INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Investments [Line Items]

Amortized cost or cost and fair value of available for sale securities

				Allowance		Gross		Gross
		Amortized		for Credit		Unrealized		Unrealized		Fair
(in millions)		Cost		Losses(a)		Gains		Losses		Value
March 31, 2022
Bonds available for sale:
U.S. government and government sponsored entities	$	7,976	$	-	$	130	$	(239)	$	7,867
Obligations of states, municipalities and political subdivisions		13,105		-		674		(266)		13,513
Non-U.S. governments		15,408		(39)		284		(671)		14,982
Corporate debt		163,889		(137)		5,120		(7,244)		161,628
Mortgage-backed, asset-backed and collateralized:
RMBS		23,644		(13)		1,551		(647)		24,535
CMBS		15,413		-		138		(451)		15,100
CDO/ABS		20,045		(2)		85		(534)		19,594
Total mortgage-backed, asset-backed and collateralized		59,102		(15)		1,774		(1,632)		59,229
Total bonds available for sale(b)	$	259,480	$	(191)	$	7,982	$	(10,052)	$	257,219
December 31, 2021
Bonds available for sale:
U.S. government and government sponsored entities	$	7,874	$	-	$	347	$	(27)	$	8,194
Obligations of states, municipalities and political subdivisions		12,760		-		1,782		(15)		14,527
Non-U.S. governments		15,858		-		719		(247)		16,330
Corporate debt		163,064		(89)		13,892		(1,259)		175,608
Mortgage-backed, asset-backed and collateralized:
RMBS		25,027		(9)		2,422		(153)		27,287
CMBS		15,333		-		555		(79)		15,809
CDO/ABS		19,294		-		276		(123)		19,447
Total mortgage-backed, asset-backed and collateralized		59,654		(9)		3,253		(355)		62,543
Total bonds available for sale(b)	$	259,210	$	(98)	$	19,993	$	(1,903)	$	277,202

(a) Represents the allowance for credit losses that has been recognized. Changes in the allowance for credit losses are recorded through Net realized gains (losses) and are not recognized in Other comprehensive income (loss).

(b) At March 31, 2022 and December 31, 2021, bonds available for sale held by us that were below investment grade or not rated totaled $24.8 billion or 10 percent and $27.0 billion or 10 percent, respectively.

Securities available for sale in a 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, 2022
Bonds available for sale:
U.S. government and government sponsored entities	$	5,488	$	205	$	441	$	34	$	5,929	$	239
Obligations of states, municipalities and political
subdivisions		3,468		248		104		18		3,572		266
Non-U.S. governments		7,062		377		1,915		294		8,977		671
Corporate debt		77,592		5,689		10,362		1,531		87,954		7,220
RMBS		9,499		475		1,650		137		11,149		612
CMBS		9,615		423		220		28		9,835		451
CDO/ABS		15,337		512		394		22		15,731		534
Total bonds available for sale	$	128,061	$	7,929	$	15,086	$	2,064	$	143,147	$	9,993

December 31, 2021
Bonds available for sale:
U.S. government and government sponsored entities	$	3,696	$	14	$	447	$	13	$	4,143	$	27
Obligations of states, municipalities and political
subdivisions		714		11		57		4		771		15
Non-U.S. governments		4,644		115		1,324		132		5,968		247
Corporate debt		31,914		720		8,819		467		40,733		1,187
RMBS		5,362		102		1,154		46		6,516		148
CMBS		3,980		63		153		16		4,133		79
CDO/ABS		8,263		112		339		11		8,602		123
Total bonds available for sale	$	58,573	$	1,137	$	12,293	$	689	$	70,866	$	1,826

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

	Total Fixed Maturity Securities
	Available for Sale
		Amortized Cost,
(in millions)		Net of Allowance		Fair Value
March 31, 2022
Due in one year or less	$	7,577	$	7,574
Due after one year through five years		50,250		49,857
Due after five years through ten years		47,081		46,347
Due after ten years		95,294		94,212
Mortgage-backed, asset-backed and collateralized		59,087		59,229
Total	$	259,289	$	257,219

Gross realized gains and gross realized losses from sales or maturities of available for sale securities

Three Months Ended March 31,		2022				2021
		Gross		Gross		Gross		Gross
	Realized		Realized		Realized		Realized
(in millions)		Gains		Losses		Gains		Losses
Fixed maturity securities	$	97	$	236	$	460	$	71

