REINSURANCE (Tables)

6 Months Ended

Jun. 30, 2020

Effects of Reinsurance [Line Items]

Summary of the composition of pool of assets

June 30, 2020		Carrying		Fair
(in millions)		Value		Value	Corresponding Accounting Policy
Fixed maturity securities - available for sale(a)	$	35,380	$	35,380	Fair value through other comprehensive income
Fixed maturity securities - fair value option		190		190	Fair value through net investment income
Commercial mortgage loans		3,537		3,781	Amortized cost
Real estate investments		385		600	Amortized cost
Private equity funds / hedge funds		978		978	Fair value through net investment income
Policy loans		431		431	Amortized cost
Derivative assets, net(b)		-		-	Fair value through realized capital gains (losses)
Other		640		640	Amortized cost
Total	$	41,541	$	42,000

(a)The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $555 million ($438 million after-tax) during the post deconsolidation period (June 2, 2020-June 30, 2020).

(b)The derivative assets have been presented net of collateral. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $650 million as of June 30, 2020. These derivative assets are fully collateralized.

Summary of the impact of modco and funds withheld

(in millions)
Net underwriting income	$	-
Net investment income - Fortitude Re funds withheld assets		116
Net realized capital losses on Fortitude Re funds withheld assets:
Net realized capital gains - Fortitude Re funds withheld assets		96
Net realized capital losses - Fortitude Re embedded derivatives		(837)
Net realized capital losses on Fortitude Re funds withheld assets		(741)
Loss from continuing operations before income tax benefit		(625)
Income tax benefit(a)		(131)
Net loss		(494)
Change in unrealized appreciation of all other investments(a)		438
Comprehensive loss	$	(56)

(a) The income tax expense (benefit) and the tax impact in accumulated other comprehensive income was computed using AIG’s U.S. statutory tax rate of 21 percent.

Schedule of rollfoward of allowance for credit losses

	Three Months Ended						Six Months Ended
	June 30, 2020						June 30, 2020
		General		Life and				General		Life and
(in millions)	Insurance		Retirement			Total	Insurance		Retirement			Total
Balance, beginning of period	$	302	$	60	$	362	$	111	$	40	$	151
Initial allowance upon CECL adoption		-		-		-		202		22		224
Current period provision for expected credit losses and disputes		6		1		7		2		3		5
Write-offs charged against the allowance for credit losses and
disputes		(2)		(1)		(3)		(5)		(5)		(10)
Other changes		(1)		(1)		(2)		(5)		(1)		(6)
Balance, end of period	$	305	$	59	$	364	$	305	$	59	$	364