabilities:
Policyholder contract deposits	$	-	$	122	$	(102)	$	20
Derivative liabilities, net		(9)		-		132		123
Other liabilities		-		-		-		-
Total liabilities	$	(9)	$	122	$	30	$	143
Three Months Ended June 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	87	$	(1)	$	(24)	$	62
Non-U.S. governments		-		-		-		-
Corporate debt		8		(1)		(106)		(99)
RMBS		300		-		(704)		(404)
CMBS		179		-		(29)		150
CDO/ABS		972		(154)		(714)		104
Total bonds available for sale		1,546		(156)		(1,577)		(187)
Other bond securities:
RMBS		-		(437)		(42)		(479)
CMBS		14		-		-		14
CDO/ABS		-		-		(214)		(214)
Total other bond securities		14		(437)		(256)		(679)
Equity securities		9		-		-		9
Other invested assets		39		-		(44)		(5)
Other assets		-		-		2		2
Total assets	$	1,608	$	(593)	$	(1,875)	$	(860)
Liabilities:
Policyholder contract deposits	$	-	$	203	$	14	$	217
Derivative liabilities, net		(9)		-		(11)		(20)
Total liabilities	$	(9)	$	203	$	3	$	197

						Issuances		Purchases, Sales,
						and		Issuances and
(in millions)		Purchases		Sales		Settlements(a)		Settlements, Net(a)
Six Months Ended June 30, 2020
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	167	$	(2)	$	(8)	$	157
Non-U.S. governments		5		-		-		5
Corporate debt		233		(5)		(108)		120
RMBS		701		-		(1,095)		(394)
CMBS		54		(7)		(19)		28
CDO/ABS		481		(25)		(301)		155
Total bonds available for sale		1,641		(39)		(1,531)		71
Other bond securities:
RMBS		37		-		(12)		25
CMBS		-		-		(2)		(2)
CDO/ABS		35		(579)		(571)		(1,115)
Total other bond securities		72		(579)		(585)		(1,092)
Equity securities		10		-		-		10
Other invested assets		252		-		(45)		207
Other assets		55		-		4		59
Total assets	$	2,030	$	(618)	$	(2,157)	$	(745)
Liabilities:
Policyholder contract deposits	$	-	$	344	$	(252)	$	92
Derivative liabilities, net		(24)		8		180		164
Other liabilities		-		-		-		-
Total liabilities	$	(24)	$	352	$	(72)	$	256
Six Months Ended June 30, 2019
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	134	$	(16)	$	(32)	$	86
Non-U.S. governments		-		-		(4)		(4)
Corporate debt		57		(1)		(121)		(65)
RMBS		607		(26)		(1,397)		(816)
CMBS		363		-		(67)		296
CDO/ABS		1,170		(310)		(801)		59
Total bonds available for sale		2,331		(353)		(2,422)		(444)
Other bond securities:
RMBS		-		(437)		(83)		(520)
CMBS		18		-		(1)		17
CDO/ABS		-		-		(415)		(415)
Total other bond securities		18		(437)		(499)		(918)
Equity securities		9		-		-		9
Other invested assets		43		-		(44)		(1)
Other assets		-		-		3		3
Total assets	$	2,401	$	(790)	$	(2,962)	$	(1,351)
Liabilities:
Policyholder contract deposits	$	-	$	376	$	34	$	410
Derivative liabilities, net		(22)		-		21		(1)
Total liabilities	$	(22)	$	376	$	55	$	409

(a)There were no issuances during the three- and six-month periods ended June 30, 2020 and 2019.

Significant unobservable inputs used for recurring fair value measurements

	Fair Value at
	June 30,		Valuation		Range
(in millions)	2020		Technique	Unobservable Input(b)	(Weighted Average)(c)
Assets:
Obligations of states, municipalities
and political subdivisions	$	1,781	Discounted cash flow	Yield	2.80% - 3.43% (3.11%)
Corporate debt		1,374	Discounted cash flow	Yield	2.53% - 6.74% (4.64%)
RMBS(a)		11,777	Discounted cash flow	Constant prepayment rate	3.75% - 11.92% (7.84%)
				Loss severity	29.12% - 76.16% (52.64%)
				Constant default rate	1.27% - 6.11% (3.69%)
				Yield	2.17% - 5.13% (3.65%)
CDO/ABS(a)		8,926	Discounted cash flow	Yield	2.30% - 6.49% (4.40%)
CMBS		576	Discounted cash flow	Yield	1.34% - 4.92% (3.13%)
Liabilities:
Embedded derivatives within
Policyholder contract deposits:
Guaranteed minimum withdrawal benefits (GMWB)		4,257	Discounted cash flow	Equity volatility	6.35% - 50.45%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	50.00% - 143.00%
				Mortality multiplier(d)	38.00% - 147.00%
				Utilization	90.00% - 100.00%
				Equity / interest rate correlation	20.00% - 40.00%
				NPA(e)	0.19% - 2.34%
Index annuities		4,396	Discounted cash flow	Lapse rate	0.31% - 50.00%
				Mortality multiplier(d)	24.00% - 180.00%
				Option budget	0.00% - 4.00%
				NPA(e)	0.19% - 2.34%
Indexed life		552	Discounted cash flow	Base lapse rate	0.00% - 37.97%
				Mortality rate	0.00% - 100.00%
				NPA(e)	0.19% - 2.34%