Value of other securities measured at fair value based on election of the fair value option

		March 31, 2022				December 31, 2021
		Fair	Percent			Fair	Percent
(in millions)		Value	of Total			Value	of Total
Fixed maturity securities:
U.S. government and government sponsored entities	$	1,689	23	%	$	1,750	25	%
Obligations of states, municipalities and political subdivisions		98	1			97	1
Non-U.S. governments		85	1			76	1
Corporate debt		1,341	18			1,050	15
Mortgage-backed, asset-backed and collateralized:
RMBS		312	4			411	6
CMBS		317	4			315	4
CDO/ABS and other collateralized		2,740	38			2,579	37
Total mortgage-backed, asset-backed and collateralized		3,369	46			3,305	47
Total fixed maturity securities		6,582	89			6,278	89
Equity securities		695	11			739	11
Total	$	7,277	100	%	$	7,017	100	%

Carrying amounts values of other invested assets

		March 31,		December 31,
(in millions)		2022		2021
Alternative investments(a) (b)	$	11,583	$	10,951
Investment real estate(c)		2,627		2,727
All other investments(d)		1,976		1,990
Total	$	16,186	$	15,668

(a) At March 31, 2022, included hedge funds of $1.8 billion and private equity funds of $9.7 billion. At December 31, 2021, included hedge funds of $2.0 billion, private equity funds of $8.9 billion.

(b) At March 31, 2022, approximately 67 percent of our hedge fund portfolio is available for redemption in 2022. The remaining 33 percent will be available for redemption between 2023 and 2028.

(c) Represents values net of accumulated depreciation. At March 31, 2022 and December 31, 2021, the accumulated depreciation was $802 million and $778 million, respectively.

(d) Includes AIG’s ownership interest in Fortitude Group Holdings, LLC (FRL), which is recorded using the measurement alternative for equity securities. Our investment in FRL totaled $156 million and $100 million at March 31, 2022 and December 31, 2021, respectively.

Components of net investment income

Three Months Ended March 31,	2022						2021
	Excluding Fortitude		Fortitude Re				Excluding Fortitude		Fortitude Re
	Re Funds		Funds Withheld				Re Funds		Funds Withheld
(in millions)	Withheld Assets		Assets		Total		Withheld Assets		Assets		Total
Available for sale fixed maturity securities,
including short-term investments	$	2,041	$	301	$	2,342	$	2,178	$	377	$	2,555
Other fixed maturity securities(a)		(201)		(118)		(319)		(102)		-		(102)
Equity securities		(27)		-		(27)		22		-		22
Interest on mortgage and other loans		453		46		499		414		47		461
Alternative investments(b)		669		71		740		572		69		641
Real estate		-		-		-		59		-		59
Other investments(c)		157		-		157		140		1		141
Total investment income		3,092		300		3,392		3,283		494		3,777
Investment expenses		146		9		155		112		8		120
Net investment income	$	2,946	$	291	$	3,237	$	3,171	$	486	$	3,657

(a) Included in the three-month periods ended March 31, 2022 and 2021 was income (loss) of $(95) million and $(81) million, respectively, related to fixed maturity securities measured at fair value that economically hedge liabilities described in (c) below.

(b) Included 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.

(c) Included in the three-month periods ended March 31, 2022 and 2021 was income (loss) of $91 million and $83 million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above.

Net Realized Gains and Losses

Components of net realized gains (losses)

Three Months Ended March 31,	2022						2021
	Excluding		Fortitude Re				Excluding		Fortitude Re
	Fortitude Re			Funds			Fortitude Re			Funds
	Funds		Withheld				Funds		Withheld
(in millions)	Withheld Assets		Assets			Total	Withheld Assets			Assets		Total
Sales of fixed maturity securities	$	(107)	$	(32)	$	(139)	$	94	$	295	$	389
Change in allowance for credit losses on fixed maturity
securities		(53)		(40)		(93)		51		2		53
Change in allowance for credit losses on loans		(19)		(8)		(27)		41		(5)		36
Foreign exchange transactions		(14)		(9)		(23)		(49)		(6)		(55)
Variable annuity embedded derivatives, net of related
hedges		506		-		506		89		-		89
All other derivatives and hedge accounting		939		(56)		883		351		(117)		234
Sales of alternative investments and real estate
investments		16		1		17		26		4		30
Other		(27)		4		(23)		92		-		92
Net realized gains (losses) – excluding Fortitude Re
funds withheld embedded derivative		1,241		(140)		1,101		695		173		868
Net realized gains on Fortitude Re
funds withheld embedded derivative		-		3,318		3,318		-		2,382		2,382
Net realized gains	$	1,241	$	3,178	$	4,419	$	695	$	2,555	$	3,250