		Fair Value at
		December 31,	Valuation		Range
(in millions)		2019	Technique	Unobservable Input(b)	(Weighted Average)(c)
Assets:
Obligations of states, municipalities
and political subdivisions	$	1,633	Discounted cash flow	Yield	3.35% - 3.95% (3.65%)
Corporate debt		1,087	Discounted cash flow	Yield	3.48% - 6.22% (4.85%)
RMBS(a)		11,746	Discounted cash flow	Constant prepayment rate	4.00% - 12.89% (8.44%)
				Loss severity	33.68% - 76.91% (55.29%)
				Constant default rate	1.68% - 6.17% (3.93%)
				Yield	2.52% - 4.53% (3.52%)
CDO/ABS(a)		6,025	Discounted cash flow	Yield	2.92% - 4.91% (3.91%)
CMBS		476	Discounted cash flow	Yield	2.77% - 5.18% (3.97%)
Liabilities:
Embedded derivatives within
Policyholder contract deposits:
GMWB		2,474	Discounted cash flow	Equity volatility	6.15% - 48.85%
				Base lapse rate	0.16% - 12.60%
				Dynamic lapse multiplier	50.00% - 143.00%
				Mortality multiplier(d)	38.00% - 147.00%
				Utilization	90.00% - 100.00%
				Equity / interest rate correlation	20.00% - 40.00%
				NPA(e)	0.12% - 1.53%
Index annuities		3,895	Discounted cash flow	Lapse rate	0.31% - 50.00%
				Mortality multiplier(d)	24.00% - 180.00%
				Option budget	1.00% - 4.00%
				NPA(e)	0.12% - 1.53%
Indexed life		510	Discounted cash flow	Base lapse rate	0.00% - 37.97%
				Mortality rate	0.00% - 100.00%
				NPA(e)	0.12% - 1.53%

(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)The weighted averaging for fixed maturity securities is based on the estimated fair value of the securities. Because the valuation methodology for embedded derivatives within Policyholder contract deposits uses a range of inputs that vary at the contract level over the cash flow projection period, management believes that presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(d)Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table.

(e)The non-performance risk adjustment (NPA) applied as a spread over risk-free curve for discounting.

Investments in certain entities carried at fair value using net asset value per share

		June 30, 2020				December 31, 2019
			Fair Value			Fair Value
			Using NAV			Using NAV
			Per Share (or		Unfunded	Per Share (or			Unfunded
(in millions)	Investment Category Includes		its equivalent)		Commitments	its equivalent)			Commitments
Investment Category
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	1,209	$	1,489	$	1,189	$	1,543
Real Estate / Infrastructure	Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities		395		445		400		290
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		129		161		111		155
Growth Equity	Funds that make investments in established companies for the purpose of growing their businesses		450		82		422		57
Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		412		302		325		414
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		785		174		773		206
Total private equity funds			3,380		2,653		3,220		2,665
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		304		-		727		-
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		414		-		539		-
Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		737		-		894		-
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		154		1		169		1
Total hedge funds			1,609		1		2,329		1
Total		$	4,989	$	2,654	$	5,549	$	2,666

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

	Gain (Loss) Three Months Ended June 30,				Gain (Loss) Six Months Ended June 30,
(in millions)		2020		2019		2020		2019
Assets:
Bonds	$	374	$	283	$	314	$	638
Alternative investments(a)		(26)		151		(165)		381
Liabilities:
Long-term debt(b)		(18)		(93)		(221)		(153)
Total gain (loss)	$	330	$	341	$	(72)	$	866

(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

	June 30, 2020						December 31, 2019
			Outstanding						Outstanding
(in millions)	Fair Value		Principal Amount		Difference		Fair Value		Principal Amount		Difference
Liabilities:
Long-term debt*	$	2,181	$	1,445	$	736	$	2,062	$	1,502	$	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 June 30,				Six Months Ended June 30,
(in millions)	Level 1		Level 2		Level 3			Total		2020		2019		2020		2019
June 30, 2020
Other investments	$	-	$	-	$	160	$	160	$	37	$	17	$	48	$	58
Other assets		-		-		-		-		-		9		12		17
Total	$	-	$	-	$	160	$	160	$	37	$	26	$	60	$	75
December 31, 2019
Other investments	$	-	$	-	$	329	$	329
Other assets		-		-		1		1
Total	$	-	$	-	$	330	$	330

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
June 30, 2020
Assets:
Mortgage and other loans receivable	$	-	$	100	$	48,696	$	48,796	$	46,522
Other invested assets		-		761		125		886		886
Short-term investments		-		14,928		-		14,928		14,928
Cash		3,408		-		-		3,408		3,408
Other assets		188		59		-		247		247
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		234		139,805		140,039		127,344
Fortitude Re funds withheld payable		-		-		37,523		37,523		37,523
Other liabilities		-		3,086		-		3,086		3,086
Long-term debt and debt of consolidated investment entities		-		31,467		9,045		40,512		37,099
Separate account liabilities - investment contracts		-		84,443		-		84,443		84,443
December 31, 2019
Assets:
Mortgage and other loans receivable	$	-	$	101	$	48,904	$	49,005	$	46,984
Other invested assets		-		735		6		741		742
Short-term investments		-		7,887		-		7,887		7,887
Cash		2,856		-		-		2,856		2,856
Other assets		291		20		-		311		311
Liabilities:
Policyholder contract deposits associated
with investment-type contracts		-		255		132,991		133,246		126,137
Other liabilities		15		3,048		-		3,063		3,063
Long-term debt and debt of consolidated investment entities		-		27,024		8,883		35,907		33,288
Separate account liabilities - investment contracts		-		88,770		-		88,770		88,770