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)		2022		2021
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	(20,160)	$	(11,649)
Other investments		(7)		-
Total increase (decrease) in unrealized appreciation (depreciation) of investments	$	(20,167)	$	(11,649)

The following table summarizes the unrealized gains and losses recognized in Net investment income during the reporting period on equity securities and other investments still held at the reporting date:

Three Months Ended March 31,	2022						2021
				Other						Other
				Invested						Invested
(in millions)		Equities		Assets		Total		Equities		Assets		Total
Net gains (losses) recognized during the period on equity securities and
other investments	$	(27)	$	475	$	448	$	22	$	470	$	492
Less: Net gains (losses) recognized during the period on equity
securities and other investments sold during the period		94		(3)		91		(21)		24		3
Unrealized gains (losses) recognized during the reporting period on
equity securities and other investments still held at the reporting date	$	(121)	$	478	$	357	$	43	$	446	$	489

Rollforward of changes in allowance for credit losses on available for sale fixed maturity securities by major investment category

Three Months Ended March 31,	2022						2021
				Non-						Non-
(in millions)	Structured		Structured			Total	Structured		Structured			Total
Balance, beginning of period	$	8	$	90	$	98	$	17	$	169	$	186
Additions:
Securities for which allowance for credit losses were not previously recorded		49		128		177		2		13		15
Reductions:
Securities sold during the period		-		(1)		(1)		(1)		(4)		(5)
Addition to (release of) the allowance for credit losses on securities that
had an allowance recorded in a previous period, for which there was
no intent to sell before recovery of amortized cost basis		(42)		(42)		(84)		(4)		(64)		(68)
Write-offs charged against the allowance		-		-		-		-		(6)		(6)
Other		-		1		1		-		-		-
Balance, end of period	$	15	$	176	$	191	$	14	$	108	$	122

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

(in millions)		March 31, 2022		December 31, 2021
Fixed maturity securities available for sale	$	3,277	$	3,583
Other bond securities, at fair value	$	31	$	-

Schedule of fair value of securities pledged under repurchase agreements by collateral type and by remaining contractual maturity

	Remaining Contractual Maturity of the Agreements
(in millions)	Overnight and Continuous			up to 30 days		31 - 90 days		91 - 364 days		365 days or greater		Total
March 31, 2022
Bonds available for sale:
Non-U.S. governments	$	64	$	-	$	-	$	-	$	-	$	64
Corporate debt		212		73		-		-		-		285
Total	$	276	$	73	$	-	$	-	$	-	$	349
December 31, 2021
Bonds available for sale:
Non-U.S. governments	$	48	$	-	$	-	$	-	$	-	$	48
Corporate debt		128		61		22		-		-		211
Total	$	176	$	61	$	22	$	-	$	-	$	259

	Remaining Contractual Maturity of the Agreements
(in millions)		Overnight and Continuous		up to 30 days		31 - 90 days		91 - 364 days		365 days or greater		Total
March 31, 2022
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	149	$	-	$	-	$	-	$	149
Non-U.S. governments		-		420		80		-		-		500
Corporate debt		-		1,812		469		-		-		2,281
Other bond securities:
Non-U.S. governments		-		-		9		-		-		9
Corporate debt		-		-		20		-		-		20
Total	$	-	$	2,381	$	578	$	-	$	-	$	2,959
December 31, 2021
Bonds available for sale:
Obligations of states, municipalities and political
subdivisions	$	-	$	-	$	106	$	-	$	-	$	106
Non-U.S. governments		-		-		43		-		-		43
Corporate debt		-		534		2,641		-		-		3,175
Total	$	-	$	534	$	2,790	$	-	$	-	$	3,324

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

(in millions)		March 31, 2022		December 31, 2021
Securities collateral pledged to us	$	530	$	1,839